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Revised Business Forecast for FY2008

- September 19, 2008

Disclaimer: The contents of these presentation materials, key points of presentation and QA and audio data of presentation have not reflected on the restatement publicly announced in September 2015. As a result, because these information therefore contains inappropriate information to be used for investment decision, please do not rely on this information if you actually intended to trade stock. Toshiba Corporation assumes no responsibility for problems resulting from or in connection with use of the information.

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Outline of the presentation

1. Forecast of FY2008 Consolidated Business

(billion yen)

	Revised Forecast			vs. Forecast as of April, 2008
	1H	2H	Year	1H	2H	Year
Net Sales	3,550	4,150.0	7,700.0	-250.0	-50.0	-300.0
Operating income (loss) %	-30.0 -0.8%	180.0 4.3%	150.0 1.9%	-100.0 -2.6%	-40.0 -0.9%	-140.0 -1.7%
Income (loss) from continuing operations, before income taxes and minority interest %	-70.0 -2.0%	240.0 5.8%	170.0 2.2%	-120.0 -3.3%	30.0 0.8%	-90.0 -1.1%
Net income (loss) %	-50.0 -1.4%	120.0 2.9%	70.0 0.9%	-65.0 -1.8%	5.0 0.2%	-60.0 -0.7%

2. Reasons for Revision

• Sales and operating income of semiconductors are expected to significantly deteriorate due to price erosion in NAND flash memory and weak demand in semiconductors for digital consumer products.

  Sales:	1,280 billion yen (-220 billion yen below the forecast as of April 25, 2008)
  Operating Income:	-65 billion yen (-155 billion yen below the forecast as of April 25, 2008)

  • - Price erosion of NAND flash memory exceeding estimates
        Although the market is growing, oversupply drove price erosion beyond estimates
  • - Weak demand of semiconductors for digital consumer products resulting in lower capacity utilization in System LSI 300mm fab.

3. About Dividend

• Interim Dividend (plan)
  5 yen per share
• 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.

Q & A Session

Q1. Please confirm your dividend policy for us.

Toshiba's basic policy on profit distribution rests on seeking to achieve continuous increases in the actual dividend payments, in line with a payout ratio in the region of 30 percent on a consolidated basis, while giving full consideration to such factors as the strategic investments necessary to secure medium- to long-term growth.
While Toshiba announced a downward revision of its business forecast today, the interim dividend was determined in respect of full consideration of the basic policy on profit distribution and the shareholders' expectations regarding dividends.
The year-end dividend, for shareholders recorded in the shareholder record on March 31, 2009, has not been decided yet.

Q2. Could you please explain why sales of Digital Products have fallen short of original expectations?

There has been a significant downsizing in demand in the domestic mobile phone market, leading to a significant decline in the mobile phone business. The effects of the price declines in hard disk drives and yen appreciation also impacted on sales.

Q3. What are the main reasons for the downward adjustment for semiconductors (-155 billion yen in operating income) against your initial forecast?

There are several reasons. A worsening balance in supply and demand in the NAND Flash memory market triggered price erosion that exceeded our expectations. In the System LSI business, we added the capacity of a 300mm wafer fab, but demand from the game market was weaker than expected, and the market for LSI for digital consumer products, Toshiba's area of specialty, did not see seasonal demand growth as expected. In the Discrete business, a sluggish market (reflecting such factors as a fall in demand for mobile phones in the domestic market) saw reduced demand that resulted in a decrease in the scale of operations, and this plus price erosion is expected to lead to a significant reduction in operating income.

Q4. What is the forecast for the non-operating income (loss) for FY2008?

Our forecast for non-operating income is +20 billion yen for the full year. The difference from our initial target is +50 billion yen. The breakdown of the main causes for the revision is +75 billion yen realized by the sale of stock in Toshiba Building Co., Ltd. and -23 billion yen in costs from withdrawing from the mobile broadcasting business.

Q5. What is your budget for currency exchange rate?

We assume rates of ¥100 to the U.S. dollar and ¥150 to the euro.

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