2015

For the Year Ended March 31, 2015

Financial Highlights
Years ended March 31

Millions of yen
Consolidated

2011

Net sales

Operating income

Net income (loss)

Total assets

Net assets¥362,302
13,997
6,510

288,592

140,5192012¥350,604
10,8302,566

276,436

139,7322013¥403,694
15,886
6,212

388,513

176,5582014¥498,871
23,086
7,134

393,965

185,430

2015¥525,274
18,698(334)

417,440

204,724Yen

Per share data:

Net income (loss)-Basic

Net assets¥23.71473.44¥9.35

472.36¥22.64549.42

Non-Consolidated
Operating income

Net income

Capital stock2013

155,596(2,779)3,473,746

1,703,620¥25.99576.50¥(1.21)

629.232014

2015$(0.010)
5.236

Thousands of
U.S.dollars

2015¥224,933¥233,686¥261,268¥265,735$2,211,326

4,476

2,421

3,901

2,227

9,561

79,562

2,906

221,925

Net assets

2012$4,371,091¥221,674

39,971

Total assets

Per share data:

2011

2015

U.S.dollars

Millions of yen
Net sales

Thousands of
U.S.dollars

124,888

3,226

39,971

226,188
125,273

2,557

39,971

244,368
127,428

7,548

39,971

257,510
127,684

8,512

39,971

293,723
137,222

Yen

70,833332,620

2,444,229
1,141,899
U.S.dollars

Net income-Basic¥16.30¥8.82¥14.22¥8.11¥34.82$0.290Net assets

455.03456.27463.99464.76499.32

4.155

Cash dividends

7.00

7.00

8.00

8.00

13.00

0.108

The dollar amounts in this report represent translations of yen, for convenience only, at the rate of ¥120.17=US$1.00, the exchange rate
prevailing on March 31, 2015.

CONTENTS

Financial Highlights .................................................................................................................................1
Business Review ......................................................................................................................................2
Consolidated Balance Sheet ....................................................................................................................5
Consolidated Statement of Income ..........................................................................................................7
Consolidated Statement of Comprehensive Income.................................................................................8
Consolidated Statement of Changes in Net Assets...................................................................................9
Consolidated Statement of Cash Flows .................................................................................................11
Notes to Consolidated Financial Statements..........................................................................................121

Business Review
Business Review for the Consolidated Fiscal Year 2014
Regarding the global economy in the consolidated fiscal year 2014, the US continued to experience a gradual economic
recovery, while growth remained low in Europe, and in Asia the economy remained generally robust. In the Japanese economy,
although the effects of economic and fiscal policies, among other factors, were evident, the stagnation in personal consumption
following the rise in the consumption tax rate became prolonged, which kept the economy from achieving a full-fledged
recovery.
Under such circumstances, the Toshiba Tec Group has been diligently working to become “a global one-stop solutions
company” under the three pillars of its business strategy, namely “acceleration of globalization”, “expansion of solutions andservices”, and “corporate structural reform to stabilize profitability”.
Net sales were buoyed by the effect of exchange rates and remained solid, increasing 5% compared to the previous
consolidated fiscal year to reach ¥525,274 million, the highest figure ever recorded in the company’s history. On the other
hand, with regard to profit and loss, although the overseas printing business and system solutions business continued toperform well, there was a significant downturn in profitability caused by the underperformance of the overseas retail solutions
business and the effect of increases in selling, general and administrative expenses, with the result that operating income
decreased 19% year-on-year to ¥18,698 million and ordinary income decreased 40% year-on-year to ¥11,960 million. The
effect of disposal of deferred tax assets following the reduction in the corporation tax rate was also another factor that led to an
overall net loss of ¥334 million for fiscal year 2014.

Business Highlights for each Report Segment
The business highlights for each report segment in the consolidated fiscal year 2014 are described below.
System Solutions Business
The system solutions business, which deals with POS systems for the Japanese market, MFPs, Automatic Identification
systems and related products, was committed to developing new products appropriate to market needs, expanding sales ofcore products, and promoting area marketing, along with reinforcing cost competitiveness to improve the profit structure,in what continues to be a severe business environment where the overall retail industry as a major market is still reelingfrom the downturn in consumption following the increase in the consumption tax rate and competition with rivals remains
intense.
In the retail solutions business, although a severe business environment remained due to such factors are revisions to plansfor new store openings in the retail industry, sales increased owing in part to growing sales of POS systems to shopping
centers.
The office solutions business continued to face strong competition, but sales increased thanks to bigger sales volumes forcolor MFPs and other factors.
Sales in the Automatic Identification systems business rose due to the growth in sales of compact label printers for the retailindustry.
As a result, net sales from the system solutions business rose 2% over the previous consolidated fiscal year to ¥199,324
million, and operating income advanced 4% over the previous consolidated fiscal year to ¥10,175 million.

2

Global Solutions Business
The global solutions business, which deals with MFPs, POS systems, Automatic Identification systems, printers and related
products as well as inkjets for markets outside Japan, focused efforts on releasing and expanding sales of strategic new
products, while expanding sales by pioneering new business fields, new sales channels and new customers, and promoting
an alliance strategy, against a difficult business background marked by tough competition.
In the retail solutions business, sales increased as the U.S. market performed steadily, due to such factors as expanded salesof strategic new products and the positive impact of exchange rates.
In the printing solutions business, sales of MFPs and Automatic Identification systems increased due to various factors,
including sales promotion activities focused on differentiating our proprietary products and utilizing our customer network,
expanded sales of strategic new products and the positive impact of exchange rates.
Sales from the inkjet business grew thanks to increased sales to major customers.
As a result, net sales from the global solutions business advanced 7% over the previous consolidated fiscal year to ¥340,409
million, and operating income decreased 36% over the previous consolidated fiscal year to ¥8,523 million.
Note: Automatic Identification (AI) system refers to systems that contain hardware and software to automatically retrieve,
identify and manage data from barcodes and IC tags.

Forecasts for Fiscal Year 2015
With regard to the global economy, the US economy is expected to keep on recovering, whereas in Europe, although there
are some positive signs, low growth is projected to continue. It is anticipated that the Asian economy will generally enjoy
solid growth. In Japan the economy is expected to make a gradual recovery as personal consumption begins to pick up andexports and capital investment rally.
Under such circumstances, the Toshiba Tec Group is diligently working to become “a global one-stop solutions company”
under the three pillars of its business strategy, namely “growth of global retail business”, “expansion of solutions andservice business” and “higher profitability through accelerating cost reduction and improving productivity”.
Furthermore, with the aim of taking the lead in the business environment and ensuring that we can provide solutions that
anticipate and remain one step ahead of all our customers’ needs, from April 1, 2015, we implemented an organizational
realignment, moving from being an organization aligned by region to one aligned by products and services. Under this new
structure, our business management structure will be concentrated in two segments, namely Retail Solutions Business andPrinting Solutions Business and we will endeavor to further develop the company going forward.
Main measures on a segment basis for fiscal year 2015 ending March 31, 2016 are as follows:3

Retail Solutions BusinessIn the retail solutions business, efforts will be made to increase business, through expanded sales of POS systems that are
major products in both domestic and overseas markets and of MFPs and Automatic Identification systems as well as related
products that are major ones in the Japanese market. Concurrent efforts will be also made toward the provision of totalsolutions, including the development and release of new ones appropriate to market needs, the deployment of sales andmarketing structures tailored to specific regions, the enhancement of service and supply businesses, and the optimizationof sales and service networks. Fundamental measures will be devised and implemented toward the recovery of businessperformance in the overseas retail solutions business.
Printing Solutions BusinessIn the printing solutions business, efforts will be made to enhance profitability, through expanded sales of MFPs, Automatic
Identification systems and related products that are major ones in overseas markets and of inkjet heads that are major
products in both domestic and overseas markets. Also, toward the provision of total solutions that capitalize on a wide rangeof products and markets, efforts will be made to develop and release strategic new products, deploy sales and marketing
structures tailored to specific regions, optimize sales and service networks, and strengthen business in emerging markets.
Consolidated forecasts for fiscal year 2015 have been made as follows based on the aforementioned measures:

Forecasts for fiscal year 2015 (as of November 5 , 2015)
Net sales

Operating income
Ordinary income

Net income attributable to shareholders of parent company¥530,000 million¥6,000 million¥2,000 million(¥79,000) million

For the above-mentioned forecasts, the exchange rates for fiscal 2015 are 120 yen per dollar and 132 yen per euro.
Note: Forecasts are based on the Toshiba Tec Group's currently available data and certain assumptions considered rational, and are notintended as assurances from the Group that they will be achieved. Actual results are subject to change due to various factors.

4Consolidated Balance Sheet
March 31, 2015

Millions of yen

ASSETS

Thousands of
U.S.dollars (Note 1)

2015

2014

Cash and cash equivalents¥54,965¥47,409$457,394

Inventories

45,70842,035

380,361

Current assets

Notes and accounts receivable-trade
Deferred tax assets (Note 10)Prepaid expenses and other current assets

81,62388,528

8,051

7,553

2015

679,229

66,99751,56438,008429,092

240,506

222,2162,001,381

Buildings and structures

31,10930,393258,875

Tools, furniture and fixtures

49,311

51,578410,344

Allowance for doubtful accounts

Total current assets(1,405)(1,317)(11,692)

Non-current assets

Property, plant and equipment:
Machinery, equipment and vehicles
Land

Lease assets

Accumulated depreciation

45,75140,5002,541

11,342

2,581

11,677

380,719

21,145

94,383(109,239)(104,908)(909,037)

33,56133,316279,279

Goodwill

36,91239,601

307,165

Other

36,426

26,608303,121

Construction in progress

Intangible assets:
Customer relationships

2,746

1,495

33,90632,456107,244

98,66522,851

282,150
892,436

Investments and other assets:

Investment securities: (Note 14)

Unconsolidated subsidiaries and affiliates
Other

46

44

4,998

4,342

383

41,591

Deferred tax assets (Note 10)

13,97721,001

116,310Other

13,717

14,388114,147

36,026

39,621

299,792

176,831

171,602

1,471,507

103

147

858

¥417,440¥393,965$3,473,746

Asset for retirement benefits (Note 4)

Allowance for doubtful accounts

Total non-current assets
Deferred assets
Total assets

3,351

−

(63)

(154)

27,885(524)

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

5Millions of yen

Thousands of
U.S.dollars (Note 1)

LIABILITIES AND NET ASSETS
Current liabilities
Notes and accounts payable-trade
Short-term loans payable (Note 3)
Accounts payable - other
Lease obligations (Note 3)
Income taxes payable (Note 10)
Provision for directors' bonuses
Other (Note 10)
Total current liabilities

2015

2014

¥89,920
2,028
15,501
3,358
4,418
−
49,880165,105¥75,673
1,054
17,526
3,427
3,769
51
53,941
155,441$748,273
16,876
128,992
27,94436,765−415,079
1,373,929

Non-current liabilities
Lease obligations (Note 3)
Provision for directors' retirement benefits
Liability for retirement benefits (Note 4)
Other (Note 10)
Total non-current liabilities

4,024
141
36,552
6,894
47,611

4,261
149
41,358
7,326
53,09433,486
1,173
304,169
57,369396,197

Total liabilities

212,716

208,535

1,770,126

Shareholders' equity
Capital stock
Authorized-1,000,000 thousand shares
Issued- 288,146 thousand shares

39,971

39,971

332,620

Capital surplus

52,96652,971

440,759Retained earnings
Treasury stock, at cost:
13,562 thousand shares in 2015
13,670 thousand shares in 2014
Total shareholders' equity

65,921

65,422548,565(5,542)−
153,316−(5,585)
152,779(46,118)−
1,275,826

1,514
4
18,157(569)
355
19,461

988
(4)
6,692
(55)
(2,179)5,442

12,59933
151,095(4,735)
2,954
161,946

116

130

965

31,831

27,079264,883

Total net assets

204,724

185,430

1,703,620

Total liabilities and net assets¥417,440¥393,965$3,473,746

2015

Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Minimum pension liability adjustments
Retirement benefits liability adjustments
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

6

Consolidated Statement of Income
Year ended March 31, 2015

Millions of yen

Net sales

Cost of sales (Notes 4 and 8)
Gross profit

Selling, general and administrative expenses (Notes 4, 6, 8 and 17)
Operating income

Non-operating income and expenses:

2015

2014

Thousands of
U.S.dollars (Note 1)

2015¥525,274¥498,871$4,371,091

224,234

215,123

1,865,973

23,086

155,596

301,040

283,748

205,536

192,037

18,6982,505,118

1,710,377

Interest and dividends income

507

384

4,219

Gain on valuation of derivatives

2,024

143

16,843

Interest expenses

(588)

(646)

(4,893)Foreign exchange losses(5,861)(26)(48,773)

Restructuring cost (Note 9)(686)(5,696)

11,273(2,516)(5,709)14,364(14,238)

7,115

6,149

59,208

434

6,957

3,612

Gain on sales of investment securities
Reversal of allowance for doubtful accounts
Loss on sales and retirement of non-current assets
Loss on settlement
Other, net

Income before income taxes and minority interests

Income taxes (Note 10):
Current

DeferredIncome before minority interests

Minority interests in income (loss)
Net (loss) income

46

4

-

294

(51)

(663)

(1,105)−(1,711)

3,724

1,258

768

(177)

¥ (334)¥7,134Yen

Per share data (Note 21)

Net (loss) income-Basic
Cash dividends

2015¥(1.21)¥13.00

383
−

(424)

(9,195)93,80930,9896,391$(2,779)

U.S.dollars

2014¥25.99

¥8.00

2015

$(0.010)$0.108The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

7

Consolidated Statement of Comprehensive Income
Year ended March 31, 2015

Millions of yen

Income before minority interests
Other comprehensive income

Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges

Foreign currency translation adjustments
Minimum pension liability adjustments

Retirement benefits liability adjustments

Total other comprehensive income (Note 7)

Comprehensive income

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

2015

2014

2015

¥434

¥6,957

528

225

4,394

15,977

6,666

132,953

8

(4)

(593)

30

2,536

18,456−

6,917$3,61267(4,935)

21,103

153,582¥18,890¥13,874$157,194

13,685

11,851

113,880

5,205

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

8

Thousands of
U.S.dollars (Note 1)

2,023

43,314

Consolidated Statement of Changes in Net Assets
Year ended March 31, 2015

Capitalstock

Balance at April 1, 2014
Cumulative effect of change in accounting policies (Note2)
Restated balance at April 1, 2014
Changes during the year
Cash Dividends (Note 20)
Net loss
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Balance at March 31, 2015

Balance at April 1, 2014
Cumulative effect of change in accounting policies (Note2)
Restated balance at April 1, 2014
Changes during the year
Cash Dividends (Note 20)
Net loss
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Balance at March 31, 2015

Retainedearnings

Treasurystock, at cost

Total
shareholders'equity

−
−
(29)
72
−
¥(5,542)(2,746)
(334)
(29)
67
−
¥153,316

Retirement
benefits liability
adjustments

Subscription
Total accumulated
rights toother comprehensive
sharesincome¥39,971−
39,971¥52,971−
52,971¥65,4223,579
69,001−−−−−¥39,971

−
−
−
(5)
−
¥52,966(2,746)(334)−−−¥65,921

Accumulated other comprehensive income
Minimum
Valuation difference Deferred gains or Foreign currencytranslation
pension liability
on available-for-sale losses on hedges
adjustments
adjustments
securities

¥988

¥(4)

¥ 6,692

¥(55)

988

(4)

6,692

(55)

−
−
−
−
526
¥1,514

−
−
−
−
8
¥4

−
−
−
−
11,465¥18,157

−
−
−
−
(514)
¥(569)

Capitalstock

Balance at April 1, 2014
Cumulative effect of change in accounting policies (Note2)
Restated balance at April 1, 2014
Changes during the year
Cash Dividends (Note 20)
Net loss
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Balance at March 31, 2015

Balance at April 1, 2014
Cumulative effect of change in accounting policies (Note2)
Restated balance at April 1, 2014
Changes during the year
Cash Dividends (Note 20)
Net loss
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Balance at March 31, 2015

CapitalsurplusCapitalsurplusMillions of yen

Shareholders' equity¥(5,585)−(5,585)¥152,779
3,579
156,358

Millions of yen¥(2,179)

Shareholders' equity

5,442

130

−
−
−
−
2,534
¥355

−
−
−
−
14,019¥19,461

−
−
−
−
(14)
¥116

−
−
−
−
4,709
¥31,831

Thousands of U.S. dollars

Total
shareholders'equity$1,271,357
29,7831,301,140

−
−
(241)
599
−
$(46,118)(22,851)(2,779)(241)557−$1,275,826

Retirement
benefits liability
adjustments

Subscription
Total accumulated
rights toother comprehensive
sharesincome$45,286−
45,286−−−−116,660$161,946−−−−−$332,620

−
−
−
(42)
$440,759(22,851)(2,779)−−−$548,565

Accumulated other comprehensive income
Valuation difference Deferred gains or
Foreign currency
Minimum
on available-for-sale losses on hedges
translation
pension liability
securities
adjustments
adjustments(2,746)
(334)
(29)
67
18,714¥204,724(2,179)¥27,079
43
27,122$(46,476)−(46,476)$544,412
29,783574,195¥185,430
3,622
189,052¥130

Treasurystock, at cost

$440,801−
440,801

Total net
assets¥ 5,442

Retainedearnings$332,620−
332,620

Minority
interests

Thousands of U.S. dollars$8,222
−
8,222

$(33)
−
(33)

$55,688−
55,688$(458)−(458)$(18,133)−(18,133)

−
−
−
−
4,377
$12,599

−
−
−
−
66
$ 33

−
−
−
−
95,407$151,095−−−−(4,277)$(4,735)−−−−
21,087$ 2,954

Minority
interests

Total net
assets$1,082−
1,082$225,339
358
225,697$1,543,064
30,141
1,573,205

−
−
−
−
(117)
$965

−
−
−
−
39,186$264,883(22,851)(2,779)(241)557
155,729$1,703,620

9

Capitalstock

Balance at April 1, 2013
Cumulative effect of change in accounting policies (Note2)
Restated balance at April 1, 2013
Changes during the year
Cash Dividends (Note 20)
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Balance at March 31, 2014

Balance at April 1, 2013
Cumulative effect of change in accounting policies (Note2)
Restated balance at April 1, 2013
Changes during the year
Cash Dividends (Note 20)
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Balance at March 31, 2014

CapitalsurplusMillions of yen

Shareholder's equity
Retainedearnings

Treasurystock, at cost

Total
shareholders'equity

−
−
(38)
77
−
¥(5,585)(2,196)
7,134
(38)
64
−
¥152,779¥39,971−
39,971¥52,984−
52,984¥60,484−
60,484−−−−−¥39,971

−
−
−
(13)
−
¥52,971(2,196)
7,134−−−¥65,422¥(5,624)−(5,624)

Accumulated other comprehensive income
Minimum
Retirement
Valuation difference Deferred gains or Foreign currencytranslation
pension liability
benefits liability
on available-for-sale losses on hedges
adjustments
adjustments
adjustments
securities

¥764
−
764

−
−
−

¥ 2,213
−
2,213

¥(74)
−
(74)

−
−
−

−
−
−
−
224
¥988

−
−
−
−
(4)
¥(4)

−
−
−
−
4,479
¥6,692

−
−
−
−
19
¥(55)

−
−
−
−
(2,179)¥(2,179)¥147,815−
147,815

Millions of yen

Subscription
Total accumulated
rights toother comprehensive
sharesincomeTotal net
assets¥ 2,903
−
2,903

¥145
−
145

¥25,695−
25,695¥176,558−
176,558

−
−
−
−
2,539
¥5,442

−
−
−
−
(15)
¥130

−
−
−
−
1,384
¥27,079(2,196)
7,134
(38)
64
3,908
¥185,430

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
Numbers of shares in issue: 288,146 thousand shares in the fiscal year ended March 31, 2015.

10

Minority
interests

Consolidated Statement of Cash Flows
Year ended March 31, 2015

Millions of yen

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Decrease in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase in net defined benefit liability
Interest and dividends income
Interest expenses
Loss on sales and retirement of property, plant and equipment
Gain on sales of investment securities
Loss on valuation of investment securities
Restructuring cost
Changes in assets and liabilities:
Decrease in notes and accounts receivable-trade
Increase in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Proceeds from sales of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Net decrease (increase) in short-term loans receivable
Payments of long-term loans receivableCollections of long-term loans receivable
Payments for transfer of business
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Thousands of
U.S.dollars (Note 1)

2015

2014

2015

¥11,273
20,393
(60)
−
1,712
(507)
588
51
(46)
−
686

¥14,364
21,216(88)(39,824)
37,974
(384)
646
663
(4)
101
5,696

$93,809
169,701(499)−
14,246(4,219)
4,893
424
(383)
−
5,709

12,623(1,223)
6,135(22,211)
29,414501(645)(6,229)23,041

3,621(1,493)(4,026)(11,340)
27,122405(622)(6,018)20,887105,043(10,177)
51,053(184,830)
244,770
4,169(5,367)(51,835)
191,737(6,803)
226(14,240)
1,923
(14)
108
3,448
(12)
16
−
382
(14,966)(7,403)243(7,458)−(14)
144(6,102)(18)
15(21,764)(198)(42,555)(56,611)1,881(118,499)
16,002(117)899
28,693
(100)
133
−
3,179
(124,540)

1,109(2,946)(28)(2,746)(496)
67(5,040)4,521
7,556
47,409(2,662)(2,801)(38)(2,198)(518)
76(8,141)
5,186(24,623)
72,032

9,229(24,515)(233)(22,851)(4,128)557(41,941)
37,62262,878394,516¥54,965¥47,409$457,394

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

11

Notes to Consolidated Financial Statements
1. Basis of Presenting Consolidated
Financial Statements
The consolidated financial statements of TOSHIBA TECCORPORATION (the “Company”) have been prepared inaccordance with accounting principles generally accepted inJapan, which are different in certain respects as to the applicationand disclosure requirements of International Financial ReportingStandards, and are compiled from the consolidated financial
statements prepared by the Company as required by the
Financial Instruments and Exchange Law of Japan.
Certain reclassifications have been made to present theconsolidated financial statements in a format which is morefamiliar to the readers outside Japan.
Solely for the convenience of the readers, the consolidated
financial statements have been presented in U.S. dollars bytranslating Japanese yen amounts at the exchange rate of¥120.17 = US$1.00 prevailing as of March 31, 2015. The
translation should not be construed as a representation that theJapanese yen could be converted into U.S. dollar at the above or
any other rate of exchange.

2. Summary of Significant Accounting
Policies(A) Basis of Consolidation and Accounting ofInvestments in Affiliated Companies

The consolidated financial statements include the accounts of
the Company and its majority-owned subsidiaries (together
the “Companies”). For the years ended March 31, 2015 and2014, the accounts of 86 and 89 subsidiaries are consolidated,
respectively. All significant inter-company transactions andaccounts are eliminated in consolidation.
All assets and liabilities of the consolidated subsidiaries arerevaluated on acquisitions, if applicable. The difference between
the cost of investments in subsidiaries and the equity in theirassets and liabilities at the dates of acquisition is recognized
as goodwill in the consolidated balance sheet and principallyamortized by the straight-line method over 5 to 17 years.
The Company has no unconsolidated subsidiary for which theequity method of accounting has been applied for the years
ended March 31, 2015 and 2014.
From the perspective of immateriality, the investments in
the remaining unconsolidated subsidiaries and the affiliatedcompanies are stated at cost.
Certain subsidiaries have the year end which differs from thatof the Company. As a result, adjustments have been made forany significant transactions as needed in consolidation that took
place during the period between the year end of the subsidiaries
and the year end of the Company.

(B) Foreign Currency Translation

Revenue and expense accounts of foreign consolidated
subsidiaries are translated into yen using the annual averagerate during each of the fiscal years. The balance sheet accounts,
except for the components of net assets, are translated at therate in effect at each of the balance sheet dates. The components
of net assets are translated at their historical rates. Translation
adjustments are presented as a component of “Accumulated

12other comprehensive income” under Net Assets in the
consolidated balance sheet.
Foreign currency transactions are measured at the applicablerates of exchange prevailing at the transaction dates, unlesshedged by foreign exchange contracts. Assets and liabilities
denominated in foreign currencies at the balance sheet date arere-measured at the applicable rates of exchange prevailing at thatdate, unless hedged by foreign exchange contracts. Exchange
differences are charged or credited to income(C) Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid investments,
generally with original maturates of three months or less.

(D) Investment Securities

Marketable securities classified as “Other securities” are reported
at fair value with unrealized holding gains or losses, net of taxes,
presented as “Available-for-sale-securities” as a component of“Accumulated other comprehensive income” under Net Assets
in the consolidated balance sheet. Cost of securities sold isdetermined by the moving average method.
Non-marketable securities classified as “Other securities” arecarried at cost, which is determined by the moving averagemethod.

(E) Inventories

Finished goods, merchandises and semi-finished components are
principally stated at the lower of cost, determined by the firstin, first-out method, or net realizable value. Work-in-process
and raw materials are principally stated at the lower of cost,
determined by the moving average method, or net realizablevalue. Supplies are principally stated at the latest purchase cost
method.

(F) Property, Plant and Equipment and Depreciation

Property, plant and equipment are depreciated by the straightline method over their estimated useful lives.
The useful lives of principal property, plant and equipment aresummarized as follows:
Buildings and structures 15 to 38 years
Machinery and equipment 5 to 13 years
Tools, furniture and fixtures 2 to 7 years(G) Intangible Assets and Amortization

Intangible assets are amortized by the straight-line method overtheir estimated useful lives.

(H) Leases

The Companies lease certain equipment under non-cancelable
lease agreements referred to as finance leases. Depreciation oflease assets is calculated by the straight-line method over thelease period with no residual value.

( I ) Deferred Assets

Deferred organization expenses are amortized by the straightline method over a period of five years.

( J ) Allowance for Doubtful Accounts

Allowance for doubtful accounts is provided in the amountsufficient to cover probable losses on collection. It consists ofindividually estimated uncollectible amounts and an amountcalculated using the rate of actual losses on collection in thepast.

(K) Provision for Directors’ Retirement Benefits

The retirement benefits to directors are determined based on theinternal rule and accounted for as an expense of the accounting
period in which such retirement benefits were accrued.

(L) Provision for Directors’ Bonuses

The bonuses to directors are determined based on the internal
rule and accounted for as an expense of the accounting period inwhich such bonuses were accrued.

(M) Retirement Benefits

The retirement benefit obligation for employees is attributed toeach period by the benefit formula method.
Prior service cost is being amortized as incurred by the straightline method over periods (mainly 10 years), which are shorter
than the average remaining years of service of the employees.
Actuarial gain or loss is amortized in the year following theyear in which the gain or loss is recognized by the straight-line
method over periods (mainly 10 years), which are shorter than
the average remaining years of service of the employees.
Certain consolidated subsidiaries use a simplified method for
calculating retirement benefit expenses and liabilities based on
the assumption that the benefits payable, which are calculated as
if all eligible employees voluntarily terminated their employment
at fiscal year end, approximate the retirement benefit obligation
at year-end.

(N) Income Taxes, Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are determined based on the
differences between financial reporting and the tax bases of
the assets and liabilities, and are measured using the enacted
tax rates and laws which will be in effect when the temporary
differences are expected to reverse.
The Company and its wholly owned domestic subsidiaries filetheir consolidated tax return in Japan for the Corporation Tax
purpose.

(O) Consumption Taxes

Consumption taxes withheld from sales and paid uponpurchasing goods and services by the Companies are notincluded in revenues and expenses.

(P) Derivative Financial Instruments

The Company and certain subsidiaries have entered into forward
exchange contracts to hedge the risk of fluctuation in exchange
rate in the foreign currency transactions related to accounts
receivable and payable denominated in foreign currency.
Derivative financial instruments are reported at fair value withunrealized gain or loss, charged or credited to income, except for
those which meet the criteria for the deferral hedge accounting

under which unrealized gains or losses are deferred as assets or
liabilities. Receivables and payables hedged by qualified forward
foreign exchange contracts are translated at the corresponding
foreign exchange contract rates.

(Q) Research and Development Expenses

Research and development costs are charged to income as
incurred.

(R) Impairment of Non-current Assets

According to the accounting standard, non-current assets arereviewed for impairment at least once a year and whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable.

(S) Changes in Accounting Policies(Adoption of
Accounting Standard for Retirement Benefits)

The Company and its domestic subsidiaries adopted “AccountingStandard for Retirement Benefits” (Accounting Standards
Board of Japan (ASBJ) Statement No.26 of May 17, 2012) and“Guidance on Accounting Standard for Retirement Benefits”(ASBJ Guidance No.25 of March 26, 2015) effective at the
beginning of the fiscal year ended March 31, 2015 for provisions
set forth in the main clause of Paragraph 35 of ASBJ Statement
No.26 and the main clause of Paragraph 67 of ASBJ Guidance
No.25.
Accordingly, the Company and its domestic subsidiaries
reviewed the methods for calculating retirement benefit
obligations and service costs, and revised the method of
attributing estimated retirement benefit obligations to each period
from the straight-line method to the benefit formula method. The
method for determining the discount rate has been changed fromthe method to refer to the bond rate with the term similar to theaverage remaining years of services of the employees to themethod to use a single weighted-average discount rate reflecting
the expected timing and amount of benefit payments.
For the application of this accounting standard, in accordancewith the transitional accounting treatment set forth in Paragraph
37 of Accounting Standard for Retirement Benefits, thecumulative effect associated with the change in calculation
methods of retirement benefit obligations and service costs wererecorded by adjusting retained earnings at the beginning of thecurrent fiscal year.
As a result, the liability for retirement benefits decreased by¥5,567 million ($46,326 thousand) and retained earnings
increased by ¥3,579 million ($29,783 thousand) at April 1,
2014, and the effect of these changes on consolidated operating
income, ordinary income and income before income taxes
and minority interests for the year ended March 31, 2015 wasinsignificant.
The impact on earnings per share, we have described in Note 21.

(T) Accounting Standards Issued but Not Yet Effective･Revised Accounting Standard for Business Combinations(ASBJ Statement, No.21 of September 13, 2013)･Revised Accounting Standard for Consolidated Financial
Statements(ASBJ Statement No.22 of September 13, 2013)13

･Revised Accounting Standard for Business Divestitures(ASBJ Statement No.7 of September 13, 2013)･Revised Accounting Standard for Earnings Per Share(ASBJ Statement No.2 of September 13, 2013)･Revised Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business
Divestitures(ASBJ Guidance No.10 of September 13, 2013)･Revised Guidance on Accounting Standard for Earnings Per
Share(ASBJ Guidance No.4 of September 13, 2013)
1. Overview
Under these revised accounting standards, (ⅰ) the accounting
treatment for any changes in a parent's ownership interest in a
subsidiary when the parent retains control over the subsidiary
was revised (ⅱ) the treatment of acquisition-related costs
was revised (ⅲ), the presentation method of net income
was amended, and the reference to “minority interests” waschanged to “non-controlling interest”, (ⅳ) the accounting
treatment for adjustments to provisional amounts during
the measurement period was changed for these accounting
standards.
2. Scheduled date of adoption
These accounting standards are scheduled to be adopted fromthe beginning of the fiscal year ending March 31, 2016, except
for the accounting treatment for adjustments to provisionalamounts, which is scheduled to be adopted effective from abusiness combination that will take place after the beginningof the year ended March 31, 2016.
3. Impact of adopting revised accounting standards and guidance
The impact on the consolidated financial statements as a resultof the adoption of these accounting standards is currently
being evaluated.

The aggregate annual maturities of lease obligations (excluding
the current portion) outstanding at March 31, 2015 are as
follows:
Year ending
March 31201720182019 and thereafter

Millions of yen¥1,006
1,006
2,012¥4,024

Not applicable

3. Short-Term Loans Payable and LongTerm Debt
The short-term loans payable and long-term debt (including
lease obligations) at March 31, 2015 and 2014, consist of thefollowing:
Millions of yen

2015

2014

Thousands of
U.S.dollars

2015

Short-term loans payable¥2,028¥1,054$16,876

Lease obligations
Less current portion

7,382
3,358
¥4,024

7,688
3,427¥4,261

61,43027,944$33,486

Thousands of
U.S.dollars$8,371
8,371
16,744$33,486

4. Retirement Benefits
1. Summary of Retirement Benefit Plans
The Company and its consolidated subsidiaries have either
funded or unfunded defined benefit plans and defined
contribution plans.
In defined benefit plans which are all funded, the benefits are
determined by reference to qualification and length of service
and paid on a lump-sum or annuity basis.
In defined benefit plans which are all unfunded, the benefits
are determined by reference to assessment and qualificationand paid on a lump-sum basis.
In addition, a part of subsidiaries use a simplified method
for the calculation of defined benefit liability and retirement
benefit cost of their defined benefit pension plans and lumpsum payment plans.											
2. Defined Benefit Plans
1) The changes in the retirement benefit obligation during theyears ended March 31, 2015 and 2014 are follows:
Thousands of
U.S.dollars

Millions of yen(U) Additional Information

14

The average interest rate for short-term loans outstanding at
March 31, 2015 and 2014 is 1.48 % and 0.44 %, respectively.
The average interest rate for lease obligations is omitted because
the Companies recorded the amount of lease payments inclusiveof interest in the Consolidated Balance Sheet.

Balance at the beginning of the year
Cumulative effect of changein accounting policies
Restated balance at the
beginning of the year
Service cost
Interest cost
Actuarial gain and loss
Retirement benefit paid
Other
Balance at the end of the year

2015

2014

2015

¥89,661¥92,668$746,118(5,567)−(46,326)

84,094
4,358
1,037
613
(3,672)
1,007¥87,437

92,6683,602
1,118(2,737)(5,750)760¥89,661

699,792
36,2658,629
5,101(30,557)
8,381$727,611

2) The changes in plan assets during the years ended March 31,
2015 and 2014 are follows:
Millions of yen

Plan assets at beginning of the year
Expected return on plan assets
Actuarial gainContributions by the Company
Retirement benefits paid
Other
Plan assets at end of the year2015

¥48,303
1,300
3,298
3,485
(2,557)407¥54,236

2014¥44,123
998
1,059
4,049
(2,252)
326¥48,303

Thousands of
U.S.dollars

2015$401,956
10,81827,44429,001(21,278)
3,386$451,327

3) The funded status of the plans and the amounts recognizedin the consolidated balance sheet as of March 31, 2015 and2014 for the Company's and the consolidated subsidiaries'
defined benefit plans
Millions of yen

Funded retirement benefit
obligation
Plan assets at fair value

Unfunded retirement benefit
obligation
Net liability for retirement
benefits in the balance sheet
Liability for retirement benefits

Asset for retirement benefits
Net liability for retirement
benefits in the balance sheet

Thousands of
U.S.dollars

2015

2014

2015

¥51,828(54,236)¥(2,408)¥51,962(48,303)¥3,659$431,289(451,327)$(20,038)¥35,609¥37,699$296,322¥33,201¥41,358$276,284¥36,552(3,351)¥41,358−$304,169(27,885)¥33,201¥41,358$276,284

4) The components of retirement benefit expense for the year
ended March 31, 2015 and 2014
Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Retirement benefit expenses

2015¥4,3581,037(1,300)307
832¥5,2342014¥3,602
1,118
(998)
706
914
¥5,342Thousands of
U.S.dollars

2015$36,2658,629(10,818)
2,555
6,924
$43,555

5) Retirement benefits liability adjustments included in othercomprehensive income (before tax effect) for the year ended
March 31, 2015 and 2014
Millions of yen

Prior service cost
Actuarial loss

2015

¥919
2,905
¥3,824

2014

−
−
¥−

Thousands of
U.S.dollars

2015$7,647
24,174$31,8216) Retirement benefits liability adjustments included inaccumulated other comprehensive income (before tax effect)
as of March 31, 2015 and 2014
Millions of yen

Unrecognized prior service cost
Unrecognized actuarial loss (gain)2015¥1,238(1,678)¥(440)

2014¥2,1571,227¥3,384

Thousands of
U.S.dollars

2015$10,302(13,964)$(3,662)7)-1. The fair value of plan assets, by major category, as apercentage of total plan assets as of March 31, 2015 and
2014
2015

Bonds
StocksAlternative
Life insurance company general accounts
Other
Total

2014

37%
25%
26%
9%
3%
100%

40%
25%
24%
10%
1%
100%

Note: “Alternative” are mainly investments in hedge funds and real estates.

7)-2. How to set the expected long-term rate of return on plan
assetsThe Companies set the expected long-term rate of returnin consideration of target portfolio of plan assets, expectedlong-term rate of return and past performance.
8) The assumptions used in actuarial calculation
2015

Discount rate
Expected long term rate of return on plan assets
Expected salary increase rate

Mainly 1.2%
Mainly 2.5%
Mainly 4.2%

2014

Mainly 1.2%
Mainly 2.5%
Mainly 4.2%

3. Defined Contribution Plans
Amounts which consolidated subsidiaries contributed to theirdefined contribution plans for the years ended March 31, 2015
and 2014 were ¥451 million ($ 3,753 thousand) and ¥424
million, respectively.

5. Contingent liabilities
Contingent liabilities at March 31, 2015 and 2014 are as follows:
Millions of yen

Trade notes receivablediscounted or endorsed
Guarantees on employees'
housing loans

Thousands of
U.S.dollars

2015

2014

2015

¥155

¥115

$1,290

193

261

1,606

6. Selling, General and Administrative
ExpensesMajor components of selling, general and administrative
expenses for the years ended at March 31, 2015 and 2014 are as
follows:
Millions of yen

2015

Personnel expenses¥95,322Retirement benefit expenses
3,768
Research and development expenses 22,668

2014¥93,489
3,980
21,802Thousands of
U.S.dollars

2015$793,226
31,356
188,633

15

7. Other Comprehensive Income

9. Restructuring Cost

Other Comprehensive Income for the year ended March 31,
2015 and 2014 are as follows:

The contents of Restructuring Cost for the year ended March 31,
2015 are extra retirement benefit payments and costs of disposal
and consolidation of sales bases in the overseas operating.
The contents of Restructuring Cost for the year ended March 31,
2014 are extra retirement benefit payments and costs of disposal
and consolidation of sales bases in the overseas operating.

Thousands of
U.S.dollars

Millions of yen

2015

2014

Other comprehensive income
Valuation difference on available-for-sale securities:
Amount of accrual
¥751
¥352
Amount of recycling(45)(4)
Amount before tax effectadjustments
706
348
Tax effect adjustments
(178)
(123)
Valuation difference
on available-for-salesecurities
¥528
¥225
Deferred gains (losses) on hedges:
Amount of accrual¥12
Tax effect adjustments(4)
Deferred gains (losses) onhedges¥8Foreign currency translation adjustments:
Amount of accrual¥15,977
Amount of recycling−
Amount before tax effectadjustments
15,977
Tax effect adjustments−
Foreign currencytranslation adjustments¥15,977
Minimum pension liability adjustments:
Amount of accrual¥(952)Tax effect adjustments
359
Minimum pension
liability adjustments¥(593)
Retirement benefits liability adjustments:
Amount of accrual¥2,685
Amount of recycling
1,139
Amount before tax effectadjustments
3,824
Tax effect adjustments(1,288)Retirement benefits
liability adjustments¥2,536
Total othercomprehensive income¥18,456

2015$6,249(374)
5,875(1,481)$4,394

¥(6)
2

$100
(33)

¥(4)

$67

¥6,666−$132,953
−

6,666
−

132,953−¥6,666$132,953¥50(20)$(7,922)
2,987

¥30

$(4,935)¥−−

Valuation allowance
Total deferred tax assets

2015

2014

2015

¥9,404
5,040
2,037¥14,376
5,516
2,811

$78,256
41,941
16,951

1,774
8,652
26,907

1,796
4,887
29,386

14,762
71,998
223,908(4,879)¥22,028(833)¥28,553(40,601)$183,307¥(374)¥(427)$(3,112)(703)(2,364)(3,441)(528)(1,763)(2,718)(5,850)(19,672)(28,634)$22,343
9,478

Net deferred tax assets¥18,587¥25,835$154,673−−

31,822(10,718)

Net deferred tax assets are included as below on consolidatedbalance sheet for the years ended March 31, 2015 and 2014.

¥−$21,103¥6,917

Millions of yen

16

Deferred tax assets:
Net liability for retirement
benefits
Intangible assets
Provision for bonuses
Elimination of consolidated
unrealized gains
Other
Total gross deferred tax assets

Thousands of
U.S.dollars

Deferred tax liabilities:
Reserve for advanced
depreciation of noncurrent assets
Valuation difference
on available-for-salesecurities
Other
Total deferred tax liabilities$153,582

Research and development costs charged to income for the years
ended March 31, 2015 and 2014 are as follows:¥25,556

1. Significant components of the Companies' deferred tax assets
and liabilities for the years ended March 31, 2015 and 2014
are as follows:
Millions of yen

8. Research and Development Expenses

2015

10. Income Taxes and Deferred Tax Assets
and Liabilities2014¥25,112

Thousands of
U.S.dollars

2015$212,665

Millions of yen

Current assets Deferred tax assets
Non-current assets Deferred tax assets
Current liabilities Other
Non-current liabilities Other

Thousands of
U.S.dollars

2015

2014

2015

¥8,051¥7,553$66,997

13,97721,001

116,310

(271)

(253)

(2,255)(3,170)(2,466)(26,379)

2. Difference between statutory tax rate and effective tax rate
The following table summarizes the difference between thestatutory tax rate and the effective tax rate for the years ended
March 31, 2015 and 2014.

2015

2014

Statutory tax rate
Effect of :Different tax rates applied to income offoreign subsidiaries
Expenses permanently not deductiblefor income tax purposes
Income permanently not included asrevenue
Corporation tax special credit for
research expenditures

35.6%

38.0%

(15.2)

(9.6)

1.0

1.4

(0.1)

(4.6)

(9.4)

(4.7)

Downward revision of deferred tax
asset by change in statutory tax rate
Amortization of goodwill of foreignsubsidiaries
Other, net
Effective tax rates

53.1

0.2

15.7

6.1

14.8

24.6

0.6
96.1%

0.2
51.6%

Changes in valuation allowance

3. Effect of a change in the corporate income tax rate
The “Act for Partial Amendment of the Income Tax Act, etc”.
(Act No.9 of 2015) and the “Act for Partial Amendment of the
Local Tax Act, etc”. (Act No.2 of 2015) were promulgated on
March 31, 2015.
As a result, the effective statutory tax rate used to measure
the Company's deferred tax assets and liabilities was changed
from 35.6% to 33.1% and 32.3% for the temporary differences
expected to be realized or settled in the year beginning April 1,2015 and for the temporary differences expected to be realized
or settled from April 1, 2016, respectively.
The effect of the announced reduction of the effective statutory
tax rate was to decrease deferred tax assets, after offsetting
deferred tax liabilities, by ¥1,766 million ($14,696 thousand)and increase deferred income tax expense by ¥1,790 million($14,896 thousand), valuation difference on available-for-salesecurities by ¥24 million ($200 thousand) for the year ended
March 31, 2015.

11. Leases
Finance Lease transactions, except for those which meet theconditions that the ownership of the leased assets was transferredto the lessee.
1. The content of lease assets: Machinery and equipment
2. Depreciation method of lease assets:
Please refer to Note 2 Summary of Significant Accounting
Policies (H) Leases.

(B) Operating Lease as a lessee

Future minimum lease payments for noncancelable operatingleases are summarized as follows:
Millions of yen

Due within one year
Due after one year

¥705
2,246
¥2,951

1. Details of investment lease
1) Investment lease- current assets
Lease revenues receivable
Interests receivable

2) Investment lease - others
Lease revenues receivable
Interests receivable

Millions of yen

Thousands of
U.S.dollars

2015

2014

¥133
(7)
¥126

$1,065(50)$1,015

¥652
(35)
¥617

¥966
(53)
¥913

$5,426(291)$5,135

¥128
(6)
¥122

2015

2. Expected collectible amounts of lease revenues receivable are as follows:
Millions of yen

Within one year
Between 1 to 2 years
Between 2 to 3 years
Between 3 to 4 years
Between 4 to 5 years
More than 5 years

2015

¥128
286
212
142
12
0
¥780

2014

¥133
674
187
83
21
0
¥1,098

Thousands of
U.S.dollars

2015$1,065
2,380
1,764
1,182
100
0
$6,491(D) Operating Lease as a lessor

Future minimum lease payments for noncancelable operatingleases are summarized as follows:
Millions of yen

Due within one year
Due after one year

2015

¥695
1,052
¥1,747

2014

¥752
1,410
¥2,162Thousands of
U.S.dollars

2015$5,783
8,754$14,537(E) Other related information(A) Finance Lease as a lessee

2015(C) Finance Lease as a lessor

2014

¥541
632
¥1,173Thousands of
U.S.dollars

2015$5,867
18,690$24,557

Future minimum lease payments for noncancelable operating
sub-leases are summarized as follows:
Investment lease
Current assets
OthersLease expenses payable
Current liabilities
Fixed liabilities

Millions of yen

2015

2014

Thousands of
U.S.dollars

2015

¥443
599
¥1,042¥470
869¥1,339$3,686
4,985$8,671¥443
599¥1,042¥470
869¥1,339$3,686
4,985$8,671

12. Consolidated Statement of Cash FlowsThe content of important non-cash transactions
The impact of non-cash transactions on assets and liabilities
under finance lease is ¥3,435 million ($28,585 thousand) and¥3,696 million ($30,756 thousand) for the year ended March 31,
2015 and ¥3,608 million and ¥3,608 million for the year ended
March 31, 2014, respectively.

1713. Financial Instruments

Monthly reports including actual transaction data aresubmitted to top management for their review.
For marketable and investment securities, the Companies
periodically review the fair values of such financial
instruments and the financial position of the issuers. In
addition, the Companies continuously evaluate whether
securities should be maintained taking into account theirfair values and relationships with the issuers.
3) Monitoring of liquidity risk (the risk that the Companies may
not be able to meet its obligations on scheduled due dates)
Based on the report from each division, the Companies
prepare and update their cash flow plans on a timely basis
to manage liquidity risk.

Overview

1. Policy for financial instruments
The Companies raise funds mainly using Toshiba Group
Finance program. Essentially the Companies use the program
for temporarily excess funds.
The Companies use derivatives for the purpose of reducing
risks (described below) and do not enter into derivatives for
speculative or trading purposes.
2. Types of financial instruments and related risks
Trade receivables (Notes and accounts receivable-trade) are
exposed to credit risk in relation to customers. In addition,
the Companies are exposed to foreign currency exchange
rate fluctuation risk arising from receivables denominated inforeign currencies. In principle, the foreign currency exchange
rate fluctuation risk deriving from the trade receivables
denominated in foreign currencies, net of trade payables
denominated in the same currencies, are hedged by forward
foreign exchange contracts.
Investment securities are exposed to market risk. These are
the equity securities of certain enterprises with which theCompanies have business relationships.
Substantially all trade payables (Notes and accounts payabletrade) are due within one year. Although the Companies are
exposed to foreign currency exchange rate fluctuation risk
arising from those payables denominated in foreign currencies.
But the volume of account payable is in the range of accounts
receivable of the same currency.
A debt is short-term used in working capital which is mainly
raised using the Toshiba Group Finance program.
Regarding derivatives, the Companies enter into forward
foreign exchange contracts and options to reduce the foreign
currency exchange rate fluctuation risk arising from thereceivables and payables denominated in foreign currencies.
With regard to instrumentals, targets, policies and methods ofevaluating the effectiveness of the hedge, please refer to Note
2 Summary of Significant Accounting Policies (P) Derivative
Financial instruments.
3. Risk management for financial instruments
1) Monitoring of credit risks (the risks that related to breachof contract with client)
In accordance with the internal policies, the Credit
Managing division monitors credit worthiness of theircustomers periodically, and monitors due dates andoutstanding balances by individual customer. In addition,
the Companies are making efforts to identify and mitigate
risks of bad debts from customers who are having financial
difficulties.
2) Monitoring of market risks (the risks arising fromfluctuations in foreign exchanges rates, interest rates andothers)For trade receivables and payables denominated in foreign
currencies, the Companies identify the foreign currency
exchange rate fluctuation risk for each currency on amonthly basis and enter into forward foreign exchange
contracts to hedge such risk.
The Financial Division manages risks on derivativetransactions, in accordance with the internal policies.

18

4. Supplementary explanation of the estimated fair value offinancial instruments
The fair value of financial instruments is based on theirquoted market price, if available. When there is no quoted
market price available, the fair value is determined based onreasonable estimates. Since various assumptions and factors
are reflected in estimating the fair value, different assumptions
and factors could result in different fair value. In addition,
the notional amounts of derivatives in Note 15 Derivative
Transactions are not indicative of the actual market risk
involved in derivative transactions.

Estimated Fair Value of Financial Instruments

For the year ended March 31, 2015
The carrying value of financial instruments in the consolidatedbalance sheet as of March 31, 2015, and their estimated fairvalue are as follows:(a) Cash and cash equivalents
and accounts(b) Notes
receivable-trade
Allowance for
doubtful accounts *1

Consolidatedbalance sheet¥54,965

Millions of yen
Estimated
fair value¥54,965

Difference−

81,623−−(1,342)−−80,28180,281

−

3,236

3,236

−

and accounts(d) Notes
payable-trade(89,920)(89,920)−(e) Short- term loans payable(2,028)(2,028)−(f) Derivative transactions *2

805

805

−

and
(c) Marketable
investment securities(a) Cash and cash equivalents
and accounts(b) Notes
receivable-trade
Allowance for
doubtful accounts *1

Thousands of U.S. dollars
Consolidated
Estimatedbalance sheet
fair value
Difference$457,394$457,394−

679,229−−(11,167)−−

668,062

668,062−

26,92926,929−and accounts(d) Notes
payable-trade(748,273)(748,273)−(e) Short- term loans payable(16,876)(16,876)−(f) Derivative transactions *2

6,699

6,699

−

and
(c) Marketable
investment securities*1*2

Allowance for doubtful accounts provided for individual customers are deducted.
The value of assets and liabilities arising from derivatives is shown at net value.
The liability position is shown in parenthesis.

Note: 1. Method to determine the estimated fair value of financial instruments and othermatters related to securities and derivative transactions(a) Cash and cash equivalents, (b) Notes and accounts receivable-trade
Since these items are settled in a short period of time, their carrying value
approximates the fair value.
(c) Marketable and investment securities
The fair value of marketable and investment securities is based on the quoted market
price. For information on securities by each holding purpose, please refer to Note 14
Securities.
(d) Notes and accounts payable-trade, (e) Short-term loans payable
Since these items are settled in a short period of time, their carrying value
approximates the fair value.
(f) Derivative transactions
Please refer to Note 15 Derivative Transactions.
2. Financial instruments for which it is extremely difficult to determine the fair value

Millions of yen

Unlisted stocks¥1,809Thousands of
U.S. dollars$15,054

Because no quoted market price is available and it is extremely difficult to determine
the fair value, the above financial instruments are not included in the above table.
3. Redemption schedule for receivables and marketable securities with maturities at
March 31, 2015
Due in one
year or less
Cash and cash equivalents

Notes and accounts
receivable-tradeMarketable andinvestment securities
Held-to-maturity
debt securities
National andlocal
government
bonds
Corporate
bonds
Other marketable securities
with maturities
Corporate
bonds
Other

Total

¥54,965
81,623

Other

Total

−

−
−

−
−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

Due in one
year or less
Cash and cash equivalents−

Due after
ten years−¥136,588

Notes and accounts
receivable-tradeMarketable andinvestment securities
Held-to-maturity
debt securities
National andlocal
government
bonds
Corporate
bonds
Other marketable securities
with maturities
CorporatebondsMillions of yen
Due after fiveDue after one
years throughyear throughten years
five years$457,394
679,229−−

Thousands of U.S. dollars
Due after fiveDue after one
years throughyear throughten years
five years

−

−

−
−

−

Due after
ten years−

For the year ended March 31, 2014
The carrying value of financial instruments in the consolidatedbalance sheet as of March 31, 2014, and their estimated fairvalue are as follows:(a) Cash and cash equivalents
and accounts(b) Notes
receivable-trade
Allowance for
doubtful accounts *1

−

−

−

−

−

−

−

−

−

−

−

−

−

−

$1,136,623

−

−

−

¥47,409

Difference

−

−

−

(1,191)−−87,33787,337

−

2,611

2,611

−

and accounts(d) Notes
payable-trade(75,673)(75,673)−(e) Short- term loans payable(1,054)(1,054)−(f) Derivative transactions *2

(6)

(6)

−

and
(c) Marketable
investment securities*1*2

Allowance for doubtful accounts provided for individual customers are deducted.
The value of assets and liabilities arising from derivatives is shown at net value.
The liability position is shown in parenthesis.

Note: 1. Method to determine the estimated fair value of financial instruments and othermatters related to securities and derivative transactions(a) Cash and cash equivalents, (b) Notes and accounts receivable-trade
Since these items are settled in a short period of time, their carrying value
approximates the fair value.
(c) Marketable and investment securities
The fair value of marketable and investment securities is based on the quoted market
price. For information on securities by each holding purpose, please refer to Note 14
Securities.
(d) Notes and accounts payable-trade, (e) Short-term loans payable
Since these items are settled in a short period of time, their carrying value
approximates the fair value.
(f) Derivative transactions
Please refer to Note 15 Derivative Transactions.
2. Financial instruments for which is extremely difficult to determine the fair value

Millions of yen

Unlisted stocks¥1,774

Because no quoted market price is available and it is extremely difficult to determine
the fair value, the above financial instruments are not included in the above table.
3. Redemption schedule for receivables and marketable securities with maturities at
March 31, 2013
Due in one
year or less
Cash and cash equivalents−¥47,409

Millions of yen
Estimated
fair value

88,528−−

Consolidatedbalance sheet

Notes and accounts
receivable-tradeMarketable andinvestment securities
Held-to-maturity
debt securities
National andlocal
government
bonds
Corporate
bonds
Other marketablesecurities with maturities
Corporate
bonds
Other

Total

¥47,409

Millions of yen
Due after fiveDue after one
years throughyear throughten years
five years

Due after
ten years

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

−

88,528¥135,937

−

−

−

−

−

−

19

14. Securities

Thousands of U.S. dollars
2015

1. Information regarding marketable other securities as of March
31, 2015 and 2014 are as follows:
Millions of yen

2015
Carrying Acquisition Unrealized
value
cost
gain (loss)

2014
Carrying Acquisition Unrealized
value
cost
gain (loss)

Securities whose carrying value exceeds their acquisition cost:
Stocks¥3,128¥977 ¥2,151 ¥2,490 ¥1,009 ¥1,481
Securities whose acquisition cost exceeds their carrying value:
Stocks
108
125
(17)
121
141
(20)
Subtotal
108
125
(17)
121
141
(20)
Total
¥3,236 ¥1,102 ¥2,134 ¥2,611 ¥1,150 ¥1,461
Thousands of U.S.dollars

2015
Acquisition cost

Carrying value

Unrealized gain (loss)

Securities whose carrying value exceeds their acquisition cost:
Stocks$26,030$8,130
Securities whose acquisition cost exceeds their carrying value:
Stocks899
1,040
Subtotal
899
1,040
Total
$26,929$9,170$17,900(141)(141)$17,759

2. The proceeds from sales of securities, except those of theaffiliated companies, for the years ended March 31, 2015 and2014 were ¥107 million ($ 890 thousand) and ¥7 million,
respectively. The realized gains on those sales for the years
ended March 31, 2015 and 2014 were ¥46 million ($383
thousand) and ¥4 million, respectively.
3. Information regarding non-marketable securities as of March
31, 2015 and 2014 is as follows.
Thousands of
U.S.dollars

Millions of yen

2015

2014

2015

Carrying value

Other securities
Unlisted stocks
OthersTotal¥1,809−¥1,809Carrying value¥1,774−¥1,774$15,054−$15,054

15. Derivative Transactions

1. Summarized below are the amount of contract and the estimatedfair value of the derivative instruments outstanding at March 31,
2015 and 2014, for which the hedge accounting is not applied.

Transaction outside the market
Currency-related transactions
2015
Contract amount
Maturing Maturing
within after one
one yearyear
Forward foreignexchange contracts

Sell:
USD ¥10,979
7,498
EUR
−
AUD
Buy:
13,310USD
CNY 12,198¥43,985
Total

20

¥−
−
−

¥0
426
−

Unrealized
gain

Forward foreignexchange contracts

Sell:
USD
EUR
AUD
Buy:
USD
USD
Total

2014

Contract amount
Maturing Maturing
within after one
one year
year

Fair
value

Unrealized
gain (loss)

¥0
426
−

¥ −
6,938
9

¥−
−
−

¥ −
(0)
(0)

¥ −
(0)
(0)

− 1,016 1,016
−
570
570
¥ − ¥2,012 ¥2,012

2,299−¥9,246

−
−
¥−

(6)
−
¥(6)

(6)
−
¥(6)

Maturing
within one year

Fair value

Unrealized
gain

Maturing
after one year

$91,362
62,395
−

$−
−
−

$8
3,545
−

$8
3,545
−

110,760
101,506$366,023

−
−
$−

8,455
4,743
$16,751

8,455
4,743
$16,751*Calculation of the fair value is based on the value from financial institutions.

2. Summarized below are the amount of contract and theestimated fair value of the derivative instruments outstandingat March 31, 2015 and 2014, for which hedge accounting isapplied.

Currency-related transactions

1) Net deferred profits on hedges
Millions of yen

2015
Contract amount

Forward foreignexchange contracts

Sell:
USD
EUR
AUD
CAD
Sell:
USD
AUD
CNY
Total

Fair value

Maturing Maturing
within one after one
year
year

¥3,678
1,789
555
256

¥−

5,257
276
24
¥11,835

−
−
−

−
−
−

¥−

2014

Contract amount

Fair value

Maturing
within one
year

Maturing
after one
year

¥0
(0)
1
1

¥ −

¥−

¥ −

19

−

(0)

(0)

2,241

(6)

4
¥6

−

−
−
−

(0)

−

−

−

−

−

¥2,260

−
−

¥−

¥(6)

Thousands of U.S. dollars
Contract amount

Forward foreignexchange contracts

Sell:

Millions of yen
Fair
value

Contract amount

Buy:

Total

Maturing
within one year

2015

Fair value

Maturing
after one year

USD
EUR
AUD
CAD

$30,607
14,887
4,618
2,130

$−

USD
AUD
CNY

43,7462,297
200$98,485

−
−
−

−
−
−

$−

*Calculation of the fair value is based on the value from financial institutions.

$3
(2)
10
4
(1)
(1)
35
$48

2) Forward foreign exchange contracts, for which the deferral
hedge accounting is applied
Millions of yen

2015
Contract amount

Forward foreignexchange contracts

Sell:
USD
AUD
CAD
Sell:
USD
Total

Fair value

Maturing Maturing
within one after one
year
year

¥3,586
1,257
983
1,422
¥7,2482014

Contract amount
Maturing
after one
year

¥−

¥ −
(32)
24

−

(2)
¥(10)

¥−

¥0
39
19

¥ −
1,046
703

−

2
¥60

206
¥1,955−−¥−

Fair value

Maturing
within one
year

−
−

¥−

Thousands of U.S. dollars
Contract amount

Forward foreignexchange contracts

Sell:

Sell:
Total

Maturing
within one year

2015

Fair value

Maturing
after one year

USD
AUD
CAD

$29,841
10,460
8,180

$−
−
−

$1
324
158

USD

11,834$60,315

−

17
$500

$−

*Calculation of the fair value is based on the value from financial institutions.

16. Segment Information(A) Business Segments
1. Summary of reportable segments
The reportable segments of the Companies are components forwhich discrete financial information is available and whose
operating results are regularly reviewed by the Executive
Committee to make decisions about resource allocation and toassess the performance.
Aiming to become “a global one-stop solutions company”, theCompanies create comprehensive strategies per market anddevelop business activities under a framework for business
operation by each market segment.
Therefore, the Companies report on “System Solutions
Business Group” and “Global Solutions Business Group” asreportable segments.
2.The calculation method for amounts of sales, income, assets
and other items per reportable segments
The accounting policies of the segments are substantially thesame as those described in the significant accounting policies
in Note 2 Summary of Significant Accounting Policies.
Intersegment sales and transfers are calculated at theprevailing market prices.
As discussed in Notes 2 Summary of Significant Accounting
Policies, the Company and its certain domestic subsidiaries
changed the methods for calculating retirement benefit
obligations and service costs.
The effect these accounting changes on segment income forthe fiscal year ended March 31, 2015 is insignificant.

Millions of yen

Thousands of
U.S.dollars

2015

2014

¥196,557
2,767
199,324¥193,054
2,253
195,307

328,717
11,692
340,409(14,459)¥525,274

305,817
2,735,433
11,671
97,295
317,4882,832,728(13,924)(120,320)¥498,871 $4,371,091

Segment Income
System Solutions Business Group
Global Solutions Business Group
Consolidated¥10,175
8,523¥18,698¥9,74013,346¥23,086$84,671
70,925$155,596

Segment Assets
System Solutions Business Group
Global Solutions Business Group
Adjustments
Consolidated¥89,787
312,478
15,175¥417,440¥79,724
294,661
19,580¥393,965$747,167
2,600,300
126,279$3,473,746

Depreciation
System Solutions Business Group
Global Solutions Business Group
Consolidated¥2,084
13,621¥15,705¥1,985
14,761¥16,746$17,342
113,347$130,689

Amortization
System Solutions Business Group
Global Solutions Business Group
Consolidated

¥164
4,524
¥4,688¥164
4,306¥4,470$1,36537,647$39,012

Capital Expenditures
System Solutions Business Group
Global Solutions Business Group
Consolidated¥3,24821,623¥24,871¥2,363
15,911¥18,274$27,028
179,936$206,964

Net Sales
System Solutions Business Group
Unaffiliated customers
Intersegment
Total
Global Solutions Business Group
Unaffiliated customers
Intersegment
Total
Adjustments
Consolidated

2015$1,635,658
23,025
1,658,683

Note: 1 Adjustments of segment assets are corporate assets, and consist of cash and cash
equivalents and investment securities in the amount of ¥ 15,175 million ($126,279
thousand) and ¥ 19,580 million in March 31, 2015 and 2014, respectively.
2 Segment income corresponds to operating income of Consolidated Statement of
Income.
The main products of each business segment
System Solutions Business GroupPOS Systems, MFPs, Auto ID systems and related products, in Japan
Global Solutions Business Group
MFPs, POS Systems, Auto ID systems, Printers and related products, abroad(B) Relative Information

1. Products and service information
Millions of yen

Net sales of Retail
Net sales of MFP

2015¥309,701
215,573¥525,2742014¥300,124
198,747¥498,871

Thousands of
U.S.dollars

2015$2,577,191
1,793,900$4,371,091

Retail : POS systems, Auto ID systems and related products, etc.
MFP : Multi Function Peripherals, facsimiles, office printers, multi-function peripheraldevices, scanner functions and document management to be realized in one piece21

2. Information by geographical area
Millions of yen

Net SalesJapan
American States
EuropeAsia and others
Net sales

Tangible Fixed Assets

Japan
American States
EuropeAsia and others
Net sales

2015

2014

¥208,318
163,216
106,244
47,496¥525,274¥204,581
142,847
105,169
46,274¥498,871

Thousands of
U.S.dollars

2015

The stock options outstanding as of March 31, 2015 are as
follows:$1,733,528
1,358,209
884,114395,239$4,371,091

1. The amount and the accounting subject in relation to the stock
options existing for the year ended March 31, 2015.
Selling, General and Administrative Expenses for the years
ended March 31, 2015 and 2014 are ¥52 million ($433
thousands) and ¥49 million, respectively.
2. The size of stock option and its circumstances¥13,411
5,890
8,803
5,457
¥33,561¥13,328
6,467
9,139
4,382
¥33,316$111,600
49,01473,25445,411$279,279

Criteria of geographical segmentation and the name of countries
or areas mainly included in each segment except for Japan are as
follows:
1) Criteria: geographical closeness2) Countries & Areas2)-1. American States
U.S.A., Canada, Mexico, Puerto Rico, Panama, Venezuela,
Brazil, Chile2)-2. Europe
U.K., France, Germany, Spain, Switzerland, Belgium,
Italy,Netherlands, Sweden, Norway, Denmark, Finland,
Poland2)-3. Asia and Others
Singapore, Malaysia, Indonesia, China, Australia, Korea
3. Information by major customer
There are no customers whom the Companies sell it to morethan 10% of total sales for the years ended in March 31, 2015
and 2014.
4. Information on impairment loss in non-current assets bybusiness segment
There are no events to be noted for this purpose for the years
ended in March 31, 2015 and 2014.
5. Information on amortization of goodwill and unamortizedbalance by business segment
Millions of yen

System Solutions Business Group
Global Solutions Business Group
Consolidated

2015
2014
Balance at endof period¥164
36,748¥36,912¥328
39,273¥39,601

Thousands of
U.S.dollars

2015
Balance at endof period$1,365
305,800$307,165

For the amount of amortization of goodwill, it is omitted as it isdisclosed in “Segment Information”
6. Information on negative goodwill by business segment･For the year ended in March 31, 2015
Not applicable･For the year ended in March 31, 2014
Omitted as immaterial in amount22

17. Stock Option Plan

1) General information
The first new share subscription rights
as share-reward type stock option
Qualified beneficiaries
Type of shares for which new
subscription rights offered (Note 1)

18 of the Company directors and corporate
officers
83,000 shares of Common stock

Date of issuanceAugust 1, 2008

Vesting period

No conditional period required

Condition of exercising
Subscription rights exercise period(Note 2)

From August 2, 2008 to August 1, 2038
The second new share subscription rights
as share-reward type stock option

Qualified beneficiaries
Type of shares for which new
subscription rights offered (Note 1)

17 of the Company directors and corporate
officers
169,000 shares of Common stock

Date of issuance

July 31, 2009

Vesting period

No conditional period required

Condition of exercising
Subscription rights exercise period(Note 2)

From August 1, 2009 to July 31, 2039
The third new share subscription rights
as share-reward type stock option

Qualified beneficiaries
Type of shares for which new
subscription rights offered (Note 1)

17 of the Company directors and corporate
officers
134,000 shares of Common stock

Date of issuance

July 30, 2010

Vesting period

No conditional period required

Condition of exercising
Subscription rights exercise period(Note 2)

From July 31, 2010 to July 30, 2040
The fourth new share subscription rights
as share-reward type stock option

Qualified beneficiaries
Type of shares for which new
subscription rights offered (Note 1)

17 of the Company directors and corporate
officers
128,000 shares of Common stock

Date of issuanceAugust 2 , 2011

Vesting period

No conditional period required

Condition of exercising
Subscription rights exercise period(Note 2)

From August 3, 2011 to August 2, 2041
The fifth new share subscription rights
as share-reward type stock option

Qualified beneficiaries
Type of shares for which new
subscription rights offered (Note 1)

17 of the Company directors and corporate
officers
156,000 shares of Common stock

Date of issuanceAugust 2 , 2012

Vesting period

No conditional period required

Condition of exercising
Subscription rights exercise period(Note 2)

From August 3, 2012 to August 2, 2042

The sixth new share subscription rights
as share-reward type stock option
Qualified beneficiaries
Type of shares for which new
subscription rights offered (Note 1)

17 of the Company directors and corporate
officers
89,000 shares of Common stock

Date of issuance

July 31, 2013

Vesting period

No conditional period required

Condition of exercising

Before the resolution

End of the preceding term

(Note 2)

Subscription rights exercise period

Type of shares for which new
subscription rights offered (Note 1)

17 of the Company directors and corporate
officers
79,000 shares of Common stock

Date of issuance

July 31, 2014

Vesting period

No conditional period required

Condition of exercising

Note: 1
2

79,000

Vested79,000

Outstanding

End of the preceding term

From August 1, 2014 to July 31, 2044

Addressed is the amount of stock options existing as of March 31,
2015.
As for the number of stock options, it is converted into the number ofshares.

2)-2. Per share data

Exercised price
The average priceat the time of exercising
Official price at the dateofferedOfferedCancelled

VestedThe first new The second new The third new
share
share
share
subscription
subscription
subscription
rightsrightsrightsas share-reward as share-reward as share-reward
type stock option type stock option type stock option

−

−

−

−

−

−

−

−

End of the preceding term

16,00036,00028,000Exercised price

Exercised

12,00028,00022,000

Outstanding

4,000

8,000

6,000

The average priceat the time of exercising
Official price at the dateoffered

VestedCancelled

Before the resolution

End of the preceding term

OfferedCancelled

VestedOutstanding

After the resolution

−

−

−

−

−

−

−

−

−

The sixth new
The fifth new
The fourth new
share
share
share
subscription
subscription
subscription
rightsrightsrightsas share-reward as share-reward as share-reward
type stock option type stock option type stock option
−

−

−

−

−

−

−

−

−

−

Note: 1 The figure is calculated based on actual share data from August 27, 2012 up to the week
offered.
2 The calculation is based on the condition that the Company's directors or corporate
officers are resigned and the option was exercised exactly after the day of resignation.
						 For tenure of directors and executive officers, the Company has calculated the average
tenure remaining term at the date of grant based on the average tenure.
3 The estimated figure is based on the actual dividend amount for the year ended March
31, 2014.
4 Estimated capitalization cycle of government bond is in accordance with estimatedresidual period

36,00047,00031,000

Outstanding

30,00052,00058,000−The seventh new share subscription rights
as share-reward type stock option−

Exercised−

1) The evaluation method used: Black–Scholes method
2) General information and the method of estimation

Estimated dividends (Note 3)

89,000Cancelled

3. The evaluation of fair price of stock option−−

99,000−−¥667($5.550)

Stock market volatility (Note 1)

66,000−The first new The second new The third new
share
share
share
subscription
subscription
subscription
rights as
rights as
rights as
share-reward
share-reward
share-reward
type stock option type stock option type stock option¥1¥1¥1($0.008)($0.008)($0.008)
¥706
¥706
¥706
($5.875)($5.875)($5.875)
¥560
¥393
¥307
($4.660)($3.270)($2.555)−−

End of the preceding term

Vested−79,000The seventh new
share
subscription
rights as
share-reward
type stock option¥1($0.008)−−

Outstanding−

The average priceat the time of exercising
Official price at the dateofferedExercised price−

After the resolution

79,000The sixth new
The fifth new
The fourth new
share
share
share
subscription
subscription
subscription
rights as
rights as
rights as
share-reward
share-reward
share-reward
type stock option type stock option type stock option¥1¥1¥1($0.008)($0.008)($0.008)
¥708
¥708
¥709
($5.892)($5.892)($5.900)
¥316
¥291
¥550
($2.630)($2.422)($4.577)2)-1. The number of stock options−−

VestedOutstanding2) The size of stock option and movement

End of the preceding term−

After the resolution

Cancelled

The amount is converted into the number of shares.
Fixed term of the right is not given.
Subscription rights may be exercised in a lump sum within expiration cycle and 10
days after a beneficiary resigns from directors or corporate officers.

Before the resolution−

Exercised(Note 2)

Subscription rights exercise period−

OfferedCancelled

From August 1, 2013 to July 31, 2043
The seventh new share subscription rights
as share-reward type stock option

Qualified beneficiaries

The seventh new
share
subscription
rightsas share-reward
type stock option−−

Estimated residual period (Note 2)

Risk-free rate (Note 4)

33.2%

1.9 years¥8 ($0.067) per share
0.07%

23

4. The method of estimating the number of stock options vested
Fundamentally, only the actual number of cancelled stock options isshown as it is difficult to estimate the possible number of cancelledstock options.

18. Asset Retirement Obligation
Omitted as immaterial in amount.

1. Transactions with Related Parties(A) Transactions with related parties for the year
ended March 31, 2015.

(¥=Million, US$=Thousand)

Name

Address

CapitalBusiness

Percentage of voting
rights held (%)

Minato-ku,
Tokyo¥439,901($3,660,656)

Manufacturing andsales of digital
Direct: 52.7%
products andelectronic devices Indirect: 0.1%
and homeappliances

BusinessrelationshipTransaction

Transaction
amountAccount item

Balance at
fiscal year end

Sales of our
products,
Interlocking of deposits of funds
and purchasedirectorsof Toshiba
products

Deposits offunds(Note)Cash and cash
equivalents¥12,339($102,680)

Interest
income¥10($83)

Accruedinterest¥0($0)

Parentcompany

Toshiba
Corporation

Relationship

Dispatch of
executive
officers, etc.

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.

Name

Address

CapitalBusiness

Subsidiaryof the parent
company

Toshiba ofEurope, Ltd.

London, UK

GBP 13,522

The regional
representative
company inEurope, Middle
East and Africa

Relationship
Dispatch of
Business
executive
relationshipofficers, etc.

Transaction

Transaction
amountAccount item

Balance at
fiscal year end

Deposits offunds(Note)

Interest
income¥5($42)

Cash and cash
equivalents¥7,939($66,065)

Deposits offunds

StatusName

Address

CapitalBusiness

Subsidiaryof the parent
company

Toshiba Asia
Pacific Pte.,
Ltd.

Singapore

S$6,784

The regional
representative
company
in Asia and Pacific

Transaction

Transaction
amountAccount item

Deposits offunds(Note)

Interest
income¥3($25)

Relationship

Dispatch of
executive
officers, etc.
None

Businessrelationship
Deposits offunds

Cash and cash
equivalents

None

Balance at
fiscal year end¥5,365($44,645)

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.

24

None

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.
(¥=Million, US$=Thousand)
Percentage of voting
rights held (%)

StatusName

Address

CapitalBusiness

Subsidiaryof the parent
company

Toshiba
America, Ltd.

New York,
USA$1,002,550

The regional
representative
company inAmericas

Relationship
Dispatch of
Business
executive
relationshipofficers, etc.

Transaction

Transaction
amountAccount item

Balance at
fiscal year end

Deposits offunds(Note)

Interest
income¥0($0)

Cash and cash
equivalents¥7,511($62,503)

None

Deposits of
funds

None

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.
(¥=Million, US$=Thousand, CNY=Thousand)(¥=Million, US$=Thousand, S$=Thousand)
Percentage of voting
rights held (%)

Percentage of voting
rights held (%)

StatusNone

19. Transactions with Related Parties

Status(¥=Million, US$=Thousand, GBP=Thousand)Status
Subsidiaryof the parent
companyName

Toshiba China
Beijing,China
Co., Ltd.

Relationship
Dispatch of
Business
executive
relationshipofficers, etc.
None

Address

Deposits offunds

Transaction
Deposits offundsInterest
incomePercentage of voting
rights held (%)

CapitalBusiness

CNY249,362

The regional
representative
company in
China

Transaction
amountAccount item

Balance at
fiscal year end

Other¥3,485($29,001)(Note)¥41($341)

None

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note:Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.

(B) Transactions with related parties for the year
ended March 31, 2014.

(¥=Million)

StatusParentcompanyName
Toshiba
Corporation

Address
Minato-ku,
Tokyo

Relationship

Dispatch of
executive
officers, etc.

Capital¥439,901

Business

Percentage of voting
rights held (%)

Manufacturing andsales of digital
Direct: 52.8%
products andelectronic devices Indirect: 0.1%
and homeappliances

Transaction
amountAccount item

Deposits offunds(Note)Cash and cash
equivalents¥18,749

Interest
income¥7

Accruedinterest¥0

BusinessrelationshipTransaction

Sales of our
products,
Interlocking of deposits of funds
directors
and purchaseof Toshiba
products

Balance at
fiscal year end

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.
(¥=Million, S$=Thousand)
Percentage of voting
rights held (%)

StatusName

Address

CapitalBusiness

Subsidiaryof the parent
company

Toshiba Asia
Pacific Pte.,
Ltd.

Singapore

S$6,784

The regional
representative
company
in Asia andPacific

Relationship
Dispatch of
Business
executive
relationshipofficers, etc.

Transaction

Transaction
amountAccount item

Balance at
fiscal year end

Cash and cash
equivalents¥2,309None

Deposits offunds

Deposits offundsInterest
income(Note)¥3

None

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.
(¥=Million, GBP=Thousand)StatusName

Subsidiaryof the parent
company

Toshiba
International
Finance (UK)Plc.

Relationship
Dispatch of
Business
executive
relationshipofficers, etc.
None

Deposits offunds

Address

CapitalBusiness

London, UK

GBP 5,000

Financingof corporate
subsidiaries
overseas etc.

Transaction

Transaction
amountAccount item

Deposits offundsInterest
income(Note)¥2

Cash and cash
equivalents

Percentage of voting
rights held (%)
None

Balance at
fiscal year end¥6,593

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.

(¥=Million, US$=Thousand)StatusName

Address

CapitalBusiness

Percentage of voting
rights held (%)

Subsidiaryof the parent
company

Toshiba
America, Ltd.

New York,
USA$1,002,550

The regional
representative
company inAmericas

None

Relationship
Dispatch of
Business
executive
relationshipofficers, etc.

Transaction

Transaction
amountAccount item

Balance at
fiscal year end

Cash and cash
equivalents¥1,184

Deposits of
funds

None

Deposits offundsInterest
income(Note)¥0With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.
(¥=Million, CNY=Thousand)StatusName

Address

CapitalBusiness

Percentage of voting
rights held (%)

Subsidiaryof the parent
company

Toshiba China
Co., Ltd.

Beijing,
China

CNY249,362

The regional
representative
company in
China

None

Transaction

Transaction
amountAccount item

Balance at
fiscal year end

Deposits offunds(Note)

Other¥6,470Relationship
Dispatch of
Business
executive
relationshipofficers, etc.
Deposits of
None
funds

With regard to the amounts above, transaction amount and balance at fiscal year end don't include
consumption taxes.
Note: Concerning deposits of funds, it's difficult to figure out transaction amount because fundsettlement is performed whenever needed.
Therefore, only balance at fiscal year end is stated.
Policy for determining trade terms and conditions and other related matters
Depositing funds are determined from market rates and offers from third party interest rates.

2. Notes regarding parent company and material
affiliated companies

Information on the parent company
Toshiba Corporation (listed on Tokyo Stock Exchange, Nagoya Stock
Exchange)

20. Cash Dividends(A) Cash dividends for the year ended March 31, 2015
1. Cash dividends paid
(Resolution)

Type ofsharesBoard of directors held Common
on April 28, 2014
stock
Board of directors
Commonheld on October 29,
stock
2014
(Resolution)

Type ofsharesBoard of directors held Common
on April 28, 2014
stock
Board of directors
Commonheld on October 29,
stock
2014

Total amountof dividends

Dividends
per share

Record date

Effective date

¥1,097¥4.0

March 31,2014

June 2, 2014

¥1,649¥6.0

September 30,
2014

December 1,
2014

Dividends
per share

Record date

Effective date

$9,129$0.033

March 31,2014

June 2, 2014$13,722$0.050

September 30,
2014

December 1,
2014(Millions of yen)

Total amountof dividends(Thousands of
US dollars)(Yen)(US dollars)25

2. Year end dividends of the following fiscal year
(Resolution)

Type ofsharesBoard ofdirectors held Common
on June 16,
stock
2015
(Resolution)

Type ofsharesBoard ofdirectors held Common
on June 16,
stock
2015

Total amountof dividends(Millions of yen)

Dividends
per share Record date Effective date

Dividend
resource(Yen)

Retainedearnings¥1,922
Total amountof dividends(Thousands of
US dollars)$15,994

March 31,
2015

¥7.0

June 29, 2015

Dividends
per share Record date Effective date

Dividend
resource(US dollars)

Retainedearnings

March 31,2015

$0.058June 29, 2015

(B) Cash dividends for the year ended March 31, 2014
1. Cash dividends paid

Total amountof dividends

Dividends
per share

Record date

Effective dateCommonstock¥1,098¥4.0

March 31,2013

June 3, 2013

Commonstock¥1,098¥4.0

September 30,
2013

December 2,
2013

Type ofshares(Resolution)
Board of directors
held on April 26,
2013
Board of directors
held on October 28,
2013(Millions of yen)

(Yen)

2. Year end dividends of the following fiscal year
(Resolution)

Type ofsharesBoard ofdirectors held Common
on April 28,
stock
2014

Total amountof dividends(Millions of yen)

¥1,098Dividends
per share Record date Effective date

Dividend
resource(yen)

Retainedearnings

March 31,
2014

¥4.0

June 2, 2014

21. Per share Information
1. Per share information at March 31, 2015 and 2014 is as follows:
Net assets per share
Net (loss) income per share
Net income per share fully diluted

2015

Yen

¥629.23(1.21)−

U.S.dollars

2014¥576.50
25.99
25.94

2015

$5.236(0.010)−* For the year ended March 31 2015. although there were dilutive potential commonshares, net income per share fully diluted were not presented due to the recording of anet loss.
* Net income per share and net income per share fully diluted were calculated on the basisof the following data.
Thousands of
U.S.dollars

Millions of yen

2015

Net income per share
Net (loss) income¥(334)
Amounts not attributable tocommon stock−
Net (loss) income attributable
to common stock(334)
Average number of sharesof common stock during theperiod (thousand shares)
274,563
Net income per share fully diluted
Adjustment to net income−
Increase in number ofcommon stocks(thousand shares)−(Share subscription rights)−
Outline of the residual securities
excluded from the calculationof the fully diluted net income
per share because they have no−
dilutive effects.

26

2014

2015

¥7,134$(2,779)

−

−

7,134

(2,779)274,430

274,563

−

−

523
(523)

−
−

−

−

2. As stated in “Changes in Accounting Policies”, the Companies
have adopted Accounting Standard for Retirement Benefits,
and comply with the treatment of transitional provisions
defined in Paragraph 37 of Accounting Standard for Retirement
Benefits.
As a result, the net assets per share was increased by ¥13.03($0.108) as of March 31, 2015.

22. Subsequent Event
Change in reportable segments

In order to lead the business markets and provide innovative
solutions, the Company has re-organized its business structurefrom geographic-oriented segmentation to product & serviceoriented segmentation since April 1, 2015. As a result, startingfrom the next year, the reportable segments change to “Retail
Solutions” and “Printing Solutions”.
The amount of sales, income, assets and other items for the year
ended March 31, 2015 under the new reportable segments are as
follows:
Millions of yen

Net Sales
Retail Solutions Business Group
Unaffiliated customers
Intersegment
Total
Printing Solutions Business Group
Unaffiliated customers
Intersegment
Total
Adjustments
Consolidated

2015

Thousands of
U.S.dollars

2015¥322,777
2,325
325,102$2,686,003
19,3482,705,351

202,497
10,599213,096(12,924)¥525,274

1,685,088
88,2001,773,288(107,548)$4,371,091

Segment Income
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated¥1,273
17,425¥18,698$10,593145,003$155,596

Segment Assets
Retail Solutions Business Group
Printing Solutions Business Group
Adjustments
Consolidated¥257,745
144,520
15,175¥417,440$2,144,836
1,202,630
126,280$3,473,746

Depreciation
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated¥7,572
8,133¥15,705$63,010
67,679$130,689

Amortization
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated¥1,871
2,817¥4,688$15,569
23,443$39,012

Capital Expenditures
Retail Solutions Business Group
Printing Solutions Business Group
Consolidated¥15,4319,440¥24,871$128,409
78,555$206,964

27

Corporate Data
1-11-1, Osaki, Shinagawa-ku, Tokyo 141-8562, Japan
Tel: +81-3-6830-9100
Fax: +81-3-6684-4001
http://www.toshibatec.co.jp/
Established: February 21, 1950
Employees: 3,422 <Consolidated: 20,580> (as of March 2015)
Common Stock: ¥39,971 million (as of March 2015)
Stock Listing: Tokyo Stock Exchange (1st Section)

Board of Directors and Audit ＆ Supervisory Board (as of October 2, 2015)
President and Chief Executive Officer◊Takayuki Ikeda
Directors

Masato Yamamoto
Issei Ichihara
Hiroshi Tangoku
Toshifumi Matsumoto
Masatsugu Sakabe
Yukio Inoue
Shigenori Shiga◇:Representative Director

Audit & Supervisory Board Members

Hiroyuki Ikeda
Haruo Kawasumi
Takehiko Ouchi
Toshihiko Matsumoto

Main Consolidated Companies (as of March 31, 2015)• TOSHIBA AMERICA BUSINESS SOLUTIONS, INC.
• TOSHIBA TEC SOLUTION SERVICES CORPORATION• TOSHIBA GLOBAL COMMERCE SOLUTIONS, INC.
• TOSHIBA TEC GERMANY IMAGING SYSTEMS GmbH• TOSHIBA TEC FRANCE IMAGING SYSTEMS S.A.
• TOSHIBA TEC EUROPE RETAIL INFORMATION SYSTEMS S.A.
• TOSHIBA GLOBAL COMMERCE SOLUTIONS MEXICO, S. DE R.L. DE C.V.
• TOSHIBA TEC U.K. IMAGING SYSTEMS LTD.
• TOSHIBA TEC INFORMATION SYSTEMS (SHENZHEN) CO., LTD.
• TOSHIBA TEC SINGAPORE PTE LTD• P.T. TEC INDONESIA• TEC PRECISION CO., LTD.
• TOSEI CORPORATION• TEC INFORMATION SYSTEMS CORPORATION• KOKUSAI CHART CORPORATION• TOSHIBA TEC (H.K.) LOGISTICS & PROCUREMENT LTD.
• TOSHIBA GLOBAL COMMERCE SOLUTIONS HOLDINGS CORPORATION