Annual Report2014
For the Year Ended March 31, 2014

Aiming to Be a
True Business Partner
Providing Optimal Solutions

Panasonic Information Systems Co., Ltd.

Panasonic Information Systems Co., Ltd.
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Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

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Panasonic Information Systems Co., Ltd.
ProfileAnnual Report 2014

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Message fromthe President

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Business Overview

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Corporate Governance

Financial Section

Financial Section

03 Nine-Year Summary of Key Financial Indicators

Business Overview

Stock Information/
Corporate History

04 Financial Highlights in Graphs

05

Message from the President
Cloud services for clients outside the PanasonicGroup as well as for small and medium-sizedcompanies are trending favorably.

09

Topics 2014

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Panasonic Information Systems Co., Ltd.

Corporate Governance

09 Strengthening Our Market Outside the Panasonic Group (General Market)

Stock Information/
Corporate History

Easy to Use for Small and Medium-Sized Enterprises—Expanding the Range of Nextructure Server Services
For Abeno Harukas Operated by Kintetsu Corporation—Introduction of Ticketing System at Observatory and Art Museum

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11 Reinforcing Partnerships with the Panasonic Group

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M2M Technology: Raising the Bar for Disaster Preparedness—Adopted for the Panasonic Lithium-Ion Battery Storage System

12 Strengthening Management Practices

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Return to thetable of contentsPagenumberSales and System Engineering Departments Working Together—Improving Customer Satisfaction
Providing Displays That Are Closer to Reality—Changing the Business Categories

13

Business Overview
13 Outline of System Solutions 14 Outline of System Services

Cautionary Statement with Respect to Forward-Looking Statements
This annual report contains forward-looking statements that reflect the Panasonic Information
Systems Group’s plans, business strategies and targets. These statements are in accordance withassumptions and beliefs determined by management based on currently available information andinvolve uncertainties and changes in the business environment at home and abroad. Actual results
and business performance may differ materially from these statements.

15

CSR Efforts

17

Corporate Governance

20

Financial Section

40

Stock Information

41

Corporate History

Panasonic Information Syyststetem
ms Co.
ms
C , Ltd.
Ltd
Profile

02

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Topics
Top
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2014
14

Busine
Bus
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CS Ef
CSR
Effor
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CorrporC
porateate Governan
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Fin
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Sto
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Infform
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CorporCor
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ate
HiistooryryProfileOffering Optimal Solutions for the Array of Problems Facedby Small- to Medium-Sized Businesses
For some 50 years, since the time of Matsushita Electric Works, Panasonic Information Systems has been achieving results in systems construction and operation.
By linking the cloud technology we offer on our own data center platforms, we can provide solutions to even more clientele.

Broad Range ofDevelopment Capability
A wide variety of technologies and know-how has
been cultivated within the Panasonic Group throughour response to client needs.
Electric andelectronics
Data

Housing

Parts

Semiconductors

Business of
the Panasonic Group
companies

Communications

Medicine

Environment

Equipment

Logistics

As a Multi-Vendor

Strong in the Cloud

We choose and integrate the optimal hardware andsoftware as a user system integrator.

We have an indispensable cloud infrastructure =a data center.

Company

Company

CompanyA

B

C

Choose optimal components and build system

VirtualserverHighquality
support

Necessary functions and cost reduction

Breakdown of Net Sales
by BusinessCorporate Data (as of March 31, 2014)
Company Name:
Panasonic Information Systems Co., Ltd.
Headquarters:
19-19, Chayamachi, Kita-ku, Osaka 530-0013, Japan
Established: February 22, 1999
Capital: ¥1,040 million
Fiscal Year-End: March 31
Employees: 687 (consolidated)

Thin
ClientOur Business:

SystemServices

System operation services at data centers
Cloud services
Network services

SystemSolutionsCore system architecture solutions
IT infrastructure architecture solutions
Commissioned system development
Development and provision of package software

SystemSystemSolutions Services

38.8%
Sales of computers, servers, andcommunications equipment
Network and facility construction

61.2%

Breakdown of Net Salesby Market
Outsidethe Panasonic Group(general
21.5%
market)Panasonic
Group

78.5%

Panasonic Information Systems Co., Ltd.
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Annual Report 2014

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Topics 2014

Business Overview

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Information Systems Co., Ltd. and consolidated subsidiaries
Nine-Year Summary of Key Financial Indicators PanasonicYears Ended March 31

Financial Section

Stock Information/
Corporate History

For the latest information click here (IR Library)
http://is-c.panasonic.co.jp/en/ir/library/

Millions of Yen

Thousands of
U.S. Dollars*1

2006

2007

2008

2009

2010

2011

2012

2013

2014

2014

¥ 41,385¥ 40,226¥ 39,066¥ 37,320¥ 36,650¥ 34,221¥ 36,373¥ 35,179¥ 36,334$ 352,757

Operating income

4,610

5,014

4,877

4,632

4,371

4,205

4,255

4,425

4,465

43,350Net income

2,800

3,001

2,842

2,783

2,563

2,581

2,227

2,702

2,685

26,068

Research and development costs

13

75

39

21

1

76

129

135

121

1,175

Capital investment

574

363

1,066

2,581

2,015

2,560

2,046

893

1,623

15,757

Cash and cash equivalents

4,625

4,391

4,679

3,968

4,759

4,230

14,069

5,500

4,261

41,369Total assets

18,61021,307

21,18523,211

25,14627,31729,012

31,35533,283

323,136

Equity10,985

13,346

15,552

17,604

19,65921,35922,85924,83825,885

251,311

Net cash provided by operating activities

2,468

3,742

2,848

3,864

4,483

3,154

3,834

4,670

4,133

40,126

Net cash (used in) provided by investing activities(576)(3,337)(1,921)(3,866)(2,829)(2,862)

6,908(12,299)(4,480)(43,495)

Free cash flow

1,892

406

927

(1)

1,654

292

10,742(7,628)(347)(3,369)Net cash used in financing activities

(347)

(639)

(639)

(710)

(863)

(821)

(903)

(940)

(892)

(8,660)Net sales

Yen

U.S. Dollars

Basic net income per share*2¥ 260.42¥ 281.65¥ 266.78¥ 261.13¥ 240.51¥ 242.25¥ 209.02¥ 253.56¥ 252.01$ 2.45Full-year dividends per share

55.00

55.00

65.00

75.00

65.00

65.00

65.00

65.00

65.00

0.63

%

Operating margin

11.1%

12.5%

12.5%

12.4%

11.9%

12.3%

11.7%

12.6%

12.3%

Return on equity (ROE)

28.7%

24.7%

19.7%

16.8%

13.8%

12.6%

10.1%

11.3%

10.6%

Return on assets (ROA)

16.1%

15.0%

13.4%

12.5%

10.6%

9.8%

7.9%

9.0%

8.3%

Equity ratio

59.0%

62.5%

73.3%

75.7%

78.2%

78.2%

78.8%

79.2%

77.8%

*1. Amounts expressed in U.S. dollars are calculated using the exchange rate prevailing on March 31, 2014 of ¥103 to US $1.00.
*2. Diluted net income per share is not indicated here, because there are no potentially dilutive shares.

Panasonic Information Systems Co., Ltd.
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Annual Report 2014

Financial Highlights

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Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Information Systems Co., Ltd. and consolidated subsidiaries
Financial Highlights in Graphs PanasonicYears Ended March 31

Net Sales

Operating Income/Operating Margin(Millions of Yen)

(Millions of Yen)

50,0006,000

36,334
Millions of Yen

40,00036,65034,221Millions of Yen

5,000

4,371

36,373 35,179

4,465

Operating Income
Operating Margin

4,000

4,205 4,255

Stock Information/
Corporate History

For the latest information click here (IR Library)
http://is-c.panasonic.co.jp/en/ir/library/

Net Income

Research and Development Costs(%)(Millions of Yen)

(Millions of Yen)

60.0

4,000

200

4,425

121

2,685

50.0

Millions of Yen

3,000
40.0

150

2,702

2,563 2,581

30,000Millions of Yen

129

2,227
3,000

11.9

12.3

1,000

0

0

2010

2011

2012

2013

50

10.0

1,000

0

100

20.0

12.6

11.7

2,000

76

%

2,000
10,00030.0

12.3

20,000

2014

2010

2011

2012

2013

0

2014

0

2010

2011

2012

2013

2014

1
2010

2011

2012

Capital Investment

Basic Net Income per Share

Return on Equity (ROE)

Return on Assets (ROA)(Millions of Yen)

(Yen)

(%)

(%)

3,000

400.0020.0

15.0

252.01

2,560

2,500

2,000

135

1,623
2,046

2,015

Millions of Yen

1,500

Yen

300.00240.51 242.25
209.02200.00

1,000

13.8

253.56

%

12.6
10.1

10.0

2014

8.3

10.6

15.0

2013

10.0

10.6

%

9.8

11.3

9.0
7.9

5.0

893
100.00

5.0

500

0

0

2010

2011

2012

2013

2014

0

0

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Panasonic Information Systems Co., Ltd.
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Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Message from the President

Cloud services for clients outside the Panasonic Group as well as
for small and medium-sized companies are trending favorably.

Kazuhiro
Maegawa
President

Review of the Fiscal Year Ended
March 31, 2014

Responded to the Market Trends

The fiscal year ended March 31, 2014, wasthe first year of our new Medium-Term
Management Plan, during which wepursued our targets of net sales of¥36,000 million and operating incomeof ¥4,450 million. Our efforts resulted in
net sales of ¥36,334 million (up 3.3%
year on year) and operating income of¥4,465 million (up 0.9% year on year),hitting both the sales and income targets.

We have responded to the market
trends that form the backdrop of theabove results. These include expanded
use of cloud services in response tochanges in corporate IT needs, as wellas business use of smart devices
beginning to reach full effect.
The result has been an increase inorders for our cloud services. In addition,
we have created a variety of new cloudMarket Trends
Company-owned
Companies had theirown core systems
and servers.

services that capture the needs of ourclients. During the fiscal year ended
March 31, 2014, we made a particulareffort to create cloud services that arewithin a reasonable price range ofsmall and medium-sized companies,
adding to our high-quality menu thattakes advantage of our experienceand know-how.
These efforts serve to build relationshipsof trust with our clients, which areimportant to maintaining long-term
relationships with our company and arePanasonic IS Solutions
Cloud
Transition to
the cloud to reduce
operational laborand costs.

• Fine-tuned response to niche
needs of small andmedium-sized companies• Reasonable pricing• Maintenance and operation
at our data center• Reliable support and technicalexpertisePanasonic Information Systems Co., Ltd.
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Annual Report 2014

Financial Highlights

Message fromthe President

in turn vital to establishing a solid
revenue base.

Topics 2014

Business Overview

experience we have cultivated to
expand business by challenging
markets outside the Panasonic Group(general market). The key phrase in
the previous Medium-Term
Management Plan was “proceed withbusiness based on our own experienceand know-how gained as a user.” Theemphasis here is the activation of ourperspective as a user in proposing
solutions to clients. While we haveachieved a certain result through such
efforts, we have made “IT as a service”
the key phrase describing what will be
required of us over the next three years.
There currently exists a wide variety
of so-called “cloud services,” and thenumber of these continues to expand.

Medium-Term Management
Plan Progress
We launched the new Medium-Term
Management Plan in the fiscal year ended
March 31, 2014, with the policies
proceeding in accordance with those of
the previous Medium-Term Management
Plan. Panasonic Information Systems,
which began as the information system
department of our parent company,
became independent 15 years ago.
Since then while we have continued tosupport our parent company’sbusiness, we have also applied the

CSR Efforts

Corporate Governance

Nevertheless, the question remains as
to which of these services will havevalue to users and which can fulfill
a truly necessary role. We get feedback
from users that the providers’ logic inregard to the so-called “cloud” gives
them a sense of “being forced” andthat “something is lacking.” That being
the case, it seems that we must use
our own perspective as IT users,
bringing our experience as well as thetechnology and know-how we havecultivated to come up with new IT
services that will be valuable from theuser’s standpoint.
To this end, while we of course will
provide our safe, reliable core cloudservices, one of our goals over the next

Financial Section

Stock Information/
Corporate History

three years is to offer a flexible responseto the client’s fixed needs, so as to provide
new “outside the box” IT services.
By repeating such efforts and going
beyond customer satisfaction to offer“delight,” we can aim to be more thansimply a partner of system operationand development by evolving into
“a true business partner” that contributes
to the client’s business and management.
Also, as called for in the previous
Medium-Term Management Plan, asa member of the Panasonic Group ourefforts to develop further collaborations
between Panasonic products and IT
are important. This will be a platform forsteady new business growth by ourcompany following on infrastructure

Medium- to Long-Term Strategy
Results of the previous Medium-Term Management Plan

our market
Reinforcing partnerships
1 Strengthening
outside the Panasonic Group 2 with the Panasonic Group(general market)

Successively
commenced
business with major
manufacturers andfinancial institutions.
Expanded cloudservice orders andincreased systemservices sales.

General market systemservices sales (Millions of yen)
2,427

2,128

11.8

14.0

% up

% up

2011

2,714

2012

2013

Support for systems revisions in accordance with the Group
restructuring, and creation of a new business platform throughfusion of Panasonic products with IT.

management
3 Strengthening
practices
Contributed to rationalization of quality improvement efforts
through acquisition of ISO 20000 and introduction of the
Project Management Office (PMO).

Current Medium-Term Management Plan

Deepening and broadening efforts
made up to now
We aim to realize “IT as a service” and become “a true business
partner” that contributes to the business of our clients.

Three-year
performance goals
Net sales(Millions of yen)

Operating income(Millions of yen)

Operating margin (%)

2014 (plan) 2015 (plan) 2016 (plan)

36,000 37,000 38,000
4,450 4,500 4,600
12.4
12.2
12.1

Panasonic Information Systems Co., Ltd.
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Annual Report 2014

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applications, and is aimed at increasing
overall Group value.
Based upon the above thoughts,
our efforts in the new Medium-Term
Management Plan will be in line withthe following three themes:

Our Market
1 Strengthening
Outside the PanasonicGroup (General Market)

Progress of Four Key Businesses
Strengthening the development ofbusiness outside the Panasonic Group(general market) is critical to ourcompany’s growth. In addition to the
key businesses that served as driversof growth in the previous Medium-Term
Management Plan, which are IT

Topics 2014

Business Overview

infrastructure construction/operation(ICT infrastructure service) and coresystem construction (system integrationof core functions), we have added thecreation of solutions that combine theproducts and services of the PanasonicGroup with our company’s IT services(collaboration with the PanasonicGroup) and the development oftechnology and product strategies thatwill lead to the creation of new markets(creation of something new). In thefiscal year ended March 31, 2014, weposted net sales of ¥4,760 million for
the four key businesses, achieving
95.2% of our target of ¥5,000 million.
We broadly exceeded our target for“ICT infrastructure service” throughKey businesses outside the Panasonic Group (general market)

Client Orientation
Product Orientation
IT infrastructure building/operation
ERP system building
Collaboration between the Panasonic Group and IT
New products and services

Key businesses

Companies outside the Panasonic Group
Panasonic GroupICT infrastructureservice
System integrationof core functions
Collaboration with
the Panasonic Group
Creation of something
new

CSR Efforts

Corporate Governanceincreased orders for large-scale
infrastructure projects and cloudservices. In the category of “system
integration of core functions,” welaunched the cloud version of the
MetaForce sales management control
system for the distribution andwholesale sector and offered it to small
and medium-sized companies,
resulting in a steady increase of orders.
Nonetheless, new projects involving ourmainstay solution, the ERP package
GRANDIT, decreased.
In the “collaboration with thePanasonic Group” category, video
surveillance solutions combining
network cameras with IT, along withnew lesson-delivery systems for theeducation market applied in tandemwith them, trended favorably. Althoughsales of ticketing systems temporarily
decreased due to the shift fromone-time package installation tomonthly subscription services, we
continued steadily to build a platform
for stable revenue production.
(
For details see page 10.)In the category of “creation ofsomething new,” we launched databaseintegration solutions and developed anindirect materials purchasing service.
These two solutions were only at thebudding stage during the fiscal year
ended March 31, 2014. While they

Financial Section

Stock Information/
Corporate History

contributed very little to sales, we
believe that these businesses have thepotential to expand and grow stronger
through the application of theexperience, know-how and strengths
we have cultivated.

Partnerships
2 Reinforcing
with the Panasonic Group
During the fiscal year ended March 31,
2014, we contributed to improving
work efficiency with a focus on building
work systems for Panasonic Corporation
Eco Solutions Company. In addition,
we supported the launch of the VA
Solutions Catalog, an IT tool for sales
partners, such as representative offices,builders and construction companies,
and launched services to promote its
use. We also speeded up collaborationsof Panasonic products and IT throughthe adoption of our company’s
technologies in Panasonic Corporation
Eco Solutions Company’s lithium-ion
battery storage system.
(
See page 11 for details.)

3 Strengthening
Management Practices
During the fiscal year ended March 31,
2014, we strengthened three aspectsof management practices: quality
improvement; rationalization andefficiency; and human resourcePanasonic Information Systems Co., Ltd.
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Annual Report 2014

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development. Our efforts to improve
quality focused on improving ourscored on CMMI®*, an international
standard for the software development
process, to level four. We are preparing
to step up to that level in 2014.
* Capability Maturity Model Integration (CMMI ®) isa process improvement model for software andsystem development that was developed by the
Software Engineering Institute (SEI) at Carnegie
Mellon University in the United States.

Forecast for the Fiscal Year Ending
March 31, 2015
There is currently a shift in the IT conceptfrom “possession” to “use,” as well asfrom “improving efficiency” to“contributing to management andTopics 2014

Business Overview

business.” IT-related needs become
more complex day by day. We are taking“IT as a Service” as our key phrase in
our approach to these changes as we
aim to evolve into a true business partnerthat contributes to the management
and business of our clients. We believethat to do so consists solely in creating
new IT services from the standpoint of
the user.
In the fiscal year ended March 31,
2014, we launched a high-quality andreasonably priced cloud infrastructure.
We went further to use that infrastructure
to create a new service model by which
we offer not only systems, but also
control of all on-site equipment as a
cloud service.

Increasingly Complex Needs
Past

From now on

A partner of systemdevelopment and operation
for greater work efficiency
was required.

A partner that
contributes to actual
management andbusiness is required.

CSR Efforts

Corporate GovernanceDuring the fiscal year ending March
31, 2015, it will be important to establishthat new service model and increase
the number of clients using it. We also
must steadily meet the challenge of
new services in the ever-progressing IT
industry. We must also continue toprovide solid IT for the mutual supportof work and business within thePanasonic Group.
The upcoming three years will be aperiod of transition, as we deepen andbroaden our business with a view toward
the future. Accordingly, we haveestablished goals for the fiscal year
ending March 31, 2015, of net sales of¥37,000 million and operating incomeof ¥4,500 million. The steady

The Ideal Future Form of Panasonic IS

We aim to evolve into a true
business partner, with our key
phrase being “IT as a Service.”• Rather than our business being over once we havedelivered the systems and equipment, we will work
consistently to contribute to our clients by uncovering
potential needs.
• We will continue to provide services until businessissues are resolved.

Financial Section

Stock Information/
Corporate History

advancement of our policies andcertain fulfillment of our performancegoals are of the utmost importance.
Shareholder Returns
We believe that providing returns toshareholders is one of the management’s
most important priorities. We haveadopted a policy to actively and stably
distribute surplus funds based on financial
performance while keeping in mind theneed to increase internal reserves toreinforce our management foundations
and ensure long-term growth.
For the fiscal year ended March 31,
2014, we paid dividends of ¥65 pershare, for a consolidated payout ratioof 25.8%.
For the fiscal year ending March 31,
2015, we plan to pay dividends fromsurplus funds twice, with record datesof March 31 and September 30, eachamounting to a regular dividend of¥32.50 per share. This figure results inan annual dividend of ¥65 per share anda consolidated payout ratio of 25.2%.
July 2014

PresidentPanasonic Information Systems Co., Ltd.
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Corporate Governance

Financial Section

Stock Information/
Corporate History

Topics 2014 Strengthening Our Market Outside the Panasonic Group (General Market) (1)Easy to Use for Small and Medium-Sized Enterprises

Expanding the Range of Nextructure Server Services
Expanding the Market by Introducing
Nextructure Server Services
Nextructure server services are cloud platform services bornof the experience and know-how gained through theprovision of services to our parent company. Our services
are characterized by our ability to build a dedicated cloudservice platform matching client needs. Our reputation forhigh quality and safety has resulted in the adoption of ourservices as core systems for major companies.
At the same time, recently there has been an expansionof cloud services implemented for shared use by many andunspecified users, mainly small and medium-sizedenterprises. While major customization is not possible,

economies of scale mean that these services can be offeredcheaply. At the same time, concerns about quality andcontinuity make companies hesitant to use these as coresystems. We saw a need for reasonably priced, high-quality
cloud services that could function as core systems, so webuilt a cloud platform that offers high-quality operations andsecurity, as well as cost performance. We are using thisplatform to expand the range of Nextructure server services.
Gaining new customers for high-quality, reasonably
priced cloud services
For
For
For
large companies medium companies small companies
Generalcloud

Joint use of general-purpose cloudby large number of unspecified users

Panasonic IS’s
range of services
up to now

Dedicated cloudPanasonic IS’s
expanded rangeof services

Offering a cloud platform combining
the good aspects of both dedicatedand general cloud services

Benefits of implementation

High-quality ITIL®-compliant services
Published service specifications andperformance index
Achievement of a 99.95% rate ofoperation
Adoption as a de facto standard andmulticarrier selection

Offering Necessary Functions to Small andMedium-Sized Enterprises at Optimal Prices
Our new Nextructure server services are high-quality
ITIL® *1-compliant operating services that are highly capableof a 99.95% rate of operation*2. Nextructure can perform
important systems functions, including as a core system,
just like an owner-operated system.
We anticipate total net sales of ¥500 million by the end of
fiscal 2015 by expanding these services.
*1 Information Technology Infrastructure Library (ITIL) is a set of the bestpractices for IT service management.
*2 Service availability period: Period in which the virtual server is operating.
Down time: During maintenance after prior notice. This excludes stoppagedue to OS damage.

Other Topics
Meeting the Needs of Small and Medium-Sized Enterprises

Launch of MetaForce Cloud Version
We are meeting the needsof small and medium-sizedenterprises, which makeup 90% of the distribution
and wholesale sector, for
the use of a full-scale sales
management control
system suitable to limited
budgets.

Big
companies
Distribution
andWholesaling

Cloud Services
Target Market
More than90%

are small andmedium-sizedenterprises

Broadly Improved Warehouse and Inventory Management Efficiency

Launch of Handy Wireless Terminal Connection
Option for GRANDIT

Panasonic Information Systems Co., Ltd.
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Topics 2014

Business Overview

CSR Efforts

Corpororporate
or
te Go
ovver
e nan
nce
ce

FinancFinancialial Se
Secti
ction
on

Stock Inf
Stock
Informormatiation/
on/
CorporCor
porateate Hi
Histo
story
ry

Topics 2014 Strengthening Our Market Outside the Panasonic Group (General Market) (2)For Abeno Harukas Operated by Kintetsu Corporation

Introduction of Ticketing System at Observatory and Art Museum
In Addition to Building and Offering Systems andServers, Installing Entry Gates and Other Hardware
We provide a cloud-based ticketing system for the Harukas
300 (Observatory) and the Abeno Harukas Art Museum(operated by Kintetsu Corporation), which opened in March2014 in Abeno Harukas, Japan’s tallest skyscraper.
The Harukas 300 (Observatory) has a glass corridor andoutstanding views of the city as well as a garden, while the
Abeno Harukas Art Museum is an urban art museum at thetrain terminal.
We not only built and provided the systems and servers,
but also created and implemented a new cloud-basedmodel for the onsite hardware, such as the various ticket
terminals and entry gates.

The Panasonic IS
Ticketing System

Substantially Reducing Initial Investment andMaking the Control and Operation of Many Kinds
of Equipment and Systems Unnecessary
Implementation of this new service model broadly reduces
the client’s initial investment. In addition, after the system
goes online no labor is required for managing or operating
the hardware or systems. The system helps management
resources focus on the planning and operation of theattractive facilities.
This flexible system can handle a broad variety of tickets,and features speedy ticket issuance. It has been adopted
for use at 16 locations throughout Japan, including themeparks, art museums, and aquariums. We will continue toexpand our service menu and develop the model.

Other Topics
Collaboration with an ASKUL Corporation Subsidiary

Launch of SOLOEL Indirect Materials*1
Purchasing Service
Some 324 companies in 12 industrial groups*2 have installed the ASKULCorporation’s SOLOEL solution that optimizes procurement of indirectmaterials. This service makes use of our know-how and experience.
*1 General materials used in but not directly linked to the production process*2 As of September 30, 2013

(cloud service)

Stronger Sales Promotion
through Collaboration

Previous cloud service

Data center
Construction,
ownership,
management andoperation of theticketing system
servers, storageand network

Onsiteequipment

Promoting service
operation anddevelopment

POS terminals,
receipt printers,
ticketing printers,
entry gate,
control PC

Soloel Corporation

Strengthening the
proposal andintroduction of services
and promoting their use

Panasonic IS

Maximizing Multi-Vendor Functions

Offering Oracle Database Machine Solutions

Panasonic Information Systems Co., Ltd.
Profile11

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Topics 2014 Reinforcing Partnerships with the Panasonic GroupM2M Technology: Raising the Bar for Disaster Preparedness

Adopted for the Panasonic Lithium-Ion Battery Storage System
Support for Stable Storage System Operation
Panasonic Information Systems’s M2M technology has
been adopted for the Panasonic Corporation Eco Solutions
Company lithium-ion battery storage system. In addition to
being rechargeable using solar cells, it is good in both
low-temperature and outdoor environments. In addition toduring disasters, the system can be used to shift peakenergy requirements during normal operational periods.
The need for emergency-use power systems at schools
and other public facilities that serve as evacuation sites has
been growing since the Great East Japan Earthquake. Thissystem is being delivered to disaster preparedness bases,
especially in northeastern Japan. Our M2M technology canbe monitored remotely and has an error reporting function,
so it helps provide reliable and stable storage system
operation.

Ongoing delivery to disaster
preparedness bases,
especially in northeastern Japan
Clients

Telephone notification /Email transmission

3G network
Anomaly

WarningsystemWe offer an EV stand operational support system thatenables automatic fee charging depending on charging
measurement data and makes the status of charging standuse “visible.” If the owner of the stand runs a retail shop, thestand can be connected to the shop’s point card system,
and can also record shop visit trends andallow users to redeem points.

Internet

Data
collection

Remotemonitoring

Repair service response

M2M Technology, Which Is Expected to See
Rapid Market Growth
Lithium-ion battery
storage system

M2M technology is Used in the Operating
System of Panasonic EV Charging StandM2M is a network-based technology by which devices may
exchange information and implement controls. It is used infields in which human intervention may be difficult, such as
the energy, security, and mobile sectors. We anticipate
expanded uses of M2M and broad market growth
for this product.

EV stand operational support system that makes use status visible

Other Topics
For Group Sales Partners

Collaboration with KDDI in Providing Services toPromote Use of IT Tools
Reducing Instructor and Clerical Staff Man-Hours to 1/4

Implementation of Lesson Delivery System to
Kanagawa Dental University

Panasonic Information Systems Co., Ltd.
Profile12

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Ovverview

CS
SR Eff
SR
Efffo
fo
orrts

C por
Cor
pora
atte
at
e Go
GovvveernanceFinancial Secttitionon

Stock Inforrrm
matation/
atioCorporate Hi
Hist
story
sto

Topics 2014 Strengthening Management Practices
Sales and System Engineering Departments Working Together

Improving Customer Satisfaction
One way in which we are working to “delight” our customers isthrough the customer satisfaction surveys we have conductedsince 2010.
This survey was conducted for the fourth time in 2013, andthe overall score has improved for the fourth consecutive year.
At the same time, we found that improvement is needed in the“degree of usefulness,” or whether a proposal is made from thecustomer’s perspective, and “sense of reliability and security,”
with respect to service quality and our coordinators. PanasonicInformation Systems aims to be a true business partner, andthe sales and system engineering departments will work
together to make progress in shoring up our structure.

Manners12

11.01 pts

Usefulness

9.92 pts

Accuracy
10

10.37 pts

Overall scoreup for the
fourthconsecutive
year

8
6

IssuesUsefulness
Flexibility

10.44 pts
2012
012
013
2013
(Points out of 12)

Reliability
and security

9.92 pts (of 12)

10.06 pts

Reliability and security

Prompt response

10.30 pts

10.06 pts (of 12)

Providing Displays That Are Closer to Reality

Breakdown of net sales by business categories
System Services

Changing theBusiness Categories
Until recently, our company’s products were separated into
three categories: “System Services,” “System Solutions,” and“System and Communications Equipment.” Nevertheless,there are many cases in which we propose and supply
solutions that combine both systems and equipment. Also, in
recent years we have been reducing the weight in our
strategy of our sales of the equipment by itself, which often
results in little added value.
Therefore, from April 2013 we combined System Solutions
and System and Communications Equipment into a single
category, System Solutions, to achieve a more realistic
categorization.

System Solutions
System andCommunications
Equipment

15.3
%

38.8

22.1 2013
%

62.6
%

%

2014

61.2
%

Combination of System andCommunications Equipment
into System Solutions

Other Topics
Strengthening Network Security

Designation of Palo Alto Networks as a Gold Partner

Panasonic Information Systems Co., Ltd.
Profile13

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Business Overview

Business Model

Outline of System Solutions

Clients(Millions of Yen)

16,000

System Solutions

System Services• Core system architecture
solutions• IT infrastructure architecture
solutions• Commissioned systemdevelopment• Development and provisionof package software• Sales of computers, servers,and communications
equipment• Network and facility
construction• System operation services
at data centers• Cloud services• Network services

38.8% 61.2%

Solution
proposal

Systemproposal

The Group maintains the safety andsecurity of customer systems fromtwo data center locations, theOsaka IDC and Osaka Central Data
Center. Also we provide operation
services that meet customer needs
through cloud and other services.

Industry Position
Data center
service provision

Systems construction(on-premises)

Packagedevelopment

Software andhardware sales

Independent

Panasonic IS
User

IT equipment
manufacturer

Our business strength lies in activating
the experience and systems know-how
we have accumulated as a user.

12,000

Trading company

13,604

14,082
12,066

14,1298,000

Millions of Yen

13,169

17.8

21.6

17.9

17.2

2010

2011

2012

2013

(%)

10
100.0

Akira Hisano
Senior Managing
Director

775.0

17.7

4,000
0

Breakdownof net sales
by businessCurrently, IT demand exists not only
for greater work efficiency but also
for contribution to management.
The Group meets this need byproposing solutions that employ
IT to address corporatetransformation and structuralreform and configurations ofequipment irrespective of theequipment manufacturer.

Net Sales
Gross Margin

Net Sales/Gross Margin

550.0
%

225.0
0

2014

The Year in Review
We have made great progress in developing
our system solutions by providing solutions
to a number of clients at their bases ofoperations.
In the market outside the Panasonic Group(the general market), in IT we have moved
forward in developing a cloud service modelthat connects directly to client businesses,
which contributes to the client’s management.
In concrete terms, this has meant providing
revenue-sharing-type cloud services forleisure facilities. In this model, our company
shares in the visitor behavior risk concerning,for example, use fees dependent upon visitor
numbers and seasonally adjusted charges.
In addition, our work for the PanasonicGroup put us on the frontlines of marketingstrategy systems construction support thatgets the most out of tablet use anddifferentiates Panasonic from its competitors.

Outlook for the Upcoming Fiscal YearThe development capability we have honed
within the Panasonic Group will continue to be
put to use in the general market, while we willpropose the solutions know-how created in thegeneral market to our Panasonic Group clients.
We will contribute to the further growth of
our clients’ business by offering our newcomplex cloud services in the general market.
For example, we will offer new services tied toleisure facility-oriented businesses, such as
coupon distribution for facilities in neighboringareas and big data analysis services. This will
support expanding businesses with multiple
facilities by increasing the number of visitors
to the overall region.
We will also support the building of strategic
IT systems in the Panasonic Group with thegoal of achieving ¥2 trillion in housing and¥2.5 trillion in B2B. By using a variety of big
data, we can expand distribution networks,
strengthen SCM and ECM, and also shore up
the business management platform.

Panasonic Information Systems Co., Ltd.
Profile14

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

Outline of System Services
Net Sales/Gross Margin

22,500(%)

22,25030,000

10
100.0

%

Financial Section

Stock Information/
Corporate History

550.0

Our corporate group comprises Panasonic Information Systems Co., Ltd., and two
consolidated subsidiaries that conduct IT business, Panasonic Net Solutions Co., Ltd.,and V-Internet Operations, Inc. Each subsidiary possesses a high level of technologicalexpertise and has a well-established position in the specialized solutions market.
We collaborate in developing business with these companies, providing mutual support
through complementary experience and know-how.

225.0

7,500
0

Director

775.0

22.1

15,000Takashi Maeda

Millions of Yen

23,045 22,155 22,244 22,009

Corporate Governance

Developing Information Services Business with
Two Consolidated Subsidiaries

Net Sales
Gross Margin(Millions of Yen)CSR Efforts

20.7

19.9

20.7

23.2

2010

2011

2012

2013

Group Business Structure

0

2014

Clients
The Year in Review
Companies are moving strongly toward the useof cloud services for disaster countermeasure,as a way to reduce operations outsourcing
costs and to make use of advanced functions
in diverse system domains.
In the market outside the PanasonicGroup (general market), we began
targeting small and medium-sizedenterprises in addition to large companies
in developing private cloud services
centering on our mainstay IT infrastructureservice, Nextructure, and our “IT operations
service.” We also began offering highadded-value services, such as remote
operation services and new vertical
integration service for databases.
In our Panasonic Group business, inaddition to improving the efficiency of IT
infrastructure operation, as a businessgrowth strategy we launched infrastructure
platform services to revolutionize workstyles
through the use of tablets.

Outlook for the Upcoming Fiscal Year
While we expect the cloud services market
to continue to expand, in addition todiversifying client needs we expect
intensifying competition among providers
due to service commodification and the
expansion of public clouds. This requires us
to enhance our competitiveness.
We will continue to work in the next fiscal
year to expand cloud services witha guaranteed level of service within
Nextructure for core corporate networks.
In addition, we will work to offer upstream
consulting, as well as proposing total IT
operations, such as cloud and remote
operation services, in our IT operations
service.
In our Panasonic Group business, we will
work to reform workstyles through unified
communications services and strengtheningof the IT platform.

• Groupware
development• Security systems
development

Panasonic Net Solutions• Systems operation
services• Systems
equipment
sales
y
q p

V-Internet Operations• Systems operation
services• Systems
equipment
sales
y
q p

• Systems operation services• Systems maintenance services• Systems development• System solutions• Sales of our own software• Systems equipment sales• Communications
equipment sales

Panasonic Information Systems• Software leasing• Office space leasing• Systems equipment sales
Panasonic

Panasonic Net Solutions Co., Ltd.

V-Internet Operations, Inc.

The company applies its strong package
development and system solution provisionexperience and know-how in the implementation,use, and establishment of the information
technologies necessary to client work reform.
Its MajorFlow work flow package is characterized
by a broad lineup, covering expense
reimbursement and attendance management.

Established in 1996 through the then-Matsushita
Electric Works venture system, thecompany’s strength lies in network camera
and IT-linking businesses, such as
lesson-delivering systems for the education
market, which center on its ArgosView video
surveillance solution.

Panasonic Information Systems Co., Ltd.
Profile15

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

CSR Efforts

Fundamental Perspective on CSR
As a member of the Panasonic Group, we
have worked with the spirit of the words of
its founder, Konosuke Matsushita: “Anenterprise is a public institution” and “All forthe customer.” This spirit serves as theorigin of our corporate social responsibility(CSR) activities.
Based on the Panasonic Groupmanagement philosophy, we look beyond
just complying with laws, ordinances andrules to conduct fair and honest businessactivities according to conscience and good
sense. In addition, throughout our businessactivities we consistently strive for ourcustomers advantages through IT.

Compliance
We hone our corporate sense of ethics,
and have introduced and are developing a
corporate ethics program to conduct our workon the basis of a shared conscientiousness,
common sense and a spirit of fairness andsincerity (corporate ethics management).
This program stipulates the Panasonic
Code of Conduct, which clearly delineates“Our Core Values.” Furthermore, the programis promoted through a system centering on
the Corporate Ethics Committee that is led
by the president, and Corporate Ethics
Leaders are established at each workplace
to strengthen compliance laterally throughout
the Company. The Compliance Guidebook
has been composed and distributed to
employees to promote thorough compliancefamiliarity and awareness activities, and ethics

training is conducted through e-learning.
In addition, each employee is required tosubmit a statement of commitment tocorporate ethics.
In addition, we have put in place a
Corporate Ethics Reporting Line for internalreporting and consultation concerning thescope of ethical behavior. The Corporate
Ethics Reporting Line creates an environment
conducive to consultation, and is available
twenty-four seven.

Quality Improvement
Our company is engaged in improving quality
from every perspective in system development
and operations.
In system development our fundamental
approach emphasizes process in ensuring

Risk Management
We define risk as “factors that could impair
efforts to achieve our business plans” and“the gap between social expectations andcorporate reality,” and we conduct risk
management initiatives accordingly. Central
to these activities is the Risk Management
Committee, which is chaired by the president
and conducts risk assessments and monitoringof each division and related function
semi-annually.
Also, we have implemented a business
continuity plan (BCP). We are equippedfor disaster by maintaining all servers in
a fortified data center capable of withstanding
an earthquake measuring 6-upper on theJapanese seismic intensity scale, as well as
by installing seismic isolation devices in blade
server storage, etc. In addition, backup datais transmitted via the network to separate
locations for storage.

quality, with our goal being to raise our
CMMI® score. CMMI® is a process
improvement model for software andsystem development that was developedby the Software Engineering Institute (SEI)at Carnegie Mellon University in the UnitedStates, with processes rated according tofive “maturity” levels. We achieved Level 3 in2008 (renewed in 2011) and we arepreparing to step up to Level 4 in 2014.
Our fundamental approach in the sphereof system operation is to ensure quality
through operational process standards
based on ITIL®. In
2011, our IDC unit
acquired ISO 20000
certification.

Strengthening Quality as an IT Service Company
We have implemented the CMMI modelwith the goal of strengthening quality in oursystems construction processes.
Our goal this year is to achieve CMMI
Level 4, “Quantitative Project Management.”
We are proceeding not only with thestandardization and documentation ofsystem configuration but also quantification.
We have also for the first time established aquality policy for “Post-servicing quality
improvement.” We are continuing with
operational quality improvement based on
ISO 20000. In addition, we are engaging in
new third-party product inspection. Our aim
is to continue offering higher-quality systemsolutions and services.

Akira Hisano
Senior Managing
Director

Panasonic Information Systems Co., Ltd.
Profile16

Annual Report 2014

Financial Highlights

Message fromthe President

Information Security
The Company maintains a particular focus on
the appropriate management of information,
which is an important corporate social
responsibility. One of our early efforts toimprove the safety, reliability and quality of ourdata center services was the adoption in 2005of an Information Security Management System(ISMS) (we changed to ISO 27001 in 2007).
In 2013 the authentication registration coverage
was expanded from the IDC units to the

Topics 2014

Business Overview

entire company.
Our efforts to prevent leaks and otherinformation security problems include
establishing a dedicated information security
unit and extending security controls to each
unit via the committee. Our particular efforts
in the area of personal information protection
include acquisition of the Privacy Mark in 2002
and the establishment of a personal information
security program. We are continuing tostrengthen the system.

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Efforts for the Environment

Corporate Citizenship Activities

Energy conservation at our data center is
one aspect of our environmental efforts. We
pursue operational efficiency through efforts
such as internal design that considers heatexhaust efficiency, lighting controls that employ
Panasonic’s advanced sensor technologies,
and the installation of energy-efficient servers,
so as to realize energy conservation.
For the market, we are also developing
eneview, our environmental monitoring
software. This software supports theformulation of energy conservation measuresat companies through efficient data gatheringand energy visualization.

We encourage all our employees to take partin voluntary corporate citizenship activities.
Activities in 2013 included recycling (PET
bottle cap gathering), fundraising, bloodand bone marrow bank registration, etc.
Our employees also participated in the
Clean Osaka regional cleanup campaign at
the request of the Osaka
city government, withmost of our employees
taking part in cleanup
efforts in the vicinity of
our offices.

Maintaining and Improving Information Security and Aiming for Full Penetration

Accumulation of Small Efforts Important in Environmental Conservation

Information security efforts are in thesetimes a corporate social responsibility.
We strive to gain customer confidence
through appropriate information controls
and efficient use of information, so we haveacquired third-party institution certification,such as ISO 27001 and the Privacy Mark.
We are engaged in continuous efforts to
support and improve information security
and ensure its full penetration throughout
the Company.
We will continue to be united in our efforts
as a company to strengthen security so as todeliver safety and security to our customers
through our products and services.

Even small environmental efforts engaged in
one by one mount up and result in significant
progress. For example, 60% of the energy
consumed at data centers goes into running
the servers, which constitutes a serious
energy conservation issue. We succeededin reducing the amount of electricity usedthrough a configuration that employs thefine-tuning of state-of-the-art technologies.
We are also sharing with our employees
the importance of environmental conservation
through reducing energy use at the workplacein aspects other than business. We willcontinue to carefully develop that mindset
at our company.

Hisashi Kurono
Managing Director

Tatsuo Yoshikawa
Director

Panasonic Information Systems Co., Ltd.
Profile17

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Corporate GovernanceBusiness Execution and Supervision

Auditing

The Board of Directors meeting is held
regularly once a month and irregularly as
required to report on significant operating
policies, decisions on substantive matters,
and the execution of business and duties,
as well as statutory matters. Also, to provide
neutral and impartial supervision, two of thenine directors are outside directors.
Actual business is executed by executive
directors and executives under the leadershipof the president in accordance with policies
that have been decided by the Board of
Directors to clarify the responsibility and to
sufficiently demonstrate supervisory functions.
Also, for the purpose of uniting the whole
company as one through the discussion
and sharing of information necessary for thesmooth and rational execution of business,
we have established business strategy
meetings and management study groups.

The Company’s auditing system is made up
of auditors and the Board of Auditors, aninternal audit division as well as anaccounting auditor, and is conducted asfollows: to implement a varied and effective
audit, each carries out the management
audit from a different point of view together
with appropriate coordination.
Board of Auditors and the Auditors’
Inspection
The Board of Auditors is comprised ofauditors, audit plans, methods and so forth,and reports on the implementation status of
the audit. The audit is mostly taken from thepoint of view of legality and is conducted on
operations and the financial condition byauditors based on plans determined by the
Board of Auditors. Auditors also attend
important meetings such as that of theGeneral Meeting of Shareholders
Appointment and Dismissal
Audit

Board of Directors

Instruction

Appointment and Dismissal

Board of Auditors (auditing)Three Auditors (of whom two are outside auditors)

Executive Officers

Accounting Auditors(Auditing)

Supervision/Instruction

Business Strategy Meeting
Internal Audit
Control

Executive Division

Cooperation Appointment
and Dismissal

Auditors Office

Cooperation
AssistanceAccounting Audit
Appointment and Dismissal
Supervision/Instruction
Internal Audit Division
President

Executive Directors

Internal Audit
The Company established the division withthe aim to execute fair and efficient businessand maintenance of an internal check system
to preempt and prevent any fraudulences.
The division conducts its audit in line withthe annual plan, and the results are reported
to the Board of Directors.
Accounting Auditor
Concerning the audit under the Companies
Act and Financial Instruments and Exchange
Law, the Company has entered into an audit
contract with Deloitte Touche Tohmatsu LLC.

Controls

Governance Structure(decision-making, supervision)
Nine Directors(of whom two are outside directors)

Board of Directors and give recommendations
and advice from an independent standpoint.
To strengthen the functions of the auditors, we
also established an auditors office to support
the auditors’ professional duties. We consult
with auditors regarding the assessment of
the office and its personnel changes.

Control

Business Review Meeting
Director in Charge of CSRM and Internal Control
Company-wide Committee

Corporate Ethics Committee, Information Security
Management Committee, Other Committee

We believe developing a sound businessand maintaining customers’ trust in ourbusiness are indispensible to the growth of
the Company. With the goal of establishinga regulated business environment, we haveassigned a board member to take charge ofinternal controls (CSRM*). We have alsoestablished such groups as corporate ethics
and information security management
committees that will deploy concretemeasures companywide based on thecontent of discussions.
* CSRM: Combining CSR (corporate social responsibility)
and risk management

Comments from an Outside Director
Innovation is required to promote the growthof IT vendors in an IT industry marked by
rapid changes in the operating environment
and progress in technology. While thePanasonic Group has established solid
processes and a control system for
Panasonic Information Systems’ management,
the Company’s management encourages
a sense of promptness in its work execution
compared to other IT expert companies.
I have delivered a broad range of third-party
advice, based on my own experiences during
my long tenure at the system integration
section in FUJITSU LIMITED, concerning
operations planning, execution of cost
controls, link-ups with partners, and humanresources development, especially from theperspectives of “people” and “services.”
Panasonic Information Systems canleverage the work know-how accumulated
within the Panasonic Group to increase
activation of that driving force, meeting thechallenge of expanding business outside
the Panasonic Group (general market).
For example, Japan’s service industries
and medium-enterprise markets still havepotential for IT growth, so new businessmodels such as cloud and revenue sharing
are being developed. I would like to see
mpany use its Group experience tothe company
ute to growth strategies for the sector
contributeand riskk hedging.

Hidenori Furuta
Outside Director

Panasonic Information Systems Co., Ltd.
Profile18

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Officers of the Company(As of July 1, 2014)

Kazuhiro Maegawa

Akira Hisano

Tatsuo Yoshikawa

President and Representative Director,
Member of the Board of Directors

Senior Managing Director,
Member of the Board of Directors

Director, Member of the Board of Directors

Apr. 1978: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
Oct. 2005: Director, the AGE-FREE Products Promotion
Department, Matsushita Electric Works, Ltd.
Representative Director, Matsushita Electric WorksAGE FREE Care Service Co., Ltd. (at present,
Panasonic AGE-FREE Services Co., Ltd.)
Representative Director, Matsushita Electric WorksAGE FREE Lifetec Co., Ltd. (at present, Panasonic
AGE-FREE Life Tech Co., Ltd.)
Representative Director, Matsushita Electric WorksAGE FREE Shops Co., Ltd. (at present, Panasonic
AGE-FREE Shops Co., Ltd.)
Representative Director, Matsushita Electric WorksAGE FREE Service Co., Ltd. (at present, Panasonic
AGE-FREE Services Co., Ltd.)
Apr. 2008: Advisor of the Company
June 2008: Executive Vice President, Member of the Board of
Directors, In charge of Corporate Sales andCorporate Planning
Apr. 2009: In charge of Corporate Sales and Human
Resources and Labor Relations
Apr. 2010: President and Representative Director (to date)June 2014: Director, Japan Information Technology Services
Industry Association (to date)

In charge of Development, Global Operations Promotion
and Quality
Director, Eco Solutions Support Unit
Mar. 1974: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
June 2004: Director, e-Office Solution Division of the Company
June 2006: Director, Distribution Solution Division
Apr. 2007: Executive Officer, Director, Distribution Business
Unit
June 2008: Director, Member of the Board of Directors, In chargeof Corporate Development
Apr. 2009: In charge of Development (to date)
Apr. 2010: Managing Director, Member of the Board of Directors,
In charge of Global Operations Promotion (to date),
Director, Solution Business Unit
Jan. 2012: Director, Eco Solutions Support Unit (to date)June 2014: Senior Managing Director, Member of the Board of
Directors (to date), In charge of Quality (to date)

In charge of Financial, Legal Affairs, General Affairs,
CSRM, Internal Control, and Corporate Ethics,
Director, Financial Management Department
Apr. 1978: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
Dec. 2001: Director, Member of the Board of Directors, Director,
General Affairs Department, Yamanashi Matsushita
Electric Works, Ltd. (at present, Panasonic Industrial
Devices Yamanashi Co., Ltd.)
Feb. 2003: Director, Financial Management Department,
Electronic & Plastic Materials Company, Matsushita
Electric Works, Ltd. (at present, Panasonic
Corporation)
May 2011: Advisor of the Company
June 2011: Director, Member of the Board of Directors (to date),
In charge of Financial, Legal Affairs, General Affairs,
CSRM, Internal Control, and Corporate Ethics (todate), Director, Financial Management Department
Apr. 2013: Director, Financial Management Department (to date)

Maki Okajima

Hisashi Kurono

Hajime Onishi

Executive Vice President and Representative Director,
Member of the Board of Directors

Managing Director, Member of the Board of Directors

Director, Member of the Board of Directors

In charge of Tokyo Branch, CIO, Human Resources andLabor Relations and Engineering

Director, Solution Business Unit

In charge of Corporate Planning
Apr. 1982: Joined Matsushita Electric Industrial Co., Ltd. (atpresent, Panasonic Corporation)
Apr. 2005: Director, IT Infrastructure Center, Corporate
Information Systems Company, Matsushita ElectricIndustrial Co., Ltd.
Oct. 2007: Director, Marketing Logistics Solution Business Unit,
Corporate Information Systems Company,
Matsushita Electric Industrial Co., Ltd.
Apr. 2010: Director, Global Business Division, Corporate
Information Systems Company, Panasonic
Corporation
May 2012: Advisor of the Company
June 2012: Executive Vice President and Representative
Director (to date), In charge of Corporate Planning(to date)

Apr. 1978: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
June 2002: Director, e-Procurement Solution Division of theCompany
Dec. 2003: Director, Distribution Solution Division
Apr. 2006: Director, Housing Solution Division
Apr. 2007: Executive Officer, Director, Corporate Business Unit
Apr. 2008: Director, Solution Business Unit
June 2008: Director, Member of the Board of Directors, In chargeof New Business and Promotion of New Products
Apr. 2009: In charge of Technology, Quality and Management,
In charge of CIO (to date)
Apr. 2010: Managing Director, Member of the Board of
Directors (to date), In charge of Human Resourcesand Labor Relations (to date),Director, Service
Business Unit
June 2014: In charge of Tokyo Branch and Engineering (to date)

Apr. 1982: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
Dec. 2003: Director, B2B Solution Division of the Company
Apr. 2007: Director, EAI and CRM Solution DivisionDec. 2007: Director, Eastern Region Solution Sales Division
Apr. 2008: Executive Officer, In charge of Tokyo Branch,
Director, Solution Sales Business Unit
Apr. 2009: Director, Sales Business Unit
Apr. 2010: In charge of Engineering, Director, Market
Development Sales Division
Apr. 2013: Vice Director, Solution Business Unit (In charge ofSystem Solution), Vice Director, Service Business
Unit (In charge of IDC Solution)
Apr. 2014: Director, Solution Business Unit (to date)June 2014: Director, Member of the Board of Directors (to date)Panasonic Information Systems Co., Ltd.
Profile19

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

Takashi Maeda

Yuji Nakabayashi

Director, Member of the Board of Directors

Corporate Auditor

Director, Service Business Unit
Apr. 1982: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
June 2004: Director, Network Division of the Company
Apr. 2007: Director, Network Solution Division
Apr. 2009: Executive Officer, Director, IDC Business Unit,
Director, IDC Solution Division
Apr. 2010: Vice Director, Service Business Unit (In charge of IDC)
Apr. 2013: Vice Director, Service Business Unit (In charge of
IDC Service), Director, IDC Service Division
June 2014: Director, Member of the Board of Directors (to date)Director, Service Business Unit (to date)

Takahiro Nakagawa
Outside Director, Member of the Board of Directors
Apr. 1986: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
Apr. 2010: Director, Corporate Information Systems Planning
Department, Matsushita Electric Works, Ltd.
June 2010: Director, Member of the Board of Directors of theCompany (to date)Jan. 2012: General Manager, Information Systems PlanningGroup, Supply Chain Management Center, Eco
Solutions Company, Panasonic Corporation (to date)

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Comments from an Outside Auditor

Apr. 1980: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
Oct. 2010: Director, Human Resources and Labor Relations
Department, Electrical Construction Materials
Business, Panasonic Electric Works, Ltd. (atpresent, Panasonic Corporation)
Jan. 2012: General Manager, Tokyo General Affairs Group, Eco
Solutions Company, Panasonic Corporation
June 2013: Corporate Auditor of the Company (to date)

Makoto Iwahashi*
Outside Corporate Auditor
Apr. 1967: Joined Kawasaki Steel Corporation
June 1997: Director, Member of the Board of Directors,
Kawasaki Steel Corporation
June 2000: Managing Director, Member of the Board of
Directors, Kawasaki Steel Corporation
June 2003: President and Representative Director, Kawatetsu
Systems, Inc. (at present, JFE Systems, Inc.)
June 2004: Director, Japan Information Technology Services
Industry Association
June 2007: Executive Director, Japan Information Technology
Services Industry Association
June 2010: Corporate Auditor of the Company (to date),
Corporate Senior Adviser of JFE Systems, Inc.
June 2012: Senior Adviser of JFE Systems, Inc. (to date)* Makoto Iwahashi is an independent officer who is not likely to experience
any conflict of interest with general shareholders for which Tokyo Stock
Exchange Group, Inc. requires specification.

Hidenori Furuta

Eiji Furusawa

Outside Director, Member of the Board of Directors

Outside Corporate Auditor

Apr. 1982: Joined FUJITSU LIMITED
Oct. 2009: Corporate Vice President, Fujitsu System Solutions
Limited (at present, Fujitsu Systems East Limited)
Apr. 2012: Corporate Vice President, FUJITSU LIMITED
June 2013: Director, Member of the Board of Directors of theCompany (to date)
Apr. 2014: Corporate Senior Vice President, FUJITSU LIMITED(to date)

Apr. 1985: Joined Matsushita Electric Works, Ltd. (at present,
Panasonic Corporation)
June 2005: Director, Member of the Board of Directors of
Matsushita Electric Works Bathroom Ware Systems& Life, Ltd. (at present, Panasonic Eco Solutions
Housing Equipment Co., Ltd.)
Apr. 2009: Director, Member of the Board of Directors ofPanasonic Electric Works Business Life Support
Co., Ltd.
Jan. 2012: General Manager, Accounting Group Financial
Management Center, Eco Solutions Company,
Panasonic Corporation (to date)June 2013: Corporate Auditor of the Company (to date)

Keisuke Tanaka

Mitsuru Maekawa

Hiroyoshi Maruyama

Kazuhiko Nambu

Tomoyuki Sakai

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

The market environment in Japan has
been swept into the vortex of globalization,
which is itself picking up speed. Will the
Company make the efforts necessary toincrease its enterprise value as a memberof the Panasonic Group to maintain its
listing? How will the Company maintain its
market value? Will the Company aim evenhigher? Future actions and results will becalled into question as it faces an era ofhuge competition.
During my career I have been the
director of a listed company, the CEO ofan IT company, and the outside directorof an NYSE-listed company. I will continue
to apply my experience to add to theobjectivity of the corporate governancestructure the Company has already built,
and I will work to make it stronger. I haveformed a relationship of trust with theexisting executive team and all of the
managers. This relationship creates thebasis for my full efforts toward deep, frankdebate at the Board of Directors and theBoard of Auditors meetings. I also hope tohave other opportunities to interact directlywith management. I will put my all into
building and strengthening the Company’s
platform that will take it into the coming era.

Makoto Iwahashi
OutsideCorporate
AuditorPanasonic Information Systems Co., Ltd.
Profile20

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Stock Information/
Corporate History

Financial Section

Management’s Discussion and Analysis
Selling, General and Administrative
Expenses
While we strengthened our sales engineer
force to increase future order generation,
we continued to control costs and improve
work efficiency. As a result, selling, generaland administrative (SG&A) expenses
decreased 0.7%, to ¥2,929 million. The ratioof SG&A expenses to net sales fell from
8.4% in the preceding term to 8.1% during
the year under review.

1. Financial Position
Net Sales and Gross Profit
During the fiscal year ended March 31, 2014,
the Company concentrated on increasing
sales to customers outside the PanasonicGroup (general market), as well as efforts tocreate and fortify its partnership with thePanasonic Group with the aim of receiving
orders for systems.
Due to an increase in cloud service orders
from customers outside the Panasonic Group(general market) and the Panasonic Group’s
strengthening and expansion of its IT
systems in accordance with its growthstrategy, net sales rose 3.3% year on year,to ¥36,334 million. Meanwhile, we pushedforward on rationalization activities centeredon system operation, but the need for
personnel increased in conjunction with theincrease in new operational projects.
Therefore, cost of sales increased 4.1%, to¥28,940 million, and gross profit rose 0.3%,
to ¥7,394 million.

Operating Income and Income before
Income Taxes and Minority Interests
Operating income expanded 0.9%, to ¥4,465
million. The operating margin amounted to12.3%. This figure stemmed from income
before income taxes and minority interestsof ¥4,499 million, after adding interest income(of ¥37 million) and subtracting interest
expense (of ¥8 million) and other items.
Net Income
Net income declined 0.6%, to ¥2,685 million,
after subtracting total income taxes (of ¥1,814

Operating Income Analysis Diagram (Millions of Yen)
4,425

2013

Salaries andallowances

Construction
deferred
payment

Increase in outside
personnel expenses

Inventories(38)
Selling andadministrative
expenses

20 down
2014

13

Increase in provisions for bonuses
Decrease inretirement
benefit plan
cost

104
(49)
(6)
YoY change

40 UP

Deposits paid

Decrease in provision for
directors’ bonuses

(44)

4,465

AssetsCurrent assets amounted to ¥27,813 million
as of March 31, 2014, up ¥2,083 million, or8.1%, from a year earlier, due mainly to anincrease of ¥1,944 million in deposits paid
to Panasonic Corporation and others.
Noncurrent assets decreased ¥155
million, or 2.8%, from the end of theprevious year, to ¥5,470 million, mainly due
to the depreciation of hardware and othernoncurrent assets as well as a reduction in
net property and equipment andamendments to retirement benefit
accounting.
As a result, as of the end of the fiscal year
ended March 31, 2014, total assets wereup ¥1,928 million, or 6.1%, from the end of
the previous year, to ¥33,283 million.

Other selling, generaland administrative
expenses

(183)
319
(124)

2013
Accounts payable

Cash and deposits

Property and equipment
Intangible assets

2014

Net assets
Net assets expanded ¥1,047 million, or4.2%, from the end of the previous year, to¥25,885 million as net income of ¥2,685
million was posted, and a year-end dividendof the previous year and an interim dividendof ¥693 million in total were paid, in addition
to the effects of revisions to retirement
benefit accounting.

Liabilities / Net Assets Analysis Diagram (Millions of Yen)

31,3552013

Liabilities
Current liabilities increased ¥112 million, or
1.8%, from the end of the previous year, to¥6,407 million, due to an increase of ¥106
million in accounts payable-other becauseof an increase in outsource development inMarch 2014.
Mainly due to amendments to retirement
benefit accounting, noncurrent liabilities
rose ¥769 million, or 347.2%, from the endof the previous year, to ¥991 million.

2. Assets, Liabilities and Equity

Asset Analysis Diagram (Millions of Yen)

Gross profit

20

million) from income before income taxes
and minority interests of ¥4,499 million. The
net margin was 7.4%.

YoY change

1,928 UP

Other current assets

1,944

127
(319)
104 Investments
and other
60 assets

33,283Current assets

Consumption taxes
payable2,083 up

Long-term leaseobligations

Noncurrent
assets31,355
106
171
(246)
923
(141)
68

Accrued expenses
Net defined benefit liability

Other liabilities

155 down

YoY change

20141,928 UP

Retained earnings

Defined retirement
benefit plan

1,993
(973)
27
Other net

33,283 assets

Liabilities

881 up
Net assets

1,047 up

Panasonic Information Systems Co., Ltd.
Profile21

Annual Report 2014

Financial Highlights

Message fromthe President

ROE/ROA
Return on equity (ROE) for the year was
10.6%, in comparison to 11.3% for theprevious fiscal year, due to the fall in net
income. Return on assets (ROA), however,amounted to 8.3%, compared to 9.0% for
the previous fiscal year, owing to the increase
in total assets.

3. Cash Flows
Cash Flows from Operating Activities
Net cash provided by operating activitieswas ¥537 million less than in the preceding
fiscal year, at ¥4,133 million. The main factors
were as follows: income before income
taxes and minority interests of ¥4,499 million;
depreciation and amortization of ¥1,833
million; and income taxes paid of ¥1,782
million.
Cash Flows from Investing Activities
Net cash used in investing activities was
down ¥7,819 million, to ¥4,480 million.
This was mainly due to deposits paid to

CSR Efforts

Cash Flows from Financing Activities
Net cash used in financing activities decreased¥48 million, to ¥892 million. This outcome
was attributable to cash dividends paid of¥692 million and repayments of financelease obligations of ¥200 million.
Free Cash FlowsDue to the aforementioned operating andinvesting activities, free cash flows resulted
in a cash outlay of ¥347 million, comparedwith ¥7,629 million in the previous year.

4. Forecast for the Fiscal YearEnding March 31, 2015
The Company’s forecast of consolidated
operating performance for the fiscal year
ending March 31, 2015 is shown below.

Corporate GovernanceMillions of Yen

2014

2015

%
Year-on-Year
Increase

Net sales

36,33437,0001.8

Operatingincome

4,465

4,500

0.8

Net income

2,685

2,750

2.4

Other current assets increase
Decrease in prepaid pension cost

Decrease in liabilities associated with retirement funds(1,782)(284)+4,133

Capital investment in the year to March 31,
2014, amounted to ¥1,623 million. Principal
investments were for the acquisition of large
servers and various other hardware, and forthe development of cloud systems for clientsoutside the Panasonic Group (general market).

6. Research and Development
The Group’s research and development
activities are mainly conducted at its R&D
Center. During the fiscal year ended March
31, 2014, research and development costs

Repayment of leaseobligations

(219)
680
(594)

7. Capital Investment

As of March 31, 2014, our order backlog
stood at ¥3,122 million, up 20.2% from ayear earlier. This rise stemmed from anincrease in orders for system development
projects related to the growth strategy of
the Panasonic Corporation Eco Solutions
Company.

Finance Cash Flow Analysis Diagram (Millions of Yen)

1,833

Stock Information/
Corporate History

Financial Section

amounted to ¥121 million, largely for verifying
the functionality of new technologies andcommercial licenses related to smart
devices, etc.

5. Order Backlog

Investment Cash Flow Analysis Diagram (Millions of Yen)

Depreciation and amortization

4,499

Other

Business Overview

Panasonic Corporation of ¥3,000 million
and purchase of property, plant andequipment of ¥1,067 million.

Operating Cash Flow Analysis Diagram (Millions of Yen)

Income before
income taxes
and minority
interests

Topics 2014

Increase indeposits paid

(200)

(1,067)(692)

Cash dividends paid

(408)
Other

Incometaxes paid

(892)

(3,000)(5)

Purchases of property
and equipment
Purchases of software(4,480)Panasonic Information Systems Co., Ltd.
Profile22

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Risk Factors
Items in this annual report concerning business and financial conditions that may strongly affect investor
decisions include the following risks. However, these do not cover all risks with respect to the Group, andthere may be other hard-to-predict risks not detailed in the material. The Group’s business, performanceand financial status may be adversely affected by various significant risk factors. Items regarding the futurewere determined by the Group as of the financial statement filing date (June 19, 2014).

Risks Related to Economic Conditions
Fluctuations in the Economic Environment
Demand for the Group’s products and services may be affected by general economic trends, mainly in Japan.
Economic downturns and resulting declines in demand in the Japanese market may thus adversely affect
the Group’s financial condition, operating results and cash flows.
Interest Rate Fluctuations
Interest rate fluctuations may affect operating expense, interest expense and interest income, as well as
the value of financial assets and liabilities, and may have an adverse impact on the Group’s business,
performance and financial position.
Stock Price Falls
The Group holds Japanese stocks as investment securities, and decreases in their market value maynecessitate the recognition of valuation losses. Furthermore, a decline in the valuation difference on
available-for-sale securities may reduce net assets.

Risks Related to the Group’s Business Activities
Competitive Environment
The Group faces different types of competitors in the information services industry, ranging from large
international companies to relatively small, rapidly growing companies. The Group actively makes
investments in and undertakes initiatives involving strategic products and services. However, investments
or sales initiatives for a particular product or service may fall short of competitors’ efforts in terms ofquantity, quality and speed. Furthermore, competitors may have greater financial, technological andmarketing resources than the Group.
Price Competition
The Group is subject to intense price competition in the information services industry, and this may makeit difficult for the Group to determine prices for products and services to secure adequate profits. This
downward pressure on prices may have a serious effect on the Group’s profits, and becomes especially
noticeable when demand for products and services decreases.
Competition in New Technologies
The Group may lose the ability to compete in new markets if it fails to correctly predict and develop the
new technologies, products and services to meet future market needs.

Securing Capable Human Resources
The Group’s future success depends largely on its ability to retain skilled employees in technical andmanagement fields. The Group expects that it will be necessary to hire more personnel in the information
services business field, but industry demand for skilled employees exceeds the supply, making
competition for attracting and retaining these employees intense. Because of this severe competition forskilled employees, the Group may be unable to retain existing personnel or attract new talent. If thisshould happen, the Group’s business, performance and financial position could be adversely affected.
Business Alliances with Other Companies
The Group develops its business by forming alliances with or strategic investments in other companies,
and the strategic importance of partnering with third parties is increasing. In some cases, suchpartnerships are crucial to achieving the Group’s goal of introducing new products and services, but theGroup may not be able to successfully collaborate or achieve expected synergies with its partners. In
addition, these partners may change their business strategies and it may become difficult for the Group to
maintain these business partnerships. If any of the foregoing should happen, the Group’s businesses,
performance and financial status could be adversely affected.
Procurement of Raw Materials, and Purchase Price Surges
The Group’s operations depend on obtaining high-quality products and services in a timely manner and in
the necessary quantities, and we therefore select reliable suppliers. However, it may be difficult to change
or increase suppliers, or to switch to other products and services if the supply is interrupted or industry
demand increases. This may adversely affect the Group’s businesses. Moreover, although the Group andsuppliers decide purchase prices by contract, purchase prices may increase significantly due to changes
in demand or for other reasons. Furthermore, some products and services are only available from alimited number of suppliers. If the Group is unable to procure such products and services, its businesses,
performance and financial status may be adversely affected.
Capital Status and Financial Conditions of Customers
Some of the Group’s customers purchase products and services from the Group on terms that do notprovide for immediate payment. If customers for whom the Group has substantial accounts receivableencounter financial difficulties and are unable to make payments on time, the Group’s businesses,
performance and financial status may be adversely affected.

Risks Related to Future Plans
The Group has announced its new medium-term management plan, which covers the period from April 1,
2013, through March 31, 2016, and an earnings forecast for the fiscal year ending March 31, 2015.
However, the Group may fail to achieve all of the goals announced and/or the expected results.

Panasonic Information Systems Co., Ltd.
Profile23

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Stock Information/
Corporate History

Risk Factors
Risks Related to Legal Restrictions and Litigation
Direct or Indirect Costs Related to Product Liability or Warranty Claims Due to Defects in Products
or Services
The Group pays due attention to ensuring the quality of its products and services. However, theoccurrence of defects in products or services could make the Group liable for damages, including indirect
damages that are not completely covered by liability insurance, and the Group could incur significant
expenses. Moreover, negative publicity concerning these problems could impair the Group’s corporate
image, and the Group’s businesses, performance and financial status may be adversely affected.
Intellectual Property Right Protection
The Group works to secure a competitive edge for its businesses by protecting intellectual property rights(IPRs) related to the technologies, products and services it develops. However, rights may not be granted
to provide adequate protection based on IPRs. Furthermore, the Group may be unable to use or beforced to use on disadvantageous terms the technologies, products and services of third parties
protected by IPRs when needed. As of March 31, 2014, the Group was using the IPRs of third parties
under license for some of its products and services. However, in the future the Group may not be able toobtain the necessary licenses from third parties or may be able to obtain licenses only underdisadvantageous terms.
Litigation may also be necessary to defend the Group against IPR infringement claims brought by third
parties or to enforce the Group’s IPRs. The Group may incur significant expenses and use significant
management resources for such lawsuits. Furthermore, if third-party claims that the Group infringed on IPRs
are upheld, the Group may cease to be able to use specific technologies, products and/or services, or beable to supply specific technologies, products and/or services, and may be liable for significant damages.
Changes in Account Standards and Tax Systems
The Group’s business, performance and financial status may be adversely affected by the unforeseen
application of new accounting standards and tax systems. Furthermore, differences in views with tax
authorities on the Group’s tax returns could result in the Group being liable for more taxes than expected.
Information Leaks
In the normal course of business, the Group obtains information (including personal information) about
customers and the like relating to privacy and creditworthiness. The Group pays due attention tosafeguarding the confidentiality of this information and has implemented the greatest possible measures
to prevent information leaks. However, the Group cannot rule out the possibility that such information may
be leaked due to an accident or other inevitable cause. Such a leakage of information may result in theGroup being held liable for damages to affected parties and may impair the Group’s corporate image.
Moreover, there is a risk that the Group’s trade secrets may be misused by external parties. In such acase, the Group’s businesses, performance and financial status may be adversely affected.
Losses Due to Other Legal Restrictions
The Group is subject to governmental regulations in Japan and other countries and regions in which it
conducts its business. These include government approvals required for conducting business andinvestments, laws and regulations governing national security, and export/import laws and regulations, aswell as commercial, antitrust, intellectual property, financial transactions, worker protection, subcontractor
protection, and business taxation laws and regulations.
Tighter laws and regulations or stricter interpretations of them than in the past by authorities could
place restrictions on the Group’s businesses or result in increased expenses for complying with them.
The Group has taken measures to ensure that it is prepared to handle a compliance violation or otheremergency through such efforts as establishing networks of emergency contacts and organizational bodies
responsible for responses. However, the Group’s corporate image could be impaired and the Group’sbusinesses, performance and financial status could be adversely affected if its response is inadequate.

Risks Related to Disasters or Unpredictable Events
Effects of Disasters or Unpredictable Events
The headquarters and major bases of the Group are located in Japan. The occurrence of a natural
disaster such as an earthquake, flood or other unexpected event such as a fire, war or terrorist attack,infectious disease outbreak, industrial accident, malicious computer virus, breakdown or malfunction in
the Group’s information system or communications network as a result of such events may result in serious
damage to Group facilities, and the Group may have to stop operations at certain facilities and delay theprovision of products and services. The Group may incur considerable expenses for restoring damaged
facilities, which could adversely affect the Group’s businesses, performance and financial position.

Other Risks
Pension Liabilities
The Group has contributory, funded benefit pension plans covering substantially all employees in Japan
who meet eligibility requirements. Revisions to experience assumptions and pension asset performance
could result in an increase in unrecognized actuarial losses, leading to an increase in future net periodic
benefit costs of these pension plans.
Fixed Asset Impairment
The Group has many fixed assets, such as property and equipment. All Group companies periodicallyreview the recorded value of fixed assets on the balance sheets to determine if future cash flows to be
derived from these assets will be sufficient to recover the residual values in accordance with accounting
standards governing the impairment of fixed assets. If these assets cannot generate sufficient cash flows,
impairment losses may have to be recognized.
Recognizing Uncertainties in Deferred Tax Assets and Income Taxes
The Group evaluates the likelihood of recognizing the tax benefits of deferred tax assets, based on taxable
income forecasts and the evaluation of uncertainty, in considering the recoverability of deferred tax assets
and evaluation of income tax uncertainties. However, deteriorating economic conditions, tax audits andother factors may result in temporary variances and net losses being carried forward beyond the period
during which tax benefits can be recognized. In such a case, the Group would be required to recognize
greater taxable income than had been anticipated, resulting in the possibility of higher corporate taxes.

Panasonic Information Systems Co., Ltd.
Profile24

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Information Systems Co., Ltd. and Subsidiaries
Consolidated Balance Sheet PanasonicMarch 31, 20142014

ASSETS

2014

2013

CURRENT ASSETS:
Cash and deposits (Notes 3 and 13)
Accounts receivable - trade (Notes 13 and 15)
Inventories (Note 4)
Deposits paid (Notes 3, 13, and 15)
Deferred tax assets (Note 10)
Other current assets (Note 15)
Total current assets

For the latest information click here (IR Library)
http://is-c.panasonic.co.jp/en/ir/library/

Thousands of U.S.
Dollars (Note 1)

Millions of Yen

Stock Information/
Corporate History

Financial Section

Thousands of U.S.
Dollars (Note 1)

Millions of Yen

2014

2013

2,168
1,765
1,023
13
16
1,116
306
6,407

¥ 2,253
1,659
948
259
18
858
300
6,295

33
35
923
991

35
176
11
222

320
340
8,961
9,621

1,040
871
24,8931,040
871
22,90010,097
8,456
241,681

(1)

(1)

(10)

55
(973)
25,88528—
24,838534(9,447)251,311¥ 33,283¥31,355$ 323,136

LIABILITIES AND EQUITY

2014

CURRENT LIABILITIES:

¥

86
7,799
259
18,180508
981
27,813

¥

269
7,582
383
16,236498
762
25,730$835
75,718
2,515
176,505
4,932
9,524
270,029

Accounts payable - trade (Notes 13 and 15)
Accounts payable - other (Notes 13 and 15)
Income taxes payable (Note 13)
Consumption taxes payable
Deposits received (Note 7)
Accrued expenses
Other current liabilities (Note 12)
Total current liabilities¥$

21,04917,136
9,932
126
155
10,835
2,971
62,204

PROPERTY AND EQUIPMENT:
Buildings
Tools, furniture, and fixtures
Lease assets (Note 12)
Construction in progress
Total
Accumulated depreciation
Net property and equipment

983
8,734
743
199
10,659(7,672)
2,987

969
7,766
712
143
9,590
(6,284)
3,306

9,544
84,796
7,214
1,931
103,485(74,485)
29,000

LONG-TERM LIABILITIES:Long-term deposits received (Note 7)Long-term lease obligations (Notes 12 and 13)
Liability for retirement benefits (Note 8)
Total long-term liabilities
COMMITMENTS LIABILITIES (Note 12)
EQUITY (Notes 9 and 16):
Common stock -INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 5 and 13)
Goodwill (Note 6)
SoftwareDevelopment cost of software in progress
Long-term deposits paid
Long-term prepaid expenses
Prepaid pension cost (Note 8)
Deferred tax assets (Note 10)
Other assets
Allowance for doubtful receivables
Total investments and other assets
TOTAL
See notes to consolidated financial statements.

272
—
328
290
272
725
—
596
0
(0)
2,483
¥ 33,283

231
13
435
52
252
600
680
42
14
(0)
2,319
¥31,355

2,641
—
3,184
2,816
2,641
7,039
—
5,786
0
(0)
24,107$ 323,136

authorized, 40,000,000 shares; issued, 10,656,000 shares
Capital surplus
Retained earnings
Treasury stock - at cost
372 shares in 2014 and 372 shares in 2013
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Defined retirement benefit plan
Total equity

TOTAL

Panasonic Information Systems Co., Ltd.
Profile25

Annual Report 2014

Financial Highlights

Message fromthe President

Topics 2014

Business Overview

CSR Efforts

Corporate Governance

Financial Section

Information Systems Co., Ltd. and Subsidiaries
Consolidated Statement of Income and Comprehensive Income PanasonicYear Ended March 31, 2014

Stock Information/
Corporate History

For the latest information click here (IR Library)
http://is-c.panasonic.co.jp/en/ir/library/

Millions of Yen

Thousands of U.S. Dollars (Note 1)

2014

2013

2014

¥ 36,334
28,940
7,394
2,929
4,465

¥ 35,179
27,805
7,374
2,949
4,425

$ 352,757
280,971
71,78628,43643,350

37
(8)
5
34
4,499

29
(13)
(30)
(14)
4,411

359
(78)
49
330
43,680

1,856
(42)
1,814

1,823
(114)
1,709

18,019(407)
17,612NET INCOME

2,685
2,685

2,702
2,702

26,06826,068NET INCOME BEFORE MINORITY INTERESTS

2,685

2,702

26,06827¥ 2,712(30)¥ 2,672262$ 26,330¥¥ 2,672$

NET SALES (Note 15)
COST OF SALES (Notes 11 and 15)
Gross profit
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES (Notes 11 and 15)
Operating income
OTHER INCOME (EXPENSES):Interest income (Note 15)
Interest expense
Other - net
Other expense - net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTSINCOME TAXES (Note 10):
Current
Deferred
Total income taxes
NET INCOME BEFORE MINORITY INTERESTSOTHER COMPREHENSIVE INCOME (Note 14) Unrealized gain on available-for-sale securities
COMPREHENSIVE INCOME (Note 14)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (Note 14):
Owners of the parent

2,712
Yen

26,330U.S. Dollars

PER SHARE OF COMMON STOCK (Notes 2.o and 16):
Basic net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

¥ 252.01
65.00¥ 253.56
65.00

$

2.45
0.63

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Stock Information/
Corporate History

Financial Section

Information Systems Co., Ltd. and Subsidiaries
Consolidated Statement of Changes in Equity PanasonicYear Ended March 31, 2014

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Millions of Yen

Accumulated Other Comprehensive
IncomeNumber of
Shares ofCommonStock Issued

CommonStock

10,656,000¥ 1,040

Net income—

Cash dividends, ¥65 per share

Retained
Earnings

Treasury
Stock

Unrealized Gainon Available-forSale Securities¥ 871¥ 20,891

¥ (1)

¥ 58

—

¥ 22,859

—

—

2,702

—

—

—

2,702

—

—

—

(693)

—

—

—

(693)

Purchase of treasury stock

—

—

—

—

(0)

—

—

(0)

Net changes in the year

—

—

—

—

—

(30)

—

(30)

10,656,000

1,040

871

22,900(1)

28—

24,838Net income

—

—

—

2,685

—

—

—

2,685

Cash dividends, ¥65 per share

—

—

—

(692)

—

—

—

(692)

Net changes in the year

—

—

—

—

—

27

¥ (973)(946)

10,656,000¥ 1,040¥ 871¥ 24,893

¥ (1)

¥ 55

¥ (973)¥ 25,885

BALANCE, APRIL 1, 2012

BALANCE, MARCH 31, 2013

BALANCE, MARCH 31, 2014

CapitalSurplus

DefinedRetirement
Benefit Plan

Total Equity

Thousands of U.S. Dollars (Note 1)

Accumulated Other Comprehensive
IncomeCommonStockCapitalSurplusRetained
Earnings

Treasury
Stock

Unrealized Gainon Available-forSale Securities$ 10,097$ 8,456$ 222,331$ (10)Net income——

26,068Cash dividends, $0.63 per share——

Net changes in the year—
$ 10,097

BALANCE, MARCH 31, 2013

BALANCE, MARCH 31, 2014
See notes to consolidated financial statements.

DefinedRetirement
Benefit Plan

Total Equity

$ 272

—

$ 241,146———

26,068(6,718)———(6,718)

—

—

—

262

$ (9,447)(9,185)$ 8,456$ 241,681$ (10)$ 534$ (9,447)$ 251,311

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Information Systems Co., Ltd. and Subsidiaries
Consolidated Statement of Cash Flows PanasonicYear Ended March 31, 20142014
¥ 4,499¥ 4,411$ 43,680

1,833

1,817

17,796

Decrease in allowance for doubtful receivables

(0)

(6)

(0)

Interest and dividend income

(42)

(34)

(408)

8

13

78

Interest expense

2014

2013

2014

Increase in deposits paid

¥ (3,000)¥ (19,100)$ (29,126)

Decrease in deposits paid

—

8,100

0

(1,067)(1,232)(10,359)

—

2

0

(408)

(172)

(3,961)

(5)

103

(49)

(4,480)(12,299)(43,495)

INVESTING ACTIVITIES:

Adjustments for:
Depreciation and amortization

Thousands of U.S.
Dollars (Note 1)

Millions of Yen

2014

2013

OPERATING ACTIVITIES:
Income before income taxes and minority interests

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Thousands of U.S.
Dollars (Note 1)

Millions of Yen

Stock Information/
Corporate History

Financial Section

Changes in assets and liabilities:

Purchases of property and equipment
Sales of property and equipment
Purchases of software
Other - net
Net cash (used in) provided by investing activities

Increase in accounts receivable - trade

(217)

(707)

(2,107)

Decrease (increase) in inventories

124

(231)

1,204

Increase in other current assets

(219)

(67)

(2,126)

Repayment of lease obligations

(200)

(247)

(1,942)

Decrease in prepaid pension cost

680

164

6,602

Dividends paid

(692)

(693)

(6,718)

Increase (decrease) in liability for retirement benefits

(594)

4

(5,767)

(892)

(940)

(8,660)

Increase (decrease) in accounts payable - trade

(85)

406

(825)

Increase in other current liabilities

32

810

311

NET DECREASE IN CASH AND CASH EQUIVALENTS(1,239)(8,569)(12,029)

Decrease in other long-term liabilities

(2)

(9)

(19)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

5,500

14,06953,398Other - net

(136)

(34)

(1,322)

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 3)¥ 4,261

5,500$ 41,369

Subtotal

5,881

6,537

57,097

See notes to consolidated financial statements.

Interest and dividends received

42

34

408

Interest paid

(8)

(13)

(78)

(1,782)(1,888)(17,301)¥ 4,133¥ 4,670$ 40,126

Income taxes paid
Net cash provided by operating activities

FINANCING ACTIVITIES:Net cash used in financing activities¥

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Information Systems Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
Panasonic Information Systems Co., Ltd. (the “Company”), was incorporated on February 22, 1999,
as a subsidiary of Panasonic Electric Works Co., Ltd. (the “Parent” (a)). The Company is 64%
owned by the Parent at both March 31, 2014 and 2013. The principal business of the Company isto provide integration service for information systems; maintenance of computer systems; design,development, sales, lease, and rental of computer software; information network service; and salesof related equipment.
The accompanying consolidated financial statements have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related
accounting regulations, and in accordance with accounting principles generally accepted in Japan(“Japanese GAAP”), which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements
have been made to the consolidated financial statements issued domestically in order to present
them in a form, which is more familiar to readers outside Japan. In addition, certain reclassifications
have been made in the 2013 consolidated financial statements to conform to the classifications
used in 2014.
The consolidated financial statements are stated in Japanese yen, the currency of the country inwhich the Company is incorporated and operates. The translations of Japanese yen amounts into
U.S. dollar amounts are included solely for the convenience of readers outside Japan and havebeen made at the rate of ¥103 to $1, the approximate rate of exchange at March 31, 2014. Suchtranslations should not be construed as representations that the Japanese yen amounts could be
converted into U.S. dollars at that or any other rate.
(a) The Parent was merged with Panasonic Corporation by an absorption-type merger in January
2012.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation
The consolidated financial statements as of March 31, 2014 include the accounts of the Company
and its 2 subsidiaries (2 subsidiaries in 2013) (together, the “Group”).
Under the control concept, the Company consolidates entities that it, directly or indirectly, is able
to exercise control over operations.
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets

Corporate Governance

Financial Section

Stock Information/
Corporate History

For the latest information click here (IR Library)
http://is-c.panasonic.co.jp/en/ir/library/of the acquired subsidiary at the date of acquisition and is amortized on a straight-line basis over
five years.
All significant intercompany balances and transactions have been eliminated in consolidation.
All material unrealized profit included in assets resulting from transactions within the Group is also
eliminated.
b. Cash Equivalents
Cash equivalents are short-term investments that are readily convertible into cash and that are
exposed to insignificant risk of changes in value. Cash equivalents include deposits paid, all ofwhich mature or become due within three months of the date of acquisition.
c. Inventories
Merchandise and supplies are stated at the lower of cost, determined by the moving-averagemethod, or net selling value. Work in process inventories are stated at the lower of cost, determinedby the specific identification method, or net selling value.
d. Investment Securities
Available-for-sale securities, which are not classified as either trading securities or held-to-maturity
debt securities, are reported at fair value, with unrealized gains and losses, net of applicable taxes,
reported in a separate component of equity.
e. Property and Equipment
Property and equipment are stated at cost. The straight-line depreciation method is applied to allproperty and equipment for 2014 and 2013. The range of useful lives is from 8 to 15 years forbuildings and from 3 to 10 years for tools, furniture, and fixtures. The useful lives for lease assets
are the terms of the respective leases.
f. Long-Lived Assets
The Group reviews its long-lived assets for impairment whenever events or changes incircumstances indicate the carrying amount of an asset or asset group may not be recoverable.
An impairment loss is recognized if the carrying amount of an asset or asset group exceeds thesum of the undiscounted future cash flows expected to result from the continued use and eventual
disposition of the asset or asset group. The impairment loss would be measured as the amount bywhich the carrying amount of the asset exceeds its recoverable amount, which is the higher of the
discounted cash flows from the continued use and eventual disposition of the asset or the net
selling price at disposition.

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Information Systems Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

g. Software
Software to be sold is amortized by the straight-line method over the estimated economic life of thesoftware, 3 years. Software for internal use is amortized by the straight-line method over its usefullife, 5 years.
h. Retirement Benefits
The Company has a noncontributory funded pension plan together with the Parent and certain
other domestic consolidated subsidiaries of the Parent covering substantially all of their employees.
The liability for retirement benefits is accounted for based on projected benefit obligations and plan
assets at the balance sheet date. The simplified method is used for computing retirement benefit
obligation of one of the subsidiaries.
Effective April 1, 2000, the Company adopted a new accounting standard for retirement benefits
and accounted for the liability for retirement benefits based on the projected benefit obligations andplan assets at the balance sheet date. The projected benefit obligations are attributed to periods ona straight-line basis. Actuarial gains and losses are amortized on a straight-line basis over 15 years
within the average remaining service period. Past service costs are amortized on a straight-line
basis over 7 years within the average remaining service period.
In May 2012, the Accounting Standards Board of Japan (the “ASBJ”) issued ASBJ Statement
No. 26, “Accounting Standard for Retirement Benefits” and ASBJ Guidance No. 25, “Guidance on
Accounting Standard for Retirement Benefits,” which replaced the accounting standard for
retirement benefits that had been issued by the Business Accounting Council in 1998 with
an effective date of April 1, 2000, and the other related practical guidance, and were followed bypartial amendments from time to time through 2009.
(a) Under the revised accounting standard, actuarial gains and losses and past service costs thatare yet to be recognized in profit or loss are recognized within equity (accumulated othercomprehensive income), after adjusting for tax effects, and any resulting deficit or surplus isrecognized as a liability (liability for retirement benefits) or asset (asset for retirement benefits).
(b) The revised accounting standard does not change how to recognize actuarial gains and losses
and past service costs in profit or loss. Those amounts are recognized in profit or loss over a certain
period no longer than the expected average remaining service period of the employees. However,actuarial gains and losses and past service costs that arose in the current period and have not yet
been recognized in profit or loss are included in other comprehensive income and actuarial gains
and losses and past service costs that were recognized in other comprehensive income in priorperiods and then recognized in profit or loss in the current period shall be treated as reclassification
adjustments.

Corporate Governance

Financial Section

Stock Information/
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For the latest information click here (IR Library)
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attributing expected benefit to periods and relating to the discount rate and expected future salary
increases.
This accounting standard and the guidance for (a) and (b) above are effective for the end of annual
periods beginning on or after April 1, 2013, and for (c) above are effective for the beginning ofannual periods beginning on or after April 1, 2014, or for the beginning of annual periods beginningon or after April 1, 2015, subject to certain disclosure in March 2015, both with earlier application
being permitted from the beginning of annual periods beginning on or after April 1, 2013. However,no retrospective application of this accounting standard to consolidated financial statements in priorperiods is required.
The Company applied the revised accounting standard and guidance for retirement benefits for(a) and (b) above, effective March 31, 2014. As a result, liability for retirement benefits of ¥923
million ($8,961 thousand) was recorded as of March 31, 2014, and accumulated othercomprehensive income for the year ended March 31, 2014, decreased by ¥973 million ($9,447
thousand).
i. Asset Retirement Obligations
In March 2008, the ASBJ published ASBJ Statement No. 18, “Accounting Standard for Asset
Retirement Obligations” and ASBJ Guidance No. 21, “Guidance on Accounting Standard for Asset
Retirement Obligations.” Under this accounting standard, an asset retirement obligation is defined
as a legal obligation imposed either by law or contract that results from the acquisition,
construction, development, and normal operation of a tangible fixed asset and is associated withthe retirement of such tangible fixed asset. The asset retirement obligation is recognized as the sumof the discounted cash flows required for the future asset retirement and is recorded in the period inwhich the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of
the asset retirement obligation cannot be made in the period the asset retirement obligation isincurred, the liability should be recognized when a reasonable estimate of asset retirement
obligation can be made. Upon initial recognition of a liability for an asset retirement obligation,
an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset
by the amount of the liability. The asset retirement cost is subsequently allocated to expense
through depreciation over the remaining useful life of the asset. Over time, the liability is accreted toits present value each period. Any subsequent revisions to the timing or the amount of the original
estimate of undiscounted cash flows are reflected as an adjustment to the carrying amount of theliability and the capitalized amount of the related asset retirement cost.

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Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

j. Leases
In March 2007, the ASBJ issued ASBJ Statement No. 13, “Accounting Standard for Lease
Transactions,” which revised the previous accounting standard for lease transactions. The revised
accounting standard for lease transactions was effective for fiscal years beginning on or after April
1, 2008.
Under the previous accounting standard, finance leases that were deemed to transfer ownershipof the leased property to the lessee were capitalized. However, other finance leases were permitted
to be accounted for as operating lease transactions if certain “as if capitalized” information wasdisclosed in the notes to the lessee’s financial statements. The revised accounting standard
requires that all finance lease transactions be capitalized by recognizing lease assets and leaseobligations in the balance sheet. In addition, the revised accounting standard permits leases thatexisted at the transition date and do not transfer ownership of the leased property to the lessee tocontinue to be accounted for as operating lease transactions with certain “as if capitalized”
information disclosed in the notes to the lessee’s financial statements.
The Company applied the revised accounting standard effective April 1, 2008. In addition, theCompany continues to account for leases that existed at the transition date and do not transfer
ownership of the leased property to the lessee as operating lease transactions.
All other leases are accounted for as operating leases.
k. Bonuses to Directors and Audit & Supervisory Board Members
Bonuses to directors and Audit & Supervisory Board members are accrued at the end of the year towhich such bonuses are attributable.
l. Software Revenue Recognition
On March 30, 2006, the ASBJ issued Practical Issues Task Force No. 17, “Practical Solution on
Revenue Recognition of Software.” The Group adopted this task force in the year ended March 31,
2007.
m. Construction Contracts
In December 2007, the ASBJ issued ASBJ Statement No. 15, “Accounting Standard forConstruction Contracts,” and ASBJ Guidance No. 18, “Guidance on Accounting Standard forConstruction Contracts.” Under this accounting standard, construction revenue and construction
costs should be recognized by the percentage-of-completion method if the outcome of aconstruction contract can be estimated reliably. When total construction revenue, total construction
costs, and the stage of completion of the contract at the balance sheet date can be reliably
measured, the outcome of a construction contract is deemed to be estimated reliably. If theoutcome of a construction contract cannot be reliably estimated, the completed-contract method

Corporate Governance

Financial Section

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Corporate History

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http://is-c.panasonic.co.jp/en/ir/library/should be applied. When it is probable that the total construction costs will exceed total
construction revenue, an estimated loss on the contract should be immediately recognized byproviding for a loss on construction contracts.
n. Income Taxes
The provision for income taxes is computed based on the pretax income included in the
consolidated statement of income and comprehensive income. The asset and liability approach isused to recognize deferred tax assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases of assets and liabilities.
Deferred taxes are measured by applying currently enacted tax laws to the temporary differences.
o. Per Share Information
Basic net income per share is computed by dividing net income available to common shareholders
by the weighted-average number of common shares outstanding for the period.
Diluted net income per share is not presented as no securities with a dilutive effect have been
issued.
Cash dividends per share presented in the accompanying consolidated statement of income andcomprehensive income are dividends applicable to the respective years, including dividends to be
paid after the end of the year.
The weighted-average number of common shares used in the basic net income per sharecomputation was 10,655,628 shares and 10,655,645 shares for 2014 and 2013, respectively.
p. Accounting Changes and Error Corrections
In December 2009, the ASBJ issued ASBJ Statement No. 24, “Accounting Standard for
Accounting Changes and Error Corrections,” and ASBJ Guidance No. 24, “Guidance on
Accounting Standard for Accounting Changes and Error Corrections.” Accounting treatments under
this standard and guidance are as follows: (1) Changes in Accounting Policies - When a new
accounting policy is applied following revision of an accounting standard, the new policy is applied
retrospectively unless the revised accounting standard includes specific transitional provisions, inwhich case the entity shall comply with the specific transitional provisions. (2) Changes in
Presentation - When the presentation of financial statements is changed, prior-period financial
statements are reclassified in accordance with the new presentation. (3) Changes in Accounting
Estimates - A change in an accounting estimate is accounted for in the period of the change if thechange affects that period only and is accounted for prospectively if the change affects both theperiod of the change and future periods. (4) Corrections of Prior-Period Errors - When an error inprior-period financial statements is discovered, those statements are restated.

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Information Systems Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

The reconciliation of cash and deposits in the consolidated balance sheet to cash and cash
equivalents in the consolidated statement of cash flows as of March 31, 2014 and 2013, was asfollows:

Cash and cash equivalents

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2014

2013

2014

¥

¥

$

86

Cost

Thousands of
U.S. Dollars

Millions of Yen

Deposits paid with original maturities of within three months

Stock Information/
Corporate History

The costs and aggregate fair values of investment securities as of March 31, 2014 and 2013, wereas follows:

3. RECONCILIATION TO CASH AND CASH EQUIVALENTS

Cash and deposits

Financial Section

269

835

4,175

5,231

40,534¥ 4,261¥ 5,500$ 41,369

Millions of Yen
Unrealized
Unrealized
Gains
LossesFair Value

March 31, 2014
Securities classified as:
Available-for-sale:
Equity securities

¥ 187

¥ 85

—

¥ 272

¥ 187

¥ 54

¥ (10)¥ 231

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
LossesFair Value—$ 2,641

March 31, 2013
Securities classified as:
Available-for-sale:
Equity securities

4. INVENTORIESInventories as of March 31, 2014 and 2013, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

Cost

March 31, 2014

2014

2013

2014

Securities classified as:

¥ 168

¥ 290

$ 1,631

Available-for-sale:

Work in process

91

92

883

Equity securities

Supplies

0

1

1

¥ 259

¥ 383

$ 2,515

Merchandise

Total$ 1,816$ 825

6. GOODWILL
Goodwill as of March 31, 2014 and 2013, consisted of the following:

5. INVESTMENT SECURITIESThousands of
U.S. Dollars

Millions of Yen

2014

2013

Goodwill on business acquisition

2014

2013

—

¥ 13

2014
Goodwill on business acquisition is amortized on a straight-line basis over five years.

Non-current:
Marketable equity securities

Thousands of
U.S. Dollars

Millions of Yen

Investment securities as of March 31, 2014 and 2013, consisted of the following:

¥ 272

¥ 231

$ 2,6412014—

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Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

7. DEPOSITS RECEIVED
Thousands of
U.S. Dollars

Millions of Yen

Other
Total

2014

2013

2014

¥ 33

¥ 35

$ 320

16

18

155

49

53

475

Less current portion

(16)

(18)

(155)

Long-term debt, less current portion

¥ 33

¥ 35

$ 320

Interest rates applicable to the welfare pension were 7.1% at March 31, 2014 and 2013.
Annual maturities of deposits received at March 31, 2014, were as follows:
Millions of Yen

Thousands of
U.S. Dollars

2015

¥ 16

$ 155

2016

2

19

Year Ending March 31

2017
2018
2019
2020 and thereafter
Total

Financial Section

Stock Information/
Corporate History

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8. RETIREMENT BENEFITS

Deposits received as of March 31, 2014 and 2013, consisted of the following:

Welfare pension

Corporate Governance

2
2
2
25
¥ 49

The Company has severance payment plans for employees. Under most circumstances,
employees terminating their employment are entitled to retirement benefits determined principally
based on accumulated points allocated to them each year according to their age and job evaluationand interest points over the accumulated points. Such retirement benefits are made in the form of
annuity payments from the noncontributory funded defined benefit pension plan. Employees areentitled to larger payments if the termination is involuntary, by retirement at the mandatory
retirement age, by death, or by voluntary retirement at certain specific ages prior to the mandatory
retirement age. The Company transferred its retirement benefit plans from defined benefit plans to adefined contribution pension plan effective on July 1, 2013. This new plan is effective for the futurefrom this effective date, and the Company continuously treats funding contribution until June 30,
2013 as within the scope of defined benefit plans.
Year Ended March 31, 2014
(1) The changes in defined benefit obligation for the year ended March 31, 2014, were as follows:
Millions of Yen

Thousands of
U.S. Dollars¥ 4,979$ 48,340

19

Current service cost

81

786

19

Interest cost

72

699

19

Actuarial losses

23

223

244

Benefits paid

(116)

(1,126)

Past service cost(486)

(4,718)Others

(47)

(456)

¥ 4,506$ 43,748$ 475

Balance at beginning of year

Balance at end of year

(2) The changes in plan assets for the year ended March 31, 2014, were as follows:
Millions of Yen

Thousands of
U.S. Dollars¥ 3,431$ 33,311

Expected return on plan assets

106

1,029

Actuarial losses

87

845

Contributions from the employer

143

1,388

Benefits paid

(116)

(1,126)

Others

(53)

(515)

¥ 3,598$ 34,932

Balance at beginning of year

Balance at end of year

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Notes to Consolidated Financial Statements¥ 923
Year Ended March 31, 2014

¥ 923
(3) Reconciliation between the liability recorded in the consolidated balance sheet and thebalances of defined benefit obligation and plan assets as of March 31, 2014, were as follows:

Financial Section

Stock Information/
Corporate History

For the latest information click here (IR Library)
http://is-c.panasonic.co.jp/en/ir/library/(6) Plan assets as of March 31, 2014
a. Components of plan assets
Plan assets consisted of the following:

Millions of Yen

Thousands of
U.S. Dollars

Funded defined benefit obligation¥ 4,506$ 43,748

Plan assets(3,598)(34,932)

Debt investments

69%

908

8,816

Equity investments

23

15

145

Cash and cash equivalents

4

Unfunded defined benefit obligation
Net liability arising from defined benefit obligation¥

923

Millions of Yen$ 8,961
Thousands of
U.S. Dollars

Liability for retirement benefits¥923$ 8,961

Net liability arising from defined benefit obligation¥

923$ 8,961(4) The components of net periodic benefit costs for the year ended March 31, 2014, were as
follows:
Millions of Yen

Service cost
Interest cost
Expected return on plan assets¥ 81

Thousands of
U.S. Dollars

$

786

72

699

(106)

(1,029)Amortization of past service cost

(16)

(155)

Recognized actuarial losses

186

1,806

5

48

¥ 222

$ 2,155

Amortization of transitional obligation
Net periodic benefit costs(5) Accumulated other comprehensive income on defined retirement benefit plans as ofMarch 31, 2014, was as follows:
Unrecognized past service cost
Unrecognized actuarial losses
Total

Millions of Yen

Thousands of
U.S. Dollars¥ (170)$ (1,650)

1,677

16,282¥ 1,507$ 14,632

Others

4

Total

100%

b. Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates of return
which are expected currently and in the future from the various components of the plan assets.
(7) Assumptions used for the year ended March 31, 2014, were set forth as follows:
Discount rate

1.6%

Expected rate of return on plan assets

3.0%Year Ended March 31, 2013
The liability (asset) for employees’ retirement benefits at March 31, 2013, consisted of the following:
Millions of Yen

Projected benefit obligation (a)¥ 4,989

Fair value of plan assets(3,431)

Unrecognized prior service cost(300)

Unrecognized actuarial loss

(1,927)Net liability (asset)¥ (669)(a) For one of the consolidated subsidiaries, the simplified method is used for computing retirement benefit obligations.

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Information Systems Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

The components of net periodic benefit costs for the year ended March 31, 2013, were as follows:
Millions of Yen

Service cost (a)¥ 274Interest cost95

Expected return on plan assets(99)

Amortization of prior service cost

54

Recognized actuarial loss

136

Net periodic benefit costs¥ 460(a) Net periodic benefit cost of subsidiary using the simplified method is included.

Assumptions used for the year ended March 31, 2013, were set forth as follows:
Discount rate

1.6%

Expected rate of return on plan assets

3.0%

Amortization period of prior service cost

7 years

Recognition period of actuarial gain/loss

15 years

9. EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The
significant provisions in the Companies Act that affect financial and accounting matters are
summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon resolution at the shareholders’ meeting. For companies thatmeet certain criteria such as (1) having a Board of Directors, (2) having independent auditors, (3)having an Audit & Supervisory Board, and (4) the term of service of the directors is prescribed as
one year rather than two years of normal term by its articles of incorporation, the Board of Directors
may declare dividends (except for dividends-in-kind) at any time during the fiscal year if thecompany has prescribed so in its articles of incorporation. The Company meets all the above
criteria.
The Companies Act permits companies to distribute dividends-in-kind (noncash assets) toshareholders subject to a certain limitation and additional requirements.

Corporate Governance

Financial Section

Stock Information/
Corporate History

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Semiannual interim dividends may also be paid once a year upon resolution by the Board of
Directors if the articles of incorporation of the company so stipulate. The Companies Act provides
certain limitations on the amounts available for dividends or the purchase of treasury stock. The
limitation is defined as the amount available for distribution to the shareholders, but the amount of
net assets after dividends must be maintained at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as alegal reserve (a component of retained earnings) or as additional paid-in capital (a component of
capital surplus) depending on the equity account charged upon the payment of such dividends until
the aggregate amount of legal reserve and additional paid-in capital equals 25% of the common
stock. Under the Companies Act, the total amount of additional paid-in capital and legal reserve
may be reversed without limitation. The Companies Act also provides that common stock, legal
reserve, additional paid-in capital, other capital surplus, and retained earnings can be transferredamong the accounts under certain conditions upon resolution of the shareholders.
c. Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of suchtreasury stock by resolution of the Board of Directors. The amount of treasury stock purchased
cannot exceed the amount available for distribution to the shareholders, which is determined by aspecific formula. Under the Companies Act, stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides that companies can purchase bothtreasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights arepresented as a separate component of equity or deducted directly from stock acquisition rights.

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Information Systems Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

10. INCOME TAXESThe Company and subsidiaries are subject to Japanese national and local income taxes which, inthe aggregate, resulted in a normal effective statutory tax rate of approximately 37.8% for the years
ended March 31, 2014 and 2013.
The tax effects of significant temporary differences, which resulted in deferred tax assets andliabilities as of March 31, 2014 and 2013, were as follows:

2014

2013

2014

¥

69

¥ 76

$

Depreciation

278

265

2,699

Accrued bonus to employees

312

290

3,029

Deferred tax assets:

670

Others

475

163

4,611

Total

¥ 1,134¥ 794$ 11,009

—

¥ 237

—

Deferred tax liabilities:
Prepaid pension cost
Unrealized gains on available-for-sale securities

¥

30

17

—

0

30

¥ 254

$

¥ 1,104¥ 540$ 10,718

OthersTotal
Net deferred tax assets¥

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Because the differences between the normal effective statutory tax rates and the actual effective tax
rates for the year ended March 31, 2013 are not material, the tax reconciliations were not disclosed.
On March 31, 2014, a tax reform law was enacted in Japan which changed the normal effective
statutory tax rate from approximately 37.8% to 35.4%, effective for years beginning on or after April
1, 2014. The effect of this change on deferred tax assets in the consolidated statements of income
for the year ended March 31, 2014, was approximately ¥51 million ($495 thousand).

Thousands of
U.S. Dollars

Millions of Yen

Accrued enterprise taxes

Stock Information/
Corporate History

Financial Section

$

291
—
291

A reconciliation between the normal effective statutory tax rates and the actual effective tax rates
reflected in the accompanying consolidated statement of income for the year ended March 31,
2014, was as follows:
Normal effective statutory tax rate

37.8%

Effect of tax rate reduction

1.2

Inhabitant tax on per capita basis

0.4

Expenses not deductible for income tax purposes

0.3

Other - net

0.6

Actual effective tax rate

40.3%

11. RESEARCH AND DEVELOPMENT COSTS
Research and development costs included in cost of sales and selling, general, and administrative
expenses were ¥121 million ($1,175 thousand) and ¥135 million for the years ended March 31,
2014 and 2013, respectively.

12. LEASESThe Group leases certain computer equipment and other assets.
Total lease payments under finance leases for the years ended March 31, 2014 and 2013, were¥209 million ($2,029 thousand) and ¥264 million, respectively.
Obligations under finance leases and future minimum payments under noncancelable operatingleases as of March 31, 2014, were as follows:

2014
Millions of Yen
Finance
Operating
LeasesLeasesThousands of U.S. Dollars
Finance
Operating
LeasesLeasesDue within one year

¥ 171

¥ 77

$ 1,660

Due after one year

35

69

340

669

¥ 206

¥ 146

$ 2,000$ 1,417

Total

$

748

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Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

Pro forma Information of Leased Property Whose Lease Inception Was before March 31, 2008
Pro forma information of leased property whose lease inception was before March 31, 2008, was
as follows:
Millions of Yen
Thousands of U.S. Dollars

2014
Tools, Furnitureand Fixtures

Acquisition cost

¥ 19

2014

2013
Total

¥ 19

Tools, Furnitureand Fixtures

¥ 19

Total

Tools, Furnitureand Fixtures

Total

$ 184

$ 184

¥ 19

Accumulated depreciation

(19)

(19)

(16)

(16)

(184)

(184)

Net leased property

¥ 0

¥ 0

¥ 3

¥ 3

$

$

Obligations under finance leases:

00

Thousands of
U.S. Dollars

Millions of Yen

2014

2013

2014

Due within one year

¥0

¥3

$0

Due after one year

—

0

—

Total

¥0

¥3

$0

Depreciation expense, interest expense, and other information under finance leases:
Thousands of
U.S. Dollars

Millions of Yen

Depreciation expense

2014

2013

¥2

¥4

2014
$ 19

0

0

0

Total

¥2

¥4

$ 19

Lease payments

¥3

¥6

$ 29

Interest expense

Depreciation expense and interest expense, which are not reflected in the accompanying
consolidated statement of income and comprehensive income, are computed by the straight-line
method and the interest method, respectively.

13. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Financial Instruments’ Policies
The Group raises necessary money from its own fund, in light of capital investment plans fordevelopment of software and acquisition of data management facilities and hardware, etc. The
Company places surplus funds only in short-term deposits.

Corporate Governance

Financial Section

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http://is-c.panasonic.co.jp/en/ir/library/(2) Financial Instruments and Risks
Accounts receivable - trade which are operating receivables, are exposed to customer credit risks.
Investment securities are shares in companies with which the Company has business relationships
or capital alliances, and are exposed to market fluctuation risks.
Settlements of most accounts payable - trade which are operating liabilities, are within one year.
Some of them are in foreign currency due to exports of products and are subject to exchange-ratefluctuation risks. However, they have little impact because of their small amounts. Lease obligations
relating to finance leases are mainly for procuring the required capital investment. Maturities can be
up to five years after balance sheet dates.
(3) Financial Instrument Risk Management Structure
a. Credit Risk Management (including risks of customers breaching contracts)
In accordance with the receivables management rules, the Company regularly monitors thestatus of key customers’ operating receivables and oversees due dates and balances bycustomer in cooperation between the head office accounting department and each businessdivision. With this, the Company is endeavoring to swiftly identify and alleviate collection concernsthat could stem from deteriorating financial positions or other factors. Its subsidiaries have
implemented the same management system in compliance with the Group’s receivables
management policies.
The maximum amount of credit risk as of the end of the fiscal year under review is shown as abalance sheet value of financial assets subject to credit risks.
b. Market Risk Management (foreign exchange and interest rate risks)
The Company’s operating liabilities in foreign currency have little impact due to their small
amounts. The Company checks the trends in exchange rates each time a transaction is made.
The Company regularly assesses the prices of marketable investment securities and financial
positions of their issuers (business partners) and constantly reviews the necessity of suchholdings in consideration of the relationship with them.
c. Funding-Related Liquidity Risk Management (risk of inability to settle by payment dates)
The Company’s accounting department formulates and renews funding plans based on reports
from each department in a timely manner. The Company also has made the agreement for use of
the cash management system with Panasonic Corporation so as to control liquidity risks bymanaging surplus funds and balances constantly.
(4) Fair Values of Financial Instruments
Fair values of financial instruments are based on a quoted price in active markets. If a quoted priceis not available, other rational valuation techniques are used instead.

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Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014

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Thousands of U.S. Dollars

Millions of Yen
Carrying
AmountMarch 31, 2014

$

835

$

Fair Value

Unrealized
Gain/Loss

835—

Cash and deposits

7,799

7,799

—

Accounts receivable - trade

75,71875,718—18,18018,180—

Deposits paid

176,505

176,505

—

272

272

—

Investment securities

2,641

2,641

—

Total

¥ 26,337¥ 26,337—

Total$ 255,699$ 255,699—

Accounts payable - trade¥ 2,168¥ 2,168—

Accounts payable - trade$ 21,049$ 21,049—

Accounts payable - other

1,765

1,765

—

Accounts payable - other

17,136

17,136—

Income taxes payable

1,023

1,023

—

Income taxes payable

9,932

9,932

—

35

34

(0)

Long-term lease obligations

340

330

(10)

¥ 4,991¥ 4,990¥ (0)$ 48,457$ 48,447$ (10)

Deposits paid
Investment securities

Long-term lease obligations
Total

¥

Carrying
AmountMarch 31, 2014—

Accounts receivable - trade86

Unrealized
Gain/Loss

86

Cash and deposits¥

Fair Value

Stock Information/
Corporate History

Financial Section

Total

Millions of Yen
Carrying
AmountMarch 31, 2013
Cash and deposits

269¥

Unrealized
Gain/Loss

269—

Accounts receivable - trade

7,582

7,582

—

Deposits paid

16,236

16,236—

Investment securities¥

Fair Value

231

231

—

Total

¥ 24,318¥ 24,318—

Accounts payable - trade¥ 2,253¥ 2,253—

Accounts payable - other

1,659

1,659

—

948

948

—

Income taxes payable
Long-term lease obligations
Total

176

174

(2)

¥ 5,036¥ 5,034¥ (2)Cash and Deposits
The carrying values of cash and deposits approximate fair value because of their short maturities.
Investment Securities
The fair values of investment securities are measured at the quoted market price of the stock
exchange for the equity instruments. Fair value information for the investment securities byclassification is included in Note 5.
Accounts Receivable and Accounts Payable
The carrying values of accounts receivable and accounts payable approximate fair value because of
their short maturities.
Deposits Paid
The carrying values of deposits paid approximate fair value because of their short maturities.
Income Taxes Payable
The carrying values of income tax payable approximate fair value because of their short maturities.
Long-Term Lease Obligations
The fair values of lease obligations are determined by discounting the cash flows related to the debt
at the Group’s assumed lease interest rate.

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Information Systems Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statements PanasonicYear Ended March 31, 2014(5) Maturity Analysis for Financial Assets with Contractual Maturities

March 31, 2014

Due in1 Year or Less

Cash and deposits¥

Accounts receivable - trade
Deposits paid
Total

Due after 10 Years

—

—

—

7,799

—

—

—

18,180———¥ 26,065———

March 31, 2014
Cash and deposits$

Thousands of U.S. Dollars
Due after
Due after
1 Year through5 Years through5 Years
10 Years

Due after 10 Years

835

—

—

—

Accounts receivable - trade

75,718———Deposits paid

176,505———$ 253,058

—

—

—

Total

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15. RELATED PARTY TRANSACTIONSMillions of Yen
Due after
Due after
1 Year through5 Years through5 Years
10 Years86

Due in1 Year or Less

Stock Information/
Corporate History

Financial Section

Balances as of March 31, 2014 and 2013, and transactions for the years ended March 31, 2014
and 2013, with the Parent, its consolidated subsidiaries, and its associated companies were as
follows:
Thousands of
U.S. Dollars

Millions of Yen

2014

2013

2014

¥ 21,023¥ 21,911$ 204,107

Purchases

894

611

8,680

Lease and rental expense

581

568

5,641

Interest income

36

29

350

¥ 4,338¥ 5,034$ 42,117

17,944

15,988174,214

—

10

—

Sales

Accounts receivable - trade
Deposits paid
Other current assets
Accounts payable:

Please see Note 12 for obligations under finance lease.

Trade

99

71

961

Other

137

147

1,330

14. COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2014 and 2013,
were as follows:
Thousands of
U.S. Dollars

Millions of Yen

2014

2013

2014

Unrealized gain on available-for-sale securities:
Gains arising during the year

¥ 40

¥ (48)

Appropriation of Retained Earnings
The following appropriation of retained earnings as of March 31, 2014, was resolved at the Board of
Directors’ meeting held on May 19, 2014:$ 388

Reclassification adjustments to profit or loss

—

—

—

Amount before income tax effect

40

(48)

388

Income tax effect

(13)

18

(126)

¥ 27

¥ (30)$ 262

Total other comprehensive income

16. SUBSEQUENT EVENT

Year-end cash dividends, ¥32.5 ($0.32) per share

Millions of Yen

Thousands of
U.S. Dollars¥ 346$ 3,359

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Independent Auditor’s Report

To the Board of Directors of Panasonic Information Systems Co., Ltd.:We have audited the accompanying consolidated balance sheet of Panasonic Information Systems
Co., Ltd. and subsidiaries as of March 31, 2014, and the related consolidated statements ofincome and comprehensive income, changes in equity, and cash flows for the year then ended,
and a summary of significant accounting policies and other explanatory information, all expressed inJapanese yen.
Management's Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for suchinternal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. We conducted our audit in accordance with auditing standards generally accepted in Japan.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fairpresentation of the consolidated financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Panasonic Information Systems Co., Ltd. andsubsidiaries as of March 31, 2014, and the consolidated results of their operations and their cash
flows for the year then ended in accordance with accounting principles generally accepted inJapan.
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts
and, in our opinion, such translation has been made in accordance with the basis stated in Note 1
to the consolidated financial statements. Such U.S. dollar amounts are presented solely for theconvenience of readers outside Japan.

June 18, 2014

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Stock Information
As of March 31, 2014

Total Shares Authorized

40,000,000 Shares

Major Shareholders

Full-Year Dividends per Share
Number of
SharesOwnership
Ratio

6,787

63.69

609

5.71

Total Shares Issued

10,656,000 Shares

Number of Shareholders

3,908

Stock Exchange Listing

Tokyo Stock Exchange, First Section

Securities Code4283

BBH FOR FIDELITY LOW-PRICED STOCK FUND
(PRINCIPAL ALL SECTOR SUBPORTFOLIO)

Stock Trading Unit

100 Shares

Employees Stock Ownership Association

257

2.41

Regular Shareholders’ Meeting

June of each year

Japan Trustee Services Bank, Ltd. (Trust Account)

85

0.79

Transfer Agent

Sumitomo Mitsui Trust Bank, Limited

CREDIT SUISSE SECURITIES (EUROPE) LIMITEDPB OMNIBUS CLIENT ACCOUNT

62

0.58

The Master Trust Bank of Japan, Ltd. (Trust Account)

61

0.57

JP MORGAN CHASE BANK 385093

58

0.54

Japan Trustee Services Bank, Ltd. (Trust Account 5)

41

0.38

Japan Trustee Services Bank, Ltd. (Trust Account 1)

41

0.38

Japan Trustee Services Bank, Ltd. (Trust Account 3)

40

0.38

Shareholder

Breakdown of Shareholders by Number of Shares Held(% / Number of Shares Held)

1 - 999

7.12%

759,195

1,000 - 4,999

7.50%

799,423

5,000 - 9,999

2.70%

287,282(Thousands)

Panasonic Corporation

(Yen)

(%)

80

75.0
65.0

65.0 65.0 65.0 65.0 65.0 65.0

60

55.0 55.0
40

20

10.0
0

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15
3
3
3
3
3
3
3
3
3
3
3
*
(Plan)

Note: In addition to the above, there are 372 shares of treasury stock.

*Four-month irregular accounting year

10,000 - 99,999

10.84%

1,154,700

More than 100,000

71.84%

7,655,400

Stock Price Chart and Volume Trend
(Yen)

3,000

Breakdown of Shareholders by Investor Type(% / Number of Shares Held)

Stock Price (Left)(Yen)

Nikkei Average (Right)

15,0002,000

10,000

1,000

5,000

Financial Institutions

3.94%

419,700 (21 persons)Financial Instruments Firms

0.56%

59,033 (24 persons)

Other Corporations

66.62%

7,099,200 (51 persons)0(Shares)

600,000

Foreign Corporations, Other

400,000

10.66%

200,000

1,136,247 (93 persons)Individuals, Others

18.22% 1,941,820 (3,719 persons)0
Stock Trading Volume

0
’09/1

’10/1

’11/1

’12/1

’13/1

’14/1

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Corporate History
The Company was established in 1999, when theinformation system department of the former
Matsushita Electric Works, Ltd., became
independent. Based on the technical expertise2012

acquired for over 50 years beginning with ourtime as part of Matsushita Electric Works, weChange in corporate name to
Panasonic Information Systems Co., Ltd.

offer total solutions for information systems from2009

planning and design to development, operation

Establishment of
the Osaka Central Data Centerand maintenance. Our strength lies in our on-site

2008

capabilities cultivated by staying closely in tune
with site needs, solving problems through trial
and error. We strive to deliver useful solutions

2004

from the customer’s perspective.

2003
2001
1999
1961

Change in corporate name to
Panasonic Electric Works Information Systems Co., Ltd.

Listing on the First Section of
the Tokyo Stock Exchange
To strive for the creation of newvalues, by pursuing user-friendlinessand accomplishing high-tech mindset,
driven by challenging spirits and fullspeed of actions

Listing on the Second Section of
the Tokyo Stock Exchange

Listing of the stock on
the over-the-counter market (JASDAQ)

Corporate
VisionEstablishment of
Matsushita Electric Works Information Systems Co., Ltd.

Establishment of an information system department
at the former Matsushita Electric Works, Ltd.

Our
Ph
y
Philosophy

Corporate
SloganFor the creation of information
systems embedded with computers
to be unnoticed by people

ActionGuideline
Listen, think andcreate solutions