Group Strategy Briefing

Yuki Kusumi, Group CEO
Panasonic Holdings Corporation

April 1, 2022
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “Fiscal 2022” or “FY22” refers to the year ended March 31, 2022.

Starting New Structure &Looking Back on Previous
Medium-term Period© 2022 Panasonic Holdings Corporation1

Panasonic Group New Structure (from April 2022)
Panasonic Holdings Corporation
PHD

PAS

PEAC

PHS

PCO

PID

PEC

Other Group companies

PC

Panasonic Energy Co., Ltd.

EW

Panasonic Industry Co., Ltd.

Electric Works Company

CCS

Panasonic Connect Co., Ltd.

Cold Chain Solutions Company

HVAC

Panasonic Housing Solutions Co., Ltd.

Heating & Ventilation A/C
Company

LAS

Panasonic Entertainment &Communication Co., Ltd.

Living Appliances and Solutions
Company

CNA

Panasonic Automotive Systems Co., Ltd.

China and Northeast Asia
Company

Panasonic Operational Excellence Co., Ltd.
PEX

Panasonic Corporation

As an independent legal entity, each operating company will squarely
address society & customers, thoroughly implement autonomous
management, and accelerate competitiveness enhancement
Note: Abbreviations indicated under each organization name© 2022 Panasonic Holdings Corporation2

Looking Back on Previous Medium-term Period
Improved profitability (FY20-22):• Eliminated losses from businesses with loss-making structures• Thoroughly enhanced our management structure
despite external business environment changes such as COVID-19, etc.
First year of “2-year period (FY22-23) to focus on enhancing competitiveness” (announced May 2021):• Took a step forward in enhancing competitiveness• Still need to thoroughly implement autonomous management- Formulate strategy focused on long-term and customer perspectives
Challenges
to take up- Adapt to changes and facilitate speedier management:“Eradicate wastefulness to focus on truly value-added activities”“Maximize potential of each employee”

Clarify future goals of each operating company andreach optimal operational capabilities© 2022 Panasonic Holdings Corporation

3

New Medium- to Long-term
Strategy© 2022 Panasonic Holdings Corporation

4

Future Direction for Panasonic Group
Ideal society with affluence both in matter & mind

E

S

Environment

SocialContribute to solving global
environment issues
Panasonic GREEN IMPACT

Support health & well-being of people
both in mind & bodyin “lifestyle” & “workstyle”

ProfitContribution

Contribution

ProfitEnhance competitiveness

Strategy

Operational
capability

G
Governance

Implement Basic Business Philosophy

Thoroughly enhance competitiveness to contribute to“environment” and “well-being of lifestyle & workstyle”© 2022 Panasonic Holdings Corporation5

Outline of New Medium- to Long-term Strategy
2022

2023

2024

2027
1

E
Environ-ment

2030 (CY)

Contribute to solving
global environmental issues-PLong-term

Action for environmental issues
KPI

KPI

Back-casting from social changes and what
Panasonic can contributeS
SocialBusiness innovation for well-beingof “lifestyle” & “workstyle”

3

Medium-term

KPI

2

Strategic

Strategic

Strategic

KPI

KPI

KPI

Strategic investment & global strategy

Medium-term KGIs:
Cumulative operating CF, ROE, Cumulative OP

G
Governance

4  Management that maximizes
potential of each employee
 Thoroughly enhance operational
capability

Enhance operational capability
Operational

Operational

Operational

KPI

KPI

KPI

- PX*/DX & Gemba** innovations* Panasonic Transformation© 2022 Panasonic Holdings Corporation**operational frontlines

6

1
Panasonic
GREEN IMPACT

E
Environment

May 2021: CEO Briefing
Made commitment to “achieve net zero CO2 emissions at all
operating companies by 2030”

January 2022: CES 2022
Announced Group’s long-term environmental vision“Panasonic GREEN IMPACT”

Toward 2050, in addition to CO2 reductions from own value chain,increase size of contribution in CO2 reductions for society** Size of contribution in C02 reductions outside of own value chain© 2022 Panasonic Holdings Corporation

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E

1
Panasonic
GREEN IMPACT

Environment

By 2050
Create an impact that reduces CO2 emissions by more than
300 Mt, equivalent to approximately 1% of the current total
global emissions*
2020

2050

CO2
emissionsfrom own
value chain:
110 Mt❶ 110 Mt

➋ 100 Mt
➌ 100 Mt❹

Impact ➊: Emissions reduction in our own
value chain, including the effect ofdecarbonization occurring in society(achieve net zero in own value chain)
Impact ➋: “Avoided Emissions(contribution in reducing CO2 emissions
for society)” through existing businesses
Impact ➌: “Avoided Emissions” throughnew technologies and business
Impact ❹: Impact of repercussions inenergy transformation for society* Data from IEA: Global energy related CO2 emissions in 2019 were 33.6 Bt.
Figure for 300 Mt: calculated by emission factor as of 2020
© 2022 Panasonic Holdings Corporation8

2

Medium-term Management Indicators: KGICumulative
operating CF(FY23-FY25)

2.0 trillion yen

ROE(FY25)

10% or more

Cumulative OP(FY23-FY25)

1.5 trillion yen

Improve cash generation capability bythorough enhancement of business competitiveness© 2022 Panasonic Holdings Corporation9

3

Investment Policy under
New Medium- to Long-term Strategy

E
Environment

S
SocialCapital allocation (FY23-FY25)
CF generation

CF allocation

Dividend & lease repayment

Cumulative
operating CF

2.0 trillion yen
Improve cash generation
capability byenhancement of competitiveness

Sale of assets, etc.

Operating company’s
investment for growth:Make own investment
toward its long-term goals

Groupwide
strategic investment*- Growth areas: 400 bn yen- Technology pillars: 200 bn yen* No such classifications as “key businesses”

600 billion yen investment
in “growth areas” & “technology pillars”
to achieve future goals© 2022 Panasonic Holdings Corporation10

3

Investment for Growth:
Automotive Battery Area

E
Environment

Accelerate electrification in mobility :Contributions to a decarbonized society that does notdepend on fossil fuelsCompetitiveness- Improved battery cell performance & safety essential for
evolution & penetration of EVs- Cost competitiveness to make EVs more “affordable”

Commercialize new cells with 46-mm diameter at industry-leading speed:
Productivity verification & mass production to start in FY24 at
Wakayama Factory, Japan© 2022 Panasonic Holdings Corporation11

3

Investment for Growth:
Supply Chain Software Area

E
Environment

S
SocialAutonomous solutions eliminate all wastefulness &stagnation in supply chain and contribute to reducing
environment impact
Competitiveness- Wide range of software solution packages & AI accuracy- Optimize operational processes by data collection,
accumulation, analysis & utilization
SCM software

Data collection, accumulation, analysis & utilization

Make

Transport

Sell

Blue Yonder’s software continues to evolve toward optimizationof overall supply chain© 2022 Panasonic Holdings Corporation12

3

Investment for Growth:
Air Quality & Air-conditioning Area

E
Environment

S
SocialAchieve healthy & comfortable lifestyle and society
by air- & water-related technology
Competitiveness‐ Advanced coordinated system integrating air quality & airconditioning with unique technologies*‐ Integrating customer contacts developed through each business(air quality/air-conditioning) & engineering capability
Ventilation
Heat exchanging ventilation unit

Room air-conditioner

Advanced coordinated system

Commercial-use air conditioner

Ceiling-embedded type Ziaino
Humidity control unit

Establish sales & service bases, and expand lineup of coordinatedproducts in Europe, China & Japan* Nanoe, Ziaino, humidity control technology, visualized effect of disinfection, virus- & vital-sign sensing technologies© 2022 Panasonic Holdings Corporation

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E

3 Global Strategy

Environment

S
Social• Regional strategy leveraging each business’s strengths• Expandthrough business
China & Asia:
Lifestyle appliances/Automotive/FA solutions- Refine cost competitiveness & speed to become the best lifestyle partner in China(environment, health, elderly care, cleanliness)
 Lifestyle appliances: Cost competitiveness & speed (nurtured in China) to apply
throughout Asia
 Automotive/FA*: Increase contributions to customers by localizing product planning
throughout sales

North America:
Automotive batteries/Blue Yonder/Avionics- Reduce environmental impact by optimizing supply chain of Blue Yonder’s customers- Avionics: Enhance competitiveness by offering light-weight models to reduce fuelconsumption

Europe:Air quality & air-conditioning- Expand business for A2W** and integrated air quality & air-conditioning
system that makes greater contributions to environment* Factory Automation ** Air To Water© 2022 Panasonic Holdings Corporation

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3

Investment in Technology Pillars:
Hydrogen energy

E
Environment

Contribute to clean energy transformation for society throughproducing and expanding effective use of hydrogen
Hydrogen energy devices- Accelerate new energy transformation by producing green hydrogenand expanding its effective use
・ Produce hydrogen from water: Make hydrogen production highly efficient・ Convert from hydrogen to electricity: Make fuel cells more efficient

Distributed energy resource management systems- Control distributed energy resources byenergy management technologies andpromote effective use of electricity© 2022 Panasonic Holdings Corporation15

3 Investment in Technology Pillars: CPS *E
Environment

S
SocialPromptly find & offer the optimum solution by linking
real issues in “lifestyle” & “workstyle” with cyber space
Value-creation by CPS technology- Hardware/services learning from Yohana’s strengths to bring better value inlifestyle experience- High-level modeling by sensing people’s emotions & conditions- Eradicate wastefulness & stagnation through visualization & optimization at
the gemba with DX (Digital Transformation)

Cyber space
Feedback loop

Physical space
People / Lifestyle

Workstyle gemba* CPS: Cyber Physical System© 2022 Panasonic Holdings Corporation

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3

E

Groupwide Technology Pillars

S

Environment

SocialIdeal society with affluence both in matter and mind

Technologies contributing to“environment”

Technologies contributing towell-being in“lifestyle” & “workstyle”
Common software platform

PC

PAS

PEAC

Functional materials/Materials informatics○○

Power electronics○●

Hydrogen energy devices/DERMS*●

CPS/AI●●●

Image sensing/Robotics

〇

●

●

Simulation/Model-based development

○

●

○

Biosensing/Emotion recognition/Biotechnology○○

Software/communication/security

●

●

PHS

PCO

○

PID

PEC

●

●

○

○

●

○

○

●

○

○

●

●

○

○

○
●

○

○

○
●

○

● Highly relevant ○ Relevant• Groupwide efforts to strengthen technology pillars that support
the achievement of an ideal society• Proactively invest in ventures in our search for new technologies* Distributed Energy Resource Management Systems© 2022 Panasonic Holdings Corporation17

4Groupwide Key Measures toward Enhancing
Competitiveness at Each Operating Company

Management that maximizes potential of each employee
Create an environment to maximize potential of each employee’s
unique characteristics

Thoroughly strengthen operational capability- Panasonic Transformation: DX
Thoroughly improve speed and quality of management:
e.g. workstyle & business practices- Gemba (operational frontlines) Innovations
With kaizen (improvements) mindset & digital technologies,
strengthen operational capability in overall supply chain© 2022 Panasonic Holdings Corporation

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4Management that Maximizes Potential of
Each Employee

Attentively listen to employees who are willing to take up challenges;
create a working environment that maximizes potential of uniquecharacteristics
Provide equal opportunities for taking up challenges- Diverse workstyle to maximize potential of unique characteristics
・ 4-day work week system (optional), work-from-home system, retaining employment whena family member is transferred to another location*- Introduce job-type employment in HR management** to clarify the required role,
responsibility & skills

Support each employee in taking up challenges- Support employees taking up challenges to acquire the specialty skills requiredin each business・ Overhaul of HR development & appraisal/remuneration-systems- Revising internal recruitment system to activate Groupwide HR exchange* To be introduced on a trial basis at Panasonic Holdings Corporation & Panasonic Operational Excellence** Timeframe & details to be designed according to each operating company’s conditions© 2022 Panasonic Holdings Corporation

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4

Panasonic Transformation: DX

Thoroughly improve speed and quality ofmanagement
Including workstyle and business practices with powerof digital technologies

Workstyle innovation
Work that does not create added-value will become more efficient using IT

Business process innovation- Operating company*
e.g. DX in manufacturing to sales: Establish SCM reflecting live demand data by
optimizing PSI** process- Groupwide
e.g. Procurement DX: Further centralized procurement by analyzing contract &procurement information

Change workstyle & business processes by DX andthus support competitiveness enhancement at
operating companies*Example of new Panasonic Corporation**PSI ： Production, Sales, Inventory© 2022 Panasonic Holdings Corporation20

4 Gemba Innovations

Strengthen operational capability for overall supply
chain with kaizen mindset & digital technologies
April 2022: Operational Strategy Department establishedFirmly embed kaizen mindset-

Designated specialists at each operating company will promotewastefulness-elimination at all gemba (operational frontlines)

Use of digital technologies & evolution-

Further evolution of Blue Yonder:
Automated PSI proposals reflecting live demand data-

Image recognition & AI technologies:
Analyze and visualize wastefulness in workflow, etc.

By FY25, constant kaizen activities leveraging digitaltechnologies will be institutionalized at all sites© 2022 Panasonic Holdings Corporation

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Brand Slogan

In an ever-changing world, we continue our efforts to make life
simpler, safer, healthier, more enjoyable, and more sustainable.
Efforts to help our customers live their best.

Panasonic
Corporation

Panasonic
Automotive
Systems Co., Ltd.

Panasonic
Entertainment &Communication
Co., Ltd.

© 2022 Panasonic Holdings Corporation

Panasonic
Housing
SolutionsCo., Ltd.

Panasonic
ConnectCo., Ltd.

Panasonic
IndustryCo., Ltd.

Panasonic
EnergyCo., Ltd.

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Disclaimer Regarding Forward-Looking Statements
This presentation includes forward-looking statements 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 forwardlooking 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 factors 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 noobligation to publicly update any forward-looking statements after the date of this presentation. Investors are advised to consult any further
disclosures by Panasonic 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 forelectronic equipment and components from business and industrial customers, as well as consumers in many product and geographicalmarkets; the possibility that the spread of the novel coronavirus infections may adversely affect business activities of the Panasonic Group;
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 are denominated in these
foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fundraising 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 in terms of bothprice and technology; the possibility of not achieving expected results or incurring unexpected losses in connection with the alliances ormergers and acquisitions; the possibility of not being able to achieve its business objectives through joint ventures and other collaborative
agreements with other companies, including due to the pressure of price reduction exceeding that which can be achieved by its effort anddecrease in demand for products from business partners which Panasonic highly depends on in BtoB business areas; the possibility of notachieving expected benefits in connection with the transition to a new organizational system in which Panasonic is a holding company; 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; restrictions, costs or legal liability relating to laws and regulations or failures ininternal controls; fluctuations in market prices of securities and other financial assets in which the Panasonic Group has holdings orchanges in valuation of non-financial assets, including property, plant and equipment, goodwill and deferred tax assets; future changes orrevisions 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 of vulnerability of network-connected
products of the Panasonic Group; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout theworld, 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.