Presentations & Events
- ended March 2014 (For 175th Fiscal Period)
Presentation for FY2013 Q1 Results
For 1st Quarter ended June, 2013 - July 31, 2013
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 [476KB/23 pages]
* Video no longer available. (Availability: Jul., 2013 - Oct., 2013)
- Earnings Release
Key Points of the presentation
Electronic Devices recorded a significant sales increase on higher prices and increased volume of memories. Social Infrastructure also saw an increase reflecting steady overseas sales in Nuclear Power Systems and in Photovoltaic Power Systems.
|Net Sales||1,390.6 billion yen||(YoY: +121.7 billion yen)|
Operating income doubled YoY, supported by a significant increase in Electronic Devices and a positive result in Social Infrastructure that exceeded the target, despite lower operating income YoY. Income before income taxes and noncontrolling interests and net income both improved significantly and secured positive figure supported by increased operating income.
|Operating income||24.3 billion yen||(YoY: +12.8 billion yen)|
|Income before income taxes and noncontrolling interest||17.4 billion yen||(YoY: +32.1 billion yen)|
|Net income||5.3 billion yen||(YoY: +17.4 billion yen)|
The D/E ratio decreased to 133%, a 37-point decrease from the year-earlier period and a 9-point decrease from the end of March 2013.
*YoY: year-on-year comparison
Q & A Session
- Q1. Please explain the main points of the FY2013 first quarter consolidated results.
- The Electronic Devices segment recorded a significant rise in net sales on higher prices and increased volumes of NAND flash memories. The Social Infrastructure segment also saw an increase, reflecting steady sales in overseas Nuclear Power Systems and in Photovoltaic Power Systems. Net sales increased 10% on a year-on-year basis. Operating income doubled, YoY, supported by the significant increase in the Electronic Devices segment and a positive result in Social Infrastructure segment that exceeded the target, despite lower operating income. Income before income taxes and noncontrolling interests and net income both improved significantly and secured a positive result.
- Q2. How does yen depreciation affect to the company's performance?
- Yen depreciation on the first quarter had the effects of a 130 billion yen increase in sales and a 10 billion yen increase in operating income. Yen depreciation basically has positive impacts on exporters, such as Semiconductors, Medical Systems and Power Systems. However, depreciation is also raising our procurement and electricity costs. In domestic LCD TVs, PC and Home Appliances businesses, where offshoring is advanced and imports amounts are larger, yen depreciation has a negative impact. In these businesses we will improve profitability through measures that include raising prices.
The assumed foreign exchange rate at the time when the full-year forecast was made was 90 yen to the dollar and 115 yen to the euro.
- Q3. Could you please tell us about the FY2013 first quarter business results in the Semiconductor and Storage businesses?
- The Semiconductor and Storage businesses saw substantially higher sales. NAND flash memories saw considerably higher sales on higher average prices due to improvements in the product mix. The consolidation of NuFlare Technology, Inc. in December 2012 also contributed to the segment's higher overall sales. NAND flash memories recorded an upswing in operating income on increased sales. Storage Products secured profit despite lower demand for PCs. The consolidation of NuFlare Technology, Inc. also contributed, and the overall operating income of the segment increased sharply to 47.9 billion yen, a rise of 38.5 billion yen against the same period last year.
- Q4. Could you please tell us about the FY2013 first quarter business results in the Social Infrastructure segment?
- Overall sales increased. Nuclear Power Systems overseas and Photovoltaic Power Systems continued to record healthy performances. Elevators and Medical Systems also saw solid performances. Automotive Systems, such as batteries and motors, recorded growth. Overall operating income decreased, but we secured a profit. Thermal Power Systems also decreased but secured high profitability. Photovoltaic power systems and Medical Systems recorded increases.
- Q5. Could you please tell us about the FY2013 first quarter business results in the Digital Products segment and Home Appliances segment?
- The Digital Products segment saw a decrease in overall sales. LCD TVs are on path for recovery in Japan, but declined on slumping sales in Europe and North America. PCs saw sales drop on reduced sales volume. The Retail Information Systems and Office Equipment businesses reported increase sales on positive effects from the acquisition of IBM's Retail Store Solutions business. However, the overall operating loss of the Digital Products segment increased. While the Retail Information Systems and Office Equipment businesses reported solid performances, LCD TVs saw lower operating income as a result of the downturn in Europe and other regions, despite improvement in Japan due to structural reform and higher sales prices. PCs saw a negative figure on lower demand and yen depreciation. Overall operating income was lower.
Home Appliances segment recorded an overall increase in sales, mainly due to growth in White Goods, such as washing machines and refrigerators, but operating income deteriorated as a result of yen depreciation.
- Q6. How will you improve your performance in the LCD TV and PC businesses?
- We plan to increase sales and profit by accelerating profit-focused resource allocation and establishing a business strategy to reduce fixed costs, improve profitability and strengthen the business foundations. We will also seek to promote sales in emerging markets, focus on enterprise business and develop high value-added products. We announced these measures on July 26 as a part of continuing structural reforms, and we will follow up with more reforms in this fiscal year. This will include a review of production and a reform of sales operations in Japan and overseas.
- Q7. Please give us your forecasts for FY2013's first half and full-year results.
- We are not changing our results forecast for the first half and full fiscal year. In addition to the positive effects from yen depreciation, NAND flash memories will maintain a strong performance and the Social Infrastructure segment is expected to see improvement. M&As completed in the last fiscal year, such as the acquisition of IBM's Retail Store Solutions business, will also have a positive impact. However, we must take into account changes in the digital products market, and we must make prudent estimates of increases in our procurement and electricity costs. We must also bear in mind that the prospects for the world economy are unclear, largely due to slowing growth in emerging economies such as China, and we need pay careful attention to changes in the external environment. Nonetheless, we have set the forecast as our minimum target and aim to achieve further improvement.
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.