July 31, 2019
Panasonic Corporation

Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “Fiscal 2020” or “FY20” refers to the year ending March 31, 2020.

FY20 1Q Financial Results• Sales decreased due mainly to impact of lower sales in China• Overall operating profit decreased due to lower sales in China mainly at IndustrialSolutions, increased development expenses at Automotive Solutions, sluggish TV sales,in addition to impact of gains from sale of land in previous year, despite steady housingrelated business in Japan(yen: billions)

FY20 1Q

FY19 1Q

vs. FY19 / Difference

1,891.1

2,008.7-6%(-5%)*-117.6

56.4

100.0

-44%

-43.6

Other income/loss**

-6.0

18.4

--24.4Non-operating income/loss

-0.2

2.2

--2.4

Profit before income taxes

56.2

102.2

-45%

-46.0

49.8

57.4

-13%

-7.6

1 US dollar

110 yen109 yen

1 Euro123 yen

130 yen1 Renminbi

16.1 yenincome/loss = Other income (expenses) +17.1 yen ** Other
Share of profit investments accounted for using the equity method

Sales
Operating profit

Net profit

attributable to Panasonic
Corporation stockholders

Exchangerates

Fiscal 2020 First Quarter Financial Results

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

*In real terms excluding the effect of exchange rates

1

Sales & Operating Profit Analysis
Sales

Major increase/decrease factors
ISCNS

AM

APLS(yen: billions)• Sales and profit decreased due tolower sales in China (weakeningmarket conditions, etc.)• Sales increased due to growth inAutomotive Batteries, but profit
decreased due to increased
development expenses, mainly forthe existing issues with AutomotiveSolutions in Europe

2,008.7 -44.5

IS-19.1+21.0

CNSAM-36.8
+17.7

AP*

(Production &sales
consolidated)LS

1,891.1
Eliminations &adjustments, etc.*-117.6

FY19 1Q• Sales and profit decreased due tosluggish TV sales, mainly in Europe,
despite steady air-conditioner sales,
and consumer electronics sales inJapan-55.9

FY20 1Q

Operating profit(yen: billions)

100.0

-9.1

Impact of gains from sale ofland in previous year, etc.

-7.7

IS-8.1
+11.7

-10.0

CNSAM

• Sales and profit increased withsteady housing-related business inJapan+4.0-24.4

Eliminations &adjustments, etc.*

AP*56.4

LS(Production &salesconsolidated)

Profit generated from business: -19.2

Note: Names of each Segment are as follows
IS: Industrial Solutions, CNS: Connected Solutions
AM: Automotive, AP: Appliances, LS: Life Solutions

Otherincome/loss-43.6

FY19 1Q

FY20 1Q* Difference between “AP (Production & sales consolidated)” and“Segment information” is adjusted by “Eliminations & adjustments, etc.”

2Fiscal 2020 First Quarter Financial Results

FY20 1Q Results by Segment(yen: billions)

Sales

vs. FY19

In real terms
excl. effect ofexchange rates

Operatingprofit

vs. FY19

Otherincome/loss vs. FY19Appliances

689.0

-4%

-3%

30.0-9.1

-0.5

+0.3

Life Solutions

462.1

+4%

+5%

12.7

+12.8

0.3

+1.1

Connected Solutions

255.2

-7%

-6%

13.7

-8.7

-0.5

-1.0

Automotive

377.4

+6%

+7%

-10.0

-8.5

-0.2

-0.4

Industrial Solutions

327.1

-12%

-10%

5.2

-11.6

-1.6

-2.5

Other58.5

-18%

ー1.5

+1.4

0.4

+0.8

Eliminations and adjustments-278.2ーー3.3

-19.9

-3.9

-22.7

Total

1,891.1-6%-5%

56.4

-43.6

-6.0

-24.4

704.6

-5%

-4%

28.0

-9.8

-0.6

+0.2

Appliances (productionand sales consolidated)

Fiscal 2020 First Quarter Financial Results

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

3

Appliances

Segment Information(Production and sales consolidated)

Sales

Overview

Heating andCoolingSolutions• Sales of room air-conditioners increased taking
opportunity of higher demand by good weather in
Asia where we have been strengthening thebusiness, and stable sales in Japan and Europe• Sales of large-scale air-conditioners increased
mainly in Japan, China and EuropeHomeAppliances• Same level as previous year due to sluggishsales in China with weak market conditions andin Asia, despite higher Japanese sales (e.g.
washing machines)

Smart Life
Network• Decreased due to sluggish TV sales: OLEDs inEurope, where we are shifting to high valueadded products, and entry models in Asia, wherewe were unable to cope with price declines.
Digital cameras were also sluggish mainly inEurope

Commercial
Refrigeration &Food Equipment• Decreased overall due to sluggish sales forlarge-scale stores and display showcases inJapan, despite stable sales continuing in NorthAmerica(yen: billions)vs. FY19/Difference

FY20 1Q
Sales

704.6

-5％
(-4%)*

OP

28.0(4.0%)

-9.8

-0.6

+0.2

Otherincome/loss* In real terms excluding the effect of exchange rates

Sales analysis(yen: billions)Home
Appliances

741.4
Heating andCoolingSolutions

Commercial
Refrigeration &Food Equipment

Smart Life
Network

704.6
Devices,
Others
Effect ofexchangerates

FY19 1Q

FY20 1Q

Operating profit• Achieved profit increase in Japan consumer electronics byincreased air-conditioner and washing machine sales, andrecovering profitability of refrigerators• Decreased overseas due to lower TV sales mainly in Europe, anddeteriorating profitability by price declines, despite expanded airconditioner sales in Asia

4Fiscal 2020 First Quarter Financial Results

Segment Information

Life Solutions
Sales

Overview(yen: billions)vs. FY19/Difference

FY20 1Q
Sales

462.1

+4％
(+5%)*

OP

12.7(2.7%)

+12.8

0.3

+1.1

Other
income/loss

Lighting

Decreased due to impact of lower sales inJapan, China, Europe, and U.S., despite
stable sales for Indonesia

EnergySystems

Increased driven by stable sales of highperformance home-use distribution panelboards and wiring devices in Japan, andgrowing overseas sales mainly in India

Panasonic
Ecology
Systems

Increased with steady orders and sales oflarge-scale projects in engineering businesses,
despite sluggish sales in China

Housing
Systems

Increased driven by favorable sales of newmodels for water-related products and building
materials, as well as drainpipes and roofing
materials

PanasonicHomes

Increased mainly by new construction ordersand increased sales in remodeling businesses

OthersIncreased favorably with prime contractor
business for home building* In real terms excluding the effect of exchange rates

Sales analysis

PanasonicHomes(yen: billions)

EnergySystems

444.4

Lighting

Housing
Systems

Effect ofexchange
rates

462.1

OthersPanasonicEcology
Systems(PES)

Operating profit
Increased due to sales increase in Energy Systems, Housing
Systems, and Panasonic Homes as well as streamlining
initiatives

FY19 1Q

FY20 1Q
Fiscal 2020 First Quarter Financial Results

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

5

Segment Information

Connected SolutionsSales

Overview(yen: billions)

Decreased by lower sales of IFEC** hardware
mainly from reduced investment by certain airline
companies

Process
Automation

Decreased significantly with postponed investment
associated with weak Chinese market conditions
and reduced investment by automotive component
manufacturers following decreased new car sales
in China and Europe, etc.

vs. FY19/Difference

FY20 1Q
Sales

255.2

-7％
(-6%)*

OP

13.7(5.4%)-8.7

Other
income/loss

Avionics

-0.5

-1.0

Decreased due to lower sales of projectors inEurope and impact of previous year's large-scale
MediaEntertainment orders for entertainment park project in North
America* In real terms excluding the effect of exchange rates

Sales analysis(yen: billions)

MobileSolutions

Maintained same level as previous year due tostable PC sales for Japanese and North Americanmarkets

PSSJ***

Increased due mainly to replacement demand withend of Windows 7 support, and Olympic-related
project orders

274.3
MediaEntertainment

Avionics

Process
Automation

Effect ofexchangerates

PSSJ

OthersMobileSolutions

255.2** IFEC (Inflight entertainment + connectivity)*** Panasonic System Solutions Japan Co., Ltd.

Operating profit
Decreased due to significant impact of lower sales inProcess Automation and Avionics, despite increased profit in
PC business

FY19 1Q

FY20 1Q

6Fiscal 2020 First Quarter Financial Results

Segment Information

AutomotiveSales

Overview(yen: billions)
FY20 1Q

vs. FY19/
Difference

Sales

377.4

+6％(+7%)*

OP

-10.0
(-2.7%)

-8.5

-0.2

-0.4

Other
income/loss* In real terms excluding the effect of exchange rates

Sales analysis(yen: billions)

Effect ofexchange
Automotive Others
rates

Batteries[Prismatic]
Increased with investment effect for production
expansion at Dalian factory
AutomotiveBatteries[Cylindrical]
Significantly increased with investment effect forproduction expansion at North America factory

Operating profit
377.4

356.4
AutomotiveSolutions

FY19 1Q

Decreased overall; expansion of growth-expected
Automotive products (e.g. IVI**) could not offset the impact oflower sales from deteriorating Chinese market
Solutionssituation and product cycle trend** IVI (In-Vehicle Infotainment)◇ Automotive Solutions
Decreased due to overall development expenses peaking in
FY20, along with increased development expenses related toissues in Europe, although in line with forecast as of thebeginning of FY20
◇ Automotive Batteries
Same as last year’s level overall due to decreased sales ofcylindrical types from Japan factory, despite increased sales ofprismatic types, and cylindrical types from North America
factory

FY20 1Q
Fiscal 2020 First Quarter Financial Results

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

Grouping of Businesses whose sales are disclosed[Automotive Solutions] Automotive Infotainment Systems, HMI Systems,
Automotive Systems, Ficosa[Automotive Batteries] Automotive Energy, Tesla Energy

7Segment Information

Industrial Solutions

Overview

Sales(yen: billions)vs. FY19/Difference

FY20 1Q
Sales

327.1

-12％
(-10%)*

OP

5.2(1.6%)

-11.6

-1.6

-2.5

Otherincome/loss

Decreased overall by significant impact ofdeteriorated Chinese market conditions such as
trade friction between U.S. and China

ISSystems

Decreased due to decreased sales of portable
rechargeable batteries by strategically shifting ourapplications to industrial-related areas, leading toreduced ICT-usage sales. Sales of motors andsensors were also sluggish due to weak capital
investment demand in line with deteriorated Chinese
market conditions

Devices

Decreased due to reduced production of dataservers in Chinese and Taiwanese markets andreduced sales of automotive components (e.g.
capacitors and resistors) due to deteriorated
overseas automobile market, despite steady sales ofmulti-layer printed circuit board materials for 5G
infrastructure* In real terms excluding the effect of exchange rates

Sales analysis(yen: billions)
371.6
Systems

Devices327.1
Others** Effect ofexchangerates

Operating profit
Decreased due to lower sales of motors, sensors, capacitors,etc., despite efforts in fixed-cost reduction and raw material
rationalization
Grouping of businesses whose sales are disclosed

FY19 1Q

FY20 1Q** Includes sales of semiconductor, LCD, other Divisional Company products, eliminations and others[Systems] Electromechanical Control, Industrial Device, Energy Solutions[Devices] Device Solutions, Energy Device, Electronic Materials

8Fiscal 2020 First Quarter Financial Results

Business Portfolio Reform Progress (2019)

ImprovecompetitivenessthroughCo-creation

Agreement with Toyota Motor Corporation to establish a joint venture related toautomotive prismatic battery business (Announced on January 22）• Investment to increase production toward future business expansion conducted as planned(JV scheduled to be established by end of 2020)

Agreement with Toyota Motor Corporation to establish a joint venture related totown development (Announced on May 9)• JV scheduled to be established in January 2020

Transfer part of discrete semiconductor business (Announced on April 23)• Completion scheduled for December 2019

Optimize development & production capability of solar business
Improve
profitability(Announced on May 9)• Reorganization scheduled for November 2019

Radical measures for low-profitable and unprofitable businesses• Narrowing down region and businesses for consumer electronics(e.g. initiation of structural reform of TV)• Strengthening profit structure for semiconductor (e.g. contract renewal)
●●●

●●●

Further promotion of business portfolio reform
Fiscal 2020 First Quarter Financial Results

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

9

Disclaimer Regarding Forward-Looking Statements
This presentation includes forward-looking about Panasonic and its Group companies (the Panasonic Group). To the extent thatstatements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. These forwardlooking statements are based on the current assumptions and beliefs of the Panasonic 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 materially different from any future results,performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes noobligation to publicly update any forward-looking statements after the date of this presentation. Investors are advised to consult any further
disclosures by Panasonic in its subsequent filings under the Financial Instrument and Exchange Act of Japan (the FIEA) and other publiclydisclosed documents.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer
spending and corporate capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand forelectronic equipment and components from business and industrial customers, as well as consumers in many product and geographicalmarkets; the possibility that excessive currency rate fluctuations of the U.S. dollar, the euro, the Chinese yuan and other currencies
against the yen may adversely affect costs and prices of Panasonic’s products and services and certain other transactions that aredenominated in these foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because ofchanges in the fund raising environment; the possibility of the Panasonic Group not being able to respond to rapid technological changes
and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive interms of both price and technology; the possibility of not achieving expected results or incurring unexpected losses in connection with thealliances or mergers and acquisitions; the possibility of not being able to achieve its business objectives through joint ventures and othercollaborative agreements with other companies, including due to the pressure of price reduction exceeding that which can be achieved by
its effort and decrease in demand for products from business partners which Panasonic highly depends on in BtoB business areas; thepossibility of the Panasonic Group not being able to maintain competitive strength in many product and geographical areas; the possibilityof incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Groupmay face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by othercountries over trade, manufacturing, labor and operations; restrictions, costs or legal liability relating to laws and regulations or failures ininternal controls; fluctuations in market prices of securities and other financial assets in which the Panasonic Group has holdings orchanges in valuation of non-financial assets, including property, plant and equipment, goodwill and deferred tax assets; future changes orrevisions to accounting policies or accounting rules; the possibility of incurring expenses resulting from a leakage of customers’ or
confidential information from Panasonic Group systems due to unauthorized access or a detection of vulnerability of network-connected
products of the Panasonic Group; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout theworld, disruption of supply chain and other events that may negatively impact business activities of the Panasonic Group. The factors
listed above are not all-inclusive and further information is contained in the most recent English translated version of Panasonic’s
securities reports under the FIEA and any other documents which are disclosed on its website.

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

(Reference) Operating Profit Analysis(yen: billions)

100.0

-14.5
Fixed cost(Automotive Batteries)

+1.7

-1.3
Sales
increase/decrease(excluding effect ofexchange rates)

Fixed cost
(Others)

Other
income/loss

-4.5

-0.6

-24.4

Effect ofPrice decline, exchange
rationalization,
rates
product mix,
etc.

56.4

Impact of gains fromsale of land inprevious year, etc.

FY19 1Q-43.6

FY20 1Q

12

Fiscal 2020 First Quarter Financial Results(Reference) FY20 1Q Operating Profit & Net Profit(yen: billions)

FY20 1Q

FY19 1Q

vs FY19 1Q

Operating profit

56.4

100.0

-43.6

Non-operating income/loss-0.2

2.2-2.4Profit before income taxes

56.2

102.2

-46.0

Income taxes

-2.4

-40.7

+38.3

Net profit

53.8

61.5

-7.7

Net profit attributable to Panasonic
Corporation stockholders

49.8

57.4

-7.6

Net profit attributable to non-controllinginterests

4.0

4.1

-0.1

Fiscal 2020 First Quarter Financial Results

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

13

(Reference) List of Businesses whose sales are disclosed in FY20
Businesses

Appliances(AP)• Heating and Cooling Solutions• Home Appliances• Smart Life Network• Commercial Refrigeration &Food Equipment

Major Business Divisions: Heating and Cooling Solutions BD: Kitchen Appliances BD, Laundry Systems and Vacuum Cleaner BD,Beauty and Personal Care BD: Smart Life Network BD: Cold Chain BD, Hussmann Corporation

Life Solutions(LS)•••••LightingEnergy Systems
Panasonic Ecology Systems
Housing Systems
Panasonic Homes: Lighting BD: Energy Systems BD: Panasonic Ecology Systems Co., Ltd.
: Housing Systems BD: Panasonic Homes Co., Ltd.

ConnectedSolutions
(CNS)

•••
•
•

Avionics
Process Automation
Media Entertainment
Mobile Solutions
PSSJ: Panasonic Avionics Corporation, Avionics BU: Process Automation BD: Media Entertainment BD: Mobile Solutions BD: Panasonic System Solutions Japan Co., Ltd.

Automotive(AM)• Automotive Solutions: Automotive Infotainment Systems BD, HMI Systems BD,
Automotive Systems BD, Ficosa International, S.A.

• Automotive Batteries: Automotive Energy BD, Tesla Energy BD

IndustrialSolutions(IS)• Systems: Electromechanical Control BD, Industrial Device BD,
Energy Solutions BD• Devices: Device Solutions BD, Energy Device BD, Electronic Materials BD

Note: Sales and profit of China & Northeast Asia Company are mainly included in AP and LS segments. Sales and profit of US Company are mainly included in AP and AM segments.

Fiscal 2020 First Quarter Financial Results

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

14