Investor Information

Mid-term Business Plan

Stock ticker code: 6104

We provide the outline of a new medium-termmanagement plan of the Group called the "TM-PΣ Plan ((Toshiba (Machine (Profit Sigma Plan)" that has been launched on April 1, 2016 as follows:

Basic policies of TM-PΣ Plan

For the "TM-PΣ Plan," two basic policies of "implementing reforms tocreate a high-profit system" and "focusing resources on carefullyselected areas" were newly added while taking over the existing concept,"cutting-edge and augmentation" of the previous medium-termmanagement plan.

* With "P," meaning"Power" and "Profit" and "Σ," meaning "summation," the concept of "TM-PΣ Plan" is that all members of the Toshiba Group should sharethe mind to create things together in order to realize expansion of total sumof profits by the total sum of power of the entire Group.

TM-PΣ Plan Structure

The TM-PΣ Plan aims to achieve "solid and profitable growth" inaccordance with the basic policies to "implement reforms to create ahigh-profit system" and "focus resources on carefully selectedareas."

We will realize the basic policies byimplementing the following measures:
(1)Provide cutting-edge andaugmented products
The Companydevelops optimal products tailored to the needs of customers in regions allover the world. We provide products equipped with functions that othercompanies cannot imitate to markets for the industry's most cutting-edgetechnology. At the same time, we focus on providing the products with functionsand pricing that best match the customer's needs in markets for productsoffering cost performance.
Moreover, weincorporate pre- and post-processes as a system for products that come equippedas standard technology and propose automation and labor conservation measureson the manufacturing line.
‚(2)Develop products tailored tomarkets
In the globalmarket, the Company will further popularize its brand by concentrating itsmanagement resources in regions and markets in which many customers require theGroup's products.
ƒ(3)Establishment ofglobalization
We view ourfactory in Japanas the mother factory, and seek profit by specializing in manufacturing inareas with high added value and by improving manufacturing technology andmanufacturing efficiency. At the same time, we operate a "globalprocurement network" linking together Japan, China, Thailand, and India, and by managing overallprocurement information in an integrated manner. We have created a system thatis resilient to political, economic, and natural disaster risks, and produceproducts that are cost competitive as we expand production scale and pursuehigh production efficiency.

TM-PΣ Plan Structure

Reform to create a high-profit system

The Company will implement the reform tocreate a high-profit system by reducing total cost to secure profits amid theuncertainty of future prospect in drastically changing market environment.
Specifically, we will fulfill the followingthree measures:
(1)Take further steps of theproduction innovation project in which we have been working on realizing ashorter lead time in order to achieve cost reduction.
‚(2)Establish an optimumprocurement network by capitalizing on overseas production bases with the aimof achieving company-wide procurement cost reduction.
ƒ(3)Enhance management efficiencyby pursuing optimum operation of all the production bases and concentratingresources on strong markets.

Reform to create a high-profit system

Focusing resources on carefully selected areas

Each division of the Company engages indevelopment of products that are tied with keywords: "Energy and environment,""Improvement of labor productivity," "IoT (note 1)/ICT (note2)," and "Keep up with new materials."

For the focus of effort and the businessarea of each division, refer to the figure below.

We will continue to grow as a comprehensivemachine manufacture through always offering appealing products in our corebusiness areas.

Note 1: IoTstands for Internet of Things.
Note 2: ICTstands for Information and Communication Technology.

Focusing resources on carefully selected areas

TM-PΣ Plan Sales and profit budget

By implementing the measures describedabove, the Company plans to achieve consolidated sales or 140 billion yen, ROS(return on sales) of 6.5% or higher, and ROE (return on equity) of 6% or higherin fiscal 2018, the last year of the medium-term management plan.

TM-PΣ Plan  Sales and profit budget