Basic Approach to Mid-term Strategy
and Progress with Ongoing Initiatives
November 22, 2019
Kazuhiro Tsuga, CEO
Panasonic Corporation
Notes: 1. This is an English translation from the original presentation in Japanese.
2. In this presentation, “Fiscal 2020” or “FY20” refers to the year ending March 31, 2020.
Basic Policies for Mid-term Strategy
Overcome low-profit structure
Expand profit in Core growth business
Create new value through
co-creation efforts with external partners
Execute structural reform
Aim toward 2030
Become a company that
makes contributions in people’s lives
Lifestyle Updates
Basic Approach to Mid-term Strategy and Progress with Ongoing Initiatives 1
Focal Points of Mid-term Strategy
Drastically revise business directions and approaches to
capital & brand operations
Core growth Spatial Gemba Industrial
business Solutions Process Solutions
Co-creation Consumer
Housing
business Electronics
Revitalization Automotive Automotive
business Solutions Batteries
Capital Policy Brand Policy
Act flexibly Promote more flexible
depending on necessity brand usage
Basic Approach to Mid-term Strategy and Progress with Ongoing Initiatives 2
Growth Scenario for Core Growth Business
Focus on solutions-type business models shifting from individual
hardware sales, based on medium- to long-term perspectives
2019 2021 2030
Spatial Spatial value creation
Solutions Overseas electrical construction materials
Gemba Supply chain
Process Fine processing
Industrial Systems
Solutions Devices
Basic Approach to Mid-term Strategy and Progress with Ongoing Initiatives 3
Initiatives for Core Growth Business
Help people live better, more comfortable lives
Spatial Solutions
responding to their needs
Spatial value Use IoT to maximize emotional benefit of the
creation people at the office, commercial facilities, etc.
Overseas
electrical Achieve profitable growth in ISAMEA,
construction
materials Southeast Asia & China
Innovate customers’ processes related to
Gemba Process
producing, transporting and selling
Supply Help solve problems at frontlines through
chain enhanced software & consulting capabilities
Fine Smarten manufacturing processes
processing through AI & data analysis
Industrial Solutions
Stay connected to customers and offer solutions
based on competitive devices
Improve customer-contact capabilities and
Systems
focus on “module” & “package” businesses
Reinforce material/process technologies to
Devices
increase ratio of top-market-share products
Basic Approach to Mid-term Strategy and Progress with Ongoing Initiatives 4
Enhance Management Structure
Accelerate reduction of fixed costs to generate
100.0 billion yen profit contributions in FY2022
Reduce personnel costs 30.0
(gap between retiring & hiring) billion yen
Improve efficiency by indirect work 30.0
reduction & site integration, etc. billion yen
Countermeasures for businesses 40.0
billion yen
with loss-making structures (reduction of
loss)
Basic Approach to Mid-term Strategy and Progress with Ongoing Initiatives 5
Business Portfolio Management
Execute portfolio management in a top-down manner
Eradicate businesses with
loss-making structures by FY2022
Set new direction in low-profit businesses
by FY2022
Find new directions in businesses that
are no longer competitive, including
drastic capital policies
Basic Approach to Mid-term Strategy and Progress with Ongoing Initiatives 6
What we aim to become toward 2030
Offer new value with solutions-type business models in lifestyle areas
Stay close to
people
Entire Residential
town space
Lifestyle
Updates
Public
Mobility space
Distribution
Manufacturing Producing
hardware
Basic Approach to Mid-term Strategy and Progress with Ongoing Initiatives 7
Disclaimer Regarding Forward-Looking Statements
This presentation includes forward-looking statements about Panasonic and its Group companies (the Panasonic Group). To the extent
that statements in this presentation do not relate to historical or current facts, they constitute forward-looking statements. These forward-
looking statements are based on the current assumptions and beliefs of the Panasonic Group in light of the information currently available
to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the
Panasonic Group's actual results, performance, achievements or financial position to be materially different from any future results,
performance, achievements or financial position expressed or implied by these forward-looking statements. Panasonic undertakes no
obligation to publicly update any forward-looking statements after the date of this presentation. Investors are advised to consult any further
disclosures by Panasonic in its subsequent filings under the Financial Instrument and Exchange Act of Japan (the FIEA) and other publicly
disclosed documents.
The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularly consumer
spending and corporate capital expenditures in the Americas, Europe, Japan, China and other Asian countries; volatility in demand for
electronic equipment and components from business 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
denominated in these foreign currencies; the possibility of the Panasonic Group incurring additional costs of raising funds, because of
changes in the fund raising environment; the possibility of the Panasonic Group not being able to respond to rapid technological changes
and changing consumer preferences with timely and cost-effective introductions of new products in markets that are highly competitive in
terms of both price and technology; the possibility of not achieving expected results or incurring unexpected losses in connection with the
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 in many product and geographical areas; the possibility
of incurring expenses resulting from any defects in products or services of the Panasonic Group; the possibility that the Panasonic Group
may face intellectual property infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other
countries over trade, manufacturing, labor and operations; restrictions, costs or legal liability relating to laws and regulations or failures in
internal controls; fluctuations in market prices of securities and other financial assets in which the Panasonic Group has holdings or
changes in 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.
