パナソニック（6752） – Consolidated Financial Results for the Nine Months ended December 31, 2021

Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 1 -Media Contact:Investor Relations Contact:Corporate PR CenterAkira Wanikohttps://news.panasonic.com/global/contacts/Corporate Finance & IR Department(Tel:　+81-6-6908-1121)(Japan)February 2, 2022FOR IMMEDIATE RELEASEPanasonic Reports its Consolidated Financial Resultsfor the Nine Months ended December 31, 2021　　　Osaka, Japan, February 2, 2022 — Panasonic Corporation (Panasonic [TSE:6752]) today reported its consolidated financial results for the nine months ended December 31, 2021, of the current fiscal year ending March 31, 2022 (fiscal 2022). The Company also provided the additional information on its consolidated financial forecast for fiscal 2022 including adjusted operating profit.Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 2 -Yen (billions)Fiscal 2022Nine Months endedDecember 31, 2021Fiscal 2021Nine Months endedDecember 31, 2020Percentage2022/2021Net sales5,423.44,873.3111%Domestic2,302.62,235.2103%Overseas3,120.82,638.1118%Operating profit274.2226.8121%% to sales5.1%4.7%Profit before income taxes279.4220.1127%% to sales5.2%4.5%Net profit204.2144.3142%% to sales3.8%3.0%Net profit attributable to Panasonic Corporation stockholders195.6130.1150%% to sales3.6%2.7%Earnings per share attributable to Panasonic Corporation stockholdersBasic83.83yen55.78yen28.05yenDiluted83.80yen55.75yen28.05yenSummaryNotes: 1. The Company’s consolidated financial statements are prepared in conformity with International FinancialReporting Standards (IFRS).2. Number of consolidated companies: 537 (including parent company)Number of companies under the equity method: 673. One American depositary shares (ADS) represents one share of common share. Earnings per share attributable to Panasonic Corporation stockholders per ADS is same amount as Earnings per share attributable to Panasonic Corporation stockholders.Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 3 -Panasonic Group1. Outline of the Panasonic Group　The Panasonic Group is comprised primarily of the parent Panasonic Corporation and 536 consolidated subsidiaries in and outside of Japan, operating in close cooperation with each other. As a comprehensive electronics manufacturer, Panasonic is engaged in development, production, sales and service activities in a broad array of business areas.　Aiming to enhance the competitiveness of its business from a medium- to long-term perspective, in April 2022, the Company will implement a company split, with Panasonic as a splitting company, and transition to the holding company system with Panasonic as the parent company. Prior to the transition, on October 1, 2021, the Company terminated its former Divisional Company system and reorganized its businesses structure.　Accordingly, Panasonic recategorized into the following five reportable segments, “Lifestyle,” ”Automotive,” “Connect,” “Industry,” “Energy,” and other business activities which are not included in the reportable segments.2. Panasonic GroupConsolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 4 -Yen (billions)Fiscal 2022Nine Months endedDec. 31, 2021Fiscal 2021Nine Months endedDec. 31, 2020Percentage 2022/2021Net sales5,423.44,873.3111%Operating profit274.2226.8121%Profit before income taxes279.4220.1127%Net profit attributable to Panasonic Corporation stockholders195.6130.1150%Consolidated Financial Results1. Fiscal 2022 3Q ended December 31, 2021A. Operating Results　　During the nine months ended December 31, 2021 (fiscal 2022), the global economy saw progress in economic recovery as a result of a tentative stabilization of COVID-19 cases in Japan as well as many countries in the U.S. and Europe. However, there are still uncertainties over such factors as price surges in natural resources, price increases caused by supply shortages, and ongoing concern regarding the situation of COVID-19 variants. Therefore, the outlook for world economies remains unclear, although the global and Japanese economies seem to indicate a phase of moderate recovery.　　Under such management conditions, Panasonic continues to control fixed costs according to business conditions and to make efforts to capture new business opportunities reflecting changes in society brought about by COVID-19. Through all these efforts, the Company will continue to enhance its management structure in the final year of the Mid-term strategy that started in fiscal 2020. Additionally, in all of our businesses, the Company will identify the areas in which the Company should be aggressive and thoroughly enhance the competitiveness in these areas.　　For the nine months ended December 31, 2021, in September 2021, the Company completed its acquisition of the 80% of shares of the U.S. company Blue Yonder Holding, Inc. (“Blue Yonder”), which is one of the leading global providers of specialized supply chain software. As a result, the Company made Blue Yonder a wholly-owned subsidiary, together with the 20% of its shares acquired in July 2020. The Company aims to create new value by combining Blue Yonder’s software platform, which offers state-of-the-art artificial intelligence (AI) and machine learning (ML) capabilities, with Panasonic’s manufacturing expertise, which has been cultivated over many years, as well as its edge devices, IoT applications, and sensing technologies. This acquisition will accelerate Panasonic’s and Blue Yonder’s shared vision for an “Autonomous Supply ChainTM” and will provide solutions to customers’ management issues. In addition, Panasonic aims to contribute to global environmental Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 5 -Yen (billions)Fiscal 2022Third quarterFiscal 2021Third quarterPercentage2022/2021Sales2,737.62,651.6103%Operating profit105.1149.570%conservation and to a sustainable society through energy-use reduction and effective utilization of recourses.　　In October 2021, the Company terminated the current Divisional Company system and substantially started its operations based on the new structure toward the transition to a new organizational system in which Panasonic is a holding company from April 2022. Under the new structure, the Company continues to execute steadily the Mid-term strategy and prepare for the smooth operation of each operating company to be established on April 1, 2022.　　For the nine months ended December 31, 2021, the Company’s consolidated group sales increased by 11% to 5,423.4 billion yen from a year ago. Domestic sales increased due to favorable sales of products for industrial-use as well as information- and communication-use products. Overseas sales also increased due mainly to increased sales of automotive batteries and mounting machines with growing demand as well as the effect of new consolidation of Blue Yonder.　　Operating profit increased by 21% to 274.2 billion yen from a year ago. This is due mainly to increased sales as well as recognized a gain from the re-evaluation of the existing equity in Blue Yonder (for further details, please see Note 2. of “Note” section), despite the impact of raw material price hikes and other factors. Profit before income taxes increased by 27% to 279.4 billion yen and Net profit attributable to Panasonic Corporation stockholders increased by 50% to 195.6 billion yen from a year ago.B. Breakdown by Reportable SegmentLifestyle　　Sales increased by 3% to 2,737.6 billion yen from a year ago. This is due mainly to favorable sales of refrigerators in Asia and China as well as favorable sales of wiring devices in India. Operating profit decreased to 105.1 billion yen from a year ago due largely to the impact of raw material price hikes, despite increased sales, rationalization efforts and others.Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 6 -Yen (billions)Fiscal 2022Third quarterFiscal 2021Third quarterPercentage2022/2021Sales774.9725.8107%Operating profit (loss)(2.7)(23.4)－Yen (billions)Fiscal 2022Third quarterFiscal 2021Third quarterPercentage2022/2021Sales648.1576.1112%Operating profit (loss)42.6(14.6)－Yen (billions)Fiscal 2022Third quarterFiscal 2021Third quarterPercentage 2022/2021Sales840.6725.3116%Operating profit65.324.9262%Automotive　　Sales increased by 7% to 774.9 billion yen from a year ago. This is due to increased sales overall, along with recovery in automotive production from the previous year, despite the impact of semiconductor shortages. Operating profit improved from a year ago to a loss of 2.7 billion yen. This is due to increased sales and the impact from temporary expenses related to onboard charging systems in the previous year, despite the impact of price hikes in parts and components.Connect　　Sales increased by 12% to 648.1 billion yen from a year ago. This is due mainly to the effect of consolidation of Blue Yonder, increased sales of mounting machine with growing PC and server related demand as well as sale recovery of projectors mainly in the U.S. Operating profit increased to 42.6 billion yen from a year ago. This is due mainly to increased sales as well as a recognized gain from the re-evaluation of the existing equity in Blue Yonder upon its consolidation into Panasonic.Industry　　Sales increased by 16% to 840.6 billion yen from a year ago. This is due mainly to increased sales of products for information- and communication-infrastructure, capacitors and industrial-use motors. Operating profit increased to 65.3 billion yen from a year ago. This is due mainly to the effect of rationalization and increased sales, despite the impact of factors such as raw material price hikes.Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 7 -Fiscal 2022Third quarterFiscal 2021Third quarterPercentage 2022/2021Sales568.0445.9127%Operating profit51.920.2257%Fiscal 2022Third quarterFiscal 2021Third quarterPercentage 2022/2021Sales732.2669.3109%Operating profit11.410.1113%EnergyYen (billions)　　Sales increased by 27% to 568.0 billion yen from a year ago. This is due to significant increased sales of automotive batteries with growing demand as well as favorable sales of power storage systems. Operating profit increased to 51.9 billion yen from a year ago. This is due largely to increased sales despite the impact of raw material price hikes.Other (Other business activities which are not included in the reportable segments)Yen (billions)　　Sales increased by 9% to 732.2 billion yen from a year ago due to steady sales of housing related products. Operating profit increased to 11.4 billion yen from a year ago.C. Consolidated Financial Condition　　Net cash provided by operating activities for the nine months ended December 31, 2021, amounted to 103.9 billion yen, compared with an inflow of 330.1 billion yen a year ago. This is due mainly to an increase in inventories as well as an increase in payment for income taxes, despite an increase in quarterly net profit.　　Net cash used in investing activities amounted to 760.8 billion yen, compared with an outflow of 18.2 billion yen a year ago. This is due to investment related to the consolidation of Blue Yonder, an increase in capital expenditure and one-off proceeds from the transfer of assets in the previous year.　　Accordingly, free cash flows (net cash provided by operating activities and investment activities) decreased by 968.8 billion yen from a year ago to an outflow of 656.9 billion yen.　　Net cash used in financial activities amounted to 89.9 billion yen, compared with an inflow of 50.3 billion yen a year ago. This is due mainly to the repayment of interest-bearing debt of Blue Yonder.　　Taking factors such as exchange fluctuations into consideration, cash and cash equivalent totaled 889.7 billion yen as of December 31, 2021, which is a decrease of 703.5 billion yen from March 31, 2021.　　The Company’s consolidated total assets as of December 31, 2021 were 7,376.8 billion yen, which is an increase of 529.7 billion yen from March 31, 2021. This is due mainly to an Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 8 -Net salesOperatingprofitProfit beforeincometaxesNet profitattributabletoPanasonicCorporationstockholdersEarnings pershareattributable toPanasonicCorporationstockholders,basic(Reference)AdjustedoperatingprofitPrevious forecast as of October 28, 2021 (A)7,300.0370.0370.0240.0102.85 yen400.0Revised forecast (B)7,300.0370.0370.0240.0102.85 yen365.0Difference (B-A)――――-35.0Difference (%)――――-8.8%(Reference) Financial Results for fiscal 20216,698.8258.6260.8165.170.75 yen307.2increase in inventories as well as the consolidation of Blue Yonder.　　The Company’s consolidated total liabilities were 4,345.0 billion yen, which is an increase of 266.5 billion yen from March 31, 2021. This is due mainly to an increase in straight bonds from raising funds related to the consolidation of Blue Yonder.　　Panasonic Corporation stockholders’ equity increased by 260.8 billion yen from March 31, 2021, to 2,854.8 billion yen. This is due mainly to recording of Net profit attributable to Panasonic Corporation stockholders. With non-controlling interests added to Panasonic Corporation stockholders’ equity, total equity was 3,031.7 billion yen.2. Forecast for fiscal 2022The consolidated financial forecast for fiscal 2022 (from April 1, 2021 to March 31, 2022)Yen (billions)Note: Adjusted operating profit is calculated by subtracting cost of sales and selling, general and administrative expenses from sales.　　For the consolidated financial forecast for fiscal 2022, there are no changes in net sales, operating profit, profit before income taxes and net profit attributable to Panasonic Corporation stockholders from the previous forecasted announced on October 28, 2021.　　However, the Company revises downward adjusted operating profit which the Company discloses voluntarily, reflecting the current management environment including reduced automobile production and raw material price hikes. As for operating profit, profit before income taxes and net profit attributable to Panasonic Corporation stockholders, the Company retains these previous forecasts due to expected gains from sale of assets and other factors.Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 9 -Disclaimer Regarding Forward-Looking StatementsThis press release includes forward-looking statements about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this press release do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Panasonic Group’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of this press release. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings under the Financial Instrument and Exchange Act of Japan (the FIEA) and other publicly disclosed documents.The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; the possibility that the spread of the novel coronavirus infections may adversely affect business activities of the Panasonic Group; the possibility that excessive currency rate fluctuations of the U.S. dollar, the euro, the Chinese yuan and other currencies against the yen may adversely affect costs and prices of Panasonic’s products and services and certain other transactions that are denominated in these foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the possibility of the Panasonic Group not being able to respond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility of not achieving expected results or incurring unexpected losses in connection with the alliances or mergers and acquisitions; the possibility of not being able to achieve its business objectives through joint ventures and other collaborative agreements with other companies, including due to the pressure of price reduction exceeding that which can be achieved by its effort and decrease in demand for products from business partners which Panasonic highly depends on in BtoB business areas; the possibility of not achieving expected benefits in connection with the transition to a new organizational system in which Panasonic is a holding company; the possibility of the Panasonic Group not being able to maintain competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; restrictions, costs or legal liability relating to laws and regulations or failures in internal controls; fluctuations in market prices of securities and other financial assets in which the Panasonic Group has holdings or changes in valuation of non-financial assets, including property, plant and equipment, goodwill and deferred tax assets; future changes or revisions to accounting policies or accounting rules; the possibility of incurring expenses resulting from a leakage of customers’ or confidential information from Panasonic Group systems due to unauthorized access or a detection of vulnerability of network-connected products of the Panasonic Group; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world, disruption of supply chain and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in the most recent English translated version of Panasonic’s securities reports under the FIEA and any other documents which are disclosed on its website.Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 10 -Yen (millions)December 31, 2021March 31, 2021DifferenceCurrent assets:3,537,4093,922,747(385,338)Cash and cash equivalents889,7451,593,224(703,479)Trade receivables and contract assets1,270,0511,194,39175,660Other financial assets160,456149,62910,827Inventories1,059,124832,569226,555Other current assets158,033152,9345,099Non-current assets:3,839,3632,924,326915,037Investments accounted for using the equity method405,401455,960(50,559)Other financial assets176,687231,024(54,337)Property, plant and equipment1,069,1541,061,6147,540Right-of-use assets242,241249,954(7,713)Other non-current assets1,945,880925,7741,020,106Total assets7,376,7726,847,073529,699Current liabilities:2,742,3062,804,328(62,022)Short-term debt, including current portion of long-term debt254,384309,790(55,406)Lease liabilities59,66959,346323Trade payables1,119,7951,045,61774,178Other financial liabilities210,065220,583(10,518)Other current liabilities1,098,3931,168,992(70,599)Non-current liabilities:1,602,7291,274,243328,486Long-term debt1,179,580879,728299,852Lease liabilities192,386198,559(6,173)Other non-current liabilities230,763195,95634,807Total liabilities4,345,0354,078,571266,464Panasonic Corporation stockholders’ equity:2,854,8012,594,034260,767Common stock259,168258,981187Capital surplus526,567529,157(2,590)Retained earnings2,297,4082,154,023143,385Other components of equity(18,903)(138,370)119,467Treasury stock(209,439)(209,757)318Non-controlling interests176,936174,4682,468Total equity3,031,7372,768,502263,235Total liabilities and equity7,376,7726,847,073529,699Yen (millions)December 31, 2021March 31, 2021DifferenceRemeasurements of defined benefit plans*－－－Financial assets measured at fair value through other comprehensive income16,97934,832(17,853)Exchange differences on translation of foreign operations(40,329)(179,860)139,531Net changes in fair value of cash flow hedges4,4476,658(2,211)Condensed Quarterly Consolidated Statements of Financial PositionNote: Other components of equity breakdown:* Remeasurements of defined benefit plans is directly transferred to Retained earnings from Other components of equity.Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 11 -Yen (millions)Fiscal 2022Nine Months endedDecember 31, 2021Fiscal 2021Nine Months endedDecember 31, 2020Percentage2022/2021%%%Net sales5,423,356100.04,873,289100.0111Cost of sales(3,886,716)(71.7)(3,454,058)(70.9)Gross profit1,536,64028.31,419,23129.1108Selling, general and administrative expenses(1,249,349)(23.0)(1,187,305)(24.3)Share of profit (loss) of investments accounted for using the equity method(11,714)(0.2)(17,922)(0.4)Other income (expenses), net(1,426)(0.0)12,7960.3Operating profit274,1515.1226,8004.7121Finance income19,7210.412,1880.2Finance expenses(14,496)(0.3)(18,904)(0.4)Profit before income taxes279,3765.2220,0844.5127Income taxes(75,188)(1.4)(75,822)(1.5)Net profit204,1883.8144,2623.0142Net profit attributable to:Panasonic Corporation stockholders195,6343.6130,1422.7150Non-controlling interests8,5540.214,1200.361Notes:1.Depreciation (tangible)132,734million yen131,932million yen2.Capital investment150,061million yen113,984million yen3.R&D expenditures311,200million yen307,366million yen4.Number of employees240,786245,546Condensed Quarterly Consolidated Statements of Profit or Loss andCondensed Quarterly Consolidated Statements of Comprehensive IncomeCondensed Quarterly Consolidated Statements of Profit or LossConsolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 12 -Yen (millions)Fiscal 2022Nine Months endedDecember 31, 2021Fiscal 2021Nine Months endedDecember 31, 2020Percentage2022/2021%Net Profit204,188144,262142Other comprehensive incomeItems that will not be reclassified to profit or loss:Remeasurements of defined benefit plans1,692(2,237)Financial assets measured at fair value through other comprehensive income(13,314)243,487Subtotal(11,622)241,250Items that may be reclassified to profit or loss:Exchange differences on translation of foreign operations146,269(26,321)Net changes in fair value of cash flow hedges(4,181)1,678Subtotal142,088(24,643)Total other comprehensive income130,466216,607Comprehensive income334,654360,86993Comprehensive income attributable to :Panasonic Corporation stockholders319,291342,76093Non-controlling interests15,36318,10985Condensed Quarterly Consolidated Statements of Comprehensive IncomeConsolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 13 -Yen (millions)Fiscal 2022Nine Months ended December 31, 2021CommonstockCapitalsurplusRetainedearningsOther componentsof equityTreasurystockPanasonicCorporationstockholders’equityNon-controllinginterestsTotal equityBalances as of April 1, 2021258,981529,1572,154,023(138,370)(209,757)2,594,034174,4682,768,502Comprehensive income:Net profit－－195,634－－195,6348,554204,188Remeasurements of defined benefit plans－－－1,611－1,611811,692Financial assets measured at fair value through other comprehensive income－－－(13,374)－(13,374)60(13,314)Exchange differences on translation of foreign operations－－－139,531－139,5316,738146,269Net changes in fair value of cash flow hedges－－－(4,111)－(4,111)(70)(4,181)Total comprehensive income－－195,634123,657－319,29115,363334,654Transfer from other components of equity to retained earnings－－6,090(6,090)－－－－Cash dividends－－(58,339)－－(58,339)(12,075)(70,414)Changes in treasury stock－(0)－－(34)(34)－(34)Share-based payment transactions187(277)－－352262－262Transactions with non-controlling interests and other－(2,313)－1,900－(413)(820)(1,233)Balances as of December 31, 2021259,168526,5672,297,408(18,903)(209,439)2,854,801176,9363,031,737Yen (millions)Fiscal 2021Nine Months ended December 31, 2020CommonstockCapitalsurplusRetainedearningsOther componentsof equityTreasurystockPanasonicCorporationstockholders’equityNon-controllinginterestsTotal equityBalances as of April 1, 2020258,867531,0481,646,403(227,957)(210,012)1,998,349157,5192,155,868Comprehensive income:Net profit－－130,142－－130,14214,120144,262Remeasurements of defined benefit plans－－－(2,634)－(2,634)397(2,237)Financial assets measured at fair value through other comprehensive income－－－243,409－243,40978243,487Exchange differences on translation of foreign operations－－－(29,757)－(29,757)3,436(26,321)Net changes in fair value of cash flow hedges－－－1,600－1,600781,678Total comprehensive income－－130,142212,618－342,76018,109360,869Transfer from other components of equity to retained earnings－－84,406(84,406)－－－－Cash dividends－－(58,327)－－(58,327)(9,738)(68,065)Changes in treasury stock－(1)－－(23)(24)－(24)Share-based payment transactions114(213)－－272173－173Transactions with non-controlling interests and other－(1,228)－428－(800)(4,849)(5,649)Balances as of December 31, 2020258,981529,6061,802,624(99,317)(209,763)2,282,131161,0412,443,172Condensed Quarterly Consolidated Statements of Changes in EquityConsolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 14 -Yen (millions)Fiscal 2022Nine Months endedDecember 31, 2021Fiscal 2021Nine Months endedDecember 31, 2020Cash flows from operating activitiesNet profit204,188144,262Adjustments to reconcile net profit to net cash provided by operating activitiesDepreciation and amortization245,697235,251(Increase) decrease in trade receivables and contract assets(31,281)(105,208)(Increase) decrease in inventories(210,000)(6,993)Increase (decrease) in trade payables58,2801,586Other(162,950)61,165Net cash provided by operating activities103,934330,063Cash flows from investing activitiesPurchase of property, plant and equipment(167,454)(131,224)Proceeds from sale of property, plant and equipment10,42713,319Purchase of investments accounted for using the equity method and other financial assets(31,230)(101,815)Proceeds from sale and redemption of investments accounted for using the equity method and other financial assets28,803116,308Other(601,397)85,211Net cash used in investing activities(760,851)(18,201)Cash flows from financing activitiesIncrease (decrease) in short-term debt(155,974)(1,669)Increase (decrease) in long-term debt148,559124,297Dividends paid to Panasonic Corporation stockholders(58,339)(58,327)Dividends paid to non-controlling interests(12,075)(9,738)(Increase) decrease in treasury stock(34)(24)Other(12,020)(4,217)Net cash provided by (used in) financing activities(89,883)50,322Effect of exchange rate changes on cash and cash equivalents, and other43,321(19,799)Net increase (decrease) in cash and cash equivalents(703,479)342,385Cash and cash equivalents at beginning of period1,593,2241,016,504Cash and cash equivalents at the end of the period889,7451,358,889Condensed Quarterly Consolidated Statements of Cash FlowsConsolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 15 -Notes to consolidated financial statements:1.　The Board of Directors of Panasonic resolved on May 31, 2021 the transition to a holding company system through absorption-type company split, which is scheduled to take effect on April 1, 2022 as well as to enter into absorption-type company split agreements with each of nine succeeding companies, subject to necessary approvals from relevant government agencies.2.　The Company completed, on September 17, 2021 (September 16 in U.S. time), an additional acquisition of the remaining 80% of shares in Blue Yonder Holding, Inc. (“Blue Yonder”). Accordingly, with the 20% of shares Panasonic acquired in July 2020, the Company completed its acquisition of Blue Yonder. The consideration value related to the additional acquisition of 80% of shares including USD 1.42 billion of net interest-bearing debt of Blue Yonder amounted to USD 7.08 billion (776.0 billion yen). The total consideration value for acquiring all shares, by combining USD 0.81 billion (87.3 billion yen) for the 20% of shares that Panasonic acquired in July 2020 to the additional acquisition value, amounted to USD 7.89 billion (863.3 billion yen). The Company will make the adjustments of working capital and others accordingly.Furthermore, upon its additional acquisition, the Company re-evaluated the value of the existing 20% of shares and recognized a gain of 58.3 billion yen in other income. The market value for the above re-evaluation is tentative and there is a possibility to be adjusted in the future.3.　The Company issued a total of 400.0 billion yen of public offering of hybrid bonds (subordinated bonds) on October 14, 2021. Upon the above acquisition (please see Note 2. of “Note” section), the capital for the acquisition was funded by reserved cash and a bridge loan. All of the cash raised from the bonds were used to repay the bridge loan.4.　Assumption for going concern: None5.　Number of consolidated subsidiaries as of December 31, 2021: 536Number of companies under the equity method as of December 31, 2021: 67Consolidated Financial Resultsfor Fiscal 2022 3Q, ended December 31, 2021- 16 -Yen (billions)Fiscal 2022Nine Months ended December 31, 2021Fiscal 2021Nine Months endedDecember 31, 2020Sales22/21OperatingProfit(Loss)% of Sales22/21SalesOperatingProfit(Loss)% of Sales%%%%Reportable Segments:Lifestyle2,737.6103105.13.8702,651.6149.55.6Automotive774.9107(2.7)(0.4)－725.8(23.4)(3.2)Connect648.111242.66.6－576.1(14.6)(2.5)Industry840.611665.37.8262725.324.93.4Energy568.012751.99.1257445.920.24.5Subtotal5,569.2109262.24.71675,124.7156.63.1Other732.210911.41.6113669.310.11.5Eliminations and adjustments(878.0)－0.6－－(920.7)60.1－Total5,423.4111274.25.11214,873.3226.84.7Information by SegmentNotes: 1. The Panasonic Group divides its reportable segments into the following five segments, ”Lifestyle,” ”Automotive,” “Connect,” “Industry” and “Energy.” “Other” includes operating segments which are not included in the above mentioned reportable segments and other business activities, such as Entertainment & Communication, Housing and sales of raw materials.2. The figures in “Eliminations and adjustments” include revenue and expenses which are not attributable to any segments for the purpose of evaluating operating results of each segment, consolidation adjustments and eliminations of intersegment transactions.3. The Company changed its reportable segments upon the reorganization of the group structure on October 1, 2021.・”Lifestyle” is based on the previous segments of “Appliances” and “Life Solutions.”・”Automotive” is comprised of Automotive Solutions from the previous “Automotive” segment.・”Connect” is transferred from the previous “Connected Solutions” segment.・”Industry” is comprised of Electromechanical Control Business Division, Industrial Device Business Division, Device Solutions Business Division, and Electronic Materials Business Division from the previous “Industrial Solutions” segment.・”Energy” is comprised of Automotive Batteries from the previous “Automotive” segment and Energy Solutions Business Division and Energy Device Business Division from the previous “Industrial Solutions” segment.・The figures for segment information in fiscal 2021 and the first half of fiscal 2022 have been reclassified to conform to the presentation as of October 1, 2021.