Response Regarding Conflict Minerals

The issues of conflict minerals* are considered important for CSR by Panasonic. These minerals are mined in the Democratic Republic of Congo (DRC) and neighboring countries (hereinafter, "the covered countries"), and their extraction funds organizations that violate human rights, cause serious harm to the environment, perpetrate corruption, and are otherwise involved in illegal activity. To fulfill our social responsibilities in our procurement activities, our policy prohibits the usage of illegally obtained conflict minerals as raw materials.

In order to make its activities on the issues more clearly, Automotive & Industrial Systems Company (AIS) formulates the Policy of Non-use of Conflict Minerals and publishes it to the AIS Web site as below.

Policy of Non-use of Conflict Minerals

Panasonic Corporation is not a publicly-traded company listed on U.S. stock exchanges, which are subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, Panasonic considers the issue of conflict minerals to be of grave concern as a source of funding for organizations that are involved with human rights abuses, environmental destruction, bribery, and other unlawful activities in conflict areas and is working to ensure the non-use of such conflict minerals.

The Automotive & Industrial Systems Company adopts the policy of implementing the following activities to achieve responsible procurement in a specific manner.

- We agree with the objectives of the final rule on Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to the use of conflict minerals adopted by U.S. stock exchanges and the U.S. Securities and Exchange Commission (SEC) and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas started by the Organization for Economic Cooperation and Development (OECD).

- We will use the Conflict Mineral Reporting Template (CMRT), which is the industry standard, and continue to conduct surveys and carry out analyses by tracing back through supply chains in cooperation with Tier 1 suppliers.

- We will establish an internal management system, implement the PDCA cycle based on the Manual for Actions Related to Conflict Minerals formulated as part of a management system for conflict minerals, and continue to ensure due diligence through actions including identifying risks and taking adequate corrective measures.

- We will disclose processes of identifying risks based on evaluation standards and taking corrective measures if necessary in response to requests and expectations from customers and other stakeholders.

Through the above-mentioned activities, we will aim to identify smelters and promote procurement from Conflict-Free Smelters (CFSs) by taking into consideration any impact on the entire value chain related to products and services.

June 1, 2015
Director, Corporate Social Responsibility
Automotive & Industrial Systems Company
Panasonic Corporation