A VIEW TO THE FUTURE 14 TOSHIBA CORPORATION A VIEW TO THE FUTURE Our mid-term business plan, announced in March 2003, identifies two high-growth domains, digital products and electronic devices In FY 2005, the last year of the plan, we anticipate consolidated sales of ¥6,600 billion and consolidated operating income of ¥270 billion. In achieving that, and an average annual growth rate of 8%, we expect our high-growth domains to secure a top- three position in terms of global sales in all major business areas, and to generate consolidated sales of ¥4,320 billion and consolidated operating income of ¥180 billion. Individual businesses will have the freedom to develop the business model best suited to their competitive environment and to promoting accelerated growth. Mobile Communications Company Vision and Strategy Toshiba’s Growth Business Domains Digital Products Businesses Markets, Products and Technology The digital products domain has a crucial mis- sion: to meet the emergence of ubiquitous networks with innovative mobile and wireless solutions that secure leading positions in glo- bal markets. Businesses in the domain will draw on the core competencies of our in-house companies, in such areas as video image compression, speech recognition and nanotechnology, to promote differentiated technologies that sup- port winning business strategies. Mobile communications is an attention-getter everywhere, not least in Japan, where services include mobile Internet connectivity and transmission of still and moving pictures from camera-equipped mobile phones. Toshiba brings broad capabilities to this business, not least the fusion of movie recording and trans- mission with the AVC5 technologies of audio, visual, computer, communications, camera, card and content. This ability supports our continuous delivery of high value-added mul- timedia mobile phones to key regional markets. We are confident that the know-how we have cultivated and the strategies we are promoting will prove to be winners, allowing us to raise market share, increase profitability and establish Toshiba in the top three in the world multimedia mobile phone market. In a domestic market driven by replacement demand, Toshiba is carving out a steadily growing market share. In 2002 we advanced to fourth position in overall sales, with approxi- mately 26% of the NCC (New Common Carrier) market. Our goal for 2003 is to con- tinue improving on core technologies that support us in the early launch of flagship mod- els that can define the direction of the industry and secure our technological and market lead- ership Overseas, we will bring the technologies that succeed in Japan to full-featured mobile phones for the global market. We will seek to optimize the effective allocation of our re- sources and to boost our international With the January 2003 release of the “dynabook C7” into the Japanese market, Toshiba took portable computing to the next level by making user comfort the core design concept. A Clear Super View LCD offers striking visual reproduction that is complemented by high-end specs, including an Intel Pentium III processor and a 40GB hard disk drive.