Toshiba 2014 Annual Report Download - page 92

04 TOSHIBA Annual Report 2014
Management's Discussion and Analysis
Consolidated Results by Segment are as follows;
Billions of yen
Net Sales Operating Income (Loss)
Change* Change*
Energy & Infrastructure 1,812.2 +179.9 +11% 32.3 (52.8)
Community Solutions 1,357.4 +178.3 +15% 51.9 +9.2
Healthcare Systems & Services 410.8 +31.2 +8% 28.6 +4.8
Electronic Devices & Components 1,693.4 +406.8 +32% 238.5 +143.0
Lifestyle Products & Services 1,313.8 +44.0 +3% (51.0) (8.7)
Others 504.0 +5.2 +1% (8.7) (2.1)
Eliminations (589.1) − − (0.8) −
Total 6,502.5 +775.5 +14% 290.8 +93.1
( * Change from the year-earlier period)
Energy & Infrastructure:
The net sales of the Energy & Infrastructure segment increased by 179.9 billion yen to 1,812.2 billion yen (US$17,593.7
million). Although the Nuclear Power Systems business in Japan saw lower sales, the overall Social Infrastructure business
recorded growth, reflecting higher sales in the Electric Power Distribution Systems, Solar Photovoltaic Systems, Railroad
Systems, Automotive Systems and other businesses.
Segment operating income decreased by 52.8 billion yen to 32.3 billion yen (US$313.3 million). The Electric Power
Distribution Systems, Solar Photovoltaic Systems and other businesses reported higher operating income, reflecting
higher sales. The Thermal & Hydro Power Systems business performed well but recorded lower operating income. The
Nuclear Power Systems business deteriorated reflecting a temporary expense incurred overseas, and at one time negative
impact of a conservative reassessment of the asset value of a U.S. developer of nuclear power plants.
Community Solutions:
The net sales of the Community Solutions segment increased by 178.3 billion yen to 1,357.4 billion yen (US$13,178.2
million). The Retail Information Systems and Office Equipment business reported significantly higher sales on positive
effects from a business acquisition and other factors. The Disaster Prevention Systems, Elevator & Building Systems,
Lighting and Commercial Air-Conditioners businesses also saw sales increases.
Segment operating income increased by 9.2 billion yen to 51.9 billion yen (US$504.2 million). The Retail Information
Systems and Office Equipment business saw higher operating income reflecting higher sales, and the Elevator & Building
Systems and Commercial Air-Conditioners businesses also recorded higher operating income.
Healthcare Systems & Services:
The net sales of the Healthcare Systems & Services segment increased by 31.2 billion yen to 410.8 billion yen (US$3,987.8
million). Healthcare systems, especially computerized tomography (CT) systems, recorded higher sales on higher unit
sales in emerging economies and sales growth in the overseas service sector.
Segment operating income increased by 4.8 billion yen to 28.6 billion yen (US$277.8 million). The segment saw higher
operating income on higher sales in emerging economies and the overseas service sector.
Electronic Devices & Components:
The net sales of the Electronic Devices & Components segment increased by 406.8 billion yen to 1,693.4 billion yen
(US$16,442.0 million). The Memories business saw significantly higher sales on increased sales volume, and the Discrete
business reported higher sales. The Storage Products business also recorded higher sales, especially in 3.5-inch hard disk
drives (HDDs).
Segment operating income increased by 143.0 billion yen to 238.5 billion yen (US$2,315.0 million), the highest it has ever
recorded. The Memories business saw a notable upswing, maintaining high profitability.