Interview with Group CEO Kusumi: Panasonic Group's Medium- to Long-Term Strategy

We have established three KGIs through to the end of FY2024: achieving cumulative operating cash flow of 2 trillion yen and cumulative operating profit of 1.5 trillion yen from FY2022 to FY2024, and reaching a return on equity (ROE) of 10% or higher by FY2024. Using our earned cash to invest appropriately is essential for the Group to get back on a growth track and we therefore place the greatest emphasis on achieving the KGI on cumulative operating cash flow. The target of 2 trillion yen may seem high considering the current level. However, I believe there is significant room for improvement in our operational and cost capabilities after looking at ways to enhance our competitiveness in the last fiscal year.

It is important to realize that simply reaching these targets is not enough. We must adapt to our environment and reach for excellence as outlined in our Basic Business Philosophy. All of us - our operating companies and other workplaces - can improve and break records at a fierce pace by working to the best of our abilities. If we aim higher and go further, we could look to exceed the high targets we have set for the KGIs.

*CO2 emissions from energy use in 2019: 33.6 billion tons (source: IEA); 300 million tons is calculated using 2020 emission factors.

In 2017, the Panasonic Group committed to using less energy than the energy created in our Environmental Vision 2050 but the effects of climate change have become increasingly apparent. We re-examined our goals and recognizing the urgency of tackling climate change, we have presented our goals for 2050 in terms of our contribution to CO2 emissions reduction.

In May last year, the Panasonic Group committed to achieving virtually net-zero CO2 emissions at all of our operating companies by 2030 under Scope 1 & 2 emissions (GHG Protocol-based classification). We are doing everything in our power to reach this goal.

We set an ambitious goal for 2050: reducing CO2 emissions by more than 300 million tons. This is what we aspire to contribute to our future together and is closely tied to the Panasonic Group's principle of striving toward realizing an ideal society where we live in material and spiritual abundance. I do not know whether I will still be alive in 30 years' time but the advancement of climate change must be halted considering its potential impact on our children and grandchildren. With most of our businesses focused on electrical products and the switch to renewable energy sources already gathering momentum, it may seem like there is little we need to do. However, we intend to take our future and our responsibility against climate change seriously. We have therefore specified our goals in terms of our CO2 emissions contribution by 2050 and will examine every way to achieve these.

Our founder had been pondering the place and responsibilities of a company in society for a while and at the company's founding ceremony in 1932, he spoke of the company's true mission and the tap water philosophy - where a manufacturer's mission is to overcome poverty by providing goods as plentiful and cost-effective as tap water, as well as laid out his vision in a 250-year plan. Our new brand slogan is based on Konosuke Matsushita's words, "Only when there is spiritual peace of mind and a limitless supply of material goods will happiness be stable in life. This must be our true mission as an industrialist." Stabilizing happiness in life has been our company mission since those words were spoken at that ceremony 90 years ago. The phrase can be understood to mean "sustainable happiness" or "sustaining well-being" in English. The Panasonic Group has always been a company that strives to achieve this goal, and with our firm resolve to help individuals achieve sustainable well-being, we have decided to use this phrase to return to our roots and incorporated this concept in Live Your Best.