Toshiba : Business Strategy of Toshiba Group (PDF)

Toshiba Group IR Day 2022

Business Strategy of Toshiba Group

February 7, 2022

Toshiba Corporation

President and CEO

CFO

Satoshi Tsunakawa

Masayoshi Hirata

Forward-looking Statements and Other Cautionary

• This document has been prepared solely for the purposes of providing information regarding the strategic reorganization described herein ("Reorganization") and does not constitute an offer to sell or a solicitation of an offer to buy any security of Toshiba Corporation ("Toshiba"), its subsidiaries or any other company in Japan, the United States or any other jurisdiction.
• This document has been translated from the Japanese-language original document for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.
• This document contains forward-looking statements and prospects concerning the future plans, strategies, and performance of Toshiba group.
• These statements are not historical facts; rather, they are based on assumptions and judgments formed by the management of Toshiba group in light of currently available information. They include items which have not been finalized at this point and future plans which have yet to be confirmed or require further consideration.
• Since Toshiba group promotes business in various market environments in many countries and regions, its activities are subject to a number of risks and uncertainties which include, but are not limited to, those related to economic conditions, worldwide competition in the electronics business, customer demand, foreign currency exchange rates, tax and other regulations, geopolitical risk, and natural disasters. Toshiba therefore cautions readers that actual results may differ from those expressed or implied by any forward-looking statements. Please refer to the annual securities report (yuukashoken houkokusho) and the quarterly securities report (shihanki houkokusho) (both issued in Japanese only) for detailed information on Toshiba group's business risks.
• Unless otherwise noted, all figures are 12-month totals on a consolidated basis.
• Results in segments have been reclassified to reflect the current organizational structure, unless stated otherwise.
• Since Toshiba is not involved in the management of Kioxia Holdings Corporation (formerly Toshiba Memory Holdings; hereinafter "Kioxia") and is not provided with any forecasted business results for Kioxia, Toshiba group's forward-looking statements concerning financial conditions, results of operations, and cash flows do not include the impact of Kioxia.
• The execution of the Spin-off described in this document is subject to approval at Toshiba's general shareholders' meeting and the fulfillment of all review requirements of the relevant regulatory authorities.
• Depending on the applicable laws and regulations (including securities listing regulations and U.S. laws and regulations), developments in the application, revision and enforcement of various regulatory regimes including tax regulations, interpretations by the relevant authorities, further considerations in the future and other factors, the implementation of the Reorganization may take longer than expected and there may be changes in the structure of the reorganization.

© 2022 Toshiba Corporation	2

Today's Agenda

01	Spin-off Objectives and Overview
02	Spin-off Project Team and Timeline
03	Business Portfolio Evaluation
04	Post-Spin-Off Financials
05	Important Matters on Toshiba/Infrastructure Service Co.
06	Actions on Strategic Review Committee Recommendations

Appendix

© 2022 Toshiba Corporation	3

01

Spin-off Objectives and Overview

© 2022 Toshiba Corporation	4

Issues Related to Past Toshiba

Conglomerate discount attributable to business complexity and

slowness in decision-making process

Conglomerate

Discount

Uniformed

Capital

Allocation

Slowness in

Decision-making

Process

Limited Choices for Shareholders

• Co-existenceof two businesses with different business models of infrastructure service and device
• Increase in complexity due to the existence of businesses which do not create synergies
• Uniformed capital allocation which does not incorporate optimal financial profiles and risks related to two distinct businesses
• Slowness in decision-making process, led by management from different business backgrounds
• Shareholders who are interested only in individual businesses have no option but invest in Toshiba stock as a whole

© 2022 Toshiba Corporation	5