Presentations & Events
- ended March 2014 (For 175th Fiscal Period)
Presentation for FY2013 Q2 Results
For First 6 months and 2nd Quarter ended September, 2013 - October 30, 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 [630KB/31 pages]
* Video no longer available. (Availability: Oct., 2013 - Jan., 2014)
Key Points of the presentation
Electronic Devices recorded a significant sales increase on higher prices and higher volume sales of memories. Social Infrastructure saw a continued increase in overall sales on growth in Social Systems, including Photovoltaic Power Systems, Elevator and Building Systems and Medical Systems. Digital Products recorded higher on a positive performance at Toshiba TEC, and Home Appliances also saw increased sales.
|Net Sales||3,039.2 billion yen||(YoY: +353.3 billion yen)|
Overall operating income increased YoY, supported by the highest ever increase in Electronic Devices and despite YoY decreases in Digital Products, Social Infrastructure and Home Appliances. Income before income taxes and noncontrolling interests also increased. Net income attributable to shareholders of the Company decreased due to an increase in the tax expense, but surpasses the initial forecast.
|Operating income||105.6 billion yen||(YoY: +36.9 billion yen)|
|Income before income taxes and noncontrolling interests||51.9 billion yen||(YoY: +9.2 billion yen)|
|Net income||21.5 billion yen||(YoY: -3.6 billion yen)|
The D/E ratio was 138%, a 30-point improve from the year-earlier period.
An interim dividend of 4 yen per share has been determined.
*YoY: year-on-year comparison
Q & A Session
- Q1. Please explain the main points of the FY2013 first half (April – September) consolidated results.
- Electronic Devices recorded a significant sales increase on higher prices and higher volume sales of NAND flash memories. Social Infrastructure saw a continued increase in overall sales on growth in Social Systems, including Photovoltaic Power Systems, Elevator and Building Systems and Medical Systems. Digital Products recorded higher sales on a positive performance at Toshiba TEC, and Home Appliances also saw increased sales. Overall sales increased 13% on a year-on-year basis. Overall operating income increased 36.9 billion yen YoY, supported by the highest ever operating income in Electronic Devices. Income before income taxes and noncontrolling interests also increased. Net income attributable to shareholders of the Company decreased due to an increase in the tax expense, but surpassed the initial forecast.
- Q2. Could you please tell us about the FY2013 first half business results in the Semiconductor and Storage businesses?
- We saw significantly higher sales on higher prices and volume sales of NAND flash memories, and the consolidation of NuFlare Technology, Inc. The Semiconductor business recorded its highest ever operating income on a half-year basis.
- Q3. Could you please tell us about the FY2013 first half business results in the Social Infrastructure segment?
- Overall sales increased. Social Infrastructure, including Photovoltaic Power Systems, automotive equipment and industrial equipment, saw sales continue to increase, and Elevators and Medical Systems also recorded solid performances. Operating income decreased on lower demand in domestic Nuclear Power Systems, and a decline in the fuel business in overseas Nuclear Power Systems. Thermal Power Systems saw a decrease but secured high profitability. Photovoltaic Power Systems, Elevators and Medical Systems all recorded increases.
- Q4. Could you please tell us about the FY2013 first half business results in the Digital Products segment and Home Appliances segment?
- The Digital Products segment saw an increase in overall sales due to higher sales at Toshiba TEC, mainly in POS systems, following the acquisition of IBM's retail store solutions business. LCD TVs saw a recovery in Japan but a decline in North America. Overall sales decreased on lower demand for PCs. The segment operating loss increased, but Toshiba TEC recorded increases in profit and LCD TVs improved on structural reform. The PC business recorded a loss due to a fall-off in demand, although the loss was half that of 1Q. Home Appliances recorded an overall increase in sales due to growth of White Goods, such as washing machines and refrigerators. Operating income deteriorated YoY mainly in White Goods, affected by yen depreciation, but the 2Q result was an improvement on 1Q.
- Q5. Free cash flow during the FY2013 first half has fallen by 146.7 billion yen. Why is that?
- Cash flow from operating activities improved but was -14.5 billion yen, due to increased demand for working capital, most notably in the Social Infrastructure segment. Cash flow from investing activities was -132.2 billion yen. We anticipate an improvement in working capital in the second half, and we will also promote accelerated collection of receivables, reduce inventory, and make carefully selected capital investments in response to market conditions. At this point we anticipate achieving our full-year target.
- Q6. Please tell us about the overall forecast for the FY2013 business results.
- We have revised the FY2013 business forecast upward. Net sales: 6,300 billion yen (200 billion yen higher than the previous forecast); operating income: 290 billion yen (30 billion yen higher than the previous forecast). Increases in both net sales and operating income in the first half, mainly due to NAND flash memories, and consistent progress in improvement in the Digital Products and Home Appliances segments underpin that upward adjustment.
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