Panasonic CEO: Aiming to improve business profits over the next 2 years/sale of related divisions

CEO Kusumi said that it was because of such concerns that a Japanese electronics manufacturer sold part of its automotive systems division to a subsidiary of Apollo Global Management (APO.US) for 311 billion yen last year. “But our goal isn't to sell,” he added.

Two years ago, Panasonic adopted a holding company system. This is a change to make each division's responsibility for performance more clear and to make such transactions easier. At the medium-term strategy briefing last week, Panasonic stated that it was unable to achieve group goals of return on equity of 10% or more and cumulative operating income of 1.5 trillion yen in the 2 fiscal years ending next April.

Asked about the possibility of an initial public offering (IPO) of a subsidiary, President Kusumi stated, “It is necessary to consider and consider that the listing of parent companies and subsidiaries is currently under regulatory scrutiny.”

Mr. Kusumi, who will take office as Chief Executive Officer (CEO) in mid-2021, is considering securing more cash by investing in growth fields.

Panasonic, which used to be a global leader in consumer electronics sales, is now the main battery supplier to Tesla (TSLA.US), and while aiming to maintain its position in home appliances and industrial equipment, it is also investing in software.

In response to a question about whether the plan to build a third plant in North America to supply batteries for electric vehicles is sluggish, CEO Kusumi stated that it is currently focusing on improving productivity and profitability at existing plants in Nevada and Kansas.

Therefore, the CEO added that it is expected that the decision on Plant 3 will take some time. Panasonic also operates a battery factory in Osaka.