Automotive & Industrial Systems Company
Business Strategy
December 9, 2014

Panasonic Corporation
Automotive & Industrial Systems Company
President Yoshio ItoContents

1. FY2015 Progress
2. Midterm Business Plan andAutomotive Business Strategy

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

2 / 203 / 20

Contents

1. FY2015 Progress
2. Midterm Business Plan andAutomotive Business Strategy

4 / 20FY2015 1H Result
Sales and profit increased, FCF decreased+2% (y-y)(Yen: billions)

1,347.9

Sales

1,378.2

Sales-Strong system, battery and device
businesses for automotive

OP(OPM)FCFOP48.0(3.6%)

52.2(3.8%)

FY14 1H

FY15 1H

42.6

17.2-

ＦＣＦ-Restructuring cash out-CAPEX increase

Note: Figures are reclassified based on new business structure as of July 1, 2014.

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

Restructuring benefit5 / 20

Restructuring Progress
Have made solid progress on completing restructuring in FY2015

April: 3 diffusion plants in Hokuriku, Japan transferred to JV
Semiconductor

June: Assembly lines in Southeast Asia transferred
June: R&D, production and sales forces integrated intonew company

Circuit componentAugust: SAW filter business transferred throughabsorption-type company split

Printed Circuit
board

September: Equipment in plants in Vietnam and Taiwan
transferredElectromechanicalcomponent

October: General power supply business transferred

Eliminate Unprofitable Products
Drastically decreased number of unprofitable product categories
FY14

FY13+8%(y-y)

FY15(e)+2%

Profitableproducts

Sales
Unprofitableproducts

Sales
ratio
42%

22%

17%

Note: Figures are reclassified based on new structure as of July 1, 2014, excluding products from other Companies.

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

6 / 207 / 20Develop New Applications

Shift focus to automotive and industrial applications to improve profitability
Li-ion battery business
FY14

FY13

FY15(e)ICTAutomotive/industrial

Sales

100 (index)

OPM

Negative

134

112
Positive (0-5%)

Positive (0-5%)

Contents

1. FY2015 Progress
2. Midterm Business Plan andAutomotive Business Strategy

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

8 / 209 / 20

Towards FY2019

Target 3.6 trillion yen sales including 2 trillion yen sales in automotive business<Sales by application>+800 bil. yen(Yen: trillions)3.6Others

2.8

2.7

ICT
Industrial

2.0
1.2

1.3

FY14

FY15(e)Automotive
2.0

FY16(e)Midterm plan

FY19(e)Automotive Business: 2 Trillion Yen Sales

10 / 20Grow business in ‘Environment’, ‘Comfort’ and ‘Safety’

FY14

FY19(e)Environment

330bil. yen

Aim for No. 1 as automotive
battery supplier for eco-cars

680
bil. yen

Comfort580
bil. yen

Expand business with next
generation cockpit systems

880bil. yen

M&A
Business alliance

SafetyTotal260bil. yen

Focus on Advanced Driving
Assistance Systems (ADAS)

1.2 tri. yen

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

440
bil. yen
2.0 tri. yen

Environment

Li-ion Battery Business:
Manufacturing Company at Tesla Gigafactory

11 / 20

Collaborate with Tesla to develop and produce best EV battery

Panasonic Energy Corporation of North
America(100% owned by Panasonic)

Increase production capacity in stages
along with car production hikeReduce 30% of module cost

Rendering of Gigafactory(provided by Tesla)

Environment

Lead-acid Battery Business:
Enter into India

12 / 20

Establish JV with local partner to accelerate business establishment

Develop, produce and sell lead-acidbattery for two-wheeled, four-wheeledand UPS*Enter market with local production

Minimize startup period with existing
plantsMINDA Industries Limited(Pantnagar plant, Uttarakhand, India)
Note: UPS stands for Uninterruptible Power Supply.

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

Comfort

13 / 20
Next-Generation Cockpit System (HUD*):
Received First Order Note: HUD stands for Head-Up Display

Take advantage group-wide collaboration to achieve smallest HUD

Cockpit system
HUD

Display information to assist safe driving in environment withnarrow viewpoint

ComfortExpand Business Areas with M&A

14 / 20

Capital and business alliance with FICOSA:
Accelerate launch of electronic technologically advanced automotive mirror

Electronic mirror- Liquid crystal module- Camera- Image processing technology- Computerized system technology- Mirror technology- Frame design technology- Respond to regulations- Evaluation technology

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

15 / 20Sensor and ECU*

SafetyNote: ECU stands for Electronic Control Unit

Support ‘cognition and judgment while driving’ with device gaining high market
share and ECU

Steering angle
sensor

Acceleration sensor

Camera module

Back & corner
sensor

ECU

Angular rate sensor

Weight sensor

16 / 20

Focus on ADAS*

SafetyNote: ADAS stands for Advanced Driver Assistance Systems

Integrate knowledge to accelerate business launch

Rear wide view
camera sensing

Ultrasonic sensing

Backward approaching
object detection

Emergency brake

Received orders

Received orders

Collaborate with automaker partners
Side rear view camera sensing
Now evaluatingwith partners Lane change assistance

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

Front view camera sensing
Start to evaluatewith partnersAnti fore-collision

17 / 20

Expand Sales
Expand business with non-Japanese automakers adding toJapanese automakers

Sales by client(Yen: trillions)

1.2
16%

2.0(Yen: trillions)

Expand with strong

15%

Tier 1 & 2

device business

Emerging
countries

33%
Non-Japanese
automakers

Utilize FICOSA sales
channel

1.2

42%

15%

US & EU

Focus on China

Strengthen local sales
company function

36%
48%

FY14

2.0

19%

22%

62%

Sales by region

43%

Globally developJapanese
automakers

clientele relationship

FY19(e)% : Sales ratio

Copyright (C) 2014 Panasonic Corporation All Rights Reserved.

49%

Japan

FY14

FY19(e)Develop new businessareas(ADAS, cockpit system)% : Sales ratio

Disclaimer Regarding Forward-Looking Statements
This presentation includes forward-looking statements (that include those within the meaning of Section 21E of the U.S.
Securities Exchange Act of 1934) about Panasonic and its Group companies (the Panasonic Group). To the extent thatstatements 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 andother factors may cause the Panasonic Group's actual results, performance, achievements or financial position to be materiallydifferent from any future results, performance, achievements or financial position expressed or implied by these forward-lookingstatements. 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
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 from business and industrial customers, as well as consumers inmany product and geographical markets; the possibility that excessive currency rate fluctuations of the U.S. dollar, the euro, theChinese 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 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 in terms of both price and technology; the possibility of notachieving expected results on the alliances or mergers and acquisitions; the possibility of not being able to achieve its businessobjectives through joint ventures and other collaborative agreements with other companies, including due to the pressure ofprice 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; the possibility of the Panasonic Group not being able to maintaincompetitive strength in many product and geographical 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 and indirect restrictions imposed by other countries over trade,manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Panasonic Grouphas holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, deferred tax
assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; as well as natural
disasters including earthquakes, prevalence of infectious diseases throughout the world, disruption of supply chain and otherevents that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive andfurther 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 inaccordance with generally accepted accounting principles in Japan. The company believes that this is useful to investors incomparing the company's financial results with those of other Japanese companies. Under United States generally accepted
accounting principles, expenses associated with the implementation of early retirement programs at certain domestic andoverseas companies, and impairment losses on long-lived assets are usually included as part of operating profit (loss) in thestatement of income.

20 / 20(Reference)

Automotive & Industrial Systems Company
Automotive & Industrial Systems Company(AIS)

0Automotive business ratio*

100%

Automotive Infotainment Systems BD
Automotive Electronics BD
Automotive Battery BD

Engineering Div.

Panasonic Storage Battery Co., Ltd.
Electromechanical Components BD

Business Development Div.

Panasonic Semiconductor Solutions Co., Ltd.
Circuit Components BD

Automotive Marketing & Sales Div.

Automation Controls BD
Portable Rechargeable Battery BD

Industrial Marketing & Sales Div.

Electronic Materials BD
Capacitor BD
Panasonic Welding Systems Co., Ltd.
Panasonic Factory Solutions Co., Ltd.
Energy Devices BD
Panasonic Precision Devices Co., Ltd.
Panasonic Liquid Crystal Display Co., Ltd.
Note: as of July 1, 2014Copyright (C) 2014 Panasonic Corporation All Rights Reserved.