Eco Solutions Company

Growth Strategy in
Non-housing Related Market
0.8 Trillion Yen Sales Target in BtoB Solutions Business
November 26, 2014
Panasonic Corporation
Eco Solutions Company
President Tamio Yoshioka
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “fiscal 2015” or “FY2015” refers to the year ending March 31, 2015.
In addition, “fiscal 2015 six months” or “FY15 6M” refer to the period from April to September 2014.

2

本日の内容
Contents

1.FY2015 six month resultand full year forecast
2.Tow ards FY2019
3.Grow th strategy in
non-housing related market

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

3

FY15 Six Month Result
Sales

Operating profit■ Japan: favourable sales in solar business for housing

UPand LED lighting business offsetting effect ofconsumption tax hike.
■ Overseas: newly-consolidated VIKO and sales instrategic regions contribute to overall growth.

■ Sales increase in solar business and lighting

business contributed to improvement.

UP

790.4
Sales

771.2

+20.9

+2.2

20.9

41.8

Operating Profit 39.6
(Operating Profit margin)

783.2（2.7％）（5.3％）（5.1％）

FY14FY15FY15(Initial plan)(yen: billions)

4

FY15 Forecast
Sales

1,674.4

1,611.4*1 92.1
（5.5％）

1,637.0

1,637.0
-9.6

+20.0

Operating Profit(Operating Profit margin)*1 and *2:
Sales and OP
without effects oflast minute surge
in demand
before consumption
tax hike, andcorporate-widemeasures64.1*2（3.9％）

FY14+18.4

82.5（5.0％）

FY15

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

62.5（3.8％）

FY15(Initial plan)(yen: billions)

5

本日の内容
Contents

1.FY2015 six month resultand full year forecast
2.Tow ards FY2019
3.Grow th strategy in
non-housing related market

6

FY19 Panasonic and Eco Solutions Company

Five Business Areas

10.0
SalesDevice

7.7
1.4
1.8

Eco Solutions Company

1.5

0.8

BtoB Solutions

0.6

2.5
Auto

2.0

1.2
1.4

1.4

1.8

2.0

FY14

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

withHousing Combined
PanaHome

2.0
2.0
FY19 Target

ConsumerElectronics
Total

2.0

2.8
(yen: trillions)7

Target in Eco Solutions Company

Housing-Related Business

2.0

1.4

Sales

1.Strengthen remodeling business2.Expand home energy management
system business3.Develop business operation in overseas
strategic regions(Focus on “ACTION 3000” project in the growing market:
ASEAN, China, Turkey, India) (On)4.Expand housing business

（0.5）

（0.3）

（ＰａｎａＨｏｍｅ）

FY14

FY19 Target

5.Enhance “Age Free”(elderly care) business(yen: trillions)

8

本日の内容
Contents

1.FY2015 six month resultand full year forecast
2.Tow ards Fiscal 2019
3.Grow th strategy in
non-housing related market

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

9

Non-Housing Related Business(yen: trillions)
1. Engineering BusinessCentering on
Energy Management


Sales: 0.1

Major Energy Management Products for Non-housing Buildings

Energy monitor Industrial storage
battery system

2. LED Solutions Business

0.63億円
6,300
FY2014 Sales

Battery charging
equipment for EV and PHEV

3. Others

Major Lighting Fixtures

(Store lighting, Facility lighting and Outdoor lighting)

LED downlightEngineering Business in Japan

LED base light

LED street light

Engineering Business in Japan (Lighting)

4. Overseas Business

Sales: 0.2

Sales: 0.2

Sales: 0.13

Electrical Construction Materials

Electrical Construction Materials

(Distribution panelboard, Fire alarm equipment , Conduit piping system)Industrial solar power generation system

Lighting Fixtures
for Non-housing Buildings / Lighting Devices



Other In-house Company’s Products

Overseas Engineering Business(Solar power generation system business,
Fire prevention system business,
Environmental engineering business)

Industrial air-conditioning system

10

Non-Housing Related Business
1. Engineering businesscentering onenergy management

2. LED solutions business

4. Business related to 2020
Olympics/Paralympics andreconstruction of Tohoku
region, Japan

3. Overseas business0.80.63
Overseassales

0.13

Domesticsales

0.5+0.04

+0.04

FY14

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

+0.02

+0.07

0.20.6

FY19 Target(yen: trillions)11

1. Engineering Business Centering on Energy Management
FY2014

Energy Management Solutions (1)Amendment of Energy Saving
Act in Japan

Contract Electricity

FY2019（Target)

Sales: 0.1 ⇒ 0.14 (yen: trillions)

Extra-high Voltage

2,000kW
Large-lot electricity users

Electricity system reform

500kW
Subsidies for business operators
to rationalize energy use

Small-lot high voltage
electricity users *1

BEMS in preliminaryphase50kW
Low voltage
electricity users *2

Providing optimum products and services to owners of small and medium-sized*1
buildings including offices and stores
TMEmanage is under application for trademark
registration by Panasonic.

*1: Contract electricity is less than 500kW such as small and medium-sized office buildings, storesand commercial and industrial facilities*2: Standard homes

12

1. Engineering Business Centering on Energy Management

Energy Management Solutions (2)Easy-to-use equipment and systems / Affordable price / Support from installation to consultation

Measuring electrical power

Visualize Energy
Consumption

Will start in Autumn, 2015
High-voltage power
distribution equipment(CUBICLE)

StoragebatteryPVsystem(planned)(planned)

Air-conditioningsystem

Lighting
equipment

TabletControl automate
demand response
Control and analyze
total amountPC monitor

Cloud server

Support from analysis of electric power consumption
to consultation on efficient energy management

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

13

1. Engineering Business Centering on Energy Management

Engineering Business
Maintenance service business/ non-housing renovation business

Build up 180 regional disaster prevention bases inTohoku region, Japan with “Green New Deal”
foundation program

Remote monitoring
service for energy-management
related equipment

Develop regional disasterprevention bases nationwide

Service inemergency
Service inemergency

Confirmation
report ofthe operational
Solar power generation system Storage battery status
Remote alarm
monitoring

Power output
monitoring

Error report

Visualization ofoperational status

Solar power generation system

Storage battery

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2. LED Solutions Business
FY2014Gain Market Share“Quality of light”
and “value of space”
Light wavelength control technology

Sensation-of-RoomBrightness Index "Feu”
and Modulation

Wide range of product lineup
and flexible customization capability

LED component solutions

FY2019（Target)

Sales: 0.2 ⇒ 0.24 (yen: trillions)

Top market share by industrial sector
in Japan *1Competitive Products for low-end marketCompetitiveness with value added products
LED product market share by industrial*1: sector
in Japan as of June 11, 2014,

LED lighting fixture“Favourable color iD” series

New LED downlight

Panasonic survey

Business development in various areas by leveraging Panasonic advantages
Store lighting

Facility lighting

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

Outdoor lighting

大15

2. LED Solutions BusinessCreate New Demand / Develop New Business
Provide new value of spaceby fusing lighting and projected image
Cross-Value Innovation

New business development
LED Sign Lighting Fixture Smooth and bright both-face emission
with thinnest light guide panel in the Industry *1
 Launched This Product in September 2014

Projection lighting*1: In LED signage lighting market in Japan as of August 19, 2014

LED lighting device business development
UV-LED lighting module®
Note: Space Player is a registered trademark of Panasonic Deep UV rays emission withdisinfection function
 Able to be embedded into small home appliance
Launched in June, 2014

Apply lighting technology to transportation

テーブルを照らしながら、メニューや動画を投映

壁面に展示物の説明を表示

背景に使用シーンのイメージ動画を投映

16

3. Overseas Business
FY2014ASEAN, China and Taiwan
Expand sales of non-housing LED
lighting products

FY2019（Target)

Sales: 0.13 ⇒ 0.2 (yen: trillions)

Develop environmental engineeringbusiness
 Equipment for effluent treatment, chemical
recycling, and exhaust gas treatment
 Clean room and air-conditioning system

China
 For stores, factories and offices

Malaysia

ThailandTa i w a n

Develop New Business Wiring duct business in China
LED downlightLED spotlight

LED base light Switching hub business in Indonesia

Indonesia

 Power supply business for areas
without electricity

 For stores, factories and streets

Power Supply Container
contains solar modules and storage batteries.

LED downlight

LED base light

LED street light

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

“Power Supply Container”

17

3. Overseas Business

India

North America
Expand PV solutions business
Establish operating company
as prime contractor to increase Orders

Entered non-housing LED lighting business Launched LED lighting fixtures for office and store(from November 2014)

Propose and Operate tax-efficient business model by leveraging
U.S. renewable energy programOperating company receive packaged order including design,procurement, installation and maintenance as prime contractor

 Utilizing strong sales channel of wiring devices
InvestInvestInvestor

Operating Company

Supplying
Materials

InvestInvestOrder

Sell electricity

 Expand security system business centering on fire alarm businessas prime general contracting company

Maintenance Reinforce profitability by expanding maintenance service businessAccepting a Package Order

Tra nsporta tion Inf ra structure(roa d a nd ra ilroa d)

FY2019（Target)
Sales
18
Increase: +0.02 (yen: trillions )Support new town planningPropose town planningby utilizing ICT (Information andCommunication Technology)Support town planningwith virtual reality system

zBuilding automation

systemIndustrial zstorage
battery systemz
Heat exchange
ventilation unit

Re-develop Tokyo
metropolitan areas andConstruct hotels

Increase renewable energy ratio

Reconstruction support businessin Tohoku region, Japan. 2020 Olympics/Paralympics related business

Products f or non-housing m a rket

Build regional disasterprevention baseszzz
Large-scalesolar
power generation Facility lighting Street lighting
systemfixturefixtureUtilize “Green New Deal” foundation program

Build 180 regional disaster prevention
bases in Tohoku region, Japan

Newly propose to related facilities
Indoor LED lighting
f ixture f or sta diumSta ge lighting f ixture

Crowd guiding system●Street lighting fixture
with independent
power supply●Multi-functional pole

LED floodlight LED high ceiling
fixturelighting fixture●Security camera andpublic Wi-Fi

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Pay electricity bill

Power Utility

4. Business related to 2020 Olympics/Paralympics andreconstruction of Tohoku region, Japan

Verify product specs for designed transportation
infrastructureInvestor

PV ProjectInstallation

Expand system engineering business

Newly open sales officein Ofunato city, Iwate, Japan

Develop community-based proposal

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after the date of this presentation. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings under the Financial Instrument andExchange Act of Japan (the FIEA) and other publicly disclosed documents.
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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 theFIEA 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 other Japanesecompanies. Under United States generally accepted accounting principles, expenses associated with the implementation of early retirement programs at certain
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