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Presentations & Events

FY2013

- ended March 2014

Medium-Term Strategies for Future Growth through Creativity and Innovation (FY2013-2015)

- August 7, 2013

Q & A

Q1. Could you explain the scope of the Healthcare business that you have positioned as a new pillar of business?
The healthcare market is about to enter a period of enormous change because of such crucial healthcare challenges to society as population increase on a global scale, growth in social welfare spending due to aging of the population, chronic shortages in both the quality and quantity of healthcare providers and caretakers, and increased needs for sophisticated and effective medical diagnostic and treatment systems. Toshiba Group continues to have a dominant No. 1 share in Japan's imaging diagnostic systems market along with a top-level share in the worldwide market.
Going forward, we will expand into new business areas in healthcare that are centered on disease prevention and optimizing diagnoses and treatments of patients. These new transformational diagnostic and treatment methods go far beyond conventional approaches to imaging. This new healthcare business area will have the main objective of contributing to the social goal of better controlling spiraling healthcare costs by preventing diseases and providing more effective modes of treatment. Expanding healthcare demand is expected not only in the developed countries but also in the emerging economies. We are heading toward a new age in healthcare that will improve overall healthcare by using cloud technology and sensing data collection technologies to provide easy access to patients' electronic medical records such as their treatment history combined with their daily personal health records (PHR). This new direction in medical electronics will give birth to strong new healthcare businesses related to Big Data analytics and cloud creation services. New healthcare business opportunities are also emerging based on biotechnology fields. We will work to develop new approaches to patient care and health management with a focus on helping to provide better total lifetime healthcare.
Moreover, presently in the Toshiba Group, various businesses related to the medical field such as carbon ion radiotherapy systems, in-vitro diagnostic equipment, DNA chips, and hospital ICT (Information and Communication Technologies) systems are being developed by different business organizations within the Group.
We have set up a new organizational structure for healthcare businesses to provide solutions for increasingly diverse customers' needs. Accordingly, in FY2015, we plan to achieve net sales of ¥600 billion for our healthcare business.
Q2. Please explain your Energy business strategies.
The big issues posed for society by the worldwide expansion in demand for energy and the need to consider the global environment, particularly the need to reduce greenhouse-gas emissions, are in some sense in conflict with each other. Toshiba Group is accepting the challenge to work toward solutions of these difficult issues by means of developing and commercializing high-efficiency, low-carbon-emission baseload power technologies that contribute to protecting the global environment.
In thermal power generation, we achieved the world's highest-level high-efficiency, low-emission combined cycle power generating system. With regard to coal-fi red thermal power plants, we have developed the high efficiency Advanced Ultra-Supercritical (A-USC) power generation system, and at the same time, we plan to expand EPC (Engineering, Procurement and Construction) sales from our India production base to emerging economies where demand is growing rapidly for stable electric power supply. In addition to the types of clean renewable energy power-generation systems we are currently offering, including hydroelectric (Japan's No. 1 share*1), geothermal (world's No. 1 share*2) and photovoltaic (Japan's No. 1 share*3) power plants, we are also focusing on the development of renewable types of power generation that are still not widely in use such as small hydro and wind farms. In FY2015, we plan to achieve net sales of ¥350 billion for thermal power generation and sales of ¥200 billion for clean energy power generation.
With regard to our nuclear power business in Japan, reflecting our compliance with the new nuclear safety regulatory standards, we will further improve the safety of nuclear power generation as a low-carbon-emission baseline power source. We will continue to support the maintenance of safety and the dismantling of the Fukushima No.1 Nuclear Power Station. Outside of Japan, we will continue to steadily go forward with the construction of 8 AP1000 nuclear power units ordered in the U.S. and China. In addition, based on the extensive technologies and know-how we have acquired, we would like to contribute to providing solutions to the world's need for stable supply of energy and its need to reduce greenhouse-gas emissions by proposing and supplying the world's highest-level nuclear power plants that incorporate many new measures for further improving safety. The FY2015 net sales target for our nuclear power business is ¥630 billion.
The practical implementation of Smart Grids to more efficiently manage power generation, transmission and distribution and electricity consumption and help reduce the total level of carbon emissions is already a growing reality in many countries around the world.
We will globally expand our transmission and distribution business by focusing on the emerging economies. We will expand the core Smart Grid technologies within Toshiba Group by such means as deepening our coordination with Landis + Gyr AG – a world-leading Smart Meter company – to expand the usage of Smart Meters to gas, water and heat, and we are acquiring companies like Consert and cyberGRID that possess leading-edge technologies necessary to provide intelligent solutions for Smart Grid deployment such as demand-response technologies. These will add a new level of technology to our Smart Community business.
Going forward, we will offer products and solutions that are in line with the wide and growing worldwide demand for Smart Grid technology to implement advanced energy management systems. The net sales targeted in FY2015 for our Transmission and Distribution/Smart Grid and Smart Meter business are set at ¥700 billion.
  • *1: In terms of the total capacity of outstanding orders for ≥10MW water mills (as of August 2012 as researched by Toshiba)
  • *2: In terms of the total capacity of geothermal turbines delivered (Bloomberg Geothermal Market Outlook 2011 3Q)
  • *3: Mega-solar systems for electric power companies (as of Japanese 2013 as researched by Toshiba)
Q3. Please explain your Data Storage business strategies?

Along with the impressive evolution of data storage systems, the volume of information has continued to increase explosively, and in the storage device business it is necessary to develop products that have faster speed and higher capacity. Toshiba Group is the only one company in the world that can propose both NAND flash memory that is suitable for high-speed processing and HDDs (hard disk drives) that are suitable for higher data capacity needs, as well as also offering hybrid drives (NAND+HDD) that satisfy both needs.
In August, we began construction of the second phase of the Fab 5 building at our Yokkaichi Operations in Japan where NAND flash memories are being manufactured. At this new facility, which is scheduled for completion next summer, we will secure production space for next-generation 3D memory, and at the same time we will continue to develop and apply our leading-edge process technologies. In this way, we will strength our competitive power in these business areas. We place utmost importance on enhancing cost competitiveness and improving profitability, and while carefully watching market changes, we will flexibly and efficiently make investment decisions.

In the future as well, we will strengthen our storage device business by establishing a stable and highly profitable structure and leveraging our technological strengths across product lines. We will utilize Toshiba's superior semiconductor device technology to deliver unique optimal storage solutions. In FY2015, we plan to achieve net sales in the Data Storage business of ¥1.4 trillion.
Q4. How do you position TV, PC and White Goods in Toshiba's business portfolio?
With regard to our TV, PC and White Goods businesses, we will implement further sharing of management resources and efficiencies by integrated them into one new business group, the Lifestyle Group. We aim to achieve sales of ¥1.3 trillion in FY2015.
In our TV business, for two consecutive years we recorded large deficits, and the market is rapidly changing in the PC business because of the shift to smartphones. In addition, the majority of our White Goods are now being manufactured outside of Japan, and the recent decline of the yen is pressuring profit margins. In view of this situation, we are already steadily executing various measures in our TV and PC businesses, such as reducing the number of platforms and shifting human resources to growing business areas. Going forward, with regard to the profit-making situation of any of our businesses, we will implement the necessary structural reforms and without setting aside any aspect of a business as being off-limits, we will review our manufacturing and sales systems, both in Japan and overseas. In addition, with regard to White Goods, we will assiduously put forth measures to cope with the recent depreciation of the yen. We will work to strengthen our businesses outside of Japan and carry out structural reforms aimed at improving profitability.
To turn Lifestyle-related businesses back into the black, we will transform our consumer goods businesses to B to B and Smart Community businesses. We will strengthen B to B by developing products and services that utilize security and mobility technologies, which are strengths of our company. We will also enhance our cloud solutions business and expand our solutions in each business category to meet each customer's needs, especially in the education and healthcare fields. In addition, in emerging economies, we will share management resources and functions among our TV, PC and White Goods businesses, including for sales, marketing and services. We will adopt unified design concepts and aggressively develop local-fi t products.
Toshiba Group has been applying various technologies that were originally created in our Digital Products business across conventional boundaries into other business areas. Examples are our glasses-free 3D technology's practical application in medical-use CT scanners (commercialized in September 2013) and for digital signage solutions (commercialized in August 2013), and we are shifting the use of image processing and recognition technologies to apply to on-board vehicle cameras and security cameras. In the future, technologies that the TV, PC and White Goods businesses possess such as energy-saving, environment conscious, security and intelligent wearable technologies and such know-how as making products that are thin, light, small and inexpensive will become a great strength for us when we try to differentiate our company from other companies in the social infrastructure and healthcare businesses and will help our efforts to strengthen our Smart Community businesses. We consider TVs, PCs and White Goods as important businesses for our future component technologies, and we plan to shift more resources into the B to B and Smart Community business areas.

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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.

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