Relevant Press Releases

3. Targeting a V-shaped recovery (Slide-3)
Matsushita must increase sales and reduce costs in order to realize a V-shaped recovery.

1. Drive to spur sales
   Matsushita aims to increase its market share in the high-volume segment of each product category and enhance profitability, by launching new lines of competitive products, which the company refers to as "Victory 21" products. Furthermore, of the 85 billion yen in cost savings from restructuring of domestic consumer sales and distribution, the company will reinvest 60 billion yen into aggressive marketing/advertising aimed at enhancing the domestic market share of Matsushita's consumer products.
2. Cost reduction initiatives (Slide-4)

Matsushita aims to improve cash flows from operating activities by 200 billion yen or more in fiscal 2003 with emphasis on the following areas:
• Inventory: 30% reduction from March 2001 level (49 days -> 34 days)
• Capital investment: Optimum utilization of assets, and review of investment strategies
• Cost reductions: Reduction of parts, materials and other costs

Through the above initiatives, for fiscal 2003, Matsushita will strive to achieve a 5% improvement in sales over fiscal 2002 and an operating profit approaching fiscal 2001 levels. For fiscal 2004,^* Matsushita aims for an operating profit of 5% or more, and a capital cost management index of 0 or higher (capital cost management is Matsushita's internal yardstick for improving asset efficiency).
* Due to sharp declines in consumer demand, downturns in the global IT industry and the September 11 terrorist attacks, Matsushita President Kunio Nakamura stated that the company has no choice but to revise the previously announced sales goal of nine trillion yen.

4. Service businesses

• Matsushita will actively promote (1) its e-Platform services, which are centered on digital TVs, (2) mobile multimedia services, propelled by third-generation cellular phones, and (3) living environment-related services, including environmental solutions businesses.
• In the area of home facilities maintenance services, Matsushita is currently developing member support services that include inspections and repairs.