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1、Panasonic Holdings CorporationReport on Financial Results and ESG for the year ended March 31,202201Panasonic HoldingsAnnual Report 2022Contents/Editorial PolicyAbout Panasonic GroupManagement Philosophy03Panasonic Group Past and Present05At a Glance07Medium-to Long-term StrategyValue Creation Proce

2、ss15Overview of Medium-to Long-term Strategy by Reportable Segment17Efforts to Thoroughly Strengthen Operational Capabilities19Top MessageMessage from the Group CEO09Strategies of FunctionsMessage from the Group CFO23Message from the Group CTO27Message from the Group CIO31Message from the Group CHRO

3、33Editorial PolicyThe Company positions its Annual Report as an integrated report incorporating management strategies for medium-to long-term growth,ESG(Environmental,Social and Governance)structures and initiatives,our operating results and financial position for the fiscal year under review,and ot

4、her information.It is published for the purpose of providing investors and a wide variety of stakeholders with a better understanding of our efforts to achieve sustainable growth.The report describes our value creation process and medium-to long-term strategies to achieve“an ideal society with afflu

5、ence both in matter and mind.”0202Panasonic HoldingsAnnual Report 2022Corporate DataFinancial Highlights55ESG Highlights57Segments Overview59Financial Review6110-year Financial Summary65Corporate Information67ESGMessage from the Chairperson of the Board35Message from an Outside Director36Corporate G

6、overnance37Structure and Initiatives37Composition of Board Directors and Audit&Supervisory Board Members43Directors,Audit&Supervisory Board Members,and Executive Officers45Initiatives towards Respect for Human Rights48Message from the Environmental Compliance Administrator/Initiatives towards the En

7、vironment49Employees Well-being Initiatives53Disclaimer Regarding Forward-looking StatementsThis Annual Report includes forward-looking statements about Panasonic Holdings Corporation(Panasonic HD)and its Group companies(the Panasonic Group).To the extent that statements in this Annual Report do not

8、 relate to historical or current facts,they constitute forward-looking state-ments.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 othe

9、r factors.Such risks,uncertainties and other factors may cause the Panasonic Groups 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

10、.Panasonic HD undertakes no obligation to publicly update any forward-looking statements after the date of this Annual Report.Investors are advised to consult any further disclosures by Panasonic HD in its subsequent filings under the Financial Instrument and Exchange Act of Japan(the FIEA)and other

11、 publicly disclosed documents.Such risks,uncertainties and other factors are not all-inclusive and further information is contained in the most recent English translated version of Panasonic HDs securities reports under the FIEA and any other documents which are disclosed on its website.About Panaso

12、nic Group03 Panasonic HoldingsAnnual Report 2022Management PhilosophyBrand slogan reflecting Group-wide purposeManagement PhilosophyIn an ever-changing world,we continue our efforts to make life simpler,safer,healthier,more enjoyable,and more sustainable.Efforts to help our customers live their best

13、.Basic Management ObjectiveRecognizing our responsibilities as industrialists,we will devote ourselves to the progress and development of society and the well-being of people through our business activities,thereby enhancing the quality of life throughout the world.Company CreedProgress and developm

14、ent can be realized only through the combined efforts and cooperation of each employee of our company.United in spirit,we pledge to perform our corporate duties with dedication,diligence and integrity.Seven PrinciplesContribution to Society,Fairness and Honesty,Cooperation and Team Spirit,Untiring E

15、ffort for Improvement,Courtesy and Humility,Adaptability,GratitudePanasonic Group Code of Ethics&Compliancehttps:/holdings.panasonic/global/corporate/about/code-of-conduct.htmlThe founder Konosuke Matsushita always believed that humanity would achieve true happiness only through both material and sp

16、iritual affluence.And based on this thought,he aimed to achieve“an ideal society with affluence both in matter and mind.”The“Basic Management Objective”is a concise expression of this mission,and as the heart of the Panasonic Groups management philosophy,it has been the foundation for all of our man

17、agement activities to date.“Live Your Best”is a new brand slogan that reflects our Group-wide purpose.Today,global environmental problems,including climate change,are the worlds top-priority issues that require urgent solutions.We at Panasonic are determined to unite our Group-wide efforts to square

18、ly address these issues.Furthermore,we will devote ourselves to supporting the well-being of individual people who live and work in society by helping them to pursue their own happiness and health in both mind and body,and thus live their lives with peace of mind and comfort.Therefore,we have decide

19、d to adopt this new brand slogan that encapsulates these aims.Going forward,the Panasonic Group will continue to contribute to solving social issues and the development of society based on our management philosophy,thereby paving a new way toward the future.We will also achieve sustainable growth an

20、d enhance corporate value.04About Panasonic Group04Panasonic HoldingsAnnual Report 2022Konosuke MatsushitaFounder(1894-1989)The Basic Business Philosophy of the Panasonic Grouphttps:/holdings.panasonic/global/corporate/about/philosophy.htmlAim to achieve“an ideal society with affluence both in matte

21、r and mind”based on the thinking of“Matter and mind as one”Become unrivaled in accomplishing valued work so that customers select Panasonics products&services Faithfully practice the customer-comes-first attitude,more than anyone elseProfit is a result:it should be returned to society&employees and

22、invested in the futureImplement“autonomous responsible management&employee entrepreneurship”Create a culture in which“employees can say what they have to say”and promote management through collective wisdomPromote management that“maximizes the potential of each employee”The Basic Business Philosophy

23、 of the Panasonic GroupThe following extracts from the management philosophy embodied by our founder Konosuke Matsushita,centered on the Basic Management Objective,Company Creed,and Seven Principles,summarize the mindset which all Panasonic Group employees should keep in mind when practicing work an

24、d management.About Panasonic Group05 Panasonic HoldingsAnnual Report 2022Panasonic Group Past and Present Life with electricity begins Expanding our business from wiring devices to a wide range of electrical product linesSold automotive batteries from the dawn of the automobile industry in Japan,con

25、tributing to the popularization of automobiles.Home appliances change the lifestyles of people Leading the rapid spread of elec-tronics to households in Japan and around the world Offering new value and new lifestyles Popularizing digital home appliances191819371968Founded in 1918 by Konosuke Matsus

26、hita,the Panasonic Group has expanded its business beyond the original wiring devices.In 1932,our founder set forth the Groups mission to achieve“an ideal society with affluence both in matter and mind,”and the Group has been working toward this goal.Through our business,which creates new value,we a

27、im to solve global environmental issues and 1950s1977191819962009Jet fan(highway tunnel ventilation system)businessDigital mobile phone“mova P201 HYPER”VHS home video “MacLord”NV-8800Delivered a highway tunnel ventilation system,which was subsequently combined with a dust collection system to purify

28、 the environment inside the tunnel.Launched the worlds first home fuel cell,ENE-FARM,paving the way for the use of hydrogen energy in the home.The worlds lightest(at the time),a huge hit,and a revolution in communication.The first VHS home video unit,which became the standard for recording TV progra

29、ms.Established the Matsushita Electric Housewares Manufacturing Works(todays Panasonic Holdings Corporation),and sold its first product,the attach-ment plug,at a low price to ordinary households,contributing to the popularization of electrical appliances.Launched washing machines,black and white TVs

30、,refrigerators,and other products,helping to reduce the burden of housework and make life easier.06About Panasonic Group06Panasonic HoldingsAnnual Report 2022Realization of a Realization of a carbon-neutral societycarbon-neutral societyIncreased CO2 reduction impactRealization of a Realization of a

31、recycling-oriented societyrecycling-oriented societyRecycling-oriented manufacturing and product longevityEEnviron-mentSSocialReturning to our founding mission,we strive to realize“an ideal society with affluence both in matter and mind”At Panasonic,we work each day to enrich peoples lives and help

32、move society forward.And we are as committed as ever to pursuing new ways to fulfill this mission.Leading the way to“a better life”and “a sustainable society”2022contribute to the well-being of people in their“lifestyle”and“workstyle”in other words,to a comfortable,safe,healthy,and happy state both

33、in mind and body and to achieve“an ideal society with affluence both in matter and mind.”20102014Commenced the mass production of lithium-ion batteries for hybrid electric vehicles helping to popularize eco-cars.Developed a“smart town”utilizing our IT and environmental technologies as an example of

34、eco-friendly urban development.Contribute to solving global environmental issuesSupport health&well-being of people both in mind&body in“lifestyle”&“workstyle”Well-being in lifestyleWell-being in lifestyleMore room in ones mind and healthier lifestyleWell-being in workstyleWell-being in workstyleSaf

35、e,comfortable,and worker-friendly workplaceIn this segment we provide products and services globally for a variety of settings from peoples homes to retail stores,offices,and public spaces,including home appliances,HVAC(heating,ventilation,and air conditioning),lighting,electrical equipment,and comm

36、ercial equipment such as refrigerator and freezer display cases.We mainly operate the home appliance and residential equipment businesses,not only in Japan but globally,especially in China and Northeast Asia.In the HVAC,refrigerator,and refrigerator and freezer display case businesses,we are continu

37、ing efforts to reduce CO2 emissions through technologies such as energy saving and natural refrigerants.We will also contribute to improving the quality of living from the perspectives of people,society,and the planet,in order to achieve a sustainable society.In this segment we will continue to prov

38、ide new value to vehicles and mobility experience under the slogan“Heartmotive,”a coined word that combines“human emotion(heart)”and“automotive.”This slogan expresses our wish to continue creating inspiring encounters.By com-bining the technologies honed through development and manufacturing in our

39、automotive business with the Groups knowledge of people and lifestyles,and with comfort,safety and security,and the environment as keywords,we provide a wide variety of unique automotive products,deployed on systems and devices.We also make proposals of solutions using our automotive products.In add

40、ition,with regard to initiatives toward the environment,we are promoting the expansion of our products that contribute to automobile electrification and weight reduction and products that use recycled materials,as well as energy reduction in our business activities and recycling-oriented manufacturi

41、ng.In this segment we are contributing to the management reforms of B2B customers by staying close to and bringing innovation to their diverse gemba(operational frontlines).For example,customer supply chains(the gemba for manufacturing,logistics,and retail)are plagued by labor shortages,but operatio

42、nal processes are becoming more complex in order to respond quickly to the diversifying needs of consumers.To address such issues of our customers,we work to optimize operational frontlines and improve productivity by connecting software and technology to powerful hardware,and by incorporating our k

43、nowledge and know-how cultivated through manufacturing into our services.We also aim to realize a sustainable society by contribut-ing to the reduction of disposal loss and energy consumption.In this segment we provide electronic and industrial devices for a wide range of applications,including indu

44、stry,information and communica-tion,automotive,and more.By developing products with outstanding features backed by our unique material and process technologies,we contribute to solving difficult social issues such as labor shortages in manufacturing,the data explosion caused by the progress of the i

45、nformation society,and environmental and safety requirements in the mobility society.We also actively work to achieve carbon neutrality in our production activities and reduce our environmental impact through the evolution of product performance,thereby contributing to the realization of a sustainab

46、le and prosperous society.In this segment we globally provide automotive batteries that support mobility electrification and industrial batteries that support safe and secure social infrastructure such as data centers and home energy storage,medical equipment,and meters,as well as dry batteries that

47、 support convenient and comfortable day-to-day living.On the envi-ronmental front,we aim to contribute to the environment by reducing CO2 emissions not only through our own business activities,but also through the electrification of society(transition to electric power),particularly in the automotiv

48、e sector.By maximizing the value we provide to society in the form of security,safety,and low environmental impact,we will contribute to a society that realizes enriched lifestyles and environmental sustainability.About Panasonic Group07 Panasonic HoldingsAnnual Report 2022At a GlanceCockpit systemE

49、lectronic component mounting machine(NPM-DX)Industrial motorsMulti-layer circuit board materialsFZ-G2 series high-performance rugged tablet PCRelayPT-RQ35K series high-brightness projectorDry batteriesView of head-up display(Photo courtesy of Toyota Motor Corporation)Vehicle camera moduleLifestyleAu

50、tomotiveConnectIndustryEnergyFront load washing machineAir-conditionerLightingWiring devicesShowcaseCapacitorsStorage battery systemsCylindrical lithium-ion batteries for in-vehicle use(2170)Primary lithium batteriesReportable segmentsOverview of businesses08About Panasonic Group08Panasonic Holdings

51、Annual Report 2022Living Appliances and Solutions CompanyCold Chain Solutions CompanyElectric Works CompanyOthersAutomotive Cockpit SystemsAutomotive Electronics SystemsOthersAvionicsProcess AutomationMedia EntertainmentMobile SolutionsGemba SolutionsBlue YonderControl DevicesFA SolutionsElectronic

52、DevicesElectronic MaterialsOthersIn-vehicleIndustrial/ConsumerHeating&Ventilation A/C CompanyBusinesses with Sales DisclosedLifestyle(Panasonic Corporation)Living Appliances and Solutions Kitchen Appliances Laundry Systems and Vacuum Cleaner Beauty and Personal CareHeating&Ventilation A/C Heating an

53、d Cooling Solutions Ecology SystemsCold Chain SolutionsElectric Works Lighting Energy SystemsChina and Northeast Asia CompanyOtherAutomotive(Panasonic Automotive Systems Co.,Ltd.)Automotive Cockpit Systems Automotive Electronics SystemsBusinesses with Sales DisclosedConnect(Panasonic Connect Co.,Ltd

54、.)Avionics Process Automation Media Entertainment Mobile Solutions Gemba Solutions Blue YonderIndustry(Panasonic Industry Co.,Ltd.)Control Devices FA Solutions Electronic Devices Electronic MaterialsEnergy(Panasonic Energy Co.,Ltd.)In-vehicle Industrial/ConsumerOther Entertainment&Communication Hous

55、ingEliminations and AdjustmentsElimination of intersegment transac-tions,adjustments of profits and losses not attributable to any segments,and adjustments of consolidations,etc.Fiscal 2022 net sales composition ratio(Reclassified in conformity with the business segmentation for fiscal 2023)Composit

56、ion of Voluntarily Disclosed BusinessesFY2022Consolidated Net Sales7,388.8billionNotes 1:Net sales composition ratio is calculated by dividing the sales of each reportable segment by the total of reportable segment sales(excluding“Other”and“Eliminations and Adjustments”).2:Living Appliances and Solu

57、tions Company,Heating&Ventilation A/C Company,Cold Chain Solutions Company,and Electric Works Company include part of sales and profit of China and Northeast Asia Company.3:“Others”is not shown in the Connect and Energy segments in the above pie chart because the amounts are negative due to the effe

58、ct of eliminations and adjustments.Automotive15%Industry16%Connect13%Energy11%Lifestyle45%Top Message09 Panasonic HoldingsAnnual Report 2022Message from the Group CEOToward“an ideal society with affluence both in matter and mind”Enhancing competitiveness and improving corporate value Yuki KusumiRepr

59、esentative DirectorPresident Group CEOUnder the new Group structure launched in April 2022,we have started our new medium-to long-term strategy.With this new strategy,we aim to contribute to solving global environmental issues and to support the health and well-being of people around the world,both

60、in mind and body,toward achieving“an ideal society with affluence both in matter and mind.”This will be done by enhancing competi-tiveness in all of our businesses,from the viewpoints of both“strategy”and“operational capability,”which are indispensable to each other.The cash generated,as a return on

61、 these contributions,will be allocated to investments in ways that enhance competitiveness.This will allow us to make further contributions and improve our ability to generate cash.In this way,I am determined to enhance corporate value in the medium-to long-term perspective.Since dialogues with our

62、shareholders and investors are extremely important,I will make use of your valuable opinions and suggestions on how our management can pursue enhanced corporate value.As we unite our best efforts as a Group,I ask for your continued understanding and support.Start of the new structureOn April 1,2022,

63、the Panasonic Group formally launched the“operating company system,”in which each operating company is an independent legal entity.We call this system an“operating company system”because operating companies play the main role.Each operating company will enhance competitiveness through implementing t

64、horough“autonomous responsible management,”adopting new systems that enable us to compete with spe-cialized companies in each industry,instead of simply imple-menting Group-wide systems and processes,and continuously taking up challenges proactively.Furthermore,each operating company aims to make co

65、ntribu-tions to society and customers in the industry it addresses,with unrivaled speed and scale.Panasonic Holdings Corporation aims to strengthen its Group-wide management foundation from a long-term perspec-10Top Message10Panasonic HoldingsAnnual Report 2022tive,in addition to its role of a holdi

66、ng company.To be specific,there are five roles.The first role is to thoroughly implement our“Basic Business Philosophy.”This Basic Business Philosophy defines our basic way of thinking in implementing the management philosophy and its core elements“Basic Management Objective,”“Company Creed,”and“Sev

67、en Principles”established by our founder Konosuke Matsushita.To help all employees return to the basics and fully understand their essence,in 2021,we conducted a major revision for the first time in approximately 60 years.I personally took part in this endeavor as a member of the editing team.For ea

68、ch operating company to thoroughly implement“autonomous responsible management,”it is funda-mental that each employee implement the Basic Business Philosophy,so this role,among all five roles,is tackled as the highest priority.The second role is to ensure and support enhanced competi-tiveness throug

69、h Green Transformation(GX),aiming toward our long-term environmental vision,“Panasonic GREEN IMPACT,”Digital Transformation(DX),aiming for greater efficiency in operational processes,and “Gemba(operational frontlines)innovation”initiatives that eliminate wastefulness in the manufacturing gemba and s

70、upply chain by the full use of AI and IT,leading to strength-ened operational capabilities.The third role is to attain management that maximizes the potential of each employee,an essential part of enhancing competitiveness,and to build the needed platforms.The Panasonic Group has approximately 240,0

71、00 employees glob-ally,with diverse personalities and talents.The work environ-ment and corporate culture will be transformed so that each employee can take up challenges.To further generate opportu-nities in major roles and in taking up challenges,we will lever-age the Groups wide-ranging capabilit

72、ies and continue the active exchange of human resources beyond operating companies.The fourth role is to make“selection&concentration”deci-sions in cases where the operating companies are unable to make such decisions,or to promote investment for growth in opportunities where such investment exceeds

73、 the operating companies own funds.In principle,each operating company will play the major role in developing its own business.However,as a holding company,we will take measures toward our Groups comprehensive development when necessary.The fifth role is to respond effectively to critical risks from

74、 a Group-wide perspective.This includes thorough implementation of financial discipline,safety and compliance,and a Business Continuity Plan(BCP).Roles of Panasonic Holdings Corporation1.Thoroughly implement Groups Basic Business Philosophy2.Help enhance competitiveness to make greater contributions

75、 to society&customers:(GX,DX,Gemba Innovation,Design Management,Brand Management,various accelerated innovations)3.Help maximize the potential of each employee and build needed platforms4.Decide“selection&concentration”beyond operating companys capability,invest in growth beyond operating companys o

76、wn funds5.Respond effectively to critical risks from Groups perspectiveLooking back on fiscal 2022 and challenges to take upSince I assumed the position of CEO in April 2021,I have been engaged in management while setting two years,fiscal year ended March 2022(fiscal 2022)and fiscal 2023,as the peri

77、od to focus on enhancing competitiveness to make larger contribu-tions toward society and customers,and to further improve profitability.Looking back on the first year,fiscal 2022,we took a step forward with progress in gemba innovation such as improv-ing productivity,and with gradually internalizin

78、g the practice of making constant improvements.However,in terms of the speed of enhancing competitiveness,there is still room for improve-ment.During fiscal 2023,the second year,we will further accel-erate our efforts.As for the challenges we should take up,first,we need to take a long-term and cust

79、omer perspective in formulating our strate-gies.In a rapidly changing world,we should envisage major social changes instead of simply looking at a period of two to three years.What is best for our customers?And how can we translate our great mission into actually achieving our goal by back-casting f

80、rom those changes?Second,we should improve our adaptability to changes and make our management speedier,to an outstanding level.In order to do this,we must eliminate wastefulness,stagnation,and rework at our business frontlines,so that all of our employ-ees can focus on truly value-added activities.

81、Furthermore,it will be necessary to create a system and corporate culture that maximizes the potential of each employee.The new medium-to long-term strategy started in fiscal 2023 has been formulated based on such challenges we need to take up.New medium-to long-term strategyFuture direction for the

82、 Panasonic GroupOur founder proclaimed the mission of achieving“an ideal society with affluence both in matter and mind.”Toward this Groups mission,today we must contribute to solving global environmental issues and support the health and well-being of people around the world,both in mind and body,i

83、n their“life-Top Message11 Panasonic HoldingsAnnual Report 2022Message from the Group CEOstyle”and“workstyle.”By becoming unrivaled in accomplishing valued work,we can make great contributions.Accordingly,we will be able to return the generated profit to society,starting with shareholders,and adequa

84、tely reward our employees.Moreover,we can make investments toward further contributions.We aim to implement such a cycle that leads to thoroughly enhancing our competitiveness.This is precisely about conducting sustainable management,while we also make our utmost efforts toward achieving a sus-taina

85、ble society:“an ideal society with affluence both in matter and mind.”The path will not be smooth,but I am confident that we can achieve this through the unrivaled competitiveness of our contributions to our customers and society.Panasonic GREEN IMPACTToward achieving“an ideal society with affluence

86、 both in matter and mind,”contributing to solving global environment issues,climate change in particular,is one of the tasks we must take on with the highest priority.In January 2022,we announced the Groups long-term envi-ronmental vision:“Panasonic GREEN IMPACT.”We have com-mitted ourselves to“ACT”

87、to reduce CO2 emissions throughout our overall value chain,including emissions from the use of sold products at the customer side,and make a positive impact to increase size of contribution in CO2 reductions for society through our wide range of business activities.As a numerical target,we announced

88、 our aim to create an impact that reduces CO2 emissions by more than 300 million tons by 2050 through the entire Groups business activities(300 million tons is equivalent to approximately 1%of the current global emissions).Setting this target at the center of our medium-to long-term strategy,we will

89、 make the strategic invest-ments and take actions for our contributions going forward.There are three parts to this major effort.The first part,“OWN IMPACT,”is emissions reduction in our own value chain,which is 110 million tons.We will achieve net-zero emissions through our energy-saving initiative

90、s,in addition to the effect of decar-bonization occurring in society,which will progress toward 2050.This includes“virtually net-zero CO2 emissions at all operating companies by 2030,”to which we committed ourselves in May 2021.The second part,“CONTRIBUTION IMPACT,”is“avoided emissions”(contribution

91、 to reducing CO2 emissions for society)of 100 million tons through reduced consumption at the cus-tomer side with our current businesses.We will make contribu-tions through such areas as the expansion of EVs with our automotive batteries,supply chain software,and air quality&air-conditioning busines

92、ses.The third part,“FUTURE IMPACT,”is“avoided emissions”of 100 million tons to impact energy transformation in society through the creation of new technolo-gies and businesses such as hydrogen energy.Taking all three parts together,we aim to achieve an overall reduction impact of more than 300 milli

93、on tons by 2050.As a milestone toward 2050,by 2030,we will aim for approxi-mately 100 million tons of avoided emissions.However,cur-rently there is no standard to calculate“avoided emissions.”As the formulation of a standard proceeds,we may need to make revisions accordingly.Nevertheless,we will mak

94、e efforts to reach each of these targets one by one,so that we can contrib-ute to an early achievement of a carbon neutral society.Medium-term management indicators(KGIs)and strategic investmentsIn the past,we had set single year-based sales and operating profit margins as management indicators.Howe

95、ver,setting short-term profit targets led to the business frontlines holding back necessary investments for the future.As a result,I believe that in some cases,our competitiveness fell behind our peers.Therefore,we have set cumulative operating cash flow for the three-year period as one of our mediu

96、m-term management indicators.Cumulative operating cash flow is an indicator of our cash-generation capability as a Group,which is essential for tax payments,dividends,employees salaries,and sufficient invest-ments in our future contributions to society.More specifically,we aim for 2.0 trillion yen o

97、f cumulative operating cash flow over the three years of fiscal 2023 to fiscal 2025,with a precondition of achieving 1.5 trillion yen of cumulative operating profit over the same period.In addition,we have set ROE,a measure of capital efficiency,as another medium-term management indica-tor.Our targe

98、t is to achieve a level of 10 percent or more by fiscal 2025.To achieve these targets,we must thoroughly enhance competitiveness at each business.In this regard,for instance,during the past two years,China and Northeast Asia Company managed to decrease manufacturing costs by over 20 percent in home

99、appliance products as a part of their competitiveness-enhancement initiatives.This gave us the confidence to compete against our peers in pricing,while also securing profit,even in a very competitive market like China.This is just one example showing us there is still a lot of room for improvement i

100、n cost competitiveness and profitability as a Group.Regarding investments going forward,in principle,each operating company will make investments with the cash gener-ated through its own business.Furthermore,while maintaining financial discipline,we will also make strategic investments as a Group.Un

101、der the condition of cumulative operating cash flow of 2 trillion yen,a total of 600 billion yen in three years will be invested:400 billion yen in“growth areas,”which are automotive battery,supply chain software,and air quality&air-conditioning,as well as 200 billion yen in“technology pillars.”12To

102、p Message12Panasonic HoldingsAnnual Report 2022Investments for growthAutomotive battery areaFrom the global environment perspective,it is essential that the affordability and safety level of EVs far surpass those of cars with internal combustion engines.To reach this target,we will make Group-wide i

103、nvestments to thoroughly and rapidly strengthen battery capacity,safety,and cost competitiveness of our automotive batteries.More specifically,we will commercialize new high-capacity cells with a 46-mm diameter,at the fastest speed within the industry,by refining our high-quality and safer automotiv

104、e battery technologies,as well as achieving industry-leading cost competitiveness.First,we will verify the productivity of the highly efficient production line at our Wakayama factory in Japan,with mass production set to start in fiscal 2024.In addi-tion,we applied to the incentive program that the

105、State of Kansas established to attract investments,and received the states approval in July 2022.The construction of a manufactur-ing facility in Kansas,USA.,is to be decided upon assessing the progress and outlook of enhanced competitiveness in opera-tional capabilities,including manufacturing.And

106、from a sustainability perspective,it is essential to consider the use of precious and limited materials.With our lithium-ion batteries,we have already achieved a significant reduction of cobalt,a rare and indispensable metal.Our battery contained less than 5 percent cobalt as of 2021.Moreover,we hav

107、e already completed development of technologies to produce cobalt-free cells,and we are nearly at the stage of being able to start their mass production according to custom-ers needs.Supply chain software areaDue to the declining working population,we are facing labor shortage issues at the gemba of

108、 manufacturing and logistics industries.Consequently,there are strong demands for higher efficiency and standardization.Therefore,solutions that autono-mously improve the overall supply chain are necessary.Even if solutions run autonomously,there is a limit to how swiftly we can optimize the gemba,s

109、ince they require a higher level of skills.Therefore,such solutions are needed to enable people at the gemba to eliminate wastefulness and stagnation in the overall supply chain without requiring special knowledge.To achieve these aims,we will offer a wide range of software solution packages and opt

110、imize operational processes through the collection,accumulation,analysis and utilization of various data at the gemba.With these solutions,we will contribute to optimizing the overall supply chain and improving the efficiency of management for our customers.In addition,the accuracy of autonomous sup

111、ply chain management by Blue Yonders AI will be enhanced,and their software solutions will also continue to evolve.At the same time,we will contribute to the reduction of negative environmental impact through energy savings,which can be achieved by eliminating wastefulness and stagnation in the over

112、all supply chain.With greater business opportunities in the area of supply chain software,the business conditions face drastic changes in the competitive environment,with tougher competition in invest-ments and increased global mobility of highly skilled software engineers.Therefore,to accelerate it

113、s growth globally by utiliz-ing the capital markets,we have begun preparations for a potential stock exchange listing of our supply chain manage-ment business,as announced on May 11,2022.Air quality&air-conditioning areaDue to COVID-19,there has been growing demand for ways to alleviate peoples anxi

114、ety about bacteria and viruses.Moreover,since air-conditioning equipment consumes a large portion of the global electric power,we can make huge contributions to the global environment,even as people enjoy clean and safe air as well as a comfortable lifestyle.To achieve this goal,Panasonic will conti

115、nue to develop such unique technologies as“nanoe X,”“Ziaino,”and humidity control technologies.In addition,Panasonic will develop an advanced coordinated system that integrates air quality and air-conditioning to manage both comfort and energy savings.Furthermore,we will make investments,mainly in E

116、urope,China and Japan,with the following purposes:establish foundations for sales,engineering and services to continuously offer customers clean,safe and environ-ment-friendly air,and expand our lineup of advanced coordinated products.By integrating our customer contacts with our knowledge and techn

117、ologies,accumulated in over 100 years of R&D,we will“Vitalize the future with air.”Top Message13 Panasonic HoldingsAnnual Report 2022Message from the Group CEOInvestments in technology pillarsToward achieving“an ideal society with affluence both in matter and mind,”we will strengthen the Group-wide

118、technology pillars that contribute to the environment and well-being in“lifestyle”and“workstyle.”The first pillar is hydrogen energy,with the development of high-efficiency fuel cells already underway.We will apply this to the next-generation residential fuel cell system“ENE-FARM”and the pure hydrog

119、en fuel cell generator“H2 KIBOU.”Through these efforts,we will contribute to the acceleration of decarbon-ization in the power-generation field.Moreover,we aim to estab-lish energy-management technologies that link distributed energy located in various facilities such as houses and factories,power s

120、torage systems,and EVs.Accordingly,we will improve the effective use of electric power and contribute to clean energy transformation for society.Another pillar,the Cyber Physical System(CPS),includes technologies that rapidly enable users to find and offer optimum solutions for issues in“lifestyle”a

121、nd“workstyle”by linking the real“physical”world and“cyber space.”An example is sensing the activities at various“physical”workstyle gemba sites,such as manufacturing,logistics and distribution,and then inputting the acquired data in“cyber space”for analysis and simulation.In this way,we can come up

122、with the optimum solution to elimi-nate wastefulness and stagnation at the gemba and make improvements.In addition,we are trying to better understand what our customers really need in their actual lifestyles through the usage of our products in various situations.Using AI and software technologies w

123、ill help us to understand this,and we aim to bring better value in lifestyle experience with our prod-ucts and services.To strengthen Group-wide technology pillars,we will also be proactive in our search for new technologies such as investing in ventures.Group-wide technology pillarsPCPASPEACPHSPCOP

124、IDPEC Highly relevant RelevantTechnologies contributing to“environment”Functional materials/Materials informaticsPower electronicsHydrogen energy devices/DERMS*CPS/AITechnologies contributing to well-being in“lifestyle”&“workstyle”Image sensing/RoboticsSimulation/Model-based developmentBiosensing/Em

125、otion recognition/BiotechnologyCommon software platformSoftware/communication/security*Distributed Energy Resource Management SystemsNote:Labels on horizontal axis indicates abbreviations of seven operating companies.Please refer to pages 15 and 16 for details.Brand sloganOur founder,Konosuke Matsus

126、hita,aimed toward prosperity in both matter and mind throughout his life.Back in 1932,he recognized the mission of a company as“the true mission of industrialists:only after there is spiritual peace of mind and a limitless supply of material goods will humanity achieve true happiness.”He set his aim

127、 to achieve this with the so-called“250-year plan.”To always remind all of us of this mission,we have decided to adopt a new brand slogan,“Live Your Best.”This slogan also embodies my hope that each employee will turn their thoughts to each customers happiness.Toward what we aim to be in 2030,everyo

128、ne at all operating companies of the Panasonic Group is determined to continue efforts to help our customers live their best,offer contributions to become a valued company needed by society,and thus enhance corporate value from the perspective of stakeholders as well as enterprise value in terms of

129、financial measures.Finally,I would like to ask for your continued support of Panasonic.14Top Message14Panasonic HoldingsAnnual Report 2022Group CEO Kusumi has announced a policy of focusing on strengthening“operational capabilities,”which he identifies as a key component of enhancing competitiveness

130、,alongside“strategy.”Kusumi defines operational capabilities as the elimination of bottlenecks that impede the five“Capabilities toward change”and“Speediness”as shown in the figure below,and takes the lead in encouraging business managers to thoroughly work on the strengthening of operational capabi

131、lities.In April 2022,Panasonic established the Operational Strategy Department as an organization reporting directly to the Group CEO(see“Efforts to thoroughly strengthen operational capabilities,”p.19).Top of figureIn addition to improving productivity and shortening lead times by thoroughly elimin

132、ating wastefulness at production sites,the most important factor in generating cash is to continue to deliver products to customers in the right quantities at the right time,with no shortages or excess inventory.To this end,we will work with suppliers to reduce procurement lead times and improve our

133、 response to production fluctuations.Bottom of figureIn order to make unrivaled contributions through our products,we must produce highly competitive products in terms of function,quality,and cost.This requires identifying the changing needs of society and the market earlier than our competitors,imp

134、roving our development efficiency,shortening our development lead times,and syncing the commercialization process with the use of the latest materials and technologies.Operational capabilitiesColumn1Column2Active communication with employeesAt the headquarters of Panasonic Holdings Corporation,there

135、 are no more offices separately set up for the Group CEO and senior management.Group CEO Kusumi and other senior managers sit at nearby desks to facilitate daily interactions with employees.They are encouraged to approach Kusumi at any time and say what needs to be said.Kusumi also uses internal soc

136、ial media tools to blog about his own daily thoughts and feelings.Employees from all over the world write messages to his blog posts,and Kusumi responds to the messages in his own words,ensuring two-way and flat communication with employees.Optimal operational capabilities *Assumes manufacturing ope

137、rations during normal timesSuppliersMarket(customers)Cash generating capability(profitability)Eliminate stagnation&wastefulness shorten lead timesValue creation capability(growth potential)4.Ability to turn insights about changes into actual productsProduction/salesStrengthen operational capability

138、in overall supply chain2.Response to production fluctuations1.Response to demand changes5.Response to new materials/technologies3.Response to changes in needsProducts planning/development and designMedium-to Long-term Strategy15 Panasonic HoldingsAnnual Report 2022Value Creation ProcessIn order to a

139、chieve“an ideal society with affluence both in matter and mind,”Panasonic will make the most of the management resources entrusted to us by society and work on enhancing competitiveness in terms of both strategy and operational capability under the Basic Business Philosophy of the Panasonic Group.We

140、 will then return the profits received as a result of our contributions Implementation of Basic Business PhilosophyEnhancing competitivenessStrategyValue ProvidedManagement Resources*2Corporate activities based on our Basic Business PhilosophyIdeal society with affluence both in matter and mindCorpo

141、rate GovernancePanasonic Corporation(Lifestyle)Automotive SystemsEntertainment&CommunicationSeven operating companies*1Strategic investment(investment for growth areas,investment in technology pillars)2.Response to production fluctuationsLong-term perspectiveStructural advantageBusiness model5.Respo

142、nse to new materials/technologies*1 Of the seven operating companies,the five companies whose sales volume accounts for 10%or more of total sales are reported as“segments.”*2 Figures are as of the end of March 2022.Figures for Natural Capital are an annual result of FY2022.*3 Research by Interbrand,

143、a branding specialist*4 Figures from photovoltaic,wind,and biomass sources including the amount of renewable energy adopted to manufacturing and non-manufacturing sites of own group.Heat pumps not included.Contribute to solving global environmental issuesRealization of a carbon-Realization of a carb

144、on-neutral societyneutral societyIncreased CO2 reduction impactRealization of a recycling-Realization of a recycling-oriented societyoriented societyRecycling-oriented manufacturing and product longevityEEnviron-mentGGover-nanceContributionContributionProfitProfitSuppliersThorough implementation of

145、Basic Business PhilosophySupport for enhancing competitivenessSupport for maximizing the potential of each employee and build needed platformsPanasonic Holdings(PHD)Cumulative operating CF:2.0 trillion yen(FY23-FY25)ROE:10%or more(FY25)Cumulative OP:1.5 trillion yen(FY23-FY25)Medium-term Medium-term

146、 Management Management Indicators:KGIIndicators:KGIBrand SloganBrand Slogan(PC)(PAS)(PEAC)Intellectual Capital Intangible assets such as technology and know-how:685.3 billion Number of intellectual property holdings:more than 100 thousandMedium-to Long-term StrategyAnnual Report 202216Panasonic Hold

147、ingsAnnual Report 2022back to society,to our employees,and to further useful investments.As we continue to pursue this cycle and strengthen our competitiveness,we will further increase our contributions and enhance our corporate value.Implementation of Basic Business PhilosophyEnhancing competitiven

148、essOperational CapabilitiesIdeal society with affluence both in matter and mindCorporate GovernanceHousing SolutionsConnectIndustryEnergySeven operating companies*1Strengthen the management foundation of the Group as a whole1.Response to demand changesFive capabilities toward change (1 through 5)spe

149、ediness3.Response to changes in needs*1 Of the seven operating companies,the five companies whose sales volume accounts for 10%or more of total sales are reported as“segments.”*2 Figures are as of the end of March 2022.Figures for Natural Capital are an annual result of FY2022.*3 Research by Interbr

150、and,a branding specialist*4 Figures from photovoltaic,wind,and biomass sources including the amount of renewable energy adopted to manufacturing and non-manufacturing sites of own group.Heat pumps not included.SSocialSupport health&well-being of people both in mind&body in“lifestyle”&“workstyle”Well

151、-being in lifestyleWell-being in lifestyleMore room in ones mind and healthier lifestyleWell-being in workstyleWell-being in workstyleSafe,comfortable,and worker-friendly workplaceContributionContributionProfitProfitMarket (customers)Panasonic Operational Excellence(PEX)Support for maximizing the po

152、tential of each employee and build needed platformsSelection and concentration beyond operating companys capability/Investment in growth beyond operating companys own fundsResponding effectively to critical risks from Groups perspectivePanasonic Holdings(PHD)4.Ability to turn insights about changes

153、into actual productsTwo wheels of Two wheels of competitivenesscompetitivenessCumulative operating CF:2.0 trillion yen(FY23-FY25)ROE:10%or more(FY25)Cumulative OP:1.5 trillion yen(FY23-FY25)(PHS)(PCO)(PID)(PEC)Intellectual Capital Intangible assets such as technology and know-how:685.3 billion Numbe

154、r of intellectual property holdings:more than 100 thousandMedium-to Long-term Strategy17 Panasonic HoldingsAnnual Report 2022For details on medium-to long-term strategy for each operating company,please refer to the“Panasonic Group IR Day 2022”documents.https:/holdings.panasonic/global/corporate/inv

155、estors/presentations/ir-day-2022.htmlThe formula for calculating the ROIC of each operating company is as follows.Overview of Medium-to Long-term Strategy by Reportable SegmentPanasonic Automotive Systems Co.,Ltd.,in order to address business challenges such as fluctuations in automobile production

156、and soaring prices of semiconductor and other materials,will place top priority on strengthening development and mass production operations to improve profitability and enhance its ability to respond to changes.In the medium to long term,the company will focus on“Automotive Cockpit integrated soluti

157、on”and“EV innovations”by leveraging its knowledge of people and their lifestyles,and contribute to technological innovation in automobiles and the spread of EVs.Furthermore,the company will work to commercialize solutions that increase the value of traveling by car(mobility)and to create service bus

158、inesses.The company will also contribute to the environment as a“source of competitive-ness”and as a basis for its business activities,thereby contributing to the reduction of CO2 emissions.Aiming to Create a“Sustainable Mobility Society”Automotive(Panasonic Automotive Systems Co.,Ltd.)Panasonic Cor

159、poration,aiming to manage from a long-term perspective,has defined a mission and vision as its corporate Purpose.The mission is“Life tech&ideas:For the wellbeing of people,society and the planet,”and the vision is“We are the best partner of your life with human centric technology and innovation.”Und

160、er these banners,the company will move forward with its transformation into an enterprise with an overwhelming presence in the Lifestyle area.The long-term strategy for the year ending March 31,2031(fiscal 2031)has identified seven priority businesses from the perspectives of business position(marke

161、t growth potential)and competitive advantage(industry position and growth drivers):HVAC system,overseas electrical construction materials,energy solutions,CO2 refrigeration system,electrical construction materials in Japan,display cases,and home appliances in Japan.In each of these seven priority bu

162、sinesses,the company aims to achieve the No.1 or No.2 market share in the industry by 2030 as the customers preferred choice,thereby transforming its business portfolio.And through this business portfolio reforms,the company will halve CO2 emissions in its own value chain and accelerate the impact o

163、f its emission reduction contribution to society.The medium-term strategy for fiscal 2025,which is a stepping stone towards 2030,is focused on strategic resource allocation,such as allocating cash generated mainly through operating cash flows to investment in growth businesses and investment to stre

164、ngthen operational capabilities.At the same time,as a response to the risk of deterioration in the business environment,such as raw material price hikes and exchange rate fluctuations,the company will promote cost structure reforms such as a company-wide procurement review and a review of shipping p

165、rices.Furthermore,with regard to ESG implementation in the current medium term,the company is promoting its GX strategy by appointing a CGXO*1,accelerating promotion of DEI*2 to maximize individual and organizational performance,and strengthening corporate governance by inviting outside directors,et

166、c.*1 Chief Green Transformation Officer *2 Diversity Equity and InclusionBecoming an Enterprise with an Overwhelming Presence in LifestyleLifestyle(Panasonic Corporation)The Panasonic Group has transitioned to an operating company system in which each business operates with a high degree of inde-pen

167、dence and has reorganized its reportable segments into the following five segments:Lifestyle,Automotive,Connect,Industry,and Energy.Using cumulative operating CF and ROIC as medium-term management indicators(KGIs:key goal indicators),the individual operating companies are working to thoroughly enhan

168、ce their business competitiveness with the goal of making contributions to society,including in the area of the environment.Net Operating Profit after TaxesOperating Profit (1 (Income Taxes/Profit before Income Taxes)Invested CapitalROIC=Equity+Interest-bearing Debt*Average at the beginning and the

169、end of fiscal yearMedium-to Long-term StrategyAnnual Report 202218Panasonic HoldingsAnnual Report 2022Panasonic Connect Co.,Ltd.consists of hardware-based“core businesses”and software-based“growth businesses.”In the core businesses,which have the worlds top market share in products such as mounting

170、machines and in-flight entertainment systems,the company will concentrate on highly profitable business lines and further specialize in hardware.In the growth businesses,including Blue Yonder,the company will promote a shift to SaaS-based business models and strengthen its cloud-based software solut

171、ions.The companys goal is to be a sustainable,highly profitable business entity centered around both core and growth businesses and a unique partner that makes diverse and multi-layered contributions to solving the management issues of customers.Contributing to Solving Management Issues of B2B Custo

172、mers through Core and Growth BusinessesConnect(Panasonic Connect Co.,Ltd.)Panasonic Industry Co.,Ltd.is focused on three areas where social need is strong and continuous evolution is required:factory labor-savings,information&communication infrastructure,and automotive CASE(Connected,Autonomous,Shar

173、ed,and Electric).The core businesses with high growth potential and profitability in which the company will concentrate its efforts are FA Solutions,Electronic Materials,EV Relays,and Capacitors.Furthermore,the company aims to improve profitability by growing its core businesses,which accounted for

174、50%of sales in fiscal 2022,to 70%in fiscal 2031.The company will also promote initiatives towards the environment such as net-zero CO2 emissions(Scope 1 and 2)in fiscal 2031 by reducing its environmental impact from the perspectives of both its own manufacturing and the develop-ment and delivery of

175、products for customers.Focus on Three Areas:Factory Labor-savings,Information&Communication Infrastructure,and Automotive CASE.Industry(Panasonic Industry Co.,Ltd.)Panasonic Energy Co.,Ltd.will achieve sustainable growth based on the two pillars of“growth potential”in the automotive business,which i

176、s rapidly expanding due to the progress of electrification,and“profitability”in the industrial and consumer businesses,which support social infrastructure and are expected to experience stable demand.The company will also maximize its contribution to society through the envi-ronmental contribution a

177、ctivities of these businesses.In the automotive sector,the company will focus on the North American market,where it has a strong business foundation,and promote business growth by commercializing its new battery(4680 cells).In the industrial and consumer sectors,the company will strengthen its struc

178、ture to meet increasing demand while promoting social transformation toward digitalization and electrification,including of social infra-structure and power equipment,with its highly safe and highly reliable technologies.Leading/Promoting Both a Sustainable Global Environment and Enriched Lifestyles

179、 through Diverse Batteries and TechnologiesEnergy(Panasonic Energy Co.,Ltd.)Medium-to Long-term Strategy19 Panasonic HoldingsAnnual Report 2022Efforts to Thoroughly Strengthen Operational Capabilities“Strategy”and“operational capability”are indispensable to each other for enhancing competitivenessTo

180、 enhance business competitiveness,it is important to have a business strategy that includes market selection and business model transformation tailored to the characteristics of the individual business.On the other hand,what is equally important is to enhance operational capability.We cannot realize

181、 our vision without operational capabilities,which include the unrivaled ability to create products that are valuable to customers and cost-effective,to deliver those products quickly,and to continue production and sales without product shortages or excess inventory.I believe it is necessary to elim

182、inate all kinds of wastefulness and stagnation at the operational frontlines,thoroughly refine our operational capabilities,and tirelessly make kaizen efforts with the mindset that improvements made yesterday will be further improved today.Establishment of Operational Strategy DepartmentIn April 202

183、2,the Company established the Operational Strategy Department as an organization reporting directly to the Group CEO.The aim of the Operational Strategy Department is to accelerate the strengthening of each busi-nesss operational capabilities,develop human resources who are willing to take on the ch

184、allenge of tirelessly making kaizen efforts,and utilize their skills to support recovery in the event of a fire or other incident.Our efforts are directly related to strengthening our“Five capabilities toward change(1 through 5)”for enhancing competitiveness(see“Message from the Group CEO”p.14),part

185、icularly“Response to demand changes”and“Response to production fluctua-tions;”in other words,to strengthening our responsiveness to supply chain management in general.Establishing kaizen know-how as a mindsetWe have all kinds of wastefulness at the operational front-lines,including wastefulness in o

186、perations and wastefulness between operations.These are things that our customers dont need and make our business less competitive.Kaizen is an activity to standardize and improve business processes.By using the power of digital technology,waste-fulness can be analyzed and visualized,allowing people

187、 to focus on improvement activities.That will lead to higher quality of management.The Company has been manufacturing many products globally for more than 100 years since its founding.Through all our experiences,we have accumulated knowledge in industrial engineering.Industrial engineering is a meth

188、od for maximizing business and operational efficiency by standard-izing business processes and quantitatively and scientifically analyzing operations at the operational frontlines.The Operational Strategy Department is developing initiatives to establish the kaizen know-how that has been accumulated

189、 as tacit knowledge at most of the operational frontlines as a mindset.In addition,we are promoting the training of“designated specialists”to disseminate these activities widely.We will continue to lead such activities in the“gemba kaizen way”at all the operational frontlines,where people can feel t

190、he joy and satisfaction of kaizen,help each other,and create even more kaizen.We also want to use our skills in kaizen,which eliminates wastefulness and stagnation,to support early recovery in the event of a disaster,for example.Furthermore,we will even offer these skills and know-how to Panasonic G

191、roup customers frontlines.Improving the overall supply chain will not only contribute to the management of our corporate customers,but also contribute to the reduction of their environmental impact and the well-being of their employees.By continuously making kaizen(improvement)efforts,we will thorou

192、ghly eliminate all kinds of wastefulness and stagnation,thereby enhancing competitivenessMasanori MinamioGeneral Manager,Operational Strategy DepartmentPanasonic Holdings CorporationMessage from the Department HeadMedium-to Long-term StrategyAnnual Report 202220Panasonic HoldingsAnnual Report 2022Ts

193、uruga Factory,Panasonic Automotive Systems Co.,Ltd.1Assembly process is captured with omnidirectional cameras and analyzed with AI to identify rooms for improvementsAt the Tsuruga Factory,which develops and assembles automotive components,a variety of kaizen(improvement)methods learned through inter

194、actions with automobile manufacturers have taken root as activities in which everyone participates,and kaizen is practiced on a daily basis with suggestions and ideas from each individual.In the component assembly process,work time of each worker is directly related to productivity.The factory there

195、fore adopted the power of digital technology,using AI to analyze videos captured by omnidirectional cameras to identify rooms for productivity improvements.This has significantly reduced the man-hours required to analyze the current production status,which previously depended on human skills,further

196、 accelerating the pace of kaizen.Optimize the mounting process with digital data and AI analysis of people,goods,and equipmentThe Saga Factory is implementing innovation on the manufacturing floor in the mounting process used to manufacture printed circuit boards of various types and quantities.The

197、factory is using a combination of omnidi-rectional cameras,equipment data,and production planning to identify rooms for productivity improvements and improve the speed and efficiency of product swapping.The planning is then optimized by identifying differ-ences between the plan and the actual result

198、s.Specifically,using cyber-physical systems and AI to group and optimize parts according to the production plan has significantly improved produc-tion efficiency by minimizing the swapping of parts trolleys.In addition,by combining digital data on people,goods,and equipment and analyzing it with AI,

199、higher productivity is achieved by extracting wasted time from highly individualized plans and allocating it to productive time.Compared to the year ended March 31,2021(fiscal 2021),the factory was able to reclaim 6,000 minutes of wasted time per month(as of April 2022).This section introduces case

200、examples of the operational frontlines Innovation initiatives that combine industrial engineering know-how accumulated at the operational frontlines with advanced digital technologies such as sensing and AI image recognition,which are strengths of the Panasonic Group.Video captured with omnidirectio

201、nal cameras is analyzed by AI to identify rooms for productivity improvementsIdentify rooms for productivity improvements by combining omnidirectional cameras,equipment data,and production planningOmnidirectional cameraCase Examples of Operational Frontlines Innovation InitiativesSaga Factory,Panaso

202、nic Connect Co.,Ltd.2Medium-to Long-term Strategy21 Panasonic HoldingsAnnual Report 2022Efforts to Thoroughly Strengthen Operational CapabilitiesDetect signs of defects and anomalies and take countermeasures before they occur through analysis of manufacturing and post-sales dataThe Kusatsu Fuel Cell

203、 Factory,which produces the“ENE-FARM”home fuel cell,carries out extremely complex and high-precision manufacturing using automated equipment and the craftsmanship of skilled workers.The data obtained in each process during manufacturing is also used to improve customer satisfaction.Various data and

204、components in each process are linked to the analysis results of product defects in the market and the operating data from fuel cells that are actually installed and in operation.This makes it possible to detect defects and anomalies before they occur,giving customers additional peace of mind.Blue Y

205、onders solutions reduce production and disposal losses and optimize inventoryAs a new initiative to apply kaizen made at the gemba(operational frontlines)in management,the Mobile Solutions BD,which manufactures and sells“Lets note”brand of notebook PCs and“TOUGHBOOK”brand of rugged mobile computers

206、for use at the gemba,is combining solutions from Blue Yonder,a Group company that provides software development and operation consulting in the supply chain management field,with data from continuous kaizen efforts at the gemba,and making its efforts to streamline the entire supply chain.The product

207、s handled by the Mobile Solutions BD are primarily B2B.Therefore,the production plans had to directly reflect each customers demand for each product with different specifications,and if the lead time was long,in some cases the cus-tomers requested delivery date could not be met.Meanwhile,from a mana

208、gement point of view,there was too much inventory,among other problems.The introduction of Blue Yonders solutions,which provide a high level of situational awareness of the entire supply chain,has resulted in reductions in production and disposal losses and cumulatively saved approximately 2 billion

209、 yen since it was introduced in 2019(as of April 2022).The solutions have also brought about a positive impact on management through inventory optimization.Manufac-turingLogisticsRetailData collection,accumulation,analysis,and utilizationSupply chain management softwareDigitalCYBERGembaPHYSICALStrea

210、mline supply chainKusatsu Factory,Electric Works Company,Panasonic Corporation3Kobe Factory,Mobile Solutions BD,Panasonic Connect Co.,Ltd.4Connect and analyze data to detect signs of defects and anomaliesEnables a high level of situational awareness of the entire supply chain,reducing production and

211、 disposal lossesMedium-to Long-term StrategyAnnual Report 202222Panasonic HoldingsAnnual Report 2022Process innovations through kaizen activities integrating industrial engineering knowhow and digital technologies to improve productivityThe Service Parts Center in Saito,Osaka handles service parts f

212、or the Media Entertainment BD and Mobile Solutions BD of Panasonic Connect Co.,Ltd.The Media Entertainment BD handles broadcasting equipment and the Mobile Solutions BD develops Lets note brand of notebook PCs,among other products.It maintains an inventory of more than 10 million parts needed for pr

213、oduct repair and maintenance.The supply of service parts requires both the maintenance of service levels through prompt delivery and the reduction of warehouse housing costs and cash through appropriate inventory management.Reducing operational costs is an important effort that is directly linked to

214、 profits.At the Service Parts Center in Saito,the picking operation used to be the bottleneck of the entire operation,but is now streamlined as a result of process innovations through kaizen activities integrating industrial engineering knowhow and digital technologies.First,a dashboard system was b

215、uilt that combines WMS(Warehouse Management System)data and work footage from fixed cameras in an integrated way,allowing for time-saving identification of problems.This greatly speeds up the cycle from analysis to improvement and enables operations that can greatly reduce bottlenecks and waiting ti

216、mes.Next,a new technology was developed and introduced that can simultaneously estimate a parts picking carts self-position(localization)and acquire video images of the carts operation to track its movements even in indoor warehouses where GPS does not work.Flow line and bottlenecks,which could not

217、be captured with fixed cameras alone,can now be fully grasped,greatly expanding the scope and targets for improvement.In addition,AI-based image analysis technology is used to break down the video footage taken with a camera of a persons series of tasks into detailed elemental tasks and analyze them

218、.Then,by identifying bottlenecks and applying kaizen techniques to these bottle-necks,it enables us to create the operational frontlines where business process transformation continuously takes place.In addition,spatial sensing technology has been used to monitor loading capacity by automatically tr

219、acking the fill rate in containers,shelves,and parcel cages,even while in motion.By maximizing the efficiency of warehouse space and deploying truck management synchronized with warehouse operations,we hope to be able to solve the problem of trucks waiting for long periods of time and delivering sma

220、ll payloads.Introducing these kinds of digital technologies made it possible to compre-hensively analyze the operating status of people and equipment,their movements,work data,demand data,and so on,use the data to identify warehouse conditions and problems,and make sure operations can keep up with f

221、luctuations in load volume.This has eliminated the need to constantly allocate more resources in case of delays or shortages.A work analysis showed that what used to take 600 minutes has been reduced to 15 minutes,a reduction of a factor of 40.*1 As a result,kaizen initiatives have been greatly acce

222、lerated.The productivity of picking opera-tions has improved by 25%per year,*2 productivity has almost doubled over the three-year period from 2017 to 2019,and in terms of cost performance,overall costs were reduced by 10%.*3*1:Compared to 2016 *2:Three-year average from 2017 to 2019 *3:Service Agre

223、ement Fee was renewed in 2019Service Parts Center in Saito,Osaka,Panasonic Connect Co.,Ltd.5Image analysis technology to track the movement of carts even in indoor warehouses where GPS does not workAlgorithm that breaks down and analyzes each task by AI in real timeSpatial sensing technology to auto

224、matically track the fill rate in containers,shelves,and parcel cages,even while in motion Strategies of Functions23Panasonic HoldingsAnnual Report 2022Message from the Group CFOBasic approach to financial management What basic approach to financial management does the Company employ in order to adva

225、nce business operations?Our basic approach to financial management emphasizes return on invested capital and financial stability.In terms of return on invested capital,we are aiming to stably achieve ROE of at least 10%in an effort to generate returns that exceed the cost of stockholders equity by p

226、romoting a business manage-ment that is conscious of capital costs.As for financial stability,we are working to expand stockholders equity through the accumulation of net profit and endeavoring to build a robust financial base that can propel business structural reforms and investments for growth.To

227、 that end,we have established a capital allocation policy as a basic approach to cash generation and allocation.In keeping with that policy,we,in principle,generate the cash needed for investments,structural reforms,and dividend payments from cash flow generated by businesses and cash generated by d

228、ivestitures and the sale of assets.We also adopt a flexible approach when cash becomes necessary for investment opportunities such as an M&A deal,for example,before sufficient cash flow is generated from business.Reflecting on the previous Mid-term strategy In April 2022 the Company unveiled a new m

229、edium-to long-term strategy.Before going into details,please give us a quick review on the previous Mid-term strategy(FY2020FY2022).In our previous Mid-term strategy we mainly undertook initia-tives to(1)enhance our management structure,(2)reform our business portfolio,and(3)improve profitability in

230、 automotive business(automotive solutions and automotive batteries)with the overall objective of breaking away from a low-profitability Profitability has steadily improved by enhancing our management structure.Under a new medium-term strategy,each business will aim to improve its cash-generation cap

231、ability by enhancing competitiveness and Panasonic Holdings will seek to achieve Group-wide sustainable growth by improving profitability in growth areas on the back of strategic investments.Financial results(FY2020FY2022)(Billions of yen)Net salesDeconsolidation impact*AdjustedoperatingprofitOperat

232、ingprofitNet profitNet salesAdjustedoperatingprofitOperatingprofitNet profitNet salesAdjustedoperatingprofitOperatingprofitNet profit7,490.6286.73.9%293.83.8%3.0%225.76,699.8307.24.6%4.8%Adjustedoperating profitmargin3.9%258.62.5%165.17,388.8357.74.8%357.53.5%255.3FY2020FY2021FY2022*Deconsolidation

233、impact of housing,automotive prismatic battery,security system and semiconductor businessesHirokazu UmedaRepresentative Director,Executive Vice President,Group CFOStrategies of Functions24Panasonic HoldingsAnnual Report 2022structure.We achieved the following results in each of the initiatives.(1)In

234、 enhancing our management structure,we aimed at profit contributions of 100 billion yen over the three-year period of the Mid-term strategy:60 billion yen from fixed cost reduc-tions and 40 billion yen from rolling out measures for businesses having loss-making structures.We reduced fixed costs by t

235、hor-oughly reducing personnel costs and indirect operations,as well as by consolidating facilities.These efforts contributed to profit by some 101 billion yen,well above our initial target.In addition,our measures for businesses having loss-making structures generated profit contributions of 34 bill

236、ion yen.The measures included transferring the semiconductor business,terminating in-house production in the LCD panel and solar businesses,and turning the TV business profitable mainly by focusing on specific regions.Together with the aforementioned fixed cost reductions,we achieved profit contribu

237、tions of 135 billion yen in total.With the spread of the COVID-19,we reviewed fixed costs and reduced expenses related to activities which used to be considered normal,such as business trips,meetings,and exhibitions;which had led to cost reductions.We will continue to control costs thoroughly going

238、forward so that the benefits of these measures take root.(2)In reforming our business portfolio,alongside measures for businesses having loss-making structures,we worked on enhancing our competitiveness through partnerships;for example,we established joint ventures with Toyota Motor Corporation in t

239、he automotive prismatic battery business and the town development business.Also,we made Blue Yonder a wholly-owned subsidiary,expanded automotive battery pro-duction capacity at our North America factory in Nevada,and made investments to capture growth opportunities with a view to medium-to long-ter

240、m growth.(3)As for improving profitability in the automotive business(automotive solutions and automotive batteries),in automotive solutions we concentrated on our areas of strength,while for automotive batteries we worked on the rationalization of materi-als and productivity improvements.As a resul

241、t,in the fiscal year ended March 2021(fiscal 2021),we managed to turn profitable on a full-year basis after heavy losses in fiscal 2020.The auto-motive batteries business in particular has now grown into a business which generates steady profits from brisk EV demand.The results of these measures con

242、tributed to steady improve-ment in adjusted operating profit even in the midst of the pan-demic and other changes in the external environment.From a financial point of view,we continued to shift our man-agement resources towards sustainable growth and enhance the competitiveness of the entire Group

243、by reforming our business portfolio in line with our basic approach to financial management.In the Gemba(operational frontlines)Process business,which we consider as an area of focus,with the aim of achieving a business model transformation with a view to the future,we deepened our strategic partner

244、ship mainly by estab-lishing a joint venture with Blue Yonder in 2019 and acquiring a 20%equity stake in the company in 2020.In order to further accelerate this business transformation,we made Blue Yonder a wholly-owned subsidiary in September 2021.The total acqui-sition price was approximately 860

245、billion yen*.Considering the temporary financial impact of this acquisition,including the recording of sizeable intangible assets and goodwill,we issued hybrid bonds worth 400 billion yen in which a certain level of equity value is recognized for credit rating purposes in order to stably maintain ou

246、r credit rating after the acquisition and ensure that we still have the capacity to make investments in the future.In looking back on our allocation of cash over the three-year period of the previous Mid-term strategy,the amount of cash generated from not only operating cash flow,but also from dives

247、titures and asset sales,was greater than the amount we allocated to dividend payments,structural reforms,and invest-ments for growth,including the Blue Yonder acquisition.As a result,net cash at the end of fiscal 2022 was 649 billion yen,an improvement of approximately 160 billion yen from 813.1 bil

248、lion yen at the beginning of fiscal 2020.*Includes the repayment of Blue Yonders bank borrowingsCapital allocation(FY2020FY2022)Investments(tangible/intangible assets)930Blue Yonder acquisition860*Dividends 190Structural reforms and repayment of lease liabilities400Excess cash 160Operating CF,etc.1,

249、400Portfolio optimization and sale of assets,etc.760Reduction of lease liabilities by portfolio optimization380(Billions of yen)Cash flow generationApprox.2,540Cash flow allocationApprox.2,380Net cash at the beginning of FY2020-813.1Net cash at the end of FY2022-649*Includes repayment of Blue Yonder

250、s bank borrowingsNew medium-to long-term strategy The Companys new medium-to long-term strategy was launched under the operating company system.What are its objectives?Under our new medium-to long-term strategy,each operat-ing company will seek to enhance their competitiveness by leveraging“strategi

251、es”formulated from a long-term point of view together with their sharpened“operational capabilities”and improve their cash-generation capabilities.And based on autonomous responsible management,each company will aim to achieve further growth by investing in long-term goals with cash generated from t

252、heir own business activities.To that end,Strategies of Functions25Panasonic HoldingsAnnual Report 2022Message from the Group CFOwe have set the following medium-term management indicators(KGIs).As a measure of our ability to generate cash,cumulative operating cash flow of 2.0 trillion yen and cumula

253、tive operating profit of 1.5 trillion yen have been set for the three-year period from fiscal 2023 through fiscal 2025.We have also set ROE as a KGI to measure capital efficiency.ROE has been around the 8%level recently,but we are targeting 10%or more by fiscal 2025.By setting cumulative management

254、indicators as KGIs,our objective is to boost our cash-generation capability and profitability over the medium to long term.In the previous Mid-term strategy we laid down a solid foundation by steadily taking steps to reduce fixed costs and take measures for businesses with loss-making structures.The

255、 new medium-term strategy represents a new phase of boldly embracing chal-lenges to achieve our future vision.Our KGI targets are chal-lenging,but in light of the areas we need to strengthen,we are seeing a lot of ingenuity and efficiency emerging from an oper-ational standpoint and the speed at whi

256、ch we are implementing various initiatives is gathering pace.I believe if we set ourselves high-level targets and make efforts to do what should be done,the results will naturally speak for themselves.Medium-term management indicators(KGIs)Cumulative operating CF(FY2023FY2025)2.0 trillion yenROE(FY2

257、025)10%or moreCumulative operating profit(FY2023FY2025)1.5 trillion yen2,594.01,998.33,165.00201510504,0003,0002,0001,0003/203/218.97.211.53/228.03/23(Forecast)3/24(Target)3/25(Target)(%)(Billions of yen)Panasonic Holdings Corporation stockholders equity(right scale)ROE(left scale)ROE and Panasonic

258、Holdings Corporation stockholders equity While each operating company thoroughly engages in autonomous responsible management,what kind of mea-sures will Panasonic Holdings Corporation(hereinafter,“PHD”)focus on,and what will it aim to achieve?Even during the period of the last Mid-term strategy we

259、had made medium-to long-term growth-oriented investments,but in order to achieve our future goals,under the new medium-term strategy we will make strategic investments of 400 billion yen in the three growth areas of automotive batteries,supply chain software,and air quality&air-conditioning,along wi

260、th 200 billion yen in“technology pillars”for the purpose of strengthening Group-wide technological capabilities.The three growth areas are domains in which each business can demonstrate their competitive edge and they also present considerable business opportunities at a time when the struc-ture of

261、society is gradually shifting towards carbon neutrality.Moreover,they are areas in which we can make significant contributions towards solving global environmental issues in line with the“Panasonic GREEN IMPACT.”Some of the past strategic investments were unable to achieve growth that brings profits

262、 because we were focused on pursuing scale expansion.Under the new medium-term strategy,however,we intend to execute investments after assessing competitiveness of each business and drive Group-wide growth by improving profitability in the three growth areas.To that end,it is important that we stead

263、ily secure enough cash for not only shareholder dividends,but also strategic investments.We will therefore secure cash as a holdings company and allocate cash to the operating com-panies.In return for the capital allocated,we will establish an appropriate cost of capital that suitably reflects their

264、 business characteristics in order to collect a share of cash equivalent to the cost of capital from each operating company.We will then use the cash received to make strategic investments with the aim of enhancing Group-wide enterprise value.In addition to receiving dividends from operating compani

265、es,PHD takes a flexible approach to optimal Group-wide financing schemes,such as the sale of assets,etc.or funding the operating compa-nies when they are making an investment which exceeds their own funds.In May 2022,we announced that we would start making preparations for a stock exchange listing o

266、f our supply chain management business(SCM business)centering on Blue Yonder.Because the SCM business is a high-growth market,the competitive environment is changing rapidly.In light of such circumstances and partly because its own growth would not be enough to keep up with the market,we have judged

267、 that Capital allocation(FY2023FY2025)Operating CF2.0 trillion yenImproving cash-generation capability by enhancing competitivenessSale of assets,etc.Cash flow generationDividends and lease repaymentsOperating companys investments for growth:Make own investments toward its long-term goalsGroup-wide

268、strategic investments*Growth areas:400 billion yenTechnology pillars:200 billion yenCash flow allocation*No such classifications as“key businesses”Strategies of Functions26Panasonic HoldingsAnnual Report 2022it would be necessary to enhance the competitiveness of the SCM business with the help of th

269、e capital markets in order to achieve inorganic growth beyond its own investment capacity.With a view to growth in the SaaS business,we intend to aggressively invest in R&D,M&As,and human resources,and aim to accelerate our growth on a global scale by further refin-ing Blue Yonders strengths.We are

270、currently under the prepa-ration process for the potential listing and further information required to be disclosed will be provided at the appropriate time.The operating companies basically make their own decisions,in order to make business management speedier.In addition,Group CEO Yuki Kusumi and

271、I,as Group CFO,attend the board meetings of operating companies to assess the decision-making,from the perspective of Group-wide optimization.After partici-pating in those meetings since April this year,I actually feel that communication with the operating companies has grown much closer than in the

272、 past.Getting a feel firsthand for the actual circumstances of the operational frontlines has enabled us to detect various signs from an early stage,which means we can quickly discuss with operating companies what measures need to be taken going forward.We will continue to advance an integrated styl

273、e of Group management through the collective wisdom of PHD and the operating companies.Fiscal 2023 initiatives Uncertainties in the external environment such as raw material price hikes,supply chain disruptions,and other changes continue in fiscal 2023,the first year of the new medium-term strategy.

274、How does the Company view these changes and what measures will it focus on going forward?For the first quarter of fiscal 2023,profit decreased year-on-year due mainly to price hikes in raw materials,shortage in semicon-ductor and parts&materials,the Shanghai lockdown enforced from the end of March,d

275、espite increased sales and efforts such as price revisions.It appears that the impact of the lockdown bottomed out in May because our operating profit improved sharply in June when lockdown restrictions were lifted.From a year-on-year perspective,the negative impacts from raw material price hikes an

276、d shortages of semiconductors and parts&materials remained in this first quarter,because the effects were relatively mild last fiscal year.We will continue our efforts to mitigate the impacts through price revisions and procuring alternatives and work on driving sales in the energy and air quality&a

277、ir-conditioning businesses where we see strong prospects for growth.Also,our inventory continued to increase affected by supply chain disruptions including procurement and logistics since last fiscal year.The fact that we strategically secure enough inventory is also a factor behind the increase.Goi

278、ng forward,we will reassess what the optimal level is,including the strategically secured inventory,and employ other measures,such as reduc-ing the number of different parts by standardizing parts&mate-rials and shortening production lead times.Even though we are facing some headwinds in the operati

279、ng environment at present,we will capture business opportunities from such changes and unite efforts to focus thoroughly on strengthening our opera-tional capabilities toward the enhanced competitiveness aimed under the new medium-term strategy.There are also numerous uncertain factors affecting the

280、 outlook for the business environment up ahead,including the risk of prolonged instability in the global political landscape and the risk of a global economic slowdown stemming from the tight monetary policies of governments worldwide.That said,we will continue to invest where necessary and execute

281、our plans for the future.Aiming to enhance enterprise value What kind of policy does the Company intend to employ for dialogue with the capital markets going forward for the purpose of enhancing enterprise value?In April when we launched the operating company system as our new Group structure,we als

282、o communicated the Groups new medium-to long-term strategy at a Group strategy briefing.Then in June as part of the Panasonic Group IR Day 2022 activ-ities,we had the heads of each operating company communi-cate with shareholders and investors about their business goals and medium-to long-term strat

283、egies,including KGIs.We have thus far communicated with the capital markets what direction the Group is heading in under our new structure.In terms of medium-to long-term strategies and initiatives for enhancing our competitiveness,we believe it is important that we provide the capital markets with

284、easy-to-understand information about our progress and results and continuously engage in dialogue.PHD is at the helm of the Groups management,so it will strive to communicate not only progress on the Groups medium-term management indicators(KGIs)and strategic investments,but also information from a

285、long-term point view,including ESG-oriented sustainability information through briefings.In addition,the heads of each operating company themselves will communicate with the capital markets and explain goals and strategies discussed at IR Day 2022 events.Through this kind of dialogue with the capita

286、l markets,we will make good use of the valuable opinions and suggestions received from shareholders and investors to improve our management.The Group will unite efforts toward enhanced enterprise value through a better understanding and higher expectations by our investors in the Groups future growt

287、h potential and long-term initiatives towards sustainable growth.On top of this,we will endeavor to extend shareholder returns with ongoing,stable dividend payments.So that the Panasonic Group can become a valued company needed by society,the ongoing support of all stakeholders will be truly appreci

288、ated.Strategies of Functions27Panasonic HoldingsAnnual Report 2022Message from the Group CTOGroup-wide support to enhance the competitiveness of operating companies and areas beyond the reach of operating companiesResourcesTechnology/manufacturing supportTechnology dam(technology/production technolo

289、gy)Innovation creationTechnology that contributes to medium-to long-term business planning1)Enhancement of existing businesses 2)Creation of new business opportunitiesOperating companiesTechnology Sector of Panasonic Holdings CorporationDisplaying the Groups future potentialDisplaying the Groups fut

290、ure potentialDeveloping the strengths of the Groups future technologyDeveloping the strengths of the Groups future technologyManagement of technology across the GroupManagement of technology across the GroupEnhancement of the Groups on-site capabilitiesEnhancement of the Groups on-site capabilitiesT

291、atsuo OgawaExecutive OfficerGroup Chief Technology Officer(Group CTO)To achieve a society characterized by sustainability and well-being,we will accelerate the creation of innovation focused 10 years into the future.Vision of the technology sectorAs Group CTO,I am responsible for the development of

292、the next generation of technology for the Groups growth,as well as for building and reinforcing foundational technologies across the Group.At the same time,the CTOs of each operating company are responsible for the technology development strategies that will contribute to medium-to long-term growth

293、in their respective business areas.I regularly share and discuss technological issues of the entire Group with the CTOs of the operating com-panies and work together to resolve them.Under the leadership of Group CEO Kusumi,the Panasonic Group is squarely addressing social issues and working to make

294、a greater contribution to society in order to achieve“an ideal society with affluence both in matter and mind.”This policy also applies to how we approach our R&D(research and devel-opment).We will work from the technological side to support the creation of business pillars that can contribute to th

295、e realization Strategies of Functions28Panasonic HoldingsAnnual Report 2022Societal and environmental changes toward 2030Sustainability&Well-beingCreation of new business opportunitiesCollaboration with operating companies Enhancing competitivenessRefinement of core technologyLow-carbon/decarbonizat

296、ionMaintenance of healthRE100Productivity improvementCircular economyIndependence/optimizationRealization of sustainable global environmentCarbon neutrality Circular economyRealization of well-being in“lifestyle”&“workstyle”Relationships among people Relationships between people and societyEnvironme

297、ntal issues:Make the solution of social issues our core businessHuman and social issues:Return to a human-centric societyToward the realization of an ideal society with affluence both in matter and mind,we will solve social issues by enhancing our core technology,business creation,and business contr

298、ibutionof a society characterized by sustainability and well-being.In this context,our competitiveness lies in our technology,and to make sure we constantly create the source of our competitive-ness,as Group CTO I have four roles to fulfill:(1)displaying the Groups future potential;(2)developing the

299、 strengths of the Groups future technology;(3)working with the CTOs of the operating companies to promote technology management across the Group,human resources development,and technol-ogy portfolio building;and(4)enhancing the Groups on-site capabilities in R&D and manufacturing.At the same time,we

300、 are working on the creation of innovation,including our environ-mental initiatives.Efforts to realize the visionIn working from the technological side to support the creation of business pillars for the realization of a society characterized by sustainability and well-being,we must first build a“te

301、chnology dam”(a mechanism for improvement,deepening,accumulation,and utilization)that includes the Groups future technologies,and then create new strategies and other mechanisms to make use of those technologies.With regard to the first step,building a technology dam,under our autonomous responsible

302、 management system,the operat-ing companies have only been able to envision their future three to five years ahead,which is not enough.Looking at the game-changing trends that are occurring these days,we need to envision new environments and business models 10 years ahead and draw roadmaps to get th

303、ere.Therefore,under the banner of its mission to“create a world you would never see without us,”the Technology Sector of Panasonic Holdings Corporation,after“backcasting”from the future 10 years from now,is offering Group-wide support to enhance the competitive-ness of operating companies(e.g.,heat

304、pumps,sensing solu-tions,automotive batteries,AI and data utilization platforms,etc.)and areas beyond the reach of operating companies(e.g.,next-generation solar cells and rechargeable batteries,hydro-gen,and other environmental energy technologies).In this way,all technology sectors of the Panasoni

305、c Group,including those of operating companies,will continue to interact with our cus-tomers,evolve and deepen our technology,and accumulate and utilize it.The Group CTO and the CTOs of the operating compa-nies will also work together to review and strengthen technology management across the Group,h

306、uman resources development,and the technology portfolio.Armed with the platform as our“technology dam,”we will set up a Group CTO project to accel-erate the creation of innovation and enhance the power to connect it to businesses.Strategies of Functions29Panasonic HoldingsAnnual Report 2022With rega

307、rd to the second step,utilization,we are focusing on creating new mechanisms whereby technologies can be utilized and evaluated from a sustainability perspective.Since 2010,we have been striving to become the No.1 Green Innovation Company in the electronics industry.In addi-tion to energy savings in

308、 our own products,we have been engaged in businesses such as fuel cells and storage batteries that contribute significantly to the automobile electrification.In May 2021,we committed to the target of virtually net-zero CO2 emissions(carbon neutral)at all operating companies by 2030.Furthermore,in Ja

309、nuary 2022,we announced our new environ-mental vision,“Panasonic GREEN IMPACT.”Many of the avoided CO2 emissions and reduction impacts we have announced there will need to be supported by technological development.In particular,to achieve the impact of 100 million tons of reductions through new tech

310、nologies and businesses(FUTURE IMPACT),which is part of our goal to create an impact that reduces CO2 emissions by more than 300 million tons(equivalent to approximately 1%of the current total global emissions),we are working to contribute through R&D and new business creation activities while stren

311、gthening our technology pillars in areas such as hydrogen energy.We are actively promoting efforts to visualize avoided emis-sions as a yardstick for objectively evaluating their impact and to obtain understanding from the government and industry.Currently at the International Electrotechnical Commi

312、ssion(IEC),an international standardization body,we are working on a draft text on“avoided emissions”for discussion and publica-tion as an international standard.Meanwhile,we are participat-ing in the GX League in Japan,in which we work with participat-ing companies to widely promote understanding a

313、nd dissemination of the concept of avoided emissions in other industries.In addition,as a member of the World Business Council for Sustainable Development(WBCSD),we are contrib-uting to the resolution of social issues and the realization of a sustainable society while working to ensure that our effo

314、rts are appreciated as useful contributions to our customers.Message from the Group CTOApproach to investment in developmentAs mentioned above,the Group CTOs role requires commit-ment to technological strategies and the early launch of new businesses.The key point is to participate responsibly in de

315、cision-making from a technological point of view in relation to the business strategy itself.We need to clearly define the value we provide to customers and draw up scenarios that include development strategies for new technologies and businesses to be implemented before moving forward.The Technolog

316、y Sector of Panasonic Holdings Corporation will strengthen its investments in technology development areas that achieve sustainability and well-being to a ratio of over 80%in fiscal year ending March 2025(fiscal 2025).In the sustainability area in particular,we will allocate a portion of the strateg

317、ic investments of 200 billion yen in our medium-term strategy(see“Medium-term management indicators(KGIs)and strategic investments”on page 11 of the“Message from the Group CEO”)to accelerate the creation of technologies and businesses to achieve avoided emissions.Increase investment in R&D toward FY

318、2025 at the Technology Sector of Panasonic Holdings Corporation*Selection and concentration of themes in portfolio managementEnhance sustainability and well-being investment areasSustainability&Well-being63.9%FY2023R&D investment ratioFY2025R&D investment ratioSustainability&Well-being 82.5%*Include

319、d in“Eliminations and Adjustments”under“Information by segment.”20502020CO2 emissions from own value chain:110 Mt OWN IMPACT Emissions reduction in our own value chain CONTRIBUTION IMPACT“Avoided emissions”(contribution to reducing CO2 emissions for society)through existing businesses FUTURE IMPACT“

320、Avoided emissions”through new technologies and busi-nesses+INFLUENCE Impact of repercussions in energy transformation for society 110 Mt 100 Mt 100 Mt+INFLUENCESteps to publication of the international standard at the IECNOWCommittee discussionInquiry circulationApproval phasePublication of standard

321、Documen-tationProposalStrategies of Functions30Panasonic HoldingsAnnual Report 2022The Panasonic Group promotes intellectual property activities not only to ensure business advantages and safety now and in the future,but also to contribute to solving social issues.First,as a way of contributing to s

322、ociety through our own business,we are indexing the Groups patent rights related to environment-related technologies and information-related technologies,including abstracts and inventor information,from our approximately 100,000 pieces of intellectual property(as of March 2022).We regard this intel

323、lectual property as part of our intangible assets,alongside our data and human resource information.Even though we now operate under an operating company system,we have begun to use the technology index as a Group-wide tool to connect intangible assets and people in order to maximize the use of reso

324、urces throughout the Group to drive commercialization and new business creation.Because we also believe that solving social issues requires the connection and cooperation of a diverse range of people,goods,and services,we are committed to open innovation based on intangible assets.For example,by tra

325、nsferring our unused patents on quick-charging technology to an overseas startup through an external partner,we are co-creating and supporting the companys business of bringing light to areas without electricity.We are also the first Japanese company to participate in the Low Carbon Patent Pledge(LC

326、PP),and have announced that royalty-free licenses to our granted patents related to artificial photosynthesis listed on the LCPP website are available under the terms and conditions set by the LCPP.Going forward,the Group will continue to contribute to society by promoting the practical implementati

327、on of technologies and intangible assets that contribute to the realization of a society characterized by sustainability and well-being in various forms,including in-house commercialization and commercialization through co-creation with external partners.Technology index overviewExample of open inno

328、vationBusiness co-creationPromote business co-creation within the GroupDepartment XIntellectual Property DepartmentSearch/queryIntellectual property and technical informationSocial issue to be solvedDepartment ATechnology Department BTechnology Exploit usage logs strategicallyProposalTechnology inde

329、xBusiness co-creationBusiness co-creation based on underutilized intangible assetsDividendsPatent rightsStocksTransferPartnerOperating companyMatching platformStartups,etc.Patent ownerPlease refer to“Charting the Direction of Panasonic Groups Intellectual Property Department.”While AI technologies s

330、olve various issues and enrich human life,they also pose human rights challenges as a result of inappropriate use,such as invasion of privacy,unjustified surveillance,and discrimination due to biased learning data.The Panasonic Group considers its approach to AI ethics as a promise to the rest of th

331、e world on the responsible use of AI,and promotes appropriate development,operation,and utilization of AI products and services in a human-centric manner and with respect for human rights.With this in mind,in August 2022,we announced our AI Ethics Principles,which are applicable to the entire Group

332、and are intended to provide customers with peace of mind when using AI products and services.To ensure that the life cycle of AI utilization is carried out appropriately in light of the laws,regulations,and ethical guidelines in each country,we will imple-ment AI ethics initiatives to assess and man

333、age risks associated with AI ethics and mitigate and avoid these risks through technological progress and process improvements.*For more information on AI ethics,please refer to“AI Ethics”(p.97)in the Sustainability Data Book 2022.Announcement of Panasonic Groups AI Ethics PrinciplesInitiatives on intellectual propertyColumn1Column2 Strategies of Functions31Panasonic HoldingsAnnual Report 2022Mess