Fiscal 2016 Financial Result
Fiscal 2017 Financial Forecast
April 28, 2016
Panasonic Corporation
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “fiscal 2016” or “FY2016” refers to the year ended March 31, 2016.
In addition, “fiscal 2017” or “FY17” refers to the year ending March 31, 2017.

Summary
FY16 Financial result (US GAAP)Sales decreased due to downsizing businesses such as TV and slow demand in solar
panel and ICT* related businesses. Profit increased due to improving profit structure.

In particular, appliance and Vertical Solution business contributed to company-wide
profit expansion.

FY17 Financial forecast (IFRS)

Lay foundation for future growth.

Proactively implement upfront investment in high-growth businesses with projected
fixed cost increase.
* ICT stands for information and communications technology

2

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

Contents

1. FY16 Financial Result
2. FY17 Financial Forecast

3

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

FY16 Financial Result
FY16(US GAAP)

vs. FY15%/amount(as of Feb. 3, 2016)

Sales

7,553.7

7,715.0-2%(-4%)*

Operating profit

415.7(5.5%)

381.9(5.0%)

+9%

+33.8

410.0
(5.4%)

Non-operating income/loss-198.7-199.4-+0.7-130.0Pre-tax income

217.0

182.5

+19%

+34.5

280.0

Net income**

193.3

179.5

+8%

+13.8

180.0

ROE

11.0%

10.6%

-

+0.4%

Exchange
rate

4

FY15
(US GAAP)(yen: billions)
FY16
Forecast-161.37,550.0

1 USD

120 yen

110 yen* Real terms excluding exchange rate effect (unaudited)

1 EUR

133 yen139 yen** Net income attributable to Panasonic Corporation

1 Renminbi

18.9 yen

17.7 yen

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY16 Sales Analysis by Region(yen: billions)

FY15

7,715.0

Exchange rate effect+119.2

Japan

-90.2

Americas-47.5Europe

+8.4

Asia

-12.0

China

-139.2FY16
57,553.7

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

FY16 Operating Profit Analysis(yen: billions)

FY15

381.9

Sales increase/decrease
Exchange rate effect
Fixed cost reduction
Streamlining/price decline/
business structure change

6

-47.0
-15.0

+33.8

+23.3
＋58.0

Business withdrawal/scale-down

+14.5

FY16

415.7

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY16 Pre-Tax and Net Income Analysis(yen: billions)

FY16

vs. FY15

Operating profit

415.7

+33.8

Non-operating income/loss*-198.7+0.7

Pre-tax income

217.0

+34.5

Provision for income taxes

14.5

+16.5

Equity in earnings of associated companies

12.6

+0.7

Net income

215.1

+18.7

Less net income attributable tononcontrolling interests

21.8

+4.9

Net income**

193.3

+13.8

-65.8

+29.1

* Detail of non-operating income/loss
Business restructuring expenses** Net income attributable to Panasonic Corporation

7

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

FY16 FCF and Net Cash(yen: billions)

FY16

FCF
* Figure excludes strategic investment.

Cash Conversion Cycle(CCC)

Net Cash(End of fiscal year)

8

FY15

vs. FY15

124.4（222.9）*353.5-229.130 days

36 days-6 days

293.8

331.5

-37.7

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY16 Result by Segment(yen: billions)
FY16 (US GAAP)
Sales

vs. FY15

OP

vs. FY15

Appliances

2,269.4

-3%

72.2

+22.4

Eco Solutions

1,610.8

-3%

78.4

-16.9

AVC Networks

1,169.8

+1%

74.7

+22.9

Automotive & Industrial Systems

2,708.6

-3%

102.7

-13.7

Other

661.4

-13%

16.1

+1.5

Eliminations and adjustments-866.3

-

71.6

+17.6

Consolidated total

7,553.7

-2%

415.7

+33.8

2,504.8

-2%

67.8

+16.9

Appliances(production and sales consolidated)** Appliances (production and sales consolidated) includes sales and profits of sales division for consumer products which are included in Eliminations and adjustments.

9

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

FY16 Sales and OP Analysis by Segment
7,715.0

FY15
-47.7

381.9
Appliances*(production and sales consolidated)+16.9

Eco Solutions-16.9

AVC Networks

+22.9

-55.2
+15.5

FY16

(yen: billions)<OP><Sales>-88.2

Automotive &Industrial Systems+14.3

Other/Eliminations
and adjustments*

7,553.7

-13.7
+24.6

415.7

* Difference between Appliances (production and sales consolidated) and Appliances is adjusted in Other/eliminations and adjustments.

10

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY16 Sales and OP in Six Large-scale and TV BDs(yen: billions)
FY16
Sales

vs. FY15

OP

vs. FY15

Air-conditioner*

465.6

+1%

18.3

+2.4

Lighting

320.3

+1%

20.3

+5.4

Housing Systems

353.6

-4%

14.0

+2.8

Automotive Infotainment Systems

534.1

+/-0%

17.2

-3.2

Rechargeable Battery**

352.8

-7%

0.1

-7.3

PanaHome

353.0

+8%

15.9

+3.1

Total

2,379.4

+/-0%

85.8

+3.2

TV*

350.8

-22%

1.3

+16.2

* Production and sales consolidated** Rechargeable Battery BD + Tesla BU

11

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Contents

1. FY16 Financial Result
2. FY17 Financial Forecast

12

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

IFRS Voluntary Adoption<Schedule>

13

Adopted accounting
standard

Financial period

Materials to disclose

FY17
Q1, Q2 and Q3- Quarterly financial result- Quarterly report

US GAAPFY17year end- Financial result- Financial documents under
the Companies Act- Annual securities report

IFRS

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

FY17 Financial Forecast (IFRS)(yen: billions)
FY17(e)(IFRS)

vs. FY16*%/amount

7,600.0+/-0%(+3%)**-26.3

7,500.0

Adjusted operating profit***

385.0

-7%

-28.2

-

Other income/loss

-75.0

-

+107.9-Operating profit

310.0

+35%

+79.7

375.0

Non-operating income/loss

-10.0

-

-8.0

-105.0Pre-tax income

300.0

+31%

+71.7

270.0

Net income****

145.0

-9%

-14.6

135.0

Sales

FCF (excl. strategic investment)
Exchange
rate

14<reference>
FY17(e)(US GAAP)

More than 150.0

1 USD

115 yen

1 EUR

125 yen1 Renminbi

17.6 yen* FY16 figures are based on IFRS (unaudited)** Real terms excluding exchange rate effect*** Adjusted operating profit=sales-cost of sales-SG&A**** Net income attributable to owners of parent company

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY17 Operating Profit Analysis(yen: billions)

FY16

230.3

Newly consolidated/business transfers

+10.0
+22.0

Sales increase/decrease
Streamlining/price decline/
business structure change+22.0

Exchange rate effect-17.0

Adjusted OP
vs. FY16
-28.2

-65.2

Fixed cost increase+107.9Other income/loss

FY17(e)310.0* FY16 figures are unaudited.

15

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

FY17 Segment Forecast (IFRS)(yen: billions)
FY17(e) (IFRS)
Sales
vs. FY16

AdjustedOP

vs. FY16

Other
income/loss

OPvs. FY16

vs. FY16

Appliances

2,370.0

+91.2

106.4

+25.0

-9.4

+12.4

97.0

+37.4

Eco Solutions

1,640.0

+47.3

95.8

+7.9

-5.8

+5.8

90.0

+13.7

AVC Networks

1,175.0

+2.3

74.5

-8.1

-15.5

-1.9

59.0

-10.0

Automotive & Industrial
Systems

2,640.0

-67.3

117.0

-18.2

-17.0

+68.0

100.0

+49.8

Other

690.0

+42.9

14.0

-2.2

-9.0

-6.9

5.0

-9.1

Eliminations andadjustments-915.0-142.7

-22.7

-32.6

-18.3

+30.5

-41.0

-2.1

Consolidated total

7,600.0

-26.3

385.0

-28.2

-75.0

+107.9

310.0

+79.7

Appliances (production and

2,600.0

+94.3

109.4

+33.1

-9.4

+12.3

100.0

+45.4

sales consolidated)* FY16 figures are based on IFRS (unaudited)16

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

By Segment

Appliances (Production and sales consolidated) (1)<Sales and OP>(yen: billions)

Sales

Adjusted
OP<Sales analysis>
FY16

OP

FY17(e)2,600.0

109.4
4.2%

100.0
3.8%

vs. FY16%/amount+4%(+7%)*

+33.1
＋1.2%

+45.4
+1.7%

Major ApplianceAV* Real terms excluding effect of exchange rate

Devices and others<Business environment>
Japan

-

Asia

-

Consumer electronics market in Vietnam and thePhilippines is expected to continue to expand.

-Market for major appliance business is expected tobe soften due to less demand.
Inventory of air-conditioners is expected to becontinuously adjusted.
Small appliance is expected to be driven by
e-commerce market.

-

China

-

17

Consumer electronics market is expected to continue
to grow moderately.
Consumer sentiment toward energy-efficient andhigh-end products is expected to be strong.

2,505.7

Air-Conditioner
Commercial Refrigeration& Food Equipment
Small & Built-in Appliance

FX rate effectFY172,600.0<Adjusted OP analysis>--

Adjusted OP in air-conditioner business is expected to expand
due to sales increase and improvement of profit structure.
Adjusted OP is expected to increase due to marketing
focusing on high-end consumer products in Japan, Asia andChina.
Newly-consolidated Hussmann Corp. will contribute toadjusted OP increase.

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

By Segment

Appliances (Production and sales consolidated) (2)<Forecast by BD><Sales analysis>
FY16[Room air-conditioner]- Japan/Asia: shift focus to high-end products.
- China: re-establish brand strategy focusing on healthproducts.
[Commercial air-conditioner]- Overseas sales are expected double digit growth,shifting resources.

Air-Conditioner
Commercial Refrigeration&Food Equipment
Small & Built-in Appliance

Commercial
Refrigeration& FoodEquipment- Create synergy with consolidation of Hussmann Corp.
- OP is expected to increase by strengthening dispenser
business for beverage industry.

Devices and others

Small &
Built-inAppliance- Continue to capture domestic demand from overseas
tourists and utilize e-commerce to meet demand in China.
- Overseas sales are expected to increase mainly inEurope.

Major
Appliance- Sales are expected to expand with high-end products andstrong product lineup in prioritized areas such as Japan,
Asia and China.
確認中AV- Shift focus more to high-end products with 4KTV mainly
in Japan and Europe.

AirConditioner

182,505.7

Major ApplianceAV

FX rate effect

FY17<FY17 Sales ratio by BD>
AirConditioner
Commercial Refrigeration& Food Equipment

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

2,600.0* BD stands for Business Division

Major

AV

OthersSmall & Built-in ApplianceEco Solutions (1)By Segment<Sales and OP>(yen: billions)

Sales

Adjusted
OP<Sales analysis>
FY16

OP

FY17(e)1,640.0

95.8
5.8%

90.0
5.5%

vs. FY16%/amount+3%(+4%)*

+7.9
+0.3%

+13.7
+0.7%

* Real terms excluding effect of exchange rate

<Business environment>

1,592.7

Lighting
Energy Systems
Housing Systems
Panasonic Ecology Systems
Co., Ltd.
OthersFX rate effect

FY17(e)-In Japan, demand in remodeling and elderly-care market is
expected to grow, although domestic housing starts
expected to decline.

-

Domestic non-housing demand is expected steadily
expanding due mainly to the Olympic Games in Tokyo.

-

Overseas business in strategic regions and North America is
expected to grow.

19

1,640.0<Adjusted OP analysis>
Adjusted OP is expected to increase due to sales expansion
and streamlining, offsetting negative impact from fixed cost
increase in upfront investment for business expansion(including personnel cost) in remodeling and elderly-carebusinesses.

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

By Segment

Eco Solutions (2)<Forecast by BD>
Lighting<Sales analysis>
FY16- Sales are expected to continue to expand indomestic business and overseas LED lighting
business.

EnergySystems[Solar panel business]- Increase solar panel market share in Japan despiteslight market decline.
- Expand overseas business mainly in India andTurkey.

Housing
Systems- Increase market share in remodeling market.
- Sales are expected to increase due to new
business development such as non-housing andelderly-care businesses.

Panasonic
Ecology
Systems Co.,Ltd.

- Sales are expected to grow in domestic ventilation
system business and overseas business in air
purifiers and pumps.

Others- Sales are expected to expand such as in elderlycare business.

1,592.7

Lighting
Energy Systems
Housing Systems
Panasonic Ecology Systems
Co., Ltd.
OthersFX rate effect

FY17(e)1,640.0<FY17 Sales ratio by BD>
Lighting

EnergySystems

Housing
Systems

OthersPanasonic Ecology
Systems Co., Ltd.

20

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

AVC Networks (1)By Segment<Sales and OP>(yen: billions)

Sales

Adjusted
OP<Sales analysis>OP

FY17(e)1,175.0

74.5
6.3%

59.0
5.0%

vs. FY16%/amount+/-0%(+4%)*

-8.1
-0.7%

-10.0
-0.9%

* Real terms excluding effect of exchange rate

FY16

1,172.7

Mobility
Visual and Imaging
Communication
Solutions
Others<Business environment>

FX rate effectMobility- Demand in durable mobile devices is expected
to increase particularly in tablet PCs.

Visual andImaging- High value added product market such as 4K
products is expected to steadily expand.

Communication- Demand in land-line phones is expected tosteadily increase in office application anddecrease in household application.

Solutions- Aircraft related market is expected to expand.
- IoT related investment in service industry is
expected to increase.

21

FY17(e)1,175.0<Adjusted OP analysis>
Adjusted OP is expected to decline y-y due mainly to Solutions
business where one-time demand increase in FY16 was seen
and upfront investment to strengthen global business structure;
while adjusted OP in Mobility, Visual and Imaging andCommunication businesses is expected to increase with sales
expansion.

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

By Segment

AVC Networks (2)<Forecast by BD>

Mobility<Sales analysis>
FY16- Sales are expected to expand in durable mobile
devices for mobile workers in distribution, police,
utility (electricity, gas) industries.

1,172.7

Mobility
Visual and Imaging- Sales are expected to increase with high quality
imaging and high value added products mainly in 4K
products, such as projectors, digital cameras,broadcasting cameras and surveillance cameras.

Communication

Communication- Sales are expected to increase in IP-PBXs, IP phones
for mid and small offices where demand is relatively
heavy.

FX rate effect

Solutions- Aircraft related sales are expected to remain thesame level as FY16 due to one-time demand increase
in FY16, while business is expected to expand insuch as construction, support and service areas,
strengthening relationship with major customers inservice industry.

Visual andImaging

Solutions
Others

FY17(e)1,175.0<FY17 Sales ratio by BD>

Mobility

Visual andImaging

Solutions
Communication

22

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

OthersAutomotive & Industrial Systems (1)By Segment<Sales and OP>(yen: billions)

Adjusted
OP

Sales<Sales analysis>
FY16

OP

FY17(e)2,640.0

117.0
4.4%

100.0
3.8%

vs. FY16%/amount-2%(+2%)*

-18.2
-0.6%

+49.8
+1.9%

* Real terms excluding effect of exchange rate

2,707.3

Automotive
EnergyIndustrial
Factory Solutions
Others<Business environment>
Automotive- Growing demand for ADAS and tighter
environmental regulation are expected to boost
business opportunity.

Industrial- FA: Increasing needs for IoT and automation is
expected to expand market.
- Storage battery: Demand for infrastructure is
expected to expand in emerging countries.

ICT

23

- ICT device market is expected to remain slow.
(Application for PCs: lower growth than FY16
smartphones: soften growth)

FX rate effect

FY17(e)2,640.0<Adjusted OP analysis>
Adjusted OP is expected to decrease due to investment
increase for future growth such as automotive and industrial
businesses, although sales increase mainly in Energy businessis expected to contribute to profit increase.

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

By Segment

Automotive & Industrial Systems (2)<Forecast by BD>

Automotive- Sales are expected to decrease due to curbing toreceive orders in 2011 and 2012 to prioritize BCP(business continuity plan) establishment as adisaster countermeasure.
- Sales are expected to expand from FY18 due tostarting delivery for new major customers.

Energy- Sales are expected to increase due to rechargeable
battery business accelerating focus shift toautomotive and storage battery applications.

Industrial- Sales are expected to decrease due to sluggish
demand for ICT and downsizing of LCD TV panel
business, while sales for automotive and industrial
businesses such as relays and multi-layer devices
are expected to increase.

Factory
Solutions- Sales are expected to increase due to solution
business expansion for system, support and service
industries.

<Sales analysis>
FY16

2,707.3

Automotive
EnergyIndustrial
Factory Solutions
OthersFX rate effect

FY17(e)2,640.0<FY17 Sales ratio by BD>

Automotive

EnergyIndustrial

Others
Factory Solutions

24

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY17 Forecast in Six Large-Scale and TV BDs(yen: billions)
FY17(e) (IFRS)
Sales

vs. FY16

AdjustedOP

vs. FY16

Other
income/loss

vs. FY16

OP

vs. FY16

Air-conditioner*

504.6

+39.3

29.7

+10.6

-2.2

+0.9

27.5

+11.5

Lighting

338.8

+18.5

25.2

+2.7

-0.9

+8.6

24.3

+11.3

Housing Systems

370.0

+2.9

17.0

+1.7

-0.6

+1.0

16.4

+2.7

Automotive Infotainment
Systems

506.1

-28.0

25.6

-8.0

-0.1

-0.5

25.5

-8.5

Rechargeable Battery**

366.8

+14.0

10.2

+6.7

-6.7

+59.9

3.5

+66.6

PanaHome***

400.0

+47.0

-

-

-

-

21.5

+5.6

TV*

325.8

-24.9

5.3

+3.5

-2.2

+8.3

3.1

+11.8

* Production and sales consolidated** Rechargeable Battery BD + Tesla BU*** Figures are disclosed from PanaHome (Japan GAAP)

25

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Improve Low Profitability Business
FY17
Adjusted OP（vs. FY16)

26

High-growthbusiness

Concentrate resources
Lead company-wide sales andprofit growth

Stable growthbusiness

Stably expand sales and profit

Low
profitability
business

Pursue higher profitability

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY19 Group Financial Target
US GAAPIFRS(announced on March 31, 2016)

OP

500 bil. yen

450 bil. yen

Net income*≧250 bil. yen≧250 bil. yen* Net income attributable to Panasonic Corporation (US GAAP)Net income attributable to owners of the parent company (IFRS)

27

Fiscal 2016 Financial Result／Fiscal 2017 Financial Forecast

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

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, as amended, andSection 21E of the U.S. Securities Exchange Act of 1934), as amended about Panasonic and its Group companies (the Panasonic Group). Panasonic discloses
its consolidated financial forecasts for fiscal 2017 based on International Financial Reporting Standards (IFRS). 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. Suchrisks, uncertainties and other factors may cause the Panasonic 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 byPanasonic 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 corporate
capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components frombusiness and industrial customers, as well as consumers in many product and geographical markets; 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 andcertain other transactions that are denominated in these foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds,
because of changes in the fund raising environment; the possibility of the Panasonic Group not being able to respond to rapid technological changes andchanging consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in terms of both price andtechnology; the possibility of not achieving expected results or incurring unexpected losses in connection with the alliances or mergers and acquisitions; thepossibility of not being able to achieve its business objectives through joint ventures and other collaborative agreements with other companies, including due tothe pressure of price reduction exceeding that which can be achieved by its effort and decrease in demand for products from business partners which Panasonichighly 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 thePanasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by othercountries over trade, manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Panasonic Group has holdings
or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, deferred tax assets and uncertain tax positions; futurechanges or revisions to accounting policies or accounting rules; the possibility of incurring expenses resulting from a leakage of customers’ or confidential
information from Panasonic’s systems due to unauthorized access or a detection of vulnerability of network-connected products of the Panasonic Group; as wellas 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 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.
In order to be consistent with generally accepted financial reporting practices in Japan, operating profit (loss) is presented in accordance with generally
accepted accounting principles in Japan. The company believes that this is useful to investors in comparing the company's financial results with those of otherJapanese companies. Under United States generally accepted accounting principles, expenses associated with the implementation of early retirement programs
at certain domestic and overseas companies, and impairment losses on long-lived assets are usually included as part of operating profit (loss) in the statement ofincome.

(Reference)

Segments and Business Divisions

Appliances

AVC Networks

Automotive & Industrial Systems

Air-Conditioner Company
TV BD
Home Entertainment BD
Refrigerator BD
Laundry Systems and Vacuum Cleaner BD
Kitchen Appliances BD
Beauty and Living BD
Panasonic Cycle Technology Co., Ltd.
Refrigeration and Air-Conditioning Devices BD
Smart Energy System BD
Cold Chain BD
Hussmann Corporation

Imaging Network BD
Storage BD
Visual Systems BD
Panasonic Avionics Corporation
IT Products BD
Security Systems BD
Communication Products BD
Office Products BD
System Solutions Company (Japan)

Automotive Infotainment Systems BD
Automotive Electronics Systems BD
Rechargeable Battery BD
Energy Device BD
Panasonic Storage Battery Co., Ltd.
Electromechanical Control BD
Panasonic Semiconductor Solutions Co., Ltd.
Device Solutions BD
Electronic Materials BD
Panasonic Liquid Crystal Display Co., Ltd.
Smart Factory Solutions BD

Eco Solutions

Other

Lighting BD
Energy Systems BD
Housing Systems BD
Panasonic Ecology Systems Co., Ltd.

PanaHome Corporation

As of April 28, 2016

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

(Reference)

Sales disclosure businesses in FY17

Appliances
・Air-Conditioner Business： Air-Conditioner Company
・Commercial Refrigeration &Food Equipment Business： Cold Chain BD, Hussmann Corporation
・Small & Built-in Appliance Business： Kitchen Appliances BD, Beauty and Living BD・Major Appliance Business： Refrigerator BD, Laundry Systems and Vacuum Cleaner BD
・AV Business： TV BD, Home Entertainment BD

AVC Networks
・Mobility Business・Visual and Imaging Business・Communication Business・Solutions Business： IT Products BD, Storage BD： Imaging Network BD, Security Systems BD, Visual Systems BD： Office Products BD, Communication Products BD： Panasonic Avionics Corporation, Domestic/Overseas Solutions

Automotive & Industrial Systems
・Automotive Business・Energy Business・Industrial Business・Factory Solutions Business： Automotive Infotainment Systems BD, Automotive Electronics Systems BD： Rechargeable Battery BD, Energy Device BD： Electromechanical Control BD, Panasonic Semiconductor Solutions Co., Ltd.,
Device Solutions BD, Electronic Materials BD, Panasonic Liquid Crystal Display Co., Ltd.
： Smart Factory Solutions BD

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