Presentations & Events
FY2009
- ended March 2010 (For 171st Fiscal Period)
Presentation for FY2009 Q2 Results
For First 6 months and 2nd Quarter ended September, 2009 - October 30, 2009
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.
- PDF [222KB/31 pages]
- Earnings Release
Outline of the presentation
1. Consolidated results for the first 6 months of FY2009
| Net Sales | 2,955.7 billion yen | (-539.0 billion yen YoY) |
|---|---|---|
| Operating income (loss) | 2.7 billion yen | (21.2 billion yen YoY) |
| Income (loss) from continuing operations, before income taxes and noncontrolling interests | -46.8 billion yen | (-4.9 billion yen YoY) |
| Net income (loss) attributable to shareholders of the Company[1] | -57.7 billion yen | (-19.2 billion yen YoY) |
[1] “The Company” refers to Toshiba Corporation.
- Toshiba’s consolidated net sales for the first six months of FY2009 were 2,955.7 billion yen, a decrease of 539 billion yen from the same period of the previous year, a result reflecting the yen’s appreciation and the recession.
- The consolidated operating income returned to the black to the tune of 2.7 billion yen, an improvement of 21.2 billion yen against the same period of the previous year. While Digital Products saw profit decline, Social Infrastructure achieved higher profit and Electronic Devices recorded a substantial improvement.
- The loss from continuing operations before income taxes and noncontrolling interests widened by 4.9 billion yen to -46.8 billion yen, an outcome mainly reflecting restructuring charges. The net loss attributable to shareholders of the Company widened by 19.2 billion yen to -57.7 billion yen.
2. Financial Position and Cash Flows for the Second Quarter of FY2009
- Total assets decreased by 92.1 billion yen from the end of March 2009 to 5,361.1 billion yen.
- Shareholders’ equity, or equity attributable to the shareholders of the Company, increased to 725.6 billion yen, an increase of 278.3 billion yen from the end of March 2009, despite a net loss attributable to shareholders of the Company of -57.7 billion yen. This reflects the capital increase from a June 2009 public offering, as well as an improvement in accumulated other comprehensive income of 19.7 billion yen due to gains on recovery in the stock market prices.
- Total debt decreased by 410.7 billion yen from the end of March 2009 to 1,400 billion yen.
- As a result of the foregoing, the shareholders’ equity ratio at the end of September 2009 was 13.5%, a 5.3-point improvement from the end of March 2009, and the debt-to-equity ratio at the end of September 2009 was 193%, a 212-point improvement from the end of March 2009.
- Free cash flow was 70.5 billion yen, a 322.3 billion yen improvement over the same period of the previous year. The improvement in working capital turned cash flows from operating activities positive, and payments for acquisition of tangible fixed assets declined against the same period of the previous year
3. Performance Forecast for FY2009
The first half of the FY2009 saw an improved performance as a result of cost reductions and other measures, but the outlook for the global economy in the second half of FY2009 and afterward is still very unclear. Toshiba’s business forecast for its consolidated results for the fiscal year 2009 remain unchanged from the projections announced on May 8, 2009, as it is necessary to carefully assess emerging trends in the business environment and their impact on the Company.
Q & A Session
- Q1. What is the main reason why your first half operating income is better than your initial forecast for the period?
- The sales amount didn’t reach to our target, however, operating income for Toshiba Group improved and moved into the black in the first half, mainly because the operating income of Social Infrastructure segment were higher than our initial projection. A key factor in this was that we could cut fixed costs by 200 billion yen in the first half compared with the same period a year ago, surpassing our initial target by 67 billion yen.
- Q2. Can you tell us the main reasons why your Semiconductor business operations were in the black in the second quarter?
- As a result of efforts to promote fixed cost reductions, and a better supply and demand balance in NAND flash memories, operating income in the second quarter was 5.2 billion yen, and the Semiconductor business as a whole moved into the black in the second quarter.
- Q3. Please tell us the situation in your TV business.
- The global market environment was severe, but in the Japanese market we were able to increase unit sales, mainly thanks to the effectiveness of the “Eco-points” system to stimulate purchases of environmentally-conscious products, and by improving procurement we were also able to achieve better cost competitiveness and finish the first half in the black.
- Q4. What kind of changes are you seeing in the performance of your Social Infrastructure segment?
- The influence of the recession made itself felt with a severe impact on orders for industrial components and the like, but we saw increased sales related to nuclear power plants overseas, firm progress in cutting fixed costs, and the outcome in the first half was higher profit than for the same period a year ago.
- Q5. What were your actual results in free cash flow, and what are your targets for the full year?
- In the first half of FY2009, we saw free cash flow improve substantially from the -251.8 billion yen of the same period a year ago to 70.5 billion yen. This resulted mainly from improvement in cash flow by shortening the cash conversion cycle and the reduction of cash flow from investing activities. Our free cash flow target for the full FY2009 is 130 billion yen.
- Q6. Your income and loss for the first half surpassed your initial estimate, so do you intend to revise your estimates for the full fiscal year?
- Your income and loss for the first half surpassed your initial estimate, so do you intend to revise your estimates for the full fiscal year?
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