[Company analysis] Toshiba Corporation (東芝)

「Toshiba Corporation (東芝)」was famous Japanese manufacturer for its home appliances such as refrigerators, washing machines, and vacuum cleaners. In addition, This company had a great influence in the field of electronics, for example, one of their product "Notebook", even became a common noun meaning Laptop Computer. However, according to the poor performance,「Toshiba」retreated from almost home appliances business, and become a B2B company that is engaged in electronic parts and energy related infrastructure business. The number of consolidated employees is approximately 129,629.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Toshiba Corporation
Company name (Japanese)	東芝
Date of establishment	Saturday, June 25, 1904
Headquarters location	〒105-8001 東京都港区芝浦一丁目1番1号
Capital	200,044
Consolidated sales	3,693,539
Consolidated operating profit	35,447
Consolidated total assets	4,297,344
Consolidated capital	1,699,045
Capital adequacy ratio	39.5%
Consolidated number of employees	129,629

 

 

 

2. Summary and Features

 
「Tanaka Factory(田中製作所)」was founded in 1875 by Tanaka Hisashige(田中久重), who invented the Karakuri doll and the Perpetual clock, is the beginning of「Toshiba」. This「Tanaka Factory」was the first telegraph equipment supplier in Japan, and they changed its name to「Shibaura Factory(芝浦製作所)」in 1893. After the merger with 「Tokyo Electric(東京電機)」, the company name changed into「Tokyo Shibaura Electric(東京芝浦電気)」, and at last it became the current name「Toshiba」in 1985.

「Toshiba」released light bulbs, hydroelectric generators, CRT TVs, electric washing machines, electric refrigerators, vacuum cleaners for the first time in Japan. In addition, by utilizing the technology through the electronics, they initiated various power generation facilities and social infrastructure equipment business as well. Most of all,「Toshiba」is considered as a pioneer of Japanese semiconductor industry. 

In this way,「Toshiba」had a very wide range of business fields, but it closed the businesses for general consumers, due to the accounting fraud in 2015. In particular, the home appliance business was purchased by 「Midea」in China. Even though they continue the home appliance business under the name「Toshiba Lifestyle(東芝ライフスタイル)」, however there is no connection with current「Toshiba」anymore. 

In addition, the PC business was purchased by「Sharp Corporation」, the medium-sized IGBT in the semiconductor business was purchased by「Mitsubishi Electric Corporation」, and the sensor semiconductor business was purchased by「Sony Corporation」. And the memory semiconductor-related business was spun off into「Kioxia」 along with the equity investment of「Pangea」, which is composed of「SK Hynix」,「Bain Capital」, 「Seagate」and etc. As a result,「Toshiba」has transformed into an infrastructure company centered on B2B transactions in the heavy industry, power semiconductors, nuclear reactors, heavy electrical machinery, and military equipment.

At present,「Toshiba」tends to regard stability as the most important thing. Recently, they had obtained around 1 trillion yen in cash by spin-off of「Toshiba Memory」. And they decided to spend 700 billion yen to buy back their stock share, raising the equity ratio from 22.6% to 39.5%.

 

 

 

3. Major Business

 

■ Toshiba Energy Systems
Nuclear power generation system, thermal power generation system, hydroelectric power generation system, solar power generation system,

■ Toshiba Infrastructure Systems
Water and sewage system, broadcasting system, elevator, escalator, air conditioning equipment, measurement control system

■ Toshiba equipment storage
Small signal power semiconductor, LSI logic, mixed signal IC, image sensor, NAND flash memory

■ Toshiba Digital Solutions
IT solution service

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		4,043,736	3,947,596	3,693,539
Consolidated operating profit		82,015	64,070	35,447
Consolidated total assets		4,269,513	4,458,211	4,297,344
Consolidated net assets		-275,704	1,010,734	1,699,045
Breakdown of sales	Energy system business	974,913	844,706	652,718
	Infra system business	1,262,412	1,246,776	1,291,931
	Retail & Printing business	507,694	522,762	485,396
	Storage & Device	837,136	879,602	900,942
	Industrial ICT	239,618	258,870	253,059
	Others	535,507	525,654	420,371
	Adjustments	-313,544	-330,774	-310,878