Strategies for 2010 Mid-term Business Plan

Transcription

1 Strategies for 2010 Mid-term Business Plan President & CEO Yoshihiro Maeda May 20, 2008 Copyright 2008, Toshiba Tec Corporation.

2 INDEX Business Results for FY2007 Management Strategies for 2010 Management Policy/Targets Strategy by Business Segment Retail Solution Business/Document Systems Business/Auto-ID & Printer business Common Policies for Group Companies Acceleration for Innovation Activities Vision for FY2010 2

3 Business Results for FY2007 Sales : Decrease against the Previous Year (Influenced by transfer of home appliance business and rebound from large volumes of deliveries to major customers in the previous year) Profits : Breaking Record (Strengthen profitability by focusing on high-value added products, etc) Sales Oprating Income Income before taxes Net Income FY2007(Results) Comparison with FY2006 3

4 Performance Trend Increased Profits for Six Straight Years Sales ( billions) 500 Sales Operating Income Ordinary Income Income billions '01 '01 '02 '02 '03 '04 '05 '06 '07 0 4

5 Share Price / Dividend Trend Share Price ( ) Dividend ( ) Share price average Dividend per share 5

6 Business Results for FY2007 Management Strategies for 2010 Management Policy/Targets Strategy by Business Segment Retail Solution Business/Document Systems Business/Auto-ID & Printer business Common Policies for Group Companies Acceleration for Innovation Activities Vision for FY2010 6

7 Management Policy Realize Sustained Growth with Profit Expand business by improvement of sales forces and products Build robust business structure impervious to circumstance changes Accelerating Innovation activities Accelerate process innovation and value innovation Strengthen global competitiveness CSR Management Highest respect for human life, safety, and legal compliance Environmental management 7

8 Reformation of Business Structure -for further business expansion- FY2007 Retail Information System Business Document Processing & Telecommunication System Business Home Appliance Business and others Transfer of business FY2008 Retail Solution Business (RS) Document Systems Business (DS) Auto-ID & Printer Business (AP) Individual Strategy Steady profit Expand high growth and profitability Develop business scale (The third core business) Common Strategy Expanding overseas business, Providing eco-products, Interdivisional cooperation FY2010 Realize Sustained Growth with Profit Sales: 570billion, Operating Income: 32billion(5.6%) 8

9 Reformation of Business Structure -main products by business segment- Retail Solution Business POS terminals Self-scan systems Multiple terminals Document Systems business MFP: e-studio Series Ink-jet heads Auto-ID & Printer Business Rewritable bar-code printers RFID systems Double-sided thermal printers Terminals for specific customers 9

10 Targets -group total- Realize Sustained Growth with Profit ( billions) 6, , , , , , Sales Operating Income '06 '07 '08 '09 ' ( billions) Sales growth CAGR:5.0%(FY ) Operating Income Ratio:5.6%(FY2010) ( billions) FY2006 FY2007 FY2008 FY2009 FY2010 (Result) (Result) (Forecast) (Target) (Target) Sales Operating Income (Ratio) (4.4%) (5.3%) (5.4%) (5.5%) (5.6%) Ordinary Income Net Income Currency exchange rate in FY08-10, USD: 100, EUR: 150 -In consideration of changes of accounting rules(goodwill, depletion) 10

11 Targets -by business segment- Realize Sustained Growth with Profit ( billions) FY2007 (Result) FY2008 (Forecast) FY2009 (Target) FY2010 (Target) CAGR '07-'10 Retail Solution Business Document Systems Business Auto-ID & Printer Business Sales Operating Income (Ratio) Sales Operating Income (Ratio) Sales Operating Income (Ratio) (Currency exchange rate in FY08-10 USD: 100, EUR: 150) 11

12 Targets -financial strength- -Generate free cash flow -Expand net cash (Net cash = cash interest-bearing debt) -Improve cash flow <Upgrade CCC efficiency> CCC(Cash conversion cycle)=dso + DOI DPO : indicator of working capital retaining period ( billions) 1,200 1, '07 Net Cash '08 '09 '10 (days) '07 '08 '09 '10 DSO DOI DPO CCC 12

13 Targets -resource infusion- R&D investment plan (1) R&D expenditure ratio maintains 6% (2) Invest in color MFP, next generation POS, and RFID related products as competitive new ones Investment and loan plan (1) Enhance development and manufacturing bases -Increase color toner production, strengthen parts business in China and domestic development bases, etc -Molds for strategic products, IT investment, etc (2) Investment and loan for strengthening sales forces ( billions) Others (DS). Others (DS) ( billions) Others (DS). Others (DS)

14 Investment in facilities -Chinese new parts plant (Shenzhen)- 1.Strengthen cost competitiveness of products Promote self manufacturing of high-value added units 2.Enhance in-house technologies 3.Reduction of purchase costs Toshiba TEC Information Systems (Shenzhen) 14

15 Investment in facilities -domestic new building (Ohito Business Center)- 1.Improve productivity by integrating development bases 2.Advance reliability of products developed -Strengthen and expand simulation CAD room -Improve test environment (build laboratory simulating a real shop, etc) -Expand the facilities for examining environment resistance 15

16 Business Results for FY2007 Management Strategies for 2010 Management Policy/Targets Strategy by Business Segment Retail Solution Business/Document Systems Business/Auto-ID & Printer business Common Policies for Group Companies Acceleration for Innovation Activities Vision for FY

17 Retail Solution Business Strengthen Solution Business 1.Maintain and reinforce the top position in domestic POS market POS terminal domestic share of market : 06 result: 52% to 10 target: 56% -Promote replacement by solution proposal -Increase share with a customer by providing total solution for shop -Develop periodical fee collectable business models and expand sales ( billions) 2, , Operating Income Ratio 7.0% 6.0% 5.0%. Expand overseas business 1, Sales 4.0% 3.0% -Expand product lineup and enhance sales channel -Improve infrastructure for software development and maintenance -Strengthen selling to overseas offices of Japanese enterprises % 1.0% 0.0% 17

18 Retail Solution Business -domestic business- Increase share with a customer by providing total solution for shop Customer using FSP -Multistep prices for members -Individualized promotion receipt Use-by date control Electric price tag Transaction monitoring Self-scan systems Electric payment Automatic change calculator 18

19 Retail Solution Business -overseas business- Expand business by reinforcing products for overseas markets Reinforcing Product lineup -Expand sales of systems for restaurants and specialty stores with a core of touch POS terminal and POS printer released in Release new leading POS terminal for general merchandising store -Enhance software by alliance, etc. Touch POS terminals Strengthen sales channel -Enhance European sales bases -Improve partnership with U.S. dealer channel for restaurant market -Expand Asian dealer channel Printers for POS 19

20 Document Systems Business Growth and Restructuring 1.Innovation for growth -Business growth due to launch of new color lineup and sales expansion -Expand solution business by open platform MFP -Strengthen after-sales profitability -Proactively promote environment-conscious products 2.Innovation to strengthen company s constitution -Cost reduction responding to sales price decline -Improve market quality and service capability 3.Innovation of restructuring -Reform of global business structure -Reduce fixed costs by integrating bases ( billions) 3, , , , , , Operating Income Ratio Sales 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 20

21 Document Systems Business -product strategy- Highest speed and productivity office color lineup High-performance color lineup Maximize performances required for MFP Low-end color lineup Security Network Operability Environment A4 model lineup Low cost Solution B/W lineup Improve controller s function nd Generation 3 rd Generation Generation e-bridge Controller 21

22 Document Systems Business -product strategy- Introducing 7 color models of 2series for this term -High speed printing -Further high image quality -Expand solution functions Accelerate color machine sales 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Market Toshiba TEC '05 '06 '07 '08 '09 '10 -Color sales strategy -Enhance color solution -Expand sales in growing markets 22

23 Document Systems Business -product strategy- Expanding solution business by open-platform MFP Business process standardization Storage Cooperation with main systems Microsoft, Oracle, SAP Share Approval Develop MFP Document work flow Main system Document library Advanced information security Application Cooperation with office application family Word PowerPoint Excel Acrobat *Described names of company and products are registered trademarks 23

24 Document Systems Business -environment conscious products- Contribution to environment protection over expanding sales of environment-conscious products Reduce CO2 emission by 50% by erasable toner e-blue (erase 4 times, use 5 times) Hold down purchasing papers and contribute to environment load reduction by re-use papers with e-blue CO2 emission (Kg) *e-blue won many awards -The 15th Nikkei global environment technology award -Japan image academy award in 2005, technology award resource recycle technology-system award, encouraging prize -The 34th environmental award, environment minister award, outstanding performance award One-side printing 33.0 Erase 4 times e-studio 352EB with e-blue is used by the bureau of the G8 Hokkaido Toyako summit 24

25 Document Systems Business -regional strategy- Business growth in European major countries by enhancing profitability and accelerating colorization Strengthen sales structure Promote restructuring in addition to growth strategy Shift from restructuring to growth with stable profits Strengthening direct sales, color machines, solution, high valueadded sales, and improve productivity Enhancing acquisition of bids Strengthening both dealer channel and direct sales and service business Strengthen sales structure Won market share No.1 for 8 straight years in China and 3 straight years in India 25

26 Document Systems Business -ink-jet head- Realize high quality print for industrial use Multi-drop method developed by our unique technology and advanced ink discharge accuracy Widely adopted by global leading printing product vendors for industrial use and duplicator vendors <Grayscale expression realized by multi-drop method> CE2 head realizes high resolution printing of 300dpi 26

27 Document Systems Business Expand business scale with competitive products 1.Enhance and expand BCS* business -Improve product lineup -Strengthen global sales structure -Expand supply business *Bar-code systems ( billions) Operating Income Ratio 8.0% 2.Create new RFID products -Expand target market by providing solution by type of industry and operation -Enhance business by cooperation with Toshiba group 3.Stable growth of special equipment and printer business Sales 6.0% 4.0% 2.0% -Mine domestic market for special equipments -Expand global sales of double-sided printers -Exploit new customers and markets with new products 0 0.0% 27

28 Auto-ID & Printer Business -BCS- Improve product lineup and strengthen sales structure -Expand business domain by improving product lineup -Enhance domestic business scale by strengthening sales structure -Enlarge overseas market share through overseas regional strategies Expansion of product lineup Automobile Manufacturing Wide format Transportation / Logistics Retail Apparel Portable Low end Mid-range Environment responsive High end Medical 28

29 Auto-ID & Printer Business -RFID- Expand target market and provide solutions -Expand target market to manufacturing, logistics, and retail industries -Enlarge business scale by providing solutions by type of operation -Create synergy by cooperation with Toshiba group Expansion of product lineup Manufacturing Document management Goods & asset management Logistics management Logistics Sales & inventory management Retail Finance Public Service Foods & Others 29

30 Business Results for FY2007 Management Strategies for 2010 Management Policy/Targets Strategy by Business Segment Retail Solution Business/Document Systems Business/Auto-ID & Printer business Common Policies for Group Companies Acceleration for Innovation Activities Vision for FY

31 Acceleration of Innovation Activities (i-cube PJ) Realize Sustained Growth with Profit Process Innovation / Value Innovation Technology Sales Reinforce and realize future catalog -Develop products to create sustained profits and establish business model Strengthen manufacturing -Improve product quality, supply capability, and cost competitiveness -Strengthen development capability of software -Enhance environmental management Production Improve CCC efficiency -Generate working capital by accomplishment of CCC target -Establish system to attain targets continuously 31

32 Reinforce and Realize Future Catalog [Retail Solution Business] Proposal of solution business for future shops [Document Systems Business] Provide MFP pursuing adaptation to environment and next generation network Promote designing and concretizing new business vision and product concept for further business growth [Auto-ID & Printer Business] Offering new products based on RFID technology focusing on high performance recognition technology [Ink-jet Head Business] Provide next generation products pursuing high resolution and high reliability (print electronics business, etc) 32

33 7 Sub-PJ to Strengthen Manufacturing Strengthen basic operations -Advancing quality/reliability/cs PJ -Optimizing global production and logistics PJ -Strengthening procurement PJ -Environmental management PJ Significant advance of strategic operations -Design and manufacturing process innovation PJ -Strengthening software development PJ -Standardization of PF/parts PJ 33

34 Vision for FY2010 Sales 570 billion Yen FY CAGR 5.0% Operating Income 32 billion Yen FY07 Result 26.1 billion Yen Operating Income to Sales 5.6 % FY07 Result 5.3% 34

35 This Mid-term Business Plan is based on information currently available. Therefore, Toshiba TEC wishes to caution that actual results may differ materially from this presentation. 35