SANYO North America

SANYO North America Corporation President Masami Murata

My name is Sam (Masami) Murata, president of SANYO North America Corporation (SNA). As president of SNA, it is my mission and vision to make SANYO North America Group a global company that is known throughout North America as the leading provider of unique and total sustainable solutions for all lifestyles and industries.

SANYO currently offers world-leading technology in solar cells, has a world-leading market share of rechargeable batteries, as well as a long history of manufacturing energy-efficient electrical systems and equipment. But what makes SANYO particularly unique from our competition is the ability to deliver highly innovative, multi-dimensional and integrated energy- and environmental-related solutions, designed to meet the needs of all consumers and businesses. Through the utilization of our strong sales channels, combined with our superior product offerings, I am confident that SANYO will achieve its mission of becoming the leading provider of energy- and environmental-related solutions throughout North America.

Most recently, SANYO has achieved some notable accomplishments in the advancement of environmental and renewable energy solutions for the North American market. In 2009, our company further expanded its solar production capabilities in the U.S. with the opening of a state-of-the-art solar ingots and wafers manufacturing plant in Salem, Oregon. Also, just recently in June 2010, we were proud to have executed an important agreement with the University of California San Diego (UC San Diego) to advance and collaborate on multi-year, multi-disciplinary projects in the areas of renewable energy and energy storage research, development and education. Through this collaboration with UC San Diego, we will establish a Smart Energy System for use as an open platform on UC San Diego's campus, serving as an example of local power generation for local consumption (solar panels generate energy, which can be stored in local rechargeable batteries, and then used in local energy-efficient appliances). Longer term, it is our goal to lead the renewable energy revolution through this partnership with UC San Diego, which is well known for its sustainable research and use of solar technologies. In addition, SANYO launched mass production of high-capacity & high-voltage lithium ion battery in March 2010, and has conducted some demonstration projects in Japan.

Finally, by combining SANYO's strengths with the extensive capabilities and resources of Panasonic, which recently acquired our company in December 2009, I am confident that we will build a stronger organization that continuously meets the needs of today's businesses and consumers, while helping to ensure a sustainable future for everyone across the globe.

THE SANYO Group fulfills its social responsibility through providing products and services that support modern living and make environmental contributions

Under the management philosophy: "We are committed to becoming an indispensable element in the lives of people all over the world," the SANYO Group advances its business activities. With this management philosophy being the source of our CSR activities, the SANYO Group is aiming to become a corporate group that is loved and trusted by people around the world by providing excellent products and conscientious services as well as developing original technologies. To win a customer's trust, it is essential for a company to provide products and services, including elements like safety and reliability, at a level of quality that satisfies the customer. "Providing high-quality products and services" is an important theme for the SANYO Group, which we must continuously keep in focus and advance in the future.

Further, it is important that the products and services SANYO provides are highly regarded from the perspective of being sensitive to the environment. Today, we are facing various "global environmental problems," in particular "global warming," which may threaten the sustainability of the human race. With increasing environmental awareness in society, addressing environmental issues is a vital challenge for a company to continue in business. Considering this as a top priority challenge for corporate management, the SANYO Group, as it aims to become a "leading company for energy and environment," is advancing development of various environmentally-conscious products by strengthening, fostering, and expanding environment-serving businesses.

Advancing development of products that will help realize a low-carbon society

Amid the ongoing global economic downturn, SANYO is operating in an extremely harsh business environment. To find a way out of this economic crisis, various nations have passed large-scale economic measures with an eye to environmental issues, such as the Green New Deal in the U.S.A., European Economic Recovery Plan, and Package to Address Economic Crisis in Japan. Common keywords found in these measures are Diffusion of next-generation vehicles; Utilization of renewable energy sources; and Construction of an energy-saving society.

The SANYO Group's technologies for "Energy Generation," "Energy Storage," and "Energy Conservation" enable us to create various environment-related products which are directly related to the economic-stimulus packages and environmental measures of these nations, such as photovoltaic systems, HEV rechargeable batteries, and various energy-saving equipment, including commercial equipment. In this regard, we are confident we can make a significant contribution to realization of a low-carbon society. The SANYO Group will continue to vigorously advance development of these "Energy Generation/Storage/Conservation" technologies.

Further, through promoting the diffusion of photovoltaic systems, rechargeable batteries, and various energy-saving products, SANYO will contribute to the control of household and industrial CO2 emissions. Our aim is to produce a CO2 emissions control effect through use of our environment-conscious products that is at first equal to, and, ultimately, significantly surpasses the CO2 output from our business activities, so as to make a substantial contribution to the realization of a "carbon minus*" society. Expecting that the changing business environment will bring about great opportunities, we will steadily advance to make a great leap forward in the future. In this way, we will realize further business growth and a stronger management structure.

Carrying through with the Mid-term Management Goals and pushing forward to become a "leading company for energy and environment"

Toward the fulfillment of the Mid-term Management Policy ? Becoming a "leading company for energy and environment," the SANYO Group launched the new Mid-term Management Plan with the Mid-term Management Goals: "Challenge 1000" in fiscal 2008. However, the financial crisis stemming from the subprime loan problems in the U.S. reverberated throughout the real economy, resulting in a once-in-a-century kind of global recession. This has led to reductions in corporate capital investment and a sharp decline in consumer spending, creating extremely harsh conditions for SANYO during the first year of the plan.

Under such deteriorating economic circumstances, we have partially revised our Mid-term Management Plan and specified Intensive Strengthening of Management Structure and Reconstruction of Growth Strategy as priority policies for fiscal 2009. Through all directors and employees working together in accordance with these policies to overcome the harsh business environment, we firmly believe that we will unfailingly achieve the Mid-term Management Goals, "Challenge 1000," in fiscal 2011.

In December 2008, SANYO and Panasonic Corporation entered into a capital and business alliance agreement. As well as continuing our own efforts to improve business performance, we will work to yield maximum synergy effects with Panasonic in various areas to ensure stable generation of revenue.

Realizing continued growth while bringing stakeholders greater satisfaction

The SANYO Group's social responsibility goes beyond providing high quality products and services and expanding environmentally-conscious products. We think it important to make social contributions by enhancing the satisfaction of customers, distributors/retailers, business partners, and all other stakeholders throughout the product life cycle from use to discarding to final disposal so as to forge a Win-Win relationship with them. To this end, it is vital that the quality of products and after-sales-service is improved, supply-chain management is strengthened, and a work culture is created so that a higher level of satisfaction is enjoyed by the employees who support these.

In today's economic environment, which is undergoing a radical transformation worldwide, businesses are required to swiftly respond to changes in society. By keeping firmly in mind that our business activities are only possible through association with various people and organizations, SANYO will continuously strive to be an enterprise capable of achieving lasting growth, as well as living up to the expectations of the stakeholders. Our ultimate aim is to "Become an indispensable element in the lives of people all over the world."

I look forward to your continued support in the future.

* "Carbon minus" is a term defined by SANYO.