New Mid-term Strategy

May 9, 2019
Panasonic Corporation

Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “Fiscal 2020” or “FY20” refers to the year ending March 31, 2020.

Review of Previous 3-year Period
New Mid-term Strategy

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

Review of Previous 3-year Period
Aimed at sustainable growth by focusing on automotive-related
business, however profit stagnatedProfitability deteriorated in automotive-related
businesses, which were expected to serve as
growth drivers

Highgrowth

AutomotiveSales(yen: billions)
Effect of
Exchange
rates
7,982.2

Highgrowth

Despite sales expansion, R&D expenses
significantly increased

LowStable- profitable
growthOthers8,002.7
7,900.0

Automotive cylindrical batteries
Lacked ability to address risks associated with rapid
growth scenario

FY18

FY19

Operating Profit* *Excluding other income/loss(yen: billions)

Profitability declined in businesses which wereexpected to support stable profits

StablegrowthDifference from
FY19 initial forecast-133.060%
difference

Effect ofExchange
rates

Consumer Electronics
Sluggish profitability except in Japan and China

401.2*

20%

Housing
Highgrowth StablegrowthProfit struggled to grow due to weakened sales mix

Lowprofitable

Lacked sense of speed in structural reforms

FY1820%

Others327.0*
300.0*

Lowprofitable* Operating profit – other income/loss (= profit generated from business)
FY18:
380.5 – (-20.7) = 401.2
FY19:
411.5 –84.5 = 327.0
FY20 (e): 300.0 ± 0 = 300.0

New Mid-term Strategy

Review of Previous 3-year Period
New Mid-term Strategy

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

FY20 (e)FY19

FY20 (e)2Outline of New Mid-term Strategy

Thoroughly
strengthening
management
structure

Aiming toward“Lifestyle Updates”

Reduce fixed costs toward100.0 billion yen profit contribution;
Carry out selection
and concentration of businesses

Become a Company
that achieves “Lifestyle Updates”
reflecting ongoing socialtransformation

Executingportfolio
management

Achieve both profit growth andimproved profitability bytranscending the boundaries of
the Company and organizations
with new business classifications

4

New Mid-term Strategy

New Mid-term Portfolio Business Classification
Drastically revise business directions and policies for resource investment

High-growth

Stable-growth

Low-profitablebusinessbusinessbusiness

Previous・For High-growth business, sales expanded but profit did not increase as expected・For Stable-growth business, could not allocate enough resources, hurting competiveness
Consequently, it became difficult to generate stable profits

Newclassifications

Core growth

Revitalization

Co-creation

businessbusinessbusiness・Drastically revise business direction
・Toward business development, consider ways of using
resources beyond the Company’s own resources
New Mid-term Strategy

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

5New Mid-term Portfolio Business Classification
Achieve both profit growth and improved profitability by transcending theboundaries of the Company and organizations with new business classifications
Spatial Solutions

Core growthbusiness

Expand solution-type businesses
FY2020Gemba Process

Sales
4.2 trillion yen

Increase profit

Industrial Solutions

Revitalization Automotive Solutions
business

Improve
profitability

Automotive Batteries

Co-creation

ConsumerElectronics

EnhancecompetitivenessHousingbusiness

Operating Profit*
280.0 billion yen

EBITDA**
390.0 billion yen* Excluding other income/loss

Focus on areas where we have advantage

Enhance competitivenesswith regional- and business-collaboration** EBITDA: Earnings Before Interest, Taxes,Depreciation and Amortization

6New Mid-term Strategy

Core Growth Business for New Mid-term
Decision-making criteria: Raison d’être, competitiveness and business environment

Megatrends & changes in society
Help solve issues

Social issues
Urban population upsurge

Technological evolution

Workplace productivity challenges

Spatial Solutions

Gemba Process

Industrial Solutions

Offer comfort for living spaces

Innovate ways to“produce, transport and sell”

Develop systems with competitivedevices as the core

Raison d’être:Offering solutions to social issues
New Mid-term StrategyCopyright (C) 2019 Panasonic Corporation All Rights Reserved.

Competitiveness × Business environment
7

Core Growth Business for New Mid-term
Achieve growth with strong business foundation and evolution of business model

Spatial Solutions
・ Expand customized solutions business with original BIM* + key products
・ Strengthen foundation by expanding overseas sales* BIM or Building Information Modeling is a system for utilizing database for abuilding across every process including design, construction, and maintenance.

Gemba Process

・ Provide consulting and solution services for issues at the Gemba
・ Strengthen recurring business by setting role models of solutions
business to apply horizontally

Industrial Solutions
・ Increase top-market-share products in the industry through further
enhancement of product competitiveness・ Expand systems/module products and provide suitable solutions meetingcustomer needs

Also consider inorganic investment to strengthenorganizational capabilities in areas such as software
8New Mid-term Strategy

Core Growth Business for New Mid-term
Proactively shift resources and drive Company-wide profit growth
EBITDA structure**Transition in EBITDA* (Core growth business total)(yen: billions)Co-creation

FY20Core growthApprox.
Spatial70%
Solutions
Revitalization

500

10.7% EBITDA margin
9.3%

10.0%

400

Gemba

Industrial Process
Solutions
Ratio is proportion of all 3 business classifications.
* EBITDA: Earnings Before Interest, Taxes,
Depreciation and Amortization.

0

Spatial Solutions

KPI

Ratio of B2B / Engineeringbusiness
Ratio of overseas business inoperating profit
New Mid-term Strategy

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

FY201720182019

Gemba Process
Ratio of recurring business insales

2020

2021

2022

Industrial Solutions
Ratio of top-market-shareproducts
Ratio of system products
9Revitalization Business for New Mid-term
Automotive Solutions &Automotive cylindrical batteries

Automotive prismatic batteries

Rebuild business andprioritize profit improvement

Integrate both strengths byestablishing JV**Announced on January 22, 2019

CEOKusumiManaging
Executive Officer
CEO, Automotive
Company

Gebhardt

Sato

Executive Officer
CEO, US Company

Executive Vice
President

AutomotiveSolutions

Automotive cylindricalbatteries

Optimize R&D
resources

Strengthen management structureby improving productivity

No.1 technologicalcapability

No.1 manufacturing
capability

Accelerate R&D

Establish stablesupply structure

10New Mid-term Strategy

Co-creation Business for New Mid-term
Enhance competitiveness through co-creation in regions and partners
ConsumerElectronics
家電Housing

Strengthen competitiveness through joint effortsof Japan and China
Expand refined strengths to other Asian markets

Establish a joint venture with
Toyota Motor Corporation
Create new value of living in an entire town×China

JapanMission

New innovation by“Housing x Construction x town development”

OtherAsianmarkets

VisionBetter and more comfortable “living”
through home building and town development

Accelerate narrowing down ofregions and businesses
New Mid-term StrategyCopyright (C) 2019 Panasonic Corporation All Rights Reserved.

11

Enhance Management Structure/Optimize Senior Management

Thoroughly strengthen
management structure

Optimize senior management(October, 2019)

・Reduce fixed costs aiming at 100.0
billion yen of profit contribution•Radical measures to loss-makingbusinesses•

Improve efficiency in indirect
operations, etc.

Clarify responsibilities for
Company-wide management andmove toward a flexible businessexecution structure

・Selection and concentration ofbusinesses

12New Mid-term Strategy

Management KPIs

FY2022 onward
EBITDA* growth rate

5 – 10%EBITDA* margin

10% or more

ROE

10% or moreCore growthbusinessCompanywide*EBITDA：Earnings Before Interest, Taxes,
Depreciation and Amortization

Capital allocation policy
Allocate capital for Mid-term strategy with cash flow generated frombusiness (operating CF, divestiture)
Note: Respond flexibly when investment opportunities arise before sufficient
cash flow is generated from business
New Mid-term Strategy

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

13

目指す姿 「くらしアップデート」

Offer products & services

most suitable for each customer

New Mid-term Strategy

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

14

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 of 1933, 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 thecurrent 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 the PanasonicGroup'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. Panasonicundertakes no obligation to publicly update any forward-looking statements after the date of this presentation. Furthermore,
figures in the presentation, at the time of the disclosure, are under the review procedure based on Financial Instruments andExchange Act. Investors are advised to consult any further disclosures by Panasonic in its subsequent filings under theFinancial 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, particularlyconsumer 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
in many product and geographical markets; the possibility that excessive currency rate fluctuations of the U.S. dollar, theeuro, 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 PanasonicGroup incurring additional costs of raising funds, because of changes in the fund raising environment; the possibility of thePanasonic 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 not achieving expected results or incurring unexpected losses in connection with the alliances 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 beachieved 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 maintain competitive strength in many productand geographical areas; the possibility of incurring expenses resulting from any defects in products or services of thePanasonic 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 andoperations; fluctuations in market prices of securities and other financial assets in which the Panasonic Group has holdings
or changes in valuation of non-financial assets, including property, plant and equipment, goodwill and deferred tax assets;
future changes or revisions to accounting policies or accounting rules; the possibility of incurring expenses resulting from aleakage of customers’ or confidential information from Panasonic Group systems due to unauthorized access or a detectionof vulnerability 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 the Panasonic Group. The factors listed above are not all-inclusive and further information iscontained in the most recent English translated version of Panasonic’s securities reports under the FIEA and any otherdocuments which are disclosed on its website.

Reference: Relevance of Business classification and Divisional Companies

Classification

Core growthbusiness

Business areas

Appliances

SpatialSolutions

○

Gemba
Process○

Life
Industrial
Connected
Automotive
Solutions Solutions
Solutions

○○

○

○

○

Co-creation
businessUS○○

IndustrialSolutions

Revitalizationbusiness

China &NortheastAsiaAutomotive
Solutions○○

Automotive
Batteries○○

ConsumerElectronics○

Housing

New Mid-term Strategy

Copyright (C) 2019 Panasonic Corporation All Rights Reserved.

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