Panasonic Technology IR

Panasonic Innovation Strategy
November 29, 2017
Panasonic Corporation
Notes: This is an English Translation from the original presentation in Japanese.

Providing Value

1Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

Providing Value
Housing

Automotive

EnergyConnected Home
Zero Emission House
Robot Appliances

Connected Car
Electrification
Auto-driving
Shared Economy

Renewable
Zero Emission
Local Production& Consumption

IoT/Robotics

EnergyAI, Sensing, UI/UXSecond battery, Hydrogen

2

Creating “A Better Life, A Better World”
with the Technology 10-Year Vision
AI Robotics Home Appliances

Autonomous Driving

Freedom fromHousework

No Accident
No Congestion

IoT/Robotics
AI, Sensing, UI/UXHome Energy Solution

Building/Regional Energy Solution

Low-carbon
Society

EnergyDiversification

TechnologyEnergy
Battery, Hydrogen
10-Year Vision

Improve ServiceQuality

Elimination ofLabor Shorage

Clean Car

Retail Solutions

Next-gen Logistics

Automotive energy Solution

https://www.panasonic.com/global/corporate/technology-design/10years-vision.html

3

Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

IoT/Robotics
AI Robotics Home Appliances

Freedom fromHousework

Autonomous Driving

No Accident
No Congestion

IoT/Robotics
AI, Sensing, UI/UXHome Energy Solution

Building/Regional Energy Solution

Low-carbon
Society

EnergyDiversification

TechnologyEnergy
Battery, Hydrogen
10-Year Vision

Improve Service
Quality

Elimination ofLabor Shorage

Clean Car

Retail Solutions

Next-gen Logistics

Automotive energy Solution

4Society 5.0:Super Smart Society
New Society

Hunting

Agrarian

IndustrialInformation

Based on material from Japanese Govt, http://www8.cao.go.jp/cstp/society5_0/index.html

5Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

From “Keeping process” to “Customer Value First”
Society 3.0 (Industrial Society)• Mass production with good quality bydefining and obeying processes.
• Focus hardware product innovation

Society 5.0 (Super Smart Society)• Customer value first, apply the bestprocess for it.
• Innovation of all business models including
hardware, software, service, etc.

6Direct communication with customers
Waterfall Process:Unspecified Large Number of Customers

Agile Process:Specified Large Number of Customers

7

Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

Restructuring Corporate R&D to promote innovation
on April, 2017
Technology & Design Section -> Innovation Promotion Section
Innovation Promotion Section
BusinessSenior Managing Executive Officer
CTO,CMO,CQO,CPO,CIO

Business Innovation Division

R&D

Advanced Research Division

Yoshiyuki Miyabe

Manufacturing Technology andEngineering Division

Head Quarter

Design Strategy OfficeInformation Systems Department

Information SystemsCompany
R&D/BusinessAPES

Technology Division
Business Development Center
Innovation Center
Business Development Center

CNS

Innovation Center

AIS

Technology Division
Business Development Center

8

Ｂｕｓｉｎｅｓｓ Ｄｉｇｉｔａｌｉｚａｔｉｏｎ

Ｂｕｓｉｎｅｓｓ Ｉｎｎｏｖａｔｉｏｎ Ｄｉｖｉｓｉｏｎ
Ｗａｔａｒｕ Ｂａｂａ

9Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

Ｂｕｓｉｎｅｓｓ Ｄｉｇｉｔａｌｉｚａｔｉｏｎ

Ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｆ
Ｄｉｇｉｔａｌ Ｎａｔｉｖｅ Ｂｕｓｉｎｅｓｓ

Ｅｓｔａｂｌｉｓｈｍｅｎｔ ｏｆ
Ｏｐｔｉｍｉｚａｔｉｏｎ ｉｎ
Ｉｎｎｏｖａｔｉｏｎ Ｐｒｏｍｏｔｉｏｎ Ｄｉｖｉｓｉｏｎ
Panasonic β

10Ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｆ Ｄｉｇｉｔａｌ Ｎａｔｉｖｅ Ｂｕｓｉｎｅｓｓ- Ｄｉｇｉｔａｌ Ｂｕｓｉｎｅｓｓ Ｍｏｄｅｌ

A Platform Company

Winning Digital Ecosystem

Software Designed Hardware- Ｄｉｇｉｔａｌ Ｐｒｉｏｒｉｔｙ

Digital Customer

Digital Products

Digital Supplier

11

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Digital Workforce

Digital FinanceＳｏｆｔｗａｒｅ Ｄｒｉｖｅｎ Ｔｙｐｅ Ｌｉｖｉｎｇ Ｓｐａｃｅ Ｈａｒｄｗａｒｅ

Housing ∪HousingHome∪<Equipment
Appliance

Housing ∩HousingHome∩=Equipment
Appliance

ＨｏｍｅＡｐｐｌｉａｎｃｅ

ＬｉｖｉｎｇＳｐａｃｅ
Ｈｏｕｓｉｎｇ

Disrupt other industries
by digital native business modelＨｏｕｓｉｎｇ
Ｅｑｕｉｐｍｅｎｔ

Growth throughreinventing our industry

12

Ｐａｎａｓｏｎｉｃβ
Ｒｅａｌｉｚａｔｉｏｎ ｏｆ Ｍｉｎｉ Ｈｏｒｉｚｏｎｔａｌ Ｐａｎａｓｏｎｉｃ ａｎｄEｓｔａｂｌｉｓｈｍｅｎｔ ｏｆ Ｍｏｔｈｅｒ Ｆａｃｔｏｒｙ ｆｏｒ Ｉｎｎｏｖａｔｉｏｎ Ｍａｓｓ Ｐｒｏｄｕｃｔｉｏｎ
Horizontal Panasonic about Job Function
ＳｏｆｔｗａｒｅＡＩＤｅｓｉｇｎＤａｔａ Ｓｃｉｅｎｃｅ

Panasonic β
Ｐａｎａｓｏｎｉｃ Ｃｒｏｓｓ Ｖａｌｕｅ Ｓｔｕｄｉｏ

ＰｅｏｐｌｅＡＰＥＳＰｒｏｃｅｓｓＰｌａｃｅＣＮＳ

Horizontal Panasonic about Business Division

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ＡＩＳＰａｎａｓｏｎｉｃ β Ｉｎｖｏｌｖｅｓ ｔｈｅ ｗｈｏｌｅ ｃｏｍｐａｎｙ
Ｃｒｏｓｓ Ｖａｌｕｅ Ｔｙｐｅ Ｒｅｇｒｏｗｔｈ ｂｙ Ｈｏｒｉｚｏｎｔａｌ Ｐａｎａｓｏｎｉｃ ａｂｏｕｔ Ｂｕｓｉｎｅｓｓ Ｄｉｖｉｓｉｏｎａｎｄ Ｈｏｒｉｚｏｎｔａｌ Ｐａｎａｓｏｎｉｃ ａｂｏｕｔ Ｊｏｂ Ｆｕｎｃｔｉｏｎ

０１２９３

８１

３１３ＩｄｅａＣｒｅａｔｉｏｎＰｒｏｔｏｔｙｐｅ

ＨａｒｄｗａｒｅＰｒｏｔｏｔｙｐｅ

Ｌｉｖｉｎｇ Ｓｐａｃｅ
Ｐｒｏｔｏｔｙｐｅ

５３２１２５４２９９Ｃｏｍｐａｎｙ Ｐｅｏｐｌｅ ＪｏｂＦｕｎｃｔｉｏｎ

Ｃｏｍｐａｎｙ Ｐｅｏｐｌｅ ＪｏｂＦｕｎｃｔｉｏｎ

Ｃｏｍｐａｎｙ Ｐｅｏｐｌｅ ＪｏｂＦｕｎｃｔｉｏｎ

Ｊｕｌｙ

ＳｅｐｔｅｍｂｅｒＮｏｖｅｍｂｅｒ

14Ｒｅｓｔｒｕｃｔｕｒｉｎｇ Ｂｕｓｉｎｅｓｓ Ｐｒｏｃｅｓｓｂｙ Ｉｎｎｏｖａｔｉｏｎ Ｐｒｏｍｏｔｉｏｎ Ｄｉｖｉｓｉｏｎ

Panasonic βＭａｎｕｆａｃｔｕｒｉｎｇＴｅｃｈｎｏｌｏｇｙ ａｎｄＥｎｇｉｎｅｅｒｉｎｇ Ｄｉｖｉｓｉｏｎ

Ｂｕｓｉｎｅｓｓ Ｉｎｎｏｖａｔｉｏｎ
ＤｉｖｉｓｉｏｎＳｈｏｗ Ｒａｐｉｄｌｙ
Ｌａｕｎｃｈ Ｒａｐｉｄｌｙ

Ａｄｖａｎｃｅｄ ＲｅｓｅａｒｃｈＤｉｖｉｓｉｏｎ

ＥｎｅｒｇｙＤｅｓｉｇｎ

15

Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

Ｐａｎａｓｏｎｉｃβ ｔｈａｔ ｌｅａｄｓ ｎｅｘｔ １００ ｙｅａｒｓ

1Ｃｏｎｓｔｒｕｃｔｉｏｎ ｏｆ
Ｄｉｇｉｔａｌ Ｎａｔｉｖｅ Ｂｕｓｉｎｅｓｓ

２Ｒｅｇｒｏｗｔｈ ｏｆ
Ｍａｉｎｓｔｒｅａｍ Ｂｕｓｉｎｅｓｓ

Panasonic βＤｉｇｉｔａｌ Ｎａｔｉｖｅ

Ｄｉｇｉｔａｌ Ｔｒａｎｓｆｏｒｍａｔｉｏｎ

16

Manufacturingthat Embodies the Business Ideas
from Rapid Prototyping to Mass Production

Manufacturing Technology and Engineering Division
Tatsuo Ogawa
17

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Show FasterEmbody the ideas rapidly by prototyping
Improve the visualized concept by prototype with a feeling of touch

Model made with cardboard etc.

Usable prototypes

18

Manufacturing that realizes rapid prototyping
Produce the prototype rapidly from data creation

Measure DecoratePrint

CAD data linkage
High precision scan

Additive manufacturing
3D modeling19

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Customized design
Decorative PrintingConnect to the Business Faster
Produce hundreds units in a short time to examine the business model

Make a moldwitha metal
3D printer
ReduceL/Tsignificantly

Quality ofthe products ismass pro level

Prove concept
quickly

L/T for mold : 1 moths → 1 week
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Digitalization of Mass Production
Manage the production instruction optimally for various order & demand change

CyberPhysical

Simulation due to changes

Feedback to operation

Various order

Changesin the field

Implement
dispatch plan

Simulate
Supplier

Verify optimal
production instructions

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Logistics tracking

Plant Storage〜Logistics

Energy
AI Robotics Home Appliances

Autonomous Driving

Freedom fromHousework

No Accident
No Congestion

IoT/Robotics
AI, Sensing, UI/UXHome Energy Solution

Building/Regional Energy Solution

Low-carbon
SocietyEnergy
DiversificationTechnologyEnergyBattery, Hydrogen
10-Year Vision

Improve Service
Quality

Elimination ofLabor Shorage

Clean Car

Retail Solutions

Next-gen Logistics

Automotive energy Solution

22

Rechargeable battery is key device
to reduce fossil fuelGasoline-fueled Car
Experimental
Electric Vehicle

Gasoline Engine

Motor

Gasoline Tank

Rechargeable Battery

23

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Leading Rechargeable Battery Business
Dalian Factory(China)Tesla Gigafactory(Nevada, US)

Suminoe Factory(Japan)24

Advanced Researchin Energy Field

Advanced Research Division
Masato Aizawa
25

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Importance of Materials for Battery Performance
Importance of new materials development andanalysis of atomic/molecular behavior
Rechargeable battery composition and charge-discharge

Current collector

Chargeｅ

Positive electrodematerialElectrolyte+Li

Negative electrodematerial

Discharge

Current collector

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Shortening of New Material Development
Solution for drawbacks of a trial and error approach
TheoryExperiment

Evaluation

Ｍａｔｅｒｉａｌｓ Ｉｎｆｏｒｍａｔｉｃｓ
AI

Simultaneous prediction

Materials

TheoryExperiment
Evaluation

27

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Synthetic process

Data-driven Material SearchStructure prediction of functional material by AI
ReportedExpt. data

data

AIBattery:
Data for 50 years

50 million data

Material

Simulation

data

data

1 million data

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Elaborate Analysis and Evaluation
Analysis of atomic arrangement and behavior
Atomic-scale resolution
Electron microscope

Real-time
dynamic analysis ※Li behavior
in battery material
Solid electrolyte

Thin-film battery50μm※ The worldʼs first tech in positive electrodes(Best presentation award at ICMaSS 2017)29

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ChargeThickness
0.1μmlow

Li conc.

highQuick Launch Products into Markets
Close relationshipbetween material search and manufacturing

30

Manufacturingthat Quickly Realizes High-Performanceand Safe Automotive Rechargeable Batteries

Manufacturing Technology and Engineering Division
Tatsuo Ogawa
31

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Pursuit of Security & Safety in Manufacturing
Monitor physical properties & process pointthat we could not see before in real time
Coat / Dry
Knead ・ Disperse
Join ・ Cut

Aim to provide 100% quality with zero defects facilities

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Evolution of Traceability by Visualization of Factory
Aggregate & analyze the all information in factory,
reflect decision on production site instantly(To Zero Defect from Quality Control)① Discover & digitize on-site information
Awareness

MES/Equipment・Inspection log② Process & store into handleable data
Daily report・check

Sensor data

IoTBig data
AI

Select data

DB
Distributed processing③ Visualize & analyze process quality in real time

Trend monitoring

Visualize the characteristic distribution

33

Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

Conclusion

34

HQ Changes itself and Leads Innovation
AI Robotics Home Appliances

Autonomous Driving

Freedom fromHousework

No Accident
No CongestionIoT/Robotics
AI, Sensing, UI/UXHome Energy Solution

Building/Regional Energy Solution

Low-carbon
SocietyEnergy
Diversification

TechnologyEnergy
Battery, Hydrogen
10-Year Vision

Improve ServiceQuality

Elimination ofLabor Shorage

Clean Car

Retail Solutions

Next-gen Logistics

Automotive energy Solution

https://www.panasonic.com/global/corporate/technology-design/10years-vision.html

35

Copyright (C) 2017 Panasonic Corporation All Rights Reserved.

36

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 of1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended) about Panasonic and its Group
companies (the Panasonic Group). 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 thePanasonic 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 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 theseforward-looking statements. Panasonic undertakes no obligation to publicly update any forward-looking statements after the date of thispresentation. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings under the Financial Instrumentand 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 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; fluctuations in market prices of securities and other financial assets in which thePanasonic 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 expenses resulting
from a leakage of customers’ or confidential information from Panasonic Group systems due to unauthorized access or a detection ofvulnerability 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 thePanasonic 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.

37

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