The Fundamentals

  1. Making full use of IT to deliver value-added products and services.
    Progress in digital technology--the fusion of information, communications and visual imaging, the diffusion of the Internet--is fueling an IT revolution that is sweeping through society. Its force can be felt in industry, the home, in virtually every sphere of life, as it transforms lifestyles and the ways in which people do business, entertain themselves, and interact with one another.

    In this revolution, Toshiba has identified mobile applications and networking as essential areas. The company is now fusing its market-defining IT products--portable PCs, cellular phones, and mobile AV equipment, and semiconductors and LCDs--with customer-driven solutions as a means to offer breakthrough products and services that support social development and the company's sustained growth.

  2. Advancing the in-house company system and establishing an inter-company value chain.
    In April 1999, Toshiba introduced an in-house company system. The eight companies it established--now nine with the recently announced iValue Creation Company--were given clear-cut responsibilities and the management autonomy required to put in place business systems and procedures that would make them winners in the global marketplace. The new mid-term plan is the first under this system and integrates each company's vision and strategies with the powerful lead provided by Toshiba's corporate management.

    A central element of the plan is that the in-house companies responsible for products, components, systems and services related to the mobile and network business field will promote strategic cooperation in a synergetic inter-company value chain designed to identify enhanced business opportunities and promote dynamic growth initiatives.

  3. Enhancing Corporate Value and Corporate Governance
    The new mid-term plan fully embraces Toshiba's resolve to be recognized by its customers worldwide as an excellent and valued company. It also underlines the importance of securing consistent growth and thereby enhancing corporate value. Under the in-house company system Toshiba emphasizes cash flow management, ROE and ROI as key parameters for gauging performance. These yardsticks of value creation and profitability exceeding the value of investments are already producing results, in the form of a positive free cash flow of over 100 billion yen during FY1999.

    Under the new plan, Toshiba will continue to enhance its management performance, and also seek improved efficiency in its asset and financial management. Through this approach, and as a transparent, open company that supports full disclosure, Toshiba will seek to win the favorable evaluation of its stakeholders, including customers, shareholders, employees and the community.


Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.