Presentations & Events

FY2013

- ended March 2014 (For 175th Fiscal Period)

Presentation for FY2013 Q3 Results

For First 9 months and 3rd Quarter ended December, 2013   - January 30, 2014

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Key Points of the presentation

All five main segments saw higher net sales than in the year-earlier period.

Net Sales 4,588.8 billion yen (YoY: +545.8 billion yen)

Overall operating income increased by 55.0 billion yen YoY, the highest ever increase for the first nine months of a fiscal year.

Operating income 153.3 billion yen (YoY: +55.0 billion yen)
Income before income taxes and noncontrolling interests 91.0 billion yen (YoY: ±0 billion yen)
Net income 38.7 billion yen (YoY: -15.8 billion yen)

*YoY: year-on-year comparison

Q & A Session

Q1. Please explain the main points of the first nine months' consolidated results in FY2013.
All five main segments saw higher net sales than in the year-earlier period. The Electronic Devices & Components segment recorded considerably higher sales on continuing higher sales of NAND flash memories. The Energy & Infrastructure segment sales increased on a healthy performance by the Social Infrastructure Systems business, including Photovoltaic Power Systems. The Community Solutions segment also saw sales increase on good performances by the Elevator business and Toshiba TEC. The Healthcare Systems & Services segment and the Lifestyle Products & Services segment also saw higher sales.

Overall operating income increased by 55.0 billion yen on a year-on-year basis, and reached the highest ever level for the first nine months of a fiscal year. The Electronic Devices & Components segment recorded its highest ever operating income in this nine-month period, and the Community Solutions and the Healthcare Systems & Services segments also reported higher operating income. The Lifestyle Products & Services segment saw a considerable improvement in operating income (loss) in the 3Q against the 2Q. The LCD TV and Home Appliances businesses moved into positive operating income in the 3Q. The Energy & Infrastructure segment saw lower operating income than in the same period a year earlier, due to deterioration in the overseas Nuclear Power Systems. Net income decreased due to increases in income tax expenses, but surpassed the initial forecast.
Q2. Please give us your forecasts for FY2013 full-year results.
Our FY2013 full-year consolidated forecast remains unchanged from the projections that we announced on October 30, 2013. To recap, we anticipate net sales of 6,300 billion yen; operating income of 290 billion yen; income before taxes of 200 billion yen; and net income of 100 billion yen. We recognize this forecast as a minimum target and will try to surpass it. The assumed foreign exchange rate in the Q4 is 102 yen to the dollar and 139 yen to the euro.
Q3. Please tell us about the Electronic Devices & Components segment's results for the first nine months.
Sales increased as NAND flash memories continued to record solid sales and as the Storage Products business saw growth, mainly in 3.5-inch HDDs. Operating income increased significantly to the highest level ever for a nine-month period. NAND flash memories continued to secure high profit, although the supply and demand balance slightly eased in the 3Q.
Q4. Please tell us about the Energy & Infrastructure segment's results for the first nine months.
Sales continued to rise, largely due to increased sales in the Renewable Energy business, including Photovoltaic Power Systems, and other Social Infrastructure Systems, including Railroad Systems, Automotive Systems and Industrial Equipment. The segment as a whole saw higher sales, despite reduced sales in Nuclear Power Systems in Japan. Operating income was lower on the performance of the overseas Nuclear Power Systems. Social Infrastructure Systems saw operating income continue to increase on good performances by Photovoltaic Power Systems, Railroad Systems and other businesses. Thermal Power Systems saw lower operating income but secured high profitability.
Q5. Please tell us about the Community Solutions segment's results for the first nine months.
Segment sales increased. The Disaster Prevention Solutions, Elevators and Commercial Air-Conditioners businesses maintained solid growth. Toshiba TEC recorded higher sales, mainly in the Retail Store Solutions business acquired from IBM. Operating income increased, mainly in the Elevators and Commercial Air-Conditioners businesses on expansion in emerging markets, along with increased operating income at Toshiba TEC.
Q6. Please tell us about the Healthcare Systems & Services segment's results for the first nine months
Sales rose on increased equipment sales, especially of computerized tomography (CT) systems in emerging markets such as Turkey. Higher sales were also the result of a solid performance in the service sector following an increase in unit installations, especially overseas. Higher operating income mainly came from the service sector and equipment sales in emerging markets. Yen depreciation also contributed to increased operating income from overseas operations.
Q7. Please tell us about the Lifestyle Products & Services segment's results for the first nine months.
The Lifestyle Products & Services segment halved its deficit in the 3Q against the 2Q and steadily improved its profitability in each quarter. The LCD TV and Home Appliances businesses moved into profit in the 3Q. The PC business allocated the cost of inventory disposal to structural reform.
Q8. How was free cash flow in the first nine months and the third quarter?
Free cash flow in the 3Q was 25.4 billion yen. Even though free cash flow for the first nine months was minus 121.3 billion yen, we anticipate achieving our full-year target by promoting accelerated collection of receivables, especially in the Energy & Infrastructure segment, where sales have a strong seasonality and are concentrated in 4Q.

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