Toshiba 2004 Annual Report Download - page 7

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5
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SED TVs, 0.85-inch HDD, etc.
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CELL, Fuel cells, etc.
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Hydrogen production systems, etc.
Digital Products
Electronic Devices
Social Infrastructure
Strategic Products
Strategic Products and Technologies that will Drive Future Growth
¥800 billion. Among the most successful of our corporate initiatives was our drive to reduce procurement costs
by 20%, which we achieved a full year ahead of schedule.
We will continue to apply the lessons we learned during the course of the 01 Action Plan in our strategic
planning.
THE NEW MID-TERM BUSINESS PLAN
As fiscal 2003 progressed, we carefully considered the market and realized we had to revise our targets in light
of the rapid changes in our business environment. As a result, we forged a new mid-term business plan for fiscal
2004 through fiscal 2006, which is outlined in depth in the “Profitable Growth” section of this report. There are
four essential elements in the new plan.
1) In the digital products business, we will promote proactive collaboration with the electronic devices business,
with the goal of reinforcing the visual imaging business and establishing it as a major source of profits by
2006, alongside the portable PC business.
2) In the electronic devices business, we will continue to devote substantial management resources to further
sharpening competitiveness, and enhancing collaboration with the digital products business.
3) In the social infrastructure business, we will actively seek business opportunities in China, Southeast Asia
and in new business areas, while expanding the scale of our power plant rehabilitation businesses in Europe
and North America.
4) We have identified strategic products and technologies that will drive future profits, and defined a strategic
product map that will support the timely introductions of products.
Successful deployment of these strategies will allow us to advance further in our strong businesses and to press
forward with efforts to restore profitability to underperforming businesses. They will also assure that we have the
engines of growth we need for sustained profit. Based on our reading of the market and of the potential of these
strategies, we have set clear targets for fiscal 2006, the final year of the plan: consolidated net sales of ¥6,200
billion, operating income of ¥280 billion, and return on equity (ROE) of greater than 10%. We also will strive to
improve our financial position and to lower the debt-to-equity ratio to 100%.
TOSHIBA’S CORPORATE CULTURE
As we promote management reforms that enhance corporate governance and transparency, we are strongly aware
of the importance of an appropriate corporate culture. This culture must permeate every aspect of our business
and our operations around the globe, and assure that we are proactive toward the market, respect our social
Left: Taizo Nishimuro,
Chairman of the Board
Right: Tadashi Okamura,
Director, President and Chief Executive Officer