20080206 digitalav growth strategy

8/8/2019 20080206 Digitalav Growth Strategy

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Copyright (C) 2008 Matsushita Electric Industrial Co., Ltd. All Rights Reserved.1

FebruaryFebruary 66, 2008, 2008

Toshihiro Sakamoto, PresidentToshihiro Sakamoto, PresidentPanasonic AVC Networks CompanyPanasonic AVC Networks Company

Matsushita Electric Industrial Co., Ltd.Matsushita Electric Industrial Co., Ltd.

Growth Strategy forDigital AV BusinessGrowth Strategy forDigital AV Business

Todays TopicsTodays Topics

1. PAVCs Profile andFY2008 Business Outlook

2. GP3 Plan Outline

3. Flat-panel TV Business Strategy

1. PAVCs Profile andFY2008 Business Outlook

2. GP3 Plan Outline


1


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PAVCs Business StructurePAVCs Business Structure

NetworksBusiness

Group

Visual Productsand Display

DevicesBusiness

Group

Device

BusinessGroup

SystemsBusiness

Group

TVs, STBs, car-mounted TVs, plasma panels, etc.

DSCs, VCRs, camcorders, audio equipment, etc.

Notebook PCs, broadcasting/AV systems forprofessional use, projectors, in-flight entertainmentsystems

Optical pickups, aspherical lenses, recordablemedia, etc.

2

Approx. 45%

Sales proportion

Approx. 25%

Approx. 10%

Approx. 20%

PAVCs FY2008 OutlookPAVCs FY2008 Outlook

FY2004 FY2005 FY2006 FY2007 FY2008plan

67%67%

70%70%

74%74%

76%76%

Overseassa

les

Overseassa

les

2 1.941.94

[FY2008 outlook] Manufacturing site basisExpected to achieve the original targets

- Sales: 1.94 trillion yen (+6% vs. FY2007)

- Operating profits: 116 billion yen

(+25.1 billion yen from FY2007)

[Overview]Comparison with FY2004 when the business

domain was established

- Sales: increased by about 1.6 times (averageannual growth: 13%)

- Operating profits: increased by about 4 times(+87.3 billion yen)

Comparison of overseas sales- Sales: increased by about 1.8 times (average

annual growth: 16%)

- Ratio to overseas sales: 67% 76% Flat-panel TV business: Expected to increase by

11% from FY2007

By promoting the VIERA Link, achieved a salesincrease of link devices connected to flat-panelTVs

With overseas sales as the driving force, salesWith overseas sales as the driving force, salesincreased by about 1.6 times since theincreased by about 1.6 times since theestablishment of the business domainestablishment of the business domain

67%67%

3

1

1.831.83

1.521.52

1.321.32

1.201.20

(yen: trillions)


3/20


1,4371,437

billion yenbillion yen

1,5511,551

billion yenbillion yen

PAVCs Sales Analysis by

Products (vs. FY2007)

PAVCs Sales Analysis by

Products (vs. FY2007)

4

Manufacturing site basis

FY2007FY2007

Apr.Apr. Dec.Dec. + 114 billion yen (+8%)+ 114 billion yen (+8%)

AV systems for professional use: Broadcasting video camcorders, Avionics systems, projectors

FY2008FY2008

Apr.Apr. Dec.Dec.

CRT TV

Audio

OthersFlat-panelTV

AV system for

professional use

DSC

DIGA

PC

VHS VCR

HDcamcorderVIERA

theatersystem

Analogcamcorder

PAVCs Sales by RegionPAVCs Sales by Region5

0

700

'06 Apr-Dec '07 Apr-Dec

(yen:billions)

Japan

0

700


North America

0

700


Europe

0

700


Others

+3%

Sales proportion

28%

Manufacturing site basis

(yen:billions)

(yen:billions)

(yen:billions)

Sales proportion

25%

Sales proportion

25%Sales proportion

22%

+3%

+7%+20%


4/20


6

0

120

'0 7 Apr- Ju n Ju l- Se p O ct- Dec40%

100%

0

400

'07 A pr-J un J ul-S ep O ct-D ec50%

100%

Global

vs. FY2006

186.0

312.8

209.60

100

'0 7 A pr- Ju n J ul- Se p O ct- De c40%

100%

0

200

'0 7 Apr- Ju n Ju l- Se p Oc t- De c80%

100%

120%

140%

160%

0

150

'07 A pr-Jun Ju l-Sep O ct- Dec80%

100%

120%

140%

160%

180%

200%OthersApr.-Dec. total 708.4 billion yen

(vs. FY2006 : +15%)

+2%

+19% +20%

(yen:billions)

Flat-panel TV SalesFlat-panel TV Sales(yen:billions)

Japan

-4%

+7%0%-+

(yen:billions)

* Including CIS

Europe

+13%

+48%+31%

NorthAmerica

-6%-14%

+9%

(yen:billions)

(yen:billions)

+6%

+61%+73%

MEI consolidated basis

Sales proportion25%

Sales proportion34%

Sales proportion24%

Sales proportion17%

VIERA Link SalesVIERA Link Sales

0%

100%

'06 '07 '06

+4%

0%

100%

+22%

'07'06

Competitors

'06 '07

Panasonic

0%

100%

-4%+19%

'06 '07 '06 '07

Panasonic

VIERA Link products: Total sales of DVD recorders, home theater systems, DSCs, and camcorders

0%

100%

'06 '06'07 '07

Global

+13% -1%

+4%

7

AprApr..--DecDec.. totaltotal

Global: Panasonic estimates based on the data from NPD(US),Global: Panasonic estimates based on the data from NPD(US),GfK(Europe) and JEITA/CIPA (Japan)GfK(Europe) and JEITA/CIPA (Japan)

Source: The NPD Group/Monthly Track ing Service Source: GfK Group/Retail and Technology

Apr.Apr.--Nov. totalNov. total Apr.Apr.--Oct. totalOct. total

AprApr..--DecDec.. totaltotal

'07

Japan

US Europe

0%-+

CompetitorsCompetitorsCompetitors

Competitors CompetitorsPanasonic

Panasonic

Source: JEITA/CIPA


5/20


Sales Trends of

Major System Products

Sales Trends of

Major System Products

8

Notebook PCs No. 1 support ratingNo. 1 support ratingGlobal standardGlobal standard tough mobile PCstough mobile PCs

AVIONICSsystem

InIn--flight entertainment systemflight entertainment systemFirmly maintainFirmly maintainss market share ofmarket share ofapprox. 70%approx. 70%

BroadcastingAV Systems

P2HD expanding worldwideP2HD expanding worldwide

EEnvironmentallynvironmentally friendlyfriendly P2P2 Projectors

Let's note- Achieved the No. 1 market share (22%) in the

Japanese mobile PC category for the 2nd

consecutive year- Nikkei PC magazine: Earned No. 1 customer

satisfaction

TOUGHBOOK- Gained market share of 50% worldwide

(No. 1 for the 5th consecutive year since 2002)

P2HD which applies SD Cardtechnology is expandingworldwide.

- Employed by a total of 610 broadcastingstations(Average annual growth rate since releasein 2004: 140%)

The eX2 next-generation in-flightentertainment system has beeninstalled in major airplanes (B777,B747, A340, A330, etc.)- A380: October 2007

The first model was installed inSingapore Airlines.

- CSS will be built into B787 (early 2009)

2500 and higher lumen projectors2500 and higher lumen projectorsNo. 1 global market share (11%)No. 1 global market share (11%)

Projectors for business use- Achieved a year-on-year increase

of 38% in sales value- 10,000 lumen projector D10000

earned the InfoCom's Rental &Stage Award in June 2007


1. PAVCs Profile and FY2008 BusinessOutlook

2. GP3 Plan Outline

- Promote 3D2 Value Chain Strategy- Further Select and Concentrate Business- Achieve Double-Digit Growth in Overseas

Sales- Strengthen and Expand Synergy of Vertical

Integration beyond Product Categories


1. PAVCs Profile and FY2008 BusinessOutlook

2. GP3 Plan Outline

- Promote 3D2 Value Chain Strategy- Further Select and Concentrate Business- Achieve Double-Digit Growth in Overseas

Sales- Strengthen and Expand Synergy of Vertical

Integration beyond Product Categories


9


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Four Strategic BusinessesFour Strategic Businesses10

Automotive ElectronicsBusiness

Carelectronics

Business ProvidingComfortable Living

Appliancesolutions

Digital AVBusiness

Digital AVnetworks

Semiconductors andDevices Business

B.B. devices

Promote PDPs for largePromote PDPs for largescreen TVsscreen TVs

Target share: 25%Target share: 25% inin 3737--inchinchand larger flatand larger flat--panel TVspanel TVs

Growth to a leadingGrowth to a leadingcamera brandcamera brand

Target share: 15%Target share: 15%

Win the competition with compactWin the competition with compactsize and light weight, robustness,size and light weight, robustness,

and high picture quality with the SDand high picture quality with the SD

Card camcorder as the driving forceCard camcorder as the driving force


Win in the BD recorder/driveWin in the BD recorder/drivebusiness with advanced technologybusiness with advanced technology

and outstanding costand outstanding costcompetitivenesscompetitiveness


3rd and 4th business pillars3rd and 4th business pillars

HDcamcorder

Blu-ray

Four StrategicBusinesses

(ABCD-Quartet)

Differen

tia

tew

ith

BBdev

ices

AchieveAchieve "Digital Hearth""Digital Hearth" that offersthat offers ""Peace of mind and safetyPeace of mind and safety,"," "Ease of use and"Ease of use andconvenience," and "Dreams and excitement"convenience," and "Dreams and excitement"

3D2 Value Chain Strategy3D2 Value Chain Strategy

DSC

Living in HDLiving in HD

Realize a lifestyle that enables users to easily operate AV equiRealize a lifestyle that enables users to easily operate AV equipment,pment,security equipment, and the Internet with a single TV remote consecurity equipment, and the Internet with a single TV remote control bytrol by

connecting them with VIERA TV in highconnecting them with VIERA TV in high--definition picturedefinition picture

3D products3D products(SD, DVD, DTV)(SD, DVD, DTV)

3D technologies3D technologies(HD, UD, Device)(HD, UD, Device)

11

Digital HearthDigital Hearth

WholeWhole LifeLifeConnectivityConnectivity

Intercom


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Accelerate Selection and

Concentration for 3D Product Business

Accelerate Selection and

Concentration for 3D Product Business

12

FY04 FY08 FY09 FY10

Products withdrawn frommarket up to FY2008

CRT TVs (Japan, US, Europe,China)VHS VCR, Headphone stereo,MP3 player, Portable MD player,Portable CD Player, Technicsmini component stereo system,DVD-R media, Desktop PC withLCD monitor, Terrestrial Mobilecommunication business,Amplifier for medical use,Microcassette recorder

3D product group

SD Card, DSC, PDP, LCD,CATV, Car-mounted TV, DVD/BD,HD camcorder, Home theatersystemDVD/BD media,DVD/BD-related devices,Optical modules, P2 system, etc

[Others]Audio products, PCSystems business products(excluding P2 system), etc.

47%

73% 81%

82%of PAVCs sales

OthersOthers

Audio productsAudio products

CRT TVsCRT TVs

3D product group

0

1

2

3

FY2007 FY2008 FY2009 FY2010

PAVCs Sales Targetsin the GP3 Plan

PAVCs Sales Targetsin the GP3 Plan

Global sales:Global sales: 2.4 trillion yen, Average annual growth rate of 9%2.4 trillion yen, Average annual growth rate of 9% DoubleDouble--digit growth in overseas sales:digit growth in overseas sales:Average annual growth rate of 13%, Ratio to overseas sales of 80Average annual growth rate of 13%, Ratio to overseas sales of 80%% BRICs + Vietnam:BRICs + Vietnam: Average annual growth rate of 25%, 300 billion yen salesAverage annual growth rate of 25%, 300 billion yen sales

FY2007 F Y2008 F Y2009 F Y2010

2

1

Sales by RegionSales by Region(yen: trillions)

76% 80%

13%

overseas salesoverseas sales

Overseas Sales & BRICs+ VietnamOverseas Sales & BRICs+ Vietnam

74%

12%

BBRICs+RICs+ VietnamVietnam

13

AsiaAsia

NorthAmericaNorth

America

Latin AmericaLatin America

EuropeEurope

CIS & MiddleEast

CIS & MiddleEast

ChinaChinaJapan 18%

BRICs+ VietnamBRICs+ Vietnam


8/20


StrengthenStrengthen overseas productionoverseas productionbases for flatbases for flat--panel TVpanel TV

Strengthen structure in the US,Strengthen structure in the US,the most important marketthe most important market

14

Double overseas production capacityDouble overseas production capacity5.4 million units in FY075.4 million units in FY07

10.8 million units in FY0910.8 million units in FY09

PDP LCD

NorthAmerica

North America(FY05)

North America(FY05)

Japan Japan (FY02) Japan ( FY02)

EuropeCzech Republic

(FY05)Czech Republic

(FY05)

Russia Russia (FY08) Russia (FY08)

LatinAmerica Brazil (FY07) Brazil (FY07)

China

Shanghai(FY04)

Shandong (FY05)

AsiaSingapore

(FY08)

India (FY08)

Taiwan (FY06) Taiwan (FY04)

Malaysia (FY08)

VietnamVietnam (FY09)(FY09)

Thailand (FY07)

The US market is changingThe US market is changing drasticallydrastically

Need prompt management decisionsNeed prompt management decisionsand establishment ofand establishment of sales structuresales structurefor new high valuefor new high value--added productsadded products,,including the commercialization ofincluding the commercialization ofInternetInternet--ready TVsready TVs withwith strongstrongdemand and interactive cable TVsdemand and interactive cable TVs

Create a structure integrating productCreate a structure integrating productdevelopment, manufacturing, and salesdevelopment, manufacturing, and sales

Start feasibility study of transformingStart feasibility study of transformingdomain companies in the US into salesdomain companies in the US into salescompaniescompanies

Develop Locally-Oriented

Manufacturing & Sales Structure

Develop LocallyDevelop Locally--OrientedOriented

Manufacturing & Sales StructureManufacturing & Sales Structure

Promote Market-Oriented Marketing(example: North America)

Promote Market-Oriented Marketing(example: North America)

Build VIERA Dealer Networks:Build VIERA Dealer Networks: 373373 stores of 19 accountsstores of 19 accounts(as of January 2008)(as of January 2008)Sales values of VIERA Dealer in FY2008 3Q: +87% (vs. FY2007 3QSales values of VIERA Dealer in FY2008 3Q: +87% (vs. FY2007 3Q))

Living in HD Truck TourLiving in HD Truck Tour (launched on September 1)(launched on September 1)

Living in HDLiving in HD PProgramrogramExpand from 21 families as of January 2008 to 100 families byExpand from 21 families as of January 2008 to 100 families bythe end of January 2009the end of January 2009

300 locations nationwide35,612 visitors400,000 hits on website

15


9/20


Strengthen the Synergy of

Vertical Integration

Strengthen the Synergy of

Vertical Integration

DSCDSCPDP TVPDP TV (42(42--inch full HD)inch full HD) BD recorderBD recorder

InIn--house production ratio:house production ratio:

Approx. 60%Approx. 60%

PanelLSI

Aspherical lensCCDLSI

Optical pick-upBD drive

LSI

Maximize product performance and quality level by furtherMaximize product performance and quality level by furtherpromoting the inpromoting the in--house production of key deviceshouse production of key devicesunderpinned by blackunderpinned by black--box technologybox technology Improve capabilities to respond to changes in the marketImprove capabilities to respond to changes in the market Strengthen blackStrengthen black--box technologies to achieve the world'sbox technologies to achieve the world'sbest manufacturing that combines the company's collectivebest manufacturing that combines the company's collectivestrengthsstrengths

16

InIn--house production ratio:house production ratio:

Over 50%Over 50%InIn--house production ratio:house production ratio:

Approx. 70%Approx. 70%

Expand Synergy of Vertical Integrationbeyond Product Categories

Expand Synergy of Vertical Integrationbeyond Product CategoriesDrastic reform of development efficiency by sharingDrastic reform of development efficiency by sharing

HD PlatformHD Platform UniphierUniphier

17

Example of synergetic effects Example of synergetic effects SSet development leadet development lead--timetime shortenedshortened to 1/3 (16to 1/3 (16** monthsmonths 5 months)5 months)

VIERAVIERA DIGADIGACarCar--mounted TV supportingmounted TV supportingterrestrial digital broadcaststerrestrial digital broadcasts HD camcorderHD camcorder

Softwaresharing rate:

79%

VIERA Link

SD Card

MPEG2reproduction

Terrestrial digitalbroadcast reception

H.264reproduction

VIERA Link

SD Card

MPEG2reproduction


H.264reproduction

H.264 recording

VIERA Link

SD Card

MPEG2reproduction


H.264 reproduction

VIERA Link

SD Card

H.264reproduction

H.264 recording

1-seg broadcastreception

* When developed individually

HDplatform(

UniP

hier)


90%


53%


10/20



18

1. PAVCs Profile and

FY2008 Business Outlook

2. GP3 Plan Outline


Further Evolve PDP TVs Strengthen LCD TV Business Propose a New Lifestyle by Strengthening

Alliances



2. GP3 Plan Outline



Alliances

Demand for Flat-Panel TVsDemand for Flat-Panel TVs19

Demand for largeDemand for large--screen models continues to grow more than original forecasts.screen models continues to grow more than original forecasts.Demand for 50Demand for 50--inch and larger models would continue to grow rapidly.inch and larger models would continue to grow rapidly.

Demand for 37Demand for 37--inch and largerinch and larger--screen models is expected to account for over 50%screen models is expected to account for over 50%of total demand for flatof total demand for flat--panel TVs.panel TVs.

50-inch and larger

37- 49 inches

2007 2008 2009 2010 20110

10

20

30

40

50

6070

80

millionunits

20

28

40

50

36

50

62

73: Previous year's forecast

FY2007-2011Average

growth rate

+59%

+35%

FY


11/20


Basic Policy for Flat-Panel

TV Business

Basic Policy for Flat-Panel

TV Business

LCDLCD

OLEDOLED

Strengthen the product line-up in the volume zone

Establish stable panel procurement system in mid- and long-term, strengthen cost competitiveness through verticalintegration, and prepare for the future development of OLED(invest in IPS Alpha Technology's 2nd plant)

Strengthen the product line-up in the volume zone

Establish stable panel procurement system in mid- and long-term, strengthen cost competitiveness through verticalintegration, and prepare for the future development of OLED(invest in IPS Alpha Technology's 2nd plant)

Accelerate R&D activities of OLED which will be the leader offlat-panel TVs in the next generation

Accelerate R&D activities of OLED which will be the leader offlat-panel TVs in the next generation

PDPPDPLead the large screen TV market with PDPsStimulate market demand by enlarging screen size, improving

image quality, making thinner products, reducing powerconsumption and costs

Lead the large screen TV market with PDPsStimulate market demand by enlarging screen size, improving

image quality, making thinner products, reducing powerconsumption and costs

20

Aim for a market share of 25% in the 37Aim for a market share of 25% in the 37--inch andinch andlarger modelslarger models

Increase cost and product competitivenessIncrease cost and product competitiveness,, and strengthenand strengthenthe product linethe product line--up with PDPs as the coreup with PDPs as the core

21




2. GP3 Plan Outline

3. Flat-panel TV Business Strategy Further Evolve PDP TVs Strengthen LCD TV Business Propose a New Lifestyle by Strengthening

Alliances



2. GP3 Plan Outline


Alliances


12/20


The 5th Plant to Produce

Next-generation PDPs

The 5th Plant to Produce

Next-generation PDPsFifth PDP

plant in JapanCommencing production

in May 2009 (planned)

Fifth PDPplant in Japan

Commencing productionin May 2009 (planned)

22

Computer generated pictureComputer generated picture

Evolution of PDP Device FactoryEvolution of PDP Device Factory

1 panel 3 panels 16 panels

Number ofprocessesNumber ofprocesses

Production

lead-time

Productionlead-time

Number of42-inch panels

per sheet

Number of42-inch panels

per sheet

1st plant(Ibaraki)

4th plant(Amagasaki)

3rd plant(Amagasaki)

2nd plant(Ibaraki)

vs. 1st plant68%

vs. 1st plant68%

vs. 1st plant

80%

vs. 1st plant

80%

23

6 panels 8 panels

vs. 1st plant

62%

vs. 1st plant

62% vs. 1st plant53%

vs. 1st plant

53%

vs. 1st plant

77%

vs. 1st plant

77%vs. 1st plant

67%

vs. 1st plant

67%

5th plant(Amagasaki)


13/20


Neo PDP Technology Achieving

High Luminance Efficiency

Neo PDP Technology Achieving

High Luminance Efficiency

New materialsNew processes

Energysaving

Energysaving

Conventional

Full HD PDPs

Approx.d

ouble

thebright

nessApprox.d

ouble

thebright

ness

NEW NEW NEW

Double luminance efficiency!Double luminance efficiency!

24

New phosphorsNew phosphors

New celldesign

New drive

Improved dischargeImproved discharge

efficiencyefficiencyReduced powerReduced power

lossloss

Higherimagequality

Higherimagequality

UltraLarge

screen

UltraLarge

screen

Thinprofile

Thinprofile

Lowercosts

Lowercosts

Realizing Lower PowerConsumption & Higher Efficiency

Realizing Lower PowerConsumption & Higher Efficiency

More vividimages!

More vividimages!

Further expandinghigh-quality with increased

peak brightness

Further expandinghigh-quality with increased

peak brightness

Retaining brightness

and saving energythrough high light

emission efficiency!

Traditional panel(Full-HD model

FY2008)

High light emissionefficiency

technologyAnnua

lpowerconsump

tion

indica

tor

(%)

Halving

powerconsumption

Halving

powerconsumption

25Less Power

ConsumptionLess Power

Consumption


14/20


Reproducing cinema quality colorsReproducing cinema quality colorsDisplays yellow, gold and crimsonDisplays yellow, gold and crimsonvividlyvividly

26

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

x

y

(Gold )

(Crimson)HDTVstandards

G

B

Important colors in movies

Important colors in movies

R

(Yellow)

(Purple)

Digital cinema (Questionnaire)

DCI: Digital Cinema Initiative

Black reproducibilityoverwhelming HD CRT

Black reproducibilityoverwhelming HD CRT

1 field (1/60 sec.)

Blac

kleve

llig

htem

iss

ion

Predischarge

New real black drive methodNew real black drive method

Dark place contrast

Max. 10,000:1Max. 10,000:1

Further reducing lightemission from pre-discharge

by developing new panelmaterials

Further reducing lightemission from pre-discharge

by developing new panelmaterials

Higher picture

quality

Higher picture

quality

Realizing High Quality

Images

Realizing High Quality

ImagesHigh contrast ofHigh contrast of30,000:130,000:1

Dark place contrast

Max.Max. 330,000:10,000:1

Predischarge

1 field (1/60 sec.)

Super-fine

4K2K-compliant(40962160)

Super-fine

4K2K-compliant(40962160)

Full HD (19201080)

Equivalent to nine50-inch screens

Displays high-quality images on a dynamic ultra large

screen capable of showing a life-size human!

27

Ultra Large ScreenUltra Large Screen

Ultra Large-ScreenSuper-Fine TV

Ultra Large-ScreenSuper-Fine TV


15/20


Realizing wall-mounting and many

other innovative viewing styles!

Realizing wall-mounting and many

other innovative viewing styles!*1 23.7 mm from the glass surface at the thickest section

*2 Compared with our conventional model (TH-50PZ750SK)

Full-flat24.7 mm*1Full-flat24.7 mm*1

Approx 1/4of the previous

model*2

Approx 1/4of the previous

model*2

22 kg22 kgApprox. 1/2of the previous

model*2

Approx. 1/2of the previous

model*2

ExampleExampless of 50of 50--inchinch typetype

28

Thin profileThin profile "Super" Thin Full-flat PDP"Super" Thin Full-flat PDP

FullFull--HD single scan technologyHD single scan technology

Shift tosingle scan

42 FHD model FY08

42 FHD model FY09

Halving

thecost

ofthedr

ivecircu

it

Reduced number of parts inReduced number of parts in

data drive circuit bydata drive circuit by 65%65%

-- 2%2%OthersOthers

-- 5%5%Wave formWave form

optimizationoptimization

-- 8%8%Multiple outputsMultiple outputs

of data driverof data driver

-- 50%50%Single scanSingle scan

ReductionReductionraterate

ItemItem

29

Lower costsLower costsReducing Full-HD Panel

CostsReducing Full-HD Panel

Costs


16/20


30


1. PAVC's Profile and


2. GP3 Plan Outline



Alliances

1. PAVC's Profile and


2. GP3 Plan Outline



Alliances

Strengthen Foundationof LCD TV Business

Strengthen Foundationof LCD TV Business

31

RealiRealizationzation of Vof Verticalertical IIntegration andntegration and sstabletableprocurementprocurementConstruction of a new panel plant(Target: commence production in FY2010)

Form an Alliance with Hitachi and Canon forForm an Alliance with Hitachi and Canon for

Liquid Crystal PanelsLiquid Crystal Panels

IPS Alpha Technology becomes our subsidiary

DevelopmentDevelopment ofof OLED BOLED Businessusiness forfor thethe FFutureuture


17/20


Advantages of IPS-Pro PanelAdvantages of IPS-Pro Panel

HHigher viewing angle featuresigher viewing angle features

NoNo pixel divisionpixel division

FewerFewer data driversdata drivers HighHigherer transmissiontransmission

Efficient circuit costEfficient circuit costEfficient circuit cost

Compared with VA panel,

Bright andcomfortable display

Bright andBright and

comfortable displaycomfortable display(Reduced driver IC and backlight costs)(Reduced driver IC and backlight costs) (1.4 times at single(1.4 times at single--speed,speed,

1.7 times at double1.7 times at double--speed)speed)

32

33




2. GP3 Plan Outline


Alliances



2. GP3 Plan Outline


Alliances


18/20


HD Wireless Transmission Changes

Scenes in the Living Room

HD Wireless Transmission Changes

Scenes in the Living Room

Beam steeringtechnology eliminating

the influence ofpeople crossing

Beam steeringtechnology eliminating

the influence ofpeople crossing

Compliant toVIERA Link

Compliant toVIERA Link

TV tuner, STB,Blu-ray Disc recorder,and Theater systeminstalled anywhere

TV tuner, STB,Blu-ray Disc recorder,and Theater systeminstalled anywhere

Renewing scenes of the living room in combination witha flat-panel wall-mounted TVProviding a system for simple connection, free layout, andsingle remote operation

34

Uncompressedwireless

transmissionof full-HDimages

Uncompressedwireless

transmissionof full-HDimages

Enjoy Video Clips on Internet TVEnjoy Video Clips on Internet TV

Enjoy rich contents of YouTube and Picasa on a large-screen TV with "VIERA CAST" Single-click access to the Internet on a remote controller

Easy access to YouTube clipsand Picasa photo sharingservice, weather forecasts andstock prices

Convenient and dramaticexperience on a large-screenTV unlike PC

VIERA CAST

home screen

YouTubevideo

35


19/20


New TVs to Enhance

CATV Programs

New TVs to Enhance

CATV Programs tru2way-ready TV TV incorporating OpenCable-

compliant digital cable

No need for a set-top box

Provides latest Comcast servicessuch as HD video on demand witha single remote controller

"AnyPlay" is atrademark of Comcast,

a U.S. company

AnyPlay

36

"AnyPlay," the first portable set-top box

Favorite recorded contents can beexported to cars and outdoor activities

Capable of playing DVDs

Achieve Digital HearthAchieve Digital Hearth


20/20

Disclaimer Regarding Forward-Looking StatementsThis presentation includes forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and

Section 21E of the U.S. Securities Exchange Act of 1934) about Matsushita and its Group companies (the Matsushita Group).

To the extent that statements in this presentation do not relate to historical or current facts, they constitute forward-lookingstatements. These forward-looking statements are based on the current assumptions and beliefs of the Matsushita Group in lightof the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks,

uncertainties and other factors may cause the Matsushita Group's actual results, performance, achievements or financialposition to be materially different from any future results, performance, achievements or financial position expressed or implied

by these forward-looking statements. Matsushita undertakes no obligation to publicly update any forward-looking statementsafter the date of this presentation. Investors are advised to consult any further disclosures by Matsushita in its subsequent filings

with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.

The risks, uncertainties and other factors referred to above include, but are not limited to, economic conditions, particularlyconsumer spending and corporate capital expenditures in the United States, Europe, Japan, China and other Asian countries;volatility in demand for electronic equipment and components from business and industrial customers, as well as consumers in

many product and geographical markets; currency rate fluctuations, notably between the yen, the U.S. dollar, the euro, theChinese yuan, Asian currencies and other currencies in which the Matsushita Group operates businesses, or in which assets

and liabilities of the Matsushita Group are denominated; the ability of the Matsushita Group to respond to rapid technologicalchanges and changing consumer preferences with timely and cost-effective introductions of new products in markets that are

highly competitive in terms of both price and technology; the ability of the Matsushita Group to achieve its business objectivesthrough joint ventures and other collaborative agreements with other companies; the ability of the Matsushita Group to maintain

competitive strength in many product and geographical areas; the possibility of incurring expenses resulting from any defects inproducts or services of the Matsushita Group; the possibility that the Matsushita Group may face intellectual property

infringement claims by third parties; current and potential, direct and indirect restrictions imposed by other countries over trade,

manufacturing, labor and operations; fluctuations in market prices of securities and other assets in which the Matsushita Grouphas holdings or changes in valuation of long-lived assets, including property, plant and equipment and goodwill, and deferred tax

assets; future changes or revisions to accounting policies or accounting rules; as well as natural disasters including earthquakes

and other events that may negatively impact business activities of the Matsushita Group. The factors listed above are not all-inclusive and further information is contained in Matsushitas latest annual report on Form 20-F, which is on file with the U.S.

Securities and Exchange Commission.

In order to be consistent with generally accepted financial reporting practices in Japan, operating profit (loss) is presented in

accordance with generally accepted accounting principles in Japan. The company believes that this is useful to investors incomparing the company's financial results with those of other Japanese companies. Under United States generally accepted

accounting principles, expenses associated with the implementation of early retirement programs at certain domestic andoverseas companies are usually included as part of operating profit (loss) in the statement of income.

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