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Presentations & Events

FY2013

- ended March 2014 (For 175th Fiscal Period)

Q1
Q2
Q3
Q4

Presentation for FY2013 Results

For Fiscal Year ended March, 2014 - May 8, 2014

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 [1.05MB/28 pages]
Video
* Video no longer available. (Availability: May, 2014 - Aug., 2014)
Earnings Release

Key Points of the presentation

All segments recorded higher sales than in the year-earlier period.

Net Sales 6,502.5 billion yen (YoY: +775.5 billion yen)

Electronic Devices & Components recorded significantly higher sales due to continued higher sales of memories throughout the year.
Energy & Infrastructure recorded higher sales due to the healthy performance of Social Infrastructure. Community Solutions also recorded sales increase due to the healthy performance of Building Solutions and Toshiba TEC.

Net Sales	6,502.5 billion yen	(YoY: +775.5 billion yen)

Operating income of 290.8 billion yen was 47% higher than in the year-earlier period.

Operating income	290.8 billion yen	(YoY: +93.1 billion yen)
Income before income taxes and noncontrolling interest	180.9 billion yen	(YoY: +21.3 billion yen)
Net income	50.8 billion yen	(YoY: -26.6 billion yen)

*YoY: year-on-year comparison

Electronic Devices & Components recorded operating income of 238.5 billion yen, its highest-ever, thanks to high profitability in memories in the 4Q that exceeds the first half.
Although the Energy & Infrastructure segment had the temporary negative influence of -31.0 billion yen in operating income, reflecting a conservative reassessment of the asset value of a U.S. developer of nuclear power plants, Nuclear Innovation North America LLC (NINA), the three pillars of business, which are Energy, Data Storage and Healthcare, achieved total operating income of 351.3 billion yen.
Lifestyle Products & Services saw a considerable improvement in operating income in each business from first half to second half.
Net income (loss) attributable to shareholders of the Company decreased on the negative effects of the reassessment of the asset value of NINA (-31.0 billion yen), discontinuation of the Optical Disc Drive (ODD) business (-15.0 billion yen), and reversal of deferred tax asset due to abolition of the Special Corporation Tax for Reconstruction (-9.8 billion yen).

The D/E ratio improved significantly by 29 points from year-earlier period to 113%.

Q & A Session

Q1. Please explain the main points of the consolidated results in FY2013.: All segments recorded higher sales than in the year-earlier period. The Electronic Devices & Components segment recorded significantly higher sales due to continued higher sales of NAND flash memories throughout the year. The Energy & Infrastructure segment recorded higher sales due to the healthy performance of Social Infrastructure business. The Community Solutions segment also recorded sales increase due to the healthy performance of Building Solutions business and Toshiba TEC. The Healthcare Systems & Services segment and the Lifestyle Products & Services segment also recorded higher sales.
Operating income of 290.8 billion yen was 47% higher than in the year-earlier period. The Electronic Devices & Components segment recorded operating income of 238.5 billion yen, its highest-ever, thanks to high profitability in NAND flash memories in the 4Q, which exceeded that of the first half. Although the Energy & Infrastructure segment felt the temporary negative influence of -31.0 billion yen in operating income, reflecting a conservative reassessment of the asset value of a U.S. developer of nuclear power plants, Nuclear Innovation North America LLC (NINA), the three pillars of Toshiba's business, Energy, Data Storage and Healthcare, achieved total operating income of 351.3 billion yen. The Lifestyle Products & Services segment saw a considerable second half improvement in operating income in each business against the first half.
Net income attributable to shareholders of the Company decreased on the negative effects of the reassessment of the asset value of NINA (-31.0 billion yen), the discontinuation of the ODD business (-15.0 billion yen), and the reversal of deferred tax asset due to abolition of the Special Corporation Tax for Reconstruction (-9.8 billion yen).
Q2. Please tell us about the overall forecast for FY2014.: Our FY2014 forecasts are as follow: net sales of 6,700.0 billion yen (YoY +197.5 billion yen), operating income of 330.0 billion yen (YoY +39.2 billion yen), and net income attributable to shareholders of the Company of 120.0 billion yen (YoY +69.2 billion yen). In the Energy & Infrastructure segment, we expect to see increases in sales and operating income thanks to growth in Transmission & Distribution Systems and Railroad Systems, and no recurrence of one-time expenses incurred by Nuclear Power Systems in FY2013. The Electronic Devices & Components segment is expected to continue to secure high profitability despite a more prudent estimate of the margin in NAND flash memories compared to FY2013. The Lifestyle Products & Services segment is forecast to see considerable improvement and to move into the black. Our foreign exchange rate assumptions for FY2014 are $1 = 100 yen and 1 euro = 135 yen.
Q3. Please tell us about the FY2013 business results in the Electronic Devices & Components segment.: The segment as a whole saw higher sales, reflecting higher sales of NAND flash memories throughout the year. The Storage Products business also recorded higher sales on sales of 3.5-inch HDDs. The segment recorded its highest-ever operating income. Despite price reductions for NAND flash memories in the 4Q, the segment maintained high profitability, supported by development of leading-edge process technologies and cost reductions. The Discrete business recorded positive operating income in 4Q.
Q4. Please tell us about the FY2013 business results in the Energy & Infrastructure segment.: The segment as a whole saw higher sales on increased sales in the renewable energy business, including Solar Photovoltaic Power Systems, and in the Social Infrastructure business, including Transmission & Distribution Systems, Railroad Systems, Automotive Systems, Industrial Equipment and Landis+Gyr, the world's leading Smart Meter company. The Social Infrastructure business' operating income continued to increase on good performances by Solar Photovoltaic Power Systems, Transmission & Distribution Systems, Railroad Systems and other businesses. Thermal Power Systems maintained high profitability. The segment as a whole saw lower operating income due to one-time expenses incurred by the overseas nuclear power systems and a conservative reassessment of the asset value of NINA.
Q5. Please tell us about the FY2013 business results in the Community Solutions segment.: The segment as a whole saw higher sales. Solar Photovoltaic Power Systems and Disaster Prevention Systems for local governments, and Building Solutions business including Elevators, Commercial Air Conditioners and Lighting, maintained solid growth. Toshiba TEC recorded higher sales, mainly in the Retail Store Solutions Business acquired from IBM. The segment as a whole saw higher operating income. The Elevator and Commercial Air-Conditioner businesses saw higher operating income thanks to business expansion in emerging economies. Toshiba TEC's Retail Information Systems and Office Equipment businesses also saw higher operating income on global expansion.
Q6. Please tell us about the FY2013 business results in the Healthcare Systems & Services segment.: The segment as a whole saw higher sales on sales of computerized tomography (CT) systems in Turkey and other emerging economies as well as in Japan. The Diagnostic Ultrasonic Systems recorded a solid performance. The service sector also saw good performances in Japan and overseas. The segment as a whole saw higher operating income, reflecting a solid performance by the service sector, especially for CT systems in Japan and the U.S., and the smooth establishment of local subsidiaries in emerging economies. Yen depreciation also improved the profitability of overseas operations.
Q7. Please tell us about the FY2013 business results in the Lifestyle Products & Services segment.: The segment saw a considerable improvement in operating income from the first half to the second half. The Home Appliances business continued to see positive operating income in the 4Q and saw higher operating income than in the 3Q. The TV business saw positive operating income in the 3Q, but recorded the cost of clearing inventories in Europe in the 4Q as part of structural reform. The PC business 4Q operating deficit was half that of the 3Q.
Q8. How was free cash flow and D/E ratio in FY2013?: Free cash flow in FY2013 was 40.0 billion yen and improved substantially by 104.0 billion yen from the year-earlier period. Improved cash flow was due to considerable increase in operating income in the Electronic Devices & Components segment and reduction of inventory. The D/E ratio also improved significantly by 29 points from the year-earlier period to 113%.

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.