Toshiba 2013 Annual Report Download - page 11

Creativity leading to Value, Process and New Concept Innovation will
spearhead future growth
Our Medium-term Business Plan targets the achievement of a compound annual growth rate (CAGR) of 7.1%
in FY2015, which would signi cantly exceed the forecasts for the world’s GDP growth rate, and at the same time,
we are aiming to attain operating income of ¥400 billion, which will mean a ROS*1 of 5.7%.
For Toshiba Group, the improvement of our balance sheet is quite a central management objective, and we
will continue to carry out measures to strengthen our  nancial structure, Concretely put, by improving our total
asset turnover ratio and improving our CCC*2, we will further strengthen our cash  ow management and reduce
our interest-bearing debt/equity ratio from 1.4 times at the end of FY2012 to 0.8 times by the end of FY2015.
Similarly, we will improve ROI*3 from 7% to 14%, and the shareholders’ equity ratio from 17% to 23%, respectively.
In the three years from FY2013 to FY2015, we are planning an R&D expenditure of ¥1.09 trillion and capital
expenditures, investment and M&A of 1.44 trillion yen. In the semiconductor business where changes are rapid,
we will carefully grasp the market’s supply/demand situation and make decisions about the timing for carrying
out facility investment. We will also move ahead with business acquisitions by narrowing down the number of
cases to those from which we can expect high pro tability through synergies with existing businesses and also
those that will lead to the strengthening of our  nancial base. Attaining both an improvement in our  nancial
structure and allocation of resources will go a long way toward helping us to realize Growth Through Creativity
and Innovation.
*1: ROS: Return On Sales (Ratio of Operating Income to Net Sales)
*2: CCC: Cash Conversion Cycle
*3: ROI: Return On Investment = Operating Income/(Equity attributable to shareholders of the Company + interest-bearing debt)
Our management strategies for achieving creative growth and innovation are focused on four Action Plans. First,
we will seek value creation by creatively conceiving of an unlimited range of new business opportunities. In
addition to the benefits for growth of organic growth and continuing the execution of attractive M&A
opportunities, we will focus on our new three-pillar business strategy that now incorporates an ambitious growth
role for Healthcare as well as the addition of a third arena of innovation, New Concept Innovation, to go along
with our e orts toward further realizing Value Innovation and Process Innovation. We will listen very carefully to
customers’ points-of-view and combine our leading-edge technologies and intellectual property assets in
unconventional ways across di erent business  elds to create synergies and expand applications.
Our second core action plan is to pursue Productivity Improvement by promoting the most e ective uses of
resources and assets, such as by making global use of shared services, and by enhancing the quality, e ciency,
speed and added value of our work in all of our businesses. Our objective is to make extraordinary operational
quality a key Toshiba Group competitive advantage.
Third, to help uncover new needs, we need to develop diverse, creative, talented global personnel who
share Toshiba Group’s vision and values, and we will constantly work within Toshiba Group to make sure to
integrate new perspectives and pursue creative new ideas. The number of employees working outside of Japan
will soon exceed those in Japan. We intend to proactively promote diversity as a management strategy. Finally,
we must continue to move forward with CSR management, according it the highest priority as a basic
management principle.
President’s Perspective
09
TOSHIBA Annual Report 2013