Toshiba 2007 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2007 Toshiba annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

9
8
RESEARCH AND DEVELOPMENT
The Group, inspired by the concepts of “surprise and sensation” and “safety and security”, is dedicated to the increase of
value through process innovation and the creation of value through value innovation. Wide-ranging research projects pro-
mote the development of differentiated technologies and proprietary knowledge in new materials, products and systems, and
further the development of manufacturing technology. In the core business segments of Digital Products, Electronic Devices
and Social Infrastructure, research and development draws on the Group’s technological strengths to develop engines for
future growth to a strategic product map. Efforts are also made to achieve cross functional business synergies, such as those
between the Digital Products segment and Electronic Devices segment, with the goal of expanding customer value to gener-
ate new competitive strengths. The Group’s overall R&D expenditure reached ¥394.0 billion in the fiscal year ended March
31, 2007. Expenditures for each business segment were as follows:
Billions of yen
Digital Products 118.5
Electronic Devices 174.2
Social Infrastructure 82.2
Home Appliances 18.7
Others 0.4
CAPITAL EXPENDITURES
CAPITAL EXPENDITURE OVERVIEW
The Group’s basis strategy stresses “concentration of management resources in growing fields.” In the term under review,
overall plant and equipment investments (based on the value of orders placed and including intangible assets; the same here-
after) reached ¥599.4 billion, mainly for the Electronic Devices segments. This capital investment amount includes ¥169.8
billion, which is the Group’s portion of the investments of ¥339.6 billion made by Flash Vision, Ltd., Flash Partners, Ltd.,
Flash Alliance, Ltd., etc., which are companies accounted for by the equity method. The Group’s capital investments (con-
solidated basis) excluding abovementioned investment by Flash Vision, Ltd., Flash Partners, Ltd., Flash Alliance, Ltd., etc.,
are ¥429.6 billion.
In the Electronic Devices segment, capital investments of ¥429.6 billion (including ¥169.8 billion, which is the Group’s
portion of the investments of ¥339.6 billion made by Flash Vision, Ltd., Flash Partners, Ltd., Flash Alliance, Ltd., etc., which
are companies accounted for by the equity method) were directed at increasing capacity and promoting development of semi-
conductor products and raising output of LCDs.
Major projects completed by the Group in this fiscal year included leading-edge LSI manufacturing facilities (at the Oita
Operations), manufacturing building equipment and power equipment for NAND flash memories (at the Yokkaichi
Operations), manufacturing building equipment and power equipment for discrete semiconductors (at Kaga Toshiba
Electronics Co.), and manufacturing building equipment and power equipment for low-temperature polysilicon TFT LCDs
(at Toshiba Matsushita Display Technology Co., Ltd.). Projects currently underway in the segment include manufacturing
building equipment and power equipment for NAND flash memories (at the Yokkaichi Operations), manufacturing equip-
ment for discrete semiconductor (at Kaga Toshiba Electronics Co.), and manufacturing building equipment and power
equipment for low-temperature polysilicon TFT LCDs (at Toshiba Matsushita Display Technology Co., Ltd.).
In the Digital Products segment, capital investments totaling ¥48.2 billion were channeled into development and manufac-
turing of new products, including PCs, imaging products and HDDs.
In the Social Infrastructure segment, capital investments of ¥75.4 billion were made in areas that included system develop-
ment and updating infrastructure equipment. In the Home Appliances segment, ¥32.0 billion was increased for to develop-
ment of new models and manufacturing.
Capital expenditures in the Others segment totaled ¥14.2 billion.
PLANS FOR CONSTRUCTING NEW FACILITIES AND RETIRING EXISTING FACILITIES
Since the Group operates a variety of different kinds of businesses both in Japan and overseas, introduction, upgrade and
expansion of facilities are not decided individually at the end of the term.
In the fiscal year ending March 31, 2008, investment in new facilities and equipment upgrades, including intangible assets,
is projected to total ¥573.0 billion. This figure includes ¥178.0 billion, which is the Group’s portion of the investment made
by Flash Vision, Ltd., Flash Partners, Ltd. and Flash Alliance, Ltd., which are companies accounted for by the equity
method. The Group’s planned capital investments (consolidated basis), excluding abovementioned investments by Flash
Vision, Ltd., Flash Partners, Ltd., Flash Alliance, Ltd., are ¥395.0 billion.