Toshiba 1998 Annual Report Download - page 24

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22. Toshiba Corporation Annual Report 1998
In th e real estate business, Toshiba continued to face
challen ges posed by declin ing ren tal rates an d sales
prices in Japan. Two cen tral th emes of the past year
were raising occupancy rates at large office buildin gs
an d participating in th e developm en t of n ew buildings.
Fin ancial services encom pass tran sactions in a variety
of forms in Japan, in cluding in stallm ent sales of consum er
an d oth er products, leasing, an d credit assuran ce. In
fiscal 1997, finan cing for con sum er products was weak,
but there was a rise in dem and for fin ance related to PCs
an d oth er types of in form ation an d com m unication s
equipm en t. To differen tiate leasin g services, Toshiba
focused on the developm ent of n ew products outside the
field of office equipm en t. This policy is beh ind ongoing
work with Toshiba’s power systems division s durin g the
past fiscal year in leasing in -h ouse power gen eration
system s, a m arket wh ere dem and is projected to grow.
Following th e March 1998 termination of an agreem ent
between Tosh iba Credit Corp. and Nippon Sh in pan Co.,
Ltd., Toshiba Credit is poised to offer new services as a
wholly own ed subsidiary of Tosh iba.
As dem and for strategic logistics rises, Toshiba is
improvin g the efficiency and in ternation al reach of its
own logistics services. A regional m an agem en t system
introduced in April 1997 led to h igher productivity. In
Japan, the prim ary goal is expan ding general services
for customers outside the Toshiba Group. Seven offices
th roughout th e n ation provide a solid foun dation for
stren gthening sales capabilities. Bolstering in ternation al
services is anoth er objective. Overseas bases are steadily
extending th eir scope of knowledge. In th e Ph ilippin es,
for exam ple, services cover export-related m atters for
semiconductors and oth er products of Tosh iba In form a-
tion Equipm en t (Ph ilippin es), Inc.
RESULTS
Operations in this segment mainly represent financial services, real estate leasing and
sales, and logistics. These and other service-related activities of the Toshiba Group
generated net sales of ¥420.0 billion, 12.9 percent more
than one year earlier.
Services & Other
98
97
96
420.0
372.0
302.3
March
12.9
23.1
14.6
Sales (¥ billion)
TOPICS
Complementing the quality of Toshiba’s
products, Toshiba Logistics offers a com-
prehensive line of transportation and
installation services. Activities extend
even to such massive projects as power
generation equipment.
Sales Annual Increase (%)
Notes: 1. See segment information on page 29.
2. Segment sales include intersegment transactions.
Share of Net Sales %
Mar. ’96 ’97 ’98
5.3 6.1 6.9