Toshiba Tec announced its FY2015 Business Results onMay 20, 2016. However, on June 23, 2016, Toshiba Tec
corrected certain parts of those results. For the reasonsfor the corrections, please refer to“(Corrections/Corrections of Numerical Data) NoticeRegarding Partial Corrections of ‘Summary ofConsolidated Financial Results for the Year Ended March31, 2016 (Based on Japanese GAAP)’” announced onJune 23, 2016.
This document contains the corrected version of the FY
2015 Business Results announced on May 20, 2016. The
corrected parts are underlined.

© 2016 Toshiba Tec Corporation1FY2015
Consolidated Business Results

May 20, 2016

© 2016 Toshiba Tec Corporation

1.FY2015 Consolidated BusinessResults
2.FY2016 Forecast
3.Overseas Retail Business© 2016 Toshiba Tec Corporation

3

Key Points of FY2015 Business Results
 Although Net Sales increased over the previous year owing to theforeign exchange rate gain, the operating loss in the overseas retailbusiness (GCS) continued for the full year and the revaluation of sales
inventories were added, resulting in a lower income by 15.5 billion yen
against the previous year.
 An additional impairment loss for the GCS business of 18.8 billion yen
was booked in 4Q as a result of the review of GCS’s business plan.
Net Sales: 532.8 billion yen (YoY: +8.2 billion yen)
Increased by 2% over the previous year primarily due to the increase in the overseas
printing business and foreign exchange gains.
Operating Income: 1.6 billion yen (YoY: △15.5 billion yen)
The operating loss in the overseas retail business (GCS) continued and the revaluation ofsales inventories were added, resulting in a lower income by 15.5 billion yen against theprevious year.
Net Loss: △103.4 billion yen (YoY: △102.3 billion yen)
Decreased by 102.3 billion yen due to the drop in operating income and the 84.6 billion
yen impairment loss of GCS assets.
The impairment was recorded in FY2015 for the entire fixed assets and goodwill of GCS.
Dividend
The annual dividend is 0 yen as previously forecasted.
(Note) GCS: Toshiba Global Commerce Solutions© 2016 Toshiba Tec Corporation4

FY2015 Results
FY2015
Actual(Billions of Yen)

Net Sales

532.8

FY2014
ActualDifferencevs. FY2014

524.6(102%)(Growth rate)

1.617.1△15.5(0.3%)(3.3%)(△3.0%)

△2.3

10.4

△12.7(△0.4％)(2.0%)(△2.4％)

△89.1

9.7

△98.8(△16.7%)(1.9%)(△18.6％)△103.4△1.1△102.3(Rate of sales)(△19.4%)(△0.2%)(△19.2%)

US$120.77

109.16+11.61

EUR

132.74139.43△6.69

Operating Income(Rate of sales)

Ordinary Income (Loss)(Rate of sales)
Income (Loss) before income
taxes and minority interests(Rate of sales)
Loss attributable to owners ofparent

Foreign currency
exchange rate+8.2© 2016 Toshiba Tec Corporation5Operating Income Analysis of FY2015
The major factor for the decrease in operating income was the effect of the currency
exchange rate change of 3.1 billion yen, the decrease in the gross profit of 9.7 billion
yen (excluding the currency exchange rate), and the increase in the SG&A of 2.7
billion yen (excluding the currency exchange rate).

Gross Profit(Decrease of profit by 6.2)
FY14
Operating
IncomeBillions of yen

Decrease inNet Sales+3.5
Currency
Exchange

17.1

SG&A
(Decrease of profit by 9.3)

△4.8
Others△4.9

Currency
Exchange△6.6
R&D△1.5+1.1
Personnel
Expenses

Others△2.3© 2016 Toshiba Tec Corporation

FY15
OperatingIncome

1.66

FY2015 Results by Segment(Billions of yen)

RetailSolutions
BusinessGroupNet Sales
Operating Loss

Net Sales

Difference

ActualActualvs. FY2014

324.8

324.4

Operating Income(Rate of Sales)

△11.5

△0.4

△11.1

(△3.5%)(△0.1%)(△3.4％)

220.2

213.1

+7.1
(103%)

13.1

17.5△4.4(5.9%)(8.2%)(△2.3%)

532.8

524.6

+8.2

(Growth rate)

Operating Income(Rate of Sales)+0.4(100%)(Growth rate)

Net Sales
Consolidated
TotalFY2014(Growth rate)(Rate of Sales)

PrintingSolutionsBusinessGroupFY2015(102%)

1.6

17.1

△15.5

(0.3%)(3.3%)(△3.0%)(Note) The figures of FY14 are converted into new segment© 2016 Toshiba Tec Corporation7

Retail Solutions Business Group(Billions of yen)

RetailSolutions
BusinessGroupNet Sales

FY2015FY2014

Difference

ActualActualvs. FY2014

324.8

324.4

(Growth rate)

Operating Loss
(Rate of Sales)+0.4(100%)

△11.5

△0.4

△11.1

(△3.5%)(△0.1%)(△3.4%)◆ POS system for Japanese market, etc.
The wait-and-see attitude for the new roll-out plan continued at retailers andrestaurants. In spite of the sales growth in self check-out/order systems, netsales to specialty stores and shopping centers decreased from the previousyear.
◆ POS system for overseas markets, etc.
Although demand in the overseas retail market was weak, net sales increased
over the previous year due to the exchange rate gains.

© 2016 Toshiba Tec Corporation

8

Retail Solutions Business Group：vs. Forecast dated Mar.14(Billions of yen)

RetailSolutionsBusinessGroupFY2015

FY2015Difference

ActualForecast (Mar.14)

vs. Forecast

Net Sales

324.8

322.0

+2.8

Operating Loss

△11.5

△7.0△4.5(△3.5%)(△2.2%)(△1.3%)(Rate of Sales)＜Changed points of forecast for overseas retail business＞①Major reason for revision dated May 12 (△3.8 billion yen)
Write-down of software products (TCxGravity)
Cancellation from new customers ⇨ Close inspection of other customers ⇨Review of business plan
Deterioration of gross margin
Decrease in sales, delay in cost reduction, deterioration of gross margin on certain
project
OthersDelay in reduction of fixed expenses in the current overseas retail business②Major reason for revision dated May 20 (△2.7 billion yen)
Revaluation of sales inventory for H/W products
POS terminals and peripherals (printer, drawer, display etc.)③Major reason for revision dated June 23 (+2.1 billion yen)
Correction of errors relating to accounts payable-trade and accounts payable-other
Correction of errors relating to sales
Correction of errors relating to inventory valuation amounts© 2016 Toshiba Tec Corporation

9

Retail Solutions Business Group：Additional impairment on TGCS

Impairment recordedin 2Q/E
Asset write-down ¥69.6 billion($571million)
Depreciation△¥3.8 billion(Goodwill)
Impairment Amount ¥65.8 billion

Additional impairment
recorded in 4Q/E
Asset write-down $157 million

Impairment Amount ¥18.8 billion＜Detail of additional impairment＞
The sales plan of software product (TCxGravity) was revised
as a result of the review of the project.
The review of the GCS business plan was conducted taking
into account the business results of the 2nd half of FY2015
and the latest business environment.
© 2016 Toshiba Tec Corporation10Printing Solutions Business Group(Billions of yen)

PrintingSolutionsBusinessGroupNet Sales

FY2015FY2014

Difference

ActualActualvs. FY2014

220.2

213.1

(Growth rate)

Operating Income(Rate of Sales)+7.1(103%)

13.1

17.5

△4.4(5.9%)(8.2%)(△2.3%)◆ MFP for overseas market, etc.
Net sales in the Americas and Europe were flat but grew in Asian countries
owing to the acquisition of new subsidiaries in Malaysia and Thailand.
Including the currency exchange gains, sales in the Americas and Asiancountries increased but decreased in Europe. Total sales increased by 103%
over the previous year.

© 2016 Toshiba Tec Corporation11Consolidated Balance Sheets (1)Total Assets
416.8 billion yen
13%[55.0]

26%[107.1]281.6 billion yen（vs. 15/3E: △135.2 billion yen）

8%

[22.7]

6%[16.9]Cash and Cashequivalents
Intangible
assets61%86%[254.7][242.0]

15/3E

16/3E

Others◆ Cash and Cash Equivalents:
Decreased by 32.3 billion yen as aresult of the purchase of remaining
TGCH’s* share from IBM and thedecrease in operating cash flow.
*Toshiba Global Commerce
Solutions Holdings Corporation◆ Intangible Assets:
Decreased by 90.2 billion yen due
to the impairment loss of GCS’s
assets etc.

Note: Figures in parentheses represent the itemized balance (billions of yen).
© 2016 Toshiba Tec Corporation

12

Consolidated Balance Sheets (2)Liabilities and Net Assets
416.8 billion yen
281.6 billion yen（vs. 15/3E: △135.2 billion yen）

51%

Liabilities[213.7]75%[211.2]

NetAssets

49%[203.1]◆ Liabilities
Decreased by 2.5 billion yen as aresult of the decrease of notes andaccounts payable etc.
◆ Net Assets
Decreased by 132.7 billion yen due
to the decrease of retained earnings
by 105.4 billion yen associated with
the impairment loss of GCS’s asset.

25%[70.4]

15/3E

16/3E

Note: Figures in parentheses represent the itemized balance (billions of yen).
© 2016 Toshiba Tec Corporation

13

Cash Flow
Cash flow from operating activities

Billions of yen

Cash flow from investing activities
Free cash flow（underlined）

 Cash flow from operating activities:
Decreased by 18.4 billion yen due tothe drop in profit and thedeterioration of working capital.

23.0 +8.2

4.6

△5.2

△14.8

FY2014△9.8◆ Cash flow from investing activities:
Improved by 5.0 billion yen due todecrease of payment to acquireintangible assets.

FY2015© 2016 Toshiba Tec Corporation14

1.FY2015 Consolidated BusinessResults
2.FY2016 Forecast
3.Overseas Retail Business© 2016 Toshiba Tec Corporation15

Key points of FY2016 Forecast
 Net sales：

2 % decrease equivalent to a 3% increase in local
currency basis
 Operating income：12.4 billion yen increase reflecting theimprovement of GCS ‘s profitability Net income：
Expected to turn positive at 0.5 billion yen

Net Sales: 520.0 billion yen（YoY △12.8 billion yen）
Net Sales in all the segments of domestic retail, overseas retail, and printing
are expected to grow in local currency. However, net sales in yen are expected
to decrease by 29.0 billion yen due to the yen appreciation.
Operating Income: 14.0 billion yen (YoY +12.4 billion yen)
The profitability of the retail solutions business is expected to improve throughSG&A reduction and higher gross margin. For the printing solutions business,the currency exchange rate will effect negatively on profit by 3.0 billion yen.
Net Income: 0.5 billion yen (YoY +103.9 billion yen)
A net income of 0.5 billion yen is forecasted due to the structural reform cost anda mixture of different tax rates applied to the GCS subsidiaries, globally operated
in various countries, resulting in an irregularly high rate to the unprofitable
GCS operation as a whole.
© 2016 Toshiba Tec Corporation

16

Overall FY2016 Forecast(Billions of Yen)

Net Sales

FY2016FY2015Difference

Forecast

Actualvs. FY2015

520.0

532.8

(98%)

(Achievement rate/Growth rate)

Operating Income

14.0

1.6+12.4(2.7%)(0.3%)(+2.4%)

10.0△2.3+12.3(1.9%)(△0.4%)(+2.3%)

0.5△103.4+103.9(Rate of sales)(0.1%)(△19.4%)(+19.5%)

US$110.00

120.77△10.77

EUR125.00

132.74△7.74(Rate of sales)

Ordinary Income (Loss)(Rate of sales)
Income (Loss) attributable toowners of parent

Foreign currency
exchange rate

△12.8

© 2016 Toshiba Tec Corporation

17

FY2016 Forecast by Segment(Billions of yen)

RetailSolutions
BusinessGroup

PrintingSolutions
BusinessGroupNet Sales

FY2015Difference

ForecastActualvs. FY2015

322.0

324.8

△2.8(99%)(Achievement rate/Growth rate)

Operating Income (Loss)

4.0△11.5+15.5(Rate of Sales)(1.2%)(△3.5%)(+4.7%)

212.0220.2△8.2Net Sales(96%)(Achievement rate/Growth rate)

Operating Income(Rate of Sales)

Net Sales
ConsolidatedTotal

FY2016

10.0

13.1△3.1(4.7%)(5.9%)(△1.2%)

520.0

532.8

△12.8(98%)(Achievement rate/Growth rate)

Operating Income(Rate of Sales)

14.0

1.6

+12.4

(2.7%)(0.3%)(+2.4%)© 2016 Toshiba Tec Corporation

18

1.FY2015 Consolidated BusinessResults
2.FY2016 Forecasts
3.Overseas Retail Business© 2016 Toshiba Tec Corporation

19

Overseas Retail Business（１）Issues
Net Sales-Net sales slightly decreased year on year on a local currency

basis due to more severe competition in the maintenancebusiness and investment control by major retail customers.

-A slowdown in growth outlook of omni-channel solutions.

Reduction in Gross Margin-Lower gross margin due to longer closing cycle with theincreasing solutions requirements to be met.

Progress of Structural Reforms-H/C optimization will not be completed until 16/A whilecertain progresses have been observed in FY2015.
-8 of 9 offices were closed as planned .

Improvement in the accounting and operationalprocess© 2016 Toshiba Tec Corporation20Overseas Retail Business（２）Measures
Improve Contribution Margin ratio by improving
product mix-Acquire new deals by utilizing the competitive lineup, such as
self-service POS and local fit products.
-Expand solutions business.
-Enhance the menu of service maintenanceImprove Contribution Margin ratio by enhancing
cost reduction-Increase CR and service efficiency-Reduction in SCM (variable expenses) and outsourcing fees

Reduce Fixed Expense by promoting structuralreforms-Speed up the implementation of H/C optimization-Implement additional office closures-Utilize the back-office functions of the existing offices© 2016 Toshiba Tec Corporation

21

Overseas Retail Business（3）Outlook* Figures of O/I represents the total amount for Retail Solutions Business Group(Billions of yen)GCS

FY2016O/I
Forecast

FY2015
O/I
Actual

4.0
OTHER

△11.5
SG&A(Other)
SG&A(R&D)
Gross Profit

Decrease ofdepreciation &amortization
as a result ofFY2015
transactions© 2016 Toshiba Tec Corporation22

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.

© 2016 Toshiba Tec Corporation23

© 2016 Toshiba Tec Corporation24