Toshiba 2014 Annual Report Download - page 9

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ROI (%)
D/E ratio (Times)
Interest-bearing Debt Shareholders’ Equity
Shareholder’s
equity ratio
Net income (Billions of yen)
50.8 120.0 200.0
10 11 14
20% 21% 23%
1.1 1.0
0.8
Project GAIN eect
Strengthening Financial Base
FY2013 FY2014 FY2016
In our growth businesses, we will continue to make resource inputs necessary to sustain our competitive power; however, when
executing them we will put the priority on strengthening our financial base. We will carry out capital expenditures and
investments during the Medium-term Business Plan now under way within a planned frame of ¥1.5 trillion. With regard to
business alliances with other companies as well as M&A, our intention is to carry them out within this planned frame, with
priority placed on Healthcare, Data Storage and Energy. With regard to business acquisitions in particular, our policy is to
carefully select the opportunities that will lead to the strengthening of our  nancial base through the making of higher pro t
from synergies with existing businesses.
We have already started up a Productivity Improvement project, Project GAIN,*1 that will help us transform Toshiba into a
truly innovative enterprise. Project GAIN involves thinking outside of the box to review productivity processes in all areas in
order to optimize total costs and utilize resources and assets more e ciently. We will create enormous bene ts through cost
reductions in procurement and logistics as well as by maximizing the e cient use of our production bases, and we will achieve
increased sales by spreading into all areas the various measures that have achieved results.
Through Project GAIN we will generate additional investment funds that will be utilized to further improve our  nancial
base and to make timely investments for growth. By improving our total assets turnover ratio and cash conversion cycle, we will
strengthen our cash flow management and lower our D/E ratio to 0.8 times at the end of FY2016 from 1.1 times in FY2013.
Similarly, we will improve, respectively, ROI*2 from 10% to 14% and our shareholders’ equity ratio from 20% to 23%.
*1: Global Action for Innovative Enterprise
*2: Return On Investment
Securing a healthy  nancial base
President’s Perspective
07
TOSHIBA Annual Report 2014