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Notice on Consolidation of an Affiliated Company

20 Sep, 2011

TOKYO—Toshiba Corporation (TOKYO: 6502) has signed a Memorandum of Understanding (MoU) with IBJ Leasing Co., Ltd. and Toshiba Finance Corporation, an affiliate of Toshiba Corporation, concerning the transfer to IBJ Leasing Co., Ltd. of the corporate financial services business of Toshiba Finance Corporation.

Also, Toshiba's Board of Directors, meeting today, has decided to increase its holding in Toshiba Finance Corporation, the corporate entity that will remain after the transfer of the corporate financial services business, which will continue to operate under the same name, and to make it a consolidated subsidiary. Toshiba Corporation expects to complete all of these arrangements in the period up to the end of March 2012.

1. Steps and Background

Today, Toshiba Corporation, Toshiba Finance Corporation, and IBJ Leasing Co., Ltd. agreed to form a new company that will be set up by spinning off the corporate financial services business of Toshiba Finance Corporation and making it a consolidated subsidiary of IBJ Leasing Co., Ltd. In parallel with this, Toshiba has decided to acquire the shares of Toshiba Finance Corporation that are currently held by IBJ Leasing Co., Ltd. After completion of these arrangements, Toshiba Finance Corporation will become a consolidated subsidiary of Toshiba Corporation. Toshiba Finance Corporation will focus on consumer credit services, including loans for major purchases, such as automobiles.

In order to establish a robust managerial structure able to achieve a stable profit even in a severe business environment, Toshiba Corporation will promote business restructuring and channel resources to growth businesses.

2. Impact on Toshiba Corporation's business performance

We are currently assessing the possible impact of this reorganization on Toshiba Corporation’s consolidated business performance for FY2011. Any impact is expected to be minimal.

Overview of Toshiba Finance Corporation (as of Sept.20, 2011)

(1)Company name: Toshiba Finance Corporation
(2)Paid-in Capital: 39.1 million yen
(3)Ratio of ownership: Toshiba Corporation (35%)
IBJ Leasing Co., Ltd. (20%)
The Dai-ichi Life Insurance Company, Ltd. (9.0%)
Mitsui Sumitomo Insurance Co., Ltd. (8.0%)
NIPPONKOA Insurance Co., Ltd. (8.0%)
(4) President and CEO: Yoshiaki Haraoka
(5)Head Office address: 3-6-6, Osaki, Shinagawa-ku, Tokyo
(6) Number of employees: 885 (as of March 31, 2011)
(7) Lines of Business: Credit sales, credit guarantees, mediation of credit sales, general leasing business, security affairs, credit purchases, alternate processing of bill collection and payment.

Note:
The interest bearing debt of Toshiba Finance Corporation, after the corporate financing service will be spun off, is expected to be 74,481 million yen. This figure is calculated based on non-consolidated financial statements of Toshiba Finance Corporation at the time of end of March 2011, and it does not reflect the changes that occurred in during this fiscal year.
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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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