Presentations & Events


- ended March 2008 (For 169th Fiscal Period)

Presentation for FY2007 Q3 Results

For First 9 months and 3rd Quarter ended December, 2007   - January 29, 2008

Outline of the presentation

1. Consolidated results for the 9 Months Ended December 31, 2007

Net Sales 5,568.4 billion yen (+613.1 billion yen YoY)
Operating income 124.6 billion yen (+3.5 billion yen YoY)
Income before income taxes and minority interest 226.3 billion yen (+24.7 billion yen YoY)
Net income 126.2 billion yen (+14.9 billion yen YoY)
  • Toshiba's overall consolidated sales for the period were 5,568.4 billion yen, an increase of 613.1 billion yen.
  • Consolidated operating income increased by 3.5 billion yen to 124.6 billion yen. Social Infrastructure saw increased operating income, while Digital Products and Electronic Devices saw lower operating income.
  • Income before income taxes and minority interest rose by 24.7 billion yen to 226.3 billion yen, primarily reflecting a gain from the sales of fixed assets. Net income increased by 14.9 billion yen to 126.2 billion yen.

2. Financial Position and Cash Flows

  • Total assets increased by 369.1 billion yen from the end of March 2007 to 6,301.1 billion yen.
  • Shareholders' equity increased by 82.6 billion yen to 1,190.9 billion yen from the end of March 2007.
  • Total debt increased by 226.5 billion yen from the end of March 2007 to 1,385.0 billion yen.
  • As a result of the foregoing, the debt-to-equity ratio as of the end of December 2007 was 116%, an 11-point deterioration from the end of March 2007.
  • Free cash flow was minus 134.8 billion yen, a 271.5 billion yen improvement from the same period a year ago.

3. Performance Projection for FY2007

  • The economic outlook in the forth quarter of FY2007 is unclear for reasons that include the subprime mortgage crisis and rising crude oil prices. While there has been a larger than expected decline in sales prices of NAND flash memories, the Social Infrastructure and the PC businesses are making solid progress. In these circumstances, Toshiba's consolidated business projections for FY2007 remain unchanged from the projections announced on October 29, 2007.

Q & A Session

Q1. Is it possible for Toshiba Corporation to achieve the forecast operating income of 290 billion yen for fiscal year 2007 as a whole?
We will maintain the whole year forecast at 290 billion yen at the present. However, we do recognize that it will be tough to achieve this forecast, due to the uncertainties in global economic trends at present. For Toshiba, the key point is how much the Social Infrastructure business and the PC business can compensate for price falls in NAND Flash Memories that surpass our earlier estimates.
We will carefully watch future transitions in the economic and business environments, and if there are any changes that cause us to reassess our results, we will make a prompt announcement.
We make every effort to promote our business operations to the utmost for the remaining two months.
Q2. Is it possible to achieve the 150 billion yen whole year forecast in the Semiconductor Business?
The overall financial year forecast has not been revised, and there have been no changes in the individual segments at the present. However, while it is difficult to predict, the possibility is that the severe market environment of the third quarter will continue into the fourth quarter. We will further assess the business results forecast at an appropriate time, and carefully watch future trends in both the economic and business environments.
Q3. Tell us about Yokkaichi Operations' manufacturing capabilities for NAND Flash Memories.
There is no change: 107,500 wafers at 8-inch equivalence for the 200mm line. The capacity of Fab 3 has reached its full capacity of 150 thousand wafers equivalent to 12 inches at the end of September. Fab 4 is planned to reach 40 thousand wafers by March 2008, 60 thousand wafers by the end of June, and 80 thousand wafers by the end of December.
Q4. What was rate of sufficiency for NAND demand?
In the third quarter, it was 80 to 100%.
Q5. Tell us about your approach to capital investment in the Semiconductor Business.
We will continue to make firm investments, considering the technologies required for the coming generation.
Q6. The operating profit of Social Infrastructure of the third quarter shows an increase against the same period last year. Which businesses were good?
Businesses such as power system and elevators recorded strong performances.

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