 This presentation gives Panasonic’s consolidated financial
results for the second quarter of fiscal 2019 (FY19) ended
September 30, 2018.

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 This shows the summary of the financial results for the second
quarter and the full-year forecast for FY19.
 Overall sales for the second quarter increased, driven mainly
by Energy and Automotive.
 Operating profit decreased due to the impact of one-off patent
income recorded in the previous year, ramp-up expenses at
the automotive battery factories, a weakening demand forcapital investment related to Industrial in China, as well as
sluggish sales of consumer electronics.
 For the full-year forecast, segment forecasts have beenrevised; however, Company-wide sales, operating profit, andnet profit forecasts are unchanged.

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1 First, I will give a summary of the financial results for thesecond quarter of FY19.

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2 This table shows the consolidated financial results for thesecond quarter of FY19.
 Sales increased by 6.9 billion yen to 1,999.5 billion yen.
 Operating profit decreased by 17.5 billion yen to 95.2 billion
yen, and net profit decreased by 13.9 billion yen to 56.2 billion
yen.

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3 This graph shows our analysis of sales by Businesses whose
sales are disclosed.
 In the second quarter, we can see the impact of patent income
recorded in the previous year.
 Energy and Automotive continued having significant increases
in sales.
 AVC decreased due to sluggish TV sales in Europe.
Industrial decreased due to the impact from a slowdown indemand for capital investment in China.
 Overall sales increased by 1% in real terms, excluding theeffect of exchange rates.
 Total sales of the four Divisional Companies, excluding factors
such as one-off income in the previous year, increased by 4%
and continued on a growth path.

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4 Next, let’s look at year-on-year changes in operating profit.
 Profit from sales expansion increased by 16.1 billion yen
due to the increased sales by businesses, even when
considering the impact from one-off patent income in theprevious year.
 Fixed costs increased by 19.3 billion yen, due mainly toincreased development expenses and expansion of theautomotive battery business.
 Losses related to price hikes in materials and price decline
pushed down profit by 26.1 billion yen.
 Meanwhile, other income/loss improved by 13.2 billion yen
due mainly to reduced business restructuring expenses.
 Consequently, overall operating profit decreased by 17.5 billion
yen to 95.2 billion yen.

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5 This shows our analysis of year-on-year changes in operating
profit by Businesses whose sales are disclosed.
 Process Automation and Commercial Refrigeration & Food
Equipment increased due to stable sales.
 On the other hand, Energy decreased due to ramp-up
expenses for the automotive battery factories;
Automotive decreased due to increased development
expenses; Industrial decreased due to decreased sales inElectromechanical Control.

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6 Next, let’s look at the results by segment.
I will explain the details from the next slide.

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7 First, let me touch on the results for Appliances, based on
consolidated production and sales.
 Sales decreased by 1% in real terms, excluding the effect of
exchange rates.
 In Air-Conditioner and Small & Built-in Appliance, sales
increased.
 In Major Appliance, sales increased due to large sales
expansion in washing machines, despite decreased sales ofrefrigerators.
 In Commercial Refrigeration & Food Equipment, sales increased
due to stable sales in North America.
 On the other hand, in AVC, sales decreased due mainly tosluggish performance of TV in Europe and India.
 Overall operating profit decreased. This is due to losses from thesales decline in refrigerators and the impact of hikes in material
prices, such as resin, which could not be offset by sales
increases from air conditioners, washing machines andCommercial Refrigeration & Food Equipment.
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8 Next, let’s look at Eco Solutions.
 Sales increased by 6% from the previous year in real terms,
excluding the effect of exchange rates.
 In Energy Systems, sales of overseas construction materials
increased in key regions such as India.
 Sales in Panasonic Ecology Systems increased due to largescale orders being received, and sales in Panasonic Homes
increased due to stable results obtained in the ready-built
housing business.
 As for operating profit, despite the sales decline in Housing
Systems and price hikes in raw materials, overall profit
increased due to increased sales mainly from overseas
construction materials and Panasonic Homes, as well as arebound from temporary expenses recorded in the previous
year.

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9 Next, let’s look at Connected Solutions.
 Sales decreased by 2% from the previous year in real terms,
excluding the effect of exchange rates.
 In Process Automation, favorable sales continued in mounting
machines and welding equipment for the automotive industry.
 In Panasonic System Solutions Japan, sales increased due tosales growths for public services and local governments.
 On the other hand, sales decreased in Avionics, and also inMedia Entertainment whose business was affected by natural
disasters.
 Operating profit increased due to increased sales mainly inProcess Automation and improved product mix in MediaEntertainment, in addition to a rebound from temporary
expenses in the previous year in Avionics.

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10 Finally, let’s look at Automotive & Industrial Systems.
 Sales increased by 7% from the previous year in real terms,
excluding the effect of exchange rates.
 Although sales in Industrial decreased, sales in Automotiveand Energy were favorable and overall sales increased.
 Operating profit decreased due mainly to increased
automotive-related expenses and the impact of the sales
decline in Electromechanical Control.

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11 This slide shows results by Businesses whose sales aredisclosed.
 In Automotive, favorable performance continued with
infotainment systems for Japanese and North American car
manufactures and ADAS- and electrification-related equipment.
However, operating profit decreased, due mainly to increased
costs such as development expenses.
 In Energy, sales increased due to significant growth inautomotive batteries, mainly cylindrical types, along with stableperformance in storage battery systems. Operating profit
decreased, due mainly to ramp-up expenses for the automotive
battery factories.
 In Industrial, sales decreased due to the significant decrease inElectromechanical Control resulting from a slowdown in demandfor capital investment in China. An increase in operating profit
was secured due to increased sales of passive components
such as capacitors in Device Solutions and improvement fromother income/loss, despite sales decrease in ElectromechanicalControl.
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12 Now, I will explain the FY19 full-year forecast.

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13 Forecasts for Company-wide sales, operating profit, and net
profit are unchanged from the initial forecast. However, otherincome/loss, used in the breakdown of operating profit, as well
as forecasts by segment have been revised.

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14 This table shows the details of revised figures in each segment.
 Both sales and operating profit are revised downward in
Appliances and Eco Solutions, which were expecting sales andprofit increases in the initial forecast.
 In Automotive & Industrial Systems, sales are revised upward
and profit is revised downward. However, these three Divisional
Companies are expected to secure sales and profit increases
from the previous year.
 On the other hand, in Connected Solutions, which made aforecast of a decrease in sales and profit at the beginning of
the fiscal year, both sales and profit are revised upward.
 In addition, for eliminations and adjustments, factors such as
the impact of gains from the sale of land, income from
intellectual property, and partial revision of pension schemes
have been taken into account.
 Forecasts by segment have been revised, however, Companywide forecasts are unchanged from the initial forecast.
 Next, I will explain the details for the three Divisional
Companies, which revised their operating profit downward.
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15 Firstly, Appliances.
 Both sales and operating profit are revised downward.
 Our forecast reflects such factors as the struggles faced byair-conditioners in Asia, refrigerators in Japan, and the overall
AVC Business, mainly TVs, in addition to the negative impact of
exchange rates in emerging countries and costs of materials
such as resin remaining high.
 Going forward, we will take the following countermeasures:for Air-Conditioner, we will enhance our competitiveness bystrengthening our sales structure to specialize in air-conditioners;
for refrigerators, we will launch new large-capacity models, which
are less affected by our competitors’ price-driven approach; andfor TV, we will accelerate our shift to premium products.
 Moreover, we expect to secure a full-year operating profit at thesame level as the previous year with thorough fixed-cost
reduction and rationalization, particularly during the second half.
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16 Next, let me talk about Eco Solutions.
 We expect sales and profit growth from last year.
 However, sales are revised downward from the initial forecast
due to weak performance in both Housing Systems in Japanand new construction orders for Panasonic Homes.
 Operating profit is also revised downward. Efforts to improve
fixed costs were unable to offset impacts including sales
decline and a weakened product mix.
 Toward improving marginal profit, which is one of ourchallenges, we will make the following efforts:for Housing Systems, we will expand sales of new products inthe mid- to high-end segment and revise the prices of building
materials; for Panasonic Homes, we will seek increasedorders for new construction.

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17 Finally, let’s look at Automotive & Industrial Systems.
 This segment is expected to achieve overall sales and profit
growth from last year. Taking the current market environmentand business conditions into consideration, the sales forecast
is revised upward while the operating profit forecast is revised
downward.
 For Automotive and Energy, sales are revised upward andoperating profit is revised downward.
 For Industrial, both sales and operating profit are revised
downward, in line with business conditions in China, where thesentiment for capital investment is weakening.

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18 This slide shows the revised forecast for Automotive.
 Automotive Infotainment Systems is performing favorably inJapan and the U.S., but it is sluggish in Europe and China. In
addition, development expenses and fixed costs are increasing.
Other factors, such as U.S. tariff risks, are also considered in therevised forecast of operating profit.
 A challenge for Automotive Infotainment Systems is to manage
development processes, in particular, the ability to control
development expenses in the Europe region.
 The countermeasure to this challenge is to strengthen our
initiatives to improve profitability by optimizing our global
development management structure and accelerating thecommon use of platforms.
 Let me add that last year’s manufacturing operations-related
issues in Automotive Infotainment Systems have been settled.

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19 In Energy, both sales and operating profit are expected to
exceed last year’s figures; however, the operating profit forecast
for the full year is revised downward.
 This is due to additional expenses in line with the rapid ramp-up
at the automotive battery factory in North America, as well as
operational loss due to temporary inefficiencies resulting fromrapid expansion of production.
 Taking these issues into consideration, we will promptly takeaction to maintain stable production operations at the battery
factory in North America.
 By the end of the current fiscal year, we will reach production
capacity equivalent to 35 GWh at the North America factory.
From the second half onward, we will aim to steadily reap the
benefits of sales expansion.
 In addition, we will further promote material rationalization and
fixed-cost reduction to achieve growth with profitability.
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20 This is the explanation of the results for the second quarter andfull-year forecast for FY19.
 Environmental changes from the beginning of this term and thebusiness outlook have been reflected in each segment’s
forecast.
 To achieve these revised forecasts, we will take the following
initiatives during the second half:
for the consumer electronics and housing businesses,
fixed-cost reduction and rationalization will be promoted;
for Automotive Infotainment Systems, the management
structure for development will be strengthened;
for automotive batteries, initiatives toward stabilizing operations
will be enhanced.
 In addition, aiming for sustainable growth, we will enhance andmaintain our competitiveness, as well as adjust to changes inthe business environment. We will also continue to executebusiness strategies based on a mid- to long-term perspective.
 Thank you very much for your continuous support andunderstanding.
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