Toshiba

By
Lenan Ye(Nancy)
Yafang Xiong(Dori)
Pam Berwick
Ryan Binstock
 Toshiba
 Introduction - Pam
 History - Dori
 Industry Financials - Ryan
 Product - Nancy
 Globalization – Nancy and Dori
 SWOT - Pam
 Recommendations – Ryan
 Conclusion
 History
Tanaka seizo-sho(1875) Hankune-sha(1890)
↓ ↓
Shibarura engineering works Tokyo electriccompany(1899)
co.ltd(1904)

↓
Tokyo Shibarura electric co. ltd (Toshiba) 1939
 Experienced several times change in the
process of development
 70’s—
 did a series of reform ,
 set up overseas factories

 a adjusted its principle of computer

 1978, the common name “Toshiba” was
set up officially
80’s—
 expanded the business ,
 developed from the heavy electronic firm
to a company contained
telecommunications, electric.
 From 1982, company began to strengthen
the business of semiconductor, and let it
become the central operation of the firm.
90’s— now
 focus on digital digital, mobile technology
field gradually,

 Till 2000, the sale of plasma has already

become the second largest in the world,
and the products of IT occupied 74% of all.
2005 Toshiba Financials
Return on Sales – 0.6%
Return on Assets – 1.8%
Return on Equity – 5.7%

Industry represents the electrical

computer industry
 Return on Assets
CHART 1:

Chart 1: Represents Toshiba’s total assets along with its return on

those assets. The industry average for return on assets in 2005
was 1.8%. Toshiba’s return on assets in 2005 was 1.0%.
 Return on Equity
CHART 2:

Chart 2: Represents Toshiba’s total stockholder equity along with its

return on that equity. The industry average for return on equity in 2005
was 5.7%. Toshiba’s return on equity in 2005 was 5.64%.
 TOSHIBA
ANNUAL INCOME STATEMENT

2006 2005 2004

Cost of Goods Sold $ 39,949.50 $ 38,577.10

Gross Profit $ 14,314.90 $ 14,238.50

Gross Profit Margin 26.40% 27.00%

SG&A Expense $ 128,755.00 $ 125,858.00

Operating Income $ 1,439.40 $ 1,652.60

Operating Margin 2.70% 3.10%

Non-operating Income $ 639.00 $ 935.80

Income Before Taxes $ 1,028.10 $ 1,373.00

Net Income $ 664.90 $ 428.10 $ 272.90
Gross Revenue $ 53,945.20 $ 54,264.40 $ 52,815.60
 T OSHIBA
ANNUAL BALANCE SHEET

2006 2005 2004

Assets
Current Assets
Cash $ 2,742.90 $ 3,022.30
Accounts Receivable $ 10,422.10 $ 9,971.80
Inventory $ 6,043.70 $ 5,954.50
Other Current Assets $ 3,797.50 $ 3,319.40
T otal Current Assets $ 23,006.20 $ 22,268.00
Fixed Assets $ 10,824.60 $ 10,585.30
Other Fixed Assets $ 8,674.20 $ 9,385.90
T otal Fixed Assets $ 19,498.80 $ 19,971.20
T otal Assets $ 40,199.40 $ 42,505.00 $ 42,239.20

Current Liabilities
Accounts Payable $ 9,052.00 $ 8,305.70
Short T erm Debt $ 3,980.00 $ 4,510.10
Other Current Liabilities $ 8,045.10 $ 8,005.90
T otal Current Liabilities $ 21,077.10 $ 20,821.70

Long T erm Debt $ 6,354.20 $ 7,290.90

Other Long T erm Debt $ 6,145.60 $ 5,694.40
T otal Long T erm Debt $ 12,499.80 $ 12,985.30
T otal Liabilities $ 33,576.90 $ 33,807.00
Stockholder Equity
Common Stock $ 7,582.60 $ 7,146.70
T otal Stockholders equity $ 8,928.10 $ 8,432.20
T otal Liabilities and Stockholders
Equity $ 42,505.00 $ 42,239.20
 Product
 Digital Product
 Electronic Device Product
 Social Infrastructure
 Digital Product
 Personal Computers
Portege Tablet
Satellite Notebook
 Consumer Electronics
 Telecommunications
(Leader)
 Electronic Device
 Semiconductor
Chips (4th)
 Liquid Crystal Display
Regza LCD
Slim design
Build-in DVD player
Combined cable
 Social Infrastructure
 Power equipment
 Elevator
 Medical System
 Globalization
 Global Distribution
Avnet Inc. (North America, Europe, Asia)
--2001
ASBIS (Europe, Africa, Middle East)
--Eastern Europe
 Global Market
U.S. Market
The largest oversea market
Chinese Market
The second largest oversea market
 The Problems in Going Global
The Bug incident in Chinese Market
The Attitudes in different markets
 SWOT
Strengths
 Leading market position

 Broad product portfolio

 Strong Brand Equity

 Weaknesses
 Weak operating performance

 Low returns
 Opportunities
 Development of nuclear power

 Growing semiconductor market

 Increasing demand for LCDs

 Threats
 Increase competition

 Increasing copper prices

 Stalling of Japanese economic recovery

 Law suits
 Recommendations
 Invest money on R&D and develop
advance technology
 Add advertise to promote sales
 Merge with small companies ro expand its
business diversity
 Uniform the warranty policy for the global
market
 Any
Questions?