Toshiba 2004 Annual Report Download - page 42

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Consolidated R&D expenditures totaled ¥336.7 billion (US$3,177 million), a 2% increase
compared with the previous fiscal year. This was equivalent to 6% of consolidated sales,
virtually unchanged from fiscal 2002. Principal R&D expenditures and achievements by
segment were as follows.
R&D expenditures in the digital products segment totaled ¥94.7 billion (US$893 million)
and included the development of the 0.85-inch HDD; an HD DVD system utilizing a blue-violet
semiconductor laser; a palm-sized fuel cell compatible with mobile devices; a multi-drive HDD
& DVD compatible with the RAM and RW standards; a 3-D display system supporting natural
moving images; a physical distribution system based on the RFID tag (a non-contact IC tag);
and the beautiful “ face™” lineup of large flat-panel TVs with the magic square algorithms.
In the electronic devices segment, R&D expenditures totaled ¥156.9 billion (US$1,480
million) and were directed to commercialization of an MPEG4 video image processing LSI
supporting high-grade graphics; development of the world’s fastest 512MB XDR™ DRAM, which
supports a 3.2GHz data transfer rate; low power consumption 65nm generation CMOS
transistors with high dielectric constant materials; multilayer technologies for a nine-layer MCP;
0.7nm single crystal thin-film transistors, the finest yet achieved; and an LCD panel with an
integrated scanner function.
In social infrastructure, R&D expenditures totaled ¥62.2 billion (US$587 million) and were
directed to the development of laser-based preventive maintenance and repair technologies for
nuclear power plant control rod drive mechanisms; FacePass™, a new facial recognition security
system; electricity transaction solutions; a vehicle mounted image recognition system with an
electronic image recognition LSI (Visconti™); quantum cipher communication over 100km of
fiber-optic cable; the Aquilion™ CT scanner, able to scan 16 shots in 1 pass; and motor drive
systems for hybrid automobiles.
R&D expenditures in the home appliances segment totaled ¥18.4 billion (US$174 million)
and included the commercialization of the comfortable NDR series of home air conditioners that
set the industry benchmark for energy-saving performance; a top-loading washing machine with
digital signal processor (DSP) inverter control; development of a home air conditioner
compatible with Bluetooth™ and ECHONET standards; and improvements of the CFC-free
refrigerator lineup.
In the others segment, R&D expenditures totaled ¥4.5 billion (US$43 million) and included
programs currently underway at Toshiba Electric Appliances Co., Ltd.
Toshiba Group follows a basic strategy of focusing management resources on growth areas.
Capital expenditures, including investments in intangible fixed assets, amounted to ¥254.7
billion (US$2,403 million) and were primarily directed to the electronic devices segment.
Capital expenditures in the electronic devices segment totaled ¥136.2 billion (US$1,285
million), and included facilities for the development and production of semiconductors and to
raise production of LCDs. Principal facilities completed in the course of fiscal 2003 were
facilities for the manufacture of advanced system LSIs at Oita Operations, NAND flash memory
production facilities at Yokkaichi Operations, and cutting-edge LSI development facilities at
Yokohama Operations. Facilities still under construction include system LSI manufacturing
facilities at Oita Operations, NAND flash memory facilities at Yokkaichi Operations, and low-
temperature polysilicon LCD production facilities at Toshiba Matsushita Display Technology Co.,
Ltd.
In digital products, capital expenditures totaled ¥48.6 billion (US$458 million) and were
channeled into the development and manufacturing of new products, such as PCs and mobile
phones.
In social infrastructure, capital expenditures totaled ¥27.6 billion (US$261 million) and
were directed to system development and infrastructure improvement.
Capital expenditures in the home appliances segment totaled ¥19.3 billion (US$182
million) and included the development and production of new products.
Capital expenditures in the others segment totaled ¥23.0 billion (US$217 million).
As of March 31, 2004, total assets amounted to ¥4,462.2 billion (US$42,096 million), a
decrease of ¥776.7 billion from the previous fiscal year-end, reflecting the transfer of Toshiba
Finance Corporation and Shibaura Mechatronics Corporation into equity method affiliates.
Current assets declined ¥268.8 billion year on year, to ¥2,352.4 billion (US$22,193 million).
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