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 the 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 theToshiba
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 theToshiba 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.
Message from CEO
03
Message from the Chairperson of the
Board of Directors
06
History of Value Creation—Toshiba’s DNA
07
Strategies
Toshiba Group Management Policy
09
Toshiba Group Technology Strategy
19
Intellectual Property
27
Business Results
Financial Highlights (Consolidated)
33
Non-Financial Highlights (Consolidated)
34
Management Organization Chart
35
Toshiba Group’s Business Activities
36
Businesses
Energy Systems & Solutions
37
Infrastructure Systems & Solutions
39
Building Solutions
41
Electronic Devices & Storage Solutions
43
Digital Solutions
45
Others
47
Sustainability
Sustainability Management
48
Material Issues and KPIs
51
Information Disclosure Based on the TCFD
Recommendations
57
Consideration of Ecosystems
64
Highlights of Corporate Governance
65
Corporate Governance
66
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
Toshiba Integrated Report 2023
01
02
Toshiba Integrated Report 2023
Message from CEO
Taro SHIMADA
Representative Executive Officer,
President and CEO
The tender offer for shares of Toshiba Corporation conducted by TBJH Inc. which took place
from August 2023, has now been completed. Since 2021, Toshiba has been reviewing strate-
gic alternatives. The Board of Directors and Executive Officers held many serious discussions
over what path the Toshiba Group should take and what is the best option for our various
stakeholders. We concluded that the best way forward is to privatize Toshiba to build a stable
business foundation and gain the unified support of shareholders. Going forward, Toshiba
will strive to enhance corporate value over the medium- to long-term under its new share-
holder structure.
Toshiba Group aims to achieve carbon neutrality and a circular economy through digitaliza-
tion.
Digital technology is an important means of enhancing corporate value. As the digital
economy evolves, new social value will be created in the future having various companies
get connected across industrial boundaries. Toshiba has identified its own digital evolution
(DE), digital transformation (DX) and quantum transformation (QX) strategies.
DE, which is the first stage, involves digitalizing infrastructure to enhance services and
recurring businesses. This is to be followed by DX, which is a stage to build platforms based
on DE, forming a cycle where earnings rapidly expand. Beyond that, various platforms will be
created under the DX stage, and QX will emerge, in which optimal solutions are identified
from a complex interplay of platforms.
Let’s look at Toshiba Group’s growth potential over the short-, medium- and long-term. First
in the short-term, we intend to expand our facilities in order to address strong demand for
the power semiconductors and rechargeable batteries that are so vital to the achievement of
carbon neutrality.
Over the medium-term horizon, we aim to expand digital business driven by our infra-
structure assets. We will achieve DE and DX through software defined transformation that
separates apps, software and hardware and builds platforms. Furthermore, we are taking the
lead on various initiatives in the quantum field to help generate the QX that society expects
to be implemented from 2030 onwards, and in regard to quantum cryptography communi-
cations, commercial demonstrations are underway around the world.
Toshiba Integrated Report 2023
03
04
Toshiba Integrated Report 2023
Over the long-term, we intend to provide the technologies and solutions required to achieve
carbon neutrality and turn those activities into future pillars of earnings. Not only will we
strive to reduce CO2 emissions, but we will also focus on carbon negative activities that in-
volve the removal of CO2, such as CO2 capture, transport, storage, and utilize, so we can pro-
vide customers with a variety of technologies, products and solutions for both CO2 reduction
and removal.
Toshiba’s key strength that will support this growth lies in its technological diversity. This is
not the mere result of a single technology creating a single product, but of combining various
technologies that we have amassed in the laboratory. The way to create unprecedented
products and services is to combine technologies from multiple fields. To ensure we suc-
cessfully link high-potential technologies to our business, we intend to break down organiza-
tional barriers, “not-invented-here syndrome,” and any other internal and external rigidities,
and to promote various internal reforms.
“Committed to People, Committed to the Future.” Toshiba Group is made up of people
who feel naturally empowered when they see this Basic Commitment. It is my job to build a
stable management platform after privatization, and show how transforming the company
from a medium- to long-term perspective will enable us to grow as a company that is able to
contribute to the realization of a sustainable society.
To achieve growth in a sustainable manner, we will continue to place the highest priority
on life, safety, and compliance (observance of laws, regulations, social norms, and ethics)
and strive to strengthen our environment, social, and governance (ESG) activities in order to
build an ethical and transparent management platform.
I would like to take this opportunity to ask Toshiba’s multifaceted stakeholders for their kind
understanding of our Group’s unwavering Basic Commitment and determination and for
their continued support.
November 2023
In September 2023, the tender offer by TBJH Inc. for shares of Toshiba Corporation was successfully completed. The
Board of Directors had supported this tender offer and recommended that shareholders tender their shares. We express
our deep appreciation to many shareholders for their understanding of the company’s position.
Going forward, as a privately owned company, Toshiba will continue to enhance its corporate value.
Since becoming Chairperson, I have said that Toshiba is a “good company,” with its wonderful corporate philosophy of
“Committed to People, Committed to the Future,” and excellent employees who dedicate themselves for the benefit of
customers and society, but yet not a “strong company.” And to transform Toshiba to a strong company, we went through
a process of almost a year that concluded with privatization.
All of the Directors shared the mission to build a strong Toshiba. With the Special Committee composed entirely of Out-
side Directors playing the key role, we put a great deal of time and effort into overseeing Mr. Shimada, the CEO, and his
executive team, to ensure that the process was fully competitive and fair. We were able to achieve a fair and transparent
process, maintain a competitive environment and reach a result. We believe that our shareholders are convinced of that,
and we now feel that we have fulfilled our obligations as the Board.
For Toshiba to execute a consistent business strategy over the medium- to long-term and to succeed in its transforma-
tion to become a strong company, it is necessary to build a stable management base, and privatization will contribute to
enhancing Toshiba's corporate value. The privatization is a major milestone, however, it is not the goal.
Guided by its corporate philosophy of "Committed to People, Committed to the Future,” Toshiba has a vision for
contributing to the achievement of carbon neutrality and a circular economy through digitization, and technological
diversity backed by its history that makes this possible. Toshiba's role in contributing to the realization of a sustainable
society will not change. Toshiba's most important management resource is its excellent employees, like those I have met
myself in our labs, factories and other facilities, in Japan
and overseas. It is important to focus on intangible assets
such as human capital, which are not recorded on the bal-
ance sheet, and to bring out the full value of such assets.
When trying to overcome difficulties, I believe that it is the
power of people that counts.
I am convinced that Toshiba, having gone through privat-
ization, and by focusing on business and management
that promotes growth, will be able to realize its potential
and accomplish a true revival, and grow once again.
November 2023
Message from the Chairperson of the Board of Directors
Akihiro WATANABE
Outside Director
Chairperson of the Board of Directors
Message from CEO
06
Toshiba Integrated Report 2023
Toshiba Integrated Report 2023
05
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.
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.
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.
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.
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.
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
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
*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
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
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.
1991
World’s first
1989
World’s first
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) * NEDO Project
2020
World’s leading scale
2021
World’s No. 1
2021
Japan’s No. 1
1985
World’s first
Toshiba Integrated Report 2023
07
08
Toshiba Integrated Report 2023
Provide technologies and solutions
to realize carbon neutrality
Expand the digital business driven by our
infrastructure assets (DE-DX-QX)
Address strong demand for power
semiconductors and rechargeable batteries
by expanding our facilities
2030
2025
2024
2023
Long-
term
Medium-
term
Short-
term
Toshiba Group Management Policy
Contribute to the achievement of carbon neutrality & circular economy through digitization
Toshiba Group’s Vision
Business growth in three steps (time horizons)
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.
Future
For our children
Achieving sustainability of
people and the planet
Social
Challenges
Achieving carbon neutrality
and a circular economy
Toshiba
Initiatives
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
Evolution of the digital economy
“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 con-
nected by data.” After the society is further stabilized, we will move on to consider the “Future.” In other words, the greater question be-
comes 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 means to realize these things that need to be done, “digital” is important. As the digital economy evolves, new social value will be cre-
ated in the future having various companies get connected across industrial boundaries.
Toshiba has identified the DE, DX and QX strategy to respond to those changes.
The first step of its development is digital evolution (DE) to enhance services and recurring businesses.
That is to be followed by digital transformation (DX), which is a stage to build platforms based on DE. Once the platforms are built, it
will be possible to create a cycle of rapidly expanding earnings.
We will further develop this into a quantum transformation (QX), a quantum world where various platforms are connected across in-
dustries. That will occur after DX, but Toshiba possesses numerous innovative technologies that can provide a foundation of DX.
Here is our growth strategy to enhance Toshiba Group’s corporate value formulated in three phases; short-, medium- and long-term hori-
zons.
In the short-term, we will strengthen our production capacity in the device field in order to capture demand for products including
power semiconductors and SCiB™ rechargeable batteries, for which supply is short due to the rapid spike in demand for EV and other
products.
Over the medium-term, we will transform our business by digitizing the infrastructure assets that Toshiba has cultivated over its long
history and deployed across society.
Lastly, we believe that the technologies and solutions to achieve carbon neutrality, which will become increasingly important as we
move toward 2030, will grow to become pillars of our earnings.
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
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10
Toshiba Integrated Report 2023
Address strong demand for power semiconductors and
rechargeable batteries by expanding our facilities
Expand the digital business driven by our infrastructure assets
(DE-DX-QX)
Kaga Toshiba’s new 300mm fab
(computer-generated image of facility upon completion of Phase 2)
Products that support
our competitiveness
Power MOSFETs for automotive applications
High power modules (PPI)*1
SiC MOSFET modules
for railways (iXPLV)*2
Construction of new fab began in April 2023
SCiB™
rechargeable battery main products
Fab at
Yokohama Battery Operations
Business expansion targeting domains
in which high input/output
and high reliability are essential
Storage battery systems
for electricity supply
demand adjustment
Commercial cars
Railways
Automobiles
UPS
AGVs
Planning to increase production
capacity from FY2025
Toshiba Group Management Policy
Other Co.
App
Other Co.
App
App
App
App
DX
Create a platform afer separating apps, sofware and hardware
DE: Digital Evolution
Current status
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
App
Short-term
Medium-term
First, measures to respond to growing demand for power semiconductors and rechargeable batteries in the short-term.
Demand for power semiconductors, which efficiently control electric power, is growing worldwide as needs for energy saving expand.
In particular, demand for automotive and industrial applications where our semiconductor business excels is expected to continue to
grow at a CAGR of 7% through 2025.
We are currently receiving inquiries from customers that far exceed our production capacity, and the construction of a new 300mm
wafer fab at Kaga Toshiba Electronics Corporation, where power semiconductors are manufactured, has begun with the aim of starting
operations in FY2024.
This is expected to make a significant contribution to sales and OP growth in FY2024 and beyond.
Here we explain software defined transformation, a medium-term effort that holds the key to expanding the digital business driven by our
infrastructure assets.
Currently, software is embedded into hardware and provided as a system. To reach the DE, the first stage, it is important to first unbun-
dle the software and hardware. We call this software defined transformation. In reality, some software remains within the hardware, but
this software defined transformation which allows access to the outside world will make significant changes.
It enables the addition of a variety of applications, which will generate new services as well as to enhance the recurring businesses or
providing SaaS business where necessary functions will be provided as a service for only the necessary volume. This will contribute signifi-
cantly to making business more profitable.
Next, software standardization enables us to build platforms by securing connectivity with third-party hardware and applications. This
is the DX, the second stage. It enables a highly scalable business model while keeping down the capital deployment and leads to exponen-
tial growth.
We have also received orders for SCiB™ rechargeable batteries in a wide range of fields as an important device indispensable for achieving
carbon neutrality.
They are used not only in transportation vehicles such as trains, passenger and commercial cars, but also in industrial equipment such
as automated guided vehicles and infrastructure such as electricity supply demand adjustment facilities.
In line with the government policy of ramping up domestic production capacity, we have received a subsidy from METI and plan to
ramp up production capacity at our Yokohama Battery Operations in 2025.
Deploy resources to start operations of new 300mm wafer fab at Kaga in FY2024
Increase production capacity to meet growing demand in heavy-duty domains
where the strengths of SCiB™ can be leveraged
*1 PPI (Press Pack IEGT): Press pack hermetic sealed modules
*2 iXPLV (intelligent fleXible Package Low Voltage): Package for SiC modules
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
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12
Toshiba Integrated Report 2023
Toshiba has been a pioneer in the field of quantum computing and some of our efforts have already reached the stage of commercializa-
tion.
Based on many years of research in quantum computing, we have developed SQBM+™, a solution that can solve society’s complex
combinatorial optimization problems and have begun offering it on the Amazon and Microsoft cloud.
The world is faced with the challenge of choosing the best solution from an exponential number of options for dynamic combinatorial
problems such as logistics optimization, traffic congestion alleviation, and financial transactions, and static combinatorial problems such
as new drug discovery.
Example of new service
(To be launched in FY2023)
Software
Hardware
App
Hardware
Hardware
App
Software
Before
Inseparable
hardware and
software
After
Elevator cloud
Separate hardware
and software
Control panel
DX service software
Basic elevator functions
software
Comfortable
and
convenient
Comfortable
and
convenient
Safe
and
secure
Robots and elevators are
automatically linked,
making it possible to provide
a variety of services
as robots moves to all areas
in the building
Elevators can be called remotely
from a smartphone app
(Current
control panel)
Functions can be added
via the cloud
Data business
Before
Sorting machine operation
Considering data
business to improve
delivery efficiency
Business model
transformation
Reduce customer
deployment risk
Pay-as-you-go model
Digitization
Reduce manual entry
of addresses
High precision
OCR capability
Existing OCR
capability
Automatic digitization with
technology for combining the
remote manipulation
technology with OCR
technology
Shift from conventional selling
systems to a pay-as-you-go-
model where customers only
pay for the addresses read
Utilizing logistics data to
streamline last-mile delivery
and loading of trucks
Manual data conversion
of addresses due to folding
or wrinkling
Letter sorting machines
OCR* to read addresses
and sort mail and parcels
A practical solution that can handle even large-scale problems and be applied to multitude of social issues
Examples of combinational optimization problems
Find the transportation route
that minimizes the distance
traveled
Determine the distance each
vehicle must travel to best avoid
congestion
Determine a portfolio of stocks
that offers low risk and high
returns
Identify molecular
combinations that will increase
drug efficacy
Logistics optimization
Traffic congestion
alleviation
Financial portfolio
optimization
Molecular design for
drug discovery
Toshiba Group Management Policy
QX
A world optimized by quantum technologies
App
App
App
Other Co.
App
Other Co.
App
App
App
App
Other Co.
App
Other Co.
App
App
App
App
Other Co.
App
Other Co.
App
HW
HW
Other Co.
HW
HW
HW
Other Co.
HW
HW
Other Co.
HW
Other Co.
HW
SW
SW
SW
Here is an example of DE in the elevator business.
Beyond that, various platforms under DX stage will be created and a world of QX will emerge, in which optimal solutions are identified from
a complex interplay of platforms.
Toshiba’s innovative SQBM+™ technology can solve these large-scale combinational optimization problems in a short time.
Here is an example of DX, a service that improves the digital recognition of recipients’ addresses in logistics systems.
By separating the control panel of the elevator cage into hardware and software and by installing a DX controller, new functions can be
added via the cloud without additional on-site work.
This is very convenient for customers as functions can be updated without interrupting the elevator operation.
For instance, new functions can be automatically linked to the building security and disinfection robots, which can then patrol every
floor. The system can also be linked to a smartphone app to remotely call the elevators.
The first step is digitization. On the ground for logistics, OCR is used to read recipients’ addresses, but addresses that cannot be recognized
by the existing OCR are manually processed. We provide a service that achieves automatic digital conversion of data by combining the
remote manipulation technology with high-precision OCR technology.
Also, as part of business model transformation, switching from outright system sales to a pay-as-you-go model reduces the burden
and risk associated with system installation for the customers.
And for further business development, we envision a business that goes beyond simply reading the address to one that utilizes the
data to improve the efficiency of last-mile delivery and loading of trucks.
Software defined control panels for continuously updating elevators and buildings
Change business model from just selling advanced technology and systems,
and consider further utilization of acquired data
Launched a service for faster processing of large-scale “combinatorial optimization problems”
on the Amazon and Microsoft cloud platforms,
and continue to work with partners to improve performance and resolve issues
* The system is not available for certain elevators. Details such as service profiles and fees have yet to be developed and determined.
* OCR: Optical Character Recognition (the reading of text in images)
DE example: Software defined transformation for elevators
DX example: Logistics data entry service (pay-as-you-go OCR)
The future created by quantum technologies (2030 onwards)
SQBM+™, an innovative technology born from quantum computer research
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
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14
Toshiba Integrated Report 2023
These new communication infrastructures will eventually lead to the quantum internet, where not only encryption, but also data itself will
be connected in a quantum state.
Toshiba is committed to providing its customers with a variety of reduction and removal solutions.
Implemented PoC for financial
blockchain with US-based
J.P. Morgan Chase & Co.
Continuing trial with US-based
Verizon
Jointly constructed a quantum test bed
with the US Quantum Technology
Community CQE
Announced results of
laboratory verification with
France-based Orange at
OFC
Participating in trials in six
countries for the pan-
European project
OpenQKD
Launched trial services for the world’s
first commercial quantum-secured metro
network in London with UK-based BT
Received orders for QKD systems and
SQBM+™ to expand the NICT-operated
Tokyo QKD Network, Japan’s largest test
quantum key distribution network
(February 2022)
(April 2022)
(March 2023)
(April 2022)
(March 2022)
(August 2021)
(November 2022)
(August 2022)
Implemented the world’s first quality-
of-service assessment measurements
based on ITU standards in a long-range
hybrid quantum cryptographic
communication network with Korea-
based KT
Launched collaboration in the quantum
cryptographic communications business
in Southeast Asia with Singapore-based
SpeQtral
Participated in the opening ceremony of the Quantum
Networks EXperience Centre
2050
2030
Achievement of
net zero through
reduction and removal
Total 0t
Pursuit of carbon negative
CO2 emissions + CO2 removed
(capture, transport, storage, and utilization)
CO2
emissions
CO2
removed
Removal
Reduction
Toshiba Group Management Policy
It is a general understanding that once quantum computing is perfected, current mathematical encryption technologies will be easily
undermined. Toshiba is a leading manufacturer in quantum cryptography, a communication method that prevents the theft of encrypted
data.
We have already started commercial demonstrations of quantum cryptography and are deploying it with various partners around the
world.
Provide technologies and solutions to realize carbon neutrality
In view of the long-term horizon, technologies and solutions to achieve global carbon neutrality will be our key revenue driver.
In 2020, CO2 emissions were reduced by 7% worldwide as a result of global economic slowdown stemming from the pandemic lock-
downs. The challenge is that we will not achieve carbon neutrality unless we continue the 7% reduction every year until 2050. In other
words, it is impossible to achieve net zero emissions only by reducing CO2 emissions. We need to pursue carbon negative, by actively
capturing and removing carbon from the atmosphere.
Long-term
Carbon negative: Also focus on CO2 removal (capture, transport, storage, and utilization)
Worldwide rollout of quantum cryptography communication business
Approach to achieving carbon neutrality
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
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16
Toshiba Integrated Report 2023
Even today, we have numerous technologies with high business potential and these technologies can be combined across multiple areas
to create products and services that do not exist in the world today.
However, there are challenges to commercializing these high-potential technologies and enhancing Toshiba Group’s corporate value.
We need to break down two types of rigidity: internal rigidity, where the organization is siloed and the results of improvements are not
shared throughout the Group, and external rigidity, where the organization is obsessed with proprietary technologies and the view that
everything should be done in house.
We have taken various measures to break down the internal rigidity that had created barriers between organizations within the Group.
In October 2023, for example, we integrated the corporate staff function and the subsidiaries’ staff function. And going forward, we will
continue to review our business management structure to further break down internal rigidity.
In breaking down external rigidity, if we determine that values can be realized at an early stage through collaboration with external
partners, we will consider using partners such as companies seeking to expand their business in specialized fields or existing players in
those fields.
Under the Basic Commitment of Toshiba Group, “Committed to People, Committed to the Future,” we have continued to provide products
and services that support people’s lives and society. This is our mission that will not change in the future.
Toshiba’s strength is its technological diversity. We will maintain this strength and improve corporate value over the medium- to long-
term.
Carbon neutrality
Future
Present
Past
Data
Infrastructure
Thermo-fluids/
structural analysis
System
analysis
Electrochemistry
Material
design/
analysis
Catalysts
LTO
electrodes
Water
electrolysis
Hydrogen
Insulation
rating
Compound
semiconductors
Compound
semiconductors
Plant/
design
Reactor
physics /
radiation
Oxide semiconductor
Super-
conducting coils
Seismic and
structural
assessment
MEMS
Power
electronics
control
3D
packaging
Forecast of
electricity
demand/
generation
Magnetic
heads
Mechatronics
Magnetic
recording
Magnetic
recording
Embedding
Opto-
semiconductors
Sofware
packaging
MAS-MAMR
Perovskite
Cu2O
tandem
Hydrogen gas/
CO2 sensors
Gyros
Quantum
Electron
guns
Vacuum tubes
NLP
Antenna
design
Image
processing
Smart
antennas
DNC
Cloud
connectivity
Materials
informatics
Security
AI
Water
treatment
XXX
Products or services
Core technologies
Liposomes
Turbines,
generators,
water wheels
Plant system
monitoring
H2One™/
H2Rex™
Power
devices
NAND flash
memory
Nearline
HDDs
Laptop
PCs
Multi-beam
mask writer
Meister/
RECAIUS™
Heavy ion
cancer therapy
Elevators
(EaaS)
CRT TVs
Liquid
crystal TVs
Lithium ions
rechargeable
batteries
New-type batteries
(NTO anode)
MEMS
sensors
DRAM/SRAM
CCS / CCU
2.5” HDD
White LEDs
ViewLED
VTR
VPP
HVDC
DVD
ETC
Liquid crystal
panels
Fuel cells
Wind power
generation
Letter sorting
machines
High-speed
elevators
Bluetooth®
Visconti™
Weather radar
Air defense
radar
RFID readers
TOSWACS™
SQBM+™
Photocouplers
Thin notebook PCs
Quantum cryptography
communication
Water supply
/sewerage
Precision
medicine
Weather disaster
prevention
Next-gen PV
Nuclear fusion
Millimeter-wave security
Superconducting
motors
Next-gen
nuclear reactors
XXX
Nuclear
power
SCiB™
Railways
Power
transmission/
transformation
P2C
Pattern
recognition
Optimization
Lasers
Circuit
design
Electromagnetic
field analysis
Electromagnetic
field analysis
Testing/
measure
ment
Crystal growth/
deposition
VPPA scheme
Initiated a Virtual Power Purchase Agreement (VPPA*)
for the Smart Community Center, Toshiba Group’s business headquarters in Kawasaki.
Alongside purchases of FIT non-fossil certificates, the center’s energy needs are
100% covered by electricity from renewable sources
from April 2023.
Renewable energy
power producers
(multiple companies)
Toshiba
Energy
Systems &
Solutions
Corporation
(Aggregator)
Consumer
(Toshiba)
JPEX
(Wholesale
market)
Electricity
retailer
Non-fossil value (additionality),
Fixed contract market
Existing contract
Nationwide
procurement
Contracts with power
producers with
additionality
Biomass
Biomass
Wind
power
Wind
power Solar
power
Solar
power
Approach
Solutions
CO2
emissions
CO2
removed
Removal
Reduction Energy saving
Reducing CO2
CO2 visualization
and optimization
solutions
Making CO2 visible and
manageable
CCS, CCU, DAC
Capture and use CO2
Renewable
energy adoption,
electrification
No CO2 emissions
(capture, transport,
storage, and
utilization)
SCiB™ lithium ion
SCiB™ lithium ion
rechargeable batteries
rechargeable batteries
Superconducting motors
Superconducting motors
Industrial IoT services
Industrial IoT services
Quantum cryptography communication
Toshiba Group Management Policy
Toshiba Group sites have also started efforts toward 100% renewable energy.
The Smart Community Center in Kawasaki initiated a Virtual Power Purchase Agreement (VPPA) for the use of its electricity and its
energy needs have been 100% covered by electricity from renewable energy sources from April 2023.
Within this initiative, Toshiba Energy Systems & Solutions Corporation is playing the role of an aggregator linking the power generators
to customers.
Going forward, we will continue to develop renewable energy aggregation services for customers both within and outside the Group.
Technological diversity: the source of new products and services
Toshiba’s strength lies in its technological diversity.
For almost 150 years since its foundation, Toshiba has been providing products and services that make people’s lives more comfort-
able and convenient and society more safe and secure.
This has not simply been the result of a single technology creating a single product, but rather, the results of a combination of various
technologies that we have accumulated in our research laboratories.
* VPPA (Virtual Power Purchase Agreement): A means by which a consumer virtually procures only the environmental value of renewable electricity generated at a power plant off the electricity consumer’s
premises
Due to space limitations, the details, eras, etc. of technologies may be inaccurate.
Wind power generation systems
Wind power generation systems
CCU for industry
CCU for industry
Perovskite photovoltaic modules
Perovskite photovoltaic modules
Large-scale CCS for
Large-scale CCS for
thermal power plants
thermal power plants
Combination of technologies accumulated at laboratories and within the Group
to create one product and service one after another
Toshiba Group sites’ efforts toward 100% renewable energy
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
17
18
Toshiba Integrated Report 2023
CAGR
Existing
business
domains
Peripheral
domains of
existing
business
New domains/
Fundamental
R&D investment
Monitoring and evaluation of annual changes
Operating profit (sum of total period)
R&D investment (sum of total period)
Operating profit (every fiscal year)
Annual R&D investment (every fiscal year)
ROI in R&D
Business growth
Benchmarking
Consistency with the roadmap in
product development
CAGR
Period ROI Annual ROI
Objectives
KPI
Period ROI
Annual ROI
Annual
ROI
Roadmap
Period
ROI
Σ
Develop products and services
necessary to maintain and grow
existing business
Develop innovative products and
services in existing and peripheral
business domains
Do R&D from a medium- to long-term
standpoint to develop products and
services in new domains and create
and contribute to future businesses
Themes that provide overarching support
for product and service development and
engineering reforms in various fields including
AI, production, and manufacturing technology
Progress
Tech readiness
Evaluation based on megatrends and business strategy
Progress level (business contribution)
Technology readiness level
Toshiba Group Technology Strategy
Physical
Sofware Defined
Cyber
Toshiba IoT
Reference
Architecture
TIRA
TOSHIBA SPINEX
*1: Power to Gas *2: Power to Chemicals
Supply Chain, Engineering Chain, Product Life-cycle
Supply Chain, Engineering Chain, Product Life-cycle
Power
semiconductors
Nearline HDD
Compound
semiconductors
Mask writers
(Lithography tools)
Power
electronics
SCiB™
Hydrogen
Controllers
Solar cells
Weather
radars
P2G*1/P2C*2
Water supply
and sewage
Wind
power
Intelligent
robots
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
QX region
By quantum technology
Overall optimization
DE DX region
Platformization
Toshiba Group Technology Policy
Breakdown of R&D expenses for FY2022 and initiatives to visualize ROI in R&D
Energy Systems & Solutions
11%
Infrastructure Systems & Solutions
13%
Digital Solutions
4%
Others
15%
Building Solutions
9%
Electronic Devices & Storage Solutions
31%
Retail & Printing Solutions
16%
R&D Expenses
Total: 156.4B Yen
(FY2022)
Breakdown of R&D Expenses in FY2022
Under the Basic Commitment of Toshiba Group, “Committed to People, Committed to the Future,” we will create products, solutions, and
services that are supported by our solid technological capabilities to realize a carbon-neutral and carbon-negative society and a safe and
secure social infrastructure. By getting the most out of our technological diversity, one of Toshiba Group’s strengths, we will create and
develop strong core physical technologies while appropriately motivating and training technical personnel who are the source of our
technological capabilities. Furthermore, we will continue to create value for our customers through new products, solutions, and services
by promoting digitalization (DE, DX, and QX) based on the idea of “Software Defined.”
In FY2022, we spent R&D expenses of 156.4 billion yen, approximately 5% of net sales. Based on its business strategy, Toshiba Group con-
centrates its investment on focus business domains including Energy Systems & Solutions, Infrastructure Systems & Solutions, Building
Solutions, Retail & Printing Solutions, Electronic Devices & Storage Solutions, and Digital Solutions. At the same time, the Group invests in
R&D with an awareness of development efficiency and time frames. The Group classifies R&D investments into three major categories
(existing business domains, peripheral domains of existing business, and new domains/fundamental) based on the time frame and role
until commercialization. We have defined KPIs that measure the progress of R&D in these categories and their return on investment (ROI)
to monitor and evaluate their annual changes and visualize such progress and ROI. We also use such KPIs to make decisions on strength-
ening, continuing, downsizing, or discontinuing R&D for each theme.
Specifically, in the short-term (by around 2025), the Toshiba Group will strengthen the development of SCiB™ rechargeable battery and
power semiconductors, for which we plan facility expansion in order to meet strong demand. In the medium-term (by around 2028), the
Group will, using its infrastructure assets, expand the digital service business, including next-generation solar cells, virtual power plants,
smart manufacturing, millimeter wave-based detection of potentially dangerous items, quantum key distribution (QKD), and security
services for social infrastructure, based on the idea of Software Defined. Lastly, in the long-term (by around 2030), we will focus on high-tem-
perature superconductivity technology, Power to Chemicals, quantum Internet, and other technologies to achieve true carbon neutrality
and carbon negativity and to realize quantum transformation (QX). We will also focus on research and development of advanced technol-
ogies such as liposomes in the precision medicine field.
Toshiba Group Technology Policy
Monitor changes over years by introducing KPIs in each target group
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
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20
Toshiba Integrated Report 2023
Commercialized products including silicon
single-crystal pullers, expanded into other
market sectors using core technologies
Silicon single-crystal
puller
Biodegradable liposome
Gene (DNA)
Nucleus
Lipid
Superconducting motor
Hydrogen/CO2 gas sensors
Gyro sensors
High-speed detection of gas
emissions and leakage
Sensor chip
PoC demonstrations
with fast charging for
commercial EVs
Selective uptake in
specific cell types
Detects dangerous objects
hidden under clothes in
walk-through inspections at
public areas, buildings, etc.
Lightweight and flexible:
can be installed where current
products cannot be installed
Small size,
accurate sensing
Start sample cells delivery
(FY2023)
Security gate application demonstration
(FY2023)
Started paid PoC (FY2023), collaborated with
CiRA Foundation
Considering commercialization with strategic
customers/partners
Core Techs: Semiconductor × MEMS
Core Techs: Material design × MI*3 (AI)
Core Techs: Coating x Nanomaterials
Core Techs: SCiB™ × Nb*2 (material)
Core Techs:
Superconducting coils × Refrigerators
Core Techs: Radar × Signal Processing
Developing the technology based on GI fund project*4
Accelerating product development through
projects across research and business divisions
Superconductivity
NTO*1 Anode Batteries
Millimeter-wave Imaging
Biodegradable liposome
MEMS Sensors
Film-Based Perovskite PV
World’s
first
World’s
first
Delivered
more than
500 units
Delivered
more than
500 units
Large laminated cell
Toshiba Group Technology Strategy
Toshiba Corporation
Energy Systems Research and
Development Center
Toshiba Europe Limited
Cambridge Research Laboratory
Bristol Research & Innovation Laboratory
Israel Development Office*1
Regenerative Innovation Center*2
Toshiba America, Inc. R&D Division*1
Toshiba China R&D Division*1
Toshiba Europe GmbH
Toshiba Sofware (India) Pvt. Ltd*2
Toshiba Sofware Development (Vietnam) Co., Ltd. *2
Infrastructure Systems Research and
Development Center
Electronic Devices & Storage Research &
Development Center
Sofware Systems Research and
Development Center
Research & Development Center
*1 Affiliated with the Research & Development Center
*2 Affiliated with corporate
Digital Innovation Technology Center
Corporate Manufacturing Engineering Center
Corporate Research & Development Center
Innovation Laboratory
Battery Div.
Next Business Development Div.
Independent corporations’ R&D organizations
Overseas R&D Organizations
Corporate’s R&D organizations
Toshiba Energy Systems
Corporation
Toshiba Electronics Devices &
Storage Corporation
Toshiba Digital Solutions Corporation
Toshiba Tec Corporation
Toshiba Infrastructure Systems &
Solutions Corporation
Toshiba Group R&D Organization
Toshiba R&D divisions are composed of Toshiba’s corporate R&D organizations at headquarters and group companies’ R&D and design
and engineering divisions. We pursue research and development together with these technology divisions. The corporate R&D organiza-
tions take a medium- to long-term approach to enhance fundamental technology, do research on new business domains, and work on
innovative and advance research and development. The group companies’ R&D organizations and technology and engineering divisions
support fundamental technologies of our business domains, and develop new products and differentiated technology in line with our
business plans. We strive to commercialize products and mass-produce products that satisfy our customers’ needs. The close cooperation
between these divisions enables us to deliver products to the market.
In FY2023, the Toshiba Group merged the Corporate Software Engineering & Technology Center with the Software Systems Research &
Development Center, which used to serve as a works lab of Toshiba Digital Solutions, and reorganized it into the Digital Innovation Tech-
nology Center in order to promote DE and DX while strengthening and expanding its data services. The center aims to develop fundamen-
tal technologies to improve productivity and quality of software development in the Toshiba Group and to strengthen its software design,
development, and quality capabilities. In addition, we have established the Next Business Development Division and the Innovation Lab-
oratory, specialized organizations to promote the creation and commercialization of new products and services across the Group. We have
built an R&D structure that brings together technical personnel across organizations for each theme to strengthen and accelerate develop-
ment.
Toshiba has built research and development sites not only in Japan but also in the United States, Europe, India, Vietnam, Israel, among
others. These sites work together organically across borders to conduct a wide array of cutting-edge research and development.
In September 2023, we established a new technology center, Regenerative Innovation Centre, in Düsseldorf, Germany. The center will
be the home of a pioneering technology hub in Europe, focused on technological development and social implementation related to
carbon neutral circular economy. Together with partners, it will promote advanced technology development, social demonstration, stan-
dardization, and other activities.
In order to boost our global competitiveness, we are improving our capability to respond swiftly to changes in the market, in our re-
search and development as well. Particularly in Asian countries, where markets are expanding, we are working to locally operate not only
manufacturing sites, but also engineering sites and development sites. We will create products and services that will appeal to the global
market.
Through a good track record in productization and systematization mainly in the energy/social infrastructure field over 145 years, Toshiba
Group has cultivated research and development ability to generate “1” from “0” leveraging “technological diversity,” a new combination of
these core technologies, as well as combined strength in engineering ability to structure devices, components, and systems meeting social
and customer needs as solutions. Rather than simply a single technology creating a single product, a combination of various technologies
that we have amassed in processes of research and development has been creating new products and services.
Today, we are creating technologies with high potential one after another by grasping the needs of society from the development
conception phase, in addition to a new combination of core technologies in multiple areas.
For example, Toshiba Energy Systems & Solutions Corporation has developed the world’s first prototype of a lightweight, compact,
high-power superconducting motor with a maximum output of 2 MW, bringing together the superconductivity technology and manufac-
turing technology for high-speed rotating machines it has cultivated over many years. It is necessary to explore not only carbon-free fuel,
but also systems to achieve total carbon neutrality in the industry of large mobility vehicles such as aviation as a whole; thus, the industry
needs to develop lightweight and high-powered motors for propulsion systems. The motor is less than one-tenth the weight and size of an
equivalent conventional motor, making it possible to replace fossil-fuel-driven engines with motors, thereby contributing to zero-emis-
sions for various types of large mobility vehicles. In recognition of its future potential, our superconducting motor was awarded the Grand
Prix in the Total Solutions category of the CEATEC AWARD 2022.
Toshiba Group R&D Structure
Toshiba Group’s Strength in Technology
*1 Niobium titanium oxide *2 Niobium *3 Materials informatics *4 Green Innovation Fund projects
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
21
22
Toshiba Integrated Report 2023
Actual observation
10 minutes ahead
20 minutes ahead
Toshiba Group Technology Strategy
To link high-quality, potential technologies to products, solutions, and services without failure to solve social issues, Toshiba is promoting
demonstration experiments in collaboration with our business partners. Here are some of such initiatives and R&D cases that actually led
to the creation of new services.
Toshiba Digital Solutions Corporation has begun offering the Weather Data Service, a solution to analyze observation data received from
weather radars with high accuracy and in real time.
Since delivering weather radar systems in 1955, Toshiba Group has been contributing to a safe and secure lifestyle by providing weath-
er radar and weather observation systems that process information from observation data. Toshiba has also been working to resolve
problems in flooding. For example, we conducted a demonstration experiment*1 with a local government in August 2022 on the effective-
ness of local government officials’ operations for measures against flood damage.
As a first step, we began offering the Rainfall Forecasting Service on May 29, 2023, which provides highly accurate forecasts of localized
heavy rain. It uses Toshiba’s proprietary analysis method based on VIL-NC*2 to analyze weather radar observation data in real time to ac-
curately forecast signs and the amount of localized heavy rainfall up to 30 minutes ahead. We will contribute to the prevention and mitiga-
tion of damage from natural disasters by providing the service to private companies and local governments that support social infrastruc-
ture.
In addition to the Rainfall Forecasting Service, which we just launched, we plan to release the Particle Classification Service, a solution
to classify precipitation particle into rain, snow, and hail in real time, and the Gust Detection Service, which detects a position of wind gust
over a wide area*3.
Changing the Value of High-quality Technology
—Initiatives for Linking Technology to Products, Systems, and Services—
Toshiba Energy Systems & Solutions Corporation was selected as the consortium leader of “FY2022 Renewable Energy Aggregation
Demonstration Project*1,” publicly facilitated by the Ministry of Economy, Trade and Industry, and developed new method to forecast the
amount of renewable energy power generation. An average of approximately 70% reduction of imbalance*2 amount was achieved with the
control method that utilizes storage batteries while reflecting the real-time actual amount of renewable energy generation. Toshiba will
continue to develop optimal control technologies using renewable energy power generation forecast and storage batteries, and through
the renewable energy aggregation business, contribute to realization of a stable and efficient power system that utilizes renewable energy,
thereby addressing climate changes.
Together with the Tohoku University Tohoku Medical Megabank Organization, Tohoku University Hospital, and the National Institute of
Information and Communications Technology, Toshiba has demonstrated the world’s first*1 personalized healthcare*2 system that stores
genome data, collected from many individuals, in multiple locations and utilizes them for medical treatment and healthcare using an in-
formation theoretically secure method based on the quantum key distribution (QKD) link, the secret sharing system and personal authen-
tication technology. This system is theoretically secure against the threat of store now and decrypt later attacks, prevents data leaks, falsi-
fication, and loss of genome data. In this system, data decryption and reconstruction*3 are performed by using personal authentication
and individual consent. The system is expected to contribute to the realiza-
tion and spread of personalized healthcare.
A part of this work was performed for Council for Science, Technology
and Innovation (CSTI), Cross-ministerial Strategic Innovation Promotion Pro-
gram (SIP), “Photonics and Quantum Technology for Society 5.0” (Funding
agency: QST).
Toshiba Improves the Accuracy of Forecasting the Amount of Renewable Energy Generation and Achieved
Approximately 70% Reduction of Imbalance Amount by Utilizing Storage Batteries
Toshiba Launches “Weather Data Service” to Analyze Weather Observation Data Using Its Proprietary
Method
Toshiba Links Quantum Security and Personal Authentication, Successfully Delivering Secure Personalized
Healthcare Use Case
*1 The official name of the project is “FY2022 Subsidy for Demonstration Project for Establishing Next-Generation Technologies Using Distributed Energy Resources such as Storage Batteries (Renewable
Energy Aggregation Demonstration Project within the Renewable Energy Generation Aggregation Technology Demonstration Project).”
*2 Imbalance is the difference between the amount of electricity demanded (used) and the amount of electricity supplied that occurs when a renewable energy power generator is unable to achieve the
same amount of electricity as planned and actual simultaneously.
*1 News release dated August 18, 2022
“Toshiba to Launch a Demonstration Experiment on the Effectiveness of Flood Damage Countermeasures Based on Highly-accurate, Real-time Rainfall and Flooding Forecasts During Torrential Rains”
*2 VIL-NC stands for vertically integrated liquid water content–NowCast.
A rainfall forecasting algorithm developed by the National Research Institute for Earth Science and Disaster Resilience for use with weather radar
*3 The Particle Classification Service and the Gust Detection Service are currently under development and planned to be released in the future.
*1 Toshiba’s research as of December 8, 2022
*2 Health risk management optimized for individuals by analyzing personal genome data together with
environmental factors such as lifestyle habit, and calculating the risks of contracting diseases for each
individual
*3 Reconstruction refers to the decryption of data encrypted with quantum cryptography, whereas restoration
refers to the restoration of the original data by combining multiple secret shared data fragments.
QKD system
Comparison between short-time rainfall forecast and actual observation
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
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24
Toshiba Integrated Report 2023
Toshiba Energy Systems &
Solutions Corporation
Toshiba Infrastructure Systems &
Solutions Corporation
Toshiba Electronic Devices &
Storage Corporation
Toshiba Digital
Solutions Corporation
Energy
IoT
Security
Data
Communi-
cations
QKD
Infrastructure
Semiconductors
Data
Focused themes of standardization
Targets of standardization
Structure of standardization
Corporate Research & Development Center
Chief Standardization Officer (CSO)
Toshiba Corporate Technology Planning Division
Separate
strategies
Separate
strategies
Separate
strategies
Separate
strategies
QX
DX
DE
User network
Application A
Application B
Key management layer
Quantum layer
Quantum key distribution system
Site (network node)
Key manager
Site X
Key supply
Key supply
Site Z
Site Y
Standardization of key supply interfaces
Standardization of network systems
Standardization of device security
Quantum key distribution network
Toshiba Group Technology Strategy
To ensure that the Toshiba Group’s technologies are implemented in society, it is important to conduct rule-making activities including
those for standardization to create a market where such technologies are accepted and to have commercialization strategies for individu-
al products incorporating those technologies. Standardization in this section refers to activities on international standardization in general,
not only those for international standards, JIS and other national standards, and regional de jure standards but also so-called forum stan-
dards developed by industry associations, forums, consortiums, and other entities.
The Toshiba Group’s standardization activities are conducted under a system in which the Corporate Technology Planning Division
serves as the hub for the standardization activities, while individual activities are performed by divisions including the Corporate Research
& Development Center and four independent corporations, under the supervision of the Chief Standardization Officer (CSO), who is re-
sponsible for group-wide standardization. To effectively combine the business strategies of the entire Group with standardization strate-
gies, the Corporate Technology Planning Division collects and shares related information, formulates strategies with business divisions,
and streamlines standardization-related operations. A total of approximately 1,000 people throughout the Toshiba Group are engaged in
standardization activities.
As the importance of secure cryptographic communication is expected to increase in the future information society, hopes are high for
quantum key distribution (QKD), an information-theoretically secure encrypted communication technology using the principles of quan-
tum mechanics, which even quantum computers’ overwhelming computational capabilities cannot break. Toshiba is leading the world in
researching and developing unique technologies for accelerating and stabilizing QKD. At the same time, we are working on international
standardization of quantum key distribution networks (QKDNs), which are essential technologies for the real-world deployment of QKD.
The standardization of QKDN systems is primarily being led by the International Telecommunication Union Telecommunication Standard-
ization Sector (ITU-T). The National Institute of Information and Communications Technology (NICT), NEC Corporation, and Toshiba joint-
ly proposed the QKDN system configuration shown in the figure above. Based on this, in 2019, the ITU-T published its ITU-T Y.3800 recom-
mendation. With regard to the standardization of key supply interfaces, the European Telecommunications Standards Institute (ETSI)
published the ETSI GS QKD 014 standard in 2019, to which Toshiba contributed. For the standardization of device security, two initiatives
were undertaken separately by JTC1, a joint technical committee of the International Organization for Standardization (ISO) and IEC, and
ETSI. Participating in both initiatives, Toshiba contributed to the publication of ETSI GS QKD 016 and ISO/IEC 23837.
The Toshiba Group has been working on many standardization activities since its founding. In particular, Toshiba has focused on activities
at the International Electrotechnical Commission (IEC), an international standards organization in the electrical field. As far back as 1906,
Ichisuke Fujioka, Toshiba’s founder, participated in a preparatory meeting for the establishment of the IEC, and in 2002, Seiichi Takayanagi,
former Senior Executive Vice President, was appointed as IEC President. Currently, Naoto Nishida, Toshiba’s Fellow, is a member of the IEC
Board, the main executive body of the IEC.
Among the outstanding standardization activities of the IEC are those of the Technical Committee for Electrical Energy Storage Sys-
tems (TC 120). The Toshiba Group contributed to the establishment of the committee and has produced international secretaries to pro-
mote its activities. The Group is expanding activities not only in its existing business areas but also in the area of digitization (DE → DX → QX),
which is one of its management policies. Examples of those activities include the standardization of the IoT reference architecture in the
Industrial Internet Consortium (IIC), participation in the IEC’s Subcommittee for “Classes, Properties and Identification of products—Com-
mon Data Dictionary (CDD)” (SC 3D), which is deeply involved in the digitization of Carbon Footprint of Products (CFP), and the standard-
ization of QKD, which is described later in this report. The Toshiba Group will continue to promote standardization activities as one of its
driving forces for business development.
Toshiba Group’s Standardization and Rule-making Activities
International QKD Standardization Activities
Structure and focused themes of Toshiba’s standardization activities
Conceptual model of a quantum key distribution network (QKDN) and
approaches to international standardization
Collaboration
Promotion of activities
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
25
26
Toshiba Integrated Report 2023
Intellectual Property
Taking a comprehensive
overview to develop an
intellectual property strategy
Restructuring
intellectual property
Opening up
intellectual property
Transform to DE/DX,
using data as the starting point
Co-creation with partners
Evolve intellectual property portfolio
Plan value creation from upstream
Break down internal rigidity
Natural
environment
Natural
environmentMaterials
Energy
Materials
Energy
Customers
Customers
Partners
Partners
Political
systems
Political
systems
Economy
Economy
Society
Society
Competition
Competition
Markets
Markets
Technology
Technology
Maximize corporate value
Expand opportunities to
find solutions to issues
Break down external
rigidity
Environmental
changes
Technology
Technology
Expertise
Expertise
Human
resources
Human
resources
Networks
(Customers/
Partners)
Networks
(Customers/
Partners)
Brands
Brands
Intellectual
property
rights
Intellectual
property
rights
Know-how
Know-how
Toshiba
Group’s
Basic
Commitm-
ent
Toshiba
Group’s
Basic
Commitm-
ent
Organizational
capabilities
Organizational
capabilities
Trade
secrets
Trade
secrets
Core values
Intellectual
property
Board of Directors
Digital Innovation Technology Center
Cyber-Physical Systems x Design Division
Corporate Technology Planning Division
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
Next Business Development Division
Toshiba Group’s intellectual property strategy
Strategically utilize intellectual property to realize DE, DX, and QX, increase opportunities to find
solutions to social issues, and maximize our corporate value
Toshiba Group aims to strategically utilize intellectual property to realize DE, DX, and QX, increase opportunities to find solutions to social
issues, and maximize our corporate value. We are promoting a cycle of “taking a comprehensive overview to develop an intellectual prop-
erty strategy,” “restructuring intellectual property,” and “opening up intellectual property.”
“Taking a comprehensive overview to develop an intellectual property strategy” is the most important step. From the upstream stage
of developing a business concept, we take a comprehensive overview of the situation from various perspectives, including a variety of
environmental changes, the core values of the Company (intellectual assets), and business strategies, and consider how to use intellectual
property and how to link it to business values. In considering these things, we also break down our internal rigidity by adopting a business
concept based on the transformation to DE and DX, and the utilization of data.
“Restructuring intellectual property” is a step to organize intellectual property items such as patents, data, and know-how when imple-
menting the envisioned intellectual property strategy. After identifying and organizing the intellectual property items that we have, we can
acquire any intellectual property items that we are lacking to maximize our intellectual property portfolio. This allows us to improve the
quality of our intellectual assets. Since it is essential to manage confidential information regarding data and know-how, we are also com-
mitted to ensuring thorough management of the Company’s confidential information so as to prevent leaks.
“Opening up intellectual property” is the step of co-creation with partners by utilizing intellectual property. Even social issues that
cannot be solved by the Company alone can be solved through co-creation with partners. For this reason, we will break down external ri-
gidity by promoting co-creation with partners using intellectual property as the starting point, and this will lead to an increase in opportu-
nities to find solutions to social issues and the maximization of our corporate value.
The organizational structure of the Intellectual Property Division is composed of the corporate staff division’s Intellectual Property Office,
and the intellectual property divisions at our individual laboratories and key Group companies. The corporate staff division’s Intellectual
Property Office is responsible for, related to intellectual property across Toshiba Group, formulating and promoting strategy and measures,
handling 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 Group companies formulate intellectual
property strategies in their respective development and business domains and work to build and utilize an optimal intellectual property
portfolio. We have intellectual property officers located in both the United States and China to help promote out intellectual property
strategy globally.
With regard to management resource allocation, including investment in intellectual property, and the execution of strategies relating
to our business portfolio, each of our Executive Officers report to the Board of Directors on the status of their respective initiatives, where-
upon they receive supervision and advice.
Intellectual Property Strategy
Promotion Structure of Intellectual Property Strategy
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
27
28
Toshiba Integrated Report 2023
Intellectual Property
Helps to Become an Expert in One's Field of Aptitude
Acquisition of
rights
Contracts
AI/DX
Financial
analyst
Patent search
Technology
Marketing
Language study
Regulations
Business
Accounting/
Finance
Negotiation
studies
Litigation
laws
Appraisal
Design laws
Copyright
laws
Unfair
competition laws
Contracts
Trademark
laws
Leadership
Critical
thinking
Logical
thinking
Communication
Overseas
training system
In-house patent
attorney system
Patent law
Chinese law
U.S. law
Various opportunities provided
to strengthen specializations
Able to acquire the basic knowledge
necessary for work in a short time
◆
O
J
T
◆Basic training II
U.S. law
Information
analysis
Contracts
Risk response
◆Basic training I
Basics of intellectual
property law
Specification
preparation
Office action
Patent search
Survey/
Analysis
Strategy/
Planning
Public
relations
Laws
Conceptual diagram of human resources development
Toshiba Group provides its employees in Japan with e-learning type training each year for the purpose of refreshing their awareness of the
Standards of Conduct regarding intellectual property rights and, primarily, for alerting them to copyright issues. The participation rate in
FY2022 was 99.6%.
Newly hired employees are provided with general training on intellectual property rights as part of the Corporate Entry Program (CEP),
which is followed by level-specific education/training programs in line with each business division.
We have established a basic training program for intellectual property officers with the education covering areas such as knowl-
edge-acquisition of both domestic and overseas intellectual property rights, preparation of patent specification documents, practical
training with office action, and on-the-job training, so that they will be able to put their training into practice in two years.
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.
Education on Intellectual Property
In addition, we provide copyright education on such topics as proper use of software at our overseas subsidiaries in China, South Korea,
Hong Kong, and Taiwan. For example, our U.S. subsidiaries provide education programs appropriate for the region, such as intellectual
property education, for all employees using LMS (Learning Management System).
Number of
Patents Filed:
20,000
from FY2020
to FY2022
By business domain
Number of
Patents Filed:
20,000
from FY2020
to FY2022
By region
Energy Systems
& Solutions
11.0%
Japan
47%
Other
0.5%
Laboratories
25.0%
Battery Business
1.5%
Digital Solutions
2.0%
Electronic Devices
& Storage Solutions
18.0%
United States
24%
China
12%
Other
13%
PCT
4%
Infrastructure Systems
& Solutions
12.0%
Retail & Printing
Solutions
22.0%
Building Solutions
8.0%
Number and Breakdown of Patents Filed (from April 2020 to March 2023)
Toshiba Group holds the Toshiba Group Patent Conference each year, where it awards particularly outstanding inventions with “Excellent
Invention Award.”
In FY2022, we held an awards ceremony for the first time in four years, where we granted 5 Business Contribution Prizes to commem-
orate inventions that had made significant contributions to the Company’s business, and 4 Future Value Creation Prizes in commemora-
tion of inventions which we expect will contribute to business or provide value to society in future.
Toshiba Group Patent Conference
Representatives of the award winners
CEO message
The final stage of the conference also featured a special lecture from a guest lecturer and a number of webinars themed around the topic
of how intellectual properties extend across multiple sectors with the aim of cultivating an intellectual property mindset and discovering
new aspects of intellectual property activities. Moving forward, we will continue to provide an environment that facilitates employees to
create inventions, and will strive to improve employees’ motivation for invention.
Reflecting our global expansion, more than half of our patent applications are filed with foreign countries, particularly in the United States
and China. We select and file for patent items in each business domain so that we can create an optimal portfolio based on our intellectu-
al property strategy.
The number of patent applications we have made this past three years is as detailed below:
Global Patent Portfolio
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
29
30
Toshiba Integrated Report 2023
Intellectual Property
Infrastructure Systems
& Solutions
15%
Retail & Printing
Solutions
18%
Building Solutions
10%
Other
1%
Laboratories
14%
Battery Business
4%
Digital Solutions
4%
Electronic Devices
& Storage Solutions
19%
Number of
Patents Owned:
45,000
by business
domain
Number of
Patents Owned:
45,000
by region
Energy Systems
& Solutions
15%
Japan
47%
United States
26%
China
10%
Other
17%
FY2019
FY2020
FY2021
FY2022
FY2018
251
234
195
212
208
United States
2%
Europe
15%
Asia
(excluding China)
17%
Middle East
4%
China
61%
Others
1%
208
Counterfeit
Product Cases
by Country
and Region
Conventional Idea
Weather
Radar
Wireless
LAN
Weather
Radar
Wireless
LAN
Detect
Detect
“Only wireless LAN” detects
weather radar
Transmission pulse of weather radar
changes by technological development
Weather radar detects interference
from wireless LAN
* Exclude illegal wireless LANs without DFS function
Change of technical standards of
wireless LAN(new standards)
Remain threatened by interference
from old standard wireless LANs
Transmit DFS pulse that can be
detected by wireless LAN
Avoid interference in all wireless LANs*
Present Invention
“Weather radar also” detects
wireless LAN
Detect
Intellectual Property
Number and Breakdown of Patents Owned (as of March 2023)
Breakdown of Counterfeit Product Cases Responded by Region
(from April 2022 to March 2023)
Trends in Incidents of Counterfeit Products up to FY2022
(Cases)
Each year, we evaluate all of our registered patents owned, and create an optimal portfolio based on such evaluation results for each busi-
ness domain. The status of patents owned as of March 2023 is as follows.
The Toshiba brand symbolizes the value of Toshiba Group as a corporation, and the value of the products or services that we offer. In order
to ensure the protection of the Toshiba brand, we manage trademark rights and remove 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 purchasing counterfeit products that do not meet the quality expectations of customers who mis-
take them for genuine products, as well as an increased risk of an accident occurring. For this reason, we strive to eradicate counterfeit
products, collaborating with domestic and overseas anti-counterfeit organizations, and are actively appealing to local bodies such as
government agencies for more stringent control.
Toshiba Group’s diverse state-of-the-art technologies and its brand are highly appreciated. Prominent awards received include the follow-
ing:
Protection of Toshiba Brand
Evaluation by External Parties
Clarivate, a global information services company, has selected Toshiba for 12 years running as one of
the Clarivate Top 100 Global Innovators™, a list of the best 100 innovative companies and institutions
around the world, based on Clarivate’s patent data analyses.
Selected for Clarivate Top 100 Global Innovators™ 2023
An invention related to weather radars developed to avoid interference from Wireless LAN(WLAN) received the FY2022 National Commen-
dation for Invention – The Invention Prize.
This invention relates to a weather radar that avoids radio wave interference from WLAN and achieves accurate weather observation.
WLANs are equipped with DFS (Dynamic Frequency Selection) to avoid radio wave interference to weather radars, etc. However, DFS
does not work with older types of wireless LANs, thereby affecting weather observations. Therefore, we invented a weather radar that can
avoid radio wave interference by transmitting a special pulse pattern to activate the DFS on the WLAN side when a signal from a WLAN is
detected.
Toshiba delivered a weather radar equipped with this function to the Ministry of Internal Affairs and Communications in 2021. This in-
vention has contributed to frequency sharing amond the 5 GHz band (C band) weather radar and 5 GHz WLAN.
Winner of FY2022 National Commendation for Invention – The Invention Prize
Invention of weather radar having interference avoidance function of wireless LAN(Patent No. JP6383134)
Utilize High-Sensitivity Reception Function of Weather Rader Vulnerable to
Interference for Interference Detection with Reverse Thinking
Idea of “Bidirectional Detection” Born Through Incorporate Synergy in
Both Fields of Wireless Chip and Rader
Sustainability
Businesses
Data Section
Business Results
Strategies
Strategies
Toshiba Integrated Report 2023
31
32
Toshiba Integrated Report 2023
Net income decreased by 68.1 billion yen year on year to 126.6 billion yen
mainly due to the impact of reversal of deferred tax assets of a consolidat-
ed subsidiary.
Equity attributable to shareholders of the Company increased by 40.8 bil-
lion yen from the end of the previous fiscal year to 1,247.4 billion yen due
to increases in net income and comprehensive income.
R&D expenses amounted to 156.4 billion yen, 4.5 billion yen higher than in
the previous fiscal year. The R&D expense to sales ratio was 4.7%, 0.1%
higher than the previous fiscal year.
Cash flows from operating activities decreased by 215.2 billion yen year
on year to 34.0 billion yen. Cash flows from investing activities decreased
by 115.7 billion yen year on year to 8.8 billion yen. As a result, free cash
flow decreased by 99.5 billion yen year on year to 25.2 billion yen.
Financial Highlights (Consolidated)
Non-Financial Highlights (Consolidated)
For the detailed financial information, please refer to the Financial Report for the Fiscal Year ended March 31, 2023 .
Net sales / Ratio of overseas sales
Despite lower sales in Building Solutions, due to the impact of deconsoli-
dation of the air conditioning business, etc., and in HDDs and Others in
Electronic Devices & Storage Solutions, net sales increased by 24.7 billion
yen year on year to 3,361.7 billion yen, reflecting higher sales in all other
business segments.
Operating income / Return on sales (ROS)
Operating income decreased by 48.4 billion yen year on year to 110.5 bil-
lion yen mainly due to one-time factors in HDD, Retail & Printing, Power
Generation Systems, etc.
Equity attributable to shareholders of the Company /
Shareholders’ equity ratio
Net income (loss) / Earnings (loss) per share
R&D expense / R&D expense to sales ratio
Cash flows
Number of reports received by whistleblower system
Trends in the number / percentage of female exempt employees
(Toshiba and key Group companies*, section manager level or higher)
Total GHG emissions* (Million t-CO2)
Lost-time injury frequency rate* at Toshiba Group
in Japan*
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 exempt employees (Persons)
Percentage of female exempt employees (%)
5.1
5.8
5.5
318
327
333
FY2020
FY2021
FY2022
National average for electrical appliance industry
LTIFR at Toshiba Group in Japan
0.52
0.19
0.54
0.16
0.53
0.18
FY2020
FY2021
FY2022
129
(120/9)
31
148
(141/7)
34
133
(127/6)
32
Toshiba Hotline (Cases)
Audit Committee Hotline (Cases)
FY2020
FY2021
FY2022
105
103
77
FY2020
FY2021
FY2022
Amount of water received (Million m3)
Rate of improvement of the amount of water received per unit activity (%)
95
91
100
18.0
20.0
19.0
FY2020
FY2021
FY2022
Emissions (Million t-CO2)
Rate of improvement of emissions per unit activity (%)
84
96
100
60
85
90
FY2020
FY2021
FY2022
Net sales (Yen in billions)
Ratio of overseas sales (%)
FY2019
FY2020
FY2021
FY2022
FY2018
43.4
40.9
3,693.5
3,389.9
41.8
3,054.4
47.1
3,337.0
45.1
3,361.7
FY2019
FY2020
FY2021
FY2022
FY2018
Equity attributable to shareholders of the Company (Yen in billions)
Shareholders’ equity ratio (%)
33.9
27.8
33.3
1,164.5
32.3
1,206.6
35.2
1,247.4
1,456.7
939.8
FY2019
FY2020
FY2021
FY2022
FY2018
Operating income (Yen in billions)
Return on sales (ROS) (%)
35.4
130.5
1.0
3.8
3.4
104.4
4.8
158.9
3.3
110.5
FY2019
FY2020
FY2021
FY2022
FY2018
Net income (loss) (Yen in billions)
Earnings (loss) per share (Yen)
1,013.3
-236.39
-114.6
1,641.85
251.25
114.0
442.05
194.7
292.56
126.6
FY2019
FY2020
FY2021
FY2022
FY2018
R&D expense (Yen in billions)
R&D expense to sales ratio (%)
4.5
4.7
167.5
158.9
4.9
150.5
4.6
151.9
4.7
156.4
FY2019
FY2020
FY2021
FY2022
FY2018
Cash flows from operating activities (Yen in billions)
Cash flows from investing activities (Yen in billions)
Free cash flow (Yen in billions)
-264.7
1,430.3
1,305.4
124.9
38.5
-106.6
145.1
124.7
-124.5
249.2
25.2
-8.8
34.0
-142.1 -122.6
*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.).
*The rate of improvement per unit activity of output with FY2020 as 100%.
*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
*The rate of improvement per unit activity of output with FY2020 as 100%.
Sustainability
Businesses
Data Section
Strategies
Business Results
Business Results
Toshiba Integrated Report 2023
33
34
Toshiba Integrated Report 2023
Energy Systems & Solutions
Infrastructure Systems & Solutions
Building Solutions
Retail & Printing Solutions
Electronic Devices & Storage Solutions
Digital Solutions
Others
Ratio in the above graph prior to elimination of inter-segment sales
12.0%
19.0%
19.0%
14.0%
22.0%
7.0%
7.0%
6.0%
43.0%
29.0%
41.0%
26.0%
-41.0%
-4.0%
15.0%
18.0%
13.0%
18.0%
19.0%
7.0%
10.0%
Management Organization Chart
Toshiba Group’s Business Activities
Retail & Printing Solutions
Toshiba Tec Corporation
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.37
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 Systems & Solutions
P.39
Social Infrastructure Business Domain:
Toshiba Infrastructure Systems & Solutions Corporation
Building Solutions
P.41
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
* The business results of Toshiba Carrier Corporation are included in FY2022. However, Toshiba Carrier Corporation was
deconsolidated from Toshiba Group on August 1, 2022, on completion of a share transfer.
Electronic Devices & Storage Solutions
P.43
We anticipate steady growth, and are promoting expansion in our electronic de-
vices & storage solutions business by focusing on semiconductors for automobile
and industrial use, large-capacity HDDs for data centers, semiconductor manufac-
turing equipment, and parts and materials. By supplying high value-added prod-
ucts, we will contribute to the achievement of carbon neutrality, the development
of a digital society and the realization of a safe and secure society.
Electronic Devices Business Domain:
Toshiba Electronic Devices & Storage Corporation
Digital Solutions
P.45
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
Net sales
Operating
income
Number of
employees
Breakdown of each index for each segment (FY2022)
Board of Directors
Audit Committee Office
Internal Audit Div.
Negative Emission Project Team
Strategic Planning Div.
Group Management Div.
Next Business Development 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
Keihin Operations
Hamakawasaki Operations
Quality Promotion Div.
Corporate Technology Planning Div.
Corporate Research & Development Center
Corporate Manufacturing Engineering Center
Digital Innovation Technology Center
Marketing Div.
Global Strategy and Business Development 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 October 1, 2023
Sustainability
Businesses
Data Section
Strategies
Business Results
Business Results
Toshiba Integrated Report 2023
35
36
Toshiba Integrated Report 2023
1,000
100
800
80
600
60
400
40
200
20
0
0
493.2
493.2
10.8
10.8
559.0
559.0
35.6
35.6
669.5
669.5
30.4
30.4
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2022
FY2021
FY2020
Development of Lightweight, Compact, High-Power Superconducting Motor
Prototype for Mobility Applications
Toshiba Energy Systems & Solutions Corporation Wins Contract for IoT Services
Using EtaPRO™ for an Indonesian Geothermal Power Plant
Patuha Geothermal Power Plant in Indonesia
Net Sales/Operating Income (Loss)
Main Businesses
(As of March 31, 2023)
Net Sales by Segment
19%
The Energy Systems & Solutions segment saw higher sales. Power Generation Systems recorded higher
sales, as Nuclear Power Systems recorded higher sales due to the difference in progress of projects to
enhance safety measures, etc., and Thermal & Hydro Power Systems saw higher sales due to the differ-
ence in progress of orders received, etc. Transmission & Distribution Systems also saw higher sales as,
Transmission & Distribution Systems and Solar Photovoltaic Systems recorded higher sales.
In terms of profit and loss, the segment as a whole saw a decrease in operating income. While
Transmission & Distribution Systems saw an increase in operating income from the impact of higher
sales, Power Generation Systems recorded lower operating income due to analysis of project costs by
Toshiba Plant Systems & Services Corporation, and review of provision for Power Generation Systems
product warranty, etc.
Business Overview
Toshiba Energy Systems & Solutions Corporation has developed a compact, lightweight, and high-power su-
perconducting motor that is the first in the world to achieve the high-speed rotation required for large mobil-
ity applications such as aircraft.
As global environmental awareness grows, movements to reduce greenhouse gas emissions, such as CO2,
are accelerating rapidly in the mobility industry, including among aircraft and automobile manufacturers. The
aviation industry has set a goal of reducing emissions of CO2 to zero (net-zero carbon) by 2050. However, in
addition to changing over to sustainable aviation fuel (SAF), the evolution of whole aviation systems is re-
quired, and the industry needs to develop lightweight and high-powered motors.
Toshiba Energy Systems & Solutions Corporation has developed a prototype for a compact, high-speed
superconducting motor with a high-power output of 2 MW, bringing together its manufacturing technology for
high-speed rotating machines and superconductivity technology that it has fostered over many years. The
motor is less than 1/10th the weight and size of a conventional mo-
tor with the same level of power output. The motor is the first of its
kind in the world, developed through the integrated strength of the
Toshiba Group. It has earned strong recognition for its future possi-
bilities, and was awarded the grand prize in the Total Solutions Cat-
egory at the CEATEC AWARD 2022.
Going forward, we will work to make motors with even greater
improvements, and by combining them with the products and ser-
vices of the Toshiba Group, we will provide new value to the mobil-
ity industry and contribute to the realization of a carbon-neutral
society.
Toshiba Energy Systems & Solutions Corporation, through its Indonesian subsidiary, Toshiba Asia Pacific In-
donesia, has won a contract for an Indonesia’s state-owned geothermal power company, PT Geo Dipa Energi,
for an IoT service for the power generation facilities at its Patuha Geothermal Power Plant.
This service uses IoT and AI technologies, including predictive failure diagnosis and performance monitor-
ing at the plant. The system provided through this service employs EtaPRO™, a monitoring software for plant
operation acquired by the Company in FY2021, and represents the world’s first commercial application of
EtaPRO™ at a geothermal power plant.
The service uses AI to analyze real-time power plant operation data obtained from various sensors and
detect signs of anomalies that may cause problems during normal operation. In doing so, it reduces the num-
ber and duration of power plant shutdowns. A demonstration proj-
ect showed that it was able to reduce the rate at which problems
occurred by over 20%. Compared to thermal power plants, the de-
tection of anomalies in geothermal power plants is difficult, given
the unstable condition of the steam flowing into the turbine, but
this service allows the detection of anomalies even under those
conditions.
By deploying this service worldwide, Toshiba Energy Systems &
Solutions Corporation aims to reduce the customer’s cost of power
generation by helping improve power plants’ utilization rates,
thereby promoting the spread of geothermal power generation and
helping to achieve carbon neutrality.
Prototype of the superconducting motor
Nuclear power generation
systems
Thermal power generation
systems
Hydroelectric power genera-
tion systems
Solar Photovoltaic systems
Transmission & Distribution
systems
Energy Systems & Solutions
Toshiba Energy Systems & Solutions Corporation Begins Sales of Japan’s First
Environmentally Friendly Gas-Insulated Switchgear That Uses Natural Origin
Gases
Toshiba Energy Systems & Solutions Corporation delivered a gas-insulated switchgear that uses natural origin
gases to TEPCO Power Grid, Inc., and the switchgear began operations in February 2023.
This order is a replacement for equipment at TEPCO Power Grid, Inc.’s Fuchu Substation in Tokyo and is
Japan’s first environmentally friendly gas-insulated switchgear that uses natural origin gases to be used at a
TSO (transmission system operator).
Gas-insulated switchgears are devices that interrupt current and prevent it from affecting other power
equipment in the event of an anomaly in the transmission system and are essential equipment underpinning
social infrastructure. As its electrical insulating medium, rather than sulfur hexafluoride (SF6), a greenhouse
gas, this equipment uses a mixture of nitrogen and oxygen, which are safe and have no global warming impact
even in the event of a leak. This product is the result of joint development that Toshiba Energy Systems &
Solutions Corporation has been pursuing with Meidensha Corporation since 2020. Having completed the pre-
scribed type testing, sales of the product are now underway.
Toshiba Group has been working on gas-insulated switchgears since the 1960s, and has a great deal of
expertise in their overall product development. Meanwhile, for more than 15 years, we have been conducting
research and development of equipment that uses natural origin
gases as a measure to reduce environmental impact.
In view of the ongoing adoption of environmental regulations
governing the use of SF6 gas for electric power equipment in Eu-
rope, North America, and other regions, we will expand our lineup
of electric power equipment that uses natural origin gases, starting
with gas insulated switchgears, which are easy to handle and pose
no environmental risk, under the AEROXIA™ brand in Japan and
overseas. By actively developing environmentally friendly products,
the Toshiba Group will continue working to help achieve carbon
neutrality.
AEROXIA™, environmentally friendly GIS(Gas-Insulated Switchgear)
Sustainability
Data Section
Business Results
Strategies
Businesses
Businesses
Toshiba Integrated Report 2023
37
38
Toshiba Integrated Report 2023
Toshiba Infrastructure Systems & Solutions Corporation and the Company have provided results in the opti-
mization of timetables and train operations using AI to Tokyo Tama Intercity Monorail Co., LTD.
The optimization implemented by Toshiba Infrastructure Systems & Solutions Corporation uses the trans-
portation optimization AI developed by Toshiba Corporate Research & Development Center using the timeta-
bles data assets of the Group’s transit scheduling ICT solution TrueLine® introduced at Tokyo Tama Intercity
Monorail Co., LTD.
Railway companies combine trainset inspection and cleaning schedules with trainset rosters according to
each timetables for efficient operations. However, understanding which trains are usable and responding to
different timetables on weekdays, weekends and holidays are extremely complex. This process has required
workers with specialized knowledge and experiences, as well as a significant amount of labor in rescheduling
when even a single change occurs.
Toshiba Infrastructure Systems & Solutions Corporation
has performed multiple evaluations using AI together with To-
kyo Tama Intercity Monorail Co., LTD., confirming the ability to
schedule for the efficient inspection and cleaning of trainsets
and management plans that evenly distribute inspection cy-
cles. Through these results, various everyday work scheduling
has become simpler, and rescheduling can be done quickly in
the event that they are disrupted. We have also confirmed re-
sults in reducing operating costs, and these results have been
applied in revisions of timetables.
Toshiba Infrastructure Systems & Solutions Corporation
will continue contributing to the operations of railway compa-
nies through our various digital technologies starting with
TrueLine®, which uses the Group’s AI.
1,000
100
800
80
600
60
400
40
200
20
0
0
654.6
654.6
47.8
47.8
654.7
654.7
41.7
41.7
693.2
693.2
45.0
45.0
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2022
FY2021
FY2020
Water supply and sewage
systems
Road systems
Telecommunication systems
Railway systems
Power distribution systems
Communication & broadcast
systems
Security & automation
systems
Motor & drive systems
Multi-parameter phased array weather radar
Toshiba Infrastructure Systems & Solutions Corporation delivered two multi-parameter phased array weather
radar systems to the Radio Research Institute of NICT.
These two systems replaced the phased array weather radar systems installed in Kobe City, Hyogo Prefecture,
and Suita City, Osaka Prefecture. The new weather radar has a new multi-parameter (also known as dual-polar-
ization) feature that estimates rainfall by simultaneously emitting electromagnetic waves in two directions—
vertically and horizontally polarized waves. This new feature enables the radar to measure rainfall with higher
accuracy in addition to three-dimensionally tracking rainclouds at high speed in 30 seconds to 1 minute.
In recent years, tremendous damage caused by localized heavy rains (also known as tor-
rential rains), tornadoes, and other extreme weather events has become a social problem. This
upgrade provides improved accuracy of rainfall observation, making it possible to predict the
signs of torrential rains and resulting rainfall quickly and accurately. The new radar also
achieves network observation with multiple weather radars for the first time as a multi-param-
eter phased array weather radar. This expands the observation range and ensures rainfall ob-
servation accuracy even when it deteriorates during heavy rains by having the other radar cov-
er the area. For this reason, it is expected to accelerate research and demonstration for use in
flood prevention activities and evacuation instructions for residents in the Kansai area.
We will continue to promote the installation of multi-parameter phased array weather ra-
dar systems in other areas to help mitigate damage caused by heavy rains.
Infrastructure Systems & Solutions
Local 5G DAS (Distributed Antenna System)
Master Unit
Remote Unit
Hub Unit
Net Sales/Operating Income (Loss)
Main Businesses
(As of March 31, 2023)
Net Sales by Segment
19%
The Infrastructure Systems & Solutions segment saw higher sales overall. Public Infrastructure record-
ed lower sales due to decreased volume in the social systems business, but Railways and Industrial
Systems reported higher sales mainly due to increased volume by recovery from market downturn
caused by COVID-19 and exchange rate changes, etc. in the industrial systems.
In terms of profit and loss, the segment as a whole saw higher operating income. While Public Infra-
structure saw lower operating income due to lower sales in social systems business, Railways and In-
dustrial Systems saw an increase, reflecting higher sales in the industrial systems and by impact of the
absence of the previous year’s restructuring, etc.
Business Overview
Local 5G Research and Business Co-Creation Initiatives
Delivery of Multi-Parameter Phased Array Weather Radar Systems
Differently from “public 5G” by which carriers provide nationwide communication services, in addition to the
features of 5G wireless including high-speed, high-capacity, low-latency, and multi-connections, “local 5G” is
built and operated independently by vendors for designated areas and uses. As such, it has expected benefits
in a wide range of fields, but also has issues such as obstructions causing lost signals and signals leaking out-
side of coverage areas.
To resolve these issues, Toshiba Infrastructure Systems & Solutions Corporation is conducting verification
testing with various universities and companies.
In March 2022, with Nakao Research Laboratory of the Department of Systems Innovation, School of Engi-
neering, The University of Tokyo, we began joint research to evaluate the effectiveness of the use of techno-
logical know-how to eliminate radio shielding as well as the company’s proprietary Distributed Antenna Sys-
tem (DAS), and participated in a technological evaluation of a local 5G system on public roadways.
We also launched joint research with the Metropolitan Expressway Co., Ltd and Nokia Solutions and Net-
works Japan G.K. on building a local 5G wireless communication area to contribute to collecting accurate in-
formation during disasters and to speed operations during normal times, evaluating the feasibility of develop-
ing local 5G on metropolitan highways within about one year.
Furthermore, from November 2022 through February 2023, with Sharp Corporation, BIG RED FARM,
Niikappu-cho, Hokkaido, EXEO Group, Inc., CHOWA GIKEN Corporation, YANMAR AGRIBUSINESS CO., LTD.,
Nagoya Broadcasting Network Co., Ltd., and Dogin Regional Research Institute Co., Ltd., we conducted verifi-
cation testing of grazing land management using local 5G at BIG RED FARM Meiwa in Niikap-
pu-cho, Hokkaido.
In August 2022, we opened “Creative Circuit L5G™,” the co-creation center to conduct
verification testing of applications using local 5G at our Fuchu Complex. At the co-creation
center, everyone including those from outside the Company can experience applications
envisioning local 5G at infrastructure facilities. Toshiba Infrastructure Systems & Solutions
Corporation is also working at the co-creation center to collect data using 5G wireless lines
from devices in operation, such as robots and automatic guided vehicles (AGV) that had
previously been difficult to collect, aiming to create added value in the use of AI, etc.
Going forward, we aim to aggressively develop 5G in various directions.
Optimizing Timetables and Train Operations Using AI on the Tokyo Tama
Intercity Monorail
AI-based scheduling reduces workloads
Conventional scheduling
Scheduling
Scheduling
takes time
takes time
Leave a lot of complex
Leave a lot of complex
calculations to AI and let
calculations to AI and let
people do the work that
people do the work that
only humans can do
only humans can do
Strategic simulations!
Reconsidering
Reconsidering
and rescheduling are
and rescheduling are
labor-intensive
labor-intensive
Scheduling requires
Scheduling requires
expertise and experience
expertise and experience
AI-based strategic scheduling
Shorter
scheduling time!
Automatic rescheduling!
Sustainability
Data Section
Business Results
Strategies
Businesses
Businesses
Toshiba Integrated Report 2023
39
40
Toshiba Integrated Report 2023
1,000
100
800
80
600
60
400
40
200
20
0
0
545.2
545.2
23.7
23.7
599.0
599.0
26.3
26.3
448.1
448.1
5.9
5.9
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2022
FY2021
FY2020
UVish Ceiling Recess Type with motion sensor and light
SPACEL, machine-room-less elevator
Net Sales/Operating Income (Loss)
Main Businesses
(As of March 31, 2023)
Net Sales by Segment
12%
Building Solutions
Elevators
Light fixtures
Industrial light parts
Sales of elevator overseas business, and lighting increased, but due to impact of air conditioning busi-
ness deconsolidation and lower sales in elevator domestic business, the Building Solutions segment
saw lower sales overall.
In terms of profit and loss, lighting saw higher operating income, but due to impact of air condition-
ing business deconsolidation and lower operating income in elevator business the segment as a whole
saw lower operating income.
Business Overview
Expanding Our Lineup of the Antibacterial, Deodorizing UVish Series
SPACEL Wins the GOOD DESIGN AWARD 2022
Toshiba Lighting & Technology Corporation has added the UVish Ceiling Recess Type to its UVish series lineup
of disinfecting and deodorizing devices that feature the double effect of UV- LED that emits ultraviolet C waves
considered highly effective in inactivating viruses and bacteria together with photocatalysis. Sales of the UVish
Ceiling Recess Type were launched in March 2023.
Prior to the UVish Ceiling Recess Type, disinfecting and deodorizing devices had generally been placed on
the floor. However, when placing devices on the floor, there were various challenges. For example, obstruc-
tions to wheelchairs and walking in social welfare facilities, concerns
about tampering by children and accidents from contact or falling in
kindergartens and nursery schools, and space limitations in restroom
booths have made installation difficult.
By installing the UVish Ceiling Recess Type in the ceiling, these
concerns are resolved, allowing the disinfecting and deodorization of
spaces where devices previously could not be installed.
Additionally, Toshiba Lighting & Technology Corporation further
expanded the UVish series lineup with the sales launch of the UVish
Floor Type 200, which can cover larger spaces than previous devices
of up to 200 m3.
Toshiba Group company’s SPACEL machine-room-less elevators won the GOOD DESIGN AWARD in the GOOD
DESIGN AWARD 2022, an awards program to promote integrated design held by the Japan Institute of Design
Promotion. The award was given to a joint application by the Company and Toshiba Elevator and Building
Systems Corporation, and the following points received a positive
evaluation.
A system for development and the ability to realize continuous evo-
lution of a single brand for more than 20 years that has produced el-
evators that are disaster-resilient, safe, and peoplefriendly
The achievement of a high level of completeness in which a wide
range of know-how and design considerations are reflected in the
various elements making up the space and function, based on a fun-
damental framework with a consideration of social issues
Large indicators provide information in a manner that is intuitive and
clearly visible, making conditions easy to gather in the confined
space of an elevator and providing a sense of calm and comfort
Attention to detail, as for example in the unique functions that fill the
gaps around the door, providing various solutions to a range of user
conditions
Sustainability
Data Section
Business Results
Strategies
Businesses
Businesses
Toshiba Integrated Report 2023
41
42
Toshiba Integrated Report 2023
1,000
100
800
80
600
60
400
40
200
20
0
0
711.3
711.3
12.5
12.5
859.8
859.8
65.7
65.7
797.1
797.1
42.9
42.9
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2022
FY2021
FY2020
Third-generation SiC MOSFETs
*1
MOSFET stands for Metal Ox-
ide Semiconductor Field Ef-
fect Transistor, a type of tran-
sistor structure.
*2
Compared to second-gener-
ation SiC MOSFETs. Accord-
ing to testing conducted by
Toshiba Electronic Devices &
Storage Corporation.
Buzen Toshiba Electronics Corporation, winner of the
11th GOOD FACTORY AWARD®
Silicon nitride balls and bearings
Net Sales/Operating Income (Loss)
Main Businesses
(As of March 31, 2023)
Power devices
Small-signal devices
Optoelectronic devices
In-vehicle digital & logic
Analog ICs
HDDs
Semiconductor manufactur-
ing equipment
Devices & materials
Net Sales by Segment
22%
Electronic Devices & Storage Solutions
The Electronic Devices & Storage Solutions segment as a whole saw lower sales. While Semiconductor
saw higher sales from firm markets, mainly in industrial use, etc., HDDs & Others saw lower sales due to
shrinkage in mobile and desktop HDD markets and nearline HDD market adjustment, etc.
In terms of profit and loss, the segment as a whole saw lower operating income. While Semiconduc-
tor saw higher operating income reflecting higher sales, HDDs & Others saw lower operating income
due to lower sales and provision for product warranty, etc.
Business Overview
Launch of Third-Generation SiC (Silicon Carbide) MOSFETs That Contribute to
Higher Efficiency of Industrial Equipment
As a new power semiconductor product, Toshiba Electronic Devices & Storage Corporation has commercial-
ized third-generation SiC MOSFETs*¹ with low resistance during operation (on-resistance) and significantly
reduced switching losses.
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, and
demand is projected to continue expanding against the backdrop of the continued electrification of automo-
biles, higher voltage and lower power consumption requirement for industrial equipment, etc. SiC is attract-
ing attention as a next-generation power semiconductor material with higher voltage, higher current and low-
er loss than conventional Si (silicon).
The new product reduces on-resistance per unit area by approximately 43%*² and switching losses by
approximately 20%*². The third-generation SiC MOSFETs, which achieve both reduced on-resistance and re-
duced switching losses, will contribute to further achieving larger
capacity and improving the efficiency of industrial equipment.
Going forward, Toshiba Electronic Devices & Storage Corporation
will continue to expand its power semiconductor product lineup and
expand its production facilities, aiming to realize a carbon-free soci-
ety by providing more user-friendly, high-performance power devic-
es.
Construction of New Manufacturing Facility for Silicon Nitride Balls
Toshiba Materials Co., Ltd. has decided to construct a new manufacturing facility for silicon nitride balls on the
premises of its headquarters. Production is scheduled to begin in November 2023 with an investment in ex-
cess of 5 billion yen. This investment will increase production capacity to 150% of the FY2021 level at full ca-
pacity.
With the electrification of automobiles, the market is demanding shorter charging
times and lower costs. In response, there is increasing adoption of high voltage batteries
and integration of motors with inverters (devices with power circuits that generate alter-
nating current of different frequencies from either direct or alternating current). However,
electrolytic corrosion (damage to a bearing caused by a current flowing through it) of mo-
tor bearings used in such Electronic Devices & Storage Solutions units has become a prob-
lem, and this may hinder the development of highly reliable and widespread electric vehi-
cles. For this reason, in recent years, one of the most effective solutions has been the
adoption of hybrid bearings which consists of ceramic balls that have the advantages of
excellent strength and superior wear resistance in place of standard steel balls, and steel
inner and outer races.
Toshiba Materials Co., Ltd. manufactures silicon nitride balls recognized for their reli-
ability and for delivering the highest mechanical performance. Its experience and record
of success in bearing balls that meet demands for high-speed rotation and anti-electrolyt-
ic corrosion, including machine tools, wind power generators and rolling stock, have won
the company about 50% of the world market. With significant increases in demand for
bearings for electric vehicles on the horizon, Toshiba Materials Co., Ltd. has now decided
to make this significant investment in increasing capacity.
Toshiba Materials Co., Ltd. will continue stable supply of high-quality products, and
will contribute to increased use of environmentally friendly electric vehicles.
GOOD FACTORY AWARD® From the Japan Management Association
Buzen Toshiba Electronics Corporation has been awarded the 11th GOOD FACTORY AWARD® for 2023 by the
Japan Management Association. This is the first time that a manufacturer in the Kyushu region has received
this award. It is also the first time in seven years that the Toshiba Group has won the
award.
The GOOD FACTORY AWARD® consists of four different awards. In recognition of its
management system and human resource development, Buzen Toshiba Electronics Cor-
poration was selected for the Factory Management Award, which recognizes an overall
high level of factory management and well-balanced factory operations.
Sustainability
Data Section
Business Results
Strategies
Businesses
Businesses
Toshiba Integrated Report 2023
43
44
Toshiba Integrated Report 2023
500
100
400
80
300
60
200
40
100
20
0
0
230.6
230.6
24.4
24.4
221.7
221.7
19.9
19.9
235.6
235.6
27.0
27.0
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2022
FY2021
FY2020
Quantum Key Distribution System
Conceptual diagram of Meister SRM™ Portal
Connect
Connect
Visualize
Visualize
Spread
Spread
Buyer company
N-th level
supplier
Secondary
supplier
Secondary
supplier
Primary
supplier
Primary
supplier
N-th level
supplier
Services effective
for maintaining
operations and
business
One-stop usage
Advanced
procurement
activities carried
out by buyer
Identification of
supply chain
information
Reduction of
overlapping
operations
Integration
Integration
Automatic corporate
data acquisition
Inter-company social media
Risk analysis
e-Quotation
Strategic Procurement Solution for buyers
Manufacturing sites
Affiliated services
Supply Chain Platform
Portal
BCP management
General survey
Supplier investigation
General document
exchanger
Procurement analysis
CO2 visualization
services
Matching services
Online comprehensive
general liability insurance
Supply chain visualization
© 2021 Toshiba Digital Solutions Corporation
Gradually being
expanded
Net Sales/Operating Income (Loss)
Main Businesses
(As of March 31, 2023)
Digital solutions services
Net Sales by Segment
7%
Digital Solutions
The Digital Solutions segment as a whole saw higher sales. While there was an impact of the sale of
Chubu Toshiba Engineering Corporation, system projects for public and private sectors both grew.
In terms of profit and loss, the segment as a whole saw higher operating income. While there was
impact of the sale of Chubu Toshiba Engineering Corporation, system projects for public and private
sectors both went strong.
Business Overview
Promotion of Quantum-Related Businesses
Toshiba Digital Solutions Corporation is promoting businesses that utilize quantum technology, such as
Quantum Key Distribution (QKD) and SQBM+™, a quantum-inspired optimization solution.
QKD is the technology to distribute the encryption keys that are used to protect important confidential
data. Theoretically impossible to intercept the encryption key, it protects the data communication infrastruc-
ture from the threat of cyber attacks and enables secure data communication.
The Company is also working on quantum-inspired optimization technology inspired by quantum phe-
nomena. This is proprietary technology of the Company for “combinatorial optimization,” which derives the
optimal solution from a vast number of alternatives. For many social and industrial challenges, combinatorial
optimization is essential for selecting the optimal items from an enormous range of choices; for example,
optimizing financial transactions, the movement of industrial robots, travel and transmission routes, and mo-
lecular design for drug discovery. Through collaborations with research institutions such as universities as
well as with companies, the Toshiba Group has been conducting ver-
ification experiments, etc. to solve social issues in a variety of fields.
Drawing on the knowledge gained through these efforts, we were
able to provide systematized SQBM+™ as a solution.
In April 2022, the Company launched the trial service of the
world’s first QKD-secured metro network for commercial use in Lon-
don, UK, and in August 2022, the Company received an order from
Japan’s National Institute of Information and Communications Tech-
nology (NICT) for QKD and SQBM+™ for the Tokyo QKD Network. Go-
ing forward the Group will continue to contribute to the implementa-
tion of quantum technology in society and the creation of new
industries.
Launch of Meister SRM™ Portal, a Supply Chain Platform
Toshiba Digital Solutions Corporation has started offering the Meister SRM™ Portal supply chain platform,
which is a new service of its Meister SRM™ strategic procurement solution.
In order to respond to unpredictable changes in the business environment, manufacturers need to take
steps to strengthen their supply chains. Suppliers are also required to communicate closely with each other in
order to develop new partners, understand the risk of production stoppages in the event of disasters, and
monitor the status of their carbon neutrality measures.
The Meister SRM™ Portal is a cloud service that connects companies involved in manufacturing and sup-
ports the business activities of companies in the supply chain. By allowing companies subscribing to the ser-
vice to disseminate and share information about themselves and to connect autonomously, the service
makes the supply chain network visible and facilitates the understanding of risks in the supply chain and the
expansion of networks of business partners. In cooperation with partners, we also provide services for calcu-
lating and visualizing greenhouse gas emissions, as well as business matching services for manufacturing. In
October 2022, Mitsui Sumitomo Insurance Com-
pany, Limited linked its newly built insurance
sales system to the Meister SRM™ Portal and be-
gan offering a mechanism to purchase compre-
hensive general liability insurance for the manu-
facturing industry over the Internet. We plan to
continue expanding our services through the
Meister SRM™ Portal.
Going forward, the Toshiba Group will contin-
ue to contribute to the strengthening and upgrad-
ing of supply chains by connecting companies in-
volved
in
manufacturing,
facilitating
the
dissemination and sharing of information be-
tween these companies, and providing a variety
of services that support business activities in a
coordinated and integrated manner.
Establishment of a System to Strengthen the Smart Manufacturing Business
On April 1, 2023, Toshiba Digital Solutions Corporation and Toshiba Infrastructure Systems & Solutions Corpo-
ration established the Smart Manufacturing Division with the goals of strengthening Toshiba’s capacity to re-
spond to digital transformation (DX) in the manufacturing industry, where market expansion is expected, and
promoting business growth.
In response to uncertain social conditions and labor shortages, the manufacturing industry is accelerating
its investment in digitalization for business continuity, including visualization and remote control and opera-
tion of factories, plants, and buildings, as well as supply chain resiliency. In addition, it is expected that DX
investment in data utilization will continue to expand, including data linkage and system integration that en-
compasses a series of flows from design and development to production and maintenance. Furthermore, in
order to respond to new social issues such as carbon neutrality, it is more necessary than ever to address is-
sues that cut across the boundaries of IT, such as the optimal operation of facilities, the use of renewable en-
ergy, and resource reuse, as well as systems that control and operate control equipment in factories, plants,
and buildings, and related technologies (OT: Operational Technology).
The Toshiba Group has established a structure to provide IT and OT solutions for the manufacturing in-
dustry in an integrated manner through the collaborative business operations of the Smart Manufacturing
Division, which was co-established within both Toshiba Digital Solutions Corporation, which specializes in the
IT domain, and Toshiba Infrastructure Systems & Solutions Corporation, which specializes in the OT domain.
By leveraging the latest digital technology centered on the Meister series as well as technologies we have
cultivated over many years in the industrial domain, we plan to accelerate our efforts to expand our Smart
Manufacturing business, focusing on the DX market in the manufacturing industry.
Sustainability
Data Section
Business Results
Strategies
Businesses
Businesses
Toshiba Integrated Report 2023
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46
Toshiba Integrated Report 2023
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
500
300
400
240
300
180
200
120
100
60
-60
0
0
247.5
247.5
216.5
216.5
-20.2
-20.2
-52.7
-52.7
232.8
232.8
-42.0
-42.0
Net Sales (Yen in billions)
Operating Income (Loss) (Yen in billions)
FY2022
FY2021
FY2020
SCiB™, lithium-ion battery
*1
SOC: State of charge. The
batteries can be used at 0 to
100% state of charge, reduc-
ing the required battery foot-
print.
*2
AGV: Automatic guided vehi-
cle
Net Sales by Segment
7%
Net Sales/Operating Income (Loss)
Main Businesses
(As of March 31, 2023)
Battery, etc.
The segment as a whole saw higher sales and rise in operating income.
Business Overview
Others
Ranked No. 1 in Japan, the U.S. and Europe in Overall Patent Strength for
Lithium-Ion Battery-Related Technologies
An independent survey by Patent Result Co., Ltd. in September 2022 ranked Toshiba No. 1 in Japan, the United
States and Europe for patents covering oxide-based negative electrode technology for lithium-ion batteries.
Toshiba began research and development in oxide-based negative electrodes before 2000, with a focus
on Lithium Titanium Oxide (LTO) negative electrodes. Toshiba first applied the technology in the SCiB™, the
lithium-ion battery it brought to market in 2008. Typical lithium-ion batteries have carbon-based negative
electrodes, but Toshiba recognized that LTO, an oxide-based negative electrode, offered excellent character-
istics in six crucial areas: safety, long life, rapid charging, high input and output, low-temperature performance,
and a wide effective SOC*¹.
SCiB™ has been highly evaluated for its excellent safety, long life, and rapid charge/discharge characteris-
tics, and is currently used in a wide range of applications including hybrids and other types of passenger cars,
commercial vehicles such as electric vehicle (EV) buses, trains, ships, electric power, energy, and industrial
equipment such as AGVs*². SCiB™ also helps to reduce emissions of carbon dioxide
(CO2) and nitrogen oxides (NOx), and is expected to be further utilized in the accel-
erating global effort to realize a carbon-neutral society.
Going forward, we will continue to promote research and development of bat-
tery technologies that realize safe, secure, and efficient energy utilization and ac-
tively pursue further patent activities.
Toshiba Group Sustainability Policy
Data Section
Business Results
Strategies
Sustainability
Businesses
Sustainability
Businesses
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Toshiba Integrated Report 2023
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
Sustainability Management Structure
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 manage-
ment 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 related 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.
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 Sustainability Promotion Committee monitors the progress of sustainability-related measures such as KPIs based on material issues.
See below for material issues and KPIs.
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 FY2022, the President and CEO explained important sustainability-related issues that we should focus on, including climate change
and human rights issues, and the implementation of measures to achieve our goals. He pointed out that in order to contribute to the real-
ization of a sustainable society, Toshiba Group itself needs to be a sustainable company, and in order to realize sustainability, it is essential
for each and every one of us to have a strong awareness and accrue behavioral change.
During the month, Mr. Hidemitsu Sasaya, a Professor at Chiba University of Commerce and ESG/SDGs consultant, gave an online sem-
inar on the background to expansion of ESG investment and the realization of ESG management.
We also utilized our internal website to distribute the content aimed at deepening knowledge of ESG and the Toshiba Group’s sustain-
ability 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 FY2022, 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.
From FY2023 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.
The main details of the initiatives undertaken at each committee meeting in FY2022 are as follows:
Sustainability Strategy Committee
Formulation of AI Governance Statement, report on human rights impact assessments, report on climate change initiatives, introduction
of technological trends related to sustainability
Sustainability Promotion Committee
FY2021 summary, FY2022 plan, confirmation of KPIs linked to material issues, report by the Sustainability Strategy Committee
Corporate Environmental Management Committee
FY2021 summary, FY2022 plan, confirmation of progress of KPIs and Environmental Action Plan (EAP) linked to material issues, reports
related to environmental risk compliance, etc.
Sustainability Management Structure
Monitoring
Increasing Employee Awareness of 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.
Non-financial Information Disclosure Committee
Confirmation and approval of information presented in the sustainability website and Integrated Report
Details of the Sustainability Strategy Committee meetings are reported to the Board of Directors to recieve supervision and advice.
Material Issues and KPIs
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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Toshiba Integrated Report 2023
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
Vision for 2030
Material Issues
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
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
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 busi-
ness, 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.
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. The Executive Session
of the Board was established to revitalize the exchange of information among outside directors and to further improve their understanding
of the Company's business, etc., and is comprised solely of outside directors. In principle, meetings are regularly convened once a quarter,
and held on an extraordinary basis if requested by an outside director.
Process of Material Issues Identification
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
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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Toshiba Integrated Report 2023
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
For the irreplaceable global environment in which we live
Respond to Climate Change
KPIs
FY2022 Targets
FY2022 Achievements
FY2023 Targets
Total GHG generated from business activities
1.02 million t-CO2
0.77 million t-CO2
0.98 million t-CO2
Reduction rate of GHG emissions from products and services associated with
power supply (compared to FY2019)
11.4% reduction
70.4% reduction
13.6% reduction
Reductions in GHG emissions contributed by products and services associated
with renewable energy supply (cumulative total from FY2021)
28 million t-CO2
50 million t-CO2
43 million t-CO2
Reductions in GHG emissions contributed by products and services associated
with energy consumption (cumulative total from FY2021)
41 million t-CO2
38 million t-CO2
57 million t-CO2
See below for details of achievements and initiatives.
Response to Climate Change
Respond to the Circular Economy
KPIs
FY2022 Targets
FY2022 Achievements
FY2023 Targets
Waste volume in business activities
25,000 t
30,000 t
25,000 t
Amount of plastic resources recycled in products and services (cumulative total
from FY2021)
1,200 t
1,552 t
1,800 t
Amount of resources saved in products and services (cumulative total from
FY2021)
270,000 t
200,000 t
400,000 t
See below for details of achievements and initiatives.
Response to the Circular Economy
Consider Ecosystems
KPIs
FY2022 Targets
FY2022 Achievements
FY2023 Targets
Amount of chemicals discharged per unit from business activities
99% compared to
FY2021
91% compared to
FY2021
99% compared to
FY2022
Amount of water received per unit from business activities
99% compared to
FY2021
104% compared to
FY2021
99% compared to
FY2022
See below for details of achievements and initiatives.
Consideration of Ecosystems
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
floods, droughts, and enormous typhoons in many parts of the world, the 2015 adoption of the Paris Agreement*1 has accelerated the
movement toward carbon neutrality in each country. In the face of these circumstances, companies must recognize the importance of
climate change from a long-term perspective and proactively respond in order to achieve carbon neutrality.
In addition, over the last several years, countries worldwide have been trying to address issues such as the transition to a circular
economy, marine plastics, water resources, and biodiversity conservation; and society's interest in such issues are on the rise. Meanwhile,
the dissemination of the SDGs, the expansion of ESG investment, and other movements involving corporate management aimed at sus-
tainability overall are gaining momentum.
Amid these changing circumstances, we consider it important to continue providing enriched value to customers while responding to
global trends from a long-term perspective in order to contribute to the realization of a sustainable society and to aim to grow sustainably
as a company. As such, Toshiba Group formulated the Environmental Future Vision 2050 as a new long-term vision in November 2020 to
address carbon neutrality, the circular economy, and other issues from a global perspective. With the goal of “contributing to the realiza-
tion of a sustainable society through environmental management which aims to create enriched value and to ensure harmony with the
earth,” the Environmental Future Vision 2050 aims to realize a sustainable society—in other words, a decarbonized society, a resource cir-
culating society, and a society in harmony with nature. Under the same concept of backcasting,*2 which has been incorporated at the for-
mulation of the previous Vision from 2007, 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. In November 2021, we
revised the vision “response to climate change” to further accelerate initiatives toward achieving carbon neutrality throughout the entire
value chain*3.
Environmental Future Vision 2050
*1 The Paris Agreement is an international framework adopted at the 21st session of the Conference of the Parties (COP21) that seeks to reduce the volume of greenhouse gas (GHG) emissions. It aims to re-
strain the increase in the global average temperatures to less than 2°C from the pre-industrial level and to pursue efforts to limit the temperature increase even further to 1.5°C. To this end, the Agreement's
target is to lower the volume of GHG emissions to substantially zero by the latter half of this century.
*2 Backcasting is a method that defines a desired goal and works back through the series of actions necessary for its achievement.
*3 Vision “Response to climate change” formulated in November 2020: “Contribution through the entire value chain to achieve net zero GHG emissions in society (50% reduction across the Group's value chain
by FY2030)”
Vision “Response to climate change” revised in November 2021: “Achievement of carbon neutrality throughout the entire value chain (70% reduction of GHG emissions by FY2030)”
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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Toshiba Integrated Report 2023
KPIs
FY2022 Targets
FY2022 Achievements
FY2023 Targets
Percentage of female employees in executive and in managerial positions
(Percentage of female exempt employees)*1
6.0%
5.8%
6.5%
Set a target of 8% for FY2025
Engagement score in the employee engagement survey*1
63%*1
(55 points*2)
55 points*1
57 points*3
Set a target of 59 points or above for FY2025*3
Number of AI experts*4
2,000
2,100
2,200
*1 At Toshiba, Toshiba Energy Systems & Solutions Corporation, Toshiba Infrastructure Systems & Solutions Corporation, Toshiba Electronic Devices & Storage Corporation, and Toshiba Digital Solutions
Corporation
*2 The engagement measurement method has been changed from FY2022. 63% of the conventional method is equivalent to 55 points in the new method.
*3 All companies participating in the TEAM survey (Reference: in FY2022, 87 Toshiba Group companies in Japan and overseas, or 64% of all employees, participated.)
*4 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, and Toshiba Lighting & Technology Corporation
Secure, Retain and Train Human Resources
See below for details of achievements and initiatives.
Fair Evaluation and Talent Development
Promotion of Diversity and Inclusion
For respect of human rights, to nurture people and technology,
and to give back to society
See below for details of achievements and initiatives.
Ensure Employee Health and Safety
Ensure Employee Health and Safety
KPIs
FY2022 Targets
FY2022 Achievements
FY2023 Targets
Fatality due to work-related accidents
Zero (no accidents)
1
Zero (no accidents)
Severity rate of work-related accidents*1
0.01*2 or less
0.005
0.01*2 or less
Ratio of employees with metabolic syndrome*1
Same as the previous fiscal
year or less
34.6%
Same as the previous fiscal
year or less
28.6% or 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.
*1 At Toshiba and Toshiba Group 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
Respect for Human Rights
KPIs
FY2022 Targets
FY2022 Achievements
FY2023 Targets
Rate of human rights-related seminars and workshops for sustainability lead-
ers held
100%
100%
100%
Participation rate in human rights education programs
(e-learning) under the Standards of Conduct for Toshiba Group
100%
99%
100%
Human rights due diligence initiatives
(a) Implementation rate of human rights impact assessments in our own com-
pany’s businesses
100%
100%
―
Human rights due diligence initiatives
(b) Implementation rate of the survey on the actual conditions and the mea-
sures for correction, prevention, and mitigation
―
―
100%
*1
*1
*2
*1
*1
*1
*1 At Toshiba, key Group companies, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, and Toshiba Plant Systems & Services Corporation
*2 Implement at expanded targets
See below for details of achievements and initiatives.
Respect for Human Rights
Promote Sustainable Procurement
KPIs
FY2022 Targets
FY2022 Achievements
FY2023 Targets
Obtaining consent for the Toshiba Group Procurement Policy from new
suppliers
100%
100%
100%
Number of companies where we conducted our Sustainable Procurement
Survey*1
11,400
12,622
13,000
Implementation rate of sustainable procurement training on Group procure-
ment employees*2
38%
41%
100%
See below for details of achievements and initiatives.
Promote Sustainable Procurement
Fair Trading (Risk Management and Compliance)
Procurement
*1 The number of companies is a cumulative total. Implementation rate at key business partners is 100%.
*2 Excluding Toshiba Tec Corporation.
Strengthen R&D to Stimulate Innovation
KPIs
FY2022 Target
FY2022 Achievements
FY2023 Target
Ratio of R&D expenses to sales
5.0% or higher
4.7%
5.0% or higher
See below for details of achievements and initiatives.
Strengthen R&D to Stimulate Innovation
Technologies
For further strengthening thorough governance
Strengthen Governance
KPIs
FY2022 Target
FY2022 Achievements
FY2023 Target
Percentage of outside directors on Toshiba’s Nomination Committee, Audit
Committee, and Compensation Committee*
100%
100%
100%
* Toshiba
See below for details of achievements and initiatives.
Cyber Security Report
Cyber Security
Strengthen Cyber Resilience
KPIs
FY2022 Target
FY2022 Achievements
FY2023 Target
Maturity self-assessment regarding cyber security
management*
Higher than previous
fiscal year
3.4
Higher than previous fiscal year
(upon reaching 4, remain at 4 or higher)
* At key Group companies, Toshiba Elevator and Building Systems Corporation, Toshiba Lighting & Technology Corporation, Toshiba Plant Systems & Services Corporation, and Toshiba Development & Engi-
neering Corporation
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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Toshiba Integrated Report 2023
Held twice a year
Chairperson: President and CEO
Held twice a year
Chairperson:
Executive in charge of Environment
Board of Directors
Sustainability Strategy Committee
Corporate Environmental
Management Committee
Environmental Management
Committee of Group Companies
Report
Supervision / Direction
Information Disclosure Based on the TCFD
Recommendations
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. Based on the TCFD recommendations, we will proactively disclose information on risks and opportunities for our
business brought about by climate change and promote initiatives to reduce such risks and maximize opportunities.
Under Environmental Future Vision 2050, Toshiba Group is undertaking initiatives on climate change with the aim of achieving carbon
neutrality throughout our entire value chain. In addition to reducing GHG emissions within the Group, measures are actively being imple-
mented in each stage of the value chain, including increasing the creation of products and services that contribute to reducing GHG emis-
sions in society and cooperating with suppliers to reduce upstream emissions.
Toshiba Group material issues also include "response to climate change" as a key item, and achieving carbon neutrality is an import-
ant policy shared by the entire Toshiba Group.
To realize highly resilient corporate management as society changes in various ways due to the impact of climate change, it is important
to respond appropriately by grasping the risks and opportunities from climate change facing our company. Under the Sustainability Strat-
egy Committee chaired by the President and CEO, Toshiba Group conducts scenario analysis for each business domain to grasp and
consider countermeasures for climate change-related risks and opportunities.
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. Specifically, the status of initiatives related to climate change is reported to the Board of Directors four times a
year.
The main resolutions and cases regarding climate change reported at recent Board of Directors meetings are as follows:
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.
Toshiba Group has introduced evaluation of non-financial aspects to its executive compensation system. In the individual evaluation
for performance-linked compensation of Toshiba Corporation’s Executive Officers and Corporate Officers as well as some senior directors
at Group companies, special contributions for environmental management, including response to climate change, are taken into account.
The evaluation items include the status of progress toward GHG reduction targets and initiatives for achieving carbon neutrality.
Using the same evaluation items as for officers, we also conduct environmental management evaluation of our key group companies.
The results of environmental management evaluations are reflected in each company’s performance evaluation as well as each company’s
employee bonuses.
FY2021: Toshiba Group Sustainability Policy, which is a new policy on sustainability management that includes the company’s response
to climate change, was resolved.
FY2022: Toshiba Group’s carbon neutral promotion scheme and the setting of renewed SBT (Science Based Targets) as well as the setting
of non-financial KPIs associated with Toshiba Group’s material issues, including response to climate change, were reported.
Governance
Strategy
Toshiba Group Environmental Audits and Performance Evaluation System
Environmental Management Structure
Sustainability Management
Environmental Future Vision 2050
Material Issues and KPIs
In scenario analysis, we set up the following two scenarios:
1.5°C scenario:
For mainly transition risks and opportunities, we use the Net Zero Emissions by 2050 (NZE) scenario created by the International Energy
Agency (IEA), assuming a world where the temperature increases by 1.5°C compared to the level before the industrial revolution. This sce-
nario predicts increase in costs due to carbon 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 RCP 8.5 scenario described in the Fifth Assessment Report of the Intergovernmen-
tal Panel on Climate Change (IPCC), assuming a world where the temperature increases by more than 4°C compared to the level before the
industrial revolution. Although this scenario does not predict an impact due to regulations and technology as the 1.5°C scenario does, the
impact of physical damage such as greater risk of natural disasters like typhoons and floods caused by unusual weather may increase.
Scope:
To confirm the wider impact on all our main businesses, we expanded the targets of scenario analysis to the following seven business
domains in FY2023. Since each domain has various businesses and the content and degree of impact of risks and opportunities vary ac-
cording 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 (sup-
pliers) and downstream (customers, users).
- Energy Systems & Solutions Business
- Infrastructure Systems & Solutions Business
- Building Solutions Business
- Retail & Printing Solutions Business
- Electronic Devices & Storage Solutions Business
- Digital Solutions Business
- Other (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 the
mid-term business plan, up to FY2030 as the mid-term in light of the setting periods of Toshiba Group’s management policy and our GHG
emissions reduction targets (mid-term), and up to FY2050 as the long-term in light of Toshiba Group’s Environmental Future Vision 2050
and our GHG emissions reduction targets (long-term).
Setting scenarios
Analysis method
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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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 scope on the previous page. First,
each business division identifies transition and physical risks and opportunities that climate change would pose to their respective busi-
ness in line with the two scenarios, “1.5°C” and “4°C,” based on the risk and opportunity categories presented in the TCFD recommenda-
tions, in light of the relevant business circumstances. Then, each business division assesses the importance of each risk and opportunity
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 high 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 are calculated for the
amount of financial impact and countermeasure costs by setting parameters, and we will give priority to formulating countermeasures for
such items.
The main results of the latest scenario analysis conducted in FY2023 are as follows.
With respect to risks by business, mainly transition risks under the 1.5°C scenario are described. For physical risks under the 4°C scenario,
please refer to Risks and Opportunities Common to Toshiba Group.
Opportunities are also described mainly under the 1.5°C scenario. However, these also include some opportunities under the 4°C
scenario (increase in demand for disaster management solutions, disaster-resistant elevators, and emergency storage battery systems).
Analysis results
Category
Main Risks
Importance
Main Countermeasures
Transition
Risks
Policy and
Legal
Increase in response costs due to the wider introduction of
carbon taxes and the emissions trading systems and to the
rise in the certificate price, price passed through to raw ma-
terials
Increase in requests for the introduction of renewable ener-
gy due to GHG emissions reduction targets and policies of
countries
Increase in response costs due to stricter energy saving re-
lated laws and regulations and information disclosure relat-
ed laws and regulations
Meidum
Introduction of the internal carbon pricing system
for suppressing increase in future energy costs and
certificate and credit related costs
Expanding the introduction of renewable energy
Promotion of the development of environmentally
conscious products with high energy saving
performance
Technology
Missing out on sales opportunities due to delayed develop-
ment in response to growing demand for products and ser-
vices that contribute to carbon neutrality
Meidum
Investment in the research and development of
renewable energy related technologies and products
and services with high energy saving performance
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
Meidum
Appropriate and quick response to requests from
markets and customers
Formulation of a procurement plan for business
continuity including securing multiple 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
Small
Promotion of initiatives and strengthening of information
disclosure in light of requirements from outside the
company
- Response to Climate Change
- Evaluations
Physical Risks
Suspended operations and increased response costs due to
the impacts of natural disasters such as typhoons and
floods (listed below)
- Damage to production equipment
- Impact on component procurement due to damage to
suppliers
- Impact on logistics and sales capabilities
- Impact on employees
Meidum
Strengthening of business continuity plan (BCP)
Securing multiple suppliers
- Risk Management Using the Business Continuity Plan
(BCP)
Category
Main Opportunities
Importance
Main Countermeasures
Opportunities
Increase in demand for technologies, products, and services
that contribute to carbon neutrality
Large
Provision of products and services that contribute to
carbon neutrality
- Provision of green transformation (GX) consulting
service (Japanese only)
- Development and provision of renewable energy
related technologies, VPP, hydrogen solutions, CO2
separation and capture technology
Risks and Opportunities Common to Toshiba Group
Toshiba Group’s Risks and Opportunities by Business
* “Transition Risks" and "Opportunities" in common risks/opportunities are mainly identified assuming the 1.5°C scenario. “Physical Risks” are identified assuming the 4°C scenario.
* “Importance” of common risks/opportunities is based on the assessment of "impact" and "likelihood" as described in the "Analysis steps" above, and is determined comprehensively considering other
factors such as the status of our response to the risks/opportunities.
Main Risks
Main Opportunities
Related products, services, and initiatives
Increase in response costs and missing out on sales opportu-
nities due to regulations on the sale of equipment that uses
sulfur hexafluoride (SF6) such as gas insulated switchgears, for
which regulations are increasingly restrictive
Missing out on sales opportunities for products due to de-
layed development of new technologies related to renewable
energy
Missing out on sales opportunities due to the shortage or dif-
ficulty in procuring renewable energy-related components
Increase in product development and production costs due to
changes of the materials of energy related products for low
carbonization or decarbonization
Costs for design changes to wind power generation facilities in
the case of winds exceeding expectations due to extreme
weather
Increase in demand for renewable ener-
gy-related technologies
Increase in demand for virtual power
plants (VPP)
Increase in demand for hydrogen solu-
tions
Increase in demand for SF6 gas-free
equipment
Spread and expansion of CCUS (Carbon
dioxide Capture, Utilization and Storage)
Spread and expansion of Direct Current
Power Transmission grids
Renewable Energy & VPP
Hydrogen Energy
Toshiba and Meidensha to develop
GIS jointly using natural origin gases
Efforts for CO2 emission reduction-CO2
capture technology
Development Project of Integrated
Demonstration Facility and Supply
Chain for Sustainable CCUS Adopted
by Ministry of the Environment
The Renaissance of Direct Current
Power Transmission: Why Now and
What Makes It Special?
Increase in development costs as a result of introducing low
carbon technologies or next-generation technologies to so-
cial infrastructure products, industrial equipment, etc.
Increase in response costs and missing out on sales opportu-
nities due to regulations on the sale of equipment that uses
sulfur hexafluoride (SF6) such as cubicle gas insulated switch-
gears (C-GIS) for which regulations are increasingly restrictive
Increase in procurement costs due to price hikes in steel, cop-
per, aluminum, magnets, etc.
Increase in product development and production costs as a
result of changing the materials for low carbonization and de-
carbonization in social infrastructure facilities, etc.
Increase in demand for railway systems
using batteries that contribute to reduc-
ing environmental impacts
Increase in demand for automotive prod-
ucts (motors, etc.) due to increased sales
of electric vehicles
Increase in demand for products with low
CO2 emissions and systems linked to such
products
Increase in demand for disaster manage-
ment solutions
Railway Systems
Automotive Motors
Automotive Motors (U.S. manufac-
turing site)
Disaster Management Solutions
Stormwater Drainage Solutions
Renewable Energy Power Genera-
tion Systems (Japanese only)
Phased Array Weather Radar
Robotics, Logistics System Solutions
[Lighting Business]
Missing out on sales opportunities for next-generation solu-
tions to achieve carbon neutrality due to delayed develop-
ment
Increase in procurement costs due to price hikes in main ma-
terials, including steel sheets, aluminum, copper, glass, resin,
etc.
[Elevator & Escalator Business]
Missing out on sales opportunities due to delayed develop-
ment of energy-saving technologies for elevators and escala-
tors
Increase in product costs due to increased procurement costs
as a result of improved energy-saving functions of elevators
and escalators
[Lighting Business]
Increase in demand for high efficiency
LED lighting due to increased upgrading
to equipment with high energy-saving
performance
Increase in demand for automotive high
efficiency LED products due to a greater
number of vehicles with high environ-
mental performance (hybrid vehicles,
electric vehicles, etc.)
[Elevator & Escalator Business]
Increase in demand for elevators and es-
calators with high energy-saving perfor-
mance
Increase in demand for renewal to the lat-
est control systems due to the accelera-
tion of energy-saving initiatives for exist-
ing buildings
Increase in demand for disaster-resistant
elevators, such as those that resist flood
damage
[Lighting Business]
General Lighting LED lighting with
camera ViewLED (Japanese only)
Industrial Lighting An eco-friendly
light source
Environmental Initiatives (Environ-
mentally Conscious Products (ECPs))
(Japanese only)
[Elevator & Escalator Business]
Toshiba Machine-Room-Less Eleva-
tors SPACEL Energy-saving Type
Toshiba Machine-Room-Less Eleva-
tors SPACEL SDGs Initiatives
Toshiba Escalators Standard/
Space-saving Type TG Series (Japa-
nese only)
Toshiba Escalators Standard/
Space-saving Type TG Series SDGs
Initiatives (Japanese only)
Missing out on sales opportunities for retail & printing related
products* and solutions due to failing to meet the standards
required by the market and customers
Missing out on sales opportunities for retail & printing related
products and solutions due to delayed development of ener-
gy-saving technologies
Missing out on sales opportunities due to a lack of emphasis
on energy-saving and renewable energy effects of solutions to
customers
Increase in costs due to price pass-through to procured items
and distribution costs as a result of accelerated response to
climate change by suppliers and distribution partners
* POS products, Auto ID products, MFP products, and inkjet head products
Increase in demand for POS products with
high energy-saving performance, auto ID
products, MFP products, Loops (paper re-
use system), linerless label printers, MPS/
MDS (optimization of customer printing
costs) solutions, etc.
Increase in demand for data services, in-
cluding retail media (advertisement dis-
tribution service) due to the spread of
smart receipts and also data sales due to
increased collection of ID-POS data
Increase in demand for products and ser-
vices that contribute to limiting food dis-
posal loss and the resulting reduction in
energy consumption
Increase in demand for inkjet head prod-
ucts and inkjet head solution services
that contribute to low power consump-
tion and reduced environmental impacts
The following links are all in Japanese.
Data Use Services
Distribution Headquarters/Store
System
POS Registers/Store Equipment
Label Printers/Automatic Recogni-
tion System
MFPs/Office Equipment
Inkjet Heads
Energy Systems & Solutions Business
Infrastructure Systems &
Solutions Business
Building Solutions Business
Retail & Printing Solutions Business
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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Main Risks
Main Opportunities
Related products, services, and initiatives
Increase in costs as a result of installing detoxifying equip-
ment or changing to alternative gases due to tightened regu-
lations on wafer-etching process gas
Increase in amount of capital investment for reducing green-
house gas emissions
Increase in response costs due to an expanded information
disclosure obligation regarding climate change response
Missing out on sales opportunities due to being unable to de-
velop products that contribute to carbon neutrality including
power semiconductors at an appropriate time
Increase in raw material costs due to increased demand for
products and technologies that contribute to carbon neutral-
ity (electric vehicles, etc.)
Increase in demand for energy efficiency
products, including power semiconduc-
tors and high-efficiency semiconductors
Increase in demand for semiconductor
products that are adapted to demand for
energy-saving products
Increase in demand for products related
to electric vehicles due to the expansion
of their market
Increased in demand for low power-con-
sumption helium-filled HDDs
Power Semiconductors
Toshiba to Expand Power Semicon-
ductor Production Capacity with
300-millimeter Wafer Fabrication
Facility
Automotive Devices
Storage Products
Epitaxial Reactors with High Growth
Rate
Parts Materials (Silicon nitride
bearing ball, Silicon nitride ceramic
substrate)
Missing out on sales opportunities due to delayed develop-
ment of innovative digital technologies and ICT solutions that
contribute to carbon neutrality
Missing out on sales opportunities due to a lack of human re-
sources who support the advancement of digital technologies
that contribute to the achievement of carbon neutrality; in-
crease in costs for securing and developing human resources
Increase in demand for ICT solutions
(manufacturing IoT solution “Meister Fac-
tory series,” manufacturing IoT cloud ser-
vice “Meister ManufactX™,” etc.) that con-
tribute to reducing greenhouse gas
through
improved
productivity
and
streamlining of operations
Increase in demand for co-creation and
collaboration with partners who are de-
veloping
decarbonization
businesses
(strategic procurement solution “Meister
SRM™,” etc.)
Increase in demand for maintenance, op-
eration, and recurring businesses for re-
ducing environmental impacts
Increase in demand for co-creation and
data utilization businesses (human re-
source management solution “General-
ist®,” etc.) that involve customers and the
industry
Factory IoT Platform
Manufacturing IoT Cloud Service
Strategic Procurement Solution
"Meister SRM™" (Japanese only)
Toshiba Succeeds in CO2 Data
Calculation and Data Linkage in
Demonstration Test Phase 2 of "CO2
Data Linkage on the Virtual Supply
Chain" Hosted by "Green x Digital
Consortium (Secretariat: JEITA)"
—Demonstrating Data Linkage/
Exchange Using Meister SRM Portal
and Asset Administration Shell
Technology— (Japanese only)
Human Resource Management
Solution "Generalist®" (Japanese
only)
Increase in costs for automotive batteries due to tightening of
automobile fuel consumption regulations
Price hikes in raw materials due to export controls in rare met-
al-producing countries
Increase in costs and price pass-through to procured products
due to compliance with EU battery regulations
Increase in R&D expenses for the development of materials
and establishment of manufacturing technologies with less
greenhouse gas emissions to reduce carbon footprint
Increase in procurement costs that are associated with chang-
es in materials due to advanced energy-saving technologies
for batteries
Missing out on overseas sales opportunities due to delayed
investment decisions in response to increasing demand for
automotive batteries, etc.
Increase in demand for automotive bat-
teries as a result of the shift to hybrid and
electric vehicles
Increase in demand for stationary and in-
dustrial batteries with high energy-saving
performance for railways, vessels, indus-
trial equipment, etc.
Increase in demand for storage battery
systems due to accelerated introduction
of renewable energy
Increase in demand for products that
meet adaptation needs, such as emer-
gency storage battery systems
SCiB™
Toshiba's SCiB™ rechargeable
battery used in various fields
SCiB™ Topics
Sustainability of SCiB™
Expansion of the Facilities of Yokohama
Battery Operations for Increasing Pro-
duction of Lithium-ion Batteries
Electronic Devices & Storage
Solutions Business
Digital Solutions Business
Other (Batttery Business)
For the details of the scenario analysis results for the Retail & Printing Solutions business, please refer to “Toshiba Tec Group Integrated
Report 2023.”
As a result of the scenario analysis for each business assuming the 1.5°C 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-related 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 opportunities, we also identified
various business opportunities for each business, including renewable energy-related technologies, railway systems, disaster manage-
ment solutions, high efficiency LED lighting, elevators with high energy-saving performance, POS systems and multifunction peripherals
(MFPs), power semiconductors, ICT solutions that contribute to reducing GHG emissions, and automotive batteries.
Some of the countermeasures for risks and opportunities that were identified and assessed in the scenario analysis are incorporated into
the mid-term business plan of each business domain, and measures are promoted. Risks and opportunities of high importance will con-
tinue to be reflected in mid-term business plans, and their progress will be managed regularly.
Toshiba Group’s management policy announced in June 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. To increase this policy’s effectiveness, we first launched a Toshiba Group company-wide project in FY2022
to formulate a GHG reduction roadmap that incorporates specific measures toward carbon neutrality at our own business and production
sites, and then promote these activities. In addition, toward contributing to carbon neutrality of the entire society, we have established a
structure to promote our business quickly and effectively by making a organizational change to strengthen our energy aggregation busi-
ness in FY2022, and launching a Negative Emission Project Team in FY2023.
Going forward, we will continue to link scenario analysis results to Toshiba Group’s business strategy and engage in resilient business
management while appropriately responding to risks and opportunities.
Countermeasures
Our strategy
Response to Climate Change in Business Activities
Products and Services Associated with Power Supply
Products and Services Associated with Power Consumption
Contribution to GHG reduction through digital technology
Adaptation Measures to Avoid the Effect of Climate Change
Initiatives for Carbon Neutral (Toshiba Energy Systems & Solutions Corporation)
Structure of Risk Management and Compliance
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 monthly as matters arise. We have added climate-related risks (policy
and legal risks, technology risks, market risks, reputation risks, and physical risks) based on the TCFD recommendations to the business
risk criteria and will work to strengthen the assessment processes concerning climate change going forward.
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
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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1. Reduce the total of Scope 1*¹ and Scope 2*² (GHG emissions generated from Toshiba Group's own business
activities) by 100%*³ by FY2030. (from the FY2019 level)
2. Reduce the total of Scope 3*⁴ by 70%*⁵ by FY2030. (from the FY2019 level)
Water
resource
risks
Groundwater
resource
risks
Water quality
risks
Regulatory/
Reputation
(Amount of water
withdrawal) risks
Regulatory/
Reputation
(Wastewater
quality) risks
Flood
risks
Drought
risks
Legend
Priority 1
Priority 2
Priority 3
Priority 4
Other
4 sites
49 sites
61 sites
59 sites
55 sites
45 sites
29 sites
46 sites
7 sites
7 sites
8 sites
8 sites
12 sites
12 sites
8 sites
8 sites
7 sites
7 sites
8 sites
8 sites
3 sites
3 sites
3 sites
3 sites
3 sites
3 sites
3 sites
3 sites
4 sites
4 sites
2 sites
2 sites
2 sites
2 sites
2 sites
2 sites
0 site
0 site
1 site
1 site
1 site
4 site
0 site
0 site
0 site
0 site
0 site
0 site
0 site
0 site
Under 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 targets for FY2030 and are promoting related initiatives.
Toshiba Group will assess its dependencies and impacts on nature due to its corporate activities as well as identify risks and opportunities
related to nature, followed by consideration of countermeasures. We aim to develop effective activities that contribute to ‘nature-positive’
world from the viewpoint of both “avoiding and reducing impacts on nature” as well as “restoring and regenerating nature.”
Response to “water risks” is an important issue in our environmental management. Toshiba Group, encompassing many businesses,
has businesses with large impacts on water resources and other natural capital*, and has sites in various regions around the world. There-
fore, we assess and analyze “water risks” that affect corporate activities and are working to strengthen water risk management.
Regarding all Toshiba Group production sites in Japan and abroad (approximately 60 sites), we assess water risks by categorizing them into
“water quantity (water resource, groundwater resource, and drought) risks,” “water quality risks,” “flood risks,” and “regulatory and reputa-
tional risks.”
In this assessment, we first conducted the primary assessment using “Aqueduct,” a water risk assessment tool run by the World Re-
sources Institute (WRI), along with implementation of a questionnaire survey of the target sites and analysis of hazard maps to supplement
the assessment results, in order to obtain and develop data for each site. Through this process, we assessed the water risks of river basins
(external factor assessment) on a five-point scale (very High/High/Medium/Low/very Low).
Next, from the sites with a high risk level identified as “very High” or “High” in the external factor assessment results, we chose high
priority sites (Priority 1 to 4) taking into consideration the business impact level (Category 1 to 5) based on major indicators, including the
amount of water withdrawal, amount of water discharged, and output, then finally extracted sites with high water risks.
By minimizing water risks mainly at high-risk sites extracted in the assessment, Toshiba Group will contribute to resolving water issues in
various areas through the provision of products and services that contribute to reducing water risks.
As of FY2022, reduction is progressing smoothly in all of Scope 1, 2, and 3 toward achievement of the targets. We will continue to promote
GHG reduction measures at each stage of the value chain.
For the results of Scope 1, 2, and Scope 3 Category 11 (emissions caused by the use of sold products and services), we undergo a
third-party verification to ensure data reliability.
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 Purchasing of carbon credits to offset GHG emissions of process gases etc., which are difficult to reduce, is incorporated into the carbon neutrality process. The target is set by 70% reduction
if purchasing of carbon credits is excluded.
*4 Volume of indirect emissions generated by Toshiba’s value chain (raw materials procurement, distribution, sales, disposal, etc.) outside Scope 1 and 2
*5 We promote GHG reduction measures especially for Category 11 (emissions caused by the use of sold products and services) and Category1 (emissions from purchased goods and services),
where emissions are particularly high.
Environmental Future Vision 2050
The Seventh Environmental Action Plan
Response to Climate Change
Greenhouse Gas Emissions Across the Value Chain
Third-party Verification
Consideration of Ecosystems
Response to Water Risk
Consideration of Ecosystems
* The impacts of each business on natural capital (especially water resources) are assessed using the MST tool, which is a tool for conducting materiality analysis of 12 impact categories within 5 issue areas,
including changes in the use of ecosystems; exploitation of resource such as water; climate change; pollution; and invasive species, per sector.
Water Risk Assessment
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
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Non-Japanese → 5
45%
Japanese → 6
55%
Female → 1
9%
Male → 10
91%
Internal Director → 1
9%
Outside
Director → 10
91%
These pages show information about FY2022 based on the information as of November 2023.
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
Corporate Governance Structure
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, and determine the content of individual compensation for Executive
Officers, among other matters. The Nomination Committee, Audit Committee, Compensation Committee and Special Committee
are chaired by an Outside Director.
Committees composed exclusively of Outside Directors
Point 1
Highlights of Corporate Governance
While having Directors recommended by our major shareholders as shareholder representatives, the Board of Directors is equipped
with skill sets required for promoting business transformation for the Company and handling high-risk matters, comprising mem-
bers who have experience in international business, expertise in business portfolio management, business restructuring, M&A, and
capital markets and capital allocation, and expert knowledge of law and compliance, including five foreign-national Directors.
Directors with a wide range of skills and backgrounds
Point 2
In April 2022, the Company established a Special Committee, composed of Outside Directors, to engage with potential investors
and sponsors and review strategic alternatives that include privatization, and solicited proposals from potential investors and
sponsors as potential partners regarding strategic alternatives to enhance the Company’s corporate value.
The management team led the engagement with potential investors and sponsors and review of strategic alternatives that in-
clude privatization. The Special Committee was substantially involved in the engagement and review by confirming the status of
them in a timely manner, confirming the approach of the management team in advance, and expressing its opinions on important
aspects.
The Company’s Board of Directors carefully considered a tender offer by TBJH Inc. for shares in the Company while respecting
the content of a report submitted by the Special Committee to the fullest extent possible, and resolved to support the tender offer
and recommend that shareholders tender their shares in the tender offer.
Review of strategic alternatives
Point 3
Corporate Governance
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” as of December 21, 2015, that form the framework of gover-
nance of the Company.
During the FY2022, the Board of Directors met 20 times, the Nomination Committee 10 times, the Audit Committee 15 times, the Compen-
sation Committee 13 times, and the Special Committee 41 times. The following outlines the Board of Directors’ and committees’ principal
activities.
Basic Views of Corporate Governance
State of Activities of the Board of Directors and Committees
In April 2022, a Special Committee (“SC”) was formed to engage
with potential investors and sponsors and explore strategic al-
ternatives.
In March 2023, the Board of Directors resolved to consult with
SC (i) whether the certain series of transactions, including a ten-
der offer for the common shares of the Company, conducted by
TBJH Inc. for the purpose to make TBJH become the sole share-
holder of the Company and have the Company privatized (the
“Transaction”), would contribute to the enhancement of the
Company’s corporate value, (ii) whether the procedures for con-
sideration, discussion and negotiation of the Transaction were
fair, (iii) whether the methods and terms of the Transaction are
fair and appropriate, (iv) whether the Transaction is not disad-
vantageous for general shareholders of the Company in light of
(i) through (iii), and (v) whether or not the Board of Directors
should support the tender offer and recommend that share-
State of activities of the Board of Directors
holders tender their shares in the tender offer in light of (i)
through (iv).
In March 2023, with respect to the tender offer by TBJH Inc. for
the Company’s common shares, with the utmost respect for the
contents of the report submitted by the SC in response to the
aforementioned consultation, the Company resolved to express
its opinion supporting the tender offer, if commenced, as of
March 2023.
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.
State of activities by committees
a. Nomination Committee
The Nomination Committee deliberated candidates for succes-
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
Toshiba Integrated Report 2023
65
66
Toshiba Integrated Report 2023
sors to Executive Officer, President and CEO.
The Nomination Committee deliberated on the composition of
the Board of 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 FY2021.
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 2022.
The Compensation Committee deliberated on the extraordi-
nary compensation for Directors.
The Compensation Committee deliberated on the compensa-
tion plan for Directors and Officers.
On April 7, the Company established a Special Committee, in
order to engage with potential investors and sponsors and re-
view strategic alternatives, and on April 21, a resolution was
made to solicit proposals on strategic alternatives to enhance
the Company’s corporate value from potential investors and
sponsors who may become potential partners.
Solicitation for proposals was conducted in two phases, with
the initial phase providing limited disclosure information and
soliciting a broad range of non-legally binding proposals, and
initial proposals were received from ten potential partners, in-
cluding Japan Industrial Partners, Inc. (JIP).
After selecting and narrowing down several potential partners,
including JIP in the second phase, and after conducting several
months of management interviews and due diligence, a legally
binding proposal was received from JIP on September 30, 2022.
Subsequently, as a result of discussions on the tender offer
price and confirmation of the funding support, discussions with
JIP were finalized in mid-March 2023, and the Special Commit-
tee submitted its report of findings to the Board of Directors on
March 23, 2023, based on a request from the Board of Directors.
The FY2022 evaluation on effectiveness of the Board of Directors
(hereinafter referred to as the “FY2022 Review”) was implemented
by Board Advisors Japan, Inc. (hereinafter referred to as “Board
Advisors”), as a third-party evaluator, from November 2022 to
March 2023.
In the FY2022 Review, the evaluation methods, including the
advance questionnaire to all Directors, the individual interviews
of approximately two hours of all Directors, the individual inter-
views of approximately one hour of the four Executive Officers
and the interview of the Board of Directors secretariat, have been
taken. The advance questionnaire consists of 14 areas, namely,
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.
Compensation for Directors = Base salary + Committee
allowance + Attendance allowance for travel to
non-resident countries
Since the main responsibility of Directors is to supervise the exe-
cution 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, en-
suring effective functioning of the supervisory function, and im-
proving corporate value from a medium- to long-term perspec-
tive.
Directors are paid the Base salary (fixed amount) and the Com-
mittee Allowance (fixed amount) in accordance with the scope
Compensation for Executive Officers = Base salary +
Performance-linked compensation (shares and cash)
Since the main responsibility of Executive Officers is to increase
corporate value in their capacity as executives responsible for
companies or divisions within the Group, the Company has a ba-
b. Audit Committee
c. Compensation Committee
d. Special Committee
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 cor-
porate ethics and laws and regulations and preventing the re-
currence of inappropriate accounting conduct. In addition, the
Audit Committee received reports regularly from the Internal
Audit Division on their audit results, and from the Legal & Com-
pliance Division and the Project Audit Division on their state of
activities, thereby verifying the state of implementation of inter-
nal control system. All of the full-time and part-time Audit Com-
mittee members attended all hearings and reporting sessions,
checked materials and minutes, and participated actively in
audit activities.
Audit Committee members, led by Chairperson of the Audit
Committee, collected information actively, which involves at-
tending important meetings (such as corporate management
meetings, Risk-Compliance Committee meetings, and Annual
Securities Report Disclosure Committee meetings). In addition,
Mr. Hashimoto worked to enhance communication with each
department through meetings with executives in each depart-
ment. The information collected was shared with the Audit
Committee members in a timely manner.
The member of Audit Committee attended the Special Commit-
tee as an observer to oversee engagement with potential inves-
tors and sponsors and the fairness of consideration of strategic
alternatives.
Regarding events that have a major impact on business perfor-
mance during the period, particularly the appropriateness of
reserves for estimated losses was directly checked by the rele-
vant departments and explained by the Accounting Department
and the accounting auditor.
Based on the results of audits by group companies from the In-
ternal Audit Department, it was pointed out that organizational
initiatives for governance, risk management, and internal con-
trol at domestic and overseas Group companies should be con-
sidered on the executive side.
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 first trial judgment
was handed down in March 2023, and as a result from measures
to be taken the Audit Committee decided to be appeal in April
2023.
Through the whistleblowing system operated by the Audit Com-
mittee, the committee received 32 whistleblowing reports and
responded. The Audit Committee was briefed on details and
status of responses of all 198 reports to the whistleblowing con-
tact point on the Company’s executive side. The committee has
prioritized the reports related to accounting and compliance to
verify their investigation results and status of improvements. In
addition, the Audit Committee received a number of reports
concerning the past use of entertainment expenses spend by
Executive Officer, investigated them.
Through liaison meeting with Group company auditors, as well
as through education and the like, the Audit Committee worked
to improve audit quality of the Company and Group companies
by bolstering coordination with Group company’s auditors.
Regarding the evaluation of the effectiveness of the Board of Di-
rectors, which is one of the measures to prevent recurrence
based on the recommendations of the investigation report of
the Governance Enhancement Committee received in Novem-
ber 2021, the Audit Committee took the initiative to draft a basic
policy for such evaluation and selected a third-party evaluator.
Evaluation on effectiveness of the Board of Directors
Board overall review, Board structure, advance preparation, man-
agement, discussion, Nomination Committee, Compensation
Committee, Audit Committee, monitoring of management, risks,
tone at the top, self-evaluation, miscellaneous and degree of sig-
nificance of agenda items and volume of discussion. The individ-
ual interviews were conducted based on the answers thereto of
the respective Directors.
Board Advisors provided the summery of the FY2022 Review
as follows:
The Company’s Board of Directors is tackling the “Review of
Strategic Alternatives,” which the shareholders expected the
Board to deal with as the top priority challenge after the ordi-
nary shareholders meeting.
It was confirmed as a result of the FY2022 Review that the effec-
tiveness of the Company’s Board and three statutory commit-
tees is generally ensured.
Board Advisors reported that it was confirmed that the Com-
pany’s Board and three statutory committees have the following
characteristics.
(i) Sharing of the Board’s objectives: All Directors correctly un-
derstand that the “Review of Strategic Alternatives” is the
most significant responsibility of the Company’s Board at the
moment.
(ii) Appropriate Board structure: The Board structure is in line
with the expectation of the shareholders for the current
Board.
(iii) Enhancement of the discussion on the “Review of Strategic
Alternatives”: Detailed discussion on “Review of Strategic Al-
ternatives” is being conducted with utilization of outside advi-
sors and much time of the Board is spent on such review.
(iv) Smooth conduct of meetings by the Chairperson: The evalua-
tion of the conduct by the Chairperson of Board is mostly
high. He spends a significant amount of time to listen to all
Directors and conducts meetings while generating the sense
of acceptance.
(v) Audit Committee with a high level of commitment: The evalu-
ation of the activities of the Audit Committee is mostly high.
Under the Chairperson’s leadership, the committee energeti-
cally responds to various incidents while maintaining close
communication with the members with high levels of exper-
tise and management experiences.
Board Advisors reported that the Board is expected to exam-
ine the following challenges for further improvement of its effec-
tiveness and proposed the following possible directions for ac-
tion. In response, the Company will consider measures to further
improve the effectiveness of the Board of Directors, while also
considering the progress of the "Review of Strategic Alternatives."
(i) Strengthening of the relationship of trust between the moni-
toring and the management: Hold off-site meetings to deep-
en mutual understanding between the monitoring and the
management. / Clarify the information on the management
to be reported to the Board of Directors.
(ii) Enhancement of discussion on the mid- to long-term man-
agement strategy: Thoroughly manage the progress of the
mid- to long-term management plan. / Hold a board meeting
at least once every quarter with sufficient time secured for a
face-to-face meeting.
(iii) Promotion of board diversity: Explore the possibility of invit-
ing those having managed manufacturers and succeeded in
overall corporate reform and female Independent Outside Di-
rectors.
(iv) Strengthened management of the three statutory commit-
tees:
Nomination Committee: Enhance the discussion on the
challenge to promote board diversity.
Compensation Committee: Conduct deeper discussion on
the level of compensation for the Directors.
Audit Committee: Facilitate the strengthening of the inter-
nal control system for the management. / Enhance the com-
mittee’s monitoring of the management.
Compensation Policy
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 Execu-
tive Officer are paid only the compensation for Executive Offi-
cers and not paid compensation for Directors.
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.
These pages show information about FY2022 based on the information as of November 2023.
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
Toshiba Integrated Report 2023
67
68
Toshiba Integrated Report 2023
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]
Risk Management and Compliance Committee
* 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
*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).
sic policy to determine compensation for Executive Officers at an
adequate level to secure highly competent personnel and ensure
the effectiveness of their compensation package as an incentive
to improve business performance, based on a balance between
fixed compensation and performance-linked compensation.
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 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.
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.
At Toshiba Group, we formulated and are striving to entrench the Standards of Conduct for Toshiba Group (SOC) as a specific action
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.
Policy on Risk Management and Compliance
Toshiba Group maintains a policy of zero tolerance against fraud.
As a preventative activity, every year we systematically orga-
nize fraud risk scenarios in specific fields, conduct inspections to
understand the actual situation at each Group company, and
strengthen guidance for improvement. In FY2022, we conducted
inspections on fraud risk related to production management and
inventories.
In the event of a case of fraud, we conduct an investigation of
all facts to identify the cause of any such occurrences, treat the
facts seriously, make every effort to prevent recurrence, and dis-
close information in a proper and timely manner as necessary.
Any employees involved with cases of fraud are handled rigorous-
ly, including through the implementation of disciplinary action.
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.
Response to fraud
Whistleblower System
Structure of Risk Management and Compliance
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 relevant Executive Officers, including the President
and CEO. The committee analyzes whistleblower reports and cas-
es both inside and outside the Company and evaluates the im-
pacts 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 immediate fiscal year. The Risk Compliance Committee is
attended and monitored by members of the Audit Committee
who also serve as Outside Directors. The agenda deliberated at
the committee is reported to the Board of Directors. In FY2022,
the Risk Compliance Committee met five times.
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, from FY2021,
we evolved the system into one that encompasses accounting
compliance and other types of compliance, and began promot-
ing centralized management.
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, through the reporting system. Under these
systems, the relevant in-house committees, etc. promptly evalu-
ate 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 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
These pages show information about FY2022 based on the information as of November 2023.
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
Toshiba Integrated Report 2023
69
70
Toshiba Integrated Report 2023
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
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
*Diversity indicates diversity of gender, ethnicity, nationality, and other identities.
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 eleven (11) Directors, ten (10) are Outside Directors and one (1) is Director who also serves as Executive Officer. Outside
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 manage-
ment, 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
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
Toshiba's Whistleblower System
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.
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.
These pages show information about FY2022 based on the information as of November 2023.
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
Toshiba Integrated Report 2023
71
72
Toshiba Integrated Report 2023
Director
Outside Directors
Outside Directors
April
1990: Joined ShinMaywa Industries, Ltd.
September 1999: 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
September 2015: 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
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
May 2022 –
Present:
Chair of the Quantum STrategic Industry Alli-
ance for Revolution
June 2022 –
Present:
Director of the Company
October
1980: Joined Heiwa Audit Corporation
May
1982: Joined New York office of Peat Marwick Mitch-
ell & Co. (currently KPMG LLP)
July
1990: Audit Department Partner, New York office of
KPMG LLP
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 2022:
Founder, Representative Director and Partner,
GCA Corporation
August 2004 –
April 2011:
Outside Director, Chair of Audit Committee,
Acologix, Inc.
April 2005 –
March 2011:
Lecturer, Hitotsubashi University Graduate
School of Law (Law School)
April 2008 –
March 2013:
Visiting Professor, Chuo Graduate School of
Strategic Management (Business School)
November 2008 –
April 2015:
Outside Director, Chair of Audit Committee,
Ranbaxy Laboratories, Inc.
November 2011 –
October 2014:
Board of Trustee, International Valuation Stan-
dards Council
December 2015 –
Present:
Outside Director, Maruho Co., Ltd.
September 2016 –
May 2018:
Outside Director, FamilyMart UNY Holdings
Co., Ltd. (currently FamilyMart Co., Ltd.)
February 2021 –
August 2022:
Chairman, Managing Director, Chairman of
Asia Corporate Finance, Houlihan Lokey K.K.
June 2022 –
Present:
Outside Director of the Company
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
October 2013 –
May 2015:
Director (until May 2015) and Interim CEO (until
April 2015), Greenheart Group Limited
October 2013 –
February 2023:
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
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
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
ASEAN 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.
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)
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
2011: Senior Managing Executive Officer, Chief Group
Strategy Officer; Chief Executive Officer of
Group IT and Digital Business, Aeon Co., Ltd.
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 –
December 2022:
Senior Advisor, Japan Computer Vision Corpo-
ration
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)
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 –
November 2022:
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 2022 –
Present:
Director, Grindr Inc.
Taro SHIMADA
Director
October 22, 1966
Ayako Hirota WEISSMAN
Outside Director
May 9, 1957
Jerome Thomas BLACK
Outside Director
May 29, 1959
George Raymond ZAGE III
Outside Director
January 20, 1970
Akihiro WATANABE
Outside Director
February 18, 1959
Paul J. BROUGH
Outside Director
November 13, 1956
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
These pages show information about FY2022 based on the information as of November 2023.
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
Toshiba Integrated Report 2023
73
74
Toshiba Integrated Report 2023
Representative Executive Officer
President and CEO
Taro SHIMADA
Representative Executive Officers
Corporate Executive Vice Presidents
Takayuki KONNO
General Executive, Marketing Div., Battery Div. and Branch Offices, Responsible for Infrastructure Systems
business (Representative Director, 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)
Hiroyuki SATO
General Executive, Group Management Div., Responsible for Electronic Devices & Storage business
(Representative Director, President and CEO, Toshiba Electronic Devices & Storage Corporation)
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
Senior Vice President; SATA (Corporate Manufacturing Engineering Center)
Shunsuke OKADA
General Executive, Cyber-Physical Systems x Design Div. and Digital Innovation Technology Center,
Assistant to Corporate Senior Vice President; HARUYAMA (Next Business Development Div.), Vice
President, Cyber-Physical Systems x Design Div., Responsible for Digital Solutions business (Director,
President and CEO, Toshiba Digital Solutions Corporation)
Takamasa MIHARA
General Executive, Human Resources and Administration Div. and Corporate Communications Div.
Tadasu YOTSUYANAGI
General Executive, Negative Emission Project Team, Sustainability Management Div. and WEC Div.,
Responsible for Energy System business (Representative Director, President and CEO, Toshiba Energy
Systems & Solutions Corporation / Toshiba Plant Systems & Services Corporation)
Yutaka SATA
General Executive, Corporate Technology Planning Div., Research & Development Center, and Corporate
Manufacturing Engineering Center, Assistant to Corporate Senior Vice President; HARUYAMA (Next
Business Development Div.) and Assistant to Corporate Senior Vice President; OKADA (Digital Innovation
Technology Center)
Masaki HARUYAMA
General Executive, Strategic Planning Div. and Next Business Development Div., Assistant to Corporate
Executive Vice President; SATO (Group Management Div.)
Executive Officer
Corporate Vice President and CFO
Yasuhiro MATSUNAGA
General Executive, Finance & Cash Management Div. and Accounting Div. Vice President, Finance & Cash
Management Div.
Executive Officers
Corporate Vice Presidents
Ayumi WADA
General Executive, Legal & Compliance Div.
Yuko HIRAI
General Executive, Internal Audit Div. Vice President, Audit Committee Office
Toru MASUYAMA
General Executive, Project Monitoring & Oversight Div. and Quality Promotion Div. Vice President, Project
Monitoring & Oversight Div.
Tomoaki KUMAGAI
General Executive, Global Strategy & Business Development and Global Strategy & Business
Development Div. Vice President, Global Strategy & Business Development Div.
Executive Officers
As of October 1, 2023
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.
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.
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
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.
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
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
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)
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
October 2020 –
Present:
Professor, Graduate School of Business Admin-
istration, Tokyo Metropolitan University
June 2021 –
Present:
Outside Director of the Company
Outside Directors
Outside Director
Katsunori HASHIMOTO
Outside Director
September 16, 1955
Nabeel BHANJI
Outside Director
December 19, 1985
Mikio MOCHIZUKI
Outside Director
July 8, 1954
Ayumi UZAWA
Outside Director
June 21, 1967
Eijiro IMAI
Outside Director
July 2, 1980
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
Career highlights and significant concurrent positions
These pages show information about FY2022 based on the information as of November 2023.
Businesses
Data Section
Business Results
Strategies
Sustainability
Sustainability
Toshiba Integrated Report 2023
75
76
Toshiba Integrated Report 2023
Topic
Accounting Metric
Category
Unit of Measure
Code
Disclosure
Reference
Energy Management
(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable
Quantitative
Gigajoules (GJ),
Percentage (%)
RT-EE-130a.1
(1) 19,718,000 GJ
(2) 84%
(3) 9.1%
Overview of Environmental Impacts
Response to Climate Change in Business Activities
Hazardous Waste
Management
Amount of hazardous waste generated, percentage
recycled
Quantitative
Metric tons (t),
Percentage (%)
RT-EE-150a.1
Total amount of hazardous waste: 3,100 t
Percentage recycled: 83%
Percentage incinerated: 10%
Overview of Environmental Impacts
Reduction of Waste Volume in Business Activities
Number and aggregate quantity of reportable spills,
quantity recovered
Quantitative
Number,
Kilograms (kg)
RT-EE-150a.2
Number of substances: 25
Amount of chemical substances released: 744,052 kg
No reportable chemical substances were released into the soil
Product Safety
Number of recalls issued, total units recalled
Quantitative
Number
RT-EE-250a.1
Number of recalls started from FY2022: 1 voluntary recalls
Number of units recalled: 191
Disclosure of Product Safety and Quality Information
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
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
Percentage of eligible products, by revenue, that meet
ENERGY STAR® criteria
Quantitative
Percentage (%) by
revenue
RT-EE-410a.2
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.
Revenue from renewable energy-related and energy
efficiency-related products
Quantitative
Reporting currency
RT-EE-410a.3
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.
Materials Sourcing
Description of the management of risks associated with
the use of critical materials
Discussion
and Analysis
n/a
RT-EE-440a.1
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)
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
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
Total amount of monetary losses as a result of legal
proceedings associated with bribery or corruption
Quantitative
Reporting currency
RT-EE-510a.2
0 yen
Total amount of monetary losses as a result of legal
proceedings associated with anti-competitive behavior
regulations
Quantitative
Reporting currency
RT-EE-510a.3
0 yen
*1
*2
*3
*4
*5
*5
Activity Metric
Category
Unit of Measure
Code
Disclosure
Reference
Number of units produced by product category
Quantitative
Number
RT-EE-000.A
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
Number of employees
Quantitative
Number
RT-EE-000.B
106,648
Corporate Data
*6
*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
*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, 2023
SASB Reference Table
Sustainability
Businesses
Business Results
Strategies
Data Section
Data Section
Toshiba Integrated Report 2023
77
78
Toshiba Integrated Report 2023
(Yen)
150
200
100
50
(Millions of shares)
2,000
4,000
6,000
2018
2019
2020
2021
2022
2023
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
0
0
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
2.8
25.8
1.6
52.9
16.9
2022/3
6.8
23.9
1.7
49.5
18.1
2023/3
Overseas entities and others
49.5%
Individuals
and others
18.1%
Financial
institutions
23.9%
Securities
companies
6.8%
Other entities
1.7%
0
Stock Information
Shareholder Information
2019/3
2020/3
2021/3
2022/3
2023/3
Common stock price
(Yen, fiscal year)
High
3,980
4,030
4,010
5,245
5,938
Low
2,842
1,982
2,301
3,825
4,023
Nikkei average
(Yen)
21,205.81
18,917.01
29,178.80
27,821.43
28,041.48
Number of shares issued
(Millions of shares)
544
455
455
433
433
Market capitalization
(Billions of yen)
1,917.6
1,082.9
1,702.7
2,014.1
1,925.3
Earnings (Loss) per share attributable to
shareholders of the Company
(Yen)
1,641.85
(236.39
251.25
442.05
292.56
Annual dividends per share
(Yen)
30
20
80
220
220
Payout ratio
(%) (Consolidated)
1.83
—
31.8
49.8
75.2
Number of shareholders
270,570
269,067
270,598
228,187
228,229
Price-to-earnings ratio (PER)
(Times)
2.15
—
14.89
10.52
15.19
Price-to-cash flows ratio (PCFR)
(Times)
2.0
(3.3
8.5
7.3
8.7
Price-to-book value ratio (PBR)
(Times)
1.3
1.1
1.5
1.7
1.5
*1
*2
)
)
FY2018*
High
¥3,980
Low
¥2,842
FY2019*
High
¥4,030
Low
¥1,982
FY2020*
High
¥4,010
Low
¥2,301
FY2021*
High
¥5,245
Low
¥3,825
FY2022*
High
¥5,938
Low
¥4,023
Stock Price and Trading Volume Trends (for past 5 fiscal years)
* The Company implemented a share consolidation with a ratio of 10 common shares to 1 share as of October 1, 2018.
*1 Common stock price from August 1, 2017 until January 28, 2021 is based on the 2nd section of the Tokyo Stock Exchange, and from January 29, 2021 until April 3, 2022 on the 1st section of the Tokyo
Stock Exchange. Also from April 4, 2022 onward is based on the Prime Market of the Tokyo Stock Exchange.
*2 Market capitalization = Common stock price [year-end/yen/close] x Total issued shares
* 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, 2018.
2018/3
2019/3
2020/3
2021/3
2022/3
2023/3
Individuals and others
15.9 %
16.8 %
20.2 %
20.5 %
16.9 %
18.1 %
Overseas entities and others
72.3
69.8
62.7
50.5
52.9
49.5
Other entities
1.5
1.7
1.8
1.8
1.6
1.7
Securities companies
1.1
1.6
1.9
3.1
2.8
6.8
Financial institutions
9.2
10.1
13.4
24.1
25.8
23.9
Name of Shareholder
Shareholding ratio
(percentage)
The Master Trust Bank of Japan, Ltd. (Trust Account)
11.1 %
SUNTERA (CAYMAN) LIMITED AS TRUSTEE OF ECM MASTER FUND
4.6
CHINOOK HOLDINGS LTD
3.6
Custody Bank of Japan, Ltd. (Trust Account)
3.0
BCSL CLIENT RE BBPLC NYBR
2.9
Nippon Life Insurance Company
2.6
GOLDMAN SACHS INTERNATIONAL
2.5
Toshiba Employees Shareholding Association
2.2
GOLDMAN, SACHS & CO. REG
1.9
CGMI PB CUSTOMER ACCOUNT
1.8
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 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.
4. The change report on large-volume holdings offered for public inspection on June 2, 2022 notes that, as of May 26, 2022, Farallon Capital Management L.L.C. and CHINOOK HOLDINGS LTD jointly held
22,960K shares (ratio of stock certificates, etc. held: 5.30%). As the Company cannot confirm the beneficial ownership or number of shares held by Farallon Capital Management L.L.C. and CHINOOK HOLD-
INGS LTD as of the end of the fiscal year under review, Farallon Capital Management L.L.C. is not included in the above table and data for CHINOOK HOLDINGS LTD stated in the above table is based on the
details of the shareholder registry.
5. The change report on large-volume holdigns offered for public inspection on March 29, 2023 notes that 3D Investment Partners Pte. Ltd. held 21,233K shares as of March 22, 2023 (ratio of stock certificates,
etc. held: 4,90%). 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, 3D Investment Partners Pte. Ltd. is not
included in the above table.
Distribution of Shareholder
(As of March 31 of each year)
Principal Shareholders
(As of March 31, 2023)
Sustainability
Businesses
Business Results
Strategies
Data Section
Data Section
Toshiba Integrated Report 2023
79
80
Toshiba Integrated Report 2023
Corporate History
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 Denzai Marketing Co.,Ltd.
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 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.
MTJV (Thailand) Co., Ltd.
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
88 companies in total including the 21 above
* Listed Company in stock market
165 companies in total including the 30 above
47 companies in total including the 7 above
83 companies in total including the 11 above
Consolidated Subsidiaries
(As of March 31, 2023)
Affiliated Companies Accounted for by the Equity Method
(As of March 31, 2023)
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.”
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 a Nomination 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.
Oct.
2009
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 FCNT LLC.).
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 (now Japan Investment Corporetion), 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).
Mar.
2016
Sold off all shares of Toshiba Medical Systems Corporation (now Canon Medical Systems Coporation).
June
Sold off 80.1% shares of Toshiba Lifestyle Products & Services Corporation.
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. (now 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. (now 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 (now TVS REGZA Corporetion) 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.
(Transferred 19.9% shares of Dynabook Inc. to Sharp Coporation in August 2020)
Aug.
2022
Transferred 55% of the outstanding shares of Toshiba Carrier Corporation to Global Comfort Solutions LLC.
Sustainability
Businesses
Business Results
Strategies
Data Section
Data Section
Toshiba Integrated Report 2023
81
82
Toshiba Integrated Report 2023
Toshiba Corporation
1-1, Shibaura 1-chome, Minato-ku, Tokyo, Japan (headquarters)
Founded
July 1875
Number of Employees
Approx. 107,000 (consolidated)
Fiscal Year
April 1 to March 31
Authorized Number of Shares
1 billion
Number of Shares Issued
433,137,955
Number of Shareholders
185,721
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, 2023)
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, 2022 to March 31, 2023, including some information after April 2023.
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
Sustainability
Businesses
Business Results
Strategies
Data Section
Data Section
Toshiba Integrated Report 2023
83
84
Toshiba Integrated Report 2023
Issued in January 2024. Translated from the original Japanese edition of November 2023.
Investor Relations Group
Corporate Strategy Office
Strategic Planning Division