#1Panasonic 1 | Panasonic Technology IR Panasonic Innovation Strategy November 29, 2017 Panasonic Corporation Notes: This is an English Translation from the original presentation in Japanese. Providing Value A Better Life Individual Achieving "better living" with continued happiness Copyright (C) 2017 Panasonic Corporation All Rights Reserved. A Better World Society Achieving a sustainable society Panasonic#2Providing Value A Better Life Housing Connected Home Zero Emission House Robot Appliances Automotive Connected Car Electrification Auto-driving Shared Economy A Better World Energy Renewable Zero Emission Local Production & Consumption 21 IoT/Robotics Energy Al, Sensing, UI/UX Second battery, Hydrogen Panasonic Creating "A Better Life, A Better World" with the Technology 10-Year Vision Al Robotics Home Appliances Autonomous Driving Home Energy Solution Building/Regional Energy Solution Freedom from Housework No Accident No Congestion loT/Robotics Al, Sensing, UI/UX Low-carbon Society Energy- Diversification Technology Energy 10-Year Vision Battery, Hydrogen Improve Service Quality Elimination of Labor Shorage Retail Solutions Next-gen Logistics 3 | Clean Car Automotive energy Solution https://www.panasonic.com/global/corporate/technology-design/10years-vision.html Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#3IoT/Robotics Al Robotics Home Appliances Autonomous Driving Home Energy Solution Building, Regional Energy Solution Freedom from Housework No Accident No Congestion IoT/Robotics Low-carbon Society _Energy Diversification Technology Energy 10-Year Vision Battery, Hydrogen Al, Sensing, UI/UX Improve Service Quality Elimination of Labor Shorage Clean Car Retail Solutions Next-gen Logistics Automotive energy Solution 41 5 | Panasonic Society 5.0:Super Smart Society New Society "Society 5.0" T 5.0 111111100100101 010101019 0111000000101010000 9111111010101000000 1.0 Society 1.0 Hunting 2.0 Society 2.0 Agrarian Society 3.0 Industrial 4.0 Society 4.0 Information 3.0 內閣府作成 Based on material from Japanese Govt, http://www8.cao.go.jp/cstp/society5_0/index.html Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#4From "Keeping process" to "Customer Value First" • Society 3.0 (Industrial Society) Mass production with good quality by defining and obeying processes. • Focus hardware product innovation 6│ Society 5.0 (Super Smart Society) • Customer value first, apply the best process for it. • Innovation of all business models including hardware, software, service, etc. Panasonic Direct communication with customers Waterfall Process: Unspecified Large Number of Customers Marketing → R&D Producti zation CASHIER SALE OXOFF Sales Agile Process: Specified Large Number of Customers Prototype Prototype Product Product Design C C C Thinking Customer Customer Customer Customer 7 | Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#5Restructuring Corporate R&D to promote innovation on April, 2017 Technology & Design Section -> Innovation Promotion Section Innovation Promotion Section Business Senior Managing Executive Officer CTO,CMO,CQO,CPO,CIO R&D Business Innovation Division Advanced Research Division Yoshiyuki Miyabe Head Quarter Manufacturing Technology and Engineering Division Design Strategy Office Information Systems Department 8 91 Information Systems Technology Division Company AP Business Development Center Innovation Center ES R&D/ Business Business Development Center CNS Innovation Center Technology Division AIS Business Development Center Panasonic Business Digitalization Business Innovation Division Wataru Baba Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#6Business Digitalization HOMEX Construction of Digital Native Business Establishment of Panasonic ẞ Optimization in Innovation Promotion Division 10 | Panasonic Construction of Digital Native Business HOMEX - Digital Business Model A Platform Company Winning Digital Ecosystem Software Designed Hardware - HOMEX Digital Priority $ Digital Customer Digital Products Digital Supplier Digital Workforce Digital Finance 11 | Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#7Software Driven Type Living Space Hardware Housing U U Housing Equipment Appliance Home < HOMEX Housing n Housing Home Equipment Appliance n = HOMEX 12 | 13 | Living Space Home Appliance Housing Housing Equipment Disrupt other industries by digital native business model Growth through reinventing our industry Panasonic Panasonic ẞ Realization of Mini Horizontal Panasonic and Establishment of Mother Factory for Innovation Mass Production Horizontal Panasonic about Job Function Software AP Design Al Data Science Panasonic ẞ Panasonic Cross Value Studio People Process Place ES CNS Horizontal Panasonic about Business Division Copyright (C) 2017 Panasonic Corporation All Rights Reserved. AIS Panasonic#8Panasonic ẞ Involves the whole company Cross Value Type Regrowth by Horizontal Panasonic about Business Division and Horizontal Panasonic about Job Function 1293 81 31 Idea Creation Prototype Hardware Prototype DODO 3 Living Space Prototype 05 3 2 12 5 4 29 9 Company People Job Function Company People Job Function Company People Job Function September July 14 | November Panasonic Restructuring Business Process by Innovation Promotion Division Panasonic ẞ Manufacturing Technology and Engineering Division Business Innovation Advanced Research Division Division Show Rapidly Launch Rapidly HOMEX Energy 15 | Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Design Panasonic#9Panasonic ẞ that leads next 100 years 16| Construction of Digital Native Business Regrowth of Mainstream Business Panasonic ẞ Panasonic Digital Native Digital Transformation Panasonic Manufacturing that Embodies the Business Ideas from Rapid Prototyping to Mass Production 17 | Manufacturing Technology and Engineering Division Tatsuo Ogawa Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#10Show Faster Embody the ideas rapidly by prototyping Improve the visualized concept by prototype with a feeling of touch CK'S DA btni A Model made with cardboard etc. Usable prototypes 18 | Panasonic Manufacturing that realizes rapid prototyping Produce the prototype rapidly from data creation Measure Decorate Panason Print CAD data linkage High precision scan Customized design Decorative Printing 19 | Additive manufacturing 3D modeling Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#11Connect to the Business Faster Produce hundreds units in a short time to examine the business model 201 Make a mold with a metal Prove concept quickly 3D printer Quality of the products is Reduce mass pro level L/T significantly L/T for mold: 1 moths → 1 week Panasonic Digitalization of Mass Production Manage the production instruction optimally for various order & demand change Cyber Simulation due to changes Various order Simulate Verify optimal production instructions 21| Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Physical Feedback to operation Changes Logistics tracking in the field Implement dispatch plan Supplier Plant Storage~Logistics Panasonic#12Energy Al Robotics Home Appliances Autonomous Driving Home Energy Solution Building/Regional Energy Solution Freedom from Housework No Accident No Congestion IoT/Robotics Low-carbon Society -Energy Diversification Technology Energy 10-Year Vision Battery, Hydrogen Al, Sensing, UI/UX Improve Service Quality Elimination of Läber Shorage Clean Car Retail Solutions Next-gen Logistics Automotive energy Solution 221 Panasonic Rechargeable battery is key device to reduce fossil fuel Gasoline-fueled Car Electric Vehicle Gasoline Engine Motor Experimental Electric Vehicle Key Device Panasonic Gasoline Tank 231 Rechargeable Battery Panasonic Copyright (C) 2017 Panasonic Corporation All Rights Reserved.#1324 | 25 | Leading Rechargeable Battery Business Tesla Gigafactory (Nevada, US) Dalian Factory (China) Panasonic Advanced Research in Energy Field Advanced Research Division Masato Aizawa Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panamanic Suminoe Factory (Japan) Panasonic Panasonic#14Importance of Materials for Battery Performance Importance of new materials development and analysis of atomic/molecular behavior Rechargeable battery composition and charge-discharge 261 Current collector Charge Positive electrode e- Discharge material Electrolyte Li Negative electrode material Current collector Panasonic Shortening of New Material Development Solution for drawbacks of a trial and error approach Theory Experiment Evaluation Materials Informatics Simultaneous prediction AI Theory Synthetic process Materials & २ 271 Experiment Evaluation Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#15Data-driven Material Search Structure prediction of functional material by AI Expt. data Reported data ΑΙ Battery: Data for 50 years 50 million data Simulation data 281 Material data 1 million data Panasonic Elaborate Analysis and Evaluation Analysis of atomic arrangement and behavior Atomic-scale resolution Electron microscope Real-time dynamic analysis * Thin-film battery Thickness 0.1μm Charge Li behavior in battery material Positive electrode material Electrode 291 50μm * The world's first tech in positive electrodes (Best presentation award at ICMASS 2017) Copyright (C) 2017 Panasonic Corporation All Rights Reserved. low Li conc. high Panasonic#16Quick Launch Products into Markets Close relationship between material search and manufacturing Rapid Prototyping Advanced Research 30 | New Materials New Manufacturing Production Engineering Panasonic Manufacturing that Quickly Realizes High-Performance and Safe Automotive Rechargeable Batteries 31 | Manufacturing Technology and Engineering Division Tatsuo Ogawa Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#17Pursuit of Security & Safety in Manufacturing Monitor physical properties & process point that we could not see before in real time • Knead ⚫ Disperse Process control Coat/Dry www spec In process sensing Join ⚫ Cut • In-process physical properties / Characteristics sensing Aim to provide 100% quality with zero defects facilities 321 Panasonic Evolution of Traceability by Visualization of Factory Aggregate & analyze the all information in factory, reflect decision on production site instantly (To Zero Defect from Quality Control) Discover & digitize on-site information Awareness MES/Equipment Inspection log S Process & store into handleable data IoT Daily report check Big data Sensor data ΑΙ Select data DB Distributed processing ③Visualize & analyze process quality in real time Trend monitoring Visualize the characteristic distribution 331 Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#18341 Conclusion Panasonic HQ Changes itself and Leads Innovation Al Robotics Home Appliances Autonomous Driving Home Energy Solution Building/Regional Energy Solution Freedom from Housework No Accident No Congestion loT/Robotics Al, Sensing, UI/UX Low-carbon Society Energy- Diversification Technology Energy 10-Year Vision Battery, Hydrogen Improve Service Quality Elimination of Labor Shorage 35 Clean Car Retail Solutions Next-gen Logistics Automotive energy Solution https://www.panasonic.com/global/corporate/technology-design/10years-vision.html Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic#19Panasonic A Better Life, A Better World 361 Panasonic Disclaimer Regarding Forward-Looking Statements This presentation includes forward-looking statements (that include those within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended) about Panasonic and its Group companies (the Panasonic Group). To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. These forward-looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause cause the Panasonic Group's actual results, performance, achievements or financial to be materially different from from results, powarn any furtune lts, performance, achievements or financial position expressed or implied by these and Exchange Act of Japan (the FIEA) and oth further disclosures by Panasonic in its subsequent filings under the Financial Instrument presentation. Investors are advised to consu any publicly disclosed documents. The risks, uncertainties sand other factors referred to above include, but are not limited to, economic conditions, particularly consumer spending and corporate capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand for electronic equipment and components from business ess and industrial customers, as well as consumers in many product and geographical markets; the possibility that excessive currency rate fluctuations of the U.S. dollar, the euro, the Chinese yuan and other currencies against the yen may adversely affect costs and prices of Panasonic's products and services and certain other transactions that are agammin denominated in these foreign oreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because of espond to rapid technological changes and changing consumer preferences with timely and cost-effective introductions of new products in markets the pressure in can be achieved changes in the fund raising environment; the possibility of the Panasonic Group not being able to respond that are highly competitive in alliance and gy; the possibility of not achieving expected results or incurring unexpected losses in connection with the terms of both price price and technology; t alliances or mergers and acquisitions; the possibility of not being able to achieve its business objectives through joint ventures and other collaborative agreements with other companies, including due to the pressure of price reduction exceeding that which can be achieved by its effort and decrease in demand for products from business partners which Panasonic highly depends on in BtoB business areas; the possibility of the Panasonic Group not being able to maintain competitive strength. many product and geographical areas; the possibility of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other manufacturing, labor and labor and operations; fluctuations in market prices of securities and other financial assets in which the Panasonic Group has holdings or changes valuation of non-financial assets, including property, plant and equipment, goodwill and deferred tax assets; future changes or revisions to accounting policies or accounting rules; the possibility of incurring expenses resulting from a leakage of customers' or confidential information from Panasonic Group systems due to unauthorized access or a detection of vulnerability of network-connected products of the Panasonic Group; as well as natural disasters including earthquakes, prevalence of infectious diseases throughout the world, disruption of supply chain and other events that may negatively impact business activities of the Panasonic Group. The factors listed above are not all-inclusive and further information is contained in the most recent English translated version of Panasonic's securities reports under the FIEA and any other documents which are disclosed on its website. 37 | Copyright (C) 2017 Panasonic Corporation All Rights Reserved. Panasonic