FY2016
Consolidated Business Results

May 12, 2017

© 2017 Toshiba Tec Corporation

Content

1. Key Messages

2. FY2016 Consolidated BusinessResults
3. FY2017 Forecast© 2017 Toshiba Tec Corporation1

Key Messages
Shift back to growth
after reforming the overseas retail solutions business
Significant increase in Operating Profit, Ordinary Profit andNet Income in FY2016
Profitability in the retail solutions business has improved significantly.
The domestic retail solutions business achieved record sales and O/I.

Recovery of overseas retail solutions business
The overseas retail solutions business was in the black in FY2016 due tosteady progresses of the GCS’s structural reform.

Dividend policy
Toshiba Tec will resume distributing dividends owing to the significant
improvement of business results in FY2016.

Resource injection in FY2017
Toshiba Tec plans to increase capital investment by approximately 50%
to 19.0 billion yen over the previous year, as well as increase R&D.
© 2017 Toshiba Tec Corporation2

Key Messages
Achieve independent management by securing
Toshiba Tec’s unique position in the Toshiba GroupToshiba announced that “Toshiba Tec’s retail and printing
business is a part of the infrastructure business domains”
The infrastructure business domain is one of Toshiba’s focus
business fields. Synergy is expected among the Toshiba Groupproducts and Toshiba Tec’s global customer base.

Financial arrangements and investment
Toshiba Tec has neither loans payable to Toshiba nor group deposits
paid. Toshiba Tec implements its own financial strategy.

R&D, Production, Sales
Toshiba Tec’s main products such as POS and MFP are developed andproduced at its own facilities in Japan and overseas. Sales to Toshibaaccount for less than 0.1% of the total.

© 2017 Toshiba Tec Corporation3

Content

1. Key Messages

2. FY2016 Consolidated BusinessResults
3. FY2017 Forecast© 2017 Toshiba Tec Corporation4

FY2016 Business Results(Billions of Yen)

Net Sales

FY2016FY2016FY2015

ActualForecast

Actual

497.6

490.0

532.8

14.6

14.0

1.6

(Rate of sales)(2.9%)(2.9%)(0.3%)

Ordinary Income (△Loss)

12.5

13.0

△2.3

(Rate of sales)(2.5%)(2.7%)(△0.4%)

7.8

5.0△103.4(1.6%)(1.0%)(△19.4%)

US$108.73

108.00

EUR119.30

118.00Operating Income

Net Income (△Loss）(Rate of sales)

Foreign currency
exchange rate

Difference
vs. FY2016 FCvs. FY2015+7.6△35.2+0.6+13.0△0.5+14.8+2.8+111.2

120.77+0.73△12.04132.74+1.30△13.44© 2017 Toshiba Tec Corporation5Operating Income Analysis of FY2016
Gross Profit

SG&A(Decrease of profit by 3.8)

(Increase of profit by 16.8)△0.5+10.4
1.6+10.3△0.3

Currency
Exchange Decrease inNet Sales

Currency
Exchange+9.1

14.6

Others

FY16
Operating
Income△2.2R&D
PersonnelExpenses

FY15Operating△13.8
Income(Billions of yen)

Others© 2017 Toshiba Tec Corporation

6FY2016 Business Results by Segment
FY2016FY2016FY2015

ActualForecast

Actual

320.8

314.0

324.8

Operating
Income (△Loss)

11.3

8.5

△11.5

(Rate of Sales)(3.5％)(2.7％)(△3.5%)Net Sales

189.1

189.0

220.2

Operating
Income

3.4

5.5

13.1

(1.8%)(2.9%)(5.9%)Net Sales

497.6

490.0

532.8

Consolidated
Total
Operating

14.6

14.0

1.6

(Billions of yen)

RetailSolutions
BusinessGroup

Printing
Solutions
BusinessGroupNet Sales(Rate of Sales)

Income(Rate of Sales)(2.9%)(2.9%)

Difference
vs. FY2016 FCvs. FY2015+6.8△4.0+2.8+22.7+0.1

△31.0

△2.1

△9.7+7.6

△35.2

+0.6

+13.0

(0.3%)© 2017 Toshiba Tec Corporation

7

Balance Sheet(Billions of yen)

Assets

281.6
22.7

Liabilities and Net Assets

281.6

269.4
46.1

-Cash and cash
equivalents

63.8-Notes andaccounts
receivable

76.5
46.9
40.6

269.4
1.0

-Loanspayable

207.8

192.4

-Otherliabilities

70.4

76.0

-Net
assets

16/3E

17/3E

-Inventories

37.9-Other current
assets86.9

81.0-Non-current
assets andothers

16/3E

17/3E

48.7

3.4

Equity ratio improved significantly owing to the recovery of businessperformance, as well as the reduction of inventory and the control of notes
and accounts receivable.
© 2017 Toshiba Tec Corporation8

FY2016 Cash Flow
(Billions of yen)Free cash flow

Cash flow from investing activities
Cash flow from operating activities

37.0

30.1

4.6
△ 5.2
△ 9.8

FY2015

Cash flows improved
significantly owing to therecovery of businessperformance, as well as
the reduction of inventory
and control of notes andaccounts receivable.

△ 6.9

FY2016© 2017 Toshiba Tec Corporation9Content

1. Key Messages

2. FY2016 Consolidated BusinessResults
3. FY2017 Forecast© 2017 Toshiba Tec Corporation

10FY2017 Forecast, Overall(Billions of Yen)FY2017FY2016

Difference

Forecast

Actualvs. FY2016

Net Sales

490.0497.6

Operating Income

16.0

14.6

(3.3%)(2.9%)

13.0

12.5(2.7%)(2.5%)

6.0

7.8(1.2%)(1.6%)

US$

100.00108.73△8.73

EUR110.00

119.30△9.30(Rate of sales)

Ordinary Income(Rate of sales)

Net Income(Rate of sales)

Foreign currency
exchange rate

△7.6+1.4+0.5△1.8© 2017 Toshiba Tec Corporation

11FY2017 Forecast by Segment(Billions of yen)

RetailSolutions
BusinessGroupNet Sales
Operating Income(Rate of Sales)

PrintingSolutions
BusinessGroupNet Sales
Operating Income(Rate of Sales)

Net Sales
Consolidated
Total
Operating Income(Rate of Sales)

FY2017FY2016

Difference

Forecast

Actualvs. FY2016

314.0

320.8

10.0

11.3

(3.2％)(3.5％)

188.0

189.1

6.0

3.4

(3.2%)(1.8%)

490.0

497.6

16.0

14.6

(3.3%)(2.9%)△6.8△1.3△1.1+2.6△7.6+1.4© 2017 Toshiba Tec Corporation

12Appendix© 2017 Toshiba Tec Corporation13

Sales & Operating Income of the last 6 yearsThe successful business recovery in FY2016
is leading to a growth phase(Billions of yen)

498.9

524.6

532.8

497.6
Net Sales

403.7
350.6

ROS
3.1%

5.0%
3.9%

2.9%

3.3%

10.8

15.9

24.8

17.1

FY2011FY2012FY2013

FY20141.6
0.3%

FY2015O/I

14.6

FY2016© 2017 Toshiba Tec Corporation

14

Operating Income of GCS
Profits achieved in FY2016/2H

FY2015FY2016

ActualFCT

1H Act.

2H Act.

0Operating Income

Increasedgross margin& costEffect of reduction
structuralreform

Depreciation& amortization© 2017 Toshiba Tec Corporation

15

Recent trend of Toshiba Tec’s cash position
A healthy financial position allows us
to adopt flexible growth strategies moving forward(Billions of yen)

100
86.0
8060

72.0
1st payment
to IBM ofacquisition
cost

40

55.0
47.3

2 nd payment
to IBM ofacquisition
cost

20

43.0
22.7
3 rd payment
to IBM ofacquisition
cost

1.9

3.1

1.1

2.0

12-Mar13-Mar

14-Mar15-Mar

32.8

3.4

1.2

1.1

16-Mar

16-Sep16-Dec046.1
Cash &Cashequivalents

1.0 Loanspayable17-Mar© 2017 Toshiba Tec Corporation16Topics (Japan Market)
Expansion of solutions business throughcollaboration with business partners
Field test of world-first electronic receipt system(equipped with personal data protection function)＜Field test of electronic receipt system＞

Initiate business collaboration with ABEJA, a strong
solution provider in the AI field<ebica>Launch restaurant “ebica reservation book” service
Launch “O:der(order)” , pre-order/pre-payment
service for restaurants
Field test to visualize pre-purchase information byusing RFID technology with Adastria<O:der><Field test to visualize pre-purchase information>

Delivery of RFID readable self-checkout system
to GU, one of the group companies of the Fast
Retailing Group© 2017 Toshiba Tec Corporation17

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

© 2017 Toshiba Tec Corporation18

© 2017 Toshiba Tec Corporation19