ML11158A023

2010 Annual Report Operational Review. (Non-Proprietary Version)

ML11158A023
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Site:	07000036, Westinghouse
Issue date:	12/31/2010
From:	Toshiba Corp
To:	NRC/FSME
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TOSHIBA Leading Innovation >>

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2010 Annual Report Operational Review

Basic Commitment of the Toshiba Group Toshiba Group's corporate philosophy emphasizes respect for people, creation of new value, and contributions to society.

The Group slogan - "Committed to People, Committed to the Future. TOSHIBA."

- expresses the essence of our corporate philosophy.

BASIC COMMITMENT OF THE TOSHIBA GROUP We, the Toshiba Group companies, based on our total commitment to people and to the future, are determined to help create a higher quality of life for all people, and to do our part to help ensure that progress continues within the world community.

COMMITMENT TO PEOPLE We endeavor to serve the needs of all people, especially our customers, shareholders and employees, by implementing forward-looking corporate strategies while carrying out responsible and responsive business activities. As good corporate citizens, we actively contribute to further the goals of society.

COMMITMENT TO THE FUTURE By continually developing innovative technologies centering on the fields of Electronics and Energy, we strive to create products and services that enhance human life, and which lead to a thriving, healthy society. We constantly seek new approaches that help realize the goals of the world community, including ways to improve the global environment.

N N N Committed to People, Committed to the Future. TOSHIBA Framework of Toshiba Group's Management Philosophy Basic Commitment of the Toshiba Group United Nations Global Compact' Toshiba Group Management Vision A Sez of va ues and,re's snared Toshiba Group A

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Contents Annual Report 2010; Operational Review Toshiba is a diversified electric/electronics manufacturer with principal operations in Digital Products, Electronic Devices and Social Infrastructure. Alongside these, we are also active in Home Appliances, and in cultivating promising new areas of business that will allow us to expand Toshiba Group's overall business.

This report looks at the recent progress Toshiba has made and at the initiatives we will take going forward, with a primary focus on business achievements in the fiscal year ended March 31, 2010.

Contents To Our Shareholders 2

Financial Highlights 4

An Interview with the President 6

Special Feature: Return to the path of sustained 13 growth with steadily higher profit Focus resources on growth business areas Mid-term Business Plan 18 Business Review 20 CSR Management 34 Research *1 Development and Intellectual Property 36 Corporate Governance 38 Directors and Executive Officers 40 Corporate History 42 Data Section 43 TOSHIBA Annual Report 2010 1

To Our Shareholders The consolidated net sales of Toshiba Group in FY2009 were Y6,381.6 billion, a decrease of 4% from FY2008. On the other hand, consolidated operating income moved back into the black, reaching Y1 17.2 billion, which represented a large increase of Y367.4 billion over the amount recorded in the previous fiscal year. The Semiconductor business returned to the black, particularly due to the recovery of our NAND flash memory business, and the Social Infrastructure business achieved a high level of profit. The decisive steps we took to implement restructuring measures through our "Action Programs to Improve Profitability" resulted in a reduction of fixed costs of about Y430 billion, an amount that exceeded our original restructuring target by about Y130 billion, and enabled us to rebuild our profit structure. Furthermore, the measures we carried out to strengthen Toshiba Group's financial structure have resulted in our free cash flow becoming Y1 98.5 billion, an increase of Y549.8 billion compared to FY2009, and our debt-equity ratio, which was 405% on March 31, 2009, the end of the previous fiscal year, improved to 153% on March 31, 2010, the end of FY2009.

Toshiba Group's operating income, income before taxes and net income (loss) all improved greatly in FY2009. Nevertheless, both our consolidated and non-consolidated net income remained in the red, and we are still in the process of implementing measures to further strengthen Toshiba Group's financial structure. Consequently, with regret, we had to forgo paying a dividend for FY2009.

We will decide on our dividend policy for FY2010 based on a careful evaluation of the Group's financial position and strategic investment plans.

We are aiming to transform Toshiba Group into a top-level diversified electric/electronics manufacturer with strong competitive power. Going forward, we will transform Toshiba Group's business structure by focusing resources on growth business areas, expanding the scope of key businesses, accelerating the development of new business areas, and evolving into one of the foremost eco-companies in the world. The bold steps we are taking to transform the business structure of Toshiba Group will ensure the business foundation for sustained growth and steadily higher profit.

Building upon the improved business performance achieved in FY2009 and by effectively investing the capital funds we secured in FY2009 by means of equity finance, we will strive to further enhance the corporate value of Toshiba Group and do our best to fulfill the expectations of all of our shareholders. We ask for your continued strong support and understanding.

Atsutoshi Nishida Norio Sasaki Director Director Chairman of the Board President and CEO0 2

Financial Highlights

• Toshiba Corporation and its Subsidiaries For the yeors ended Moach 31 2010, 2009 2008 2007 and 2006 (Billions of yen) 2006 2010 2009 2008 2007 Financial performance Net sales-Japan

-Overseas Net sales (Total)

Operating income (loss) (Note2)

Income (loss) from continuing operations, before income taxes and noncontrolling interests Net income (loss) (Note3)

Financial position and indicators Total assets Total equity attributable to shareholders of Toshiba Corporation (Note4l)

Interest-bearing debt Shareholders' equity ratio (%)

Debt/equity ratio (Times)

Investment R&D expenditures V 2,878.5 Y 3,230.8 Y 3,702.4 Y 3,599.4 Y 3,382.

3,503.1 6,381.6 117.2 25.0 (19.7) 5,451.2 797.4 1,218.3 14.6 1.5 3,423.7 6,654.5 (250.2)

(279.3)

(343.6) 5,453.2 447.3 1,810.7 8.2 4.0 3,962.9 7,6653 246.4 265.0 127.4 5,935.6 1,022.3 1,261.0 17.2 1.2 3,517.0 7,116.4 258.4 327.1 137.4 5,932.0 1,108.3 1,158.5 18.7 1.0 2,961.4 6,343.5 240.6 182.3 78.2 4,727.1 1,002.2 917.5 21.2 0.9 323.2 378.3 393.3 394.0 372.4 Capital expenditures (Property, plant and equipment) 209.6 357.1 465.0 375.3 338.8 Return indicators Return on investment (ROI) (%) (Notes) 4.8 (9.6) 9.4 11.1 11.6 Return on equity (ROE) (%)

(3.2)

(46.8) 12.0 13.0 8.6 Free cash flow Net cash provided by (used in) operating activities 451.4 (16.0) 247.1 561.5 501.4 Net cash used in investing activities (252.9)

(335.3)

(322.7)

(712.8)

(303.4)

Free cash flow 198.5 (351.3)

(75.6)

(151.3) 198.0 Per share of common stock (yen)

Net income (loss) (Note6)

-basic (4.93)

(106.18) 39.46 42.76 24.32

-diluted (4.93)

(106.18) 36.59 39.45 22.44 Cash dividends 0.00 5.00 12.00 11.00 6.50 Number of employees Number of employees (Thousands) 204 199 198 191 172 Notes:t US GAAP was codified by the Financial Accounting Standaros Boaro. Beginning with the fiscal year enced March 31 2010, the codified standarus are described in "Accounting Standards Codification (ASC),"and the Pre Codify stancards are also presented together 2 Operating income (loss) is cerivea by deducting the cost of sales and selling, general and aomnistrative expenses from net sales 3 Net income tloss) attributable to shareholders of Toshiba Corporation is described as Net income (lossl e Total equity attributable to shareholders of Toshiba Corporation is basea on U S CGAAP 5ROI i Operating income (loss) / (Average total equity attributable to shareholders of Toshiba Corporation + Average total eouity attributable to noncontrolling interests + Average interest bearing debt) x 100 6 Basic earnings (losses) per share attributable to shareholders o-Toshiba Corporation (if P'0 is computer, basec on the weighted average number of shares of common stock outstanding during each period Diluted fPS assumes the dilution that could occur if convertible bonds were converted or stock acquisition rights were exercised to issue common stock, unless their inclusion would have an antioilutive effect.

7. The Mobile Broadcasting business ceased operation at the end of the fiscal year ended March 3t, 2009 Prior period data for the fiscal years ended from March 3 1, 2006 through 2008 has been reclassified to conform with the current classification

8. Beginning with the fiscal year ended March 31, 2010, the Company adopted ASC No 810 "Consolidation" (formerly SlAS No 160) Prior period data for the fiscal years ended from March 31, 2006 through 2009 nas been reclassified to conform with the current classification 4

Net sales Bdhonsofyern Ratio of overseas sales t,)

Operating income (loss)

Operating income ratio -

Net income (loss) s~.

Return on sales -

7,665.3 7,116.4 6,654.5 6,343.5 6,381.6 258.4 240.6 246.4 117.2 137.4 127.4 78.2 1......

1.2 06 07 08 p-19.7

-0.3 (52

-250.2 06 07 08 09 10

-343.6 06 07 08 09 10 09 10 Total equity attributable to shareholders of Toshiba Corporation 8,u1ons ofye-i Debt/equity ratio

• e, 1,108.3 RED expenditures &monosii,,

RED/sales raito Free cash flow.-

1,022.3 1,002.2 M9 1.0 372.4 394.0 393.3 07 08 372.4 323.2 378.3 501.4 1&

451.4 561.5 l

10 I

247.1 1.5 71

-303.4 322.7

-712.8 06 07 08 06 06 07 08 09 10 09 09 10 I

Net cash provioea by (usec in) operating activities M Net cash usec in investing activities Free cash flow TOSHIBA Annual Report 2010 5

An Interview with the President Norio Sasaki Director, President and CEO I hpllevt-I l1w tll(, it (,mstol 1111tiq oi um hw,1110ýý -)!I tit 1111 1", 11"'i o t I (111,ýJ o l fl) f (it ()tjl) lilto) (,I to p (,v e l th,ýo l )11 -'d 1

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() W ) I Q. One year has passed since you became president of Toshiba. How do you evaluate the results achieved in FY2009?

A. I think that because we were able to return Toshiba Group's operating income back into the black, we were able to put in place the business foundation to propel sustained growth and increased profitability.

FY2009 was a year in which big changes continued to characterize developments in the 6

economy and society following the 2008 global financial crisis. A shift in the world economic paradigm occurred in the aftermath of the "Lehman shock." While the developed economies are on the road to gradual recovery, the higher growth in the emerging economies is playing the role of an engine for growth of the world economy, and the multi-polarization of the global economy has become a striking trend. Under these circumstances, to assure that Toshiba Group has a steady, strong and highly profitable business structure that can withstand rapidly changing economic conditions and market changes, we boldly made concerted efforts to implement our "Action Programs to Improve Profitability." As a result, although consolidated net sales decreased compared to the previous fiscal year, consolidated operating income in all business segments (except the Others segment) considerably recovered, with Toshiba Group's total operating income reaching Y1 17.2 billion, an increase of Y367.4 billion compared to that of FY2008. Our return-on-investment (ROD) became about 5% as a result of such measures as establishing a system to improve the efficient utilization of capital. We have moved steadily forward with our strategies to assure sustained growth with steadily higher profit.

Q. What are the concrete measures being implemented under the "Action Programs to Improve Profitability?"

A. Under the Action Programs, we promoted two key policies aimed at an early return to strong profitability. First, we implemented restructuring measures with regard to our businesses that were suffering from many difficult challenges. During FY2009, we carried out fundamental restructuring measures centering on our Electronic Devices segment, which had recorded large losses in the previous fiscal year. In the Semiconductor business, a positive performance in operating income was achieved due to the promotion of a flexible production structure through reorganizing fabrication and assembly facilities and shifting to overseas operations with lower operating costs. We restructured our LCD (liquid-crystal display) business by reorganizing our production facilities and focusing on the strategic allocation of resources for selected high-FY2009 Management Achievements: Returning to the path of sustained growth with steadily higher profit Operating Income Shareholders' Sales (loss)

Equity Ratio Debt/Equity Ratio ROI*

FY2008 (Results)

Y6.7 trillion Y-250.2 billion 8%

405%

-10%

FY2009 (Targets)

V6.8 trillion 4+1 00.0 billion 15%

180%

+5%

As of May, 2009 FY2009 (Results) -i Y+1 17.2 billion 153%

• RO! is operating income (loss) divided by total debt plus total equity.

TOSHIBA Annual Report 2010 7

An Interview with the President value-added products. In the Digital Products segment, we carried out a thorough review of our mobile phone, TV and PC businesses, including development and manufacturing, and in this business segment, we increased operating income compared to the previous fiscal year. In the Home Appliances segment as well, we moved forward with the consolidation of manufacturing and R&D facilities, the reshaping of businesses and the promotion overseas production, and in the second half of FY2009, operating income moved into the black.

The second key policy involved the implementation of company-wide measures aimed at rebuilding our profit structure. We carried out such measures as a thoroughgoing reduction of expenditures, the prioritizing of facility investment to new and growing businesses and the expansion of overseas businesses. As a result, the amount of reduction in fixed costs attained was about Y430 billion, which surpassed the original target of our cost-reduction plan by about Y130 billion. In addition, the marginal profit ratio also improved through such efforts as expanding the integrated procurement of parts, and these steps contributed greatly to the improvements in operating income and free cash flow.

Q. Can it be said that reform of Toshiba Group's business structure was completed by the end of FY2009?

A. With the measures taken so farToshiba Group's profit structure has been significantly improved.

Nonetheless, there are still some businesses that have not achieved operating income in black figures. To rebuild a strong profit structure, we must continue implementing restructuring measures and shift such businesses into the profit-making column at an early date. With this objective in mind, in our FY201 0 business plan, we included the expenditures that would be incurred by such restructuring measures, and we will go forward with a series of concrete measures to improve profitability and steadily execute them. For example, we reached an agreement with Fujitsu Ltd. to merge our mobile phone businesses in July, 2010.The same month Toshiba Mobile Display sold 100% of the shares it owned of its subsidiary company manufacturing small-and mid-size LCDs in Singapore to a subsidiary of AU Optronics of Taiwan.

It is necessary that all of our businesses establish a profit foundation for sustained growth with steadily higher profit, except for those in new areas whose development is being accelerated.

8

Q. In FY2009, to enhance the financial strength of Toshiba Group and allow it to have the financial foundation to pursue further growth opportunities, you decided to increase Toshiba's shareholders' equity through equity finance.

What has Toshiba Group done to strengthen its financial soundness for FY2010?

A. With the improvement in Toshiba Group's business results and our successful procurement of additional capital funds, our shareholders' equity ratio, which was 8% at the end of FY2008, increased to 15% at the end of FY2009; our debt/equity (D/E) ratio, which was 405% at the end of FY2008, improved to 1 53% at the end of FY2009; and our return-on-investment (ROI) ratio moved from -10% at the end of FY2008 to +5% at the end of FY2009. Our efforts to establish a financial structure to support sustained growth with steadily higher profit are beginning to show good results. However, we firmly intend to make a great transition to a more powerful financial structure between now and the end of FY2012. We will continuously endeavor to further build up our financial structure through such measures as the strengthening of our earnings power and the shortening of the cash conversion cycle. In particular, with regard to investments aimed toward future growth, we have newly introduced a set of in-company, comprehensive investment controls designed to fit with the characteristics of each business.

We will make investments based on a careful selection process and will measure and evaluate their actual effectiveness. To maintain superior competitiveness, we will systematically prepare and consider each business case and then proceed to carry out business operations while placing emphasis on the rate of return-on-investment as an important criterion for management.

Q. How do you intend to reshape the business structure of Toshiba Group?

A. As a result of the restructuring measures we have been implementing, we have been able to make progress in the strengthening of our profit foundation. In the future, in addition to these achievements, I believe that the transforming of our business structure is necessary so as to transform Toshiba Group into a top-level diversified electric/electronics manufacturer with a strong global competitive power that will allow us to achieve sustained growth, which surpasses that of our market peers, and to attain steadily higher profit. Concretely put, Toshiba's mid-to long-term transformative strategic vision is that by focusing on growth business areas, expanding the scope of key businesses, accelerating the development of new business areas, evolving into a foremost global eco-company and contributing to the future of a sustainable planet Earth we will assure that we have a steady, strong and profitable business structure that has enormous possibilities for generating powerful growth and stellar earnings.

You might want to ask the question about why business structure change is necessary now.

The answer is that in the emerging economies, the strength of the consumer market has grown TOSHIBA Annual Report 2010 9

An Interview with the President tremendously as a large new and growing middle class asserts itself amid a leap in incomes and urgent demands for improvements in such vital societal needs as energy, water and food are coming to the forefront. In developed economies, as the graying of their populations accelerates, the importance of having high-level, cost-efficient healthcare and innovative approaches to education is increasing. Moreover, when we consider some of the common trends impacting both the emerging and developed economies, it is clear that worldwide measures to address global warming have become an urgent necessity, and the spread of digitalization, networking and the huge volume of information flow anywhere and anytime around the globe have created a wide range of new challenges for further innovation. Under these circumstances, Toshiba Group will closely analyze the trends that are appearing in the changing post-financial crisis era and will mobilize to allocate our strategic resources to enable us to seize the new business opportunities in the fields of energy and the environment, vital social needs and healthcare, as well as information and communication technology (ICT) - all business fields where strong growth is expected. I am very confident that the transforming of our business structure will lead us back to the path of sustained growth with steadily higher profit.

Q. What fields will you focus on to transform Toshiba's business structure?

A. First, with regard to our strategy to focus on growth business areas, we intend to focus on memory and nuclear energy. We will concentrate on our memory business, because market expansion is anticipated with the progress and diversification of digital equipment, and on our nuclear energy business, because worldwide demand for plants is increasing from the standpoint of addressing global warming and providing a stable supply of safe, clean and reliable electric power. We started the construction of a new fabrication plant for NAND flash memories at our Yokkaichi Operations in July 2010. Furthermore, we are preparing to expand the scope of our nuclear energy business by strengthening our front-end fuel supply chain capabilities and by enhancing the leading position of Toshiba and Westinghouse in the nuclear services business. In this connection, we announced that we would make a major investment in USEC, a leading U.S. company engaged in uranium enrichment for commercial nuclear power plants.We are also planning to expand the scope of our healthcare business from diagnostics to treatment through the introduction of innovative systems such as an advanced X-ray diagnostic system that supports "hybrid surgery." We are also bringing to the market the world's largest open-bore diameter, patient-friendly 3T-MRI, and we are taking measures to respond to the special healthcare market needs of the emerging economies.

We will also accelerate the development of new business areas. Starting with the digital and network area, we will contribute to the next-generation ICT network, mainly with hybrid storage for enterprise applications and storage devices such as solid state drives (SSD). We will also accelerate the development of the "smart community solution" business area (which includes the "smart-grid" and "smart-facility" businesses), solar photovoltaic power generation 10

system business, safe, long-life and quick-recharging lithium-ion battery SCiBTM business and new energy-efficient LED lighting system business. Recent examples of our efforts to accelerate new businesses include the contract to supply energy-efficient electric motors for hybrid electric vehicles to Ford Motor Corporation and the agreement to jointly develop SCiBTM for electric vehicles with Mitsubishi Motors Corporation. In addition, we will also tackle the development of next-generation semiconductors and next-generation nuclear reactors. In these new business areas, for example, we are targeting net sales for FY2015 of Y1.1 trillion in the NAND flash memory business and Y1.0 trillion each for the nuclear energy and healthcare businesses.We are planning a robust expansion from our present business scale in all these new business areas.

Q. What are Toshiba Group's key environmental management policies?

A. Today it is a most crucial matter for companies to address the challenges and opportunities presented by the crucial global issues of energy security and the conservation of the global environment. Toshiba Group, guided by the "Toshiba Group Environment Vision 2050," has endeavored to help people everywhere achieve a better quality-of-life lived in harmony with planet Earth. In the future, we will not only concentrate on the global issue of the conservation of the environment, but we will also proactively practice environmental management in all of our business activities, as we endeavor to evolve into one of the world's foremost eco-companies.The quest for sustainability can become the genuine standard for further innovation.

We will unleash our powers of innovation with regard to three important environment-related themes: "Greening of Process,""Greening of Product" and "Greening by Technology." In "Greening of Process," we will go forward with the promotion of more highly efficient manufacturing facilities and production processes, as we pursue the world's lowest CO2 emission levels in every business area. In "Greening of Product," we will pursue the goal of having the world's leading environmental performance for all of our products, and in "Greening by Technology" we will expand our businesses that are related to low-carbon power-generating technologies, starting with nuclear power generation and solar photovoltaic power generation systems. With these measures, we expect to be able to contribute to an annual reduction of CO,, emissions of 750 million tons in 2020. In this way, in all of our business activities we will aim to be a foremost eco-company that will contribute to a sustainable future for planet Earth.

TOSHIBA Annual Report 2010 11

An Interview with the President Q. What concept do you have about Toshiba Group's CSR (corporate social responsibility) management?

A. The commitment to conduct all of our business activities with great integrity and be a responsible "corporate citizen of planet Earth" that is trusted globally remains a central pillar of the CSR management philosophy of Toshiba Group.

Even under the current rapidly changing business environment, there is no change in the key importance of CSR management.The word "integrity" has two important connotations for business activities. One is to always strive to act with unshakable integrity so as to meet the expectations of society and be a globally trusted enterprise, and the other is to proactively carry out corporate social responsibility by putting utmost priority at all times on "life, safety and compliance." Environmental management is an essential part of carrying out CSR management.

In the intensifying global competition that characterizes global business today, Toshiba Group will aim to be a company that is globally respected for its fair business practices and its sincere desire to help play a constructive role in the important social issues facing the developed and emerging economies.

Q. What one central message would you like to convey to Toshiba's shareholders?

A. The post-economic crisis world will bring about major changes in social and economic paradigms that will create new business challenges and opportunities. Under such circumstances, all of Toshiba Group's employees will demonstrate our creative powers of imagination backed up by our prowess in sensitively reading the trends of the times and will use Toshiba's powers of imagination to create the technologies, products and services that will help society overcome the critical problems of today and tomorrow. Each and every person in Toshiba Group will endeavor to reach their full potential by benchmarking and analyzing the present situation and then setting high goals. In this way, we can achieve continuous further breakthroughs in innovation and create new models for innovation. By effectively mobilizing the strengths of each and every member of Toshiba Group, we will enhance corporate value by transforming Toshiba Group into a top-level diversified electric/electronics manufacturer with strong global competitive power. I deeply believe that further enhancing corporate value and meeting the expectations of all shareholders is my utmost obligation as the president of Toshiba.

12

Meor Busines Establish a high profit structure; secure a technological advantage with market-driven strategic investments The continuing evolution of the digital products business is fueling increasing expectations for energy-efficient, fast, high density storage devices. In 1987, Toshiba Group developed the world's first device to incorporate these features, the NAND flash memory. In the years since, NAND flash has won wide use as a storage medium, generating new demand and promoting value creation.

At Toshiba, we aim to establish a strong earnings base in our Memory Business and to improve efficiency in recovering capital investments. We will do this by continuing to enhance our cutting-edge technology and product line-up, and by basing decisions on investment and production levels on close analysis of demand trends.

Market Environment Anticipating increased demand for larger data storage capacities and new applications.

NAND flash memory, a non-volatile* memory that writes and erases data electronically, is a storage medium used in many different digital products.

Until now, demand for NAND flash memory has been driven by increasing capacity and the growing popularity of products like digital cameras, cellular phones and portable media players. In the second half of FY2008 the downturn in the global economy hit demand for digital products and caused excess supply, but in FY2009 demand entered the recovery stage.

From 2010 on we expect to see increasing demand for larger data storage capacities in digital products. Coupled with increased use of NAND flash memory in new applications, such as smart phones, this will lead to a full-fledged expansion in demand. One application in particular, the solid state drive (SSD), is representative of the next generation of powerful storage devices; going forward, demand for NAND flash will grow as SSDs are installed in PCs and penetrate the enterprise server market.

• A memory device that retains data even when the power supply is switched off.

Memory Business Sales Trend (Billions of yen)

Market forecast and applications that drive market growth (gigabyte basis) 538.1 4532 356.8 527.5 422.0 08 09 0 Premium market Existing market

S51, Camcorders Celluarnes Audio Players USB Memories Digital cameras

-.0 08 09 10 11 Content business Home servers Optical discs 05 06 07 12 13 14 15 20 (FY) 14

Toshiba Group's Advantages and Business Strategy sincrease earnings, maintain superiority in process migration and storage densities.

We lead the industry in reducing costs and raising generation. We will develop our line-up of SSD for storage densities, by making full use of our enterprise servers, making use of HDD technology intellectual property and manufacturing to do so. Decisions on capital expenditure will technology, while cooperation across business reflect market demand and improved recovery of units supports advances in product development, capital investment. We will also raise cost As a result, in September 2009 we held the second competitiveness by increasing assembly at largest global market share (source: iSuppli; share:

overseas facilities. Finally, we will continue to 34.6%).

develop memories that anticipate future demand We will reinforce cost competitiveness and that support us in establishing and through process migration, initially in the 20nm*

maintaining a highly profitable structure.

• I nanometer (nm) - I billionth of a meter I

Meor bsn ss srtg

1. Reinforce cost competitiveness through advanced technology

2. Improve profitability with expanded line-up

3. Implement strategic investments and demand-based production

4. Develop new types of memories FY2015 target Sales of 1.1 trillion yen Initiatives in FY2009 eMigrate process technology, improve productivity and profit with demand-based production.

In FY2009 we saw demand recover from the negative impacts of the global downturn. In the 1st quarter, Toshiba Group strove to improve earnings by adjusting the scale of production to changes in demand. As the market regained momentum in the 2nd quarter, we released the world's first* NAND flash memory fabricated with 32nm process technology. In the second half of FY2009 we made progress in the development and mass production of new high density products fabricated with cutting-edge technology.

In respect of investment, we controlled total capital expenditure by reference to ROI, focusing on process migration. However, we decided to begin construction of the 5th wafer fab (Fab 5) at Yokkaichi Operations in July 2010 to meet the increase in demand expected in 2011 and after.

• As at April 2009, based on Toshiba research As an embeodeo NAND flash memory product December 2009. basedr on loshiba research The new facility is not only expected to produce NAND flash memory with 20nm generation process technology and beyond but also to produce new types of memories.

Major developments in FY2009

• Sto't of moss orooctjct on of NAM) flash memornes bosed on 32nm process technology SMoarket ouncn of 64GB embedec NAND flash menmory, o f f r n g t he a o d s r r e s r

• d at a de n Oeve oprentof a3n process cnfor applcation n SD for notebook PCs Artist a inpressiaon o the Completed Yokkac hi Operations - ab I TOSHIBA Annual Report 2010 15

Spca Feaure Reur to th pat of sutane grwt wihsedl ihrpoi Establishing a profitable global business structure based on extensive construction experience and superior technologies.

Forecasts point to expanded global demand for electricity, and nuclear power generation is increasingly seen as a viable means to ensuring energy security and mitigating global warming. On the strength of cutting-edge technologies and excellent construction record Toshiba Group is winning an increasing number of orders for the construction of nuclear power plants, even as we expand our service business and strengthen our nuclear fuel business. Through these measures we hope to further reinforce the overall structure of the nuclear power business and to achieve sustained growth and a robust earnings base.

Market Environment

• Nuclear power can deliver energy security growing global demand.

Demand for electricity will grow in proportion to economic and population growth. Nuclear power generation is free of CO2 emissions and offers essential advantages in energy security and countering climate change. That is why it is now taking off on a global scale.

In the United States, plans for new plant construction are making real progress--and so is Toshiba. Of 32 plants announced, 18 are to have Propulsion from both BWR and PWR TOSHIBA and address climate change, and is finding reactors from Toshiba Group. The government is supporting construction with loan guarantees and so far has selected seven candidates, six of them Toshiba plants. The two Vogtle plants will be the first to benefit from this policy.

We anticipate long term global expansion driven by demand for fuel and improving the reliability and economic viability of existing plants.

Nuclear power plants by company Share of plants in operation Nuclear rear tof main corticts frato to irIstalklo.cpa.cty)

Toshiba Group 28%

No.1 share 108GWe Others 189GWe (432 plants)

Company D Company C Company B Company A

(

APIO000

_)

(Picture: Westinghouse Electric Company)

Toshiba Group construction track record U.S.

62 plants Taiwan 2 plants Japan 21 plants Switzerland 2 plants Sweden 21 plants Finland 2 plants Korea 6 plants Slovenia 1 plant Spain 5 plants Brazil 1 plant Total 112 plants 16

Toshiba Group's Advantages and Business Strategy eSynergies between Toshiba and WEC* will global fuel and service businesses.

Toshiba Group is the only manufacturer of nuclear power plant with technology for both mainstream light-water reactors-boiling water reactors (BWR) and pressurized water reactors (PWR)-and combines abundant experience with supelior technological capabilities. We have constructed 112 nuclear power plants in 10 countries and regions, the largest global share** of plants in operation today.

Toshiba is the only company yet to build an operating third generation ABWR (Advanced BWR).

We have a proven track record in plant operation and hold the record for the world's shortest plant construction period. WEC leads the world in PWR with the superior safety and economic viability of the AP1000TM.

NucI [e Ierg busI I I

[t tI

1. Win more new plant orders and carry out construction

2. Expand the service business

3. Enhance the fuel business

4. Develop next generation reactors drive new plant construction, and develop Through synergies of Toshiba and WEC's advanced technological capabilities and extensive practical experience, we target orders for 39 new plants around the world by 2015. We will take Toshiba's 50 years of experience and know-how global by delivering BWR maintenance services; and we will contribute to improved reliability and economic efficiency in plant operation.

Beyond this, we will enhance our fuel business by securing uranium and producing nuclear fuel, and develop technologies for next-generation and fast reactors and for nuclear fusion.

These strategies will support establishment of a firm earnings base that can generate sustainable growth.

• Westinghouse Electric Company Source: Japan Atomic Industrial Forum, Inc (JAIF) "Global Trends in Development of Nuclear Power Generation - 2010 edition" I Y2015 torget:

Sales of 1 trillion yen Win orders for 39 plants by 2015 Initiatives in FY2009

• Won plant orders, cooperated in fuel business and in expanding service business.

Strategies for growth included steady progress in new plant construction (the US and China), wins of new large scale refurbishment orders in Japan, and overseas and strategic alliances to expand the fuel business.

Scope of nuclear power business (from fuel to fusion)

Nuclear fusion Major developments In FY2009

• Competed a state of troe at nuclear cower pcant engineer nr center

• Received US government approval as a manufacturer of nuclear reactors 0 Commenced construction of nuclear power plants in bhino

• ABWR selected as o candidate for a planned nuclear power plant n ri n and

• • 11'cured efficency encncemrents n domesti 10rb ne constrt

-n,,ar,

• Lst abh, -e i BR tra niro "p ce rter t

tre US OWEC acquir d stock n Nuclear F-ue Industres, to

• stopshed a z rco urn sponge prodtort j"not ertu0e n

• E 0tered nto an MOU wihf ENFX. o Russion state-owned enterprise, on cooperaoton in the nuclear fuel fieid

• Assumed 'ong-term management of a rue monufactrong operctior f'ro" t",e UK's Nuceacr Decorum ss'on 'g Autror ty

('EDA)

Hndwger manulkwtre TOSHIBA Annual Report 2010 17

Mid-term Business Plan Mid-term Business Plan On May 11, 2010, we announced our management policy and business strategies for the period to FY2012. We will establish sound financial foundation and return to the path of sustained growth with steadily higher profit, and transform Toshiba Group into a top-level diversified electric/electronics manufacturer with strong competitive power at the global level.

Mid to Logtr vsio Assure that Toshiba Group has a steady, strong, and highly profitable business structure and sound financial foundation that can withstand rapidly changing economic conditions and market changes I

1 1

I Transform Toshiba Group into a top-level diversified electric/

electronics manufacturer with strong global competitive power "1 I veI env Irom"1 I IIIII Establish a position as one of the foremost eco-companies in the world and contribute to the future of a sustainable planet Earth Restructuring and Transforming the Business Structure Achieving high profitability through strategic allocation of resources Operating income (billions of yen)

FY2012 (Plan)

IMI I

450,0 117.2 0

-250.2 FY2009 FY2009 Improve sales/fixed cost ratio Establish profit foundation Environmental Management: Steps to evolve into one of the world's foremost eco-companies IT-

-Promote more highly efficient manufacturing facilities and processes Pursue the world's lowest COP emission levels*' in every business area

-Pursue the world's leading environmental performance"2 for all products Saving energy by 17%

-Low-carbon power generation technologies to reduce C02 emissions

• I: CO? emissions per unit production per business unit (production volume, unit, sales, etc.)

'2: Set new ECP (Environmentally Conscious Product) standard 18

Toward Being a World-leading Complete Transition to Strong Diversified Electric/Electronics Maker Financial Structure Ratio of overseas sales 55% 1 over 63% (FY09 to FY12)

Net Sales (billions of yen) 8,000 FYO9-FY12 CAGR 16.9%

9.1%

1.3%

60 FY2009 FY2012 I is operating income (loss) a.ivcde by total debt plus total eouity 1:Compound Annual Growth Rate

• 2: Source: IMF World Economic Outlook April 2010 (Billions of yen)

FY00 eslF212 Pla Bai staege Net Sales 2,363.6 3,000 Digital Products

4.

Operating Income to Sales 0.6%

2.0%

Expand business by core technology and horizontal specialization OTV Sales target: 15 million units; PC: 25 million units (FY201 0)

• Sales ratio for emerging countries:TVs, PCs over 30% (FY20) 2, unit base)

Semiconductor Business Electronic Net Sales 1,309.1 1,650

• Focus on memory *Maintain worldwide No.1 share in discrete

• EOnhance profitability in focused products area of system LSI Devices Operating

-1.8%

10.9%

LCD Bus hess Incomne taes

• Focus on competitive technologies and applicatiorrs Expand sales act vt es to wor dwlde markets wi, h No. I environmentally Net Sales 2,302.9 3,110 conscious technologes ane overseas manufacturing faciities Social OEnhance environmentally conscious technology globally in nuclear energy Infrastructure business and in steam turbines and generators for U.S. market 5.9%

6.8% b Continue to enhance global manufacturing bases (A new factory for super Incomets Sales critical steam turbines and generators in India (planned to operate in Jan 2011)

Net Sales 579.8 640 Become No I woridw oe n energy efficiency and comfort Home OJapan: Create No t products with highly reliable technologies Appliances Operating

-0.9%

1.6%

• Overseas: Develop cost competitive, energy saving products that suit the Income to Sales market characteristics of ermerging economies Investment and RED Expenditure Accelerate business system transformation by prioritizing investment in new and growing business Capex, investments & loans Cumulative total vs. FY09 (FY1 0-12)

VI.300.0 billion +74%

R&D expenditures Cumulative total vs. FY09 (FYIO-t 2)

V1,070.0 billion +10%

Storage devices New semiconductor fab SCiBrv Power systems New lighting systems (LED)

FYIO-12 Average TOSHIBA Annual Report 2010 19

Business Review In FY2009, Toshiba Group recorded sales of 6,381.6 billion yen. Despite second-half sales that surpassed those of the same period of the previous year, this total was 272.9 billion yen lower year-on-year, reflecting the impacts of the economic recession and yen appreciation.

Consolidated operating income of 117.2 billion yen represented a notable increase of 367.4 billion yen against the previous period. Factors contributing to this included a return to profit in the Semiconductor Business, reflecting a strong performance in memories; the achievement of a high level of profit in the Social Infrastructure Business; and reductions in expenditure on fixed costs of 430 billion yen. This figure was 130 billion yen more than originally targeted, and was due to progress in implementing the Action Programs to Improve Profitability and results obtained from promoting systematic structural reform.

Overseas sales increased from the previous period by 79.4 billion yen to 3,503.1 billion yen, with the result that overseas sales now account for 55% of total sales.

3 tal Prdut Seqe Mobile Communications Company

-Visual Products Company qF President and CEO Storage Products Company S

Digital Products and Network Company Toshiba TEC Corporation Corporate Divisions Elcroi Deice emn Semiconductor Company Toshiba Mobile Display Co., Ltd Power Systems Company

-ransission-Distribuition C Industrial Systems Company-Social Infrastructure Systems Company Toshiba Elevator and Building Systems Corporation Toshiba Solutions Corporation Toshiba Medical Systems Corporation Home Appiace Segment (As of April 1, 2010)

Toshiba Consumer Electronics Holdings Corporation 20

Sales by segment 8flosnscifyer Operating income (loss) by segment Bnfrroefyen) 258.4 6,343.5 2,5365 7,116.4 2,805.5 7,665.3 2,9512 6,654.5 2,467.5 6,381.6 240,6 158 20 9 18.0 18.7 9.7 24,.4 117.2

-250.2 131.

23.0 39 13.3 a5

~-4 3

-27.1 FY05 FY06 FY07 FY08 FY09 Eliminations of operating incomer (loss) among segments were 08 billion yen in FY2005,-2.3 billion yen in FY2006, 0,9 billion yen in FY2007, +0.6 billion yen in FY2008 and +1 5 billion yen in FY2009 FY05 FY06 FY07 343 FY08 FY09 315.8 Eliminations of sales among segments were 530 7 billion yen in FY2005, 5546 billion yen in FY2006, 599.6 billion yen in FY2007, 542.7 billion yen in FY2008 and -489.6 billion yen in FY2009.

• Digital Procucts U Social Infrastructure Others

• Electronic Devices U Home Appliances DJl(J I II r

IrJi "r

je 11: Slight Decrease in Sales and Operating Income in the Black Digital Products saw overall sales decrease by 103.9 billion yen to 2,363.6 billion yen The Visual Products business saw sales increase, mainly on a healthy performance by TVs in Japan. This reflected a high evaluation of product quality and performance, an improved brand image through successful promotions and advertising, and positive results from the ecu-point system, the Japanese government's program to stimulate domestic demand. The acouisition of Fujitsu's hard disk drive business also contributed to higher sales in the Storage Products business.The PC I,

I: Close to Flat Sales and a Significant Improvement in Operating Loss Electronic Devices saw sales decrease by 15.8 billion yen to 1,309 1 billion yen. The Semiconductor business recorded higher sales: sales in Memories rose, reflecting an improved supply and demand balance and price stability for NAND flash memories, and sales in Discretes were at the same level as a year earlier, compensating for lower sales in System LSls.The LCD business also saw a significant sales decline Social Infrastructure Segment: Slightly Lower Sales and Higher Operating Income Social Infrastructure saw overall sales decline by 93.3 billion yen to 2,302.9 billion yen. Nuclear Energy Systems posted healthy sales in respect of new plants overseas and maintenance and service, and the overall decline in segment sales primarily reflected a fall in orders in areas other than Nuclear Energy Systems Home Appliances: Lower Sales and Improved Operating Loss Home Appliances saw sales decrease by 94.5 billion yen to 579.8 billion yen. Sales in Air conditioning and Lighting Systems were affected by the decrease in housing ano building starts Declining consumption also brought lower sales to White Goods.

business saw lower sales, mainly due to the trend to low priced machines and changes in exchange rates Retail Information Systems and Office Equipment and Mobile Phones also saw lower sales Overall segment operating incorne (loss) improved by 275 billion yen to 13.3 billion yen and moved into the black.While the PC business's profitability suffered, due to the penetration of low priced machines and increases in the cost of parts, the Visual Products business and Storage Products business recorded higher operating income on higher sales ano success in cutting costs.

Overall segment operating income (loss) improved substantially by 299.0 billion yen to 24,2 billion yen The Semiconductor business saw a significant improvement and returned to profit, mainly reflecting the performance in Memories and System ISis, which saw higher sales, effective cost reductions, and an improved supply and demand balance and price stability that compensated for shifts in exchange rates The I CD business recorded a weak performance Segment operating income increased by 23.1 billion yen to 136.3 billion yen. Nuclear Energy Systems recorded higher operating income on increased sales, and the Medical Systerns business maintained high profitability Other businesses in the segment also secured operating incorne at the same level as a year earlier, mainly reflecting successful efforts to cut costs Ihe segment as a whole recorded an operating loss of 54 billion yen, an improvement of 21 7 billion yen compared with the previous year, and in the second fiscal half the segment returned to the black Most notable were the major improvement i) performance in White Goods, reflecting progress in cost reouctions, and the improvement in the I ighting Systems Business TOSHIBA Annual Report 2010 21

Buins Reie DLi 1

iicilts Segrfent 2,363 i6billion yen

(-103.9 billion yen, -4% vs FY2008)

The Visual Products and Storage Products businesses both saw improved sales, whilst the PC, Retail Information Systems and Office Equipment and Mobile Phones businesses all experienced negative impacts from the sluggish economy and declines in unit prices, causing the segment to record slightly lower revenue.

Is s

m l

1 3. 3 billion yen

(+27.5 billion yen vs FY2008)

The Visual Products and Storage Products businesses both coupled strong performances with effective cost reduction measures, compensating for the loss in the PC Business and securing an overall profit for the segment.

Percentage of sales in FY2005 Percentage of sales in FY2009 Sales Si ty, 34.4%

66' 2,951.2 2,805.5 2,536.5 2,467.5 2,363.6 FY05 FY06 FY07 FY08 FY09 Note-Ratio of net sales total prior to exclusion of tnter segment sales Operating income (loss)

Alon wýen Operating income ratio Capital expenditures (order basis)

RCd expenditures 20.9 158 15.0 13.3

-0.6

-14.2 FY05 FY06 FY07 FY08 FY09 46.8 48,2 48.3 39.7 19.0 FY05 FY06 FY07 FY08 FY09 118.5 118.3 108.3 FY05 FY06 FY07 102.2 80.8 FY08 FY09 22

In a move to reinforce the business constitution and operating efficiency of the Visual Products and Data Storage businesses, we divided the Digital Media Network Company, an in-house company, into two entities in April 2010. The Visual Products Company is now responsible for the Visual Products business, and the Storage Products Company takes control of the Storage Products business. At the same time, in order to enhance development and sales of new products that can meet diverse consumer needs, the PC & Network Company was renamed as the Digital Products &

Network Company.

hi 1 I (

The Visual Products Company directs differentiated technologies to LCD TVs for terrestrial digital broadcasts that fully anticipate market needs.

In FY2009, as the Japanese government's eco-point system helped to stimulate domestic demand, we significantly boosted unit sales of "REGZA" series LCD TVs and generated increased revenue and profit. Our share of the domestic flat screen TV market reached a new high, 21.4%* and second place, and our total global unit sales (including Japan) of LCD TVs climbed to the 10-million-unit level.

In Japan, we launched the "CELL REGZA" LCD TV integrating Toshiba Group's most advanced technologies, and we are developing and marketing Blu-ray Disc products to create a multiplier effect with LCD TVs. At the same time, we are improving our cost competitiveness by reorganizing our overseas production and concentrating parts procurement.

Moving forward, we will continue to improve our planning, purchasing and production systems, and thereby our competitive strength, and develop products that reinforce our earnings capability.

Share of unit sales of flat screen fVs of 10 inches and above (April 2009 March 2010 data). Source: GfK Japan nationwide survey of volume retail electronics stores.

Toshiba will make the most of a future of ubiquitous information networks, accessible anywhere at anytime, by developing and marketing mobile phones packed with cutting-edge technologies, particularly smartphones that offer easy access to the Internet.

In FY2009, a slow recovery and sluggish consumption, plus longer use of handsets by Japanese consumers, resulted in lower sales. We responded by halting domestic production in October 2009, shifting production overseas and promoting outsourcing, and secured a narrower operating loss.

The dynapocket IS02 cell-phone for au We announced a new smartphone with an approx. 129mm body, QWERTY keyboard, approx. 4.1 -inch touch-screen and OLED d splay High definition LCDTV "CELL REGZA 55X1" Launched in Japan in December 2009, the CFLL REGZA brings a whole range of new possibilities to television as we know it. Its high performance processor, the Cell Broadband Engine"', delivers high definition images using super-resolution technology, supports state of the art image processing using high speed software technology, and offers numerous recording, search and playback functions.

TOSHIBA Annual Report 20t0 23

Business Review I

I I

I I ~

Our hard disk drives (HDD) and optical disc drives (ODD) combine quality, functionality and reliability, and add value to the products in which they are integrated.

FY2009 saw demand recover at a brisk pace, particularly in the notebook PC market, and as unit sales increased so too did revenue and profit. In October 2009 we completed the acquisition of part of Fujitsu Ltd.'s HDD business, extending our sphere of business into the enterprise space.

Going forward, we will further strengthen the small form factor HDD business for notebook PCs and automotive, portable and digital consumer products, where we hold a commanding market share. Beyond this, we will meet the various needs of our customers with a wide variety of storage devices. These include products newly taken on from the transfer of Fujitsu's HDD business, particularly enterprise HDDs for servers and corporate storage systems.

We will also expand business and profit by integrating Toshiba's NAND Flash memory into solid state drives (SSD) for enterprise applications.

In this age of ubiquitous networks, the Digital Products and Network Company manufactures and markets products that include notebook PCs, servers, business telephone systems and industrial cameras. The company is dedicated to serving consumers and business by expanding the provision of products and services grounded in digital and network technologies.

In FY2009 the notebook PC market recovered in terms of unit sales, especially in overseas markets. In this environment we secured increased unit sales in Japan and overseas by providing a wide range of products, from netbooks to the Qosmio G Series of AV notebook PCs offering the world's fastest writing speeds to Blu-ray Discs. As a result we secured a 9.4% share of the global laptop market (the fourth largest)*,

and retained our firm grip and first place in the domestic market, where we led over-the-counter retail sales for the fourth year in a row.**

On the downside, the global trend to lower unit prices and the continuing shift to economy models reduced sales revenue. While we maintained strategies to reduce fixed costs and to bolster our presence in emerging markets, the effect of rising component prices took its toll and we posted an operating loss.

' As of February 2010. Source InDC

• • As of January 2010 SOurr(e BCN Storage for enterprise applications (High capacity 60068 HDD for use in companies)

Following the transfer of Fujitsu's business, we are strengthening our presence in storage devices for enterprise applications, such as servers. Alongside large capacity FIOD, we will look to accelerate the oevelopment of SSD that excel in low energy consumption and shockproof design The"Qosmio G Series"with high speed Blu-ray disc write capability (Picture shows a model for the Japanese market) 24

Electronic Devices Segment

-et income 1,309.

1billion yen "24.2billion yen

(-15.8 billion yen, -1% vs FY2008)

(+299.0 billion yen vs FY2008)

While the Semiconductor business generated The Semiconductor business improved higher sales, the LCD business saw a major decline, considerably and moved into the black, and the resulting in almost flat segment sales.

segment as a whole recorded an improved result.

Percentage of sales in FY200S Percentage of sales in FY2009 Sales H,,

a 1,738.5 1,657.3 1,388.1 1,324.9 1,309.1 FY05 FY06 FY07 FY08 FY09 RSD expenditures

,Bano mofye*r Note& Ratio of net sales total prior to exclusion of inter-segment sales Operating income (loss) fBdefonsroye' Operating income ratio 123.3 119.7

-74.1

-24.4 Capital expenditures (order basis)

(BRdfiomsofy'nr 429.6 436.5 336.1 248.5 85.6 FY05 FY06 FY07 FY08 FY09 The above includes Toshiba's investments n equity method affiliates such as Ilash Alliance, Lto 174.5 174.2 166.2 168.8 144.1 FY05 FY06 FY07 FY08 FY09

-323.2 i$

FY05 FY06 FY07 FY08 FY09 TOSHIBA Annual Report 2010 25

Business Review The Semiconductor Company comprises three business areas: memories, system LSI and discrete semiconductors. Main products include NAND flash memory (memory), digital imaging LSIs, analog ICs, CMOS sensors and ASICs (system LSI) and power devices and optical semiconductors (discrete semiconductors).

In FY2009, the semiconductor market left behind the severe slump in demand and inventory adjustment of the second half of FY2008. Increased demand for memories and stable NAND flash memory prices contributed significantly to memory sales. Although system LSI sales saw a full-year decline, economic stimulus packages in various countries and recovering demand in emerging countries pushed second half sales higher than for the same period a year earlier. Initially sluggish demand for discrete devices picked up in the second half, most notably in power devices and small signal devices, and full term sales matched the previous year. Overall, revenue increased in FY2009, and combined with cost reductions from restructuring to secure a return to operating profit. We also maintained our number three position in world semiconductor market share* in CY2009.

5SD for notebook PCs With demand expected to continu to grow, we are expanding OL NAND Flash memory line up The Semiconductor Company is promoting fundamental restructuring where necessary. The system LSI business restructured the front-end process at Kitakyushu Operations and other facilities and transferred back-end processes to a new joint venture. The discrete business now undertakes over 50% of back-end processes overseas and has improved cost competitiveness.

In addition, refinements in the development system have increased efficiency, reduced fixed costs and contained investment in manufacturing facilities. These measures are supporting the transition to a robust business capable of withstanding market fluctuations.

Alongside restructuring, we are also determined to promote business expansion, and have restarted investment in manufacturing facilities. While highly selective in each investment decision, we recognize the growth potential of the NAND flash market and decided in March 2010 to construct Fab 5 at Yokkaichi Operations.

Moving ahead, we will draw on our cutting-edge technology and ability to develop differentiated products, focus on optimizing investment efficiency and improving our market competitiveness, and "return to the path of sustained growth with profit."

• As of March 2010 Source Gartner Inc.

Power Devices - aiming for a bigger market share In 2009 we secured the second largest share in the power device market, and we are determined to achieve further growth e

(Photo Large scale power devices used to regulate motors in ir manufacturing plants and rolling stock)

A r O.

i

,a r 010 >ourc (oarrtrf*r Irc 26

Our low-temperature polysilicon thin-film transistor (TFT) technology brings vivid, high quality images and low energy consumption to small-and medium-sized displays for a broad market ranging from car navigation systems to smartphones.

FY2009 market recovery in automotive products was outweighed by continued shrinking demand for LCDs for mobile products and notebook PCs, falling prices and a strong yen, resulting in much lower sales. Effective cost reduction measures kept the operating loss at the same level as the year-earlier period.

In this environment, towards promoting accelerated decision making and speeding up fundamental structural reform,Toshiba purchased Panasonic Corporation's stake in the company, making Toshiba Mobile Display Co., Ltd. a 100%

owned subsidiary in April 2009. Since then, we have relocated production at Himeji Operations to Ishikawa Operations, and announced the end of production at TFPD Ltd., an affiliate, and the lease of its land and buildings to Nissha Printing Co., Ltd. In April 2010, we agreed to transfer our holding in AFPD Pte., Ltd., a production facility for LCD displays for PCs, to a subsidiary of Taiwan's AU Optronics Corporation.

Going forward, we will focus efforts and resources on potential growth areas-panels for mobile devices, automotive products and industrial-use products. We will also implement thorough cost cutting and restructuring.

A sluggish recovery in demand for electron tubes and devices, materials and parts and functional components, resulted in lower sales and a wider loss in FY2009.

In order to achieve synergies with business divisions of Toshiba Group and to build a system optimized for new business, the role of the Display Devices & Components Control Center, which functioned within the Electronic Devices Segment, was transferred to corporate control on April 1, 2010, as the newly established Materials and Devices Division. From the perspective of developing vital social needs and healthcare businesses, on April 1, 2010 we assigned our holding in Toshiba Electron Tubes & Devices Co.,

Ltd., which manufactures and markets electron tubes for medical and other purposes, to Toshiba Medical Systems Corporation.

Realizing production of LCD modules integrating LEDs with a 100-thousand hour life-span.

Our long life LED backlight saves energy and achieves the high reliability of 100,000 hours0 days <br />0 hours <br />0 weeks <br />0 months <br /> of operation. Its wide applications include industrial use display equipment, measuring equipment, medical instruments, personal digital equipment and high-definition TFT [CD moduies TOSHIBA Annual Report 2010 27

Buins Review Social Infrastructure Segment 2,302. 9 billion yen

(-93.3 billion yen, -4% vs FY2008)

The segment saw slightly lower sales, the result of the recession and a fall in orders, except in Nuclear Energy Systems, which saw increased sales in nuclear power plants overseas.

136.3billion yen

(+23.1 billion yen vs FY2008)

Increased revenue from the Nuclear Energy Systems business led to increased profit, and effective cost reducing measures in other businesses contributed to the segment as a whole continuing to maintain its high level of profit.

Percentage of sales in FY2005 Percentage of sales in FY2009

!I Note: Ratio of net sales total prior to exclusion of inter segment sales Sales l(&i.on,)fyern 2,419.0 2,396.2 2,302.9 2,067.7 1,882.3 FY05 FY06 FY07 FY08 FY09 Operating income (loss) lh~onsdyer' Operating income ratio i,

Capital expenditures (order basis) (wsi,*,isfyxn.

90.4 RED expenditures,*,ono-,,n RR~

• 887 136.3 131.3 82.0 75.4 96.8 76.5 SA.9 435.2 FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07 FY08 FY09 82.2 70.9 FY05 FY06 FY07.FY0 F84.8 FY07 FY08 FY09 28

Power Systems Company Our solutions for stable electricity supply cover nuclear, thermal and hydro power systems. The upgrade and maintenance of power plants in Japan provides us with a firm business base for expanding our overseas operations.

Yen appreciation impacted negatively on overseas projects in FY2009, but we nonethe ess generated increased sales, largely on orders for new nuclear power plants. Increased sales and cuts in fixed costs helped us to increase operating profit.

In the Nuclear Power Systems business, we began to construct two plants in China that will house the world's most advanced pressurized water reactors.* New engineering facilities at the Isogo Engineering Center in Yokohama, and in the United States*`' will support globalization of our business.

We are readying for anticipated global demand growth in thermal and hydro power generation by constructing a production facility for thermal power steam turbines and generators in India.` and by increasing capacity at our hydro power generation facility in China.`d We have also begun work on a pilot plant for a C02 separat on and capture system, a new eco-conscious business area.

Pilot plant CM 2 separation and capture plant, (Sigma Power Ariake Co. Ltd.'s Mikawa Power Plant)

Expectations are rising for a technology capable ot capturing and storing the CO emitted srom thermal power plants. Our pilot project aims to develop a low energy, amine absorbing hiu.id system capable of separating and collecting CO Going forward, we will continue our efforts to meet domestic demand for plant upgrades and maintenance services and to respond to overseas demand for new power plant, and will seek to contribute to solutions for mitigating climate change and achieving energy security.

• 1:Sanmen Nuclear Power Station, Zhejiang Province, ann Haiyang Nuclear Power Station, Shandong Province, China

'2. Charlotte, North Carolina

• 3 Tamil Naou, Chennai, In0 ia, a joint venture with inoal South West Group

• 4: Toshiba Hyoro Power (I-ang/hou) Co., Ito Transmission Distribution

• Industrial Systems Company Our transmission and distribution (T&D) systems assure stable electricity supply. Our industrial systems and components deliver broad support across manufacturing. We fuse advanced control and information technology in state-of-the-art railway transportation systems, in Japan and overseas. And we are responding to growing investment in the environment and infrastructure by moving into environmentally friendly businesses at the global level.

In FY2009, the recession and slow markets impacted on our results, especially in industrial systems. Despite cutting fixed costs and strengthening procurement, we recorded lower sales and profitability.

Under an MOU with an Indian state-owned corporation, we are considering a joint venture to manufacture and market our T&D equipment and systems. We are enlarging our smart grid business through a new dedicated organization.

Schematic representation of a smart grid Home Office Factory TOSHIBA Annual Report 2010 29

Buins Reie The solar photovoltaic systems business won a series of orders for large scale industrial-use plants, and we entered the residential market.

Anticipating demand growth, including electric vehicles, we began construction of Kashiwazaki Operations, a second facility for SCiBTM rechargeable batteries, in March 2010, in Kashiwazaki City, Niigata. Moving forward we aim to become one of the world's foremost eco companies.

Type HD300 hybrid locomotive (prototype)

The "environmentally friendly, clean locomotive," is a hybrid that uses a diesel engine in conjunction with rechargeable battery power, co-developed with Japan Freight Railway Company.

Social Infrastructure Systems Company The Social Infrastructure Systems Company provides the essential underpinnings of society and adds high value to the community with systems for buildings, airports, highways and river facilities; water and sewage treatment and environmental systems; broadcasting and transmission network systems; radio systems and security and automated systems.

In FY2009, the security and automated systems and the water and environmental systems businesses increased sales, but the social infrastructure and broadcasting and transmission network businesses saw sales decline. Success in cutting fixed costs resulted in higher operating profit.

We are driving forward facility solutions-the business of improving energy saving and functionality in buildings and facilities-by drawing on the collective strengths of Toshiba Group and collaborating with the Smart Facility Business Division, established in April 2010 under corporate control. Global demand for water is growing, and we are focusing on the water solutions business, including seawater desalination. We are also putting more resources into businesses that reduce burdens on the environment, including a pilot plant for a nano-carbon manufacturing system that uses forest resources. We aim to develop this into a fully fledged business.

Looking ahead, as we promote overseas expansion, we will contribute to a safer, better society with diversified solutions centering on water supply, the environment and energy saving systems.

Toshiba Elevator and Building Systems Corporation Toshiba Elevator and Building Systems Corporation brinqs world-class technologies to Solar photovoltaic systems Ukishima Solar Power Plant of Tokyo Electric Power Co., Inc. (provisional name)

We have combined our power system control technology and plant engineering expertise in a robust solar photovoltaic systems business.

We continue to win orders from utilities and industry, together with the residential business that we entered this year.

United Arab Emirates - State project, Al Reem Island Project Ninety-five elevators, two escalators, two moving walkways - a total of ninety-nine installations research & development, manufacturing, installation, maintenance, and modernization, and provides safe, reliable high quality products.

The FY2009 downturn reduced demand for new elevators in the domestic market, but the modernization business and Chinese market were stable. Sales and profit were sustained at roughly the same levels as for the previous year.

In Japan, we met a revised Building Standards Law with new products offering enhanced safety features. Overseas, we are strengthening marketing and engineering towards expanding business in China, Hong Kong, Malaysia and other Asian countries. We made Chevalier (HK) Limited, a company we invested in FY2008, a consolidated group company.

Looking ahead, we will meet demand for safe, environmentally friendly products in our domestic business, while overseas we will accelerate global expansion by utilizing business partners and development and manufacturing bases, particularly in China and other Asian countries.

Toshiba Solutions Corporation From consultation through to implementation and outsourcing, Toshiba Solutions Corporation supports clients in industry and business in developing optimal IT solutions.

The FY2009 downturn undermined private sector demand for solutions in manufacturing and distribution and for embedded software. Sales revenue declined, but cutting fixed costs and other measures maintained operating profit at the same level as the previous year.

Going forward we will utilize our capabilities to cultivate a cloud computing business that integrates and standardizes our product quality, technological capabilities and support strengths.

We will also bolster our sales force, enhance our ability to provide high quality solutions, expand sales and continue to strengthen our stable profit base.

Toshiba Medical Systems Corporation Toshiba Medical Systems Corporation delivers healthcare solutions globally by providing diagnostic imaging products such as CT, MRI, Ultrasound and X-ray, and medical IT systems.

In FY2009, the "Aquilion ONETM" CT scanner and X-ray vascular system with "Pure BrainTM,"

contributed to sales. However, the global market shrank due to governmental control of medical costs, and global recession and the strong yen resulted in lower sales and profit. In this tough business environment, we reduced fixed costs and strengthened our global headquarters by centralizing head offices in May 2009. Our new R&D Center in Japan also started operation, enhancing a global R&D structure that covers Japan, the U.S. and Europe.

We will continue development of patient friendly products that support customers in achieving more efficient operations. We aim to grow while contributing to global healthcare with reliable, high quality systems and services.

~The new R&D center which started operation in May 2009 TOSHIBA Annual Report 2010 31

Buins Reie Home Appliances Segment 57 9.8 billion yen

(-94.5 billion yen, -14% vs FY2008)

The economic downturn and unseasonable weather conditions contributed to lower sales in the home appliances, general lighting and air-conditioning businesses.

per ting income i

l [

s "5.

4 billion yen

(+21.7 billion yen vs FY2008)

The air-conditioning business worsened on markedly lower sales, but successes in cost cutting improved the performance of the home appliances business and general lighting business, and the segment saw a narrower operating loss.

Percentage of sales in FY200S 10.0%

Percentage of sales in FY2009 Sales (Hlhrl* o(yeb 8.4%

748.9 687.5 674.3 579.8 FY08 FY09 Note: Ratio of net sales total prior to exclusion of inter segment sales FY05 FY06 FY07 Operating income (loss) 8,i or,,fye Operating income ratio

• Capital expenditures (order basis) (B,iisofye,e RCD expenditures 9.7 2.7 3.9 0.4 0.5"

-4.0

-27.1 FY05 FY06 FY07 FY08 FY09 35.1 32.0 30.7 21.4 10.2 FY05 FY06 FY07 FY08 FY09 18.7 19.2 17.7 18.2 13.2 FY08 FY09 FY05 FY06 FY07 32

Toshiba Consumer Electronics Holdings Corporation The Home Appliances Segment-white goods, general lighting and air-conditioners-seeks to bring new value to peoples' lives and to help realize the "eco style" concept, whereby people live comfortable, environmentally aware lives. The competitive strength of the segment was enhanced by the May 2010 transfer of the residential air-conditioning business from Toshiba Carrier Corporation, to Toshiba Home Appliances Corporation whose main products are refrigerators and washing machines.

Our many environmentally conscious products excel in energy saving performance and comfort.

Since CY2004, our washing machines have led unit sales in the domestic over-the-counter market,*

and in December 2009 and January 2010 our high value-added, large capacity refrigerators were number 1 in that market.*2 Structural reforms to improve competitiveness have halved the number of production sites and cut development sites by one third. Going forward we will seek business expansion in Japan and the global market.

In general lighting, we ended 120 years of production of general-use incandescent light bulbs in March 2010. We are now upgrading and expanding our "E-CORE" series of energy-saving, long-life LED lighting products. In July 2009 we halved prices of LED light bulbs, and in October 2009 we introduced an LED bulb with a brightness of 810 lumens. Moving forward we will extend our line-up and secure further overseas expansion. In industrial lighting, we closed production facilities in Taiwan and France, and enhanced CCFL business by transferring domestic production to China and Korea.

In FY2009, we launched eco-friendly light commercial and residential air-conditioning products that excel in energy saving performance, and in November 2009 we introduced "ESTIA," an air-to-water C02 heat pump system (EcoCute). We will strive to strengthen our business foundation by enhancing proposal-making and engineering solution air-conditioning and hot water supply units.

• ].Source: GfK Japan nationwide survey of volume retail electronics stores.

• 2. Source: Toshiba

• 3.As of September 28, 2009. In terms of application of a field variable motor in a washing machine (Source: Toshiba)

LED Baselight LED Downlight Launch of the world's first` front-loading washer-dryer machine equipped with a variable field magnetic motor A convenience store lit with LED lighting (Three-F store in Yokohama City Government Office)

TOSHIBA Annual Report 2010 33

CSR Management

[SR Management Acting with unshakable integrity to help solve the issues faced by society As a basic management policy, Toshiba Group emphasizes prornotion o0 [SR (Corporate Social Responsibility) and supports the univei sal pt inciples of the United Nations Global Coiipact in respect of huLman rights, lciaor, the eivironment and anti-corruption. We seek to contribute to solations to social issnes by giving top priority to the lollowing policies in our business activitles.

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w KliCK in fill o'l ojinI eiI 11Cnco CS Establishing a position as one of the world's foremost eco-companies and contributing to the mitigation of global warming through our business activities The essence of Toshiba Group's CSR management is to contribute to solutions to social issues through our business activities.

We believe in and work for a future in which "people lead richer lives in harmony with the Earth."Toward realizing this goal, we developed "Toshiba Group Environmental Vision 2050."

Further, in order to establish a position as one of the world's foremost eco-companies, we are working to mitigate global warming through environmental solutions in three main areas -

products, business processes and technology, and through the worldwide promotion of the environmental brand "eco style." We also strive to contribute to the sustainable development of emerging and developing countries through the provision of stable power supply and medical equipment to meet the needs of a growing global population.

I Acting with unshakable integrity Toshiba Group has established a global presence, and in every country and region in which we operate, we promote development of our business activities with respect for the diversity of culture and customs. We believe that in order to continue to be trusted by our stakeholders, we should constantly act with unshakable integrity and meet our responsibilities to society. Toward achieving this, we accord the highest priority to human life and safety and to compliance as fundamental principles underpinning all of our business activities. In addition to providing education on the "Toshiba Group Standards of Conduct," which are based on the UN Global Compact's universal principles concerning human rights, labor, the environment and anti-corruption, we provide our employees with training on issues such as anti-trust law and information security. Furthermore, Toshiba Group procurement policy urges our suppliers to promote socially and environmentally conscious activities.

34

I Expanding CSR activities across the world We have implemented a 1.5 Million Tree-planting Project worldwide to mark the 150th anniversary of Toshiba in 2025. As of the end of March 2010 we had already planted around 770,000 trees in Japan and in other regions where we operate.

We also contribute to science and math education in various parts of the world. In Japan, we support the development of experiential science education programs in collaboration with an NGO, Real Science Education Institute. In North America, we have held the ExploraVision Awards (EVA), a science and technology contest, every year since 1990, in cooperation with the National Science Teachers Association (NSTA). To date, over 250,000 students have participated in the program. In China, in 2008, we initiated a contest for students in science and math programs at normal (teacher training) universities.

Many of our employees take part in these social contribution activities as volunteers and are instrumental in developing closer relations with the communities in which we work.

Evaluation of Toshiba's fiscal 2009 CSR activities Promoting the 1.5 Million Tree-planting project around the world supporung Norm America s iurgesi science education contest I Nam Evlato Evaluating bod DJSI (Dow Jones Sustainability Indexes)

Included in the Dow Jones Sustainability Index (DJSI), comprising around 300 sustainability leaders globally, for 10 consecutive years Dow Jones, U.S.

Corporate Sustainability Assessment "SAM Silver Class"award SAM, a Swiss SRI research company Corporate Social Performance Survey A (highest rank)

Public Resource Center, Japan Japan Corporate Governance Index Survey (2009)

I st Place (for three consecutive vears)

Japan Corporate Governance Research Institute, Inc.

Environmental Communications Awards Environmental Reporting Award (Environment Minister's Award)

Environmental TV Commercial Award (Ervironment Minister's Award)

Environmental Reporting Award (best award)

Sustainability Award (third prize)

Ministry of the Environment and others, Japan Environmental & Sustainability Report Awards Toyo Keizai Inc., Japan Environmental Management Level Survey 6th place Nikkei Inc., Japan TOSHIBA Annual Report 2010 35

Research C Development and Intellectual Property Research i Development and Intellectual Property oshlib(u GiarlIr[ 0i-1s to eturn to the pathi a t >ii s ined g!.tih irnd puirsues R{D to take ci lead in] the mnarket and to generate new dii ectioras with cinovaotile prodncts.

this is rfoalized hy comhining the power

)t Im(agination t1 0ntipa~ e aILare value reqlur ed hy our customers with stringent henchm*ai rking against top-level global peers, Outi cor0porate Ilaoratores arc the heart :i (,I system that locuses on iinovative teclnologaces and pwoducts that dehte the fl v, (or tale age while business gaoups and their development centers woik on pi*ac> a1 tei(atonlogies tor current aind near fiture products.

Reeac C Deveopmn I Activities in FY2009 Our R&D advances the achievement of management policies through technology development for the four business segments, and through innovation in nine new product areas, including rechargeable batteries, new lighting systems and smart grids. As severe economic conditions persisted in FY2009, expenditure on R&D was rolled back by 15% against FY2008, as part of the Action Programs to Improve Profitability that were announced in January 2009.

Technology organizations and development centers in business groups put a particular emphasis on essential technologies that underpin innovative and differentiated products; that promote the achievement of development platforms; and that make full use of Toshiba Group software development companies located overseas. These actions have boosted the efficiency of our R&D activities and reinforced our presence in growth markets. The corporate laboratories also take the lead in considering megatrends and carrying out R&D of technologies for innovative products, and make investments that will reinforce Toshiba's businesses and growth potential.

Major achievements in Research C Development

- Commercialization of the world's first* high definition LCDTV incorporating a high performance processor

- Commercialization of a 600GB capacity 2.5-inch hard disk drive for enterprise applications.

- Development of high density NAND flash memory based on leading-edge 32-nanometer process technology

- Development of the pEMS (Micro Energy Management System), which enhances the reliability of the smart grid system power supply and enhances control of power distribution and supply and demand

-Commercialization of an LED light bulb offering the industry's highest levels of luminance and efficiency

-Commercialization of the world's first** drum-type washing machine with dryer incorporating a variable speed magnetic motor As of October 2009, based on Toshiba research As of September 2009, based on Toshiba research 393.3 378.3 323.2 Digital Products Electronic Devices Social Infrastructure 205 186 135 Home Appliances/Others Research C development costs 372.4 (Billions of yen) 394.0 19/

` Y it)

I1-Y JI I-Y51N 36

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InelculPoert-I Intellectual Property Strategy Toshiba Group's intellectual property (IP) strategy interweaves with business growth and supports research & development, binding the three into one. It promotes sustained growth with steadily higher profit through measures resting on three pillars: patent applications, patent enforcement and IP management.

When making patent applications, we endeavor to focus on and select patents that support our overall business plan, and promote stringent selection and cost efficiency in applications for patents. In responding to the accelerating pace of globalization we intend to further increase our overseas applications, including applications in emerging markets. Our patent enforcement strategy makes practical use of IP to secure product differentiation and in licensing, and in doing so we seek to contribute to further increasing operating profit.

Toshiba's diverse leading-edge technologies continue to win high praise.The Japan Institute of Invention and Innovation acknowledged Toshiba's contributions to technology and industry development and at the 2009 National Commendation for Invention we received the following awards.

The Imperial Invention Prize Patent No. 3167351 High speed response overdrive method for low image-log liquid crystal display televisions The Invention Prize Potent No. 4090619 MR angiography method visualizing blood vessels without administration of contrast materials*

• Joint ownership with Toshiba Medical Systems Corporation Toshiba Group's Intellectual Property Strategy Research and Development Product and technology roodmop

- Starndordization strategy Patent Applcations Concentration of applications in priority areas

- Increasing number of overseas applications in line with business plan Patent Enforcement

- Carefully plan licensing to achieve specific objectives

- Ensure flexibility in business operations

- Maintain predominance

- Secure royalties that contribute to profit Business Operations

- Product and technology difierentiation

- Secure revenues from licensing

- Joint ventures and alliances Estoblish rnd extend overseas activities IP Management Group-based approach to IP management

- Risk management Notes on number of registered patents Upper lrgure indicates Toshiba ranking in number oa regmshered parertr

) "'

2nd 4th Ind 2nd 9th 06 Japan Based on PATOh IS research US.: Based on IFI data I

Jraan is LJ TOSHIBA Annual Report 2010 37 05 08 01

Corporate Governance Corporate Governance 1)Shlba (C~fltlt) pr(MICAPS corpoicitp (jovewan hoML~I sedJ oni tho lundlw~ieiitol [)(',Iihy ond o)bJe9o tV&3 ~iu eiil Iclnqi~(

rn(11 icmjýrnnt OfIiciency, lUcr&ThsIi(J ttimlul ?hy, on~d Tshb' Goenac System Toshiba adopted the Company with Committees system as a means to improve management mobility, enhance management supervisory functions, and increase transparency. The board now has 14 directors, and seven of them are non-executive officers; four outside directors, the chairman of the board, and two full-time auditors from within Toshiba Group. The three committees all have a majority of outside directors, and the Nomination Committee and Compensation Committee are both chaired by outside directors.

All four outside directors are independent directors, as set out under the Securities Listing Regulations of the Tokyo Stock Exchange.

Corporate Governance Structure General Meeting of Shareholders Appointment Proposal and Dismissall Report

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Nominations of Candidates for Board of Directors/

Directorships Directors Audit Appointment and Dismi Report Supervision Report

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[President C CEO Executive Officers Divisions Audit Audit Corpor.te Audit Division Nomination Committee I :i....

.................. t..............

Audit Compensation Committee Committee Decisions on Compensation of Directors and Executive Officers J

Cooperation Si fHA,, ( (0

'W IA F i vR[`IAN( l' IIII iA IV,HE Q. Please explain Toshibo's attitude toward corporate governance, and areas where you think you can make a contribution as an outside director.

A. I feel that Toshiba's management is willing to take the initiative in carrying out thorough compliance measures and ensuring highly transparent management.

Through my experience as a judge and in private practice, I believe that simply maintaining internal company regulations is not enough for effective corporate governance and compliance with laws and regulations: Toshiba must improve the awareness and sensitivity of each and every employee, and establish a flexible system that organically binds together every employee. For this to happen, the ability to communicate with one another must be improved. As Toshiba promotes further globalization, I will propose various measures to effectuate a compliance system that adapts to a changing business environment and achieves success.

UUtOIUU UIlLiLUI, Audit Committee Member Takeo Kosugi 38

Toshiba has established the Toshiba Group Standards of Conduct (SOC), which clearly define the values and codes of conduct that must be observed by all officers and employees. The company also requests all group companies, in Japan and overseas, to adopt the SOC.

Toshiba prioritizes respect for life and safety and compliance with laws and regulations.

Education programs have been put in to assure that all employees thoroughly understand and observe the SOC.

In addition, we have also introduced a corporate level organization that is charged with assessing the effectiveness of internal controls over financial reporting, as required by the Financial Instruments and Exchange Law of Japan.

Responding to this initiative, the in-house companies and their affiliates around the world have established parallel systems.

In order to assist the Audit Committee in the performance of its duties, we have established an Audit Committee Office, with a staff of around five.

All personnel transfers to and from the Audit Committee Office are discussed in advance with the members of the Audit Committee.

The Corporate Audit Division holds advance discussions with the Audit Committee on each year's audit policy and plans. It also holds semi-monthly liaison meetings with the Audit Committee for pre-audit discussions and to share information on the divisions subject to audit.

The Corporate Audit Division carries out on-site inspections and reports its results to the Audit Committee. However, if it deems it necessary, the Audit Committee has the right to carry out its own on-site inspections. Furthermore, in addition to receiving explanations from independent auditors (CPA) on their audit plans at the beginning of each fiscal year, the Audit Committee can also request reports on the status of audits during the course of each term, and explanations and reports on end-of-year audits, as necessary.

In order to secure highly competent management personnel, and to ensure effective execution of duties by directors and executive officers, Toshiba maintains the compensation policy summarized below.

Directors' compensation is based on their duties and full-time or part-time status. The executive officer's compensation comprises basic compensation based on the executive officer's rank and service compensation based on duties as an executive officer. Some 40-45% of the service compensation will fluctuate from zero to double, according to the year-end performance of the Company or division for which the executive officer is responsible.

In June 2006, the Compensation Committee abolished the system for granting retirement benefits to directors and executive officers.

With the goal of protecting and enhancing the Company's corporate value and the common interests of its shareholders, Toshiba has implemented countermeasures against large-scale acquisitions of shares in the Company.

For more information visit:

www.toshiba.co.jp/about/ir/en/news/20090508_-.pdf TOSHIBA Annual Report 2010 39

Directors and Executive Officers Directors Atsutoshi Nishida Norio Sasoki Chairman of the Board and Director Director Nomination Committee Member Compensation Committee Member Compensation Committee Member Masashi Muromachi Director Fumio Muraoka Masao Namiki Director Director Ichiro Toi Director Executive Officers Representative Executive Officer President and Chief Executive Officer Norio Sasaki Representative Executive Officers Corporate Senior Executive Vice Presidents Masashi Muromachi Fumio Muraoka Masao Nomiki Ichiro Tai Yoshihiro Moeda Executive Officers Corporate Executive Vice Presidents Kazuo Tanigawa Yoshihide Fujii Toshinori Moriyosu Hidejiro Shimomitsu Hisao Tanaka Hideo Kitamura Shozo Saito Toshiharu Watanabe 40

Yoshihiro Maeda Kazuo Tanigawa Director Director Shigeo Koguchi Hiroshi Horioka Director Director Chairman ofAudit Committee Audit Committee Member Kiichiro Furusawa Outside Director Chairman of Compensation Committee Audit Committee Member Executive Officers Corporate Senior Vice Presidents Ryuichi Nakata Yasuharu Igarashi Masahiko Fukakushi Kazuyoshi Yamamori Akira Sudo Kiyoshi Kobayashi Toshio Masaki Masaaki Oosumi Hiroshi Hiraboyashi Outside Director Audit Committee Member Compensation Committee Member Takeshi Sasaki Takeo Kosugi Outside Director Outside Director Chairman of Nomination Nomination Committee Member Committee Audit Committee Member Compensation Committee Member Executive Officers Corporate Vice Presidents Koji Iwama Keizo Tani Shoji Yoshioka Kosei Okamoto Tsutomu Sanada Hiroshi Saito Masakazu Kakumu Takaaki Tanaka Yasuhiro Shimura Munehiko Tsuchiya Masazumi Yoshioka Hiroshi Igashira Hironobu Nishikori (As of June 23,2010)

TOSHIBA Annual Report 2010 41

Corporate History n.t.

F.. t July 1875 Telegraph equipment 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.

June 1904 Shibaura Engineering Works Co., Ltd.established.

Sep. 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.

Apr. 1950 Absorbed Toshiba Rolling Stock Co., Ltd., expanding rolling stock products.

Nov. 1955 Absorbed Dengyo-sha Prime Mover Works Ltd.

Nov. 1961 Absorbed Ishikawajima-Shibaura Turbine Co., Ltd, expanding line-up of turbines.

Oct. 1974 Transferred plastic and insulating materials business to Toshiba Chemical Corp. (now KYOCERA Chemical Corp.)

July 1978 English official trade name of the company became "Toshiba Corporation."

Apr. 1984 Japanese official trade name of the company became "Toshiba Corporation."

Feb. 1989 Transferred lighting system business toToshiba Lighting & Technology Corp.

Dec.

Absorbed Nippon Atomic Industry Group Co., Ltd.

June 1998 Introduced corporate executive officer system.

Jan. 1999 Transferred plain paper copier business to Toshiba TEC Corp.

Apr.

Introduced in-house company system.

Transferred air-conditioning system business to Toshiba Carrier Corp.

Jan. 2001 Transferred elevator and escalator business to Toshiba Elevator and Building Systems Corp.

July Changed registered headquarters from Kawasaki City, Kanagawa, to Minato Ward, Tokyo.

Aug.

Announced "01 Action Plan."

Apr. 2002 Transferred LCD business to Toshiba Matsushita Display Co., Ltd. (now Toshiba Mobile Display Co., Ltd.)

Oct.

Transferred transmission & distribution system business to TM T&D Corp.

Mar. 2003 Transferred CRT business to MT Picture Display Co., Ltd.

Jun.

Adopted the Company with Committees system.

Oct.

Transferred home appliances business to Toshiba Consumer Marketing Corp. (now Toshiba Consumer Electronics Holdings Corp.) and Toshiba Home Appliances Manufacturing (now Toshiba Home Appliances Corp.).

Transferred IT solution business to Toshiba Solution Corp.

Transferred medical systems business to Toshiba Medical Systems Corp.

Transferred materials and components business to Toshiba Materials Co., Ltd.

Transferred CRT business to Toshiba Electron Tubes & Devices Co., Ltd.

Transferred electric equipment for manufacturing plants business toTMA Eectrc Coro. (nowTosh ba Mitsu bshi-Electric Industrial Systems Corp.)

Jan. 2004 Transferred communication systems business to Toshiba Communications Systems Inc.

Joined the United Nations Global Compact.

Mar.

Transferred optical disc system business toTS Storage Technology Corp. (now Toshiba Samsung Storage Technology Corp.)

May Absorbed Kawasaki Estate Management Corp.

Apr. 2005 Acquired T&D business from TM T&D Corp.

Oct. 2006 Acquired Westinghouse Group.

Jan, June Oct.

Dec.

2009 Announced "Action Programs to Improve Profitability."

Raised funds by public offering for the first time since 1981.

Acquired HDD business from Fujitsu Ltd.

Transferred electricity, gas and water meter business to Toko Meter Design Corp. (now Toshiba Toko Meter Systems Co., Ltd.)

42

Data Section Consolidated Financial Summary 44 Consolidated Balance Sheets 46 Consolidated Statements of Operations 48 Quarterly Performance Highlights 48 Consolidated Statements of Cash Flows 49 Industry Segment Performance 50 Geographic Segment Performance 51 Long-term Debt 51 Organization Chart 52 Corporate Governance 54 Consolidated Subsidiaries and Affiliated Companies Accounted for by the Equity Method 57 Stock/Shareholder Information 58 Major indices of the aata Section have been compiled chronologically based on the fiscal years. For the details of financial information for the year ended March 31, 2010, please refer to the "Financial Review 2010."

TOSHIBA Annual Report 2010 43

Consolidated Financial Summary Year ended March 31 2000 2001 2002 2003 Net Sales, Operating Income (Loss) and Net income (Loss)

Attributable to Shareholders ofToshiba Corporation Net sales Y5,749.4 Y5,951.4 Y5,394.0 V5,655.8 Cost of sales 4,254.4 4,323.5 4,070.1 4,146.5 Selling, general and administrative expenses 1,394.0 1395.7 1,437.5 1,393.8 Operating income (loss) 101.0 232.1 (113.6) 115.5 ncome ýIoss) from contnuing opert ons, before income taxes and noncontrol no interests (392) 197.5 (374.2) 56.6 Income taxes (4.5) 96.1 (113.9) 48.9 Net income (loss) attributable to shareholders of Toshiba Corporation (32.9) 96.2 (254.0) 18.5 EBITDA*

352,9 578.4 (18.1) 341.7 Profitability Ratios Operating income ratio (%)

1.8 3.9 (2.1) 210 Return on sales (%)

(0.6) 1.6 (4.7) 0.3 Cost of sales ratio (%)

74.0 72.6 75.5 73.3 Selling, general and administrative expenses ratio (%)

24.2 23.5 26.6 24.6 Total Assetsotal Equity Attributable to Shareholders ofToshiba Corporation and Interest-bearing Debt Total assets 5,780.0 5,724.6 5,407.8 5,238.9 Total Equity Attributable to Shareholders of toshiba Corporation 1,060,1 1,047.9 705.3 571.1 Interest-bearing debt 1,967.3 1,787.6 1,818.5 1,653.4 Long-term debt 1,121.9 990.3 888.7 882.0 Short-term debt 845.4 797.3 929.8 771.4 Shareholders' equity ratio (%)1 18.3 18.3 13.0 10.9 Debt/equity ratio (Times)*'

1.9 1.7 2.6 2.9 R&D, Capital Expenditures and Depreciation R&D expenditures Capital expenditures (Property, plant and equipment)

Depreciation (Property, plant and equipment)

Return Indicators Return on investment (ROI) (%).4 Return on equity (ROE) (%).5 Return on total assets (ROA) (%)*"

Efficiency Indicators Inventory turnover (]imes)*

Total assets turnover ( fimes)*8 Inventory turnover (Days)*'

Cash Flows Net cash provided by (used in) operating activities Net cash used in investing activities Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at end of year Liquidity Indicators Debt/cash flow ratio (%)*'

Interest coverage ratio (Times)`

Corporate Value Free cash flow`"

Market capitalization*`

Other Data Number of employees (Consolidated) (Thousands)

Number of employees (Non-Consolidated) (Thousands)

Ratios of Consolidated to Non-Consolidated Performance (limes) (Net sales) 334.4 298.5 329.6 3.1 (3.0)

(0.6) 6.27 0.97 58.25 435.9 (293.2)

(158.7)

(16.6)

(32.5) 465.2 15.23 2.8 142.8 3,367.1 191 58 1.6 327.9 269.5 308.3 7.6 9.1 1.7 7.18 1.03 50.81 453.6 (176.7)

(285.6) 31.1 22.4 487.6 23.22 6.1 276.9 2,356.3 188 53 1.6 326.2 348.2 311.2 (4.0)

(29.0)

(4.6) 7.13 0.97 51.19 149.2 (325.6) 53.5 5.8 (117.2) 370.4 4.01 (3.3)

(176.4) 1,815.5 176 46 1.7 331.5 230.5 237.9 4.5 2.9 0.3 8.55 1.06 42.69 271.6 (148.0)

(159.8)

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(43.3) 327.1 16.09 5.3 123.6 1,007.6 166 40 1.7 U

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(Billions of yen) 2004 2005 2006 2007 2008 2009 2010 V5,579.5 Y5,836.1 Y6,343.5 Y7,1 16.4 Y7,665.3

)6,654.5 V6,381.6 4,075.3 4,296.6 4,659.8 5,312.2 5,756.6 5,366.1 4,922.2 1,329.6 1,384.8 1,443.1 1,545.8 1,662.3 1,538.6 1,342.2 174.6 154.8 240.6 258.4 246.4 (250.2) 117.2 137.3 115.0 182.3 327.1 265.0 (279.3) 25.0 102.8 57.5 91.8 157.0 113.4 54.3 29.7 28.8 46.0 78.2 137.4 127.4 (343.6)

(19.7) 406.9 378.1 461.1 651.9 685.0 104.2 359.7 3.1 2.7 3.8 3.6 3.2 (3.8) 1.8 0.5 0.8 1.2 1.9 1.7 (5.2)

(0.3) 73.0 73.6 73.5 74.6 75.1 80.6 77.1 24.6 23.7 22.7 21.7 21.7 23.1 21.0 4,462.2 4,571.4 4,727.1 5,932.0 5,935.6 5,453.2 5,451.2 755.0 815.5 1,002.2 1,108.3 1,022.3 447.3 797.4 1,199.5 1,111.4 917.5 1,158.5 1,261.0 1,810.7 1,218.3 701.9 683.4 611,4 956.2 740.7 776.8 960.9 497.6 428.0 306.1 202.3 520.3 1,033.9 257.4 16.9 17.8 21.2 18.7 17.2 8.2 14.6 1.6 1.4 0.9 1.0 1.2 4.0 1.5 336.7 348.0 372.4 394.0 393.3 378.3 323.2 227.3 318.4 338.8 375.3.

465.0 357.1 209.6 223.9 215.8 228.6 259.9 340.9 308.7 254.0 7.8 7.4 11.6 11.1 9.4 (9.6) 4.8 4.3 5.9 8.6 13.0 12.0 (46.8)

(3.2) 0.6 1.0 1.7 2.6 2.1 (6.0)

(0.4) 8.87 9.13 9.65 9.71 9.28 8.27 8.21 1.15 1.29 1.36 1.34 1.29 1.17 1.17 41.17 40.00 37.83 37.61 39.35 44.15 44.44 322.7 305.5 501.4 561.5 247.1 (16.0) 451.4 (189.5)

(243.1)

(303.4)

(712.8)

(322.7)

(335.3)

(252.9)

(132.7)

-(92.3)

(235.3) 154.8 46.6 478.5 (277.9)

(8.3) 5.6 13.2 34.9 (31.7)

(32.0) 3.0 (7.8)

(24.2)

(24.1) 38.4 (60.7) 95.2 (76.4) 319.3 295.0 270.9 309.3 248.6 343.8 267.4 19.47 24.87 32.77 41.46 41.96 0.40 18.44 8.9 7.6 10.3 8.9 6.9 (6.8) 3.5 133.2 62.4 198.0 (151.3)

(75.6)

(351.3) 198.5 1,519.4 1,442.1 2,201.8 2,533.4 2,155.9 822.4 2,046.8 161 165 172 191 198 199 204 32 31 32 32 33 34 35 1.9 2.1 1.9 2.0 2.1 2.1 1.9 has been reclassified to conform with the current classification.

I EBITDA = Income (loss) from continuing operations, before income taxes and noncontrolling interests +,Interest + Depreciation

• 2 Shareholders' equity ratio ()=Total equity attributable to shareholders of Toshiba Corporation!

Total assets x 100

-3 Debt / equity ratio (Times) = Interest-bearing debt / Total equity attributable to shareholders of Toshiba Corporation

• 4 Return on investment (ROI) (O) = Dperating income (loss) / (Average total equity attributable to shareholders of Toshiba Corporation + Average total equity attributable to noncontrolling interests + Average interest-bearing debt) x 100

-5 Return ott equity (POE) (%) = Net income (loss) attributable to shareholders of Toshiba Corporation / Average total equity attributable to shareholders of Toshiba Corporation x 100 h Return on total assets (ROA) (%) = Net income (loss) attributable to shareholders of Toshiba Corporation / Average total assets x 100

'7 Inventory turnover (Times) = Net sales / Average inventory

'8 Total assets turnover (limes) = Net sales / Average total assets

'9 Inventory turnover (Days) = 365 / Inventory turnover

'I0 Debt / cash flow ratio (%) = (Net income (loss) attributable to shareholders of Toshiba Corporation + Depreciation and amortization) / Average interest-bearing debt x 100

'II Interest coverage ratio (limes) = (Operating income (loss) + Interest and dividends) /

Interest expense

'12 Free cash flow = Net cash provided by operating activities + Net cash used in investing activities M13 Market capitalization = Common stock price (Year-end / Yen / Close) x Total issued shares TOSHIBA Annual Report 2010 45

Consolidated Balance Sheets (Millions of yen)

March 31 ASSETS Current Assets:

Cash and cash equivalents Notes and accounts receivable, trade Notes Accounts Allowance for doubtful notes and accounts Inventories n~fPrrPcl tSy nssptq 2006 2007 2008 2009 2010 Y 270,921 Y 309,312 Y 248,649 Y 343,793 V 267,449 101,208 1,181,943 (28,671) 664,922 146,655 106,395 1,295,808 (30,599) 801,513 138,714 80,312 1,253,108 (21,41 7) 851,452 148,531 64,260 1,038,396 (19,270) 758,305 141,008 44,122 1,160,389 (20,112) 795,601 134,950 Prepaid expenses and other current assets 309,638 370,064 368,747 394,139 379,207 2,646,616 2,991,207 2,929,382 2,720,631 2,761,606 Long-term Receivables and Investments:

Long-term receivables 18,883 19,329 7,423 3,987 3,337 Investments in and advances to affiliates 228,402 240,249 321,166 340,756 366,250 Marketable securities and other investments 240,456 250,536 264,149 190,110 253,267 487,741 510,114 592,738 534,853 622,854 Property, Plant and Equipment:

Land 161,503 156,445 128,210 98,116 105,663 Buildings 1,084,433 1,146,350 1,160,549 996,709 1,016,520 Machinery and equipment 2,402,752 2,594,284 2,598,042 2,698,626 2,508,934 Construction in progress 64,345 104,612 215,937 114,617 97,309 3,713,033 4,001,691 4,102,738 3,908,068 3,728,426 Less: Accumulated depreciation (2,536,483)

(2,681,489)

(2,770,560)

(2,818,489)

(2,749,700) 1,176,550 1,320,202 1,332,178 1,089,579 978,726 Other Assets:

Deferred tax assets 237,334 211,336 285,757 352,948 355,687 Other 178,872 899,103 795,582 755,214 732,300 416,206 1,110,439 1,081,339 1,108,162 1,087,987 Y4,727,113 Y5,931,962 Y5,935,637 Y5,453,225 V5,451,173 For more information, please visit our IR website at http://www.toshiba.co.,p/about/ir/en/flnance/indexhtm 46 I

(Millions of yer 2010 March 31 LIABILITIES AND EQUITY Current Liabilities:

Short-term borrowings Current portion of long-term debt Notes and accounts payable, trade Accounts payable, other and accrued expenses Accrued income and other taxes Advance payments received Other current liabilities Long-Term Liabilities:

Long-term debt Accrued pension and severance costs Other liabilities 2006 V 142,530 163,558 1,100,622 411,220 48,725 144,362 397,953 2,408,970 2007 V 71,626 130,703 1,365,231 508,888 77,625 229,635 427,583 2008 2009 Y 257,831 262,422 1,224,259 516,046 89,763 248,280 387,386 V 747,971 285,913 1,003,864 366,219 38,418 268,083 357,305 V 51,347 206,017 1,191,885 375,902 42,384 317,044 303,866 2,811,291 2,985,987 3,067,773 2,488,445 611,430 474,198 72,025 956,156 540,216 191,263 740,710 634,589 182,175 776,768 719,396 130,007 960,938 725,620 148,548 1,157,653 1,687,635 1,557,474 1,626,171 1,835,106 Equity attributable to shareholders of Toshiba Corporation Common stock 274,926 274,926 280,126 280,281 439,901 Additional paid-in capital 285,743 285,765 290,936 291,137 447,733 Retained earnings 570,080 681,795 774,461 395,134 375,376 Accumulated other comprehensive loss (126,509)

(131,228)

(322,214)

(517,996)

(464,250)

Treasury stock, at cost (2,075)

(2,937)

(1,044)

(1,210)

(1,305) 1,002,165 1,108,321 1,022,265 447,346 797,455 Equity attributable to noncontrolling interests 158,325 324,715 369,911 311,935 330,167 Commitments and contingent liabilities V4,727,113 V5,931,962 V5,935,637 Y5,453,225 V5,451,173 (Milionsl Ofyen)

March 31 2006 2007 2008 2009 2010 Accumulated Other Comprehensive Loss:

Unrealized gains on securities Foreign currency translation adjustments Minimum pension liability adjustment Pension liability adjustment Jnrealized gains (losses) on derivative instruments Y

57,246 (32,019)

(151,351)

(385)

V 80,801 (21,938)

V 53,461 (117,552)

Y 21,639 (222,773)

(314,578)

(2,284)

Y 73,226 (231,467)

(303,348)

(2,661)

(190,118)

(256,839) 27 (1,284)

TOSHIBA Annual Report 2010 47

Consolidated Statements of Operations NMiIhors of yeren Year ended March 31 2006 2007 2008 2009 2010 Sales and Other Income:

Net sales Y6,343,506 Y7,116,350 Y7,665,332 Y6,654,518 V6,381,599 Subsidy received on return of substitutional portion of Employees' Pension Fund Plan 4,085.

Interest and dividends 1 3485 24,375 26,863 19,432 7,980 Equity in earnings of affiliates 39,300 28,023 9,596 22,385 Other income 49,605 155,270 212,827 146,923 63,103 6,410,681 7,335,295 7,933,045 6,830,469 6,475,067 Costs and Expenses:

Cost of sales 4,659,795 5,312,179 5,756,603 5,366,087 4,922,237 Selling, general and administrative 1,447,186 1,545,807 1,662,336 1,538,617 1,342,171 Interest 24,601 31,934 39,825 33,693 35,735 Equity in losses of affiliates 300 Other expense 96,470 118,244 209,232 171,324 149,962 6,228,352 7,008,164 7,667,996 7,109,721 6,450,105 Income (loss) from continuing operations, before income taxes and noncontrolling interests 182,329 327,131 265,049 (279,252) 24,962 Income Taxes:

Current 57,051 88,911 102,740 52,308 52,108 Deferred 34,781 68,113 10,635 2,015 (22,420) income (oss) from continring operations, before noncontrorling interests 90,497 1 70,107 151,674 (333,575)

(4,726)

Income (loss) from discontinuing operations, before noncontrolling interests (2,462)

(17,002)

(9,496)

(13,779)

(567)

Net income (loss) before noncontrolling interests 88,035 153,105 142,178 (347,354)

(5,293)

Less: Net income (loss) attributable to noncontrolling interests 9,849 15,676 14,765 (3,795) 14,450 Netincome(loss)attributabletoshareholdersofToshibaCorporation Y 78,186 Y 137,429 Y 127,413 Y (343,559)

V (19,743)

• Net of settlement loss of V5,045 million Quarterly Performance Highlights Milhons Of yenp 1 st quarter 2nd quarter 3rd quarter 4th quarter Year ended March 31 2009 2010 2009 2010 2009 2010 2009 2010 Net sales Y1,618,101 V1,339,679 Y1,876,601 V1,616,027 Y1,488,305 V1,578,408 V1,671,511 V1,847,485 Operating income (loss)

(22,875)

(37,590) 4,384 40,278 (157,676) 10,221 (74,019) 104,282 Net income loss) attrib,,table to shareholoers of Toshiba Corporation (11,605)

(57,800)

(26,849) 94 (121,143)

(10,634)

(183,962) 48,597 Basic earnings (loss) per share attributable to shareholoers of Toshiba Corporation (Y)

(3.59)

(16.58)

(8.30) 0.02 (37.44)

(2.51)

(56.85) 11.47 For more information, please visit our IR website at http://www.toshibaco.ip/about/ir/en/fin)ance/indux hrm 48

Consolidated Statements of Cash Flows md,iIoný of yei, Year ended March 31 2006 2007 2008 2009 2010 Cash Flows from Operating Activities:

Net income (loss) before noncontrolling interests Adjustments to reconcile net income (loss) before noncontrolling interests to net cash provided by (used in) operating activities Depreciation and amortization Provisions for pension and severance costs, less payments Deferred income taxes Equity in (earnings) losses of affiliates, net of dividends (Gain) loss from sales, disposal and impairment of property, plant ann equipment, intangible assets and securities, net (Increase) decrease in notes and accounts receivable, trade (Increase) decrease in inventories Increase (decrease) in notes and accounts payable, trade Increase (decrease) in accrued income and other taxes Increase (decrease) in advance payments received Other Net cash provided by (used in) operating activities Cash Flows from Investing Activities:

Proceeds from sale of property, plant and equipment Proceeds from sale of securities Acquisition of property, plant and equipment Purchase of securities (Increase) decrease in investments in affiliates Other Net cash used in investing activities Cash Flows from Financing Activities:

¥ 88,035 V153,105 Y142,178 Y(347,354)

V (5,293) 254217 4809 33,091 20,023 18,070 (86,420) 31,927 90,482 816 (7,121) 53,497 501,426 292,875 (22,720) 56,444 (12,579) 380,160 (19,035) 10,635 (13,340)

(79,416)

(146,369) 349,764 (13,733)

(7,843) 1,215 (34,587) 186,676 60,517 (182,501)

(51,647) 27,018 (3,536)

(16,011) 298,998 10,985 (22,809)

(11,566) 32,236 (98,347)

(35,554) 176,443 3,899 58,592 43,861 451,445 (51,620)

(82,926) 220,619 23,353 29,459 34,880 561,474 29,138 (64,688)

(115,047) 18,283 47,617 (22,404) 247,128 81,503 12,379 (316,702)

(14,940)

(20,872)

(44,753)

(303,385) 112,015 9,586 (376,707)

(13,508) 51,044 (495,212).

(712,782) 212,064 2,805 (407,692)

(82,898)

(41,367)

(5,614)

(322,702) 210,653 4,035 (477,720)

(29,609)

(43,399) 732 (335,308) 36,119 6,931 (215,876)

(14,316) 8,288 (74,068)

(252,922)

Proceeds from long-term debt Repayment of long-term debt Increase (decrease) in short-term borrowings, net Dividends paid Purchase of treasury stock, net Other Net cash provided by (used in) financing activities Effect of Exchange Rate Changes on Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Supplemental Disclosure of Cash Flow Information:

Cash paid during the year for Interest Income taxes 108,393 (250,884)

(60,638)

(22,808)

(481)

(8,880)

(235,298) 13,175 (24,082) 295,003 V270,921 467,717 (199,570)

(81,305)

(30,431)

(841)

(774) 154,796 34,903 38,391 270,921 Y309,312 190,524 (283,013) 187,321 (46,406)

(1,138)

(715) 46,573 (31,662)

(60,663) 309,312 Y248,649 337,415 (275,976) 469,026 (50,350)

(345)

(1,318) 478,452 (31,989) 95,144 248,649 Y343,793 397,181 (303,748)

(680,346)

(5,728)

(109) 314,889 (277,861)-'

2,994 (76,344) 343,793 V267,449 Y 24,538 Y 30,892 Y 40,356 Y 35,004 V 31,036 Y 62,925 Y 59,272 Y107,431 Y140,923 V 4,487 Includes the acquisition of Westinghouse Group in the amount of ¥46,338 million

• 2 Includes the proceeds from stock offering of ¥317,541 million TOSHIBA Annual Report 2010 49

Industry Segment Performance (Billions of yen)

Year ended March 31 2006 Change (%)

2007 Change (%)

2008 Change (%)

2009 Change (%)

2010 Change (%)

Digital Products Net sales

¥2,536,5 14.0 Y2,805.5 10.6 V2,951.2 5.2 Y2,467.5 (16.4)

Y2,363.6 (4.2)

Share of net sales N%)

Operating income (loss)

Operating income ratio (%)

Number of employees (Thousands)

R&D expenditures Depreciation Capital expenditures Total assets Electronic Devices Net sales Share of net sales 1%)

Operating income (loss)

Operating income ratio (%)

Number of employees (Thousands)

R&D expenditures Depreciation Capital expenditures Total assets Social Infrastructure Net sales Share of net sales (%)

Operating income Operating income ratio (%)

Number of employees (Thousands)

R&D expenditures Depreciation Capital expenditures Total assets Home Appliances Net sales Share of net sales (%)

Operating income (loss)

Operating income ratio (%)

,Number of employees (Thousands)

R&D expenditures Depreciation Capital expenditures Total assets 36.9 20.9 187.1 0.8 45 4.7 108.3 6.5 32.1 (1.5) 44.2 21.2 1,092.1 13.0 1,388.1 6.2 20.2 123.3 33.3

&9 33 0.0 174.5 6.1 148.0 11.6 239.5 0.0 1,323.7 4.1 1,882.3 6.6 27.4 76.5 57.6 4.1 57 5.6 70.9 14.9 35.0 1.1 44.1 20.4 1,578.0 5,7 36.6 15.8 (24.3) 0.6 46 2.2 118.5 9.4 42.5 32.5 40.5 (8.3) 1,242.6 13.8 1,657.3 19.4 21.6 119.7 (2.9) 7.2 35 6.1 174.2 (0.2) 169.

14.3 269.7 12.6 1,449.8 9.5 2,067.7 9.9 27.0 96.8 26.4 4.7 67 17.5 82.2 16.0 41.8 19.4 58.8 33.4 2,385.3 51.2 35.7 15.0 (4.6) 0.5 49 6.5 118.3 (0.2) 38.5 (9.5) 37.5 (7.4) 1,290.4 3.9 1,738.5 4.9 21.0 74.1 (38.1) 4.3 35 0.0 166,2 (4.6) 229.5 35.7 367.4 36.2 1,552.8 7,1 2,419.0 17.0 29.3 131.3 35,7 5.4 70 4.5 88.3 7.4 59.9 43.3 67.7 15.2 2,338.0 (20) 34.3 (14.2)

(0.6) 48 (2.0) 102.2 (13.6) 33.3 (13.5) 39.4 5.0 954.9 (26.0) 1,324.9 (23.8) 18.4 (323.2)

(24.4) 35 0.0 168.8 1.6 210.0 (8,5) 266.9 (27.3) 1,437.9 (7.4) 2,396.2 (0.9) 33.3 113.2 (13,7) 4.7 74 5.7 88.7 0.4 62.6 4.5 105.8 56.3 2,427.5 3.8 34.4 13.3 0.6 54 12.6 80.8 (20.9) 36.3 9.2 21.9 (44.5) 1,117.9 17.1 1,309.1 (1.2) 19.1 (24.2)

(1.8) 32 (9.1) 144.1 (14.6) 171.2 (18.5) 108.6 (59.3) 1,328.4 (7.6) 2,302.9 (3.9) 33.5 136.3 20.3 5.9 78 5.4 84.8 (4.4) 66.9 6.9 99.8 (5.7) 2,449.5 0.9 687.5 4.0 10.0 2.7 0.4 25 13.6 1 7.7 (6.5) 16.6 (7.8) 27.4 24.5 400.8 2.7 748.9 8.9 9.8 9.7 257.0 1.3 27 8.0 18.7 5.5 18.3 9.9 24.7 (9.8) 438.8 9.5 774.3 3,4 9.4 3.9 (59.6) 0.5 28 3.7 19.2 2.7 22.7 24.1 20.0 (19.1) 439.0 0.0 Others Net sales Share of net sales (%)

Operating income Operating income ratio (%)

Number of employees (Thousands)

R&D expenditures Depreciation Capital expenditures Total assets 674.3 (12.9) 9.4 (27.1)

(4.0) 27 (3.6) 18,2 (5.4) 28.7 26.5 18,5 (7.6) 385.2 (12.2) 334.3 (12.5) 4.6 0.5 (97.7) 0.2 15 (6.3) 0.4 (70.2) 15.2 (48.7) 22.2 135.0 321.6 (15.2) 579.8 (14.0) 8.4 (5.4)

(0.9) 24 (12.4) 13.2 (27.4) 19.5 (32.3) 17.5 (5.3) 362.1 (6.0) 315.8 (5.5) 4.6 (4.3)

(1.3) 16 6.3 0.3 (22.5) 5.1 (66.0) 8.9 (59.9) 312.6 (2.8) 379.8 2.2 5.5 18.0 82.1 4.7 12 (7.7) 1.0 (12.2) 22.5 (4.3) 7,7 (4.2) 442.4 (14.2) 391.6 3.1 5.1 18.7 4,2 4.8 16 33.3 0.4 (66.1) 21.2 (5.8) 16.1 108.5 479.2 8.3 381.9 (2.5) 4.6 23.0 22.7 6.0 16 0.0 1.3 370.1 29.6 39.7 9.4 (41.5) 379.3 (20.8) 50

Geographic Segment Performance Year ended March 31 Net Sales Japan Overseas Asia North America Europe Other Eliminations Consolidated Operating Income (Loss)

Japan Overseas Asia North America Europe Other Eliminations Consolidated 2006 2007 2008 2009 V5,464.4 3,147.9 1,521.4 888.5 658.7 79.3 (2,268.8) 6,343.5 Y5,993.1 3,680.0 1,724.1 1,028.4 830.2 97.3 (2,556.7) 7,116.4 V6,141.8 4,216.5 1,855.3 1,208.2 1,039.5 113.5 (2,693.0) 7,665.3 Y5,346.3 3,703.6 1,582.0 1,112.0 894.1 115.5 (2,395.4) 6,654.5 (Biliom of yen 2010 V5,267.0 3,954.7 1,832.8 1,217.8 776.4 127.7 (2,840.1) 6,381.6 191.9 48.4 22.1 18.1 6.1 2.1 0.3 240.6 204.1 44.4 26.1 7.8 7.2 3.3 9.9 258.4 161.2 74.6 37.6 7,6 25.6 3.8 10.6 246.4 (315.5) 49.7 21.3 17.8 6.1 4.5 15.6 (250.2) 20.3 91.6 46.2 18.9 20.6 5.9 5.3 117.2 Segmentation of countries or regions is based on geographical proximity.

Long-term Debt Millons of yen)

March 31 2009 2010 Loans, principally from banks and insurance companies, Secured Y

254 Secured Y

due 2010 to 2029 with weighted-average interest rate of 1.34% at March 31,2010 and Unsecured V71 5,577 Unsecured V595,581 due 2009 to 2029 with weighted-average interest rate of 1.40% at March 31, 2009 Unsecured yen bonds, due 2010 to 2016 with interest ranging 130,000 240,000 from 1.05% to 2.20% at March 31, 2010 and due 2010 to 2016 with interest ranging from 1.20% to 2.20% at March 31, 2009 Interest deferrable and early redeemable subordinated bonds:

Due 2069 with interest rate of 7.50% at March 31,2010 180,000 Zero Coupon Convertible Bonds with stock acquisition rights:

Due 2009 convertible 41,420 Due 201 1 convertible at W542 per share at March 31,2010 95,010 95,010 Euro yen medium-term notes of subsidiaries, due 2011 to 2014 with interest ranging 23,586 992 from 1.31 % to 1.67% at March 31,2010 and due 2009 to 2014 with interest ranging from 0.60% to 2.60% at March 31,2009 Capital lease obligations 56,834 55,372 Less: Portion due within one year 1,062,681 (285,913)

Y776,768 1,166,955 (206,017)

Y960,938 The aggregate annual maturities of long term oebt, excluding those ofcapital lease obligations, are as follows Mdhonr of yerý Year ending March 31 2009 2010 2010 2011 2012 2013 2014 2015 and thereafter 2015 2016 and thereafter Total V 273,189 187,114 193,210 127,390 133,379 91,565 V1,005,847 190,085 207,255 182,072 226,826 34,498 270,847 Y1,111,583 For more information on corporate bonds and ratings, please visit our IR website at http://www.toshiba co.ip/about/ir/en/stock/bond htm TOSHIBA Annual Report 2010 51

Organization Chart (AsofJooo.201)

Board of Directors lCompensation Committeel Nomination Committee SAudit Committee Office[

0Information Systems Center Div.

• Information Security Center

-Finance C Accounting Div.

-Global Financial System Div.

eQuality Promotion Office Legal Div.

Corporate Social Responsibility Div.

.CSR Implementation Office

-External Relations Div.

Digital Products Group Moile Co mncain Copn Visa Prdut StoaePout Digia Proucs Newr Compan

.Hino Operations

-Visual Products Marketing Div.

.TV C Network Div.

-Core Technology Center

.Fukaya Operations

.HDD Div.

• Ome Operations

- Storage Products

-Personal Computer Oiv.

- Japan Operations

-Personal Computer Oiv.

- Overseas Operations

• IP Network C Solutions Div.

-PC Development Center

-Global Production C Logistics Management Center

• Ome Complex 52

Strategic Planning Communications Group IL f

.Corporate Strategic Planning Div.

• Corporate Communications Office Corporate Representatives

-America, Europe, Asia, China Procurement Logistics Group eCorporate Procurement Div.

• Logistics Planning Office Productivity Environment Group

• Corporate Productivity Planning Div.

-Corporate Environment Management Div.

• Corporate Manufacturing Engineering Center

• Yokohama Complex

-Himeji Operations Technology C Intellectual Property Group

-Technology Planning Div.

• intellectual Property Div.

• Corporate Research C Development Center

-Corporate Software Engineering Center I

Marketing Group

-Marketing Planning Div.

(Overseas Offices)

• Moscow

-Johannesburg

.Baghdad

-Customer Satisfaction Div.

• Corporate Sales C Marketing Div.

-Advertising Div.

• Design Center Automotive Systems Div.

Network Services Div.

New Lighting Systems Div.

Smart Facilities Div.

Materials t Devices Div.

Electronic Devices C Components Group Infrastructure Systems Group

.eionut r o pn PwrSytmm ScaInrstu ur

-Discrete Semiconductor Div.

-Himeji Operations - Semiconductor

-Kitakyushu Operations

-System LSI Div.

-Oita Operations

-Microelectronics Center

-Memory Div.

-Yokkaichi Operations

-Electronic Devices Sales C Marketing Div.

-Center For Semiconductor Research t Development

• Nuclear Energy Systems C Services Div.

.Isogo Nuclear Engineering Center

• WEC Coordination Div.

-Thermal ( Hydra Power Systems C Services Div.

• Power and Industrial Systems Research and Development Center

,Keihin Product Operations

,i ransmisslon t uistrnDuton Systems Div.

-Industrial Systems Div.

-Transportation Systems Div.

oFuchu Complex

• Hamakawasaki Operations

• Mie Operations

-infrastructure Systems Div.

-Environmental Systems Div.

-Broadcasting £ Network Systems Div.

-Defense C Electronic Systems Div.

-Security C Automation Systems Div.

• Komukai Operations TOSHIBA Annual Report 2010 53

Corporate Governance 1~~

~

1, Sttu ofCroaeGvrac Toshiba made the transition to the Company with Committees system in June 2003. A total of 14 directors now serve on the board, and seven of them are non-executive directors: the four outside directors, the chairman of the board and the two members of the Audit Committee appointed from in-house.

The three committees-the Nomination Committee, the Audit Committee and the Compensation Committee-all have a majority of outside directors.

The three outside directors who serve on the Audit Committee are supported by the committee's dedicated, full-time staff, and the outside directors on the Nomination Committee and Compensation Committee are also provided with staff support.

A Corporate Audit Division responsible for management audits, now staffed by 55 people, was established under the direct control of the President, and with responsibility for internal audits from the perspectives of appropriate operational procedures, accountability of results and legal compliance.

The Corporate Audit Division holds advance discussions with the Audit Committee on each year's audit policy and plans. It also holds semi-monthly liaison meetings with the Audit Committee for pre-audit discussions and to share information on the divisions subject to audit.

The Corporate Audit Division carries out on-site inspections and reports its results to the Audit Committee. However, if it deems it necessary, the Audit Committee has the right to carry out its own on-site inspections. Furthermore, in addition to receiving explanations from independent auditors (CPA) on their audit plans at the beginning of each fiscal year, the Audit Committee can also request reports on the status of audits during the course of each term, and explanations and reports on end-of-year audits, as necessary.

As a Company with Committees, Toshiba delegates operational decision-making to executive officers.The board plays a supervisory role in respect of operations, retaining the right of final decision only in such matters that might have a considerable impact on shareholder value.

In respect of operational matters, decisions on the most important decisions are made by the chief executive officer at the corporate management meeting, while other matters are determined by in-house company presidents at individual in-house company management meetings.

As a general rule, the corporate management meeting is held once a week.

1) Names and etc.

Mr. Furusawa currently properly supervises the Kiichiro Furusawa Company's management based on his rich Outside Director, Asagami Corporation experience and knowledge as a specialist in Outside Auditor, Fujifilm Holdings Corporation finance and management.

Outside Director, NHK Promotions Inc.

Mr. Hirabayashi currently properly pervises Outside Director, Daichi Sankyo Company, sup Limited Hiroshi Hirabayashi the Company's management based on his PresidentThe Japan-India Association rich experience and knowledge as a diplomat, Outside Director, Mitsui & Co., Ltd.

including ambassador in charge of inspection, Visiting Professor, Graduate School of Asia-Pacific Studies, Waseda University 54

Professor, the Department of Political Studies, the Faculty of Law, Gakushuin University Mr. Sasaki currently properly supervises the President of the Association For Promoting Fair Elections Takeshi Sasaki Company's management based on his rich Outside DirectorORIX Corporation experience and knowledge as a political President of National Land Afforestation Promotion scientist and a manager of a university.

Organization Outside Director, East Japan Railway Company Chairman of Labo International Exchange Foundation Mr. Kosugi currently properly supervises the Partner & Attorney-at-law, Matsuo & Kosugi Takeo Kosugi Company's management based on his rich Outside Auditor, Fujifilm Holdings Corporation experience and knowledge as a specialist in Outside Auditor, Nihon Servier Co. Ltd law.

Supervisory Director, Mori Hills REIT Investment Corporation All four outside directors are independent directors

& Co., Ltd. In the cases above, there is no materiality as provided for in Article 436-2, etc. of the Security that may affect the independence of outside Listing Regulations of the Tokyo Stock Exchange.

directors.

2) Relationship between the Company and There is no relationship to be disclosed entities at which outside directors hold between the Company and other entities at which important concurrent posts outside directors hold important posts.

The Company has an ongoing business

3) Main Activities relationship with Chuo Mitsui Trust Group, which During FY2009, the Board of Directors met 17 times, consists of Chuo Mitsui Trust Holdings, Inc. and its and the Audit Committee 15 times, and the Outside subsidiaries; the Fujifilm Group, which consists of Directors commented as necessary. The Outside Fujifilm Holdings Corporation and its subsidiaries; Directors received advance explanations about Mitsui & Co., Ltd; and East Japan Railway Company.

the matters to be resolved at the board meetings In addition, the Chuo Mitsui Trust Group holds the from the staff in charge, etc.They also attended the Company's shares and Mitsui & Co., Ltd. holds the monthly liaison conferences of Executive Officers Company's shares in a trust of for its corporate in an effort to communicate and share information pension plan.The Company holds shares of Mitsui with the Executive Officers.

Attended the meeting of the Board of Directors 11 times and that of the Audit Committee 14 times.

Kiichiro Furusawa Commented as necessary based on his wealth of experience and knowledge as a specialist in finance and management, Attended the meeting of the Board of Directors 16 times and that of the Audit Committee 13 times.

Hiroshi Hirabayashi Commented as necessary based on his wealth of experience and knowledge as an ex-diplomat including ambassador in charge of inspection of diplomatic offices overseas.

Takeshi Sasaki Attended the meeting of the Board of Directors 16 times. Commented as necessary based on his wealth of experience and knowledge as a specialist of political science and an administrator of a university.

Appointed director in June 2009. Subsequently attended 13 out of 13 meetings of the Board of Directors Takeo Kosugi and 10 out of 10 meetings of the Audit Committee. Commented as necessary based on his wealth of experience and knowledge as a lawyer.

4) Limited Liability Contracts The Company has signed a limited liability contract with each of the four Outside Directors to limit their liabilities as provided in Article 423, Paragraph 1 of the Companies Act.

TOSHIBA Annual Report 2010 55

Corporate Governance 1

3. Cope sato Poic an th Amun of Cmesato

1) Compensation Policy The Compensation Committee establishes compensation policy regarding compensation of each Director and/or Executive Officer as follows.

Since the main responsibility of Directors is to supervise the execution of the overall Group's business, compensation for Directors is determined at an adequate level to secure highly competent personnel and to ensure effective work of the supervisory function.

Since the responsibility of Executive Officers is to increase corporate value in their capacity as executives responsible for companies or divisions within the Group, compensation for Executive Officers is divided into fixed compensation and performance-based compensation, and determined at an adequate level to secure highly competent personnel and ensure their compensation package functions as an effective incentive to improve business performance.

(1) Director's Compensation Fixed compensation is paid to Directors who do not concurrently hold office as an Executive Officer, and is based on status as a full-time or part-time Director and on the duties performed.

The fixed compensation is paid to Directors who concurrently hold office as an Executive Officer, in addition to the Executive Officer compensation specified in (2) below.

(2) Executive Officer's Compensation Executive Officer compensation is comprised of the basic compensation based on Executive Officer rank (eg. Representative Executive Officer, President and Chief Executive Officer, Representative Executive Officer, Corporate Senior Executive Vice President) and the service compensation calculated according to the duties of the Executive Officer. Some 40-45%

of the service compensation will fluctuate from zero (no compensation) to 2 times according to the year-end performance of the Company or of the division for which the Executive Officer is responsible.

(3) Compensation Standards Compensation standards are determined at suitable levels for a global company, with the aim of securing highly competent management personnel.

The compensation standards of other listed companies and payroll and benefits of employees are considered when determining the Company's compensation standards of management.

2) Amounts of compensation for FY2009 Amounts of compensation of directors and executive officers for FY2009 are as follows:

(Milions of ven)

Directors and executive officers whose total compensation exceeded 100 million yen for FY2009 Atsutoshi Nishida Director Toshiba Corporation 851 Executive Officer Toshiba Corporation 18 4

107 56

Consolidated Subsidiaries and Affiliated Companies Accounted for by the Equity Method Consolidated Subsidiaries Domestic H

Har son Toshiba Lighting Corporat on i wate Toshiba Electronics Co., Ltd.

• Kaga Toshiba Electronics Corporation

• Nishishiba Electric Co, Ltd*

• Nuclear Fuel industries Ltd.

• Tosh ba Cap tal Corporation T cosh ba Carrier Corporation

• Tosh ba Consumer Electron cs Holdings Corporation SToshipa Consumer Marketing Corporation

- Toshiba Device Corporation

- Toshiba Elevator and Building Systems Corporation T

Toshiba Home Appliances Corporation STosh ba lndustr ai Products Sales Corporation

.Toshiba nformat on Equipments Co, Ld

• Tosh ba Lighting & Technology Corporation

• Tosh ba Logistics Corporat on

• Toshiba Medical Systems Corporation

• Toshiba Mobile Display Technology Co., Ltd

• Tosn ba Plant Systems & Services Corporat on*

SToshnba So outons Corporation Tosh oa Storage Devsce Corpora: on Toshnoa TEC Corporation*

• Tosniba Trading Inc.

227 companies in total including the above 23

• L sted company n stock markets Overseas

• AEPD Pte., Ltd.

- Chevalier (HK) Ltd.

Dalian Toshiba Television Co., L td Northern Virginia Semiconductor LC.

STA Receivables Corporation

• Taiwan Toshiba internationa Procurement Corporation

• Toshiba America Business Solutions, Irc

-Toshiba America Capital Corporation SToshiba America Consumer Products, Irc.

• toshiba America Electronic Components, Inc.

• toshiba America nformation Systems, onc

• Tosniba America Medica Systems, nc T oshiba America MRI inc,

• Toshiba America Nuc ear Energy Corp

- Toshiba America, Inc.

T oshiba Capital (Asia) Ltd

• Toshiba Dalian Co, Ltd.

• Toshiba Dig ital Media Network Taiwan Corporat on

-osh ba F lectronics Asia,. td T osn ba Europe GmbH T

toshiba information Equ pment (Phi ippines), Inc Toshiba Information, Industrial and Power Systems Taiwan Corporation T

Toshiba International Corporation T oshiba International F nance (UK) P c

• Toso ba international Procurement Hong Kong, Lid

• Toshiba JSWTuroine and Generator Pr vate -:d T

Toshiba Medical Systems Europe B.V.

• toshiba Nuclear Energy Holdings (UK) Ltd.

-Toshiba Nuclear Energy Holdings (US) Inc.

Toshiba Samsung Storage Technology Korea Corporation T oshiba Storage Device (Ph iip nes), Inc, T opsh ba TEC Prance imag rig Systems S.A

• Toshiba Transmission and Distrioution Brazil Ltd

• toshiba Transmission and Distribution Systems Brazil Ltd

-ISB Nuclear Energy Investment UK Ltd.

• TSB Nuclear Energy Investment US Inc.

• Westinghouse Electric Company L C 31S companies in tota Ircoudong the above 37 Affiliated Companies Accounted for by the Equity Method Domestic

• Fash Alliance. Ltd Sylash Partners, Ltd, SIkegami Tsushinki Co, Lid.*

• NEC Toshiba Space Systems, Ltd.

NREG Toshiba Building Co., Ltd

• Nu iare Technology ncorporated*

• Shibaura Mechatron cs Coroorat on*

T Topcon Corporation' T oshiba Finance Corporation T oshiba Housing Loan Service Corporation T

Toshiba Machine Co., LId.

• Toshiba Medical Finance Co., Ltd.

• oshiba M tsuoiso *E ectric Industria Systems Corporat on 84 companies in total Including the above 13

• Isted company in stock markets Overseas

-Guangdong Midea A r-Conditioning Equipment Co., Ltd

-Guangdong M dea Commercial Air-Conditioning Equ ipment Co, Ltd

• Guangdong Midea Group Wuho Ai r-Cond iton ing Epuipment Co., itd

-Guangdong Me. n ompressor Ltd.

H lenan P nggao si Pa H gh-Vo tage Switchgear Co., Ltd.

Japan Uranium Management nc.

-MOD Systems incorporated

-SempToshiba Amazonas S A.

STM GE Automation Systems.LC 116 compan es 0 to'al inc uding toe above 9 (As of March 31, 20t0)

TOSHIBA Annual Report 2010 57

Stock/Shareholder Information Common Stock Price Trends Year ended March 31 2006 2007 2008 2009 2010 Common stock price (Y, fiscal year)

High 815 842 1,185 953 572 Low 416 652 649 204 258 Nikkei average (Y) 17,059.66 17,287.65 12,525.54 8,109.53 11,089.94 Number of shares issued (Millions of shares) 3,219 3,219 3,237 3,238 4,238 Market capitalization (V Billion) 2,201.8 2,533.4 2,155.9 822.4 2,046.8 Earnings per share attributable to shareholders of oshiba Corporation (yený Basic (EPS) 24.32 42.76 39.46 (106.18)

(4.93)

-- Diluted (EPS) 22.44 39.45 36.59 (106.18)

(4.93)

Annual dividends per share (Y) 6.5 11 12 5

0 Payout ratio (%) (Consolidated) 26.7 25.7 30.4 Number of shareholders 454,849 411,723 375,115 462,649 473,230 Price-to-earnings ratio (PER) (Times) 28.13 18.41 16.88 Price-to-cash flows ratio (PCFR) (limes) 6.6 5.9 4.2 132.5 6.9 Price-to-book value ratio (PBR) (Times) 2.2 2.3 2.1 1.8 2.6 Note: Common stock price is based on the Tokyo Stock Exchange, Inc market nuotation.

Distribution of Shareholders (Percentage of total voting rights)

March 31 2006 Individuals and others in Japan 35.9%

Overseas investors 22.3 N Companies in Japan 2.7 N Securities companies in Japan 1.4 Financial institutions in Japan 37,7 2007 31.2%

25.0 2.7 1.7 39.4 2008 27.3%

24.6 4.1 1.0 43.0 2009 39.4%

14.9 4.9 1.2 39.6 2010 31.3%

24.7 3.9 2.0 38.1 100 8'0; 31,2'9,1

• 313 60 I3 2

4 20 377 39A 430 39.6 381 0

2006 2007 2008 2009 2010 Major Shareholders (As or March 3r,201C Percentage of totai voting rights (Rounded to one decimal place)

The Master Trust Bank of Japan, Limited (trust accounts)

Japan Irustee Service Bank, Limited (trust accounts)

The Dai-ichi Mutual Life Insurance Company Nippon Life Insurance Company Japan Trustee Service Bank, Limited (trust accounts 9)

Toshiba Employees Stocks Ownership Plan NIPPONKOA Insurance Company, Limited Sumitomo Mitsui Banking Corporation Mizuho Corporate Bank, Limited Japan Trustee Service Bank, Limited (trust accounts 4)

Note: Dai ichi Mutual life insurance Company reorganized to Dai-ichi l ie Insurance Company. Limited as of Apr. 1,2010 6.5%

5.2 2.7 2.6 1.6 1.6 1.2 1.2 1.2 58

Corporate Data TOSHIlA CORPORATION As of March 31,2010 Headquarters:

1 -,Shibaura I..chome, Minato-ku,Tokyo, Japan Founded:

July 1875 Number of Employees:

Approx. 204,000 (consolidated)

Fiscal Year:

April Ito March 31 Authorized Number of Shares:

10 billion Number of Shares Issued:

4,23 7,602,026 Number of Shareholders:

473,230 Stock Exchange Listings:

Tokyo, Osaka, Nagoya, London ISIN:

JP359 2200004 Ticker Code on the Tokyo Stock Exchange:

6502 Shareholder Registration Agent:

The Chuo Mitsui Trust and Banking Company, Limited For further information, please contact:

Investor Relations Group Corporate Communications Office Toshiba Corporation 1-1, Shibaura t -,home, Minato-ku,Tokyo 105-8001, Japan Phone: +81-3-3457-2096 Facsimile: +81-3-5444-9202 E-mail: ir@toshiba.co~jp http://www.toshiba.co.jp/about/ir/index.htm IR WEBSITE Ele 2009 http://www.toshiba.co.jp/about/ir/index.htm Toshiba Corporation makes every effort to provide shareholders and investors with reliable information in a timely manner, and toward this we make full and proactive use of the Internet in our IR activities. On our investor relations site we publish a wide range of resources, including news releases, information for shareholders, our statements of accounts, and explanations of our business results, as well as videos and other materials related to business information meetings. The site also supports interactive communication, allowing investors to ask questions and offer opinions that will help us to improve the quality of our IR activities.

• FORWARD-LOOKING STATEMENTS This annual repout contains forward-ook rig statements concerning Toshirbas future plans, strafeg es, and performance These forward-ook ng statemrents are not n stor cal facts, rather they represent assumptions and beiefs based on economic, hlanma and corrber byve data currently availao e ufur hermore, they are sucbect to a number of risks and uncertainties that,without limitation, relate to economic conditonsworldw de mega-competron in the electronics business, customer demand, foreign currency exchange rates, tax rules, regulations,and other factors.Toshiba rherefore wishes to cauton readers that acrua: results may differ mater ally from our expectatrons

• Reporting to all of our stakeholders

-he man vehn ce for prov dingoso) oa Group's stakeno ders wit `inanc a nformat orr S roe Ancua Report No*n-hnanc ai nf1orarion is provided in the CSR Report. Among the non-financial information that we provide, we believe that we have a parUcular responsibility for providing detailed information on the environment, and we publish an"E nvironmental Report" separately from [he CSR Report Details of toiis can be fourrd on our webs te

• Regarding"To our Shareholders" (see page 2) income (0oss) irom cont nc rig operations, before income taxes and ro, onrio ig r~te apoeas as" nco"e Daerore taxes'

• Regarding items reported in this Annual Report Any correc:ons made to this Annua Report wil! be puc shed on ou weosite as referenced above

" Product names may be trademarks of their respective companies.

TOSHIBA Annual Report 2010 59

TOSHIBA CORPORATION 0f 9

TAB 6