This page partially uses JavaScript. This page may not operate normally when these functions are not supported by your browser or the setting is disabled.

Presentations & Events

FY2010

- ended March 2011 (For 172nd Fiscal Period)

Q1
Q2
Q3
Q4

Presentation for FY2010 Q1 Results

For 1st Quarter ended June, 2010 - July 29, 2010

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 [185KB/25 pages]
Video
* Video no longer available. (Availability: July, 2010 - Nov., 2010)
Earnings Release

Outline of the presentation

1. Consolidated results for FY2010

Net Sales	1,469.2 billion yen	(+129.5 billion yen YoY)
Operating income (loss)	29.5 billion yen	(+67.1 billion yen YoY)
Income (loss) from continuing operations, before income taxes and noncontrolling interests	5.9 billion yen	(+68.0 billion yen YoY)
Net income (loss) attributable to shareholders of the Company^[1]	0.5 billion yen	(+58.3 billion yen YoY)

Toshiba’s consolidated net sales were 1,469.2 billion yen, an increase of 129.5 billion yen from the same period of the previous year. The consolidated operating income (loss) was 29.5 billion yen, an improvement of 67.1 billion yen from the previous period. This represents the highest first quarter consolidated operating income ever reported by the Company, and reflects higher sales and significantly higher operating income in Electronic Devices, due to an improved supply and demand balance and price stability for NAND flash memories, and reflects a healthy performance in Digital Products.
Income (loss) from continuing operations before income taxes and non-controlling interests improved by 68.0 billion yen to 5.9 billion yen, and the net income (loss) improved by 58.3 billion yen and moved into the black to a level of 0.5 billion yen.

[1] “The Company” refers to Toshiba Corporation.

2. Financial Position and Cash Flows for FY2010

Total assets decreased by 127.7 billion yen from the end of March 2010 to 5,323.5 billion yen, partly due to seasonal factors.
Shareholder’s equity, or equity attributable to the shareholders of the Company, decreased to 745.8 billion yen, a decrease of 51.6 billion yen from the end of March 2010, in spite of a net income attributable to shareholders of the Company in the black. This reflects a deterioration in accumulated other comprehensive income of 51.9 billion yen, due to a downturn in stock market prices and impacts from foreign currency exchange.
Total debt decreased by 57.8 billion yen from the end of March 2010 to 1,160.5 billion yen.
As a result of the foregoing, the shareholder’s equity ratio at the end of June 2010 was 14.0%, and the debt-to-equity ratio at the end of June 2010 was 156%.
Free cash flow was +28.2 billion yen, a 30.6 billion yen decrease from the same period a year ago. In spite of positive net income attributable to shareholders of the Company, working capital was lower than for the same period of the previous year, the result of lower cash flows from operating activities.

3. Projections for FY2010

Toshiba’s business projections for its consolidated results for the fiscal year 2010 remain unchanged from the projections announced on May 7, 2010.


	FY2010 Forecast	Change from FY2009
Net Sales	7,000.0	+618.4
Operating income (loss)	250.0	+132.8
Income (loss) from continuing operations, before income taxes and noncontrolling interests	150.0	+125.0
Net income (loss) attributable to shareholders of the Company	70.0	+89.7

Q & A Session

Q1. Please tell us the key points in the FY2010 Q1 results.: In terms of sales, we maintained the rising trend that we saw in the second half of FY2009 by generating sales that were 129.5 billion yen higher that for the same period a year earlier, and we recorded net sales of 1,469.2 billion yen. As for operating income, this increased by 67.1 billion yen from the same period last year to a total of 29.5 billion yen-the best FY Q1 performance since Toshiba started to announce quarterly results. The reasons underpinning this good performance are as follow: In the Electronic Devices segment we saw a recovery in demand for semiconductors and LCDs, and this combined with the effects of cost cutting measures resulted in a significant improvement; the Digital Products segment saw LCD TVs and storage devices generate a higher profit; and the Home Appliances business also managed to narrow its loss by promoting business restructuring. In addition, Income (loss) from continuing operations before income taxes and non-controlling interests and net income (loss) attributable to shareholders of the Company improved considerably from the same period a year ago, returning to the black.
Q2. In FY2009 the PC business recorded an operating loss. Please can you tell us the factors which have lead to a return to the black in FY2009 Q1?: The PC business FY2009 operating loss was 8.8 billion yen (Q4 showed a 9.4 billion yen loss). However, in FY2010 Q1 we have improved profit by 10.6 billion yen on a quarter-on-quarter basis against FY2009 Q4, bringing the business into the black to 1.2 billion yen. This result reflects the progress we have made in promoting strategies to improve profit, such as reducing fixed costs and cutting procurement costs. We are now looking to enhance our product line-up in response to the shift toward low-price models, and we are strengthening our sales activities in emerging markets. We also plan to increase the scale of our sales by considerably raising the number of unit shipments, and we will achieve this by implementing measures to secure stable procurement of key components. Through these measures we aim to establish a consistent earnings base.
Q3. Could you please tell us about the circumstances of the FY2010 Q1 results in the semiconductor business and the outlook for the future?: The semiconductor business saw a large increase in sales from the Memory business, due to increased demand and price stabilization in NAND flash memories. Both the Discrete and System LSI businesses also saw increased sales, and as a result sales were 23% higher on a year-on-year basis and rose to 276.7 billion yen. Operating income also fared well, with price stabilization for NAND flash memories and the effects of cost cutting measures securing an increase of 58.4 billion yen against the same period last year, resulting in a profit of 22.2 billion yen. The future market outlook indicates that the Memory and Discrete businesses will continue to see healthy demand in general and that System LSIs are still seeing strong demand in emerging countries, especially in China. We are aiming for full year total semiconductor sales of 1,210 billion yen and operating income of 100 billion yen.
Q4. What are the reasons behind Social Infrastructure Division recording lower revenue and lower profit in FY2010 Q1 against the same period last year?: The Power Systems & Industrial Systems businesses and the Solutions business all suffered the effects of a fall-off in orders during the economic downturn in FY2009. This brought lower sales and lower operating income (loss). However, the nuclear energy business recorded increased sales from overseas business related to new plants. Looking at the current order situation in the Social Infrastructure segment as a whole, we are seeing upward momentum, and for this reason we have not revised our forecast for the full year results.
Q5. Please tell us about the overall forecast for the FY2010 results.: We have not changed our forecasts for the first half of FY2010: net sales of 3,300 billion yen and operating income of 70 billion yen. Our full year forecasts also remain unchanged: net sales of 7 trillion yen and operating income of 250 billion yen. Having said that, we will need to continue to keep a close eye on the economy and trends in foreign exchange movements. The exchange rate estimates for our FY2010 forecast are 90 yen to the dollar and 110 yen to the euro, which has been revised from 120 yen to the euro in our initial forecasts. However, we aim to absorb the effects of this rate adjustment in our forecast by increasing sales and strengthening business structure.
Q6. What can you tell us about the dividend for FY2010?: The FY2010 dividend has not yet been decided. Looking to future dividends, once we are at the point where we secure a suitable level of non-consolidated net income, we will give thorough consideration to paying a suitable dividend.

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.