Presentation on
FY24 Management Policy
FY24～26 Mid-Term Business Plan (MTBP)May 23, 2024
Hironobu Nishikori
President & CEO
Toshiba Tec Corporation© 2024 Toshiba Tec Corporation

Contents

01 Review of FY20 – FY23••

Strengthening the profitability of existing businesses
Global Growth Strategies and Initiatives

02 FY24 Mid-Term Business Plan (MTBP)• Target• Growth Strategies for the Future1) Strengthening the profitability of core businesses
2) Expansion of new business areas
3) Management Transformation, Human Resource Enhancement, Sustainability© 2024 Toshiba Tec Corporation

2

Contents

01 Review of FY20 – FY23••

Strengthening the profitability of existing businesses
Global Growth Strategies and Initiatives

02 FY24 Mid-Term Business Plan (MTBP)• Target• Growth Strategies for the Future1) Strengthening the profitability of core businesses
2) Expansion of new business areas
3) Management Transformation, Human Resource Enhancement, Sustainability© 2024 Toshiba Tec Corporation3

Priority issues and results of actions since my assignment as President
Addressing the challenges of strengthening the earnings structure andimproving Workplace Solutions Business profitability
Recognitionof issues

Basic
Profitability

ResultConsolidated sales/operating profit

・FY19～FY23(Billion yen)

FY20

FY23

Structural reforms: 1,900H/C

Net Sales

405.7

548.1

(Expenses: 10.6 B yen, annual effect vs. FY19: 14.5

8.3

15.9

Operating Profit

Workplace
Solutions
Business
Restructuring

ActionB yen)• Improvement of operating profit
FY20▲5.5 B yen → FY23 13.6 B yen•

JV Establishment with Ricoh (July FY24)•

Transfer of IJ business to RISO (July FY24)© 2024 Toshiba Tec Corporation4

Toshiba Tec’s growth model～ New value creation through co-creation with partners ～To become a global top solutions partner by generating new value throughco-creation with the aim of contributing to the resolution of social issues
Customer
Micro service＜Resolution of social issues＞⚫
⚫
⚫
⚫

Reduction of waste loss
Reduction of CO2
Reduction of paper consumption
Response to labor shortage

The top global market share in POS :approx. 2.94 M units (*1)
POS share in Japan: approx. 50％

Solutions Partner
partnerMicroservice

Open API

Cyber

Contribution
Creation of
new services
new added value

Strengthen customer basefrom a medium to long term
perspective

The # of global Toshiba Tec’s subsidiaries: 66# Service tech Japan approx. 2K, Overseas approx. 3K
8 of the Japan’s top 10 retailers are our customers
6 of the top 10 U.S. retailers are our customers
4 of the European top 10 retailers are our customers
MFPs global installed units: approx. 1.4 M units (*2)

Network
effectGlobalcustomerbase

Co-creation

Physical

Opportunity

01SIGHT, PoC

Technology

Killer APP

Development

Enhance SW Dev

Globalsales & service
network

Toshiba Tec’s touchpoints
Platform*1 (Source) RBR Global EPOS and Self-Checkout 2023 install base TOSHIBA and Toshiba TEC POS and SCO*2 Based on our own research

Global platform© 2024 Toshiba Tec Corporation

5

Growth Strategies for the Future
Continue to strongly promote global management
and new business launch for growth
Recognitionof Issues

Growth Strategies
・Replacement of managementin the overseas retail business

GlobalManagement

TGCS President＆CEO
Rance
Poehler(’20/11~）

TGCS EU MD
Andrew McDaniel(‘22/1~)

Toshiba TEC's platform
supporting the co-creation
Partners
Partners
ecosystem

・Established Innovation & Incubation Center

in Dallas, U.S.
・Strengthening Japan-U.S. cooperation

Partners
Producers

New BusinessStart-up

・New business expansion:
FY23 Net sales: 41.0 B yen
・Nexmart 01 GO opened
・Expansion of partner strategy

e-BRIDGE
Cloud Services

Partners
Consumers

Retailers

Manufacturers

Solve business challenges

Ecosystem

Logistics

Ecosystem© 2024 Toshiba Tec Corporation

6

Review of FY20 - FY23
Basic profitability improved due to various measures taken over the past 4 years
In FY23, despite the impact of overseas market conditions, secured earnings on par with FY22
Continue to invest in new DX businesses for the future
Net Sales
Operating Profit
ROS (%)(Unit: Billion yen)

8,000

7,000

6,000

5,000

2.0%

8.3

3,000

548.1

510.8

2.5%

2.0%

16.1

11.6

4,000

15.9

0.5%

0.0%

1,000

0

-0.5%

FY20
Business
Environment

FY21

FY22

FY23

Covid-19 impact
High interest rates
in Europe and America​

Supply chain constrain

GrowthStrategies
for the future

1.5%

1.0%

2,000

Structural
Reforms

3.5%

3.0%

445.3

405.7

2.9%

3.1%

2.6%

9,000

✓

Structural reforms/Transformation✓

Strengthening in-house
DX initiatives✓

Opened TEC 01
SIGHT

✓

TGCS Change of
President(U/EU)✓✓

Estab. of a development
and manufacturing JVwith Ricoh

Established Innovation &Incubation Center in
Dallas/US✓✓

Transfer of IJ
business to RISO

Opened Nexmart 01 GO

Upfront investment for the future© 2024 Toshiba Tec Corporation7

Review of Business Performance (Retail Solutions Business)
Domestic Retail performance improved, while overseas Retail significantly declined
In overall Retail business, continue to invest in new businesses ahead of time
Domestic RetailOverseas Retail◆ Steady growth
FY23

•
•
•

Net Sales vs Prev. Y +21.0 B yen
OPvs Prev. Y +3.1 B yen
ROSvs Prev. Y +1.3 Pts(Billion yen)

3,000

5.9%

4.8%

3.5%

10.0%

Retail Business◆ Profitability improvement efforts
underway◆ Investing ahead and profitability
improvement efforts underway

FY23

FY23

Net Sales vs Prev. Y ▲7.0 B yen
OPvs Prev. Y ▲10.0 B yen
ROSvs Prev. Y ▲7.4 Pts•••(Billion yen)
3,000

1.0%

2.7%

5.0%

-4.7%

5.0%

2,500

Net Sales vs Prev. Y ＋14.1 B yen
OPvs Prev. Y ▲6.9 B yen
ROSvs Prev. Y ▲2.4 Pts•••(Billion yen)

4,800

4.0%

10.0%

3.1%

0.7%

4,300
0.0%

5.0%

2,500

0.0%
3,800

0.0%

-5.0%

311.0

2,000

177.0

2,000

159.8

156.0

141.0

-5.0%

1,500

-10.0%

134.0

107.2

297.0

3,300

267.0

-10.0%

-5.0%

2,800

-10.0%

2,300-15.0%

1,800-20.0%-15.0%

1,500-15.0%

9.5

8.5

1,000

1,000

3.8

-20.0%

500

1.1-25.0%

5.4-20.0%

10.6-25.0%

1,300
0

9.2

-25.0%-30.0%-30.0%

500

800

2.3

(500)
-35.0%-35.0%

300

0-40.0%FY21FY22Net Sales

Operating Profit

FY23
ROS

▲6.2

(1,000)

FY21

FY22

Net Sales

Operating Profit

FY23
ROS

-30.0%-35.0%-40.0%

(200)

FY21

FY22

Net Sales

Operating Profit

FY23-40.0%ROS© 2024 Toshiba Tec Corporation

8

FY23 Result and FY24 Profitability Improvement Plan (Overseas Retail)Affected by market conditions, the delay in improving earnings is an issue
In FY24, we will recover by ensuring delivery of projects and expanding ELERA®
◆ ELERA® Plan＊1 … 2◆ FY23 Results and FY24 Plan … 1•

FY23 : Restraint on customer investment delayed U.S.
replacement projects(US$70M for the three major companies)•

FY24 : Already received U.S. replacement orders
pushed out from FY23 and Large orders in Australia(Unit: Billion yen)

Net
Sales

150.0
141.0

134.0

•

Completed full-stack ELERA® functions in 1Q24•

Sales expansion for Grocery, Further acceleration ofsales with the addition of IoT, IS *2, aaS, etc.

•

Expansion outside of U.S (Latin America, Europe, Asia)

2

New
Investment
Projects

152.0

IoT
Installation Service

Strong pipeline

1

Operating
Profit

3.5

FY22
Act.

FY23

aaS

Replacement
OrdersPlan

3.8(high grossmargin)

▲6.2

０

FY23

FY24
Plan

LicenseSoftware Maintenance
Professional Service

Received

~FY23

Plan

Act.

FY24~

*1 ELERA® is a TGCS trademark*2 IS：Installation Service© 2024 Toshiba Tec Corporation

9

Review of Business Performance (Workplace Solutions Business)
Significant increase in profit for the third consecutive year,
resulting in a strong contribution to company-wide operating profit in FY23
Workplace Solutions Business◆ Significant recovery from thedeterioration caused by Covid-19
FY23 Result• Net Sales
• OP
• ROS

(Unit: Billion yen)
4,800

3.2%

0.5%
vs Prev. Y +24.0 B yen
vs Prev. Y ＋6.7 B yen
vs Prev. Y +2.4 Pts◆ In FY20, business performance deteriorated
due to the Covid-19 pandemic

3,800

10.0%

5.0%

-3.4%

0.0%

182.1

158.9

241.6

217.7

2,800

1,800

5.6%

-5.0%

-10.0%

13.6
6.9-15.0%-20.0%

800◆ Significant improvement for threeconsecutive years from FY20 due to

1.0-25.0%-30.0%(200)-35.0%

continuous cost structure improvement▲5.5(1,200)* FY20 results
MFP domestic business was included in Retail Solutions business until FY20,
which was transferred to the Workplace Solutions Business from FY21. FY20
results have been adjusted to be in line with the current business segment.

-40.0%※FY20 *FY21

Net Sales

FY22

Operating Profit

FY23

ROS

© 2024 Toshiba Tec Corporation10

Review of Business Performance (New Business)
In the new business, improve profitability byadding services + software to HW/maintenance
Expansion of new businesses(Unit: Billion yen)40%

◆ Consolidated net sales of new business• FY23 Net Sales vs Plan＋8.2 B yen (125％)
vs Prev. Y＋22.2 B yen (218%)

37%

400

34%

38%

38%

36%

41.0

Net Sales
34%

Operating Profit
32%

Marginal Profit %

200

30%

18.8

12.7

28%

26%

• FY21~23 CAGR 80%

0

24%

22%

▲3.3

(200)

FY21

▲3.2

20%

FY23

Approx.

◆ Challenges and Future Initiatives• The scale of sales of new businesses is expanding, we are now

▲5.3
FY22

in theinvestment-leading phase40％
Approx.

Service + Software

20％(High added value)• FY23 is deployment period of hardware (Self-checkout, Cart POS, etc.), which isbasis for DX.

add highly profitable services +software to the foundation (FY24 Operating income of 1.3 billion yen)

• Up to FY26, we aim to

Hardware/Maintenance
FY23

FY26
© 2024 Toshiba Tec Corporation

11

Status of Growth Business Initiatives of Domestic Retail
Expanding opportunities for co-creation to establish an ecosystem
Opened a physical store for demonstration experiments and conducted high-quality PoC
Expansion of opportunities for co-creation◆ TEC 01 SIGHT （FY20）◆ Improving the quality of PoC（# of PoC: 12 in FY23 ）・複数客先での検証を経て最適な商品をリリース
重量チェック付きカートPOS◆ NEXMART 01 GO (FY23)
On-going Solutions
AI Crime Prevention System
Remote Age Verification

Face recognition payment
IoT Cooler
Signage

PoC１

充電運用

新型ピピットセルフ

リアル販促（カートタイプ） 2024年
4月発売の効率向上評価
PoC２

・スマホ型レジアプリの利用促進に向けたリテールメディアの実証実験

重量変動検知連結充電の有用性検証

計量器搭載

来店時

回遊時 操作していない時

購買体験の向上
リテールメディア収益の獲得

Display visualization© 2024 Toshiba Tec Corporation

12

Status of Growth Business Initiatives of Domestic Retail
Expanding opportunities for co-creation to establish an ecosystem
Opened a physical store for demonstration experiments and conducted high-quality PoC
Expansion of opportunities for co-creation◆ TEC 01 SIGHT （FY20）◆ Improving the quality of PoC（# of PoC: 12 in FY23 ）•After verification at multiple
customer sites, the optimal
product is released
New Cart POS◆ NEXMART 01 GO (FY23)
On-going Solutions
AI Crime Prevention System
Remote Age Verification

Face recognition payment
IoT Cooler
Signage

PoC１

Efficiency
Improvement
Evaluation ofCharging operation

PoC２

Verification of theusefulness of weightfluctuation detection•

Demonstration experiment ofretail media to promote theuse of smartphone-type cash
register apps
Real Sales Promotion

with weight check(Cart Type)Link
charging
Built-inweighing
instrument

2024
Releasedin April

At Store

At cashercounter

When notoperating

Improving the shopping
experience
Earn retail media
revenue and profit

Display visualization© 2024 Toshiba Tec Corporation

13

Status of Growth Business Initiatives of Domestic Retail
Further expansion of partner strategies andpromotion of introduction of generative AI services
Expand partner strategy

Promoting the introduction of generative AI services◆ Retail AI Open Seminar◆ Announcement of development of retailpromotion optimization solution using
generative AI (March 2024)•

Optimal promotion for an individual consumer•

Measuring the effectiveness of sales and profits in retail stores•

Create the most economically effective combination of promotions from ahuge number of patterns◆ Participation in a symposium on
retail DX© 2024 Toshiba Tec Corporation

14

Status of Growth Business Initiatives of Domestic Retail
In growth areas, the foundation for business expansion is being strengthened

Data Services

High

Retail Media/Coupons/Data Distribution

Value Added

Labor saving,
Crime prevention,
Sales promotion
system Provision

Providing solutions
for entire issues ofthe store

Expansion of ELERA®

184 company
contracts in Japan
Approx.

4,000 stores

Solution(2.3 times compared to FY20)

Smart Receipt ®
# of members exceeded

1.91 million

フルセルフ
Cloud POS
Smartphone
カート
POS

スマホ
POS

Low

Touchpoint, ELERA®
Operational Results*

Cart POS

Full Selfcheckout

Touchpoints
expansion

505 companies and16,000 stores installed
Introduction of Next-Gen. system

100,000 units

Planned to replacewith major retailers* As of the end of April 2024

© 2024 Toshiba Tec Corporation

15

Status of Growth Business Initiatives of Overseas RetailStrengthening the business foundation and expanding ELERA® for future growth
Strengthening the foundation for overseas business growth• Global Net Promoter Score increased +11 year-over-year,+19 since 2022 to all-time high (Customer Insights Survey, 2024)• 68% of North American retail customers say that Toshiba is a“strategic partner” (Customer Insights Survey, 2024)

Announcement of friction
solution in NRF (Jan. 2024)• FY23: Acquired 120 new customers in North America
Expansion of ELERA®

• ELERA® introduced to 3 of the Top 10
retailers in the U.S.
• Projects are currently underway for the
first large-scale deployment in Europe
and Latin America

Wayfair's flagship store
Introducing ELERA®(May 2024)(ELERA® Case Studies Overseas)•
Leading U.S. grocery store: More than 100 stores offering solutions
such as loss prevention and produce recognition, with a 10x return on
investment•
Global Retail Industry: Deploying an omnichannel returns system inhundreds of stores© 2024 Toshiba Tec Corporation

16

External evaluation of the company's solutions that support growth strategies
Both the retail business and the workplace business arehighly regarded globally for their solutions
Retail Business

External Recognition and Awards for ELERA®

Top-ranked
rating for 2 years◆ In the IDC MarketScape,◆ At the Retail Tech Breakthrough Awards,• Earn a Leader Rating• In Retail Tech Breakthrough Awards 2023

(Worldwide Point-of -Sale Software Vendors in
Grocery and Food Store Retail, 2022 )• Earn a Major Player Rating(Worldwide Retail Commerce Platform Software Provider, 2023）

Workplace Business

Won awards for 2 years
Overall Retail Tech Company of the Year
In-Store Experience Innovation of the Year
• In Retail Tech Breakthrough Awards 2024

AI Innovation of the YearAwards related to MFP/BCS/RFID
25th Auto-ID System Award
Special Award : MFP-RFID

Toshiba's Global Print
Toshiba‘s Global Print
Wins Stevie® Award
2023

Toshiba's Global Print Earns
Keypoint Intelligence’s
Gold Rating

2022 Gold MeritAward forTechnology within
the Cloud Services
category

Toshiba's First-of-itsKind Printer Earns
Gold Stevie® Award2024© 2024 Toshiba TEC Corporation

17

Contents

01 Review of FY20 – FY23••

Strengthening the profitability of existing businesses
Global Growth Strategies and Initiatives

02 FY24 Mid-Term Business Plan (MTBP)• Target• Growth Strategies for the Future1) Strengthening the profitability of core businesses
2) Expansion of new business areas
3) Management Transformation, Human Resource Enhancement, Sustainability© 2024 Toshiba TEC Corporation

18

FY24 MTBP Financial Target
Aim at a 6.0% ROS and a 15.0% ROIC in FY26
by executing business transformation and corporate transformation
FY24 Plan

FY25 Plan

FY26 Plan(USD 145yen、EUR 155yen)(USD 135yen、EUR 145yen)(USD 135yen、EUR 145yen)

Net Sales

550.0 B yen

540.0 B yen

550.0 B yen

Operating Profit

18.0 B yen

25.0 B yen

33.0 B yen

ROS(%)

3.3％

4.6％

6.0％

Current Net Profit

20.0 B yen*1

12.0 B yen

17.0 B yen

Cash flows fromOperating activities
Return on invested capitals(ROIC*2)23.0 B yen

26.0 B yen

35.0 B yen

9%

12％

15％

*1 Including extraordinary income 19.5 billion yen*2 ROIC = Operating profit after tax (operating profit/loss × (1-tax rate)) ÷ Invested capital (average interest-bearing debt + net assets)© 2024 Toshiba TEC Corporation

19

FY24 MTBP Financial Target by Segment
Strengthening profitability through business transformation, aiming for a 6% ROS
in both segments in FY26. Continued investment in new DX businesses
Retail Solutions Business

Workplace Solutions Business ＊Operating Profit／ROS %Operating Profit／ROS % (Domestic, Overseas)

FY24
FY25
FY26
5,000

10.0%

318.0

5.8%

3,500

10.0%

4.3%

5.0%

5.1%

6.0%

5.0%

3,000

345.0

335.0

4,000

3,500

4.2%

2.5%

4,500

FY24 10.0 B yen／4.3％
FY25 11.0 B yen／5.1％
FY26 13.0 B yen／6.0％

8.0 B yen／2.5％ (4.8%、0.0％)
14.0 B yen／4.2％ (5.7%、2.5％)
20.0 B yen／5.8％ (6.7%、4.8％)

235.0

0.0%

0.0%

215.0

2,500
-5.0%

215.0

-5.0%

-10.0%
3,000

2,500

-10.0%

Domestic

Domestic

Domestic

52%

52%

52%

2,000

20.0

14.0

2,000

-15.0%

1,500-20.0%

10.0

11.0

13.0

-15.0%-20.0%-25.0%
1,000
1,500

1,000

Overseas8.0

48%-25.0%

Overseas

Overseas-30.0%-30.0%

48%

48%

500

-35.0%

500-35.0%

0-40.0%

0

FY24

FY25

Net Sales

Operating Profit-40.0%

FY24

FY26

ROS

Net Sales

FY25

Operating Profit＊ Includes inkjet business until June FY24

FY26

ROS
© 2024 Toshiba Tec Corporation

20

Cash allocation and distribution of investment
Invest in growth areas while securing an operating cash flow
through improved profitability. Maintain a stable financial structure
Growth investment represents
74% of the total investments

FY24 – 26 Plan

FY21 – 23 Results
Resource
inputsFinancial
targets

Return toshareholders（Target areas）
Generative AI, Cloud,Data services, etc.

Investment

7.9 B yen/3 year total

2.30
times

18.5 B yen/3 year total

CAPEX

54.4 B yen/3 year total

0.84
times

45.5 B yen/3 year total

R&D

77.0 B yen/3 year total

0.94
times

72.1 B yen/3 year total

Capital adequacy ratio

30% or more

Maintain at least 30% or more

Total asset turnover

1.5～1.7

Maintain 1.6 level

ROIC

8.3％ in FY23

15.0％ in FY26

Aim for a continued increase while targeting around 30% of consolidated dividend ratio

Investigate an adequate implementation of purchasing treasury stock© 2024 Toshiba Tec Corporation21

Toshiba Tec’s growth model～ New value creation through co-creation with partners ～To become a global top solutions partner by generating new value throughco-creation with the aim of contributing to the resolution of social issues
Customer
Micro service＜Resolution of social issues＞⚫
⚫
⚫
⚫

Reduction of waste loss
Reduction of CO2
Reduction of paper consumption
Response to labor shortage

The top global market share in POS :approx. 2.94 M units (*1)
POS share in Japan: approx. 50％

Solutions Partner
partnerMicroservice

Open API

Cyber

Contribution
Creation of
new services
new added value

Strengthen customer basefrom a medium to long term
perspective

The # of global Toshiba Tec’s subsidiaries: 66# Service tech Japan approx. 2K, Overseas approx. 3K
8 of the Japan’s top 10 retailers are our customers
6 of the top 10 U.S. retailers are our customers
4 of the European top 10 retailers are our customers
MFPs global installed units: approx. 1.4 M units (*2)

Network
effectGlobalcustomerbase

Co-creation

Physical

Opportunity

01SIGHT, PoC

Technology

Killer APP

Development

Enhance SW Dev

Globalsales & service
network

Toshiba Tec’s touchpoints
Platform*1 (Source) RBR Global EPOS and Self-Checkout 2023 install base TOSHIBA and Toshiba TEC POS and SCO*2 Based on our own research

Global platform© 2024 Toshiba Tec Corporation

22

FY24 MTBP Corporate Strategy

Corporate Strategy
１ Strengthening the profitability of core businesses
2

Prioritize allocation ofmanagement resources

Expansion of new business areas

Transformation, Human Resource
3 Management
Enhancement, Sustainability

・No.1 share of
the global POS market (*1)

・Number of consolidated
subsidiaries: 66

・Number of consolidated
employees: 19,093

・Number of Service tech:total approx. 5,000

・Number of SW technicians: FY23 total approx. 1,400 → FY26 1,800

To become a global top solutions partner*1(Source) RBR Global EPOS and Self-Checkout 2023
Installed base share of POS terminal and Self-Checkout by “TOSHIBA” + “Toshiba Tec”

© 2024 Toshiba Tec Corporation

23

Strengthening the profitability of core businesses

１ (Retail Solutions Business)••

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Standardization of HW development and manufacturing, full-scale expansion of ELERA® business
Utilization of the global maintenance network: BPO・Wall to Wall Maintenance Biz Expansion

No.1 share of
the global POS market
2.94 M units

No.1 share ofDomestic POS market
Approx. 50%

8 of the Japan’s 6 of the top 10 U.S. 4 of the European
top 10 retailers are
top 10 retailers are
retailers are
our customers
our customers
our customers

Global◆ Standardization of HW development and manufacturing◆ Establishment of a global SW development system andfull-scale expansion of ELERA® business◆ Maximizing the use of the global maintenance network

Improvement ofrecurring ratio
FY23 26%
FY26 30％

Service tech:Approx.2,000 in Japan, 3,000 overseas
Domestic◆ Further enhancement of Sales & Marketing•

Respond to individual issues. Introduction of digital marketing

Overseas◆ Structural reforms•

Review of unprofitable businesses→ Achieve profitability in all regions by the end of FY25
© 2024 Toshiba Tec Corporation

24

Strengthening the profitability of core businesses

１ (Workplace Solutions Business)

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

FY24 MTBP
FY24
FY25
FY26
OP／ROS
10 B yen／4.3％
11 B yen／5.1%
13 B yen／6.0%②ワークプレイス事業の収益力強化+1.7 Pts Improvement
Establish Development/Manufacturing JV◼ Strengthening cost competitiveness and hedging

geopolitical risks through Industry-Leading

Production Volume◼ Developing competitive and attractive devices andstrengthening ability to comply with standards(safety and environmental standards) with

Industry-Leading Development
Capabilities◼ Creating New Values through synergies
between the two companies

Accelerate Business of Growth Areas◼ Growth areas FY23→FY26 Rev 9.2 B→15.4 B yen◼ By capturing the DX trends in the Office and Gemba, lead andsupport the evolution of our customers’ businesses

Evolution of “Office” environment
Paper

Digital Document

Business Process
Solution

Workflow Automation

MPS
Device/Print
Management
Converting Paper document
To digital data by scanning
Document Management
Device Management

Storage

DMS

iPaaS related
Solutions

ECM/WF
Workflow Solution

e-BRIDGE
Cloud Services

Evolution of “Gemba” environment

Workflow

Office / Gemba
Total Solution

Inline PrinterAuto Labeling

Manual Labeling
Barcode/RFID
Printing
MPS：Managed Print Services
DMS：Document Management System

ECM/WF：Enterprise Contents Management//Workflow
iPaaS：Integration Platform as a Service

Barcode/Auto-ID/RFID Solution

High Volume Printing /Auto-Label Applicator

A-BRID：Controller utilizing MFP technology allows expansion of various functions
Gemba : On-site Workplaces other than office, such as logistics centers, factories, stores, etc.

Total
Automation© 2024 Toshiba Tec Corporation

25

Strengthening the profitability of core businesses

１ (Workplace Solutions Business)

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Accelerating the fusion of MFP technology developed in the office fieldand RFID technology developed in the retail field
Our products handle everything from writing to reading RFID data
(Use Case)
Inventory Management

World’s 1st A3
Industry’s first MFP to “Print Color” &“Write RFID Data” at the same time

Tags with color printing makes
it even easier to visually finddata in the warehouse

RFID
Handheld Reader

×

RFID
Handheld
ReaderFrom manufacturing
sites to store backyard

XXXX XXXX

RFID System
Inline Printer

MFP-RFID

XXXX* Based on our own researchLabel PrinterSmart Receipt®

Warehouse

SelfCheckout

POS

RetailOfficeMFP

Cart POS© 2024 Toshiba Tec Corporation

26

２ Expansion of new business

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Expanding business domains based on touchpoints, which are our strengths
toward vertical data integration(Changing the distribution industry and office)Sales management

・No.1 share of
the global POS market (*1)

・Number of consolidated
subsidiaries: 66*1(Source) RBR Global EPOS and Self-Checkout 2023
Installed base share of POS terminal and Self-Checkout by “TOSHIBA” + “Toshiba Tec”

・Number of consolidated
employees: 19,093

・Number of Service Tech:
total approx. 5,000© 2024 Toshiba Tec Corporation27

２ Expansion of new business by utilizing AI/Generative AI

１Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

We aim for a world where data is connected in all areas of the value chain
There are many data deficits and fragmentations,making it difficult to advance DX across the value chain

Current

Consumers

Retailers(Store)Logistics

wholesalers

Manufactures

Producers

Strengthening the organization for
DX support through AI and data science
Providing DX solutions that lead to solving
customer, new company to be

Deficit

Data fragmentation

Complemented by
AI/generative AI

established in October 2024
(plan) to develop AI and platform as a set.

Future Goal

Expand quantity and
Improve quality of data

Consumers
Logistics

Retailers

Data merging& fusion

Manufactures(Store)•Value chain data from all•

Accumulation of connected data

wholesalers
Producers

domains is connected
improves data quality

As the first solution offerings

Specializing in maximizing sales/profits"Promotion Optimization AI
Container powered bygenerative AI"

Store manager is busy and doesn't haveenough time to do customer analysis. We
welcome such sophisticated solutions.
VOC at exhibitions/press releases© 2024 Toshiba Tec Corporation

28

Expansion of new business

２ Forming a consortium in the distribution industry

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Enabling a digital ecosystem through vertical integration of data
Forming a consortium in the distribution industry.
Educational andResearch
Institutions

Manufactures.
Consolidate
disconnected
data

supplyChain's
optimization.

Toshiba Tec
Corporation◆ NRF ‘24 RETAIL’S BIG SHOW

Responding
to labor
shortages.

NextGeneration
Distribution
Building

IT companies

Technologicalevolution.
Logistics &Wholesalers
Municipalities& government
Finance◆ Symposium on Retail DX
Analysis &Think Tanks◆ Retail TEC JAPAN2024

Industry-wide efforts to realize a
distribution ecosystem are accelerating© 2024 Toshiba Tec Corporation

29

２ Expansion of new business

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

In the new business, improve profitability byadding services + software to HW/maintenance
Expansion of new businesses◆ Consolidated net sales of new business
FY26 Net Sales: 85.4 B yen (vs FY23 208％)••

FY23 is deployment period of hardware (Self-checkout, Cart POS, etc.),
which is basis for DX.
Up to FY30, we aim to add highly profitable services +software to the foundation.

(Unit: Billion yen)

New Business Trends

65%
70%

2,050

1,850

1,650

1,450

43%

38%

47%

50%

165.4

60%

50%

40%

Of the new sales

FY23 20%↓

FY26 40%

1,250

850

650

51.4

41.0

68.4

250

10%

14.9

0%

-10%

1.3

50

▲3.2

FY23

30%

20%

7.9

450

(150)

34.0

85.4

1,050

-20%

-30%

FY24

Net Sales

FY25

FY26

Operating Profit

FY30
ROS

© 2024 Toshiba Tec Corporation30

3 Management Transformation

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Transforming into a "Global Top Solutions Partner"
Accelerate business transformation and corporate transformation
Strengthening
profitability

Expansion ofbusiness domains◼ Streamlining operations throughthe use of generative AI, etc.
(Strengthening consolidated
Management capabilities andOptimizing operational efficiency)◼ Responding to a diversifying
market environment through inhouse DX promotion

Human capitalManagement◼ Sales transformation including
expansion of digital touchpoints◼ Human Resource Development(Executives, Global, DX)◼ Promoting diversification ofhuman resource utilization

Enhancement ofcorporate value◼ Strengthening the corporate
brand image (from a manufacturer
to a global top solution partner)(Promotion of women`s and senior`s
activities. Selection of young employees)◼ Organizational culture reform(improvement of engagement)

Management systemreconstruction◼ Establishment of theManagement Transformation
Promotion Department⇒ Accelerating Business Model
Transformation© 2024 Toshiba Tec Corporation

31

“People are Our
Assets”

3 Strengthening human resources

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Execution of human resources strategies towards achieving our goal
“Global Top Solutions Partner”
Enhanced Recruitment◆ Individuals with advanced digitalskills and software skills

Talent Development

Develop and promote diverse
human resources◆ Promotion of women’s activities◆ Development of senior◆ Promotion of senior employees`

management◆ Selecting young talent /activities

Job rotation# of mid-career hires# of middle manager (Under 45)+80% vs FY22

FY20
20年度

FY21
21年度

FY22
22年度

FY23
23年度

# of female manager+50％ vs FY22

+20% vs FY22

20年度
FY20

21年度
FY21

22年度
FY22

23年度
FY23

20年度
FY20

21年度
FY21

22年度
FY22

23年度
FY23

Corporate culture changeWork Style Reform*Off-site Meeting is a Scholar Consult Co.,Ltd trademark.

1 on 1 meeting

Employee Engagement
SurveyOff-site Meeting*© 2024 Toshiba Tec Corporation32

3 Sustainability management

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Toshiba Tec Group will contribute to solving social issues by striving to achieve
numerical targets on KPIs of “Materiality” identified from its management principle

Identify
issues&Make themconcrete

Sustainability
Basic policy
Human rightpolicySustainable growth
Enhancement ofcorporate value

Materiality

Achieve KPIs
(Numericaltargets)

Solving social issues（＝Achievement of
the SDGs）

Materiality
Environment

Society

Governance・Respond to climate change・Respond to circular economy
・Respond to ecosystem conservation

・Secure employment and its education
・Secure employee’s health and safety
・Respect human rights
・Promote sustainable procurement activity
・Reinforce R&D to generate innovation

・Strengthen corporate governance・Increase cyber resilience© 2024 Toshiba Tec Corporation33

3 Sustainability management

１

Strengthening the profitability of corebusinesses

2

Expansion of new business areas

3

Management Transformation, Human Resource
Enhancement, Sustainability

Promoting sustainability in business activities
In fiscal 2023, reduced approximately

56 million paper receipts!

Smart receipt ® also make a significant contribution to sustainability

1.9© 2024 Toshiba Tec Corporation

34

Contributing to the transformation of new distribution and the future of the office

Resolve social issues with partners
Change distribution industry and Office

Logistics industry

MFPs global
installed units:
approx. 1.4 M units

Retailer・Office
Expand customer base

Manufacturer・
Wholesaler
GlobalPOS Market share:
No.1© 2024 Toshiba Tec Corporation

35

Our business environment and future vision
Future Goal
「Global Top Solutions Partner」
Our businessenvironment

Aiming to become a Leader ofWorldwide Retail Innovationand contribute to solve social issues“Toshiba Tec aims to be a company
that contributes to society”
100th Anniversary of the foundation
Achieve growth worthy of a company
with a 100 year history
Create new value in growth areas, not limited toretail market, and solve social challenges in 2050

・Big data, Spread of AI
・Increased demand for information security
・Labor shortage, Increased demand for manpower saving
・Increased importance of SDGs response

2050

2030

2025

2023
・Progress of DX in the retail industry
・Diversification of payment methods
・Increased supply chain complexity*1▲ServiceCAD／ SDM／SLM

・Changing ways of working
・Paperless
・Increasing demand for
document solutions●Edge gateway●Dynamic pricing

Platform▲System Modeling●AI Camera(AI Cart, fraud detect) ●Traceability(Encode, decode)●Retail media●AI robotics●Human-Augmentation●Robot swarm optimization ●Super long-term forecast●Service optimization(Mathematical optimization/Quantum computing)●Large-scale Optimization with Quantum Computers

PhysicalCyber© 2024 Toshiba Tec Corporation*1 CAD : Computer Aided Design、 SDM : Service Data Management、 SLM : Service Life Cycle Management36