Panasonic MIDTERM STRATEGY 20100507 Vision Data e

Panasonic Group
New Midterm Management Plan

May 7, 2010
Panasonic Corporation
Fumio Ohtsubo
Notes: 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.
z This presentation outlines Panasonic’s new midterm

management plan.
z 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
Copyright (C) 2010 Panasonic Corporation. All Rights Reserved.

1
Contents 2
1. Summary of GP3 Plan
2. New Midterm Management Plan
3. Midterm Strategy for Panasonic Group

4. Management Innovation that Supports
Group Strategy
z This section outlines the summary of GP3 plan.

2
Summary of GP3 Plan 3
“Unprecedented simultaneous global recession”
triggered by financial crisis
“Market structural change”: shifting to low-priced products,
expanding emerging market demands, and more
environmentally conscious
Far below targets in sales and ROE

Achieved target of CO2 emission reduction in production
(reduction of 840,000 tons compared to level of FY2007)
Double-digit
Double-digit growth
growth ◆Far
◆Far below
below targets
targets in
in GP3
GP3 Plan
Plan
in
in overseas
overseas sales
sales
(Consumer
(Consumer &
& systems
systems sales)
sales) vs.GP3:
vs.GP3: Sales
Sales overseas total ：72%
overseas total ：72% BRICs+V：73%
BRICs+V：73%
Four
Four strategic
strategic ◆Far
◆Far below
below GP3
GP3 sales
sales increase
increase targets
targets in
in all
all strategic
strategic businesses
businesses
(A:
(A: Appliance
Appliance Solutions,
Solutions, B:
B: Black
Black Box
Box Devices,
Devices, C:
C: Car
Car Electronics,
Electronics,
businesses
businesses D:
D: Digital
Digital AV
AV Networks)
Networks)
Manufacturing
Manufacturing ◆Lowered
◆Lowered break-even
break-even point
point and
and reduced
reduced fixed
fixed cost
cost
-oriented
-oriented
innovation
innovation ◆Failed
◆Failed to
to create
create new
new large-scale
large-scale businesses
businesses
z Although the Company achieved the target of CO2 emission reduction in its
production process, sales and ROE were far below targets under the big
changes in the global market.
z Due to thorough "Itakona" activities (cost optimization through the analysis

of costs at raw material level) and the restructuring programs, the Company
has improved management structure. However, from the viewpoint of
growth and profitability, the Company missed its targets so much.
z We could not respond quickly to those changing situations and not adjust
ourselves speedy to bring reform; therefore, we will solve our structural
problems 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)

3
Contents 4

Group Strategy
z This section outlines Goals for New Midterm Management

Plan.

4
Positioning of New Midterm Management Plan 5
No.1 Green Innovation Company
FY２０１９ in Electronics Industry
n io
but
Panasonic Group filled with significant growth potential
s gr ontri
FY２０１３
h
owt
ines ntal c
Paradigm shift for growth

e
and vironm
New Midterm
bus
en
Management Plan
ng
rati
Lay foundation to be
g
a Green Innovation Company

Inte
FY２０１１
New Panasonic Group kicks off
FY２０１０
GP3 Plan
z We have become new Panasonic Group, adding SANYO

as a subsidiary. Towards our vision to become the No.1
Green Innovation Company in the Electronics Industry, this
midterm plan positions as the first step.
z 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.
z We will become ‘Panasonic Group with significant growth

potential’ by the end of FY2013.

5
Themes for New Midterm Management Plan 6
Paradigm shift Laying foundation
for growth to be Green Innovation Company
Existing businesses
Increase profitability
New businesses: energy, etc based on growth
Japan-oriented -Pursue global excellence-
Globally-oriented
Enhance contribution to the
Individual product-oriented environment
-Lay groundwork to be
Solutions & systems business No.1 in green indexes-
oriented
Green Transformation 2012

(GT12)
z These are two initiatives.
z 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'
z 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.

6
GT12 Group Management Goals 7
Sales 10 trillion yen
Operating profit to
5% or more
sales ratio
ＲＯＥ 10%
Total for 3 years
Free cash flow 800 billion yen or more
Compared to level of FY2006
CO2 emission
50 million tons
reduction
z ‘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
z We set the numbers of sales and ROE above our global excellence
indexes.
z We plan to reduce 50 million tons of CO2 emission from both production

process and product usage, leading the electronics industry.
z 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.

7
Transformation Indexes 8
(yen)
Indexes FY2019
FY2010 FY2013 （direction）
Sales ratio of six 55%
New 35% 42%
key businesses or more
Business
Sales of energy 540 850 3 trillion
Fields
systems business billion billion or more
Sales in emerging 440 770 -
countries* billion billion
Overseas
Overseas sales 55% 60%
48% or more
ratio
Sales of systems & 2.2 2.6 3.5 trillion
Solutions & equipment business trillion trillion or more
Systems Overseas sales 50%
ratio 33% 39% or more
(for systems & equipment)
(Note) Figures for FY2010 include annual figures for SANYO.
* Panasonic’s consumer and systems sales for BRICs＋Vietnam・MINTS (Mexico, Indonesia, Nigeria, Turkey, Saudi Arabia) ＋the Balkans
z This chart shows our transformation indexes, which we set

to convert our paradigm for growth in “GT12”.
z To be in new business fields, Panasonic aims to increase

sales ratio of six key businesses to 42%. Regarding sales
of energy systems business, the Company targets annual
sales of 850 billion yen in FY2013.
z To be globally-oriented, the Company plans to increase

the overseas sales ratio from 48% to 55% led by expanding
sales in emerging countries as a driving force.
z To be solutions & systems oriented, the Company aims to

expand sales of systems & equipment business to 2.6
trillion yen, focusing on overseas market, and increase
overseas sales ratio to 39%.
z These are transformation indexes which we will pursue

towards FY2019.

8
Contents 9
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

Group Strategy
z This section outlines midterm strategy for Panasonic

Group.
z First, I would like to explain our initiatives to accelerate our

growth with six key businesses.

9
Panasonic’s Six Key Businesses 10
Energy System
Energy creation (solar cells, fuel
Heating/Refrigeration cells)
Network ＡＶ
Energy storage (rechargeable
/Air Conditioning batteries)
Energy management systems, etc.
Air conditioners Flat-panel TVs
Air purifiers Digital cameras,
Refrigerator and freezer / Blu-ray recorders & players,
showcases, etc. Solutions for Mobile AV, etc.
Entire Home and

Entire Building
Security ＬＥＤ
Healthcare
z This chart shows our six key businesses.
z 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.
z 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'.
z 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.

10
Sales Target 11
(yen)
10 trillion
1.2 trillion
Sales Healthcare
Security
Growth
LED Backlight TV
Network AV
LED
Heating/Refrigeration FY2013
/Air Conditioning Sales
Other than Energy Systems
*8.6 trillion 6 key
businesses
FY2010
Sales
＊Figures for FY2010 include annual figures for SANYO
z 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.

11
Shifting Resources to Growth Businesses 12
Consolidated Sales CAPEX Head Office R&D
(FY2010) (FY2011-2013 total) (FY2011-2013 total)
6 Key
Businesses
35%
54% 67%
Group total 1.06 trillion yen

■CAPEX FY2011-
FY2011-
(yen: billions) 480.0 2013 Network AV 220 billion yen
total
354.3 Energy System 300 billion yen
300.0
Businesses
280.0
Six Key
Network
200.0 AV
Energy
50.0 System
FY2010 FY2011 FY2012 FY2013
（excluding SANYO）
z The Company will drastically shift its management

resources to the growth businesses.
z 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.
z Regarding CAPEX, the Company will decrease total cost

of investment from FY2011, but increase its investment
ratio of energy systems.

12
Energy Systems Business 13
Energy Systems business as a flagship business of Panasonic Group
<Sales>
● Energy Creation （solar cells, fuel cells) (yen: billions)
850.0
・Solar cell：
cell：Strengthen group sales structure Annual Average
Growth Rate
Eco-Car
・Fuel cell ：Strengthen cost competitiveness for 16%
Energy Management
its greater use
● Energy Storage (rechargeable batteries, etc.）
*540.0
・Lithium-ion: Make ahead high capacity and
strengthen cost competitiveness
Energy
● Energy Management Systems Storage
（power distribution and control system）

・Integrate controls of electricity, temperature and information
● Products related to eco-cars Energy

Creation
・Focus on batteries, thermal systems and power
supply systems FY2010 FY2013
・Utilize accumulated technologies in consumer *Figures for FY2010 include annual
figures for SANYO.
electronics business for its greater use
z The Company aims at the large annual average growth

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

13
Energy system business 1
Solar Cells 14
Targets FY2013: No.1 in Japan FY2016: TOP3 in the world
<Global sales volume (megawatt) >

Launch Panasonic Brand
HIT on July 1
Strengthen group sales structure

(MW)
Japan： fully utilize housing sales channel
900 Overseas： develop systems business
600
400 Accelerate development of
next-generation solar cells
Utilize know-how and resources of Panasonic
FY2011 FY2012 FY2013 Utilize Amagasaki PDP plant
in Japan
z Regarding solar cells as a core business in energy creation in

FY2013, the Company aims at 900 MW global sales volume, more
than tripled what was in FY2010.
z First, Panasonic will launch Panasonic brand HIT on July 1 which
has a top level of energy conversion efficiency.
z Second, the Company will strengthen group sales structure with
consumer electronics, electrical construction materials, and housing
sales channels in Japan. In addition, the Company will develop
systems business globally including energy storage and energy
management systems.
z Third, the Company will develop next-generation solar cells, utilizing
know-how and resources of Panasonic to pursue higher
performance and lower cost. As a part of collaboration, we consider
to utilize Amagasaki PDP plant in Japan.
z In order to survive increasingly intense competition, the Company
will develop these initiatives ahead of its schedule.
z Furthermore, Panasonic will expand fuel cell business by
strengthening thorough cost competitiveness, looking to the global
market.

14
Lithium-ion Battery 15
Maintain No.1 Global Market Share
＜FY2013 Sales target: 500 billion yen＞
Pursue synergies of the Group to overwhelm our competitors
“Integrating Business Strategies” &

“Optimum Standardization of Our Strengths”
Collaboration on Collaboration on
cell development production lines
◆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
z 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.
z 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.
z 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

15
Energy Management 16
Offer value unique to Panasonic
through our comprehensive capability to
‘Create’, ‘Store’, ‘Save’ + ‘Manage’ Energy
Integrate controls of electricity, temperature, Accelerate development of AC/DC hybrid
energy and information power distribution system related products
Create
Energy management LV DC HV DC
DC
Store
LED
Ventilation fan light Fridge
AC
Smart Energy AC
Gateway
Save
(SEG) AC
Floor
MWO heating
Develop Panasonic cross-domain products

throughout all group companies
z 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.
z We improve our product quality and offer system and

equipment products which integrate controls of electricity,
temperature and information of products.
z We will develop AC/DC hybrid power distribution system

related products to reduce energy loss during conversion.
z We have ‘Corporate Division for Promoting Energy Solutions

Business’ inaugurated on April 1, which takes a leadership to
develop cross-domain products.

16
Heating/Refrigeration/Air Conditioning 17
●Accelerate global expansion of room air conditioners <Sales>
(yen: billions)
・Europe: develop equipment sales channels
(No. of dealers: 350 ⇒ 540) Average Annual 670.0
Growth Rate
・Emerging countries: strengthen low-noise & energy-saving 7.4%
leader models
*540.0 Others
●Expand commercial-use products Dehumidifier/Humidifier
/Air Purifier
Air conditioners/ Refrigerators & freezers Commercial-use freezers/
Heat Pumps /showcases Showcases
・Expand line-up ・Strengthen eco products Heat-Pump system

・Make inroads into ・Expand sales in Japan, Asia and
Industrial
China and Europe China
Air Conditioner
● Make proposals for entire store

Refrigeration/air conditioning +α(energy, security, etc.)
Air Conditioner
・Make proposals for total controls of air conditioning/
showcase + lightening to convenience stores
and supermarkets FY2010 FY2013
*Figures for FY2010 include annual
figures for SANYO.
z 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.
z 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.
z 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.
z Making proposals for ‘the Entire store’, we are approaching to

convenience stores and supermarkets to expand our business with
our best practices.
z Therefore, in this business, we target its sales of 670 billion yen in

FY2013, an annual average growth rate of 7.4%.

17
Network AV 18
(yen: billions)
● Strengthen product competitiveness of flat-panel TVs ＜Sales＞
Average Annual 2,150.0
・PDP: Make “3D = Panasonic” Growth Rate
Significantly improve in energy saving performance +10%

Others
Others
FY201
FY2013 3DTV ratio 70% *1,600.0
・LCD: Expand LED backlight TVs
ＢＤ
BD
FY2013 LEDTV ratio 60%
ＤＳＣ
DSC
● Expand sales of digital cameras
・Become Top 3 maker in industry
with LUMIX sales of 20 million units
・Digital interchangeable lens system Flat-
Flat-
camera business: panel
panel
Make a key business with more than TV
ＴＶ
10 % market share
・Compact camera business:
Capture new demand mainly FY2010 FY2013
in emerging countries ＊Figures for FY2010 include annual
figures for SANYO.
z In the PDP TV business, we will further improve product quality

to maximize our advantage for 3DTV and drastically lower
power consumption.
z 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.
z We will also focus on development of organic light emitting

display (OLED) as a favorite of next generation display.
z 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.
z Therefore, in this business, we target the sales of 2,150 billion

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

18
Network AV business
Flat-Panel TV 19
Cost structure
◆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
Products / Marketing
◆Raise selling price by introducing 3D and LED and

carry out intensive advertising investment in major counties
◆Increase number of products for high-volume segment

<Emerging countries: Over 11 million units in FY2013>
Phase change to make business profitable
z Our biggest challenge for network AV business is to

improve profitability of flat-panel TV business, rather than
to increase sales.
z 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.
z Second, we reduce our investment (CAPEX) in this

business from FY2012, and we will maximize payoff for the
investment.
z Third, we will raise our selling price by increasing its sales

with our 3DTVs and LED backlight TVs to improve its
profitability.

19
Next-Generation Key Businesses 20
● Healthcare
・Unify business strategies with PEW and SANYO <Sales>
- In-hospital work assistance (robot business, etc.)
- Home healthcare (yen) <target>
- Early diagnosis / treatment 1 trillion
GT12
・Shift business: Lay the foundation
for full-fledged growth
Company name change:
from Panasonic Shikoku Electronics Co., Ltd. 540 billion
to Panasonic Healthcare Co., Ltd.
● Security
LED*
・Increase sales of LINK products
・Build up engineering capability overseas Security
・Promote alliances with large companies
● LED Healthcare
・Expand global business FY2010 FY2013 FY2016

・Strengthen cost competitiveness and *Excluding LED backlight TVs
supply capability
z As a part of next-generation key business, we will form our

foundation of healthcare, security and LED businesses for
future growth.
z In the healthcare business, all our group companies unify

their strategies focusing on in-hospital work assistance,
home healthcare, and early diagnosis and treatment.
z Also, Panasonic Shikoku Electronics Co., Ltd. will make a

full-scale shift from all of visual, storage, and device
businesses to healthcare business by changing the
Company name to Panasonic Healthcare Co., Ltd. on
October 1.
z 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.

20
Contents 21

Group Strategy
z I would like to give a explanation that we are expanding

our overseas business especially in emerging countries.

21
Expand Overseas Business 22
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)
Russia
35 *BRICS+V・MINTS+B
Balkans (Consumer / systems sales)
5 China
12 Turkey 107
10 India 9
Nigeria 48 Mexico
Saudi Vietnam China and Asia
11 Arabia 30
Brazil 36
30
Indonesia
*Figures FY2010⇒FY2013 sales increase
(Data source: Overseas Regional Management Divisions)
(yen: billions)
z As a part of our ‘GT12’, we are shifting our business

furthermore to be globally-oriented especially by large
sales increase in emerging countries.
z 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.’
z As a result, we plan to increase the ratio of overseas sales

from 48% to 55% in FY2013.

22
Product Planning for Consumers 23
Brazil Vietnam
India new Lifestyle Discover Vietnam
China
new Research Center Project
High-volume China Lifestyle
Market Research Center
Research Center
Strengthen Lifestyle Research Overseas
Business domains: Life research centers, lifestyle concept research centers, etc.
To
To be
be
established
established
Global Consumer Research Center
in
in FY2011
FY2011 (Lifestyle research hub)
Share knowledge with each region and promote optimum
standardization of methods used to understand customers
z Expanding overseas business in emerging countries, we have

developed our products for high-volume segment with our
strong product planning for local consumers in our lifestyle
research institutes around the world.
z 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 promote
optimum standardization of all lifestyle research institutes.
z 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.

23
Products for High-Volume Segment 24
LCD TVs in India (Available in June, 2010)
Lifestyles
Lifestyles Top power-saving and
Focus
Focus on
on
high-output speakers in
Electric bills essentials
essentials industry
Good sound Eliminate
Eliminate
Wall-hanging Simple TV pedestal
non-essentials
non-essentials
32” LCD TV
Washing machines in China (Released in March, 2010)

Lifestyles 1st grade ranked for
Lifestyles water-saving &
Focus
Focus on
on 2nd grade ranked for
essentials
essentials energy-saving
Water-saving
Energy-saving Eliminate
Eliminate No manual operation
Water-saving WM non-essentials
non-essentials function
Sales for high-volume segment: 1 trillion yen level in FY2013
z Those are some examples of our products for high-volume

segment.
z 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 simplified
its pedestal with only one backlight to make it more affordable
for middle class consumers.
z Therefore, we plan to increase our sales of products for high-

volume segment to 1 trillion yen level in FY2013.

24
Global Home Appliance Business 25
Set up a manufacturing site in Brazil
Home appliance products* Regional partnership
overseas sales +15%
(year-on-year) Set up a manufacturing site in India
Create new demand
Develop full-fledged business in Europe

Expand product range
Strengthen foundation in Japan, China and Asia
Expand sales by strengthening local sites
Focus on core environmental technologies
Heat pumps *Air conditioners, refrigerators,

Inverters Green materials washing machines, microwave ovens
vacuum cleaners, small kitchen appliances,etc.
FY2010 FY2013 FY2016
z We have also increased our global sales of home

appliance business with our products for high-volume
segment.
z In Japan, China and Asian countries, we have restructured

and improved our local manufacturing and sales sites to
expand our business.
z In Europe, we will start full-fledged business to develop

more products speedily with outsourcing, such as OEM
from local manufacturers.
z Furthermore, in India and Brazil, we plan to establish our

new manufacturing sites.
z We will focus on strengthening core environmental

technologies to expand our global home appliance
business.
25
Contents 26

Group Strategy
z I would like to talk about our solutions and systems

businesses. Converting our paradigm to be solutions- and
systems-oriented is one of the key points of shifting
business structure with the comprehensive strengths of all
Panasonic Group.

26
Systems & Equipment Business 27
Large overseas sales increase
Systems & equipment <Overseas sales>
business
Annual Average
1 trillion yen
(FY2010→2013) growth rate
+11% Organization
Sales
*720 billion yen
*2.2 tri. yen Human
resources
2.6 tri. yen
Collaboration
Overseas
ratio
*33%
Establish structure
39% for each country / region
FY2010 FY2013
＊Figures for FY2010 include annual figures for SANYO Electric.
z We will focus on expanding our systems & equipment

business overseas with an annual average growth rate of
11%, centering on China and northeast Asia.
z 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.

27
Group-Wide Collaboration 28
Carry out “Comprehensive Solutions Strategy” with Corporate Division
for Promoting Systems & Equipment Business playing key role
Trans-
Office & Develop & Provide
Education Hotel Medical portation Retail Housing
& airport
factory “Solutions Package” for 7 key industries
＋
Sales divisions by country / region Establish comprehensive
Corporate Division for solutions-type business model
Promoting Systems &
Equipment business
Increase engineering capability
Energy systems Collaborate with Partners & SIer
Heating/Refrigeration
/Air conditioning 6 key Network AV Strengthen global PF functions
businesses
Security LED
Healthcare
Business domain companies Make comprehensive
AVC SN HA LC PES PEW PSECSANYO
・・・
solutions possible
z To offer more comprehensive solutions to our customers,

we will establish our business promotion structure to
enable group-wide collaboration.
z We started to develop our ‘Solutions Package’ targeting

seven key industries led by our ‘Corporate Division for
Promoting Systems & Equipment Business’.
z In this way, we will furthermore establish a comprehensive

solutions-type business model, from planning to
maintenance, combining our six key businesses.

28
‘Comprehensive Solutions for Entire Town’ 29
‘Smart Town’ Entire town Reduce
Locally produce
& consume
Peace of mind
Efficient
social
concept CO2 & wastes & safety
energy infrastructure
FUJISAWA Sustainable ‘Smart Town’ Concept

Provide equipment /
systems / solutions in a ・Collaborate with Fujisawa city and developers
comprehensive manner ・Make use of Panasonic’s former factory site (50 acres)
Provide for for entire

Elderly facilities
community services entire house medical facility
Detached
house Condominiums
Participate in & contribute Security Parks

Healthcare
to town development Commercial
facilities Roads
for for entire
Collaboration with local entire store public facility
governments, developers Community grid
and business partners (in Japan)
Establish new business model in ‘Fujisawa’ and make inroads into global market
z We will also apply our ‘Comprehensive Solutions’ business

model to ‘smart town’ concept, reducing CO2 emission and
promoting ‘local energy production and consumption in
towns.’
z 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.
z Combining various comprehensive solutions, we will

establish a new business model in Fujisawa and make
inroads to the global market in the future.

29
Contents 30

Group Strategy
z Next, I would like to talk about our collaboration with

SANYO.

30
Synergies in FY2013 31
<Operating profit basis>
Cost reduction by
strengthening (yen: billions)
management structure
(central purchasing
for procurement, etc.) +38.0
+80.0
Business collaboration
(sales increase, more or more
efficient development, etc)
+52.0
Sales decrease, etc. -10.0
Strategic Working Committee

for Group Collaboration
(established as of April 1, 2010)
z 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.
z 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 by
strengthening management structure, such as central
purchasing for procurement and sharing infrastructure.
z We have ‘Strategic Working Committee for Group

Collaboration’ inaugurated as of April 1 to speed up
synergy effect.

31
Our Collaborations 32
Appliance business Cost reduction through centralization
Procurement,
IT, etc. Central
・
purchasing
・・
Effect:
■Unify business strategies 25 bil. yen
- Launch collaboration products Make optimum price the Group standard and
- Unify development & consolidate operating sites improve efficiency through consolidation
Sharing infrastructure Unification of group visions
Infrastructure
Effect:
13 bil. yen
(to be included underneath)
Share overseas warehouses & offices
No.1 Green Innovation Company
(started to share warehouse in Dubai in Apr. 2010, in the Electronics Industry
and will do in other areas.)
z As a part of collaboration with SANYO, we unify our

appliance businesses and launch our new collaboration
products. Meanwhile, we will unify R&D and consolidate
operating sites.
z In FY2013, we expect to generate 25 billion yen by cost

reduction through centralization and consolidation of
procurement and 13 billion yen by sharing infrastructure
and knowledge.
z We also intend to unify our corporate group visions, and

share our ‘eco ideas’ label.

32
Contents 33

Group Strategy
z Finally, I will talk about our management innovation that

supports group strategy.

33
CO2 Emission Reduction 34
Targeting peaking-out by FY2019
*Products included here are Products
only main finished products
CO2 Emissions
reduction
120 mil. tons Create and save energies
CO2 Emissions (-50% of estimates)
TV Air Lighting Solar cells
reduction conditioning bulbs
50 mil. tons
Production
Establish ‘top-runner plants’
Aiming to SANYO plant Panasonic plant in
Products Products peak out in Kasai Suminoe
(in Japan) (in Japan)
Production Production
FY2006 Normal Target FY2019 ・Photovoltaic power ・Manage operations by

without any
(base year) improvement generation (1MW) coordinating production
(Estimated) ・Lithium ion battery and power generation
system (1.5MWh) facilities (facilities-link)
FY2013
z First, contribution to the protection of environment is one of

the most important in our management innovation and our
aim of all business activities.
z 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.
z Expanding the size of contribution in reducing CO2, we

intend to target our total CO2 emission peaked out by
FY2019.

34
Recycling-Oriented Manufacturing 35
<Future Goal> <Targets in FY2013>
Maximize ratio of ‘Recycled resources to Make most of recycled resources usage
total resources used’
Pursue efforts to zero wastes from production activities
Total recycled resources
used (B)
Total resources Total resources used
> 12%
used (A) (A)
Pursue zero emissions at plants

Production products
products
activities
Resources recycled
Total recycled Wastes at plants (D)
resources used (B) at plants (C)
Wastes produced
≧ 99%
Resources at plants (C)
recycled at plants Waste
(D) disposal
Develop 3R design & recycling technologies
<recycling>
Recycled Through company-wide collaboration,

Recycled
materials materials strengthen efforts from design stage
z As a part of our environmental contribution, recycling-

oriented manufacturing is also important.
z We pursue efforts to zero wastes from production activities,

minimizing usage of total resources and maximizing usage
of recycled resources in 2018.
z 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.

35
Create New Businesses 36
● Domain companies Notes: All figures indicate
cumulative amount for next 3 years.
Establish
Sales and CAPEX Sales in new business structure
(yen: billions)
・Sales 1.1 trillion yen ・AVC Networks Company
established New Business
・Capex 230 billion yen Promotion Office
600.0
350.0 ・Home Appliances Company
180.0 carry out New Business
FY2011 FY2012 FY2013 Project
● Head office (New large-scaled projects)

（projects better to be managed by head office than single business domain company)
Strategic ・Strategically use budget for head office

investment (77 billion yen or more)
Establish ・Established “Innovation Promotion Center” as of April 1
structure
z We also enhance our capability to create new businesses

for the future.
z 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.
z 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.

36
Cash Flow-Oriented Management 37
● Carry out business portfolio strategy
Businesses to support
Invest & develop for future
next-
next-generation
Key businesses Drive growth for Group
Businesses to be
revitalized Revitalize by renovating and shifting strategies
Businesses to Shift resources to growth areas by selling or
be withdrawn closing down businesses
● Improve cash flow generation capability

Midterm Enhanced Centralize procurement, Internalize
Cash Flow Management strengthen design cost management
Project value engineering process
Management of large-scaled Cost reduction of Apply to all products

investments more than 1.5 trillion yen
theoretical inventory applied
throughout all group companies
z 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 investment
decision leveraging growth capability and profitability.
z 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, and
improve working capital by developing our theoretical
inventories applied throughout all group companies.
z We will take all appropriate steps to increase profitability,

generating cash flow.

37
Net Cash and Cash Flow 38
● FCF more than 800 billion yen cumulative in next 3 years
● ‘Midterm Enhanced Cash Flow Management Project’ in all group companies
(yen: billions)
1,000 - Net Working - 1,000
Net CAPEX Capital, etc. Dividends,
Income etc.
Net Cash
500 - - 500
500.0
▲119.3
Net Cash
FCF +800 billion yen or more
-500 - - -500
End of Mar. 2010 End of Mar. 2013
(FY10) (FY13)
(actual) Net cash +600 billion yen or more (estimates)
z With our efforts, we will have strong financial position as

the same level as we used to have in the past, by
generating more than 800 billion yen of FCF cumulatively
in the next three years and making our net cash position
positive as early as possible.

38
FY2011 Forecast & GT12 39
(yen: trillions)
10.0
Sales 8.8
7.4
More than 5.0%
Operating
profit ratio 2.8%
2.6%
FY2010 FY2011 FY2013

ROE -3.7% 1.8% 10%
z Our targets in FY11 are shown above. Achieving those

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

39
40
z In our new midterm management plan, ‘GT12’, Panasonic,

with all group companies, will drastically shift our paradigm
for growth and lay the foundation to be a Green Innovation
Company.
z Thank you for your continuous support.

40
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 41
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.

41
<Supplement 1> 42
ＧｒｅｅｎＴｒａｎｓｆｏｒｍａｔｉｏｎ 2012 (ＧＴ12)
--“Paradigm
“Paradigm shift toward growth”
growth” & ““building
building foundation of Green Innovation Company”
Company”-
Company”-
Operating profit ratio FCF 800 billion yen or more (3yr. total)
Management 5% or more
goals
ROE 10%
Sales 10 trillion yen Reduce 50 million ton CO2 emission
Build up Group 6 key businesses 1.2 trillion yen increase

・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
Group Expand overseas business in emerging

countries Overseas Sales Ratio to 55%
midterm
management ・Address high-volume segment through manufacturing to meet customers’ needs
・Globally expand appliance business
strategy Systems & Equipment
Strengthen solutions & systems business 2.6 trillion yen
・Largely increase in sales for systems & equipment businesses overseas
・’comprehensive solutions’ through combined all Groups’ efforts
Promote and implement collaboration Synergy 80 billion yen
with SANYO or more
Environmental contribution: reduction in Speed up initiatives through
Management Corporate Division for
CO2, recycling-oriented manufacturing Group Management Innovation
innovation to
Strengthen capability to create new business
support
Accelerate global human resources development
strategy
Cash flow-oriented management

42
<Supplement 2>
Group Six Key Businesses & Main Products
Heating/
Energy Systems Network AV Healthcare Security LED
Refrigeration/AC
Digital AVC ・Power supply ・PDP/TV ・Blood glucose ・Security camera ・LED backlight TV
Networks ECU system for ・LCD/TV sensor ・Network camera
eco-car ・DSC ・Ultrasonograph ・Door intercom
・Inverter for eco- ・BD player ・Hearing aid system
car /recorder etc. etc.
etc. ・Mobile phone
・PND etc.
Home ・Fuel cell ・Air conditioner ・LED bulb
Appliances ・Compressor for ・Heat pump water etc.
eco-car heating systems
etc. ・Ventilating fan
・Dehumidifier/
humidifier/air
purifier etc.
Segment *
Components ・Lithium-ion ・LED device

and Devices battery
・Capacitor for
eco-car etc.
PEW and ・Power ・Massaging chair ・Fire alarm for ・LED lighting
PanaHome distribution/ ・Blood pressure house equipment
Wiring/Controller manometer ・Disaster & crime
etc. prevention system
etc.
SANYO ・ Lithium-ion ・Industrial air ・DSC/camcorder ・Bio & dispensing
battery conditioning etc. related equipment
・Solar cell ・Refrigerator and ・Electronic health
・Rechargeable Freezer/showcase record system
battery for etc. etc.
eco-car etc.
Other
* Segments in which business domain companies in charge of 6 Key Businesses are classified

43

Panasonic MIDTERM STRATEGY 20100507 Vision Data e

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Panasonic Group

New Midterm Management Plan

z This presentation outlines Panasonic’s new midterm

z Today, I would like to present four main points:

1) Summary of GP3 Plan

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

1. Summary of GP3 Plan

2. New Midterm Management Plan

3. Midterm Strategy for Panasonic Group

z This section outlines the summary of GP3 plan.

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

Far below targets in sales and ROE

z Due to thorough "Itakona" activities (cost optimization through the analysis

Consolidated financial results for FY 2010

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

1. Summary of GP3 Plan

2. New Midterm Management Plan

3. Midterm Strategy for Panasonic Group

z This section outlines Goals for New Midterm Management

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

Paradigm shift for growth

a Green Innovation Company

z We have become new Panasonic Group, adding SANYO

z The Company is determined to implement two initiatives:

z We will become ‘Panasonic Group with significant growth

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

Green Transformation 2012

z These are two initiatives.

z More specifically, to convert its paradigm for growth, the

z We name our new midterm management plan “Green

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

Sales 10 trillion yen

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

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

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

z This chart shows our transformation indexes, which we set

z To be in new business fields, Panasonic aims to increase

z To be globally-oriented, the Company plans to increase

z To be solutions & systems oriented, the Company aims to

z These are transformation indexes which we will pursue

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

4. Management Innovation that Supports

z This section outlines midterm strategy for Panasonic

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

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

Entire Home and

z This chart shows our six key businesses.

z Energy system, Heating/Refrigeration/Air Conditioning and Network

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

z The Company pursues its possibilities to grow, offering solutions for

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

＊Figures for FY2010 include annual figures for SANYO

z Regarding the six key businesses, the Company plans to

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

Group total 1.06 trillion yen

z The Company will drastically shift its management

z In six key businesses which comprised 35 % of the

z Regarding CAPEX, the Company will decrease total cost

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

（power distribution and control system）

● Products related to eco-cars Energy

z The Company aims at the large annual average growth

z We will target total sales of 850 billion yen for energy