Panasonic MIDTERM STRATEGY 20100507 Vision Data e

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1Copyright (C) 2010 Panasonic Corporation. All Rights Reserved.

Panasonic GroupNew Midterm Management Plan

May 7, 2010

Panasonic Corporation

Fumio OhtsuboNotes: 1. This is an English translation from the original presentation in Japanese.

2. In this presentation, “fiscal 2010” or “FY 2010” refers to the year ended March 31, 2010. In addition, “fiscal 2011” or “FY 2011” refers to the year ending March 31, 2011.

This presentation outlines Panasonic’s new midterm

management plan.

Today, I would like to present four main points:

1) Summary of GP3 Plan

2) New Midterm Management Plan

3) Midterm Strategy for Panasonic Group

4) Management Innovation that Supports Group Strategy




2

1. Summary of GP3 Plan

3. Midterm Strategy for Panasonic Group

4. Management Innovation that SupportsGroup Strategy

2. New Midterm Management Plan

ContentsContents

This section outlines the summary of GP3 plan.




3Summary of GP3 PlanSummary of GP3 Plan

“Unprecedented simultaneous global recession”

triggered by financial crisis“Market structural change”: shifting to low-priced products,

expanding emerging market demands, and moreenvironmentally conscious

Far below targets in sales and ROEAchieved target of CO2 emission reduction in production

(reduction of 840,000 tons compared to level of FY2007)

◆Far below GP3 sales increase targets in all strategic businesses(A: Appliance Solutions, B: Black Box Devices, C: Car Electronics,D: Digital AV Networks)

◆Far below GP3 sales increase targets in all strategic businesses(A: Appliance Solutions, B: Black Box Devices, C: Car Electronics,D: Digital AV Networks)

Four strategicbusinesses

Four strategicbusinesses

Manufacturing-oriented

innovation

Manufacturing-oriented

innovation

◆Lowered break-even point and reduced fixed cost

◆Failed to create new large-scale businesses

◆Lowered break-even point and reduced fixed cost

◆Failed to create new large-scale businesses

◆Far below targets in GP3 Plan

vs.GP3: Sales overseas total ：72% BRICs+V：73%

◆Far below targets in GP3 Plan

vs.GP3: Sales overseas total ：72% BRICs+V：73%

Double-digit growthin overseas sales

(Consumer & systems sales)

Double-digit growthin overseas sales

(Consumer & systems sales)

Although the Company achieved the target of CO2 emission reduction in itsproduction process, sales and ROE were far below targets under the bigchanges in the global market.

Due to thorough "Itakona" activities (cost optimization through the analysisof costs at raw material level) and the restructuring programs, the Companyhas improved management structure. However, from the viewpoint ofgrowth and profitability, the Company missed its targets so much.

We could not respond quickly to those changing situations and not adjustourselves speedy to bring reform; therefore, we will solve our structuralproblems drastically in order to survive waves of commoditization.

Consolidated financial results for FY 2010-Sales: 7,418.0 billion yen-Operating profit: 190.5 billion yen (operating profit to sales ratio: 2.6%)-Net income (attributable to Panasonic Corporation): -103.5 billion yen

(net income to sales ratio: -1.4%)-CO2 emission reduction in production by 840,000 tons

compared to level of FY2007 (3.98 million tons)




4ContentsContents





This section outlines Goals for New Midterm Management

Plan.




5Positioning of New Midterm Management PlanPositioning of New Midterm Management Plan

FY FY ２０１１２０１１

FY FY ２０１３２０１３

FY ２０１９

GP3 PlanFY ２０１０

Inte

g rating environmental contribution

and business g rowth

No.1 Green Innovation Company

in Electronics Industry

Panasonic Group filled with significant growth potential

New Panasonic Group kicks off

Paradigm shift for growth

Lay foundation to be

a Green Innovation Company

New MidtermManagement Plan

We have become new Panasonic Group, adding SANYO

as a subsidiary. Towards our vision to become the No.1Green Innovation Company in the Electronics Industry, this

midterm plan positions as the first step.

The Company is determined to implement two initiatives:

1) shifting its paradigm to grow, and 2) laying a foundation

to be a Green Innovation Company, aiming contribution to

the protection of environment and business growth.

We will become ‘Panasonic Group with significant growth

potential’ by the end of FY2013.




6Themes for New Midterm Management PlanThemes for New Midterm Management Plan

Existing businesses

New businesses: energy, etc

Individual product-oriented

Solutions & systems businessoriented

Paradigm shiftParadigm shift

for growthfor growth

Japan-oriented

Globally-oriented

Increase profitabilitybased on growth

Enhance contribution to theenvironment

-Pursue global excellence-

Green TransformationGreen Transformation 20122012(GT(GT1212))

Laying foundationLaying foundation

to be Green Innovation Companyto be Green Innovation Company

-Lay groundwork to be

No.1 in green indexes-

These are two initiatives.

More specifically, to convert its paradigm for growth, the

Company will shift its business;

1) from 'existing businesses' to 'new businesses - energy, etc'

2) from 'Japan-oriented' to ‘ globally-oriented'

3) from ‘individual product-oriented' to 'solutions & systems

business oriented'

We name our new midterm management plan “Green

Transformation 2012 (GT12)” in which the Company aims to

become the world’s No.1 Green Innovation Company in the

Electronics Industry.




7GT12 Group Management GoalsGT12 Group Management Goals

50 million tonsCO2 emissionCO2 emission

reductionreduction

Compared to level of FY2006

10 trillion yen

5% or more

10%

800 billion yen or moreTotal for 3 years

SalesSales

Operating profit toOperating profit to

sales ratiosales ratio

ＲＯＥＲＯＥ

Free cash flowFree cash flow

‘GT12’ Group Management Goals in FY2013, the last fiscal year of GT12,

are the following.

・Sales: 10 trillion yen・Operating profit to sales ratio: 5% or more

・ROE: 10%

・Free Cash Flow: 800 billion or more in total for 3 years

・CO2 emission reduction: 50 million tons

We set the numbers of sales and ROE above our global excellence

indexes.

We plan to reduce 50 million tons of CO2 emission from both production

process and product usage, leading the electronics industry.

Achieving those indexes, Panasonic Group will be able to take a major

step to exceed ‘global excellence indexes’ and ‘industry No.1 in green

indexes’ as indexes for No.1 Green Innovation Company in the

Electronics Industry.




8Transformation IndexesTransformation Indexes

OverseasOverseas

NewNew

BusinessBusiness

FieldsFields

Solutions &Solutions &SystemsSystems

Indexes

Sales ratio of sixkey businesses

Sales of energysystems business

FY2010

35%

540billion

FY2013FY2013

42%

FY2019（direction）

55%or more

Sales of systems &equipment business

Overseas salesratio

(for systems & equipment)

2.2trillion

33%

2.6trillion

39%

3.5 trillionor more

50%or more

(Note) Figures for FY2010 include annual figures for SANYO.

Sales in emergingcountries*

Overseas salesratio

440billion

48%

770billion

55%

-

60%or more

* Panasonic’s consumer and systems sales for BRICs＋Vietnam・MINTS (Mexico, Indonesia, Nigeria, Turkey, Saudi Arabia) ＋the Balkans

3 trillionor more

850billion

(yen)

This chart shows our transformation indexes, which we setto convert our paradigm for growth in “GT12”.

To be in new business fields, Panasonic aims to increasesales ratio of six key businesses to 42%. Regarding salesof energy systems business, the Company targets annualsales of 850 billion yen in FY2013.

To be globally-oriented, the Company plans to increasethe overseas sales ratio from 48% to 55% led by expanding

sales in emerging countries as a driving force.

To be solutions & systems oriented, the Company aims toexpand sales of systems & equipment business to 2.6trillion yen, focusing on overseas market, and increaseoverseas sales ratio to 39%.

These are transformation indexes which we will pursue

towards FY2019.




9ContentsContents



4. Management Innovation that Supports

Group Strategy


1) Accelerate growth with Six Key Businesses

2) Expand overseas businesses in emerging countries

3) Strengthen solutions & systems businesses

4) Promote and Implement collaboration with SANYO

This section outlines midterm strategy for Panasonic

Group.

First, I would like to explain our initiatives to accelerate our

growth with six key businesses.




10Panasonic’s Six Key BusinessesPanasonic’s Six Key Businesses

ＬＥＤＬＥＤ

Solutions forEntire Home andEntire Building

HealthcareHealthcareSecuritySecurity

NetworkNetwork ＡＶＡＶ

Flat-panel TVs

Digital cameras,Blu-ray recorders & players,Mobile AV, etc.

Energy SystemEnergy System

Energy creation (solar cells, fuelcells)Energy storage (rechargeable

batteries)Energy management systems, etc.

Heating/RefrigerationHeating/Refrigeration/Air Conditioning/Air Conditioning

Air conditionersAir purifiers

Refrigerator and freezer /showcases, etc.

This chart shows our six key businesses.

Energy system, Heating/Refrigeration/Air Conditioning and Network

AV businesses are positioned as Group’s key businesses with the

aim of increasing total Group’s sales and profit.

Although the business sizes of Healthcare, Security, and LED are

still small, the Company will grow them significantly as ‘pillars of the

next-generation businesses'.

The Company pursues its possibilities to grow, offering solutions for

the entire home and the entire building by focusing on these

strategic businesses. In this way, the Company will strongly

perform and differentiate from competitors.




11Sales TargetSales Target

10 trillion

FY2010Sales

FY2013Sales

Other than6 key

businesses

Heating/Refrigeration/Air Conditioning

Network AV

Security

Healthcare

Energy Systems

LED

LEDLED BacklightBacklight TVTV

＊Figures for FY2010 include annual figures for SANYO

*8.6 trillion

1.2 trillionSales

Growth

1.2 trillion1.2 trillionSalesSales

GrowthGrowth

(yen)

Regarding the six key businesses, the Company plans to

increase sales by 1.2 trillion yen which is more than 80%of total sales growth in FY2013.




12Shifting Resources to Growth BusinessesShifting Resources to Growth Businesses

67%67%

Head Office R&D

(FY2011-2013 total)

Consolidated Sales(FY2010)

CAPEX

(FY2011-2013 total)

54%54%

6 Key6 Key

BusinessesBusinesses

3355%%

■CAPEX

50.0

200.0

FY2010（excluding SANYO）

FY2011 FY2012 FY2013

EnergySystem

NetworkAV

Six Key

Businesses

354.3

480.0

300.0 280.0

FY2011FY2011--20132013totaltotal

Network AVNetwork AV 220 billion yen220 billion yen

Energy SystemEnergy System 300 billion yen300 billion yen

(yen: billions)

Group total 1.06 trillion yenGroup total 1.06 trillion yen

The Company will drastically shift its management

resources to the growth businesses.

In six key businesses which comprised 35 % of the

consolidated sales in FY2010, the Company will spend

54 % of its total CAPEX and 67% of its total head office

R&D expense during three years of GT12.

Regarding CAPEX, the Company will decrease total cost

of investment from FY2011, but increase its investment

ratio of energy systems.




13

● Energy Management Systems（power distribution and control system）

● Energy Storage (rechargeable batteries, etc.）

● Energy Creation （solar cells, fuel cells)

FY2010 FY2013

(yen: billions) 850.0

<Sales>

・Lithium-ion: Make ahead high capacity andstrengthen cost competitiveness

・Integrate controls of electricity, temperature and information

● Products related to eco-cars

*540.0

EnergyCreation

EnergyStorage

Energy Management

Eco-Car

*Figures for FY2010 include annualfigures for SANYO.

Annual AverageGrowth Rate

16%

Energy Systems business as a flagship business of Panasonic Group

・Focus on batteries, thermal systems and powersupply systems

・Utilize accumulated technologies in consumerelectronics business for its greater use

Energy Systems BusinessEnergy Systems Business

・・Solar cellSolar cell：：Strengthen group sales structureStrengthen group sales structure

・・Fuel cellFuel cell ：：Strengthen cost competitiveness forStrengthen cost competitiveness for

its greater useits greater use

The Company aims at the large annual average growth

rate of energy systems by 16%, establishing energysystems as a flag-ship.

We will target total sales of 850 billion yen for energy

creation, energy storage, energy management systems,

and products related to eco-cars in FY2013.




14Solar CellsSolar CellsEnergy system business 1

Targets

FY2013: No.1 in Japan FY2016: TOP3 in the worldFY2013: No.1 in Japan FY2016: TOP3 in the world

FY2011 FY2012 FY2013

400600

900

Accelerate development ofnext-generation solar cells

Utilize know-how and resources of Panasonic

Strengthen group sales structure

Japan： fully utilize housing sales channelOverseas： develop systems business

<Global sales volume (megawatt) >

Utilize Amagasaki PDP plantin Japan

Launch Panasonic BrandHIT on July 1

(MW)(MW)

Regarding solar cells as a core business in energy creation inFY2013, the Company aims at 900 MW global sales volume, more

than tripled what was in FY2010. First, Panasonic will launch Panasonic brand HIT on July 1 which

has a top level of energy conversion efficiency.

Second, the Company will strengthen group sales structure withconsumer electronics, electrical construction materials, and housingsales channels in Japan. In addition, the Company will developsystems business globally including energy storage and energymanagement systems.

Third, the Company will develop next-generation solar cells, utilizingknow-how and resources of Panasonic to pursue higherperformance and lower cost. As a part of collaboration, we considerto utilize Amagasaki PDP plant in Japan.

In order to survive increasingly intense competition, the Companywill develop these initiatives ahead of its schedule.

Furthermore, Panasonic will expand fuel cell business by

strengthening thorough cost competitiveness, looking to the globalmarket.




15Lithium-ion BatteryLithium-ion Battery

Maintain No.1 Global Market Share＜FY2013 Sales target: 500 billion yen＞

Pursue synergies of the Group to overwhelm our competitors

◆Secure profit in consumer-use market by taking lead in high

capacity batteries

◆Strengthen cost competitiveness by developing new materials

◆Introduce new products into growing market, such as for home-use

storage batteries and batteries for eco-cars

“Integrating Business Strategies” &“Optimum Standardization of Our Strengths”

Collaboration oncell development

Collaboration onproduction lines

Energy system business 2

In the lithium-ion battery business, the combination of SANYO

and Panasonic will maintain the world’s No.1 market share,

targeting to achieve 500 billion yen sales in FY2013.

The Company will maximize synergies of the group to achieve

the target. Panasonic’s Energy Company and SANYO will

introduce an early collaboration on cell development and

production lines, integrating business strategies and

standardizing their strengths at optimum level.

Both companies vigorously push forward the following initiatives,

integrating strengths of Panasonic Group.

1) Take a lead in high capacity batteries for consumer-use

2) Strengthen cost competitiveness by developing new

materials

3) Introduce new products in growing market, such as for

home-use storage batteries and batteries for eco-cars




16Energy ManagementEnergy ManagementEnergy system business 3

LV DC HV DC

Integrate controls of electricity, temperature,energy and information

Accelerate development of AC/DC hybridpower distribution system related products

AC

MWO Floorheating

FridgeACVentilation fanLEDlight

DC

AC

Develop Panasonic cross-domain productsthroughout all group companies

Offer value unique to Panasonic

through our comprehensive capability to‘Create’, ‘Store’, ‘Save’ + ‘Manage’ Energy

Energy management

Smart EnergyGateway

(SEG)

Store

Store

Create

Create

Sa

ve

Sa

ve

Regarding our energy management business, Panasonic have

offered its unique value through its comprehensive capability:

from devices and equipment for ‘energy creation’, ‘energy

storage’ and ‘energy saving’, to optimally integrated energy

management systems.

We improve our product quality and offer system and

equipment products which integrate controls of electricity,

temperature and information of products.

We will develop AC/DC hybrid power distribution system

related products to reduce energy loss during conversion.

We have ‘Corporate Division for Promoting Energy Solutions

Business’ inaugurated on April 1, which takes a leadership to

develop cross-domain products.




17Heating/Refrigeration/Air ConditioningHeating/Refrigeration/Air Conditioning

●Make proposals for entire store

●Expand commercial-use products

・Expand line-up・Make inroads into

China and Europe

・Strengthen eco products・Expand sales in Japan, Asia and

China

Air conditioners/Heat Pumps

●Accelerate global expansion of room air conditioners

FY2010 FY2013

670.0・Europe: develop equipment sales channels(No. of dealers: 350 ⇒ 540)

・Emerging countries: strengthen low-noise & energy-saving

leader models

Air Conditioner

IndustrialAir Conditioner

Others

Heat-Pump system

Dehumidifier/Humidifier/Air Purifier

*540.0

Refrigeration/air conditioning +α(energy, security, etc.)

(yen: billions)

<Sales>

Average AnnualGrowth Rate

7.4%

Refrigerators & freezers

/showcasesCommercial-use freezers

Showcases

・Make proposals for total controls of air conditioning/

showcase + lightening to convenience stores

and supermarkets*Figures for FY2010 include annual

figures for SANYO.

Regarding heating, refrigeration, air conditioning business, we will

maximize our strength with SANYO, combining Panasonic’s

consumer products and SANYO’s commercial-use products. This is a

basic for our strategy.

In terms of room air conditioner, we will globally expand our business,

especially developing equipment sales channels in Europe and

affordable local leading models in emerging markets.

For commercial-use products, we will focus on our market for large-

sized air conditioning, natural-refrigerant water heat-pump drying

systems, commercial-use refrigerators & freezers and showcases.

Making proposals for ‘the Entire store’, we are approaching to

convenience stores and supermarkets to expand our business with

our best practices.

Therefore, in this business, we target its sales of 670 billion yen in

FY2013, an annual average growth rate of 7.4%.




18Network AVNetwork AV

● Expand sales of digital cameras

● Strengthen product competitiveness of flat-panel TVs

・PDP: Make “3D = Panasonic”

Significantly improve in energy saving performance

・LCD: Expand LED backlight TVs

・Become Top 3 maker in industrywith LUMIX sales of 20 million units

FY2010 FY2013

Flat-

panelTV

DSC

BD

Others

2,150.0

*1,600.0

(yen: billions)

＜Sales＞

Average AnnualGrowth Rate

+10%

FY2013FY2013 LEDTV ratioLEDTV ratio 60%60%

Make a key business with more thanMake a key business with more than

10 % market share10 % market share

FY20FY201133 3DTV ratio3DTV ratio 70%70%

Capture new demand mainlyCapture new demand mainly

in emerging countriesin emerging countries

・Digital interchangeable lens systemcamera business:

・Compact camera business:

＊Figures for FY2010 include annual

figures for SANYO.

Flat-panel

ＴＶ

ＤＳＣ

ＢＤ

Others

In the PDP TV business, we will further improve product quality

to maximize our advantage for 3DTV and drastically lowerpower consumption.

In the meantime, we will introduce LED backlight TVs this year

as a part of our LCD TV business and expand its sales with our

top power saving LED in the industry.

We will also focus on development of organic light emitting

display (OLED) as a favorite of next generation display.

In digital camera business, we plan to increase LUMIX sales of

20 million units per year to become a Top 3 maker in the

industry.

Therefore, in this business, we target the sales of 2,150 billion

yen in FY2013, an annual average growth rate of 10%.




19Flat-Panel TVFlat-Panel TVNetwork AV business

◆Shift finished products and module assembly

to Asia

◆Halve number of parts (LCD 32HD)

◆Actively adopt OEM / ODM

◆Complete series of new investments in FY2011

Cost structure

◆Raise selling price by introducing 3D and LED andcarry out intensive advertising investment in major counties

◆Increase number of products for high-volume segment<Emerging countries: Over 11 million units in FY2013>

Products / Marketing

Phase change to make business profitable

Our biggest challenge for network AV business is to

improve profitability of flat-panel TV business, rather than

to increase sales.

First of all, we have to significantly improve its cost

structure by shifting its finished products and module

assembly to Asian countries and halving the number of

components.

Second, we reduce our investment (CAPEX) in thisbusiness from FY2012, and we will maximize payoff for the

investment.

Third, we will raise our selling price by increasing its sales

with our 3DTVs and LED backlight TVs to improve its

profitability.




20Next-Generation Key BusinessesNext-Generation Key Businesses

● LED

● Security

● Healthcare

・Unify business strategies with PEW and SANYO

- In-hospital work assistance (robot business, etc.)

- Home healthcare

- Early diagnosis / treatment

・Shift business:

Company name change:

from Panasonic Shikoku Electronics Co., Ltd.to Panasonic Healthcare Co., Ltd.

<Sales>

*Excluding LED backlight TVs

Lay the foundationfor full-fledged growth

GT12

540 billion

FY2010 FY2013

LED*

Healthcare

Security

FY2016

1 trillion

<target>(yen)

・Increase sales of LINK products

・Build up engineering capability overseas・Promote alliances with large companies

・Expand global business・Strengthen cost competitiveness and

supply capability

As a part of next-generation key business, we will form our

foundation of healthcare, security and LED businesses for

future growth.

In the healthcare business, all our group companies unify

their strategies focusing on in-hospital work assistance,

home healthcare, and early diagnosis and treatment.

Also, Panasonic Shikoku Electronics Co., Ltd. will make a

full-scale shift from all of visual, storage, and devicebusinesses to healthcare business by changing the

Company name to Panasonic Healthcare Co., Ltd. on

October 1.

We will also strengthen our global business infrastructure

of security and LED businesses. In this way, we will target

our sales of 540 billion yen in FY2013 in these three

businesses.




21ContentsContents




Group Strategy






I would like to give a explanation that we are expanding

our overseas business especially in emerging countries.




22Expand Overseas BusinessExpand Overseas Business

363030Brazil

Russia

India48

Vietnam

30

Mexico

Indonesia

Nigeria1010

SaudiArabia

BalkansChina107Turkey

China and Asia1111

99

121255

35

*Figures FY2010⇒FY2013 sales increase

(Data source: Overseas Regional Management Divisions)

1. Significantly increase sales in emerging countries

Sales increase by 330 billion yen* (average annual sales growth rate 20%)2. Increase overseas sales ratio 48%(FY2010)⇒ 55% (FY2013)

*BRICS+V・MINTS+BMINTS+B(Consumer / systems sales)

(yen: billions)

As a part of our ‘GT12’, we are shifting our business

furthermore to be globally-oriented especially by largesales increase in emerging countries.

We target to increase 330 billion yen of consumer /

systems sales in next three years in our 10 main emerging

countries and 1 region of ‘BRICs+V’ and ‘MINTS+B.’

As a result, we plan to increase the ratio of overseas sales

from 48% to 55% in FY2013.




23Product Planning for ConsumersProduct Planning for Consumers

India

Brazil Vietnam

China

High-volumeMarket

Research Center

LifestyleResearch Center

Discover VietnamProjectnew

new

China LifestyleResearch Center

Global Consumer Research Center(Lifestyle research hub)

Global Consumer Research CenterGlobal Consumer Research Center(Lifestyle research hub)(Lifestyle research hub)

To beestablishedin FY2011

To beTo beestablishedestablishedin FY2011in FY2011

Business domains: Life research centers, lifestyle concept research centers, etc.

Strengthen Lifestyle Research Overseas

Share knowledge with each region and promote optimum

standardization of methods used to understand customers

Expanding overseas business in emerging countries, we have

developed our products for high-volume segment with ourstrong product planning for local consumers in our lifestyle

research institutes around the world.

We have our new research centers in India and Brazil and

also we will establish our Global Consumer Research Center

in our head office, Japan to share knowledge and promoteoptimum standardization of all lifestyle research institutes.

We will further improve our lifestyle research and offer

products for high-volume segments one after another with our

innovative product planning and designing around the world to

expand our business.




24Products for High-Volume SegmentProducts for High-Volume Segment

LCD TVs in IndiaLCD TVs in India (Available in June, 2010)(Available in June, 2010)

Sales for high-volume segment: 1 trillion yen level in FY2013

32” LCD TV

Top power-saving andhigh-output speakers inindustry

Simple TV pedestal

LifestylesLifestyles

Washing machines in ChinaWashing machines in China (Released in March, 2010)(Released in March, 2010)

Water-saving WM

1st grade ranked forwater-saving &2nd grade ranked for

energy-saving

Electric billsGood soundWall-hanging

Electric billsGood soundWall-hanging

LifestylesLifestyles

Water-savingEnergy-saving

Water-savingEnergy-saving

Eliminatenon-essentials


Focus onessentials

Focus onessentials



No manual operation

function

Focus on

essentials

Focus on

essentials

Those are some examples of our products for high-volume

segment.

In India, we have developed LCD TV based on our lifestyle

research. We have focused what is essential for consumers

and offer our LCD TV, equipped with our top power-saving and

high-output speakers in the industry. Meanwhile, we have

eliminated what is not essential for consumers and simplifiedits pedestal with only one backlight to make it more affordable

for middle class consumers.

Therefore, we plan to increase our sales of products for high-

volume segment to 1 trillion yen level in FY2013.




25Global Home Appliance BusinessGlobal Home Appliance Business

FY2016FY2013FY2010

Expand product range

Expand sales by strengthening local sites

Home appliance products*overseas sales +15%

(year-on-year)

Set up a manufacturing site in Brazil

Develop full-fledged business in Europe

Green materialsInvertersHeat pumps

Set up a manufacturing site in India

Regional partnership

Create new demand

Strengthen foundation in Japan, China and Asia

Focus on core environmental technologies

*Air conditioners, refrigerators,washing machines, microwave ovensvacuum cleaners, small kitchen appliances,etc.

We have also increased our global sales of home

appliance business with our products for high-volume

segment.

In Japan, China and Asian countries, we have restructured

and improved our local manufacturing and sales sites to

expand our business.

In Europe, we will start full-fledged business to develop

more products speedily with outsourcing, such as OEMfrom local manufacturers.

Furthermore, in India and Brazil, we plan to establish our

new manufacturing sites.

We will focus on strengthening core environmental

technologies to expand our global home appliance

business.




26ContentsContents




Group Strategy






I would like to talk about our solutions and systems

businesses. Converting our paradigm to be solutions- andsystems-oriented is one of the key points of shifting

business structure with the comprehensive strengths of all

Panasonic Group.




27Systems & Equipment BusinessSystems & Equipment Business

<Overseas sales>

＊Figures for FY2010 include annual figures for SANYO Electric.

Large overseas sales increase

FY2010 FY2013

Annual Averagegrowth rate

+11%

*33%

Overseas

ratio

*2.2 tri. yen

Systems & equipmentbusiness

2.6 tri. yen

39%

Sales*720 billion yen

1 trillion yen

Organization

Humanresources

Collaboration

Establish structurefor each country / region

(FY2010→2013)

We will focus on expanding our systems & equipment

business overseas with an annual average growth rate of11%, centering on China and northeast Asia.

We are developing our business by establishing our

organization structure for each industry, recruiting local

engineering staffs and collaborating with local SI

companies in those countries and regions.




28Group-Wide CollaborationGroup-Wide CollaborationCarry out “Comprehensive Solutions Strategy” with Corporate Division

for Promoting Systems & Equipment Business playing key role

Corporate Division forPromoting Systems &Equipment business

・・・

6 key

businesses

AVC SN PSECLC PESHA SANYOPEW

Business domain companies

Energy systemsHeating/Refrigeration

/Air conditioning

Security

Healthcare

Network AV

LED

Sales divisions by country / region

Hotel HousingTrans-

portation& airport

Medical RetailOffice &factory

EducationDevelop & Provide

“Solutions Package” for 7 key industries

Establish comprehensivesolutions-type business model

Collaborate with Partners & SIer

Strengthen global PF functions

Increase engineering capability

＋

Make comprehensiveMake comprehensive

solutions possiblesolutions possible

To offer more comprehensive solutions to our customers,

we will establish our business promotion structure toenable group-wide collaboration.

We started to develop our ‘Solutions Package’ targeting

seven key industries led by our ‘Corporate Division for

Promoting Systems & Equipment Business’.

In this way, we will furthermore establish a comprehensive

solutions-type business model, from planning to

maintenance, combining our six key businesses.




29‘Comprehensive Solutions for Entire Town’‘Comprehensive Solutions for Entire Town’

FUJISAWA Sustainable ‘Smart Town’ Concept

・Collaborate with Fujisawa city and developers・Make use of Panasonic’s former factory site (50 acres)

Establish new business model in ‘Fujisawa’ and make inroads into global market

‘Smart Town’

conceptEntire town Reduce

CO2 & wastes

Peace of mind

& safety

Efficientsocial

infrastructure

Locally produce& consume

energy

Collaboration with localgovernments, developers

and business partners

Provide equipment /systems / solutions in acomprehensive manner

Providecommunity services

Participate in & contributeto town development

forentire house

forentire store

for entiremedical facility

for entirepublic facility

HealthcareSecurity

Community grid

Elderly facilities

Condominiums

Commercialfacilities

Detachedhouse

Roads

Parks

(in Japan)(in Japan)

We will also apply our ‘Comprehensive Solutions’ business

model to ‘smart town’ concept, reducing CO2 emission andpromoting ‘local energy production and consumption in

towns.’

As a part of this project, we have worked on ‘FUJISAWA

Sustainable Smart Town’ Concept with Fujisawa city, at

our former factory site of 50 acres in Fujisawa city,Kanagawa prefecture.

Combining various comprehensive solutions, we will

establish a new business model in Fujisawa and make

inroads to the global market in the future.




30ContentsContents




Group Strategy






Next, I would like to talk about our collaboration with

SANYO.




31Synergies in FY2013Synergies in FY2013

Cost reduction bystrengthening

management structure(central purchasing

for procurement, etc.)

Business collaboration(sales increase, more

efficient development, etc)

Strategic Working Committeefor Group Collaboration

(established as of April 1, 2010)

+38.0+80.0

or more

+52.0

Sales decrease, etc. -10.0

<Operating profit basis>

(yen: billions)

Our estimated total synergies in FY2013 are more than 80

billion yen in operating profit basis, even including

negative impact of 10 billion yen by sales decrease of

duplicated business.

The breakdown of 80 billion yen is: 52 billion yen of

business collaboration, such as sales increase by mutual

use of sales channels and system solutions, and more

efficient development; 38 billion yen of cost reduction bystrengthening management structure, such as central

purchasing for procurement and sharing infrastructure.

We have ‘Strategic Working Committee for Group

Collaboration’ inaugurated as of April 1 to speed up

synergy effect.




32Our CollaborationsOur Collaborations

■Unify business strategies- Launch collaboration products- Unify development & consolidate operating sites

No.1 Green Innovation Companyin the Electronics Industry

Unification of group visions

Share overseas warehouses & offices(started to share warehouse in Dubai in Apr. 2010,and will do in other areas.)

Procurement,

IT, etc.

・・・

Make optimum price the Group standard andimprove efficiency through consolidation

Centralpurchasing

Effect:25 bil. yen

InfrastructureEffect:

13 bil. yen

Sharing infrastructure

Appliance business Cost reduction through centralization

(to be included underneath)(to be included underneath)

As a part of collaboration with SANYO, we unify our

appliance businesses and launch our new collaborationproducts. Meanwhile, we will unify R&D and consolidate

operating sites.

In FY2013, we expect to generate 25 billion yen by cost

reduction through centralization and consolidation of

procurement and 13 billion yen by sharing infrastructureand knowledge.

We also intend to unify our corporate group visions, and

share our ‘eco ideas’ label.




33ContentsContents





Finally, I will talk about our management innovation that

supports group strategy.




34CO2 Emission ReductionCO2 Emission Reduction

Targeting peaking-out by FY2019

FY2006(base year)

Normalwithout any

improvement(Estimated)

FY2013

*Products included here areonly main finished products

Products

Production

Products

FY2019

Aiming topeak out

Products

SANYO plantin Kasai

Panasonic plant inSuminoe

・Photovoltaic powergeneration (1MW)・Lithium ion batterysystem (1.5MWh)

Production

Establish ‘top-runner plants’

・Manage operations bycoordinating productionand power generationfacilities (facilities-link)

Create and save energies

TV Airconditioning

Lightingbulbs

Solar cells

Production

CO2 Emissionsreduction

120 mil. tons(-50% of estimates)

Target

CO2 Emissionsreduction

50 mil. tons

(in Japan)(in Japan) (in Japan)(in Japan)

First, contribution to the protection of environment is one of

the most important in our management innovation and ouraim of all business activities.

We further reduce CO2 emission in all business domain

companies by product usage, in addition to by production

activities. Therefore, we target to reduce 50 million tons of

CO2 emission in FY2013 compared to the estimated

figures in FY2013 without any improvement from FY2006.

Expanding the size of contribution in reducing CO2, we

intend to target our total CO2 emission peaked out by

FY2019.




35Recycling-Oriented ManufacturingRecycling-Oriented Manufacturing

<Future Goal>

Total resourcesused (A)

Productionactivities

Resources

recycled at plants(D)

Recycled

materials

Wastedisposal

Total recycledresources used (B)

<recycling>

Wastesat plants (C)

productsproducts

Recycledmaterials

Total resources used(A)

Total recycled resourcesused (B)

> 12%> 12%

Wastes producedat plants (C)

Resources recycledat plants (D)

≧≧ 99%99%

Make most of recycled resources usage

Pursue zero emissions at plants

Through company-wide collaboration,strengthen efforts from design stage

Develop 3R design & recycling technologies

<Targets in FY2013>

Pursue efforts to zero wastes from production activities

Maximize ratio of ‘Recycled resources tototal resources used’

As a part of our environmental contribution, recycling-

oriented manufacturing is also important.

We pursue efforts to zero wastes from production activities,

minimizing usage of total resources and maximizing usage

of recycled resources in 2018.

In ‘GT12’, we will make efforts from designing stage

through company-wide collaboration, focusing on:

1) Making the most of recycled recourses

2) Pursuing zero emissions at plants

3) Developing 3R (Reuse/Reduce/Recycle) design and

recycling technologies.




36Create New BusinessesCreate New Businesses

●● Domain companiesDomain companies

●● Head office (New largeHead office (New large--scalescaledd projects)projects)

Notes: All figures indicatecumulative amount for next 3 years.

Sales and CAPEX

・Sales 1.1 trillion yen

・Capex 230 billion yen

Establishstructure

・AVC Networks Companyestablished New Business

Promotion Office

・Home Appliances Companycarry out New BusinessProjectFY2011 FY2012 FY2013

180.0350.0

600.0

Sales in new business

(yen: billions)

Establishstructure

Strategicinvestment

・Established “Innovation Promotion Center” as of April 1

・・Strategically use budget for head officeStrategically use budget for head office

(77 billion yen or more)(77 billion yen or more)

（projects better to be managed by head office than single business domain company)

We also enhance our capability to create new businesses

for the future.

Led by our domain companies, we target to have 1.1 trillion

yen sales of new business cumulatively in next three years,

with 230 billion yen of investments. Most of our domain

companies establish new offices to promote this project.

Meanwhile, our head office will focus on large-scaled

projects with more than 77 billion yen of strategic

investments for the next three years. We have ‘Innovation

Promotion Center’ in our corporate R&D group inaugurated

as of April 1 which will take leadership in those projects.




37Cash Flow-Oriented ManagementCash Flow-Oriented Management

●● Carry out business portfolio strategyCarry out business portfolio strategy

●● Improve cash flow generation capabilityImprove cash flow generation capability

Midterm EnhancedCash Flow Management

Project

Centralize procurement,strengthen designvalue engineering

Internalizecost management

process

Management of large-scaledinvestments

theoretical inventory appliedthroughout all group companies

Apply to all productsCost reduction ofmore than 1.5 trillion yen

Shift resources to growth areas by selling orShift resources to growth areas by selling orclosing down businessesclosing down businesses

Businesses toBusinesses tobe withdrawnbe withdrawn

Businesses to supportBusinesses to support

nextnext--generationgenerationInvest & develop for futureInvest & develop for future

Revitalize by renovating and shifting strategiesRevitalize by renovating and shifting strategiesBusinesses to beBusinesses to be

revitalizedrevitalized

Key businessesKey businesses Drive growth for GroupDrive growth for Group

Regarding to our cash flow-oriented management, we carry

out business portfolio strategy dividing our business into four

categories shown above, to make our best investmentdecision leveraging growth capability and profitability.

We will also improve cash flow generation capability at

operating sites in our ‘Midterm Enhanced Cash Flow

Management Project’. We will maximize investment return by

increasing monitoring efforts of large-scaled investments, andimprove working capital by developing our theoretical

inventories applied throughout all group companies.

We will take all appropriate steps to increase profitability,

generating cash flow.




38Net Cash and Cash FlowNet Cash and Cash Flow

(yen: billions)

● FCF more than 800 billion yen cumulative in next 3 years

● ‘Midterm Enhanced Cash Flow Management Project’ in all group companies

Net cash +600 billion yen or more

End of Mar. 2010

(FY10)

(actual)

End of Mar. 2013

(FY13)

(estimates)

NetIncome

NetCAPEX

WorkingCapital, etc. Dividends,

etc.

▲119.3

-500

500.0

Net Cash

Net Cash

-

500 -

1,000 -

-500-

500-

1,000-

FCF +800 billion yen or more

With our efforts, we will have strong financial position as

the same level as we used to have in the past, bygenerating more than 800 billion yen of FCF cumulatively

in the next three years and making our net cash position

positive as early as possible.




39FY2011 Forecast & GT12FY2011 Forecast & GT12

-3.7%-3.7% 10%10%ROEROE

Operatingprofit ratio

2.6%

FY2011 FY2013

SalesSales

7.47.4More than 5.0%

2.8%

10.010.08.88.8

FY2010

1.8%1.8%

(yen: trillions)(yen: trillions)

Our targets in FY11 are shown above. Achieving those

targets in FY11, we will accelerate our progress toward ourtarget in FY13, a final year of ‘GT12’.




40

In our new midterm management plan, ‘GT12’, Panasonic,

with all group companies, will drastically shift our paradigmfor growth and lay the foundation to be a Green Innovation

Company.

Thank you for your continuous support.




41

Disclaimer Regarding Forward-Looking Statements This presentation includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and

Section 21E of the U.S. Securities Exchange Act of 1934) 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 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 undertakes 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 with the U.S.Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 and its other filings.

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 United States, Europe, Japan, China, Asia and other countries; volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in many product and geographical markets; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, the Chinese yuan, Asian currencies and other currencies in which the Panasonic Group operates businesses, or in which assets and liabilities of the Panasonic Group are denominated; the possibility of the Panasonic Group incurring additional costs of raising funds, because of changes in the fund raising environment; the ability of the Panasonic Group 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 on the alliances or mergers and acquisitions including the acquisition of SANYO Electric Co., Ltd.; the ability of the Panasonic Group to achieve its business objectives through joint ventures and other collaborative agreements with other companies; the ability of the Panasonic Group 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 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 Group has 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 and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in Panasonic’s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

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 Japanese companies. 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.




42

1.2 trillion yen increase1.2 trillion yen increase

Overseas Sales Ratio to 55%Overseas Sales Ratio to 55%

Environmental contribution: reduction inCO2, recycling-oriented manufacturingStrengthen capability to create new businessAccelerate global human resources developmentCash flow-oriented management

Sales 10 trillion yen

Operating profit ratio

5% or more ROE 10%

FCF 800 billion yen or more (3yr. total)

Reduce 50 million ton CO2 emission

Managementgoals

Groupmidterm

managementstrategy

Management

innovation to

support

strategy

Build up Group 6 key businesses

Expand overseas business in emergingcountries

Strengthen solutions & systems business

Promote and implement collaborationwith SANYO

・Drive growth: Energy Systems, Heating/Refrigeration/Air Conditioning, Network AV・Build pillars for next generation: Healthcare/Security/LED・Focus allocation of resources / strengthen business through collaboration with SANYO

・Address high-volume segment through manufacturing to meet customers’ needs・Globally expand appliance business

・Largely increase in sales for systems & equipment businesses overseas・’comprehensive solutions’ through combined all Groups’ efforts

Speed up initiatives throughCorporate Division for

Group Management Innovation

ＧｒｅｅｎＴｒａｎｓｆｏｒｍａｔｉｏｎ 2012 (ＧＴ12)-“Paradigm shift toward growth” & “building foundation of Green Innovation Company”-

ＧｒｅｅｎＴｒａｎｓｆｏｒｍａｔｉｏｎ 2012 (ＧＴ12)--““Paradigm shift toward growthParadigm shift toward growth”” && ““building foundation of Green Innovation Companybuilding foundation of Green Innovation Company””--

<Supplement 1>

Systems & EquipmentSystems & Equipment2.6 trillion yen2.6 trillion yen

Synergy 80 billion yenSynergy 80 billion yenor moreor more



<Supplement 2>

Group Six Key Businesses & Main ProductsGroup Six Key Businesses & Main Products

Other

・LED lightingequipment

・Fire alarm forhouse・Disaster & crime

prevention systemetc.

・Massaging chair・Blood pressuremanometer

etc.

・Powerdistribution/Wiring/Controller

PEW andPanaHome

・LED bulbetc.

・Air conditioner・Heat pump waterheating systems

・Ventilating fan・Dehumidifier/humidifier/airpurifier etc.

・Fuel cell

・Compressor for

eco-caretc.

HomeAppliances

・Security camera・Network camera

・Door intercomsystem

etc.

Security

・LED device

・LED backlight TV

LED

・Bio & dispensingrelated equipment

・Electronic healthrecord system

etc.

・Blood glucosesensor

・Ultrasonograph・Hearing aid

etc.

Healthcare

・DSC/camcorderetc.

・Industrial airconditioning・Refrigerator andFreezer/showcase

etc.

・ Lithium-ionbattery

・Solar cell・Rechargeablebattery foreco-car etc.

SANYO

・Lithium-ionbattery

・Capacitor foreco-car etc.

Componentsand Devices

・PDP/TV・LCD/TV

・DSC・BD player/recorder

・Mobile phone・PND etc.

・Power supplyECU system for

eco-car・Inverter for eco-

caretc.

Digital AVCNetworks

Network AVHeating/

Refrigeration/ACEnergy Systems

* Segments in which business domain companies in charge of 6 Key Businesses are classified

Segment *

Documents

Panasonic MIDTERM STRATEGY 20100507 Vision Data e