2020 ECO-VC Activity Proposal and Application Guidelines

January, 2020 ECO-VC Administration Global Procurement Company Panasonic Corporation Contents Item Page

1. Overview (1) About ECO-VC Activity P4

(2) Concept of ECO-VC Activity P5

(3) ECO-VC Activity Coverage Area P6

(4) Key Points of ECO-VC Activity P7

(5) Achievements of ECO-VC Activity (Effects / Application Results) P8, P9

2. Schedule Annual Schedule (Planned for FY2020) P11 3. Application Note) Refer to the Attached File: 2020 ECO-VC Activity Application Guidelines Guidelines 4. Screening Meeting (1) Screening Overview P13

(2) Evaluation Criteria for Screening P14

(3) Screening Process P15

(1) Registration and Release of the Environment Technology Database P17 5. Others (2) Issuance of the Certificate of Registration P18

Reference Information Activities for Achieving the Environment Vision 2050 P20-P24

Attachment; Access Map (Screening Venue) For inquiries: [email protected] 1. Overview

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 1. (1) About ECO-VC Activity

ECO-VC (ECO Value Creation) Activity • Panasonic's procurement operations aim to achieve both reduced greenhouse gases with recycling-oriented manufacturing and reduced costs through environmentally-aware activities: energy savings in our products and suppliers, reduced resource usage with lighter and more compact products with a lower number of parts, use of recycled materials, and shifting to fossil fuel-free materials. VC means an abbreviation of Value Creation • We gather ideas from our suppliers worldwide to introduce the most outstanding examples at the ECO-VC Activity award ceremony and networking event. Ideas shared with our suppliers in this way are spread throughout the entire Panasonic Group. This activity began in fiscal 2009.

Reduce greenhouse gases AND Reduce costs

Recycling- oriented manufacturing

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 4 1. (2) Concept of ECO-VC Activity

Maximizing Value Cost Degree of satisfaction Paid costs

Strengthening Product Competitiveness Function Value ＝ ーーーーーーーーーー Cost

Function Material Cost Cost Material

Rationalization Obtained effects

Minimize Environmental Loads Reduce Utilize Recycled Reduce in CO2 Emissions Resource Used Total Resources Used

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 5 1. (3) ECO-VC Activity Coverage Area All aspects of the supply chain are involved: manufacturing, sales, distribution, and corporate activities Business Logistics Panasonic Logistics Customers Partners

・Lightweight and ・Energy saving products Downsizing ・Streamlining of the ・Outstanding eco friendly ・Streamlining of the ・Energy saving shipping process products shipping process ・Energy saving facilities ・Optimized packaging ・Modal shift ・Energy-saving / energy ・Modal shift ・High-efficiency air- ・Improved packaging ・Standardizations storage / energy- ・Improved packaging conditioning system ・ Efficiently of utilizing ・Reduce number of parts creating products ・Efficiently of utilizing ・Zero waste warehouse ・Ecology solutions for ・Substitution of Materials ・ warehouse Cross-industrial joint the entire house ・Utilize recycled materials shipping ・Material inventory ・Promote eco-navi reductions products

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 6 1. (4) Key Points of ECO-VC Activity

Key Words Examples of Initiatives and Achievements Energy saving of products - Developed a power supply unit whose switching supply efficiency is 15% higher than the previous model. - Reduced power consumption of the product during standby mode to less than 0.1 W by developing a special microcomputer. Energy saving in the manufacturing (factory) - Reduced the power consumption by 20 % in the process for producing the register of micro chips with the energy saving activities to implementing an insulation in hearing furnace, and etc. Implementation of renewable energy - Exchange from the current power generation to solar power (renewable energy) in the manufacturing process of motor Development of smaller size - Reduce and shrink LSI package and lighter weight products - Shrink chip size. Part standardization and common use - Reduce to create new die (mold tool) by commoditized existing cover and case Resource conservation - Reduction in Total Resources Used. Utilize 100% recycled materials. - Reduce packing materials by utilizing reusable and returnable container. Recycled materials - Utilize recycled resins (plastics) Alternative materials and single material - Significantly reduced product prices achieved cost rationalization by changing the copper tube to iron tube Use new materials - Adopted a new material with outstanding thermal conductivity for the radiator plate and reduced the internal temperature by 15°celsius. As a result, made cost rationalization by eliminated cooling fan, and enabled to replace heat-resistant capacitor with a standard capacitor. Less parts - Enabled the integration of components by improving die (mold tool) and pressing processes. As a result, significantly reduced the number of parts. - Reduced 25% of circuit components per unit. Transportation efficiency - Improvement in a loading rate, joint transportation and consolidated service Direct transportation - Implementing direct transportation to the warehouse and utilize return track / round transportation Improve packaging - Optimized size for transportation and storage, downsizing by minimum packaging, review type of materials Modal shift - Change type of transportation such as from truck to rail lord, or vessel Use Eco-friendly (low emission) vehicle - Introducing and utilize eco-track, and promote eco-conscious drive Biofuel - Use biofuel proactively Effective use of warehouse space - Improve storage efficiency, consolidate warehouse locations, and eliminate defect inventory Development of new transportation route - Reduce air freight transportation, contribute to reduce lead time Others - Reduced VOC and CO2 emissions by eliminating the housing coating through the development of a weldless molding method.

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 7 1. (5) Achievements of ECO-VC Activity - 1 (Effects / Application Results)

Accumulated total Cost Rationalization amount 194.4 billion JPY Number of Proposal Received 8,959  Number of Proposals Unit：  Reductions Number of Applications

Unit: Billion JPY Unit: K tons Cost CO2 部品点数削減Reduction of the number of components Rationalization Reduction 薄肉化Thinning walls 255 48 51 48 235250 軽量化Weight reductions 213 41 176 178 Productivity improvement 154 153 32 28 生産性向上 116122 25 Improve 1445 92 商品力向上Product competitiveness 3 6 6 3 1077 09 10 11 12 13 14 15 16 17 18 19 09 10 11 12 13 14 15 16 17 18 19 890 866 933 772 Reduction in 820 Recycled Unit: K tons Unit: K tons 668 Resource Use Total Resource 622 2.1 Used 512 1.9 1.9 2.4 1.7 1.7 1.8 2.1 2.1 1.8 2 1.99 354 1.2 1.6 1.2 0.6 0.01 0.3 0.3 0.01 0.1 0.1 09 10 11 12 13 14 15 16 17 18 19

09 10 11 12 13 14 15 16 17 18 19 09 10 11 12 13 14 15 16 17 18 19

Use ever more effective VE techniques To improve efforts and quality for efficient and proactive proposals

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 8 1. (5) Achievements of ECO-VC Activity - 2 (Application Results)

*Before FY 2017 onward, actual figures are recorded for Company cases Company 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Central Contract Center - - - - - ※ ※ ※ ※ 180 69 AP 58 192 241 294 706 1,142 703 447 217 428 341 LC 5 14 12 PES 28 2 15 33 64 50 46 26 26 27 55 LS PEW 13 4 50 PH 9 63 28 15 22 14 26 30 31 45 46 AVC 223 174 178 189 83 PMC 7 14 9 93 30 30 17 12 20 CNS 8 7 PSN 15 12 10 PSFS 13 35 27 30 32 53 62 48 31 50 53 INFO 5 13 18 22 20 13 9 18 11 11 19 AM Energy 29 22 23 39 30 18 19 5 6 18 79 23 46 39 8 6 IS 62 50 18 15 29 62 13 14 47 21 13 PHC 3 4 4 3 1 ------SANYO 0 16 67 0 0 0 - - - - - MRO 0 3 0 0 - - - - - 10 20 PRC Material 39 19 56 34 ------Raw Material TC 18 0 17 17 0 0 - - - - 8 Global Logistics Division 11 21 60 57 ------Overseas Manufacturing - - - 63 62 33 19 - - 10 - Company Total 512 668 901 866 1,077 1,445 933 622 354 820 772

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 9 2. Schedule

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 2. Annual Schedule (Planned for FY2020)

Year 2020 Type Month 1 2 3 4 5 6 7 8 9 10 11 12 Dec. (Plan) Late Jan. FY2019 Online announcement of activity outline / application guidelines ・Provide Registration Cert Issuance From Late Jan. ・Sharing Successful Results and Proposals Briefing session 16:00, Thursday, April 23 Deadline (→Secretariat) Late Nov. (plan) ECO-VC

Application Period Processed Parts Screening at each Company

General

Final Final

Exhibition

Technology Primary Primary

Dec. 2018 – Jan. 2019 Screening Screening FY2018 Application • Provide Registration Cert Deadline Issuance May 29 Early July * Integration • Sharing Successful Results (Company) (plan) (plan) being considered

and Proposals *PEPM

Company Application Period Contribution

* ECO-VC Final Screening and *PEPM: Screening Technology & Development Company Contribution Panasonic Excellent Partners Meeting Cost Improvement Quality Performance Screening held on same day Supply Chain Management 16:00, Thursday, June 18 Deadline

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 11 4. Screening Meeting

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 4. (1) Screening Overview

Item Content Remarks

 Primary screening: Panasonic Shoshin Hall, late May (plan) * Details will be advised separately. Schedule  Final screening: Panasonic Shoshin Hall, early Jul. (plan) * Refer to Access Maps

* Subject to change depending on the  Screening groups number of themes screened and operations Screening will be conducted in several groups on the day. Each group will contain 4-5 people (3 judges per group) Presentation  Presentation format: presentation-style method  Allotted time Screening • Presentation time: 10 minutes method • Q&A session: 10 minutes (total of 20 minutes)  Screening method Scored out of 100 / Total of judges x number of people (in groups)

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 13 4. (2) Evaluation Criteria for Screening

Results Items Evaluation Points Weight Pts

・Prioritized and innovative (eg: industry and world first) Activity Innovation ・Own technology, not duplicate or copy from others 20 ・Introduce to Panasonic first besides others & 35 ・Tough to achieve, high difficulty rate Effort Difficulty ・Defeat common sense of industry efforts 15

・Reduce CO2 emissions (amount & rate) Environmental ・Reduce amount of resources used, Contribution 20 utilize recycled resources (amount & rate) Contributed ・Evaluated by Profit and Loss point of view to Rationalization (Cost reduction amount & rate, Material Inventory Reductions, 20 Panasonic reduce days of supply and material delivery lead time)

Group ・Evaluated by supplier contributions made to Panasonic Strengthening Product 65 in terms of product competitiveness / future prospects of Competitiveness 10 (eg: energy saving, improve productivity, improve branding) Company/ ・Further product development and possibility Future Possibility ・Evaluated by feasibility of expansion to other Panasonic / Feasibility 10 Prospects Group of companies and products

・Add points based on level of overall presentation, Others easy to understand format, and attitude 5

Total 100

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 14 4. (3) Screening Process *may be altered depending on the number of applications

All entries

A maximum of 50 of the most outstanding will be nominated

Processed parts/general  Initial screening 50 cases (*if there are 5 groups)  Judges *The ranking is the total scores by groups • Innovation Promotion Department • Quality & Environment Each No. 1 / No. 2 (proceeding to the final screening) Division • Company Procurement • Global Procurement Company Each No. 3 / No. 4 (Honorable Mention Awards)

The top 2 places in each group proceed to the final screening

 Final screening Gold awards: 2  Judges Decision on gold, silver,

• Innovation Promotion15 and bronze awards Department Silver awards: 3 • Quality & Environment * If there are 10 proceeding Division • Global Procurement Company Bronze awards: 5

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 15 5. Others

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 5. (1) Registration and Release of the Environment Technology Database

All successful results and proposals will be registered on the Panasonic Environment Technology Database System and made available to all Panasonic employees. * Results and proposals will not be released outside Panasonic.

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 17 5. (2) Issuance of the Certificate of Registration

★ Certificates of Registration will be issued to all themes submitted.

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 18 Reference Information

ECO-VC Administration, Global Procurement Company, Panasonic Corporation Activities for Achieving the Environment Vision 2050

・In FY 20 ECO-VC activities, energy initiatives were evaluated in the framework of CO2 reduction as before. ・The conversion method for renewable energy has been added to the outline and application guidelines since FY 19. ＧＰ2021 :Targets and action plans to be achieved in fiscal 2021

Category 2021 targets Increase the ratio of total energy created to Total energy created : total energy used = 1 : 8.5 total energy used Increase amount of energy created Amount of energy created: 30,000 GWh or more Size of contribution toward energy savings through products and Increase the size of contribution toward Products services: energy savings through products and Direct: 25,000 GWh or more & services Services Indirect: 2,000 GWh or more Expand energy creation businesses Energy Expand energy efficient products and services business, focusing on products and services utilizing IoT/AI Promote zero-CO2 model factories - Establish model factory using advanced hydrogen technology - Establish at least one zero-CO2 model factory in each region Increase the use of renewable energy through the generation Renewable energy generated on our sites: Factories of renewable energy on-site and procurement of renewable Material Issues Material 40,000 MWh or more energy Promote energy efficiency in production - Reduce energy loss through IoT - Improve productivity through manufacturing innovation Analysis of the development of circular economy options for existing Create circular economy business models businesses: 100% Reduce resource consumption and increase the use of Resources Recycled resin usage: 42,000 tons or more (2019 to 2021 total) sustainable materials Achieve Zero Waste Emissions from factories globally Factory waste recycling rate: 99 % or more Water Reduce water consumption in production activities Chemical Minimize the environmental impact of chemical substances usage in production activities and products substances Biodiversity Promote procurement of sustainable materials Local Promote environmental initiatives to contribute to local communities and educate the next generation

communities sustainability goals sustainability

Other environmental environmental Other Compliance Ensure compliance with environmental laws and regulations Access Map: Panasonic Shoshin Hall For inquiries: [email protected]

Location 1-19 Nakamachi, Kadoma City, Prefecture To Itami Airport TEL: +81-6-6907-4812 FAX: +81-6-6907-4813 Ｎ Transportation Please come via public transportation (Subway) 1. From Osaka Tanimachi Line  On the Osaka Metro , go from to Dainichi Yodoyabashi Station (change trains) On the Keihan Line, go from Yodoyabashi Station to Kadomashi Dainichi Station, followed by a 5-minute walk Intersection 2. From Kyoto  On the Keihan Line, go from Sanjo Station to Kadomashi Station, followed by a 5-minute walk  On the Kintetsu Line, go from Kyoto Station to Tambabashi Station Panasonic Corporation (change trains) On the Keihan Line, go from Tambabashi Station to Kadomashi ● Station, followed by a 5-minute walk ● ● ● 3. From Osaka International Airport  On the Osaka Monorail, go from Osaka-Airport Station to Kadoma-shi Station, followed by a 5-minute walk Panasonic LS Panasonic Company Panasonic IS Shoshin Hall Company Osaka Metro(Subway) Panasonic Kadoma Tanimachi Line ● CNS Company Moriguchi ● City hall Hachijima To Kyoto Intersection Demachiyanagi ● ● Kadoma Kadomashi Fire Department

Panasonic Nishisanso Museum

Moriguchi Route 163

To Osaka Panasonic Yodoyabashi CNS Company

ECO-VC Administration, Global Procurement Company, Panasonic Corporation 22