Panasonic & The Olympics: The End of a Multidecade Partnership?
Panasonic is the leading supplier of the on-site video screens, audio systems, and top-notch digital broadcast equipment.
Highlights
Panasonic will continue to provide top-notch technological support at the Olympics.
Initiatives like the IOC Young Leaders Programme will empower young athletes to create positive change in their communities.
Partnerships with athletes like Katie Ledecky and Hannah Cockroft show Panasonic's commitment to sustainability and inclusivity.
With billions in net sales, hundreds of consolidated companies, and over a century in business, labeling the Panasonic group as an industry leader could be an understatement. There is hardly anything industry-wise that Panasonic hasn't done, yet they keep reinventing their brand and building an even more stable relationship with their customers. In addition to the strong market presence and remarkable sustainability efforts, the company is very much focused on marketing – and their Olympic agenda is an ideal example.
From its sponsorship and equipment support of the Olympic Winter Games in Calgary in 1988 to its innovative video recording format at the Sydney Games in 2000 and the opening and closing ceremony partnership in Rio 2016, Panasonic has been with the Games through thick and thin. In addition to this year's agenda, many spectators are curious about the potential breakup between the two powerhouses after the Paris Games. What does Panasonic have in store for us at the end of this 8-year partnership extension?
Panasonic Video & Audio Support
Panasonic's involvement in the Games is based on the foundation of what they do best—technology. In 1984, Panasonic was the leading supplier of the main stadium's large video display and the event's state-of-the-art sound system. To this day, Panasonic remains in charge of the on-site video screens, audio systems, and top-notch digital broadcast equipment—but as one of the Worldwide Olympic Partners.
IOC Young Leaders Programme
Being an Olympian is so much more than just being an athlete. As prestigious and inspiring as it is, there's no denying that an athlete's career can often be short-lived or simply not financially rewarding. Therefore, many athletes may be unable to give back to their communities or get their message across the Olympic universe.
The IOC Young Leaders Programme, launched in 2016 as a collaboration between the IOC and Panasonic, supports the noble causes and innovative ideas of young athletes worldwide. The program's recurring themes are well-being, sustainability, inclusion, and education—the focal points of the UN's Sustainable Development Goals (SDGs). So far, it has yielded more than 116 projects, benefitting thousands of people.
Each year, 25 people from different spheres, disciplines, and parts of the world are chosen to turn their vision into reality. One of the 2023 IOC Young Leaders, Japanese athletics coach Ryosuke Itomi, participated in the program's training courses and then moved to Vanuatu's remote islands.Â
Little did he know that, through sports, he'd be able to transform Vanuatu's economic and social landscape forever by leveraging the islands' tourism resources. His social project, Yasur Volcano Run (a run on a trail around an active volcano), creates much-needed business opportunities for the local community—something they could only dream about for decades.
Partnership with Olympic Champion Katie Ledecky
Panasonic partnered with Discovery Education, an ed-tech leader, on a project called STEM (Science, Technology, Engineering, and Math) Forward. The STEM Forward initiative inspires students and educators in these fields by allowing them to join virtual field trips and learn more about different companies and their innovative processes first-hand.Â
This year, Katie Ledecky, the most successful female in swimming history and a proud STEM partner, took students and educators on a virtual trip to Panasonic's global headquarters in Japan. The experience included lessons and demonstrations of Panasonic's innovative practices, such as smart mobility, re-energized solar power, sustainable smart towns, and renewable energy. The idea of virtual field trips is yet another crucial step towards sustainability.
Partnership with Hannah Cockroft
Speaking of sustainability, Panasonic teamed up with Hannah Cockroft, an advocate of single-use plastics reduction and a seven-time Paralympic Champion in wheelchair racing. Hannah has been very vocal about sustainability issues and the importance of diversity in the world of sports. Panasonic, sharing these values and goals, will support the 12-time world champion in her fourth Olympic journey and inclusivity and sustainability-inspired social projects.Â
Panasonic and the Olympics at Crossroads
In addition to providing top-notch technological support and excelling in their expertise, Panasonic took their involvement in the Games seriously by introducing a multifaceted marketing campaign. Each campaign element fits perfectly into the puzzle of the Olympic image, aligning with the long-standing, well-known Olympic values such as sportsmanship, diversity, inclusivity, and sustainability.
However, after the last eight-year extension of the partnership, it remains a secret whether Panasonic will remain an Olympic Partner. If a further extension isn't signed, the deal will officially end after the 2024 Paris Games. Could Panasonic's decision to liquidate an LCD screen factory and switch its focus to electric car batteries be the reason behind the lack of further extension?Â
Nikkei Asia suggests that Panasonic is losing the battle in the LCD screen market, which could have inspired this business transition. Since visual equipment, including LCD screens, has been the essence of the partnership between the Olympics and Panasonic for decades, the speculations aren't unjustified.
Financial Outlook
Panasonic Holding Corporation is broken into half a dozen divisions — Lifestyle, Automotive, Connect, Industry, Energy, and Other. To view their latest earning report, visit here.
Lifestyle. Sales decreased by 2% to 2,585.0 billion yen from a year ago. This is due to decreased sales of consumer electronics mainly in the Chinese and other Asian markets and weakening demand for HVAC* business affected by deteriorated market conditions in Europe as well as the deconsolidation of part of businesses in China.
Lifestyle. Operating profit decreased to 96.7 billion yen from a year ago. This is due to decreased sales in consumer electronics and HVAC business as well as recording of additional quality-related expenses, despite increased sales of cold chain business and electrical construction materials.
Automotive. Sales increased by 19% to 1,112.9 billion yen from a year ago. This is due largely to the recovery of automobile production.
Connect. Sales increased by 6% to 848.9 billion yen from a year ago. This is due mainly to increased sales in Avionics, Gemba Solutions and Blue Yonder, despite decreased sales in Process Automation.
Industry. Sales decreased by 12% to 777.2 billion yen from a year ago. This is due to decreased sales of products for the Chinese market affected by deteriorating market conditions as well as the impact of changes in the sales channel resulting from the termination of the semiconductor business, despite increased sales in some products including capacitors for green vehicles.
Energy. Overall sales decreased by 2% to 705.6 billion yen from a year ago. This is due to decreased production of EV batteries in Japan for North America and decreased sales in Industrial / Consumer, despite favorable sales of EV batteries in North America.
Free cash flows (net cash provided by operating activities and investment activities) increased by 120.1 billion yen ($790 million) from a year ago to an inflow of 218.0 billion yen ($1.4 billion).
