Presentations & Events


- ended March 2008 (For 169th Fiscal Period)

Presentation for FY2007 Q2 Results

For First 6 months and 2nd Quarter ended September, 2007   - October 29, 2007

Outline of the presentation

1. Consolidated results for the first half of FY2007

Net Sales 3,689.9 billion yen (+527.9 billion yen YoY)
Operating income 82.5 billion yen (+17.3 billion yen YoY)
Income before income taxes and minority interest 76.8 billion yen (-6.9 billion yen YoY)
Net income 45.7 billion yen (+6.9 billion yen YoY)
  • Toshiba's overall consolidated sales for the period were 3,689.9 billion yen, an increase of 527.9 billion yen from the same period of the previous year.
  • Consolidated operating income rose by 17.3 billion yen from the same period a year ago to 82.5 billion yen. Income before income taxes and minority interest decreased by 6.9 billion yen from the year-earlier period to 76.8 billion yen. Net income increased by 6.9 billion yen from the same period of the previous year to 45.7 billion yen.

2. Financial Position and Cash Flows

  • Total assets increased by 769.1 billion yen from the end of September 2006 to 6,062.0 billion yen.
  • Shareholders' equity improved by 107.7 billion yen to 1,150.2 billion yen from the end of September 2006.
  • Total debt decreased by 55.7 billion yen from the end of September 2006 to 1,231.4 billion yen.
  • As a result of the foregoing, the debt-to-equity ratio as of the end of September 2007 was 107%, a 16-point improvement from the end of September 2006.
  • Free cash flow was minus 90.8 billion yen, a 132.7 billion yen deterioration from the same period a year ago.

3. Performance Projection for FY2007

  • Toshiba Corporation has revised its original forecast for the full-year forecast for FY2007, announced on April 26, 2007, as below.

(billion yen)

Net Sales 7,800.0 (+300.0 to the original forecast)
Operating income 290.0 (+30.0 to the original forecast)
Income before income taxes and minority interest 350.0 (+110.0 to the original forecast)
Net income 180.0 (+60.0 to the original forecast)

Q & A Session

Q1. Will the effect of change in accounting for estimation of salvage value on Property, Plant & Equipment (P. P. E.) acquired before April 1, 2007 continue into the next fiscal year and beyond?
We are still calculating precise figures for beyond the next fiscal year, but, since book value will decrease, the depreciation expense regarding above mentioned P.P.E. will also decrease.
Q2. Please tell me why Toshiba corrected semiconductor company sales breakdown by products.
There is no change in total of the semiconductor sales. We recognized the breakdown of sales of Discrete, System LSI, and Memories wrongly. Therefore, we corrected division sales breakdown. We apologize for any inconvenience this has caused.
Q3. Please tell us the main reasons for the downward revision in digital products from your initial forecast.
Operating profit is now expected to be 25 billion yen lower than in the original forecast. We can't provide detailed figures, but the primary factors are the HD DVD, TV and HDD businesses.
Q4. Please explain us the reason of lowering operating profit in HD DVD, TV and HDD.
The main reason in the TV business is the impact of price decline on TV prices. Our market share in Japan grew to 20%, and the unit quantity increased as well. However, there was a strong influence from aggressive pricing by no-brand manufactures in the US market, and that resulted in lowering profit. In HD DVD, we took a strategic decision in favor of low prices, and increased our spending to expand sales. We would make best effort to be at break even in the TV business in the second half of this fiscal year. HD DVD should takeoff next year.
Q5. What is Toshiba's supply-demand balance for NAND Flash memory?
In the second quarter it was 75%
Q6. Has there been any change in your plans for production capacity at Yokkaichi Operations?
The figure for the 200mm line is 107,500 wafers a month, calculated on a 200mm basis, which is unchanged. For the 300mm line, the capacity of Fab 3 is 150,000 wafers at the end of September, calculated by 300mm basis. The plan for Fab 4 is to reach 40,000 wafers a month by March 2008 and 60,000 by the end of June. Around 50% of 300mm production is based on 56nm process technology, and that will rise to over 85% by March 2008.
Q7. What is the comparison and breakdown of the social infrastructure segment with the original forecast?
For Power System, we have made an upward revision of 19 billion yen from the original forecast. Social systems, industrial systems and elevators and solutions are all buoyant.

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