Question? Leave a message!

Toshiba Corporation A company Presentation

Toshiba Corporation A company Presentation 46
FY2016 Business Plan Masashi Muromachi President & CEO Toshiba Corporation March 18, 2016 Forward-looking Statements This presentation contains forward-looking statements concerning future plans, strategies and performance of Toshiba Group. These forward-looking statements are not historical facts, rather they are based on management’s assumptions and beliefs in light of the economic, financial and other data currently available. Since Toshiba Group promotes business in various market environments in many countries and regions, its activities are subject to a number of risks and uncertainties that, without limitation, relate to economic conditions, worldwide mega-competition in the electronics business, customer demand, foreign currency exchange rates, tax rules, regulations and other factors. Toshiba therefore wishes to caution readers that actual results might differ materially from our expectations. Toshiba’s fiscal year (FY) runs from April 1 to March 31. All figures are consolidated totals for the 12 months , unless otherwise indicated © 2016 Toshiba Corporation 2 1. Progress of the Toshiba Rebuilding Initiative 2. FY2016 Business Plan ① Focus Business Fields ② Overall © 2016 Toshiba Corporation 3 Milestones Toward Revitalization FY18 FY20 FY16 ~end of FY15 Establish Persistent Return to the Entity Survival Capital Market Evolution Profit Platform Strong Businesses Focused Completion of Establish Investment Business Structural ・Where to Constitution of Reform Compete High Cash Flow Return to Profit in all • PC, HA, TV and ROI ・Resource Business • Discrete, LSI Growth Track allocation • HDD Create New Shift to BtoB • T&D ・Customer value Growth Engine • Corporate Solutions Business & technology Emergency Plan Recover Decrease Strong Investment • Sales of Toshiba Interest-bearing Ratings Medical Systems Management Liabilities Secure Corp. ・Balance sheet Become a • Sales of assets and Management Company that stocks Root New ・Governance Attracts Renewal of Platform Corporate ・Group strategy Outstanding corporate Governance ・Human resources Human Resources governance Establish a Stronger Internal Cancelation of Corporate Culture Social Trust Controls Designation as grounded in ・Ethical standards “Securities on Integrity Un w a v e ring Complete Change of Alert” ・Internal control Mindsets Trust ・Disclosure Become a Model Recover Trust of Improve Disclosure ・Culture change for Internal Stakeholders Policy Controls © 2016 Toshiba Corporation 4 The Sale of Toshiba Medical Systems Corp. Share Transfer Agreement with Canon Closed on March 17 Reasons for the Sale • To maximize Toshiba Medical Systems Corp’s value and realize its full potential • For Toshiba to improve its financial status. *Toshiba transferred to TMSC shares of US subsidiaries, such as Sales Price Toshiba America Medical Systems, Inc., previously held by Toshiba America, Inc., prior to the sale to Canon, for approximately 22.5 • Approximately 665.5 billion yen billion yen Future Outlook (In case Toshiba recognizes gains within FY2015) • Record a profit of approximately 590 billion yen (consolidated, profit (loss) before taxes). • TMSC will be classified as a discontinued operation in Toshiba’s FY2015 financial reports Toshiba is currently recalculating its business forecast for FY2015 and will promptly announce the forecast once it has been determined. © 2016 Toshiba Corporation 5 Home Appliance and Visual Products Businesses Home Appliance Business Share Transfer Agreement with Canon Closed on March 17  Completed restructuring within March 2016, as planned  Signed MOU on selling business to Midea on March 17 • Toshiba will sell a majority interest of Toshiba Lifestyle Products & Services to Midea Group Co., Ltd. • Will discuss retaining all global employee and operation sites • Will continue discussions on details towards a definitive agreement to be finalized by the end of the month  The sales network in Japan will also continue Visual Products Business  Will remain in Toshiba Group after transfer of Toshiba Lifestyle Products and continue business © 2016 Toshiba Corporation 6 The PC Businesses Business Reform is proceeding as planned Return to a profitable condition in FY16  Headcount: Reduction of 1,300 people (as planned)  Closed BtoC operations outside Japan (as planned)  Slimming down sales units and operation sites, as planned for FY16  Toshiba Client Solutions Co., Ltd will be established on April 1  Stop all ODM and eliminate all buy-sell transactions in FY16  Further reform under discussion with third parties © 2016 Toshiba Corporation 7 Human Resources Update of Headcounts due to Structural Reform 構造改革に伴う人員対策を確実に実行 Forecast -13,820 people (+2,980 against target) ※Includes 2,840 people reallocated within Toshiba Forecast Plan vs. Plan Unit: people Japan Others (as of Mar.18) Semiconductor Discretes, System LSI 2,800 4,050 3,850 200 +1,250 PC 1,300 1,300 400 900 0 Visual Products 3,700 3,830 630 3,200 +130 Home Appliances 1,800 2,100 1,400 700 +300 Lifestyle Total 6,800 7,230 2,430 4,800 +430 Corporate 1,000 1,420 1,000 420 +420 Total Announced on Dec. 21 10,600 12,700 7,280 5,420 +2,100 Healthcare 90 120 120 0 +30 HDD 150 450 330 120 +300 T&D - 550 150 400 +550 Total Announced on Feb.4 240 1,120 600 520 +880 Grand Total 7,880 5,940 10,840 13,820 +2,980 Toshiba Medical Systems Corp. - 10,000 5,600 4,400 +10,000 Change in Number of Toshiba Group Employees FY14 end: 217 thousand Reform and sale of business (-21 thousand) New hires and consolidated (+6 thousand), etc. FY15 end: 202 thousand Sales of businesses (-19 thousand) FY16 end: 183 thousand © 2016 Toshiba Corporation 8 Emergency Measures and Recruitment Plan Emergency Measures -Personnel Expenses- Note: Applied to Toshiba Corporation Bonuses • Executive Officers: Unpaid • Managers and above: 2.5 months reduction/year, max 50% of previous year • Others: 2 months reduction/year, max 50% of previous year Compensation and Monthly Salaries • Executive Officers: Continuation of current reductions • Managers and above: Increased reductions (e.g. Section Managers: ¥10,000 to ¥30,000 reduction) Allowances • Overtime: Adjust to legally required level • Business Trips: Reduction of 25% Recruitment Plan Toshiba Corporation will not hire new graduates in FY2017 © 2016 Toshiba Corporation 9 Improvement Plan and Situation Report Formulate additional measures to prevent recurrence, considering past circumstances, background and structural factor analysis Refer to “Principles for Listed Companies in Scandal” and not rely solely on the report by the Independent Investigation Committee ■Former CEOs – Background of nearly impossible demands to achieve profit improvements- • Analyze management environment during tenure of former CEOs, take historical background of business performance evaluation and budget control into consideration • Strong sense of crisis in respect of company’s survival, obsessive concern with their evaluation from inside and outside the company →Enhance internal checks and balances function in respect of top management ■CFO/Finance and Accounting Division – Why they didn’t prevent the problem?- • Tolerated inappropriate accounting without clarifying where lines have to be drawn, out of attitude to following top management • Management-accounting-oriented attitude to budget achievement →Give the Nomination Committee the right to consent to CFO selection Review the chain of command in financial accounting and management accounting ■Insufficient risk evaluation in financial reporting – Why internal controls did not function- • Less emphasis on accounting perspective in internal audit division, etc. • Resets of J-SOX control settings and training for J-SOX assessors were insufficient →Clarify division of duties in Internal Audit Div. (Accounting)/Established accounting compliance committee ■Stance on and system for appropriate information disclosure – Reconsider the system and its lack of provisions for timely disclosure- • Delayed disclosure of goodwill impairment at Westinghouse Electric Company/ Delayed disclosure of investigation status by Independent Investigation Committee, etc. →Clarify basic policy on information disclosure, improve information disclosure system. © 2016 Toshiba Corporation 10 No restrain/Advice Improvement Plan and Situation Report Major prevention measures against recurrence Category Organizations and problems Disregarded • Strong sense of crisis regarding company’s survival • Clarify responsibilities (Action for compensatory damages Former Internal • Obsessiveness with evaluations inside and outside the against former executives ) company • Strengthen monitoring and controls by the measures below Controls CEOs • Clarify responsibilities (Action for • Authority concentrated in President compensatory damages against former Former • Tolerated inappropriate accounting executives) out of attitude of following top CFOs • Give the Nomination Committee the right to management consent to CFO selection Imperfect • Pressure from Corporate to achieve high growth • Shift emphasis from profit to cash internal In-house and to avoid withdrawals from operations flows when planning budgets and • Short-term standard for planning budgets and checks Companies evaluating business performance evaluating business performance and • Too much focus on management • Review the chain of command for financial balances Finance & ● accounting accounting and management accounting Accounting function • Recruit external talent • Fixed personnel ■ • Define authority and responsibilities (focus on • Disregard of accounting perspective ■ Internal •会計監査を重視 financial audits) • Inexperience with accounting and • Increase headcount of Internal Audit Division, Audits •内部監査部増員、外部専門家活用 auditing take advice from outside experts • Defective personnel organization Board of • Appoint managers and experts as outside directors and lack of expertise • Clarify the process to select/dismiss the President and Directors, Imperfect CEO • the process to select/dismiss the Nomination monitoring (Introduce vote of confidence for CEO) Committee, President and CEO was unclear • Strengthen function of gathering information required ■ and control for discussion Audit • Insufficient provision of information • Appoint a Full-Time Audit Commissioner (external) function Committee ● required for discussion • Establish Accounting Compliance Committee Corporate • Lack of awareness of appropriate ● Corporate • Review business processes ■ financial reporting culture, • Enhance information disclosure/dissemination Level ● function (establish new organization) etc. • Deficiencies in business processes No mark: Implemented measures ■: Measures presently being © 2016 Toshiba Corporation 11 th executed ●: New measures(Added after February 4 ) Restructure Corporate Staff Division Restructure to strengthen internal controls and autonomous management of in-house companies Strengthen Internal Controls Separate Financial Accounting and Results Accounting • Separate the Finance & Accounting Division into a Finance & Cash Accounting Division and an Accounting Division Strengthen Disclosure and Communication • Reposition Public Relations & Investor Relations Office as a division directly under the President & CEO, and establish a new Information Disclosure Office within the division Autonomous Management of in-House Companies Transfer cross-company functions to business side • Shrink sales, production and development functions in corporate and shift them to in-house companies © 2016 Toshiba Corporation 12 Steps Needed to Secure Cancellation of the “Securities on Alert” Designation Steady preparation of written submissions on internal control systems FY15 FY16 3Q 4Q 1Q 2Q 3Q~ 10 11 12 1 2 3 4 5 6 7 8 9 10~ Announce Business Results Announce Business Results For FY15 Q4 For FY16 Q1 Submission of the Annual Securities Report, Ordinary General Meeting of Shareholders Improvement Plan Submission of written documentation Milestones on internal control systems and Situation Report Report Status of Improvement Activities Execute preventive measures against recurrence Preventive Formulate preventive measures Timely announcement of measures execution of individual measures against Execution of preventive measures against recurrence; recurrence monitoring; execution of additional measures Today © 2016 Toshiba Corporation 13 1. Progress of the Toshiba Rebuilding Initiative 2. FY2016 Business Plan ① Focus Business Fields ② Overall © 2016 Toshiba Corporation 14 Basic Commitment of the Toshiba Group © 2016 Toshiba Corporation 15 Management Policy of Toshiba Group Manage with Integrity • Place highest priority on ethics and compliance • Nurture an open corporate culture • Push forward with CSR Activities Construct a Healthy Management Platform for Growth • Operations grounded in cash flow • Enforce thorough portfolio management • Autonomous management of in-house companies © 2016 Toshiba Corporation 16 Focus Business Fields Focus on Platform Businesses that Sustain People and the Future Storage that sustains the advanced information society Infrastructure that sustains quality lives Energy that sustains everyday lives, that is cleaner and safer © 2016 Toshiba Corporation 17 Organization Review In-house companies Present Business Structure FY16 Business Structure 7  4 Corporate staff Corporate staff Industrial ICT Solutions Company Industrial ICT Solutions Company Power Systems Company Energy Systems & Solutions Company Energy Social Infrastructure Systems Company Restruc Infrastructure Systems & Solutions Company turing Social Community Solutions Company Infrastructure Toshiba TEC Corporation Toshiba TEC Corporation Toshiba Medical Healthcare Company Systems Corporation Semiconductor & Storage Products Company Storage & Electronic Devices Solutions Company Storage Personal & Client Solutions Company Toshiba Client Solutions Co., Ltd ※1 Toshiba Lifestyle Products & Services Toshiba Lifestyle Products & Services ※2 Corporation Corporation ※1 Currently considering restructuring with other companies ※2 Plan to transfer the business © 2016 Toshiba Corporation 18 - Aiming to be a top Energy Business Domain global company - Large-scale Transmission and Distribution Renewable Energy Power Generation systems Energy Storage T&D Battery-based Hydro Power Nuclear Power Energy Storage Systems Adjustable-speed pumped storage system Japan No.1 Share World’s No.1 share 55% GIS, Transformer, Protection Unit deliveries of large systems Relays, Load dispatching centers using lithium-ion batteries Delivered units basis Fuel Cells Smart Meter Geothermal Power PWR (AP1000) BWR Systems World’s No.1 share 27% Reactor main contractor, installed capacity base Thermal Power World’s No.1 share Japan No.1 share World’s No.1 share 26% Cumulative shipments in Japan Smart meters for residential use Operating plant capacity basis as of end of FY2014 Photovoltaic Hydrogen No.1 constructor for utilities in the domestic World‘s most efficiency CC system 62% market LHV basis Operating PCS Capacity basis based on Toshiba research Providing the world with technologies and services for making, transmitting and storing clean energy Realizing a low-carbon economy © 2016 Toshiba Corporation 19 Energy Business Domain: Energy Systems & Solutions Company Main focuses on the Nuclear Energy business and securing sustainable profit in Thermal and Renewable Energies and T&D Aiming to achieve steady growth with an excellent delivery record and cutting-edge technologies Net Sales (Billion yen) Focus growth business  Nuclear power 1,940 • Fuel and maintenance as profitable pillars of business • Steady progress in AP1000 construction in US and China 1,710 • Use S&W acquisition to build an integrated system, from 1,600 products to construction ( CB&I Stone & Webster Inc.) Nuclear Nuclear Stable growth businesses 1,020 Nuclear 870  Thermal power 740 • Make steady progress in current projects, increase orders for high efficiency coal-fired thermal plants in South-east Asia and thermal plants in the US (100 units in the US, No.1 share) • Use high efficiency and early delivery technologies to expand service business (Cumulative capacity, last ten years.. Source: McCoy Power Report) Operating Operating loss profit  Renewable energy -80 52 • Hydro: Use Chinese subsidiary to expand business in South-east Asia (-5.0%) (3.0%) • Geothermal: Promote collaboration with Omat, the world leader in binary geothermal systems (Platts World Electric Power Plants Database)  T&D and smart meter systems FY15 FY16 FY18 • Ensure stable profit in the focus area of infrastructure (Provisional) (T&D : Japan, Middle East, India and US) Heavy-ion radiotherapy system business retained, © 2016 Toshiba Corporation 20 as it is the application of nuclear technology Energy Business Domain: Nuclear Power Business Mid-term Plan Secure world No.1 position in fuel and maintenance businesses Pursue completion of the innovative, safe AP1000 reactor and make new builds an engine of growth AP1000 progress ・China (Sanmen, Haiyang) Business in Japan Support trial operation for start-up of world ‘s first AP1000 ・US (Vogtle, V.C. Summer)  Light Water Reactors Start concerted construction with integrated system • Restart operation, observe new regulatory requirements (WECTEC) against serious accidents • Enhance engineering capabilities and facilities for extending (Billion yen) Net sales operating life 1020  Fukushima Daiichi Nuclear Power Plant 920 • Establish decommissioning technology, such as for removal 870 of melted fuel 740 Overseas business  Fuel and Maintenance • Secure fuel and maintenance business for delivered plants Operating • Expand business in other types of reactors profit 67 48 40  New Construction 30 (6.6%) (4.6%) (5.2%) (4.1%) 1 2 • Worldwide total capacity 392GW  624GW • Targeting 45 orders by FY2030, including India and UK • Strengthen competitiveness by standardizing design and FY15 FY16 FY17 FY18 improving proficiency (Provisional) (Provisional) (1 : Year 2013, 2 : Year 2040) © 2016 Toshiba Corporation 21 Fukushima Daiichi Nuclear Power Plant Stabilization and Decommissioning Plan Toshiba Group as a whole is contributing to the stabilization and decommissioning of Fukushima Daiichi Nuclear Power Plant Currently 800 Toshiba Group employees are working at Fukushima every day Maintaining Stability  Cool Reactors and Spent Fuel Storage Pools  Overall Coordination of Contaminated Water Treatment System • Development, manufacture and installation of radionuclide removal systems Multi-nuclide removal facility Fuel handing (cesium removal equipment and multi-nuclide removal facility) Rain water equipment protection Crane (rain water curing) • Toshiba treated about 3/4 of a total 620k tons of highly contaminated water (completed removal of highly contaminated water in May 2015) • Constructed and installed contaminated water storage tanks (completed installation of 107 units) Fuel removal system cover • 107 units Medium- and Long-term Measures Unit 3 fuel handling facility  Spent Fuel Removal • Deploy fuel removal system in Unit 3 (Toshiba and WEC in cooperation)  Melted Fuel Removal • Deploy investigation robot for inside reactor containment vessel • Deploy tetrapod robot • Deploy muon-based technology to map the position of melted fuel tetrapod robot Investigation robot for inside reactor containment vessel A cosmic-ray produced by collisions of high-energy electrons © 2016 Toshiba Corporation 22 nd protons with nitrogen and oxygen in the atmosphere (1 : 2013年、2 : 2040年) - Sustainable growth Infrastructure Business Domain with stable profit - For Buildings and Facilities Elevators Air- Lighting Power Systems for Buildings conditioning Lighting fixtures for facilities Large-scale chiller UPS share 26% Elevator share 22 % share 20% No.1 share 40% For Public Infrastructure For Industrial Systems Rechargeable Water Treatment Broadcasting Highway Disaster Systems Batteries Systems Systems Prevention Systems Monitoring and Multiplex radio system Digital master system Central Server System Rapid charging 80% electrical systems share 30% share 53 % No.1 share 50 % chargeable in one min. No.1 share Industrial Systems Railway Security and Automation Air Traffic Systems Systems Control Systems Global Navigation Satellite System PMSM Small postal automation systems Industrial motors savings in energy consumption share 57% No.1 share 70% Air route surveillance radar share 23% 39% No.1 share 28% Provide customers with reliable technologies and services that support society and industry Realize a safe, secure and resilient society Share % is for Japanese market, based on Toshiba research; © 2016 Toshiba Corporation 23 Based on field test results by Toshiba Infrastructure Business Domain: Infrastructure Systems & Solutions Company Drive overseas growth by strengthening building, facility and water treatment businesses Strengthen profitability of domestic business to secure stable cash generation Focus Growth Businesses Net sales (Billion yen)  Elevators: Launch strategic products for India; increase orders by enhancing local sales and manufacturing system 1,410  Air-conditioning: Increase sales by new product 1,330 1,330 development and establishing new offices in Europe and North America  Water treatment: Global roll-out of EPC and O&M business in collaboration with UEM, consolidated since FY2015  Batteries: Expand SCiB sales by investing in increased production (increase capacity by 50%); widely used in ISS by major automotive companies and in EV buses outside Japan, etc. Operating Operating profit profit Stable Growth Businesses 51 20  Sustain and enhance customer-oriented business based in (3.8%) (1.5%) maintenance services  Work on renewal needs and demand for Tokyo Olympics  Deploy IoT solutions and high-level maintenance utilizing monitoring control technologies FY15 FY16 FY18 (Provisional)  Recover profitability by completing restructuring and quality improvement measures EPC: Engineering, Procurement and Construction, O&M: Operation & Maintenance © 2016 Toshiba Corporation 24 ISS: Idling Stop System – To be a pillar of income with Memories as a core business – Storage Business Domain Energy Social Infrastructure Automotive Transportation Sensing Power Industry Discretes System LSIs Generation Power Devices Image recognition World No.2 in NAND share Data Mobile Center ※ SSD NAND Storage Use advanced manufacturing technology to bring cutting-edge products to innovative markets Contribute to creating the infrastructure of the information society with leading storage technologies, and by working with costumers © 2016 Toshiba Corporation 25 ※SSD: Solid-state drive Storage Business Domain: Storage & Electronic Devices Solutions Company Continue to invest in the Memory business TM Accelerate development of BiCS FLASH Bring all businesses into the black and achieve steady growth Net Sales (Billion yen) Focus Growth Business  Memory Business 1,680 ・Despite lower sales prices in FY16 1H, 1,560 sales will grow 1,430 ・From FY17 onward, increase net sales on expansion of SSD demand, etc. Memory Memory Memory 950 Stable Growth Businesses 800 740  Discretes and System LSIs ・Expand sales by focusing on power devices and on the industrial (mainly imagining devices) and automotive Operating Operating fields (FY16 Net Sales +20% vs. FY15) Income Income (loss) (loss) ・Establish manufacturing company, Japan -57 32 Semiconductor (April ‘16) (-3.7%) (2.2%) (increase production manufacturing efficiency and expand foundry business)  HDD ・Expand line-up of enterprise and near-line products FY15 FY16 FY18 (FY16 Net Sales +30% vs. FY15) (Provisional) © 2016 Toshiba Corporation 26 Fab3 building Fab4 building Storage Business Domain: Mid-term Plan for Memory Business Enhance Cost Competitiveness by accelerating development of BiCS and expand SSD business  Accelerate BiCS capacity increases (stacking process)  Devote more resources to SSD development, open SSD Design Center in North America  Develop storage class memories for high speed SSD Strengthen Flash Memory Production BiCS Invest approx. 860 Billion yen (Total, FY16 to FY18) • Invest in equipment for the 3D process BiCS3 (Next BiCS) BiCS2 • Complete New Fab 2 Building (1Q/FY16) ’16.3 ’16 1H Reduce production cost in • Develop site for new production facility (FY16) Start sample future using Nano Imprint Start mass Lithography ) shipments production • Construct new production facility (FY17) Site for new Net Sales (Billion yen) production facility 950 Fab 5 building 850 800 740 less ROS than over around around 10% 10% 15% 5% FY15 FY16 FY17 FY18 (Provisional) ( Provisional) © 2016 Toshiba Corporation 27 1. Progress of the Toshiba Rebuilding Initiative 2. FY2016 Business Plan ① Focus Business Fields ② Overall © 2016 Toshiba Corporation 28 Net Sales & Income (Loss) All businesses move into the black in FY16 Aiming to achieve Net Income (Loss) of 100 billion yen in FY18 FY14 FY15 FY16 FY18 (Announced (Plan) (Result) (Provisional) on Feb. 4) Excluding PC & (Billion yen) Home Appliances 6,656 6,200 5,500 Including Including 4,900 PC / Home Net Sales PC & Home Appliances Appliances 730 7,300 Operating 270 170 (4.9%) 120 Income (2.6%) (2.4%) (Loss) ▲430 100 40 (▲6.9%) (1.8%) Net Income ▲38 (0.8%) (▲0.6%) (Loss) Gain from the sale of TMSC (excluded) approx. 590 billion yen (consolidated, profit (loss) ▲710 before taxes) (▲11.5%) The currency exchange rate for FY16-18 is US1=¥110 © 2016 Toshiba Corporation 29 Operating Income: Year-on-Year Analysis The bottom line for Operating Income is 120 billion yen Fixed costs Risk FY16 improvement factor -60 Plan FY15 (excluding extraordinary Announced +240 120 Sales price expenses) on Feb. 4 20 Sales volume, CR -260 +180 ▲430 FY15 extraordinary expenses (-450)  Asset write-downs: -118  Structural reform: -248  Provision for unprofitable projects and revaluation of inventories: -84 © 2016 Toshiba Corporation 30 Reforming the Financial Base Business operations grounded in cash flow Free cash flow Financial structure Cash flow from operating activities Billion yen Cash flow from investing activities Net D/E FCF Move into the black on 330 cash flow from 105% 967% 112% operating activities Gain from the 140 147 sale of TMSC approx. 688 billion Equity Including gains and 40 attributable to yen profit from sale shareholders of of TMSC the Company 150 ▲50 1,084 ▲107 686 ▲190 Net interest- ▲230 bearing debt 1,450 Limit investments ▲280 to growth business 1,142 (NAND, Nuclear Power) 765 Excluding sales of assets ▲484 FY15 End of FY15 End of FY14 End of FY16 FY16 FY14 (Announced on (Announced on (Result) (Plan) (Plan) (Result) Feb. 4) Feb. 4 © 2016 Toshiba Corporation 31 Remaining Balance of Goodwill Nuclear Power: No signs of impairment were found in 3Q annual impairment testing Re-conducting impairment test in 4Q Landis+Gyr: Conducting annual impairment test in 4Q (Billion yen) Goodwill Balance Goodwill Balance as of Dec. 2015 as of Mar. 2016 (actual) (forecast) Nuclear Business 385.2 351.3 (Including Westinghouse) Landis + Gyr. AG 171.3 156.3 (Exchange rate) (1=\120) (1=\110) © 2016 Toshiba Corporation 32 Measures to Secure the Financial Platform Prioritize Improving the Financial Platform Organize Financial Platform Concentrate investments in cash generating fields, based on the business portfolio Strict consolidated-base control of interest-bearing liabilities of the in-house companies • Establish financing limit for in-house companies, put in place monthly monitoring system Urgent Fund Raising Raise over 1 trillion yen in FY15, FY16 • Assets sold in FY15 Sale of Toshiba Medical Systems Corp. 665.5 billion yen Sales of stock holdings 200 billion yen • Raise further funds through sales of the Home Appliance • business and additional sales of stock holdings © 2016 Toshiba Corporation 33 Investments Continue to invest in the Storage and Energy businesses Capital expenditures,  Focus on Memory business Investments and Loans (Billion yen) • BiCS mass production facility 391.7 370.0 370.0 • Construct new production facility  Limit investments in other areas Memory Nuclear to refurbishment power FY14 FY15 FY16  Focus on R&D in technologies R&D (Billion yen) that generate cash flows 400.0 352.7  Create new growth businesses 310.0 • Batteries(SCiB) • Power electronics Memory Nuclear • IoT for energy business power (smart meter+services) FY14 FY15 FY16 • Media intelligence (RECAIUS) © 2016 Toshiba Corporation 34 In Closing 1. Concentrate on Focus Businesses 2. Improve the Financial Platform 3. Return to the Capital Markets © 2016 Toshiba Corporation 35 コンプライアンスを前提とし、 広く社会の皆様に対して 誠実な経営に取り組んでまいります With compliance to the forefront, we respect the wider society, and act with integrity © 2016 Toshiba Corporation 36 © 2016 Toshiba Corporation 37
Website URL