Panasonic to Make Full-scale Development of Housing Equipment and Construction Material Businesses in China

Osaka, Japan - Panasonic Corporation announced that it will make a full-scale entry into the Chinese housing equipment and construction market in FY2012, providing its sophisticated and exceptional quality products and contributing to security and safety in housing in China.

Apartment blocks are the principal style of housing in China. These apartment blocks are usually sold as a skeleton around which the constructor builds rooms to their own independent design, but this style of construction can face a number of problems, including greatly varying levels of workmanship, delays in completion and noise. In order to overcome these problems, Panasonic will use its know how in housing equipment and construction materials developed in Japan to handle fully integrated product development, manufacture, sales, lifestyle suggestions, spatial design, construction and customer services in China, providing new value in housing with long term guarantees for quality.

In addition, Panasonic will expand its region of business and sales channels in FY2012. While selling products to improve indoor environments, a point of increasing concern in China, and with consideration to health and beauty, the company will provide comfortable and convenient components for housing equipment commercially developed in Japan as housing equipment devices and increase sales of these to local manufacturers.

Through these initiatives, Panasonic is aiming for sales growth in China from 8.5 billion yen in FY2011 to 25 billion yen (approx. 2 billion RMB) in FY2015. By increasing its international business operations centered on China, the company is aiming for 40 billion yen (approx. 3.2 billion RMB) in sales globally in FY2015.

• •Panasonic introduces new values for housing in China Vol.1
  http://ch.panasonic.net/contents/10216/
• •kitchen & Bath China 2012 - Panasonic introduces new values for housing in China Vol.2
  http://ch.panasonic.net/contents/10212/

Panasonic's History in the Chinese Housing Equipment and Construction Materials Businesses

1996	Established Shanghai Matsushita Electric Works (manufacturing company)
1997	Established Matsushita Electric Works (China) (sales company), began sales of system kitchens, etc.
2003	Established Panasonic Electric Works Chengyi Decoration Shanghai (interior decoration company)*1 Established Panasonic Electric Works Yida Decoration Engineering Dalian (interior decoration company)*2 Began interior decoration business operations for consumers (BtoC)
2007	Began primary interior construction (advanced interior decoration) business (BtoB) (for developer creation of housing with interiors)
2012	Expanded interior decoration engineering business, began supply of housing equipment devices

Note 1: Jointly owned with Hangzhou Shenglian Engineering (206 Shaoxing Rd., Hangzhou, China; CEO: Mr. Wei).
Note 2: Jointly owned with Yida Group (Yida Plaza 4, 99 Northeast Road, Shahekou District, Dalian; CEO: Mr. Sun), a major developer in Dalian.

Outline of Business Developments

1. (1) Expansion of interior decoration engineering business (BtoC: expanded partner distributors for interior decoration engineering; BtoB: expanded business region for interior decoration construction)
2. (2) Strengthened product sales (fuller utilization of high quality sophisticated products, expanded sales of housing equipment devices)
3. (3) Using Panasonic's sophisticated products and networking technology to achieve lifestyles a step into the future with comprehensive solutions for interior decoration construction

Future Business Expansion

(1) Expanding partner distributors for interior decoration construction sales

Until now, Panasonic Eco Solutions Company has advanced its interior decoration construction business through its own Interior Decoration Construction Company, but last year it set up a directly-managed outlet for that company to make interior decoration proposals for Panasonic to ordinary consumers and offer renovation services as well.

By horizontally developing this directly-managed outlet business model while promoting partnerships with interior decoration construction distributors in its target regions, the company intends to strengthen its BtoC operations with 300 shops in 9 regions by FY2015.

[Main Features of Directly-managed Outlets]
? Easily understood interior decoration solutions using 3D planning systems.
? Shorter delivery times for production order items for kitchens etc. by collaboration with local factories.

Expanding the business region for (advanced) interior decoration construction

The company has built up its business through partnerships with major developers primarily in Shanghai, Shenzen, Beijing and Dalian, and is now moving into more cities such as Chengzhou, Ningpo and Hainan.

The company has already received orders for primary internal decoration in Chengzhou and Ningpo and have started sales.

(2) Strengthened product sales (fuller utilization of high quality, sophisticated products, expanded sales of housing equipment devices)

In response to the great demand for health, beauty and clean indoor environments in China in recent years, Panasonic has created a wide-ranging lineup of products to realize comfortable lifestyles in China, reducing time needed for regular maintenance and so on.
In addition, the company is greatly expanding sales to kitchen / furniture manufacturers in China of housing equipment devices using high quality sophisticated components as used in housing equipment materials sold in Japan.

(3) Realizing Lifestyles a Step into the Future

In response to the Chinese government's key strategies of Eco Cities and Smart Grids and moving to a low-carbon society and to the demand of Chinese consumers for safety, security and physical and mental health, Panasonic is working to create systems and solutions technology (e.g. HEMS^*3) to minimize environmental impact and achieve comfortable, smart lifestyles for entire homes.

Through its sophisticated products, and technology to connect, provide information on and control these products, Panasonic is working to realize smart lifestyles and provide living spaces a step into the future with its comprehensive solutions through interior decoration engineering.

Note 3: HEMS: Home Energy Management System A system networking power-consuming products in the home to automatically control them and aid energy management for the family.

About Panasonic

Panasonic Corporation is a worldwide leader in the development and manufacture of electronic products in three business fields, consumer, components & devices, and solutions. Based in Osaka, Japan, the company recorded consolidated net sales of 7.85 trillion yen for the year ended March 31, 2012. Panasonic's stock is listed on the Tokyo, Osaka, Nagoya and New York (NYSE:PC) Stock Exchanges. The company has the vision of becoming the No. 1 Green Innovation Company in the Electronics Industry by the 100th year of its founding in 2018. For more information on Panasonic, its brand and commitment to sustainability, visit the company's website at http://panasonic.net/.