25 April 2003
FOR IMMEDIATE RELEASE
April 25, 2003
Toshiba Announces Consolidated and Non-Consolidated Results
for Fiscal Year Ended March 2003
TOKYO--Toshiba Corporation today announced its consolidated and non-consolidated
results for the fiscal year (FY) ended March 2003.
1) General Overview of Fiscal Year 2002
Although the year opened with partial signs of a bottoming out of the Japanese
economy, the overall business environment remained challenging throughout
FY2002. Stock markets in the US and Japan remained bearish, global recession
lingered, corporate capital expenditure failed to make a positive recovery, and
domestic consumption stayed feeble. Despite all this, Toshiba's sales and profit
in FY2002 both recorded gains over FY2001.
Consolidated sales climbed 5% year-on-year to 5,655.8 billion yen (US$47,131
million). Income before taxes reached 53.1 billion yen (US$443 million), an
improvement of 429.8 billion yen over FY2001. Net income of 18.5 billion yen
(US$154 million) marked a return to the black and a gain of 272.5 billion yen
over the previous term.
Sales of semiconductors and other electronic components recorded strong
advances, sustained by rising demand for digital consumer products and growth in
Asia. Overseas sales of portable PCs also saw large gains. Systems for public
institutions and industrial equipment saw sales decline on sluggish domestic
capital investment in the private and public sectors, and sales of home
appliances were undermined by price erosion and weak consumer demand in Japan.
Operating income was 115.5 billion yen (US$963 million), a 229.1 billion yen
improvement over FY2001. A substantial recovery was seen in semiconductor
operations, supported by growth in sales volume and extensive restructuring in
the preceding year. Implementation of the Toshiba-wide '01 Action Plan' bore
fruit in reinforced business structures that helped operating profits to rebound
and assured that all business segments ended the year in the black.
FY2002 was free of the major restructuring cost incurred in FY2001, supporting
non-operating profits in making a significant recovery.
Non-consolidated results also saw steady recovery. Total sales increased 7%
year-on-year to 3,408.2 billion yen (US$28,402 million). Recurring profit was
43.3 billion yen (US$361 million), an improvement of 275.2 billion yen over
Net income after taxes was 83.3 billion yen (US$694 million), up by 343.7
billion yen against the previous year. This result reflected an extraordinary
gain of 108.8 billion yen from the transfer of the Toshiba employees' pension
fund to the government, and the absence of any large restructuring cost,
compared with an extraordinary loss of 146.4 billion yen posted in FY2001.
2) FY2002 Breakdown by Industry Segment
Sales Change Operating Change
Information & 908.7 95% 10.4 +0.7
Social Infrastructure Systems 922.8 97% 20.7 +7.1
Power Systems 523.7 90% 21.6 -5.2
Digital Media 1,658.1 113% 9.3 +24.2
Home Appliances 660.7 97% 3.5 -7.9
Electronic Devices & 1,296.0 121% 30.5 +206.8
Others 431.4 101% 18.6 +3.3
Elimination -745.6 - 0.9 -
Total 5,655.8 105% 115.5 +229.1
Information & Communications Systems
Information systems for the financial and manufacturing sectors and
telecommunications systems for public institutions showed a sales decline, but
restructuring and efforts to improve profit margins when taking orders led a
Social Infrastructure Systems
Medical diagnostic systems and elevators and escalators made progress. Systems
for public institutions declined. Profit improved thanks to continuous
restructuring and efforts to reduce costs.
Factors behind sales declines included transfer of the power transmission and
distribution systems businesses to a joint venture operation and a decline in
capital expenditure by domestic power generation companies.
Both sales and income rose, as portable PCs for the overseas market, PC
peripherals, HDD/DVD recorders and other visual products, and cellular phones
for Japanese carriers all recorded positive growth.
Sales prices continued to decline as domestic consumption slumped.
Electronic Devices & Components
Sales climbed on demand for LCDs, semiconductors for digital consumer products
and NAND flash memories. Operating income represented a significant gain over
FY2001, a result reflecting sales growth and effective restructuring efforts.
Sales and operating income both improved.
3) Projection for FY2003
We expect corporate capital expenditure to remain subdued in the first half of
FY2003, with uncertain prospects of the US and Japanese economies. The second
half may finally see the transition to a new phase of growth and some
improvement in economic conditions.
Toshiba will promote its major business domains: its high-growth businesses
digital products and electronic devices and components and its stable-growth
businesses in social infrastructure systems. The focus of capital investment and
R&D expenditure will be on high-growth business fields.
Consolidated projections for the fiscal year to March 2004 indicate an increase
in net sales to 5,700 billion yen (US$47,500 million), with operating income of
170 billion yen (US$1,417 million); net income before taxes of 90 billion yen
(US$750 million); and net income of 40 billion yen (US$333 million). PCs and
digital products such as visual products, semiconductors and LCDs and other
electronic devices are expected to see further gains. Sales projections reflect
sales decreases resulting from the transfer of some businesses to
non-consolidated operations. If the transferred businesses were included in the
consolidated forecast, anticipated sales growth would be 4% up on this year's
results. Positive cash flow is expected, with 100 billion yen available in cash.
Non-consolidated, parent-only projections for the fiscal year to March 2004
indicate an increase in net sales to 3,120 billion yen (US$26,000 million), with
recurring profit and net income of 70 billion yen (US$583 million) and 25
billion yen (US$208 million), respectively. Sales projections reflect an
expected sales decrease of about 440 billion yen that will result from the
transfer of some in-house company businesses from the parent company to group
subsidiaries. Among these are the e-solutions businesses, medical systems,
display devices and components, and home appliances. If these businesses were
included in the non-consolidated, parent-only forecast, anticipated sales growth
would be 5% up on this year's results..
Consolidated (billion yen)
FY2003 Forecast Change
Net sales 5,700 101%
Operating income 170 +54.5
Income before taxes 90 +36.9
Net income 40 +21.5
Non-Consolidated (billion yen)
FY2003 Forecast Change
Net sales 3,120 92%
Operating income 90 +54.8
Recurring profit 70 +26.6
Income before taxes 50 -83.6
Net income 25 -58.3
4) FY2003 Projection by Industry Segments
Segmentation for FY2003 was revised as follows, to reflect major organizational
changes that occurred in April 2003. The growth rate over FY2002 was calculated
based on the restated categories.
(Unit: billion yen)
Sales Operating Income
FY2003 Change (%) FY2003 Change
Digital Products 2,180 105 50 +25.2
Electronic Devices & Components 1,330 104 55 +23.1
Social Infrastructure Systems 1,740 95 42 +2.8
Home Appliances 650 103 8 +3.9
Others 510 104 15 -0.5
Elimination -710 - - -
Total 5,700 101 170 +54.5
Note: Breakdown of the new segments are:
Digital Products (Mobile Communications Company Digital Media Network
Company, Toshiba TEC Corporation)
Electronic Devices & Components (Semiconductor Company, components businesses
done under Display Devices & Components Control Center, Toshiba Matsushita
Display Technologies Group)
Social Infrastructure Systems (Industrial and Power Systems & Services Company,
Social Network & Infrastructure Systems Company, e-Solutions Company, Medical
Systems Company, Toshiba Elevator and Building Systems Group)
Home Appliances (Home Appliances Company, Toshiba Lighting & Technology
Corporation, Toshiba Carrier Group, Toshiba Battery Group)
Growth in PCs and visual equipment, leading to gains in sales and profits.
Electronic Devices & Components
Semiconductors for cellular phones such as NAND flash memory and MCP (multi-chip
packages) will see further demand growth, while steady increase is expected in
small LCDs, a key product.
Social Infrastructure Systems
Sales will decline due to the transfer of power transmission and distribution
systems and the industrial electronic systems businesses to joint ventures.
Expansion in overseas business and expansion of maintenance and service
businesses along with cost cutting efforts will improve profitability.
Introduction of high-value added products and business expansion in Asia will
help increase both sales and profits.
5) Exchange Rates
Projections for FY2003 are based on average exchange rates of 120 yen to the US
dollar and 125 yen to the Euro.
6) Projected Dividend
Toshiba cancelled its interim dividend, but plans to pay 3 yen per share for
full term dividend.
7) Financial Position - Cash Flows for FY2002
Toshiba has set cash flow as one of the company's important managerial
indicators, and has promoted strengthened cash flow since introduction of the
in-house company system. Cash flow from operating activities of 271.6 billion
yen (US$2,263 million) and cash flow from investment activities of minus 148.0
billion yen (minus US$1,233 million) produced a free cash flow of 123.6 billion
yen (US$1,030 million). Debt decreased to 1,653.4 billion yen (US$13,778
million), a reduction of 165.1 billion yen. Shareholders' equity decreased by
134.3 billion yen to 571.1 billion yen (US$ 4,759 million), caused by an
increase in the unrecognized net obligation related to pension programs.
Toshiba will reinforce cash flow management and achieve positive results.
# # #
Note: The U.S. dollar is valued at 120 yen throughout this statement for
convenience only. All dollar figures are approximate.
This information is provided by RNS
The company news service from the London Stock Exchange