FY2020 First Six Months
Consolidated Business Results

Nov 9, 2020

© 2020 Toshiba Tec Corporation

Contents

01 Key Messages
02

FY2020 First Six Months
Consolidated Business Results

03 FY2020 Forecast
04 Transformation of profit structure© 2020 Toshiba Tec Corporation

2

01
Key Messages© 2020 Toshiba Tec Corporation

3

Key Messages
In the harsh business environment caused by COVID-19, businessperformance improved significantly in the second quarter of FY2020
compared to the first quarter.
Operating income improved by 7 billion yen due to increased sales and thorough cost management.
（Increase and improvement in operating income: Retail solutions business group 3.4 billion yen,Printing solutions business group 3.6 billion yen）

Significant improvement in overseas retail solutions business
Operating income improved by about 4 billion yen year-on-year due to the reduction of fixed costs andincrease in sales of high value-added products.

Structural reformCutting fixed costs from the second half onward by reducing the number of employees by about 700
globally.

© 2020 Toshiba Tec Corporation4

02

FY2020 First Six Months
Consolidated Business Results© 2020 Toshiba Tec Corporation5

FY2020 First Six Months Business Results (Consolidated)(Billions of yen)

FY2020/1H

FY2019/1H

DifferenceActualActualvs FY2019/1HNet Sales

191.7249.9

Operating Profit△0.910.2(-%)(4.1%)△1.49.7(-%)(3.9%)△7.07.9(-%)(3.2%)

US$106.81

109.19△2.38

EUR

120.89122.01△1.12(Rate of sales)

Ordinary Profit(Rate of sales)

Profit Attributable toOwners of Parent(Rate of sales)

Foreign currency
exchange rate (Yen)

△58.2
△11.1
△11.1

△14.9

© 2020 Toshiba Tec Corporation6Operating Profit Analysis of FY2020/1H
SG&A+16.4

Gross Profit△27.5(Billions of yen)

10.2
FY2019/1H
OperatingProfit+7.5+1.9▲0.9
FY2020/1H
OperatingLoss

Currency
Exchange+6.3
Others△24.7△1.8
Sales Volume(Incl. the impact ofthe COVID-19)

+0.7

Mix

R&D

△1.0
Currency Exchange

PersonnelExpenses© 2020 Toshiba Tec Corporation

7

FY2020/1H Business Results by Segment(Billions of yen)

RetailSolutions
BusinessGroupNet Sales
Operating Profit(Rate of sales)

FY2020/1H

FY2019/1H

Difference

Actual(1Q/2Q)

Actualvs FY2019/1H

129.4(58.0/71.4)

159.9

5.5(1.0/4.5)

8.4(4.3％)(5.2％)

△30.5
△2.9

159.9
129.4

53.7

Overseas

49.2

80.2
FY2020/1H

106.2

FY2019/1H

Domestic© 2020 Toshiba Tec Corporation

8

FY2020/1H Business Results by Segment(Billions of yen)

PrintingSolutions
BusinessGroupFY2020/1H

FY2019/1H

Difference

Actual(1Q/2Q)

Actualvs FY2019/1H

65.5(27.9/37.6)

94.0

Operating Profit△6.5(△5.0/△1.5)

1.8(Rate of sales)(-%)(1.9%)Net Sales

△28.6
△8.2

94.0

65.5
16.4

21.3

China, etc.

28.2

Europe21.3
27.8
FY2020/1H

44.5

FY2019/1HAmericas© 2020 Toshiba Tec Corporation9Balance Sheet
Cash and cash equivalents decreased due to payments associated withbusiness structural reform costs.
288.5
53.3

AssetsLiabilities and Net Assets
288.5
257.9

257.9
35.9

-Cash and cash
equivalents

58.5-Notes andaccounts
receivable-trade

42.1-Inventories

29.1

23.0

-Other current
assets99.9

98.4-Non-current
assets2020/3E

2020/9E

59.7
46.5

192.1

(Billions of yen)

170.9

-Liabilities

96.4

87.0

-NetAssets

2020/3E

2020/9E© 2020 Toshiba Tec Corporation10

Cash Flows
Free cash flows minus due to temporary payment of
運転資金改善等の営業キャッシュフロー増加によりフリーキャッシュフロー改善
business structural reform costs(Billions of yen)

Cash Flows from operating activities
Cash Flows from investing activities

14.7

Free Cash Flows

7.7

△7.0

△10.4
△15.6
△5.2

FY2019/1H

FY2020/1H© 2020 Toshiba Tec Corporation

11

03
FY2020 Forecast© 2020 Toshiba Tec Corporation

12

FY2020 Forecast (Consolidated)(Billions of yen)

FY2020

FY2020FY2019ForecastForecast(May 26)

Actualvs. FY2020 FC(May 26)

Net Sales

400.0

410.0

483.8

Operating Profit

10.0

10.0

14.0

(2.5%)(2.4%)(2.9%)

7.0

7.0

11.6

(1.8%)(1.7%)(2.4%)

0.50.53.7(0.1%)(0.1%)(0.8%)

US$105.98*

105.00EUR120.80*

120.00(Rate of sales)

Ordinary Profit(Rate of sales)

Profit Attributable toOwners of Parent(Rate of sales)

Foreign currency
exchange rate (Yen)

Difference
vs. FY2019
Actual△10.0△83.8-

△4.0-

△4.6-

△3.2

109.13

+0.98

△3.15

121.27

+0.80

△0.47

＊Foreign currency exchange rates of FY20/2H forecasts are US$=105yen, EUR=120yen.
© 2020 Toshiba Tec Corporation13

FY2020 Forecast by Segment(Billions of yen)

RetailSolutions
BusinessGroupFY2019Forecast

Forecast(May 26)

Actual265.0

311.5

13.0

10.0

14.3(4.9％)(3.8％)(4.6％)Net Sales

143.0

155.0

179.9

Operating Profit△3.00.0△0.4(-%)

(-%)

(-%)

400.0

410.0

10.0
(2.5%)

Operating Profit(Rate of Sales)

Net Sales
Consolidated
Total

FY2020265.0

Net Sales(Rate of Sales)

PrintingSolutions
BusinessGroupFY2020Operating Profit(Rate of Sales)

Difference
vs. FY2020 FC(May 26)

vs. FY2019
Actual-

△46.5

+3.0

△1.3

△12.0

△36.9

△3.0

△2.6483.8

△10.0

△83.8

10.0

14.0-

△4.0(2.4%)(2.9%)© 2020 Toshiba Tec Corporation14

04
Transformation of profit structure© 2020 Toshiba Tec Corporation

15

Progress of structural reform

Personnel reduction

Cost reduction

Overseas businessApproximately 700 reductions at the end of September 2020.
Expected improvement effect of about 4 billion yen in the second halfof FY2020.

SG & A expenses reduced by 16.4 billion yen year-on-year
in the first half of FY2020.

Specific direction to be determined by the end of March 2021.

© 2020 Toshiba Tec Corporation16

Growth strategy
Redefining our business portfolio
FY20
Domestic
retailbusinessOverseas
retailbusiness

Printing
business

FY21

Investment for growth
Active investment in focus areas and promotionof collaboration
Improvement ofcost structure byreforming businessorganization andreducing fixedcosts.

Revitalization plan
Review the organization in
unprofitable areas

TargetROS
5% or more

Business restructuration
Consider all strategic options, including allianceswith external companies© 2020 Toshiba Tec Corporation

17

TOPIC: TEC 01 SIGHT SHOWROOM OPENED
A showroom where you can feel the future and co-create it
Opened October 1, 2020 in Shinagawa Intercity

A showroom where you can experience concept solutions and cutting-edge
technologies that propose new customer contact points, and also functions as a place
for co-creation with customers and partner companies.

© 2020 Toshiba Tec Corporation

18

Appendix© 2020 Toshiba Tec Corporation

19

FY2020 Forecast: Impact of Currency Exchange Rate

Premise Rate

Effect of Depreciationby 1 yen (Annual)

FY2020/2HNet Sales

Operating Profit

US$105 yen＋1.4 billion yen△0.1 billion yen

EUR

120 yen+0.3 billion yen＋0.1 billion yen© 2020 Toshiba Tec Corporation

20

FY2020 Forecast:

Capital investment*, Depreciation and Amortization, R&D expenses(Billions of Yen)

Capital investment,Depreciation and Amortization

R&D expenses

2535

22.4

30

20
17.0

16.6
15

14.1 14.3

14.0

27.8

26.9

25

23.0

2015

1010550
FY18
Capital investment

FY19
FY20 Forecast
Depreciation & Amortization*Increase in property, plant and equipment and intangible assets(Including the impact of applying new lease accounting at overseas
subsidiaries from FY2019)

0FY18

FY19
R&D expenses

FY20 Forecast© 2020 Toshiba Tec Corporation21

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

© 2020 Toshiba Tec Corporation22

© 2020 Toshiba Tec Corporation23