Group Strategy Briefing
Yuki Kusumi, Group CEO
Panasonic Holdings Corporation

May 17, 2024
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “Fiscal 2024” or “FY3/24” refers to the year ended March 31, 2024. In addition, “Fiscal 2025” or “FY3/25” refers to the year ending March 31, 2025.

Final year of Medium-term Strategy

Management Indicators: Cumulative operating CF:
KGI
2.0 trillion yen (FY3/23-25)
FY3/25 (e)Achieved

Challenges✓ To be achieved

ROE: 10% or more

Cumulative OP:
1.5 trillion yen (FY3/23-25)

× To be unachieved × To be unachieved

Management emphasizing cash flows is taking roote.g. Avionics, Automotive Cockpit Systems

Unable to generate profit in Group’s investment areas
Automotive batteries & A2W: Significantly short of goal due to unexpectedchanges in market

Largely behind targets in businesses expected to help
Groupwide profitability
Competitiveness enhancement not reached to expected level in certain
businesses, faced tough market conditions

Targeted profitability not reached in many businesses, in particular, investment areas;
Unable to meet expectations by stakeholders, including shareholders & investors
1© 2024 Panasonic Holdings Corporation

Groupwide Focal Initiatives for Final Year of Medium-term Strategy

Strengthen business foundations of investment areas- Automotive batteries: Aim for management structure to ensure sustainable double-digit ROIC
(including IRA) from FY3/28 onward- Air quality & air-conditioning: Continue to enhance competitiveness in preparation for demand growth- SCM software: Continuous transformation of Blue Yonder (BY) toward a proactive stanceBusiness Portfolio Management (PFM) & Financial Strategy- Rigorously manage each business based on its growth potential and capital efficiency;
Resolve issues from all businesses for improved profitability

Continue enhancement of Groupwide management structure- Human capital management- Operational Frontlines Innovation / PX (accelerate enhancement of competitiveness)

Determined to improve profitability Groupwide2© 2024 Panasonic Holdings Corporation

Strengthen Business Foundations ofInvestment Areas

Automotive Batteries: Changes in Market Conditions• Shift to EV expected to continue globally from long-term perspective,
while temporary slowdown of growth in North America• Transition of battery platform continues with technological evolution
Slowdown factors of EV market growth in North
America- Still unable to reach battery costs suitable for EVs in affordable
price range- Insufficient infrastructure for EV charging stations- Easing of proposed rule for US Multi-Pollutant Emissions
Standards (starting with model year 2027)

Growing expectation for safety features ofcylindrical / prismatic lithium-ion batteries- Cylindrical-type (nickel-based): adopted for EVs with longer range- Prismatic-type (iron phosphate-based): adopted for EVs withhigher priority on cost4

© 2024 Panasonic Holdings Corporation

Cylindricaltype

Pouchtype

Pouchtype

Cylindricaltype

Prismatictype
Initial assumption(2022)

Prismatictype

Current assumption

Outlook for North America EV market in 2030
(Estimated by Panasonic)

Automotive Batteries: Establishing Foundations for Stronger Competitiveness(Size of circle represents GWh)Strengthen customer base
- Establishing strategic partnership with SUBARU and Mazda- Signed supply contracts with Lucid and Hexagon Purus

Improve productivity- Nevada factory: Improve by over 15% (FY3/31 vs. FY3/24）
through continuous initiatives- Kansas factory: Improve labor productivity by over 30%
compared with Nevada factory, expected tostart mass-production during FY3/25- Osaka factory : Improve labor productivity by over 35% (FY3/29(Suminoe & Kaizuka)
vs. FY3/23) through labor-saving initiatives

For North
America（Over 99%)

For Japan（Over 80%)

2023

2030

Capacity & destination of Japan production

Evolve technological foundations- Operation of R&D site & manufacturing technology site
- On track for 4680 cell development, plan to start mass-production
in FY3/25 2Q
Kansas factory (As of April 2024)

Build management structure to ensure sustainable double-digit ROIC (including IRA)
from FY3/28 onward; Future investment strategy to be decided flexibly and judiciously,according to customer demand5© 2024 Panasonic Holdings Corporation

Air quality & air-conditioning: Air To Water (A2W*) in Europe
Ride the wave of growth by acting before large-scale market growth
Outlook for A2W market in Europe

Slowdown in growth due to normalizationof gas prices, revision of subsidy policy invarious countries

Initial assumption
Current assumption

In Europe, a leading market inenvironmental regulations, gas boiler
phase-out will occur with certainty
FY3/23

FY3/24

FY3/25

FY3/31

Medium- to long-term demand expected to grow toward 2030-

Macro environment: Recovery in consumer spending due to expected lower inflation and interest rates-

Environment regulations: Full phase-out of gas-boiler installation in various countries• Implemented: Germany, the Netherlands, Austria• Anticipated: Ireland

Continue to enhance competitiveness in preparation for demand growth* Air To Water: Air to Water heat pumps, shower, etc.
6

© 2024 Panasonic Holdings Corporation

Air quality & air-conditioning: Air To Water (A2W) in Europe

Strengthen business partnership with installers- Expand sales channels through collaboration with energy providers and utility companies in key markets
aiming to increase market-share (e.g., Germany, France)- Provide predictable maintenance/breakdown services for installers and maintenanceservice partners to improve their work efficiency- Provide loan schemes and subscription-type business models to maximize sales opportunities

Strengthen product competitivenessCompact model• Offer industry-leading* compact model (70% of existing models)
１ • Advantages with space-saving and improved installation workability
2 • Integrated control of A2W, other indoor-units and heat exchanger unit
• Provide comfortable indoor-air environment (collaboration with INNOVA)

3• Control A2W and indoor-unit with smart thermostat• Reduce 30% energy costs at home (collaboration with tado°)

Increase market share with product value that’s also beneficial to installers* For multi-unit housing and light commercial area (As of April 2024)

7© 2024 Panasonic Holdings Corporation

SCM Software: Continuous Transformation of Blue Yonder
Aim to revolutionize SCM solutions while continuously strengthening business foundations
Continue to strengthen business foundations (3-year cumulative strategic investment of USD 200M)- Improve product competitiveness with R&D enhancement
1st version of Native SaaS*1 product released (December 2023)

1.6
times

1.5
times

- Enhance customer contacts
Start of collaborations with Snowflake and Accenture
50% increase in frontline-marketing & sales personnel

$446M

$667M

$50M

$82M

Adding capabilities through M&A

FY3/22
2Q

FY3/244Q

FY3/23

FY3/24- Acquisition of Doddle (return management) and Flexis (planning)

SaaS ARR*2

Adjusted operating
profit in real terms*3

Create synergy with Panasonic Group- Implemented “yard management solutions” for Penske Logistics- Collaboration with Rapyuta Robotics’ “warehouse efficiency” and Blue Yonder’s solutions*1 Software as a Service *2 Annual Recurring Revenue (ARR) *3 Adjusted operating profit (BY stand alone) excluding additional strategic investment
8© 2024 Panasonic Holdings Corporation

SCM Software: Achieve Overwhelming Competitive Advantage
Unify Blue Yonder’s “Supply Chain (SC) Optimization Technologies” with highdegree of accuracy and One Network’s “Digital Supply Chain Platform (PF)”Create synergy effect-Optimize multi-tier SC through PF by utilizing BY’s
optimization technologies with high degree of accuracy• Demand Forecast &Planning• Supply Planning• Production Planning• Warehouse
Management (WMS)• Digital Fulfilment• Return Management• Inventory Optimization• Sales Planning (S&OP)• Transport Management(TMS)

Logistics-

Expand PF to over 3,000 customers of Blue Yonder(including industry-leading companies)

Logistics

Increase Blue Yonder’s Internal TAM by 1.3 times

Logistics

Logistics

Logistics

Logistics

Logistics

Note: TAM (Total Addressable Market) : Maximum market size (own estimate)

Orchestration of supply chain data on one platform with real-time,
multi-tier and multi-enterprise network

Aim for growth as a provider that can offer SCM platform with real-time andmulti-tier orchestration capability
9© 2024 Panasonic Holdings Corporation

Business Portfolio Management &Financial Strategy

Business Portfolio Management(1) Relevance to Groupwide common strategy“Contributions to global environment”“Contributions to each customer’s life-long health, safety, and comfort”(2) Market position & competitiveness
Assess each business’ position & profitability with expectation of market growth＋(3) Best-ownership perspective- Whether Panasonic Holdings Corporation (PHD) can take necessary
actions on the business’ most important issues- Whether PHD can make necessary growth investments, if the businessneeds more cash than it can generate- Whether PHD can evaluate the business’ quality and competence11© 2024 Panasonic Holdings Corporation

Best-ownership Perspective: Case of Panasonic Automotive Systems (PAS)
Automotive industry facing biggest transition in 100-year history
Shift to electrification & software-defined vehicle*: Rapid technological innovation

Significant
opportunity ofcontribution• Automotive Cockpit High
Performance Computer (HPC)• EV power electronics

Significant change inindustry & competitive
landscapePanasonic Automotive Systems
Continuous
investment needed
for growthBiggestchallenge

Inability to leap forward to
become a top global player:
Shrink or withdraw

Reached final partnership agreement with Apollo
from a best-ownership perspective- Maintain/strengthen relationship with customers, suppliers, and employees- PHD and PAS to start a new relationship toward maximizing corporate value of each other(e.g., use “Panasonic” in company name & brand, personnel exchange, effective use of assets & services,cross selling & business alliances with Group companies)* Vehicles that can be continuously upgraded after sales (e.g., adding new features and functionality) with software controlling vehicle through connectivity
12© 2024 Panasonic Holdings Corporation

Thorough Discipline with Cash & ROIC
Rigorously manage each business based on cash and return on invested capital(ROIC) to establish a strong financial & profitability structure
Implemented

To be strictly managed from FY3/25

Cash-oriented discipline(operating company basis)

ROIC-based discipline(business division basis)- Monitor operating company’s cash-flow
management based on “Net Debt/EBITDA ratio”- Detect financial deterioration at early stage:
Improve cash or revise business policy＋ - Monitor business position & competitivenessbased on “growth x ROIC”- Businesses without growth potential and its“ROIC＜WACC by business” will be categorized
as “business with issues”; drastic measures
shall be executed

Number of “businesses with issues” to reach zero by end FY3/27
Aim for all businesses’ ROIC levels exceeding “WACC by business +3% points”
13© 2024 Panasonic Holdings Corporation

Capital Allocation Policy (FY3/23 – FY3/25)
Unchanged policy of “investment, dividends, etc. to be managed withincash generated through businesses”
CF generation

CF allocation
Dividends
0.2 tr. yen

Dividends

Financial discipline

Cumulative
operating CF
2.0 tr. yen- Net Debt/EBITDA ratio: approx. 1.0 times (FY3/24 results: 0.6 times)

Investment
Sale of assets, etc.＊2*2: Including sale of assets (e.g., sale of businesses) anticipating cash-in during FY3/23 - FY3/25

14© 2024 Panasonic Holdings Corporation

Operatingcompany’s
investment
for growth,
etc.
1.3 tr. yen

Groupwide
strategic
investments
0.6 tr. yen- Strategic investment: Focus on automotive battery business,priority investment area

*1: Allocate cash from IRA tax credit to investment in US automotive battery business, considering the aim of IRA.
Dividends determined based on amount of net profit excluding impact of IRA tax credit

Investments- In principle, distribute profits to shareholders based on
business performance and strive for stable and continuous
dividend payments. Target dividend payout ratio of
approx. 30% with respect to consolidated net profit*1

Others 0.1 tr. yenEnhance Management Structure of the GroupPanasonic Group Human Capital Management
As a company that develops people before making products,
we aim to create the best workplaces with a sense of fulfillment
enabling diverse employees to make the most of their skills
Ideal society with affluence both in matter and mind
Autonomous responsible management
Groupwide common vision:

Implementation of BasicBusiness Philosophy (BBP)

Employee entrepreneurship

Participative management throughcollective wisdom

Sense of autonomous responsibility

Culture of open discussion

Individuals taking up challenges

Workplace culture of collective wisdom

Work based on Panasonic Leadership Principles(PLP: guideline of conduct to implement BBP)
Groupwide human resources strategy:

Employees’ Well-being

A state in which each employee is in good health, both mentally and physically, andfeels happy and fulfilled in their work through opportunities to take on new challenges
Work with a sense of fulfillment

Work together by giving
full play to all individuality

Work in a safe, secure, and healthy state16© 2024 Panasonic Holdings Corporation

Toward Management that Maximizes Potential of Each Employee
Employees Well-being

Work with a sense offulfillment
Work together bygiving full play to allindividuality
Work in a safe, secure,and healthy state- Expand transfer/assignment system by open recruitment to further support autonomous
career design- Nurture personnel with data & technology expertise to overcome challenges at frontlines
Training for all employees / PX Ambassadors / PX contests at each site
- Expand options for work time and place to support each employee’s continuous careerdevelopment (e.g. employees engaged in nursing care/childcare, having disabilities)- Top management commitment of diversity target to realize an organization with diversity- All operating companies certified as KENKO Investment for Health Outstanding
Organizations Recognition by Japan’s Ministry of Economy, Trade and Industry- Paid leave for illnesses to support employees dealing with diseases (e.g., cancer, stroke)

Implementation of
Basic Business
Philosophy-

PLP incorporated in each measure of HR management (e.g., recruitment, development, promotion,transfer/assignment)-

PLP-based 360-degree assessment applied to management & business heads
Customer Focus Drives Vision Builds Trust
Strategic Thinking and Behavior Best Work Processes
Ownership Evolution Harmonizes Wisdom
Welcomes Uniqueness and Differences People First Drives Results“HR strategy” included in evaluation items (KPIs) for management &business heads, so they will strongly implement it
17© 2024 Panasonic Holdings Corporation

Toward Management that Maximizes Potential of Each Employee:
Case of HR Management System at Panasonic Industry
Implement effective initiatives to unlock employees’ capabilities/potential;
Change the mindsets and behaviors of middle managers/employees(1) Elevate level of internal
recruitment system

1on1

Target setting- Open recruitment that encourages taking
up challenges: visualization of work,
voluntary application

1on1(More than 1,000 transfers since Nov. ’22)

- “Career Action Program” (Since Jun. ’24)
Understand relationship between management/
personnel strategy and individual career, tolink individual requests and company vision

Development/
supportDefined“Role & HR
Requirements”

Assignment
1on1

1on1

Evaluation/
reward(3) Support middle management/
employees- Practical management training for GMs andManagers
FY3/24: Approx.1,300 (all GMs and Managers)- “PID GMs & Managers Network” (FY3/25 2H)
Establish a mutual complementary network among
management level(2) Revised compensation/reward system- Organize grading/reward system from both management/specialist-perspectives (FY3/25-)
Expand career options: make use of one’s expertise, not bound by one’s current role

Leverage Panasonic Industry’s HR as a precedent to advanceGroupwide human capital management18© 2024 Panasonic Holdings Corporation

Operational Frontlines Innovations
Corporate culture encouraging challenges to theoretical limits taking root;
Cash flow generation capability supported by enhanced operational
capability at each business

Firmly embed kaizen mindset- Constant kaizen activities have been embedded at 124 sites globally (target: 220 sites);
Foster/Nurture designated specialists and lead kaizen activities- Reduced lead time: Cash generation of 23.0 billion yen*1 through streamlining ofoverall supply chain- Cost reduction: Profit contribution of 28.7 billion yen*1 through streamlining ofengineering chain*2

Utilization & evolution of digital technologies- Developed 4 kaizen tools with image recognition & AI technologies:
visualization of wastefulness & stagnation- Streamlined data of the frontlines: Visualization at factories, regions, operational layers;
Enabled swift decision-making: Frontlines kaizen elevated to management kaizen

Aim to embed constant kaizen activities at all sites by end FY3/25*1: Cumulative amount including initiatives before starting in FY3/23
19*2: Operational processes mainly design (e.g., product planning/design, production preparation/production)© 2024 Panasonic Holdings Corporation

PX (Panasonic Transformation)
Groupwide “Process standardization”, “Data utilization”, “HR enhancement”“Smart Lab”

Digital transformation of “development”, “manufacturing”
and “sales”- Development: Reduce burden for simple/repetitive experiments with
“Smart Lab” (Panasonic Industry)
Remote & automated experiments to find optimal materials & process
conditions

Planning
Automatic planning AI
Results
Feedback
Experiments & evaluation

Fully automatedlaboratory- Manufacturing and sales: Integrated ERP in China (15 sites / 3 years),
Enhancement of management in China through standardization ofvarious local processes- Achieved improvement in operational efficiency & productivity at eachsite, reduction of manufacturing losses

Use of generative AI (data utilization, HR enhancement)

Plan
Input
Setting* MI: Material Informatics

Material/Process
DesignMI・PI*
PI: Process Informatics

PX-AI Usage by Type
9%

10%

37%
37%

Programming related
Research
Brainstorming/Idea generation
Drafting documents
Others- Introduced generative AI ahead of others by taking mitigating risks, even as many companies hesitate to
introduce it. Further understanding and instilling AI within Panasonic Group will lead to high-level of usage
and contribute to increased value we can offer to customers.

Aim for continuous transformation and strongly promote “PX”= DX, which is
unique to Panasonic20© 2024 Panasonic Holdings Corporation

Today’s SummaryGroupwide investment areas:
Strengthen business foundations in preparation for expected market expansion- Automotive batteries: Aim for management structure to ensure sustainable
double-digit ROIC (incl. IRA) from FY3/28 onward- Air quality & air-conditioning: Continue to enhance competitiveness in preparation for
demand growth- SCM software: Continuous transformation of Blue Yonder (BY) toward a proactive stanceBusinesses expected to help Groupwide profitability:
Thorough ROIC discipline;
Number of “businesses with issues” to reach zero by end FY3/27

Determined to transform profitability structure
toward medium- to long-term growth21© 2024 Panasonic Holdings Corporation

Disclaimer Regarding Forward-Looking Statements
This presentation includes forward-looking statements about Panasonic Holdings Corporation (Panasonic HD) 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 be materially different from any future results,
performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic HD undertakes no obligation to publicly update any forward-looking
statements after the date of presentation. Investors are advised to consult any further disclosures by Panasonic HD 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 theAmericas, Europe, Japan, China and other Asian countries; occurrence and continuation of supply disruption or soaring prices of raw materials or transportation; 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 Group’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 including interest rate fluctuations; 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; thepossibility 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 other collaborative 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 Group highly depends on in BtoB business areas; the possibility of not achieving
expected benefits in connection with the transition to a new organizational system in which Panasonic HD is a holding company; the possibility of the Panasonic Group not being able tomaintain competitive strength in many product and geographical areas; the possibility of incurring expenses or losses resulting from any defects or quality frauds in products or servicesof the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement by third parties or intellectual property infringement claims by third parties; thepossibility that change or tightening of current and potential, direct and indirect restrictions imposed in Japan or other countries over trade, manufacturing, labor and operations may
adversely affect business operations of Panasonic Group and its supply chain; failures in proper tackling of regulations and policies introduced or strengthened with respect toenvironmental issues including climate change or responsible procurement activities (human rights, labor, health and safety, global environmental conservation, information security,
corporate ethics, etc.) in the supply chain; restrictions, costs or legal liability relating to introduction or tightening of laws and regulations; fluctuations in market prices of securities andother 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 a leakage of customers’ or confidential information fromsystems of Panasonic Group or its supply chain, service suspension or vulnerability of network-connected products due to unauthorized system access and cyberattacks etc.; thepossibility not being able to acquire the necessary human resources to promote management strategies and prevent the outflow of existing employees; the possibility that the spread of
infections including the novel coronavirus infections may adversely affect business activities of the Panasonic Group; volatility in demand for electronic equipment and components frombusiness and industrial customers, as well as consumers in many product and geographical markets; occurrence of events that may negatively impact business activities of the PanasonicGroup, including large-scale natural disasters, prevalence of infectious diseases throughout the world and terrorism or wars. The factors listed above are not all-inclusive and further
information is contained in the most recent English translated version of Panasonic HD’s securities reports under the FIEA and any other documents which are disclosed on its website.