Group CEO New Year Message to Employees: 2026 as the “Year to Achieve a Turnaround to Our Growth Phase”

Happy New Year.

Kusumi: Happy New Year. This year, we will prioritize health and safety, and work together with Group employees to make 2026 a year of powerful progress and significant leaps forward. I look forward to your continued support.

I’d like to start by taking a look back on 2025. What kind of year was it?

Kusumi: This year marked the beginning of our group management reform, which we announced in February and May, and in May specifically, we shared our plan for Groupwide personnel optimization involving about 10,000 people. I acknowledge the burden and anxiety this has caused employees and am truly filled with gratitude for the tremendous efforts they have made given the circumstances.

Optimizing personnel is just the first step in our transformation. The real work begins now. We will sharpen every aspect of our operations, including leveraging data and AI, to enhance our efficiency and accelerate our speed. This means pursuing continuous reform to deliver the results we promised. We are currently advancing discussions on additional reforms to shape the Group’s future. We intend to fully refine our approach and share our plans at the appropriate time.

In 2025, you delivered the opening keynote at CES* in Las Vegas and Expo 2025 Osaka also took place.

*The world’s largest technology trade show held in Las Vegas, Nevada, every January.

Kusumi: During the opening keynote at CES in January 2025, we announced Panasonic Go to demonstrate our commitment to fully leveraging the power of AI for growth. We are determined not to lag behind the competition in this area. In June, we invited the University of Tokyo’s Professor Yutaka Matsuo, a leading authority on AI research in Japan, to join us as an outside director. He provides us with a variety of guidance, including critical feedback.

Then came the Expo 2025 Osaka, which opened in April. While we saw a variety of opinions before it opened, once the event actually began, its reputation steadily grew. The Panasonic Group Pavillion, “The Land of NOMO,” also exceeded its target of 450,000 visitors—welcoming an estimated 470,000 people, including approximately 110,000 children. Although the pavilion was designed for children, I felt that adults were also able to enjoy the experience. I would like to once again express my gratitude to the many employees involved in Expo 2025.

In October, a signing ceremony was held for the Framework Agreement on investment between Japan and the United States, and I met with President Trump on that occasion. As was reported, based on the “Memorandum of Understanding with Respect to Strategic Investments” concluded between the two countries in September 2025, the Japanese government will invest $550 billion in the United States. Under this initiative, our company has agreed to invest up to $15 billion to supply energy storage systems, other electronic devices and components, and strengthen supply chains in the U.S.

Since the latter half of 2025, you have repeatedly and strongly emphasized the word “Win” to employees. What was your thinking behind that?

Kusumi: I believe all Panasonic Group employees are highly capable individuals. However, when it comes to delivering results, that isn’t always the case. This is very frustrating, and I believe our employees feel the same way.

On the other hand, some businesses that have spun off from Panasonic Group are now performing very well. I believe this is because everyone there, with their backs against the wall, truly committed to unleashing their potential and fundamentally changing how they work. I believe that same potential exists within Panasonic Group. If systems need changing, then change them. But there should be plenty of things we can do precisely because we’re part of the Group.

Above all, every employee shares Panasonic’s Basic Business Philosophy—wanting to “contribute to society” and “delight customers,” and to earn a profit in reward for such efforts. If we can become unrivaled in our contribution to society and customers, then we can produce results. Rather than being content with the status quo, we must maximize our potential and continuously change the way we work. This, I believe, will lead us to “Win.”

What should the Group aim to achieve in 2026?

Kusumi: In a nutshell, our goal is to “achieve a turnaround to the growth phase.” Starting in April, we will move to a new structure and a new Mid-Term Plan. Instead of sticking to a fixed three-year term, we will update strategies every year to adapt ourselves to the coming three years.

I’ve chosen “Yomigaeru” (meaning “reborn”) as this year’s kanji (Chinese character) to signify our transition to the growth phase. The former Matsushita Electric Industrial and Matsushita Electric Works possessed exceptionally resilient business capabilities. That resilience must be “reborn” as a Group. As we transition into our growth phase, we will make a fresh start with a new approach. This is why I chose the kanji “Yomigaeru.”

As I mentioned earlier, every single employee of the Panasonic Group has tremendous potential. To truly unleash that potential, we must never be satisfied with the status quo. Even if we achieve our business plans, we can always aim higher and cannot afford to rest on our laurels. Set ambitious goals, don’t be complacent, and commit wholeheartedly to continuous change. The result will be steady progress. I am determined to realize this “revival” for our Group. As a result of our unrivaled contributions to our customers and society, we will achieve an adjusted operating profit exceeding ¥600 billion in fiscal 03/27. This would be the Group’s highest operating profit since its founding. Let’s achieve this goal together.

What are your expectations for each employee?

Kusumi: To reiterate, every employee should be committed to constantly challenging themselves. To do this, you cannot be satisfied with the status quo. You must constantly seek out opportunities for improvement and reform.

The words of Founder Konosuke Matsushita that have remained with me since joining the company are: “This won’t do.” Panasonic is, obviously, a large company. Not just our operating companies, but even some of our business divisions rival companies listed on the Tokyo Stock Exchange Prime Market in terms of scale. Within such a massive organization, which approach is more powerful: continuing to work according to the status quo or challenging each employee earnestly and continuously to improve and transform the way they work? The answer is obvious, isn’t it?

Each and every individual at the frontlines constantly thinks, “We can do better” and then pursues relentless improvement through continuous refinement. This approach is driven by extraordinarily ambitious goals. This mindset is deeply rooted in Panasonic Group’s heritage, and embodies the spirit of “employee entrepreneurship” as described in our Basic Business Philosophy. I firmly believe that if every employee throws themselves into their work with the same spirit as the owner in the episode “A customer-loving noodle shop”—a concept articulated by Founder Konosuke Matsushita—then Panasonic Group will undoubtedly be “reborn.” “I will be the one to change this organization, this Group”—I expect you to take on the challenge with this mindset.

This year, we will be “reborn” as a resilient group where every employee can feel their own growth and the growth of the Group. This is the kind of year I want us to have. I look forward to your continued support.