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As Toshiba’s newly appointed President and Chief Executive
Officer, I want to assure you that, under my leadership,
Toshiba will accelerate the successive structural reforms we
are promoting, and will continue to work proactively and
with agility towards sustained growth, profitability, and
the creation of a vibrant Toshiba Group. As we take these
positive steps forward, I hope I may rely on the warm
support and encouragement extended to my predecessor,
Mr. Tadashi Okamura, the current Chairman of the Board.
Together, we would like to begin by reporting on
our financial and business results for fiscal 2004, ended
March 31, 2005.
Operations and Results
In FY2004, we promoted business strategies targeting
business groups with both high growth and stable prof-
itability. As a result, all business segments, including Digital
Products, Electronic Devices, Social Infrastructure, and Home
Appliances achieved increased sales while consolidated
sales rose by ¥256.6 billion from the previous term to
¥5,836.1 billion.
In terms of profit and loss, Digital Products saw a
healthy increase in profits, though Electronic Devices,
Social Infrastructure, and Home Appliances recorded profit
declines against the previous term. Overall, consolidated
operating income decreased by ¥19.8 billion to ¥154.8
billion. If we were to exclude the impact of a one-time
environmental cost in FY2004 and that of the return of
the substitutional portion of the Employee’s Pension Fund
Plan in FY2003, both overall Group profit and profit for
Social Infrastructure would show increases.
Consolidated income before income taxes, minority
interest and equity in earnings (loss) of affiliates decreased
by ¥34.4 billion from the previous period to ¥110.6 billion.
However, consolidated net income increased by ¥17.2
billion from the previous period to ¥46.0 billion. Basic
earnings per share increased by ¥5.36 from the previous
period to ¥14.32.
Key Businesses in Segments
The Digital Products Segment saw increased revenue in
Digital Media businesses including Magnetic Disk Storage
Devices and LCD TVs, PCs, as well as in retail and business
equipment, including Multi-Function Peripherals. Revenue
from the Mobile Phone business remained at the same
level as for the previous term on lower exports. Overall
segment results saw a notable improvement, with profit
and loss bolstered by the recovery in the PC business,
despite deterioration in Storage Devices.
The Electronic Devices Segment reported higher
revenues on advances in the Semiconductor business and
LCD business, even though withdrawal from production
of Cathode Ray Tubes and Lithium-Ion Batteries impacted
overall revenue figures. In profit and loss, the LCD business
continued to be favorable and the Semiconductor busi-
ness, especially Memories, maintained high profitability.
Second-half profit eased from levels recorded earlier in the
year as customers made inventory adjustments in digital
consumer products, bringing down overall profit.
The Social Infrastructure Segment saw increased
revenues in Power Systems & Services businesses, such as
Power Plants; in Social Network Infrastructure businesses
2Toshiba Corporation 130th Anniversary
To Our Shareholders