Toshiba 2002 Annual Report Download - page 31

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TOSHIBA CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
vious year, but further declines in sales prices impacted total sales value. In order to drive growth, we enhanced design in prod-
ucts like the Trilobite robot cleaner (in the “Electrolux by Toshiba” series), and we continue to develop overseas markets, centering
on China and other Asian countries.
Electronic Devices & Components—Sales for the segment rebounded 21% for the year to ¥1,296.0 billion (US$10,800 million),
and accounted for 20% of total sales, up from 17% the previous year. Operating income rebounded sharply from a ¥176.3 bil-
lion deficit in the previous year to a profit of ¥30.5 billion (US$254 million), and contributed nearly 27% of total operating profits,
as the operating margin recovered to 2.0%.
Demand for semiconductors in yen terms increased approximately 9%, boosted by higher demand for consumer products
in Japan and southeastern Asian countries, stimulated by the June 2002 World Cup soccer tournament.
Sales of discrete devices were supported by high demand from China and Asia in the first half of the fiscal year, particular-
ly for consumer AV products, DVDs and game consoles. Completion of inventory adjustments also boosted demand for products
for mobile phone applications. In contrast, demand for amusement equipment did not meet expectations, and demand for power
devices for mobile phones, PCs, and AV equipment applications weakened.
In the first half of the fiscal year, system LSI sales were driven by logic devices for digital consumer products, LCD drivers for
mobile phones and PCs, and bipolar ICs for audio and other applications. In the second half, sales of custom LSIs for SD Cards,
DVCs, mobile phones and amusement applications remained firm, while demand for MCUs declined.
In memory devices, demand for NAND flash memories for digital still cameras was particularly strong, and NAND flash mem-
ories found increasing application in the mobile phone market in the second half of the fiscal year. There was also rapid
growth in sales of MCP products incorporating NAND and NOR flash memories, SRAMs and pseudo-SRAMs.
Sales for LCDs increased sharply, by 88% to ¥235 billion (US$1,958 million), due to the launch of Toshiba Matsushita Display
Technology Co., Ltd. (TMD), a joint venture with Matsushita Electric Industrial Co., Ltd. While sales prices for displays for
portable PCs and monitors declined, small-sized displays for mobile phones saw brisk demand, and growth in TMD’s market-lead-
ing QVGA LCDs was particularly robust.
Others—Sales increased 1% for the year to ¥431.4 billion (US$3,595 million), and produced operating income of ¥18.6 billion
(US$155 million), representing a 21% increase from the previous year.
The following segment information is based on Japanese accounting standards. Along with a review of internal management juris-
dictions made in April 2001, Toshiba has reclassified its former Information & Communications and Industrial Systems into
Information & Communication Systems and Social Infrastructure Systems as well as reviewed a portion of its business classifi-
cations in Digital Media and Others. Consolidated financial data for the fiscal year ended March 31, 2001 have been reclassified
to comform with the fiscal year ended March 31, 2002.
INDUSTRY SEGMENTS
Thousands of
Millions of yen U.S. dollars
Year ended March 31 2003 2002 2001 2003
Net sales:
Information & Communication Systems
Unaffiliated customers ¥ 775,307 ¥ 784,071 ¥ 800,941 $ 6,460,892
Intersegment 133,425 172,643 171,048 1,111,875
Total 908,732 956,714 971,989 7,572,767
Social Infrastructure Systems
Unaffiliated customers 875,239 890,718 925,351 7,293,659
Intersegment 47,515 64,632 49,787 395,958
Total 922,754 955,350 975,138 7,689,617
Power Systems
Unaffiliated customers 513,681 565,973 568,244 4,280,675
Intersegment 10,054 13,587 14,423 83,783
Total 523,735 579,560 582,667 4,364,458
Digital Media
Unaffiliated customers 1,603,698 1,405,328 1,398,161 13,364,150
Intersegment 54,409 63,271 88,242 453,408
Total 1,658,107 1,468,599 1,486,403 13,817,558
Home Appliances
Unaffiliated customers 633,438 656,905 676,820 5,278,650
Intersegment 27,276 23,777 31,497 227,300
Total 660,714 680,682 708,317 5,505,950
Electronic Devices & Components
Unaffiliated customers 1,091,673 905,178 1,332,711 9,097,275
Intersegment 204,278 169,674 218,640 1,702,317
Total 1,295,951 1,074,852 1,551,351 10,799,592
Others
Unaffiliated customers 162,742 185,860 249,129 1,356,183
Intersegment 268,692 240,511 219,143 2,239,100
Total 431,434 426,371 468,272 3,595,283
Eliminations (745,649) (748,095) (792,780) (6,213,742)
Consolidated ¥ 5,655,778 ¥ 5,394,033 ¥ 5,951,357 $ 47,131,483
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