Toshiba 2002 Annual Report Download - page 29

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TOSHIBA CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FIVE-YEAR SUMMARY
Toshiba Corporation and its subsidiaries
Years ended March 31
Millions of yen, except per share amounts
2003 2002 2001 2000 1999
Net sales ¥5,655,778 ¥5,394,033 ¥5,951,357 ¥5,749,372 ¥5,300,902
Cost of sales 4,146,460 4,070,130 4,323,525 4,254,444 3,890,622
Selling, general and administrative expenses 1,393,776 1,437,478 1,395,699 1,393,959 1,379,797
Operating income (loss) 115,542 (113,575) 232,133 100,969 30,483
Income (loss) before income
taxes and minority interest 53,123 (376,687) 188,099 (44,844) 11,218
Income taxes 48,532 (113,915) 96,145 (4,530) 20,901
Net income (loss) 18,503 (254,017) 96,168 (32,903) (9,095)
Per share of common stock:
Net income (loss)
—Basic ¥5.75 ¥(78.91) ¥29.88 ¥(10.22) ¥(2.83)
—Diluted 5.75 (78.91) 29.71 (10.22) (2.83)
Cash dividends 3.00 — 10.00 3.00 6.00
Total assets ¥5,238,936 ¥5,407,782 ¥5,724,564 ¥5,780,006 ¥6,101,929
Shareholders’ equity 571,064 705,314 1,047,925 1,060,099 1,128,753
Capital expenditures
(Property, plant and equipment) 230,512 348,235 269,545 298,512 375,464
Depreciation
(Property, plant and equipment) 237,888 311,208 308,294 329,630 309,836
R&D expenditures 331,494 326,170 327,915 334,398 316,703
Number of employees 165,776 176,398 188,042 190,870 198,000
Notes: 1. Basic earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the period.
2. Diluted earnings per share assumes the dilution that would occur if dilutive convertible debentures were converted into common stock.
3. The Company adopted SFAS No. 115 “Accounting for Certain Investments in Debt and Equity Securities” beginning with the fiscal year ended March 31, 2001,
and has restated its prior years’ consolidated financial statements.
Toshiba Group consists of Toshiba Corporation and 315 consolidated subsidiaries (201 domestic companies and 114 foreign com-
panies) as well as 52 companies reflected under the equity method (consisting of 28 domestic and 24 foreign companies). The net
number of consolidated subsidiaries for the period under review was 14 companies less than the previous year. The number of
newly consolidated subsidiaries, including our strategic joint venture with Matsushita Electric Industrial in the LCD and liquid crys-
tal business—Toshiba Matsushita Display Technology—increased by 31 companies during the year. However, as the result of
restructuring efforts, we also consolidated, rationalized and sold-off some 45 subsidiaries.
Consolidated net sales in fiscal 2002, ended March 31, 2003, increased by 5% to ¥5,655.8 billion (US$47,131 million).
Supported by growth in consumer-use digital products and overseas sales particularly in Asia, electronic device sales centering
on semiconductors and overseas PC sales recorded strong growth. On the other hand, sales of industrial-use equipment
declined due to weak public works investment as well as private capital expenditures in Japan, while weak domestic personal con-
sumption was behind the decline in sales volumes and falling unit prices for home appliances. In addition, an appreciating yen
against the major currencies depreciated reported sales. The average yen-dollar rate for sales was ¥122/US$, or ¥4 stronger than
the previous fiscal year, while the yen dropped by ¥10 against the euro from ¥120 to ¥110.
Millions of yen
Years ended March 31 2003 2002 2001
Japan ¥3,343,551 ¥3,340,491 ¥3,753,052
North America 860,306 825,902 828,671
Asia 837,845 659,820 728,969
Europe 509,620 453,093 519,186
Other 104,456 114,727 121,479
Net sales ¥5,655,778 ¥5,394,033 ¥5,951,357
Note: Net sales by region are determined based upon the location of the customers. Therefore, this information is different from the net sales for geographic
segments in segment information on page 31, which are determined based upon where the sales originated.
Japan—Domestic sales were relatively flat compared with the previous fiscal year, amounting to ¥3,343.6 billion (US$27,863 mil-
lion). Sluggish domestic capital investment in the private and public sectors contributed to a sales decline in systems for public
institutions and industrial equipment. In Home Appliances, sales were undermined by price erosion and weak consumer
demand. Otherwise, however, sales climbed for visual products and mobile phones for digital media, semiconductors for digital
consumer products, and NAND flash memories in the Electronic Devices & Components segment.
North America—Sales increased 4% year on year to ¥860.3 billion (US$7,169 million). Despite the decline in sales of
Electronic Devices & Components due to the exit of the DRAM business during the previous fiscal year, sales of portable PCs,
HDD/DVD recorders and other visual products increased significantly.
Asia—A rise in sales of thermal power stations in Taiwan, and in semiconductors for digital consumer products, contributed to
SCOPE OF
CONSOLIDATION
RESULTS OF
OPERATIONS
NET SALES
NET SALES BY
REGION
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