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03
TOSHIBA Annual Report 2014
SCOPE OF CONSOLIDATION
As of the end of March 2014, Toshiba Group (“the Group”) comprised Toshiba Corporation (“the Company”) and 598
consolidated subsidiaries and its principal operations were in the Energy & Infrastructure, Community Solutions,
Healthcare Systems & Services, Electronic Devices & Components and Lifestyle Products & Services business domains.
Of the consolidated subsidiaries, 208 were involved in Energy & Infrastructure, 158 in Community Solutions, 42 in
Healthcare Systems & Services, 51 in Electronic Devices & Components, 58 in Lifestyle Products & Services and 81 in
others.
The number of consolidated subsidiaries was 8 more than at the end of March 2013. 208 affiliates were accounted for by
the equity method as of the end of March 2014.
RESULTS OF OPERATIONS
(1) Overview of Consolidated Results
Year Ended March 31
Billions of yen
2014 Change*
Net sales 6,502.5 +775.5
Operating income 290.8 +93.1
Income from continuing operations, before income taxes
and noncontrolling interests 180.9 +21.3
Net income attributable to shareholders of the Company 50.8 (26.6)
( * Change from the year-earlier period)
The overall world economy recorded a growth rate similar to that of the previous year, regardless of a slowdown in some
emerging economies owing to weakening currencies and increasing inflation rates. The U.S. economy remained solid
despite a tighter Round 3 of Quantitative Easing (QE3), financial problems and other difficulties. The EU economy
continued a gradual recovery. After China reframed economic policy, its economy picked up again in the summer. The
overall economic growth of Southeast Asia also remained firm. The Japanese economy continued its slow recovery on an
increase in consumption spurred by a last-minute rise in demand before an increase in the consumption tax, and the
Quantitative and Qualitative Monetary Easing and fiscal stimulus initiated by the government. Although there are
concerns both in overseas and in Japan, including a bad debt problem in China, a weak recovery in the EU and emerging
economies and sluggishness in Japan due to the increase in consumption tax, the global economy is expected to record
higher growth than in the year ended March 31, 2014.
In these circumstances, the Group has endeavored to create new value by combining internal and external technologies
to expand their application areas into new and untapped markets and customer bases. In addition to Energy and Storage,
the Group has defined Healthcare as a third pillar of business and value creation. Furthermore, the Group has launched
globally competitive products and services worldwide, especially in emerging economies.
The Group’s net sales increased by 775.5 billion yen to 6,502.5 billion yen (US$63,131.5 million) with all five business
segments recording higher sales, most notably the Electronic Devices & Components segment. Consolidated operating
income increased by 93.1 billion yen to 290.8 billion yen (US$2,823.0 million). The Energy & Infrastructure segment saw a
decrease in operating income reflecting at one time negative impact of a conservative reassessment of the asset value of
a U.S. developer of nuclear power plants., and the Lifestyle Products & Services segment deteriorated, notably in the PC
business. In contrast, the Electronic Devices & Components segment achieved record operating income, and the
Community Solutions and Healthcare Systems & Services segments recorded higher operating incomes.
Despite recording a charge of 57.3 billion yen to promote business restructuring for the future in addition to reflecting
the cumulative effect of the inappropriate accouting treatment of the Toshiba Medical Information Systems Corporation,
income from continuing operations, before income taxes and noncontrolling interests increased by 21.3 billion yen to
180.9 billion yen (US$1,756.7 million). However, net income attributable to shareholders of the Company decreased by
26.6 billion yen to 50.8 billion yen (US$493.5 million) as a result of the negative impact of the reassessment of the asset
value of a U.S. developer of nuclear power plants, discontinuation of the Optical Disc Drive (ODD) business, and abolition
of the Special Corporation Tax for Reconstruction.