Shusaku Nagae. Panasonic Corporation June 17, 2015

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Initiative for Smart Communities: Aiming for eco, sustainable, and comfortable living Shusaku Nagae Chairman of the Board Panasonic Corporation June 17, 2015

1 About Panasonic Group 1

2 About Panasonic Group Foundation 1918 FY2014 Financial Results Founded by Konosuke Matsushita Sales and two family members Operating profit 7.715 trillion yen Workforce 381 billion yen 254,000 employees Sales by Region China 13% Asia Attachment plug 1918 Double cluster socket 1920 14% Europe 9% Americas 16% Japan 48%

What Panasonic aims to become Leverage our Consumer Electronics DNA to be closer to customers and make contributions to their lives 3

4 2 Direction and initiatives for Smart Communities in Japan

Japan s energy policy: Supply and demand structure change Aim for highly energy-efficient society and smart/flexible consumption Fulfill energy-oriented growth strategy (Smart Community) 5 Transforming the supply side Electricity System Reform Wide-area system operations (2015) Retail liberalization (2016) Separation of power generation and transmission (2018-2020) Transforming the demand side Energy-efficiency Improvement Smart Meter installation (early 2020s) Building net-zero Energy House (ZEH) (Standard installation in new houses by 2020) Promoting HEMS (in all houses by 2030) Energy Infrastructure Smart supply and demand Smart Community

Aiming to create Smart Communities Offer sustainable but high-quality living with eco, comfort and safety Offer home to town solutions through various products and services Smart Houses Social infrastructure S Smart t Towns T Renewable energy EVs (EV power charge) Smart condominiums Smart facilities (stores/buildings) 6

7 3 Panasonic s initiatives for Smart Communities: (1) Smart House

Houses Panasonic aims to offer Comfort Convenience Pleasure Safety Security Health Smart House Efficient use off energy Implemented by Smart HEMS 1. Efficient use of energy 2. Comfortable and convenient g spaces p living 3. Fully prepared for emergencies 4. Offering advanced IT services Smart HEMS AiSEG: HEMS controller 8

Smart HEMS: 1. Efficient use of energy Visualized energy information e.g. Integrated monitoring of electricity/gas/water consumption, generation(pv), and residual capacity(storage Battery) Controlling application Automated air-conditioner control e.g. Switching automatically to eco-temperature control after 30 minutes of operation PC TV Smartphone/table Automated water heating by surplus power e.g. Heat water automatically by using excess electricity, depending on weather forecast and amount of energy used 9 Automated p peak-use control e.g. Automatically adjust heating power of IH cooker to reduce a peak-use

Smart HEMS: 2. Comfortable and convenient living spaces Offering convenient services Providing warnings about humidity, temperature, and air conditions 10 Triggering energy savings Cloud The room temperature is Informing you about 35 C now. Please turn on energy-consuming appliances Air-conditioner. Sending notices for maintenance Informing you about which part requires replacement as well as its replacement period Ventilation-fan filter Storage battery unit Smart HEMS Indoor air quality is not good. Please turn on ventilation fans. The pollen count is high. Please wear a mask.

Smart HEMS: 3. Fully prepared for emergencies (safety & security) Daily monitoring of Sending notices of energy energy consumption consumption analysis Information on safety of an Energy consumption in a day elderly person living alone 11 Amo unt of electric city used (wat tt/minute) 50 45 40 35 30 25 20 15 10 5 0 AC IH cooker Child s room Hairidryer Microwave 6am 12am 6pm 12pm Morning Daytime Evening Amo ount of electric city used Oct: Amo ount of electricity used Energy not used 1st 2nd 3rd 4th 5th I m worried about living alone Information on a child s returning home Energy used in a child s room I m home! 6am 12am 6pm

Smart HEMS: 4. Offering advanced IT services toward the future Planning to respond to a variety of billing systems in line with liberalization of electric power retailing in 2016 12 Diversified rate systems Time of Use Critical Peak rate Pricing Notice Sending notices with advice The rate is higher during the following hours. Reduce electricity consumption! 13:00 to 15:00, August 14 (Additional charge: 80 yen per kw/h) Price Peak-cut operations during peak- load hours Time of day Time of day Automatically keep eco temperature Automatically suspend EV power charge Respond to the new devices and new services with updating a AiSEG(HEMS controller)

Initiative for a net-zero Energy House Lower energy consumption, while creating more energy in a home Offer a net-zero-energy lifestyle with high energy efficiency and economy Energy creation Efficient use of energy S Smart t HEMS PV and PVs d St Storage battery b tt unit it Lighting and AC Remote control Effi i Efficient use off energy Thermal insulation throughout the house Highly energy-efficient ventilation systems Heat-pump water heater Automatic control CE Monitoring 13

Wider use of renewable energy 14 Bundling PV panels and Energy Creation-storage Linked Systems to maximize in-house consumption of self-sufficient energy HIT PV module energy creation Offering cash back incentives to customers to introduce PV-storage battery systems Offering special privileges to customers taking part in our excess energy purchase program for dissemination of solar home systems PV-storage battery s integrated systems enable us to energy storage efficient linkage In daily life: - Efficient energy creation by HIT panels - Saving utility costs by using energy stored in storage battery unit during the night Storage battery unit Energy Creation-storage Linked Systems Even during energy shortage: - Utilize energy created by PVs, stored in storage battery unit

15 3 Panasonic s initiatives for Smart Communities: (2) Smart Town

Panasonic s concept of Smart Town Aiming for the development of a town based on residents actual lifestyles Offering services, living spaces and infrastructure, always considering the kinds of sustainable smart lifestyles we can provide Proposing sustainable smart lifestyles based on 5 advanced services Providing design of smart spaces connected to the local community Creating a smart infrastructure for ICT and energy Town energy network Town information network 16

Our initiative in Japan Fujisawa Sustainable Smart Town 17 Developing an actual eco and smart town sustainable for 100 years Wellness Square Condominiums(plan) Detached houses FSST Square Committee Center Next-generation logistics center (plan) Commercial facilities Area size Planned buildings About 19 hectares ( = 4 Tokyo y Domes)) Population About 3,000 3 000 people To be completed FY2018 About 1,000 households plus commercial and public facilities

Setting aggressive targets at Fujisawa Sustainable Smart Town Environmental targets Reduction of water Overall targets Energy target Use of Renewable energy CO 2 reduction 70 % 30 % +30 % consumption or more (cf. 1990) (cf. 2006) Safety/security target Lifeline maintenance 3 days 18 Self-creation and self-consumption of energy PV panels Virtual gated town Security cameras Total mobility services Storage battery unit LED street lights with human-detect sensors EV power charger

Platform and services supporting Fujisawa Sustainable Smart Town 19 Fujisawa SST Committee (Community Organization) Fujisawa SST Management Company One-stop Community Business service development incubation Fujisawa City Partner companies

4 Our future initiatives 20

Our future initiatives 21 Develop Smart Communities rooted in local needs and lifestyles China Japan Tianjin Eco-City Dalian BEST City Tsunashima SST Fujisawa SST Singapore Southeast Asia Smart City Shioashiya Kuantan, Malaysia Kuala Lumpur, Malaysia Iskandar, Malaysia

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