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Presentations & Events

FY2010

- ended March 2011 (For 172nd Fiscal Period)

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Presentation for FY2010 Results

For Fiscal Year ended March, 2011 - May 9, 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 [270KB/26 pages]
Video
* Video no longer available. (Availability: May, 2011 - Aug., 2011)
Earnings Release

Outline of the presentation

1. Consolidated results for FY2010

(billion yen)

Net sales	6,398.5	(+107.3 YoY)
Operating income (loss)	240.3	(+115.1 YoY)
Income (loss) from continuing operations, before income taxes and minority interest	195.5	(+161.1 YoY)
Net loss attributable to shareholders of the Company^[1]	137.8	(+157.5 YoY)

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

Toshiba’s consolidated net sales for FY2010 were 6,398.5 billion yen, an increase of 107.3 billion yen against the previous year. This result mainly reflected higher sales in the Visual Products business, including TVs, and in the Semiconductor business, including Memories, and was achieved despite yen appreciation and the impact of the Great East Japan Earthquake. Consolidated operating income increased by 115.1 billion yen to 240.3 billion yen. This result reflected significant improvements in the Semiconductor business and the LCD business, a healthy performance by the Home Appliance segment and the continued high profit level of the Social Infrastructure segment. The Digital Products segment, the Electric Devices segment, the Social Infrastructure segment and the Home Appliance segment all secured profit.
Income from continuing operations before income taxes and noncontrolling interests improved by 161.1 billion yen to 195.5 billion yen. Net income (loss) attributable to shareholders of the Company improved by 157.5 billion yen to 137.8 billion yen.
Consolidated operating income and net income (loss) attributable to shareholders of the Company returned to the levels recorded in fiscal year 2007, prior to the financial crisis.

2. Financial Position and Cash Flows for FY2010

Total assets decreased by 71.9 billion yen from the end of March 2010 to 5,379.3 billion yen.
Shareholders’ equity, or equity attributable to the shareholders of the Company, increased to 868.1 billion yen, an increase of 70.7 billion yen against the end of March 2010, despite a deterioration in accumulated other comprehensive loss of 57.1 billion yen, due to impacts from fluctuations in foreign exchange rates and a downturn in stock market prices. This reflects a net income attributable to shareholders of the Company of 137.8 billion yen.
Total debt decreased by 137.0 billion yen from the end of March 2010 to 1,081.3 billion yen.
As a result of the foregoing, the shareholders’ equity ratio at the end of March 2011 was 16.1%, a 1.5-point improvement from the end of March 2010, and the debt-to-equity ratio at the end of March 2011 was 125%, a 28-point improvement from the end of March 2010.
Free cash flow was 159.4 billion yen, 39.1 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. Projections for FY2011

Consolidated forecast

(billion yen)

	FY2011 Forecast	Change from FY2010
Net sales	7,000.0	+601.5
Operating income (loss)	300.0	+59.7
Income (loss) from continuing operations, before income taxes and minority interest	240.0	+44.5
Net income (loss) attributable to shareholders of the Company	140.0	+2.2

Q & A Session

Q1. Please tell us the key points in the FY2010 business results. What were the effects of the Great East Japan Earthquake?: Despite impacts from yen appreciation and the Great East Japan Earthquake, net sales increased against last year, particularly in the Digital Products segment and the Electronic Devices segment. We recorded operating income in all four of our business segments, Digital Products, Electronic Devices, Social Infrastructure and Home Appliances, and among them, Electronics Device segment saw significant improvement. Consolidated operating income and net income returned to the profit level of FY2007, prior to the financial crisis. The Great East Japan Earthquake brought negative impacts of approximately 70 billion yen to net sales and of approximately 20 billion yen to net income, and this affected all business segments.
Q2. Please tell us the key points of the FY2011 forecast. What assumptions have you made regarding the impact of the earthquake?: We see that the earthquake will bring negative impacts in the first half, especially in the first quarter. We anticipate negative impacts of some 300 billion yen to net sales and of some 70 billion yen to operating income. However, by contributing to Japan's recovery and reconstruction across all business areas, as well as drawing on the dynamism of emerging markets, we aim to recover in the second half of FY2011. In addition, by accelerating transformation of our corporate business structure and continuing to push forward with structural reform, we plan to increase net sales and increase operating income against the FY2010 level.
Q3. How were the results for the semiconductor business and how do you see future prospects?: Overall, the Semiconductor business recorded higher sales on higher sales in Memories, reflecting expanded demand for mobile products, such as smart phones, and SSD*, and price stability in NAND flash memories. The solid performance of Discrete devices also contributed to the overall increase in sales. Operating income improved significantly, despite an impairment loss in the System LSI business, largely on increased sales in NAND flash memory and the results of cost cutting. In FY2011 we aim to improve our competitive strength and further boost profitability in the Memory business, and will also expand our power device business and position it as a new source of earnings.
* SSD (Solid State Drive): data storage devices based on NAND flash memory.
Q4. How were results in the Social Infrastructure segment and what is the outlook for the future?: The Power Systems and Industrial Systems businesses recorded higher sales thanks to a healthy performance by the Industrial Systems business, particularly in overseas markets. However the Infrastructure Systems business, IT Solutions business and Medical systems business all recorded lower sales as they experienced sluggish markets and reduced prices. As a result, the Social Infrastructure segment saw overall sales decline. Despite that, operating income remained almost at the FY2010 level and the segment continued to maintain a high level of profitability. In FY2011 we will contribute all that we can to recovery from the earthquake while accelerating the globalization of the Social Infrastructure business and the provision of social infrastructure in emerging markets. We also aim to expand the business by utilizing the overall strengths of Toshiba Group to develop Smart Communities, new energy sources and a new generation of power generation systems, as the next generation of social infrastructure.
Q5. Have you made progress with improving the financial position of the company? Please tell us the key points.: Free cash flow for FY2010 stood at 159.4 billion yen, surpassing the level of net income of 137.8 billion yen. This is thanks to the improvement in our earnings and suppressed cash flow from investing activities through tightened investment management, which focused on investment efficiency.
The debt-to-equity ratio at the end of March 2011 was 125%, a 28-point improvement against the 153% of the previous year end and an indication of the progress made in establishing a stronger financial base.

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.