Presentations & Events
FY2007
- ended March, 2008
Revised Business Forecast for FY2007
- March 19, 2008
- PDF [76KB/11 pages]
- Earnings Release
Outline of the presentation
1. Forecast of FY2007 Consolidated Business Results
(billion yen)
| FY 2007 (A) |
Forecast as of Oct (B) |
FY 2006 (C) |
(A)-(B) | (A)-(C) | |
|---|---|---|---|---|---|
| Net sales | 7,700.0 | 7,800.0 | 7,116.4 | -100.0 | 583.6 |
| Operating Income (loss) | 230.0 | 290.0 | 258.4 | -60.0 | -28.4 |
| Income (loss) before income taxes and minority interest |
250.0 | 350.0 | 298.5 | -100.0 | -48.5 |
| Net income (loss) | 125.0 | 180.0 | 137.4 | -55.0 | -12.4 |
2. Key Points of Revised Business Forecast for FY2007
- Operating income for Semiconductor business is lower than forecast in October 2007, primarily on declines in sales prices of NAND flash memories.
- The costs of discontinuation of the HD DVD business have impacted on FY2007 results.
- The PC business and the Social Infrastructure segment have seen strong performances in operating income against the October 2007 forecast.
3. About Dividend
- Basic Dividend Policy
While giving full consideration to such factors as the strategic investments necessary to secure medium- to long-term growth, Toshiba seeks to achieve continuous increases in its actual dividend payments, in line with a payout ratio in the region of 30%, on a consolidated basis. - Dividend for March 2008 (plan)
Year-end dividend: 6 yen
Full-year dividend: 12 yen
Q & A Session
- Q1. You have revised down your forecast of operating income by 60 billion yen. Do you expect any further deterioration in profit and loss?
- We very much regret this downward revision. The main factors in this downward revision were price declines in NAND Flash Memory and the influence of the discontinuation of the HD DVD business. At this point, we have ascertained the maximum impact, and we do not expect any further deterioration in profit and loss.
- Q2. With the year-end dividend, your full-year dividend will reach a record high. Going forward, wouldn't it be reasonable to restrain your large capital investments?
- While giving full consideration to such factors as the strategic investments necessary to secure medium- to long-term growth, Toshiba seeks to achieve continuous increases in its actual dividend payments, in line with a payout ratio in the region of 30%, on a consolidated basis, and for this reason the year-end dividend is set at 6 yen, which is 12 yen for the full year.
- Q3. What was the cost of discontinuation of the HD DVD business in terms of non-operating loss? What is the concrete cost? What is the total when you combine it with the operating loss?
- In this fiscal year, for the overall HD DVD business, we anticipate an operating loss of 65 billion yen and a non-operating loss of 45 billion yen, for a total loss of 110 billion yen. The non-operating loss covers the cost of disposal of inventory and scrapping production lines.
- Q4. Please tell us the main reasons for revising down your FY07 Operating income forecast for semiconductors, from 150 billion yen to 85 billion yen.
- In our October announcement, we assumed an annual rate of price decline in NAND Flash Memory of 40%, but in fact it is over 50%. That is the main factor. In addition, by facing softness of FY07 second half demand in mobile phones and digital consumer markets, we also revised down our earnings estimates for Discrete Devices and System LSI business.
- Q5. You have previously said that the effect of exchange rate fluctuations is “little or nothing”. Have these circumstances changed at all?
- For Toshiba group as a whole, imports and exports balance out, and fluctuations in the exchange rate have almost no impact on profit and loss.
This Web site contains projections of business results, statements regarding business plans and other forward-looking statements. This information is based on certain assumptions, such as the economic environment, business policies and other factors, as of the date when each document was posted. Actual results may differ significantly from the estimates listed here.