Toshiba Company Profile

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Company Profile

by Faulkner Staff

Docid: 00014645

Publication Date: 2202

Report Type: VENDOR


Toshiba is a diversified, multinational engineering and electronics
conglomerate that is headquartered in Tokyo and has more than 117,300 employees
(2021) worldwide. The company – which continues to tweak its operations
following a 2015 financial improprieties scandal – currently focuses
on six business domains: Energy Systems & Solutions, Infrastructure Systems &
Solutions, Building Solutions, Retail Printing Solutions, Electronic Devices &
Storage Solutions, Digital Solutions, and Battery Business. However, in February
2022, it was announced that the company would split into two separate units by
the second half of fiscal 2023: one focused on infrastructure and managing the
company’s other assets, while the other will be responsible for electronic devices. This report looks at Toshiba’s operations in greater detail.

Report Contents:

Fast Facts

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Name: Toshiba Corporation
1-1, Shibaura 1-chome
Minato-ku Tokyo 105-8001 Japan

Phone: +81-3-3457-4511
Fax: +81-3-3456-1631

Type of Vendor: Manufacturer of Engineering and Electronics
Technology, including PCs and
Founded: 1875
Service Areas: Global


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Toshiba is a diversified, multinational engineering and electronics conglomerate
that is headquartered in Tokyo and has more than
employees worldwide as of March 2021. The company offers products and services covering
IT, communications equipment and systems, electronic components and materials,
power systems, industrial and social infrastructure systems, consumer
electronics, household appliances, office equipment,
lighting, and logistics. Toshiba’s operates
businesses in the Americas, Europe, the Middle East, Africa, and Asia Pacific,
including hundreds of consolidated subsidiaries and affiliated companies. Among
Toshiba’s business domains are shown in Table 1.

Toshiba’s strategies by business domains are listed
in Table 1.

Table 1. Business Domains
Segment Coverage
Energy Systems & Solutions Large-scale power-generation systems for nuclear and thermal power, as
well as renewable energy generation systems for hydro, geothermal,
solar, and wind power
Infrastructure Systems & Solutions Public sector products and services for maintaining infrastructure of
essential utilities, as well as IoT (Internet of Things) and AI
(artificial intelligence)
Building Solutions Elevators and escalators for buildings, as well as facilities,
ventilation, and lighting
Retail & Printing Solutions Automotive and industrial semiconductors, large-capacity HDDs (hard disk
drives) for data centers, semiconductor manufacturing equipment, and
materials and devices
Electronic Devices & Storage Solutions Automotive and industrial semiconductors, large-capacity HDDs (hard disk
drives) for data centers, semiconductor manufacturing equipment, and
materials and devices
Digital Solutions Digital solutions utilizing IoT and AI
Battery Business SCiB rechargeable lithium-ion batteries

History & Milestone Events

Major events in Toshiba’s history include:

  • 1875 – Is established as Tanaka Seizo-sho (Tanaka
    Engineering Works), by Hisashige Tanaka. Later named Shibaura Seisaku-sho (Shibaura Engineering Works),
    it transforms itself
    into a top manufacturer of heavy electrical equipment in Japan.
  • 1890 – Witnesses the launch of Hakunetsu-sha & Co.,
    later coined Tokyo Denki (Tokyo Electric).
  • 1939 – Announces an official merger between
    Shibaura Engineering Works and Tokyo Electric, forming Tokyo
    Shibaura Electric.
  • 1978 – Renames itself Toshiba.
  • 2001 – Announces a restructuring agenda that
    includes plans to reduce staff, shift manufacturing to overseas
    plants, and withdraw from unprofitable businesses … Stops selling desktop PCs in the US.
  • 2003 – Releases a business plan for 2003-2006
    that outlines several possible spinoffs, such as the Home Appliances
    Division, Display Devices and Components, e-Solutions, and Medical
  • 2004 – Helps establish the Multimedia over Coax
    Alliance (MoCA) to promote technology that allows cable connections to link to a household appliance from a
    single network, whether TV, video recorder, or PC.
  • 2006 – Pays $288 million to
    Micron Technology for
    access to assorted patents related to NAND Flash technology.
  • 2007 – Establishes the Hybrid Storage
    alongside Fujitsu, Hitachi, Samsung, and Seagate.
  • 2009 – Incorporates Fujitsu’s hard drive operations into its own
  • 2010 – Forms an alliance with Nantong Fujitsu Microelectronics
    to create Wuxi Tongzhi Microelectronics, which provides
    system LSI assembly and testing services … Sells the majority stake in its
    handset business to Fujitsu.
  • 2011 – Increases its ownership in Westinghouse Electric to
    87% …
    Acquires Landis+Gyr, a company that specializes in energy management
    applications for utilities; a 75% equity stake in TopRank; and a 67% equity stake in Ansaldo Trasmissione &
    Distribuzione … Announces plans to acquire Vital Images
    for $273 million.
  • 2012 – Acquires IBM’s Retail Store Point-of-Sale Solutions
    Business, as well as part of Western Digital’s 3.5″ HDD business.
  • 2013 – Purchases cyberGRID,
    an Austrian developer of intelligent energy management solutions.
  • 2014 – With Samsung, enters
    into an
    agreement to transfer its joint optical disk drive business to OPTIS, a
    manufacturing partner.
  • 2015 – Announces the resignation
    of President and CEO Hisao Tanaka as well as several other top executives amidst news that the company would
    have to restate more than JPY200 billion due to accounting improprieties.
    Tanaka is replaced by Masashi Muromachi.
  • 2016 – Via Toshiba America Energy Systems, appoints
    Lisa Vaughn as General Counsel and Corporate Secretary.
  • 2017 – Begins collaborating with RIKEN to promote
    AI (artificial intelligence)-related technology … Enters into legal
    settlement with Western Digital that includes plans to jointly
    participate in "future rounds of investment in Fab 6" … Reaches an
    agreement with Dell to collaborate on AI (artificial intelligence)
    technology services for "mission-critical" customer use.
  • 2018 – Closes its transaction agreement to sell Toshiba
    Memory Corporation (TMC) to a consortium led by Bain Capital and
    including Apple and Dell … Sells its Westinghouse Group affiliated
    companies … Appoints Hiroshi Yamamoto as its first Corporate
    Digitization CTO … Sees Executive Officer Yasuo Naruke resign from his
    post …. Announces its new "Toshiba Next Plan" five-year transformation
  • 2019 – Sells Toshiba LNG (Liquified Natural Gas) to Total Gas
    & Power Asia … Renames Toshiba America Client Solutions as "Dynabook
  • 2020 – Begins negotiating sale of Japan Semiconductor’s Iwate
    and Oita operations to United Microelectronics … Introduces a System
    Integration business to provide quantum key distribution platform and
    commerce-deployment technology … Announces plans to withdraw from the
    system LSI business … Sells its 19.9 percent stake in Dynabook to
    Sharp … Sees principal investor Effisimo Capital Management reduce its
    company sharehold … Appoints Osamu Nagayama as Chairman, replacing
    Yoshimitsu Kobayashi … Establishes a wholly-owned subsidiary, Toshiba
    T1 Projects, for developing next-gen core systems … Signs a
    share-purchase agreement to transfer its 66.6 percent stake in Toshiba
    Logistics to SBSHD.
  • 2021 – Is reinstated on the Tokyo and Nagoya Stock Exchanges.
    In November, announced its intention to separate into three standalone companies:
    Infrastructure Service Co., consisting of Toshiba’s Energy Systems & Solutions,
    Infrastructure Systems & Solutions, Building Solutions, Digital Solutions and Battery
    businesses; Device Co., comprising Toshiba’s Electronic Devices & Storage Solutions
    business; and Toshiba, a holding company for its shares in Kioxia Holdings Corporation
    and Toshiba Tec Corporation.
  • 2022 – In February, the company revised its reorganization plan and
    revealed it now plans to split into two companies rather than three;
    while official names were not initially revealed, a Toshiba/Infrastructure
    Service Co. would include the Energy Systems & Solutions, Infrastructure
    Systems & Solutions, Digital Solutions, and Battery businesses in
    addition to Toshiba’s ownership stake in Kioxia Holdings Corporation;
    and a Device Co. would be comprised of the Electronic Devices & Storage Solutions


In 2015, Toshiba uncovered several instances of accounting misstatements
and, according to Reuters1, "channel stuffing," which is the practice
of selling "at the end of the quarter … a high volume of parts to contract
manufacturers at significant mark up to the price the division had paid for
them." Ultimately, Toshiba would restate profits to the tune of more than JPY200
billion, as detailed in Table 2.

2. Restated Profits
Period Original Profit (Loss)* Restated Profit (Loss)*
Total 583 370
Fiscal 2014
135 190

Fiscal 2013

181 180

Fiscal 2012

160 80

Fiscal 2011

145 60

Fiscal 2010

195 210

Fiscal 2009

27 (10)

Fiscal 2008

(260) (340)

* Billions JPY

Following this scandal, in late 2018 the company introduced its revamped "Toshiba Next" strategy,
which focused on enhancing shareholder value by maximizing its own enterprise
value and enhancing investor return. Key tenets of this plan included:

  • Investments in growth – Via managing its business portfolio,
    developing new businesses, and enhancing investment for organic growth.
  • Manage risk – Maintaining effective internal controls, avoiding
    excessive risk, and sustaining longterm corporate activities.
  • Improve core earnings – Strengthening earning power and changing
    profit structure.

Figure 1 explores the short- and long-term aims of this plan.

Figure 1. Business Plan

Figure 1. Business Plan

Source: Toshiba

Figure 2 details the company’s long-term sustainable development goal

Figure 2. Sustainable Development Goals

Figure 2. Sustainable Development Goals

Source: Toshiba

While Toshiba attempted to bounce back from the financial improprieties with a new strategy, misfortunes continued to plague the company. Chief among these
was the 2018 bankruptcy and ultimate sale of its Westinghouse division. An
early pioneer in electrical product development, Westinghouse was a leader in nuclear power
technology under Toshiba but suffered $9 billion in losses from nuclear reactor construction projects. The resulting sale of Westinghouse led to angry shareholders
and the company’s attempts to address their concerns. In November 2021, an impending split into three standalone companies was announced:
an Infrastructure Service Co.
would consist of Toshiba’s Energy Systems & Solutions, Infrastructure Systems & Solutions, Building Solutions, Digital Solutions, and Battery businesses;
a Device
Co. would be composed of Toshiba’s Electronic Devices & Storage Solutions business; and the third, retaining the Toshiba name, would hold shares in Kioxia Holdings
Corporation and Toshiba Tec Corporation. Still facing shareholder ire, however, these plans were revamped in February 2022. The new structure would combine the
Infrastructure Service Co. and the Toshiba holdings firm into one entity called Toshiba/Infrastructure Service Co.
with the Device Co. remaining essentially unchanged.
In addition, the company made additional moves such as putting its elevator and lighting businesses up for sale, announcing it will sell almost all of its 60 percent
stake in its air conditioning unit to its US joint venture partner Carrier Global Corp. for $870 million, and revealed that it no longer sees Toshiba Tec Corp.,
which makes point-of-sale systems and copiers, as a core business.2


Despite the financial improprieties and shareholder concerns, among
consumers Toshiba maintains a
strong brand reputation. The company is a diverse worldwide manufacturer and marketer of advanced electronic and electrical
products, with a prominent R&D presence in Japan. Also, Toshiba’s assets are based on a
number of business fields and approaches, thus allowing it to achieve growth through creativity and
innovation without having to be overly dependent on market growth. Other Toshiba selling points include

  • Ability to make resource inputs that are necessary to sustain competitive
    power, with a priority on strengthening its financial base.
  • Allocation of resources to strategic growth areas that allow it to
    concentrate on improving its business portfolio.
  • Focusing on productivity improvement to bring about a more effective use
    of resources and assets, as well as to enhance the quality and efficiency of
    its business areas.


Toshiba is entering into a rebuilding phase, and its tendency to announce
long-range plans and then revamp them within months, exposes the company to
risks it might not otherwise face. Other strong risk factors include:

  • Reputation damage from past inappropriate accountings
  • Issues related to company management policy and, in particular, business
    structural reform
  • Financial conditions, operations results, and cash flows
  • Partner- and business-related difficulties such as material procurement and
  • Troubled investments
  • Trade-practice concerns
  • Troubles related to new products, services, and technology
  • Laws, regulations, and legal matters


In February 2022, Toshiba revised its consolidated performance forecast for fiscal year 2021. Net sales and operating income were both revised downward. Sales projected
a JPY10 billion hit attributable to the worldwide semiconductor shortage and COVID-19 concerns, while income was expected to be JPY15 billion off the initial forecast due to
the two previously mentioned factors as well as a surge in the prices of raw materials. On a positive note, however, an estimated JPY40 billion increase in non-operating
income from its holdings in Kioxia and a JPY25 billion gain in profit-before-tax raises the company’s net income projections from JPY130 billion to JPY150 billion.

Product Lines

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In the US, Toshiba is primarily known for its PCs
and home entertainment products. The company, however, also offers a number of
products for power generation and management; storage devices; and business, home, and retail systems and appliances.

Table 3 lists Toshiba’s top products and services.

Table 3. Products and Services
Domain Description
Energy Systems & Solutions Power systems and related technology for
generation, transmission, and distribution; smart grids; energy
distribution systems
Infrastructure Systems & Solutions Public, building and facility, and retail and printing solutions and other
"smart" community offerings
Building Solutions Elevators and escalators for buildings, as well as facilities, ventilation,
and lighting
Electronic Devices & Storage Solutions Electronic products for the industrial, automotive, data center, and
Digital Solutions IoT (Internet of Things) and AI (artificial intelligence) technology for
energy, social infrastructure, distribution/logistics, building/facility, and
manufacturing, via Toshiba Digital Solutions.
Battery Business SCiB rechargeable lithium-ion batteries

Major Competitors

Toshiba’s major competitors include:


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Mergers, Acquisitions, and Divestitures

Toshiba Corporation announced that Toshiba Dalian Co., Ltd. (TDL), a manufacturing subsidiary based in Dalian, China,
ended production at the end of September, and will carry out the procedures necessary for its dissolution and liquidation. TDL was established as Toshiba Group’s
first manufacturing site in China in 1991, and over the course of operations its output has included industrial motors, parts for TVs and medical equipment. The
company has most recently manufactured industrial motors and broadcasting transmitters. Changes in Toshiba Group’s business structure over the years, including
the sale of its medical equipment business, reduced the product lineup at TDL, and, along with the age of the factory, led to the decision to discontinue production.
Production of industrial motors and broadcasting transmitters will be transferred to other locations. Toshiba states it is currently engaged in developing “a wide
range of businesses in China, and will continue to seek to expand its business and market presence in that important market.”


Saying that a takeover offer from private equity firm CVC Capital Partners is not “a bona-fide concrete and feasible acquisition proposal,”
Toshiba announced it would not entertain the offer to take the company private. Following published reports of CVC’s
bid for the electronics giant, a follow-up letter was received that Toshiba says, “contained no specific and detailed information capable of detailed
evaluation.” The company concluded “it is not possible to evaluate it.”

The Japanese publication Neihon Keizai Shimbun reports that CVC Capital Partners, a private equity firm, has made an acquisition proposal
to Toshiba. A statement from Toshiba chair Osamu Nagayama clarified that the preliminary and non-legally binding
offer “was completely unsolicited and not initiated by Toshiba by all means.” The chair further stated that the proposal “is conditional on a variety
of matters such as clearances of the anti-trust registrations of the relevant jurisdictions, the Foreign Exchange and Foreign Trade Act of Japan, and
necessary financing…. We expect that such financing process would require a substantial amount of time and involve complexity for consideration.”


Toshiba Corporation announced that Toshiba Infrastructure Systems & Solutions Corporation,
the Toshiba Group company specializing in the global infrastructure business, has entered into a strategic business alliance with Fortem Technologies,
Inc., and will invest $15 million in the company. Fortem is a Utah-based technology leader in counter-drone security that has grown rapidly in recent years
by supplying leading counter-drone systems, notably highly accurate small drone detection radars that are easily installed, and autonomous drones that can
capture rogue drones in a net. Through the alliance, Toshiba aims to expand its radar-based security solutions with a goal of increasing annual sales
in the counter-drone security business to 30 billion JPY by FY2030.

Toshiba announced that it will transfer its quantum key distribution business development function to its wholly-owned subsidiary
Toshiba Digital Solutions Corporation by means of a simplified absorption-type company split. April 1, 2021 is set as the effective date.

Products and Services

Toshiba Corporation and Peraton Labs have developed a vulnerability assessment tool that emulates cyberattacks on industrial control
systems. Dubbed Automated Attack Path Planning and Validation (A2P2V), the tool automatically generates cyberattack scenarios and simulates attacks that combine advanced
offensive techniques to test and determine control system security status. It also verifies results to identify security threats that need to be prioritized among the
increasing number and range of cyberattacks. A2P2V combines industrial control system configuration data with various publicly available attack techniques, and automatically
generates and executes cyberattack scenarios that verify the strength of the system’s security. Toshiba and Peraton Labs have successfully demonstrated automated attacks in
a simulated environment that revealed security flaws. The tool will be presented at Black Hat USA 2021 Arsenal on August 4-5, 2021, and a sample of the code will be shared.


The Cambridge Research Laboratory of Toshiba Europe today announced the first demonstration of quantum communications over
optical fibres exceeding 600 km in length. The breakthrough will enable long distance quantum-secured information transfer between metropolitan areas and is a major
advance towards building the future Quantum Internet. The term Quantum Internet describes a global network of quantum computers connected by long distance quantum
communication links. It is expected to allow the ultrafast solution of complex optimization problems in the cloud, a more accurate global timing system and highly
secure communications across the globe. Several large government initiatives to build a quantum internet have been announced, for example in the US, the European
Union, and China.


Toshiba TEC Group, the arm of Toshiba that makes scanners, printers and other business equipment, confirmed that
its European subsidiaries have been victims of a cyberattack. Toshiba’s investigation shows that the attack was limited to some regions in Europe
but it has not confirmed whether or not customer information was leaked. Reports indicate that more than 740 gigabytes of information were
compromised, including passports and other personal information.


Tobishba Corporation published research results in the journal Nature Electronics announcing
the Simulation Bifurcation Machine (SBM), a scale-out technology that minimizes hardware limitations. An evolution of its optimization computer,
the SBM supports continued increases in computing speed and scale. Toshiba expects the new SBM to be a game changer for real-world problems that
require large-scale, high-speed and low-latency, such as simultaneous financial transactions involving large numbers of stocks, and complex control
of multiple robots.


Toshiba Electronic Devices & Storage Corporation unveiled the
18TB MG09 Series hard drive. This series features Toshiba’s
third-gen, nine-disk, Helium-sealed design and FC-MAMR (Flux
Control – Microwave Assisted Magnetic Recording) technology in
order to advance CMR (conventional magnetic recording) density.
Sample shipments are expected to begin at the end of March 2021.


Alliances and Joint Ventures

Toshiba Corporation announced it has joined 14 other Japanese companies to establish the Carbon Neutral LNG (“CNL”) Buyers Alliance.
The Alliance was established through the concerted efforts of Tokyo Gas, which procures and supplies CNL, and the remaining companies,
which purchase CNL with the aim of increasing its utility value toward the achievement of a sustainable society. Choosing carbon neutral
energy is an important solution that will contribute toward tackling climate change and the SDGs, as well as directly lead to ESG management.
The companies participating in the Alliance will work to increase the recognition of CNL in society and carry out initiatives to improve its
evaluation by investment institutions and establish its position within the various systems in Japan with the aim of contributing toward Japan’s
achievement of a carbon neutral society by 2050.

Personnel and Organizational

Toshiba’s three month old restructuring plan received a major revision as the company shifted gears and plans to split
into two units as opposed to the previously announced three. Updating their Novmeber 2021 reorganization announcement, the firm’s future structure will consist
of Toshiba/Infrastructure Service Co., which will include Energy Systems & Solutions, Infrastructure Systems & Solutions, Digital Solutions, and Battery businesses
as well as Toshiba’s ownership stake in Kioxia Holdings Corp.; and Device Co., comprising the Electronic Devices & Storage Solutions business. The actual names of
the new businesses have not been finalized. A company press release states that “Toshiba determined that the fastest, most effective and efficient way to deliver
sustainable profitable growth, enhanced shareholder value and compelling benefits to customers, business partners and employees is to proceed with the separation
into two standalone companies.”


Toshiba Corporation unveiled its intention to separate into three standalone companies. While official names have not been
released, the entities are designated as Infrastructure Service Co., consisting of Toshiba’s Energy Systems & Solutions, Infrastructure Systems & Solutions, Building
Solutions, Digital Solutions, and Battery businesses; Device Co., comprising Toshiba’s Electronic Devices & Storage Solutions business; and Toshiba, which will
hold shares in Kioxia Holdings Corporation and Toshiba Tec Corporation. According to the company, the separation will allow each business to significantly increase
its focus and facilitate more agile decision-making and leaner cost structures. The reorganization is expected to be completed in the second half of fiscal year 2023,
subject to the approval of Toshiba’s general shareholder meeting and review by relevant authorities.


Toshiba Corporation‘s board appointed CEO Satoshi Tsunakawa as interim board chairman following the removal
of the previous chair Osamu Nagayama. Nagayama was voted out by shareholders at the company’s annual general meeting following the
publication of reports that he had opposed establishing an independent investigation into accusations that the company colluded with Japan’s trade ministry to
pressure foreign shareholders to back management board nominations. Following Nagayama’s removal, the board of directors issued a statement saying,
“Toshiba is in the middle of a period of considerable change, focused around an improvement in corporate governance, greater emphasis on capital
management, increase in shareholder returns, and the rebuilding of trust and support from our shareholders. The Board of Directors has undergone
considerable change as a result of the independent investigation report published on June 10th, 2021 and the voting at the Annual General Meeting
this afternoon.” (06/24/2021)

Nobuaki Kurumatani has resigned his positions of director, executive officer, and representative executive officer, according to
Toshiba Corporation The board of directors has appointed Satoshi Tsunakawa to succeed Kurumatani as
representative executive officer, president, and CEO. The changes are effective immediately.


Toshiba announced it has appointed executive officers for its key regional operations, effective from April 1, 2021, as a move to
strengthen overseas business activities and governance at its overseas subsidiaries. The company operates a wide range of businesses
around the world and, in order to establish the structure needed to promote group-wide regional strategy alongside global strategy,
an executive officer will be appointed to oversee each of four key geographies: the Americas; Europe, the Middle East and Africa;
Asia-Pacific; and China and East Asia. The executive officer will be responsible for developing comprehensive strategies and establishing
personnel and organizational structures for the region. The individuals filling these key positions will be announced at a later date.


Toshiba resolved to appoint a new Representative Executive Officer and Corporate EVP, in Takayuki Konno.
The appointment is effective April 1, 2021.


Legal News

Toshiba has come to an agreement to end a second major lawsuit related to accounting improprieties.
Shareholders who brought the suit were seeking more than JPY13 billion in
damages from the company. Toshiba and the plaintiffs agreed to a termination of
the suit following the company’s payment of JPY1.92 billion.


Toshiba Corporation announced the settlement of lawsuit brought against them related to accounting practices. The
lawsuit was filed with Tokyo District Court in March 2017 by three Japanese corporate shareholders seeking more than JPY5 billion on the grounds of
damages incurred due to the company’s inappropriate accounting. Toshiba decided to settle the case “from the viewpoint of achieving an early resolution,
taking into consideration the cost of the Lawsuit and the cost associated with uncertainty.”



1 Layne, Nathan, and Ritsuko Ando. “In Toshiba Scandal, the ‘Tough as
Nails’ Target Setter.” Reuters. August 24, 2015.

2 Yamazaki, Makiko. “Toshiba Now Plans to Split into Two, Bumps Up Shareholder Return Targets.” Reuters. February 7, 2022.

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