Toshiba 2005 Annual Report Download - page 51

130th Anniversary Toshiba Corporation 9
The Group promotes the basic policies of “creating the world’s number one technology,” and
“creating value through the integration and multi-functionality of technology.” In aggressive
efforts to strengthen its distinct technologies, the Group applies these policies to all stages of
its research and development activities, from the development of new materials, products, and
systems to the development of manufacturing technologies. The Group promotes research and
development centered on our core business segments of Digital Products, Electronic Devices, and
Social Infrastructure, coordinating our growth engine technologies and products with a strategic-
product map. The Group also makes efforts to generate synergy across business segments, such
as with the tie-up of the Digital Products Segment with the Electronic Devices Segment for the
purpose of establishing “Imaging by Toshiba.”
Research and development expenditures for the entire Group on a consolidated basis totaled
¥348 billion in the fiscal year ended March 31, 2005, and R&D expenditures according to
segment were as follows.
(Billions of yen)
Digital Products Segment 101.7
Electronic Devices Segment 164.5
Social Infrastructure Segment 61.7
Home Appliances Segment 19.0
Others 1.1
> CAPITAL EXPENDITURE OVERVIEW
The Group follows a basic strategy of focusing management resources on growth areas.
Capital expenditures, including investments in intangible fixed assets, were primarily directed to
the Electronic Devices segment, and amounted to ¥342.5 billion.
Capital expenditures in the Electronic Devices Segment totaled ¥239.3 billion, and included
investment for increased development and production of semiconductors and of LCDs.
Principal facilities completed in the course of fiscal 2004 were facilities for the advanced pro-
cess System LSIs production at Oita Operations, and NAND Flash memory production with
advanced process technology at Yokkaichi Operations. Facilities still under construction include
advanced System LSI manufacturing facilities at Oita Operations, and Low Temperature
Polysilicon LCD production facilities and equipment at Toshiba Matsushita Display Technology
Co., Ltd.
In the Digital Products Segment, capital expenditures totaled ¥36.5 billion, and were channeled
into the development and manufacturing of new products, such as PCs, AV products, and Magnetic
Disk Devices.
In the Social Infrastructure Segment, capital expenditures totaled ¥36.6 billion and were
focused on system development and infrastructure upgrades. Capital expenditures in the Home
Appliances Segment amounted to ¥22 billion and were directed to the development and
manufacturing of new models. Capital expenditures in the others segment totaled ¥8.1 billion.
> PLANS FOR CONSTRUCTING NEW FACILITIES AND RETIRING EXISTING FACILITIES
The Group makes plans for capital expenditures with a comprehensive view of manufacturing
plans, demand forecasts, and the ratio of expenditures to income over the next three years.
Capital expenditure plans are in principle formulated by each individual company. To avoid
duplication of investment throughout the Group, however, the Group makes adjustments to plans.
Planned expenditures for new construction and renovations at primary facilities, including
investments in intangible fixed assets, as of the fiscal year-end totaled ¥335 billion. Included in
this figure are planned expenditures of ¥45.2 billion to be made by the Group through equity
method affiliates. Upon completion of plans, plant capacity is expected to increase slightly
compared with pre-construction capacity.
RESEARCH AND
DEVELOPMENT
CAPITAL
EXPENDITURES