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Presentations & Events

FY2011

- ended March 2012 (For 173rd Fiscal Period)

Q1
Q2
Q3
Q4

Presentation for FY2011 Q3 Results

For First 9 months and 3rd Quarter ended December, 2011 - January 31, 2012

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 [539KB/28 pages]
Video
* Video no longer available. (Availability: Jan., 2012 - Apr., 2012)
Earnings Release

Key Points of the presentation

Net Sales and Operating income decreased YoY*, affected by sharp yen appreciation, sluggish markets in Europe and the United States and the impact of the earthquake in Japan and flooding in Thailand.

Net Sales:	4,353.9 billion yen	(YoY: -315.7 billion yen)
Operating Income:	90.8 billion yen	(YoY: -51.5 billion yen)
Income before income taxes and noncontrolling interests:	32.6 billion yen	(YoY: -55.4 billion yen)
Net Income:	12.1 billion yen	(YoY: -28.1 billion yen)

- Increased YoY sales in Social Infrastructure.
- A solid performance in Social Infrastructure, which saw the same level of operating income YoY, and increased income in Home Appliances.

Lower Net Sales and lower Operating income YoY for the 3rd quarter, but higher sales and higher income in Social Infrastructure and higher income in Electronic Devices.

Financial forecast for FY2011 is revised as below.

Net Sales:	6,200.0 billion yen	(YoY: -198.5 billion yen)
Operating Income:	200.0 billion yen	(YoY: -40.3 billion yen)
Net Income:	65.0 billion yen	(YoY: -72.8 billion yen)

*YoY: year-on-year comparison

Q & A

Q1. Please tell us the key points in the consolidated results for the first nine months and the third quarter.: In the first nine months of FY2011, consolidated net sales decreased due to a sharp yen appreciation, sluggish markets, particularly in Europe and the United States, the impact of the earthquake in Japan and the flooding in Thailand, resulting in net sales of 4,353.9 billion yen, 315.7 billion yen lower on a year-on-year basis. In terms of operating income, the Social Infrastructure segment maintained the same level of results as in the same period last year, and the Home Appliances segment managed to increase profit. However, the Digital Products and Electronic Devices segments recorded lower operating income. This resulted in overall operating income of 90.8 billion yen, 51.5 billion yen lower on a year-on-year basis. In the third quarter, overall net sales and operating income were both lower on a year-on-year basis. However, the Social Infrastructure segment recorded higher sales and higher operating income, and the Electronic Devices segment also recorded higher operating income.
Q2. What are the reasons for revision of the full year projections for FY2011?: Businesses of Toshiba Group have been influenced greatly by changes in the business environment, including the progress of sharp yen appreciation, the impact of the flooding in Thailand and deterioration in markets due to financial uncertainty in some European countries. As a result, the full-year forecast for net sales has been revised to 6,200 billion yen (198.5 billion yen lower than for the year prior period) and operating income has been revised to 200 billion yen (40.3 billion yen less than for the year prior period). A change in the corporation tax law requires us to bear a lump-sum tax expense increase of 36.5 billion yen and, after factoring this in, the forecast for net income has been revised to 65.0 billion yen (72.8 billion yen lower than for the year prior period). Digital Products, such as TVs, are expected to record lower sales and lower income than in the same period last year. On the other hand, Social Infrastructure is expected to see higher sales and higher income on a year-on-year basis and to secure a high profit level. The Home Appliances segment is also expected to record higher operating income.
Q3. The results from the first nine months for the semiconductor business saw lower sales and operating income than for the same period last year. What are the reasons for that and how is the outlook?: In terms of net sales in the semiconductor business, the Memory business recorded lower sales due to the impact of the yen appreciation and lower prices. System LSI and Discretes also saw lower sales than for the same period last year, mainly as a result of lower demand. In respect of operating income, the semiconductor business as a whole recorded lower results on a year-on-year basis, since the Memory business suffered from the impact of lower prices and yen appreciation, while the System LSI and Discrete businesses experienced lower demand. For the full year, we forecast net sales of 980 billion yen and operating income of 50 billion yen. In FY2012 and beyond, we will aim to secure an even higher level of profitability.
Q4. How were the Social Infrastructure segment results for the first nine months and what are your forecasts for the full year?: In terms of sales, Thermal & Hydro Power Systems continued to see a healthy performance and sales were raised by the acquisition of Landis+Gyr AG, leading to the segment as a whole recording increased sales. In terms of operating income, Thermal and Hydro Power Systems performed well, with the acquisition of Landis+Gyr AG having a positive impact, and the IT Solutions and Medical Systems businesses saw increased profit. However, due to reduced profit in Transmission and Distribution Systems, the segment as a whole secured the same level of operating income as for the same period last year. For the full year, we forecast higher sales and higher operating income on a year-on-year basis, with net sales of 2,470 billion yen and operating income of 140 billion yen.
Q5. How did the Digital Products segment and the Home Appliances segment perform?: The Digital Products segment saw lower overall sales, reflecting the impact of yen appreciation, sluggish sales of PCs in Europe and the United States and price erosion and lower demand for LCD TVs in Japan and other markets. Operating income was higher in PCs, but the impacts of price erosion and lower demand for LCD TVs, mainly in Japan on completion of the transition to digital terrestrial broadcasting, brought the segment into the red. On the other hand, white goods saw lower demand from October and was affected by the flooding in Thailand, but LED Lighting saw increased sales, stimulated by a rise in demand for energy efficient products that consume less power, with the result that overall sales remained at the same level as for the previous year. Despite the impact of the flooding in Thailand, the home appliance segment saw higher operating income on a year-on-year basis, owing to increased sales in LED Lighting and the results of business restructuring.
Q6. Please tell us about the impact of the Great East Japan Earthquake and the flooding in Thailand.: In the results for the first nine months, the combined impacts of the earthquake and the flooding in Thailand had a negative impact on operating income of approximately 25 billion yen. Reconstruction efforts in the areas damaged by the earthquake are now generating demand and contributing to our full year results. The flooding in Thailand damaged production sites for the Home Appliances and the semiconductor and storage devices businesses, however, alternative production has already started at production sites outside Thailand and some of the Thai manufacturing sites have now resumed operations. We will continue to make efforts to minimize the impact of this event.
Q7. What can you tell us about the year-end dividend payment for FY2011?: We paid an interim dividend of 4 yen per share. The year-end dividend has not yet been decided. 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 in light of future investment plans and our financial position.

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