 I would like to explain Management Policy in FY18.

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 This slide shows the transition of sales (in real terms) and operating
profit since FY13, the year I became a president.
 Until FY16, while we managed to offset profit drop from transferringand downsizing existing businesses with rationalization and fixed
cost reduction, we achieved to increase profit. In parallel with thoseinitiatives, we continued to lay the ground work for future growth, bytransforming businesses and focusing on our management
resources to growth businesses.
 In FY17, we recorded the decrease in profit due to upfront
investments for high-growth business. However, sales in real term
eventually shiffed over to real growth. We now get an assured
response towards “both sales and profit growth” from FY18 onwards.

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1 In order to assure sales and profit growth, we are going to execute
our growth strategies in the following three categories of businessaccordingly.
 For high-growth business such as automotive-related business
whose market is continuing to expand, we make our advantage ofthem as the driving force for sales and profit growth and will deploy
our management resources in well-focused manner.
 For stable-growth business such as white goods, generating steadyprofit and contributing to the stabilization of the management. And
also, these businesses play roles to generate investment funds forthe high-growth business.
 With regard to in-flight entertainment system business, which is ourmajor business for aviation, we categorize it as a stable growthbusiness from this fiscal year by judging the fact that the market isgetting matured.
 For low-profitable business, we have been undertaking the business
transformation and fixed cost reduction in order to improve ourmanagement structure. We have already made a good progress of
profitability in some areas, however, we will not stop tightening rein
and undertake the improvement measure thoroughly where thebusiness operation is still severe such as semiconductor business.
 Now, I would like to explain the outlook for FY18 based on eachbusiness category.

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2 Firstly, I would like to talk about the outlook for sales.
 In FY18, we expect all these business categories to achieve sales
growth in real terms excluding the effect of exchange rates.
 In high-growth business area, such factors as the sales expansion ofautomotive battery, the new consolidation of Ficosa, sales increaseof devices for automotive and industries, and air-conditioner areexpected to contribute significant higher sales growth.
 In stable-growth business area, overall trend is expected to remain
steady, in particular, with white goods.
 In low-profitable business, such businesses as Mobile Solutions areexpected to increase sales.
 As you can see, our initiatives to date led to the strong results, andhigh-growth business mainly in automotive-related business will playa major role of driving force to achieve overall growth in FY18.

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3 Next, I would like to talk about operating profit in each businesscategory.
 In order to focus on our real business capability of each business,the impact of one-time profit and cost incurred in FY17 is removed in
the right hand of this chart.
 High-growth business is expected to achieve large increase in its
profit led by automotive-related business such as automotive battery
business, a consolidation of Ficosa and infotainment business.
 Stable-growth business is expected to achieve profit growth throughthe further profitability improvement in such businesses as white
goods and wiring devices with their stable performance.
 Low-profitable business is expected to achieve profit growth throughthe improvement of management structure in TV and AV relatedbusinesses.
 In conclusion, in FY18, high-growth business is expected to increase
profit further through sales expansion and the profitability in stablegrowth and low-profitable business will be improved. Thus, we areaiming to achieve “Profit growth through sales expansion” .

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4 Next, I would like to highlight the major topics for each businesscategory.
 First, I will touch upon automotive-related business which is one of
our high-growth business with steady progress.
 The Company has envisaged the advent of electrification andcomputerization in cars 10 years ago, when I was an executive ofAutomotive Business. And we started to shift our resources for digitalconsumer technologies such as TV to automotive-related area.
In addition to these initiatives, we intergraded battery and device
technologies that we gained through SANYO acquisition and went on
to promote growth strategy in automotive-related business withgroup-wide support.
 These efforts have started to bear fruit and we will gradually begin todeliver our products for large-scale projects from FY18 onwards.
One of the cases is for JAGUAR LAND ROVER which we havecommenced deliveries for displays and HUDs (head-up displays) .
 These progresses are quite visible and 2 trillion yen sales target inautomotive-related business is becoming in our sight in FY19.
 Eco-cars including EV are continuing to widely spread and ADAS
technologies are evolving rapidly. Such demand from the society forelectrification and computerization are increasing. We will continue toachieve further growth by focusing on our resource into this businessfield where we can make our advantage.
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5 We will continue to make the strategic investment for high-growthbusiness.
 With these investments cases, we do make our decision in astudious manner, by setting the clear direction of growth strategies
and carefully monitoring the possible risk as well as return oninvestment.
 As of today, we have identified more than a total of 1 trillion yen
investment including some candidates. Having said that, we will
make a decision to execute well-focused investments.
 By the end of FY17, we have already invested approximately a totalof 400 billion yen in capital expenditure for secondary batteries, theacquisition of Ficosa and others.
 From now on, our investment will be focused mainly on automotive
battery as a capital expenditure.
 With regard to return on capital expenditure relating to automotiverelated business in US and China, we are aiming to accelerate thedepreciation period by cutting from common 7-10 years to shorter
term.

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6 Now, I would like to explain consumer electronics which represent
one of our stable-growth business.
 We have been implementing to enhance our management structure
and promote “Selection and Concentration” for recent years. As aresult, we have established the direction of consumer electronics
business led by white goods.
 First, we extensively shifted our resource from AV-related businesses
including TV and audio to white goods.
 Second, we promoted value-added ‘premium’ products in line with
our strategic white goods growth plan and made steady progress toincrease profit.
 In addition to these initiatives, we promoted the integration ofdevelopment, manufacturing and sales, and delegated the local
management drastically in order to establish speedy global
management structure. As a result, FY17 saw significant sales
growth in Asia and China region.
 Following these achievements, our consumer electronic business inIndia is going to enter into a new phase at this fiscal year and weestablished “Panasonic India Appliance Company” in April 2017.
Through the vigorous localization initiatives, we would like tomaterialize the growth in the region where the room for growth isforeseen.
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7 Last, I would like to explain low-profitable business area. For thepast years, we have steadily undertaken the measurements in orderto improve earnings. As a result, the profitability has been graduallyturning to positive.
 However, tough conditions in these three businesses are likely tocontinue. Therefore, we will prioritise to make “profit improvement”
as our top priority going forward.
 We continue to transform semiconductor business into automotive
and industrial applications and carry out fixed cost reduction andpushing further rationalization thoroughly. Through these efforts, weexpect this business turn in black in FY20.
 With regard to LCD panels, we will continue to specialize them forindustrial and automotive applications, of which we can enjoy ouradvantage. We also expect this business turn in black in FY20.
 In solar business, the domestic market will remain in challenging
environment. Therefore, we are aiming to expand overseas businessby utilizing the channel including Anchor and also strengthen ourcollaboration with Tesla in the US which was announced inDecember 2016.

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8 As explained in my presentation, the foundation for future growth has
been in place and we now get an assured response towards “bothsales and profit growth” in FY18.
 And also towards FY19, we forecast high-growth business such as
automotive-related will significantly contribute our earnings, stablegrowth business will generate profit steadily, and low- profitablebusiness will be improved.
 Herewith, we will stick to the financial target in FY19 of 450 billion
yen operating profit and 250 billion yen or above of net income.
Panasonic Group will strive together to achieve the financial target.

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9 Thank you for your continuous support and understanding.

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