Presentation on
FY21 Management Policy
FY21～23 Mid-term business plan (MTBP)May 28, 2021
Hironobu Nishikori
President & CEO
Toshiba Tec Corporation© 2021Toshiba Tec Corporation

Contents

01
02

Looking back at FY2020
FY21 MTBP Basic Policy- Business Strategy by segment- Financial Target© 2021 Toshiba Tec Corporation2

01
Looking back at FY2020© 2021 Toshiba Tec Corporation

3

FY2020 Results
Earnings improved significantly (ROS 4.3%) in the 2 nd half of the fiscal year
due to sales recovery, resulting in a return to profitability on a yearly basis
Major reasons forprofitability improvement

405.7✓The effect of sales increase ofdomestic Retail and Workplacebusinesses✓The effect of restructuring
efforts（Billions of Yen）

Net Sales

214.0

191.7

ROS
4.3%

9.2

8.3

-0.9
1st Half

Operating Profit

2nd Half

Fiscal Year© 2021 Toshiba Tec Corporation

4

Strengthen “Defense” in preparation for “Offense” from FY21
Implemented structural reform aimed at transforming a flexible and leaner operating structure

Achieved approximately ９billion yen in annual fixed costs reduction *Reduced workforce by 1,100 in FY20
Improve management efficiency and optimize human resource
allocation through accelerating Digital Transformation (DX)

Corporate

Reorganization of corporate
staff to promote theautonomous and agile
operation of business groups

RetailReinforce global cooperation
Aim at becoming a partner helping
retail customers acceleratebusiness innovation

Workplace

Robust and streamlined global
operation<Development・Manufacturing・Sales><Development・Marketing>*The effect of reduction in personnel expense and fixed costs resulting from structural reforms implemented in FY20 © 2021 Toshiba Tec Corporation

5

Comprehensive review of business foundation
Strengthen our “Defense strategy” in preparation for shifting to “Offense” from FY2021

Comprehensive review of FY2020

FY2021～Business model
innovation

Offensive
Management

Structural
Transformation(Increasing agility inmanagement)

Work style reform(Ability developmentof each employee)

Structural
ReformGlobal structuralreforms(Optimization of fixed
costs)

Concentrated
investment in growthfield and partner
strategy×

Initiatives tocontinue improving
earnings of theoverseas business© 2021 Toshiba Tec Corporation

6

Topics①：Leading edge Solutions Lab & Showroom 「TEC 01 SIGHT」
TEC 01 SIGHT allows us to experience and create the future together
More than 1,000 visitors (300 companies) since the opening on Oct. 1, 2020 !

This showroom not only introduces our latest solutions, but also allows visitors toexperience conceptual solutions that suggest new touchpoints for customers, aswell as the latest technology. It also provides a space to engage in joint creation
with customers and partner companies.

© 2021 Toshiba Tec Corporation

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Topics ②：Promoting the distribution DX by utilization of POS platform(Smart Receipt)

Rapid expansion of
Smart-Receipt

The # of stores implementing Smart-Receipt (incl. unofficial notification): 4 K (Sep/E, 20) ➡ Exceeding 20 K (Mar/E, 21)
The # of registered members: Exceeding 360 K (Mar/E, 21)

DX in stores
Data linkage with healthcare, logistic
data, human flow and traffic line, etc.

① Cashless Cash、contactless② Cardless Card、contactless③Paperless Paper receipt、
contactless￥Cashier

３ avoidance

pip

Promote Data service
business with Toshiba Group by
capitalizing on Smart-Receipt
Improve efficiency of payment procedures(Paperless)＋
Increase consumers’ convenience

Toshiba Group’s eco-system(Household account book、Medical deduction)＝
DX in the distribution promotion(Coupon deli、Point、Campaign）© 2021 Toshiba Tec Corporation

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02
FY21 MTBP Basic Policy- Business Strategy by segment© 2021 Toshiba Tec Corporation

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FY21 MTBP Basic Policy
After the structural reform and transformation, accelerate concentrated investmentin the growth field to become a solutions partner by utilizing data effectively

RetailBusiness
environment

Basic Policy

Business opportunities of global
common significanceahead of changes✓✓✓✓

Changes of purchase behavior
Changes of retail stores
Changes of retail businessChanges of manufacturing & logistics

Workplace（Printing）
Enhancedbusiness scope:from Office
to Workplace

Accelerate to develop innovative businessmodel aimed at becoming a global top
retail partner

Recovery of profitability andstrengthening of solutions

Concentrated investmentin the growth field✓ Strategic partnership✓ From Printing toData Management✓© 2021 Toshiba Tec Corporation

10

[Retail Business] The future direction
Solve customer issues by proactively responding to the changes in global retail environment

new value creation and proposal-based business

pip

Multi touch points
shopping

Stress-free shopping

Customized coupons
Triggers to increasecustomer traffic
at stores
Optimal offering of goods

Food loss reduction

Improved
conveniencefor customers

SDGs(Frictionless)PromoteDX

More sales withpromotion &customer Provide
attraction new

Eco-Friendly products
Realization of asustainable growth
Anytime, relaxed shopping

Trust

One stop consultation
For customers

value

Efficient store
operation More efficiency
for store
Automatic ordering
Optimized smart operation & SCM
logistics

Impression

Stores promoting
customer loyalty
Impressive shopping
experiences© 2021 Toshiba Tec Corporation

11

[Retail Business] Basic Strategy

With Partner

Aim at becoming a global top solutions partner in the distribution industry
Customer base・Service Network

Changes of
shopping
behaviors

Changes ofretailbusiness

Global Retail Platform 「ELERA-Retail*1」

Changes ofretailers

Changes of
Manufacturing& Logistics*1 ELERA-Retail（Global Platform）It’s time to accelerate the future of retail.
*2 DMP Data Management Platform© 2021 Toshiba Tec Corporation

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[Retail Business] ELERA-Retail Transaction system

With Partner

Build a retail platform that increases touch points and connects to data services
Touch points

External
vendorSettlementcompany

WebsiteExternal
I/F

API

Socialmedia

Orderservice

Smartphoneorder

Reservation
service

Settlement
linkage

Check
out

EC
site

Personalizedrecommendation

CouponDeli

Smart
Receipt

Dynamic
pricing

Data services
Sales
management

Productmanagement

Inventory
management

Vacancy
management

Data
bank
Order
management

Platform infrastructures
Status of in use
management

Hardwarestatusmanagement

Agreement
management

Security
management

ELERA-Retail
WEB

Cart

ConsumerHome

Promotional solutions

In town

Mass retail
store

Smartphones

POS

Specialized
store

Signage

KIOSK

Restaurants

Payment
terminal

Self order

Shopping center

Inside the store© 2021 Toshiba Tec Corporation

13

[Retail Business] Strategy for Japan/Asia

With Partner

Expand business through intensive investment and partnership strategy by identifying
data services, next generation stores, payment and SCM as 4 focus domains(Total target sales of 33 billion yen in FY23)
Industry・Operation Analysis

Proposal

System building

Support・Service
Expansion of services

Expansion of touchpointsAnalysis・Consultation

Core business（POS checkout）
mPOS
SCM

Data services

Next generation store

Payment

Mainte-nanceBPO
Systemoperation

Expansion of business domains（４ focused areas）

Prioritized Initiatives

Payment

Outsourcing

SCM

Data Services

Smartphone POS, EC solutions、mPOS

Non-face-to-face payment service、
commission businessImage、Voice solutions、RFID

Expansion of Smart-Receipt service

FY23 19 billion yen

FY23 5 billion yen

FY23 2 billion yen

FY23 7 billion yen

ｍPOS

ELERA-RetailStrengthening of lineup bycollaboration

Standardization of the retail platform

Next generation
store

BPO

Asia

Existing BPO＋New BPO

Retention of key customers withlocal partners© 2021 Toshiba Tec Corporation

14

[Retail Business] Case ① Business incubation by PoC (Domestic)
Approaching customer issues through various contact points andimplementing / planning a large number of PoC items～At TEC 01 SIGHT, the number of visitors exceeded 1,000 (about 300 companies). since the opening in October last year ～Cart POS security
1

Cart POS system equipped with a meterand enhanced security functions

AI Cart system IMAGR Inc.
2

Communication display
4

7

Optimal content display according tocustomer attributes entered in
the handy terminal

5

8purchased the product using House prepaid card

Real-time inventory information service

13 A service that can provide inventory
information in real time11

AI camera OCR determines
the recycling type of waste
batteries

6 Infrared sensor panel that enables
non-contact POS terminal operation

Ito-Yokado Co., Ltd
POS system using shopping carts
and smartphones

Serial inventory
9

Serial management of
inventories in distribution
warehouses

Order service

RFID self-POS
Open RFID self-POS at apparel stores

Smart Receipt
Wakamatsu City
14 Aizu
Cooperation of local

Payment system by facerecognition whenself-accounting

Non-contact touch panel sensor

Cart POS・Smart PhonePOSHouse prepaid data sale
10 Cash back to customers who

3

AI-Camera OCR

Smart Receipt
Introduced one store as averification store for convenience store model

H2O RETAILING CORPORATION
Image recognition cart POS
system using AI

Face recognition payment system

12 A service that links smartphoneorders to store POS / OES：Items that have already been implemented
L o c a l
C u r r e n c y

E l e c t r o n i c
r e c e i p tcurrencies and electronic receipts in the smart city concept＊Another 13 PoC s are planned to be implemented in FY21

：Items to be implemented in the future
So far, the projects across regions have been also
2021 Toshiba
Tec Corporation
done in Okinawa area and Tokachi© areaof Hokkaido

15

[Retail Business] Introduction of recent marketing activities with the aimof expanding solutions and business domains
店舗ではスマホ会員証でターゲットを絞って

PUSH通知でコンタクトレス

効果的な販促リアルタイムにアプローチ（Feb） Launches the customer system linkage solutions for shopping centers「From sales promotion to analysis」

FANSHIP for Multi

Smartphone
スマホアプリ
APL――――――――――――――――――→ Collaborates with start-up companies(Application development：iRidge、 Members database：RHIZOME CO., LTD)

Based on the partnership agreement with Sonicmoov co., Ltd

PUSH
PUSH通知notification
受け取り
Reception

店舗でShopping
in store
お買い物

プロモーショ
ン実施

効果検証
Verification

Promotion

Smartphone
スマホ会員証Member Card

→ Offering a service to link customer information, such as segment information based onpurchase history, with a POS system for specialty stores and 「COMSBI for Retail」,
CRM tool for LINE accounts developed by Sonicmoov.

（Mar）

Joint project with Nihon Unisys→ Create next generation stores solving diversified issues of retailers

Business alliance with Catalina Marketing→ Provide wide variety of brand coupon content by 「Tec Coupon Deli」

Collaboration with Mitsubishi Corporation in DX for food distribution→ Solutions to adjust supply and demand for food company by using the data of「Tec Coupon Deli」（Apr）

PoC of image recognition of cart POS system using AI in cooperation with
H2O RETAILING CORPORATION and IMAGR Holding Limited（May） Launch of MobilePOS 「POSasy」© 2021 Toshiba Tec Corporation

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[Retail Business] Case② Collaboration with TOUCH TO GO

Next Generation Store（Frictionless）

Started preparation for the increasing demand of unmanned payment stores
Create customer value by DX including behavioral data before purchase and POS data
Growingproblem oflabor shortage

Singed a business collaboration contract
with TOUCH TO GO

Increasing
demand forcontactless
service

Accelerating installation of unmanned
payment stores by retailers

Micro market（small sized trading area）
From left to right: K. Taira, VP of Toshiba Tec, H. Nishikori, President & CEO of Toshiba Tec
T. Akutsu, President & CEO of TOUCH TO GO, T. Namikawa, Vice President of TOUCH TO GO© 2021 Toshiba Tec Corporation

17

[Retail Business] Case② Collaboration with TOUCH TO GO

Next Generation Store（Frictionless）

Unmanned payment store at the station of Takanawa Gateway of JR East Japan© 2021 Toshiba Tec Corporation

18

[Retail Business] Latest POS of ID-POS panel data service
Aiming to become the de facto of ID-POS panel by accumulating information
on 80 chains in 8 areas nationwide by the end of FY21,
Demonstration experiment will begin in a specific area in the first half of FY21
Company A
ID-POS

Manufacturer /Wholesaler
Opportunity analysis
supportStore

Product information
management
Company B

Company A

Company C

Shelving automation
Assortment
optimization

Consumer

Mobile Apps

Company D

Sales promotion Support
ID-POS
panel

Coupon delivery by customer
identification

ID-POS panel provided
ID-POSパネル提供

Coupon Deli
transaction

ID-POS
panel

Coupon delivery

Smart Receipt

Smart
Receipt

Unified data
platform

AnalysisengineAI

Recommend
engineTec Coupon Deli

・Real-time delivery of coupons and ID-POS data
・Acquire purchase information across storesby linking with Smart Receipt © 2021 Toshiba Tec Corporation

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[Retail Business] Strength of maintenance service business（Toshiba Tec Solution Services Corporation)
Provide one-stop services by taking full advantage of 100 service locations and1,500 engineers in Japan

Security
Solutions

IT Management
Solutions

Security measure are one of major
management issues

Support stable IT system operation

•
•
•
•
•

POS・Integrated Help-Desk
POS system monitoring
Server・Network surveillance
IT asset management
BPO service, etc.

Network
Solutions
Provide one-stop business network•••

Design/Networking service
Private IP service
Tec HIKARI service, etc.

ICT
Solution
Service
Support・Service
Outsourcing BPO

•
•
•
•
•

Virus protection support
Firewall
Unauthorized invasion/Detection
Management of security patch
application
Data erasure service, etc.

＜Other Solutions＞◆Data center solutions◆Cloud solutions◆Document solutions◆Facility solutions, etc.

System operation© 2021 Toshiba Tec Corporation

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[Retail Business] Overseas Strategy
Expand two axes of profitability and new customers by leveraging global customer base
Among 7 NA retailers in the global top 10 list, we have 5 customers

Strengthening ofJapan – US Collaboration

Acquire new customers
by reinforcing sales &marketing functions

More than 750 service staff

New customers

Enhance profitability bystrengthening service
business

Expand the introductionof new customers toexisting customer base

Recurringbusiness

Solutionsbusiness・Wall to Wall*1
maintenanceservices

New president of US Subsidiary
Rance・Poehler (‘20Nov.)

Enhanced skills totransform thebusiness style
from HW tosolutions-oriented

・SCO*2・ELERA-Retail

Existing customers

・Predictive analytics
to maintenancemodel*1 Wall to Wall maintenance services : Multiple years’ maintenance service covering multi-vendors’ devices from POS to peripherals*2 SCO Self Check Out© 2021 Toshiba Tec Corporation

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[Retail business] Case ③ ELERA-Retail Return System (Overseas)
ELERA-Retail microservices return system across sales channels
Reduce manual work, return response time, and shopper waiting time
Realize seamless collaboration between
brick and mortar shops and E-commerce
ReturnProblems to be solved
by major US distributors✓No return systems acrossthe sales channel✓Long working time andwaiting time for returns✓Can not figure out if the
return was handledcorrectly

Goods purchased
at store

Return at
store

Goods purchased
at E-commerce

Data verification and over-the-counter processing of E-commerce returns

POS system

Store
Integrated
Sales Data

Sales Data

Return to EC siteSales
management
systemELERA-Retail
Return system

Data update on E-commerce returns
E-commerce© 2021 Toshiba Tec Corporation

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[Workplace Business] Strengthening of global business structure
Reinforce "Customer touch points functions" and "Overall business structure"
Achieve the targeted operating profit margin of 4% or more from FY23 onwards
Subsidiaries & Japan
R&D

Shift human resources to the growth fields

・Establish a speedy development process
・Shift resources to the growth field・Direct support to sales force by global
development system

・Thorough reduction of raw material costs
・Reinforcement of productivity improvement
Manufact measures-uring・Optimization of global manufacturing
structure・Optimal personnel assignment by integrationof organization inside and outside Japan
Sales
Back Office ・Construct sales system responding to demandfor After/With COVID-19 by utilizing IT

FY20

FY23

Direct support to sales force by global
development system➡ Strengthen solutions to respond to local
requirements© 2021 Toshiba Tec Corporation

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[Workplace Business] Growth Strategy
Accelerate a shift of the business focus from Printing to Data management
Workplace Solutions

Cloud Solutions platform
IMP*6 For Service & User to be introduced in FY21

DMS*1・ECM*2 Solutions
Collaboration withsolutions partner suitableto each region

Growth Field (AI*3 Business)
BCS*4 solutions
eCC-MC*5 for BCS

Inkjet：Enhancement of business domains
New normal changes life style dramatically➢ Accelerate a shift from light printing to“Monozukuri” and so on➢ Newly penetrate into an area for clothing➢ Launch new products in the 2nd half of FY21 aimed at
expanding sales for signboard

to be introduced in
the 1st half of FY21

Reinforcement of AI Biz
・Dedicated Organization(Apr, 21)・Expansion of resources(MFP→AI)*1 DMS Document Management System*2 ECM Enterprise Contents Management*3 AI Auto ID*4 BCS Bar Code System*5 eCC-MC e-Bridge Cloud Connect - Meter Collection*6 IMP Integrated Managed Platform© 2021 Toshiba Tec Corporation

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[Workplace Business] MFP・BCS One stop solutions
Offer unique solutions by integrating the strengths of MFP and BCS
Realize our differentiation and growth by providing one stop solutions
Enhance BCS’s products and solutions capability drastically by leveraging MFP’s accumulated
technologies, resources and infrastructures
Provide unique integrated solutions of MFP with BCS to diversified workplaces

IMP

Integrated Managed Platform

Document
Management
SystemOutputmanagement

Workflow
Automation

Integrated device
management

MFP
＋
BCS

MFP

Integrated
Solutions

Barcode Printer© 2021 Toshiba Tec Corporation

25

02
FY21 MTBP Basic Policy- Financial Target© 2021 Toshiba Tec Corporation

26

21 MTBP Financial Target
Reinforce our earnings base by improving management efficiency andimplementing effective resource allocation
Aim at attaining a 6.6% of ROS and a 13% or more of ROIC in FY23
FY21 Forecast

FY23 Plan(USD 105 yen、EUR 120 yen)

(USD 105 yen、EUR 120 yen)

Net Sales

420 B yen440 B yen

+20 B yen

Operating Profit

21 B yen

29 B yen+8 B yenO/P ratio (ROS)

5.0％

6.6％

+1.6％

Dif

(RS*1:6.5％、WS*2:2.6％)(RS:8.0％、WS:4.1％)

Current Net Profit

10 B yen

17 B yen+7 B yen

Cash Flows fromOperating activities

23 B yen

33 B yen+10 B yen

Return on invested capitals(ROIC)

10％ or more

13％ or more

+3％or more*1 RS Retail Solutions*2 WS Workplace Solutions© 2021 Toshiba Tec Corporation

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The targeted financials by segment
Improve profitability of growth domain (Retail) and stable domain (Workplace)respectively by overcoming the effect COVID-19 in a prompt manner

Retail Solutions

Workplace Solutions

FY23 Operating Profit／Operating Profit margin

FY23 Operating Profit/Operating Profit margin

22.0 billion yen／8.0％

7.0 billion yen／4.1％

Promotion of DX growth strategy

Recovery of profitability

Realize a highly profitable business structure by
aggressive investment in the four growth fields

Stabilize the earnings structure by implementing
business model transformation

Sales

276.0

255.0

Sales

Operating
Profit

22.0

16.5

170.0

Operating
ProfitOperating
8.0% Profit margin

6.5%
FY21

175.0

7.0

Operating
Profit margin
4.1%

4.5
2.6%

FY23

FY21

FY23
© 2021 Toshiba Tec Corporation

28

Business performance of Retail Solutions Business Group
8.0%

Operating Profit Margin

6.5%
4.9%

5.5%
（Billions of Yen）

289.5
248.5
14.1

276.0

255.0

13.7

22.0
16.5

Net Sales

Operating Profit*The MFP business for domestic market has been transferred from Retail Solutions Business Group to Workplace Solutions Business Group effective from April. 1, 2021
In the above graph, the results of domestic MFP business in FY19 and FY20 have been reclassified into Workplace Solutions Business Group, making it possible to© 2021 Toshiba Tec Corporationcompare the numbers with FY21 onwards

29

Business performance of Workplace Solutions Business Group

2.6%

4.1%

Operating Profit Margin

-0.1%
-3.4%
196.4

175.0

158.9

（Billions of Yen）

170.0

Net Sales

4.5
△0.1

△5.5

7.0
Operating Profit*The MFP business for domestic market has been transferred from Retail Solutions Business Group to Workplace Solutions Business Group effective from April. 1, 2021
In the above graph, the results of domestic MFP business in FY19 and FY20 have been reclassified into Workplace Solutions Business Group, making it possible to© 2021 Toshiba Tec Corporationcompare the numbers with FY21 onwards

30

FY21～FY23 Resources Allocation
Optimal allocation of management resources with the aim of achieving
sustainable growth and improving corporate value
Investment

CAPEX

31 B yen

44 B yen

R&D
78 B yen

78 B yen

FY18-20
Actual

FY21-23Plan

34 B yen
2 B yen
FY18-20
Actual

FY21-23
Plan

RS：Next generation store、Payment、
SCM、Asian business
WS：ECM、DMS

FY18-20
Actual

FY21-23
Plan

RS：System for Data business
Enhancement of cloud function,
Expansion of Asian business

RS：Investigate R&D themes for
4 focused domains in depth
ELERA-Retail（Implementation)

WS：Automation・Smart control

WS：Cloud services, New solutions

New：Data services、Investment in VC
Common：Productivity improvement© 2021 Toshiba Tec Corporation31

Toshiba Tec’s adherence to SDGs through its Growth Strategy
Contribute to sustainable social growth by creating solutions through DX to improve daily
operational efficiency and resolve issues as society changes dramaticallyToshiba Tec, as a solution partner, focuses on its efforts to implement
the SDGs along with customers by contributing its value creation in“retail”, “office”, “logistics” & “manufacturing”

Society Issues■Economic
development of■Integration of EC
community and social and bricks-andcost saving
mortar stores■Variety ofcheckout andpayment methods

Customer Issues■Work-style reformand promotion of
response to labor
shortage■Strengthen marketing■Improve operational
efficiency and productivityof our customers■Saving of paper
resources■Reduce food loss andwaste■Build a social
infrastructure forecosystem■Maximum reduction inboth the use anddisposal of resources ⚫

DX Strategy
contributing to a society

Toshiba Tec’s unique solutions⚫ Solutions derived from in-depth
analysis of the real workplace⚫ Privacy・Personnel information
protection

Toshiba Tec’s initiatives for SDGs

© 2021 Toshiba Tec Corporation32

Forward-looking statements concerning Toshiba Tec's future
performance contained in this presentation represent certain
reasonable assumptions based on economic, financial andcompetitive data and information currently available. However,actual results will be affected by the business and competitiveenvironment and may differ materially from forecasts.

© 2021 Toshiba Tec Corporation

33