FY2017 Business Policy
March 31, 2016
Panasonic Corporation
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “fiscal 2017” or “FY2017” refers to the year ending March 31, 2017.

FY2016

1Panasonic Group FY2017 Business Policy

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY2016 towards FY2019
Completed restructuring
OP: ≧350 bil. yen
OPM: ≧5%
FCF: ≧600 bil. yen

Achieved Mid-term planahead of schedule

FY16

FY17

FY18

FY19

‘Sustainable growth’

Generate profit bysales expansion

Sales:10 tri. yen

A New PanasonicFY14-15- Six large-scale BDs* leading growth- Preparation and execution of strategic investment*BD stands for Business Division

2Panasonic Group FY2017 Business Policy

FY2016 Forecast
Ended with far below sales target
six large-scale BDs could not lead company-wide growth(Yen: billions)

FY16 (e)vs original plan

FY16 (original plan,
as of April 28, 2015)

Sales

7,550

-450

8,000

OP(%)

410(5.4%)-20

430(5.4%)

Net Income*(%)

180(2.4%)-180(2.3%)*Net Income attributable to Panasonic CorporationFigures are based on US GAAP

3

Panasonic Group FY2017 Business Policy

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

Unable to Improve Profitability by Sales Expansion<FY16 OP analysis>
as of April 28, 2015)

FY16 (e)FY16 (original plan,(Yen: billions)

430.0
381.9
Sales
expansion

Streamlining /Exchange ratebusiness structure
effectchange, etc.

FY16 (original plan)

FY15410.0

381.9
FY154

Restructuring
benefit

Salesdecline

Streamlining /Restructuring Exchange ratebusiness structure
effectbenefit

FY16 (e)change, etc.

Panasonic Group FY2017 Business Policy

FY2016 Summary
Not flexible enough to macro environment change
Improved management structure steadily
Proceeded investment for future growth

Stay with growth strategy to expand sales and profit
5

Panasonic Group FY2017 Business Policy

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Mid-Term Strategy

6

Panasonic Group FY2017 Business Policy

Towards Future
Panasonic continues to contribute to its customers
with slogan ofSales growth withprofitability

7Constant profit making

Panasonic Group FY2017 Business Policy

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

ConsumerElectronics
Housing

Deliver value widely toCreate new
growing businessend customersConsumer
Electronics
Housing

Automotive

Devices

Direction of Each Business Area

B2B
Ｂ２Ｂ
SolutionsContribute customers’competitivenessAchievehigh profitability

B2B
Devices
8Improve profitability withcompetitive devices

Devices

Automotive

Compete withspecialized manufacturers

Panasonic Group FY2017 Business Policy

Management Indicator by Business Area
Pursue profit growth depending on business direction by business area
ConsumerElectronics

Target from FY21 onward
OP Margin: ≧ 5%

Housing
Automotive

OP: 300.0 bil. yen and more

OP Margin: 10%
B2B

9OP: 300.0 bil. yen

Panasonic Group FY2017 Business PolicyCopyright (C) 2016 Panasonic Corporation All Rights Reserved.

Growth Strategy Fit for Business Characteristics
Achieve growth with optimal business portfolio(Sales scale)High growthbusiness

Concentrate resources
Lead company-wide sales andprofit growth

Steady growthbusiness

Stably expand sales and profit

Business withfurther profit
improvement required

Goal

FY1610Pursue higher profitability

Panasonic Group FY2017 Business Policy

Invest on High Growth Business
Further accelerate investment
continue to focus on high growth business with 1 tri. yen strategic investment
ConsumerElectronics
Housing

Automotive

B2B11- Expand ‘premium’ product lineup in targeted countries in Asia
- Strengthen product lineup and sales force in India and Africa- Expand operating sites for remodeling and ‘age-free’ (elderly-care)business in Japan- Accelerate urban development business in Asia
- Grow with next-generation cockpit system
車載- Strengthen ADAS and battery
business for further growth- Create new business pillars following Avionics and food-chain business

Panasonic Group FY2017 Business Policy

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY2019 Sales Target by Business Area
10.0
8.0

2.3ConsumerElectronics

2.0

2.1

2.0

Housing

1.4

Automotive

1.3

2.1

B2B
Solutions

1.3
1.3

2.0

Devices

1.3

2.3
1.6

2.5

B2B

2.9

FY16 (e)FY16(original plan)
12(Yen: trillions)

1.1

2.0
B2B

2.9

FY19 (e)FY19(original plan)

Figures are based on US GAAP

Panasonic Group FY2017 Business Policy

FY2019 Operating Profit Target by Business Area
Sales

OP

Consumerelectronics

2.3 tri. yen

Housing

1.6

Automotive

2.0

B2B

2.9

Consumer electronics,
Housing, Automotive:

300.0 bil. yen
B2B:

200.0 bil. yen

FY19 (e)Figures are based on US GAAP

13Panasonic Group FY2017 Business Policy

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FY2019 Group Financial Target
Focus on profit growth

OP:500.0 bil. yen

Net income*:≧250.0 bil. yen*Net Income attributable to Panasonic Corporation
Figures are based on US GAAP

14Panasonic Group FY2017 Business Policy

FY2017

15Panasonic Group FY2017 Business Policy

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY2017 Group Financial Target(Yen: billions)

FY17 (e)FY16 (e)y-ySales

7,500.0-1%

7,550.0OP(%)

375.0-35.0410.0(5.4%)(5.0%)*Figures are based on US GAAP

16Panasonic Group FY2017 Business Policy

FY2017 Financial Target Analysis
Prioritize investment towards future growth
Fixed cost
increase

410.0
Salesexpansion

Exchange Restructuring
rate effectbenefit

FY16 (e)(Yen: billions)Streamlining/businessstructurechange, etc.

375.0

FY17 (e)*Figures are based on US GAAP

17Panasonic Group FY2017 Business Policy

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FY2017 towards Future
FY17FY18

Lay foundation for growth

Both sales andprofit increase

Invest ongrowing business area

FY19

Constantly expand
both sales and profit

Upfront Investment /strategic investment: 1 tri. yen

18from FY21 onward

Panasonic Group FY2017 Business Policy

Copyright (C) 2016 Panasonic Corporation All Rights Reserved.

FuturePanasonic

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, andSection 21E of the U.S. Securities Exchange Act of 1934), as amended 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 and other factors may cause the Panasonic Group's actual results, performance, achievements or financial position to bematerially 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. 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 andindustrial 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 othertransactions 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 preferenceswith 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 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 other collaborative agreements with other companies, including due to the pressure of price reduction exceeding thatwhich 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 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 claimsby third parties; current and potential, direct and indirect restrictions imposed by other countries over trade, manufacturing, labor and operations; fluctuations inmarket prices of securities and other assets in which the Panasonic Group has holdings or changes in valuation of long-lived assets, including property, plant andequipment and goodwill, deferred tax assets and uncertain tax positions; future changes or revisions to accounting policies or accounting rules; the possibility ofincurring expenses resulting from a leakage of customers’ or confidential information from Panasonic’s 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 the Panasonic Group. The factors listed above are not allinclusive 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.
In order to be consistent with generally accepted financial reporting practices in Japan, operating profit (loss) is presented in accordance with generally accepted
accounting principles in Japan. The company believes that this is useful to investors in comparing the company's financial results with those of other Japanesecompanies. Under United States generally accepted accounting principles, expenses associated with the implementation of early retirement programs at certain
domestic and overseas companies, and impairment losses on long-lived assets are usually included as part of operating profit (loss) in the statement of income.

(Reference)

Segments and Business Divisions

Appliances
Air-Conditioner CompanyTV BD
Home Entertainment BD
Refrigerator BD
Laundry Systems and Vacuum Cleaner BD
Kitchen Appliances BD
Beauty and Living BD
Panasonic Cycle Technology Co., Ltd.
Refrigeration and Air-Conditioning Devices BD
Smart Energy System BD
Cold Chain BD
Hussmann Corporation

Eco Solutions
Lighting BD
Energy Systems BD
Housing Systems BD
Panasonic Ecology Systems Co., Ltd.

AVC Networks
Imaging Network BD
Storage BD
Visual Systems BD
Panasonic Avionics Corporation
IT Products BD
Security Systems BD
Communication Products BD
Office Products BD
System Solutions Company (Japan)

Automotive & Industrial Systems
Automotive Infotainment Systems BD
Automotive Electronics Systems BD
Rechargeable Battery BD
Energy Device BD
Panasonic Storage Battery Co., Ltd.
Electromechanical Control BD
Panasonic Semiconductor Solutions Co., Ltd.
Device Solutions BD
Electronic Materials BD
Panasonic Liquid Crystal Display Co., Ltd.
Smart Factory Solutions BD

OtherPanaHome Corporation

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As of April 1, 2016