Presentations & Events


- ended March, 2009

Strategies for Growth 2008

- May 8, 2008

Q & A Session

Q1. What is your plan for future free cash flow?
Our forecast is to make positive free cash flow, 300 billion yen over the next three years through improving further Cash Conversion Cycle (CCC) under our strategic investment plan. We would try to generate operating cash flow greater than Investment.
Q2. While all business fields will be implementing “Sustained Growth with High Profit”, what is the state of progress of the new strategy for digital products that was mentioned at the time of the announcement of your withdrawal from the HD DVD business? How will it improve profitability?
The new digital products strategy can be summarized by two points.
* High-Definition: In order to provide users who are becoming familiar with high definition content the opportunity to enjoy it in more ways, TVs, PCs and DVD players equipped with our super-resolution function will be released to the market, making full use of our strengths in semiconductor and image-processing technologies.
* Mobile: Various mobile equipment that makes use of Toshiba´s strengths in storage technologies, such as NAND Flash Memory, SSDs (Solid State Drives), small inches HDDs (Hard Disk Drives), and component technologies, such as fuel cells and multi-antenna technology will be released to the market.
Q3. What is the assumption of price decline rate in NAND Flash Memory up to 2010?
Will the NAND market continue to expand?
We forecast an annual price decline rate around 40% to 50%. Although the market launch of our SSD was two months behind schedule, the market is not fully established yet, and will only start to take its market shape between 2008 and 2009. However, once the SSD market does come into its own, we expect to see continued expansion in the NAND market, because of the greater volume of NAND Flash Memory that is required. We plan to retain cost competitiveness by accelerating the shift in production from the 56 nanometer process to 43 nanometer process.
Q4. The Nuclear Energy business plan projects orders for 33 plants by 2015. Will there be problems in supplying them? Will there be risks?
The number of plants that we estimate in the Nuclear Energy business in payback scheme is 33. However, keeping in mind the scale of the market, we believe it is possible that the number of orders might increase. We include two ABWR plants, but that number is expected to be increased in the future too. We will take steps to assure the supply of equipment. The establishment of a joint-venture manufacturing and sales company for steam turbines and power generation equipment in India that we announced yesterday is one of these steps.

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