Presentations & Events
FY2010
- ended March 2011 (For 172nd Fiscal Period)
Presentation for FY2010 Q3 Results
For First 9 months and 3rd Quarter ended December, 2010 - January 31, 2011
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 [225KB/27 pages]
- Video
* Video no longer available. (Availability: Jan., 2011 - Apr., 2011)
- Earnings Release
Outline of the presentation
1. Consolidated results for the first 9 months FY2010
| Net Sales | 4,669.6 billion yen | (+209.6 billion yen YoY) |
|---|---|---|
| Operating income (loss) | 142.3 billion yen | (+125.7 billion yen YoY) |
| Income (loss) from continuing operations, before income taxes and noncontrolling interests | 88.0 billion yen | (+129.3 billion yen YoY) |
| Net income (loss) attributable to shareholders of the Company[1] | 40.2 billion yen | (+108.5 billion yen YoY) |
[1] “The Company” refers to Toshiba Corporation.
- Toshiba's consolidated net sales for the first nine months of FY2010 were 4,669.6 billion yen, an increase of 209.6 billion yen from the same period of the previous year. The result mainly reflects higher sales due to healthy performances in the Visual Products business, including TVs, the PC business and the Semiconductor business, including Memories. Consolidated operating income was 142.3 billion yen, an improvement of 125.7 billion yen. This represents the highest first nine months (April-December) consolidated operating income ever reported by the Company, and mainly reflects a significantly improved performance in the Semiconductor business and the LCD business, and a healthy performance in Home Appliances. The Digital Products segment, the Electronic Devices segment, the Social Infrastructure segment and the Home Appliances segment all secured a profit.
- Income (loss) from continuing operations before income taxes and noncontrolling interests improved by 129.3 billion yen to 88.0 billion yen, and the net income (loss) attributable to shareholders of the Company improved by 108.5 billion yen to 40.2 billion yen.
2. Financial Position and Cash Flows for the First Nine Months of FY2010
- Total assets decreased by 92.4 billion yen from the end of March 2010 to 5,358.8 billion yen.
- Shareholders’ equity, or equity attributable to the shareholders of the Company, decreased to 775.5 billion yen, a decrease of 21.9 billion yen from the end of March 2010, in spite of net income attributable to shareholders of the Company being 40.2 billion yen in the black. This reflects a deterioration in accumulated other comprehensive loss of 53.4 billion yen, due to impacts from foreign currency exchange.
- Total debt decreased by 203.8 billion yen from the end of December 2009, and by 31.1 billion yen from the end of March 2010, to 1,187.2 billion yen.
- As a result of the foregoing, the shareholders’ equity ratio at the end of December 2010 was 14.5%, and the debt-to-equity ratio at the end of December 2010 was 153%.
- Free cash flow was 21.4 billion yen, 75.5 billion yen lower than for the same period of the previous year. In spite of improved net income attributable to shareholders of the company, working capital was higher than for the same period of the previous year, and this resulted in lower cash flows from operating activities.
3. Performance Forecast for FY2010
Projections for Toshiba's overall consolidated sales have been influenced by the progress of yen appreciation, the discontinued operation of the mobile phone business following its merger with Fujitsu Limited’s mobile phone business, and a leveling-off in the Japanese economy that started to make itself felt in the third quarter of fiscal year 2010. As a consequence, sales are now projected to fall short of the forecast announced on May 7, 2010.
The forecast for overall consolidated operating income (loss) has not changed. Although the Company has so far recorded higher operating income than originally anticipated, mainly as result of healthy performances in Memories, the LCD business and the PC business, the direction of System LSIs is still uncertain at this point. Income (loss) from continuing operations, before income taxes and noncontrolling interests and net income (loss) attributable to shareholders of the Company are projected to be higher, due to a larger decrease in other operating income than originally expected.
In light of this, the Company has revised its business forecast for FY 2010, ending March 31, 2011, as below.
(billion yen)
| Revised Forecast (Jan. 31, 2011) | Change from Previous Forecast (May 7, 2010) | |
|---|---|---|
| Net Sales | 6,600.0 | -400.0 |
| Operating income (loss) | 250.0 | 0.0 |
| Income (loss) from continuing operations, before income taxes and noncontrolling interests | 190.0 | +40.0 |
| Net income (loss) attributable to shareholders of the Company | 100.0 | +30.0 |
Q & A Session
- Q1. Please tell us the key points in the first nine months results.
- In the first nine months of FY2010, consolidated net sales increased despite foreign exchange impacts, as LCD TVs, PCs and Semiconductors all recorded higher sales, supported by growth in emerging markets and economic stimulus measures, especially in Japan. Net sales climbed by 209.6 billion yen against the same period last year to a total of 4,669.6 billion yen. In terms of consolidated operating income, all four of our business segments - Digital Products, Electronic Devices, Social Infrastructure and Home Appliances - were in the black and operating income rose by 125.7 billion on year-on-year to 142.3 billion yen. As a result, we reported our highest consolidated operating income ever for the first nine months of a fiscal year. Income (loss) from continuing operations, before income taxes and noncontrolling interests (88.0 billion yen, (+129.3 billion yen YoY)) and Net income (loss) attributable to shareholders of the Company (40.2 billion yen (+108.5 billion yen YoY)) both improved considerably from the same period a year earlier, by over 100 billion yen, and both have returned to the black.
- Q2. What are the reasons for revision of the full year projections for FY2010?
- Projections for Toshiba's overall consolidated sales have been influenced by the progress of yen appreciation, the discontinued operation of the mobile phone business following its merger with Fujitsu Limited's mobile phone business, and a leveling-off in the Japanese economy that started to make itself felt in the third quarter of FY2010. As a consequence, sales are now projected to fall short of the forecast announced on May 7, 2010.
The forecast for overall consolidated operating income (loss) has not changed. Although the Company has so far recorded higher operating income for the first nine months of FY2010 than originally anticipated, mainly as a result of healthy performances in Memories, the LCD business and the PC business, the direction of System LSIs is still uncertain at this point. We revised upward Income (loss) from continuing operations before income taxes and noncontrolling interests by 40.0 billion yen to 190.0 billion yen and Net income (loss) attributable to shareholders of the Company by 30.0 billion yen to 100.0 billion yen, mainly as a result of lower than expected restructuring costs. - Q3. What impact did the Eco-point program, the Japanese government's measure to stimulate purchases of environmentally-conscious products, have on your FY2010 third quarter results?
- As a result of the government's extension and revision of the Eco-point program, our LCD TV business saw record demand in November 2010 and considerable growth in sales lead to increased profit. In addition, the Home Appliances segment saw good performances in refrigerators, home air-conditioners, and moved back into profit.
- Q4. How were the first nine months results for the semiconductor business? How is the outlook?
- Semiconductor business sales for the first nine months showed a considerable increase, driven by increased demand for NAND flash memories for application in items such as mobile products and Solid State Drive or SSD. With Discretes also performing solidly, sales increased 9% against the same period a year earlier to 847.3 billion yen. Operating income also improved considerably, mainly due to increased sales from NAND flash memories, and recorded a 95.1 billion yen increase against the same period a year earlier, for a total of 68.8 billion yen. Turning to the full year forecast, we revised this to incorporate risk factors in the System LSI that we expect to see in the fourth quarter.
- Q5. Please explain the background regarding the lower net sales and operating income of the Social Infrastructure segment in the FY2010 first nine months consolidated results, and the future outlook.
- In the first nine months consolidated results, Nuclear Power Systems and Transportation Systems in Power Systems & Industrial Systems performed solidly, but the segment as a whole returned lower net sales and operating income against the same period a year earlier, mainly due to the impact of a falloff in orders, which are affected by the continuing impact from last year's economic downturn. As a result of these factors, we have revised FY2010 full year forecast, but we still expect to see a steady and high level of profit.
- Q6. What can you tell us about the year-end dividend payment for FY2010?
- We paid an interim dividend of 2 yen per share. With respect to the year-end dividend, we will decide it in light of the FY2010 full-year business results, future investment plans and our financial position.
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