Creation of Circular Economy Business

As another subscription model, we have launched a monthly flat rate cleaning platform service using RULO Biz, a professional-use small robot vacuum cleaner in April 2022^*8. RULO Biz is one of the industry's smallest cloud-based commercial robot vacuum cleaners. It is suitable for cleaning small spaces with many obstacles, such as exclusively-owned areas of office buildings, shops, and restaurants, and supports labor saving and automation of dust collection work. In addition, we aim to improve cleaning quality by automatically creating cleaning maps using our own laser SLAM technology, centrally managing the maps through cloud management, and visualizing cleaning results. With the introduction of RULO Biz, users can resolve labor shortages, reduce cleaning costs, and keep the initial cost down through the monthly flat rate system. In fiscal 2025, in addition to our existing plan for annual regular inspections and maintenance, we launched a new plan that minimizes the items required at the time of installation. This allows us to respond to the needs of even more customers and expands the scope of the services we offer that can be used with peace of mind.

*8 https://www.panasonic.com/jp/company/pmj/new-business/solution/rulo-biz.html  (In Japanese)

Road tunnels are an indispensable social infrastructure in our life. We provide a total air ventilation solution to maintain a clean air flow in the tunnel environment, as well as a maintenance service^*12 for such ventilation equipment. The service offers regular checks and overhauls on the air ventilation equipment, including the jet fans used as a part of the above solution, thereby minimizing functional deterioration from aging and ensuring product safety over a longer period of time.

*12 https://www2.panasonic.biz/jp/air/fan/douro/  (In Japanese)

In April 10, 2024, we launched a new business offering Panasonic Factory Refresh—certified and guaranteed refurbished products—through both sales and subscription-based services. We refurbish home appliances, such as washing machines, refrigerators, and TVs, and other products across a total of 12 categories, collected after use, to a reusable state for reselling^*13. Those products that satisfy the high quality standards set by the Panasonic Group are then made available for sale. For example, TVs are inspected to ensure they do not carry any scratches, damage, or missing parts in the main body and accessories that could cause a malfunction. They are also thoroughly cleaned, and the image quality is checked. Any failed parts are replaced, and all the products are tested for product safety. To meet the Group standards, the display output is adjusted, and performance tests are conducted. Only after all these processes have been completed, the products are finally put on sale for customers.

*13 https://news.panasonic.com/jp/press/jn250217-1 (In Japanese)

Under a partnership with Lawson, we are jointly working on energy saving, CO₂ emissions reduction, and more efficient usage of resources. The Lawson store opened in Nanjing in July 2020 was built with significantly less building waste through prefabricated construction and material recycling. The same kind of stores have also been built in Shenyang and Tianjin. Further, we started operating mobile convenience stores in Shenyang and Wuhan. The store vans are equipped with refrigerators and other electrical equipment realizing flexible and effective sales. In addition, since 2021, we have developed a service for the refurbishment and reuse of aged store equipment in Chongqing, Chengdu, Shanghai, Zhejiang, Jiangsu, and other regions. As of 2023, we have supplied refurbished equipment to several hundred stores and this extension of the service life of store equipment has made a contribution to the reduction of costs and the reduction of the amount of equipment discarded. In addition, model eco-friendly stores were opened in Shanghai in April 2021, and Dalian in July 2021. These next-generation stores boast high environmental performance through the latest energy and CO₂ emissions saving solutions, including an Energy Management System (EMS) that visualizes and controls electricity usage by refrigerators and air conditioners.

In addition, we are also promoting the following activities based on a circular economy concept.
One example is building renovation: A building that we had used as a showroom and for other purposes for nearly 20 years was renovated through a joint effort with our partners. It has been transformed into a business and commercial complex named TENNOZ Rim^*14 which includes a co-working space, studio, laboratory, lounge and cafe. We consider renovation projects enabling more effective use of existing structures with additional performance features to be better than activities related to new buildings, as a circular economy business.

We started a food subscription service demonstration^*15 in the cafe in the TENNOZ Rim building. Customers can subscribe to a fixed-rate food service that includes a reusable cup made of resin with a high cellulose fiber content, and they can order one item of food or drink per day served in the reusable cup they bring to the cafe. This service contributes to the reduction of disposable plastic food containers. The project also helps attract people to the Tennozu area, which is recently promoting itself as a center of culture and arts, and contributes to building a circular economy by disseminating eco-conscious containers and reducing plastic waste.

*14 https://www.tennoz-rim.tokyo/ (In Japanese)
*15 https://news.panasonic.com/jp/press/data/2020/09/jn200910-1/jn200910-1.html (In Japanese)

In November 2024, we began full-scale expansion of "Archi Design," a line of electrical equipment products such as wiring and lighting fixtures that pursues "beauty that enhances the value of space" and "contributing to the environment" as a model for reducing the amount of resources input through product design^*16. With Archi Design, we are taking a multifaceted approach to environmental friendliness, reducing the amount of materials through product miniaturization, reducing the number of parts, reducing the amount of resources used in packaging materials and user manuals, and more. Through this, our Group is contributing to reducing environmental impact and to the creation of comfortable spaces in which electrical equipment naturally harmonizes with the space.

*16 https://news.panasonic.com/jp/press/jn241112-2 (In Japanese)

Products containing a significant amount of recycled materials are also considered as a part of our circular economy businesses, as they contribute to efficient resource utilization. One such product example is a series of our cordless vacuum cleaners. The MC-NS10KE is a new cordless stick vacuum cleaner with the Clean Dock exclusively designed by the Panasonic Group. It was released on December 6, 2023, as a model with the use of recycled resin increased to around 40% of the entire product.^*17 At the end of October 2024, we launched the MC-NX810KM separate cordless stick vacuum cleaner, which uses approximately 60% recycled resin for the Clean Dock.^*18 In February 2024, we released another circular economy focused model, the MC-PB60J cordless stick bag-type vacuum cleaner. It contains 95% recycled resin(biomass content, etc.) and acquired the industry's first Biomass Mark as a domestic home cordless stick cleaner (by our research as of February 29, 2024).^*19

*17 https://ec-plus.panasonic.jp/store/page/contents/cleaner-NS10KE-sus/ (In Japanese)
*18 https://news.panasonic.com/jp/press/jn240926-1 (In Japanese)
*19 https://panasonic.jp/soji/products/stick/mc-pb60j.html (In Japanese)

In October 2024, we launched a drum-type washer dryer with a heat pump, the NA-LX129D series. Around 20% of their components are made of recycled resin, including a frame base that supports the main body, a cover for the heat pump unit, and the fan casing that circulates air between the washer drum and the heat pump unit. The frame base in particular was designed by combining computer-aided engineering (CAE) and actual machine testing to ensure its reliability to support the entire weight of the machine and withstand the vibration from spinning. The product proved that recycled resin could sufficiently deliver the robustness and quality required by a washing machine.

In June 2022, we began installing collection boxes for used dry batteries at 31 local 7-Eleven stores in Thailand, in cooperation with CP ALL Plc., the operator of 7-Eleven. In March 2024, we established a scheme to recycle the collected used dry batteries manufactured by us, in partnership with UMC Metals Ltd., a Thai steelmaker.^*21  This initiative allows us to melt our dry batteries, which do not contain environmentally harmful substances, and recover reusable materials, thereby contributing to efficient resource utilization. As of June 2024, we have achieved a total of 1,000 collection box locations at 7-Eleven stores.

*21 https://news.panasonic.com/jp/topics/205760 (In Japanese)

The Revalue Project converts factory wastes into completely different products that offer new value through creative design. To date, the factory wastes generated from production of irons, rice cookers, and system kitchens have been converted into bookends, lighting, and tables through collaboration with our partner companies. This project received a 2022 Good Design Award (Business Model category) in recognition of the business value it offered. We have also started a business to utilize factory offcuts generated in production. This is achieved by the three approaches of data utilization, ecological secondary use, and collaboration with creators. The factory offcuts of synthetic marble, which is used to make kitchen counters, has particularly grown into a promising project. We continue to offer new value through expanding collaborative creation.

Modular products can be regarded as a circular economy business as they reduce input resources by streamlining the components for efficient resource utilization.

In June 2022, we launched a modular personal care system^*23 for the European and North American markets. The initial system comprises a single main unit and five different detachable heads, including trimmers for beards, hair, body hair, and nose hair; a shaver; and a tooth brush. Users can purchase the necessary care parts individually. With the battery and motor being integrated into a single body, the system flexibly adapts to various personal care and grooming needs at home or when traveling for leisure or business.
Utilizing a standard design to fit the same main unit and power adapter reduced the product weight by approximately 60% compared to conventional products, thereby saving resources. In recognition of our contribution to environmental impact reduction through streamlined system design, we received the Gold Award 2023 under the iF Design Award, sponsored by iF International Forum Design. Since then, the product has continued to be featured in various media and received high evaluation including awards.

In September 2024, a further four different heads were introduced in the European and U.S. markets. With these new heads, the product now offers whole-body care, including haircutting with a professional blade, precise beard trimming, eyebrow shaping, facial brushing, and removing hard skin from feet.
In the U.S. market, where approximately 7 million tons of e-waste are produced every year, we have a recycling program that allows users to purchase the modular personal care system at a special price by returning their old electronic personal care devices. Collected personal care devices are recycled to contribute to resource circulation. We started sales of the system in the Middle East in September 2023, and in Australia in April 2024, further contributing to reducing environmental impact globally.

*23 https://shop.panasonic.com/pages/multishape

Employment of paper packaging also reduces environmental impact and provides ease of use at the same time, encouraging environment-friendly consumption (consumer behavior that takes the environment into consideration).^{*26, *27, *28} As our first change, paper-based battery packaging was employed for some models of the EVOLTA NEO Battery in October 2021. The coverage of such paper-based battery packaging was widened to include more EVOLTA NEO Battery models, and the original EVOLTA Battery in April 2023. We also released an improved version of our ENELOOP rechargeable nickel hydride battery that also incorporates paper-based battery packaging. The new version offers longer usage duration per charge through its increased capacity while retaining the same number of recharges. Demand for environment-friendly packaging has been increasing in recent years due to the worsening effects of climate change and plastic waste problems. According to a survey conducted by the Panasonic Group, 90% of respondents thought that excess packaging and plastic are used in products in general, and 80% of them value environment-friendly packaging when purchasing products. For eneloop, the packaging materials have been reduced by between 38% and 70% compared to the conventional blister pack by adopting paper-based battery packaging. By increasing use of environment-friendly packaging in the eneloop lineup, we aim to reduce 5.7 tons of plastic and 21.5 tons of paper in our usage every year, making a combined total of approximately 27 tons of packaging. The elimination of shrink film to cover the batteries also makes it easier to open. The package can also be used as storage for unused batteries and be disposed of as recyclable paper or general waste. Less packaging materials reduces the environmental impact and easy-to-handle packaging reduces the labor of opening and disposing. We thereby offer a little help in the lives of our environmentally-conscious customers.

*26 https://panasonic.jp/topics/2023/03/000000746.html (In Japanese)
*27 https://news.panasonic.com/jp/press/jn230330-1 (In Japanese)
*28 https://news.panasonic.com/jp/press/jn240626-1 (In Japanese)