Toshiba 2006 Annual Report Download - page 50

Management’s Discussion and Analysis
SCOPE OF CONSOLIDATION
As of the end of March 2006, Toshiba Group comprised Toshiba Corporation and 368 consolidated subsidiaries and its
principal operations were in the Digital Products, Electronic Devices, Social Infrastructure and Home Appliances business
domains.
94 consolidated subsidiaries were involved in Digital Products, 45 in Electronic Devices, 122 in Social Infrastructure, 56
in Home Appliances and 51 in Others. The consolidated subsidiaries listed on the first Section of Tokyo Stock Exchange
are Toshiba TEC Corporation and Toshiba Plant Systems & Services Corporation.
111 were affiliates accounted for by the equity method.
The number of consolidated subsidiaries was 29 more than at the end of March 2005.
RESULTS OF OPERATIONS
NET SALES AND NET INCOME (LOSS)
The Japanese economy recovered in this period as capital expenditures increased on solid corporate profitability, though con-
cerns remained about unemployment. Overseas, economic expansion continued in the US on improved employment rates
and higher consumption, and Europe saw gradual recovery. In Asia, China and other countries continued their economic
expansion.
Toshiba Group aims for high growth in its Digital Products and Electronic Devices business domains. In Social
Infrastructure domain, the Group seeks to secure stable growth and profits, mainly through expansion of its international
business.
Toshiba’s consolidated sales in FY 2005 were ¥6,343.5 billion (US$54,218.0 million), ¥507.4 billion higher than in the
previous fiscal year. Consolidated operating income increased by ¥85.8 billion from the same period a year earlier to ¥240.6
billion (US$2,056.5 million). All business segments posted healthy business results, recording year-on-year increases in sales
and operating income, as a result of business development based on the overall Group strategy of achieving high growth with
steady profitability.
Income before income taxes and minority interest was ¥178.2 billion (US$1,522.9 million), a ¥67.0 billion increase from
the previous year. Net income increased by ¥32.2 billion from the previous year to ¥78.2 billion (US$668.3 million). Basic
earnings per share also increased by ¥10.00 to ¥24.32 (US$0.21) from a year ago.
(Note) From FY2005, income (loss) before income taxes and minority interest includes equity in earnings of affiliates, which was not included until FY2004. The impact of this change is plus ¥0.6 billion for FY2004
and minus ¥4.5 billion for FY2005.
NET SALES BY REGION
Millions of yen
Year ended March 31 2006 2005 2004
Japan ¥3,382,143 ¥3,259,853 ¥3,399,903
Asia 1,144,568 949,208 829,914
North America 945,137 811,641 710,108
Europe 699,584 615,283 517,235
Others 172,074 200,154 122,346
Net Sales ¥6,343,506 ¥5,836,139 ¥5,579,506
(Note) These figures are based on geographic location of the market in which sales were recorded, and therefore differ from the segment sales reported on p.8, which are based on the location of the distribution
source.
Japan
Sales increased by ¥122.3 billion compared to the previous year to ¥3,382.1 billion, reflecting the dissolution of a joint ven-
ture accounted for under the equity method in the power transmission and distribution business with Mitsubishi Electric
Corporation, and the transfer of the business back to the parent.
Asia
Sales increased by ¥195.4 billion from the year earlier period to ¥1,144.6 billion, with the storage devices, semiconductor
business, LCD business recording revenue increases.
North America and Europe
Sales were ¥945.1 billion in North America and ¥699.6 billion in Europe, primarily on higher revenues in the semiconductor
business and the PC business.
Others
Sales declined by ¥28.1 billion compared to the previous year to ¥172.1 billion.