Presentations & Events
FY2007
- ended March 2008 (For 169th Fiscal Period)
Presentation for FY2007 Q1 Results
For 1st Quarter ended June, 2007 - July 27, 2007
- PDF [258KB/22 pages]
- Earnings Release
Outline of the presentation
1. Consolidated results for the first quarter of FY2007
| Net Sales | 1,664.6 billion yen | (+211.8 billion yen YoY) |
|---|---|---|
| Operating income | 21.2 billion yen | (+0.4 billion yen YoY) |
| Income before income taxes and minority interest | 34.0 billion yen | (+12.1 billion yen YoY) |
| Net income | 20.6 billion yen | (+16.6 billion yen YoY) |
- All of Toshiba's business segments posted increased sales from the year earlier period. Toshiba's overall consolidated sales for the period were 1,664.6 billion yen, an increase of 211.8 billion yen from the same period of the previous year.
- Consolidated operating income improved by 0.4 billion yen from the year earlier period to 21.2 billion yen. Income before income taxes and minority interest rose by 12.1 billion yen to 34.0 billion yen, including a gain from sales of securities in affiliated companies. Net income increased by 16.6 billion yen from the year earlier period to 20.6 billion yen.
2. Financial Position and Cash Flows
- Total assets increased by 1,197.4 billion yen from the end of June 2006 to 6,041.6 billion yen.
- Shareholders' equity stood at 1,150.0 billion yen at the end of June 2007, an increase of 165.9 billion yen from the end of June 2006.
- Total debt increased by 153.7 billion yen from the end of June 2006 to 1,333.6 billion yen.
- As a result of the foregoing, the debt-to-equity ratio as of the end of June 2007 was 115%, a 4-point improvement since the end of June 2006.
- Free cash flow was minus 143.4 billion yen, a 37.1 billion yen deterioration from the year-earlier period.
3. Projections for FY2007
First Half of FY2007
- Toshiba Corporation has revised its original forecast for the first half of FY2007, announced on April 26, 2007, as below.
(billion yen)
| Net Sales | 3,600.0 | (+100.0 to the original forecast) |
|---|---|---|
| Operating income | 70.0 | (+30.0 to the original forecast) |
| Income before income taxes and minority interest | 70.0 | (+40.0 to the original forecast) |
| Net income | 40.0 | (+30.0 to the original forecast) |
Full-year FY2007
- The full-year forecast for FY2007 is currently under review, and will be announced separately in due course.
Q & A Session
- Q1. Comparing with forecast at the beginning of FY2007, please give us the details of the upswing in operating income by segment.
- Digital Products segment increased operating income by +9.7 billion yen, +7.6 billion yen of which comes from the PC business. The amount for Electric Devices segment is +7.6 billion yen, +5.5 billion yen of which is from the Semiconductor business and -5.5 billion yen from LCD business. The Social Infrastructure segment is +5.9 billion yen. Both Power System and Industrial System saw improvement, with Power System recording the more favorable operating income.
- Q2. Please tell us about the outlook for operating income for whole FY2007.
- We will carefully examine our operating income forecast by September and release an announcement if it should be necessary. We intend to assess the price trend in NAND Flash memory and LCD business, HDD, and Mobile phones.
- Q3. Please tell us about the impact of change of Japanese tax law regarding depreciation
- The impact in 1Q is 5-billion yen, which is what we planned for. The impact regarding exiting fully depreciated PPE (property, plant, and equipment) has increased by 13 billion yen, 3 billion yen of which is an anticipated 1Q increase. The amount for new PPE is only about 2 billion yen.
- Q4. Is there any reduction in the tax burden?
- It decreased to almost the same level as the effective statutory tax rate of 40.7%.
- Q5. Please tell us about the business trend for each of your digital products, other than the strong PC business.
- There were few new models of mobile phones in 1Q in the Digital Products segment, but we will release new models in the 2Q. Prices for 2.5 inch HDD are in severe circumstances.
- Q6. Please tell us about capacity utilization rate at each of your semiconductor factory.
- Yokkaichi and Oita (leading-edge product line) Operations are both running at full capacity.
- Q7. Please tell us about the NAND flash price compared to forecast at the beginning of FY2007.
- Prices may be higher than an initial plan for the first half. For the second half, we plan to assess pricing estimation by September. The bit growth rate is expected to be 2.3 times a year.
- Q8. Regarding the revised operating income forecast of the first half, is there any special factor, such as front loaded delivery?
- We improved 1Q results and the first half prospects through our own efforts.
- Q9. Please tell us about the trend in operating income for each business in the home appliances segment.
- White goods moved into the red while air conditioners remained in the black thanks to the strong sales in the overseas markets. In the lighting business, the CCFL profitability becomes lower than we expected.
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