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Presentations & Events

FY2014

- ended March 2015 (For 176th Fiscal Period)

Q1
Q2
Q3
Q4

Presentation for FY2014 Q1 Results

For 1st Quarter ended June, 2014 - July 31, 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 [823KB/29 pages]
Earnings Release
* Video no longer available. (Availability: Jul., 2014 - Oct., 2014)

Key Points of the presentation

Toshiba Group recorded higher sales than in the year-earlier period, reflecting growth mainly in the Energy & Infrastructure and Community Solutions segments.

Net Sales	1,408.0 billion yen	(YoY: +36.9 billion yen)

Social infrastructure related businesses recorded significant growth. The Energy & Infrastructure segment saw higher sales, reflecting good performances in social infrastructure businesses, including Solar Photovoltaic Systems and Railroad Systems, as well as the steady performance of the Power Systems business. The Community Solutions segment also recorded higher sales on good performances by the building solutions business and Toshiba TEC Corporation.
The Electronic Devices & Components segment saw lower sales, reflecting lower sales price in Memories.
The Lifestyle Products & Services segment saw slightly higher sales, reflecting replacement demand for Windows XP PCs.

Record 1Q operating income of 39.5 billion yen, a 57% increase.

Operating income	39.5 billion yen	(YoY: +14.4 billion yen)
Income before income taxes and noncontrolling interest	17.3 billion yen	(YoY: -1.1 billion yen)
Net income	8.9 billion yen	(YoY: +3.6 billion yen)

The Electronic Devices & Components segment recorded operating income of 36.6 billion yen. The Memories business maintained high profitability despite lower sales prices, reflecting enhanced competitiveness on advances in process technology. The Storage Products business saw higher operating income, especially in 3.5-inch HDDs.
The Energy & Infrastructure segment recorded higher operating income, reflecting higher operating income in the Solar Photovoltaic Systems, Railroad Systems and Nuclear Power Systems businesses. The Community Solutions segment also recorded higher operating income, reflecting higher operating income in the Commercial Air-Conditioner business and at Toshiba TEC.
The Lifestyle Products & Services segment saw a significant increase in operating income of 21.6 billion yen. The Home Appliances business has now maintained positive operating income for three consecutive quarters, and the PC business also recorded positive operating income. The TV business saw a significant improvement.
Net income (loss) attributable to shareholders of the Company increased by 69% to 8.9 billion yen, second only to FY 2007 1Q.

The debt-to-equity ratio was 120%, a YoY improvement of 13 points.

*YoY: year-on-year comparison

Q & A

Q1. Please explain the main points of the FY2014 first quarter consolidated results.: Sales increased by +36.9 billion yen from the year-earlier period, primarily reflecting growth in the Energy & Infrastructure and Community Solutions segments. The Energy & Infrastructure segment saw higher sales, reflecting good performances in social infrastructure businesses, including Solar Photovoltaic Systems and Railroad Systems, as well as the steady performance of the Power Systems business. The Community Solutions segment also recorded higher sales on good performances by the building solutions business and Toshiba TEC Corporation.
Operating income of 39.5 billion yen was the highest ever and an increase of 57% against the year-earlier period. In the Electronic Devices & Components segment, NAND flash memory business maintained high profitability. The Energy & Infrastructure segment recorded higher operating income, reflecting higher operating income in the Solar Photovoltaic Systems, Railroad Systems and Nuclear Power Systems businesses. The Community Solutions segment also recorded higher operating income, reflecting higher operating income in the Commercial Air-Conditioner business and at Toshiba TEC. The Lifestyle Products & Services segment saw a significant increase in operating income of 21.6 billion yen.
Q2. Please tell us about the FY2014 first quarter business results in the Energy & Infrastructure segment.: The segment as a whole saw higher sales on good performances in renewable energy businesses, including Solar Photovoltaic Systems, and in the overseas Railroad Systems, Automotive Systems and Industrial Equipment businesses. We also saw steady performances in the power systems businesses including Thermal and Nuclear Power Systems. Higher operating income reflected a significant increase in the overseas Railroad Systems business and in the Solar Photovoltaic Systems and Nuclear Power Systems businesses. The Thermal Power Systems business also maintained high profitability.
Q3. Please tell us about the FY2014 first quarter business results in the Community Solutions segment.: The segment as a whole saw higher sales. Solar Photovoltaic Systems and Disaster Prevention Systems for local governments saw steady sales, as did building solutions, such as Elevators and Building Systems and Commercial Air-Conditioners. Overseas sales increased, and Toshiba TEC also recorded higher sales. Higher segment operating income reflected good performances in Solar Photovoltaic Systems and Disaster Prevention Systems for local governments and building solutions businesses. Overseas Commercial Air-Conditioners business saw higher operating income, as did Toshiba TEC.
Q4. Please tell us about the FY2014 first quarter business results in the Healthcare Systems & Services segment.: The segment as a whole saw lower sales. In Japan, equipment sales, especially of X-ray and ultrasound diagnostic systems, declined as the result of higher demand in the previous quarter prior to an increase in the consumption tax, while sales in the U.S. and Europe were impacted by policies to curb total spending on medical care. Lower operating income reflected lower equipment sales, despite stable performance in the domestic and overseas service sectors.
Q5. Please tell us about the FY2014 first quarter business results in the Electronic Devices & Components segment.: The segment as a whole saw lower sales. Sales in the NAND flash memory business were lower due to controlled production and sales in response to market trends and lower sales prices. The Storage Products business, notably 3.5-inch HDDs, recorded higher sales. The segment as a whole saw lower operating income, but still at a high level. The NAND flash memory business retained high profitability, despite lower sales prices, reflecting enhanced competitiveness on advances in process technology. The Storage Products business saw higher operating income, and the Discrete and System LSIs businesses saw a significant improvement.
Q6. Please tell us about the FY2014 first quarter business results in the Lifestyle Products & Services segment.: The PC business saw positive operating income in the FY2014 first quarter. The operating loss of the TV business decreased significantly as a result of restructuring implemented last fiscal year. The business environment remains severe, and additional measures will be taken to ensure stable profitability, regardless of the amount of sales. The Home Appliances business has maintained positive operating income for three consecutive quarters since the FY2013 third quarter, showing a profitable trend.
Q7. Please tell us about further structural reforms of visual products business.: Last year’s measures have won improvements and taken the business toward profitability. The latest round will concentrate resources on growth markets, as a means to secure stable profit at a higher level. The business will now focus on Japan, where growth in demand for large size Ultra HD (4K) LCD TVs is anticipated, and on high growth emerging markets. Sales sites in low profit countries and regions will be optimized, from 24 to 12 sites around the world, by the first half of FY2015. This move will also reduce the visual products business’s global workforce by about 25%, excluding the manufacturing operation which has already reduced its headcount, and is expected to cut fixed costs by a further 10 billion yen against the FY2014 level.
Q8. Please give us your forecasts for FY2014's first half and full-year results.: We are not changing our results forecast for the first half and full fiscal year. We have set the forecast as our minimum target and aim to achieve further improvement, because the Energy & Infrastructure and Community Solutions segments are continuing healthy performances and the NAND flash memory business in the Electronic Devices & Components segment is expected to retain high profitability.

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