•

Good afternoon, I’m Yuki Kusumi, Group CEO of Panasonic.
Thank you for participating in this online briefing, despite your very busy
schedule.

•

Before we start, I would like to express my sincerest apologies to thoseaffected by the inconvenience and concern caused by the leakage ofsome data due to unauthorized access to our network, which weannounced last year.
I also apologize for the inconvenience caused by the postponement of
this briefing from December 7, 2021, and I appreciate your understanding.

•Now, I would like to start.
The purpose of today’s briefing is to share our vision, values andinitiatives in conducting sustainable management, while we are also
making our utmost efforts toward achieving a sustainable society.

© 2022 Panasonic Corporation0•First, I would like to talk about my vision of the direction Panasonicshould take.

•Looking back on our history, the company’s mission was announced at
the first foundation day ceremony in 1932: Aim to achieve an “ideal
society with affluence both in matter and mind.”•

After becoming CEO, I have been emphasizing my own message:
To carry out this mission, we must be unrivaled in accomplishing valued
work that is appreciated by customers and society. That is, we must
thoroughly enhance competitiveness.

•Moreover, the code of conduct for each employee to practice, towardachieving our mission, is described in the “Basic Business Philosophy.”•

In today’s briefing on sustainability, I will explain the “company’s mission”
and the “Basic Business Philosophy,” both of which I have talked about
before, by taking the perspective of sustainability.

© 2022 Panasonic Corporation1

•At the founding ceremony in 1932, when our founder, Konosuke
Matsushita, recognized the company’s mission, he proclaimed that wewould achieve “an ideal society with affluence both in matter and mind”
within 250 years.

•

This very long-range mission of 250 years is designed to help establish
a valuable and ideal society. It consists of ten 25-year phases, based on
the estimated average of one’s working years. In other words, we willachieve our goal over ten generations.
This embodies the founder’s wish to pass along the responsibility offulfilling our true mission to succeeding employees, generation aftergeneration, instead of completing it within his own generation.

•

Following this address, he commented:“This is not to sacrifice ourselves for the sake of the next generation:
We should enjoy a feeling of well-being in our life, and life must go on.
Moreover, we aim to make conditions for the next generation evenbetter.”•“An ideal society with affluence both in matter and mind,” Panasonic’s
aim, aligns well with the concept of “well-being.” In addition, this longrange mission, to be accomplished over several generations, means thatmanagement must be sustainable.

•

In this way, the philosophy of “well-being” and “sustainability,”
the perspectives I will be talking about today, have always been
embodied in Panasonic’s mission, set all the way back in 1932,
about 90 years ago, the early years of the company’s history.

© 2022 Panasonic Corporation

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•Furthermore, let me reemphasize that the Basic Business Philosophy,
which defines our basic way of thinking toward fulfilling our mission,
exactly complies with the concept of ESG, or Environment, Social andGovernance.

•

First, in terms of Environment and Social, to be “unrivaled inaccomplishing valued work” toward achieving “an ideal society withaffluence both in matter and mind” means to be unrivaled in making
contributions to solving global environmental issues, such as climatechange. The profit earned as a result should be returned to society, andalso be invested in efforts to make further contributions.

•

Moreover, in terms of Governance, to sustain contributions toward theenvironment and society, we will implement autonomous responsible
management and employee entrepreneurship, carry out managementthat maximizes the potential of human resources, promote participative
management through collective wisdom, and uphold the principle ofFairness and Honesty, which embodies compliance.

•

The Basic Business Philosophy guides us in maintaining and enhancing
competitiveness that is unrivaled in making contributions to the Earthand society, with each employee’s conduct living up to the highest
standard of integrity. In addition, we will expand our contributions.
In other words, the Basic Business Philosophy is also the key to thesustainability of our management itself.

© 2022 Panasonic Corporation

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•

Now, I would like to explain how we will translate our great mission
into actually achieving our goal, as well as our initiatives in detail.

•Toward achieving an ideal society, without leaving this burden to thenext generation, we must tackle various societal issues. In particular,
we consider global environmental issues, including climate change,
the highest priority, and the Panasonic Group, encompassing all ofour businesses, should address these issues squarely.
We have already made a commitment to achieving net zero CO2emissions at all operating companies by 2030. In addition, we will
make contributions to reducing CO2 beyond the emissions from
Panasonic's own value chain by 2050. Moreover, at the Consumer
Electronics Show (CES) held in the U.S., we announced “Panasonic
GREEN IMPACT” as a way to achieve this goal.

•With regard to social issues, we believe our targeted affluence both inmatter and mind, should give equal opportunities to gain such
affluence to all individuals who live and work in society. Therefore, wewould like to create a state of well-being in which an individual canfeel comfort, safe, healthy in mind & body, and happy wherever they
are in “lifestyle” or “workstyle.”
To accomplish all this, we must support the well-being of ouremployees as a first step to contributing to the well-being of ourcustomers.

•

In the next few slides, I would like to elaborate upon our initiatives in
helping to solve global environmental issues and in the three areas ofwell-being in “lifestyle,” “workstyle,” and “employees.”© 2022 Panasonic Corporation

4•This slide shows our environmental initiatives toward achieving a carbon neutral society,and our view and visions.

•

As previously mentioned, we have made a commitment to achieving net zero CO2emissions at all operating companies by 2030. This constitutes the so-called Scopes 1
and 2, shown in dark blue at the upper-left part of the graph.

•

To the right, you can see the additional sources of emissions labeled Scope 3 andhighlighted in pale blue. These are CO2 emissions through the entire value chain, andthey overwhelmingly exceed the CO2 emissions in Scopes 1 and 2. The total amount of
CO2 emissions for Panasonic’s global value chain, including all three Scopes, is at
110 million tons; to gain some perspective, this is equal to approximately 1% of the total
CO2 emissions from global electricity consumption.

•

Panasonic products are used by more than one billion customers worldwide every day.
The resulting emissions due to the electricity consumed in using these sold products
amount to approximately 86 million tons per year, accounting for 80% of the total
emissions from our entire value chain. Moreover, 80% of the 86 million tons come fromlighting, air-conditioning, and ventilation equipment. Therefore, we will focus on
improving energy savings in these area’s products. This will lead to drastically cutting
Scope 3 emissions, highlighted in pale green.

•

Right now, the world is shifting to a carbon neutral society. Toward 2050, Panasonic will
focus on making contributions to energy transformation for society through proposing
solutions to our B2B and B2G customers:- Significantly improving energy savings, and- generation and effective use of clean energy.
These aspirations to expand our contributions are shown at the bottom of the graph indark green.

•

Panasonic has a wide range of customers in various industries. We believe encouraging
our customers in various fields to reduce CO2 emissions will help to accelerate thetransition to carbon neutrality globally. In addition, these initiatives will have an impact on
advancing the energy transformation for the entire global society. We call these initiatives
to help reduce CO2 emissions the “Panasonic GREEN IMPACT.” From now, we are fullycommitted to expanding these initiatives as the Panasonic Group.

© 2022 Panasonic Corporation

5•The year 2050 sounds far away to us, it may be difficult to envisage whata carbon neutral society will look like in three decades. But we believe
we must reach a carbon neutral society, and it should be achieved assoon as possible.

•

In order to accomplish this, we will accelerate our contributions to CO2
reduction, together with our customers, through the Group’s various
businesses in the areas of lifestyle, town, mobility, and supply chain.

•

One example is to significantly reduce energy usage, both for
manufacturing products and for using those sold products.
In addition, we will not waste energy in our own business activities, as away to reduce CO2 emissions.
We will accelerate the replacement of fossil fuels with electricity and,furthermore, the replacement of the energy supply itself with renewableenergy.

•We believe such actions from the demand side in various industries will
accelerate the use of renewable energy from the supply side, thus
making an impact on bringing energy transformation for society.

•

Another initiative toward a carbon neutral society is the circularity ofnatural resources. We will incorporate the idea of a “circular economy,”aiming for sustainable growth without depending on natural resources, toreduce CO2 emissions throughout the product lifecycle.

•

I will introduce some specific examples of our GREEN IMPACT initiatives
toward achieving a carbon neutral society in later slides.

© 2022 Panasonic Corporation

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•This slide shows an example of technologies and applications for energy
savings in using our sold products such as lighting, air-conditioning andventilation which account for the majority of CO2 emissions in Scope 3.

•

First, let’s look at lighting. We aim to achieve up to 30% energy savings
without compromising comfort through the following technologies:- “Brightness of a flat surface, such as a floor or desk,” which has been usedin conventional lighting designs; combined with- indices set for the “perception of brightness in a spatial environment” basedon our accumulated R&D in comfortability; and- making full use of our “lighting control technologies” and know-how of“spatial presentation with suitable lighting adjusted for the appropriate
environment.”•

Next, our initiatives in air-conditioning and ventilation.
The more sales grow with stronger demand and enhanced productcompetitiveness, the more energy will be consumed in this area.
Nevertheless, we will develop innovations in this equipment, and bypromoting the coordination of air-conditioning with ventilation, we aim toachieve approximately 40% energy savings in this area by 2030, while
improving energy savings as a whole.
More specifically, we will leverage our accumulated R&D capability in
refrigerant circuit technologies and accelerate innovations in such as outdoor
units that use waste heat for superior efficiency during cooling operation.
In addition, we will optimize control of both air-conditioning and ventilationequipment by reducing heat loss in ventilation and managing air-quality
using sensing technologies. With these initiatives, we aim to both minimize
energy consumption and increase comfort.

© 2022 Panasonic Corporation7

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Next, I would like to show a few examples of how we are expanding our contributions to“energy transformation for society.”•

Currently, many countries around the world are accelerating the shift toward integrating
renewable energy into their power grids. Therefore, to accelerate “energy transformation
for society,” it is essential to replace equipment run by fossil fuel with electrical equipment
at the demand-side power management; in other words, to accelerate electrification.
As a first example, a hot water heat pump system is an efficient heating solution that cancapture heat energy from the ambient air and run with little electricity. This hot water heatpump system can be applied to new houses as well as to existing houses equipped withan oil or gas boiler, commonly used in Europe. Furthermore, this system can be installed
without replacing existing pipes.
In addition, shifting to electrification will contribute to the dissemination of renewableenergy through such means as- increasing opportunities to use electricity from renewable energy source,- converting and storing unstable renewable electricity sources in the form of hot water,- and reducing the burden on the power grid.

•

As a second example, let me explain our initiatives in effectively using energy without
wasting it. Toward the gradual shift to a carbon neutral society, we are making efforts toefficiently use waste heat from factories and thermal energy generated by a cogeneration
power system with our absorption chiller system. The absorption chiller system uses heatas a power source to run a cooling operation. And it can use waste heat from various
sources. Furthermore, the system uses water as a refrigerant. Therefore, there is noconcern about emitting greenhouse gases, including CFC (chlorofluorocarbon), into theatmosphere.
Our experimental case study at a Panasonic facility demonstrated a 17% reduction in
CO2 emissions in combination with a cogeneration power system using gas.
In the future, we will be able to contribute further reductions in CO2 emissions bysourcing power from renewable energy such as hydrogen fuel cells. We are alsoplanning to carry out effective use of waste heat in our group facilities as well as propose
these solutions to a wide range of our customers, such as hospitals, public facilities, andfactories.
© 2022 Panasonic Corporation8•

Next, I would like to discuss our contributions to the expansion ofenvironment-friendly vehicles. Our basic strategy in the automotive battery
business for environment-friendly vehicles is to thoroughly enhancecompetitiveness in battery capacity, cost, and supply capability. The “4860”
cell, which has a higher capacity, is widely considered the next mainstream
cylindrical-type battery. Panasonic will continue to build its strengths in
high-quality and high-safety batteries and to achieve industry-leading costcompetitiveness by thorough productivity improvement.
Furthermore, we installed a new production line at the North America
factory in August 2021 to meet sharply increased demand for the current
main product, the “2170” cell. Through these efforts to increase
competitiveness, Panasonic aims to take thorough initiatives to makecontributions to the proliferation of environmentally-friendly vehicles, andreduce environmental impact with a total approach, from re-use torecycling, which I will elaborate on the next slide.

•

Finally, let me explain our initiatives to explore new ways of expanding
renewable energy with full-fledged utilization of hydrogen. We will begin
testing our RE100 solutions with hydrogen technology in spring 2022 at theKusatsu Factory in Shiga Prefecture, where we produce fuel cell systems.
This RE100 solution consists of the combination of a pure hydrogen fuelcell generator, solar power generation, and a lithium-ion storage battery.
Currently, its system uses hydrogen derived from fossil fuels. However,through these new approaches, we could also accelerate initiatives for
suppliers who produce hydrogen from renewable sources.

•

We continue to increase our contributions to reducing CO2 emissions.
Consequently, we will make greater contributions to achieving a carbon
neutral society.

© 2022 Panasonic Corporation

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•In this slide, I would like to explain our contributions to a “circular society,” inparticular the use of natural resources, which is another important factor in solving
global environment issues along with energy transformation.

•

Panasonic has been expanding the use of recycled resin, a material widely used inhome appliances, through the recycling of home appliances. These initiatives help toreduce the waste of resin. More specifically, our unique technologies are capable ofsorting shredder residue of discarded home appliances into three major types ofresin at a material purity of over 99%. These recycled resins are processed torecover their chemical properties and to increase their life span, which are required
for new products, while applying our unique know-how in compounding and adding
new materials. In addition, we have been expanding the use of recycled resin byimproving the quality of all processes surrounding the circularity of natural resources,from securing a stable supply of recycled resins to establishing technologies for use
in products. Through these efforts, we used approximately 110 thousand tons ofrecycled resins in our products for over the past seven-year period, from 2014 to
2020.

•

Next, our initiatives toward a circular society in batteries. Lithium-ion batteries usedin environment-friendly vehicles are being collected and recycled according to theregulations of each country. In this particular recycling process, we arestrengthening our initiatives for both the reduction of loss in manufacturing
processes and the collection of the products in their end-life phases. Furthermore,from a circular society perspective, we intend to elongate repeat-use battery life, inother words, to improve the cycle counts of batteries.
Leveraging its accumulated expertise since the development of Lithium-ion batteries,
Panasonic is continuing to develop unique charging/discharging control technologies
according to individual battery characteristics as well as the conditions of usage.
These technologies will enable us to prevent aging deterioration and to prolong
battery life.

•

These initiatives represent just one way in which Panasonic is actively engaged. We
will continue to make our contributions in various fields as soon as possible, and asmuch as possible, without leaving global environment issues to the next generations.

© 2022 Panasonic Corporation10•

Next, I will introduce examples of initiatives toward achieving well-being in thelifestyle of people who live and work in society.

•First, the Yohana service, which started in the U.S. in September 2021, offers
personal assistant service to support busy families. Designated experts lighten
the customers’ load by providing solutions that tackle the to-do list and makethings easier in everyday life.
Using AI, the designated real-human assistant can efficiently offer support by
giving suggestions that anticipate each customer’s actual needs.
The assistant also works with local experts in various fields to help the customer
create valuable time for more meaningful moments, raising the quality of
everyday life. We offer a lifestyle enriched with more room in one’s mind.

•

Second, is our town-developing initiatives.
In China, the aging of society is accelerating, with the population aged 65 andabove reaching 190 million. We are engaged there in a town-developing
business for the elderly, in cooperation with a local partner.
We support each individual and offer a lifestyle enriched with long-lasting healththrough services based on automatically measuring the health conditions ofresidents in day-to-day living:- Automated control of residential space for comfortable sleeping andrelaxation,- face-to-face consultation with concierges, based on health condition data,
and- prediction of possible decline in physical and cognitive functions.
•

By offering “more room in one’s mind” and a healthier lifestyle, we will support
the well-being of people.
© 2022 Panasonic Corporation

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•
•

•

•

Next, let’s look at examples of providing well-being in workstyles.
By using Blue Yonder’s high-level data analytics to visualize and optimize thelinks in the overall supply chain, we can continuously generate a big
improvement cycle. Combining this cycle with Panasonic’s unique competitiveedge devices, which are cultivated by staying close to many manufacturing
gembas, or operational frontlines, we will further accelerate the improvement of
the gembas to become more autonomous and stronger through digitaltransformation.
Thus, we expect to make conventional operations significantly more efficient,
allowing the people who work there to become engaged in more creative
activities.
In addition, we can solve management issues such as the aging workforce andlack of successors of those who have been supporting the gemba, as well asbasic labor shortages. We can also contribute to saving natural resources andreducing food waste.
Another example is a demonstration office set up in our Shiodome Building inTokyo called “worXlab,” where our employees are actually working.
The aim is to create workplaces conducive to the new normal.
We aim to offer a more comfortable and healthier work environment by
optimizing the work space from the perspective of human beings.
This will be done through the acquisition and analysis of a variety of data:- Human data: vital signs, location information, and conversation behavior;- Environment data: CO2 concentration levels, temperature and humidity; and- Facility data: the actual use of equipment.
At this Shiodome Building, we will refine the solutions we can offer, and thenmake proposals to our corporate customers.
We will make contributions to support well-being in workstyle with a safe,
comfortable, and worker-friendly gemba.

© 2022 Panasonic Corporation

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Earlier in my presentation, I said we must support the well-being of each
employee at Panasonic if we are to achieve contributions to society and thewell-being of our customers as well as to enhance our competitiveness in thesefields.

•Panasonic has approximately 240 thousand employees globally, with diverse
personalities and capabilities. Our responsibility is to strike an ideal balance
between workstyle and lifestyle for our diverse human capital.

•

Specifically, we aim to introduce a 4-day work week as an option. This willallow us to flexibly accommodate the various situations of our employees.
Moreover, we aim to introduce a work-from-home system to retain employees,
whose partners are transferred to other locations. These changes are subject
to discussion at each operating company and consultation with the labor union.

•

Furthermore, we aim to revise the appraisal system as well as the promotion
and screening systems. This will allow us to achieve a balance between
workstyle and lifestyle for those who wish to take up challenges.
At Panasonic, I regret to say that the percentage of female employees inpositions of responsibility is pretty low, compared with the percentage of overall
female employees in our group. The reality is that many of our female
employees, under current conditions, find it difficult to take up challenges.
For example, some female employees encounter excessive burdens inpromotion and screening. Therefore, they just give up under such trying
conditions. We should and will change these conditions as soon as possible.

•

Today, I highlighted a few examples of our initiatives.
We aim to make Panasonic a group in which every employee feels they candemonstrate their individual capability to its fullest extent. In addition, we will
adopt a more flexible HR system and support employees according to eachbusiness environment. By doing this, we can increase our competitiveness asa group with our diverse employees.

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•Finally, I will explain the type of governance that supports sustainability
management.

•

From next fiscal year, we will transition to our new medium- to long-term
strategy, focusing on sustainability.

•

The operating companies are currently discussing hypothetical strategies
based on solutions to societal and environmental issues envisaging
a 10-year horizon, and on the measures needed to materialize thesesolutions. And, with a sense of speed, they will not wait for the new fiscal
year if anything can be started immediately.
In addition, we will eliminate waste and stagnation at all gembas to speed up
businesses, in other words thoroughly enhance operational capabilities.
With significantly increased empowerment and responsibility, each operatingcompany will execute more wide-ranging autonomous management as anindependent entity.

•

The holding company will ensure and support the operating companies’
non-financial KPIs to enhance competitiveness, that is, competitiveness KPIs.
Management of the holding company, including myself, will participate ineach operating company’s board meetings for more thorough discussions.
In addition, the Sustainability Management Committee, which I chair, will
discuss topics that need to be addressed Group-wide, based onrequirements from stakeholders outside the company such as ourshareholders. These topics involve environmental and societal issues inparticular. And we will ensure and support that the measures developed
through those discussions get the support they need.
In terms of remuneration of board members and executive officers of theholding company as well as the heads of operating companies, this will belinked to an evaluation made from the perspective of sustainability.

© 2022 Panasonic Corporation

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•

Today, I have shared our vision and our values in management.
Although we may not have explicitly used the expression “ESG” in pastcommunications, you can now understand that ESG management has
always been at the core of our management philosophy.

•

Returning to our inherited Basic Business Philosophy is exactly about
conducting sustainable management, while we also make our utmost efforts
toward achieving a sustainable society: “an ideal society with affluence bothin matter and mind.“•

Each of our business makes different contributions to customers and society.
However, we all share the same Group-wide goal of achieving “an ideal
society.”
We will strive to make contributions to each customer attaining their suitable“an ideal lifestyle” and “an ideal workstyle,” and also to the global
environment.
Through these efforts, we will return the profit earned as a result of suchvalued work to society, which would lead to enhanced corporate value fromthe perspective of stakeholders as well as enterprise value in financial terms.

•

Thank you very much for your kind attention.

© 2022 Panasonic Corporation15

© 2022 Panasonic Corporation