[English translation of the original Japanese]
Summary of the online meeting with institutional investors held on June 14, 2024
This is an English translation of the summary of the online meeting which was conducted in Japanese.
Please note that there may be some differences between this summary and the simultaneous English
interpretation provided for the online meeting.
[Date & time]
June 14, 2024 / 17:45-18:45 (JST)[Venue]Zoom meeting[Moderator]
Mr. Yasuo Nakane, Senior Analyst, Mizuho Securities Co., Ltd.
[Panasonic Holdings Corporation] Yuki Kusumi, Group CEO
Kazuyo Sumida, Group CSO
Akira Waniko, Head of Corporate Finance, Accounting & IR Department

Q (Moderator) Mr. Nakane, Senior Analyst, Mizuho Securities Co., Ltd.
1

Q

Tech-related stock prices are currently rising considerably in the Japan and US markets, driven
by expectations for AI. In contrast, the stock price of Panasonic Holdings is almost flat. If we takethe starting point as October or November 2023, it has fallen considerably. As Group CEO, how
do you perceive this situation? Also, PBR is at 0.7 times. Is this the correct evaluation? How ismanagement thinking to improve from 0.7 times? Also, how are management discussing thestock price situation?

A(Kusumi) Actually, the stock price is not even flat. This time last year, it was around 1,800 yen.
Yesterday's closing price was around 1,300 yen. PBR is at a low 0.7 times, even considering theincrease in capital. I feel a sense of crisis that investors are not satisfied with our results. Looking
at the Group's businesses, we have yet to show results. One is in terms of profit level. Amongthe three businesses that we have identified as growth areas, we are unable to reach the
expected profit levels with automotive batteries and A2W, while Blue Yonder is still in theinvestment stage for growth. Another is in terms of synergies among businesses. This is notabout one common synergy across the Group, but we can aim for synergy from the customer
perspective and from the technology perspective. Especially in terms of top line and profits,
synergy from the customer perspective should be effective in the short term. However, we havenot been able to demonstrate such synergy.
We are discussing at the holdings level to respond to this situation as follows:
In the past, a hurdle rate of 5% OPM was set for business with low profitability. However, rather
functioning as a hurdle rate, the outcome was a sense of security if a certain business reached5%, lacking a sense of crisis. There was not enough execution against the hurdle rates.
Therefore, it is now necessary to take decisive measures. At the Group Strategy Briefing, I
mentioned ROIC-based discipline, as our firm determination of execution.

1Based on this, I discuss with operating companies, and as a director of each operating company,
I convey the message: if a certain business is at low profitability, the reason should be analyzed
at first. Is it due to structural inferiority compared to competitors or is it due to the business
management’s quality and competence? If it is a structural reason, we have no choice but to takeinorganic measures. In other words, do we make up for the shortcomings by ourselves, find abest owner who can, or terminate that business? If the issue stems from management, we will
make a swift change. This is the policy each operating company should follow: analyze thereason and quickly take measures.
2

Q

Since becoming Group CEO, what have you achieved or did not achieve, other thanmanagement figures. Please also provide the reason.

A(Kusumi) In terms of achievements, we transitioned to the operating company system, and the
management team at each operating company can address their own business and customers inearnest. They have shown higher motivation, as intended under the new system, since each
operating company or business division knows best about their business environment andcustomers. In terms of external environment, there was considerable supply chain disruption
after COVID-19. In this situation, I had many opportunities to work together with Toyota for 3
years, prior to becoming Group CEO. I learned from their capability at the frontlines. People atthe frontline operations make daily improvements. I believe this type of culture also existed at
Matsushita Electric Industrial and Matsushita Electric Works, probably 30 to 40 years ago. Today
there is a big difference. Employees are making products according to rules or going with theflow. The holding company has been supporting the frontlines to set up systems and ways toimprove their operations. This reform is making progress, and figures show that lead time isshortened, and we have achieved cost reduction. There is still room for improvement, but we areseeing progress at many operational sites. As an outcome, we expect to reach the medium-termtarget of operating cash flow, despite operating profit is to fall quite short.
In terms of what not achieved, I intended to create a healthy sense of crisis, instead of feelingsafe by reaching 5% OPM. In this sense, we are still half-way, and execution was not enough. In
terms of operational reform, we are seeing results. However, when compared with ourcompetitors, it is not yet sufficient. An example is modernizing the PSI process. Even today,
there are cases where employees manually write demand forecasts on Excel spreadsheets. The
effort to modernize these processes through DX is still half-way.
The third is about the attitude of each employee. Our aim is to have all employees to take on thechallenge to make improvements on a daily basis, instead of simply following instructions.
However, in reality, there are still many who carry out their work according to detailed
instructions by their superiors and set procedures. It is not progressing as expected. As we
introduced the operating company system, while it was necessary to delegate responsibility toeach operating company, we may have lacked rigorousness for businesses not making reform
quickly enough.
As I mentioned earlier, there is a deeply ingrained misconception that the 5% OPM is the only
thing that matters. After I announced that we would focus on competitiveness enhancement for
the first 2 years, in the second year, I realized that we do not have enough sense of crisis infalling behind our competitor. In other words, we need to exert more spirit of dedication to win thecompetition, while maintaining fairness and honesty. I have tried to be patient, prioritizing
autonomous responsible management. Under our management philosophy, it is stated to“entrust work to your subordinates but continue to watch closely.” Now, we must raise the level ofthe “watch closely” part.

3

Q

A question for Mr. Waniko. Regarding the improvement of operating cash flow, since becoming
the holding company structure, there have been various announcements, such as being able tosave cash through procurement. Are there any effects of operational reform that we should beaware of?

A

(Waniko) It would be inventory. Under Group CEO's instructions, we have been optimizing
inventories, such as improvement of lead time and supply chain. We are starting to see it iscontributing to overall cash, in terms of working capital as well.

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Q

This may sound rude, but what do you think is missing in your management since you took officeas CEO of Panasonic Holdings? How are you making up for it?

A(Kusumi) I come from an engineering background, and through my tenure as various businessdivision directors, there were many businesses that involved structural reform. I was involved in
the TV business and white goods withdrawal from Europe. When I was younger, I used to be
involved in new things. However, in terms of managing each business as a holding company,and delegating authority, there are things that require support from my team. In this sense, there
is criticism that there have not been many changes in the executive officers, but they havesupplemented what is missing from me, and my former superiors do not hesitate to offer me
advice. It has been about three years, and the learning phase is coming to an end. It is all about
working as a team. For example, when it comes to inorganic measures, CSO Sumida has
extensive experience. I worked with her for the first time through the JV with Toyota of prismatic
automotive battery business. She offered considerable help to me. Anticipating that similar cases
would be necessary, I appointed her as CSO. The best way to make up for the shortcomings is
to receive support.

Q

What recently surprised me is Mr. Kinoshita being appointed as the new Group CHRO. He
worked at GE, more recently at Mercari. Why is it Mr. Kinoshita? Also, what is his role in thegroup and his role in relation to the operating companies from the group's perspective? You
mentioned the importance of principles. What do you expect from his implementation ofprinciples?

A(Kusumi) The issue is to have each employee take on the challenge of daily improvement andreform, instead of simply following instructions. In terms of the management philosophy andbasic business philosophy established by our founder Konosuke Matsushita, this is to implement"employee entrepreneurship." This idea is represented by the expression "autonomous
responsible management," but it is not happening today. This was the situation from the time I
took office as Group CEO, and before that when I was at Automotive, and I tried to change that.
When I joined the company, the culture used to be closer to that of what was intended by thefounder. However, things have changed. There were difficult times in management, and facing
adversity through business, new rules and processes turned out to bind employees. With thissituation continuing for 20 to 30 years, even the executives are brought up in such a situation.
There are not many people even in the human resources function who understand the necessarycommunication to make people take on challenges, and what is hindering them. We needed toinvite a CHRO capable of this. On the other hand, in terms of thoroughly implementing our basic
business philosophy, we can learn from companies outside Japan.
Mr. Tatsuo Kinoshita has experience at GE and has accomplished principle-based HR overseas
in a conglomerate like GE. I found him very enthusiastic, and moreover, he has a strong sense ofjustice and is unbiased. I expect he can adapt well with us. His expected role is to change whatneeds to be changed. To return to a principle-based company, we must change, and he will leadthe change. At the Panasonic Group, each operating company implements its own HR policies
and the CHRO for each operating company is appointed by the Group CHRO. This is not to saythat we are going to change the system directly, but we need to go beyond simply advising themthat we should change the system because there is something wrong with it. We must actually
see what has been changed. I have high expectations that he will exert his full potential.

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7

Q

Is there a time frame?

A(Kusumi) It will probably take two to three years to make a complete change. However, if theholding company and PEX will take the initiative in making changes, it could happen earlier.

Q

I would like to ask about WACC and ROIC, which were discussed at the Group Strategy Briefing.
From the market’s perspective, to see the benchmarks is very positive. On the other hand, there
are views that the timing may be late. How is it different by business? The target is WACC +3%
points, but there are businesses reaching that target and some falling short. Could you explain in
more detail?

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A

(Kusumi) You might wonder why ROIC now. Actually, we have included "operating cash flow"and "ROIC" in the current Medium-term strategy. ROIC is one of the evaluation items of theheads of operating companies’ short-term performance incentives. There are some businessdivisions with ROIC below WACC. For this year’s strategy briefing, I have committed that we will
reduce the number of businesses with ROIC below WACC to zero by the end of FY3/27, except
those that are in the investment phase. There are already some businesses with ROIC of about
20%. On the other hand, such businesses could be in a situation of underinvestment. We will
monitor the situation by business. There should be no business having ROIC below WACC. In
order to reduce the number of such businesses to zero, around the end of FY3/26, we need to
identify which businesses are expected to meet the criteria and set the direction.
The reason why it takes time is that if a certain business is at low profitability due to the lack ofoperational capability caused by underinvestment, such as continuing to use low-productivity
facilities, they should be normalized by making investments. Assuming this will take about 2
years, we have set the timeline of end FY3/27, to reach zero businesses with ROIC below
WACC. For businesses that are above, we will decide by each case; should they be raised
higher, or make investments for further growth, even if the figure would be low temporarily. The
difference in WACC among each business is around 4.5% to 7%. We need to consider the risinginterest rates. Based on our simulation at the end of FY3/24, by operating company, businesses
with WACC +3% points were around 9% to 10% in terms of ROIC.

Q

Which businesses have reached WACC +3% points, which have not, and which are below
WACC?

A

(Kusumi) Out of 30-some businesses, currently 8 are below WACC and showing negative
growth, excluding those in the investment phase. In addition, 3 businesses are below the WACC
+3% points target. If a business’ ROIC for the past year does not reach WACC +3% points, theoperating company should closely monitor the situation. If the situation continues for 1 year, theholding company will monitor it as well.

Q

I understand the timeframe to be the current fiscal year and next fiscal year. Does this mean thatin the subsequent fiscal year, you will make decisions and be ready to take action?

A(Kusumi) We have to do so.

Q

Here are some questions related to Connect. "The strategy of your software business isincredibly confusing. Do you want to run these yourself as a strategic pillar, or do you want to
IPO/sell these?” “You are paying a high multiple of sales for One Network Enterprises at around10 times. What synergy effects do you calculate to justify this and are we now at a point when we
can look forward to predominantly organic growth from this business?” “Will you spend moremoney on M&A in the software business?”
For the third question, please answer from the perspective of Director of Panasonic Connect.

A(Kusumi) When Mr. Higuchi proposed to acquire Blue Yonder, I understood that increasing therecurring ratio would be very significant in terms of our profit structure. The scale is not large yet.
We are in the phase of gaining competitiveness by making necessary investments. As of today,
creating synergies is not yet a big business for Connect, but one of our expected strengths isconnecting sensing at the frontlines with Blue Yonder. Blue Yonder can provide feedback toplanning systems. As an example of generating such synergies, we have delivered warehousesolutions. We are also working with Rapyuta Robotics to apply Blue Yonder's warehousemanagement to automated warehouses. These are the things we intended to expand.
Another is to connect the supply chain planning system, multi-tier. It is very effective to plan bycollecting data not only with one’s own PSI, but also based on the situation of suppliers. This is
the same story as Lifestyle, where they halved inventory by planning production in line withdemand monitoring distribution inventory. In other words, multi-tier planning of the supply chain
is very effective if properly carried out and if conducted at a deeper layer. I believe One Network
is essential, and through this acquisition, our business can be differentiated and offer a uniquesolution.
The idea of listing this business does not mean that we want to get rid of this business. There are
2 reasons. One is the necessity of M&A, which requires cash from the capital market. Another is4

to reward employees in this type of industry with stock compensation as an incentive. These are
the aims of potential listing. Rather than recouping our investment with Blue Yonder's profits, we
can accelerate recovery through listing. The holding company is working together with Connect
to raise its value.
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12

Q

The next question: "In the past, you mentioned there were other restructuring projects besides
Automotive. Are these still ongoing?" Even if they are, I assume you cannot comment on thedetails.

A(Kusumi) I can only answer that we are conducting various studies. We can communicate only
after sufficient preparation, otherwise the impact on various stakeholders will be significant.
In the case of Automotive, we made the announcement after carefully explaining to ourcustomers in advance. I would like to ask for your understanding of these aspects.

Q

The next question is about reducing the number of business with issues to zero by the end of
FY3/27. "The number may increase due to changes in the external environment. If we don't
speed up at some point, as Tsuga-san said before, there is a risk of falling into a whack-a-molesituation. Can you speed up the process?"A(Kusumi)Should there be a situation that a certain business, which was expected to meet the standards atthe end of FY3/26, turns out to be below WACC for just one year due to sudden changes in thebusiness environment, what would happen? Sumida-san will explain.
(Sumida)The point is, will such a situation continue? Various things can happen to businesses, so we will
not judge everything digitally. Setting a deadline, we will monitor such signs in advance, and thenproceed with discussions with each business while having a second plan.
(Kusumi) We are aiming for WACC +3% points. Thus, being below WACC is far from our target.

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Q

The questioner's intention was, the time frame toward FY3/27 may be too late. It is
understandable that it takes time, but are there ways to make it a little faster?

A(Kusumi) To turnaround businesses, since each business has its own issue, one solution cannot
solve all. Including myself, we all want to achieve over 3% points. My position is to invest inoperating companies, using the cash provided by the capital market, so my objective is toachieve the turnaround as soon as possible. Therefore, we need to come up with the bestsolution for each business. It could be a replacement of the head of the business. For example,
we announced the appointment of a new President of HVAC, effective July.
For the case of air quality and air-conditioning, it took too much time identifying the issues forroom type and commercial air-conditioners and coming up with the right solution. As we cannot
continue with this situation, we decided to replace the president. There are different cases: theissue with management, missing pieces, or the issue of underinvestment, etc. The holding
company will monitor and identify the issue which the business division director or even theoperating company president cannot come up with solutions and accelerate the necessary
measures. In some cases, our advice could successfully make them take measures, if not, I
need to assign someone else.

Q

Changing management is one of the most effective remedies.

A(Kusumi) I mentioned this case as an example.

Q

Next, let's talk about batteries. From your perspective, the slowdown in EV growth is not asurprise. The good thing is that you focus on the US, decided on the Kansas factory early, so
there is little possibility of missing the IRA tax credit. Also, you are funding within your group, andsince it is not a JV, you can make decisions quickly. In this regard, compared to other companies
such as Korean companies, you made the right choice as a result. However, the market does
agree with you entirely. They complain that Panasonic is not investing enough, and they also

5complain if Panasonic invests, then the demand falls. You should effectively explain this to themarket. While there is no point in discussing “what if” the US administration changes, but since
the profit target includes IRA, I would like to ask why and how Panasonic includes IRA tax credit
as a base case.

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A

(Kusumi)Internally, we always monitor its performance excluding IRA. During the investment phase of
Kansas, which continues until FY3/28, the double-digit ROIC includes IRA. In other words, we
can expect to benefit from IRA until then. Beyond that, the situation is uncertain, such as runningout of budget, or being affected by the outcome of the presidential election in the US. In any
case, we will monitor excluding IRA.
The current situation of low profitability of the In-vehicle battery business, is caused by thesudden decrease in demand for 1865 cells designated for certain car models, produced in
Suminoe, Japan. I regret that we could not take measures earlier.

Q

I understand that ROIC includes IRA until the next medium-term plan and assume it could
disappear after that. For the automotive battery business overall, already reaching double-digit
ROIC for Nevada, you will steadily increase productivity and I assume you can reach ROIC of
20%. The Kansas factory aims to achieve ROIC of 10% in 3 years, earlier than the Nevada
factory, which took 5 years. You will improve productivity for that purpose. I understand that therest will depend on recipes. As for the Japan factory, the demand for certain car models has
decreased considerably, and it is unlikely that the number will increase from now. Will thecompany proceed shifting to Japanese car manufacturers?

A(Kusumi) It will take some time, so we will firmly implement such measures, anticipating demand
to recover after FY3/27 or beyond. Meanwhile, we will firmly control fixed costs.

Q

My image is that the Nevada factory will raise ROIC from over 15% to around 20%, and theKansas factory will have a negative effect on profits in the next fiscal year and the following fiscal
year, but it will become double-digit in the third year.

A(Kusumi) We aim for double digits for Panasonic Energy as a whole.

Q

When will the Kansas factory achieve double-digit ROIC?

A(Kusumi) It took 5 years for the Nevada factory to reach double-digit ROIC. For the Kansas
factory, we aim for 3 years, 2 years earlier than Nevada.
For the Suminoe factory, we will reduce fixed costs this fiscal year and also next fiscal year byshifting resources to the ramp up of the Kansas factory, and to the improvement of Nevada
factory. Then, we will move on to the ramp up of Wakayama factory. In this way, we will control
fixed costs. Instead of hiring new employees, we will manage by shifting our personnel. Thus we
expect a recovery in FY3/27.

Q

We can see great potential in the businesses related to AI data centers: Capacitors, multi-layer
circuit board materials (MEGTRON) for servers in Industry, also, energy storage systems.

A(Kusumi) Servers for generative AI consumes a large amount of electricity. The back up power
supply also expected to require larger scale compared to conventional servers.
However, in terms of volume, EVs are much larger in terms of overall volume.

Q

Next, we have a question about financial policy. "I have the impression that it will take several
years for the business to recover. Omron introduced DOE into its dividend policy. Could
Panasonic consider adopting a policy of not cutting its dividend for long-term investors?"A(Waniko) We do not expect that right away. However, we understand the shareholders’ concernsof dividend fluctuations. Our dividend policy states the target dividend payout ratio of
approximately 30%, and stable dividends. We also discuss this matter internally and areconscious of it. We cannot fully commit that we will continue to increase dividends, but I would
like to ask for your understanding that we are very conscious about this. We are quite serious not
to reduce dividends.

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Q

The A2W business is facing many challenges, but you are trying to strengthen the businessmaking additional investments in terms of B2B sales channels and products. How does theholding company regard this business? The impression the investors have is that demand will hit
bottom this year at the earliest and will finally turnaround the year after next. From Mr. Kusumi's
point of view, could you tell us the reason why Panasonic misjudged the situation of thisbusiness, and how you evaluate the turnaround measures?

A(Kusumi) Although there are external factors, such as the suspended subsidies and thestabilization of gas prices, shifting production from Malaysia to the Czech Republic is areasonable decision, and we should make necessary investments. However, when I visited ourCzech factory, I realized there is still room for improvement in terms of manufacturing, and I
addressed this matter in a firm manner. I also emphasized that there might be a sense of
security that a product would sell successfully upon its launch.
Today, the point is, why we are unable to gain market share in large markets such as France andGermany, rather than how demand will recover. I analyzed the situation was lacking measures toincrease sales. We need to consider in what ways installers will select us, or what sales routes
will lead to higher market share. We need to correct the situation before increasing scale,otherwise we will lose when the scale has increased.

Q

One of the major roles of Panasonic Holdings Corporation is to discuss and make judgments
about geopolitical risks and to advise operating companies. For example, does the board discuss
the business environment?

A(Kusumi) The biggest issue is the US-China decoupling. We have thriving businesses in the US
such as Hussmann, Avionics, and battery business in Nevada. On the other hand, we operate
different businesses in China. Mr. Homma, who represents the Panasonic Group in China hasconnections with the Chinese government. He has considerable knowledge of China, and his
insights are discussed by the board of directors of Panasonic Holdings. For operating companies
facing risks, I ask him to lead the discussion at the operating company’s board of directors
meeting.

Q

Apart from the situations in the US and China, are there any issues in Europe due to slightly
different issues by country? For example, difference in financial resources for heat pumpsubsidies?

A(Kusumi) That may be true. In Europe, our issue is how to address the markets, rather thanfacing geopolitical risks. I regret to say we may be lacking in insight of the market situation.

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Disclaimer Regarding Forward-looking Statements
This document includes forward-looking statements about Panasonic Holdings Corporation (the"Company") and its Group companies (the "Panasonic Group"). To the extent that statements in thisdocument do not relate to historical or current facts, they constitute forward-looking statements.
These forward-looking statements are based on the current assumptions and beliefs of thePanasonic Group in light of the information currently available to it, and involve known and unknown
risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause thePanasonic Group's actual results, performance, achievements or financial position to be materiallydifferent from any future results, performance, achievements or financial position expressed or
implied by these forward-looking statements. The Company undertakes no obligation to publicly
update any forward-looking statements after the date of this document. Investors are advised toconsult any further disclosures by the Company in its subsequent filings under the Financial
Instrument and Exchange Act of Japan (the "FIEA") and other publicly disclosed documents.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic
conditions, particularly consumer spending and demands for corporate capital expenditures in the
major markets including, but not limited to, the Americas, Europe, Japan, China and other Asian
countries as well as changes of demands for a wide range of electronic products & parts from theindustrial world and consumers in various regional markets; excessive currency rate fluctuations of
the U.S. dollar, the euro, the Chinese yuan and other currencies against the yen having an impact on
costs and prices of the Panasonic Group’s products & services as well as certain other transactions
that are denominated in these foreign currencies; increased costs of or limitations on raising funds,
because of changes in the fund raising environment including interest rate fluctuations; current or
future political or social trends in and outside Japan or changes in rules & regulations of international
trade, commerce, R&Ds, production or sales having impact on the Panasonic Group or the businessactivities in its supply chain; introduction or enhancement of rules & regulations or abolition or
reduction of tax benefit or subsidy related mainly to the environment issues including the climatechange as well as to responsible supply chain (in terms of human rights, labor, health & safety global
environmental conservation, information security, business ethics and others); increased costs
resulting from a leakage of customers’ or confidential information from IT systems of the PanasonicGroup or its supply chain or business suspension caused by unauthorized access, cyberattacks or
any other form of malicious, actions on the IT systems or from vulnerability of network-connected
products; failure to secure or retain enough workforces to execute its business strategy; failure toretain its competitiveness in a wide range of products & services or in major countries & regions;failure to produce expected results in alliances with other companies or M&A (mergers &acquisitions) activities; failure to produce expected results in current or future business
transformations of the Panasonic Group; occurrence or lengthening of disruptions in its supply chain
or logistics for or price hikes in parts & materials; downward price pressure or decrease in demands
for the products at a level that can be offset with efforts by the Company; failure to respond to futurechanges in the market needs with technological innovations or to timely utilize new technologies
such as AI (Artificial Intelligence); increased costs or losses caused by occurrence of events such ascompliance violations (including those related human rights or labor issues) or serious health &safety accidents in workplaces; increased costs or losses resulting from any defects or quality frauds
in products or services of the Panasonic Group; infringement by third parties of intellectual property
owned by the Panasonic Group or restrictions on the use of intellectual property owned by third
parties; administrative/criminal penalties or compensations/damages claims resulting from violationsof laws and regulations; large-scale natural disasters, global pandemics of infectious diseases,
terrorism or wars; fluctuations in market prices of securities and other financial assets in which thePanasonic Group has holdings, excessive fluctuations of valuation of non-financial assets, including
property, plant and equipment, goodwill and deferred tax assets, or changes or tightening ofaccounting policies or rules; The factors listed above are not all-inclusive and further information iscontained in the most recent English translated version of the Company’s securities reports under
the FIEA and any other documents which are disclosed on its website.

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