Fiscal 2018 Management Policy
May 11, 2017
Panasonic Corporation
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “Fiscal 2017" or "FY17" refers to the year ended March 31, 2017.
In addition, “Fiscal 2018” or “FY18” refer to the year ending March 31, 2018.

FY17 Sales Growth (in Real Terms )Assured response toward achieving “both sales and profit growth”
FY19
FY16
FY15

Operating Profit

*FY18

FY14

FY17
Sales decline &profits growth

Sales in real terms (from FY13)(excluding the effect of exchange rates)

1Fiscal 2018 Management Policy

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Sales & profits
growthFY13*Fiscal years before FY16: Operating profit based on US GAAP
Fiscal years after FY17: Adjusted operating profit based on IFRSManagement Policy by Business Characteristics
Business
Characteristics

Business area

High-growthbusiness

Leading future sales and profit growth throughwell-focused large scale investments and groupmanagement resources

Stable-growthbusiness

Steady profit generation by competitive advantage
and creating investment resource for high-growthbusiness

White goods,
Avionics,
Wiring devices

Low-profitablebusiness

Improving profitability by thorough initiatives
including business transformation, fixed cost
reduction and rationalization

Semiconductors,
LCD panels,
Solar panels

2

Automotive batteries,
Next-gen cockpit
systems, ADAS,
Air-conditioners

Fiscal 2018 Management Policy

FY18 Sales Growth Driven by High-Growth Businesses
Sales

Trend in Sales*Real terms excluding the effect of exchange rates

7,800 billion yen in FY18(e)Lowprofitable

Highgrowth

Stable-growth
FY17

FY18(e)High-growthbusiness

3

Fiscal 2018 Management Policy

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FY17

FY18(e)Stable-growthbusiness

FY17

FY18(e)Low-profitablebusiness

FY18 Profit Growth through Sales Expansion
Operating Profit

Trends in Operating Profit* IFRS / Real terms excluding the effect of exchange rates**Excluding reversal of temporary allowance for lawsuit

335 billion yen in FY18(e)Low-profitable

Highgrowth

Stable-growth
FY17

FY17

FY18(e)High-growthbusiness

4FY18(e)Stable-growthbusiness

FY18(e)

FY17

Low-profitablebusiness

Fiscal 2018 Management Policy

High-growthbusiness

Steady Progress in Automotive BusinessSupport automotive industry with Panasonic group-wide advantage
Digital consumer electronics
Over 60 years inAutomotive business＋BatteryAiming at 2 trillion yen sales in FY19
through large scale CAPEX and entering growth phase

Device<Sales>2.0

Delivery for large projects will commence in FY18
Next-gen cockpits, IVI （In-vehicle-infotainment）, automotive batteries
Delivery case: Display/HUD(Head-up Display) for JLR “Range Rover Velar”

Photo credit JAGUAR LAND ROVER LIMITED

1.3

FY17

FY18(e)FY19(e)(Yen: trillions)5Fiscal 2018 Management Policy

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High-growthbusiness

1 Trillion Yen Strategic Investment

Pursue well-focused investments in high-growth business
Large scale capital expenditure

1 trillion yenApprox.
80%

Decision madeAuto

Auto

Secondary batteries(North America)

Secondary batteries(China)M&A

Approx.
40%

Auto

B2B

Completed6

Fiscal 2018 Management Policy

Stable-growthBusiness

Establish Direction of Consumer Electronics

Expand premium white goods and transform business localization“Selection and concentration”
in business and region<Sales by region><Sales by product type>

Speedy global management initiatives

IntegrateR&D, manufacturing and sales
Asia/China

FY13AVWhiteGoods

日本

Japan

Delegate business management
to each region

EuropeAmericas

FY17

AV

Asia/ChinaWhitegoods

日本
Japan

Promote localization in India,
by following steps in China and Asia
Panasonic India Appliance Company(est. in April ‘17)
AP China （est. in April ‘15)

EuropeAmericas*White goods include air-conditioners, refrigerators, washing machines, cooking appliances, beauty products
AV products include TVs, audios, digital still cameras, cell phones, etc.

7Fiscal 2018 Management Policy

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AP Asia (est. in April ‘15)

Low-profitable
Business

Profitability Improvement
Tighten rein and undertake issues

Semiconductor

LCD panel

Solar***- Expected to turn in black around in FY20 by transforming to automotiveand industrial application and executing further rationalization- Terminated LCD for TV production during 1 st half of FY17
- Expected to turn into black in FY20 by focusing on automotive andindustrial applications where Panasonic take its advantage- Agreed with Tesla for business collaboration and long term contract inDecember 2016, to globally expand its solar business* PSCS: Panasonic Semiconductor Solutions, Co., Ltd.
** PLD: Panasonic Liquid Display Co., Ltd.

8Fiscal 2018 Management Policy

FY19 Group Financial Target*<OP toward FY19>(Yen: billions)<FY19 Financial Target>

450.0

335.0

450.0 billion yen

OP276.8

Net Profit
108 yen/USD

110 yen/USD

110 yen/USD 115 yen/USD

FY17FY18(e)FY19(e)9Fiscal 2018 Management Policy

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**≧250.0 billion yen*Assumption FX rate: per 1USD=115 yen**Net profit attributable to Panasonic Corporation stockholders / IFRSDisclaimer Regarding Forward-Looking Statements
This presentation includes forward-looking statements (that include those within the meaning of Section 27A of the U.S. Securities Act of 1933, asamended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended) about Panasonic and its Group companies (th e PanasonicGroup). To the extent that statements in this presentation 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 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 fa ctors 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 no obligation to publicly
update any forward-looking statements after the date of this presentation. Furthermore, figures in the presentation, at the time of the disclosure,are under the audit procedure based on Financial Instruments and Exchange Act. Investors are advised to consult any further disclosures byPanasonic in its subsequent filings under the Financial Instrument and Exchange Act of Japan (the FIEA) and other publicly di sclosed documents.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particula rly consumer spending
and corporate capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment
and components from business and industrial customers, as well as consumers in many product and geographical markets; the pos sibility 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 are denominated in these foreign currenci es; the possibility of
the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the poss ibility of thePanasonic Group not being able to respond to rapid technological changes and changing consumer preferences with timely and co st-effective
introductions of new products in markets that are highly competitive in terms of both price and technology; the possibility o f not achieving expected
results or incurring unexpected losses in connection with the alliances or mergers and acquisitions; the possibility of not b eing able to achieve its
business objectives through joint ventures and other collaborative agreements with other companies, including due to the pres sure of pricereduction 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; the possibility of the Panasonic Group not being able to maintain competitive strength in many product andgeographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility
that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct a nd indirect restrictions
imposed by other countries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and o ther financial assets inwhich the Panasonic Group has holdings or changes in valuation of non-financial assets, including property, plant and equipment, goodwill anddeferred tax assets; future changes or revisions to accounting policies or accounting rules; the possibility of incurring exp enses resulting from aleakage 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 the world, disruption of supply chain and other events that may negatively impact business activities of the Panas onic 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) 2017 Panasonic Corporation All Rights Reserved.

FY18 Business Areas by Business Characteristics
High-growthbusiness

Stable-growthbusiness

Low-profitablebusiness

12

Automotive Batteries, Next-generation Cockpit Systems,ADAS (Advanced Driver Assistance Systems), Air-conditioners,
Electromechanical Control Devices
White Goods, Small Appliances, Commercial Refrigeration & Food Equipment,
Wiring Devices, Lighting Equipment, Remodeling, Age-free (elderly-care), Avionics,
Process Automation, Surveillance System, Electric Materials, Dry Batteries, etc.

TVs, Fixed-line Phones / FAX, Building Products, Solar Systems,
Ruggedized PCs, Semiconductor, LCD (Liquid Crystal Display) panels, etc.

Fiscal 2018 Management Policy

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