FY2019 Consolidated
Business Results

May 26, 2020

© 2020 Toshiba Tec Corporation

ContentFY2019 Consolidated
01 Business Results

02 FY2020 Forecast© 2020 Toshiba Tec Corporation

1

01
FY2019 Consolidated
Business Results© 2020 Toshiba Tec Corporation

2

Key Messages（FY2019 Results）
Domestic retail solutions business reported a record
high operating profit- Incorporated the increasing demand of POS systems triggered by
the consumption tax increase and reduced tax rate system.

4Q performance deteriorated due to the COVID-19- The COVID-19 negatively affected sales of 13 billion yen and operating
profit of 5 billion yen respectively despite of our measures taken tominimize its impact.

A year-end dividend is decreased to 10 yen due toworsening performance- Annual dividend is 30 yen, representing a higher payout ratio than thetargeted 30%.

© 2020 Toshiba Tec Corporation3

FY2019 Business Results (Consolidated)
FY2019Forecast

FY2018(Feb 6)

Actual

483.8

485.0

476.8

14.0

17.0

18.0

(2.9%)(3.5%)(3.8%)

11.6

15.5

16.5

(2.4%)(3.2%)(3.5%)

3.7

11.0

11.2

(0.8%)(2.3%)(2.4%)

US$109.13

108.43

EUR121.27

121.22(Billions of yen)

Net Sales
Operating Profit(Rate of sales)

Ordinary Profit(Rate of sales)

Profit Attributable toOwners of Parent(Rate of sales)

Foreign currency
exchange rate(Yen)FY2019ActualDifference
vs FY2019 FC(Feb 6)

vs FY2018
Actual

△1.2+7.0

△3.0

△4.0

△3.9

△4.9

△7.3

△7.5

110.69+0.70△1.56

128.78+0.05△7.51© 2020 Toshiba Tec Corporation4

Operating Profit Analysis of FY2019(Billions of yen)

Gross Profit△4.9 billion yen

SG&A＋0.9 billion yen+9.1▲5.4Mix

18.0

Sales Volume(Excl.
the impact ofCOVID-19)

▲5.0
▲3.6
The impactof COVID-19

▲2.0

▲0.3
Currency Exchange

R&D

Currency Exchange
PersonnelExpenses

FY2018Operating
Profit+2.6

+0.6

14.0

Othes

FY2019OperatingProfit© 2020 Toshiba Tec Corporation

5FY2019 Business Results by Segment(Billions of yen)

RetailSolutions
BusinessGroupNet Sales

Operating
Profit(Rate of sales)

103.9

207.6

FY2019FY2019FY2019Forecast

FY2018Actual(Feb.6)

Actual

311.5

306.0

292.3

14.3

15.0

12.3

(4.6％)(4.9％)(4.2%)

110.7

181.6

Difference
vs Forecast(Feb.6)

vs FY2018
Actual+5.5 +19.2△0.7+2.0

Overseas

Domestic

FY2018© 2020 Toshiba Tec Corporation6

FY2019 Business Results by Segment
FY2019FY2019FY2018ActualForecast(Feb.6)

ActualNet Sales

179.9

188.0

192.9

Operating
Profit△0.4

2.05.7(-%)(1.1%)(2.9%)(Billions of yen)

PrintingSolutions
BusinessGroup(Rate of sales)

Difference
Vs FY2019 FC(Feb.6)

Vs FY2018
Actual△8.1 △13.1
△2.4

△6.0

45.9

China, etc

56.8

61.5

Europe83.7

85.5

Americas

FY2019FY201839.4© 2020 Toshiba Tec Corporation

7

FY2019 Balance Sheet
Secure liquidity on hand in preparation for
drastic changes of our business environment(Billions of yen)

Assets

275.1
55.5

60.1

Liabilities and Net Assets

288.5

275.1

53.3

-Cash and cash
equivalents

59.7-Notes andaccounts
receivable-trade

46.5-Inventories

29.1-Other current
assets85.8

99.9-Non-current
assets

19/3E

20/3E

43.3
30.4

0.4

288.5
1.2

173.9

190.9

100.8

96.4

19/3E

-Loanspayable-Others
liabilities-Net
Assets

20/3E© 2020 Toshiba Tec Corporation

8FY2019 Cash Flows
Generate free cash flows by strengthening
cash flow management system
Billions of yen
Free Cash Flow
Cash Flows from investing activities

20.718.4

Cash Flows from operating activities

6.95.6

△12.8

△13.8

FY2018FY2019© 2020 Toshiba Tec Corporation

902
FY2020 Forecast© 2020 Toshiba Tec Corporation

10

Key Messages（FY2020 Outlook）
Transform the business structure to more profit-oriented- Accelerate structural reform to reduce fixed expenses in FY2020 and aim
to achieve a 5.0% of operating profit ratio in FY2021.
(Extraordinary loss of 6 billion yen is forecasted in FY2020)

Return to a profitable operation by executing structuralreform and business transformation
・Printing Solutions Business- Investigate every possible strategic option including an alliance withother enterprise in response to market changes of the post-corona.
・Retail Solutions Business- Continue aggressive investments in stores and its connected fields.
- Review the business structure of overseas unprofitable regions.

Reduction in fixed remuneration for executive officers- Return a part of remuneration for all executive officers from June
2020, anticipating a worsening performance under a severe businesscondition due to the COVID-19.

© 2020 Toshiba Tec Corporation11FY2020 Forecast – The impact of the COVID-19

The impact of the COVID-19 on FY2020 outlook
Estimated impact :- Sales of 70 billion yen/Operating Profit of 27 billion yen
The above amount of impact is calculated based on the data of economic crises in
the past.

Recovery premise for economic activities
・Up to the end of first half of FY2020, economic activities in every regionof the world are expected to be shrinking or in deep recession.
・In the latter half of FY2020, the global economy is expected to achieve a
gradual recovery thanks to economic stimulus measures implemented byeach country.

Supply chain（Toshiba Tec Group）
・Solved most of supply problems by resuming operation of manufacturing
sites in China and ASEAN.
・There are still some concerns in respect of parts procurement from some
Asian suppliers, but the impact on manufacturing is limited.
© 2020 Toshiba Tec Corporation12

FY2020 Outlook: Aim at a recovery of corporate value
Improve the company-wide ROS by active investments inretail business and a quick recovery of printing business
FY20

Retail(Domestic)
GrowthStrategyRecoveryinProfitability

Retail(Overseas)Aggressive investments in thegrowing business domains

FY21Printing①Stores ②Payment ③Supply Chain④Data service

Promote LMR &Digital solutions
as the twinpillars

Review businessstructure of
unprofitableregions

Pursue every
opportunity ofstrategic options,such as alliance

Forecast

ROS
2.4％

TargetROS
５％

Structural transformation with an eye to the post-corona
Structural reform：Reduce 700 personnel in FY2020(Reduced 300 overseas personnel in FY19）

Reduction in fixed expense ： Review controllable expenses© 2020 Toshiba Tec Corporation13FY2020 basic direction for the future (Retail)
Make full use of our POS business strengths and help
our customers solve their issues by offering data service
and solution service
Customer issues further accelerated by the impact of COVID-19
Shrink of brick-and-mortar stores due to the growth of e-commerce／Diversified payment・
Cashless／Operational efficiency/Automation・Labor saving／Optimization of supply chain

Toshiba Tec’s
Basic strategy
Automation/Labor saving
New purchase experience

Multiple payment
solutions

Data service
Optimal solutions
across supply chain

Toshiba Tec’s solutions＜Self-Checkout solutions＞
Self-order terminals、Cart OS、 Smartphone POS＜TD Payment business・Smart Receipt＞
Smart payment（Code payment by smart receipt
relating to credit card）＜Smart Receipt＞
Analysis of purchase data、promotion、coupon service＜RFID service＞
Inventory management、Fixtures management、
Reduction in food waste、traceability© 2020 Toshiba Tec Corporation

14

FY2020 basic direction for the future (Printing)Looking ahead to the post-corona, we focus on maximizing profit
by further penetration into LMR *1 markets and by offering
operation support to customers through optimal digital solutions.
The impacts to the printing business caused by the COVID-19
・Changes of workflow(digitalization) by a wide spread of remote working
・Acceleration of document volume (DV) decrease （Assumption）

Direction of printing business based upon the above premise(1)Business expansion by penetration into LMR markets (not depending on office market)
The growing demand for logistic under the influence of COVID-19 is expected to continue
and the needs to support operational efficiency by printing solutions is supposed to increasein the logistic market same as in stores and manufacturing connected through the supply chain.

(2)Further promotion of DMS*2, MIS3＊ (not depending on DV) and other digital solutions,such as on site solutions and back office solutions as Toshiba Tec’s unique LMR solutions(3) Investigation of alliance and collaboration with other companies
Establish the business structure to generate a higher profit ratio in the future by utilizing
the strengths of Toshiba Tec’s printing business, such as an accessibility to LMR markets, avariety of printer line-up, global sales and service network.
＊1 LMR・・・L(Logistics)、M(Manufacturing)、R(Retail)＊2 DMS・・・Document Management System＊3 MIS・・・Managed IT services© 2020 Toshiba Tec Corporation

15FY2020 Forecast (Consolidated)(Billion of yen)

FY2019Difference

ForecastActualvs FY2019

410.0

483.8

10.0

14.0(2.4%)(2.9%)

7.0

11.6(1.7%)(2.4%)

0.5

3.7(0.1%)(0.8%)

US$105.00

109.13△4.13

EUR

120.00121.27△1.27

Net Sales
Operating Profit(Rate of sales)

Ordinary Profit(Rate of sales)

Profit Attributable toOwners of Parent(Rate of sales)

Foreign currency
Exchange rate (Yen)FY2020

△73.8
△4.0
△4.6

△3.2

© 2020 Toshiba Tec Corporation16Operating Profit Analysis of FY2020(Billions of yen)

+5.0
The impact ofCOVID-19
in FY2019+2.0

170

14.0

Sales volume/ mix

△27.0

10.0

+12.0
FY2019OperatingProfit+4.0

Reduction inFixed expenses

The impact of structural reforms
COVID-19

FY2020OperatingProfit© 2020 Toshiba Tec Corporation

17

FY2020 Forecast by Segment(Billions of yen)

FY2020FY2019ActualForecast

RetailSolutions
BusinessGroupNet Sales
Operating Profit(Rate of sales)

PrintingSolutions
BusinessGroupNet Sales
Operating Profit(Rate of sales)

Consolidated Net Sales
Total

Operating Profit(Rate of sales)

Differencevs FY2019266.0311.5

△45.5

10.0

14.3(3.8％)(4.6％)

153.0179.9△26.90.0△0.4+0.4(0.0%)

(-%)

410.0

483.8

10.0

14.0(2.4%)(2.9%)

△4.3

△73.8
△4.0
© 2020 Toshiba Tec Corporation18

Appendix© 2020 Toshiba Tec Corporation

19

FY2020 Forecast: Impact of Currency Exchange Rate

Premise Rate

Effect of Depreciationby 1 yen (Annual)

FY2020Net Sales

OperatingProfit

US$105 yen＋1.6 billion yen△0.2 billion yenEUR120 yen+0.4 billion yen＋0.1 billion yen© 2020 Toshiba Tec Corporation20

FY2020 Forecast:Capital investment, Depreciation and Amortization, R&D expenses(Billions of Yen)

Capital investment ,Depreciation and Amortization

R&D expenses
352530

22.4

26.9

2520

14.1 14.3

23.5

1716.6
15

27.8

1420

1510105500
FY2018
Capital Investment

FY2019FY2020
Forecast

FY2018Depreciation & Amortization*The increased amount of tangible fixed asset and intangible fixed asset includes theimpact of adopting a new lease accounting to overseas subsidiaries from FY2019

FY2019FY2020
Forecast

R&D expenses© 2020 Toshiba Tec Corporation

21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.

© 2020 Toshiba Tec Corporation22

© 2020 Toshiba Tec Corporation23