Presentations & Events


- ended March, 2011

Strategies for Transforming Toshiba's Business Structure

- May 11, 2010

Q & A Session

Q1. Please identify the most important management indicators that you will focus on during the next three fiscal years to FY2012.
The important thing is to get a better investment return than our peers when using profit as a resource for reinvestment. With this in mind, we have implemented policies that emphasize Return on Investment or ROI (Operating Income / (Equity capital + interest bearing debt) ).
Q2. The FY2015 sales target of ¥1 trillion from the nuclear energy business has not been revised since forecasts given at last year's briefing on management strategy. Could you give us an update on the progress you have made?
In general, our nuclear energy business is making progress in line with our original plans. Another positive can be found in the US, where the government has increased the federal loan guarantees in nuclear power plants beyond the commitment it initially made. We do not expect any significant delays in major projects where orders have already been received. We are also seeing steady progress in other countries that are currently at the planning stage, such as the UK and Finland.
Q3. Is it safe to say that progress on process migration in NAND Flash memory is going smoothly? In your previous schedule, Toshiba planned to start production using 20 nanometer (nm) generation process technology in the second half of fiscal 2010. However, in today's briefing you have announced that production will begin ahead of schedule in the summer of 2010. This seems to be an extremely positive development, but could you tell us the reasons for taking this decision?
You can understand that our process migration is going smoothly. One example of the progress made is that in March 2010 we succeeded in reaching the production target for the 32nm generation that we set for ourselves last August. We feel that, in order to maintain our competitive strength, we must continue to drive forward the process migration and that quickly claiming first ground in the market can help to further build on our competitive strength. Regarding the timing of the production start of 20nm process generation, we took into consideration how long it took to recover our investment on the 32nm and 43nm technologies. In the end we determined that the best course of action was to begin the production of 20nm process generation this summer.
Q4. In the organizational reform this spring, the Digital Products and new business divisions saw some changes. Please tell us the aims behind these changes.
The aims are to reform the functional base and reinforce the Digital Products Segment, and to establish a strong structure for the facility solutions business. In the Digital Products segment, we separated the imaging products related businesses and the storage business which had been in a single in-house company, and we also merged the PC and Network businesses together, which had been separate, into one in-house company. Considering this in terms of functionality, we separated the businesses that needed to be separated and merged those that belonged together.
In respect of facilities solutions business, on April 1st this year we established Smart Facilities Division that reports directly to the President. This aims to provide total environment and user friendly solutions for lighting, air conditioning, security, surveillance, elevators and Smart Grids in factories, buildings and homes.

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