Presentations & Events


- ended March 2007 (For 168th Fiscal Period)

Presentation for FY2006 Q3 Results

For First 9 months and 3rd Quarter ended December, 2006   - January 31, 2007

Outline of the presentation

1. Consolidated Results for the 9 Months Ended December 31, 2006

Net Sales 4,955.3 billion yen (+472.1 billion yen YoY)
Operating income 121.1 billion yen (+6.1 billion yen YoY)
Income before income taxes and minority interest 201.6 billion yen (+114.8 billion yen YoY)
Net income 111.3 billion yen (+74.8 billion yen YoY)
  • Digital Products, Electronic Devices, Social Infrastructure and Home Appliances all saw sales increase against the year-earlier period.
  • Social Infrastructure increased operating income compared to the same period a year ago, and Home Appliances returned to profit, while Digital Products decreased its operating income and Electronic Devices saw a comparable level of operating income.

2. Financial Position and Cash Flows

  • Total assets increased by 1,098.5 billion yen from the end of December 2005 to 6,001.8 billion yen.
  • Shareholders' equity improved by 220.3 billion yen to 1,111.2 billion yen from the end of December 2005.
  • Total debt increased by 330.6 billion yen from the end of December 2005 to 1,438.3 billion yen.
  • Free cash flow was minus 406.3 billion yen, a 511.9 billion yen deterioration from the same period a year ago.
  • The debt-to-equity ratio was 129%, a 5-point deterioration from the end of December 2005.

3. Consolidated Forecast for FY2006

  • Toshiba Corporation has revised its previous consolidated forecast for FY2006, announced on October 31, 2006, as below.
    Net Sales 7,000.0 billion yen
    (+250.0 billion yen against the previous forecast)
    Operating income 250.0 billion yen
    (-20.0 billion yen against the previous forecast)
    Income before income taxes and minority interest 290.0 billion yen
    (+20.0 billion yen against the previous forecast)
    Net income 120.0 billion yen
    (+10.0 billion yen against the previous forecast)

Q & A Session

Q1. What is your forecast for the unit price decline for NAND flash memory?
We forecast an average price decline of 70% in fiscal year 2006, against the previous year.
Q2. Are there any changes in your semiconductor business capital expenditure plans?
There is no change in our original semiconductor capital expenditure plan of 354 billion yen. We revised the planned production capacity of Fab3 at Yokkaichi Operations from 110,000 wafers a month to 135,000 wafers a month by the end of the 1st half of FY2007. Our plans for Fab 4 remain unchanged, and we are now steadily preparing to start production there in the 3rd quarter of fiscal year 2007. We initially intended to make a decision on the Fab 5 program in the first half of 2007, but we have decided to watch the market some more before doing that.
Q3. What is the rate of operation at each semiconductor plant?
Both Yokkaichi Operations, which manufactures memories, and Oita Operation, which manufactures System LSI, are operating at full capacity.
Q4. What is your 4th quarter forecast for the PC business?
We revised upward the full-year forecast operating income and loss from -7 billion yen to -3 billion yen, thanks to the turnaround in the 3rd quarter. We forecast that operating income will be at break-even for the 4th quarter. Nevertheless, we will make every effort to break-even in full-year operating income.
Q5. What is your TV business strategy?
We have not changed our strategy of growth through focusing on LCD TVs. In SED TVs, we will ramp up the business by procuring SED panels.
Q6. Have you revised your forecasts for the social infrastructure and home appliance segments?
We revised them upward when we announced our 1st half business results in October. They are unchanged since then.
Q7. Will Social Infrastructure Segment operating income increase in the 4th quarter against the 3rd quarter?
For seasonal reasons, we forecast that 4th quarter operating income will increase from the 3rd quarter, as usual.
Q8. What are Westinghouse's sales and operating income, which you have consolidated from October?
We forecast sales of over 100 billion yen in the 2nd half of FY2006. Operating income for the same period is expected to be in the region of several billions of yen, after deducting the cost of amortizing intangible assets.

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