Year ended March 31, 2022
Committed to People,
Committed to the Future.
At Toshiba, we commit to raising
the quality of life for people around
the world, ensuring progress that is
in harmony with our planet.
Our Values
Basic Commitment of Toshiba Group
Our Purpose
Do the right thing
We act with integrity, honesty and
openness, doing what’s right—
not what’s easy.
Look for a better way
We continually strive to find new and
better ways, embracing change
as a means for progress.
Always consider the impact
We think about how what we do
will change the world for the better,
both today and for generations to come.
Create together
We collaborate with each other and
our customers, so that we can grow
together.
The Essence of Toshiba
The Essence of Toshiba comprises three
elements: Basic Commitment of Toshiba
Group, Our Purpose, and Our Values.
With Toshiba’s Basic Commitment kept close to
that Toshiba Group makes in society – together
with our values, the shared beliefs that guide
our actions.
The Essence of Toshiba is the basis for the
sustainable growth of Toshiba Group and
the foundation of all corporate activities.
We are Toshiba. We have an unwavering drive
to make and do things that lead to a better world.
A planet that’s safer and cleaner.
A society that’s both sustainable and dynamic.
.
A life as comfortable as it is exciting
That’s the future we believe in.
We see its possibilities, and work every day to
deliver answers that will bring on a brilliant new day.
By combining the power of invention with
our expertise and desire for a better world,
we imagine things that have never been –
and make them a reality.
That is our potential. Working together,
we inspire a belief in each other and
our customers that no challenge is too great, and
there’s no promise we can’t fulfill.
We turn on the promise of a new day.
01
Toshiba Integrated Report 2022
Message from CEO
03
Message from the Chairperson of the
Board of Directors
09
History of Value Creation—Toshiba’s DNA
11
Strategies
Toshiba Group Management Policy
- Vision for Transformation -
13
Toshiba Group Technology Strategy
23
Intellectual Property
27
Business Results
Financial Highlights (Consolidated)
31
Non-Financial Highlights (Consolidated)
32
Management Organization Chart
33
Toshiba Group’s Business Activities
34
Businesses
Energy Systems & Solutions
35
Infrastructure Systems & Solutions
37
Building Solutions
39
Electronic Devices & Storage Solutions
41
Digital Solutions
43
Others
45
Sustainability
Sustainability Management
46
Material Issues and KPIs
49
Environment
51
Social
54
Governance
57
Information Disclosure Based on the TCFD
Recommendations
59
Highlights of Corporate Governance
64
Corporate Governance
65
Data Section
SASB Reference Table
77
Shareholder Information
79
Stock Information
80
Consolidated Subsidiaries and Affiliated
Companies Accounted for by the Equity
Method
81
Corporate History
82
Corporate Data
83
Editorial Policy
84
CONTENTS
02
Toshiba Integrated Report 2022
Message from CEO
03
Toshiba Integrated Report 2022
Taro SHIMADA
Representative Executive Officer,
President and CEO
October 2022
We will meet the expectations
of society
by building new businesses rooted
in our Basic Commitment
while maintaining a foundation
for innovation
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Toshiba Integrated Report 2022
Message from CEO
Putting our Basic Commitment, “Committed to People, Committed to the Future,” into practice, we will build
infrastructure that everyone can enjoy in order to help keep people’s lives safe and secure and will help to
achieve a sustainable future through carbon neutrality and the circular economy while working for social and
environmental stability via a society connected by data. As the person responsible for leading these efforts, I
would like first to discuss what needs to be valued and what needs to be done for Toshiba to truly be Toshiba.
Throughout its history, Toshiba has created many things that did not exist previously through its own inge
nuity, and has provided such creation to the society. What has made this innovation possible is by bringing
together a broad array of specialists and harnessing highly diverse R&D capabilities in the name of values that
go beyond the mere pursuit of profit. In order to exist as a company that constantly generates the next new
thing as expected by the society, we intend to build new businesses rooted in our Basic Commitment while
maintaining a foundation for innovation. In this way, we will fulfill society’s expectations.
Toward a sustainable future, we intend to maximize the power of data with a view to the further evolution
of the digital economy. This will be based on the business assets we have built up in the infrastructure sector.
Through products and services already being provided to customers, including automatic ticket gates, ETC
systems, elevators, and POS systems, we have the ability to acquire large amounts of data, and we intend to
connect this data and convert it into value. With regard to carbon neutrality initiatives, issues cannot be solved
without data for making CO2 emissions and environmental impact transparent. While expanding our data busi
ness to enhance the value of infrastructure, we will work to achieve carbon neutrality and a circular economy.
What needs to be done for Toshiba to be Toshiba
05
Toshiba Integrated Report 2022
Under the Toshiba Next Plan launched in FY2018, earnings improved and Toshiba became a company capable
of generating profit consistently. It was an outcome of our success in materializing the low hanging fruits that
can be achieved in the short term, including structural reforms and cross-functional team (CFT) activities in
procurement, sales, and other areas. To continue improving earnings going forward, the key will be to convert
to an asset-light business model while promoting value chain transformation, including product and design
modularization, and also IT systems in which IT and digital are fully utilized for the realization of business pro
cess reforms.
In addition, while making data services business a pillar of earnings, we will raise its operating income
margin to 26% toward FY2030 and use this business to generate 20% (120.0 billion yen) of the operating in
come out of 600.0 billion yen that we are projecting for the company overall.
To achieve this goal, there are two issues Toshiba needs to resolve: “internal rigidity” and “external rigidity.”
We will carry out three strategies—digital evolution (DE) to enhance services and recurring businesses, digital
transformation (DX) to build platforms based on DE, and quantum transformation (QX) to create a quantum
world where various platforms are connected across industries—in order to accommodate to changing society
along with the further evolution of the digital economy. Promoting these strategies will not be possible without
breaking through the two rigidities.
Internal rigidity is when internal organizations become siloed and do not effectively share information nor
the results of improvement activities. In today’s digital, service-oriented era, what was once the right business
unit at the time of its inception is no longer relevant, and what actually needs to be done to serve customers
became different. Separating software from hardware is the key to overcome this dilemma. Currently, the prod
uct is developed in a vertically divided organization in silos, and the software is incorporated into the hardware
and provided as a part of a system. Separating software from hardware will allow to make updates and func
tional upgrades at the software level alone. Doing so will then enable us to add variety of applications, which
will generate new services that allow customers to use functions that they only need in the amount that they
want, which will enhance recurring business and enable us to fully realize DE. Furthermore, by creating soft
ware platforms and connecting them to other companies’ hardware and applications, we will achieve DX that
further expand our data services business. Beyond that, under QX, optimal solutions are identified from com
plex interplay of various platforms created under DX through quantum technology.
On the other hand, external rigidity is the challenge that Toshiba faces because Toshiba tries to do every
thing by itself, and unable to leverage R&D diversity and convert achievements into business value. Going for
ward, through collaboration with external parties, we will ensure that values of high potential technologies
with a large market to be realized as quickly as possible.
Breaking down two types of rigidity to transform our business model
06
Toshiba Integrated Report 2022
Message from CEO
We have enormous customer access points through providing products and services in the area of infrastruc
ture, and this makes it possible for us to acquire data from both consumers and industry. This will be Toshiba’s
major market advantage in expanding data services business through DX.
For example, in businesses that start with people flow data, new services will be created by leveraging us
age data on lighting, elevators, escalators, cash registers, trains, roads, and more. In businesses based on ener
gy and CO2 data, we will harness our extremely unique position that we have from being involved at every stage
of energy business, from generation to distribution, storage, and use. This will enable us to provide more ad
vanced energy balancing function and to visualize CO2 emission in supply chains utilizing data on renewable
energy output predictions and electricity demand forecasts.
In data services business, privacy and security risks related to data handling must be considered, and con
fident systems must be established. Based on the general assumption that the right of data that comes from
people should belong to its person, and should never be used against their will, we have solicited the opinions
of specialists in the law and ethics and engaged in repeated discussions over the past several years with a view
to providing people-friendly services with high added value. We have developed systems to provide robust
data security and proactive privacy protections that put people first, not companies, and we are promoting
highly progressive initiatives ahead of other companies.
At the same time, to lay a foundation for future business development through QX, we are accelerating R&D
and actual commercialization of quantum technologies. In particular, with respect to our commercial demon
stration of quantum cryptography technology, we are in the top position globally and going forward plan to
launch services around the world simultaneously. After that, we will promote diverse development and pro
posals through collaboration between industry, academia and government to create industry through quan
tum technology. There are no other companies with QX as a core component of their strategies. This is a major
endeavor that will bring about development not only for Japan but for humanity as a whole.
Toshiba’s market superiority in data services business
Toshiba is holding discussions with potential investors and sponsors as potential partners and reviewing stra
tegic alternatives that include privatization. This process is being led by the management team but is also be
ing overseen by the Special Committee, which is made up entirely of independent outside directors in order to
eliminate arbitrariness, and on this basis we will work to ensure transparency to the full extent possible to keep
from negatively affecting competition among the potential partners.
As the Representative Executive Officer, President and CEO, I am involved in these discussions and also
participate as an observer on the Special Committee. In addition, it is the Board of Directors that will make the
final determination based on the matters reviewed by the management team and Special Committee, and as
a director I will have one vote. To maximize corporate value, we will fully consider all options, and I will faithful
ly carry out my mission.
Considering strategic alternatives for maximizing corporate value
07
Toshiba Integrated Report 2022
For a sustainable future, we will develop DE, DX, and QX, and in transforming our business structure so that the
data services business becomes a pillar of earnings, I am asking each and every employee to take an active role
in the transformation and contribute to Toshiba’s future.
At the same time, to effect a change in consciousness, I am actively encouraging employees to reduce
overtime work and take their paid vacation days. Without some leeway in how we work, working in a way that
gives rise to innovation becomes impossible and we are prevented from receiving the various inputs required
to think about new things. Going forward, working styles will be an issue that will greatly change the awareness
not only of Toshiba internally but also of society as a whole, starting with our customers.
Our Basic Commitment, “Committed to People, Committed to the Future,” is at once the expression of our
intention to realize a sustainable society. We will work to create a rich future with all of our stakeholders as our
efforts to fulfill this commitment broadly permeate society in the form of new value.
Toward a rich future with stakeholders
08
Toshiba Integrated Report 2022
I am Akihiro Watanabe, and I have been a member of the Board of Directors since June 2022, serving as Chairperson of the
Board.
In assuming the position of Chairperson, I have received words of encouragement from many people in Japan and over
seas, and I realized that Toshiba is truly a company that is loved by many people.
I used to manage an M&A advisory company listed on the First Section of the Tokyo Stock Exchange, which merged with a
U.S. company and went private in November 2021. I understand that my experience in privatizing the company I founded and
my 30-year career as an M&A advisor are highly valued, and this persuaded me to accept the position of Chairperson of Toshi
ba's Board of Directors.
My knowledge of Toshiba was limited, as I had very limited contact with the company earlier in my career. As an accountant,
my impression of the company was that it was a troubled company which had suffered many scandals in recent years. Howev
er, my perception changed dramatically when I began to study the company upon accepting the Chairperson position. That is
when I was touched by Toshiba's corporate philosophy, "Committed to People, Committed to the Future." I was so impressed
that I got goosebumps. I don't know any other company that has such a wonderful corporate philosophy, and I was really proud
that there was a Japanese company that had such an inspirational philosophy long before the words ESG and SDGs were
thought up.
I feel that Toshiba's underlying strength is its employees, including those I have met at research laboratories and factories.
They are all truly good and excellent people, and that they work enthusiastically for the benefit of customers and society. From
my own experience, I strongly believe that the power to overcome many crises lies in the power of people. The company I
founded was a venture that started out with scarce human, material, or financial resources. The only way for a venture compa
ny to survive is to maximize the capabilities of its people, and that is the job of the management. In fact, it was thanks to the
efforts of our employees that we were able to overcome numerous crises that followed its formation, including the Lehman
Shock, the Great East Japan Earthquake, Brexit, and the COVID-19 pandemic. People have told me that I took a big risk by be
coming Chairperson, however, I believe that Toshiba has a bright future because of its excellent corporate philosophy and tal
ented employees.
Now that it has been a few months since I took the job, I have come to realize that Toshiba is truly a “good” company, but
not a “strong” one. It has to address various challenges in order to become a stronger Toshiba. For example, Toshiba has an
invaluable ecosystem in Japan in which each business monetizes the innovations of the Central Research Laboratory and uses
the funds to create the next innovation. When you get down to the nitty-gritty of Toshiba's ecosystem, the current diverse busi
ness entities are giant venture funds that produce cash to generate ESG innovations. However, the scale of Toshiba has changed
due to divestments made in the past. We are now at a point where we need to explore a new way to sustain this ecosystem.
That is exactly the reason why the entire Board is seeking a strategic alternative which includes privatization as one option.
This is also a process that is designed to address the various challenges Toshiba currently faces to find the most suitable path
forward in the best interests of all stakeholders, including shareholders. We are considering all possible alternatives, free from
the influence of any particular stakeholder. The option we select must be feasible, and a strategy that allows Toshiba to grow
over the medium to long term while preserving the best of Toshiba, and leads to the generation of cash flows.
In discussing corporate value, we must not forget the non-financial values of corporate philosophy and the significance of
Toshiba's existence in society. It is most important that Toshiba pay close attention to intangible assets that are not recorded on
the balance sheet, such as R&D, patents and human resources, and to maximize their long-term value. I believe that manage
ment must show each employee the mountain we have to climb and to lead and encourage each employee to have an image
of their own personal growth and to work with excitement and dreams.
Message from the Chairperson of the Board
of Directors
09
Toshiba Integrated Report 2022
To this end, Toshiba's Board of Directors must gather all available information and draw on the wisdom of the public and its
history, and make prudent business decisions in the best interests of shareholders and all other stakeholders.
Our newly formed Board is unified in its mission to create a stronger Toshiba, and operates as one team with members from
diverse backgrounds bringing in their individual expertise and perspectives. All 12 board members are among the best in the
world. They reflect not only diversity in nationality, gender and generation, but also have diverse experience, ranging from cor
porate management, corporate restructuring, extensive knowledge of fraud-related matters, to deep insight into capital mar
kets. I am certain that the reappointed Board members, who have already had to make challenging decisions, and the new
Board members will operate with a sense of unity and mutual respect. The shareholders have shown confidence in us, and we
have a responsibility to act in the best interests of all stakeholders. To ensure a healthy and constructive debate among our
selves at this diverse Board, we aim to establish best boardroom practices, and strive to steadily improve its operation.
The job of the Chairperson and outside directors is to support and oversee the CEO and other managers as they work hard
to create value for shareholders and stakeholders. The Board and management are completely aligned on the need to maxi
mize Toshiba’s corporate value, and see the need for radical transformation in achieving this goal. In addition to this, we are at
a point in our company's history where we must address the very important topic of considering strategic alternatives.
It is no easy task to pursue the best interests of all stakeholders, including shareholders, while at the same time engaging in
sustainable management that contributes to the
development of society through business. How
ever, Toshiba has an excellent corporate philoso
phy, talented employees, and world-class direc
tors. Above all, we have stakeholders who love
Toshiba. At a time when we must tackle global
challenges such as carbon neutrality, we must
not forget that Toshiba has stakeholders beyond
the existing definition of stakeholders, namely,
the stakeholders of tomorrow's Earth.
As Chairperson of the Board of Directors, I
am committed to serving the best interests of
Toshiba and all its stakeholders, as expressed in
our corporate philosophy, “Committed to Peo
ple, Committed to the Future.” I promise to do
my utmost to support the management as it
seeks to maximize Toshiba’s corporate value.
October, 2022
Akihiro Watanabe
Outside Director
Chairperson of the Board of Directors
10
Toshiba Integrated Report 2022
Founding
In 1930, Toshiba released Japan’s
first electric washing machines
and completed Japan’s first elec
tric refrigerators. In 1955, the Com
pany also released Japan’s first
electric rice cookers.
At a time when many women’s
lives were bound to the domestic
realm, these products allowed
women to have more free time.
1960s
The automated mail processing equipment com
pleted in 1967 was the world’s first to mechanize
manual work by recognizing handwritten charac
ters, and became a forerunner of labor-saving
equipment in the advanced information society.
At the same time, it led to the widespread use
of optical character reading (OCR) technology, au
tomatic ticket gates, and other cutting-edge image
recognition technologies. In addition, research on
superconducting materials, which began in the
early 1960s, has borne fruit in the form of heavy ion
cancer treatment devices, leading to the technolo
gy for next-generation medicine.
1970s
In 1978, Toshiba completed Japan’s
first practical kana-kanji conversion
system and released Japan’s first
Japanese word processor.
The development of kana-kanji
conversion technology and high-ca
pacity storage led to mobile music
devices enjoyed by people out on the
street, e-mail, social media, and oth
er methods of communication, which
have become the norm today.
1980s
Toshiba commercialized the
world’s first laptop personal
computer in 1985, and the
world’s first NAND flash mem
ory in 1991. These develop
ments laid the foundation for
an internet-driven society.
1875
Hisashige Tanaka founded a telegraphic
equipment factory in Tokyo.
Hisashige
Tanaka
Ichisuke
Fujioka
Tanaka Engineering
Works
Hakunetsu-sha
Shibaura Engineering Works
Tokyo Denki
1890
Ichisuke Fujioka established
Hakunetsu-sha & Co., Ltd.
and manufactured Japan’s
first electric incandescent
light bulbs.
1930
Japan’s first
Completed and released
electric washing machines
and refrigerators.
Japan’s first
1978
Developed a Japanese word
processor.
Developed and launched the
laptop personal computer.
Developed the 4-megabit
NAND-type Electrically
Erasable and Programmable
Read-only Memory (EEPROM).
Developed an ultra-supercritical
high capacity steam turbine.
Completed the automated mail
processing equipment.
1967
World’s first
Tokyo Shibaura Denki
1939
Renamed Toshiba Corporation.
1984
History of Value Creation—Toshiba’s DNA
Toshiba’s roots can be traced back to the time when the heritage
of two men—Hisashige Tanaka, dubbed Karakuri Giemon (inven
tor of mechanical devices), and Ichisuke Fujioka, known as the
Thomas Edison of Japan—joined forces.
Tanaka Engineering Works (later Shibaura Engineering
Works), founded by Tanaka in 1873, and Hakunetsu-sha, estab
lished by Fujioka in 1890, were the two companies that would
eventually become Toshiba Corporation. They both were busi
ness ventures that dreamed of a bright future for Japan, aspiring
to create something never seen before that would benefit people
and society.
“Committed to People, Committed to the Future.” is the long
standing Basic Commitment of Toshiba Group that expresses our
credo since founding to always be on the watch for issues facing
society amid the changing times and resolve them through busi
ness.
Today, in our everyday lives, we are asked to be responsible
for a sustainable future. Natural disasters caused by climate
change threaten the safety and security of our lives. Social and
environmental stability are impaired by problems such as infor
mation inequality and natural resource depletion.
Toshiba’s Roots
Committed to People, Committed to the Future.
Our unwavering drive to make and do things that lead to a better world for over 140 years
Toshiba’s Technology to Turn on the Promise of a New Day
1991
World’s first
1989
World’s first
1985
World’s first
11
Toshiba Integrated Report 2022
2010s
In 2017, Toshiba developed the world’s first practical multi parame
ters phased array weather radar.
As torrential rains are caused by locally and rapidly developing
cumulonimbus clouds, they had been considered difficult to predict.
However, the multi parameters phased array weather radar makes it
possible to predict the signs of torrential rains and resulting rainfall
quickly and accurately.
2020s
In 2021, Toshiba developed the world’s largest film-based perovskite photovoltaic
module with the world’s highest power generation efficiency. The module can be in
stalled in urban areas where it is difficult to secure a large area of land, even on the
walls of buildings and condominiums and the roofs of large vehicles, which used to be
considered unsuitable for installation.
“We want to be the first to deliver products and services that make people’s
dreams come true and change society.” This passion has been the source of Toshiba’s
products and services.
Toshiba’s technology has altered the way people live and has also changed soci
ety.
Japan’s first
2020
Launched operations of
a large-scale carbon
capture and storage
facility in Omuta,
Fukuoka Prefecture*3.
Film-based perovskite
photovoltaic module
with the world’s
highest*2 power
conversion efficiency
Share of mega solar power plant installations
*1. Toshiba’s survey in June 2020
*2. Among film-based perovskite
photovoltaic modules with and
active area of over 100cm2 made
of plastic substrates, Toshiba’s
survey (as of September 10, 2021)
*3. Japan’s first carbon capture unit
to capture over 50% of total CO2
emissions from a thermal power
plant
Superconducting rotating gantry
irradiation system for heavy-ion
radiotherapy
Collaboration with QST/iQMS
Toshiba is working for a sustainable future for the earth and
its people by contributing to the realization of carbon neutrality
and a circular economy.
Specific initiatives include protecting the safety and security
of individual livelihoods by building infrastructure that is accessi
ble to everyone, and ensuring social and environmental stability
by building a society connected by data.
For many years now, Toshiba has engaged in businesses that
support essential social infrastructure, including power genera
tion, water treatment and transportation. Today, the knowledge,
technology and customer connections cultivated thorough these
businesses are invaluable assets. We will draw on them as we
continue to create previously unseen value by maximizing the
power of data.
Developed the practical
multi parameters phased
array weather radar.
2017
World’s first
Developed the 320-detector
row CT scanner.
2007
World’s first
2016
World’s first
Demonstrated quantum
cryptographic communica
tions covering the world’s longest*1
communication distance of over 600km.
2021
World’s No. 1
World’s leading scale H2 energy system
(Fukushima Hydrogen Energy Research
Field: FH2R)
2020
World’s leading scale
2021
World’s No. 1
2021
Japan’s No. 1
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Toshiba Integrated Report 2022
Toshiba Group Management Policy
- Vision for Transformation -
“Committed to People, Committed to the Future,” this is the basic commitment of Toshiba. We commit to raising the quality of life for
people around the world, ensuring progress that is in harmony with our planet.
It is important to first protect the safety and security of everyday life of each individual. It is to make a world without poverty, disasters
or conflicts. What we can do is to “build an infrastructure that everyone can enjoy.”
Once “People” are satisfied, the next level is to consider the “Planet.” Realization of social and environmental stability becomes the
next important step, and Toshiba aims to “build a society connected by data.”
After the society is further stabilized, we will move on to consider the “Future.” In other words, the greater question becomes the future
of our children, and the sustainability of people and the planet. What we can do and what we should do is to “realize carbon neutrality and
circular economy.”
As a means to realize these things that need to be done, “digital” is important. As the digital economy evolves, new social value will be
created in the future having various companies get connected across industrial boundaries.
Contribute to the achievement of carbon neutrality & circular economy through digitization
People
Safe, secure lifestyles for everyone
Poverty, human rights,
disasters, disputes
Building an infrastructure
that everyone can enjoy
Planet
Social and environmental stability
Education, equality &
fairness, climate change,
resource depletion
Building a society
connected by data
Future
For our children
Committed to People, Committed to the Future.
At Toshiba, we commit to raising the quality of life
for people around the world, ensuring progress
that is in harmony with our planet.
Achieving sustainability of
people and the planet
Social
Challenges
Achieving carbon neutrality
and a circular economy
Toshiba
Initiatives
Evolution of the digital economy
Toshiba Group’s Vision
13
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Device products
Infrastructure systems
Infrastructure services
Data services
Group total ROS
FY21
FY22
FY25
FY30
(Unit: 100 million yen)
1,590
1,700
3,600
6,000
12%
9%
5%
5%
Device products
Infrastructure systems
Infrastructure services
Data services
FY21
FY22
FY25
FY30
(Unit: 100 million yen)
33,371 33,000
40,000
50,000
Toshiba has identified the DE, DX, and QX strategy to respond to those changes.
The first stage of its development is the digital evolution (DE) to enhance services and recurring businesses. That is to be followed by
the digital transformation (DX), which is a stage to build platforms based on DE. We will further develop this into a quantum transformation
(QX), a quantum world where various platforms are connected across industries.
For FY30, we target to achieve net sales of 5.0 trillion yen, operating income of 600 billion yen, and operating income margin of 12.0%. The
target for FY25 is net sales of 4.0 trillion yen, operating income of 360 billion yen, operating income margin of 9.0%, EBITDA of 500 billion
yen, ROIC of 17%, and free cash flow of 250 billion yen.
More specifically, toward FY30, we aim to transform Toshiba into a company with a data service as the pillar that generates our earnings.
In the area of data services, we plan to achieve extremely high profitability with an operating income margin of 26%, and we expect it to
generate approximately 20% of the company’s operating income.
Net sales
Forecasting growth in the highly profitable data service business toward FY30
Operating income
Data services
ROS
26%
% of group total
20%
FY 21 Results
FY 22 Forecast
FY 25 Target
FY 30 Target
Net sales
3.34 T yen
3.30 T yen
4.00 T yen
5.00 T yen
Operating income
159 B yen
170 B yen
360 B yen
600 B yen
(ROS%)
(4.8%)
(5.2%)
(9.0%)
(12.0%)
EBITDA
244 B yen
270 B yen
500 B yen
ROIC
15.8 %
13.8 %
17.0 %
FCF
125 B yen
100 B yen
250 B yen
*1
*1
*2
*3
*4
FY 30 Target: Net sales 5.0 T yen, ROS 12.0%, Operating Income 600 B yen
Toshiba Group Mid-to-Long Term Target
*1 FY21 results and FY22 forecast includes the results and forecast of Toshiba Carrier Corporation,
*2 EBITDA = Operating income + Depreciation
*3 ROIC = (Net income - Non-controlling interest - Interest expense × (1 - tax rate) )/ (Net interest - bearing debt + Net assets)
*4 Free Cash Flow
14
Toshiba Integrated Report 2022
Toshiba Group Management Policy - Vision for Transformation -
FY18 Actual
FY19 Actual
FY20 Actual
FY21 Actual
FY22 Forecast
Beginning of
Toshiba Next Plan
COVID-19
pandemic
Semiconductor shortage
Increase in material costs
Energy
systems
Infrastructure
systems
Building
Retail &
Printing
Devices &
Storage
Digital
4 % increase overall
0%
2%
4%
6%
8%
10%
12%
Operating Income Margin by Segment
Current Status of Toshiba Group
For more than 100 years, Toshiba group has been involved in businesses that support critical public infrastructures, such as electric power
and railroads. We hold the No.1 market share in many of these businesses including water supply and sewerage systems. These business
es will be valuable assets for a digital business.
Under the Toshiba Next Plan, launched in 2018, we have been working to strengthen core profitability as Phase 1. Despite the impact of
COVID in FY20 and a shortage of semiconductors and soaring material prices in the previous fiscal year, profitability has recovered steadily
in all segments so far, and we have seen four-point improvement in the overall income margin.
In particular, the digital solutions business have shown stable improvement, which we attribute to our steady improvement efforts,
such as standardization of software development processes and utilization of overseas software development bases.
Going forward, we intend to build a stronger earning structure by expanding this successful example to the entire company.
Impact of the Toshiba Next Plan and Efforts toward Further Enhancement
of Core Profitability
2022
1970
1900
1920
*Based on internal research
Elevators
Water supply
& sewerage
Airports
Factory
Devices
Stores
Infrastructure
Railways
Energy
Broadcasting
Lighting
122
Railway Electrical equipment for domestic vehicles
years
56
Elevators
years
57
Water Supply & Sewerage
Electric Systems
years
128
Power Generation and transmission systems
years
103
Broadcasting Broadcasting systems
years
96
Store Cash registers (predecessor of POS)
years
126
Factory Industrial motors
years
59
Airport Surveillance radar system
years
66
Semiconductors and Storage
years
132
Lighting
years
Many businesses contribute to economic security by supplying core infrastructure and
key products that support industries
Steady improvement in core profitability at each segment
Digital solutions
Standardized the software
development process
Active use of overseas
software development
resources
Successful example
of earnings
improvement
which can be applied
to the entire
Toshiba group
15
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Toshiba had focused first on materializing the low hanging fruits that can be achieved in the short term, such as structural reforms and CFT
activities in procurement, sales and other areas, and has realized 180 billion yen improvement over four years starting from 2018.
Going forward, we will promote a business process reforms, including design and production and also IT system reforms to realize
these reforms as value chain transformation and work to sustainably strengthen core-profitability through a chain of two reforms. Through
these activities, we aim to improve profitability by further reducing costs of approximately 70 billion yen by FY25.
With regard to the reduction of the number of subsidiaries, we aim to achieve 40% reduction by FY25, and as of the end of April, 2022, we
have already achieved a 30% reduction.
As for initiatives related to a value chain transformation in the area of design and product modularization, we expect to achieve ap
proximately 70% by the end of FY22 toward the completion of modularization of 67 target products by FY25.
In the smart factory initiative, we are aiming to expand to all major production sites, and targeting for 65% of its production sites to
reach level 3 by FY25.
Update on Activities Aimed at Further Enhancing of Core Profitability
Expanding from CFT activities and restructuring efforts to value chain transformation
Subsidiary consolidation
Achieved 30% reduction from the 388 targeted
subsidiaries announced in November 2020.
Aiming to achieve 40% reduction by FY25.
Nov. 2020
Announcement
As of Apr. 30, 2022
FY25 Target
Target
40%
reduction
Reduced
118subsidiaries (-30%)
388
subsidiaries
270
subsidiaries
Value chain transformation
Smart factory
Definition of smart factory levels
Level 5 : Optimization
Level 4 : Prediction & forecasting
Level 3 : Cause Analysis
Level 2 : Data visualization
Level 1 : Data collection
KPI: % deployment to major sites(Level 3)
FY20
FY22 Plan
FY25 Target
*Target to reach 100% in FY28
FY20
FY22 Plan
FY25 Target
16products
Completed for 46products
67products
Design & product modularization
Anticipating approx. 70%
completion during FY22
for the 67 targeted products.
KPI: # of products modularized
12%
35%
65%
Achieving steady progress in KPIs set for each initiative
FY18
FY19
FY20
FY21
~FY25
Restructuring
CFT activities
Cumulative total
180 B yen
Cumulative total
approx.
250 B yen
FY25 Target
Operational
process reform
Design & product modularization
Smart factory
Strengthen sales and
procurement capabilities
IT system reform
ERP reform
Strengthen PLM/MES
Centralized management of
Integrated DB
Restruc
turing
Mitigate future risks through thorough portfolio management
Streamline fixed costs by optimizing personnel
Strengthen governance through reorganization of
subsidiaries
CFT
activities
Reduce the cost of sales ratio through engineering, procurement,
and manufacturing transformation
Strengthen overhead cost control through spend management
Improve operating returns through sales transformation
Continuous improvement of core profitability
through two reforms in value chain transformation
Two reforms in value chain transformation
16
Toshiba Integrated Report 2022
Toshiba Group Management Policy - Vision for Transformation -
Resolving Corporate Challenges
There are two types of rigidities as challenges for Toshiba in achieving its goals.
The entrepreneurial spirit within Toshiba
has led to many successes as the company
has challenged itself in one new area after
another. However, over time, many suc
cessful businesses have become confined
within their own business units. What was
once the right business unit at the time of
its inception, is no longer relevant in today’s
digitalized, service-oriented era.
The strength of Toshiba lies in its ability to
develop technologies that are completely
new to the world. There are many “world’s
first” that originated from Toshiba. Howev
er, Toshiba has not fully capitalized on the
business seeds. Toshiba tries to do every
thing by itself. However, it is the age of eco
systems and platforms. Rather than launch
ing a completely proprietary technologies
single-handedly, leveraging its ecosystems
to enable earlier takeoff of businesses
should lead to significantly greater corpo
rate value.
Strong dual silo
mentality
Group
company
Group
company
BU
BU
BU
BU
Silos within the organization
each pursuing its
own interests
(Group companies, BU*)
Not-invented-here
syndrome
Obsession with full or majority ownership
Issues in market selection
(focus on domestic market)
Commitment to in-house,
proprietary technologies
No business foundation
(Lack of industry connections and
business know-how)
Small size and slow growth
Limited R&D network
Internal Rigidity
Organization-related issues
Challenges: Improvement achieved by one company or BU not shared with
others due to the silo mentality under the current framework
External Rigidity
Methodology-related issues
Challenges: Inability to leverage R&D diversity and convert achievements into
business value
* BU: Business Units
17
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Other Co.
App
Other Co.
App
App
App
App
DX
Create a platform afer separating apps, sofware and hardware
DE:Digital Evolution
Current status
App
HW
HW
Other Co.
HW
SW
Create a platform
The key to change is
“Sofware Defined”
Internal
Rigidity
External Rigidity
SW
HW
SW
HW
SW
HW
SW
HW
HW
App
SW
Internal Rigidity
Organization-related issues
Software Defined Transformation
Transform businesses through “DE → DX → QX” evolution and discover new business potential from
a data-oriented perspective
Currently, the product is developed in a vertically divided organization in silos, and the software is incorporated into the hardware and
provided as a part of a system.
To take this to the digital evolution (DE), the first stage, it is important to separate the software from the hardware. This will enable us
to add a variety of applications, which will generate new services as well as to enhance the recurring businesses or providing SaaS busi
ness; these will greatly contribute to making the business more profitable.
Next, we need to standardize the software so that such software could be connected to other companies’ hardware and applications,
making it possible to create a platform. Once this is completed, then services will be greatly expanded and the scale-free network com
prised of such software will be formed; it will enable data-centric service development as the second stage, called DX. It will be extremely
asset-light and also scalable business model that will consequently allow us to achieve exponential growth.
Beyond that, various platforms under DX stage will be created, and a quantum world of quantum transformation (QX) will emerge, in
which optimal solutions are identified from a complex interplay of platforms.
Here we explain the approach to breaking through these two rigidities and resolving corporate challenges.
First, internal rigidity. We will take the steps below for software defined transformation to resolve the internal rigidity.
Aggregate software personnel dispersed throughout Toshiba group
Improve efficiency through standardized processes
Integration and optimization of software development
18
Toshiba Integrated Report 2022
Toshiba Group Management Policy - Vision for Transformation -
Reviving the company (city) without stopping the business (train)
Step 1
Step 0
Step 2
Step 3
Step 4
To DX
Create new service
businesses on the
new platform
Become “sofware
defined”: updating
functions with a
separated SW layer
Align processes and
organizations with
the SHIBUYA
approach
Energy
Solutions
Building
Solutions
Devices &
Storages
Battery
Data Business
Infrastructure
Systems
Solutions
Digital
Solutions
Retail & Printing
Solutions
To CPS
Significantly reduce
fixed costs and
digitalize development,
design,manufacturing
and procurement, and
maintenance processes
Incorporate HW
(technology) with
high market value
and restructure HW
with low market
value
Categorize HW with
high market value
and commodity
used within
the system
Visualization, analysis, organizational changes,
system reforms, and feedback
Separation of
applications,
sofware and
hardware
(and related services)
SW
HW
Consolidation of divisions
Managed services
TIRA
Toshiba IoT
Reference
Architecture
Cataloging products and
solution services
Frames
Components
System construction
and installation
Standardized work definitions
How to make
components
How to set up
Operation and
maintenance methods
Design and development standards
CommonStyle™ Methodology
Process standard
PROSQUARED™
3
Potential benefits : 1. Strengthening governance of sofware development
2. Flexible resource allocation
3. Sharing development and maintenance environments
Visualization of development maturity using the same metrics
1
2 Company-wide application of methodologies of the leading
digital solutions segment
Potential benefits : 1. Reduction of development and operation costs
2. Reduction of quality losses
The City of Shibuya is currently undergoing a major transformation. It has fundamentally been transforming the city without stopping
millions of people come and go. This is exactly what we are trying to do. We will not stop our business while we revitalize the company.
We will integrate and optimize software development.
A far greater number of software development personnel currently belong to non-digital segment and are dispersed over our 30 group
companies. And there are many things that can be improved in devilment practices and staffing. We will thoroughly improve this going
forward.
We have named this project as “SHIBUYA Project” as we call it internally.
Toshiba Group's software development
personnel
Steps to optimize software development that leads to evolution
from DE to DX
1,396
787
673
Toshiba Group companies (approx. 30 companies)
Digital segment
(Approx. 2900)
(persons)
Number of SW engineers
1,400
1,600
1,200
1,000
600
800
0
200
400
Challenges
Software development personnel are dispersed within the group
Development processes and management metrics are not stan
dardized across the organization, as each company engages in
development separately
Duplication of development efforts
Number of SW
development personnel
Approx. 7,400
(excluding internal IS personnel)
19
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Security, image analysis and AI technology
Toshiba
Technologies
and Services that
support these
operations
Liposome
VPP
Willing to provide data
Willing to provide data
Tend to
monopolize
data
Tend to
monopolize
data
Tend to
monopolize
data
Data sales to
different industries
Analyzed
by AI
Analyzed
by AI
Users
(target: global population)
Smart
Receipt™
Lighting
Meister SRM™
WMS/WES
Administration shell
Supply
Chain
Upstream
Supply
Chain
Downstream
Small to
Medium-sized
Enterprises
Materials
Manufacturing
Large
Enterprises
Disposal
Vendors
Generalist™
Automating
platform NFT
Focus businesses
that possess
human data
Elevator
POS
System
Industry data
Human data
B-to-B diamond
CO2 visualization and energy management
Toshiba
approaches
both diamonds
B-to-C diamond
Number of companies
and users
Data sales to
financial industry
Platforms emerge from the consumer diamond on the right, just as the so-called GAFA are collecting data directly from con
sumers. However, even there, there are much data that can be extracted from the hardware that so far has not yet been ac
quired. POS, lighting, elevators and other businesses will greatly contribute to the acquisition of such human data. In terms
of acquiring human data, these are our focus areas.
Furthermore, in the B2B area on the left, data acquisition has not been accomplished. Many companies try to acquire
data from large corporations in this very small end, but it is very difficult. In fact, when we take a look at successful examples
of acquiring human data, it is more reasonable to capture data from the bigger diamond.
We will tackle both these diamonds. Toshiba hopes to become a platformer in both of these areas, especially in the B2B
area where data acquisition has not been successfully accomplished yet.
This is a model of where data is generated from the DX stage. This is a graph with a number of companies and users on the
vertical axis and the supply chain on the horizontal axis. We call this “Double-diamond model.”
Double Diamond Model: Approach to Data Business
20
Toshiba Integrated Report 2022
Toshiba Group Management Policy - Vision for Transformation -
Toshiba’s strength lies in its diversity in its development. In the past, we have created and introduced products that had never existed be
fore by combining technologies in many areas.
Even today, for example, there are a number of technologies with strong business potential such as semiconductors and material
technologies that have an estimated market size of over 2.5 trillion yen. Others are copper oxide tandem PV, perovskite, NTO anode batter
ies, LiDAR, millimeter wave imaging and MEMS sensors.
However, Toshiba has not fully capitalized on the business seeds. We will promote measures to ensure that values of these high poten
tial technologies to be realized as quickly as possible.
Realizing the value of potential technologies is the way to resolve the external rigidity.
Application image
High
efficiency
x
Lightweight
Minister of Economy, Trade and Industry Award
Carbon Neutral category Grand Prix
Sensor chip
*1 Photovoltaics, *2 Estimated global market of PV panels for EV based on the expected number of EVs in 2030 ( https://www.nedo.go.jp/content/100873452.pdf ), *3 Fuji-Keizai: Trends in advanced PV de
velopment and market outlook in future(FY2020 version), *4 Niobium Titanium Oxide , *5 Estimated by Fuji-Keizai Outlook of energy, large size rechargeable batteries and materials(2020) , *6 LiDAR module
global market estimated by 3D LiDAR marketing analysis(TSR) etc., *7 Global market of security screening systems,*8 MEMS sensor global market in global forecast in 2030(SDKI Inc.)
Cu2O Tandem-type PV*1
NTO*4 Anode Batteries
Millimeter-wave Imaging
Film-Based Perovskite PV
LiDAR (Light Detection And Ranging)
MEMS Sensors
Estimated market size*5 : 0.7T yen (2030)
Estimated market size*7 : 1.3T yen (2027)
Estimated market size*3 : 0.5T yen (2030)
Estimated market size*8 : 2.1T yen (2030)
Core Techs : Cu2O(material) x Semiconductor Process
Core Techs : SCiB™ × Nb(material)
Core Techs : Radar x Signal Processing
Core Techs : Coating x Nanomaterials
Core Techs : Sensor x Packaging x Signal Processing
Core Techs : Semiconductor x MEMS
- High energy, power density,
and safety
- Prototype cell achieves more
than 1.5 times capacity
for 20Ah SCiB™
- Identifies object shapes precisely
with 2mm resolution
- Detects dangerous objects hidden
under clothes in walk-through
inspections at public areas,
buildings etc.
- Lightweight and flexible:
can be installed where current
products can not be installed
Estimated market size*6 : 1.5T yen (2030)
- 300m detection
range with palm-
sized device with
world-class image
resolution
Hydrogen gas sensors
- High-speed detection of gas
leakage, contributing to a safe
hydrogen-based society
Gyro sensors
- Small size, accurate sensing,
contributing to autonomous
mobility
Estimated market size*2 : 2.5T yen (2030)
- Tandem cell estimated
Efficiency:27.4%
Achieved EVs recharged
without plugs
*Target : 30% or more
Leveraging diverse technology development efforts to create valuable products
External Rigidity
Methodology-related issues
Realizing the value of potential technologies
Consider working with external partners in order to realize value from high potential technologies
with large expected target markets
21
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Considering partnerships to realize the value of technologies with high potential
Value obtained:
Financial returns from equity, data utilization, etc.
Framework idea for deciding between
internalization or externalization
Partner
Toshiba
Joint
Venture
Industry affiliates,
existing players In the
relevant areas of expertise
Partner B
Companies aiming to
expand in their areas of
expertise
Partner A
VC / Investors
Partner C
Ongoing provision of
cutting-edge
technologies
Management
and business know-how
Industry reach
Management and
business policies
Business assets
and experience
Not aligned
Aligned
Difficult
to
utilize
Easy
to
utilize
Externalization
(withdrawal)
Internalization
or
Externalization
(Partner-strategy or JV)
Internalization
Externalization
(Partner-Strategy or JV)
Toshiba Group has been providing products and services that supports people’s lives and society under our Basic Commitment, “Commit
ted to People, Committed to the Future.” We believe this is a mission that will not change in the future.
However, in response to the development of the digital economy and the age of ecosystems and platforms, the company must also change
through the transformation as DE, DX, and QX. We intend to transform Toshiba into a company that makes data services as pillar of its
earnings. To achieve this goal, we need to break through the two rigidities of internal and external rigidity to maximize the potential that
Toshiba Group possesses. We are promoting software defined transformation through SHIBUYA Project to separate software from hard
ware. And we show you the concrete steps that we are taking going forward. Through these transformations, we will become a company
that harnesses the power of digital and data to contribute to the realization of carbon neutrality and circular economy.
If we determine that values can be realized at an early stage through collaboration with external parties, we will consider using partners
such as companies seeking to expand their businesses in a digitalized field or existing players in that field. As a result, we believe that a
variety of value can be captured including data utilization and financial returns.
22
Toshiba Integrated Report 2022
VPP
VPP
Energy Mngt.
Energy Matching
Energy Mngt.
Energy Matching
Power Gen O&M
T&D DX
Power Gen O&M
T&D DX
Energy
storage
Energy
storage
Weather Disaster
prevention
Weather Disaster
prevention
Logistics
Logistics
Smart
manufacturing
Smart
manufacturing
Railway
IoT
Railway
IoT
AI
AI
Predictive
diagnosis
Predictive
diagnosis
Sensing
Sensing
Optimization
Optimization
Actuation
Actuation
Security
Security
Physical
Cyber
TOSHIBA SPINEX
Power
semiconductors
Nearline HDD
Compound
semiconductors
Mask Writers
(Lithography tools)
Differentiated Devices
Differentiated Components, Systems
Power
electronics
SCiB™
Hydrogen
Controllers
Solar cells
Weather radars
P2G*1 / P2C*2
Water supply
and sewage
Wind
power
Intelligent
robots
Provide clean energy solutions
Use Smartly
Generate
Transfer
Storage
Provide faster, advanced and secure infrastructure
Maintain
Prepare
Find
Protect
Energy x Digital
Infrastructure x Digital
Services
Open, Connected
Toshiba’s unique “x Digital”
Carbon neutrality has been promoted worldwide by shifting to renewable energy. In addition, since our life has been significantly influ
enced by escalation of natural disasters, aging social infrastructures, a decrease in working population, pandemics, and cyberattacks, in
frastructure resilience has been increasingly needed.
Through a good track record in productization and systematization mainly in the energy/social infrastructures field over 145 years,
Toshiba Group has cultivated research and development ability to generate “1” from “0” leveraging technological diversity, as well as com
bined strength in engineering ability to structure devices, components, and systems meeting social and customer needs as solutions.
Using such strengths, the Group will promote provision of infrastructure services centering on “TOSHIBA SPINEX” brand based on open
IoT reference architecture, leading the carbon neutrality and the realization of resilient infrastructures, guided by the Basic Commitment
“Committed to People, Committed to the Future.”
Going forward, the Group will aim at creation of products, systems, and services which contribute to creation of new social values to
ward resolution of social issues, by promoting DE/DX and QX that provide platforms using industrial and human data, with a core of differ
entiated devices, components, and systems.
Toshiba Group Technology Strategy
Toshiba Group Technology Policy
Contribute to solving social and customer issues guided by
the Basic Commitment of the Toshiba Group “Committed to People, Committed to the Future.”
The ratio of R&D expenses to sales in Toshiba Group stands at approximately 5%. Our policy on R&D is to concentrate investment on busi
ness areas of focus and take into account investment efficiency.
Energy Systems & Solutions
8%
Infrastructure Systems & Solutions
14%
Digital Solutions
4%
Others
18%
Building Solutions
14%
Electronic Devices & Storage Solutions
27%
Retail & Printing Solutions
14%
Breakdown of
R&D expense
(FY2021)
Carbon Neutral
Infrastructure
Resilience
“Committed to People, Committed to the Future.”
*1 : Power to Gas *2 : Power to Chemicals
23
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Toshiba conducts research and development that best suit the purpose, from both aspects of seeds-oriented R&D triggered by future
technologies and concepts, and needs-oriented R&D based on customer feedback and product planning. We have a research and devel
opment structure in which our relevant sites are categorized according to their role. Corporate R&D organizations that tackle basic and
fundamental research from a medium- to long-term perspective; R&D organizations of Group companies that engage in short- and mid-
term core technology development; and design and engineering divisions of Group companies that are geared to realizing products and
services. This structure is optimal for solving technological challenges.
Toshiba Group R&D Structure
Toshiba has built research and development sites not only in Japan but also in the United States, Europe, China, India, Vietnam, among
others. These sites cooperate organically across borders to conduct a wide array of cutting-edge research and development on a global
basis. In order to boost our global competitiveness, we are improving our capacity to respond swiftly to changes in the market, in our re
search and development as well. Particularly in China and the rest of Asia, where markets are expanding, we are working to locally operate
not only manufacturing sites, but also engineering sites and development sites. Going forward, our research and development in emerging
countries will create products and services that will appeal to the global market including in developed countries.
Major R&D bases in Japan and overseas
Toshiba Group R&D Structure
Design and technology
related divisions of
Group companies
Technologies targeted for products and services
After 3 years
After 5 years
Future
Customers
Sales
Procurement
Manufacturing
Product
planning
R&D organizations at
Group companies
Direct communication between
engineers and customers
Corporate
R&D organizations
Toshiba Europe Ltd.
Major R&D Facilities in Japan
Corporate Research & Development
Center
Corporate Manufacturing
Engineering Center
Corporate Software Engineering &
Technology Center
Digital Innovation Technology
Center
Energy Systems Research &
Development Center
Infrastructure Systems Research &
Development Center
Electronic Devices & Storage
Research & Development Center
Software Systems Research &
Development Center
Research & Development Center
Cambridge Research
Laboratory
Bristol Research and
Innovation Laboratory
Stationed in Israel
Cambridge, Bristol
Tel Aviv
Bangalore
Hanoi
Beijing
San Jose
Toshiba Software
(India) Private
Limited
Toshiba Software
Development
(Vietnam) Co., Ltd.
Toshiba (China) Co., Ltd.
Research & Development
Center
Toshiba America, Inc.
R&D Division
24
Toshiba Integrated Report 2022
Toward the realization of a carbon neutral society, in Japan, the Ministry of Economy, Trade and Industry announced “Green Growth Strat
egy Through Achieving Carbon Neutrality in 2050”*1 which declared the policy of increasing a percentage of renewable energy in the do
mestic power generation amount to 50-60% by 2050. Especially, to promote transportation electrification, the tandem solar cell which can
supply power necessary for operation is expected to be more needed by mobility systems such as automobiles and trains which offer only
limited installation space for a solar cell.
Tandem solar cells can raise an overall conversion efficiency by layering two solar cells as a bottom cell and a top cell to generate
power together. While the development of a highly efficient and low-cost top cell which can be layered over an existing silicon solar cell
was going ahead, Toshiba developed a low-cost transparent Cu2O solar cell*2 as a top cell for the first time in the world in 2019. This time,
Toshiba successfully realized the world’s highest conversion efficiency (PCE) of 9.5% by curbing impurities in the power generation layer
and increasing the power generation area from 3x3mm² to 10x3mm².*3 In addition, it was confirmed that the Cu2O-Si tandem solar cell with
a Cu2O solar cell layered over silicon (Si) solar cell has potential of exceeding the world’s highest PCE of 26.7%*4 in silicon solar cells. In case
of an electric vehicle (EV) equipped with the Cu2O-Si tandem solar cell, a one-time charge is estimated to enable the solar cell to power the
EV for 37km for a day.*5
Going forward, Toshiba will push ahead with the development in order to achieve the PCE of 10%, a target value of the top Cu2O cells
for high efficiency tandem solar cells (PCE=30%), entrusted by New Energy and Industry Technology Development Organization (NEDO).
Apart from the entrusted project from NEDO, Toshiba will cooperate with Toshiba Energy Systems & Solutions Corporation to aim to com
plete manufacturing technology for several inch-Cu2O-Si tandem solar cells around the same size as today’s mainstream silicon solar cells
by FY2025.
Schematic diagram of Cu2O-Si tandem solar cell
Short wavelengths
Light
Long wavelengths
Cu2O cell
(top cell)
Silicon cell
(bottom cell)
Toshiba’s newly developed Cu2O solar
cell delivers a high 9.5% PCE
Schematic of Toshiba’s Cu2O-Si tandem solar cell
Toshiba Group Technology Strategy
As R&D cases to realize a carbon neutral society and services based on industrial and people-flow data, we introduce initiatives for a trans
parent Cu2O solar cell and face recognition AI technology. In the transparent Cu2O solar cell, we have been developing a highly efficient
and low-cost tandem solar cell, and confirmed that it has potential of exceeding the world’s highest efficiency in silicon solar cells as Cu2O-
Si tandem solar cell. Furthermore, Toshiba’s unique face recognition AI achieved the highest recognition accuracy in Japanese companies
in Face Recognition Vendor Test Ongoing by National Institute of Standards and Technology.
R&D Cases to Create New Values
Toshiba Developed Transparent Cu2O Solar Cell Which Achieved the World’s
Highest Efficiency for Highly Efficient and Low-cost Tandem Solar Cell
*1 https://www.meti.go.jp/english/press/2020/1225_001.html
*2 https://www.global.toshiba/ww/technology/corporate/rdc/rd/topics/19/1901-01.html
*3 Source: Toshiba as of September 2022
*4 The world’s highest PCE of silicon solar cells as of December 2021, published in Nature Energy 2, 17032 (2017)
*5 Simplified trial calculation based on the document published by NEDO ( https://www.nedo.go.jp/english/news/AA5en_100358.html )
25
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
In the face recognition technology that Toshiba has researched and developed for many years, it was at top level in the world, and ranked
top in Japanese companies*1 in three categories of a face recognition benchmark test (FRVT Ongoing 1:1 Verification*2) hosted by National
Institute of Standards and Technology (NIST*3).
Toshiba’s unique face recognition AI to identify an individual from an image registers a face of a person to be identified with a face
database in advance to check the person in the image in real time and grants metadata. As “Kaometa®,” a face recognition AI for broadcast
ers and other media, Toshiba Digital Solutions Corporation began to provide services in April 2020. The face recognition AI supports oper
ations such as quick and accurate production of TV programs, by precisely recognizing a face of a person in an image in real time to iden
tify the person.
Toshiba’s face recognition technology could very accurately recognize an individual in “VISABORDER category,” “1:1 Verification,” a
verification test using images taken at time of entry and departure, and was ranked ninth in the world, and first in Japanese companies.
Also, in “BORDER Photos category,” a verification test using images taken at time of crossing a border, it ranked eighth in the world, and first
in Japanese companies. Furthermore, in “MUGSHOT Photos ΔT ≥12 YRS category,” a verification test using face images which degraded
over 12 years or more, it ranked ninth in the world, and first in Japanese companies.*4
Toshiba Group has offered non-contact identity verification services using the face recognition technology in various aspects. In order
to contribute to a society by providing safer, more secure and convenient services, the Group will also appropriately use extensive person
recognition technologies including technology to chase a person in reference to clothes and other appearance*5 depending on the situa
tion while paying adequate attention to privacy.
Toshiba Achieved the Highest Recognition Accuracy in Japanese Companies
in Face Recognition Vendor Test Ongoing by National Institute of Standards
and Technology
*1 https://pages.nist.gov/frvt/html/frvt11.html
*2 Face Recognition Vendor Test Ongoing Positioned as an industry benchmark test with over 350 algorithms posted from 240 organizations worldwide
*3 National Institute of Standards and Technology
*4 As of the publication of report on October 28, 2021
*5 https://www.global.toshiba/ww/technology/corporate/rdc/rd/topics/17/1708-01.html
26
Toshiba Integrated Report 2022
Cyber
Businesses
Intellectual Property
×
Service
Physical
*1: Power to Gas *2: Power to Chemicals
Utilization/Protection of data
Management of know-how
Strengthen ability to conceptualize IP strategies that
overview business schemes
Use Smartly
Generate
Expand opportunities to resolve social issues
and maximize corporate value
Enhancement of IP capabilities to support
advantageous technologies and products
VPP
Energy Mngt.
Energy Matching
Energy Mngt.
Energy Matching
Energy x Digital
Infrastructure x Digital
TOSHIBA SPINEX
Logistics
Logistics
Railway
IoT
Railway
IoT
Smart
manufacturing
Smart
manufacturing
Weather
Disaster
prevention
Weather
Disaster
prevention
Sensing
Sensing
Optimization
Optimization
Actuation
Actuation
Security
Security
Power
semiconductors
Nearline HDD
Compound
semicondctors
Mask Writers
(Lithography tools)
Differentiated Devices
Differentiated components/systems
AI
AI
Solar
cells
Provide clean energy solutions
Transfer
Storage
Maintain
Prepare
Provide faster, advanced and secure infrastructure
Find
Protect
SCiB™
Wind
power
Hydrogen
Weather
radars
Intelligent
robots
Water supply
and sewage
Controllers
P2G*1/P2C*2
Predictive
diagnosis
Predictive
diagnosis
Power Gen O&M
T&D DX
Power Gen O&M
T&D DX
Energy
storage
Energy
storage
Expand opportunities to resolve social issues and formulate IP
strategies to make a success of business (collaborative creation
with partners and utilization of IPs, etc.)
Management IP items based on IP strategies
Formulate a policy of creating patents based on IP information
analysis and IP strategies
Optimize IP portfolios in consideration of competitiveness
Free to operate throught patent clearance for other companies
Power
electronics
Toshiba Group is aiming at expanding opportunities for solving social issues and maximizing corporate values by implementing intellec
tual property (IP) strategies.
In the service segment that respectively combine Energy and Infrastructure with Digital, it is important to expand opportunities for
solving social issues and formulate an IP strategy to make a success of business, taking into account the entire business including not only
the service segment but also the cyber segment and the physical segment. Therefore, Toshiba Group has emphasized on conceptualizing
IP strategies from various perspectives such as collaboration creation with business partners and utilization of IPs, overviewing the entire
business schemes.
In order to perform IP strategies, it is essential to manage IP items (patents, data, know-how, and the like). Especially, in the cyber
segment, as it would be important how to handle data and to keep and manage a secret as confidential information to prevent leakage of
expertise, we thoroughly strengthen utilization and protection of data, and management of expertise (keeping secrets).
In addition, as a basis of IP strategies, intellectual properties which support advantageous technologies and products are essential,
particularly in the physical segment. Therefore, we are focusing on enhancing IP capabilities by creating IP based on IP information anal
ysis and IP strategies, optimizing IP portfolios in consideration of competitiveness, and having free to operate throughtpatent clearance for
other companies.
Intellectual Property
Intellectual Property Strategy
Toshiba Group Intellectual Property Policy
27
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Every year, e-learning for Standards of Conduct for Toshiba Group is provided to employees of Toshiba Group in Japan for the purpose of
making them reaffirm the code of behavior including IP rights and reminding them of matters mainly related to copyrights. In FY2021,
99.4% of the employees attended the education.
In addition, we provide general education on IP rights to new employees in Corporate Entry Program (CEP), then offer education by job
rank in light of each business division.
A basic educational program has been provided for IP personnel in order to enable them to respond to practical operations in two
years through learning knowledge on domestic and overseas IP rights, preparation of patent specifications, and practical training with
office action/OJT for intermediate procedures, etc.
In addition, we provide education at our overseas subsidiaries that is appropriate for each region. For example, our Chinese subsidiar
ies provide copyright training on the proper use of software, and our U.S. subsidiaries provide intellectual property training targeting both
newly hired and existing employees.
The organizational structure of the Intellectual Property Division is composed of the Intellectual Property Office in the corporate staff divi
sion, and the intellectual property divisions at our individual laboratories and key Group companies. The Intellectual Property Office in the
corporate staff division is responsible for, related to Intellectual Property across Toshiba Group, formulating and promoting strategy and
measures, handing contracts and disputes, managing patent information and deals with matters related to intellectual property right laws,
such as the Copyright Law. Meanwhile, the intellectual property divisions of research laboratories and key Group companies pursue intel
lectual property strategies in their respective development and business domains and work to strengthen their intellectual property activ
ities in order to build a superior intellectual property portfolio. Personnel in charge of intellectual property are stationed in the United
States and China, promoting our IP strategies on a global basis.
In relation to management resource allocation including investment in intellectual properties, and implementation of strategies relat
ed to business portfolios, each Executive Officer reports a progress in initiatives to the Board of Directors, and is provided with supervision
and advice from the Board.
The Organizational Structure Concerning Intellectual Property
Education on Intellectual Properties
Board of Directors
Digital Innovation Technology Center
Cyber-Physical Systems x Design Division
Corporate Technology Planning Division
Corporate Sofware Engineering &
Technology Center
Corporate Manufacturing Engineering
Center
Corporate Research & Development
Center
Strategic Technology Planning Office
Intellectual Property Office
President & CEO
[Group companies]
Toshiba Energy Systems & Solutions Corporation
Toshiba Infrastructure Systems & Solutions Corporation
Toshiba Electronic Devices & Storage Corporation
Toshiba Digital Solutions Corporation
Toshiba Materials Co., Ltd.
NuFlare Technology, Inc.
Toshiba TEC Corporation
Toshiba Business Expert Corporation
Toshiba America, Inc.
Toshiba (China) Co., Ltd.
Personnel in charge of intellectual
property are stationed
Toshiba Elevator and Building Systems Corporation
Toshiba Lighting & Technology Corporation
Battery Division
[Corporate Staff Division]
Strategy Planning Division
Infrastructure Services Promotion Division
28
Toshiba Integrated Report 2022
Toshiba Group assesses the validity of rights in all its registered patents each year to create a patent portfolio optimized for each business
segment.
Infrastructure
Systems
16%
Retail & Printing
18%
Building
10%
Others
1%
Research &
Development Center
15%
Battery
4%
Digital
4%
Electronic Devices & Storage
18%
44,600
Patents held
by segment
44,600
Patents held
by region
Energy Systems
14%
Japan
47%
United States
17%
China
10%
Others
17%
The Toshiba brand symbolizes the corporate value of Toshiba Group, and the value of the goods and services that Toshiba Group provides.
In order to ensure that the Toshiba brand is intact, we have worked to manage trademark rights and eliminate counterfeit products.
Failure to take action against counterfeits of Toshiba products would pose not only the risk of damage to Toshiba’s brand value and
public confidence, but also the risk of customers mistaking counterfeit products as genuine, finding the purchase does not deliver the ex
pected performance, and being involved in an accident. To prevent this, we strive to eliminate counterfeit products, collaborating with
domestic and overseas anti-counterfeit organizations, and are actively appealing to local government agencies and other organizations for
more stringent control.
A majority of patents are applied for overseas, mainly in the U.S. and China, to operate business globally. In each business segment, items
to be applied for a patent are selected so that the optimal portfolio can be created based on IP strategies.
The number of patent applications over the past three years is as follows.
Global Patent Portfolio
Protection of the Toshiba Brand
20,700
Patent
applications
by region
20,700
Patent
applications
by segment
Energy Systems
10.5%
Japan
47%
Others
0.5%
Research &
Development Center
23.5%
Battery
1.5%
Digital
2.5%
Electronic Devices & Storage
17.0%
United States
24%
China
13%
Others
12%
Patent Cooperation
Treaty (PCT)
4%
Infrastructure
Systems
11.5%
Retail & Printing
24.5%
Building
8.5%
Intellectual Property
No./Component ratio of patent applications (from April 2019 to March 2022)
No./Component ratio of patents Owned (as of March 2022)
29
Toshiba Integrated Report 2022
Sustainability
Businesses
Data Section
Business Results
Strategies
Toshiba was selected as “Clarivate Top 100 Global Innovators™” in 11 consecutive years, in which top 100 innovative
companies/organizations are selected worldwide by U.K. information service company Clarivate Plc with patent data
analysis. In addition, “TOSHIBA” was selected in “Top 100 Best Protected Global Brands,” an award to select the most
impactful and best protected brand in the world through the analysis of IP data including trademark information,
global case law and digital domain name protection, which was newly announced by Clarivate.
The invention, related to an adsorbent developed to
remove radionuclides from contaminated water dis
charged from the Fukushima Daiichi Nuclear Power
Plant, won the 2021 National Commendation for In
vention – Invention Prize.
It allows for simultaneous and high-adsorbent
performance removal of radioactive cesium (Cs) and
radioactive strontium (Sr) from within the contami
nated water from the Fukushima Daiichi Nuclear
Power Plant. This invention has been realized by
achieving
improved
adsorption
performance
through crystallization control and practical strength
through granulation control. The adsorbent boasts
high-adsorbent performance and can be processed
with fewer adsorption towers than if using conven
tional products. The invention minimizes the
amount of radioactive waste generated and helps
contribute to a reduced environmental load.
Toshiba Group’s diverse state-of-the-art technologies and its brand are highly appreciated. Prominent awards received include the follow
ing:
FY2018
FY2019
FY2020
FY2021
FY2017
251
234
195
212
156
United States
4%
Europe
17%
Asia
(excluding China)
18%
Middle East
6%
China
52%
Others
3%
212
Counterfeit
product cases
responded
by region
External Recognition of Toshiba’s Intellectual Property
Breakdown of counterfeit product cases responded by region
(from April 2021 to March 2022)
Change in the number of counterfeit product cases responded
Toshiba was selected as Clarivate Top 100 Global Innovators™ 2022 and
Top 100 Best Protected Global Brands 2021
Winner of FY2021 National Commendation for Invention - Invention Prize
Invention of technology for treating contaminated waste water from nuclear power plants (Patent No. 6158014)
30
Toshiba Integrated Report 2022
FY2018
FY2019
FY2020
FY2021
FY2017
Net sales (Yen in billions)
Ratio of overseas sales (%)
43.4
40.9
42.8
3,693.5
3,389.9
41.8
3,054.4
47.1
3,337.0
3,947.6
Net sales / Ratio of overseas sales
FY2018
FY2019
FY2020
FY2021
FY2017
Equity attributable to shareholders of the Company (Yen in billions)
Shareholders’ equity ratio (%)
33.9
27.8
17.6
33.3
1,164.5
32.3
1,206.6
1,456.7
783.1
939.8
Equity attributable to shareholders of the Company /
Shareholders’ equity ratio
Net sales increased by 282.6 billion yen year on year to 3,337.0 billion yen,
reflecting higher sales year on year in all business segments, as both the
global and domestic economy has shown signs of recovery with the
eased impact of COVID-19.
FY2018
FY2019
FY2020
FY2021
FY2017
Operating income (Yen in billions)
Return on sales (ROS) (%)
35.4
130.5
86.2
1.0
3.8
2.2
3.4
104.4
4.8
158.9
Operating income / Return on sales (ROS)
FY2018
FY2019
FY2020
FY2021
FY2017
Net income (loss) (Yen in billions)
Earnings (loss) per share (Yen)
1,013.3
804.0
-236.39
-114.6
1,641.85
1,628.88
251.25
114.0
442.05
194.7
Net income (loss) / Earnings (loss) per share
Net income increased by 80.7 billion yen year on year to 194.7 billion yen,
reflecting higher operating income and an increase in equity earnings
from Kioxia Holdings Corporation, etc.
Equity attributable to shareholders of the Company increased by 42.1 bil
lion yen from the end of the previous fiscal year to 1,206.6 billion yen due
to increases in net income and comprehensive income.
FY2018
FY2019
FY2020
FY2021
FY2017
R&D expense (Yen in billions)
R&D expense to sales ratio (%)
4.5
4.7
4.5
167.5
158.9
178.7
4.9
150.5
4.6
151.9
R&D expense / R&D expense to sales ratio
R&D expense amounted to 151.9 billion yen, 1.4 billion yen higher than in
the previous fiscal year. The R&D expense to sales ratio was 4.6%, 0.3%
points down from the previous fiscal year.
Cash flows
Cash flows from operating activities increased by 104.1 billion yen year on
year to 249.2 billion yen, reflecting improvements in EBITDA and working
capital. Cash flows from investing activities increased by 17.9 billion yen
year on year to 124.5 billion yen. As a result, free cash flow increased by
86.2 billion yen year on year to 124.7 billion yen.
FY2018
FY2019
FY2020
FY2021
FY2017
Cash flows from operating activities (Yen in billions)
Cash flows from investing activities (Yen in billions)
Free cash flow (Yen in billions)
-109.3
-146.7
-264.7
-142.1 -122.6
1,430.3
1,305.4
124.9
37.4
38.5
-106.6
145.1
124.7
-124.5
249.2
For the detailed financial information, please refer to the Financial Report for the Fiscal Year ended March 31, 2022 .
Financial Highlights (Consolidated)
Operating income increased by 54.5 billion yen year on year to 158.9 bil
lion yen, reflecting higher operating income in the Energy Systems &
Soln*, Building Soln, Retail & Printing Soln, Electronic Devices & Storage
Soln, and Digital Soln, despite lower operating income in the Infrastruc
ture Systems & Soln and Others.
*Soln: Solutions
31
Toshiba Integrated Report 2022
Strategies
Sustainability
Businesses
Data Section
Business Results
Number of reports received by whistleblower system
Total GHG emissions* (Million t-CO2)
Amount of water received and rate of improvement of
the amount of water received per unit activity
Energy-derived CO2 emissions and rate of improvement
of emissions per unit activity
Number of female managers (Persons)
Percentage of female managers (%)
4.9
5.1
5.5
339
318
327
FY2019
FY2020
FY2021
Trends in the number / percentage of female exempt employees
(Toshiba and key Group companies*, section manager level or higher)
National average for electrical appliance industry
LTIFR at Toshiba Group in Japan
0.54
0.52
0.14
0.19
0.54
0.16
FY2019
FY2020
FY2021
Lost-time injury frequency rate* at Toshiba Group
in Japan*
*Sum of the figures for Toshiba Corporation, Toshiba Energy Systems & Solutions Corporation,
Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage
Corporation, and Toshiba Digital Solutions Corporation
*LTIFR: Lost Time Injury Frequency Rate, the number of lost time injuries occurring in a workplace
per 1 million man-hours worked
*Includes accidents involving part-time workers, fixed-term workers and dispatched workers
*CO2 emission coefficients for electricity are calculated using emission coefficients provided by
power companies.
*Per unit activity refers to values related to energy consumption required for manufacturing (nom
inal output, the number of products manufactured, number of persons, total floor area, etc.).
*Based on the Seventh Environmental Action Plan, FY2020 is set as the base year.
*CO2 emission coefficients for electricity are calculated using emission coefficients provided by
power companies.
*Figures in parentheses: (Number of reports to the internal secretariat / Number of reports to an
attorney’s office)
*Includes duplicate reports made to the internal secretariat
42
110
(109/1)
129
(120/9)
31
Toshiba Hotline (Cases)
Audit Committee Hotline (Cases)
148
(141/7)
34
FY2019
FY2020
FY2021
1.14
1.05
1.03
FY2019
FY2020
FY2021
Amount of water received (Million m3)
Rate of improvement of the amount of water received per unit activity (%)
FY2021
FY2020
91
100
20.0
19.0
FY2021
Emissions (Million t-CO2)
Rate of improvement of emissions per unit activity (%)
FY2020
96
100
0.85
0.90
*Based on the Seventh Environmental Action Plan, FY2020 is set as the base year.
Non-Financial Highlights (Consolidated)
32
Toshiba Integrated Report 2022
Board of Directors
Audit Committee Office
Internal Audit Div.
Infrastructure Services Promotion Div.
Strategic Planning Div.
Sustainability Management Div.
Cyber-Physical Systems x Design Div.
Information Systems Div.
Business Process Re-engineering Div.
Finance & Cash Management Div.
Accounting Div.
Legal & Compliance Div.
Project Monitoring & Oversight Div.
Human Resources & Administration Div.
Corporate Communications Div.
Information Disclosure Office.
Procurement Div.
Corporate Production Planning Div.
Komukai Complex
Fuchu Complex
Yokohama Complex
Himeji Operations
Corporate Technology Planning Div.
Corporate Research & Development Center
Corporate Manufacturing Engineering Center
Digital Innovation Technology Center
Marketing Div.
Battery Div.
Kashiwazaki Operations
Yokohama Battery Operations
WEC Div.
Kansai Branch Office
Chubu Branch Office
Kyushu Branch Office
Chugoku Branch Office
Hokuriku Branch Office
Tohoku Branch Office
Hokkaido Branch Office
Shikoku Branch Office
Kanshinetsu Branch Office
Kanagawa Branch Office
Energy Systems & Solutions
Toshiba Energy Systems & Solutions Corporation
Toshiba Plant Systems & Services Corporation
Infrastructure Systems & Solutions
Toshiba Infrastructure Systems & Solutions Corporation
Building Solutions
Toshiba Elevator and Building Systems Corporation
Toshiba Lighting & Technology Corporation
Retail & Printing Solutions
Toshiba Tec Corporation
Electronic Devices & Storage Solutions
Toshiba Electronic Devices & Storage Corporation
Digital Solutions
Toshiba Digital Solutions Corporation
Toshiba America, Inc.
Toshiba Europe Ltd.
Toshiba Asia Pacific Pte. Ltd.
Toshiba (China) Co., Ltd.
Nomination Committee
President CEO
Audit Committee
Compensation Committee
Special Committee
TOSHIBA CORPORATION
As of August 1, 2022
Management Organization Chart
33
Toshiba Integrated Report 2022
Strategies
Sustainability
Businesses
Data Section
Business Results
Retail & Printing Solutions
Toshiba Tec Corporation
Energy Systems & Solutions
Infrastructure Systems & Solutions
Building Solutions
Retail & Printing Solutions
Electronic Devices & Storage Solutions
Digital Solutions
Others
Ration in the above graph prior to elimination of inter-segment sales
17.0%
18.0%
16.0%
13.0%
24.0%
6.0%
6.0%
17.0%
27.0%
23.0%
8.0%
43.0%
16.0%
-34.0%
19.0%
17.0%
12.0%
16.0%
19.0%
7.0%
10.0%
Net sales
Operating
income
Number of
employees
Breakdown of each index for each segment (FY2021)
Toshiba Group’s Business Activities
The scope of our business embraces large-scale power generation systems for
nuclear and thermal power, along with renewable energy generation systems for
hydro, geothermal, solar, and wind power. Our related businesses include power
transmission and distribution systems that deliver electricity directly to end us
ers, Virtual Power Plant (VPP) for efficient utilization of distributed energy sourc
es, and green hydrogen energy systems that harness renewable energy.
Energy Systems & Solutions
P.35
Energy Business Domain:
Toshiba Energy Systems & Solutions Corporation
Toshiba Plant Systems & Services Corporation
For many years, we have provided products, systems, and services to public-sec
tor customers responsible for maintaining the infrastructure of essential utilities.
In coming years, we will fully embrace IoT and artificial intelligence (AI) in order to
establish safer, more secure, and more convenient social infrastructure systems.
Infrastructure System & Solutions
P.37
Social Infrastructure Business Domain:
Toshiba Infrastructure Systems & Solutions Corporation
Building Solutions
P.39
Our portfolio covers elevators & escalators for buildings and facilities, ventilation,
and lighting, all essential to the day-to-day comfort of people. Through these busi
nesses, we also offer energy-saving, environmentally conscious products and ser
vices, as well as building solutions that improve building security and reliability.
Building Solutions Business Domain:
Toshiba Elevator and Building Systems Corporation
Toshiba Lighting & Technology Corporation
Toshiba Carrier Corporation
* The business results of Toshiba Carrier Corporation are included in FY2021. However, Toshiba Carrier Corporation was
deconsolidated from Toshiba Group on August 1, 2022, on completion of a share transfer.
Electronic Devices & Storage Solutions
P.41
We are expanding our business by focusing on markets where we anticipate
steady growth, such as automotive and industrial semiconductors, large capacity
HDDs for data centers, semiconductor manufacturing equipment, and materials
and devices. By providing high-added-value products, we are helping to advance
the role of big data in society, and contributing to the realization of a carbon-neu
tral and safe, secure society.
Electronic Devices Business Domain:
Toshiba Electronic Devices & Storage Corporation
Digital Solutions
P.43
By utilizing the knowledge that Toshiba has amassed across numerous business
domains, along with cutting-edge technologies like IoT, AI and quantum related
technologies, we create digital solutions that provide our customers with new
value and services, and that enrich the wider society.
Digital Solutions Business Domain:
Toshiba Digital Solutions Corporation
34
Toshiba Integrated Report 2022
Net Sales by Segment
16%
1,000
100
800
80
600
60
400
40
200
20
0
0
568.8
568.8
31.8
31.8
493.2
493.2
10.8
10.8
559.0
559.0
35.6
35.6
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2021
FY2020
FY2019
Net Sales/Operating Income (Loss)
Regional Circular Carbon Society Model (Illustration)
In power generation systems, sales of nuclear power decreased due to the impact of differences in the
progress of processes related to safety measures. However, sales of thermal and hydroelectric power
increased due to differences in the size of overseas projects. Sales of transmission, transformation, and
distribution systems increased due to higher sales of transmission, transformation, and distribution
systems. As a result, overall sales of power generation systems increased.
In terms of profit and loss, both power generation systems and transmission, transformation, dis
tribution, etc. increased due to the impact of increased sales, resulting in an overall increase in profit
for the division as a whole.
Business Overview
Main Businesses
As of March 31, 2022
Nuclear power generation
systems
Thermal power generation
systems
Hydroelectric power
generation systems
Solar Photovoltaic systems
Transmission & Distribution
systems
In response to the call by the Global Environment Bureau, Ministry of the Environment, for “Projects to Pro
mote the Creation of Circular Carbon Society Model through CO2 Recycling,” Toshiba Corporation, Toshiba
Energy Systems & Solutions Corporation, Toyo Engineering Corporation, Idemitsu Kosan Co., Ltd., Japan CCS
Co., Ltd., and All Nippon Airways Co., Ltd. proposed a “Regional CO2 Resource Utilization Study Business
Through Electrolysis Utilizing Artificial Photosynthesis Technology,” which was subsequently adopted as a
commissioned project.
The six companies combined technology to convert carbon dioxide (CO2) to carbon monoxide (CO) devel
oped at the Toshiba Corporate Research & Development Center (Artificial Photosynthesis Technology) with tech
nology to synthesize liquid fuel from CO and hydrogen,
using it to manufacture sustainable aviation fuel and to
investigate carbon recycling business models. This initia
tive was adopted by the Ministry of Environment as a
commissioned project. Toshiba Energy Systems & Solu
tions Corporation will build a prototype of a full-scale CO2
electrolysis device and demonstrate its operation. All six
companies will create a basic plan to utilize their knowl
edge, technology, related plant equipment, and other re
sources to demonstrate the entire process from the sepa
ration and collection of CO2 to the production and
consumption of aviation fuel. Going forward, the data and
knowledge obtained from this commissioned project will
be reflected in the carbon recycling society model and
used to evaluate the feasibility of the business.
Through this demonstration project, the six compa
nies will contribute to the commercialization of a sus
tainable aviation fuel supply chain based on carbon re
cycling, as well as promoting regional revitalization.
Energy Systems & Solutions
Proposal of CO2 Resource Utilization Study Adopted by
Ministry of the Environment as a Model Business
35
Toshiba Integrated Report 2022
Strategies
Sustainability
Data Section
Businesses
Business Results
Wind Resource Analysis
Toshiba Energy Systems & Solutions Corporation is conducting a variety of initiatives in the field of offshore
wind power generation in order to help expand deployments of this technology.
In the field of wind resource analysis technology for offshore wind power generation, the company is
working on joint research with Kyushu University and Hitachi Zosen Corporation. This research utilizes Ky
ushu University’s wind resource prediction technology to measure wind condition at the wind farm, and to
analyze and evaluate both this and operational data in order to develop techniques for the evaluation of wind
speed distribution in the areas of wind farm and the amount of power generated, as well as techniques for
optimizing wind turbine layout. The results of this research have been widely acclaimed, such as by being
selected for the cover design of international journal “energies,” and winning the 54th Ichimura Prize in Sci
ence against Global Warming.
In addition, Toshiba Energy Systems & Solutions Corporation and TEPCO Renewable Power, Inc. submit
ted their joint offshore wind power operation and maintenance enhancement project (enhancement of pre
ventative maintenance / maintenance through the use of digital technology) for adoption as a New Energy
and Industrial Technology Development Organization (NEDO) Green Innovation Fund project for reducing the
cost of offshore wind power generation, for which it was accepted. Through this project, Toshiba Energy Sys
tems & Solutions Corporation seeks to develop technology to lower the cost of maintenance that can be ap
plied to floating offshore wind turbines that are expected to be constructed in the future, such as performing
external visual inspections of wind turbines remotely using
drones, using robots to automate the inspection of inside
the nacelle where the generator, etc., are located, and de
veloping offshore wind turbine integrity analysis services
that utilize measurement data from sensors, etc.
Moreover, Toshiba Energy Systems & Solutions Corpo
ration has entered into a strategic partnership agreement
with GE Renewable Energy of the U.S. By leveraging their
respective strengths to help develop the offshore wind
power generation market in Japan, the two companies
aim to contribute to the expansion of the domestic off
shore wind market and help achieve a carbon-neutral soci
ety.
Offshore Wind Power Business Initiatives
Toshiba Energy Systems & Solutions Corporation has acquired from U.S.-based GP Strategies the latter’s busi
ness department of EtaPRO™ power plant monitoring software for power generation companies.
EtaPRO™ is a real-time digital platform for improving the efficiency and reliability of power generating as
sets through empirical and physics-based digital twin technology combined with traditional vibration fre
quency analysis for detecting and diagnosing equipment deterioration or operating abnormalities in their
earliest stages. Over the past 30 years it has been deployed in 60 countries and in thermal, nuclear, hydroelec
tric, wind, and solar power plants generating approximately 700 GW.
Under the terms of the acquisition, EtaPRO™ related businesses such as software, trademarks, intellectual
properties, customer contracts, services such as maintenance and remote monitoring and the locations &
personnel associated with those operations have been transfered to a company named EtaPRO LLC, which
was established under Toshiba America Energy Systems Corporation, a U.S. subsidiary of Toshiba Energy Sys
tems & Solusions Corporation.
With this acquisition, Toshiba Energy Systems & Solutions Corporation will add the digital technologies
provided by EtaPRO™ system to its existing maintenance services, which are centered on turbine and power
generation equipment, enabling it to offer customers services that contribute to customer’s asset perfor
mance management.
Going forward it seeks to expand its services business utilizing EtaPRO™ and will enhance the extensibility
and functionality of EtaPRO™ itself.
Evaluation and analysis for offshore wind resource
affected by land terrain
Optimal layout and operation of wind turbines
Rationalization of floating wind
turbine design by integrated
analysis
Acquisition of the EtaPRO™ Power Plant Monitoring Software Business
36
Toshiba Integrated Report 2022
1,000
100
800
80
600
60
400
40
200
20
0
0
735.0
735.0
47.7
47.7
654.6
654.6
47.8
47.8
654.7
654.7
41.7
41.7
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2021
FY2020
FY2019
Net Sales/Operating Income (Loss)
Main Businesses
As of March 31, 2022
Water supply and sewage
systems
Road Systems
Telecommunication systems
Railway systems
Power distribution systems
Communication & broadcast
systems
Security & automation
systems
Motor & drive systems
Infrastructure Systems & Solutions
Net Sales by Segment
18%
Full view of the Salori Sewage Treatment Plan
Although revenues from railway and industrial systems declined due to a decline in scale, mainly in the
industrial systems business, revenues from public infrastructure increased due to an increase in the
scale of the social systems business and other factors. As a result, the segment as a whole remained
almost unchanged.
Earnings in the Public Infrastructure segment increased due to an increase in the scale of the Social
Systems business. However, operating income in the Railway & Industrial Systems segment declined as
a whole due to lower sales in the Industrial Systems segment, soaring materials costs, restructuring
costs, and an increase in overseas project costs in the Railway Business.
Business Overview
The 4th Japan Construction International Award, honored by the Minister of Land, Infrastructure, Transport
and Tourism of Japan, conferred upon Salori Sewage Treatment Plant and related facilities in Allahabad. The
Design, Build, Operate & Maintain and Transfer of the project and related facilities were undertaken by Toshiba
Water Solutions Private Limited (TWS), Toshiba Infrastructure Systems & Solutions Corporation’s subsidiary in
India.
These prizes were established by the Ministry of Land, Infrastructure, Transport and Tourism of Japan with
the aim of strengthening Japan’s competitiveness and providing support to Japanese companies pursuing
further expansion overseas, and are used to honor overseas construction projects that provide high-quality
infrastructure, or Japanese companies that are taking an active leadership role overseas. This is the first time
that such a prize has been awarded to a project in which Toshiba Infrastructure Systems & Solutions Corpora
tion has been involved.
In this project, in 2014 TWS received an order from the Uttar Pradesh Jal Nigam (state water supply and
sewerage department) in India for the design and construction of the sewage treatment plant and pump sta
tion, and the operation and maintenance of the facilities for a period of 10 years. India faces extremely serious
water problems, and TWS’s involvement in the development of sewage treatment facilities, which forms the
core of the national project for purifying the Ganges River, has attracted a positive response in local society. It
has also been acclaimed as a cornerstone for ongoing participation in oth
er projects in India. The project was also given high marks for minimizing
the footprint of the site through the use of innovative techniques to reduce
both the construction period and operating costs, while still complying
with the Indian government’s requirements for discharged water quality.
Another area that has won praise is the reduction of lifecycle costs in de
signing and constructing the plant by adopting equipment that can be eas
ily obtained and maintained in India.
We will use this award as an opportunity to further strengthen the
overseas water treatment business, primarily in India, thus helping to es
tablish a sustainable hydrological cycle and contributing to the creation of
advanced environmental communities.
A Sewage Treatment Project in India wins Japan Construction International Award
37
Toshiba Integrated Report 2022
Strategies
Sustainability
Data Section
Businesses
Business Results
Solid Insulated Switchgear
Cumulative deliveries of solid insulated switchgear manufactured and sold by Toshiba Infrastructure Systems
& Solutions Corporation have reached 2,000 units. These products do not use SF6, a gas that has potent
greenhouse effects.
Switchgear is used to receive and distribute high-voltage electricity transmitted from power plants to
buildings and factories. This equipment must have extremely high levels of safety and reliability, and previ
ously SF6 gas was widely used as an electrical insulator within its high-voltage section.
Toshiba Infrastructure Systems & Solutions Corporation has conducted intensive research into the provi
sion of environmentally friendly products in order to prevent global warming. It has been a global leader in
solid insulated switchgear that avoids the use of SF6 gas in the highvoltage
section, instead providing insulation through a covering of epoxy resin that
is based on new materials. In 2002, it launched the first generation of prod
ucts for a rated voltage of 24 kV (kilovolts), and in 2004, a product for a rat
ed voltage of 36 kV went on sale. Since that time, it has overcome numer
ous technical issues associated with the shift to higher voltages, and now
offers a lineup that includes the only product with a rated voltage of 84 kV
in the world.
We will continue to use our technical innovation and manufacturing
capabilities to pursue endless challenges going forward, supporting the
power supply needs of our customers as well as helping them to achieve
carbon neutrality.
Toshiba Infrastructure Systems & Solutions Corporation has commercialized its BISCADE™ Dongle for finger
print authentication and commenced sales activities.
The BISCADE™ Dongle is a compact device that uses fingerprint authentication to enable simple and se
cure logon to computers, tablets and other systems, eliminating the need for the user to remember an ID and
password. It can also be used with devices equipped with a USB Type-C interface.
The BISCADE™ Dongle incorporates a secure chip of the kind used in credit and other cards, a microcon
troller chip to extract and compare fingerprint features, and a fingerprint sensor. Because the comparison
between the fingerprint features stored beforehand in the secure chip and the fingerprint data acquired by the
fingerprint sensor is only performed inside the dongle, the fingerprint data does not leave the device.
This makes it possible for a single BISCADE™ Dongle to perform both
possession authentication simply by the user holding it and biometric au
thentication through fingerprint verification, which helps to enhance the
security of IT equipment to which user access must be controlled. Further
more, it is possible to safely use the important information stored on the
secure chip in the dongle in conjunction with ID verification.
In recent years, the widespread use of the internet has made security
countermeasures increasingly important. By following the commercializa
tion in 2020 of the BISCADE™ Card, a fingerprint authentication IC card,
with the commercialization of the BISCADE™ Dongle, Toshiba Infrastruc
ture Systems & Solutions Corporation continues to strengthen its lineup of
security countermeasures products using fingerprint authentication.
BISCADE™ Dongle for fingerprint authentication
Cumulative Deliveries of Solid Insulated Switchgear That Contributes to the
Prevention of Global Warming Reach 2,000 Units
Development and Commercialization of Fingerprint Authentication USB Dongle
38
Toshiba Integrated Report 2022
1,000
100
800
80
600
60
400
40
200
20
0
0
570.1
570.1
29.1
29.1
545.2
545.2
23.7
23.7
599.0
599.0
26.3
26.3
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2021
FY2020
FY2019
Net Sales/Operating Income (Loss)
Main Businesses
As of March 31, 2022
Elevators
Light fixtures
Industrial light parts
Commercial air-conditioner
Compressors
Building Solutions
Net Sales by Segment
17%
Sales of lighting decreased, but increased sales of elevators and air conditioners resulted in an overall
increase in sales.
In terms of profit and loss, despite a decline in profits from elevators and lighting, operating income
increased as a result of higher profits from air conditioning.
Business Overview
Toshiba Elevator and Building Systems Corporation has commenced operation of interior digital signage
jointly developed with Dai Nippon Printing Co., Ltd. for use in condominium and office building elevators.
This service distributes information on facilities and the local area, advertisements, and other information
to users of condominiums and office buildings. Toshiba Elevator and Building Systems Corporation is respon
sible for the installation and maintenance of the digital signage equipment, while Dai Nippon Printing Co., Ltd.
is in charge of creating content for display and soliciting advertisements.
The content displayed on the monitor is divided into three parts with
multiple items of information displayed simultaneously, so that users can
instantly grasp a variety of information. The attributes of the user are in
ferred from images acquired by a camera equipped with sensors, and the
advertisements and content distributed are optimized for that individual.
Moreover, because this service is based on a contract under which
Toshiba Elevator and Building Systems Corporation provides equipment
installation and maintenance free of charge, owners of condominiums and
facilities can easily begin the service without paying deployment or operat
ing costs, and are responsible only for minor costs such as the electricity
charges for monitors.
The goal is to install 5,000 monitors by the end of FY2022. Going for
ward, we will also use this service to offer products and services that fur
ther increase customer satisfaction.
Commencing Operation of Interior Digital Signage for Elevators
Digital signage in an elevator
Toshiba has completed the transfer of 55% outstanding shares of Toshiba Carrier Corporation to US-based
Global Comfort Solutions LLC, a subsidiary of US-based Carrier Corporation.
After the share transfer, the proportion of shares in Toshiba Carrier Corporation owned by Toshiba will be
5%, but Toshiba Carrier Corporation will continue to develop, manufacture, and sell air-conditioner systems
globally under the Toshiba brand.
Transfer of Shares of Toshiba’s Consolidated Subsidiaries in the Air-Conditioner
Business
39
Toshiba Integrated Report 2022
Strategies
Sustainability
Data Section
Businesses
Business Results
Toshiba Lighting & Technology Corporation has provided “ViewLED Solution” in which AI on cloud analyzes
images shot with a LED light with a camera “ViewLED” on a ceiling to solve issues. In November 2021, the
company started “People-Flow Analysis Service” for supporting comprehension of and improvement mea
sures for behavior of people in various facilities (warehouses, plants, and gyms, etc.) by quantifying people’s
movements and visualizing them with trajectory drawing. In the service, images of people’s movements shot
with the LED light with a camera “ViewLED” can be
remotely viewed, recorded, and managed on cloud.
By outputting drawings of people’s trajectory at arbi
trary time slot and CSV data, the flow of people can
be quantified and visualized to solve issues.
In addition to the above, “ViewLED Solution” has
provided services of intrusion detection and work
analysis. The total of three services support resolu
tion of various issues from security to an improve
ment of productivity.
Toshiba Started “People-Flow Analysis Service” Using a LED Light with a
Camera “View LED”
Three services of “ViewLED Solution”
Intrusion
Detection
(Security Alert Service)
Detect access
to a designated area
Make a tracing of
people’s movement to
visualize flow of people
People-Flow
Analysis
Recognize finger motion
to visualize operations
Work
Analysis
40
Toshiba Integrated Report 2022
1,000
100
800
80
600
60
400
40
200
20
0
0
745.6
745.6
13.4
13.4
711.3
711.3
12.5
12.5
859.8
859.8
65.7
65.7
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2021
FY2020
FY2019
Net Sales/Operating Income (Loss)
Main Businesses
As of March 31, 2022
Power devices
Small-signal devices
Optoelectronic devices
In-vehicle digital & logic
Microcomputers
Analog ICs
HDDs
Semiconductor manufactur
ing equipment
Parts materials
Electronic Devices & Storage Solutions
Net Sales by Segment
24%
Artist’s impression of the new 300-milimeter wafer fabrication facility, Kaga
Toshiba Electronics (the building on the right)
Semiconductors saw a recovery in market conditions, particularly in automotive applications, leading
to higher sales. Sales of HDDs and other products rose as a result of a recovery in plant operations and
an increase in sales to large-capacity data centers.
In terms of profit and loss, in addition to the effects of structural reforms in semiconductors, both
Semiconductors and HDDs and others saw increased sales, resulting in an increase in profit for the
segment as a whole.
Business Overview
In February 2022, Toshiba Electronic Devices & Storage Corporation made the decision to construct a new
300-mm wafer fabrication facility for power semiconductors within its Kaga Toshiba Electronics Corporation
site. From the perspective of securing the optimal production space while monitoring market trends, con
struction will be divided into two phases.
Operations are scheduled to begin by the end of FY2024 after the completion of Phase-1 construction.
When the Phase-1 facility has reached full capacity, production capacity of power semiconductors*1 is expect
ed to have expanded to 2.5 times that of FY2021.
Power semiconductors, whose role is to supply and manage power, are essential components for boost
ing the energy-saving features of all types of electrical equipment, and for
achieving carbon neutrality. Given the growth in vehicle electrification, the
automation of industrial equipment and other applications, demand is
projected to continue expanding. In order to respond to strong demand for
power semiconductors, Toshiba Electronic Devices & Storage Corporation
will make and execute successive decisions on the new facility, such as the
installation of specific equipment, the timing of the commencement of op
erations, production capacity, production plans, while monitoring market
trends.
Going forward, Toshiba Electronic Devices & Storage Corporation will
actively engage in initiatives to bolster the competitiveness of the busi
ness, such as through timely capital investment and R&D, thus helping to
achieve an energy-efficient society and carbon neutrality.
Decision to Construct a New 300-mm Wafer Fabrication Facility for the
Production of Power Semiconductors
*1
200-mm and 300-mm produc
tion line capacity (calculated
on 200-mm wafer basis)
41
Toshiba Integrated Report 2022
Strategies
Sustainability
Data Section
Businesses
Business Results
In a world first, the Toshiba Group has demonstrated improvements in recording performance through the
use of a next-generation magnetic recording technology called Microwave Assisted Switching - Microwave
Assisted Magnetic Recording (MAS-MAMR)*2 with the ultimate aim of achieving further increases in hard disk
drive (HDD) capacity.
As an important part of the information infrastructure that supports the rapid evolution of remote work
and the digitalization of society, there is a rising need for expanded data storage capacity and demand for
greater nearline HDD capacity, centered on data centers, continues to increase. As one of the technologies for
enhancing HDD recording density, the Toshiba Group is moving forward with the development of an approach
called Microwave Assisted Magnetic Recording (MAMR).
The MAS-MAMR technology employed in this demonstration uses microwaves to irradiate localized areas
of the recording media to enhance recording performance, and reflects the recent success of joint efforts by
the Toshiba Group, HDD medium manufacturer Showa Denko K. K., and HDD head manufacturer TDK Corpo
ration to improve the effectiveness of MAS-MAMR.
Using this technology, the Toshiba Group aims to achieve early commercialization of nearline HDDs with
capacities exceeding 30 TB. Going forward, the Toshiba Group will address the enormous increase in storage
needs by continuing to develop MAMR technology to increase the capacity of current nearline HDDs, while
working in parallel on next-generation recording technology.
NuFlare Technology, Inc. has begun shipments of multi-beam mask writers, which constitute the next gener
ation of electron beam mask writers. Going forward, it will expand shipments to Asia and North America,
aiming to achieve a global market share of 50% in FY2023.
Electron beam mask writers are devices for manufacturing the photomasks that form the master plates
used to transfer semiconductor circuit patterns. Photomasks are etched with minute circuit patterns. Such
circuit patterns are exposed and transferred to the wafers, which are the semiconductor material, to form cir
cuits on the wafer.
As the data-driven society evolves, there is growing demand for semi
conductors, which are needed to realize the digitalization of information,
particularly advanced semiconductors with increasingly miniaturized fea
tures. The progress of miniaturization has resulted in dramatic increases in
the volume of data contained in photomask circuit patterns, and there has
been an issue with the time taken for writing using the traditional sin
gle-beam mask writer that writes such circuit patterns to the photomask
by using one beam. By combining the writing component technology it
has developed for its single-beam mask writer with additional proprietary
technology, NuFlare Technology, Inc.’s multi-beam mask writer is able to
control 260,000 beams for high-speed, high-precision writing to achieve
superior production efficiency and reliability.
Fueled by the trend of information digitalization, the growing demand
for advanced semiconductors with increasingly miniaturized features is
expanding the market, and we can expect this new demand for electron
beam mask writers to increase going forward. By leveraging the customer
relationships and technological capabilities that it has cultivated over
many years to provide cutting-edge electron beam mask writers, NuFlare
Technology, Inc. will continue to contribute to the development of the
semiconductor industry, mankind and human society.
Multi-beam Mask Writer (MBM™-2000)
World’s First Demonstration of Significant Improvements in HDD Recording
Performance Using Microwave Assisted Switching - Microwave Assisted
Magnetic Recording (MAS-MAMR)
Commencement of Multi-beam Mask Writer Shipments
*2
MAS-MAMR: Microwave Assist
ed Switching - Microwave As
sisted Magnetic Recording.
42
Toshiba Integrated Report 2022
500
100
400
80
300
60
200
40
100
20
0
0
252.4
252.4
16.8
16.8
230.6
230.6
24.4
24.4
221.7
221.7
19.9
19.9
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2021
FY2020
FY2019
Net Sales/Operating Income (Loss)
Main Businesses
As of March 31, 2022
Digital solutions services
Digital Solutions
Net Sales by Segment
6%
QKD system
Overall, sales grew compared with the previous year, but the division as a whole saw an increase due to
a large increase in system projects for government agencies.
In terms of profit and loss, the segment as a whole saw an increase in profit due to the impact of
increased sales, etc.
Business Overview
Today’s society is seeing explosive growth in the volume of data as a result of technological progress, and the
secure communication of confidential information is an urgent issue. In order to protect individual, corporate,
and state information, the Toshiba Group has been researching and developing Quantum Key Distribution
(QKD) technology for more than 20 years, and has acquired more patents in this area than any other organiza
tion globally.
QKD is used to distribute the encryption keys that are used to protect important confidential data. In QKD,
encryption keys are transmitted over optical fibers in the form of photons (light particles). A feature of quan
tum mechanics is that photons undergo an unavoidable change in state when they come into contact with
something, and using this property enables the indisputable detection of encryption key eavesdropping by
third parties. At the instant the encryption key eavesdropping is detected the key is automatically voided and
a new one is created, so in theory it is impossible to eavesdrop an encryption key. The introduction of QKD
would enable data communication platforms to be protected from the threat of cyber attacks, and ensure the
security of data communications.
The Toshiba Group is establishing partnerships in related industries and conducting repeated demonstra
tions and testing, aiming for an early rollout of QKD in industries in the U.S., U.K., Singapore, and South Korea,
as well as in Japan. In August 2021, the Group announced a collaboration
with Singapore’s SpeQtral Pte. Ltd., and in October 2021 it announced that
it would work with the U.K.’s British Telecommunications plc to build,
demonstrate and test world’s first quantum-secured commercial metro
network. In February 2022, the Toshiba Group, JPMorgan Chase & Co., and
Ciena conducted testing on the U.S.’s first finance application execution
platform, and succeeded in demonstrating the viability of QKD.
Furthermore, in March 2022, the Toshiba Group began a joint QKD
demonstration project with KT Corporation of South Korea. Through these
collaborations, the Toshiba Group is accelerating the global rollout of QKD.
Global Rollout of the Quantum Key Distribution (QKD)
43
Toshiba Integrated Report 2022
Strategies
Sustainability
Data Section
Businesses
Business Results
Toshiba Digital Solutions Corporation has opened up its ifLink® Platform, which is a cocreation IoT platform
allowing anybody to easily build IoT (Internet of Things) services, in order to encourage community activities
that lead to the creation of greater numbers of solutions.
ifLink® refers to an IoT platform that makes it easy for anybody to build, use and provide IoT services by
allowing users to combine a wide range of generally available IoT equipment (Internet-connectible sensors,
IT-enabled home appliances, robots, etc.) with web services without the need for programming. ifLink® was
opened up to enable new services and solutions to be generated rapidly in an ecosystem of interconnectabil
ity created by its various participants, and the ifLink Open Community consortium was established in 2020 by
core members Toshiba and Toshiba Digital Solutions Corporation. With participation by more than 100 com
panies, schools, and other organizations, the community voluntarily promotes mutual links between IoT
products and web services, and the conception, testing and commercialization of ideas. In 2021 these activi
ties gave birth to ClosedBuster™*, a CO2 concentration monitoring service, as a solution for dealing with
COVID-19. ClosedBuster™ uses CO2 concentration measuring to detect, visualize, and take action with regard
to the airtightness of stores and other facilities, and is used by major restaurant chains and other organiza
tions to prevent COVID-19 from infecting or spreading to others. These activities have been praised as an ex
ample of corporations cooperating on COVID-19 countermeasures, and have received awards from multiple
organizations. In addition, the methods used
by ifLink® from the stages of conception to
testing are being considered for inclusion as
part of the high school educational curriculum
for digital transformation (DX). Going forward,
ifLink Open Community will continue to imple
ment a variety of initiatives to resolve social is
sues and to develop human resources in its
role as a community for linking corporations
and schools.
Toshiba Digital Solutions Corporation and KIOXIA Holdings Corporation have entered into an agreement to
transfer all the outstanding shares of Toshiba Corporation’s consolidated subsidiary Chubu Toshiba Engineer
ing Corporation to KIOXIA Corporation.
Chubu Toshiba Engineering Corporation is engaged in engineering operations related to the develop
ment, design, and manufacturing of semiconductors, and is also involved in the development, operation and
maintenance of semiconductor systems and other business. The stock transfer agreement was entered into
after the relevant parties came to the conclusion that the increasing sophistication of semiconductor devel
opment and system operation made integration with KIOXIA Corporation the optimal path forward for Chubu
Toshiba Engineering Corporation. The transfer was completed on June 1, 2022.
Promoting an Ecosystem of Interconnectability Being Created by Companies
etc., Which Aims to Resolve Social Issues through the ifLink Open Community
and “Democratize IoT”
Transfer of Chubu Toshiba Engineering Corporation Stock
*
ClosedBuster™ is a product of
WDS Co., Ltd.
Creating new business
Cultivating IT personnel
Solving social problems
Easy for anyone to use
(Available)
Can be used right away
(Agility)
Inexpensive to use
(Affordable)
Democratization of
the IoT
March 2020
Taro Shimada,
Representative Director
ifLink Open Community
44
Toshiba Integrated Report 2022
500
300
400
240
300
180
200
120
100
60
-60
0
0
321.5
321.5
247.5
247.5
216.5
216.5
-29.8
-29.8
-20.2
-20.2
-52.8
-52.8
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2021
FY2020
FY2019
Net Sales/Operating Income (Loss)
Main Businesses
As of March 31, 2022
Battery, etc.
Others
Net Sales by Segment
6%
20Ah-HP Cell
Sales declined due to the transfer of shares of a subsidiary under the Staff division and the deconsoli
dation of the subsidiary, resulting in an overall decline in sales.
Business Overview
Toshiba has hitherto developed a lineup of rechargeable lithium-ion batteries in the two categories of
high-power cells and high-capacity cells, and in January 2022 it began taking orders for a new SCiB™ product,
the 20Ah-HP, which combines the advantages of both types.
For rechargeable lithium-ion batteries it is generally difficult to combine energy density with high input/
output performance. High energy density is a measure of high endurance and in applications such as electric
vehicles, for example, this means a longer range. On the other hand, input/output performance (which is a
measure of instantaneous power) deteriorates, making it difficult to use in situations that require sharp in
flows or outflows of energy, such as rapid charging.
The 20Ah-HP succeeds in maintaining an energy density at the level of the 20Ah cell, one of the aforemen
tioned high-capacity cells, while reducing internal resistance by 40%, achieving approximately 1.7 times the
input performance and 1.6 times the output performance compared to the 20Ah cell. The reduction in internal
resistance results in the suppression of heat buildup when large currents are applied, enabling cooling sys
tems to be simplified and made less costly. Another advantage of SCiB™ products is that the usable capacity
range is larger than that of other rechargeable batteries, and the reduced over
voltage of the 20Ah-HP cell is a factor in increasing the range of capacities that
can be used. Moreover, because the input/output performance has been im
proved while maintaining the size of previous “highcapacity cells,” it can be used
without design changes in applications where existing “highcapacity cells” are
being used.
By combining high input/output performance with high energy density, the
20Ah-HP cell expands the range of applications open to SCiB™ products, and is
expected to be used not only in vehicles but also in a wide variety of industries,
including manufacturing and distribution systems, harbor facilities, construction,
maritime and traffic equipment, and storage systems. Going forward, Toshiba
will continue to actively develop the SCiB™ rechargeable lithium-ion battery
business for a range of different applications, including vehicles, industrial equip
ment and storage battery systems, as it contributes to achieving a carbon-neutral
society.
Launch of 20Ah-HP Rechargeable Lithium-ion Battery Cell That Delivers Both
High Energy and High Power
45
Toshiba Integrated Report 2022
Strategies
Data Section
Sustainability
Businesses
Business Results
The Basic Commitment of Toshiba Group is “Committed to People, Committed to the Future.”. This commitment is the foundation of Our
Purpose: an unwavering drive to make and do things that lead to a better world. Toshiba Group aims to solve issues facing our society
and to contribute to its development through our business.
Toshiba Group considers the long-term impact of its corporate activities on society and takes action to address the material issues we
identify. In accordance with the Standards of Conduct for Toshiba Group, we place the highest priority on life, safety, and compliance
(observance of laws, regulations, social norms, and ethics), and drive sustainability management in cooperation with our stakeholders
in order to enhance our corporate value. We comply with international standards and seek opinions from the experts thus enabling us
to make responsible decisions regarding our commitment to society.
1. Toshiba Group contributes to the sustainable development of society by developing and producing products and services which
enrich lives. It does so by bringing together its history of creativity, technological strength and advanced quality that it has long
cultivated.
2. Toshiba Group proactively works to reduce environmental impacts throughout its entire value chain with the goal of positively
addressing various global environmental issues.
3. Toshiba Group supports internationally recognized principles on human rights, and respects the human rights of every stakeholder
who contributes to its activities, including customers, shareholders and employees.
4. Toshiba Group works with suppliers to promote sustainable procurement activities which take into account such matters as human
rights and the environment.
5. Toshiba Group’s sustainability management approach incorporates a long-term perspective to protect and maintain its sustainable
growth.
6. Toshiba Group reports on its sustainability objectives, activities and results to promote a constructive dialogue and trusted relationships
with stakeholders.
October 21, 2021
Committed to People, Committed to the Future.
Toshiba Group Sustainability Policy
Toshiba Group has long positioned “Committed to People, Committed to the Future.” as the main text of our Basic Commitment, the ex
pression of our unwavering determination to contribute to society’s development through our business activities. Grounded in this com
mitment, as a member of a society that faces issues that include energy shortages, resource depletion, and climate change, we have taken
initiatives to help solve issues by considering the impact of our corporate activities on society over the long-term, rather than simply pur
suing short-term profits. To further advance the initiatives and strengthen our activities to contribute to social sustainability, we have es
tablished Toshiba Group Sustainability Policy, for promoting sustainability management and enhancing our corporate value. Toshiba
Group Sustainability Policy was resolved by the Board of Directors.
In order to develop sustainably as a company, Toshiba Group strives to strengthen E (environment), S (social), and G (governance) and
implement sustainability management as steps to build ethical and transparent management foundations. At the same time, we will make
efforts to create and provide rich value in collaboration with our various stakeholders, such as our customers, shareholders and investors,
suppliers, employees, and local communities. We conduct all corporate activities fairly and honestly, guided by the Standards of Con
duct for Toshiba Group .
Sustainability Management
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Toshiba Integrated Report 2022
Board of Directors
Supervision/Direction
Report
Sustainability Promotion
Committee
Corporate Environmental
Management Committee
Non-financial Information
Disclosure Committee
Decision making and planning of sustainability related policies
and groupwide strategies including information disclosure.
< Plan and develop groupwide sustainability strategies
and conduct monitoring >
Held twice a year
Chairperson:
Executive in charge of Sustainability
Members:
Sustainability Leaders of Toshiba and
key Group companies*
Held twice a year
Chairperson:
Executive in charge of Environment
Members:
Environmental Promotion Managers of
Toshiba and key Group companies*
Chairperson: President and CEO
Members:
Executives and managers of sustainability
related divisions
Held twice a year
Chairperson: President and CEO
Members: Executives related to Sustainability,
Presidents of key Group companies*
Managers related to sustainability
* Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation,
Toshiba Digital Solutions Corporation, Toshiba Tec Corporation, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation,
and Toshiba Plant Systems & Services Corporation
Toshiba Group Companies
Report
Implementation of
sustainability measures
Sustainability Strategy Committee
In 2003 Toshiba established an in-house organization to promote CSR, and has put in place a promotion system that covers the Group. As
companies are urged to make more effort to help solve global issues represented in the Sustainable Development Goals (SDGs) and help
create a sustainable society, we established the Sustainability Management Division in April 2021. Incorporating a sustainability perspec
tive into management, we promote ESG and SDGs activities through all of our corporate activities.
We reviewed our sustainability management structure and newly established the Sustainability Strategy Committee chaired by the
President and CEO with members comprising executives related to sustainability, presidents of key Group companies*, and managers re
lated to sustainability. Starting from FY2021, the committee meeting is held twice a year as a general rule. The Sustainability Strategy
Committee decides on strategies and measures to promote sustainability in Toshiba Group. At its meeting held in August 2021, the com
mittee discussed and identified new material issues (important issues).
Under the Sustainability Strategy Committee, we set up three committees, namely the Sustainability Promotion Committee that con
siders specific measures based on decisions made by the Sustainability Strategy Committee, develops an action plan, and monitors prog
ress; the Corporate Environmental Management Committee that has functioned since 1991; and the Non-financial Information Disclosure
Committee that approves the disclosure of ESG information to be included in our Integrated Report and Sustainability Report. The Sustain
ability Promotion Committee is chaired by the executive in charge of sustainability. The Corporate Environmental Management Commit
tee is chaired by the executive in charge of environment. As a general rule, each of the committees holds a meeting twice a year to discuss
and examine various measures that Toshiba Group is promoting.
The executive in charge of sustainability and environment regularly report the status of measures being taken and receive supervision
and advice at the Board of Directors meetings.
The main details of the initiatives undertaken at each committee meeting in FY2021 are as follows:
Sustainability Strategy Committee
Formulation of Sustainability Policy, examination and determination of KPIs based on material issues, formulation of Human Rights Policy,
revision of Procurement Policy, confirmation of measures to address climate change
Sustainability Promotion Committee
Examination of KPIs based on material issues, discussion on determination of Human Rights Policy, discussion on revision of Procurement
Policy
Corporate Environmental Management Committee
Review of Environmental Future Vision 2050, confirmation of progress on the Environmental Action Plan
* Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, Toshiba Digital Solutions Corporation, Toshiba
Tec Corporation, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, and Toshiba Plant Systems & Services Corporation.
Sustainability Management Structure
Sustainability Management Structure
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Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
The content, context, and wording of the Sustainability Policy were examined and resolved by the Board of Directors. Further, the Board of
Directors received and accepted the report on the material issues examined by the business execution side.
The Sustainability Promotion Committee monitors the progress of sustainability-related measures such as KPIs based on material issues.
In FY2021, the KPI items and their targets for FY2022 and FY2023 were examined by the committee based on the material issues reiden
tified in the year, and approved by the Sustainability Strategy Committee.
See below for material issues and KPIs.
From FY2022 onward, the Sustainability Promotion Committee will monitor the status of sustainability-related measures, such as the
achievement of KPIs, and work to further strengthen initiatives.
In order to raise sustainability awareness of employees in Toshiba Group, the President and CEO reaffirms the philosophy of Basic Com
mitment of the Toshiba Group at every opportunity, such as the start of each half-year term, at company ceremonies, and at start-of-year
addresses. The importance of implementing sustainability management is also communicated. We also conduct sustainability manage
ment-related training for newly hired employees and newly appointed managers as needed as well as annual e-learning for all employees
in line with the Standards of Conduct for Toshiba Group in areas such as the environment, information security, respect for human rights,
engineering ethics, compliance with antitrust laws and prohibition of bribery.
Toshiba Group’s Sustainability Month
Since FY2006, Toshiba Group has designated December as Sustainability Month (renamed from CSR Month in FY2020). During this month,
we hold seminars on topics such as human rights, and concentrate on social contribution activities at each of the Group companies and
business sites.
In FY2021, the President and CEO explained in his message the reidentification of the Company’s material issues and also the impor
tance of sustainability-related initiatives including active participation in those addressing climate change and social contribution activi
ties. He also spoke of his desire for every employee to reconsider how their individual work can link in with society.
During the month, Mr. Kenji Fuma, CEO of Neural Inc. gave an online seminar on the ESG and initiatives towards carbon neutrality
which companies are expected to achieve. We also utilized our internal website to distribute the content aimed at deepening knowledge
of ESG and the Toshiba Group’s sustainability management as well as seminars on human rights, and also to share examples of social
contribution activities and health and safety activities that were commended for their excellence.
Additionally, in FY2021, an annually-held Toshiba Group Volunteer Days event took place at the beginning of December, which is
around the International Volunteer Day on December 5, to provide volunteering opportunities for all Toshiba Group employees.
Moving forward, we will continue to work to raise each employee’s awareness of sustainability.
Non-financial Information Disclosure Committee
Confirmation and approval of information presented in Sustainability Report and Integrated Report
Monitoring
Increasing Employee Awareness of Sustainability
Material Issues and KPIs
Environment: For the irreplaceable global environment in which we live
Social: For respect of human rights, to nurture people and technology, and to give back to society
Governance: For further strengthening thorough governance
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Toshiba Integrated Report 2022
Vision for 2030
Materiality
For the irreplaceable global environment
in which we live
Promote corporate activities with full consider
ation for the global environment throughout our
value chain, from design, procurement, manufac
turing, logistics and sales, through to disposal.
Respond to climate change
Respond to the circular economy
Consider ecosystems
For respect of human rights, to nurture
people and technology, and to give back
to society
Encourage every Group employee to feel pride and
fulfillment in their work, and to harness creativity
and technology in collaborating with business
partners to realize rich value.
Secure, retain and train human resources
Ensure employee health and safety
Promote respect for human rights
Promote sustainable procurement
Strengthen R&D to stimulate innovation
For further strengthening thorough
governance
Practice transparent corporate governance and
optimal internal controls; and execute manage
ment with integrity, trusted by stakeholders.
Strengthen governance
Strengthen cyber resilience
The Essence of Toshiba
Standards of Conduct for Toshiba Group
Long-term
Short-term
Sustainability Policy
Management Policies
Business Strategy
Material Issues
Solving various social issues through our business
Increase corporate value & sustainable growth
Business activities & implementation of sustainability measures
Material Issues and KPIs
Guided by the Essence of Toshiba, Toshiba Group works on material issues that could impact business activities from a medium and long-
term perspective in accordance with the Sustainability Policy and promotes sustainability management that contributes to the develop
ment of society.
We have tackled the material issues identified in 2013 by regularly confirming their status. However, response to climate change is now
required on a global scale, and social issues are changing according to various perspectives as seen in the SDGs adopted by the United
Nations. Toshiba Group also reviewed its businesses. Accordingly, we re-identified new material issues in FY2021.
We position the material issues under the Essence of Toshiba and the Sustainability Policy, and will work on initiatives Group-wide.
We believe that in order for people and businesses to survive, it is vital that the earth, in which we live, is safe, stable, and a place that hu
mans can thrive. Guided by the Essence of Toshiba, our business activities contribute to finding solutions to a range of social issues and
supporting the sustainable growth of society, in consideration of not only the present global environment but also the planet in the future.
We recognize the importance of maintaining a management foundations with integrity and transparency to support our business activi
ties, and, to that end, have set out the following as material issues to be addressed by Toshiba Group so as to increase our corporate value.
Toshiba Group’s Material Issues
49
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Before re-identifying material issues, Toshiba Group extracted and organized issues with reference to the SDGs, which are universal social
issues, the Global Risks Report published by the World Economic Forum (WEF), and guidelines including the SASB Standards. We nar
rowed them down to those of priority, evaluating them by their closeness to the businesses specified in the Mid-term Business Plan that
starts from FY2022 and their importance in terms of strengthening the foundations to drive businesses. External experts then reviewed the
draft of the selected issues. In August 2021, the Sustainability Strategy Committee chaired by the President and CEO confirmed the selec
tion. The re-identified material issues were also reported to the Executive session of the Board in September 2021.
Review by external experts
Deliberations and identification by the Sustainability Strategy Committee
Report to the Executive session of the Board
Extract issues with reference to the SDGs, the Global Risks Report published by the World Economic Fo
rum, guidelines including the SASB (Sustainability Accounting Standards Board) Standards, and evalua
tion items by ESG rating agencies
Extraction of issues
Re-identification of material issues
Re-identify material issues based on how closely they are linked to Toshiba Group’s business focus areas
and the status of initiatives
In order to ensure a bright future for people and the planet, Toshiba Group is aiming to realize carbon neutrality and a circular economy.
Specifically, we will make maximum use of the power of data to build infrastructure that everyone can enjoy in the safe and secure life
and a connected data society that will ensure social and environmental stability.
We recognize that the “strengthen cyber resilience”, which is indispensable to promoting data-based business, the “strengthen R&D to
stimulate innovation”, which forms the foundation of our business, and the “secure, retain and train human resources” are material issues
especially tied to our business deeply., Toshiba Group address all our material issues including these with integrity.
The Sustainability Strategy Committee decides on KPIs in line with material issues and we work on them. The Sustainability Promotion
Committee monitors efforts related to these items to strengthen future initiatives.
KPIs
Process of Material Issues Identification
Process of Material Issues Identification
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Toshiba Integrated Report 2022
In recent years, climate change, the depletion of energy and resources, and various other environmental issues have intensified, to the
point where they threaten the safe, secure lives of future generations. With regard to climate change in particular, given the impacts of ty
phoons, floods, and droughts in many parts of the world, the movement toward carbon neutrality has been accelerated in each country.
In the face of these circumstances, companies are required to take proactive measures. In addition, countries worldwide have been trying
to address issues such as the transition to a circular economy, marine plastics, water resources, and biodiversity conservation; and soci
ety’s interest in such issues are on the rise.
As such, Toshiba Group formulated the Environmental Future Vision 2050 as a new long-term vision to address carbon neutrality, the
circular economy, and other issues from a global perspective. With the goal of “contributing to the realization of a sustainable society
through environmental management which aims to create enriched value and to ensure harmony with the earth,” the Environmental Fu
ture Vision 2050 aims to realize a sustainable society – in other words, a decarbonized society, a resource circulating society, and a society
in harmony with nature. We will promote the implementation of initiatives in three areas; “response to climate change,” “response to the
circular economy,” and “consideration of ecosystems” so as to realize the ideal situation in 2050.
Toshiba Group regards these three areas stated in the Environmental Future Vision 2050 as environmental materiality. Positioning the
environmental initiatives as material issues which would lead to an increase in corporate values, the Group will promote corporate activi
ties in consideration of the present and future global environment through the entire value chain including design, procurement, manu
facture, distribution, sale, and disposal.
For the irreplaceable global environment in which we live
Environment
Environmental Future Vision 2050
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Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
To respond to the issues of global warming, which may increase the possibility of natural disasters including typhoons, floods, tornadoes,
droughts, and sea level rise, the world is accelerating movements toward achieving carbon neutrality by 2050, which is essentially net zero
in terms of greenhouse gas (GHG) emissions. Under Environmental Future Vision 2050, Toshiba Group will promote the reduction of GHG
emissions in product manufacturing and in the use of products and services; and the reduction of GHG emissions derived from products
and services purchased in cooperation with suppliers, in order to respond to climate change throughout its entire value chain. Toshiba
Group also aims to contribute to the realization of a sustainable society by promoting businesses related to climate change adaptation
measures.
See below for details on initiatives.
See below for details on initiatives.
Respond to Climate Change
Respond to the Circular Economy
KPIs
FY2021 Achievements
FY2022 Targets
FY2023 Targets
Total GHG generated in business activities:
1.03 million t-CO2
1.02 million t-CO2
0.98 million t-CO2
Reduction rate of GHG emissions from products and services associated with
power supply (compared to FY2019)
69.3% reduction
11.4% reduction
13.6% reduction
Reductions in GHG emissions contributed by products and services associated
with renewable energy supply (cumulative total)
8.38 million t-CO2
28 million t-CO2
43 million t-CO2
Reductions in GHG emissions contributed by products and services associated
with power consumption (cumulative total)
25.64 million t-CO2
41 million t-CO2
57 million t-CO2
KPIs
FY2021 Achievements
FY2022 Targets
FY2023 Targets
Waste volume in business activities
30,000 t
25,000 t
25,000 t
Amount of plastic resources recycled in products and services (cumulative total)
808 t
1,200 t
1,800 t
Amount of resources saved in products and services (cumulative total)
110,000 t
270,000 t
400,000 t
We, as a company, are required to use limited resources with care in our production activities and cyclically use them to curb resource
consumption and environmental impact.
Under the Environmental Future Vision 2050, Toshiba Group aims to contribute to the realization of a sustainable society by reducing
waste volume in business activities, recycling used products and parts, and building circular economy business models based on solutions
that employ digital technologies, which is our focus business.
KPIs and Achievements in Environmental Field
* FY2021 achievements include figures for Toshiba Carrier Corporation.
Response to Climate Change
Response to the Circular Economy
* FY2021 achievements include figures for Toshiba Carrier Corporation.
52
Toshiba Integrated Report 2022
KPIs
FY2021 Achievements
FY2022 Targets
FY2023 Targets
Amount of chemicals discharged per unit in business activities
87% compared to
FY2020
1% improvement
compared to FY2021
1% improvement
compared to FY2022
Amount of water received per unit in business activities
91% compared to
FY2020
1% improvement
compared to FY2021
1% improvement
compared to FY2022
Consider Ecosystems
Our lives and well-being are supported by the blessings of nature. We must recognize that humans are part of the ecosystem and work
together to preserve them. At the same time, we must use natural resources in a sustainable manner so as not to exhaust or contaminate
them.
Under the Environmental Future Vision 2050, Toshiba Group will contribute to the creation of a society where humans live in harmony
with nature and continue to enjoy the blessings of ecosystems by promoting compliance with policies and regulations on chemical sub
stance management in countries around the world, proper management of water resources, and activities to conserve biodiversity on and
off the premises of its sites.
See below for details on initiatives.
* FY2021 achievements include figures for Toshiba Carrier Corporation.
Consideration of Ecosystems
53
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
KPIs
FY2021 Achievements
FY2022 Targets
FY2023 Targets
Percentage of female employees in executive and in managerial positions
(Percentage of female exempt employees)*1
5.5%
6.0%
6.5%
Set a target of 8% for FY2025
Engagement score in the employee engagement survey*1*2
63%
63%
64%
Set a target of 66% for FY2025
Number of AI experts*3
1,800
2,000
2,100
Toshiba Group has incorporated its determination to leverage its business activities towards the development of society into its Basic
Commitment, “Committed to People, Committed to the Future.”
Toshiba Group is committed to respecting the human rights of all its stakeholders who are involved in and support our business activ
ities, and encourages every Group employee to feel pride and fulfillment in their work, and to harness creativity and technology in collab
orating with business partners to realize rich value.
In particular, we have set “Secure, retain and train human resources”, “Ensure employee health and safety”, “Promote respect for hu
man rights”, “Promote sustainable procurement”, and “Strengthen R&D to stimulate innovation” as material issues along with specific KPIs
for these, and are engaged in efforts to achieve them.
*1 At Toshiba, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions
Corporation
*2 Uses the average point scores from responses to three engagement-related questions in the employee engagement survey; From FY2022, we intend to change the notation method from % to points due to
a change in the survey method
*3 At Toshiba, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, Toshiba Digital Solutions Corpora
tion, Toshiba Tec Corporation, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation
For respect of human rights, to nurture people and technology,
and to give back to society
Social
KPIs and Achievements in Social
In order that we may “turn on the promise of a new day” as stated in the Basic Commitment of the Toshiba Group, we are focusing efforts
on creating an open corporate culture in which sincere, richly diverse and autonomous human resources, displaying a passion for trans
formation, are enabled to set out a new future for the Company, work in collaboration with each other while respecting each other’s differ
ences, and work together to create new value. We are working to build a fair human resource management system, to foster and fully utilize
human resources, and to promote diversity and inclusion initiatives such that each employee is able to play an active role in the Company
with both enthusiasm and satisfaction in their work.
Secure, Retain and Train Human Resources
See below for details on initiatives.
Fair Evaluation and Talent Development
Promotion of Diversity and Inclusion
54
Toshiba Integrated Report 2022
KPIs
FY2021 Achievements
FY2022 Targets
FY2023 Targets
Fatality due to work-related accidents
1
Zero (no accidents)
Severity rate of work-related accidents*1
0.05
0.01*2 or less
Ratio of employees with metabolic syndrome*1
34.3%
28.6% of less*3 by the end of FY2025; The targets for each year up to
FY2025 should be at the same value as the previous fiscal year or less.
KPIs
FY2021 Achievements
FY2022 Targets
FY2023 Targets
Rate of human rights-related seminars and workshops for sustainability leaders
held
―
100%
100%
Participation rate in human rights education programs (e-learning) under the
Standards of Conduct for Toshiba Group
99%
100%
100%
Human rights due diligence initiatives
(a) Implementation rate of human rights impact assessments in our own compa
ny’s businesses
―
100%
―
Human rights due diligence initiatives
(b) Implementation rate of the survey on the actual conditions and the measures
for correction, prevention, and mitigation
―
―
100%
*1
*2
*1
*3
Ensure Employee Health and Safety
Respect for Human Rights
It is vital for each and every employee to maintain and strengthen both their mental and physical health in order to shine and flourish
professionally. This is only possible in a safe and comfortable work environment. We place the top priority to human life, safety and legal
compliance, and support the occupational health and safety (OHS) of employees.
In order for a company to act as a member of society, it is essential to respect human rights of various people who support society.
Guided by the Basic Commitment of the Toshiba Group, we respect the rights of all stakeholders, such as our employees, customers,
and shareholders. We support the universal principles regarding human rights and labor practices, including the Universal Declaration of
Human Rights, and respect human rights through sound business activities.
See below for details on initiatives.
See below for details on initiatives.
*1 At Toshiba, key Group companies, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, and Toshiba Plant Systems & Services Corporation
*2 At companies at which workshops are held and Group companies which have been identified as being high-risk in human rights impact assessments
*3 Group companies identified as being high-risk in human rights impact assessments
Respect for Human Rights
Ensure Employee Health and Safety
*1 At Toshiba Group companies in Japan
*2 The target value is the average value (value published by Ministry of Health, Labour and Welfare) for the electrical appliance industry (companies of 1,000 employees or more) for 2020
*3 The 2019 national average (value published by Ministry of Health, Labour and Welfare) was decided as the target value at the OHS Management Conference held in the first half of FY2020
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Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
KPIs
FY2021 Achievements
FY2022 Targets
FY2023 Targets
Percentage of new suppliers consenting to Toshiba Group Procurement
Policy
91.4%
100%
100%
Number of suppliers where we conducted our Sustainability Survey*1
(cumulative numbers)
10,885
11,400
12,000
Participation rate of Group procurement employees in sustainable
procurement training (%)*2
33%
38%
100%
KPIs
FY2021 Achievement
FY2022 Target
FY2023 Target
Ratio of R&D expenses to sales (%)
4.6%
5.0% or higher
5.0% or higher
Toshiba Group boasts a technological prowess, experience, and a proven track record in the manufacturing industry cultivated over the
course of more than 140 years of operations. Through the provision of products and services that combine our strengths in the physical
domains with our strengths in the field of AI-based digital technology, which is built on more than 50 years of research, we will contribute
to finding solutions to social issues. With the aim of realizing a safe, secure, and comfortable society for everybody, we will strengthen our
Research and Development (R&D) efforts to create the type of innovation that supports society and contributes to the advancement of an
information-driven society.
We also report on our other initiatives in the social sector.
See below.
Intellectual Properties Initiatives
Improvement of Customer Satisfaction
Quality Control for Safety and Reliability
Product Safety and Product Security
Social Contribution Activities
Promote Sustainable Procurement
Strengthen R&D to Stimulate Innovation
Toshiba Group promotes, together with its suppliers, activities to improve corporate value as well as the value of its customers through
sustainable procurement initiatives such as those that are in full compliance with laws, regulations, and social norms, and that consider
human rights, occupational health and safety, and the environment.
We request suppliers to agree with the Toshiba Group Procurement Policy and to put it into action at their companies including supply
chains, and also evaluate their CSR and sustainability initiatives. We will also provide our procurement employees with training on sustain
able procurement, and educate them about important CSR and sustainability issues in the supply chain, such as human rights, labor,
health and safety, and the environment.
See below for details on initiatives.
See below for details on initiatives.
Promote sustainable procurement
Fair Trading (Risk Management and Compliance)
Procurement
Strengthen R&D to Stimulate Innovation
R&D and Technology
*1 The number of companies is a cumulative total. Conducted 100% at key suppliers.
*2 Excluding Toshiba Tec Corporation.
Other Initiatives
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Toshiba Integrated Report 2022
KPIs
FY2021 Achievement
FY2022 Target
FY2023 Target
Percentage of outside directors on Toshiba’s Nomination Committee, Audit
Committee, and Compensation Committee
100%
100%
100%
Toshiba Group practices transparent corporate governance and optimal internal controls; and executes management with integrity, trust
ed by stakeholders.
As a sustainable company operating under the Basic Commitment of “Committed to People, Committed to the Future,” we aim to
leverage our business activities towards the development of our society and the realization of a sustainable society.
We have set “strengthen governance” and “strengthen cyber resilience” as our material issues along with specific KPIs, which we are
working to achieve through our initiatives.
For further strengthening thorough governance
Governance
KPIs and Achievements in Governance
Strengthen Governance
The basic policy and objectives of Toshiba’s corporate governance are to realize sustainable growth and raise the enterprise value of the
Group over the medium- to long-term, and to contribute to the interests of all stakeholders, including shareholders, investors, employees,
customers, business partners, creditors, and local communities.
Our Corporate Governance Guidelines stipulate that outside directors comprise a majority (50% or greater) of directors so that the
Board of Directors can appropriately perform monitoring and supervisory functions.
See below for details on initiatives.
Corporate Governance
Material Issues and KPIs
57
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Toshiba Group is engaged in businesses centered on energy, social infrastructure, electronic devices, and digital solutions, helping support
people’s lives. We consider it our responsibility to leverage the knowledge and experience we have acquired through manufacturing since
our founding, not just in the physical world but also in the online connected world that extends into all areas, in order to strengthen cyber
security, protect society, and deliver peace of mind.
To ensure total security for information, products, control, and data, Toshiba Group has adopted the concept of “cyber resilience”,
which is the ability to prepare for possible cyber-attacks and other security incidents, minimize their impact, and recover as quickly as
possible. To put this concept into practice, we have defined the following three parameters: P for “prepare,” M for “mitigate,” and R for
“respond & recover.” P denotes preparations for cyber security incidents; M signifies mitigation of a loss caused by an incident; and R indi
cates the time required to deal with and recover from an incident. To become cyber-resilient, it is necessary to promote P and M and re
duce R. To realize such cyber resilience, Toshiba Group promotes comprehensive cyber security measures from the three perspectives of
governance, security operations, and human resource development.
System performance
Time
Before an incident
During the incident
Afer the incident
Prepare
Mitigate
Respond & Recover
Identify
Protect
Detect
Respond
Recover
Preparation
Damage minimization
Prompt recovery
・Secure development and proper vulnerability
handling to improve system health
・Threat hunting to remove potential risks
・Periodic training to prepare for incidents
・Using real-time threat intelligence and
information about assets to detect malware
promptly
・Using log information for initial action to
minimize damage
・Using threat intelligence and log information
to facilitate forensic investigations
・Automating the SIRT process to check for
oversights and achieve prompt recovery
KPIs
FY2021 Achievement
FY2022 Target
FY2023 Target
Self-assessment of cyber security management maturity*
3.2
Higher than previous
fiscal year
Higher than previous fiscal year
(upon reaching 4, remain at 4 or higher)
Strengthen Cyber Resilience
* Self-assessment of cyber security management maturity: This refers to the self-assessment aimed at visualizing the current maturity level of cyber security management to enable each company to
understand the gap between targets and reality. There are five evaluation levels, with maturity levels evaluated by categories such as governance, risk management, incident response, educational
program. This is currently applied to key Group companies, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, Toshiba Plant Systems & Services Corporation,
Toshiba Development & Engineering Corporation
We also report on other initiatives within the governance sector.
See below.
Risk Management and Compliance
AI Governance Statement
See below for details on initiatives.
Cyber Security Report
Cyber Security
Other Initiatives
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Toshiba Integrated Report 2022
The impact of climate change is intensifying every year, society’s interest in this issue is on the rise, triggering demands that companies
step up their actions. The Task Force on Climate-related Financial Disclosures (TCFD), which was established by the Financial Stability
Board, published its final report in 2017 that urged companies to disclose information on their climate-related risks and opportunities. We
have endorsed the TCFD recommendations and are a member of the TCFD Consortium, which aims to promote actions by organizations
in Japan in support of the TCFD recommendations. We aim to proactively disclose information on climate change in the four areas (Gov
ernance, Strategy, Risk Management, and Metrics and Targets) specified by the TCFD.
We have a system in place that has the Board of Directors appropriately supervise our efforts to address climate change and other import
ant sustainability-related issues. Important policies, strategies, and measures concerning sustainability are discussed at the Sustainability
Strategy Committee meeting held twice a year before they are reported to the Board of Directors. Executives related to sustainability,
presidents of key Group companies, and managers related to sustainability participate in the meetings of the Sustainability Strategy Com
mittee chaired by the President and CEO. Of the items discussed at this meeting, the Executive in charge of Sustainability and the Executive
in charge of Environment report on important issues related to management at the Board of Directors meetings to be reflected in the
Group’s business strategy twice a year.
In FY2020, the Sustainability Strategy Committee reported on the progress of initiatives related to the Science Based Targets (SBT),
TCFD, and the long-term vision entitled “Toshiba Group’s Environmental Future Vision 2050” to the Board of Directors. In FY2021, the Board
of Directors resolved to adopt a new policy on sustainability management, which includes the company’s response to climate change, in
the Toshiba Group Sustainability Policy.
More detailed measures and policies related to the environment are discussed at the meetings of the Corporate Environmental Man
agement Committee set up under the Sustainability Strategy Committee. The Corporate Environmental Management Committee meeting,
chaired by the Executive in charge of Environment, is held twice a year and is attended by environmental promotion managers of key
Group companies and corporate staff division managers. What is discussed here is then spread within each Group company in the Environ
mental Management Committee of Group Companies meetings to be held at key Group companies.
Chairperson:
President and CEO
Chairperson:
Executive in charge of Environment
Board of Directors
Sustainability Strategy Committee
Corporate Environmental
Management Committee
Environmental Management Committee
of Group Companies
Information Disclosure Based on the TCFD
Recommendations
Governance
Environmental Management Structure
Sustainability Management (Sustainability website)
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Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Under the Sustainability Strategy Committee chaired by the President and CEO, we conduct scenario analysis for each business domain to
grasp climate change-related risks and opportunities.
In scenario analysis, we set up the following two scenarios:
1.5°C and well-below 2°C scenario:
For mainly transition risks and opportunities, we use the B2DS, SDS, and NZE2050 scenarios created by the International Energy Agency
(IEA), assuming a world where the temperature increases by 1.5°C and well-below 2°C. This scenario predicts increase in costs due to car
bon tax, energy saving related regulations, the introduction of renewable energy, etc., as well as increase in business opportunities due to
growing demand for energy technologies to realize decarbonization and energy-saving products and services.
4°C scenario:
For mainly physical risks and opportunities, we use the RCP8.5 scenario by the Intergovernmental Panel on Climate Change (IPCC), assum
ing a world where the temperature increases by 4°C. Although this scenario does not predict a greater impact of regulations and technol
ogy than the 1.5°C and well-below 2°C scenario, the impact of physical damage such as greater risk of natural disasters like typhoons and
flooding caused by unusual weather may increase.
Scope:
Our scenario analysis is conducted in the following five business domains taking into consideration the scale of the business and the sig
nificance of the impact of climate change. Since each domain has a range of businesses and the content and degree of impact of risks and
opportunities vary according to the business, we conduct a detailed analysis for each business division to identify risks and opportunities
that are specific to each business. Not stopping at the initiatives of our own company, the analysis covers the entire value chain including
the upstream (suppliers) and downstream (customers, users).
- Energy Systems & Solutions Business
- Infrastructure Systems & Solutions Business
- Electronic Devices & Storage Solutions Business
- Digital Solutions Business
- Battery Business
Time frames :
Three time frames are set (short-, mid-, and long-terms). We assumed the present to 3 years as the short-term in light of the period of
Toshiba Group’s Seventh Environmental Action Plan (final year: FY2023), 4 to 10 years as the mid-term in light of the setting periods of
Toshiba Group’s management policy (FY2025 and FY2030), and 11 to 30 years as the long-term in light of Toshiba Group’s Environmental
Future Vision 2050.
Analysis steps:
We conduct scenario analysis in line with the steps, “Risk importance assessment,” “Definition of scenario groups,” “Business impact as
sessment,” and “Definition of countermeasures” based on the TCFD recommendations.
In the most recent scenario analysis, we used a common format in the business domains listed in the above scope. First, each business
division identifies transition and physical risks and opportunities that climate change would pose to their respective business in line with
the two scenarios, “1.5°C and well-below 2°C” and “4°C,” based on the risk and opportunity categories presented in the TCFD recommen
dations, in light of the relevant business circumstances. Then, each business division assesses the importance of each risk and opportuni
ty in accordance with the company-wide assessment standards. We set (1) three levels of impact (assessed by impact on sales or expense
amounts) and (2) three levels of likelihood (assessed by probability and frequency) as the assessment standards. By multiplying the two
assessment results, we categorize the final importance into one of three levels: low, medium, and high. Note that in this report we have
mainly disclosed risks and opportunities with medium and higher importance based on the assessment results.
In addition, these analysis results were reviewed by related corporate staff divisions (Strategic Planning Division, IR Division, Sustain
ability Division, Environment Division) to reflect the viewpoint of each area of expertise. Moreover, of the risks and opportunities that have
been identified and assessed, those with particularly high importance or those that are unique to each business will be calculated for the
amount of financial impact by setting parameters, and we will give priority to formulating countermeasures for such items.
Strategy
Setting scenarios
Analysis method
60
Toshiba Integrated Report 2022
Risks
Response
1.5°C and
well-below
2°C
scenario
Transition
Risks
Policy and
Legal
Increase in response costs due to the introduction of carbon
tax and the emissions trading system, price passed through
to raw materials
Increase in response costs as a result of expanding introduc
tion of renewable energy
Increase in response costs as a result of the change in the
definition of renewable energy
Increase in response costs due to strengthened energy sav
ing performance regulations of countries including the Eu
ropean Ecodesign Directive (ErP Directive)
Increase in development costs of compliant products due to
the adoption of the EU taxonomy
Environmental Future Vision 2050
Response to Climate Change
Response to Climate Change in Business Activities
Ensuring of Environmental Risk Management and
Compliance
Toshiba Group Green Procurement Guidelines
Promote Sustainable Procurement (Sustainability
website)
Technology
Missing out on sales opportunities as a result of delayed de
velopment in response to growing demand for products and
services related to decarbonization
Environmental Future Vision 2050
Products and Services Associated with Power
Consumption
Products and Services Associated with Power Supply
Market
Missing out on sales opportunities due to delayed response
to changes in the preference of the market and customers,
such as growing demand to respond to climate change
Increase in prices of procured items due to accelerated de
carbonization initiatives at suppliers
Reputation
Increase in business continuity risk as a result of lost trust
from stakeholders due to delayed response to climate
change
Missing out on opportunities to receive ESG investment due
to declined evaluation regarding climate change response
Improvement of reporting based on external
requirements
Evaluation by External Parties (Sustainability website)
Participation in External CSR Organizations
(Sustainability website)
Evaluations
4°C
scenario
Physical Risks
Suspended operations and increase in response costs due to
impacts of natural disasters such as typhoons and floods
(listed below)
Damage to production equipment
Impact on component procurement due to damage to sup
pliers
Impact on logistics and sales capabilities
Impact on employees
Formulation and implementation of BCP measures at
each site, such as raising the floor where equipment is
installed in areas at risk of large-scale water hazards
Securing multiple suppliers
Checking BCP measures during the assessment process
prior to new site construction
Risks
Opportunities
[Transition Risks]
- Increase in response costs and missing out on sales opportunities
due to regulations on the sale of equipment that uses sulfur hexaflu
oride (SF6) such as gas insulated switchgears, for which regulations
are increasingly restrictive
- Missing out on sales opportunities for products due to delayed devel
opment of new technologies related to renewable energy
- Missing out on sales opportunities due to the shortage or difficulty in
procuring renewable energy-related components
- Increase in product development and production costs as a result of
changing the materials of energy related products for low carboniza
tion or decarbonization
- Costs for design changes in wind power generation facilities in antici
pation of stronger winds blowing due to unusual weather
- Increase in demand for renewable
energy-related technologies
- Increase in demand for hydrogen
solutions
- Increase in demand for virtual power
plants (VPP)
- Increase in demand for SF6 gas-free
equipment
- Spread and expansion of CCUS (car
bon capture, use, storage)
[Response]
Renewable Energy
Hydrogen Energy
VPP(Virtual Power Plant)
Toshiba and Meidensha to
develop GIS jointly using natural
origin gases (News Release)
Efforts for CO2 emission reduc
tion – CO2 capture technology
Development Project of Integrat
ed Demonstration Facility and
Supply Chain for Sustainable
CCUS Adopted by Ministry of the
Environment (News Release)
[Transition Risks]
- Increase in response costs and missing out on sales opportunities
due to regulations on the sale of equipment that uses sulfur hexaflu
oride (SF6) such as cubicle gas insulated switchgears (C-GIS) for which
regulations are increasingly restrictive
- Increase in development costs as a result of introducing low carbon
technologies or next-generation technologies to social infrastructure
products, industrial equipment, etc.
- Increase in procurement costs due to price hikes in steel, copper, alu
minum, etc.
- Increase in product development and production costs as a result of
changing the materials for low carbonization and decarbonization in
social infrastructure facilities, etc.
- Increase in demand for railway sys
tems using batteries that contribute
to reducing environmental impacts
- Increase in demand for automotive
products due to increased sales of
electric vehicles
- Increase in demand for disaster
management solutions
- Increase in demand for products
with low CO2 emissions and systems
linked to such products
[Response]
Railway Systems
Automotive Systems
Disaster Management Solutions
Stormwater Drainage
Renewable Energy Power Genera
tion Systems
Weather Radar
Robotics, Logistics System
Solutions
Energy Systems & Solutions Business
Infrastructure Systems &
Solutions Business
The main results of the latest scenario analysis conducted in 2022 are as follows.
Analysis results
Risks Common to Toshiba Group
Toshiba Group’s Risks and Opportunities by Business
* Opportunities are listed under “Risks and Opportunities by Business.”
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Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Risks
Opportunities
[Transition Risks]
- Increase in costs as a result of installing detoxifying equipment or
changing to alternative gases due to tightened regulations on wa
fer-etching process gas
- Increase in amount of capital investment for reducing greenhouse
gas emissions
- Missing out on sales opportunities due to being unable to develop
products for low carbonization or decarbonization including power
semiconductors at an appropriate time
- Increase in procurement costs due to price hikes in main components
[Physical Risks]
- Impact on manufacturing processes and increase in costs attributable
to water shortage due to temperature rise
- Increase in demand for energy effi
ciency products, including power
semiconductors and high-efficiency
semiconductors
- Increase in demand for semiconduc
tor products that are adapted to de
mand for energy saving products.
- Increase in demand for products re
lated to electric vehicles due to the
expansion of their market
- Increase in demand for low power-
consumption helium-filled HDDs
[Response]
Power Semiconductors
Toshiba to Expand Power
Semiconductor Production
Capacity with 300-millimeter
Wafer Fabrication Facility (News
Release)
Automotive Devices
Storage Products
[Transition Risks]
- Missing out on sales opportunities due to a shortage of digital human
resources who facilitate the advancement of technologies that devel
op the digital economy (DE*1 → DX*2 → QX*3), and increase in develop
ment costs in this area
- Increase in costs for securing and developing digital human resources
for facilitating the expansion of the digital service market
[Physical Risks]
- Temporary suspension of product and service provision due to natu
ral disasters caused by unusual weather, resulting in customers to
whom products are delivered (factories, etc.) being affected by them
and distribution being cut off
- Increase in demand for ICT solutions
(manufacturing IoT solution “Meister
Factory series,” manufacturing IoT
cloud service “Meister ManufactX™,”
etc.) that contribute to reducing
greenhouse gas through improved
productivity and streamlining of op
erations
- Increase in demand for co-creation
and collaboration with partners who
are developing decarbonization
businesses (strategic procurement
solution “Meister SRM™,” etc.)
- Increase in demand for mainte
nance, operation, and recurring
businesses for reducing environ
mental impacts
- Increase in demand for co-creation
and data utilization businesses (hu
man resource management solution
“Generalist®”, etc.) that involve cus
tomers and the industry
[Response]
Factory IoT Platform
Manufacturing IoT Cloud Service
“Meister ManufactX™”
Strategic Procurement Solution
“Meister SRM™”
Collaboration with Zeroboard Inc.
on GHG Emissions Calculation and
Visualization Services
Human Resource Management
Solution “Generalist®”
[Transition Risks]
- Increase in costs for automotive battery products due to tightening of
automobile fuel consumption regulations (CAFE*4 regulations, etc.)
- Increase in procurement costs due to export controls in rare earth
producing countries
- Increase in response costs and price pass-through to procured items
due to the EU battery regulation
- Increase in energy costs due to delayed investment in technologies
that reduce greenhouse gas in manufacturing processes
- Missing out on sales opportunities due to delayed development of
materials that emit less greenhouse gas for reducing carbon footprint
- Increase in procurement costs as a result of changing materials due
to more advanced energy saving technologies for battery products
- Missing out on overseas sales opportunities due to delayed invest
ment decisions in response to increasing demand for automotive
battery products, etc.
- Increase in demand for automotive
batteries as a result of the shift to
hybrid and electric vehicles
- Increase in demand for stationary
and industrial batteries with high
energy saving performance intend
ed for railways, vessels, industrial
equipment, etc.
- Increase in demand for storage bat
tery systems due to accelerated in
troduction of renewable energy
- Increase in demand for products
that meet needs for adaptation
measures such as emergency stor
age battery systems
[Response]
SCiB™ Rechargeable battery
Toshiba's SCiB™ rechargeable
battery used in various fields
SCiB™ Topics
Sustainability of SCiB™
Construction of Yokohama Battery
Operations for Increasing Produc
tion of Lithium-ion Batteries
(Completed in 2021)
Electronic Devices &
Storage Solutions Business
Digital Solutions Business
Battery Business
As a result of the scenario analysis for each business assuming the 1.5°C and well-below 2°C scenario and the 4°C scenario, we identified
different risk factors depending on the characteristics of each business. For example, technology and market risks of renewable energy-re
lated products in the Energy Systems & Solutions business, policy and legal risks concerning GHG emissions in manufacturing processes
in the Electronic Devices & Storage Solutions business, and risks related to human resources in the Digital Solutions business. As for op
portunities, we also identified various business opportunities for each business, including renewable energy-related technologies, railway
systems, disaster management solutions, power semiconductors, ICT solutions that contribute to reducing GHG, and automotive batteries.
*1: Digital Evolution *2: Digital Transformation *3: Quantum Transformation *4: Corporate Average Fuel Efficiency
The countermeasures for risks and opportunities that were identified and assessed in the above scenario analysis will be incorporated into
part of a future mid-term business plan of each business domain, and its progress will be regularly managed.
Toshiba Group’s new management policy announced in FY2022 declares that we regard the social trend toward carbon neutrality as
an opportunity and will contribute to achieving carbon neutrality by building infrastructure that everyone can enjoy and a connected data
society in our business activities. In addition, as stated in Toshiba Group’s material issues as well as long-term vision Environmental Future
Vision 2050, we uphold response to climate change as a priority item and aim to achieve carbon neutrality throughout Toshiba Group’s
entire value chain by FY2050. Going forward, we will continue to reflect scenario analysis results in Toshiba Group’s business strategy and
engage in sustainable business management while appropriately responding to risks and opportunities of climate change.
Countermeasures
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Toshiba Integrated Report 2022
1. Reduce the total of Scope 1*1 and Scope 2*2 (GHG emissions generated from Toshiba Group's own business
activities) by 70% by FY2030.
2. Reduce use-phase GHG emissions of “products and services associated with power supply”*3 sold in Scope 3*4 by
80% by FY2030.
3. Reduce use-phase GHG emissions of “products and services associated with power consumption”*5 sold in Scope
3 by 14% by FY2030.
4. Reduce GHG emissions from products and services purchased from other companies in Scope 3.
Targets 1 to 3 above are compared to the FY2019 levels. The base year for target 4 is to be determined.
Under the Environmental Future Vision 2050, we aim to achieve carbon neutrality throughout Toshiba Group’s entire value chain by
FY2050. As a milestone, we aim to reduce GHG emissions by 70% by FY2030 compared to the FY2019 level.
We set out the following breakdown of GHG reduction target for FY2030 and are promoting related initiatives.
Material issues and KPIs (KPIs) (Sustainability website)
Environmental Future Vision 2050
Response to Climate Change in Business Activities
Products and Services Associated with Power Supply
Products and Services Associated with Power Consumption
Adaptation Measures to Avoid the Effect of Climate Change
Risk Management and Compliance (Sustainability website)
Environmental Future Vision 2050
The Seventh Environmental Action Plan
Toshiba Group’s risk management concerning climate change is incorporated into the company-wide risk management process. For busi
ness risks that have significant impact on management including climate-related risks, we clarify management decision criteria, permissi
ble risk limits, and corporate policy on business withdrawal in making management decisions to achieve Toshiba Group’s sustainable
growth and increase corporate value. In addition, for each risk case, the Business Risk Review Committee conducts risk assessment, iden
tifies the maximum risk, and establishes items for monitoring.
Matters of particular importance are discussed at the Management Meeting. The Business Risk Review Committee meeting is held
several times annually as matters arise. Since FY2022, we have added climate-related risks (policy and legal risks, technology risks, market
risks, reputation risks, physical risks) based on the TCFD recommendations to the business risk criteria and will work to strengthen the
assessment processes concerning climate change.
With regard to risk management specialized for climate change, we identify risks and assess their importance as part of the scenario
analysis for the main business domains, which are conducted under the Sustainability Strategy Committee, and share the results with the
Committee. For the risks identified and assessed here, the executive in charge of sustainability and the executive in charge of environment
bring them up to the Board of Directors meetings to be reflected in the Group’s management strategy.
Risk Management
Metrics and Targets
*1: Volume of direct emissions through fuel use at Toshiba Group
*2: Volume of indirect emissions through use of electricity and heat purchased by Toshiba Group
*3: Power generation plants, etc.
*4: Volume of indirect emissions generated by Toshiba’s value chain (raw materials procurement, distribution, sales, disposal, etc.) outside Scopes 1 and 2
*5: Social infrastructure products, building-related products (lighting equipment, elevators and escalators), retail and printing equipment, power semiconductors, etc.
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Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Non-Japanese → 5
42%
Japanese → 7
58%
Female → 1
8%
Male → 11
92%
Internal Director → 2
17%
Outside
Director → 10
83%
Composition of
Board of Directors
Male-Female Ratio of
Board of Directors
Ratio of
Non-Japanese Directors
The Nomination Committee, Audit Committee, Compensation Committee and Special Committee, composed exclusively of Out
side Directors, determine the content of proposals for the election and dismissal of Directors to be submitted at shareholder meet
ings, supervise the execution of duties by Executive Officers, determine the content of individual compensation, etc. for each Exec
utive Officer, engage with potential investors and sponsors, and review strategic alternatives. The Nomination Committee, Audit
Committee, Compensation Committee and Special Committee are chaired by Outside Director.
Each committee composed exclusively of Outside Directors
Point 1
Highlights of Corporate Governance
Our Board of Directors is composed of Directors with experience in international business, expertise in business portfolio manage
ment, business transformation, M&A, capital markets and capital allocation, and deep knowledge in law and compliance, and the
composition of Directors could also reflect in management sufficient diversity viewpoints in terms of gender and international ex
perience.
Directors with a wide range of skills and backgrounds
Point 2
On April 7, 2022, the Company established a Special Committee, in order to engage with potential investors and sponsors and re
view strategic alternatives. The Special Committee along with management, will engage in the negotiation process by confirming
the potential structures in advance, receiving timely reports on the negotiation status, providing opinions at important junctures.
The Special Committee shall also conduct an analysis on thorough process to compare offers and structures, and identify the pri
vatization offer that is best for our diverse stakeholders including shareholders. As a result of the establishment of the Special
Committee, the Strategic Review Committee was dissolved.
Establishment of Special Committee
Point 3
The investigators indicated that the 181st Ordinary General Meeting of Shareholders held on July 31, 2020 had not been conducted
fairly as required by the Corporate Governance Code. The Company takes such the indication seriously and determined to initiate
an inquiry that would, in an objective and transparent manner, through means including the participation of third parties, investi
gate and identify root causes, clarify responsibilities, and take appropriate measures to prevent recurrence, in respect of what is
referred to in the investigation report as the “Pressure Issue.” Thereafter, the Company established the Governance Enhancement
Committee and assigned to it the missions of (i) analyzing the root causes; (ii) clarifying responsibility; and (iii) making suggestions
on how to develop measures to prevent recurrence. On November 12, 2021, the Company received an investigation report from the
Committee and the Company takes the contents of the report seriously, and the Company formulated recurrence prevention mea
sures based on the suggestions contained in the report in December 2021.
Governance Enhancement Committee
Point 4
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Toshiba Integrated Report 2022
General Meeting of Shareholders
Report
Supervision
Board of Directors/
Directors
Proposal
Appointment
and Dismissal
Appointment and Dismissal
Report
Deliberations and/or
decision-making on legal subjects and/or
important subjects
President & CEO
Executive Officers
Divisions
Report
Audit
Audit
Nomination of Candidates
for Directorships
Decision on Compensation of
Directors and Executive Officers
Exercise Rights to Investigate/Audit
Compensation Committee
Reviewing Strategic Alternatives
for Improving Corporate Value
Special Committee
Nomination Committee
Audit Committee
Internal Audit Division
Audit Committee Office
During the FY2021, the Board of Directors met 27 times, the Nomination Committee 20 times, the Audit Committee 13 times, the Compen
sation Committee 17 times and the Strategic Review Committee 20 times. The following outlines the Board of Directors’ and committees’
principal activities.
The report of June 10, 2021 submitted by the persons who in
vestigated the status of the operations and property of the stock
company as set forth in Article 316, Paragraph 2 of the Compa
nies Act indicates that, when compared to the provisions of the
Corporate Governance Code, the Ordinary General Meeting of
Shareholders for the 181st fiscal year held on July 31, 2020 can
not be said to have been conducted in a fair manner.
With regard to the so-called Pressure Problem, in which external
third parties also participated, it was determined that an objec
tive, transparent, and exhaustive inquiry should be conducted
into the real causes and facts of the matter to clarify the locus of
responsibility and to put together measures to prevent a recur
rence. To this end, a Governance Enhancement Committee was
set up and commissioned to provide advice in relation to the
Corporate Governance Policy
The basic policy and objectives of Company’s corporate governance are to realize sustainable growth and raise the enterprise value of the
Group over the medium- to long-term, and to contribute to the interests of all stakeholders, including shareholders, investors, employees,
customers, business partners, creditors, and local communities. Under this policy, as the Company puts importance on the Board of Direc
tors’ function to supervise business execution, the Company adopts a company with Nomination committee, etc., as its form of organiza
tion, that delegates business execution decisions to Executive Officers, allowing the Board of Directors to concentrate on monitoring and
supervising execution and determining basic strategy. The Company has also established “Corporate Governance Guidelines” (Latest
version: December 22, 2021) that form the framework of governance of the Company.
Basic Views of Corporate Governance
State of Activities of the Board of Directors and Committees
Corporate Governance Structure
State of activities of the Board of Directors
causes of the problem, the clarification of responsibility, and
measures to prevent a recurrence. The report compiled by this
Committee was received on November 12, 2021.
Based on the advice given in the above-mentioned Committee
report, the Board of Directors and executives have held discus
sions and formulated measures to prevent a recurrence, fo
cused on building healthy relationships of trust with
shareholders, improving an organizational structure that is ex
cessively reliant on government ministries and agencies, re
building of corporate governance, and practicing the correct
“tone at the top.”
In June 2021, a Strategic Review Committee (“SRC”) was set up,
and worked to formulate business plans aimed at maximizing
shareholder value. Over the course of approximately five
months, the Company evaluated and considered various strate
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Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
State of activities by committees
A. Nomination Committee
C. Compensation Committee
D. Strategic Review Committee
B. Audit Committee
gic options based on verification by and advice from the SRC.
With the objective of eliciting the opinions of shareholders and
other matters in relation to the above-mentioned strategic re
structuring, the decision was taken to hold an Extraordinary
General Meeting of Shareholders on March 24, 2022. At the Ex
traordinary General Meeting of Shareholders, proposals by both
the Company and shareholders were rejected, but based on the
opinions of shareholders as revealed at the Extraordinary Gen
eral Meeting of Shareholders the Company decided to maintain
its efforts to rebuild relationships of trust with shareholders
while continuing to consider all available strategic options to
enhance corporate value.
The Board of Directors was provided with reports on business
plans, budget, risk control information and the state of duty ex
ecution by Directors and Executive Officers pursuant to applica
ble laws and regulations, the Articles of Incorporation, the
Board of Directors Regulations, etc.
The Nomination Committee deliberated candidates for succes
sors to Executive Officer, President and CEO.
The Nomination Committee deliberated on a proposal for the
election of Executive Officer, President and CEO.
The Nomination Committee deliberated on the composition of
the Board of Directors.
The Nomination Committee deliberated on the candidates for
Outside Directors.
The Nomination Committee deliberated on the election of
Chairperson of the Board of Directors to be submitted to the
Board of Directors.
The Compensation Committee deliberated on the provision of
the performance-linked compensation for Executive Officers,
etc. according to their performance evaluation for FY2020.
The Compensation Committee deliberated on changes to, and
the applicable period of, FY2021 compensation.
The Compensation Committee deliberated on revisions to the
Compensation Policy and the Officer Compensation Rules.
The Compensation Committee deliberated on the details of the
individual compensation to be paid to Directors and Executive
Officers from July 2021.
The Compensation Committee deliberated certain parts of
compensation for Directors.
Based on the report of the Governance Enhancement Commit
tee, the Compensation Committee deliberated the treatment of
compensation for officers.
The Compensation Committee deliberated on FY2021 short-
term incentives for Executive Officers.
The Compensation Committee deliberated on the compensa
tion plan for Directors and Executive Officers.
The Strategic Review Committee engaged with shareholders,
and received extensive feedback.
The Strategic Review Committee requested the executive team
to formulate a midterm business plan, and deliberated the plan
that was subsequently submitted.
The Strategic Review Committee engaged with strategic and fi
nancial investors, and deliberated options other than those in
the mid-term business plan.
The Strategic Review Committee deliberated the structure of
tax-qualified spinoffs.
The Strategic Review Committee supervised preparations for
spin-off plans.
On April 7, 2022, a Special Committee was established with the
aim of engaging with potential investors and sponsors and con
sidering strategic options. As a result, the Strategic Review Com
mittee was dissolved.
The Audit Committee audited the state of the execution of du
ties by executives, by attending the Board of Directors and other
key meetings and by making inquiries to Executive Officers and
other personnel, with a focus on the state of observance of laws
and regulations and preventing the recurrence of inappropriate
accounting conduct. In addition, the Audit Committee received
reports regularly from the Internal Audit Division on their audit
results, and from the Internal Control Promotion Division and
the Project Audit Division on their state of activities. The Audit
Committee also made inquiries to other internal control man
agement departments, thereby verifying the state of implemen
tation of improved internal control system and the status of
progress of corporate culture reform programs. All of the full-
time and part-time Audit Committee members attended all
hearings and reporting sessions, checked materials and min
utes, and participated actively in audit activities.
With regard to the inappropriate accounting conduct, the Com
pany continued the claim for damages filed in the Tokyo District
Court in November 2015 against five former executives, includ
ing those with experience as President.
The whistleblowing system operated by the Audit Committee,
the committee received 34 whistleblowing reports and re
sponded. The Audit Committee was briefed on details and sta
tus of responses of all 148 reports to the whistleblowing contact
point on the Company’s executive side. The committee has pri
oritized the reports related to accounting and compliance to
verify their investigation results and status of improvements.
Through liaison meeting with Group company auditors, as well
as through education and the like, the Audit Committee worked
to strengthen auditing governance of Group companies and im
prove audit quality by bolstering coordination with Group com
pany’s auditors.
With regard to so-called Pressure Problem described in the re
port of June 10, 2021 submitted by the persons who investigat
ed the status of the operations and property of the stock com
pany as set forth in Article 316, Paragraph 2 of the Companies
Act, the Audit Committee selected members of the Governance
Enhancement Committee set up to provide advice in relation to
the causes of the problem, the clarification of responsibility,
and measures to prevent a recurrence.
Furthermore, in terms of monitoring the organizational struc
ture for improvements to resolve the excessive reliance on gov
ernment ministries and agencies, the Audit Committee began
operating a system of checking the record of contacts between
officers and employees of the Company and senior government
officials.
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Toshiba Integrated Report 2022
Director
Base salary + Committee Allowance + Attendance allowance for travel to non-resident countries
Executive officer
Base salary + Performance-linked compensation (shares and cash)
Compensation Policy
The Compensation Committee establishes compensation policy
regarding compensation of each Director and/or Executive Offi
cer. With respect to matters such as compensation for Company
Directors and Executive Officers for the current fiscal year, the
Compensation Committee has determined that the Company’s
method for determining compensation and the amount of com
pensation already determined are aligned with this policy.
The content of the policy concerning decision-making with
regard to compensation, etc. for individual Company officers is as
follows. Since the main responsibility of Directors is to supervise
the execution of the overall Group’s business, and increase the
corporate value, the basic policy is to determine compensation
for Directors by chiefly focusing on securing highly competent
personnel, ensuring effective functioning of the supervisory func
tion, and improving corporate value from a medium to long term
perspective.
Since the main responsibility of Executive Officers is to in
crease corporate value in their capacity as executives responsible
for companies or divisions within the Group, the Company has a
basic policy to determine compensation for Executive Officers at
an adequate level to secure highly competent personnel and en
sure the effectiveness of their compensation package as an incen
tive to improve business performance, based on a balance be
tween fixed compensation and performance-linked compensation.
Compensation standards are determined at suitable levels as a
global company, with the aim of securing highly competent man
agement personnel suitable for managing Toshiba which is enter
ing a period of change. The compensation standards of other
listed companies and payroll and benefits are considered when
determining the Company’s compensation standards of manage
ment.
Directors are paid the Base salary (fixed amount) and the Com
mittee Allowance (fixed amount) in accordance with the scope of
their responsibilities. If multiple committees concurrently serve,
the applicable Committee Allowances will be added up and
paid. Directors who concurrently hold offices as an Executive Of
ficer are paid only the compensation for Executive Officers spec
ified in below and not paid compensation for Directors.
Compensation for Executive Officers consists of Base salary
(fixed amount), determined according to rank, and perfor
mance-linked compensation.
Performance-linked compensation is determined in accordance
with the performance and medium to long term management
indicators of the Company overall and the divisions under the
charge of the Executive Officers during the fiscal year, with cash
and stock of the Company paid at a rate set according to rank.
The Base Salary and the Performance-linked compensation are
paid by cash and shares of the Company at a prescribed rate.
With regard to compensation paid by stock that is paid in the
form of the Company’s stock, mechanisms such as restricted
stocks with transfer restrictions until retirement will be used to
secure effectiveness as an incentive for medium- to long-term
improvement of business performance.
Compensation Policy
Compensation for Directors
1
Compensation for Executive Officers
2
Compensation standards
3
The Base Salary and the Committee Allowance are paid by cash
and shares of the Company at a prescribed rate.
When traveling to attend a Meeting of the Board of Directors,
Executive Session of the Board, or a Committee held in a
non-resident country, the Attendance Allowance is paid accord
ing to the actual travel record.
With regard to compensation paid by stock that is paid in the
form of the Company’s stock, mechanisms such as restricted
stocks with transfer restrictions until retirement will be used.
Compensation pertaining to the above is set as follows:
Toshiba Group has set up three lines of internal control system, with the relevant business divisions as the front line, the administrative
divisions as the second, and the audit divisions as the third. The system is designed to effectively manage risks by assigning to each line a
clearly defined role and set of duties, which it carries out appropriately, at the same time exercising a checks-and-balances function. In
order to respond to changes in the business environment and to the diverse and ever-changing risks that arise when conducting business
activities, we will ensure effective risk management.
Toshiba’s shares were designated as securities on alert on September 15, 2015 due to inappropriate accounting. After that, Toshiba
improved its internal control system and the designation was lifted on October 12, 2017. As reported in the Report on Improvements of
Internal Management System and Progress Report on Improvements of Internal Management System released on October 20, 2017 and
July 25, 2018 respectively, Toshiba has continued its efforts to strengthen the internal control system and worked to regain the trust of
shareholders, investors, and all other stakeholders. On August 1, 2017, Toshiba’s shares were reassigned to the Second Section of Tokyo
Stock Exchange and Nagoya Stock Exchange. As a result of aforementioned efforts, our shares were designated as first section securities of
both of the exchanges again on January 29, 2021. Toshiba will continue to work to enhance its internal control system.
At Toshiba Group, top management regularly issues messages on compliance so as to clarify its own stance and to foster a culture in
which compliance is prioritized across the whole Group.
Policy on Risk Management and Compliance
67
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Toshiba has separate management systems for compliance and
other risks and business risks. Business risks refer to uncertain
factors that may prevent the achievement of business and project
objectives on strategic decision-making and execution of busi
ness activities.
To address compliance and other risks, we appoint a Chief
Risk Compliance Management Officer (CRO) to oversee risk man
agement and compliance for the whole Group. In addition, under
the CRO, the Legal & Compliance Division responds to whis
tleblower reports, attempts to achieve global compliance, aims
to strengthen the whistleblower system, and is advancing effec
tive risk management and compliance activities.
The CRO chairs the Risk Compliance Committee, which is at
tended by executives in charge of corporate staff divisions. The
committee analyzes whistleblower reports and cases both inside
and outside the Company and evaluates the impacts of risks and
the status of risk control in accordance with the risk table that
covers compliance risks based on the Standards of Conduct for
Toshiba Group. It then determines priority measures of the im
mediate fiscal year. The Risk Compliance Committee is attended
by members of the Audit Committee who also serve as directors.
The agenda deliberated at the committee is reported to the Board
of Directors.
In response to the inappropriate accounting treatment in
2015, Toshiba has worked to strengthen accounting compliance
by establishing a special accounting compliance system. In order
to further strengthen the overall compliance system, in FY2021,
we evolved the system into one that encompasses accounting
compliance and other types of compliance, and began promot
ing centralized management.
At Toshiba Group, we formulated and are striving to entrench the Standards of Conduct for Toshiba Group (SOC) as a specific ac
tion guideline since we are a company that contributes to the realization of a sustainable society while conducting fair, sincere and highly
transparent business activities. We are also working toward making the SOC an integral part of the entire Toshiba Group. The SOC is one
of the Toshiba Group’s important basic guidelines, and therefore, its revision requires approval by the Board of Directors.
Toshiba Group maintains a policy of zero tolerance against fraud, investigates all facts to identify the cause of any such occurrences,
treats the facts seriously, makes every effort to prevent recurrence, and discloses information in a proper and timely manner as necessary.
Any employees involved with cases of fraud are handled rigorously, including through the implementation of disciplinary action.
Corporate
Key Group Company
President and CEO
Executive officer in charge of Legal & Compliance
Risk Compliance Committee*1
Corporate Risk Management Committee
Corporate CPL*2 Examination Committee
Corporate Lawsuit Committee
Oversea Safety Committee
Risk Compliance Committee
CPL Examination Committee
[Compliance risk]
Executive officer in charge of
Strategic Planning Division
Business Risk Review Committe
Business Risk Management System
[Business risk]
Structure of Risk Management and Compliance
Risk Management and Compliance Committee
*1: The Risk Compliance Committee manages matters related to the Standards of Conduct for Toshiba Group and matters related to risk management and compliance.
*2: CPL is an abbreviation combining CL (contractual liability) and PL (product liability).
68
Toshiba Integrated Report 2022
In order to create an open work environment, Toshiba is enhanc
ing its whistleblower system, on top of preventing risks by stimu
lating day-to-day communication in each workplace.
In January 2000, Toshiba established a whistleblower system
Toshiba Hotline to collect internal information on SOC violations,
particularly those concerning laws and regulations, and to deal
with wrongdoing through a self-rectification system. Under this
system, an employee can report an incident and seek advice via
e-mail or phone. In April 2019, we transferred the function of re
ceiving whistleblower reports to an external organization to fur
ther ensure anonymity, lower the hurdle of reporting to the ho
tline, and build a stronger sense of safety. E-mail support is
available 24/7. In June 2022, we began accepting reports in En
glish, targeting those employees at Toshiba Group companies in
Japan who find it difficult to make the reports in the Japanese
language. Also, a reception hotline was set up at an external attor
ney’s office in January 2005, primarily to receive information
about potential legal violations.
Furthermore, in October 2015, the new Audit Committee Ho
tline was set up, which allows people to report directly to the Au
dit Committee, which is composed of outside directors. With this
new system, even matters in which the involvement of top man
agement is suspected can be safely reported.
The Audit Committee also has access rights to the Toshiba
Hotline, and provides appropriate guidance and supervision.
Toshiba operates a risk management system (RMS) incorpo
rating a PDCA cycle* led by administrative divisions at the second
line of internal control system. The aim is to identify the status at
each Toshiba Group company of initiatives on compliance risk
and to promote improvement in an integrated manner. With the
RMS, we implement the Risk Assessment Program (RAP) to assess
risks of Toshiba Group companies. The administrative divisions
provide guidance to improve the compliance risks identified. At
the same time, the relevant business divisions at the front line of
internal control system themselves work to identify and mitigate
the risks autonomously.
Furthermore, since FY2020, we have systematically organized
fraud risk scenarios related to financial reporting and accounting,
and conducted inspections on Group companies to understand
the status of their fraud risk, while strengthening guidance to im
prove such status.
In the event of a serious compliance-related incident, there is
a system in place by which such incident is reported immediately
to the President and CEO, CRO, and members of the Audit Com
mittee, among others. A reporting system was also added in
FY2021. Under these systems, the relevant in-house committees,
etc. promptly evaluate and implement countermeasures.
Meanwhile, Toshiba deals with business risks by clarifying
management decision criteria, permissible risk limits and corpo
rate policy on business withdrawal in making management deci
sions for business execution to achieve Toshiba Group’s sustain
able growth and increase corporate value. In addition, for each
risk case, the Business Risk Review Committee conducts risk as
sessment, identifies the maximum risk, and establishes items for
monitoring.
In April 2006, Toshiba set up a supplier whistleblower system
Clean Partner Line to receive reports from suppliers and business
partners to prevent SOC violations by employees in charge of pro
curement and order placements for construction and other
works.
Each Toshiba Group company has its own whistleblower sys
tem. In addition, employees of the Toshiba Group in Japan can
use the aforementioned Toshiba Hotline. Besides the whis
tleblower system at each company, in FY2021, we introduced the
Toshiba Group Overseas Hotline for Toshiba Group companies
overseas, by designating each Regional Representative Subsidi
ary as the secretariat for the corresponding region so as to cover
laws and regulations and languages for different countries and
regions.
At Toshiba Group, in accordance with laws, regulations, and
internal regulations, officers and employees who make whis
tleblower reports with honest and legitimate intent do not re
ceive unfavorable treatment such as dismissal and demotion as a
result of having made the reports. Toshiba Group strives to ensure
that the officers and employees can use the whistleblower sys
tem at ease. Specifically, each Group company has stipulated in
its regulations a confidentiality obligation that allows limited per
sons in charge to access to what is reported by whistleblowers
and a prohibition of unfavorable treatment of whistleblowers, as
well as prepared manuals for persons in charge of whistleblow
ing. Toshiba Group in Japan maintains and operates a response
system that complies with the amended Whistleblower Protec
tion Act. We notified employees about the existence of the system
and its assurance of strict anonymity through e-learning. We also
reported on whistleblower cases to the whole Company on a
number of occasions.
Of the reports received, Toshiba strived to investigate all facts
on cases of possible legal violations or fraud to identify the cause,
and handled such cases rigorously and imposed appropriate dis
ciplinary sanctions on the offenders and implementing such
measures to prevent recurrence. Meanwhile, the majority of the
reports received were related to labor and general affairs. When a
reported case was not a legal violation but there were or likely to
be inappropriate situations, we provided instructions for im
provement or issued alerts in cooperation with the relevant divi
sion. In cases involving consultations and questions about duties
of the informants themselves, we gave advice on how to deal with
the situation. For reports other than anonymous reports, we ex
plained the status of our responses to the whistleblowers, in prin
ciple.
In accordance with laws, regulations, and internal regula
tions, confidential advisers (at the external organization or attor
ney’s office for the Toshiba Hotline, and at the internal secretariat
for the Audit Committee Hotline) never disclose the names or
contact addresses of the informants, except in cases in which
consent has been obtained from them.
Out of the whistleblower reports, cases that everyone should
bear in mind are taught as part of employee training. In order to
protect whistleblower anonymity, such cases are presented after
they are anonymized, with some details changed so that the
whistleblower and the workplace where they work cannot be
identified. The number of reports received is released regularly on
the company’s internal website.
Whistleblower System
* Plan: Identification and assessment of risks; Do: creation and operation of rules; Check: review
and fact-finding surveys; Action: formulation and implementation of improvement plans
69
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Audit
Committee
Hotline
Clean
Partner
Line
Toshiba
Hotline
Audit Committee
CRO
Whistle
blowing
Whistle
blowing
Whistle
blowing
Whistle
blowing
Whistle
blowing
Whistle
blowing
Whistle
blowing
Whistle
blowing
Toshiba Group
companies
Escalation
Toshiba Group has its own whistleblower hotline and operates it.
Suppliers
Legal & Compliance Div. (Corporate Secretariat)
Report
External
organizations
External
attorney’s office
Toshiba Group
companies in Japan
Contact for America
(Toshiba America, Inc.)
Toshiba Group
companies in America
Contact for Asia-Pacific
(Toshiba Asia Pacific Pte. Ltd.)
Toshiba Group
companies in Asia-Pacific
Contact for China
(Toshiba (China) Co. Ltd.)
Toshiba Group
companies in China
Contact for Europe,
Middle East and Africa
(Toshiba Europe Limited)
Toshiba Group companies
in Europe, Middle East and Africa
The Group’s business areas of energy systems, infrastructure systems, building, retail & printing, devices & storage, and digital solutions
require highly advanced technology for their operation. At the same time, the Group faces fierce global competition. Under such circum
stances, major risk factors related to the Group recognized by the Company are described in Toshiba’s Investor Relations website.
However, they should not be regarded as a complete and comprehensive statement of risk factors relating to the Group, and there are
unforeseeable risk factors other than those described in said former website. The actual occurrence of any of those risk factors may ad
versely affect the Group’s operating results and financial condition.
Further, the risks described in said former website are identified by the Group based on information that the Group has obtained as of
June 27, 2022 (the date of submission annual securities report for the 183rd period), and involve inherent uncertainties, and, therefore, the
actual results may differ.
Business Risk Factors
Toshiba's Whistleblower System
70
Toshiba Integrated Report 2022
Name
Current position(s)
in the Company
Corporate
management
Law and
compliance
Accounting
and auditing
Diversity*
M&A
Corporate
restructuring
Capital
markets
International
business
esperience
Taro SHIMADA
Representative Executive
Officer
President and Chief Executive
Officer
Goro YANASE
Representative Executive
Officer
Corporate Senior Executive
Vice President and Chief
Operating Officer
Akihiro WATANABE
Outside Director
Independent
Chairperson of the Board of Directors
Vice Chairperson, Nomination
Committee
Vice Chairperson, Special Committee
Paul J. BROUGH
Outside Director
Independent
Vice Chairperson, Special
Committee
Member, Nomination
Committee
Ayako Hirota WEISSMAN
Outside Director
Independent
Chairperson, Compensation
Committee
Member, Special Committee
Jerome Thomas BLACK
Outside Director
Independent
Chairperson, Special
Committee
Member, Nomination
Committee
George Raymond ZAGE III
Outside Director
Independent
Chairperson, Nomination
Committee
Member, Special Committee
Katsunori HASHIMOTO
Outside Director
Independent
Chairperson, Audit
Committee
Member, Nomination
Committee
Mikio MOCHIZUKI
Outside Director
Independent
Member, Audit Committee
Member, Compensation
Committee
Ayumi UZAWA
Outside Director
Independent
Member, Audit Committee
Member, Compensation
Committee
Eijiro IMAI
Outside Director
Independent
Member, Compensation
Committee
Member, Special Committee
Nabeel BHANJI
Outside Director
Independent
Member, Special Committee
The Company is promoting various initiatives with the aim of expanding its Total Shareholder Return (TSR) through maximizing its corpo
rate value.
Currently, of the twelve (12) Directors, ten (10) are Outside Directors and two (2) are Directors who also serve as Executive Officers. Out
side Directors are the majority of the Board of Directors, in order to enhance the governance. In addition, including five (5) non-Japanese
Outside Directors, the Board of Directors is composed of Directors with experience in international business, expertise in business portfolio
management, business restructuring, M&A, capital markets and capital allocation, and deep knowledge in law and compliance, and the
composition of directors could also reflect in management sufficient diversity viewpoints in terms of gender and international experience.
In deciding the candidates for Director, the Nomination Committee judged that the candidates conformed to the Director Nomination
Criteria separately designated by the Nomination Committee and that the candidates had the appropriate qualifications for Director.
Directors
The specific details are described at the website .
*Diversity indicates diversity of gender, ethnicity, nationality, and other identities.
71
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Taro SHIMADA
Director
October 22, 1966
Goro YANASE
Director
October 27, 1965
April
1990: Joined ShinMaywa Industries, Ltd.
September1999: Joined Structural Dynamics Research Corpora
tion
February
2010: Representative Director and President, Japa
nese Corporation and Executive Vice Presi
dent, U.S. Headquarters, Siemens PLM Soft
ware
September2015: Senior Executive Officer, General Manager of
Digital Factory Business Headquarters, and
General Manager of Process and Drive Busi
ness Headquarters, Siemens K.K.
October 2018-
March 2019:
Joined the Company as Corporate Digital Busi
ness Officer
April 2019 -
April 2020:
Executive Officer and Corporate Vice President
of the Company
April
1991: Joined the Company
April
2017: General Manager, Nuclear Energy Systems &
Services Division of the Company
October
2017: General Manager, Nuclear Energy Systems &
Services Division, Toshiba Energy Systems &
Solutions Corporation
June
2018: Director and General Manager, Nuclear Energy
Systems & Services Division, Toshiba Energy
Systems & Solutions Corporation
April
2019: Director and Deputy General Manager, Power
Systems Division, Toshiba Energy Systems &
Solutions Corporation
October
1980: Joined Heiwa Audit Corporation
May
1982: Joined New York office of Peat Marwick Mitch
ell & Co. (currently KPMG LLP)
July
1990: Partner, Peat Marwick Mitchell & Co.
July 1994 -
March 2002:
Representative Director, KPMG Corporate Fi
nance K.K.
April 2002 -
present:
Representative, Akihiro Watanabe CPA Office
October 2002 -
March 2019:
Visiting Professor, Kobe University Graduate
School of Business Administration
April 2004 -
March 2008:
Founder, Representative Director and Partner,
GCA Corporation
October 2019 -
April 2020:
Director and Corporate Vice President, Toshiba
Digital Solutions Corporation
April 2020 -
March 2022:
Executive Officer and Corporate Senior Vice
President of the Company
Director and President, Toshiba Digital Solu
tions Corporation
December 2020 -
May 2022:
Outside Director, WingArc1st Inc.
March 2022 -
present:
Representative Executive Officer, President
and CEO of the Company
June 2022 -
present:
Director of the Company
June
2020: Representative Director, President & CEO,
Toshiba Elevator and Building Systems Corpo
ration
March 2022 -
present:
Representative Executive Officer, Corporate Se
nior Executive Vice President and COO of the
Company
June 2022 -
present:
Director of the Company
March 2008 -
February 2022:
Founder and Representative Director, GCA Sav
vian Group Corporation (currently GCA Corpo
ration)
May 2013 -
March 2019:
Outside Director, Qualicaps Co., Ltd.
December 2015 -
present:
Outside Director, Maruho Co., Ltd.
September 2016 -
May 2018:
Outside Director, FamilyMart UNY Holdings
Co., Ltd. (currently FamilyMart Co., Ltd.)
February
2022: Chairman, Managing Director, Chairman of
Asia Corporate Finance, Houlihan Lokey K.K.
June 2022 -
present:
Outside Director of the Company
Akihiro WATANABE
Outside Director
February 18, 1959
Directors
Outside Directors
72
Toshiba Integrated Report 2022
Paul J. BROUGH
Outside Director
November 13, 1956
Ayako Hirota WEISSMAN
Outside Director
May 9, 1957
Jerome Thomas BLACK
Outside Director
May 29, 1959
Outside Directors
September 1983: Joined KPMG Hong Kong
October
1991: Partner, KPMG Hong Kong
July
1995: Head of Consulting, KPMG Hong Kong
October
1997: Head of Financial Advisory Services, KPMG
Hong Kong
October
1999: Asia-Pacific head of Financial Advisory Ser
vices, KPMG Hong Kong and member of KP
MG’s global advisory steering group
September 2008: Joint-Liquidator of various Lehman Brothers
entities located in Asia
April 2009 -
March 2012:
Regional Senior Partner, KPMG Hong Kong
March 2012 -
present:
Chief Executive, Blue Willow Limited
September 2012 -
January 2013:
Chief Restructuring Officer, Sino-Forest Inter
national Corporation
September 2012 -
April 2021:
Independent Non-Executive Director, GL Limit
ed
February 2013 -
April 2015:
Chairman and CEO, Emerald Plantation Hold
ings Limited Group
January
1984: Vice President, Equitable Capital Management
January
1987: Managing Director, Smith Barney, Harris Up
ham & Co. Inc. (now Citigroup)
October
1999: Partner, Feirstein Capital Management LLC
January
2002: Portfolio Manager, Kingdon Capital Manage
ment LLC
June
2006: Founder and Chief Executive Officer, AS Hirota
Capital Management LLC
November 2010 -
present:
Senior Vice President, Senior Portfolio Manag
er and Director in charge of Asia Strategy, Hori
zon Asset Management, Inc. (now Horizon Ki
netics LLC)
July
1982: Joined Arthur Andersen & Co.
October
1986: Joined Ernst & Young LLP
January
1995: Joined Kurt Salmon Associates, Inc.
March
2002: Global Practice Development Managing Direc
tor, Kurt Salmon Associates, Inc.
January
2005: Managing Director, North America, Kurt Salm
on Associates, Inc.
January
2006: President, Consumer Products Division, Kurt
Salmon Associates, Inc.
January
2008: Chief Executive Officer, Kurt Salmon Associ
ates, Inc.
March
2009: Joined Aeon Co., Ltd., Advisor
May
2009: Executive Officer, Chief Executive of Group
Strategy & IT and Chief Executive Officer of
Asian Operation, Aeon Co., Ltd.
March
2010: Executive Officer, Chief Executive Officer of
ASEAN Business and Chief Executive Officer of
Group IT and Digital Business, Chief Group
Strategy Officer, Aeon Co., Ltd.
March
2011: Senior Managing Executive Officer, Chief Group
Strategy Officer; Chief Executive Officer of
Group IT and Digital Business, Aeon Co., Ltd.
October 2013 -
May 2015:
Director (until May 2015) and Interim CEO (until
April 2015), Greenheart Group Limited
October 2013 -
present:
Independent Non-Executive Director, Habib
Bank Zurich (Hong Kong) Limited
May 2015 -
May 2017:
Independent Non-Executive Director, Noble
Group Limited
January 2016 -
June 2016:
Executive Director and Chief Restructuring Offi
cer, China Fishery Group Limited
September 2016 -
present:
Independent Non-Executive Director, Vitasoy
International Holdings Limited
May 2017 -
December 2018:
Executive Chairman, Noble Group Limited
May 2017 -
present:
Independent Non-Executive Director, The Ex
ecutive Center Limited
December 2018 -
October 2019:
Executive Chairman, Noble Group Holdings
Limited
June 2019 -
present:
Outside Director of the Company
November 2021 -
present:
Independent Non-Executive Director, Guoco
Group Limited
June 2015 -
June 2019:
Outside Director, SBI Holdings, Inc.
June 2019 -
present:
Outside Director of the Company
February 2020 -
present:
Non-Executive Director, Nippon Active Value
Fund plc
March
2012: Senior Managing Executive Officer, Advisor to
Group CEO; Chief Group Strategy Digital and IT
Officer, Aeon Co., Ltd.
March
2013: Senior Managing Executive Officer, Advisor to
Group CEO; Chief Strategy, Digital, IT and Mar
keting Officer, Aeon Co., Ltd.
March
2014: Senior Managing Executive Officer, Merchan
dising Strategy and Digital Shift Promotion Of
ficer, Aeon Co., Ltd.
February 2015 -
May 2016:
Executive Officer, Digital Business, Aeon Co.,
Ltd.
March 2016 -
February 2017:
Director, Executive Officer and Vice President
of AEON RETAIL Co., Ltd.
April 2017 -
present:
Advisor, Aeon Co., Ltd.
June 2019 -
present:
Outside Director of the Company
May 2021 -
present:
Senior Advisor, Japan Computer Vision Corpo
ration
73
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Mikio MOCHIZUKI
Outside Director
July 8, 1954
Katsunori HASHIMOTO
Outside Director
September 16, 1955
George Raymond ZAGE III
Outside Director
January 20, 1970
Outside Directors
June
1991: Joined PriceWaterhouse
August 1992 -
February 2000:
Vice President of Investment Banking Division,
Goldman Sachs & Co
March
2000: Joined Farallon Capital Management L.L.C
September 2002: Managing Director, Farallon Capital Asia Pte.
Ltd
January 2008 -
August 2018:
Managing Director and CEO, Farallon Capital
Asia Pte. Ltd
August 2013 -
present:
Independent Non-Executive Director, White
haven Coal Limited
August 2016 -
June 2021:
Commissioner (Non-Executive), PT Aplikasia
Karya Anak Bangsa(Go-Jek)
April
1978: Joined YKK Corporation
October
1986: Chief Financial Officer, U.K. subsidiary of YKK
Corporation
April
1990: Corporate Accounting, Finance, Department,
DuPont K.K.
August
1996: Senior Financial Analyst, Automotive, DuPont
de Nemours, Inc.
January
1998: Global Business Reporting Project Leader, Fi
nance, DuPont de Nemours, Inc.
October 1998 -
April 1999:
Audit Manager, Finance, DuPont de Nemours,
Inc.
May
1999: Treasurer, Tokyo Treasury Center, DuPont K.K.
August
2001: General Manager of Finance, DuPont K.K.
January
2002: Director of Finance, DuPont K.K. (Board of Di
rectors)
April
1978: Joined Ishikawajima-Harima Heavy Industries
Co., Ltd. (currently IHI Corporation)
April
2011: Executive Officer, IHI Corporation and Presi
dent and CEO, IHI Inc. (Regional Headquarter
for the Americas)
April
2014: Managing Executive Officer and General Man
ager of Finance & Accounting Division, IHI Cor
poration
June
2016: Director, Managing Executive Officer and Gen
eral Manager of Finance & Accounting Division,
IHI Corporation
August 2018 -
present:
Founder and CEO, Tiga Investments Pte. Ltd.
Senior Advisor (Part time), Farallon Capital
Management, L.L.C
April 2019 -
present:
Commissioner (Non-Executive), PT Lippo Kar
awaci Tbk
June 2019 -
present:
Outside Director of the Company
June 2020 -
present:
Chairman and CEO, Tiga Acquisition Corp
May 2021 -
present:
Director, EDBI Pte. Ltd
September 2021 -
present:
Independent Non-Executive Director, The Ex
ecutive Center Limited
November 2009: Director and Managing Executive Officer – Fi
nance and Affiliated, DuPont K.K.
January
2013: Director and Senior Managing Executive Offi
cer, DuPont K.K.
June 2014 -
July 2018:
President and Representative Director, Danis
co Japan Ltd.
September 2014 -
September 2020:
Director and Executive Vice President, DuPont
K.K.
October 2020 -
present:
Chairperson, DSS Sustainable Solutions Ja
pan, LLC
Professor, Graduate School of Business Admin
istration, Tokyo Metropolitan University
June 2021 -
present:
Outside Director of the Company
April
2017: Director, Managing Executive Officer, President
of Industrial Systems & General Purpose Ma
chinery Business Area, IHI Corporation
April
2018: Director, IHI Corporation
June 2018 -
June 2021:
Advisor, IHI Corporation
June 2021 -
present:
Outside Director, Aida Engineering, Ltd.
June 2022 -
present:
Outside Director of the Company
74
Toshiba Integrated Report 2022
Eijiro IMAI
Outside Director
July 2, 1980
Nabeel BHANJI
Outside Director
December 19, 1985
Ayumi UZAWA
Outside Director
June 21, 1967
Outside Directors
October 1990 -
March 1993:
Joined Asahi Shinwa Accounting Corporation
(currently KPMG AZSA LLC), Osaka Office
August
1994: Registered as Certified Public Accountant
August 1995 -
March 1999:
Joined Deloitte Touche Tohmatsu (currently
Deloitte Touche Tohmatsu LLC), Tokyo Office
April 1999 -
October 2004:
2nd Investigation Division, Criminal Affairs Bu
reau, the Metropolitan Police Department (Fi
nancial Investigator and Inspector)
November 2004 -
February 2011:
Special Investigation Division, Secretariat, Se
curities and Exchange Surveillance Commis
sion
March 2011 -
present:
Representative, Uzawa CPA Office
July
2011: Registered as Certified Fraud Examiner
July 2011 -
present:
Advisor, Financial and Securities Expert Com
mittee, Supreme Public Prosecutors’ Office
October 2004 -
April 2007:
Joined Nishimura & Tokiwa (currently Nishimura & Asahi)
May
2007: Joined Bain Capital Asia LLC
October
2013: Joined Farallon Capital Japan LLC
January 2019 -
present:
Managing Director, Farallon Capital Japan LLC
March 2022 -
present:
Outside Director, BroadBand Tower, Inc.
June 2022 -
present:
Outside Director of the Company
July 2007 -
September 2008:
Investment Banker, Goldman Sachs & Co
September 2008 -
May 2010:
Investment Professional, Apax Partners
July 2012 -
present:
Senior Portfolio Manager, Elliott Investment Management
April 2021 -
present:
President, Elliott Opportunity II Corporation
June 2022 -
present:
Outside Director of the Company
June 2012 -
June 2018:
Director, Japan Association of Certified Fraud
Examiners (ACFE Japan)
June 2013 -
November 2014:
Outside Director, Meiji Machine Co., Ltd.
December 2014 -
November 2016:
Outside Director, Japan Best Rescue System
Co., Ltd.
September 2016 -
present
Auditor (part-time), Aurora Debt Collection Co.,
Ltd.
April 2020 -
March 2021:
Contract Staff (Advisor), New Energy and In
dustrial Technology Development Organiza
tion
June 2022 -
present:
Outside Director of the Company
75
Toshiba Integrated Report 2022
Strategies
Businesses
Data Section
Sustainability
Business Results
Executive Officers
Representative Executive Officer
President and CEO
Taro SHIMADA
Representative Executive Officer
Corporate Senior Executive Vice
President and COO
Goro YANASAE
General Executive, Strategic Planning Div. and Infrastructure Services Promotion Div.
Representative Executive Officer
Corporate Executive Vice President
and CFO
Masayoshi HIRATA
General Executive, Finance & Cash Management Div., Accounting Div. and Project Monitoring &
Oversight Div.
Representative Executive Officers
Corporate Executive Vice Presidents
Takayuki KONNO
General Executive, Marketing Div., Battery Div. and Branch Offices, Responsible for Infrastructure
Systems business (President and CEO, Toshiba Infrastructure Systems & Solutions Corporation),
Responsible for Building Solutions business, Assistant to Corporate Senior Vice President;
YOTSUYANAGI (Toshiba Plant Systems & Services Corporation), the Americas
Hiroyuki SATO
Responsible for Electronic Devices & Storage business (President and CEO, Toshiba Electronic
Devices & Storage Corporation), Europe, Middle East and Africa, China and East Asia
Executive Officers
Corporate Senior Vice Presidents
Keiichi YUMITA
General Executive, Information Systems Div. and Business Process Re-engineering Div.
Tsutomu KAMIJO
General Executive, Procurement Div. and Corporate Production Planning Div., Assistant to Corporate
Vice President; SATA (Corporate Manufacturing Engineering Center)
Shunsuke OKADA
General Executive, Cyber-Physical Systems x Design Div., Vice President, Cyber-Physical Systems x
Design Div., Responsible for Digital Solutions business (President and CEO, Toshiba Digital Solutions
Corporation)
Takamasa MIHARA
General Executive, Sustainability Management Div., Human Resources and Administration Div. and
Corporate Communication Div.
Tadasu YOTSUYANAG
General Executive, WEC Div., Responsible for Energy System business (President and CEO, Toshiba
Energy Systems & Solutions Corporation / Toshiba Plant Systems & Services Corporation), Asia
Pacific
Executive Officers
Corporate Vice Presidents
Ayumi WADA
General Executive, Legal & Compliance Div.
Yutaka SATA
General Executive, Corporate Technology Planning Div., Research & Development Center, Corporate
Manufacturing Engineering Center and Digital Innovation Technology Center, Vice President, Digital
Innovation Technology Center
Yuko HIRAI
General Executive, Internal Audit Div. Vice President, Audit Committee Office
As of June 28, 2022
76
Toshiba Integrated Report 2022
Topic
Accounting Metric
Category
Unit of Measure
Code
Energy Management
(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable
Quantitative
Gigajoules (GJ),
Percentage (%)
RT-EE-130a.1
Hazardous Waste
Management
Amount of hazardous waste generated, percentage
recycled
Quantitative
Metric tons (t),
Percentage (%)
RT-EE-150a.1
Number and aggregate quantity of reportable spills,
quantity recovered
Quantitative
Number,
Kilograms (kg)
RT-EE-150a.2
Product Safety
Number of recalls issued, total units recalled
Quantitative
Number
RT-EE-250a.1
Total amount of monetary losses as a result of legal
proceedings associated with product safety
Quantitative
Reporting currency
RT-EE-250a.2
Product Lifecycle
Management
Percentage of products by revenue that contain IEC
62474 declarable substances
Quantitative
Percentage (%) by
revenue
RT-EE-410a.1
Percentage of eligible products, by revenue, that meet
ENERGY STAR® criteria
Quantitative
Percentage (%) by
revenue
RT-EE-410a.2
Revenue from renewable energy-related and energy
efficiency-related products
Quantitative
Reporting currency
RT-EE-410a.3
Materials Sourcing
Description of the management of risks associated with
the use of critical materials
Discussion
and Analysis
n/a
RT-EE-440a.1
Business Ethics
Description of policies and practices for prevention of:
(1) corruption and bribery; and
(2) anticompetitive behavior
Discussion
and Analysis
n/a
RT-EE-510a.1
Total amount of monetary losses as a result of legal
proceedings associated with bribery or corruption
Quantitative
Reporting currency
RT-EE-510a.2
Total amount of monetary losses as a result of legal
proceedings associated with anti-competitive behavior
regulations
Quantitative
Reporting currency
RT-EE-510a.3
Activity Metric
Category
Unit of Measure
Code
Number of units produced by product category
Quantitative
Number
RT-EE-000.A
Number of employees
Quantitative
Number
RT-EE-000.B
*1: Renewable energy refers to energy from solar power
*2: The total volume of hazardous waste is the amount of specially controlled industrial waste defined by the Waste Management and Public Cleasing Law in Japan
*3: Volume of hazardous waste recycled refers to the amount of specially controlled industrial waste that the company recycled
SASB Reference Table
77
Toshiba Integrated Report 2022
Strategies
Sustainability
Businesses
Data Section
Business Results
Disclosure
Reference
(1) 21,009,647 GJ
(2) 82%
(3) 0.3%
Overview of Environmental Impacts
Response to Climate Change in Business Activities
Total amount of hazardous waste: 3,500 t
Percentage recycled: 85%
Percentage incinerated: 11%
Overview of Environmental Impacts
Reduction of Waste Volume in Business Activities
Number of substances: 25
Amount of chemical substances released: 520,846 kg
No reportable chemical substances were released into the soil
Number of recalls started from FY2021: 2 voluntary recalls
Number of units recalled: 4,151
Disclosure of Product Safety and Quality Information
—
Toshiba Group promotes green procurement as a part of our environmental consider-
ations in the manufacturing processes. Our Green Procurement Guidelines supported
management of chemical substances in procured goods by establishing the “Toshiba
Group Environment-related Substance List,” which includes applicable substances on
the IEC62474 Declarable Substance List. Since 1999, we have revised the Green Pro-
curement Guidelines as necessary in order to respond to changing circumstances,
such as stricter regulations on chemicals contained in products.
Toshiba Group Green Procurement Guidelines
Green Procurement / Green Purchase
Some multifunction peripherals (MFPs) manufactured and sold by Toshiba Tec Corpo-
ration meet the ENERGY STAR® criteria. However, net sales from these products is insig-
nificant in terms of Toshiba Group’s overall consolidated sales.
Toshiba Group provides a wide range of equipment, systems and services that gener-
ate, transfer, store and smartly use electricity. We aim to build a society that realizes
both a stable electricity supply and harmony with the environment and future genera-
tions can live with peace of mind.
Toshiba Group introduced Business Continuity Plan (BCP) Procurement Guidelines in
2012. In the same year, we built a system to manage corporate information on up-
stream suppliers, in order to minimize the risk of and the time required to resolve sup-
ply chain disruptions.
Risk Management Using the Business Continuity Plan
(BCP)
Toshiba Group has engaged in rigorous efforts to prevent violation of antitrust law,
bribery, and other corrupt practices. For each, it has established compliance programs
reflecting laws and regulations in Japan and overseas as well as associated sets of
guidelines. Those guidelines clearly define and prohibit subject acts such as cartels,
bribery and facilitation payments. In addition, the compliance programs and guide-
lines stipulate the internal systems, and provide for pre-screening related to contact
with civil servants and a due diligence policy for comprehending risks of bribery re-
garding with concerned parties. Also, in accordance with provisions of the compliance
programs, Toshiba makes sure to provide education, and conduct voluntary audit, etc.
To prevent violations and early detect situations leading to violations, Toshiba Group
established the whistleblower system for employees and the Clean Partner Line for
suppliers and business partners as a system to report violations or suspected viola-
tions, encouraging them to use such systems.
Compliance with the Antimonopoly Act and Anti-
corruption
0 yen
0 yen
*1
*2
*3
*4
*5
*5
Disclosure
Reference
Toshiba Group contributes to a sustainable future through the global delivery of prod-
ucts and services in a wide range of business domains.
Toshiba Group Business Domains
116,224
Corporate Data
*6
*4: Volume of hazardous waste incinerated refers to the amount of specially controlled industrial waste that the company used for energy recovery
*5: Reportable amount of chemical substances released is the number and volume of substances managed by Toshiba Group among substances designated as hazardous substances in the Comprehensive
Environmental Response, Compensation, and Liability Act (CERCA) in the U.S.
*6: As of March 31, 2022
78
Toshiba Integrated Report 2022
2018/3
2019/3
2020/3
2021/3
2022/3
Individuals and others
15.9 %
16.8 %
20.2 %
20.5 %
16.9 %
Overseas entities and others
72.3
69.8
62.7
50.5
52.9
Other entities
1.5
1.7
1.8
1.8
1.6
Securities companies
1.1
1.6
1.9
3.1
2.8
Financial institutions
9.2
10.1
13.4
24.1
25.8
Name of Shareholder
Shareholding ratio
(percentage)
The Master Trust Bank of Japan, Ltd. (Trust Account)
11.6 %
SUNTERA (CAYMAN) LIMITED AS TRUSTEE OF ECM MASTER FUND
4.6
CHINOOK HOLDINGS LTD
3.6
Custody Bank of Japan, Ltd. (Trust Account)
3.5
3D INVESTMENT VALUE MASTER FUND
3.4
BCSL CLIENT RE BBPLC NYBR
2.9
The Dai-ichi Life Insurance Company, Limited
2.7
Nippon Life Insurance Company
2.6
GOLDMAN SACHS INTERNATIONAL
2.5
MSIP CLIENT SECURITIES
2.5
100
80
60
40
20
(%)
2018/3
2019/3
2020/3
9.2
1.1
1.5
72.3
15.9
10.1
1.6
1.7
69.8
16.8
13.4
1.9
1.8
62.7
20.2
3.1
24.1
1.8
50.5
20.5
2021/3
Overseas entities and others
52.9%
Individuals
and others
16.9%
Financial
institutions
25.8%
Securities
companies
2.8%
Other entities
1.6%
2.8
25.8
1.6
52.9
16.9
2022/3
0
Shareholder Information
Note: For the purpose of calculation of shareholding ratio, share units of treasury stock are included in “Individuals and others”.
(Notes)
1. For the purpose of calculation of shareholding ratio in the above table of principal shareholders, treasury shares are excluded from total number of issued shares (denominator).
2. The change report on large-volume holdings offered for public inspection on March 4, 2021 notes that a total of 11 companies, including BlackRock Japan Co., Ltd., held 23,720K shares as of February 26,
2021 (percentage of stock certificates, etc. held: 5.21%). However, as the Company was unable to confirm the beneficial ownership or number of shares held as of the end of the fiscal year under review,
these companies are not included in the table above.
3. The report on large-volume holdings offered for public inspection on April 2, 2021 notes that 3D Investment Partners Pte. Ltd. held 32,791K shares as of March 29, 2021 (ratio of stock certificates, etc.
held:7.2%). However, as the Company was unable to confirm the beneficial ownership or number of shares held as of the end of the fiscal year under review, 3D Investment Partners Pte. Ltd. is not included
in the above table.
4. The change report on large-volume holdings offered for public inspection on March 31, 2022 notes that Effissimo Capital Management Pte Ltd. held 42,868K shares as of March 24, 2021 (ratio of stock cer
tificates,etc. held: 9.90%). However, as the Company was unable to confirm the beneficial ownership or number of shares held as of the end of the fiscal year under review, Effissimo Capital Management
Pte Ltd. is not included in the above table.
5. The change report on large-volume holdings offered for public inspection on June 2, 2022 notes that Farallon Capital Management L.L.C. and CHINOOK HOLDINGS LTD jointly held 22,960K shares as of May
26, 2022 (percentage of stock certificates, etc. held: 5.30%). However, as the Company was unable to confirm the beneficial ownership or number of shares held as of the end of the fiscal year.
Distribution of Shareholder
(As of March 31 of each year)
Principal Shareholders
(As of March, 31, 2022)
79
Toshiba Integrated Report 2022
Strategies
Sustainability
Businesses
Data Section
Business Results
2018/3
2019/3
2020/3
2021/3
2022/3
Common stock price
(Yen, fiscal year)
High
347
3,980
4,030
4,010
5,245 *3
Low
193
2,840
1,982
2,301
3,825
Nikkei average
(Yen)
21,454.30
21,205.81
18,917.01
29,178.80
27,821.43
Number of shares issued
(Millions of shares)
6,521
544
455
455
433*3
Market capitalization
(Billions of yen)
2,008.4
1,917.6
1,082.9
1,702.7
2,014.1
Earnings (Loss) per share attributable to
shareholders of the Company
(Yen)
1,628.88
1,641.85
(236.39
251.25
442.05
Annual dividends per share
(Yen)
—
30
20
80
220
Payout ratio
(%) (Consolidated)
—
1.83
—
31.8
49.8
Number of shareholders
300,871
270,570
269,067
270,598
228,187
Price-to-earnings ratio (PER)
(Times)
1.89
2.15
—
14.89
10.52
Price-to-cash flows ratio (PCFR)
(Times)
1.7
2.0
—
8.5
7.3
Price-to-book value ratio (PBR)
(Times)
2.6
1.3
1.1
1.5
1.7
*1
*2
*4
)
2017
2018
2019
2020
2021
2022
Yen
500
400
300
200
100
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
Millions of shares
2,000
4,000
6,000
0
0
FY2017*
High
¥3,470
Low
¥1,930
FY2018*
High
¥3,980
Low
¥2,840
FY2019*
High
¥4,030
Low
¥1,982
FY2020*
High
¥4,010
Low
¥2,301
FY2021*
High
¥5,245
Low
¥3,825
Stock Information
Stock Price and Trading Volume Trends (for past 5 fiscal years)
*1: Common stock price until July 31, 2017 is based on the 1st section of the Tokyo Stock Exchange, and from August 1, 2017 until January 28, 2021 on the 2nd section of the Tokyo Stock Exchange.
Also from January 29, 2021 onward is based on the 1st section of the Tokyo Stock Exchange
*2: Market capitalization = Common stock price [year-end/yen/close] × Total issued shares
*3: The Company implemented a share consolidation with a ratio of 10 common shares to 1 share as of October 1, 2018.
*4: Earnings (Loss) per share attributable to shareholders of the Company before the fiscal year ended March 31, 2018 has been revised.
* The Company implemented a share consolidation with a ratio of 10 common shares to 1 share as of October 1, 2018. The stock price and the trading volume are calculated assuming that the share
consolidation was implemented on April, 2017.
80
Toshiba Integrated Report 2022
Consolidated Subsidiaries and Affiliated Companies Accounted for
by the Equity Method
Japan Semiconductor Corporation
Kaga Toshiba Electronics Corporation
Nishishiba Electric Co., Ltd.
Nuclear Fuel Industries, Ltd.
NuFlare Technology, Inc.
Toshiba Data Corporation
Toshiba Electronic Devices & Storage
Corporation
Toshiba Digital Solutions Corporation
Toshiba Elevator and Building Systems
Corporation
Toshiba Energy Systems & Solutions
Corporation
Toshiba Global Commerce Solutions Holdings
Corporation
Toshiba Industrial Products and Systems
Corporation
Toshiba Infrastructure Systems & Solutions
Corporation
Toshiba IT-Services Corporation
Toshiba Lighting & Technology Corporation
Toshiba Materials Co., Ltd.
Toshiba Plant Systems & Services Corporation
Toshiba Tec Corporation*
Toshiba Tec Solution Service Corporation
Toshiba Trading Inc.
Toshiba America Business Solutions, Inc.
Toshiba America Electronic Components, Inc.
Toshiba America, Inc.
Toshiba Asia Pacific Pte., Ltd.
Toshiba (Australia) Pty., Ltd.
Toshiba (China) Co., Ltd.
Toshiba Dalian Co., Ltd.
Toshiba Electronics Europe GmbH
Toshiba Electronic Components Taiwan
Corporation
Toshiba Elevator (China) Co., Ltd.
Toshiba Elevator (Shenyang) Co., Ltd.
Toshiba Europe GmbH
Toshiba Europe Ltd.
Toshiba Gulf FZE
Toshiba Hydro Power (Hangzhou) Co., Ltd.
Toshiba Industrial Products Asia Co., Ltd.
Toshiba Information Equipment (Philippines),
Inc.
Toshiba International Corporation
Toshiba International Procurement Hong Kong,
Ltd.
Toshiba JSW Power Systems Private Ltd.
Toshiba Lighting & Technology (Kunshan)
Co., Ltd.
Toshiba Semiconductor (Thailand) Co., Ltd.
Toshiba Tec Europe Imaging Systems S.A.
Toshiba Tec France Imaging Systems S.A.
Toshiba Tec Information Systems (Shenzhen)
Co., Ltd.
Toshiba Tec Singapore Pte., Ltd.
Toshiba Tec U.K. Imaging Systems Ltd.
Toshiba Transmission & Distribution Systems
Asia Sdn. Bhd.
Toshiba Transmission & Distribution Systems
(India) Private Ltd.
TPSC (India) Private Ltd.
TPSC (Thailand) Co., Ltd.
EREX New Energy Saiki Co., Ltd.
Kioxia Corporation
Kioxia Holdings Corporation
KK6 Safety Measures Joint Venture Corporation
SBS Toshiba Logistics Corporation
Toshiba Mitsubishi Electric Industrial Systems
Corporation
WingArc1st Inc.
Changzhou Toshiba Transformer Co., Ltd.
Dalian Toshiba Locomotive Electric Equipment
Co.,Ltd.
GE Toshiba Turbine Components de Mexico
S.R.L. de C.V.
Henan Pinggao Toshiba High-Voltage
Switchgear Co., Ltd.
PG Toshiba (Henan) Switchgear Components
Manufacturing Co. , Ltd.
Schneider Toshiba Inverter SAS
TDS Lithium-Ion Battery Gujarat Private Ltd.
TMEIC Corporation Americas
TMEIC Industrial Systems India Private Ltd.
Toshiba Mitsubishi-Electric Industrial Systems
(China) Corporation
Domestic
Domestic
Overseas
Overseas
103 companies in total including the 20 above
* Listed Company in stock market
179 companies in total including the 31 above
47 companies in total including the 7 above
87 companies in total including the 10 above
Consolidated Subsidiaries
(As of March 31, 2022)
Affiliated Companies Accounted for by the Equity Method
(As of March 31, 2022)
81
Toshiba Integrated Report 2022
Strategies
Sustainability
Businesses
Data Section
Business Results
Corporate History
July
1875
A shop-cum-factory (called Tanaka Seizo-sho from 1882; later Shibaura Engineering Works Co., Ltd.) opened in Tokyo.
Apr.
1890
Hakunetsu-sha & Co., Ltd. (from 1899 Tokyo Electric Company) founded.
Jan.
1896
Tokyo Hakunetsu Dentokyu Seizo Co., Ltd. established (Renamed Tokyo Electric Co, Ltd. in 1899)
June 1904
Shibaura Engineering Works Co., Ltd. established.
Sept. 1939
Shibaura Engineering Works Co., Ltd. merged with Tokyo Electric Company to become Tokyo Shibaura Electric Co., Ltd.
Oct.
1942
Absorbed Shibaura Mazda Industry Co., Ltd. and Nippon Medical Electric Co., Ltd., expanding home appliance line-up.
July
1943
Absorbed Tokyo Electric Co., Ltd. and Toyo Fire Brick Co., Ltd., expanding line-up of communications equipment.
Feb.
1950
Under the Law on Elimination of Excessive Concentration of Economic Power, a group of 14 companies, including Tokyo Electric
Appliances Co., Ltd., now Toshiba TEC Corp., was separated from Tokyo Shibaura Electric Co., Ltd.
Apr.
Absorbed Toshiba Rolling Stock Co., Ltd., expanding rolling stock products.
Nov.
1955
Absorbed Dengyo-sha Prime Mover Works Ltd.
Nov.
1961
Absorbed lshikawajima-Shibaura Turbine Co., Ltd., expanding line-up of turbines.
Apr.
1984
Japanese official trade name changed to “Toshiba Corporation.”
June 1998
Introduced corporate executive officer system.
Apr.
1999
Introduced in-house company system.
July
2001
Changed registered headquarters from Kawasaki City, Kanagawa, to Minato Ward, Tokyo.
June 2003
Adopted the Company with Committees (now, company with three Committee, etc.) system.
Oct.
Transferred electric equipment for manufacturing plant business to TMA Electric Corp. (now Toshiba Mitsubishi-Electric Industrial
Systems Corp.).
Oct.
2006
Acquired Westinghouse Group.
June 2009
Raised funds by public offering.
Oct.
Acquired HDD business from Fujitsu Ltd.
Oct.
2010
Merged mobile phone business with that of Fujitsu Ltd. and transferred it to Fujitsu Toshiba Mobile Communications Ltd.
(now Fujitsu Mobile Communications Ltd.).
July
2011
Acquired Landis+Gyr AG.
Mar.
2012
Transferred all shares of Toshiba Mobile Display Co., Ltd. to Japan Display Inc., a company established with co-funding by Innovation
Network Corporation of Japan, Toshiba Corporation, Sony Corporation and Hitachi, Ltd.
Aug.
Toshiba TEC Corporation acquired the retail store solutions business of US-based IBM (International Business Machines Corporation).
Sept. 2015
Decided that, in principle, the majority of the directors of the Company, and all members of the Nomination Committee, Audit Committee
and Compensation Committee, shall be outside directors.
Mar.
2016
Sold off all shares of Toshiba Medical Systems Corporation.
June
Sold off 80.1% shares of Toshiba Lifestyle Products & Services Corporation.
June
The Board decided to no longer appoint advisers to the Board (“Sodanyaku”).
Mar.
2017
Westinghouse Group deconsolidated from Toshiba Group by Westinghouse Electric Company filing a voluntary petition for relief under
Chapter 11.
Apr.
Split off and transferred the memory business to Formerly Toshiba Memory Corporation by means of a company split.
July
Split off and transferred the social infrastructure business to Toshiba Electric Service Corp. (Toshiba Infrastructure Systems & Solutions
Corp.) by means of a company split.
Split off and transferred the electronic devices business to Toshiba Electric Devices & Storage Corp. by means of a company split.
Split off and transferred the ICT solutions business to Toshiba Solutions Corp. (Toshiba Digital Solutions Corp.) by means of a company
split.
July
Sold off 100% shares of Landis+Gyr Group.
Oct.
Split off and transferred the energy business to Toshiba Energy Systems & Solutions Corp. by means of a company split.
Feb.
2018
Transferred 95% shares of Toshiba Visual Solutions Corporation to China’s Hisense Group.
June
Transferred all shares of Formerly Toshiba Memory Corporation.
Oct.
Transferred 80.1% shares of Toshiba Client Solutions Co., Ltd. (now Dynabook Inc.) to Sharp Corporation.
Aug.
2022
Transferred 55% of the outstanding shares of Toshiba Carrier Corporation to US-based Global Comfort Solutions LLC, a subsidiary of
US-based Carrier Corporation
82
Toshiba Integrated Report 2022
Toshiba Corporation
1-1, Shibaura 1-chome, Minato-ku, Tokyo, Japan (headquarters)
Founded
July 1875
Number of Employees
Approx. 116,000 (consolidated)
Fiscal Year
April 1 to March 31
Authorized Number of Shares
1 billion
Number of Shares Issued
433,137,955
Number of Shareholders
186,263
Stock Exchange Listings
Tokyo, Nagoya
Ticker Code on the Tokyo
Stock Exchange / ISIN
6502 / JP359 2200004
Shareholder Registration Agent
Sumitomo Mitsui Trust Bank, Limited
This report has not been audited by our independent auditor.
Forward-looking statements
This report contains forward-looking statements concerning future plans, strategies and the perfor
mance of Toshiba Group. These forward-looking statements are not historical facts, rather they are
based on management’s assumptions and beliefs in light of the economic, financial and other data
currently available. 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 that,without lim
itation, relate to economic conditions, worldwide mega-competition in the electronics business, cus
tomer demand, foreign currency exchange rates, tax rules, regulations and other factors. Toshiba there
fore wishes to caution readers that actual results might differ materially from its expectations.
Regarding items reported in this report
Any corrections made to this report will be published on our website, as referenced above.
Product names may be trademarks of the respective companies.
This report has been prepared for the purposes of providing information and does not constitute an
offer to sell or a solicitation of an offer to buy any security of Toshiba, its subsidiaries or any other com
pany in Japan, the United States or any other jurisdiction.
Corporate Data (As of March 31, 2022)
83
Toshiba Integrated Report 2022
Strategies
Sustainability
Businesses
Data Section
Business Results
The goal of this report is to act as an effective communication tool that helps all stakeholders including shareholders and investors to
understand about Toshiba Group. We have endeavored to report strategies and results in an integrated manner including both financial
and non-financial information.
This integrated report conforms to the integrated reporting frameworks recommended by the International
Integrated Reporting Council and by the Guidance for Collaborative Value Creation issued by the Japanese Minis
try of Economy, Trade and Industry.
Reporting period: April 1, 2021 to March 31, 2022, including some information after April 2022.
Reporting scope: Toshiba Corporation and Toshiba Group
Please refer to our website for detailed investors information and non-financial information.
Cyber Security Report
Integrated Report
IR website for smartphones
Sustainability website
Environment website
Editorial Policy
Financial and non-financial information
Financial information
Non-financial information
Details of cyber security enhancement activities
Reports
Website
Sources of timely information
Overview of cyber security activities
Financial reports (main), non-financial
outlines
Financial information; legal
disclosures
Sustainability infomation
Environmental information
IR website
Financial information; legal
disclosures
84
Toshiba Integrated Report 2022
Issued in February 2023
Investor Relations Group
Corporate Strategy Office
Strategic Planning Division