Toshiba 2006 Annual Report Download - page 31

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Social Infrastructure Segment
In FY2005, the Medical Systems business, Power Systems business
and Social Infrastructure Systems business all reported improved
performances. Consolidated sales rose by 117 billion yen from the
previous term to 1,882.3 billion yen, and consolidated operating
income grew by 27.9 billion yen from the previous period to 76.5 bil-
lion yen.
To s h i b a’s S o c i a l In f r a s t r u c t u r e b u s i ness will continue to accelerate
growth in its established business on a global basis, while reinforcing
stable revenues by promoting new businesses in promising areas, such
as fuel cells and a new battery offering fast recharging capabilities.
Power Systems Company
The delivery of Higashidori Nuclear
Power Station Unit No.1 to Tohoku
Electric Power Co., Inc. and the business
reversion of the power transmission and
distribution business, following dissolu-
tion of a joint venture, contributed to
increased sales and operating income.
In February 2006, Toshiba agreed with
British Nuclear Fuel plc to acquire the
nuclear power systems business of
Westinghouse for a total of 5.4 billion
US dollars. Westinghouse pioneered the
worldwide nuclear power businesses, and
today has a solid presence in nuclear
plant construction and maintenance, and
nuclear fuel processing, largely for
Pressurized Water Reactors (PWR).
Westinghouse nuclear power systems are
now installed all over the world, center-
ing on Europe and the US, and the intro-
duction of Westinghouse into Toshiba
Group nuclear power operations is
expected to spur sales growth to around
700 billion yen in FY2015—some 3.5
times the scale of today’s business.
The Westinghouse acquisition gives
Toshiba entry to the PWR nuclear
power systems business. Moving for-
ward, the synergy between that business
and Toshiba’s mainstay, including
Boiling Water Reactor (BWR) nuclear
power systems, is expected to accelerate
the global development and presence of
the Power Systems Company.
Industrial Systems Company
The railway-related business recorded
positive results in FY2005, on an increase
in large-scale overseas contracts for elec-
tric locomotives and rolling stock electri-
cal systems, and in orders for domestic
railway station service systems, such as
automatic gate machines. At the same
time, general industrial systems contin-
ued to see increased orders, particularly
for motors and general purpose inverters.
The company will continue to secure its
position among the leaders in the domes-
tic market, and use that base and busi-
ness structure to promote global develop-
ment on a group-wide basis, with an eye
toward sustained growth with profit.
Social Infrastructure Systems Company
Orders for digital broadcasting systems
and equipment from regional TV broad-
casters grew in FY2005. The overall
Social Infrastructure Systems businesses,
including systems for buildings, airports,
roads and rivers, made efforts to improve
cost competitiveness, particularly for
power supply systems. A proactive
approach extended to eco-friendly power
distribution systems and building automa-
tion systems with energy-saving controls.
In water and environmental systems, the
Company is energetically cultivating the
equipment replacement market for water
and sewage treatment systems, and pro-
moting new businesses, including pyroly-
sis systems.
In the broadcasting systems business,
the company set out to win the position of
No.1 vendor of main systems for terrestri-
al digital broadcasting, and to expand new
businesses, including media storage
servers, both at home and overseas.
Competitive models designed for mobile
carriers will support expansion in the net-
work systems business. In radio applica-
tion systems, the goal is to build a future
64-row detector multi-slice CT
scanner “Aquilion 64”
This 64-row detector multi-slice
CT scanner brings new clinical
capabilities to the diagnosis of
cardiovascular diseases through
high-speed scanning and recon-
struction of high-definition
images. Worldwide recognition
and a growing reputation, particu-
larly in the U.S., the world’s most
medically advanced country, are
bolstering increasing shares of
both the domestic and overseas
markets.
On April 1, 2006, Toshiba reorgan-
ized the businesses of two in-
house companies, Industrial and
Power Systems & Services
Company and Social Network &
Infrastructure Systems Company,
into three in-house companies:
Power Systems Company, which
promotes business with electric
power utilities; Industrial Systems
Company, which serves general
industry; and Social Infrastructure
Systems Company, which mainly
supports central and local govern-
ments and other organizations.