Sustainability Management

and Information Disclosure

June 2, 2005

Yoshiaki AraiCorporate Environmental Affairs Division

Matsushita Electric Industrial Co., Ltd.

Corporate Profile of Matsushita Electric

Foundation: 1918Started business by only three people

Sales

8,713.6 billion yen / FY2005

No. of employees

334,752(March,2005)

Sales Manufacturing

170 countries

45 countries

Suppliers

Japan: Approx.

5,000 companies

Overseas: Approx.

6,000 companies

Overseas

47%Japan

53%

Sales

Overseas

55%

Japan

45%

Employees

Japan: 155Overseas: 182

No. of manufacturing sites

Founder Konosuke Matsushita(Business establishment at age 23)

At the Kyoto retreat, Shinshin-An

Business Domains in Matsushita Group

AVC Networks 　(41%)

Home Appliances 　(14%)

Victor Company of Japan(JVC) (8%)

Components and Devices 　　

(13%)

(% of sales in FY2005)

Other (7%)

Matsushita Electric Works and PanaHome 　

(17%)

"Deposits" entrusted from Society

Use for Society

Contribution to the Prosperity of Society

"Profit" is a Reward for our Contribution

Re-invest for Further Contribution Return to Society

Management Philosophy

People Land Building KnowledgeInformation TimeFunds

A Company is a Public Entity

Utilize

Products and Services

…

Company

Philosophy

Matsushita's Vision for the 21st Century

Coexistence withCoexistence with the Global Environment the Global Environment

Realizing a Ubiquitous Realizing a Ubiquitous Network SocietyNetwork Society

Digital Networks

Services &

Solutions

Enrichment of people'sEnrichment of people's lifestyleslifestyles

Components & Devices Production Systems

Business Vision Environmental Vision

Environmental Statement

Green Plan 2010Green Plan 2010

Environmental Vision

Environmental Technology & Ecological Thinking

Environment and energy business initiatives

New challenges for "Green" Products

Environmental communication

"Green" marketing and

distribution

Environmental management and human resources

development

New challenges for Clean Factories

Strengthening of product recycling

Coexistence withCoexistence with the Global the Global

EnvironmentEnvironment

Home Appliances Environmental Systems

ET2!

1972: Established the Environmental Management Office

1991: Formulated the Matsushita Environmental Charter

1995: Started development of the environmental management system

1997: Established the Environment Conference

1999: Completed the acquisition of the ISO 14001 certification at all manufacturing sites worldwide

2001: Started the home appliances recycling

2001: Held the Environmental Forum in Japan and Europe

Announced the Environmental Vision and Green Plan 2010

2004: Completely eliminated lead solder from all products worldwide

Corporate Environment Conference

Environmental Forum 2001 (Freiburg,Germany)

History of Environmental Activities

Status of Acquiring ISO 14001 Certification

(As of March 2005)

18 58

73

1726

60

10

1

Manufac-turing

Non-manufac-turin

gTotal

Japan 73 17 90

Overseas 162 13 175

Total 235 30 265

2

* Since an increasing number of site acquire integrated certification, these figures are different from the number of individual sites.

The establishment of environmental management systems (EMS) forms the foundation of all environmental programs.

China and Northeast Asia

Asia and Oceania

Japan Americas

Europe

Data-based Management and Information Disclosure Serve as the Driving Force for Environmental Initiatives

Environmental Performance Report

We have collected data from all ma

nufacturing sites since 1991.

(Currently from some 450 global sites)

Energy, water, waste, GHGs, chemical substances, air, water quality, noise, vibration, compliance with laws, logistics, communications and site overviews (ISO certification, etc.)

Started to collect data by fax, but n

ow have a web-based system.

Annual management Monthly management

Sustainability Report

We started to publish it in 1997

and distribute copies at the

Shareholders' Meeting every June.Published data, specific examples,

our vision for the future and key subjects.

Improved the content of our report by changing the name from Environmental Report to Sustainability Report.

Domain companies and sites disclose their independent data.

Report to administrative bodies

Input and Collect Output (Disclosure)

Overall Structure of Sustainability Management Systems

Search of environmental law-related information

Search of environmental law-related information

Environmental accounting

Site reports

Contained substances

PRTR

Environmental assessments

Environmental impact DB Sustainability

Report

3DCAD parts lists

3DCAD parts lists 　　　　

Part DB

Manifest

Compliance with laws

Waste DB

Part DB

Supplier DB

Chemical substance DBPart DB

Chemical substances

1

2

3

4

Energy

General wasteWater

Environmental investments

PRTR

Industrial waste

Comprehensive chemical substance management

1 3 4

Material purchase records

Parts lists

Manufacturing process DB

ECO ASSIST

Chemilution

Industrial waste

2

5

GP-Web

Material DB

ET manifest

Environmental performance

Product chemical substance management

Chemical substance management at factories ET manifest

Environmental performance

Product chemical substance

management

(Supplier surveys)

(Data collection)

Product assessments(Environment conscious

design)

Chemical substance management at factories

Waste management at factories

Product assessments

5

Information disclosure in compliance with guidelines

Definitions of sustainability

Visions & Action 　 Plans

Minimum Minimum requirementsrequirements　　

Started to publish reports and disclose information

Environmental Reports Economic performance and social responsibility reports

AccountabilityAccountability　　

Leading enterpriseLeading enterprise 　 　

Advanced Advanced enterpriseenterprise

2003

2004

2005

(Environment) Environmental Reporting Guidelines 　 (CSR) GRI Guidelines 　　　

Steps of the Development of our Non-Financial Reports

Information disclosure, which started with the environmental sector, now complies with the guidelines and almost reaches to a complete level.

2002

2001

2000

1999

1997, 1998

Dialogue with communityIncorporation in business operations

Overview of Environmental Reporting The Panasonic Report for Sustainability Environmental Data Book

Corporate non-financial reports Environmental performance data

Japanese site

Japanese English

Sustainability Data Files

Domain environmental report

Japanese site

Englishsite

Japanese site

(Japan)

Chinese site (China)

English site (Others)

Site environmental report

English site

Individual domain companies' environmental performance data

(Total 11 domains)

Chinese

Performance data including social aspects

Individual manufacturing sites' environmental performance data

(Japan: 153 sites; Overseas: 181 sites)

Chinese Japanese English Third-party

assessments

Bo

ok

let

We

b

Third-party assessments

Third-party assessments

Ensure Compliance with Guidelines by Using the Web

Disclose detailed information for each item.

The Table of contents conform to

the GRI Guidelines and Environmental Reporting

Guidelines (Japanese Ministry of the Environment).

Backing of Society Serves as the Driving Force for Information Disclosure

The Global Reporters 2004

Ministry of the Environment

(Ratings of Matsushita) Grand Prize:

3 timesOutstanding

Performance Prize: Once

Meister Award: Twice

Toyo Keizai Inc. (publishing firm)

(Ratings of Matsushita) First Prize:

OnceOutstanding

Performance Prize: Twice

Excellence Prize: 4 times

Sustainability Reporting Awards (since 1997 in Japan)

Socially ResponsibleInvestment (SRI)

Dow Jones Sustainability

Index

FTSE4 good

Ethibel

Ratings and rankings

Tohmatsu environmental ratings

Sustainability management level rankings

Environmental brand rankings

A wide variety of evaluation and ratings

Rank Enterprise Country

1Co-operative Financial

Services (bank) UK

2 Novo Nordisk (pharmaceutical) Denmark

3 BP (oil ) UK

4 British American Tobacco UK

4 BT Group (telecom services) UK

6 BAA (airport administration) UK

7 Rabobank (bank) Netherlands

8 Rio Tinto (mining) UK and Australia

8 Royal Dutch Shell (oil) UK and Netherlands

10 HP US

10 Unilever 　 UK and Netherlands

Japanese companies ranked in the top 50

34th Matsushita Electric

39th Daiwa Securities

45th Sony 47th Ito-Yokado

Information Disclosure and Communications

Sustainability Report Environmental Forum Marketing Website

Sh

areh

old

ers

Inve

sto

rs

Various Stakeholders

Co

nsu

mer

s

NG

Os

NP

Os

Lo

cal

resi

den

ts

Em

plo

yees

Bu

sin

ess

par

tner

s

Aca

dem

ic

org

aniz

atio

ns

Mas

s m

edia

Go

vern

men

t o

rgan

izat

ion

s

HFC-free Refrigerators

NR-F462U

Prevention of global warming 　

0

1,300

0 　

3 (1/400)

Ozone depletion coefficient

Global warming coefficient

HFC gas HFC-free　

Energy conservation 　　　

Annual power consumption (kWh/year)

10 years ago HFC-freerefrigerators　　

1,190Reduced to approx. 1/6

200

Information Disclosure (FY2004 results)

1Sustainability Report

350,000 copies

Japanese, English and

Chinese

2Environmental website

150,000 accesses

3Participation in exhibitions

10 events Eco-Products

2003, etc.

4 News releases 23

5Newspaper advertisementsTV commercials

Newspaper

advertisements: 7

TV commercials: 3

6Lectures at symposiums and seminars

44

7 Replies to questionnaires 28

8 Direct disclosure via e-mail, etc. 1,058

TV Commercials

HFC-free refrigerator

"Clouds in the Sky"

HFC-free refrigerator

"Demonstration of Heat Insulation"

Dishwasher

"Faucets"

Tilted drum washing machine

"Miracle of Water"

Home appliance recycling

"Glass Sands"

Home appliance recycling

Leave it to wool

Communications with Stakeholders

Discuss new partnership

among society, NGOs and

corporations.

Learn the readers' impressions

and questions about our

Sustainability Reports.

Stakeholder meeting Meeting to Read

the Sustainability Report

Reviews by Third Parties

Third Party Comments Report of The Natural Step International

Third Party Analysis Report of Azusa Sustainability Co.

Thank you for listening our presentation

Environmental Technology & Ecological Thinking

Live broadcast at the Panasonic Center Tokyo

Matsushita Eco Technology Center Co., Ltd. Opening of the factory to the public

Some 38,000 people visited since 2001

Opening of Home Appliance Recycling Factory to the Public

Publication on the website