TVC Q: What exactly is Toshiba Value Created and how do you use in restructuring your business? A: TVC is management tool that we developed to gauge the value creation of our businesses. Basically, it measures results against the cost of capital invested in each business. Any busi- ness that shows worsening TVC for two consecutive fiscal halves is designated as requiring monitoring and is encouraged to imple- ment improvement measures. If TVC continues to worsen for a further two consecutive fiscal halves, the business becomes a “selected business” that is subject to measures that include merger in a joint venture with another company, sale, or with- drawal from the business. Withdrawal from business Withdrawal from commodity DRAM business Established JV to assure survival Aerospace business JV with NEC Corporation Power transmission and distribution JV with Mitsubishi Electric Corporation Established JV to strengthen competitiveness LCD business JV with Matsushita Electric Industrial Co., Ltd. 9