Oct 29, 2015

Company / Press Release

Panasonic Announces Memorandum of Understanding with Regard to Transfer of Lead Acid Battery Business to GS Yuasa

Osaka, Japan - Panasonic Corporation ("Panasonic") today announced that Panasonic and GS Yuasa International Ltd. ("GS Yuasa") have signed a memorandum of understanding (MOU) in which Panasonic agreed to transfer its Lead Acid Battery Business that is mainly operated by Panasonic Storage Battery Co., Ltd. ("PSB"), a wholly owned subsidiary of Panasonic, to GS Yuasa (the "Business Transfer"). Panasonic and GS Yuasa are currently engaged in detailed discussions with the goal of promptly finalizing a definitive agreement.

1. Background and Objectives of the Business Transfer

Since our Lead Acid Battery Business started the production of automotive lead acid batteries in 1937, we have developed and sold our products for both industrial and automotive. In 1975, we started the production at Hamanako Plant in Shizuoka Prefecture and in October 2004, Hamanako Plant separated from Panasonic as a wholly owned subsidiary, PSB. Since its launch of the automotive battery "caos" in 2005, caos has broadened its exposure in Japan and maintained a leading position. Although the spread of start-stop system vehicles supports the steady growth in demand for lead acid batteries, competition is becoming increasingly severe due to the higher price of lead. It is necessary to invest continuously in order to maintain steady growth by strengthening the corporate management and expanding overseas sales. Thus we have decided that it would be best to run the businesses under GS Yuasa, an industry leader with its large scale business and strong competitiveness.

2. Outline of the MOU

An outline of the MOU signed by Panasonic and GS Yuasa is provided below.

1)Panasonic will transfer 85.1% of PSB shares to GS Yuasa

2)Panasonic will own the remaining 14.9% for 2 years in order to support the business transition

3)Panasonic will transfer lead acid batteries business in overseas to GS Yuasa Group in addition to the Business Transfer

3.Future Schedule

Panasonic and GS Yuasa are currently engaged in detailed discussions with the goal of promptly finalizing a definitive agreement. The Business Transfer will be made in accordance with the terms of the definitive agreement and is currently expected to be completed in 1st quarter of FY2016.

About Panasonic

Panasonic Corporation is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, enterprise solutions and device industries. Since its founding in 1918, the company has expanded globally and now operates 468 subsidiaries and 94 associated companies worldwide, recording consolidated net sales of 7.715 trillion yen for the year ended March 31, 2015. Committed to pursuing new value through innovation across divisional lines, the company uses its technologies to create a better life and a better world for its customers. To learn more about Panasonic: http://www.panasonic.com/global.

Corporate profile of PSB
(1) Corporate name Panasonic Storage Battery Co., Ltd.
(2) Head office 555 Sakaijuku, Kosai City, Shizuoka, Japan
(3) Name and title of representative President Kazuto Nezu
(4) Principal lines of business Development,manufacturing and sale of automotive batteries, VRLAs for Electrical Vehicles and VRLAs
(5) Amount of capital JPY2 billion
(6) Date established October 1, 2004
Corporate profile of GS Yuasa
(1) Corporate name GS Yuasa International Ltd.
(2) Head office 1,Inobanba-cho, Nishinosho, Kisshoin, Minami-ku, Kyoto, Japan
(3) Name and title of representative President Osamu Murao
(4) Principal lines of business Manufacturing & sales of automotive batteries, industrial batteries, power supply systems, switch gear, lighting equipment, ultraviolet systems, specialty equipment and other electrical equipment
(5) Amount of capital JPY10billion
(6) Date established June 1, 2004

Media Contacts:

Public Relations Department
Panasonic Corporation
Tel: +81-(0)3-3574-5664 Fax: +81-(0)3-3574-5699
Panasonic News Bureau
Tel: +81-(0)3-3542-6205 Fax: +81-(0)3-3542-9018

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