Toshiba 2003 Annual Report Download - page 8

6TOSHIBA CORPORATION TO OUR SHAREHOLDERS
resources available to each business group will be directed to
the areas where they can have the biggest impact.
Becoming a Company with Committees
In recent years, we have rolled out significant reforms. In
1998, we introduced an executive officer system, and in
1999 we initiated an in-house company system. A year later,
we established the Nomination and Compensation Commit-
tees, and in June 2001 we increased the number of external
directors to three, while lowering the tenure period of each
director to one year. Through these measures, we anticipated
changes in the wider world and assured Toshiba’s place in the
vanguard of reform.
We remain there today through our decision to make Toshiba
a “Company with Committees.” Adoption of this new sys-
tem allows us to take reform even further, as it defines a clear
supervisory function for the Board of Directors and enhanc-
es management authority and flexibility. As we promote
these measures to improve transparency and corporate gover-
nance, we are also reinforcing our risk management and
compliance systems.
Developments for Fiscal 2003
Pursuing Further Growth
Forecasts for fiscal 2003 show no easing in the severity of the
business environment. If Toshiba Group is going to over-
come these conditions and achieve further growth, it must
continue to rebuild and to reinforce its operating structures.
We must also utilize our technological assets, production
strengths and business acumen to stimulate new demand,
and to assure that the positive results we recorded in fiscal
2002 are the foundations for sustained growth and higher
profit in fiscal 2003.
Toward that objective, we will make every effort to promote
business development, particularly through investments in our
high-growth domains, the foundation for creating new demand.
Taizo Nishimuro
Chairman of the Board
Tadashi Okamura
Director,
President and Chief Executive Officer
Another way in which Toshiba will progress toward growth is
through evolutionary improvements in its culture and busi-
ness practices. One area where this is particularly important
is our “TM1 Movement,” or “Time to Market No. 1.” This
program is dedicated to cutting lead times at every stage of
product development and manufacture, from the planning
process through to customers. To realize our goal of a mar-
ket-centric approach to management, we are doing all we
can to remove barriers between product development, pro-
curement, production, distribution and sales and marketing,
while raising efficiency in each of these activities. This will
assure our ability to cut lead times and launch differentiated
products in advance of other companies.
Management Forecast for Fiscal 2003
In fiscal 2003, to March 31, 2004, Toshiba forecasts a 1%
increase against fiscal 2002 in consolidated net sales, to
¥5,700 billion. Operating income is projected to rise ¥54.5
billion, to ¥170 billion. We anticipate an increase of ¥36.9
billion in net income before taxes, to ¥90 billion, and a gain
of ¥21.5 billion in net income, to ¥40 billion.
Closing Remarks
In 128 years of operations, Toshiba and Toshiba Group have
won a vast number of customers, built up an abundance of
technological know-how and assets, and developed a brand
name that has become a byword for high quality and trust-
worthy products. That is our heritage, and the base from
which we will work to create new value that meets the needs
and expectations of our customers around the world.
Through our efforts, we will open a new chapter in Toshiba’s
history, and assure a dynamic Toshiba Group that contrib-
utes to society.
We will continue to adhere to our slogan, “Innovation-driv-
en, Customer-focused Growth,” and to build a highly
profitable group of companies that is active in both high-
growth and stable-growth businesses. As we do so, we hope
we may rely on your continued understanding and support.
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