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Week-end Edition - Day 2 & 3 - IFA International

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Exclusive Interview

Exclusive Interview Aspiring To More Panasonic’s plan to double consumer product sales by 2018 Tetsuro Homma President, Panasonic Appliances Company, Panasonic Corporation 24 Panasonic aims to reach a goal of 17.7 billion Euros in consumer sales by 2018. We asked Tetsuro Homma - President, Panasonic Appliances Company how he sees the plan unfolding. The key to the Panasonic Group's consumer electronics business is growth in the global market. Expanding our business in Europe is important, but we hope to reach 17.7 billion Euros by accelerating growth in Asia and China, where the upper-middle class, which Panasonic specially targets, is growing. We set up regional companies in Asia and China in April. We will take functions previously handled in Japan, like product planning, marketing and development, into the local sites, strengthen our product capabilities and lineup oriented to each country’s specific market, and in particular will underpin sales in premium markets. Please tell us more about your vision “Aspire to More”… We believe there are three perspectives to focus on to give customers the lifestyles they aspire to. The first is the innovation that is at the center of our core technologies. Panasonic’s status is as a company with a core based around technology that differentiates us and provides value. It will be important for us in the future to retain differentiation backed by technology for each of our products we bring into the markets. The second is design. Our designs incorporate features developed through Japanese culture. The simple and rational lines achieved by Japanese traditional architecture bring out the harmony of interiors and gardens. The underlying keystone of the simplicity of line is used in the builtin kitchen and other pieces, utilizing other characteristics of European living environments to create a peaceful harmony. The third point is solutions for spaces. We are creating a new type of living space our customers will aspire to, going from single products to entire spaces. At IFA this year, we have space solutions incorporating a kitchen, a dining room and a living room. Panasonic takes the lifestyles our customers aspire to as the foundation for inspiring everything, to push forward our consumer electronics business with the maximum effort. What differentiates Panasonic as a manufacturer in this sector? While we started in the consumer business, we are constantly innovating our core technologies in a wide range of business areas. Our core environmental technologies include CFC-free freezers using carbon dioxide (CO2), a natural refrigerant. For bioscience technologies, our beauty products include nanoe, which provides moisture and natural shine to hair. For sensor technologies, we have a wide range of products equipped with our unique core technologies, such as the AUTOCARE function in our washing machines, which detects the laundry volume, the type of clothing and the degree of staining. Our strength as a company is the fact that based around these core technologies we have over a hundred product categories for audio-visual, home appliances, air conditioning and lighting reaching vast number of consumers around the world. The beauty products sector is a “sweet spot” for you. Why so? Among our product categories, Panasonic beauty products truly bring out the individuality of our customers. Products in the skincare category are really beginning to grow in the beauty product market. We are introducing our new intense pulsed light hair removal product into this market. It has a cordless ergonomic design, At IFA this year, we have space solutions incorporating a kitchen, a dining room and a living room an extra-wide flash window and can be used for a fullbody treatment in a single charge. Up until now hair care products have been our main focus, but from this IFA, we are introducing our skincare products for the whole body, and are building up demand in the European beauty product market. What are the key markets that are stirring growth? Panasonic's heritage lays in

Exclusive Interview © Business Wire Wonder Life-BOX 2020” at Panasonic Center Tokyo Panasonic’s Long History of Firsts in The Appliance Sector the consumer electronics business, from which we are using the core technologies to strengthen our B2B business. Specific markets include showcases to be installed in supermarkets and convenience stores, and large air conditioning units for use in shopping malls and buildings. We have an approximately 50% share in Japan for fuel cell cogeneration systems that use chemical reactions to take hydrogen from city gas and methane gas to turn it into electricity. We are making full efforts to achieve further growth by expanding our B2B business globally while carefully maintaining our traditional consumer electronics business. What is your strategy for Europe ? We see Europe as a market suited to our core area of high value products. We want to further underpin our presence in audio-visual products with 4K TVs and high-end audio with Technics, plus expanding sales of refrigerators, washing machines and built-in kitchens in partnership with Gorenje Group. These products help our European customers create the lifestyles they aspire to. A few words about factory in Brazil... In 2012, we established a new factory for refrigerators and washing machines in Extrema, on the outskirts of São Tetsuro Homma at Panasonic press Conference at IFA 2015 Paulo. The economic environment in Brazil isn’t easy, but our refrigerator business was able to start making a profit from its second year of entry. Our MDA business still has more potential for growth and we intend to overcome any challenge regardless of where in the world we are. Panasonic's heritage lays in the consumer electronics business, from which we are using the core technologies to strengthen our B2B business While in Europe and the USA, Panasonic has been lesser known for its appliances and more for its home entertainment equipment, in Japan, the company is highly renowned in all areas of the technical consumer goods business. Indeed, a visit to Tokyo is not complete without a tour of the Panasonic Center – the company’s corporate showroom that serves as a global communications hub to offer comprehensive information on the company and its offerings and vision for the future. In 2014, Panasonic launched a spectacular new showcase at the center called "Wonder Life-BOX 2020". The new exhibition space was designed to present Panasonic’s vision for a quality lifestyle in 2020 utilizing cloud technologies, embodying the company’s brand slogan, "A Better Life, A Better World." Under the concept of "A quality lifestyle you will love - more comfortable, in your own way," visitors have been able to witness concepts such as: Smart locker services: Using shipping information stored on the cloud, the locker keeps the package inside refrigerated or frozen, supporting a 24-houra-day, 365-day-a-year delivery service, which eliminates the need for redelivery. Voice interactive ”My Professional Kitchen”: This kitchen makes cooking fun, with a display system showing recipe suggestions according to ingredients you have. You can cook while interacting with the system by voice and publish your recipes via the Web. Smart healthcare navigation: The bathroom has a mirror on the wall, a body composition monitor embedded in the floor and cameras. Just by standing in front of the mirror, health signs, such as weight, heart rate and scalp conditions, will be checked to help you stay healthy. Virtual makeup and fitting: The system detects skin conditions and gives makeup and antiaging tips. Sleeping quality check and comfortable sleep support: The bedroom is equipped with devices including a millimeter wave radar that checks if you are getting quality sleep and provides optimum lighting and air conditions to support good sleep. As mentioned in the facing interview, Panasonic is demonstrating “space solutions” incorporating much more than just devices, but entire concepts: as one learns by visiting the Panasonic Center in Tokyo, the idea is simply part of the company’s DNA. IFA International • Saturday 5 th & Sunday 6 th September 2015 25

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