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Toshiba Announces Basic Strategies for the Period to FY2006

9 April, 2004


TOKYO -- Toshiba Corporation today announced key corporate goals for the period to the end of FY2006 and a set of major initiatives that the Company will implement in support of the basic strategic direction defined in its March 2003 mid-term business plan.

Key Elements

In its mid-term business plan for the period FY2003-2005, which the Company announced in March 2003, Toshiba defined three major business domains: Digital Products, Electronic Devices and Social Infrastructure. The Company’s latest measures build on this delineation, and aim to establish digital products strategies for the ubiquitous network society.

1) In Digital Products businesses, Toshiba will promote proactive collaboration with Electronic Devices operations, with the goal of reinforcing its visual products business and establishing it as a major source of profits by 2006 alongside the PC business. Toshiba intends to attain this goal by taking full advantage of its core technologies in visual and imaging products, data storage and electronic devices.
   
2) In Electronic Devices businesses, the Company will continue to devote substantial management resources to further sharpening its competitiveness, and enhance collaboration with Digital Products operations.
   
3) In Social Infrastructure businesses, the Company will actively seek business opportunities in China, Southeast Asia and new business areas, and in Europe and North America will expand the scale of rehabilitation businesses to enhance the efficiency of power plants.
   
4) The Company has identified a total of 93 strategic technologies and products that will drive future profits, and defined a strategic product map that will support the timely introduction of successive products.

Goals in FY2006

  • Consolidated sales: 6,200 billion yen
  • Operating income: 280 billion yen
  • Debt/equity ratio: 100% at the end of March 2007.
  • Capital expenditure: 1 trillion yen over three years largely on Digital Products and Electronic Devices fields.
  • R&D expenditure: 1.1 trillion yen over three years. A major emphasis will be placed on collaboration between Digital Products and Electronic Devices fields.
  • Overseas sales ratio: 50% of total sales. Expansion of business in China will be a driving force.


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.

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