Toshiba 2008 Annual Report Download - page 76

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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. Considering “Eco & Energy”, wide-
ranging research projects promote the development of differentiated technologies and proprietary knowledge in new materi-
als, 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 technologi-
cal strengths to develop engines for future growth to a strategic product map. Efforts are also made to achieve cross function-
al business synergies, such as those between the Digital Products segment and Electronic Devices segment, with the goal of
expanding customer value to generate new competitive strengths.
The Group’s overall R&D expenditure reached ¥393.3 billion in the fiscal year ended March 31, 2008. Expenditures for
each business segment were as follows:
Billions of yen
Digital Products 118.3
Electronic Devices 166.2
Social Infrastructure 88.3
Home Appliances 19.2
Others 1.3
CAPITAL EXPENDITURES
CAPITAL EXPENDITURE OVERVIEW
The Group’s basis strategy stresses proactive managements including the strategic allocation of resources in growing fields
grounded in achieving sustained growth with profit, one pillar of corporate management of the Group. In the term under
review, overall capital investments (based on the value of orders placed and including intangible assets; the same hereafter)
reached ¥618.9billion, mainly for the Electronic Devices segments. This capital investment amount includes ¥181.5 billion,
which is the Group’s portion of the investments made by Flash Alliance, Ltd., etc., which are companies accounted for by the
equity method. The Group’s capital investments (consolidated basis) excluding abovementioned investment by Flash
Alliance, Ltd., etc., are ¥437.4 billion.
In the Electronic Devices segment, capital investments of ¥436.5 billion (including ¥181.5 billion, which is the Group’s
portion of the investments made by Flash Alliance, Ltd., etc., which are companies accounted for by the equity method) were
directed at increasing capacity and promoting development of semiconductor 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 facilities for discrete semiconductors (at Kaga Toshiba Electronics Corporation).
In the Digital Products segment, capital investments totaling ¥48.3 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 ¥86.6 billion were made in areas that included system develop-
ment and renewal infrastructure equipment for manufacturing. In the Home Appliances segment, ¥30.7 billion was invested
for to development of new models and manufacturing.
Capital expenditures in the Others segment totaled ¥16.8 billion.
PLANS FOR CONSTRUCTING NEW FACILITIES AND RETIRING EXISTING FACILITIES
In the fiscal year ending March 31, 2009, investment in new facilities and equipment upgrades, including intangible assets, is
projected to total ¥656.0 billion (based on the value of orders placed; the same hereafter). This figure includes ¥178.0 billion,
which is the Group’s portion of the investment made by Flash Alliance, Ltd., etc., which are companies accounted for by the
equity method. The Group’s planned capital investments (consolidated basis), excluding abovementioned investments by
Flash Alliance, Ltd., etc., are ¥478.0 billion.
The Group’s planned capital investments for each business segment are described below:
Billions of yen
Digital Products 52.0
Electronic Devices 413.0
Social Infrastructure 116.0
Home Appliances 31.0
Others 44.0
Management’s Discussion and Analysis