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Toshiba Defines Corporate Goals Through 2006 Fiscal Year
Apr 13, 2004
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Toshiba Corporation has announced key corporate goals through its 2006 fiscal year and a set of major initiatives that the company says it plans to implement in support of the basic strategic direction defined in its March 2003 mid-term business plan.

In its mid-term business plan for the 2003-2005 fiscal years, which the company announced in March 2003, Toshiba defined three major business domains: digital products, electronic devices, and social infrastructure. The company says its latest measures build on this while it works to establish digital product strategies. They are as follows:

  • In digital products businesses, Toshiba will promote proactive collaboration with electronic devices operations, with the goal of reinforcing its visual products business and establishing it as a major source of profits by 2006 alongside its PC business. Toshiba says it intends to attain this goal by taking full advantage of its core technologies in visual and imaging products, data storage, and electronic devices.

  • In electronic devices businesses, the company says will continue to devote substantial management resources "to further sharpen its competitiveness and enhance collaboration with digital products operations."

  • In social infrastructure businesses, Toshiba says it will actively seek business opportunities in China, Southeast Asia, and new business areas. In Europe and North America the company also says it will expand the scale of rehabilitation businesses to enhance the efficiency of power plants.

  • The company has identified a total of 93 strategic technologies and products that will drive future profits, and defined a strategic product map that will support the timely introduction of successive products.

    Toshiba defined the following as its goals to achieve through the 2006 fiscal year:
  • Consolidated sales: 6,200 billion yen (approx. U.S. $ 58.25 billion).
  • Operating income: 280 billion yen (approx. $2.6 billion).
  • Debt/equity ratio: 100 percent at the end of March 2007.
  • Capital expenditure: 1 trillion yen (approx. $9.4 billion) throughout 3 years largely on digital products and electronic devices fields.
  • R&D expenditure: 1.1 trillion yen throughout 3 years. A major emphasis will be placed on collaboration between digital products and electronic devices fields.
  • Overseas sales ratio: 50 percent of total sales. Expansion of business in China will be a driving force, according to the company.

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