Annual Report 2012

Panasonic Corporation For the year ended March 31, 2012 Panasonic Annual Report 2012 Search Contents Returnpage 1 Next

Financial To Our Performance Top Message Segment R&D Design Intellectual Environmental Corporate Financial and Highlights Highlights Stakeholders Summary Information Development Property Activities Governance Corporate Data

Profile Contents

Since its foundation in 1918, Panasonic Corporation has been 2 Instructions Regarding the Use of Navigation 10 38 and Category Tabs/Editorial Policy/Disclaimer To Our Stakeholders R&D guided by its basic management philosophy, which states Regarding Forward-Looking Statements that the mission of an enterprise is to contribute to the 11 Performance Summary 39 Design Development progress and development of society and the well-being of Financial Highlights people worldwide. 3 Major Financial Indicators (Graphs) Top Message In January 2012, Panasonic undertook a major reorgani- 40 Intellectual Property 15 Interview with the New President zation of its Group-wide businesses including Panasonic 4 Major Financial Indicators (Tables) Electric Works Co., Ltd. and SANYO Electric Co., Ltd. Through 41 17 Messages from Senior Executive Environmental Activities this process of reorganization, the Company has shifted to Highlights 18 Consumer Business Field a business model-based structure that focuses on the Highlights 1 19 Solutions Business Field Corporate Governance perspectives of its customers. Under this new structure, every 5 21 Components & Devices Business Field effort is channeled toward creating synergies that take full Taking Full Advantage 42 Corporate Governance Structure of the Group’s advantage of the Group’s products, systems, and services. Comprehensive Policy on Control of Strength in India Segment Information 45 Always keeping in mind its brand slogan, Panasonic ideas Panasonic Corporation for life, the Company will continue to enrich the lives of people 23 Business at a Glance Highlights 2 around the world and contribute the future of the earth and 6 47 Directors, Corporate Auditors and Business Review and Strategies Executive Ofﬁcers the progress of society. Cultivating the Inland 24 Markets of China Based on the A23 AVC Networks Strategy 24 Financial and Corporate Data Appliances 7 Highlights 3 26 50 Financial Review Panasonic has positioned the environment at Expanding Applications Systems & Communications Consolidated Financial Statements the heart of all its business activities as it aims for High Capacity 27 53 Lithium-Ion Batteries to become the No. 1 Green Innovation Eco Solutions Stock Information Company in the Electronics Industry. 29 57 The Company will endeavor to secure a sustainable society Highlights 4 8 58 Company Information in tandem with business growth by promoting Green Life 30 Automotive Systems TOKYO SKYTREE ® Innovation that helps realize green lifestyles to enrich people’s Lighting up the 59 Quarterly Financial Results and lives, and Green Business Innovation to help reduce the Evening Sky with All 31 Industrial Devices Investor Relations Ofﬁces LED Lighting environmental impact of its business activities to the greatest ©TOKYO-SKYTREE©TOKYO-SKYTREE extent possible while recommending that this kind of business 33 Energy Note: Risk Factors style be taken up across society. 9 Highlights 5 Please refer to the Company’s Form 20-F for details regarding The ‘eco ideas’ mark symbolizes Panasonic’s strong Providing 34 Other business and other risks. commitment to continuous environmental sustainability Comprehensive Solutions at Dalian management. Best City 36 Overseas Review by Region Panasonic Annual Report 2012 Search Contents Returnpage 2 Next

Instructions Regarding the Use of Navigation and Editorial Policy Category Tabs This Annual Report contains wide-ranging information including details of With the exception of the relevant page number, navigation tabs will not appear when each Panasonic’s business strategies and ﬁnancial position that assist mainly page is printed. individual and institutional investors in making investment decisions. In this Report, particular emphasis was placed on the following points. 1. New segment results reporting Navigation tab With the shift to a new structure from January 2012, the Company has presented information regarding new segments. Return to Contents Page number CSR 2. An explanation of the Panasonic Group’s direction and ideal image http://panasonic.net/csr/ going forward Details are presented to provide a deeper understanding of the Group’s future management direction with an interview with Kazuhiro Tsuga, appointed Search Contents Returnpage 1 Next president of Panasonic Corporation in June 2012, and messages from the presidents of the business domain companies and the director of the marketing sector under the new structure. The search function is Return one page Forward one page available for this pdf file. Please refer to the website URL indicated to the right for information on Panasonic’s approach and activities regarding corporate social responsibilities Environmental Activities (CSR) and the environment. http://panasonic.net/eco/

Disclaimer Regarding Forward-Looking Statements

Search Contents Returnpage 1 Next Panasonic Annual Report 2012 This Annual Report includes forward-looking statements (within Group incurring additional costs of raising funds, because of the meaning of Section 27A of the U.S. Securities Act of 1933 changes in the fund raising environment; the ability of the Financial To Our Performance Top Message Segment R&D Design Intellectual Environmental Corporate Financial and and Section 21E of the U.S. Securities Exchange Act of 1934) Panasonic Group to respond to rapid technological changes and Highlights Highlights Stakeholders Summary Information Development Property Activities Governance Corporate Data about Panasonic and its Group companies (the Panasonic Group). changing consumer preferences with timely and cost-effective To the extent that statements in this Annual Report do not relate to introductions of new products in markets that are highly competitive historical or current facts, they constitute forward-looking statements. in terms of both price and technology; the possibility of not achieving These forward-looking statements are based on the current expected results on the alliances or mergers and acquisitions assumptions and beliefs of the Panasonic Group in light of the including the business reorganization after the acquisition of all information currently available to it, and involve known and unknown shares of Panasonic Electric Works Co., Ltd. and SANYO Electric risks, uncertainties and other factors. Such risks, uncertainties and Co., Ltd.; the ability of the Panasonic Group to achieve its business other factors may cause the Panasonic Group’s actual results, objectives through joint ventures and other collaborative agreements Category tab performance, achievements or ﬁnancial position to be materially with other companies; the ability of the Panasonic Group to maintain different from any future results, performance, achievements or competitive strength in many product and geographical areas;

Financial To Our Performance Segment Design Intellectual Environmental Corporate Financial and financial position expressed or implied by these forward-looking the possibility of incurring expenses resulting from any defects in Highlights Top Message R&D Highlights Stakeholders Summary Information Development Property Activities Governance Corporate Data statements. Panasonic undertakes no obligation to publicly update products or services of the Panasonic Group; the possibility that Click to go to the first page of each category. any forward-looking statements after the date of this Annual Report. the Panasonic Group may face intellectual property infringement Investors are advised to consult any further disclosures by Panasonic claims by third parties; current and potential, direct and indirect in its subsequent filings with the U.S. Securities and Exchange restrictions imposed by other countries over trade, manufacturing, Commission pursuant to the U.S. Securities Exchange Act of 1934 labor and operations; fluctuations in market prices of securities and its other filings. and other assets in which the Panasonic Group has holdings or The risks, uncertainties and other factors referred to above changes in valuation of long-lived assets, including property, include, but are not limited to, economic conditions, particularly plant and equipment and goodwill, deferred tax assets and consumer spending and corporate capital expenditures in the uncertain tax positions; future changes or revisions to accounting United States, Europe, Japan, China and other Asian countries; policies or accounting rules; as well as natural disasters including volatility in demand for electronic equipment and components earthquakes, prevalence of infectious diseases throughout the from business and industrial customers, as well as consumers in world, disruption of supply chain and other events that may negatively many product and geographical markets; currency rate fluctuations, impact business activities of the Panasonic Group. The factors notably between the yen, the U.S. dollar, the euro, the Chinese yuan, listed above are not all-inclusive and further information is contained Asian currencies and other currencies in which the Panasonic in Panasonic’s latest annual reports, Form 20-F, and any other Group operates businesses, or in which assets and liabilities of the reports and documents which are on file with the U.S. Securities Panasonic Group are denominated; the possibility of the Panasonic and Exchange Commission. Panasonic Annual Report 2012 Search Contents Returnpage 3 Next

Major Financial Indicators (Graphs) Major Financial Indicators (Tables) Major Financial Indicators (Graphs) Panasonic Corporation and Subsidiaries Years ended March 31 Net Income Attributable to Panasonic Net Sales Operating Proﬁt and Ratio to Sales Corporation and Ratio to Sales R&D Expenditures and Ratio to Sales

(Trillions of yen) (Billions of yen) (%) (Billions of yen) (%) (Billions of yen) (%) 10 600 6.0 300 4.0 800 8.0

6.6% 8 7.8 –772.2 0 0 600 6.0 4.1 400 4.0 520.2 6

−300 −4.0 400 4.0

4 200 2.0 3.7 −600 −8.0 200 2.0 2 0.6% –9.8% 0 0 43.7 0 −900 −12.0 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Domestic Operating Profit [left scale] Net Income Attributable to Panasonic Corporation [left scale] R&D Expenditures [left scale] Overseas Operating Profit/Sales Ratio [right scale] Net Income Attributable to Panasonic R&D Expenditures/Sales Ratio [right scale] Corporation/Sales Ratio [right scale]

Panasonic Corporation Shareholders’ Dividends Declared per Share Capital Investment and Depreciation Equity and ROE Free Cash Flow and Payout Ratio

(Billions of yen) (Trillions of yen) (%) (Billions of yen) (Yen) (%) 500 4 40.0 600 40 40.0

400 400 3 20.0 30 30.0

300 294.8 200 259.1 2 1.9 0 20 20.0 200 0 –339.9

1 −20.0 10 10.00 10.0 100 –200

–34.4% 0 0 −40.0 –400 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009* 2010* 2011 2012* Capital Investment Panasonic Corporation Shareholders’ Equity [left scale] Free Cash Flow Dividends Declared per Share [left scale] Depreciation ROE [right scale] Payout Ratio [right scale]

*Payout ratios have not been presented for those fiscal years in which the Company incurred a net loss attributable to Panasonic Corporation. Panasonic Annual Report 2012 Search Contents Returnpage 4 Next

Major Financial Indicators (Graphs) Major Financial Indicators (Tables) Major Financial Indicators (Tables) Panasonic Corporation and Subsidiaries Years ended March 31 Download DATA BOOK (10-Year Summary)

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

For the year (Millions of yen) Per share data (Yen)

Net sales 9,068,928 7,765,507 7,417,980 8,692,672 7,846,216 Net income (loss) attributable to Panasonic Corporation per Operating proﬁt 519,481 72,873 190,453 305,254 43,725 common share

Income (loss) before income taxes 434,993 (382,634) (29,315) 178,807 (812,844) Basic 132.90 (182.25) (49.97) 35.75 (333.96)

Net income (loss) 310,514 (403,843) (170,667) 85,597 (816,144) Diluted 132.90 (182.25) − – –

Net income (loss) attributable to Dividends declared per share 35.00 30.00 10.00 10.00 10.00 281,877 (378,961) (103,465) 74,017 (772,172) Panasonic Corporation Panasonic Corporation shareholders’ 1,781.11 1,344.50 1,348.63 1,236.05 834.79 Capital investment* 449,348 494,368 385,489 403,778 294,821 equity per share

Depreciation* 282,102 325,835 251,839 284,244 259,135

R&D expenditures 554,538 517,913 476,903 527,798 520,217 Ratios (%)

Free cash ﬂow 404,687 (352,830) 198,674 266,250 (339,893) Operating proﬁt/sales 5.7 0.9 2.6 3.5 0.6

* Excluding intangibles Income (loss) before income taxes/sales 4.8 (4.9) (0.4) 2.1 (10.4)

Net income (loss) attributable to At year-end (Millions of yen) 3.1 (4.9) (1.4) 0.9 (9.8) Panasonic Corporation/sales Long-term debt 232,346 651,310 1,028,928 1,162,287 941,768 ROE 7.4 (11.8) (3.7) 2.8 (34.4) Total assets 7,443,614 6,403,316 8,358,057 7,822,870 6,601,055 Panasonic Corporation shareholders’ 50.3 43.5 33.4 32.7 29.2 Panasonic Corporation equity/total assets 3,742,329 2,783,980 2,792,488 2,558,992 1,929,786 shareholders’ equity Payout ratio 26.3 − − 28.0 – Total equity 4,256,949 3,212,581 3,679,773 2,946,335 1,977,566 Notes: 1. The Company’s consolidated financial statements are prepared in conformity with U.S. generally accepted accounting Number of shares issued at principles (U.S. GAAP). 2,453,053 2,453,053 2,453,053 2,453,053 2,453,053 year-end (thousands) 2. Dividends per share reflect those declared by the Company in each fiscal year and consist of interim dividends paid during the fiscal year and year-end dividends paid after the fiscal year-end. Number of shareholders (persons) 234,532 277,710 316,182 364,618 557,102 3. In order to be consistent with generally accepted financial reporting practices in Japan, operating profit, a non-GAAP measure, is presented as net sales less cost of sales and selling, general and administrative expenses. The Company Number of consolidated companies believes that this is useful to investors in comparing the Company’s financial results with those of other Japanese 556 540 680 634 579 (including parent company) companies. See the consolidated statements of operations on page 54. 4. Diluted net income (loss) attributable to Panasonic Corporation per common share after fiscal 2010 have been omitted because the Company did not have potential common shares that were outstanding for the period. Number of associated companies 139 182 232 114 103 under the equity method Panasonic Annual Report 2012 Search Contents Returnpage 5 Next

Highlights 1 Highlights 2 Highlights 3 Highlights 4 Highlights 5

Taking Full Advantage of the Group’s Expanding Products Handled as well as Sales Channels Comprehensive Strength in India Panasonic converted Anchor Electricals Private India is fast on its way to becoming a huge market and offers enormous potential. Panasonic is showcasing Limited, a major Electrical Construction Materials its comprehensive strength to a broad customer base through a variety of initiatives. In addition to organizing (ECM) company in India, into a wholly owned events that allow participants to gain first-hand experience of the Group’s products and services in most major subsidiary in 2009. More recently in May 2012, cities and regional markets, Panasonic is opening showrooms, strengthening BtoB sales, upgrading Anchor acquired a major stake of Firepro Systems Private Limited, an integrated solutions provider for and expanding its BtoC product lineup and bolstering sales promotion activities. fire protection, security and building management systems for both bolstering its sales of BtoB products such as ECM and fire alarms, and expanding its solutions business including installation and maintenance Organizing Experience Panasonic services. Events in India’s Four Major Cities With the aim of providing participants with the opportunity to experience the Company’s products and services New Showroom Opened in Bollywood first-hand, Panasonic held Experience Panasonic events in In April 2011, Panasonic opened its second showroom four major cities including Delhi during fiscal 2012. These in India at Bollywood, Mumbai, the heart of the Indian events, were designed to film industry. Showcasing showcase Panasonic’s focus Panasonic’s wide ranging on the environment, and products and solutions, attracted approximately this facility aims to further 180,000 visitors. Among a expand the Company’s host of initiatives, the BtoB business. Company displayed its Life Innovation Container, a stand-alone power system that packages Panasonic’s energy creation, storage and Actively Promoting the Appeal of saving technologies into a single Popular Beauty and Healthcare Products container. The new 50° Hot-Air dryer, one of the many products, designed for the Indian market, was launched by three young actresses who have been selected to promote Panasonic’s beauty and healthcare products in India. The Company’s wide-ranging promotional initiatives such as roadshows, promotions through mass media and SNSs, are contributing to increased sales. Panasonic Annual Report 2012 Search Contents Returnpage 6 Next

Highlights 1 Highlights 2 Highlights 3 Highlights 4 Highlights 5

Cultivating the Inland Markets of China Panasonic Living Centers that Harness the Group’s Collective Strengths Based on the A23 Strategy Panasonic Living Centers handle not only AV products Panasonic is geared toward promoting an A23 (Attack 2nd and 3rd tier cities) strategy in China in an effort to expand sales. but also the Group’s full lineup of products. Panasonic In addition to China’s major cities, which are earmarked as priority markets, the Company will place considerable emphasis on developing maintained a network of around 350 centers in China business opportunities in regional cities that can be expected to experience future growth. as of March 31, 2012. Panasonic will work diligently to cultivate the China market by opening, upgrading and expanding Panasonic Living Centers, locally oriented stores Looking ahead, the Company will opened to sell Panasonic products exclusively, while proposing and marketing a range of product groups that provide solutions for the entire home. accelerate the pace of new shop openings focusing mainly on inland areas.

The 1st Panasonic Living Centers Convention Held In June 2011, owners and managers of Panasonic Living Centers were invited to Shanghai for the 1st Panasonic Living Centers Convention. The convention was a forum for Panasonic to exhibit and display its range of new products and to reconfirm the Company’s complete sales and marketing activity support.

BolsteringBolstering aarearea mmarketingarketing andand ccultivatingultivating iinlandnland mmarketsarkets mmainlyainly throughthrough ﬁveﬁve regionalregional salessales companiescompanies Holding Sales Meetings as a Forum Five regional sales companies to Gain First-hand Experience Bases SalesSales CCompanyompany ooff Panasonic is actively conducti NorthNorth CChinahina ng roadshows in each region of China in order to both exhibit its Sales Company of full range of products and promote immediate Northeast China sales. Meetings are also held to provide

SSalesales CCompanyompany participants with ofof WWestest CChinahina Sales Company ﬁrst-hand use and of East China experience of the SSalesales CCompanyompany ooff SSouthouth CChinahina Group’s beauty care and cooking appliance products. Microcomputer rice cooker Popularly priced air purifiers Panasonic Annual Report 2012 Search Contents Returnpage 7 Next

Highlights 1 Highlights 2 Highlights 3 Highlights 4 Highlights 5 Expanding Applications for High Capacity Lithium-Ion Batteries In terms of their specific energy density, lithium-ion batteries offer approximately three times the level of mass energy density than nickel metal-hydride rechargeable batteries. Adopting proprietary safety technologies, Panasonic’s products deliver both high capacity and reliability and are accordingly attracting wide acclaim. While playing a major role in a variety of consumer devices that form the mainstay pillar of the mobile era, Panasonic’s products are widely used in other areas including hybrid vehicles and EVs. The Company is also actively promoting broad-based applications for its Energy Creation-storage Linked System in combination with the high-efficiency HIT photovoltaic modules. Promoting Use in Automobiles and Scooters Recognized for their high reliability and durability, the decision has been made to employ Panasonic’s Energy Creation-storage automotive lithium-ion batteries in over 10 models by Automobiles / scooters five of the world’s leading automobile manufacturers. Linked System In addition, deliveries are being made for use as electric drive systems in electric scooters.

Putting Forward Energy Creation-storage Linked System Proposals for the Home, Retail Stores, Ofﬁce Buildings and Factories Panasonic is putting forward Energy Creation-storage Linked System proposals that combine the Company’s HIT photovoltaic modules and lithium-ion batteries in a single unit.

Strengthening Smartphone Measures amid Growing Demand In addition to their widespread use in notebook PCs, mobile phones and related devices, Panasonic is strengthening the development of lithium-ion batteries for application in smartphones where demand for thinner, higher capacity products continues to increase. Information and communication equipment Panasonic Annual Report 2012 Search Contents Returnpage 8 Next

Highlights 1 Highlights 2 Highlights 3 Highlights 4 Highlights 5 ® TOKYO SKYTREE Lighting up the Evening Sky The World’s Tallest Free-Standing with All LED Lighting Broadcasting Tower TOKYO SKYTREE, the newest landmark symbol in Tokyo, opened on May 22, 2012. TOKYO SKYTREE, the world’s Tailored to speciﬁc requirements, Panasonic’s LED lighting equipment has been adopted at tallest free-standing broadcasting TOKYO SKYTREE. Lighting up the sky on alternate nights with the lighting color of “Iki,” a pale tower with a height of 634m, is blue color representing the spirit nurtured in Edo, and “Miyabi,” an elegant Edo purple expressing located in an area that has been an aesthetic sense. By adopting LED lighting equipment with excellent power-saving performance an amusement quarter since the signiﬁcant reductions in energy consumption are attained. Edo era and inherits a history of The LED lighting equipment has great durability amid high and tough environments and the development of Tokyo. the lighting system incorporates a control function that manipulates the 1,995 units enabling sophisticated staging effects. Atmospheric Lighting that Changes on Alternate Nights TOKYO SKYTREE lights up on alternate nights with the color of “Iki,” represented by the pale blue light (About the TOKYO SKYTREE®) with the motif of the water of Sumida River, and Business Operators: TOBU Railway Co., Ltd. & TOBU TOWER SKYTREE Co., Ltd. “Miyabi,” the theme Design and Management: Nikken Sekkei LTD. color of Edo purple. “Iki” “Miyabi” Lighting Consulting: SIRIUS LIGHTING OFFICE INC The control of LED (Lighting Design & Simulation) lighting equipment in Construction: OBAYASHI CORPORATION intervals of 1/30th of Installation of Lighting Equipment: Denki Kogyo Company, Limited a second enables the © TOKYO-SKYTREE tower to create lighting *Computer graphic image of the tower and color staging programs.

LED Lighting Equipment that Substantially Reduces Power Consumption TOKYO SKYTREE is designed to use all-LED lights. Compared with the combined use of HID and LED lighting*, the power consumption savings come to approximately 43% and 38% for “Iki” and “Miyabi,” respectively. Power consumption using Power consumption using “Iki” color lighting “Miyabi” color lighting Existing light source Existing light source (HID+LED) 268 kW (HID+LED) 133 kW

LED lighting Reduction of LED lighting Reduction of 153 kW approximately 83 kW approximately 43% 38% * Panasonic specification under review in 2008: In comparison with HID (high-efficiency ceramic metal halide lamp) with dedicated filter and a portion of LED lighting equipment (chronometer illumination shining over the observation decks and lighting at steel frame joints) Lighting equipment for the color of “Iki” Lighting equipment for the color of “Miyabi” Lighting equipment at steel frame joints Panasonic Annual Report 2012 Search Contents Returnpage 9 Next

Highlights 1 Highlights 2 Highlights 3 Highlights 4 Highlights 5

Providing Comprehensive Solutions at Dalian Best City Promoting Construction Using Cutting-Edge China is currently actively engaged in the promotion and planning of so-called smart (eco) cities. With a total site area of 65 km2, Technology at Dalian Best City Dalian Best City is one of the largest of a total 170 projects in progress. The streets of Dalian Best City after first stage Panasonic is putting forward its comprehensive solutions for this prestigious undertaking. Proposals encompass a wide range of construction completion. Residences, office, products and services including interior fixtures, lighting, kitchen equipment, air conditioners and ventilation systems underpinned by the technology development facilities as well as schools, concepts of energy conservation, safety and security as well as comfort and convenience. With the intent of constructing a network that links cultural, sporting and leisure facilities were all all of the aforementioned, the Company is also promoting the use of its Home Energy Management System (HEMS). constructed using cutting-edge technologies.

Realizing Energy Savings through HEMS In addition to proposing comprehensive solutions that extend from ideas relating to the effective use of space including interior and lighting ﬁxtures to a variety of electric home appliances, Panasonic is also promoting its HEMS unit to provide an all-encompassing link and network system. Every effort is being made to raise awareness toward energy conservation by putting forward system proposals that help visualize energy consumption and savings.

Proposing Japanese High Quality Interior Fixtures and Housing Equipment Plans to Deliver the Company’s HEMS to Dalian Best City The sale of newly constructed condominiums with In the home an exposed concrete ﬁnish (skeleton sales) is Visualizing electric consumption Air conditioner control commonplace in China. Panasonic is putting Use from outdoor Multi air conditioning system forward proposals locations Smart energy gateway that encompass Global multi-circuit HEMS unit Smartphone monitor Visualizing air quality design, construction Air quality sensor through to Living Main Children’s room bedroom room after-sales service @ Network equipment Safety and security as well as interior functions Visualizing through ﬁxtures and housing The Internet the use of tablets Network camera equipped The picture and conceptual drawing are with dynamic detection function for illustrative purposes only. equipment. Panasonic Annual Report 2012 Search Contents Returnpage 10 Next

To Our Stakeholders

The Panasonic Group has adopted and such business conditions, the Group’s continues to focus on the overarching vision of performance resulted in a sharp deterioration becoming the No. 1 Green Innovation Company especially in unprofitable businesses such as in the Electronics Industry, up to the 100th TVs and semiconductors. As a result of the anniversary of its founding in 2018. In fiscal aforementioned factors and implementation of 2011, we launched Green Transformation 2012 large-scale business restructuring initiatives (GT12), our three-year midterm management including fixed cost reductions, Panasonic plan, as a first step toward realizing the vision. recorded its biggest ever net loss. We deeply In fiscal 2012, the second year of GT12, feel responsible and regret the anxiety caused we worked diligently to transform each to all stakeholders, but would like to assure all business on the basis of three paradigm shift concerned that these measures have themes. In specific terms this entailed the established the foundation for a Green shift from existing businesses to such new Innovation Company. businesses as the environment and energy, At the conclusion of the Company’s from Japan-oriented to globally-oriented, and Ordinary General Meeting of Shareholders held from individual product-oriented to solutions in June 2012, Fumio Ohtsubo was appointed and systems business-oriented. At the same as Chairman and Kazuhiro Tsuga as President. time, we restructured the Group’s organization Under this stewardship and a new organization, as a whole including Panasonic Electric Works every possible effort will be made to bring Co., Ltd. (PEW) and SANYO Electric Co., Ltd. about a swift performance recovery and the (SANYO), which had become wholly owned realization of our aforementioned visions. subsidiaries. As we work toward achieving our From a results perspective, business established goals, we kindly request the conditions for fiscal 2012 were extremely harsh continued support and understanding of all with a variety of factors including the sluggish stakeholders. demand mainly for digital AV products, historical high yen, and the flooding in Thailand. Under August 2012

Fumio Ohtsubo, Chairman (Left) Kazuhiro Tsuga, President (Right) Panasonic Annual Report 2012 Search Contents Returnpage 11 Next

Report on Returning Profits Promoting Business and Shifting to a Fiscal 2013 Fiscal 2012 Results to Shareholders Organizational Structural Reform New Organizational Structure Forecasts Performance Summary

thoroughgoing efforts to streamline raw materials On a positive note, however, Panasonic Report on Fiscal 2012 Results and reduce fixed costs, operating profit totaled continued to implement drastic business and Returning Profits to Shareholders 43.7 billion yen, a substantial year-on-year drop organizational restructuring measures Record Loss for the Fiscal Year under of 86%. This largely reflected the impact of the throughout fiscal 2012 with the knowledge Focusing on the Stable Payment of Dividends Review decline in sales, reductions in sales prices, that its efforts were intended to eliminate factors Since its foundation, Panasonic has managed Operating conditions throughout fiscal 2012, the sharp increase in raw material cost and that have a negative impact on future profits. its businesses under the concept that returning the period from April 1, 2011 to March 31, 2012, appreciation of the yen. As a result, the operating Thanks largely to these endeavors, the increase profits to shareholders is one of its most were extremely harsh both in Japan and profit ratio came in at 0.6%. In the fiscal year in operating profit is now gaining momentum important policies. Accordingly, the Company overseas. This was attributable to a variety of under review, Panasonic incurred significant after hitting bottom in the third quarter of fiscal has implemented proactive and comprehensive factors including disruptions in supply chains business restructuring expenses totaling 767.1 2012. At the same time, Panasonic completed measures in this regard. affected by the flooding in Thailand. billion yen. This included early retirement charges a Group reorganization on January 1, 2012, Taking into consideration return on the Under these circumstances, consolidated and impairment losses for fixed assets and including PEW and SANYO which had become capital investment made by shareholders, Group sales for fiscal 2012 decreased by 10% goodwill. Accounting for these factors, the wholly owned subsidiaries. Under a new Panasonic, in principle, distributes returns to to 7,846.2 billion yen. This decrease in sales was Company reported pre-tax loss of 812.8 billion organizational structure, every effort will be shareholders based on its business performance. largely owing to poor results in digital AV yen and a net loss attributable to Panasonic made to utilize the full advantage of the Group In this context, the Company is aiming for stable products including flat-panel TVs and mobile Corporation of 772.2 billion yen. These results in fiscal 2013 to achieve a V-shaped recovery. and continuous growth in dividends, targeting a phones. Sales were generally down across all represented a record loss for the Company. consolidated dividend payout ratio of between regions. In Japan this in part reflected On this basis, ROE was a negative 34.4% while 30% and 40% with respect to consolidated net adjustments in demand after the surge that free cash flows deteriorated substantially to income attributable to Panasonic Corporation. followed implementation of the government’s negative 339.9 billion yen. Despite incurring a record loss in fiscal 2012, eco-point stimulus package, while overseas Due to the aforementioned performance, Panasonic undertook the payment of an annual weak results mirrored the downturn in overall Panasonic was forced to abandon the original dividend of 10 yen per share, unchanged from economic conditions. targets of its GT12 midterm management plan the previous fiscal year, with an eye to ensuring From a profit perspective, and despite in fiscal 2013. the stable return of profits to shareholders.

Operating Proﬁt and Income (Loss) Net Income (Loss) Attributable Net Sales Ratio to Sales Before Income Taxes to Panasonic Corporation ROE Free Cash Flow

(Trillions of yen) (Billions of yen) (%) (Billions of yen) (Billions of yen) (%) (Billions of yen) 10 400 4.0 300 300 10 300 266.3 8.7 3.5% 178.8 2.8% 7.8 74.0 200 8 305.3 0 3.0 0 0 300 100

6 –10 0 200 2.0 –300 –300 –100 4 –20 –200 100 1.0 –600 –600 2 0.6% –30 –812.8 –300 43.7 –772.2 –34.4% –339.9 0 0 0 –900 –900 –40 –400 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 Operating Profit [left scale] Operating Profit/Sales Ratio [right scale] (Years ended March 31) Panasonic Annual Report 2012 Search Contents Returnpage 12 Next

Report on Returning Profits Promoting Business and Shifting to a Fiscal 2013 Fiscal 2012 Results to Shareholders Organizational Structural Reform New Organizational Structure Forecasts

panel field away from solely TV applications 60%. Through these reform measures, the structure by integrating manufacturing sites, Promoting Business and to non-TV applications where Panasonic can Company will transform its flat-panel TV focusing on special purposes and downsizing Organizational Structural Reform better leverage such distinguishing features as business to be a highly value added business its workface across the entire semiconductor super energy saving and omnidirectional wide with light asset. business as a whole. The Company is Taking Decisive Action to Improve viewing angles in IPS LCDs, an area of particular Panasonic is projecting that approximately endeavoring to improve profitability. Profitability Mainly in the Flat-Panel strength. In this manner, considerable weight 60 billion yen in restructuring benefits will accrue In areas other than its flat-panel TV and TV and Semiconductor Businesses will be placed on lifting the ratio of non-TV from the flat-panel TV business as a whole in semiconductor businesses, Panasonic is Looking at the Company’s profit structure by applications to close to 50% in fiscal 2013. fiscal 2013 as a result of these structural implementing a broad spectrum of restructuring product, Panasonic maintains a substantial In the plasma panel field, Panasonic will reforms. Together with other measures, the initiatives as a part of its overall business number of profitable products. These positive also work diligently to cultivate non-TV Company is targeting an improvement in profits reorganization. Especially in business related returns are, however, eliminated by the applications including digital signage and of around 130 billion yen. to SANYO, Panasonic has transferred large-scale losses incurred in the flat-panel TV electronic whiteboards. Turning to the semiconductor business, SANYO’s washing machine and household and semiconductor businesses. In order to In the flat-panel TV set business, Panasonic Panasonic took steps to restructure its refrigerator businesses in order to eliminate address this issue, the Company implemented will focus on shifting and broadening its activities unprofitable business of systems LSIs. In specific overlap. In addition to optimizing its workforce large-scale structural reforms including the to encompass a full lineup including large-size terms, the Company switched from in-house and operating sites, the Company booked consolidation of business sites in fiscal 2012. screens. To this end, the Company is production to outsourcing and fabless (less impairment loss for goodwill. In other areas, Turning to the flat-panel TV panel business, consolidating its production activities in Japan fabrication facility) operations, and integrated and Panasonic has continued its efforts to Panasonic took steps to consolidate the to certain LCD TV models, utilizing OEM and downsized its R&D structure moving away from strengthen structures and systems by manufacture of liquid crystal display (LCD) ODM methods, and expanding overseas panel its previous decentralized approach. Through downsizing its workforce. As a result of these panels and plasma panels at a single plant procurement channels. In its plasma TV activities, these means, Panasonic has successfully endeavors, the Group’s total workforce as of the for each as a part of efforts to streamline Panasonic will concentrate increasingly on shifted its development resources to such end of fiscal 2012 stood at around 330,000. activities toward an optimal scale while high-end large-size models. Energies will be growth businesses as image sensors and power In fiscal 2013, Panasonic is forecasting balancing revenue and expenditure. At the same channeled toward lifting the ratio of 50-inch semiconductors. Moreover, the Company is positive effects totaling approximately 130 billion time, the Company will shift its focus in the LCD and over TVs from the current level of 40% to promoting the shift toward a lean management yen to flow from these restructuring measures.

Fiscal 2012 Breakdown of Promoting Structural Reform in the Flat-Panel Business Restructuring in the Semiconductor

Business Restructuring (Billions of yen) TV Business Business and a Shift in Resources Early retirement, Impairment Plasma Display Panel Business LCD Panel Business System LSI Concentrate on Growing Business Fixed Details integration of loss for Total asset-related •P5 factory: Shut off panel production •Factory in Mobara: Shut off panel •Fabless (less fabrication facility) •Image sensors facilities etc. goodwill etc. and book impairment loss production •Outsource •New products for DSC Flat-panel •P3 factory: Cancel relocation of •Factory in Himeji: book impairment loss •Partly book impairment loss •New technology for mobile device market TV business 14.4 267.1 8.4 289.9 equipment to Shanghai *42” panel (unit) TV Set Business •Integrate and downsize R&D •Power semiconductors Semiconductor 13.8 mil./year 16.5 50.0 27.0 93.5 •Transform manufacturing sites in Japan •Integrate R&D into head office R&D •From appliances to PC/infrastructure business P3 Shanghai •Utsunomiya: Innovative Production Center •Partly shift to other business products •Quadruple R&D workforce of GaN* P5 7.2 mil./year •Ibaraki: Panel R&D center Others 116.9 17.2 249.6 383.7 * Gallium nitride

P4 P4 Panel/ TV Set Business Total 147.8 334.3 285.0 767.1 •Integrate manufacturing sites and focus on special purposes •Downsize workforce •Downsize workforce, etc. Panasonic Annual Report 2012 Search Contents Returnpage 13 Next

Report on Returning Profits Promoting Business and Shifting to a Fiscal 2013 Fiscal 2012 Results to Shareholders Organizational Structural Reform New Organizational Structure Forecasts

Under this reorganization of its business, Looking ahead, based on competitive Shifting to a New Organizational Panasonic has established a structure that is individual businesses, Panasonic will provide Achievements through Structure linked directly to customers globally. In addition, comprehensive solutions that combine the Business Reorganization the reform has introduced a new structure and products and services of these individual Building a New Organization that is system enabling Panasonic to demonstrate its businesses, and build a new profitable Established a business structure enabling direct contact with customers Capable of Mobilizing the Collective collective strengths across business domain business model shifting from its past individual Strengths of the Group companies. This has placed the Group in a more product-oriented model. Introduced a horizontal In fiscal 2012, Panasonic undertook steps to favorable position to promote comprehensive The configuration of forecast sales and Group-wide business structure reorganize its Group structure into the three solutions that combine the wide range of operating profit in fiscal 2013 is presented business fields of Consumer, Solutions, and products and services handled by each domain in the following chart. AVC Networks (AVC), Maximized synergy Eliminated overlap in individual and Components & Devices comprising nine company and to advance cross sales of other Appliances (AP) and Eco Solutions (ES) are businesses downsized business domain companies and one marketing sector. domain company products. Furthermore, projected to contribute essentially the same As opposed to the previous organization business reorganization enables Panasonic to level of net sales. Turning to operating profit, structure, which was based on a common R&D maximize synergies across the entire Group all segments are anticipated to turn a profit platform, the new structure is distinguished by including the resources of PEW and SANYO with substantial contribution from AP. its organization by business model based on focusing mainly on environmental- and Largest-ever transformation the perspectives of customers. energy-related businesses.

New Group Organization (Nine Domain Companies and One Marketing Sector) Sales and Operating Proﬁt by Segment (Fiscal 2013 Forecast)

Sales Operating Profit Consumer Solutions Components & Business Field (BtoC) Business Field (BtoB) Devices Business Field (BtoB) EC EC ID Eco Solutions Company Healthcare Company Automotive Systems Company Industrial Devices Company Company Energy Systems & Communications Company Manufacturing Solutions Company AVC AVC AVC AVC Networks Appliances Sales, Services & Global Consumer ID PAS Components AP & Devices Marketing Marketing Sector SNC Systems & Communications Components 60.0 billion yen Comprehensive Solutions Division Consumer Related Businesses Consumer Eco Solutions & Devices 3.4 MS ES 2.8 trillion yen 160.0

AVC Networks Company Appliances Company trillion yen Healthcare Solutions billion yen HCC PAS AP HCC 120.0 MS Manufacturing Solutions Solutions billion yen AP Automotive Systems MS 2.8 PAS HCC trillion yen ID Industrial Devices Development & ES Manufacturing EC Energy ES SNC SNC

Notes Global & Group Head Office 1. Total is a simple summation of all single segments. 2. HCC and MS are business domain company consolidated base Panasonic Annual Report 2012 Search Contents Returnpage 14 Next

Report on Returning Profits Promoting Business and Shifting to a Fiscal 2013 Fiscal 2012 Results to Shareholders Organizational Structural Reform New Organizational Structure Forecasts

solutions businesses that create new value. Fiscal 2013 Financial Forecast Fiscal 2013 Forecasts Moreover, Panasonic will adhere strictly to a Please refer to the Panasonic Group Fiscal 2013 Business Policy policy of cost cutting across the Group and Compared with announced on May 11, 2012. improve its profit structure in order to bolster Fiscal 2013 Forecasts Fiscal 2012/Change its management structure. In specific terms, Pursuing Increased Earnings in Growth efforts will include cost cuts through optimization Sales 8,100.0 bil.yen +3% Businesses as a Part of Efforts to Achieve of procurement activities on a global scale, a V-shaped Performance Recovery steps to secure the positive effects of Panasonic has position fiscal 2013 as a year structural reform, and rationalization of fixed + in which it must show ever greater performance. costs based on Group-wide emergency Operating profit (%) 260.0 bil.yen (3.2%) 216.3 bil.yen In addition to promoting ongoing measures management measures. Through these means, aimed at rebuilding underperforming business, Panasonic aims to lower the break-even Net income attributable to + the Company will pursue increased earnings point by 7% in fiscal 2013. Accounting for Panasonic Corporation (%) 50.0 bil.yen (0.6%) 822.2 bil.yen in such growth fields as the solar, lithium-ion each of the aforementioned endeavors, battery, and appliances businesses. Panasonic is targeting sales of 8,100 billion Complementing these initiatives, Panasonic yen in fiscal 2013, an increase of 3% year on ROE 2.6% — will continue to create strong BtoB businesses. year, operating profit of 260 billion yen, up In similar fashion to the aircraft in-flight 216.3 billion yen compared with fiscal 2012, entertainment systems business, every effort and net income attributable to Panasonic Free cash flow 100.0 bil.yen +439.9 bil.yen will be made to consistently deliver high value at Corporation of 50 billion yen, a year-on-year both the product and service levels. Across the turnaround of 822.2 billion yen. In this manner, (vs Fiscal 2006)* CO2 emission reduction +0.63 mil.tons business domain companies of Panasonic, the the Company plans to achieve a V-shaped 41.00 mil.tons Company will further reinforce comprehensive performance recovery. * Reduction compared with the estimated amount of emissions in fiscal 2013 assuming that no remedial measures were taken since fiscal 2006 Growing Businesses—Major Measures and Fiscal 2013 Targets 1. Solar Business 2. Lithium-Ion Battery Business 3. Appliances Business • Target the residential sector where the benefits of highly efficient HIT solar Consumer- • Focus on boosting cost competitiveness by increasing materials • Create locally-oriented products based on studies of local lifestyle research panels can be fully utilized use procurement in China and South Korea, manufacturing centers, launch energy-efficient ECO NAVI products in the global market, • Make the fullest use of the Group’s sales channels in Japan where rapid high-capacity batteries using proprietary technologies, and and offer small appliances as groups of products in order to expand growth is expected speeding up development and customer support global sales • Establish and commence operations at a new solar panel manufacturing • Reinforce proposals in such growth markets as ultrabook PCs • Introduce several No. 1 eco performance volume high-volume segment facility in Malaysia in December 2012, while significantly bolstering supply and smartphones products in newly emerging countries including China in home appliances capacity and cost competitiveness • Commenced operations at the new plant in Suzhou, China in July including room air conditioners, refrigerators, and washing machines • Pursue business competitiveness through an Energy Creation-storage 2012; enhance cost competitiveness • Accelerate global BtoB business development by such activities as promoting Linked System Automotive- • Capitalize on the Company’s competitive advantage as a leading the large-sized air conditioning business in Europe and the U.S. use battery manufacturer to aggressively expand sales while maximizing production capacity and cost competitiveness

Fiscal 2013 targets Fiscal 2013 targets Fiscal 2013 targets • Secure sales of 450 megawatts or more, • Consumer-use/automotive-use: Return to profit 1.6 times the previous fiscal year • Automotive-use: secure a year-on-year • 20% year-on-year increase in overseas sales • Capture the top market share in Japan five-fold or more increase in sales Panasonic Annual Report 2012 Search Contents Returnpage 15 Next

Interview with the New President Messages from Senior Executive Interview with the New President ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• What do believe is required to Channeling Our Energies toward the Pursuit of What are your thoughts on the break free from these current Company’s current status? Customer Value and Becoming a Highly Profitable Company Q Q circumstances? Kazuhiro Tsuga was appointed as President of Panasonic Corporation I am filled with a strong sense Put simply, we must thoroughly at the Company’s Ordinary General Meeting of Shareholders in June 2012. A of crisis. A pursue customer value. Here, Mr. Tsuga outlines the Group’s direction and ideal image going forward. Since April, I have visited as many business Our most pressing priority must be to return domains and divisions as possible. These the basics and thoroughly pursue customer visits allowed me to reconfirm the value. Panasonic’s DNA is to focus on its considerable strengths of our frontline. customers. Looking at our current Panasonic is blessed with a large number performance, however, Panasonic is not Kazuhiro Tsuga of outstanding people. I do not believe that always able to see the needs of customers Born in Osaka in 1956. 55 years of age. our technologies or our passion lag behind and I am concerned that we are not able to Graduate of the Division of Biophysical those of other companies. serve them thoroughly. Engineering, School of Engineering Despite these attributes, we have failed At this point, we will therefore adhere Science, Osaka University. Entered Panasonic Corporation, then known as to translate these qualities into concrete strictly to the pursuit of customer value. As a Matsushita Electric Industrial Co., Ltd., results. Accordingly, our current status is one first step, we will work to generate profits by in 1979. Completed a Master’s degree in computer science at the University of of deep crisis. It is vital that we focus on eliminating anything that does not generate California, Santa Barbara in 1986. profitability and return to being a normal customer value. Thereafter held the positions of Director, company in terms of our financial footings Multimedia Development Center; President, Panasonic Automotive Systems and performance as quickly as possible. If Company; President, AVC Networks we fail to act now, we will lose our standing Company; and Senior Managing Director, Panasonic Corporation. Appointed as in the eyes of the world. Representative Director and President, Panasonic Corporation on June 27, 2012. Pursue Customer Value

•Focus on customers Return to the basics •Make people central to all of our activities

Eliminate anything that does not generate customer value

Energize individual businesses Review Head Ofﬁce functions Panasonic Annual Report 2012 Search Contents Returnpage 16 Next

Interview with the New President Messages from Senior Executive

••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Can you please explain to us in more focus increasingly on the frontline. Working businesses that are useful to customers In each space emphasizing Eco & specific terms exactly what you together with business domains and units while promoting mutual growth. By serving Smart solutions, we will work to find Q mean by pursue customer value? engaged in individual activities, we will build a and helping our customers we will aim to solutions to customers’ problems in BtoB In specific terms, we will energize structure that gives its full and undivided become a highly profitable company. businesses, and provide a sense of security, individual businesses and reform attention to customers. The new Head Office Panasonic handles a wide range of comfort and excitement in BtoC businesses. A head office functions. function will therefore be streamlined, focusing products. Rather than follow a As we work toward thoroughly pursuing Our notebook PC business undertaken by on corporate strategy and investment. From product-based focus, I am confident that customer value, I am convinced that we the AVC Networks Company and businesses this perspective, Head Office, dealing with we will be better served by adopting a will bring to fruition our overarching vision in the Manufacturing Solutions Company capital markets, will formulate and promote customer-based focus under which we of becoming a Green Innovation Company are able to see their customer needs globally, Group strategy and carry out our business clarify who our customers are and what in the lead up to our 100th anniversary of and fully meet them. Their business portfolio management. usefulness we can bring by narrowing the foundation in 2018. operations are being vigorously carried out spaces of our business activities. For We will do our utmost to rejuvenate and they are realizing high performance. In example, I see the Company providing the the Company and ask for your continued What direction will business moving forward, we will ensure that all of development take in the future? most benefit in the four; residential space; support and understanding. our businesses follow this model example. Q non-residential space including offices, As one step in this endeavor, we will We will provide Eco & Smart factories, stores and hospitals; mobility reform Head Office functions. We will Solutions that focus entirely encompassing automobiles and aircraft; separate the business promotion support A on customers. and personal. In this regard, we will make function from our Head Office and set up We would like to pursue a dream with our people, or in other words customers, central the Professional Business Support Sector to customers. We will therefore pursue to all of our activities.

New Head Office (image) Toward Making Proposals for Customer Value (Shareholders/creditors) • Promote autonomous Green Innovation Company Board of responsible management BtoB Directors Meeting Capital markets Find solutions Business Domains/ to problems President Customers Business Units of customers Corporate Strategy Head Office Eco & Smart Professional Business Solutions • Portfolio management Support Sector for businesses and • Assist in promoting business BtoC technology operations Provide a sense of • Carry out corporate functions security, comfort & excitement Panasonic Annual Report 2012 Search Contents Returnpage 17 Next

Interview with the New President Messages from Senior Executive Messages from Senior Executive This section introduces comments from the presidents of Panasonic’s nine business domain companies and the director of the Global Consumer Marketing Sector that comprise its three business ﬁelds based on customers’ perspectives. Please refer to the materials issued for Panasonic IR Day held on May 23, 2012.

Consumer Business Field President, AVC Networks Company President, Appliances Company Director, Global Consumer Marketing Sector

Mamoru Yoshida page 18 Kazunori Takami page 18 Yoshiiku Miyata page 19

Solutions Business Field President, Systems & Communications Company President, Eco Solutions Company President, Healthcare Company President, Manufacturing Solutions Company

Toshiyuki Takagi page 19 Shusaku Nagae page 20 Kenji Yamane page 20 Yoshiro Takemoto page 21

Components & Devices Business Field

President, Automotive Systems Company President, Industrial Devices Company President, Energy Company

Masahisa Shibata page 21 Toshiaki Kobayashi page 22 Masato Ito page 22 Panasonic Annual Report 2012 Search Contents Returnpage 18 Next

Interview with the New President Messages from Senior Executive Consumer Business Field

AVC Networks Company Appliances Company Bolstering global competitiveness Pursuing further growth by accelerating through customer-oriented businesses the global development of BtoC products The AVC Networks Company globally engages in and expanding BtoB businesses the promotion of such BtoC businesses as TVs, The Appliances Company was formed through Blu-ray recorders, digital cameras and audio the integration of the Home Appliances Company equipment as well as BtoB businesses including of Panasonic, PEW’s beauty & grooming and health notebook PCs, in-flight entertainment systems products businesses, and SANYO’s large-sized and projectors. air-conditioning system and cold chain equipment Every effort is being made to promote a policy businesses. The company is developing BtoC of selection and concentration for existing business products for the global market, which continues in the current fiscal year with a focus on profitability. to experience growth, expanding BtoB businesses, Striving to cultivate new businesses, the AVC which include such products as equipment, Networks Company is fusing its core technologies components and devices, and bolstering with IT to build next-generation business pillars. manufacturing capabilities, which provide the Working to address key priority issues, the underlying strength of robust products. Mamoru Yoshida, President company is seeking to improve profitability and Kazunori Takami, President In India, Brazil and Vietnam, the company is realize growth potential. reinforcing high-volume segment product In its existing business activities, the AVC development as well as its production structure. PROFILE Networks Company is shifting its main business PROFILE We are placing equal emphasis on promoting Apr. 2009 Executive Officer of the Company fields from developed to emerging markets. Apr. 2006 Executive Officer of the Company locally driven business growth. At the same time, Apr. 2011 Director, Display Network Products Emphasis is being placed on developing and Apr. 2008 Managing Executive Officer of the Company we are advancing the global sale of our three Business Group, AVC Networks Company manufacturing products that meet the local needs Apr. 2009 President, Home Appliances Company mainstay air-conditioners, refrigerators and (current position) in the markets of Asia, a region that continues to washing machines equipped with the ECO NAVI Jun. 2009 Managing Director of the Company Apr. 2012 Managing Executive Officer of the Company / enjoy marked growth. Moving forward, the function, which automatically save electricity Jan. 2012 President, Appliances Company President, AVC Networks Company company will pursue continued expansion depending on the mode of use. Regarding (current positions) (current position) commensurate with earnings. Apr. 2012 Senior Managing Director of the Company products not currently handled by Chinese and Jun. 2012 Managing Director of the Company Turning to its new business activities, the Korean manufacturers, the company is building (current position) (current position) company is looking to actively fuse its proprietary on its beauty & grooming, health and small kitchen core technologies with IT with the aim of creating appliance product strengths. Product group Overview of the Business Domain Overview of the Business Domain new customer value. We, as a manufacture, are marketing is based on a unified concept with the Name: AVC Networks Company sustainably and interactively linking with customers. Name: Appliances Company aim of solidifying the brand. Headquarters Location in Japan: Kadoma By putting forward customer-oriented proposals Headquarters Location in Japan: Kusatsu In the BtoB business market, we are Business Activities: Development and manufacture of and delivering total support, the company is Business Activities: Development and manufacture of accelerating large-sized air-conditioning systems, consumer AVC equipment, as well as development, enhancing people’s daily lives while contributing home appliances, air conditioners, personal-care products, cold chain equipment and other product global manufacture, servicing, and solutions sales of health enhancing products, etc. Development, to business growth. development. We are also expanding new business-use AVC equipment and devices/components manufacture and sales of commercial-use for AVC equipment heating/refrigeration/air-conditioning equipment, etc. businesses, including household fuel cell URL: http://panasonic.net/corporate/segments/avc/ In addition, development, manufacture and sales of cogeneration systems and electric vehicle-related related devices/components components and devices. URL: http://panasonic.net/corporate/segments/ap/ Panasonic Annual Report 2012 Search Contents Returnpage 19 Next

Interview with the New President Messages from Senior Executive Consumer Business Field Solutions Business Field

Global Consumer Marketing Sector Systems & Communications Company Strengthening product planning Developing a global solutions business capabilities and adopting a PULL that focuses mainly on the security, strategy to expand business globally communication, AV and IT fields The Global Consumer Marketing Sector is In addition to linking a variety of products through responsible for the central marketing, sales and networks, the Systems & Communications servicing of consumer products worldwide. The Company is actively engaged in a solutions Sector was established with the aim of expanding business that delivers systems integration (SI) sales by bolstering structures and systems by through to construction, maintenance and individual product groups and increasing related services. productivity by enhancing operating efficiency. Placing the utmost emphasis on addressing Strengthening product planning capabilities customer needs, the company is putting forward while adopting a PULL strategy lie at the heart of high value-added proposals that combine its the Sector’s existence and purpose going forward. broad spectrum of product groups that draw In addition to grasping customer needs and serving on the accumulated image processing and as a conduit that channels customers’ thoughts communications technologies nurtured by the Yoshiiku Miyata, Director and expectation to each business domain, the Toshiyuki Takagi, President mainstay security and communications businesses Global Consumer Marketing Sector will put with the technologies and product lineups of the forward solutions that help ensure continuous AVC Networks Company. PROFILE customer use of the Company’s products and PROFILE At the same time, the Systems & Apr. 2007 Executive Officer of the Company services. Moreover, the Sector will market the Apr. 2011 Executive Officer of the Company Communications Company is accelerating the Apr. 2009 Managing Executive Officer of the Company appeal of Panasonic products directly to (current position) / Senior Vice President, pace of solutions business development globally AVC Networks Company Apr. 2011 Senior Managing Executive Officer of the end-consumers with a view to generating sales. by bolstering its solutions sales structures in Japan, Company In this regard, steps will be taken to promote a Jun. 2012 President, Systems & Communications the U.S., Europe, Asia and China. PULL strategy that enhances brand awareness. Company (current position) / President, Looking ahead, every effort will be made to Jun. 2011 Senior Managing Director of the Company Panasonic System Networks Co., Ltd. (current position) The Global Consumer Marketing Sector will (current position) promote energy and electric power conservation Jan. 2012 Director, Global Consumer Marketing Sector particularly focus on substantially boosting solutions while building a business that is capable (current position) / In charge of Design advertising overseas. of raising its level of contribution to customers. (current position) The Sector will work diligently to expand the consumer business in an overseas market that includes the three emerging regions of India, Brazil and China, the Association of Southeast Asian Overview of the Sector Nations, as well as countries surrounding India Overview of the Business Domain Name: Global Consumer Marketing Sector and the African continent, and the U.S. and Japan, Name: Systems & Communications Company Headquarters Location in Japan: Osaka all of which are identified as strategic markets. Headquarters Location in Japan: Tokyo Business Activities: Marketing, sales and servicing of Business Activities: Development, manufacture, sales consumer products and service engineering of electric, communication and electronic machinery & equipment related to systems, networks, and mobile communications Panasonic Annual Report 2012 Search Contents Returnpage 20 Next

Interview with the New President Messages from Senior Executive Solutions Business Field

Eco Solutions Company Healthcare Company Promoting solutions globally that Providing global solutions in each of the provide a wide range of products medical and nursing-care fields while The Eco Solutions Company strives to provide endeavoring to realize affordable pleasant living environments that combine healthcare comfort with eco-consciousness, where people The Healthcare Company has taken over the around the world can live comfortably while healthcare-related businesses previously operated reducing environmental loads. Guided by this by PEW and SANYO as well as Panasonic business vision, the company will increase sales Healthcare Co., Ltd. Recognizing this initiative as of environmental-and-energy-related products, a rare opportunity to provide affordable healthcare accelerate global business growth, and create to a great many people, the company will service concrete ideas for the comprehensive solutions the needs of home through to hospital. Specifically, business that obtain tangible results. the company’s activities encompass the three The Eco Solutions Company will place broad fields of In-Hospital Work Assistance, in emphasis on accelerating solutions businesses which efforts are made to increase the efficiency including the LED lighting, and the energy–saving of medical operations, Home Healthcare, where Shusaku Nagae, President and energy management businesses globally and Kenji Yamane, President the company harnesses the Group’s established putting forward proposals around the world as expertise in providing nursing-care services as well as further improving the profitability of its well as manufacturing and marketing nursing-care PROFILE businesses in Japan. By providing the Panasonic PROFILE and welfare-related equipment, and Early Diagnosis Jun. 2010 President, Panasonic Electric Works Co., Ltd. Group’s broad range of products and leveraging Apr. 2008 President, Panasonic Shikoku Electronics and Treatment, where energies are channeled Apr. 2011 Senior Managing Executive Officer of the its solutions capabilities, the Eco Solutions Co., Ltd. toward illness diagnosis support through blood Company Company will help resolve customers’ problems Jan. 2012 President, Healthcare Company glucose monitoring and ultrasound diagnosis. Jan. 2012 In charge of Solutions Business and build sustainable and long-term relationships. (current position) / President, Panasonic Moving forward, the Healthcare Company will (current position) / President, Eco Solutions Playing a central role in the Group, the Eco Healthcare Co., Ltd. (current position) accelerate the development of new products in Company (current position) Solutions Company is pushing forward a project to Apr. 2012 Executive Officer of the Company the in-hospital work assistance and other fields. (current position) Jun. 2012 Executive Vice President of the Company create 100 business models in the comprehensive The company will also coordinate with other (current position) / In charge of Corporate solutions business. In this regard, and while domain products and technologies including image Division for Promoting Energy Solution Business (current position) leveraging the strengths of the entire Group, the display and processing as well as communications company is promoting the development of to provide solutions for the entire clinical and Corporate Projects including smart city projects in pharmaceutical fields. Moreover, consideration Overview of the Business Domain Tianjin and Dalian in China, and Fujisawa in Japan. Overview of the Business Domain will be given to alliances with other companies in Name: Eco Solutions Company Name: Healthcare Company an effort to further enhance medical expertise. Headquarters Location in Japan: Kadoma Headquarters Location in Japan: Tokyo Business Activities: Development, manufacture and Business Activities: Medical Instrument/development, sales of lighting products, wiring devices, distribution production, sale and service related to Nursing Care Equipment/Nursing Care Services panelboards, housing equipment and materials, URL: http://panasonic.net/corporate/segments/hcc/ ventilation fan systems, as well as the provision of related maintenance services, installation engineering and comprehensive solutions. URL: http://panasonic.net/es/ Panasonic Annual Report 2012 Search Contents Returnpage 21 Next

Interview with the New President Messages from Senior Executive Solutions Business Field Components & Devices Business Field

Manufacturing Solutions Company Automotive Systems Company Comprehensively strengthening existing Applying the Panasonic Group’s businesses, setting up new businesses environmental technologies to in-car and contributing broadly to manufacturing systems and contributing to innovative The Manufacturing Solutions Company supports automobile manufacturing customers in their manufacturing activities by Contributing to the creation of a new vehicle and putting forward wide-ranging solutions that a new motoring society through electronics is combine mounting, joining and processing. While the overarching vision of the Automotive Systems upgrading and expanding its mainstay product Company. In this regard, the company is lineup, including electronic component mounting endeavoring to address the needs for more machinery, welding equipment, and robots, as comfortable, more environmentally-conscious, and well as related technologies, the company will safer vehicles. At the center of these endeavors set up new businesses and strive to secure are the global multimedia and new business fields. the leading global share in industrial equipment. As a part of its global multimedia activities, the In the manufacturing facilities field, which Automotive Systems Company is working to includes mounting machinery- and welding address new needs. The company is getting the Yoshiro Takemoto, President equipment-related systems, the Manufacturing Masahisa Shibata, President jump on its rivals by bringing in-car Display-Audio Solutions Company will place considerable weight and navigation systems to the market that allow on the development and sales of consumables drivers to use smartphones within the vehicle. In PROFILE essential in the use of equipment and products PROFILE its new business activities, the Automotive Systems Apr. 2004 President, Panasonic Corporation of that help improve equipment processing Jul. 2005 President, Panasonic Automotive Systems Company is focusing on the development of North America / President, Panasonic capacity. In this manner, every effort is being Europe GmbH / President, Panasonic systems for eco-cars that leverage the Group’s AVC Networks Company America made to comprehensively strengthen existing Automotive Systems Czech, s.r.o. accumulated expertise in home appliance Apr. 2008 President, Panasonic Factory Solutions businesses. In addition, the company will bolster Jun. 2008 President, Panasonic Automotive environmental technologies. In addition to actively Co., Ltd. (current position) bases in the massive market of China, expand Electronics Co., Ltd. promoting power management system, heat Jan. 2012 President, Manufacturing Solutions Company production at the point of consumption. At the Apr. 2011 Executive Officer of the Company management system, and other system proposals (current position) (current position) / President, Automotive same time, the company will channel its energies to automobile manufacturers, the Automotive Systems Company (current position) Apr. 2012 Executive Officer of the Company toward establishing new bases in India, which is Systems Company will engage in activities aimed (current position) expected to enjoy growth, going forward. These at acquiring orders worldwide. and other measures will help reinforce local Looking ahead, the company will contribute manufacturing capabilities. to the manufacture of new vehicles as well as In the field of new business development, the increasingly widespread use of eco-cars by Overview of the Business Domain the Manufacturing Solutions Company will nurture Overview of the Business Domain delivering products and services that harness Name: Manufacturing Solutions Company sales businesses that encompass materials, Name: Automotive Systems Company the Group’s technology assets and are unique Headquarters Location in Japan: Toyonaka consumables, and software based on the concept Headquarters Location in Japan: Yokohama to Panasonic. Business Activities: Development, manufacture, sales of comprehensive solutions. Business Activities: Development, manufacture and and service of mounting-related machines for sales of car-use-multimedia-related equipment, electronic-components, device-related systems, eco-car-related equipment, electrical components, etc. welding equipment, laser oscillators, etc. URL: http://panasonic.net/corporate/segments/pas/ Panasonic Annual Report 2012 Search Contents Returnpage 22 Next

Interview with the New President Messages from Senior Executive Components & Devices Business Field

Industrial Devices Company Energy Company Harnessing the Group’s wealth of Honing technologies and products as technologies and products to create growth engines of the Group new customer value As a key growth engine, the Energy Company The Industrial Devices Company was formed plays a pivotal role in driving forward the Group’s following the integration of the components and overarching growth strategy which entails devices related businesses of Panasonic, PEW expanding environment- and energy-related and SANYO. The ability of the company to operate businesses. With a large proportion of mainstay as an industrial device manufacturer in a broad products geared to the business customer market, business domain as well as cover a wide range each division is more easily lending a direct ear of products and technologies in such fields as to customers and advancing optimal product electronic components, electronic materials, proposals that quickly address customer needs semiconductors, automation control and optical by integrating the development, manufacturing devices, are both qualities rarely found anywhere and sales functions. else in the world. In the growth fields of solar photovoltaic Positioning the three growth mobile, eco-car systems and lithium-ion batteries, which are Toshiaki Kobayashi, President and environmental infrastructure fields at the Masato Ito, President experiencing increasingly intense competition, heart of its operations, the Industrial Devices the Energy Company is securing earnings and Company works to create and strengthen overcoming its rivals by strategically concentrating PROFILE businesses as mainstay pillars of the company. PROFILE management resources in areas where the Apr. 2007 Executive Officer of the Company / Moreover, the Industrial Devices Company will Jun. 2010 Senior Vice President, company is able to excel. At the same time, the President, Panasonic Electronic Devices endeavor to strengthen the competitiveness of its SANYO Electric Co., Ltd. company is distinguishing itself from its competitors Co., Ltd. products by fusing together the core technologies Apr. 2011 Executive Officer of the Company in the aspects of product performance, safety, Apr. 2010 Managing Executive Officer of the Company developed over many years by Panasonic, PEW, (current position) / President, Energy reliability, and cost competitiveness. Taking full (current position) and SANYO, and creating new customer value Company (current position) advantage of the Group’s black-box technologies, Jan. 2012 President, Industrial Devices Company through a variety of solutions. Jan. 2012 President, SANYO Electric Co., Ltd. manufacturing capabilities, and customer base, (current position) / Director, Electronic (current position) The Industrial Devices Company, which caters the Energy Company is further promoting the Components and Materials Business Group, Industrial Devices Company (current position) to the needs of business customers, recognizes globalization of its business in order to meet the the need to secure a top market share in each needs of its worldwide customers in a timely individual product. Moving forward, the company manner. For example, the company has plans to will substantially increase the ratio of top market engage in comprehensive production of lithium-ion share product groups to total product sales. In batteries and to enhance the cost competitiveness Overview of the Business Domain this manner, every effort will be made to become Overview of the Business Domain of its products at its new Suzhou Factory in China, Name: Industrial Devices Company the world’s leading industrial device company. Name: Energy Company which commenced production in July 2012. Headquarters Location in Japan: Kadoma Headquarters Location in Japan: Moriguchi Through these activities, the Energy Company Business Activities: Development, manufacture and Business Activities: Development, manufacture and plans to maintain its leading global position in the sales of electronic components, electronic materials, sales of primary and secondary batteries, chargers, energy business field. semiconductors, optical devices, etc. battery application products and solar-related products URL: http://panasonic.net/id/ URL: http://panasonic.net/ec/ Panasonic Annual Report 2012 Search Contents Returnpage 23 Next

Business at a Glance Business Review and Strategies Overseas Review by Region

(As of March 31, 2012) (Years ended March 31) Segment Proﬁt Business Segment Main Products and Services Sales (Years ended March 31) at a Glance (Trillions of yen) (Billions of yen) Profit/sales ratio (%) LCD and Plasma TVs, digital cameras, Blu-ray Disc and 90 6 DVD recorders, PCs, optical disc drives, home audio 2 1.71 45 3 Percentage of Fiscal 2012 Sales -67.8 equipment, aircraft in-ﬂight entertainment systems, etc. 0 0 AVC Networks 1 Other AVC Networks -45 -4.0% -3 Energy See p. 24 0 -90 -6 Appliances 2010 2011 2012 2010 2011 2012

81.5 Air conditioners, washing machines and clothes dryers, 90 6 18% 5.3% 17% refrigerators, compressors, electric hot water supply 2 1.53 45 3 equipment, sanitary equipment, microwave ovens, dish 0 0 Appliances 1 washer/dryers, rice cookers, vacuum cleaners, showcases, -45 -3 electric motors, personal-care products, etc. Consolidated See p. 26 0 -90 -6 6% Sales 2010 2011 2012 2010 2011 2012 15% ¥7,846.2 Mobile phones, communication network equipment, 90 6 17.3 security network equipment, business systems equipment, 2 Systems & 45 2.1% 3 billion social infrastructure systems equipment, etc. 0 0 14% 1 0.84 Communications -45 -3 8% See p. 27 0 -90 -6 2010 2011 2012 2010 2011 2012 7% 15% Lighting ﬁxtures and electric lamps (including LED lighting), 90 58.9 6 wiring devices, interior furnishing materials, modular kitchen 2 1.53 45 3.9% 3 systems, water-related products, ventilation and air- Eco Solutions 0 0 Systems & conditioning equipment, air puriﬁers, etc. 1 Communications -45 -3 See p. 29 0 -90 -6 Eco Solutions 2010 2011 2012 2010 2011 2012 Automotive Systems

Industrial Devices Car-use-multimedia-related equipment (car AVC equipment, 90 6 car navigation systems, etc.), eco-car-related equipment, 2 45 4.9 3 0.8% Notes: 1. Sales composition for each segment includes electrical components, etc. 0 0 Automotive Systems 1 0.65 intersegment transactions. -45 -3 2. The Company restructured its Group organization on See p. 30 0 -90 -6 January 1, 2012, resulting in the number of 2010 2011 2012 2010 2011 2012 reportable segments from six to eight. Accordingly, segment information for fiscal 2010 and 2011 have Electronic components (capacitors, circuit boards, circuit been reclassified to conform to the presentation for 90 6 fiscal 2012. components, electromechanical components, custom 2 45 3 components, automation controls), semiconductors, optical 1.40 -16.6 3. Other segment consists of Healthcare Company, Industrial Devices 0 0 1 -1.2% Manufacturing Solutions Company, PanaHome devices, electronic materials, etc. -45 -3 Corporation and others. See p. 31 0 -90 -6 4. SANYO Electric Co., Ltd. (SANYO) and its subsidiaries 2010 2011 2012 2010 2011 2012 became consolidated subsidiaries of Panasonic in December 2009. The operating results of SANYO and its subsidiaries prior to December 2009 are thus not Solar photovoltaic systems, lithium-ion batteries (consumer 90 6 included in Panasonic’s consolidated financial and in-car use), dry batteries, etc. 2 45 3 -20.9 statements. Energy 0 0 1 0.61 -45 -3.4% -3 See p. 33 0 -90 -6 2010 2011 2012 2010 2011 2012

Healthcare equipment and services, electronic- 90 6 1.88 components-mounting machines, industrial robots, welding 2 45 23.6 3 1.3% equipment, detached housing, rental apartment housing, 0 0 Other 1 land and buildings for sale, home remodeling, imported -45 -3 materials and components, bicycles, etc. See p. 34 0 -90 -6 2010 2011 2012 2010 2011 2012 Panasonic Annual Report 2012 Search Contents Returnpage 24 Next

Business at a Glance Business Review and Strategies Overseas Review by Region

Strong Expectations that the World’s The Premium DMR-BZT9000 Model AVC Networks Smallest, Thinnest, High-Resolution LCD Offering High-Quality Picture and Sound Panels Will Be Used Across Fiscal 2012 Results (Fiscal 2011 results are in brackets) Wide-Ranging Fields Percentage of Fiscal 2012 Sales Sales Segment Proﬁt

¥1,713.5billion ¥–67.8billion 17% Panasonic has significantly reduced noise and vibration (¥2,156.8 billion)(¥27.3 billion) helping to suppress unnecessary oscillation by using a highly rigid and streamlined body. The Company is Profit/sales ratio – % maximizing the untapped potential of its Blu-ray Disc 4.0 recorders to deliver high quality pictures and sound. The 20-inch 4K2K IPS Alpha LCD panel delivers significant energy savings and a wide viewing angle. Harnessing this In its digital AV networks business, Panasonic units, down around 2.5 million units year on year. product’s strengths as the world’s thinnest and smallest previous fiscal year due to the decline in prices. Net sales also declined below 70% of the level high-resolution 4K2K display, Panasonic will pursue medical, Anticipating a persistently harsh operating provides imaging equipment such as flat-panel commercial and other applications where the need for high TVs, AVC network equipment including Blu-ray recorded in the previous fiscal year. (Please refer quality is at a premium. environment, Panasonic will aim to retain its Disc recorders, digital cameras and notebook to page 12 for details and the ‘Performance top position by continuing to upgrade and PCs as well as in-flight entertainment (IFE) Summary’ with regard to business reforms). expand its product lineup including products systems, projectors and other business-use In an effort to add higher value to global TV or more products while further lifting the ratio with built-in Wi-Fi®*2. AV equipment. As digital AV products are markets, Panasonic introduced VIERA Connect, of 50-inch or more high value-added models in increasingly commoditized, the Company is a cloud-based Internet service that offers such its plasma TV activities. Moreover, efforts will *2 Wi-Fi is a registered trademark of the Wi-Fi Alliance. focusing on proposals that deliver clearly diverse functions as a health management be made to identify other panel applications defined value to customers drawing on its application that links exercise equipment to online including those for medical and educational Despite the Poor Performance of Compact accumulated technological capabilities and services. In addition, the Company took steps to use with the aim of boosting earnings. Digital Cameras, Robust Results in Digital the strength of its BtoC and BtoB customer tap into high volume markets. Drawing on its Interchangeable Lens Cameras base. At the same time, Panasonic is engaged lifestyle research in India, Panasonic released two *1 As of January 10, 2012. As a 4K2K-resolution display. in such wide ranging activities as the creation new VIERA models designed to address local Source: Panasonic Despite continued growth in developing of new cloud technology-based businesses. concerns regarding maximum sound volume, countries, demand for compact digital cameras energy saving, and USB moving image playback. DIGA Series of Blu-ray Disc Recorders declined due mainly to the extensive use of Digital AVC As a leader in high-definition display Maintains Its Top Global Market Shares smartphones in developed countries and technology, the Company developed a 20-inch lengthening replacement cycle. Under these Engaging in High Value-Added Flat-Panel IPS Alpha LCD panel, the world’s smallest*1 as The Blu-ray Disc recorder market in Japan has circumstances, Panasonic’s results mirrored the TV Development a 4K2K-resolution display in January 2012. This been impacted by the termination of analog year-on-year drop in the amount of market sales panel has the world’s highest*1 pixel density of broadcasting services resulting in the trend that in turn reflected the steady deterioration in In addition to the strong yen, the business 216 pixels per inch and a thickness of only 3.5mm, toward recording equipment digitization prices and the strong yen. In fiscal 2013, the environment in the flat-panel TV market continued the thinnest in the world*1. A prototype was gathering pace. Driving the market forward, Company will focus on thoroughly reinforcing to be harsh due to such factors as intense unveiled at the 2012 International CES in the U.S. Panasonic ensured that all models within its its structure and systems, enhancing efficiency, price competition and a decline in demand Looking ahead, Panasonic will continue to lineup were 3D-compatible and introduced a introducing high value-added models, and following the shift to terrestrial digital broadcasting deliver high value-added products in its Smart new product equipped with the world’s first expanding sales in developing countries. in Japan. Against this backdrop, Panasonic VIERA lineup that depict the five pillar concepts of triple tuner. Through these means, the Company Turning to its digital interchangeable lens took steps to reform its manufacturing operation, picture quality, easy operation, networking, eco, enjoyed an increase in unit sales while cameras, Panasonic took concrete steps to placing greater emphasis on earnings as opposed and design. In LCD TVs, the Company will employ maintaining its leading market share. However, strengthen its product lineup as well as its to volume. As a result, unit sales fell to 17.52 million competitor panels and bolster its lineup of 40-inch sales were unchanged compared with the sales systems and structure. This included the Panasonic Annual Report 2012 Search Contents Returnpage 25 Next

Business at a Glance Business Review and Strategies Overseas Review by Region

In its pursuit of increased mobility, the steadily recover and expand in fiscal 2012. LUMIX DMC-GX1, a Flat-Type Mirrorless Substantially Expanding the Company’s Company channeled its energies toward Concerned with the impact of rising fuel prices Projector Lineup and Sales Network Interchangeable Lens Camera further bolstering its product lineup and on earnings, airline companies placed greater enhancing functionality. With the growing use emphasis on fuel-efficient aircraft when Taking full advantage of SANYO’s engineering of IT applications in outdoor locations, renewing and upgrading their fleets. This in assets, Panasonic took steps to substantially Panasonic released the TOUGHBOOK CF-D1, turn prompted an increase in demand for expand its product lineup in fiscal 2012. The a rugged tablet PC that offers outstanding in-flight entertainment (IFE) systems. Company now boasts the industry’s market outdoor visibility and a large LCD screen, in Against this backdrop, Panasonic worked leading lineup of portable, short throw and Europe in August 2011 and later in Japan in closely with aircraft seat manufacturers to high luminance projectors. At the same time, January 2012. This was followed by a develop newly designed seat-integrated Panasonic extended its sales network to over succession of new products including a thin monitors. This formed part of the Company’s 60 countries worldwide including SANYO’s mobile ‘Let’snote’ model for the Japanese aims to release the new lighter-weight IFE system channels. Despite these measures, overall market in February 2012. Looking ahead to with monitors. Panasonic reported double-digit sales declined year on year as growth in fiscal 2013, the Company will aim to expand its percentage growth in sales compared with the professional-use high brightness as well as Distinguished by its compact, lightweight, and highly mobile business by putting forward new application previous fiscal year retaining its top global market home cinema models was insufficient to offset properties. The outstanding responsiveness, high performance, and stunning design satisfy the advanced amateur. proposals on the back of increasingly robust share. In fiscal 2013, the Company will cutbacks in education budgets and other tablet PCs and reinforcing its sales activities in successively launch a series of new IFE system factors which drove down sales for medium emerging markets. products that address a variety of needs ranging luminance projectors. release of LUMIX MDC-GX1, a mirrorless from luxury to low-cost carriers. Commensurate In fiscal 2013, steps will be taken to release interchangeable lens camera. Unit sales Boasting a Top Global Market Share in with these activities, Panasonic will aim to meet new high luminance projector models, expand increased 1.7 times compared with the previous Aircraft In-Flight Entertainment Systems wide-ranging requirements by providing a variety overseas service bases, and strengthen local year while sales on a value basis improved of maintenance and communication products support capabilities. These efforts are substantially year on year. In fiscal 2013, the Despite the prolonged slump in the global and services including in-flight communication designed to generate growth that outstrips that Company will release products with improved economy, passenger demand continued to and Internet access to passengers. of the industry. basic functionality while endeavoring to strengthen the lens business. Moving forward, Panasonic will continue to expand its share of the The Tablet TOUGHBOOK CF-D1 PC Ideal Seat-Integrated Monitors Jointly PT-DZ21K, a Projector that Delivers mirrorless interchangeable lens camera market. for Use in Outdoor Locations Developed with Seat Manufacturers Outstanding Luminance and High Image Quality in a Compact Body Boosting the Production Capacity of Notebook PCs

Results in the notebook PC market in fiscal 2012 were mixed. Despite little or no year-on-year change in value-basis sales, due primarily to the economic downturn in Europe and the U.S., the market witnessed dramatic growth in unit sales of tablet PCs and renewed activity through the release of an ultrathin notebook PC. Under these circumstances, and despite difficulties in procuring hard disks as a result of the flooding in Thailand, Panasonic reported record levels of production and a year-on-year increase in sales after A rugged tablet PC for use in the most demanding of Panasonic is addressing wide-ranging in-aircraft needs by In addition to realizing super high brightness of 20,000 successfully capturing business demand in locations. Ideal for use outdoors, the TOUGHBOOK CF-D1 providing total solutions including the light-weight IFE lumens, the PT-DZ21K delivers 3D-capability and high boasts dust- and drip-proof properties as well as an system with newly developed seat-integrated monitors. reliability through a four-lamp system as well as system and Japan and overseas. extended battery life of approximately 10.5 hours. installation ﬂexibility with diverse functions. Panasonic Annual Report 2012 Search Contents Returnpage 26 Next

Business at a Glance Business Review and Strategies Overseas Review by Region

Toward Overseas Business Growth to expanding facilities at the Company’s refrigerator plant in Vietnam, plans are in place Appliances Panasonic is endeavoring to lift the ratio of to initiate operations at a new washing machine overseas sales to total sales in its household plant in April 2013. Building on the current Fiscal 2012 Results (Fiscal 2011 results are in brackets) appliances from the current level of 50% to manufacture of microwave ovens in Brazil, Percentage of 60% or more. To this end, the Company is Panasonic will begin producing refrigerators Fiscal 2012 Sales Sales Segment Profit engaging in product development based on and washing machines in August 2012 and local lifestyle research and targeting high May 2013, respectively. Strengthening internal volume segments. Panasonic also established production capabilities, Panasonic will utilize , billion billion the Global Marketing Planning Center in Shiga OEM outsourcing. In this manner, it will 15% ¥1534.2 ¥81.5 Prefecture in April 2011. By coordinating broaden its product lineup while tapping into (¥1,482.9 billion)(¥84.0 billion) lifestyle research undertaken in each region to emerging markets. uncover trends in demand, the Company put in Profit/sales ratio % 5.3 place a product planning process that is more Promoting Recycling-Oriented Manufacturing attuned to local needs. In popularly priced as a Platform for the Manufacture of Eco- products especially for emerging countries, Conscious Products Leveraging the latest environmental purchasers in emerging countries increased on Panasonic strengthened the Company’s lineup technologies, Panasonic delivers products the back of economic growth. including air conditioners with noise reduction Panasonic constructed a facility in Kusatsu and services that meet customer needs in Under these circumstances, sales of and energy saving functions, and expanded City, Shiga Prefecture in Japan in fiscal 2012 the homemaking, cooking, beauty & grooming washing machines, refrigerators, and air sales channels in India. The Company also for the specific purpose of engaging in and health, cooling and heating, hot water conditioners were higher than the previous developed local models of refrigerators and recycling-oriented manufacturing using reworked supply, and cold chain equipment fields. fiscal year in household appliances, washing machines, and increased overall sales materials. This facility manufactures glass wool Focusing on products that are attuned to refrigeration, air conditioning and heating in Brazil. from cathode-ray tube refuse for use as a the unique lifestyles of each region, the businesses after excluding the impact of Moving forward, the Company will focus on vacuum insulation material in refrigerators. Company is accelerating its overseas foreign currency exchange rates. Amid the strengthening local production in emerging Moreover, the Company was successful in business development. sharp rise in raw material prices, Panasonic markets. Specifically, Panasonic will commence developing a 3D in-mold decoration technology Panasonic also engages in the development, focused on cutting back its overhead production of air conditioners and washing that enables the use of recycled plastic materials manufacture, and sale of fuel cell cogeneration expenses as well as fixed costs. machines in India in January 2013. In addition in cosmetic applications by coating them with systems, car components and devices, and motors. Together with its BtoC activities, Strong Performance by ECO NAVI Products the Company is expanding into BtoB fields. Panasonic continues to emphasize sales growth An Example of Recycling-Oriented Manufacturing Household Appliances/ in ECO NAVI products, which automatically save — From Discarded CRT TVs to Vacuum Insulation Materials electricity depending on the mode of use. Based Refrigeration, Air Conditioning Successfully producing and Heating on increased awareness toward saving electricity fine fibers to among consumers in Japan, sales of the Company’s approximately 4 μm. Use as a vacuum Robust Sales in Developing Countries washing machines grew in fiscal 2012. insulation material Overseas, Panasonic marketed high In fiscal 2012, consumer sentiment in Japan value-added products including air conditioners, stalled owing to factors such as the Great East refrigerators, and washing machines equipped Japan Earthquake. Thereafter, replacement with the ECO NAVI function focusing mainly on demand exhibited signs of an upswing due to Asia and South America. The Company is recovery and reconstruction efforts. Overseas, successively releasing other products in other conditions were mixed. While demand in regions and is further expanding sales of ECO Recovered cathode-ray tubes Glass melting Recycled glass wool Vacuum insulation material developed countries grew weak due largely to NAVI products. Glass wool made from recycled cathode-ray tubes collected in large volumes following the termination of terrestrial analog the financial crisis in Europe, the number of broadcasting. Processed as a high-performance vacuum insulation material for use in refrigerators. Panasonic Annual Report 2012 Search Contents Returnpage 27 Next

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a layer of high extension film. Employing this Excellent Results in Ene Farm Home Fuel technology, Panasonic commenced production Cell Cogeneration Systems of refrigerators, washing machines and clothes Systems & Communications dryers, rice cookers, and vacuum cleaners with Panasonic launched a new model of its Ene a high-grade external finish from spring 2012. Farm home fuel cell in April 2011. Fiscal 2012 Results (Fiscal 2011 results are in brackets) This polymer electrolyte fuel cell offers the Percentage of Sales Segment Profit Expanding Lineups of Popular Series Products world’s highest rated generation efficiency of Fiscal 2012 Sales 40%*1 (LHV*2) and the industry’s smallest Panasonic released several new products in its installation space*1. Acclaimed for its lower health and beauty range. Responding to a price compared with conventional models, billion billion growing awareness toward hair and skin care, sales have expanded dramatically. 8% ¥840.8 ¥17.3 the Company introduced the Scalp Massager (¥938.1 billion)(¥47.6 billion) for household use and a new series in the ever *1 As of February 9, 2011. Source: Panasonic Profit/sales ratio % popular Pocket Doltz ultrasonic-vibration *2 The acronym for Lower heating Value 2.1 toothbrush lineup. In further enhancing the enjoyment of dining in the home, Panasonic Expanding BtoB Businesses also introduced the three star bistro steam This segment is largely comprised of the security. Overall system networks business oven range. Maximizing the benefits of heat In its BtoB business, Panasonic reported system networks and mobile sales, on the other hand, declined compared and steam, users can now prepare meals just year-on-year double-digit percentage growth communications businesses. with the previous fiscal year, owing to the like a master chef in a short period of time. in sales of car components and devices In its system network activities, negative impact on compact MFPs caused Furthermore, in its established petit series including car seat heaters and electric vehicle Panasonic is engaged in the worldwide by the sudden deterioration in market of products for use in condominiums, the charging cables. delivery of advanced security and conditions in China and the downturn in Company launched a countertop model of Under its new organizational structure, and communication solution services. In its demand for handy terminals as customers in Petit Dish Washer in February 2012 and a new with SANYO’s BtoB products including mobile communications business, the Japan curtailed their investment activities model of Petit Drum, a washer/dryer with large-sized air conditioning systems as well as Company provides mobile phones following the earthquake disaster. slanted drum in March 2012. Panasonic is cold chain equipment, the Company is incorporating cutting-edge functions, and Bringing new products to market, endeavoring to expand its customer base revamping its production methods for air communications infrastructure equipment. Panasonic released the BizPad tablet through such products. conditioning and refrigeration products. terminal for business use in December 2011. Panasonic is working to further enhance its System Networks Under the Company’s new organizational competitive strength. structure, this model harnesses the combined R&D capabilities of the Panasonic Petit Series of Popular Compact Size Growth in Network Cameras and Video Intercom Systems System Networks Co., Ltd. and Panasonic Products New Home Fuel Cell Ene Farm — Reducing Mobile Communications Co., Ltd. Designed Attuned to the lifestyles Installation Space Requirements by Increasingly recognized as an effective for heavy duty use while offering extended of single and married Modifying the Fuel Cell Unit disaster countermeasure, demand for cloud operations at reduced cost, this product is couple households, services grew steadily in Japan during fiscal receiving wide acclaim. which continue to By modifying the dimensions increase in Japan, of the fuel cell unit to a tall, 2012. In contrast, other developed countries Panasonic’s Petit series thin shape, the unit can be and emerging regions cutback their investment installed connected to the hot Petit Drum and Petit Dish activity due to factors such as the financial washer are enjoying water storage tank immense popularity. significantly reducing the crisis in Europe. space required for installation. Against this backdrop, Panasonic The surface area required for installation has been reduced recorded year-on-year double-digit by up to 50% in comparison percentage sales growth in business-use with conventional models. network cameras and home video intercom systems, reflecting heightened awareness Hot water unit (left) Fuel cell unit (right) toward the need for increasing safety and Panasonic Annual Report 2012 Search Contents Returnpage 28 Next

Business at a Glance Business Review and Strategies Overseas Review by Region

Establishing Two New Sales Companies to smartphones. The Company also introduced a Mobile Communications Supplying Remote Radio Equipment that Bolster Global Solutions Proposal Capabilities paperless conferencing system using the Complies with LTE*2 aforementioned BizPad tablet terminal. This Entering the Smartphone Market Panasonic is strengthening its overseas system allows participants to share the latest In recent years, telecommunications carriers solutions proposal capabilities in the system information on a real-time basis and to secure Sales of smartphone units in Japan exceeded have upgraded and expanded their infrastructure networks business. data from unforeseen contingencies. that of feature phones (conventional mobile equipment to accommodate the growing The Systems & Communications Company In fiscal 2013, Panasonic will continue to phones), accounting for more than half of the penetration of smartphones, the dramatic established new sales companies in China and strengthen the product competitiveness of its total demand in fiscal 2012. At the same time, increase in communication data traffic, and the Singapore in fiscal 2012. Together with its network camera, HD video communication, the market continued to polarize between introduction of LTE services. existing network that encompasses Japan, the SIP telephone*1 and related products in large-screen, high performance smartphones Against this backdrop, Panasonic entered U.S., and Europe, Panasonic commenced response to growth in the integrated IP solutions and lower priced feature phones. the LTE base station business in earnest in operations at five prime locations worldwide. market. At the same time, the Company will Under these circumstances, Panasonic fiscal 2012. In successfully delivering remote aim to expand its solutions business, including commenced sales of smartphones in fiscal radio equipment*3 that accommodates both Responding to Growth in the Integrated IP both hard and soft applications, by further 2012. In the domestic market, the Company W-CDMA and LTE services, the Company has Solutions Market augmenting its cloud services. released eight models including My First contributed significantly to NTT DOCOMO, Smartphone distinguished by its stylish design INC.’s Xi (Crossy) high-speed communication In fiscal 2012, Panasonic commenced the *1 Telephones based around Session Initiation Protocol and easy-to-use large screen, in conjunction service. On the overseas front, Panasonic has cloud-based Miemasu Net PRO AV service (SIP) technology that is widely used for controlling with NTT DOCOMO and Softbank Mobile. In commenced the supply of remote radio that allows users to monitor still and moving communications sessions and transmitting voice terms of low-priced feature phones, the equipment in the U.S. market through major and video data over Internet Protocol (IP) networks. images on network cameras from their PCs and Company continued to enjoy strong sales of mobile communication vendors. the simple and easy-to-use P-07B, which was released in the previous year. *2 The acronym for Long Term Evolution. A high-speed Reflecting the drastic shift toward transmission service for mobile phones. smartphones, the feature phone market has *3 Equipment that connects the digital processing component with the base transceiver station using contracted substantially. As a result, overall BizPad Tablet Terminals Experiencing Increased Paperless Conferencing System and Related Use optical ﬁbers while converting signals and amplifying sales in the mobile communications business power. Paperless conferencing system were down year on year. Looking ahead, Panasonic will increasingly channel management resources into the smartphone field in an effort to expand its market share.

7-inch LCD screen model 10.1-inch LCD screen model

The BizPad series of mobile terminals is distinguished by its shock resistant and large-screen lineup. Products include the 7-inch LCD screen model used primarily for ﬁeld service operations and the 10.1-inch LCD screen model for in-store, reception, and marketing support operations. BizPad is also experiencing increased use in paperless conferencing systems and other cloud services. Panasonic Annual Report 2012 Search Contents Returnpage 29 Next

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fiscal year. Overseas, Panasonic established in India, China, and Indonesia, countries that sales channels in such prioritized markets as continue to exhibit high rates of market Eco Solutions Asia and Latin America for its ball-type expansion. As a result, Panasonic enjoyed fluorescent lamps that offer outstanding double-digit percentage growth in sales of wiring Fiscal 2012 Results (Fiscal 2011 results are in brackets) energy savings. This was largely in response to equipment and circuit breakers compared with Percentage of the global trend away from incandescent the previous fiscal year. The Company increased Fiscal 2012 Sales Sales Segment Profit lamps. Accounting for the aforementioned, the sales personnel in India. It also strengthened its Company reported year-on-year double-digit sales agency network in China while bringing percentage growth in sales. Sales of Panasonic’s online a new wiring equipment plant in June 2011. high efficiency fluorescent lamps progressed Panasonic is pursuing speedy and cost-effective ¥1,525.8billion ¥58.9billion smoothly in China on the back of successful manufacturing through close collaboration with % 15 (¥1,526.5 billion)(¥57.9 billion) government tenders. The Company also Japan. Moreover, the Company strengthened commenced LED downlight sales. Turning to its sales capabilities in Jakarta and other urban Profit/sales ratio % Europe and the U.S., Panasonic increased sales areas of Indonesia. Moving forward, plans are 3.9 of LED modules to lighting fixture manufacturers. also in place for operations to commence at a However, lighting sales declined year on new wiring equipment plant in India in May 2012. year due to the drop in demand for existing In Japan, Panasonic recorded a year-on-year Panasonic’s Eco Solutions Company is The Company acquired large-scale orders lighting products as well as fluorescent lamps. double-digit percentage increase in sales of comprised of four business groups. With for its LED lighting fixtures. In addition to the Looking ahead, Panasonic will develop high condominium intercom systems owing largely lamps, devices, and equipment at its core, the construction of TOKYO SKYTREE®, Panasonic value-added products that harness the to growing renewal demand. The Company also lighting business engages in the development LED lighting fixtures were adopted by the Company’s LED and lighting technologies. At reported an improvement in energy monitoring of products that conserve energy and Nakanoshima Festival Tower in Osaka. The the same time, Panasonic will focus on products on the back of a rise in awareness contribute to comfortable and bright work Company has also gained success in lifting reducing costs by standardizing components toward energy conservation. Spurred by the spaces. The energy systems business is unit sales prices by enhancing functionality. and devices for high-volume segment products favorable conditions created by the government’s active in a wide range of fields from wiring This is evident in the security light Akalumina, and expanding product lineups. subsidy program, sales of charging devices for equipment and distribution panelboards to which received the Energy Conservation Grand electric vehicles jumped by around three times energy management products. The housing Prize for excellent energy conservation Energy Systems year on year. Marking another milestone in its systems business provides comprehensive equipment, and in Panasonic’s lineup of energy systems business, Panasonic also began home and building product, and material synchronized modulated LED lighting. As a Robust Wiring Equipment and Circuit taking orders for its Energy Creation-storage solutions. And, the environmental systems result, the Company more than doubled its Breaker Sales in Emerging Regions Linked System for the Home, which integrates business delivers air quality appliances and LED lighting sales compared with the previous the Company’s solar photovoltaic and storage solutions to promote a clean environment. In fiscal 2012, the Company was successful in battery systems and contributes to more bolstering its sales and manufacturing capabilities efficient use of energy, from March 2012. As a growth engine, the Eco Solutions LED lamp Clear Type have Received Company links a robust lineup of products Numerous Awards to provide comprehensive solutions. This elevation diagram is Energy Creation-storage Linked System Development a conceptual image.

Smart grid Lighting Grid Energy creation- compatibility storage control Growth in LED Lighting in Japan and in Photovoltaic modules LED lighting Energy Creation-storage Ball-Type Fluorescent Lamps Overseas Linked System for the Home Smart meter Smart home Reflecting the growing emphasis on saving appliances *1 SEG: Power Distribution Measurement Smart Energy electric power after the Great East Japan station panelboard unit Gateway Earthquake in Japan, traditional light sources *2 V2H: • Good Design Gold Award Vehicle to Home were replaced with LED bulbs at a rapid pace 2011(Japan) (Top left) V2H*2 in fiscal 2012. Against this backdrop, • Universal Design Award 2012 EV·PHEV Storage battery unit Monitor SEG*1 Panasonic upgraded and expanded its LED (Germany) (Bottom left) • iF Product Design Gold EV power transmission light bulb lineup while stepping up the joint and reception facility Energy saving Award 2012 (Germany) Smartphone Television control development of LED lighting fixture products. (Right) Panasonic Annual Report 2012 Search Contents Returnpage 30 Next

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While there was a drop in home fire alarm Environmental Systems systems as a round of renewal demand came to an end, overall energy systems business Strong Sales of Energy Saving Ventilation Automotive Systems sales were basically unchanged year on year. Fans and Air Purifiers In fiscal 2013, Panasonic will promote its Fiscal 2012 Results (Fiscal 2011 results are in brackets) energy management systems in earnest and In fiscal 2012, sales of DC motor ceiling mounted Percentage of look to expand its business globally. ventilation fans approximately tripled compared Fiscal 2012 Sales Sales Segment Profit with the previous fiscal year in Japan. Results in Housing Systems bathroom heater / dryer / ventilation systems with a sauna-like mist function and energy saving ¥653.2billion ¥4.9billion dehumidifiers were also up by a significant margin % Promoting Structural Reform to Expand 7 (¥611.6 billion)(¥22.7 billion) Earnings year on year. Overseas, Panasonic recorded double-digit percentage growth in sales of ceiling Profit/sales ratio % In addition to withdrawing from unprofitable mounted ventilation fans owing to favorable 0.8 businesses and implementing such structural conditions in the North America apartment housing reforms as overseas operating site consolidation, market. Results were also up in air purifiers and Panasonic undertook the following initiatives in pumps in China and Indonesia, respectively. Panasonic operates in wide-ranging economic growth in those countries. In fiscal 2012 to expand earnings. On this basis, overall environmental systems fields, from car navigation systems overall terms, however, global trends were First, the Company released new popularly business sales increased slightly year on year. through camera systems that support generally firm. priced flooring material and modular kitchen With this as a base, Panasonic will focus on safe driving to such key devices as engine Under these circumstances, the system products. This was supported by the capturing orders for energy saving plant control units and batteries for eco-cars. Company’s products for eco cars performed use of Panasonic’s fully automatic self-cleaning diagnoses in Japan while promoting entire Amid growing interest in more well. As a result, overall sales in automotive A La Uno S toilet by major restaurant chains, plant energy saving solutions overseas. comfortable, more environmentally- electronics were up year on year. which helped boost sales. In its comprehensive conscious, and safer vehicles, the In addition, Panasonic received solutions endeavors, Panasonic put forward numerous awards from domestic and Air Quality Visualization Model Home Company is engaging in the proposals that combine the Techno-Structure development of new products and overseas automobile manufacturers in earthquake-proof construction method, which has putting forward proposals while recognition of the Company’s a proven track record that spans approximately contributing to the creation of a new contributions to addressing automobile 4,000 structures in Japan, with eco solutions for motoring society through electronics. quality issues and its efforts in the field of the entire home. Moreover, in its condominium eco-car technology development. Work Airflow interior business in China, Panasonic confirmation visualization room Automotive Electronics undertook to promote comprehensive proposals Robust Sales of Batteries and Other from consulting through construction to Strong Performance by Devices for Eco Cars Devices for Eco Cars in Japan after-sales service. As a result, the Company secured housing Despite the negative impacts on In fiscal 2012, sales of batteries, especially systems business sales on a par with the level production of the Great East Japan film type capacitors that ensure the stable

recorded in the previous fiscal year. Building on Air-supply Air Earthquake and the flooding in Thailand, supply of power to drive motors, as well as the structural reform measure implemented in puriﬁcation contamination new car sales in Japan registered a related components and devices were testing testing fiscal 2012, Panasonic will push forward its With growing worldwide interest in measuring air quality in substantial recovery in the second half of strong. This was largely attributable to the comprehensive solutions to boost earnings in tightly sealed homes, Panasonic opened a model home that fiscal 2012. This contributed to a return to increase in hybrid vehicle production. fiscal 2013. employs a wide variety of methods to visualize the quality of growth for the first time in two years. In addition, SANYO’s hit Gorilla car air. Utilizing the latest in indoor air quality devices, the Overseas, new car sales declined across navigation system was re-released under Company is advancing proposals that promise healthy, comfortable, and energy efﬁcient living environments. developed countries with the exception of the Panasonic brand in June 2011. With North America. Rates of growth in the addition of Gorilla to its car navigation emerging countries such as China, Brazil, system, Strada series*1, the Company and India also slowed despite continuing significantly increased unit sales and Panasonic Annual Report 2012 Search Contents Returnpage 31 Next

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successfully captured the leading share in The new Tabi Navi targeting young the consumer product car navigation women who enjoy traveling was released system market in Japan. in November 2011. This was followed in Industrial Devices December 2011 by the launch of a Fiscal 2012 Results (Fiscal 2011 results are in brackets) *1 A device that combines AV entertainment system and portable navigation model that can also car navigation functions. be used for bicycles. By expanding its Percentage of lineup of new genre products, Panasonic Fiscal 2012 Sales Sales Segment Profit Nurturing Overseas Markets through the will cultivate new demand and invigorate Introduction of New Products the market. , billion – billion As a part of efforts to strengthen its lineup 14% ¥1 404.6 ¥ 16.6 of multi-media products in emerging Active Navi, an Ideal Travel Navigation (¥1,671.0 billion)(¥69.9 billion) regions where growth in new car demand Tool for Use when Cycling or Strolling Profit/sales ratio % is expected, Panasonic released a car AVC through City Streets –1.2 system equipped with speakers in India attuned specifically to the needs of the local market. Panasonic’s industrial devices business covers strategy in the electronic components business, The Company also undertook a wide range of products such as electronic as well as the drop in demand for conventional aggressive steps to acquire orders components, electronic materials, mobile phone products, sales in overall targeting major automobile manufacturers semiconductors, and optical devices. Drawing electronic components and materials declined looking to expand their global business. on a level of proprietary technology rarely compared with the previous fiscal year. Panasonic delivered the world’s first in-car found anywhere else in the world, the Company Despite these difficult conditions, the Display-Audio*2 system compatible with generates added value that a single product smartphone and eco-car markets continued to the new MirrorLink™ smartphone-to-car business would find difficult to realize. grow. Panasonic’s related products that have a connectivity standard to a major Japanese Positioning industrial devices in each of strong share in each market enjoyed robust automobile manufacturer for use in new the mobile, eco-car, and environmental sales. Results in Pyrolytic Graphite Sheets vehicles sold in Europe in November 2011. infrastructure markets at the heart of its (PGSs), an extremely thin high thermal The Company received orders for its in-car segment activities, Panasonic works to conductivity component, were particularly electric and plug-in hybrid vehicle create new businesses and products. strong. Applied as a smartphone heat chargers in the U.S. Moving forward, dissipation component, sales nearly doubled Panasonic is committed to further Electronic Components / year on year. Reflecting the trend toward expanding its business by meeting the Panasonic’s Active Navi systems provide wide- increasingly compact smartphones, Panasonic ranging outdoor leisure support. The Company Electronic Materials growing demand for eco-cars. re-released a Tabi Navi model (top) targeting young also retained its leading market share in narrow women and a portable navigation system (bottom) Lower Revenues on Lower Sales for AV pitch connectors. Moreover, the Company *2 Car audio system with added display function for bike riders. Equipment; Sales Growth for Smartphones increased sales of its multi-layer circuit board and Eco-Cars material MEGTRON series. Balancing the needs Cultivating Demand through New Products for high-speed transmission and heat resistance, that Harness Car Navigation R&D Assets The Great East Japan Earthquake, the flooding the MEGTRON series is used extensively in in Japan in Thailand and the financial crisis in Europe communication network equipment. caused consumer sentiment to stall in fiscal In the field of eco-cars, Panasonic’s Complementing the release in 2010 of Tabi 2012. This triggered a slump in finished product products fared well. Acclaimed for ensuring the Navi, a navigation tool that mainly targets manufacturer demand and created turmoil stable supply of power to motors, sales of film the senior who enjoys traveling, Panasonic throughout the supply chain. In addition, capacitors grew steadily reinforcing the continues to upgrade and expand its accounting for the decline in sales of components Company’s global market dominance. Buoyed lineup of navigation systems for use for AV equipment following the implementation by the integrity of its proprietary technology outside the car. of Panasonic’s selection and concentration and proven track record, Panasonic also Panasonic Annual Report 2012 Search Contents Returnpage 32 Next

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experienced strong growth in orders in electric Looking ahead, the Company will continue to sophistication in the medical field. Promoting Highly Efficient Manufacturing vehicle relays. to shift its manufacturing operations to an The Company also boasts a strong position by Comprehensively Managing Three Plants overseas-based business model in order to in Japan in power semiconductors through its in the Hokuriku Region Focusing on an Overseas-Based secure sustained growth. IPDs*3 that reduce the size and improve the Business Model power consumption of devices. Moving forward, While strengthening activities in growth areas, Semiconductors Panasonic will accelerate the overseas Panasonic is endeavoring to increase Panasonic is upgrading and expanding its development of IPDs, as an energy-saving production efficiency in its semiconductor overseas manufacturing operations which Harsh Results in the Field of Digital device, in line with growing inverter system use business. In March 2012, the Company include material and other front-end processes. AV Products in overseas home appliance products. integrated the operating functions of its three This reflects the need to strengthen its cost In addition, the Company will expand its Hokuriku plants (Uozu, Tonami and Arai). By competitiveness and meet the requirements of Conditions in the semiconductor market were Gallium Nitride (GaN) power device unifying operations across each area, high-growth-potential overseas markets. subdued in fiscal 2012. In addition to weak flat development capabilities. Thanks to its Panasonic is enhancing efficiency. For example, construction of a second panel TV demand in Japan following the shift proprietary structure, Panasonic’s GaN power At the same time, Panasonic is shifting a plant in Taiwan for the production of Any Layer to terrestrial digital broadcasting, cutbacks in devices reduce the power consumption and part of its processes overseas and is engaging Interstitial Via Hole (ALIVH), high-density printed the production of peripheral PC equipment, size of solar photovoltaic systems and power in outsourcing. Through these means, every circuit boards was completed in February digital cameras, and other products due mainly supply control circuits including servers. Plans effort is being made to streamline assets and 2012. Construction of a plant in Vietnam also to the flooding in Thailand resulted in a downturn are in place to commence mass production improve efficiency. commenced in September 2011. In Singapore, in semiconductors for digital AV products. during fiscal 2013. Panasonic is augmenting its chip-type Accounting for the aforementioned, overall Optical Devices Conductive Polymer Aluminum Electrolytic sales of the semiconductor business declined *1 Metal Oxide Semiconductor (MOS) image sensor: As Capacitor (SP-Cap) production facilities while year on year. of November 18, 2011. Source: Panasonic Drop in Revenue due to Weak PC Markets; commencing production in Indonesia of *2 A semiconductor device that transforms two-dimensional images into electric signals utilizing an MOS. Market Share Increase through Favorable OS-CON, a cylindrical-type aluminum solid Differentiating Sensors and Power *3 Intelligent Power Device (IPD): a semiconductor Assessments of Micro and Other capacitor with high conductive polymer or Semiconductors as a Mainstay Business device that helps to improve energy efficiency by Technologies organic semiconductor electrolyte material. Pillar combining power devices with control circuits to reduce size and switching loss. Despite a year-on-year decrease in overall sales In the semiconductor business, Panasonic is due to the slump in PC markets, Panasonic Any Layer Interstitial Via Hole (ALIVH) promoting innovation and change by shifting SmartFSI, a New MOS Image Sensor maintained its top global market share in PC High-Density Printed Wiring Board away from mainstay system LSIs for digital AV optical pickups and Blu-ray Disc recorder products to sensors and power semiconductors, optical disk drives in fiscal 2012. Acclaimed for which continue to exhibit high-growth potential. its proprietary micro technology, the Company Offering the highest sensitivity*1 together expanded its share of the slim drive market. with uniform and high picture quality, Panasonic Harnessing its micro technologies, Panasonic commenced the mass production of SmartFSI will accelerate growth mainly in the notebook a new MOS image sensor*2 in its digital camera PC market where the demand for increasingly image sensors business in November 2011. compact devices continues to expand. The SmartFSI is attracting acclaim in and outside Japan with plans in place for its steady introduction. Leveraging the compact and ultra-thin properties of SmartFSI’s proprietary light-focusing structure, its application is Panasonic achieved the industry’s highest sensitivity using ALIVH can make stacked via holes anywhere in any layers, extending into the mobile field. advanced semiconductor micro-technology. The Company’s so it enables higher wiring capacity. At the same time, utilizing new light-focusing structure significantly expands the incident a simple proprietary manufacturing process Panasonic has In medical-use camera image sensors, light angle ensuring uniform and high picture quality while successfully shortened the time required for delivery. Free Panasonic maintains a high market share. helping to produce a slimmer camera. from the burdens of plate processing as well as large volumes Products that are distinguished by their of chemical and liquid waste disposal, Panasonic’s ALIVH products contribute to global environmental protection. unparalleled color reproduction are contributing Panasonic Annual Report 2012 Search Contents Returnpage 33 Next

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further enhancing its cost competitiveness by HIT240 Series of Home-Use HIT lifting the ratio of components procured from Energy Photovoltaic Modules China and South Korea, where parts are relatively inexpensive, as well as the proportion Fiscal 2012 Results (Fiscal 2011 results are in brackets) of production conducted in China. Percentage of Panasonic is proposing several options Fiscal 2012 Sales Sales Segment Profit from a broad lineup of cylindrical cells (small diameter), prismatic cells and pouch cells for smartphones and slim line PCs including ¥614.9billion ¥–20.9billion tablets, which continue to exhibit dramatic % market growth. Working to further expand 6 – (¥637.0 billion)(¥ 15.2 billion) business, the Company is satisfying customers’ requirements by supplying optimal batteries. Profit/sales ratio –3.4% Actively Promoting Automotive and Storage Use Businesses major European markets of Germany, Italy, and Boasting the industry’s highest level of energy density, the In projecting an increase in global demand HIT240 Series of home photovoltaic modules provide an energy due to growing environmental concerns, France, the Company promoted overseas sales conversion efficiency of 18.7% (nominal maximum output). Business is expanding steadily in in-car Panasonic is developing a broad energy-based in Belgium and the U.K. where residential use lithium-ion batteries. In addition to the supply business including solar photovoltaic systems is particularly strong. As a result, Panasonic achieved double-digit and lithium-ion batteries where use is also Lithium-Ion Batteries Panasonic’s Lithium-Ion Battery Cells expanding from consumer to storage, in-car, percentage growth in overall solar photovoltaic Used in Ford Motor Company’s Hybrid and other fields. system sales. Taking Steps including the Consolidation and Plug-in Vehicles The Company is also pursuing worldwide of Manufacturing Sites in Japan to Boost growth through such products as the * Efficiency per kW in solar power generation systems. Competitiveness EVOLTA dry alkaline battery, which boasts long-lasting performance, and lead-acid New Vertically-Integrated Manufacturing In fiscal 2012, overseas results were mixed. storage batteries. Facility in Malaysia While trends in electric power tools were strong, demand for notebook PCs declined. At Solar Photovoltaic Systems Panasonic plans to ship high cost competitive the same time, the mainstay consumer-use HIT photovoltaic modules worldwide from a market was also impacted by the floods in Brisk Sales of HIT Photovoltaic Modules manufacturing plant in Malaysia currently Thailand resulting in a prolonged harsh under construction. This plant will serve as a operating environment. As a result, overall The solar photovoltaic system market in Japan vertically-integrated facility producing wafers, sales of lithium-ion batteries were down benefitted from the residential installation cells, and modules. Mass production is compared with the previous fiscal year. Lithium-ion battery cell for hybrid electric vehicles (right) and subsidy program and the scheme to purchase scheduled to start in December 2012. Once Against this backdrop, Panasonic is working plug-in hybrid vehicles (left) surplus electricity. While overseas demand was the facility comes online, annual solar cell diligently to further enhance its competitiveness. also strong, competition is becoming increasingly production capacity will increase from 600 MW As a part of its structural reform initiatives in intense with the growing prominence of Chinese as of the end of fiscal 2012 to 900 MW. Japan, the Company is consolidating its manufacturers. In addition, this new facility will trigger domestic bases while boosting operations Under these circumstances, Panasonic efforts to further extend the strengths of HIT overseas. Construction of a new facility at the worked to increase sales of its Heterojunction modules. Panasonic will strive to develop Company’s Suzhou factory in China was with Intrinsic Thin layer (HIT) photovoltaic technologies that contribute to new and undertaken with a view to bolstering modules that boast the industry’s highest level appealing products. Panasonic’s integrated lithium-ion battery energy density* through its diverse sales production system. Production commenced in channels in Japan. In addition to the three July 2012. Moving forward, the Company is Ford Fusion Hybrid Electric / Fusion Energi Panasonic Annual Report 2012 Search Contents Returnpage 34 Next

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of lithium-ion batteries for Toyota Motor sales extending over around 60 countries Corporation’s Prius Plug-in Hybrid vehicle, worldwide, the Company’s EVOLTA batteries have U.S.-based Ford Motor Company has decided not only been recognized for their long life, but Other to adopt the Company’s products in four of its also their use after an extended period of storage. hybrid and plug-in hybrid models. Panasonic As a result, Panasonic achieved double-digit Fiscal 2012 Results (Fiscal 2011 results are in brackets) has also entered into an agreement to supply percentage growth compared with the previous Percentage of lithium-ion battery cells for use in Tesla Motors’ fiscal year. Buffeted by a downturn in the European Fiscal 2012 Sales Sales Segment Profit electric vehicles. Under the agreement, the and U.S. markets, however, overall sales in the dry Company will deliver cells for more than battery business declined year on year. 80,000 vehicles by fiscal 2016. Working to Moving forward, the Company will work , billion billion further expand business in all directions, the toward meeting demand growth particularly in 18% ¥1 880.9 ¥23.6 Company is increasing production capacity by developing countries. With the aim of (¥2,304.8 billion)(¥60.9 billion) expanding to a six-line mass production becoming the world’s leading manufacturer of Profit/sales ratio % structure in fiscal 2013. dry batteries, Panasonic will target an annual 1.3 In lithium-ion storage battery systems, production capacity of approximately six billion Panasonic began receiving orders for units by fiscal 2016. business, industrial as well as residential, and In fiscal 2012, overall segment sales instruments in Japan. Sales increased in public sector-use from August, November, and high-precision next-generation blood glucose EVOLTA Alkaline Dry Batteries decreased compared with the previous December 2011, respectively, in Japan. fiscal year due mainly to the semiconductor monitoring systems, while being introduced to Moreover, the Company began accepting Boasting business transfer implemented by SANYO various overseas markets including Europe. orders for its Energy Creation-storage Linked long-lasting In ultrasound diagnostic systems, Panasonic performance and Electric Co., Ltd. in fiscal 2011. System for the Home in March 2012. The a recommended commenced sales of proprietary brands in system integrates Panasonic's solar cells and shelf-life of 10 North America and Japan from fiscal 2012, in years, EVOLTA Healthcare Company lithium-ion storage battery unit. alkaline dry addition to its existing OEM supply activities. batteries are Panasonic provides a variety of However, sales declined due mainly to the widely acclaimed Dry Batteries as an essential healthcare-related products and services strong yen and increasingly intense price item particularly primarily in the fields of In-Hospital Work competition. in the event of a Sales of EVOLTA Batteries to Approximately disaster. Assistance, Home Healthcare, and Early Accounting for each of the aforementioned 60 Countries Worldwide Diagnosis and Treatment. factors, healthcare-related sales were essentially Put simply, the Company is working to unchanged from the previous fiscal year. Supplies ran short during the first half of the Lead-Acid Batteries deliver healthcare that is affordable to more fiscal year under review following the earthquake people. Its success in this endeavor will Release of Panasonic-Brand Ultrasound disaster and the sudden rush in demand. Due help the global community to lead an Robust Results in Car Batteries Diagnostic Systems to market corrections in the second half, demand enriched and healthy life. declined year on year. In this business, Panasonic provides batteries A defining feature of To address this first half jump in demand, for gasoline, diesel, and hybrid vehicles, Continued Growth in the Healthcare Market Panasonic’s ultrasound Panasonic increased production at global sites independent power supply systems, and diagnostic systems is their and imported approximately 16 million units industrial-use lead-acid batteries for electric Healthcare markets in Japan and overseas simple touch-panel operation. These systems from overseas plants. Utilizing an innovative forklifts and other devices. Driven by car continue to expand year by year due largely to help in the early diagnosis of manufacturing process to prevent leakage, the battery growth both in Japan and overseas, aging populations and an upswing in such arteriosclerosis. Company also released a new EVOLTA battery in sales in fiscal 2012 increased year on year. lifestyle diseases as diabetes. Against this April 2011 in response to a growing awareness In addition to expanding sales in such backdrop, Panasonic released an integrated toward disaster prevention. Amid the ongoing shift developing country markets as China and India, picture archiving and communication (PACS) overseas from manganese to alkaline dry batteries, Panasonic will endeavor to further increase sales electronic medical chart system to assist Panasonic commenced the production of EVOLTA focusing mainly on idling-stop vehicles in Japan hospitals in more efficiently diagnosing disease, batteries at its Thailand plant in March 2011. With going forward. and strengthened its lineup of hearing Panasonic Annual Report 2012 Search Contents Returnpage 35 Next

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Overall Healthcare Company sales, on the from the smartphone industry, where demand PanaHome Corporation stage at Panasonic’s former factory site in other hand, declined, owing to withdrawal from remained steady. At the same time, the Fujisawa city, PanaHome has commenced the device business including fluid dynamic Company strengthened its Next Production As the housing company of the Panasonic steps to promote its own PanaHome Smart bearing motors and the AV business. Modular (NPM) product lineup. Group which is striving to become the No. 1 City concept. With the CASART TERRA ‘eco In welding equipment, Panasonic Green Innovation Company in the Electronics ideas’ home at its core, a variety of measures Endeavoring to Provide a Wide Range commenced sales of the RX series of inverter Industry, PanaHome focuses mainly on have been introduced including landscape of Solutions controlled arc welding equipment that offer delivering ‘eco ideas’ homes through each architecture that helps retain asset values over outstanding energy-saving performance in May of its detached housing, asset and property the long term, and security systems that Under the guidance of a new structure 2011. Panasonic also focused on expanding management, and home remodeling deliver safety and security. Utilizing these following the Group’s reorganization, every sales of its high-performance welding robot businesses. measures, plans are in place to promote urban effort will be made to boost sales. To this end, Active TAWERS. development nationwide. Panasonic will accelerate the development of Looking ahead, Panasonic will continue to Strengthening Product Lineups Moreover, PanaHome is reinforcing new products including in-hospital assistant support the manufacturing activities of its collaborative ties with Group companies. While robots, establish overseas sales companies, customers by offering combined mounting, Japan’s housing market remained firm during further advancing its ‘eco ideas’ for the entire and integrate SANYO’s sales channels. joining, and processing solutions. fiscal 2012 on the back of wide-ranging support home concept through the use of storage Together with the medical information measures by the Japanese government such batteries as well as home energy management systems and life science businesses bolstered as the eco-point stimulus package and housing and other systems, PanaHome is building on through collaboration with SANYO, and the Production Modular NPM-TT loan program, which included the provision of its unique position as a home builder to nursing care device and service business — Enhancing Productivity and Versatility housing loans at preferential interest rates. accelerate efforts aimed at promoting ‘eco previously provided by the Panasonic Electric across the Entire Mounting Line Under these circumstances, and as a part ideas’ for entire towns and society from the Works Co., Ltd., the Company will redouble of efforts to strengthen product lineups, standpoint of residents and tenants. its efforts to deliver wide-ranging healthcare NPM-TT brings to PanaHome launched CASART TERRA, a zero fruition independent solutions. mounting and carbon footprint house, in October 2011. non-stop changeover Buoyed by these endeavors, sales in the CASART TERRA ‘eco ideas’ Home in dual-lane mounting detached housing business were strong. Manufacturing Solutions with front/rear direct Company tray speciﬁcation. PanaHome also worked diligently to boost Improves the overall sales in the asset and property management Panasonic provides a high operating rate operating rate of business through the release of EL MAISON equipment. and reliable manufacturing systems for FICASA, rental apartments with outstanding electronic component mounting, welding, environmental performance, in April 2011. With and other equipment. In addition to facility a view to putting forward ideas that both embody and address environmental concerns, systems, the Company focuses on Active TAWERS comprehensive solutions businesses. This PanaHome introduced the proposal of a — a Robot Fused with a Full Digital entails putting forward total solutions that complete makeover of the entire home in its incorporate related materials and software. Controlled Welding Power Source home remodeling business. PanaHome also provided assistance through the construction of temporary housing in the areas devastated Cultivating Customers in Growth Fields The Active TAWERS CASART TERRA combines entire insulation homes that robot directly delivers by the earthquake in Japan. As a result of utilize geothermal heat with ventilation systems equipped In overall terms, capital investments were full control of its these factors, sales surpassed levels recorded with ECO NAVI functions to create the ideal living welding waveform. subdued during fiscal 2012 due to weak PC in the previous fiscal year. environment. Again, through a combination of solar Addresses the dual photovoltaic systems, ENE-FARM fuel cells, and ECO CUTE and AV industry investment. As a result, overall concerns of enhanced natural-refrigerant water heating systems, CASART TERRA welding quality and Manufacturing Solutions Company sales helps to reduce CO2 emissions to a net balance of virtually reduced running costs. Putting Forward Proposals for the Entire declined year on year. Home and for Entire Towns and Society zero while substantially curtailing utility expenses. On a brighter note, Panasonic cultivated customers in growth fields, securing orders for In addition to the Fujisawa Sustainable Smart electronic component mounting equipment Town (SST) project, currently in its planning Panasonic Annual Report 2012 Search Contents Returnpage 36 Next

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Americas Progressive Growth of BtoB Sales in North America; Overseas Review by Region Stable Sales in Central and South America Panasonic is shifting its business from Japan-centric to globally-oriented. (Billions of yen) In fiscal 2012, sales in the solutions as well as components and devices Under a new Group organization, the Company is accelerating efforts to 1,500 business sectors were strong in North America with particularly robust expand its overseas business. In addition to establishing the Global 1,200 growth in in-flight-entertainment and automotive-related systems. In the 966.5 consumer area, however, operating conditions remained difficult due to a Consumer Marketing Sector to promote a uniform market strategy and 900 variety of factors including the drop in flat-panel TV prices. In Central and product planning, Panasonic has set up a new system sales company base 600 South America, results in flat-panel TVs and mini component systems to bolster solution proposal capabilities. 300 were especially firm in Brazil and Mexico while sales of air conditioners 0 were steady in Panama. Taking into consideration the aforementioned 2008 2009 2010 2011 2012 (Fiscal) year factors, overall sales in the Americas declined year on year.

Overseas Sales Ratio Europe Firm White Goods Sales; Realized Expected (%) Benefits in the Energy Field 60 (Billions of yen) In fiscal 2012, sales in Europe declined year on year against the 50% 1,500 backdrop of a prolonged economic slump across the market as a 50 48% 1,200 whole. Despite firm sales of such white goods as washing machines 47% 46% 47% and refrigerators, this decline was mainly attributable to persistent 40 900 743.6 difficult sales conditions for AV products including flat-panel TVs and 600 30 digital cameras. In energy solutions, a priority business field, Panasonic Fiscal 20082009 2010 2011 2012 ( year ) 300 has achieved results that are expected to drive future business 0 expansion. This includes capturing large-scale solar photovoltaic 2008 2009 2010 2011 2012 (Fiscal) year system orders. Share of Sales by Region

Fiscal 2011 Fiscal 2012 Asia and China Sound White Goods and Beauty-and-Health Americas Americas Appliance Sales; Weak Results in AV Products 12% 12% (Billions of yen) In fiscal 2012, sales of white goods including air conditioners and Europe Europe 2,500 washing machines were firm on the back of successful efforts to 10% 10% 1,974.1 Consolidated Consolidated 2,000 bolster product lineups and expand sales channels. Recognized Japan Sales Japan Sales Asia for their technological competence, sales of air purifiers and 52% ¥8,692.7 53% ¥7,846.2 1,500 931.1 beauty-and-health-related appliances were also strong. AV products billion Asia and billion Asia and 1,000 including flat-panel TVs, on the other hand, were significantly China China China 500 impacted by the drop in prices, intense competition, and other 26% 25% 1,043.0 0 factors. As a result, sales across Asia and China as a whole 2008 2009 2010 2011 2012 (Fiscal) year declined year on year. Panasonic Annual Report 2012 Search Contents Returnpage 37 Next

Business at a Glance Business Review and Strategies Overseas Review by Region Highlights

North America China

Pushing Comprehensive Eco IT First BtoB Solutions Exhibition Held Solutions Forward in China In the U.S., Panasonic is aggressively promoting eco IT solutions Panasonic held its ﬁrst solutions exhibition in China in Beijing in that combine environment-related products such as commercial March 2012. In addition to its broad product lineup, the Company air conditioners and refrigerated showcases with AV/IT products showcased proposals that address the requirements of a wide including point-of-sale and digital signage systems for fast food variety of systems. The exhibition drove home Panasonic’s ability and convenience stores to deliver solutions on an markets. Breaking new • • • individual product basis ground in North America, • and for each industry and in February 2012, this business scene. packaged solution was Responding to calls for safe, installed in a cafeteria near • secure, and comfortable Chicago, which has been living environments, the operated by the Compass exhibition was also an Group, one of the leading • opportunity to demonstrate providers of corporate and Compass cafeteria, the first project solutions for the entire home facility cafeteria services. in North America and building. Welcoming a large number of customers

South America Europe Asia

Group-wide Project to Significantly Expand Installation of a 1.1 MW Solar Array Total Energy Solutions Test-bed Project Sales in Brazil in London in Singapore A succession of major events including the 2014 Soccer World The project to install over 6,000 m2 of HIT solar photovoltaic panels Partnering with local government agencies in Singapore, Cup will be held in Brazil, Latin America’s leading economic at the Blackfriars railway station redevelopment in London began Panasonic has launched a test-bed project to provide greener metropolis. Panasonic has made a promising start since the launch in October 2011. The project sees the construction of a railway urban sustainability solutions to existing public housing facilities. of its Group-wide project, which aims to tap into this important station on a bridge spanning the River Thames and on completion In addition to the combined use of the Company’s photovoltaic market. With the goal of in September 2012, the systems and lithium-ion securing an approximate project will represent the batteries to supply fivefold increase in sales biggest solar array in renewable energy to in fiscal 2016 compared London and the world’s power common facilities with fiscal 2011, the largest solar bridge. In including elevators, and Company is ramping up addition to providing 50% as a backup during power efforts to increase local of the station’s energy, this outages, Panasonic is production of white goods solar project is projected promoting expanded use while strengthening its sales to reduce CO2 emissions of its Home Energy structure. Local website featuring Neymar da Silva by an estimated 511 tons Continued progress in the installation of Management System Santos Jr. per year. HIT photovoltaic panels (HEMS). Test-bed project kick-off ceremony Panasonic Annual Report 2012 Search Contents Returnpage 38 Next

Initiative Ene Charge System Uses Heating Energy Effectively by Storing Heat Rather than Discharging It R&D into the Atmosphere Panasonic has developed the Ene Charge System, constant temperature during heating, thereby minimizing room temperature fluctuations and reducing The Company’s R&D topics are wide in scope, which is equipped with a unit for storing the energy loss*3. ranging from digital network & software to heat that outdoor units previously emitted into *1 In environments with significant frost buildups, heating may be halted during operation in defrost mode. device and environmental technologies. the atmosphere, thereby making effective use *2 Delivery temperatures and the time prior to delivery vary, depending on usage environment, operating conditions and temperature. Panasonic has established R&D sites at of heating energy. We began using this system *3 Results may vary, depending on usage environment, operating conditions and temperature. optimal locations globally so that it can make for room air conditioners in fiscal 2011 in Japan. the most of engineers and technologies in In the past, frost was removed from outdoor Japan, North America, Europe, China and the units by halting the flow of warm air when Wrapped around compressor, ASEAN region. In recent years, the Company operating in defrost mode, and by lowering the uses waste heat to charge has placed particular emphasis on the indoor temperature. The new system, however, development of products that are more allows non-stop heating*1, so that warm airflow New Heat storage unit closely tailored to the food, clothing and need not be halted when operating in defrost housing environments of emerging countries. mode. At the start of warm air delivery, the Finless thermal storage heat system also makes effective use of the heat exchanger that converts stored heat to energy During fiscal 2012, in addition to accelerating stored that has been stored during operation. Remote control can be used development of our main products, under our new This contributes to comfort by delivering Heat storage tank that curtails to check the drop in compressor temperature post-reorganizational structure we concentrated high-temperature air, with outlet temperatures charge 2 on environmental and energy-related technologies, of around 50 °C* . (Image) reinforcing development according to energy In addition, the X Series of room air solution-related themes, particularly home conditioners that went on sale in October (Image) Compressor energy management systems incorporating 2011 also uses stored heat to keep rooms at photovoltaic modules and lithium-ion batteries. Moreover, the Innovation Promotion Center collaborated closely with related divisions within Initiative Energy Creation-storage Linked System for the Home Maximizes Use of Natural Energy during Both Normal the Panasonic Group, working diligently to and Abnormal Operating Conditions increase the pace of new business creation. Panasonic incurred ¥520.2 billion in R&D Panasonic has developed the Power station, Normal Power Circuit Circuit during Power Outage expenditures in fiscal 2012, which amounted to which integrates power conditioners for both 6.6% of total sales. In fiscal 2013, we will continue the solar photovoltaic system and the storage Photovoltaic Storage Photovoltaic Storage working on environmental and energy-related battery. In March 2012, we began accepting module battery Charging optimizes balance module battery Charging optimizes balance between solar power generation between solar power generation technologies and will strive to step up the pace orders for home energy creation-storage linked and loading equipment and loading equipment of new business creation. systems that incorporate the Power station, solar photovoltaic systems and lithium-ion Power station Power station R&D Expenditures battery units, in Japan. By effectively distributing to the Power station (Billions of yen) electricity generated by solar photovoltaic 600 520.2 Electric Electric systems as well as grid electricity, the system utility utility maximizes natural energy use during power Residential Backup Residential Backup 400 outages as well as during normal operations. distribution distribution distribution distribution Nighttime switchboard switchboard Outage switchboard switchboard power 200 •Charged using surplus energy generated in daytime by •Power generated by photovoltaic module charges photovoltaic modules storage battery 0 2008 2009 2010 2011 2012 (Fiscal) •Grid electricity used for charging at night •Operates even during long outages year (In economy priority mode) Panasonic Annual Report 2012 Search Contents Returnpage 39 Next

products such as car electronics, batteries and Initiative Solutions Design Design Development solar cells; and solution-based products that relate to networked systems and homes. The Our designs are inspired by the environments in solutions that are easy to use, install, and realm of our design has expanded solutions for which they are used. Modular kitchen systems maintain, such as HD integrated cameras. Future Craft was launched globally as a design entire cities, including homes, ofﬁce buildings, and baths come with customizable functions and philosophy for all Panasonic products. retail environments, hospitals and institutions. designs based on customer needs. LED bulbs By realizing Future Craft globally across and ceiling lights adjust according to life activities multiple design disciplines, we strive to satisfy and time of the day. Wireless door monitors can New Design Philosophy for the customers throughout the world and contribute be installed easily, even in rental apartments. LED ceiling light Centennial Vision to a sustainable society based on our We design comprehensive industrial AVC 2012 iF Gold Award Future Craft embodies the following four guiding centennial vision - Green Life Innovation and (Germany) principles: innovations that evoke aspiration, spirit Green Business Innovation. IDEA Gold Award (U.S.A.) Door monitor that shows of craftsmanship in manufacturing, human focus UD Award who is at the door without through universal design, and sustainable design (Germany) having to go to the door Red Dot Design that always considers environmental impact. Aspiration Award (Germany) Panasonic’s design development spans a Craftsmanship Human Focus 2011 Good Design 2012 wide range of products: consumer products Gold Award (Japan) iF Gold Award One with the Earth ( ) such as audio-visual equipment, communication Germany LED lamp Clear Type, recipient of devices and home appliances; component Design Philosophy Kitchen and bath designs that enhance dwelling several prestigious design awards HD integrated camera

Initiative Design Tailored to Regional Characteristics Initiative Maximum Value-Added Design

Design development centers in Europe, North are placed in European homes. Products that have We develop globally relevant, innovative designs player makes it a statement piece in any interior. America, China and Asia were established to meet earned high praise include microwave ovens and at our design centers in New York and London. Digital SLR cameras engage enthusiasts through various needs across the globe and create designs refrigerators that are durable and timeless, Our flat panel TVs have won accolades with a their classic camera feel and style. Our widely tailored to each region. For example, our center in energy-efficient air conditioners that blend in with narrow bezel design that blends in well with acclaimed smartphones are water- and dust-proof, Europe has designed home appliances specifically interiors, and drum-type washing machines with interiors. The sleek shape of the Blu-ray Disk and slim enough to fit into shirt pockets. optimized for how they are used and where they large doors that make loading and unloading easy.

European Home Appliances

Digital SLR camera Smartphone Air conditioner

Drum-type Two-door refrigerator Microwave oven washing machine with bottom freezer

Flat panel TV Blu-ray Disc player Panasonic Annual Report 2012 Search Contents Returnpage 40 Next

products with a view to new growth. Accordingly, Trademarks Strengthening Measures to Fight Counterfeiting Intellectual Property in addition to Japan we maintain IP offices in China, the U.S. and Europe that engage in IP Panasonic is active in its efforts to protect brand fight counterfeiting. Panasonic coordinates with activities that best reflect local conditions. rights and prevent counterfeits in all countries in other companies and the Japanese government Panasonic is taking full advantage of its To develop these activities on a global scale, which it operates. The Company’s basic to prevent counterfeit products in a host of intellectual property (IP) rights to protect and we work to foster IP personnel who have Panasonic corporate brand is a registered countries. We have decided to establish a base secure the competitive advantage of its managerial inclinations. Panasonic takes a trademark in approximately 190 countries for such countermeasures at Panasonic businesses and products. In this regard, we proactive approach toward IP training that helps worldwide. In addition, trademarks for such Corporation of China, as this country is an actively promote global-scale IP activities. engineers and managers to fulfill their job product sub-brands as VIERA are held in most important hub for fighting counterfeiting. responsibilities. Panasonic also maintains an IP major global markets. In fiscal 2012, we put in place Preparations are underway to launch this system rights database that engineers can use for both an integrated Group management system for our in fiscal 2013. We expect this new system to Uniform Management of the Group’s R&D and IP activities. trademark rights, marking an increase of around improve the efficiency and the quality of our Intellectual Property Rights In fiscal 2012, we set up a new IP rights 20% in trademark holdings, to 9,268 in Japan trademark operations, and should boost the value Amid increasingly intense global competition, management system that combines SANYO and 16,761 overseas as of January 31, 2012. of trademark rights for the Group. Panasonic recognizes the need to efficiently and Panasonic Electric Works. Going forward, We are also concentrating on measures to secure and leverage global IP rights to new we will accelerate the process of synergizing technologies, services, brands and designs, to this expertise into distinctively Panasonic maximize the value of its businesses and product offerings. Design From Products through Components to Packaging

Design is a core element in the sale and brand companies’ design patent rights. Patents Strengthening IP Rights through International Filings image of each product. Accordingly, Panasonic Issues related to the counterfeiting of designs strives to secure and maintain design rights for have increased in recent years, reflecting business In addition to the developed regions and countries pursuing greater efficiency and quality in the all newly released products. The Company also growth in such regions as Asia and the Middle of Europe and the U.S., Panasonic is stepping up acquisition of overseas patents. pays particular attention to securing component East. SANYO and Panasonic Electric Works its patent application activities in such strategically In fiscal 2012, as a result of our aggressive and package design patent rights. Furthermore, consolidated their design divisions in January important emerging countries as China and India. patent filing efforts in various countries and by Panasonic has assigned a specialist in design 2012, thereby strengthening efforts to secure As part of its overseas strategy, the Company is individual business divisions, we maintained our patent intellectual property rights to areas our rights and introduce countermeasures in also taking full advantage of the system for number two global ranking in patent filings under engaged directly in design development activities. individual countries. As of January 31, 2012, simultaneously applying for patents in multiple the PCT. As of March 31, 2012, we held 66,880 This specialist is charged with examining Panasonic held 12,948 design patents in Japan countries under the Patent Cooperation Treaty patents in Japan and 73,266 overseas, competitor prior design patents on a daily basis, and 10,848 overseas. (PCT). Through this approach, Panasonic is representing one of the world’s foremost levels. and to ensure that we do not violate other

Global Patents Held by Region*1 Trends in International Patent Filing World (As of March 31, 2012) Rankings under the Patent Cooperation Treaty (PCT)*2 Rank 2009 2010 2011 Concentrating Our Base for Measures to Fight Counterfeiting in China Others 9% Panasonic Corporation Panasonic Corporation ZTE Corporation (Japan) (Japan) (China) 11% 1 BRICs Group Japan 1,891 2,154 2,826 In fiscal 2013, we will establish a base at Panasonic safety of our products. total Corporation of China to consolidate our efforts Measures for fighting counterfeiting early in 48% Huawei Technologies Co., Ltd. ZTE Corporation Panasonic Corporation 12% 140,146 2 (China) (China) (Japan) to fight counterfeiting in China. We consider the supply chain are important. Strengthening Europe (patents) 1,847 1,863 2,463 these measures an important part of our efforts these measures in China, which is a core Robert Bosch GmbH Qualcomm Inc. Huawei Technologies Co., Ltd. 20% to maintain or enhance brand value, prevent lost manufacturing base, will help to consolidate our The U.S. 3 (Germany) (the U.S.) (China) 1,586 1,677 1,831 sales opportunities and assure customers of the Groupwide expertise. *1 The graph depicts the number of patents held by Panasonic Corporation *2 The number for Panasonic does not include patents filed under the and its principal subsidiaries, including SANYO Electric Co., Ltd. SANYO name. Panasonic Annual Report 2012 Search Contents Returnpage 41 Next

Vision looking to the 100th anniversary of our founding Initiatives Contribution in Reducing CO2 Emissions Environmental No. 1 Green Innovation Company in the Electronics Industry By fiscal 2019, we aim to make net CO2 emissions Medium to Long-Term Targets and Actual Results for Activities Make the environment central to all of from our entire business operations peak out the Size of Contribution in Reducing CO2 Emissions our business activities and bring forth innovation (reach a peak and decline thereafter). A major Aiming to be a Green Innovation Company, portion of CO2 emissions across all our operations Size of contribution in 120 Panasonic is making the environment central comes from emissions when customers use our reducing CO2 emissions to all its business activities. The Company Green Life Green Business (million tons) Innovation Innovation products. In addition to introducing a unique 41 aims to reduce CO2 emissions not only from indicator, size of contribution in reducing CO2 production activities, but also from customers’ Realizing the Greatest Realizing Green Lifestyles Possible Reduction emissions, and striving to reduce CO2 emissions 40.37 everyday lives through its products. We are to Enrich People’s Lives in Environmental Impact in production activities, we are also accelerating also working to achieve Recycling-oriented and Proposing Ideas emissions) initiatives to reduce CO2 emissions from product 2 Manufacturing to make the best use of 35.18 Energy-creating use, which includes the aggressive development (CO products resources, contributing to the realization of a categories, including contribution to reducing sustainable society. and sale of energy-saving and energy-creating Peak out CO2 emissions and contribution to recycling products. resources. We are pursuing these objectives In fiscal 2012, against the size of contribution in simultaneously, working to integrate our Energy-saving Promoting an Integrated Approach reducing CO2 emissions target of 37 million tons, products environmental contribution and business growth. to Environmental Contribution and we achieved 40.37 million tons. In addition to our Business Growth in an Effort to Become To achieve our vision looking to the 100th Production anniversary of our founding and Green Indexes, we own company, we have also commenced initiatives activities a Green Innovation Company have formulated Green Plan 2018, which amounts to reduce CO2 throughout the supply chain. 2006 2011 2012 2013 2019 (Fiscal year) In 2010, we formulated the vision looking to the to an environmental action plan for all employees. (Base) (Target) (Target) 100th anniversary of our founding in 2018, in Centered on four Green Index categories, this which we aim to be the No. 1 Green Innovation plan establishes objectives to be achieved by Company in the Electronics Industry. fiscal 2019 for a variety of environment-related Initiatives Contribution to Recycling Resources We set as indicators net sales, operating profit initiatives and serves as the base from which we ratio and other specific numerical management will conduct proactive environmental activities As part of our efforts to realize a sustainable Parts that Use Recycled Resources in the Resources targets, as well as Green Indexes in four throughout the Group. society, we are pursuing Recycling-oriented Recycling-oriented Products Series Manufacturing throughout our business *3 *4 Description of Green Indexes and Their Progress operations, in which we are working to maximize 90% 26% Results Targets our use of recycled resources and minimize Detergent Items tray FY2012 FY2012 FY2013 FY2019 waste generated from production activities. Vacuum insulation material Size of contribution in 40.37 37.00 41.00 For fiscal 2013, we have set the percentage of reducing CO2 emissions*1 *2 million tons million tons million tons recycled resources used in total resources used Products 37.87 35.00 38.45 •Increase the size of contribution to more than 12%. In fiscal 2012, we achieved million tons million tons million tons in reducing CO2 emissions to 120 Contribution to million tons 14.7%, surpassing this goal. reducing CO2 35.05 32.00 34.85 Underframe Energy saving •Make net CO2 emissions peak and In addition, in spring of 2012 we launched a emissions million tons million tons million tons 2.82 3.00 3.60 decline thereafter (Emissions from *5 *6 Energy creation series of Resources Recycling-oriented million tons million tons million tons production activities and product use) % % Be industry Products of refrigerators, washing machines, 17 20 2.50 2.00 2.55 Production activities No. 1 as a vacuum cleaners and rice cookers that use million tons million tons million tons whole Total recycled resources materials recycled from collected products. 14.7% >12% in FY2013 >16% Contribution to used/Total resources used Through efforts such as using insulation materials recycling resources Body Body Waste recycling rate 98.9% 98.5% ≥99% ≥99.5% made from recycled glass wool harvested from Size of Energy Systems Business¥ 519.3 billion ¥ 850 billion in FY2013 ¥ 3 trillion or more CRT televisions and employing plastics from Definitions of recycles plastic *3 Ratio of recycled material used in glass wool for vacuum Percentage of sales for No. 1 eco-conscious productsApprox. 13% 30% in FY2019 (Double FY2010 level) products recycled in recycling factories, we insulation material. are working to expand such Resources *4 Ratio of recycled plastic (containing at least 80% recycled *1 Affected by restructuring of the TV business that has major influence on CO2 reduction per unit, the FY2013 target in CO2 reduction contribution materials) within the plastic components used in the product. has been revised. Recycling-oriented Products throughout the world, *5 Ratio of recycled plastic (containing at least 65% recycled materials) *2 Size of contribution in reducing CO2 emissions is defined as the amount achieved by deducting the actual emissions from the amount that would have thereby contributing to the development of a within the plastic components used in the product’s body. been emitted without improvements such as the energy-saving performance of our products and productivity from fiscal 2006. In other words, it reflects *6 Ratio of recycled plastic (containing at least 89% recycled materials) the continuous efforts being made to reduce CO2 emissions. (For details please refer to page 11 of the Company’s ‘eco ideas’ Report 2012). sustainable society. within the plastic components used in the product’s body. Panasonic Annual Report 2012 Search Contents Returnpage 42 Next

Corporate Governance Structure Policy on Control of Panasonic Corporation Directors, Corporate Auditors and Executive Officers Corporate Governance Structure (Prepared based on excerpts from the Company’s Form 20-F filed in June 2012.)

Directors and Senior Management any outside directors on its board of at the same time be Directors, accounting to below, to respectively prepare his or her The Articles of Incorporation of the Company directors. However, Panasonic has two counselors, executive officers, managers or audit report. Each Corporate Auditor also provide that the number of Directors of the (2) outside Directors. An “outside director” any other capacity as employees of the has the statutory duty to supervise Directors’ Company shall be three or more and that is defined as a director of the company Company or any of its subsidiaries. execution of their duties. The Corporate of Corporate Auditors shall be three or who does not engage or has not engaged Under the Company Law, at least half of Auditors are required to attend meetings of more. Directors and Corporate Auditors in the execution of business of the company the Corporate Auditors shall be outside the Board of Directors and express opinions, shall be elected at the general meeting of or its subsidiaries as a director of any of corporate auditors. An “outside corporate if necessary, at such meetings, but they are shareholders. these corporations, and who does not auditor” is defined as a corporate auditor of not entitled to vote. In addition, Corporate serve or has not served as an executive the company who has never been a director, Auditors receive monthly reports regarding The Board of Directors has ultimate officer, manager or in any other capacity accounting counselor, executive officer, the status of the internal control system, responsibility for administration of the as an employee of the company or its manager or in any other capacity as an the audit results, etc. from the Internal Audit Company’s affairs and monitoring of the subsidiaries. Outside Directors directly or employee of the company or any of its Group or from other sections. Corporate execution of business by Directors. indirectly cooperate with the internal subsidiaries. Outside Corporate Auditors Auditors may request the Internal Audit Directors may, by resolution of the Board audit, audit by Corporate Auditors and directly or indirectly cooperate with the Group or the Accounting Auditor to conduct of Directors, appoint a Chairman of the external audit, receive reports from the internal audit, audit by Corporate Auditors an investigation, if necessary. The terms of Board of Directors, a Vice Chairman of Internal Auditing Group and conduct an and accounting audit, receive reports from office shall expire at the conclusion of the the Board of Directors, a President and effective monitoring through reports on the Internal Auditing Group and conduct an ordinary general meeting of shareholders Director, and one or more Executive Vice financial results at meetings of the Board effective monitoring through reports on with respect to the last business year ending Presidents and Directors, Senior Managing of Directors and through reviews of the financial results at meetings of the Board of within four years from their election. However, Directors and Managing Directors. The basic policy regarding the development Directors, through reviews of the basic policy they may serve any number of consecutive Chairman of the Board of Directors, Vice of internal control systems and other regarding the development of internal control terms if re-elected. Chairman of the Board of Directors, methods. The term of office of Directors systems and through exchanges of opinions President and Director, Executive Vice shall, under the Articles of Incorporation and information at meetings of the Board of Corporate Auditors constitute the Board of Presidents and Directors, and Senior of the Company, expire at the conclusion of Corporate Auditors and other methods. Corporate Auditors. The Board of Corporate Managing Directors are Representative the ordinary general meeting of shareholders Each Corporate Auditor has the statutory Auditors has a statutory duty to, based on Directors and severally represent the with respect to the last business year ending duty to audit the non-consolidated and the reports prepared by respective Corporate Company. A Japanese joint stock corporation within one year from their election. consolidated financial statements and Auditors, prepare and submit its audit report with corporate auditors, such as Panasonic, business reports to be submitted by a to Accounting Auditors and certain Directors is not obliged under the Company Law of Corporate Auditors of the Company are not Director to the general meeting of designated to receive such report (if such Japan and related laws and ordinances required to be, and are not, certified public shareholders and, based on such audit and Directors are not designated, the Directors (collectively, the “Company Law”), to have accountants. Corporate Auditors may not a report of an Accounting Auditor referred who prepared the financial statements and Panasonic Annual Report 2012 Search Contents Returnpage 43 Next

Corporate Governance Structure Policy on Control of Panasonic Corporation Directors, Corporate Auditors and Executive Officers

the business report). A Corporate Auditor auditors satisfy the requirements for the with U.S. generally accepted accounting Corporate Auditor system, all tailored to the may note his or her opinion in the audit “independent director/corporate auditor” principles (U.S. GAAP) and financial Group’s new business domain-based, report if his or her opinion expressed in his under the regulations of the Japanese information on a non-consolidated (a parent autonomous management structure. or her audit report is different from the stock exchanges, respectively. The definition company alone) basis is in conformity with * Panasonic’s Executive Officer (“Yakuin”) system is a opinion expressed in the audit report of of the “independent director/corporate Japanese regulations. non-statutory system and different from the corporate executive officer (“Shikkoyaku”) system that Japanese the Board of Corporate Auditors. The auditor” is different from that of the corporations with board of directors and an accounting Board of Corporate Auditors shall elect independent directors under the corporate Under the Company Law and the Articles of auditor may adopt at their option under the statutory corporate governance system referred to as “joint one or more full-time Corporate Auditors governance standard of the New York Stock Incorporation of the Company, the Company stock corporation with specified committees” system from among its members. The Board of Exchange or under Rule 10A-3 under the may, by a resolution of the Board of Directors, stipulated in the Company Law. Corporate Auditors is empowered to U.S. Securities Exchange Act of 1934. exempt Directors or Corporate Auditors, establish auditing policies, the manner of acting in good faith and without significant Panasonic’s Executive Officer system was investigation of the status of the corporate In addition to Corporate Auditors, an negligence, from their liabilities owed to the introduced to address the diversity of affairs and assets of the Company, and any independent certified public accountant Company arising in connection with their business operations over the entire Group other matters relating to the execution of or an independent audit corporation must failure to perform their duties to the extent through delegation of authority and to help the duties of Corporate Auditors. However, be appointed by general meetings of permitted by the Company Law. In addition, integrate the comprehensive strengths of the Board of Corporate Auditors may not shareholders as Accounting Auditor of the the Company has entered into liability all Group companies in Japan and overseas. prevent each Corporate Auditor from Company. Such Accounting Auditor has limitation agreements with each of the The Board of Directors appoints Executive exercising his or her powers. the duties to audit the consolidated and outside Directors and outside Corporate Officers mainly from senior management non-consolidated financial statements Auditors, acting in good faith and without personnel of business domain companies Pursuant to amendments to the regulations proposed to be submitted by a Director at significant negligence, which limit the as well as from management personnel of the Japanese stock exchanges in fiscal general meetings of shareholders and to maximum amount of their liabilities owed to responsible for overseas subsidiaries and 2010, the Company is required to have one report their opinion thereon to certain the Company arising in connection with their certain senior corporate staff. The Executive or more “independent director(s)/corporate Corporate Auditors designated by the failure to perform their duties to the extent Officers assume responsibility as the auditor(s)” which terms are defined under Board of Corporate Auditors to receive permitted by the Company Law. Group’s executives regarding execution the relevant regulations of the Japanese such report (if such Corporate Auditors are of business. The Executive Officers may stock exchanges as “outside directors” or not designated, all Corporate Auditors) and The Company implemented in fiscal 2004 a be given such titles as Vice President “outside corporate auditors” (each of which certain Directors designated to receive reform of its corporate management and Executive Officer, Senior Managing terms is defined under the Company Law) such report (if such Directors are not governance structure by (1) reorganizing the Executive Officer, Managing Executive who are unlikely to have any conflict of designated, the Directors who prepared role of the Board of Directors, (2) introducing Officer and Executive Officer, depending on interests with shareholders of the Company. the financial statements). The consolidated Panasonic’s own Executive Officer system* the extent of responsibility and achievement All five (5) outside directors and corporate financial statement is prepared in conformity in its Group and (3) strengthening its of each individual. The terms of office of the Panasonic Annual Report 2012 Search Contents Returnpage 44 Next

Corporate Governance Structure Policy on Control of Panasonic Corporation Directors, Corporate Auditors and Executive Officers

Executive Officers shall expire at the Meanwhile, the non-statutory full-time senior “remunerations”), paid by the Company subject to the approval of shareholders if conclusion of the ordinary general meeting auditors were appointed to strengthen during fiscal 2012 to 21 Directors (other the articles of incorporation of the company of shareholders with respect to the last auditing functions at each business domain than Outside Directors) and 3 Corporate do not prescribe such items. The maximum business year of the Company ending company. In addition, the Company has Auditors (other than Outside Corporate total amounts of remunerations for Directors within one year from their election. Each of also launched the “Panasonic Group Auditors) for services in all capacities was and Corporate Auditors of the Company the Executive Officers has the authority to Auditor Meeting” chaired by the Senior 1,081 million yen and 69 million yen, are therefore determined by a resolution at operate businesses for which such Executive Corporate Auditors of the Company in respectively. The amount of remunerations a general meeting of shareholders, because Officer is responsible, under the supervision order to promote collaboration among the for 2 Outside Directors and 3 Outside the Articles of Incorporation of the Company of the Board of Directors and in accordance Company’s Corporate Auditors, the Corporate Auditors was 28 million yen and do not provide such items, and thus with the Board of Directors’ decisions on non-statutory full-time senior auditors of 42 million yen, respectively, in fiscal 2012. remuneration of Directors and Corporate the management of corporate affairs. the business domain companies and the Auditors of the Company is under the corporate auditors of the Company’s The amount of remunerations for Mr. Kunio oversight of shareholders. The remuneration The Board of Directors has, at the same subsidiaries and affiliates. Moreover, as a Nakamura, Executive Adviser, and Mr. Fumio amount for each Director is determined time, been reformed in order to concentrate part of their audit duties, Corporate Auditors Ohtsubo, Chairman of the Board of Director, by the Company’s Representative on establishing corporate strategies and maintain a close working relationship with was 133 million yen and 113 million yen, Directors who are delegated to do so by supervising the implementation thereof by the Internal Audit Group of the Company to respectively, in fiscal 2012. the Board of Directors, and the amount of the Executive Officers. The Company has ensure effective audits. Furthermore, in order remuneration for each Corporate Auditor limited the number of Directors to facilitate to enhance the effectiveness of audits Under the Company Law, the maximum is determined upon discussions amongst more effective decision-making, and conducted by Corporate Auditors and amounts of remuneration of directors and the Corporate Auditors. shortened their term of office to one year ensure the smooth implementation of corporate auditors of Japanese joint stock in order to clarify their responsibilities. audits, the Company has established a corporations, except for a “joint stock The amounts of the remuneration and Taking into consideration the diversified Corporate Auditor’s Office with full-time corporation with specified committees,” bonuses of Directors are linked to individual scope of the Company’s business staff under the direct control of the Board must be approved at a general meeting of performance based on Capital Cost

operations, the Company has chosen to of Corporate Auditors. shareholders if the articles of incorporation Management (CCM), sales and CO2 continue its policy of having management of the company do not provide items emissions (an environmental management personnel, who are well-versed in Compensation about remuneration of directors and indicator). By implementing this new day-to-day operations at operational fronts, The aggregate amount of remuneration, corporate auditors. Companies must also performance evaluation criteria based on be members of the Board of Directors, while including equity compensation such as obtain the approval at a general meeting shareholder interests, the Company intends outside Directors continue to fully participate stock options, bonuses, and other financial of shareholders to change such maximum to promote continuous growth and enhance in Board meetings. benefits given in consideration of amounts. Therefore, the remuneration of profitability on a long-term basis for the performance of duties (collectively, the the directors and corporate auditors are Panasonic Group as a whole. Panasonic Annual Report 2012 Search Contents Returnpage 45 Next

Corporate Governance Structure Policy on Control of Panasonic Corporation Directors, Corporate Auditors and Executive Officers Policy on Control of Panasonic Corporation

Basic Policy Measures to Realize Basic Policy a group filled with strong growth potential. and business plans which the Large-scale Since the Company’s establishment in 1918, 1) Specific Measures to Realize Basic In completing the conversion of Panasonic Purchaser intends to adopt after the Panasonic has operated its businesses Policy Electric Works Co., Ltd. (PEW) and SANYO completion of the Large-scale Purchase, to under its basic management philosophy, In engaging in activities that help enrich Electric Co., Ltd. (SANYO) to wholly-owned the Board of Directors before a Large-scale which sets forth that the mission as a people’s lives, Panasonic aims to become subsidiaries in April 2011, and putting in place Purchase is to be conducted and (2) after business enterprise is to contribute to the a company that is capable of taking the lead a new structure through Group-wide all required information is provided, the progress and development of society and in solving global environment issues, the business reorganization, Panasonic will Board of Directors should be allowed a the well-being of people through its world’s common challenge. Leading up to its accelerate these initiatives under the plan. sufficient period of time (a sixty-day period or business activities, thereby offering better 100th anniversary in 2018, Panasonic has a ninety-day period) for consideration. The quality of life throughout the world. To set a vision of becoming the No.1 Green 2) Measures Based on the Basic Policy to Board of Directors intends to assess and become a global excellent company that Innovation Company in the Electronics Prevent Control by Inappropriate Parties examine any proposed Large-scale Purchase contributes to the resolution of global Industry. In this context, Panasonic has On April 28, 2005, the Board of Directors after the information on such purchase is environment issues, Panasonic will work to positioned its three-year midterm resolved to adopt a policy related to a provided, and subsequently to disclose sustainably grow its corporate value to management plan, Green Transformation Large-scale Purchase of the Company’s the opinion of the Board of Directors and satisfy its shareholders, investors, customers, 2012 (GT12), as a first step along this shares called the Enhancement of any other information needed to assist business partners, employees and all path. Under the guidance of this plan, the Shareholder Value (ESV) Plan. The ESV Plan shareholders in making their decisions. The other stakeholders. Company will closely integrate its has been approved at every Board of Board of Directors may negotiate with the Panasonic has a basic policy that environment contribution with business Directors meeting held in April since then. Large-scale Purchaser regarding purchase shareholders should make final decisions in growth as highlighted by the two central On April 28, 2011, the Board of Directors conditions or suggest alternative plans to the event of a Large-scale Purchase of the themes of the plan: “Paradigm shift for resolved to continue the ESV Plan. The shareholders, if it is deemed necessary. Company’s shares, regarding whether or growth” and “Laying a foundation to be a Board of Directors’ meeting to be held in If a Large-scale Purchaser does not not the Large-scale Purchase should be green innovation company.” From a paradigm May 2012 decided on whether to continue comply with the rules laid out in the ESV Plan, accepted. However, there is a possibility shift to growth perspective, Panasonic is the ESV Plan again. the Company’s Board of Directors may take that such Large-scale Purchaser may not working diligently to shift its activities from With respect to a Large-scale Purchaser countermeasures against the Large-scale provide shareholders to make appropriate (1) existing businesses to new businesses— who intends to acquire 20% or more of all Purchaser to protect the interests of all decisions. There is also concern that any such as energy; (2) Japan-oriented to voting rights of the Company, this policy shareholders. Countermeasures include Large-scale Purchase may damage globally-oriented, and (3) individual requires that (1) a Large-scale Purchaser the implementation of share splits, issuance corporate value and shareholder interest. product-oriented to solutions & systems provide sufficient information, such as its of stock acquisition rights (including allotment In this event, the Company may take business-oriented. The Company will adopt outline, purposes and conditions, the basis of share options without contribution) or any countermeasures in order to protect the bold and unconventional measures over the for determination of the purchase price and other measures that the Board of Directors interests of all shareholders. three years of the plan in its efforts to become funds for purchase, and management policies is permitted to take under the Company Panasonic Annual Report 2012 Search Contents Returnpage 46 Next

Corporate Governance Structure Policy on Control of Panasonic Corporation Directors, Corporate Auditors and Executive Officers

Law of Japan, other laws and the a certain record date, the maximum ratio of Board of Directors determines to take a formulated from the perspective of protecting Company’s Articles of Incorporation. If a the stock split shall be five-for-one. If the specific countermeasure, the Board of shareholder value, and is aimed at ensuring Large-scale Purchaser complies with the Board of Directors elects to issue stock Directors will disclose such countermeasure shareholders receive sufficient information Large-scale Purchase rules, the Board of acquisition rights to shareholders, the in a timely and appropriate manner, pursuant to make decisions on share purchase Directors does not intend to prevent the Company will issue one stock acquisition to relevant laws and financial instrument proposals by allowing those responsible for Large-scale Purchase at its own discretion, right for every share held by shareholders exchange regulations. the management of the Company, the Board unless it is clear that such Large-scale on a specified record date. One share shall The term of office for all Directors is one of Directors, to provide their evaluation of Purchase will cause irreparable damage or be issued on the exercise of each stock year, and Directors are elected at the Ordinary any proposed Large-scale Purchase, and loss to the Company. acquisition right. If the Board of Directors General Meeting of Shareholders held in June providing the opportunity for alternative The Board of Directors will make elects to issue stock acquisition rights as a every year. The Company’s Board of Directors proposals to be submitted. decisions relating to countermeasures countermeasure, it may determine the intends to review the Large-scale Purchase Consequently, these measures, in by referring to advice from outside exercise period and exercise conditions of Rules, as necessary, for reasons including accordance with Basic Policy (p.45), are professionals, such as lawyers and financial the stock acquisition rights, as well as the amendments to applicable legislation. Any intended to protect the interests of all the advisers, and fully respect the opinions conditions that allow the Company to acquire such review would be conducted in the Company’s shareholders. of Outside Directors and statutory share options by swapping Company stock interests of all shareholders. corporate auditors. with a party other than the Large-scale When invoking the aforementioned Purchaser, in consideration of the The Company’s Board of Directors countermeasures, if the Company’s Board effectiveness thereof as a countermeasure, resolved to continue the ESV Plan at a of Directors decides that it is appropriate to such as the condition that shareholders do meeting held on May 11, 2012. confirm the will of shareholders from the not belong to a specific group of shareholders Please refer to the Company’s homepage perspective of the interest of all shareholders, including a Large-scale Purchaser. (URL http://panasonic.co.jp/corp/news/ a general meeting of shareholders will be The Company recognizes that the official.data/data.dir/en120511-5/en120511- held. If the Company’s Board of Directors aforementioned countermeasures may cause 5.pdf) for details. decides to hold a general meeting of damage or loss, economic or otherwise, to a shareholders, it will give notice to that effect prospective Large-scale Purchaser who does Evaluation of Measures by the Board as well as the reasons for such a meeting not comply with the Large-scale Purchase of Directors and Rationale for at that time. Rules. The Company does not anticipate Evaluation The Board of Directors will adopt specific that taking such countermeasures will cause Panasonic’s mid-term management plan countermeasures which it deems appropriate shareholders, other than the Large-scale was formulated as a specific measure to at that time. If the Board of Directors elects Purchaser, economic damage or loss of increase the Company’s corporate value in to make a stock split for shareholders as of any rights. However, in the event that the a sustained manner. The ESV Plan was Panasonic Annual Report 2012 Search Contents Returnpage 47 Next

Corporate Governance Structure Policy on Control of Panasonic Corporation Directors, Corporate Auditors and Executive Officers Directors, Corporate Auditors and Executive Officers (As of June 27, 2012)

Directors Corporate Auditors

Chairman of the Board Senior Managing Directors Managing Directors Senior Corporate Auditors Fumio Ohtsubo Ikusaburo Kashima Takashi Toyama Seiichiro Sano In charge of Legal Affairs, Intellectual Property, In charge of Planning and Information Systems Yoshihiro Furuta Corporate Risk Management, Hideaki Kawai Chairman, Panasonic Group Auditors Meeting Vice Chairman of the Board Corporate Information Security and Corporate Business Ethics In charge of Accounting and Finance Masayuki Matsushita Yoshihiko Yamada Yoshiyuki Miyabe Corporate Auditors In charge of Industrial Devices Business In charge of Technology Yasuo Yoshino President Yoshiiku Miyata Yoshiaki Nakagawa (Outside Corporate Auditor) Director, Global Consumer Marketing Sector / In charge of Human Resources, General Affairs and Ikuo Hata Kazuhiro Tsuga Facility Management In charge of Design (Outside Corporate Auditor) Kazunori Takami Mamoru Yoshida Hiroyuki Takahashi President, AVC Networks Company Executive Vice Presidents President, Appliances Company (Outside Corporate Auditor) Yasuo Katsura Representative in Tokyo Directors Shusaku Nagae Ikuo Uno In charge of Solution Business / (Outside Director) President, Eco Solutions Company / Masayuki Oku In charge of Corporate Division for (Outside Director) Promoting Energy Solution Business Panasonic Annual Report 2012 Search Contents Returnpage 48 Next

Corporate Governance Structure Policy on Control of Panasonic Corporation Directors, Corporate Auditors and Executive Officers

Executive Officers

Senior Managing Executive Officer Managing Executive Officers Executive Officers Takumi Kajisha Yutaka Takehana Joseph Taylor Masato Ito In charge of Corporate Communications Director, Corporate Division for Government & Public Affairs Regional Head for North America / President, Energy Company / Makoto Uenoyama Chairman & CEO, Panasonic Corporation of North America President, SANYO Electric Co., Ltd. Senior Vice President, Eco Solutions Company / Toshiro Kisaka Yasutomo Fukui In charge of Administration, Eco Solutions Company In charge of Groupwide Cost Busters Project / In charge of Information Systems Director, Corporate Procurement Division Toshiaki Kobayashi and Corporate Global Logistics Division Katsuhiko Fujiwara President, Industrial Devices Company Senior Vice President, Appliances Company / Masato Tomita Director, Air Conditioning and Cold Chain Business Group, Masatoshi Harada Vice President, Eco Solutions Company / Appliances Company Representative in Kansai In charge of Overseas Operations, Eco Solutions Company Masahisa Shibata Yoshihisa Fukushima Takeshi Uenoyama President, Automotive Systems Company In charge of Intellectual Property In charge of Device Technology Toshiyuki Takagi Laurent Abadie Shiro Nishiguchi President, Systems & Communications Company / Regional Head for Europe & CIS / Director, AVC Marketing Division, Global Consumer President, Panasonic System Networks Co., Ltd. Chairman & CEO, Panasonic Europe Ltd. / Marketing Sector Managing Director, Panasonic Marketing Europe GmbH Shiro Kitajima Yoshiro Takemoto President, Panasonic Consumer Marketing Company of Yorihisa Shiokawa President, Manufacturing Solutions Company / North America, Panasonic Corporation of North America Regional Head for Asia, the Middle East & Africa / President, Panasonic Factory Solutions Co., Ltd. Managing Director, Panasonic Asia Pacific Pte. Ltd. Machiko Miyai Kenji Yamane Director, Corporate Environmental Affairs Division Jun Ishii President, Healthcare Company / and Corporate Electricity Saving Division In charge of Japan Region, President, Panasonic Healthcare Co., Ltd. Global Consumer Marketing Sector / Masahiro Ido President, Panasonic Consumer Marketing Co., Ltd. Yoshio Ito Vice President, Eco Solutions Company / Senior Vice President, AVC Networks Company / In charge of Planning, Eco Solutions Company Tsuyoshi Nomura Director, Display Devices Business Group, In charge of Manufacturing Innovation, AVC Networks Company Satoshi Takeyasu Quality Administration, Vice President, Eco Solutions Company / FF Customer Support & Management, Hidetoshi Osawa Director, Comprehensive Solutions Division, Environmental Affairs, Procurement and Logistics Regional Head for China & Northeast Asia / Eco Solutions Company Chairman, Panasonic Corporation of China Takeo Endo Yukio Nakashima Managing Director, Panasonic Consumer Marketing China, Director, Appliances Marketing Division, Panasonic Corporation of China Global Consumer Marketing Sector Kuniaki Matsukage Vice President, Eco Solutions Company / Director, Lighting Business Group, Eco Solutions Company Panasonic Annual Report 2012 Search Contents Returnpage 49 Next

Financial and Corporate Data

50 Financial Review

50 Consolidated Sales and Earnings Results 52 Financial Position and Liquidity

53 Consolidated Financial Statements

53 Consolidated Balance Sheets 54 Consolidated Statements of Operations 55 Consolidated Statements of Equity 56 Consolidated Statements of Cash Flows

57 Stock Information

58 Company Information

59 Quarterly Financial Results and Investor Relations Offices

Note: Panasonic’s financial review and consolidated financial statements are presented in accordance with the Company’s annual report on Form 20-F.

Access to Web Form 20-F Panasonic Annual Report 2012 Search Contents Returnpage 50 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices Financial Review (Please refer to the Company’s Form 20-F for further details.)

Consolidated Sales and increases in products, such as air advantages of the Panasonic Group in order deductions, the Company incurred 399 billion Earnings Results conditioners and refrigerators that meet to establish the foundations for it to become yen as expenses associated with impairment local needs in India and Brazil, and “HIT” a Green Innovation Company. In order to losses of fixed assets, which were mainly Sales brand solar cells by maximizing Panasonic realize this objective, the Company related to AVC Networks, 184 billion yen Consolidated group sales for fiscal 2012 Group sales channels in Japan. established its new business structure, which as restructuring charges, and 17 billion yen amounted to 7,846 billion yen, down 10% enables it to strengthen a more direct as a write-down of investment securities. from 8,693 billion yen in the previous On the other hand, operating results in the relationship with consumers globally, fiscal year. flat-panel TV and semiconductor businesses promote comprehensive solutions, and Income (Loss) before Income Taxes worsened significantly due to factors, such maximize synergies in each business as As a result of the above-mentioned In fiscal 2012, business conditions as the aforementioned severe business well as eliminating its overlapping businesses. factors, income (loss) before income deteriorated in Japan and overseas due to conditions, intense price competition and a taxes for fiscal 2012 amounted to a loss multiple factors, such as concern surrounding decline in demand following the shift to Cost of Sales and Selling, General of 813 billion yen, compared with an shortages in the electric supply caused by digital broadcasting in Japan. Following the and Administrative Expenses income of 179 billion yen in fiscal 2011, the Great East Japan Earthquake, the management decision to address the In fiscal 2012, cost of sales amounted to due mainly to incurring business disruptions in supply chains affected by the negative factors impacting on the future 5,865 billion yen, down 525 billion yen restructuring expenses such as early flooding in Thailand, the economic turmoil profitability, the Company implemented from the previous year, and selling, general retirement charges and impairment triggered by the European financial crisis, radical restructuring initiatives, including the and administrative expenses amounted to losses of goodwill and property, plant and the historically high yen. consolidation of manufacturing sites of those 1,938 billion yen, down 60 billion yen from and equipment. unprofitable businesses. the previous year. These results are due Under such business circumstances, as mainly to the effects of sales decreases. Provision for Income Taxes the second year of the three-year midterm In January 2012, the Company conducted Provision for income taxes for fiscal 2012 management plan called “Green the group reorganization as scheduled and Interest Income, Dividends decreased to 10 billion yen, compared with Transformation 2012 (GT12),” Panasonic started a new organization, which consists Received and Other Income 103 billion yen in the previous year. implemented various measures. In particular, of nine business domain companies: “AVC In fiscal 2012, interest income increased by the Company worked towards changing its Networks Company,” “Appliances 2 billion yen to 13 billion yen, and dividends Equity in Earnings of Associated business structure on the basis of paradigm Company,” “Systems & Communications received decreased by 0.2 billion yen to 6 Companies shift to growth as follows: Company,” “Eco Solutions Company,” billion yen and other income decreased by In fiscal 2012, equity in earnings of 1) from existing businesses to new “Automotive Systems Company,” “Industrial 15 billion yen to 44 billion yen. associated companies decreased to businesses such as energy Devices Company,” “Energy Company,” gains of 6 billion yen from the previous 2) from Japan-oriented to globally-oriented “Healthcare Company,” “Manufacturing Interest Expense, Goodwill year’s gains of 10 billion yen. 3) from individual product-oriented to Solutions Company,” and one marketing Impairment and Other Deductions solutions and systems business-oriented sector: “Global Consumer Marketing Sector.” Interest expense increased by 0.9 billion yen Net Income (Loss) to 28 billion yen. Goodwill impairment was Net income (loss) amounted to a loss of 816 The positive results have started showing in With this reorganization, the Company has 164 billion yen, which was primarily related billion yen for fiscal 2012, compared with an some regions and businesses with sales laid out the framework to utilize the full to Industrial Devices and Energy. In other income of 86 billion yen in fiscal 2011. Panasonic Annual Report 2012 Search Contents Returnpage 51 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices

Net Income (Loss) Attributable to Sales of Appliances increased by 3% to 7% to 653 billion yen, compared with 612 fiscal 2011 led to the overall sales decrease. Noncontrolling Interests 1,534 billion yen, compared with 1,483 billion yen in the previous year, due mainly to With respect to this segment, segment Net income (loss) attributable to billion yen in the previous year, due mainly strong sales in components and devices for profit worsened by 61% to 24 billion yen from noncontrolling interests amounted to a loss of to steady sales of washing machines and eco-cars including batteries for hybrid cars. 61 billion yen due mainly to a sales decrease.

44 billion yen for fiscal 2012, compared with microwave ovens. With respect to this segment, segment Download DATA BOOK an income of 12 billion yen in fiscal 2011. With respect to this segment, segment profit decreased by 78% to 5 billion yen from (Segment Information) profit decreased by 3% to 81 billion yen 23 billion yen, due mainly to insufficient Net Income (Loss) Attributable to from 84 billion yen, due mainly to rising cost reduction. Sales Results by Region Panasonic Corporation prices for raw materials. Sales in the domestic market amounted to As a result of all the factors stated in the Sales of Industrial Devices decreased by 4,162 billion yen, down 8% from 4,514 billion preceding paragraphs, the Company Sales of Systems & Communications 16 % to 1,405 billion yen, from the previous yen in fiscal 2011 when there was a surge recorded a net loss attributable to decreased by 10% to 841 billion yen, year’s 1,671 billion yen, due mainly to sales in demand as a result of the government’s Panasonic Corporation of 772 billion yen compared with 938 billion yen in the previous decreases in general electronic components ‘eco-point’ systems. for fiscal 2012, a deterioration of 846 year, due mainly to a sales decrease in small and semiconductors. billion yen from the previous year’s net multifunction printers, business-oriented With respect to this segment, segment Overseas sales amounted to 3,684 billion income attributable to Panasonic handheld computers and mobile phones. profit decreased to a loss of 17 billion yen, yen, down 12% from 4,179 billion yen in Corporation of 74 billion yen. With respect to this segment, segment compared with a profit of 70 billion yen a the previous fiscal year. This result was due profit decreased by 64% to 17 billion yen year ago due mainly to a sales decrease mainly to the weak global economy, extreme Results of Operations by Segment from 48 billion yen, due mainly to a sales and a price decline. yen appreciation and the flooding in Thailand. The Company restructured its Group decrease and a price decline. organization on January 1, 2012, resulting Sales of Energy decreased by 3% to 615 By region, sales in North and South America in the number of reportable segments Sales of Eco Solutions were 1,526 billion billion yen, compared with the previous amounted to 966 billion yen, down 10% from six to eight. Accordingly, segment yen, securing the same level of the sales year’s 637 billion yen. Although sales in from 1,071 billion yen in fiscal 2011. This information for fiscal 2011 has been amount of previous year of 1,527 billion yen. solar photovoltaic systems continued to was due mainly to appreciation of the yen. reclassified to conform to the presentation Despite sales decreases in lighting business, be strong mainly in Japan, overall sales for fiscal 2012. this result was due mainly to stable sales in decreased due mainly to a weak result in Sales in Europe amounted to 744 billion yen, energy system, housing system, which lithium-ion batteries. down 13% from the previous year’s 857 Sales of AVC Networks decreased by provides comprehensive home and building With respect to this segment, segment billion yen as a result of weak demand in 21% to 1,713 billion yen, compared with product and material solutions, and profit worsened to a loss of 21 billion yen, digital AV products. 2,157 billion yen in the previous year, due environmental system businesses. compared with a loss of 15 billion yen, due mainly to sales declines in flat-panel TVs With respect to this segment, segment mainly to a price decline. In the Asia and Others, sales decreased 12% and digital cameras. profit increased by 2% to 59 billion yen from to 1,974 billion yen, from the previous year’s With respect to this segment, segment 58 billion yen in the previous year, due mainly Sales of Other decreased 18% to 1,881 billion 2,251 billion yen. In Asia, this was due mainly profit decreased to a loss of 68 billion yen to a fixed cost reduction. yen from 2,305 billion yen a year ago. to weak demand in digital AV products.

from a profit of 27 billion yen, due mainly to The sales decline owing to the semiconductor Download DATA BOOK a sales decrease and sales price declines. Sales of Automotive Systems increased by business transfer implemented by SANYO in (Sales by Region) Panasonic Annual Report 2012 Search Contents Returnpage 52 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices

Financial Position and Liquidity down 27% from the previous fiscal year’s was due mainly to expenditures from the total of 404 billion yen, reflecting efforts tender offer for PEW and SANYO in fiscal The Company’s consolidated total assets to channel investment activities to specific 2011, despite an increase in bonds and as of March 31, 2012 decreased by 1,222 priority businesses. loans through the issuance of unsecured billion yen to 6,601 billion yen from the end straight bonds and others in fiscal 2011. of fiscal 2011. This was due mainly to a Principal capital investments were directed decrease in property, plant and equipment, mainly to solar cell and rechargeable battery Free cash flow in fiscal 2012 amounted to net of accumulated depreciation, intangible manufacturing facilities (Kasai City, Hyogo an outflow of 340 billion yen, compared assets, goodwill and other assets affected Prefecture, etc.) and facilities in Taiwan with an inflow of 266 billion yen in fiscal by impairment losses of goodwill and fixed that manufacture electronic components 2011, due primarily to a net loss of fiscal assets, in addition to a decrease in cash for highly functional terminals including 2012 and a decrease in proceeds from and cash equivalents. smartphones. disposals of property‚ plant and equipment.

Total liabilities were 4,623 billion yen due Depreciation (excluding intangibles) during to a decrease in account payables and fiscal 2012 amounted to 259 billion yen, other factors. down 9% compared with 284 billion yen in the previous fiscal year. Panasonic Corporation shareholders’ equity decreased by 629 billion yen compared Net cash used in operating activities in fiscal with the end of fiscal 2011 to 1,930 2012 amounted to 37 billion yen, compared billion yen as of March 31, 2012. This with 469 billion yen of net cash provided by was due mainly to net loss attributable to operating activities in the previous fiscal Panasonic Corporation. year. This result was attributable primarily to a net loss of fiscal 2012 and a decrease Noncontrolling interests decreased by 340 in trade payables. Net cash used in investing billion yen from the end of fiscal 2011 to 48 activities amounted to 303 billion yen, billion yen due mainly to the share exchanges compared with 203 billion yen in fiscal 2011. for making PEW and SANYO wholly This result was due mainly to a decrease in owned subsidiaries. proceeds from disposals of property, plant and equipment. Net cash used in financing Capital investment (excluding intangibles) activities was 53 billion yen, compared with during fiscal 2012 totaled 295 billion yen, 355 billion yen in fiscal 2011. This result Panasonic Annual Report 2012 Search Contents Returnpage 53 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices Consolidated Financial Statements Consolidated Balance Sheets Download DATA BOOK (Balance Sheets) March 31, 2011 and 2012 (Millions of yen) (Millions of yen) 2011 2012 2011 2012 Assets Liabilities and Equity Current assets: Current liabilities: Cash and cash equivalents ...... 974,826 574,411 Short-term debt, including current portion of long-term debt ...... 432,982 633,847 Time deposits...... 69,897 36,575 Trade payables: Short-term investments ...... — 483 Related companies...... 55,102 39,941 Trade receivables: Notes ...... 59,889 52,987 Related companies...... 17,202 14,834 Accounts...... 886,261 758,085 Notes ...... 78,821 72,952 Total trade payables...... 1,001,252 851,013 Accounts...... 984,938 948,460 Accrued income taxes ...... 42,415 32,553 Allowance for doubtful receivables ...... (21,860) (26,604) Accrued payroll ...... 192,279 204,842 Net trade receivables...... 1,059,101 1,009,642 Other accrued expenses ...... 747,205 749,495 Inventories...... 896,424 830,266 Deposits and advances from customers ...... 66,473 71,102 Other current assets ...... 489,601 454,663 Employees’ deposits...... 9,101 7,651 Total current assets...... 3,489,849 2,906,040 Other current liabilities ...... 355,343 329,001 Total current liabilities ...... 2,847,050 2,879,504

Noncurrent liabilities: Long-term debt ...... 1,162,287 941,768 Investments and advances: Retirement and severance benefits ...... 492,960 566,550 Associated companies...... 156,845 136,735 Other liabilities ...... 374,238 235,667 Other investments and advances...... 412,806 315,144 Total noncurrent liabilities ...... 2,029,485 1,743,985 Total investments and advances...... 569,651 451,879 Panasonic Corporation shareholders’ equity: Common stock: Authorized - 4,950,000,000 shares Issued - 2,453,053,497 shares ...... 258,740 258,740 Property, plant and equipment: Capital surplus ...... 1,100,181 1,117,530 Land...... 381,840 374,855 Legal reserve ...... 94,198 94,512 Buildings...... 1,771,178 1,679,665 Retained earnings ...... 2,401,909 1,441,177 Machinery and equipment...... 2,290,760 2,248,137 Accumulated other comprehensive income (loss): Construction in progress...... 96,489 90,786 Cumulative translation adjustments...... (453,158) (482,168) 4,540,267 4,393,443 Unrealized holding gains of available-for-sale securities ...... 16,835 13,283 Less accumulated depreciation...... 2,656,958 2,659,160 Unrealized gains (losses) of derivative instruments...... 2,277 (3,728) Net property, plant and equipment...... 1,883,309 1,734,283 Pension liability adjustments ...... (191,254) (262,542) Total accumulated other comprehensive loss ...... (625,300) (735,155) Treasury stock, at cost: 141,351,296 shares (382,760,101 shares in 2011) ...... (670,736) (247,018) Total Panasonic Corporation shareholders’ equity...... 2,558,992 1,929,786 Other assets: Goodwill ...... 924,752 757,417 Noncontrolling interests ...... 387,343 47,780 Intangible assets...... 542,787 345,751 Total equity...... 2,946,335 1,977,566 Other assets...... 412,522 405,685 Total other assets...... 1,880,061 1,508,853 Commitments and contingent liabilities 7,822,870 6,601,055 7,822,870 6,601,055 Panasonic Annual Report 2012 Search Contents Returnpage 54 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices

Consolidated Statements of Operations Download DATA BOOK (Statements of Operations) Years ended March 31, 2010, 2011 and 2012 (Millions of yen) 2010 2011 2012 Revenues, costs and expenses: Net sales: Related companies ...... 209,938 211,589 174,887 Other ...... 7,208,042 8,481,083 7,671,329 Total net sales ...... 7,417,980 8,692,672 7,846,216

Cost of sales ...... (5,341,059) (6,389,180) (5,864,515) Selling, general and administrative expenses ...... (1,886,468) (1,998,238) (1,937,976) Interest income ...... 12,348 11,593 13,388 Dividends received ...... 6,746 6,323 6,129 Other income ...... 47,896 59,050 44,124 Interest expense ...... (25,718) (27,524) (28,404) Impairment losses of long-lived assets...... (79,259) (34,692) (399,259) Goodwill impairment...... (3,745) — (163,902) Other deductions...... (178,036) (141,197) (328,645) Income (loss) before income taxes ...... (29,315) 178,807 (812,844)

Provision for income taxes: Current ...... 58,147 88,910 69,206 Deferred ...... 83,686 14,100 (59,439) 141,833 103,010 9,767

Equity in earnings of associated companies ...... 481 9,800 6,467 Net income (loss) ...... (170,667) 85,597 (816,144)

Less net income (loss) attributable to noncontrolling interests ...... (67,202) 11,580 (43,972) Net income (loss) attributable to Panasonic Corporation ...... (103,465) 74,017 (772,172)

(Yen) 2010 2011 2012 Net income (loss) per share attributable to Panasonic Corporation common shareholders: Basic...... (49.97) 35.75 (333.96) Diluted...... — — — Panasonic Annual Report 2012 Search Contents Returnpage 55 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices

Consolidated Statements of Equity Download DATA BOOK (Statements of Equity) Years ended March 31, 2010, 2011 and 2012 (Millions of yen) (Millions of yen) 2010 2011 2012 2010 2011 2012 Common stock: Treasury stock: Balance at beginning of year...... 258,740 258,740 258,740 Balance at beginning of year...... (670,289) (670,330) (670,736) Balance at end of year...... 258,740 258,740 258,740 Repurchase of common stock...... (72) (432) (436) Sale of treasury stock ...... 31 26 424,154 Capital surplus: Balance at end of year...... (670,330) (670,736) (247,018) Balance at beginning of year...... 1,217,764 1,209,516 1,100,181 Sale of treasury stock ...... (8) (9) (1,752) Noncontrolling interests: Equity transactions with noncontrolling interests and others... (8,240) (109,326) 19,101 Balance at beginning of year...... 428,601 887,285 387,343 Balance at end of year...... 1,209,516 1,100,181 1,117,530 Cash dividends paid to noncontrolling interests...... (14,619) (12,583) (11,642) Acquisition transaction...... 532,360 — — Legal reserve: Equity transactions with noncontrolling interests and others ... (2,402) (474,758) (283,711) Balance at beginning of year...... 92,726 93,307 94,198 Net income (loss) attributable to noncontrolling interests ...... (67,202) 11,580 (43,972) Transfer from retained earnings...... 581 891 314 Other comprehensive income (loss), net of tax: Balance at end of year...... 93,307 94,198 94,512 Translation adjustments ...... 1,238 (21,764) 1,059 Unrealized holding gains (losses) of Retained earnings: available-for-sale securities ...... 2,378 (1,633) (151) Balance at beginning of year...... 2,479,416 2,349,487 2,401,909 Unrealized gains (losses) of derivative instruments...... 68 (26) — Sale of treasury stock ...... — — (166,334) Pension liability adjustments...... 6,863 (758) (1,146) Net income (loss) attributable to Panasonic Corporation...... (103,465) 74,017 (772,172) Balance at end of year...... 887,285 387,343 47,780 Cash dividends to Panasonic Corporation shareholders...... (25,883) (20,704) (21,912) Transfer to legal reserve ...... (581) (891) (314) Disclosure of comprehensive income (loss): Balance at end of year...... 2,349,487 2,401,909 1,441,177 Net income (loss)...... (170,667) 85,597 (816,144) Other comprehensive income (loss), net of tax: Accumulated other comprehensive income (loss): Translation adjustments ...... (9,819) (107,779) (19,887) Balance at beginning of year...... (594,377) (448,232) (625,300) Unrealized holding gains (losses) of Equity transactions with noncontrolling interests and others... — (5,885) (838) available-for-sale securities ...... 53,641 (24,422) (3,476) Other comprehensive income (loss), net of tax ...... 146,145 (171,183) (109,017) Unrealized gains (losses) of derivative instruments...... 6,229 962 (6,018) Balance at end of year...... (448,232) (625,300) (735,155) Pension liability adjustments...... 106,641 (64,125) (79,874) Comprehensive loss ...... (13,975) (109,767) (925,399) Comprehensive loss attributable to noncontrolling interests ... (56,655) (12,601) (44,210) Comprehensive income (loss) attributable to Panasonic Corporation ...... 42,680 (97,166) (881,189) Panasonic Annual Report 2012 Search Contents Returnpage 56 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices

Consolidated Statements of Cash Flows Download DATA BOOK (Statements of Cash Flows) Years ended March 31, 2010, 2011 and 2012 (Millions of yen) (Millions of yen) 2010 2011 2012 2010 2011 2012 Cash flows from operating activities: Cash flows from financing activities: Net income (loss)...... (170,667) 85,597 (816,144) Increase (decrease) in short-term debt, net...... (3,360) (34,034) 362,128 Adjustments to reconcile net income (loss) to net cash Proceeds from long-term debt ...... 53,172 505,123 828 provided by operating activities: Repayments of long-term debt...... (54,780) (201,906) (370,052) Depreciation and amortization ...... 298,270 367,263 338,112 Dividends paid to Panasonic Corporation shareholders...... (25,883) (20,704) (21,912) Net gain on sale of investments...... (5,137) (11,318) (5,822) Dividends paid to noncontrolling interests...... (14,619) (12,583) (11,642) Provision for doubtful receivables...... 10,862 4,392 12,162 Repurchase of common stock ...... (72) (432) (436) Deferred income taxes...... 83,686 14,100 (59,439) Sale of treasury stock ...... 23 17 73 Write-down of investment securities...... 6,944 27,539 16,636 Purchase of noncontrolling interests...... (11,095) (589,910) (10,640) Impairment losses on long-lived assets and goodwill...... 83,004 34,692 563,161 Other, net ...... (359) (198) (1,441) Cash effects of changes in, excluding acquisition: Trade receivables...... (119,966) 83,333 24,228 Net cash used in financing activities...... (56,973) (354,627) (53,094) Inventories...... 100,576 (54,659) 38,117 Other current assets ...... 24,151 (181) 17,130 Effect of exchange rate changes on cash and cash equivalents.... (5,656) (46,709) (7,428) Trade payables ...... 83,719 (12,826) (103,788) Accrued income taxes ...... 6,706 13,038 (7,473) Net increase (decrease) in cash and cash equivalents...... 136,045 (135,086) (400,415) Accrued expenses and other current liabilities...... 102,743 (24,374) (9,089) Retirement and severance benefits...... (8,655) (38,400) (29,374) Cash and cash equivalents at beginning of year...... 973,867 1,109,912 974,826 Deposits and advances from customers ...... (7,368) 607 (14,547) Other, net ...... 33,465 (19,608) (761) Cash and cash equivalents at end of year...... 1,109,912 974,826 574,411

Net cash provided by (used in) operating activities ...... 522,333 469,195 (36,891)

Cash flows from investing activities: Proceeds from sale of short-term investments...... 6,442 — — Purchase of short-term investments...... (6,369) — — Proceeds from disposition of investments and advances...... 61,302 87,229 104,542 Increase in investments and advances ...... (8,855) (8,873) (6,945) Capital expenditures ...... (375,648) (420,921) (456,468) Proceeds from disposals of property, plant and equipment.... 117,857 152,663 53,333 Decrease in time deposits, net ...... 99,274 19,005 30,952 Purchase of shares of newly consolidated subsidiaries, net of acquired companies’ cash and cash equivalents ...... (174,808) — — Other, net ...... (42,854) (32,048) (28,416)

Net cash used in investing activities ...... (323,659) (202,945) (303,002) Panasonic Annual Report 2012 Search Contents Returnpage 57 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices Stock Information (As of March 31, 2012)

Share Data Major Shareholders Share ownership Percentage of Number of Shares Issued Transfer Agent for Common Stock Name (in thousands of shares) total issued shares (%) 2,453,053,497 shares Sumitomo Mitsui Trust Bank, Limited (Including 141,351,296 shares 5-33, Kitahama, 4-chome, Chuo-ku, The Master Trust Bank of Japan Ltd. (trust account) ...... 133,064 5.42 held by Panasonic) Osaka-shi, Osaka 540-8639, Japan Japan Trustee Services Bank, Ltd. (trust account) ...... 127,720 5.20 Phone: +81-6-6220-2121 Number of Shareholders Nippon Life Insurance Company...... 76,728 3.12 Depositary and Transfer Agent 557,102 persons Sumitomo Mitsui Banking Corporation ...... 66,817 2.72 for American Depositary Receipts (ADRs) Japanese Stock Exchange Listings JPMorgan Service Center Moxley & Co. LLC...... 57,930 2.36 Tokyo, Osaka and Nagoya Stock Exchanges P.O. Box 64504 Panasonic Corporation Employee Shareholding Association ..... 49,871 2.03 St. Paul, MN 55164-0504, U.S.A. Overseas Stock Exchange Listing Phone: U.S.: +1-800-990-1135 SSBT OD05 Omnibus Account-Treaty Clients ...... 46,982 1.91 New York Stock Exchange International: +1-651-453-2128 Sumitomo Life Insurance Co...... 37,408 1.52 State Street Bank and Trust Co...... 33,939 1.38 Breakdown of Share Holdings (Years ended March 31) (Thousands) Japan Trustee Services Bank, Ltd. (trust account 9)...... 30,206 1.23 2008 2009 2010 2011 2012 Notes: 1. Amounts less than one thousand have been discarded. Number of shares issued at year-end 2,453,053 2,453,053 2,453,053 2,453,053 2,453,053 2. The number of treasury stock is 141,351 thousand shares.

Treasury stock at year-end 351,936 382,411 382,448 382,760 141,351

Company Stock Price and Trading Volume (Years ended March 31) Tokyo Stock Exchange Monthly basis Average common shares outstanding 2,120,986 2,079,296 2,070,623 2,070,341 2,312,167 Stock Price Trading Volume (Yen) (Millions of shares) Note: Amounts less than one thousand have been discarded. 3,000 2,000 Stock Price Trading Volume Breakdown of Issued Shares by Type of Shareholders Breakdown of 2,400 1,600 (March 31 of each year) (%) Issued Shares by Type of Shareholders 1,800 1,200 2008 2009 2010 2011 2012 (As of March 31, 2012) Japanese Financial Institutions, etc. 31.6 34.1 30.8 30.9 34.2 Treasury Japanese 1,200 800 Stock Financial 5.8% Institutions, Overseas Investors, etc. 28.7 22.5 25.3 22.7 21.9 etc. 600 400 34.2% Other Corporations 6.7 7.1 7.1 7.1 8.4 0 0 2,453,053 April March April March April March April March April March thousand Overseas 2008 2009 2010 2011 2012 Individuals and Others 18.6 20.7 21.2 23.7 29.7 shares Investors, etc. High 2,585 2,515 1,585 1,480 1,070 Treasury Stock 14.4 15.6 15.6 15.6 5.8 21.9% Low 1,912 1,000 1,062 826 582 Other Individuals and Corporations Period-End 2,160 1,069 1,430 1,058 761 Total 100.0 100.0 100.0 100.0 100.0 Others 8.4% 29.7% Panasonic Annual Report 2012 Search Contents Returnpage 58 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices Company Information (As of March 31, 2012)

Company Outline Basic History of the Company

Company Name Consolidated Companies 1918 Konosuke Matsushita founded Matsushita Electric Housewares Manufacturing Works. Panasonic Corporation (including parent company) Sales of the Company’s first product, an improved attachment plug, began. (NYSE: PC/TSE Securities Code: 6752) 579 companies 1927 The “National” brand name was registered. Founded Associated Companies under the March 1918 (incorporated in December 1935) Equity Method 1933 A divisional system was instituted. 103 companies Common Stock 1935 The Company was reorganized and renamed Matsushita Electric Industrial Co., Ltd. 258.7 billion yen Corporate HP Panasonic Corporate Site 1949 The Company’s shares were listed on the Tokyo Stock Exchange http://panasonic.net/ and the Osaka Securities Exchange. IR Site http://panasonic.net/ir/ 1959 Matsushita Electric Corporation of America was established. Following this move, the Company established bases in other parts of the world. Number of employees (March 31 of each year) (Persons) 2008 2009 2010 2011 2012 1971 The Company’s shares were listed on the New York Stock Exchange. Domestic 135,563 132,144 152,853 145,512 133,605 2002 The Company made Matsushita Communication Industrial Co., Ltd., Overseas 170,265 160,106 231,733 221,425 197,162 Kyushu Matsushita Electric Co., Ltd., Matsushita Seiko Co., Ltd., Total 305,828 292,250 384,586 366,937 330,767 Matsushita Kotobuki Electronics Industries, Ltd. and Matsushita Graphic Communication Systems, Inc. into wholly-owned subsidiaries.

Corporate Bonds Information 2003 The Company adopted a business domain-based organizational style through restructuring. The Company made Matsushita Electronic Components Co., Ltd. Unsecured Straight Bonds in Japan and Matsushita Battery Industrial Co., Ltd. into wholly-owned subsidiaries. Coupon rate Aggregate principal 2004 The Company made Matsushita Electric Works, Ltd. (now Panasonic Electric Works Co., Ltd.), Series Years (per annum) amount of issue Maturity date PanaHome Corporation and their subsidiaries into consolidated subsidiaries. 7th 5 1.404% 200 billion yen March 20, 2014 8th 10 2.050% 100 billion yen March 20, 2019 2008 The Company changed its name from Matsushita Electric Industrial Co., Ltd. to Panasonic Corporation. The Company planned to unify its corporate brands under the Panasonic 9th 2 0.380% 150 billion yen March 19, 2013 “Panasonic” name across the world. 10th 5 0.752% 200 billion yen March 18, 2016 The Company made SANYO Electric Co., Ltd. and its subsidiaries 11th 7 1.081% 150 billion yen March 20, 2018 2009 into consolidated subsidiaries. 2nd 10 1.49% 20 billion yen December 20, 2013 Panasonic 3rd 7 1.66% 40 billion yen June 19, 2015 2011 The Company made Panasonic Electric Works Co., Ltd. and SANYO Electric Co., Ltd. Electric Works* into wholly-owned subsidiaries. 4th 10 1.593% 30 billion yen June 20, 2019 18th 10 0.82% 10 billion yen June 17, 2013 2012 The Company reorganized its business into nine business domain companies and SANYO* 20th 10 2.02% 30 billion yen August 26, 2014 one marketing sector. * Panasonic succeeded corporate bonds of Panasonic Electric Works and SANYO on January 1, 2012. Panasonic Annual Report 2012 Search Contents Returnpage 59 Next

Financial Review Consolidated Financial Statements Stock Information Company Information Quarterly Financial Results and Investor Relations Offices Quarterly Financial Results and Investor Relations Offices

Quarterly Financial Results (Years ended March 31)

(Trillions of yen) Net sales [left scale] Net income (loss) attributable to Panasonic Corporation/Net sales [right scale] (%) 2.50 6.0

2.25 4.0

2.00 2.0

1.75 0

1.50 –30.0 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter 2008 2009 2010 2011 2012

(Millions of yen) 2008 2009 2010 2011 2012 Net sales Investor Relations Offices Japan 1st quarter 2,239,505 2,151,997 1,595,458 2,161,126 1,929,548 Osaka 2nd quarter 2,285,800 2,191,714 1,737,838 2,206,822 2,075,650 Panasonic Corporation, Investor Relations Office 1006 Oaza Kadoma, Kadoma-shi, Osaka 571-8501, Japan 3rd quarter 2,344,565 1,879,940 1,886,588 2,285,413 1,960,200 Phone: +81-6-6908-1121

4th quarter 2,199,058 1,541,856 2,198,096 2,039,311 1,880,818 Tokyo Panasonic Corporation, Investor Relations Office Total 9,068,928 7,765,507 7,417,980 8,692,672 7,846,216 1-1-2 Shiba-Koen, Minato-ku, Tokyo 105-8581, Japan Phone: +81-3-3437-1121 Net income (loss) attributable to Panasonic Corporation U.S. Panasonic Finance (America), Inc. 1st quarter 39,314 73,031 (52,977) 43,678 (30,351) 1270 Avenue of the Americas, Suite 2330, New York, NY10020, U.S.A. 2nd quarter 65,808 55,461 6,109 31,040 (105,800) Phone: +1-212-698-1360 Europe 3rd quarter 115,183 (63,116) 32,259 39,983 (197,668) Panasonic Finance (Europe) plc 4th quarter 61,572 (444,337) (88,856) (40,684) (438,353) 5th Floor 9 Devonshire Square, London, EC2M 4YF, U.K. Phone: +44-20-3008-6887 Total 281,877 (378,961) (103,465) 74,017 (772,172)

Note: Quarterly ﬁnancial data is unaudited and has not been reviewed by Panasonic’s independent registered public accounting ﬁrm. http://panasonic.net/

Panasonic Corporation