Presentation on
FY22 Management Policy
FY22～24 Mid-Term Business Plan (MTBP)May 27, 2022
Hironobu Nishikori
President & CEO
Toshiba Tec Corporation© 2022Toshiba Tec Corporation

Contents

01 Review of FY21

02 FY22 MTBP (Mid-Term Business Plan)

Become a global solutions partner from a vendor© 2022 Toshiba Tec Corporation2

01
Review of FY21

© 2022 Toshiba Tec Corporation

3

FY21 policy initiatives(reference from FY21 management policy briefing)

Shift to “Proactive & Aggressive management ” from FY21

FY20
Structural
Transformation

FY21～
Business model
innovation(Increasemanagement agility)

Work style reform(Develop ability ofeach employee)

Structural
ReformGlobal structuralreforms(Optimize fixed costs)

Proactive &Aggressive
management
Concentrated investment
in growth fields andpartnership strategy

×Continued initiatives
to improve earningsof overseas business© 2022 Toshiba Tec Corporation

4

FY2021 Results
Despite of special negative impact resulted from external environment changes,
achieved increase in sales and profit over a previous year due to effects of structuraltransformation implemented in FY20
FY21 Actual

FY20 Actual

Difference

Net Sales

445.3 B yen

405.7 B yen+39.6 B yen

Operating Profit

11.6 B yen

8.3 B yen

+3.3 B yen

ROS %

2.6％

2.0％

+0.6％

(RS*1:4.0％、WS *2 :0.5％)(RS*1:5.5％、WS*2:▲3.4％)

Current Net Profit

5.4 B yen

7.1 B yen

△1.7 B yen

Cash Flows fromOperating activities

10.0 B yen

9.2 B yen

+0.8 B yen

Return on invested capitals(ROIC *３)

5.7％

4.4％

+1.3％

*1 RS Retail Solutions Business *2 WS Workplace Solutions Business*3 ROIC=Operating profit after tax (Operating profit/loss x (1-tax rate)÷ invested capital (average interest-bearing debt + net assets)© 2022 Toshiba Tec Corporation

5

FY21 Results
Despite of continued supply chain disruptions, achieved year-on-year increase insales and profit due to effect of structural transformation and increased sales volume
under the improved situation of COVID-19
Changes in operating profit
Sales volume

Reduction in
fixed costs+1.8

External environment factors(Part shortage・rising transportation
cost, etc)

△17.4(Billions of yen)

+21.1
FY20
Furloughand others

8.3
FY20
Actual△9.2

Effect ofstructural reform

Exchange ratechanges

+0.9

11.6

+6.1
FY21
© 2022 Toshiba Tec Corporation
Actual6

FY21 Achievements
Achieved good results in each business by executing“Proactive & Aggressive management”
FY21 MTBP Basic Policy ■Global retail ：Accelerate business transformation by utilizing physical assets

Accelerate businessmodel transformation
aimed at becoming a
global top solutions
partner
FY21 MTBP Basic Policy①

partnership and co-creation

The number of visitors to TEC 01 SIGHT as a place for Co-Creation- 3,200（Approx. 900 companies）②

Enhance Wall to Wall/predictive analytics maintenance services overseas③

Management reform of overseas retail business (Americas/Europe) by new management◼ Workplace：Strengthening of existing business & initiatives of growth strategy④

Recovery of profitability
and strengthening ofsolutions

Expansion of Data & Solutions business through enhancement of strategic

Recovery of profitability of Workplace Solutions Business
Returned to be profitable in 2 nd half of FY21 while suffering from impacts ofsoaring parts price, supply chain disruption and increase in transportation cost⑤

Strategic initiatives to achieve the growth（Resource allocation to the growth field/strengthening of local solutions capability)© 2022 Toshiba Tec Corporation

7

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

Reduction of waste loss
Reduction of CO2
Reduction of paper consumption
Response to labor shortage
Optimization of store・office
Reduction of sales opportunity
loss

Micro service

Micro service

Open API

Open API

Cyber
Creation of
new services
new added value

Strengthen customer basefrom a medium to longterm perspective
The # of global Toshiba Tec’s subsidiaries: Overseas 64
The top global market share in POS : Approx. 3.25 M units (*1)
POS share in Japan: Approx. 50％
MFPs global installed units: Approx. 1.2 M unit (*2)
*1 (Source) RBR Global EPOS and Self-Checkout 2021

Business partner

Micro service＜Resolution of social issues＞
⚫
⚫
⚫
⚫
⚫
⚫

Solutions partner*2 Based on our own research

Network
effectGlobalcustomerbase

Co-creation

Physical

Opportunity

01SIGHT, PoC

Technology

Killer APP

Development

Enhance SW Dev

Globalsales & service
network

Toshiba Tec’s touchpoints
Platform© 2022 Toshiba Tec Corporation

8

① Expansion of Data & Solutions business through enhancement ofstrategic partnership and co-creation
Aiming to become a global top solutions partner in the distribution industry

by accelerating fusion of physical & cyber

KFS

A place for creating together
TEC 01 SIGHT（Labo & Showroom、Since Oct 2020）～Exceeding 3,200 visitors（Approx 900 companies) ～✓ Global development

Japan–US collaboration ELERA✓ Partnership Fusion of physical & cybercustomer base・service network✓ Investment

This showroom not only introduces our latest solutions, but also allows visitors toexperience conceptual solutions that suggest new touchpoints for customers, aswell as the latest technology. It also provides a space to engage in joint creation
with customers and partner companies.

FY18-20 Act
2.0 B yen
FY21 Act
6.3 B yen
FY21-23 Plan 31.0 B yen (FY21 MTBP)

Japan

US

Customerasset

Approx. 50%

Among 7 NA retailers
in the global top 10
list, we have 5
customers# ofservice
staff

Approx. 100
locations &1,500 staff

POS share

More then 750© 2022 Toshiba Tec Corporation

9

① Expansion of Data & Solutions business through enhancement ofstrategic partnership and co-creation“ELERA” is the platform for Data & Solutions co-created with partners
Variety of service
connectivity (e.g.)
CameraCRM

Location

Reservation

ERP

SNS

House prepaid card
Charge pack
SelfScan
Smart
phone

Touchpoints
inside/outside store
Smartphone

Payment

Cart

Ordering

EC siteCheckout

Data Analysis PF
Maker

SelfScanCart

Data Storage PF
Specialty
POS
function

General Merchandise
POS function

Hospitality
POS
functionRealestateagent

Data Analysis/Matching

Shopping
Mall POS
function

ELERA elemental function

Expansion of touchpoints through multi-device manipulation beyond hardware
Smartphone Tablet PC

Signage

Electric
Shelf
Label

BeaconCameraRFID

POS terminalSNS

Web site

Systems
in usePC© 2022 Toshiba Tec Corporation

10

① Expansion of Data & Solutions business through enhancement ofstrategic partnership and co-creation

Expansion of Data & Solution business driven by “ELERA“
Grow up global business in FY21 out of seeding period until FY20
A major GMS in NA

A DIY store in NA

A major EC retailer in NA
ELERA Cloud base POS/Associate Mobile/Self Enablement

ELERA Cloud base POS

ELERA Cloud base POS

A major GMS in Japan

A major drug store
in JapanA major sport goods store
in Japan

ELERA Cart/Smartphone POS

ELERA Smartphone POS

ELERA Cloud base POS© 2022 Toshiba Tec Corporation

11

① Expansion of Data & Solutions business through enhancement ofstrategic partnership and co-creation
Establish strong partnership with respective experts having competence in its business field to
supplement us with necessary function to promote growth areas (Retail 4 focused domains),
Data services, Next generation store, Payment and SCM＜Resolution of social issues＞⚫ Reduction of waste loss
⚫ Reduction of CO2⚫ Reduction of paper
consumption⚫ Response to labor shortage⚫ Optimization of store・office⚫ Reduction of sales
opportunity loss
Investments already done

➢ Harmonia Inc.

Next generation store・SCM＊Dynamic pricing➢ Work Style Tech Ltd.

Next generation store・BPO➢ Digital Garage, Inc. Payment・Data services＊DX for recruiting management＊Next generation Fin Tech + Digital marketing➢ TOUCH TO GO, Inc. Next generation store ➢ Sukima Works Inc. Next generation store・BPO ➢ b8ta Japan K.K.
＊Frictionless service➢ Bespo Inc.

Next generation store・BPO＊DX support for restaurants＊Experiential retail platform service（RaaS）＊Spot work

➢ Magee Co., Ltd.

Data services・BPO

Data services＊Data analysis and personal promotion➢ HataLuck and Person Inc. Next generation store＊Platform service for providing innovative changes© 2022 Toshiba Tec Corporation12
to retail stores① Expansion of Data & Solutions business through enhancement ofstrategic partnership and co-creation
Generate new service (retail media) by fusion of
Toshiba Tec’s physical assets & Digital Garage Group’s cyber assets
Extension of service area
Extension of service area
During shopping
Before shopping
After shopping
Attract
consumers
Link withdigital touchpoints
outside the store

Smart receipt

Stimulate purchase intention
Utilize Toshiba Tec’s next generation
store solution as digital touchpoints

Comprehend customers andconduct promotions
Realize effective promotion by
centralizing digital touchpoints
inside the store
Supplier

App.

SNS
Purchase App.

AD
EC

AD

New service for consumers
・Management function
・Purchasing function
・Original point system

Entrance
recognition

Cart
POS

Smartphone POS

AD

ID-POS data,
consumer data
Picking up
at store×

Signage© 2022 Toshiba Tec Corporation

13

① Expansion of Data & Solutions business through enhancement ofstrategic partnership and co-creation

Realize more efficient labor-saving operation, deploying partnershipinitiatives for newly developed store-format“TTG-SENSE” & ”TTG-SENSE MICRO”
developed by TTG
2 business categories 3 stores/FY20→ 6 business categories 9 stores/FY21×

Linkage with Smart receipt
Nationwide/FY22
Unmanned Store System“TTG-SENSE MICRO” & ”TTG-SENSE MICRO” launchednationwide linked with Smart Receipt ®

Smart receipt
・Electronic receipt
・Individual purchase data
・Data utilization(e.g. promotion)

Installation/
maintenanceby Toshiba Tec© 2022 Toshiba Tec Corporation

14

② Enhance Wall to Wall & Predictive analytics maintenance services overseas
Newly started service for major retail customer in North America in FY21
（approx. 1M devices/5K stores）

All-in maintenance services under
entrustment for multi-vendors devices
including competitors

Increase customer’s operational
efficiency of its device maintenance

Provide proactive maintenance service
by utilizing predictive analysis ofdevice disorder

Realize down-time minimization© 2022 Toshiba Tec Corporation

15

③ Management reform in overseas retail business initiated by
new management
Implemented initiatives to improve profitability by strengthening ofmanagement foundation and structural reform
Strategic focus is shifting to expand software business centering on ELERA platform◼ Executed structural reform in the past
3 years （FY19-FY21）⚫ Withdrawal from unprofitable markets(Russia, South Africa, etc.)⚫ Streamlined the workforce in US and Europe◼ Expansion/Reinforcement of customer basethrough differentiation of SW／services⚫ Expansion of SW／services businesscentering on ELERA platform⚫ Sales expansion due to synergy effect ofdifferentiated services■ Recruitment from outside the company
and newly appointed top management
in both US and Europe⚫ TGCS CEO Rance Poehler（Effective Nov. 2020）＜Profile＞
Effective Nov, 2020～ Present post
PIVOT3(CRO, Global Vice President)
DELL EMC(Global Vice President)
PANASONIC NORTH AMERICA(President)⚫ TGCS Europe MD Andrew McDaniel（Effective Jan. 2022）＜Profile＞
Effective from Jan, 2022 ～ Present post
DELL
(UK GM for Client Solutions Group)
Dell Technologies (EMEA CTO - Client Solutions Technologists - )DELL(EMEA General Manager - Cloud Client Computing - )© 2022 Toshiba Tec Corporation

16

④ Improved profitability of Workplace Solutions Business
Returned to be a profitable operation by strengthening business structure、
resulting in an improvement of 6.5 B yen operating profit vs FY20
Measures to improve profitability
Analysis of Operating Profit/Loss transition from FY20 to FY21
Special negative
factors
Sales
volume(Logistics cost・

Reduction Part shortage, etc.)
in fixed
Furloughcosts
and others Effect ofStructuralreform●Cost reduction by strengthening of businessstructure●Pricing management responding to soaring part
cost
●Resource allocation and reorganization aimed at
integrating manufacturing, sales and technology●Enhanced MFP market share in US, Europe,

Australia and China （Enjoyed the historical record
in US） A3 MFP global market share is 10.5% in CY21,※Based on our research

Improved operating profit
by 3.8 B yen from 1H/FY21
to 2H/FY21FY20Actual+6.5 B yen
Exchange
rate

2.4

-1.4

FY21
ActualOperating Profit/Loss
Special negative factors

1H/FY212H/FY21▲1.4 B yen▲4.0 B yen

2.4 B yen
▲6.3 B yen(Transportation cost・part shortage, etc.）© 2022 Toshiba Tec Corporation17

⑤ Initiatives for growth strategy of Workplace Solutions Business
Making progress in resource injection in the growth field
and the development of solutions●Strengthen response capability of local solutions●Shift human resource to the growth fields→ Expand direct support from local subsidiaries by utilizing
overseas R&D facilities→ Shift resources from HW and MFP to SW, BCS and new
businesses
FY20

FY21

SW/
New BizSW/
New Biz
HW

FY25

SW/
New Biz
HW

HW

FY21

FY20

●Establish a platform connected to cloud and data
→ Develop the e-BRIDGE Cloud Service connected to ELERA,
cloud and data

Edge device

Solutionse-BRIDGE Cloud Service
AI

FY23

Customer
data
Logistics

MedicalManufacturing

Education

RetailBank© 2022 Toshiba Tec Corporation

18

02
FY22 MTBP(Mid-Term Business Plan)© 2022 Toshiba Tec Corporation19

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

Solutions partner

Business partner

Micro service

Micro service

Micro service

Open API
Response tolabor shortage

Reduction of CO2

Optimizationof store/Office

Resolutionofsocial issues

Open API

Solving
customerissuesCyber
Creation of
new services
new added value

Strengthen customer
Reduction ofbase from a medium tosales opportunity loss long term perspective

Reduction of
Reductionof waste loss paper consumption

Network
effectGlobalcustomerbase

Co-creation

Physical

Opportunity

01SIGHT, PoC

Technology

Killer APP

Development

Enhance SW Dev

Globalsales & service
network

Toshiba Tec’s touchpoints
Platform© 2022 Toshiba Tec Corporation

20

22 MTBP Financial Target
Aim at achieving a 6.2% of ROS and a 13.5% of ROIC in FY24 by reinforcing
the earnings base through improvement of management efficiency
and effective resource allocation
FY22 Forecast

FY24 Plan(USD 120 yen、EUR 135 yen)

(USD 120 yen、EUR 135yen)

Net Sales

450.0 B yen

500.0 B yen+50.0 B yen

Operating Profit

18.0 B yen

31.0 B yen+13.0 B yen

ROS (%)

4.0％

6.2％

+2.2％

Difference(RS*1:4.3％、WS*2:3.3％)(RS*1:6.7％、WS*2:5.1％)

Current Net Profit

8.0 B yen

15.0 B yen+7.0 B yen

Cash Flows fromOperating activities
Return on invested capitals*３(ROIC )

31.0 B yen

38.0 B yen+7.0 B yen

8.6％

13.5％

+4.9％

*1 RS Retail Solutions Business *2 WS Workplace Solutions Business*3 ROIC=Operating profit after tax (Operating profit/loss x (1-tax rate)÷ invested capital (average interest-bearing debt + net assets)© 2022 Toshiba Tec Corporation

21

22 MTBP Financial Target
Aim to achieve growth by aggressive resource injection in strategic areas in addition toensuring structural transformation and recovery in external special factors
Effect of sales increasein new business domains

Changes in operating profit
Growth-oriented investment
Strengthening of earning power
Recovery in negative effect ofspecial factors, etc.
Effect of structural（Logistic・supply disruption, etc.)
transformation, etc.

Effect of structuraltransformation, etc.

＋2.1

11.6
FY21 Actual

+10.7

△6.4

+4.5

Negative effect ofspecial factors

FY21
FY22
▲17.4 ➡ ▲6.7

+19.0

Growth-oriented
investment, etc.

(Billions of yen)

△15.6

+5.1
Recovery in negative effect ofspecial factors, etc.
（Logistic・supply disruption, etc.)

31.0

18.0

FY22
Forecast

FY24© 2022
Toshiba Tec Corporation
Plan

22

The targeted financials by segment
Improve profitability of each business by accelerating business modeltransformation through promoting co-creation

Retail Solutions

Workplace Solutions

Operating Profit／ROS(%)

FY22 11.5 B yen／4.3％（Japan：6.7％ Overseas：1.3％）

FY24 21.0 B yen／6.7％

Operating Profit／ROS(%)

FY22
6.5 B yen／3.3％
FY24 10.0 B yen／5.1％（Japan：8.5.％ Overseas：4.3％）
315.0

Sales

265.0

Sales
OperatingprofitOperatingprofit

21.0

6.7%

4.3%
FY22

10.0

6.5

11.5

ROS(%)

195.0

195.0

FY24

ROS(%)

5.1%

3.3%
FY22

FY24
© 2022 Toshiba Tec Corporation

23

Changes in sales structure by business transformation
Become a solutions partner from a vendor (HW + Maintenance)

Expand sales in new business domains by implementing Toshiba Tec’sbusiness model transformation
Aim to quintuple sales
in new business
5,100
domains
4,900
CAGR: 74％
5,300

4,700

4,500

Global top customer baseTouchpoints（Sales・maintenance network）
67.0 B yen

445.3 B Yen

12.8 B yen

×

500.0 B yen

450.0 B yen

Newbusinessdomains×
Partnership strategy

25.0 B yen

4,300

4,100

3,900

4,325

4,250

4,333

3,700

Existing
businessdomains

3,500

FY21

FY22

FY24
© 2022 Toshiba Tec Corporation

New business domains：ELERA、Data services、BPO、SCM、Payment、Next generation stores、DMS (Document Management System)、Auto ID

24

Changes in sales structure by business transformation (By segment)
Expanding sales in new business domains in each business segment
Retail Solutions Business
FY24 sales in new
business domains are
expected to be 9.6 times
vs FY21
CAGR: 113％
267.0 B yen

315.0 B yen

Workplace Solutions Business
FY24 sales in new business domains
are expected to be 1.5 times vs FY21
CAGR: 14％56.8 B yen

265.0 B yen

195.0 B yen

5.9 B yen

17.7 B yen

7.3 B yen

195.0 B yen

10.2 B yen

182.1 B yen
6.9 B yen

FY21

FY22

FY24

New business domains：ELERA、Data services、BPO、SCM、Payment、Next generation stores

FY21

FY22

FY24

New business domains：DMS、Auto ID© 2022 Toshiba Tec Corporation

25

22 MTBP Priority themes to achieve the growth
Become a solutions partner from a vendor (HW+ Maintenance)
Generate new value through co-creation by strengthening initiatives on priority themes

22 MTBP Priority themes① Further evolution of co-creation eco-system② New value creation by utilization of data
③ Growth of the retail solutions business bydemonstrating global business engineering
capabilities④ Reinforcement of the earnings base ofworkplace solutions business© 2022 Toshiba Tec Corporation

26

➀ Further evolved Eco-system in Co-creation
Expand “ELERA” global development eco-system by open API
In FY21 starts “ELERA” linkage via API••

Self-checkout shopping cart：Collaboration with solution vendors for 3 major GMSs in Japan
Hospitality ordering system：Collaboration with Digital Garage, Inc./arara inc.

Strategic partners

The number of development staff
RS：approx 800/WS：approx. 400

ELERA
API
リテーラー(Self Enablement)

With partners
Deploy micro service in marketplace(In/Out house)© 2022 Toshiba Tec Corporation27

② New value creation by data utilization
Spread of data solution multiplied by POS data & Smart receipt data
Data
distribution
Toshiba DataCorp.
・Purchase data
・HR data
・Traffic data
・Electronic data
・Health data

Digital service

AD
AgencyResearch
Co.

Telecom
carrierDB

ManufacturerApp.
service© 2022 Toshiba Tec Corporation28

③ Growth of the Retail Solutions Business by making full use of
global business engineering capabilities
Accelerate platform development by taking full advantage of our global
development system and technological collaboration with Toshiba

Toshiba Group
Toshiba Global Commerce
Solutions, Inc.

Toshiba

Toshiba Tec

Strengthen development system aimed at
implementing global initiatives

Toshiba Software Engineering &Technology Center
Toshiba Software (India) Private
LimitedToshiba Software Development(Vietnam) Co.,Ltd.

Strengthen R&D collaboration with Toshiba’s
software related facilities◆ Newly established Corporate Office of the Chief Digital
Officer (CDO) and Corporate Platform Development Centerin Apr, 2022
◆ Shift strategically global development resources to platform
and software under the leadership of CDO

Toshiba Software Engineering Toshiba Software& Technology Center(India) Private(Located inside Toshiba R&D Center)

LimitedToshiba Software
Development (Vietnam)
Co.,Ltd.
© 2022 Toshiba Tec Corporation

29

Press release in FY21 (38 articles *)“Smart receipt” is a registered trademark of Toshiba Tec Corporation*Products, Smart receipt®、PoC、Investment ・Alliance, etc.

© 2022 Toshiba Tec Corporation30

Ongoing PoC to push forward with growth strategy■ Solutions linked with data utilization
Smart receipt
1

4

Value creation in collaboration
with recipe proposal application“Uchirepi"

2

ELERA data solutions Overseas

Verify the effect of sales promotion
and utilization rate by implementing
sales promotion service by Digital
Garage to smartphone POS

Provide analytical information such as
market basket, customer loyalty andcustomer segmentation by analyzing
purchasing data of customers andoffer sales promotion idea based on it

5

8

Provide optimal zoning of air-condition by collecting
employees in combination with group definition
by seat assignment based on information gained by
MFP touch panel

Manage Barcode devices integratedlyon the cloud by utilizing existing
MFP cloud (eCC）

Improve working environment and6 create a mechanism to contributeto EX/EE by collecting new data at
office via edge terminal other than MFP

Cloud device management
9

Staff・JOB matching11

Job matching where skilled person applies tojobs registered as “Requested issues to respond”
by others

Cash back to customer who
buy the relevant good withHouse prepaid card

IoT edge terminal※eCC-MC：e-BRIDGE Cloud Connect Meter Collection

Enquete on feeling temperature

10 data on the coldness or warmth feeling of3

eCC-MC for barcode Overseas

Office visualization solutions
7

Verify the effectiveness of ID-POS
panel data

Retail tech media

Visualize various information
related to workplace, such as
management situation, working
environment, etc.

House prepaid card

ID-POS panel data verification

e-BRIDGE
Cloud Service

One stop service formaintenance operation,such as management ofCounter and devices andfailure prediction

Cloud Print
12

Utilize unique cloud printing
technology© 2022 Toshiba Tec Corporation

31

Ongoing PoC to push forward with growth strategy■ Solutions to support various touchpoints
Smartphone POS

Hybrid-POS
13 POS system providing

14

semi-self or self checkout
alternatively

AI cart system
16 Identify issues of image

17

recognition cart, customer’sApps and attendant Apps

Shopping cart POS

Product registration andpayment at POS by using
customer’s smartphone

15 be registered anywhere at store

RFID Self-checkout

Ordering service

Verify the efficiency of open
type RFID Self-checkout
at apparel storesWith shopping cart, products canwhile payment can be easily
made at cashier area

18

Connect order by delivery
service with order entry
systemPerishable food recognition19

Select perishable food byself checkout with small
camera and display candidate
products on the screen byimage recognition technology

Overseas© 2022 Toshiba Tec Corporation

32

Ongoing PoC to push forward with growth strategy■ Solutions with leading-edge technology
Contactless panel （AirClick）
20

Verify effectiveness ofcontactless panel（bar type）

Serial stocktaking

Judge the type recycle
category of used batteries
by AI camera/OCR

Lantern type Communication display

24（ Hygienic panel）

25

Verify effectiveness ofcontactless panel (frame type）

26 MFP capable of writing data on

27 Reduce environmental burden

Dual page inline printer30

Automate the process ofPrint＆Apply

Grasp market need by using Panasoniccommunication display with
POS・OES (Order Entry System)

Elevate v3.0

Overseas

28 Packaging of various Appsof “Monozukuri” and develop
potential usage

Special media print
information and content on the spot
to special media, such as clear folder

at store and backyard by using RFID
with image recognition function

Contactless panel

Inkjet head

29 Provide service of printing necessary

22 by promoting inventory management

proceed serial management of
inventories at distribution warehouse

MFP-RFID
the tag while printing thepaper with RFID tag

Verify accuracy of shelf stocking operation

21 Identify issues to smoothly

AI-camera OCR
23

RFID shelf stocking

Distribution of packaged Apps
to MFP

OverseasUF-3000 RFID Reader

Overseas

31 Develop RFID tag reader

responding to its growing
demand and usage.

© 2022 Toshiba Tec Corporation

33

④ Reinforcement of the earnings base of Workplace Solutions BusinessContinue to further strengthen our response capability to market changes
FY18

FY19

FY20

FY21

ActualActualActualActualROS 2.9％

FY22

FY24
ROS 5.1％

ROS 3.3％

Initiatives to put into practice

ROS 0.5％

ROS -0.2％

ROS -3.4％

Measures to
respond tomarket change

Negative impact
by marketchangeFY21 vs FY19

Achieved 7.3 B yen of cost
reduction by structural reform
Improved business structure
by continued efforts of operational
efficiency

Sales volume decline
by COVID-19

FY22-24
Implement measures toimprove 8.2 B yen profit
G/M increaseby sales mix
improvement

Cost reduction
by optimizationof facilities andVE, etc.

Decline of printing volume due toaccelerating changes of work style① Optimization of worldwide
manufacturing facilities② Reduction in production cost byintegrating efforts ofdevelopment and manufacturing③ Strengthen earnings base incollaboration with othercompanies in the industry

Soaring part price、supply disruption、
rising transportation cost

© 2022 Toshiba Tec Corporation34

④ Reinforcement of earnings base of Workplace Solutions Business
Achieve differentiation and growth by offering one stop solutions
through e-BRIDGE Cloud Service and device cooperation of MFP and Auto-ID
MFP

Auto-ID

MFP ＋ Auto-ID ＋ Cloud Service
Document management

Output management

Workflow automation

Device management

Integrated device management
Print flyer and label from MFP and BCS respectively
under the integrated management of both devices
respectively while cooperating between them

Device management

Integration of
input and output
Scan slip

SCM solutions

Integrated solutions

BCS（Barcode system）

IoT Edge terminal

MFP-RFID

Support worker’s physical and mental condition
by using IoT sensing and AI

Write to RFID tag while printing、applicable to special paper

Add-n RFID unit

RFID

RFID tagStreamline document
authenticity and its
management
生ハム
1時間以内
配送します

Print
customized
flyer

Affordable subscription model

PoC on workplace/worker sensing

Health AI support
as application for PoC
by utilizing Toshiba’s
AI technology

e-BRIDGE Cloud Service

Print
addresslabel

Data management ・ Data services© 2022 Toshiba Tec Corporation

35

Strategic shift of management resources
Shift management resources to strategic areas to acceleratebusiness model transformation
Investment

R&D

CAPEX

70.6 B yen
Investment for
growth potential

7.9 B yen

52.1 B yen
38.0 B yen

2.1 B yen

61.0 B yen

78.0 B yen

16.7 B yen
50.0 B yen

6.0 B yen

37.0 B yen

7.7 B yen

FY19-21
Actual

FY22-24
Plan

RS：Next generation store,
Payment, SCM, Data services

WS：DMS、Auto-ID Solutions
HQ: Investment for CVC and startup
companies

FY19-21
Actual

FY22-24
Plan

FY19-21
Actual

FY22-24
Plan

RS：System for data business
Expansion of cloud function
Enhancement of smart receipt

RS：Explore R&D themes for 4
focused domains in greater detail
Accelerate ELERA development

WS：Develop the foundation of cloudservices
Enhancement of cloud solutions

WS：Cloud services、
BCS platform© 2022 Toshiba Tec Corporation36

Toshiba Tec’s initiatives for solving social issues
Toshiba Tec’s Assets

Toshiba Group’s Assets(Customer base・Service Network＋α)

POS Data

Data based platform
for enhancing
touchpoints(Variety of relationship・Technology・Know how)Toshiba Group’s
versatile relation

Receipt Data
Promotion ofcarbon neutral

Smart City

(Online merges with Offline)

Physical stores(Existing domains)

Fusion of Real & Virtual

Solve issues of retail and distribution

Integrate advertising & sales promotion

businesses By utilizing POS/Receipt databy Web and Smartphone with physical storesbased on consumer purchase data

Store operation

Efficiency/innovation

Attracting
customers/Sales
promotion/Marketing

Retail Media(Advertising within
retailers sites)

Shopping

Resolution of social issues
Solve social issues by promoting behavior

Accelerate social implementation of digitalization bymodification of consumers through utilization

utilizing data & Toshiba Group’s technology and know-how

of data and touchpoints

Gov Tech(Digitalization ofmunicipality)

Collaboration with

After
Shopping(coexistence with care)

Social implementationof digital technology

Frictionless
shopping experiences（Digital Garage, Touch to Go、Harmonia, etc.）

BeforeShopping

Health care

Smart
EnergySupport to OMO

Technology & know-how
of “Toshiba Group”

Reduction
in food loss

Smart building(Digital SC)

Support toregional
revitalization

with Partner

Nationwide
sales & service
network
Customer base ofretail and distribution

Partnership

Advanced quality
management know-how© 2022 Toshiba Tec Corporation37

Toshiba Tec’s sustainability management
The Toshiba Tec Group will contribute to solving social issues by dealing withmateriality extracted from its management principle
Become a solutions partner transforming from a vendor (HW+ Maintenance)
Sustainability
Basic policy

Extract/Set KPIs
Implement initiatives
Materiality

Sustainable growth
Enhancement ofcorporate value
Resolutions ofsocial issues
Attainment of SDGs

Materiality
Environment

Society

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

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

・Strengthen corporate governance・Increase cyber resilience© 2022 Toshiba Tec Corporation38

Toshiba Tec’s initiatives for SDGs through its Growth strategy
Contribute to a realization of sustainable society by creating unique value
which can be made possible only by the Toshiba Tec group that knows
customers better than anyone else
Social issues
Customer issues■Economic
development ofcommunity andsocial cost saving■Work-style reform
and measuresagainst labor
shortage■Integration of EC and bricksand-mortar stores■Strengthen marketing■Improve efficiency andproductivity at stores, offices,logistics and manufacturing■Variety of checkout andpayment methods■Build a social
infrastructure forbusiness ecosystem■Sustainable use ofresources andwaste management■Move to a paperless society■Diminish food waste

Solve not only customer issues
but also social issues
lying at the bottom of customer issues⚫ Create new value through co-creation⚫ Create new value through data utilization⚫ Protect privacy and personal information

Toshiba Tec’s initiatives for SDGs

© 2022 Toshiba Tec Corporation

39

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.

© 2022 Toshiba Tec Corporation40