Toshiba 2009 Annual Report Download - page 11

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9
1. Restructuring of Businesses Most Affected by the Severe Downturn
Semiconductor business
Continue focused investment in our key NAND flash memory business
Promote a flexible production structure for discrete and system LSI products by reorganizing assembly facilities
in Japan and shifting production to overseas operations with lower operating costs
LCD business
Concentrate resources on high-value-added products
Home Appliances business
Reorganize manufacturing facilities and consolidate R&D functions in Japan
Digital Products business
Accelerate business expansion in emerging countries and enhance cost-competitiveness by reshaping manufacturing
2. Execute Toshiba Group-wide Actions to Strengthen Business Structure
Comprehensive reduction of fixed costs:
Original target: cut fixed costs to ¥300 billion below FY2008 level --- Stretch target is ¥330 billion plus
Comprehensive reduction of total fixed costs by more rigorous selection of R&D themes, prudently curtailing
capital expenditure, consolidation of facilities and adjusting personnel costs. Channel major resources into
developing promising growth businesses in such areas as environment, energy and data storage.
Measures to generate profit
Strengthen cost competitiveness through cost reduction
Expand businesses outside Japan
3. Accelerate Strategic Allocation of Resources to Growth Businesses
Shift managerial resources to Social Infrastructure business segment
Focus on new businesses for a new economic era
CCS (Carbon dioxide Capture and Storage) Solar photovoltaic systems Smart grid
Innovative SCiBTM rechargeable battery Direct methanol fuel cell New lighting systems
Next-generation network devices Storage
Vital public facilities and Healthcare
Complete Full Implementation of “Action Programs to Improve Profitability”
Return to profitability
Business environment deteriorated rapidly in FY2008
Business environment remains severe in FY2009
Implement strategic policies to generate profit, even if the level of sales is not increasing
Build a strong business foundation that can quickly seize business opportunities when the market recovers
Improve financial position by procuring funds
¥319.2 billion public offering for the purpose of capital expenditure, mainly for
strategic investments
Issue of ¥180.0 billion in unsecured, interest deferrable and early redeemable
subordinated bonds