AT A GLANCE 13 TOSHIBA CORPORATION Business Strategies We will secure our position among the global leaders through effective mobile and wireless solutions strategies and by channeling resources into products for ubiquitous networks. In products, our emphasis is on high-growth areas such as digital con- sumer products and mobile equipment, and on markets in China and Asia, where we anticipate substantial growth and important customers in the global market. As a Toshiba Group core industry, we will work for high growth and sustained profitability. Structural reorganization will support efficient allocation of management resources and promote an improved cost structure and strengthened profitability. As we work to expand overseas business we will also devel- op new businesses that will support a stable base of profits. Industrial and Power Systems & Services Company:  The focus of our expansion strategy will be on growth in China and other Asian markets. We will enter Japan’s power generation business and pro- mote further development of environmentally friendly systems and expansion into other new businesses. Social Network & Infrastructure Systems Company:  Broadcasting, com- munications and image recognition hardware will be our springboard for an overseas expansion of our systems solutions business that will assure maintained stable profits. With the intent of reorganizing and strengthening our overseas busi- ness and overall marketing, our October 2003 reorganization of the home appliance business establishes a Marketing New Company. This unifies marketing at four businesses and affiliates: Home Appliances (White Goods) New Company, Toshiba Lighting & Technology Corpora- tion, Toshiba Carrier Corporation and Toshiba Battery Co., Ltd. Toshiba Elevator and Building Systems Corporation:  We will reinforce relations with Kone of Finland, our strategic business partner. We will continue to introduce competitive products, such as machine room-less elevators, and work towards global business logistics. e-Solutions New Company:  The unification of marketing, technology and development allows us to make the most of our wide-ranging expertise, sophisticated technologies, and high-level reliability, and supports our ability to offer advanced solutions and to reinforce a comprehensive package-solution business. Medical Systems New Company:  We will initiate a system that sus- tains global consistency in all aspects of our business, from planning to development, production, marketing and maintenance services. As a Total Medical Solutions Company we will deliver exclusive services and achieve early market introduction of excellent products. Mobile Communications Company:  Continuous investments in so- phisticated, high-value-added products will assure we maintain a high market share and strengthen profitability. Development of ad- vanced products will support business expansion in the two key markets we have recently entered, Europe and China. Digital Media Network Company:  The ability to meet the emergence of ubiquitous networks with competitive products based on techno- logical innovations and the integration of wireless and broadband technologies will drive strategies for market leadership and contin- ued growth. Semiconductor Company:  Three product areas sustaining growth and high profitability—discrete devices, analog ICs and NAND flash memory—will support us in expanding solutions that build our SoC business and assuring that we continue to number among the world’s top-three companies in sales. Toshiba Matsushita Display Technology Co., Ltd.:  A strategic focus on small- and medium-sized displays and further cost reductions in manufacturing low temperature polysilicon LCDs will bring us a significant improvement in profitability. The Network Services & Contents Control Center unifies management of the network service business, content business and media services business. (¥ billion) Net Sales FY 01 1,885.3 - 1.9 FY 02 2,073.0 24.8 2,180.0 50.0 FY 03 (forecast) Operating Income (Loss) (¥ billion) Net Sales FY 01 1,044.4 - 175.2 FY 02 1,274.4 31.9 1,330.0 55.0 FY 03 (forecast) Operating Income (Loss) (¥ billion) Net Sales FY 01 1,930.9 41.1 FY 02 1,822.6 39.2 1,740.0 42.0 FY 03 (forecast) Operating Income (Loss) (¥ billion) Net Sales FY 01 655.7 10.2 FY 02 633.6 4.1 650.0 8.0 FY 03 (forecast) Operating Income (Loss) (¥ billion) Net Sales FY 01 484.9 11.4 FY 02 491.1 15.5 510.0 15.0 FY 03 (forecast) Operating Income (Loss)