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CEO Commitment

We will make every effort to revitalize Toshiba and recover stakeholder trust. Director, President and CEO M. Muromachi

I would like to open this message by expressing my sincerest apologies for any concern or inconvenience caused due to the inappropriate accounting issue at Toshiba.

Following delays due to the inappropriate accounting issue, we submitted our FY2014 Annual Securities Report on September 7, 2015. At the end of the same month, our new management team was launched following the approval by our shareholders at the extraordinary general meeting. Based on this, we are now able to present to you our annual report for FY2014, and apologize for the delay in its publication.

Toshiba deeply regrets betraying the trust of our shareholders and all other stakeholders and for causing confusion in the market due to the inappropriate accounting issue. We have received numerous stern opinions and criticisms from our stakeholders. We take such reproaches seriously, and under the new management team we will continue to reform our corporate governance. In tandem with this, we are also working to redefine our corporate culture, including changing the mindset of top management, so as to ensure that our reformed corporate governance system functions properly. In addition, we will also examine all possibilities in taking decisive action on certain businesses whose performance is recognized as an issue for management.

Our net income for FY2014 was negative ¥37.8 billion, due in part to the effects of factors such as reversal of deferred tax assets due to tax reforms. In addition, we inform you again with sincerest apologies that we have regretfully decided not to pay a dividend in respect of FY2014 earnings or a dividend with a September 30, 2015 date of record, in light of factors such as the business environment and the financial situation.

Toshiba also received notices from the Tokyo Stock Exchange and Nagoya Stock Exchange to the effect that they had designated our shares as “Securities on Alert” as of September 15, 2015, due to their finding that there are serious issues in the internal control systems and the like of Toshiba and that improvement in these areas is highly necessary. We take the “Securities on Alert” designation, which is a measure proportional to delisting, very seriously, and with advice from the relevant authorities, all members of Toshiba will strive together as one to make every effort towards the designation being removed.

It is with great shame that Toshiba recognizes the immense blemish that the accounting issue has left on our 140 year history. The resilience of Toshiba during our long history to overcome multiple difficulties and crises and continue to survive to this day as a corporation that contributes to society through technology and quality is due none other than to the high regard and support shown to us by our shareholders and other stakeholders. We are acutely aware that our actions have severely undermined the confidence in Toshiba cultivated by our predecessors, and must all reflect deeply on this.

The management philosophy of the Toshiba Group is: “We, the Toshiba Group companies, based on our total commitment to people and to the future, are determined to help create a higher quality of life for all people, and to do our part to help ensure that progress continues within the world community.” That commitment will remain unchanged under the new management team. We will engage in CSR management that contributes to society through business activities that place top priority on human life, safety and compliance, and are committed to making every effort to revitalize Toshiba as a company that enjoys the trust of all stakeholders. I humbly request your ongoing support.

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