Toshiba 2011 Annual Report Download - page 14

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Our free cash flow at the end of FY2010 continued at a high level of ¥159.4 billion and the
strengthening of our fi nancial base was refl ected by the improvement of our debt-to-equity ratio
(D/E ratio) to 125%.
While striving to further strengthen Toshiba Group’s fi nancial base in the coming years, we
will aggressively move forward with allocating strategic resources to the businesses we have
selected to focus upon so as to achieve stronger growth and higher profi tability. With regard to
the reserves that stem from the improvement of our D/E ratio, by the end of FY2013 (March 2014),
we will secure the funds to accelerate growth by further improving our D/E ratio to 50%, among
other measures. I am thinking of utilizing these capital funds for facility investments and M&A in
new and growth businesses, as compelling future business opportunities arise. During the next
three years, we are planning to invest a total of ¥1,450 billion in capital expenditures and
investment & loans, and we will allocate ¥1,100 billion for R&D expenditures. Our strengthened
fi nancial structure will enable to us to use a portion of our capital funds to make additional bold
future investments. We will further accelerate growth by strategically utilizing ¥700 billion of
shiftable funds and our improved assets to make appropriate new investments. In addition, we are
targeting a return on investment (ROI) of 20% by the end of FY2013, double that of FY2010.
With regard to return to shareholders, we seek to continuously increase the annual dividend
in line with a consolidated dividend payout ratio of about 30%.
Toshiba’s financial structure has been strengthened. How do you view the
relationship between fi nancial soundness and pursuing growth strategies for the
future?
Q
A
An Interview with the President
which have continuously held the No. 1 market share in Japan, and LCD TVs, which greatly
increased in sales mainly in Japan and the ASEAN region, as a result of the continuous
strengthening of the profi t structure of this segment, particularly through the reduction in fi xed
costs, this segment continued to be in the black. The boundaries of products such as TVs, PCs and
mobile devices are disappearing, and the integration of technologies, components, and products
and services that cross over the borders of each category is very desirable.
To respond to these changes in the business environment, in April 2011, we integrated our
visual products and PC businesses by incorporating them into a new in-house company organized
on a regional basis with respective business units for Japan, Europe/U.S., emerging economies and
China. We will carry out speedy and timely business strategies by developing regionally-matched
products, strengthening regional area sales and marketing organizations through maximizing
organizational synergies, and delivering to the market innovative products such as battery–backup
“Power TVs” as we strive to further improve the profi tability of these businesses in the future. We
intend to accelerate and streamline our businesses in emerging economy markets through these
regionally based organizations and closer collaboration between the Digital Products and Home
Appliances business segments.
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A01_東芝様AR2011_前半.indd 12 11.8.15 5:14:28 PM