Financial Highlights
Years ended March 31

Thousands of
U.S.dollars

Millions of yen

Consolidated

2008

2004

2005

2006

2007

2008

\355,113\376,187\443,402\510,846\492,970$4,920,351

Operating income

15,034

16,195

17,15722,671

26,075260,256

Net income

7,991

6,348

6,034

10,763

13,382

133,566

Total assets

256,311

270,056

323,476358,253

313,900

3,133,047--

148,423

158,813161,169

1,608,634

116,218

119,779

128,066---

Net sales

Total net assets *Total shareholders' equity

Yen

U.S.dollars

Per share data:
Net income Basic\28.16\22.44\21.40\38.72\48.20$0.481

Total shareholders' equity

414.18428.88458.80494.73504.005.030

Thousands of
U.S.dollars

Millions of yen

Non-Consolidated
Net sales

2004

2005

2006

2007

2008

2008

\245,288\257,510\253,931\297,996\266,537$2,660,315

Operating income

6,851

5,691

3,720

4,299

5,008

49,985

Net income

3,528

4,055

6,966

6,266

7,777

77,623

Common stock

39,971

39,971

39,971

39,971

39,971

398,952

Total assets

187,526

198,634

197,815

237,996

204,069

2,036,820--

110,494

113,039

117,124

1,169,019

103,844

105,248

110,494---

Total net assets *Total shareholders' equity

Yen

U.S.dollars

Per share data:
Net income Basic
Cash dividends
Total shareholders' equity\12.41\14.33\24.84\22.54\28.01$0.280

6.00

8.00

9.00

11.00

12.00

0.120

370.14376.91395.91

407.11421.994.212

The dollar amounts in this report represent translations of yen, for convenience only, at the rate of\100.19=US$1.00, the exchange rate prevailing on March 31, 2008.
* Sections "Total net assets" are newly provided to conform to Japanese accounting regulation revisions.
The fiscal 2006 figures have also been restated to reflect this change. The former figures in 2007 are\137,363 millions (consolidated) and \113,036 millions (non-consolidated), respectively.

contents
Financial Highlights
1
Consolidated Balance Sheets ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 4
Consolidated Statements of Operations ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 6
Consolidated Statements of Changes in Net Assets ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 7
Consolidated Statements of Cash Flows ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 8
Notes to Consolidated Financial Statements ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 9
・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・1

Business Overview in the Consolidated Fiscal Year 2007

Issues to be Addressed

The Japanese economy in the consolidated fiscal year 2007 slowed down, due to the increasing cost of crude oil andraw materials, with sluggish growth of personal consumption and capital expenditure, although exportation continued
gradual growth.

The future of the Japanese economy is expected to go back and forth with concern of recession, due to increasing
cost of resources and the economic slowdown of the U.S with sluggish growth of personal consumption and exportation.

As for business conditions outside Japan, the US economy declined rapidly because of sub-prime loan concerns andrising prices of resources. The economy in Europe maintained its stability and the Asian economy continued growing.
Under these economic circumstances, the Toshiba TEC Group was committed to achieving its Group Midterm Business Plan of “Realize sustained growth with profit” . Specifically, sales channels of main products
were expanded by promoting solutions, manufacturing technologies were developed by improving cost, quality anddelivery competitiveness, and its management culture was improved by the business process reform in development,
procurement, production and sales activities.
On June 1, 2007, the Home Electric Appliances business was transferred to TOSHIBA HA PRODUCTS Co., Ltd.
In addition, on December 28, 2007, bar-code business was transferred from TOHOKU RICOH Co., Ltd. and strong
operating bases were built by focusing management resources on Retail Information Systems Business and Document
Systems and Telecommunications Business.
Sales amounted to 492,970 million yen, a 3% decrease over the previous consolidated fiscal year. MFP sales haveincreased but it is mainly due to the business transfer of the Home Electric Appliances business. An increase inrevenue through focusing on high value-added products resulted in an increase in operating income of 15% over theprevious consolidated fiscal year to 26,075 million yen, and an increase in net income of 24% to 13,382 million yen.
In terms of dividends from the surplus, the Toshiba TEC Group aims to continuously increase dividends by targeting a
consolidated dividend payout ratio of approximately 30%, while considering strategic investments for the mid- and longterm growth.
Based on the above business policies, dividends from the surplus in the business fiscal year 2007 were determined asfollows:
The interim dividend was 5.5 yen per share, the year-end dividend was 6.5 yen per share, and the annual dividend wasincreased to 12 yen per share with an increase of 1 yen over the previous business fiscal year.

As for business conditions outside Japan, the US economy and the economy in Europe will decline because of subprime loan problems and rising prices of resources. The Asian economy is expected to continue growing.
Under these economic circumstances, the Toshiba TEC Group is committed to achieving its business policy of“Realize sustained growth with profit” . We will make concerted efforts together to reinforce our management base,by developing and releasing new products, strengthening manufacturing technologies, improving sales quality and sales
efficiency, expanding key business areas, making inroads into peripheral areas and prospective markets, along withincreasing resource efficiency.
Additionally, aiming at more flexible business system that can respond to changes of business circumstances, effective
for April 1, 2008, we will make efforts to develop our business under the new business operation system; Retail Solution
Business Group, Document Systems Business Group and Auto ID & Printer Business Group, etc.
In the fiscal year 2008, we will embrace every endeavor to implement measures including the following and thus
develop our group's business.
Main measures of each business group as of Financial Year 2008 are as follows.

Retail Solution Business GroupThe Retail Solution Business Group includes the development, production, and sales and maintenances services for
products such as POS systems, Cash register, Scales and other OA equipment. We will concentrate our efforts onfurther improving our sales capabilities in Japan to expand sales of our retail solution equipment and systems, whilefurther expanding the scale of our operations via improvements on agency networking outside Japan.

Document Systems Business GroupThe Document Systems Business Group includes the development, production, sales and maintenances services for
products such as MFPs, Facsimiles, Inkjet heads, etc. We are committed to expanding our sales and improving ourearning power, by development, release and expanding sales of strategic products such as full-color MFPs, focusing
more on emerging markets such as Brazil, Russia, India and China, while enhancing cost competitiveness by shifting to
self-manufacturing main parts.

Auto ID & Printer Business GroupThe Auto ID & Printer Business Group includes the development, production, sales and maintenances services for
products such as Bar-code systems, RFID systems*, Printers, Specialized terminals, etc. We will strive to expand oursales and strengthen our business base under the new system for expanding our lines by intensifying the domestic andinternational sales network, cultivating new markets and customers and releasing new products, etc.
*RFID (Radio Frequency Identification) is an automatic identification method that can retrieve data with ID tags

attached to products.

2

3

Business Overview in the Consolidated Fiscal Year 2007

Issues to be Addressed

The Japanese economy in the consolidated fiscal year 2007 slowed down, due to the increasing cost of crude oil andraw materials, with sluggish growth of personal consumption and capital expenditure, although exportation continued
gradual growth.

The future of the Japanese economy is expected to go back and forth with concern of recession, due to increasing
cost of resources and the economic slowdown of the U.S with sluggish growth of personal consumption and exportation.

As for business conditions outside Japan, the US economy declined rapidly because of sub-prime loan concerns andrising prices of resources. The economy in Europe maintained its stability and the Asian economy continued growing.
Under these economic circumstances, the Toshiba TEC Group was committed to achieving its Group Midterm Business Plan of “Realize sustained growth with profit” . Specifically, sales channels of main products
were expanded by promoting solutions, manufacturing technologies were developed by improving cost, quality anddelivery competitiveness, and its management culture was improved by the business process reform in development,
procurement, production and sales activities.
On June 1, 2007, the Home Electric Appliances business was transferred to TOSHIBA HA PRODUCTS Co., Ltd.
In addition, on December 28, 2007, bar-code business was transferred from TOHOKU RICOH Co., Ltd. and strong
operating bases were built by focusing management resources on Retail Information Systems Business and Document
Systems and Telecommunications Business.
Sales amounted to 492,970 million yen, a 3% decrease over the previous consolidated fiscal year. MFP sales haveincreased but it is mainly due to the business transfer of the Home Electric Appliances business. An increase inrevenue through focusing on high value-added products resulted in an increase in operating income of 15% over theprevious consolidated fiscal year to 26,075 million yen, and an increase in net income of 24% to 13,382 million yen.
In terms of dividends from the surplus, the Toshiba TEC Group aims to continuously increase dividends by targeting a
consolidated dividend payout ratio of approximately 30%, while considering strategic investments for the mid- and longterm growth.
Based on the above business policies, dividends from the surplus in the business fiscal year 2007 were determined asfollows:
The interim dividend was 5.5 yen per share, the year-end dividend was 6.5 yen per share, and the annual dividend wasincreased to 12 yen per share with an increase of 1 yen over the previous business fiscal year.

As for business conditions outside Japan, the US economy and the economy in Europe will decline because of subprime loan problems and rising prices of resources. The Asian economy is expected to continue growing.
Under these economic circumstances, the Toshiba TEC Group is committed to achieving its business policy of“Realize sustained growth with profit” . We will make concerted efforts together to reinforce our management base,by developing and releasing new products, strengthening manufacturing technologies, improving sales quality and sales
efficiency, expanding key business areas, making inroads into peripheral areas and prospective markets, along withincreasing resource efficiency.
Additionally, aiming at more flexible business system that can respond to changes of business circumstances, effective
for April 1, 2008, we will make efforts to develop our business under the new business operation system; Retail Solution
Business Group, Document Systems Business Group and Auto ID & Printer Business Group, etc.
In the fiscal year 2008, we will embrace every endeavor to implement measures including the following and thus
develop our group's business.
Main measures of each business group as of Financial Year 2008 are as follows.

Retail Solution Business GroupThe Retail Solution Business Group includes the development, production, and sales and maintenances services for
products such as POS systems, Cash register, Scales and other OA equipment. We will concentrate our efforts onfurther improving our sales capabilities in Japan to expand sales of our retail solution equipment and systems, whilefurther expanding the scale of our operations via improvements on agency networking outside Japan.

Document Systems Business GroupThe Document Systems Business Group includes the development, production, sales and maintenances services for
products such as MFPs, Facsimiles, Inkjet heads, etc. We are committed to expanding our sales and improving ourearning power, by development, release and expanding sales of strategic products such as full-color MFPs, focusing
more on emerging markets such as Brazil, Russia, India and China, while enhancing cost competitiveness by shifting to
self-manufacturing main parts.

Auto ID & Printer Business GroupThe Auto ID & Printer Business Group includes the development, production, sales and maintenances services for
products such as Bar-code systems, RFID systems*, Printers, Specialized terminals, etc. We will strive to expand oursales and strengthen our business base under the new system for expanding our lines by intensifying the domestic andinternational sales network, cultivating new markets and customers and releasing new products, etc.
*RFID (Radio Frequency Identification) is an automatic identification method that can retrieve data with ID tags

attached to products.

23

Consolidated Balance Sheets
March 31 , 2008 and 2007

Thousands of
U.S.dollars (Note 1)

Millions of yen

ASSETS

2008

2007

LIABILITIES AND NET ASSETS

2008

Current assets

Thousands of
U.S.dollars (Note 1)

Millions of yen

2008

2007

2008

Current liabilities

Cash and cash equivalents\63,958\79,736$638,367

Trade notes and accounts payable\46,364\72,330$462,761

Trade notes and accounts receivable

76,99587,847

768,490

Short-term loans (Note 3)

13,853

18,468138,267

Inventories

40,32850,746

402,515

Current portion of long-term debt (Note 3)

Deferred income taxes (Note 9)

10,537

10,868105,170

Accrued income and other taxes

Prepaid expenses and other current assets

10,511

10,962

104,911

Accrued bonuses to directors and corporate auditors
Other current liabilities

Allowance for doubtful accounts(3,239)(3,512)(32,329)

Total current assets

199,090236,647

1,987,124Fixed assets

Total current liabilities

618

6,198

8,534

35,173

92

81

918

58,64566,975585,339

123,099

167,006

1,228,656

Long-term liabilities

Property, plant and equipment:

Long-term debt (Note 3)

Land

2,874

2,777

28,685

Buildings and structures

28,98529,270289,300

Allowance for retirement benefits for directors and corporate auditors

Machinery and equipment

31,912

34,035318,515

Other long-term liabilities

Tools, furniture and fixtures

55,80563,691556,992

Construction in progress

3,856

1,147

38,487(89,730)(96,308)(895,598)

33,702

34,612

336,381Less accumulated depreciation

621
3,524

Accrued retirement benefits (Note 4)

28

674

280

27,51527,372

274,628

349

298

3,483

1,740

4,090

17,367

Total long-term liabilities

29,63232,434

295,758

Total liabilities

152,731

199,440

1,524,414

39,971

39,971

398,952

Capital surplus

52,98952,987

528,885

51,11342,452

510,161(4,141 )-(41,331)

Contingent liabilities (Note 5)
Intangible assets:
Goodwill
Other intangible assets

41,223

39,100411,448

Shareholders' equity
Common stock

6,881

7,578

68,68048,104

46,678480,128

Authorized-1,000,000,000 shares
Issued- 288,145,704 shares

Investments and other assets:
Investment securities: (Note 11)
Unconsolidated subsidiaries and affiliates
Other

222

7,801

2,216

3,966

4,762

39,585Retained earnings

Deferred income taxes (Note 9)

21,485

20,406

214,442

Less treasury stock, at cost:

Other investments and other assets

7,471

7,469

74,568

10,598,347 shares in 2008

Allowance for doubtful accounts

(140)

(122)

(1,397)

10,489,478 shares in 2007

33,00440,316

329,414

Total shareholders' equity-(4,062 )-139,932

131,348

1,396,667

Total fixed assets

114,810

121,606

1,145,923

Total assets\313,900\358,253$3,133,047

613

1,058

6,118

-

3

-

(659 )

4,957(6,578)

(46 )

6,018

(460)

21,283

21,447

212,426

Total net assets

161,169

158,813

1,608,633

Total liabilities and net assets\313,900\358,253$3,133,047

Valuation and translation adjustment
Unrealized holding gains on securities
Net deferred profits on hedges
Foreign currency translation adjustments

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

Total valuation and translation adjustments
Minority interest in consolidated subsidiaries

45

Consolidated Balance Sheets
March 31 , 2008 and 2007

Thousands of
U.S.dollars (Note 1)

Millions of yen

ASSETS

2008

2007

LIABILITIES AND NET ASSETS

2008

Current assets

Thousands of
U.S.dollars (Note 1)

Millions of yen

2008

2007

2008

Current liabilities

Cash and cash equivalents\63,958\79,736$638,367

Trade notes and accounts payable\46,364\72,330$462,761

Trade notes and accounts receivable

76,99587,847

768,490

Short-term loans (Note 3)

13,853

18,468138,267

Inventories

40,32850,746

402,515

Current portion of long-term debt (Note 3)

Deferred income taxes (Note 9)

10,537

10,868105,170

Accrued income and other taxes

Prepaid expenses and other current assets

10,511

10,962

104,911

Accrued bonuses to directors and corporate auditors
Other current liabilities

Allowance for doubtful accounts(3,239)(3,512)(32,329)

Total current assets

199,090236,647

1,987,124Fixed assets

Total current liabilities

618

6,198

8,534

35,173

92

81

918

58,64566,975585,339

123,099

167,006

1,228,656

Long-term liabilities

Property, plant and equipment:

Long-term debt (Note 3)

Land

2,874

2,777

28,685

Buildings and structures

28,98529,270289,300

Allowance for retirement benefits for directors and corporate auditors

Machinery and equipment

31,912

34,035318,515

Other long-term liabilities

Tools, furniture and fixtures

55,80563,691556,992

Construction in progress

3,856

1,147

38,487(89,730)(96,308)(895,598)

33,702

34,612

336,381Less accumulated depreciation

621
3,524

Accrued retirement benefits (Note 4)

28

674

280

27,51527,372

274,628

349

298

3,483

1,740

4,090

17,367

Total long-term liabilities

29,63232,434

295,758

Total liabilities

152,731

199,440

1,524,414

39,971

39,971

398,952

Capital surplus

52,98952,987

528,885

51,11342,452

510,161(4,141 )-(41,331)

Contingent liabilities (Note 5)
Intangible assets:
Goodwill
Other intangible assets

41,223

39,100411,448

Shareholders' equity
Common stock

6,881

7,578

68,68048,104

46,678480,128

Authorized-1,000,000,000 shares
Issued- 288,145,704 shares

Investments and other assets:
Investment securities: (Note 11)
Unconsolidated subsidiaries and affiliates
Other

222

7,801

2,216

3,966

4,762

39,585Retained earnings

Deferred income taxes (Note 9)

21,485

20,406

214,442

Less treasury stock, at cost:

Other investments and other assets

7,471

7,469

74,568

10,598,347 shares in 2008

Allowance for doubtful accounts

(140)

(122)

(1,397)

10,489,478 shares in 2007

33,00440,316

329,414

Total shareholders' equity-(4,062 )-139,932

131,348

1,396,667

Total fixed assets

114,810

121,606

1,145,923

Total assets\313,900\358,253$3,133,047

613

1,058

6,118

-

3

-

(659 )

4,957(6,578)

(46 )

6,018

(460)

21,283

21,447

212,426

Total net assets

161,169

158,813

1,608,633

Total liabilities and net assets\313,900\358,253$3,133,047

Valuation and translation adjustment
Unrealized holding gains on securities
Net deferred profits on hedges
Foreign currency translation adjustments

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

Total valuation and translation adjustments
Minority interest in consolidated subsidiaries

45

Consolidated Statements of Operations

Consolidated Statements of Changes in Net Assets

Years ended March 31 , 2008 and 2007

Years ended March 31 , 2008 and 2007

Millions of yen

Millions of yen

2008

Shareholders' equity

Thousands of
U.S.dollars (Note 1)

2007

Common stock

2008

Balance at March 31, 2006
Net income for the year
Cash dividends (Note 17)

Net sales\492,970\510,846$4,920,351

Cost of sales (Note 8)

262,632

292,2022,621,339

Gross profit

Bonuses to directors and corporate auditors
Purchases of treasury stock

230,338

218,6442,299,012

204,263

195,973

2,038,756

Retirement of treasury stock
Other, net

26,07522,671

260,256

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

Balance at March 31, 2007

Total
shareholders' equity

Treasury stock, at cost

\39,971\52,986\34,540\(3,318)\124,179

-

-

-

-

-

10,763(2,784)(58)\39,9711\52,987-(746)

10,763(2,784)
(58)
(746)

(9)
\42,4522\(4,062)3(9)\131,348
Millions of yen

Net unrealized holding gain on
Foreign currency translation Total valuation and translation
Net deferred profits on hedges
securities
adjustments
adjustments

Interest and dividend income

1,514

1,178

15,111Equity in earnings of affiliates
Gain on sales of land and training facility

-

335

-

-

3,008

-

Gain on business transfer of Home Electric Appliances business (Note 14)

225

-

2,246

Interest expense(824 )(909 )(8,224 )-(2,933 )-(947 )-(9,452 )-(563 )-

Other, net (Note 7)(3,802 )(3,708 )(37,948 )Income before income taxes and minority interest

22,241

19,079221,988

Current

7,339

8,554

73,251

Deferred(226 )(1,808 )(2,256 )15,12812,333150,993

1,746

1,570

17,427\13,382\10,763$133,566

Expenses of extra pension for early retirement
Restructuring cost
Loss on sales of land and recreation facility

Income taxes (Note 9):

Income before minority interest
Minority interest in income of consolidated subsidiaries

Yen

Per share data

Retained earnings

Valuation and Translation adjustments

Non-operating income and expenses:

Net income

Capital surplus

2008\2,669-\3,887-\20,357-\148,423
10,763(2,784)
(58)

-

-

-

-

-

(746)
3

Balance at March 31, 2007

(160)
\1,0583\3

2,288\4,9572,131\6,0181,090\21,447

3,212\158,813

Millions of yen

Shareholders' equity
Common stock\48.20\38.72$0.481

Cash dividends\12.00\11.00$0.120Capital surplus

Retained earnings

Total
shareholders' equity

Treasury stock, at cost

Balance at March 31, 2007
Net income for the year

\39,971-\52,987-\42,452
13,382\(4,062)-\131,348
13,382

Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock-2(3,193)-(81)
2(3,193)(81)
4\39,971\52,989(1,528)\51,113\(4,141)(1,528)\139,932

Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

Millions of yen

Valuation and Translation adjustments
Net unrealized holding gain on
Foreign currency translation Total valuation and translation
Net deferred profits on hedges
securities
adjustments
adjustments

Minority interests

Total net assets

Balance at March 31, 2007
Net income for the year

\1,058-3-\4,957-\6,018-\21,447-\158,813
13,382

Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock

-

-

-

-

-

(3,193)
(81)
4

(445)
\613

(3)
-

(5,616)\(659)(6,064 )\(46)(164 )\21,283(1,528)(6,228)\161,169

Balance at March 31, 2008

2008

Net income-Basic

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

-

Purchases of treasury stock
Retirement of treasury stock
Other, net

Total net assets\1,218-Changes by revision of consolidation scope
Other, net

U.S.dollars

2007

Balance at March 31, 2006
Net income for the year
Cash dividends (Note 17)
Bonuses to directors and corporate auditors

Minority interests

Thousands of U.S. dollars

Shareholders' equity
Common stock

Capital surplus

Retained earnings

Total
shareholders' equity

Treasury stock, at cost

Balance at March 31, 2007
Net income for the year

$398,952-$528,865-$423,715
133,566$(40,543 )-$1,310,989
133,566

Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock

-

20

(808)
20

$398,952$528,885(31,869)(15,251)(31,869)(808)
40(15,251)

Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

$510,161$(41,331)$1,396,667
Thousands of U.S. dollars

Valuation and Translation adjustments
Net unrealized holding gain on
Foreign currency translation Total valuation and translation
Net deferred profits on hedges
securities
adjustments
adjustments

Balance at March 31, 2007
Net income for the year
Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock
Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

Minority interests

Total net assets$10,560-30-$49,476-$60,066-$214,063-$1,585,118
133,566

-

-

-

-

-

(31,869)(808)
40(15,251)(4,442)$6,118(30 )-(56,054)$(6,578)(60,526)$(460)(1,637 )$212,426(62,163)$1,608,633

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
Numbers of shares in issue: 288,145,704 shares in 2008

6

7

Consolidated Statements of Operations

Consolidated Statements of Changes in Net Assets

Years ended March 31 , 2008 and 2007

Years ended March 31 , 2008 and 2007

Millions of yen

Millions of yen

2008

Shareholders' equity

Thousands of
U.S.dollars (Note 1)

2007

Common stock

2008

Balance at March 31, 2006
Net income for the year
Cash dividends (Note 17)

Net sales\492,970\510,846$4,920,351

Cost of sales (Note 8)

262,632

292,2022,621,339

Gross profit

Bonuses to directors and corporate auditors
Purchases of treasury stock

230,338

218,6442,299,012

204,263

195,973

2,038,756

Retirement of treasury stock
Other, net

26,07522,671

260,256

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

Balance at March 31, 2007

Total
shareholders' equity

Treasury stock, at cost

\39,971\52,986\34,540\(3,318)\124,179

-

-

-

-

-

10,763(2,784)(58)\39,9711\52,987-(746)

10,763(2,784)
(58)
(746)

(9)
\42,4522\(4,062)3(9)\131,348
Millions of yen

Net unrealized holding gain on
Foreign currency translation Total valuation and translation
Net deferred profits on hedges
securities
adjustments
adjustments

Interest and dividend income

1,514

1,178

15,111Equity in earnings of affiliates
Gain on sales of land and training facility

-

335

-

-

3,008

-

Gain on business transfer of Home Electric Appliances business (Note 14)

225

-

2,246

Interest expense(824 )(909 )(8,224 )-(2,933 )-(947 )-(9,452 )-(563 )-

Other, net (Note 7)(3,802 )(3,708 )(37,948 )Income before income taxes and minority interest

22,241

19,079221,988

Current

7,339

8,554

73,251

Deferred(226 )(1,808 )(2,256 )15,12812,333150,993

1,746

1,570

17,427\13,382\10,763$133,566

Expenses of extra pension for early retirement
Restructuring cost
Loss on sales of land and recreation facility

Income taxes (Note 9):

Income before minority interest
Minority interest in income of consolidated subsidiaries

Yen

Per share data

Retained earnings

Valuation and Translation adjustments

Non-operating income and expenses:

Net income

Capital surplus

2008\2,669-\3,887-\20,357-\148,423
10,763(2,784)
(58)

-

-

-

-

-

(746)
3

Balance at March 31, 2007

(160)
\1,0583\3

2,288\4,9572,131\6,0181,090\21,447

3,212\158,813

Millions of yen

Shareholders' equity
Common stock\48.20\38.72$0.481

Cash dividends\12.00\11.00$0.120Capital surplus

Retained earnings

Total
shareholders' equity

Treasury stock, at cost

Balance at March 31, 2007
Net income for the year

\39,971-\52,987-\42,452
13,382\(4,062)-\131,348
13,382

Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock-2(3,193)-(81)
2(3,193)(81)
4\39,971\52,989(1,528)\51,113\(4,141)(1,528)\139,932

Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

Millions of yen

Valuation and Translation adjustments
Net unrealized holding gain on
Foreign currency translation Total valuation and translation
Net deferred profits on hedges
securities
adjustments
adjustments

Minority interests

Total net assets

Balance at March 31, 2007
Net income for the year

\1,058-3-\4,957-\6,018-\21,447-\158,813
13,382

Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock

-

-

-

-

-

(3,193)
(81)
4

(445)
\613

(3)
-

(5,616)\(659)(6,064 )\(46)(164 )\21,283(1,528)(6,228)\161,169

Balance at March 31, 2008

2008

Net income-Basic

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

-

Purchases of treasury stock
Retirement of treasury stock
Other, net

Total net assets\1,218-Changes by revision of consolidation scope
Other, net

U.S.dollars

2007

Balance at March 31, 2006
Net income for the year
Cash dividends (Note 17)
Bonuses to directors and corporate auditors

Minority interests

Thousands of U.S. dollars

Shareholders' equity
Common stock

Capital surplus

Retained earnings

Total
shareholders' equity

Treasury stock, at cost

Balance at March 31, 2007
Net income for the year

$398,952-$528,865-$423,715
133,566$(40,543 )-$1,310,989
133,566

Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock

-

20

(808)
20

$398,952$528,885(31,869)(15,251)(31,869)(808)
40(15,251)

Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

$510,161$(41,331)$1,396,667
Thousands of U.S. dollars

Valuation and Translation adjustments
Net unrealized holding gain on
Foreign currency translation Total valuation and translation
Net deferred profits on hedges
securities
adjustments
adjustments

Balance at March 31, 2007
Net income for the year
Cash dividends (Note 17)
Purchases of treasury stock
Retirement of treasury stock
Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

Minority interests

Total net assets$10,560-30-$49,476-$60,066-$214,063-$1,585,118
133,566

-

-

-

-

-

(31,869)(808)
40(15,251)(4,442)$6,118(30 )-(56,054)$(6,578)(60,526)$(460)(1,637 )$212,426(62,163)$1,608,633

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
Numbers of shares in issue: 288,145,704 shares in 2008

6

7

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Years ended March 31 , 2008 and 2007

2008

1. Basis of Presenting Consolidated
Financial Statements

Thousands of
U.S.dollars (Note 1)

Millions of yen

2007

2008

Cash flows from operating activities
Income before income taxes and minority interest\22,241\19,079$221,988

Depreciation and amortization

13,821

14,265

137,948

Allowance for doubtful accounts(252 )

585(2,515 )Accrual for retirement benefits, less payments(185 )

64(1,846 )(1,514 )(1,178 )(15,111 )Adjustment to reconcile income before income taxes andminority interest to net cash provided by operating activities:

Interest and dividend income
Interest expense

824

909

8,224

Equity in earnings of affiliates-(335 )-

Gain on sales of land and training facility-(3,008 )-Loss on sales or disposal of fixed assets

327

593

3,264

Loss on sales of land and recreation facility

-

563

-

Gain on sales of investment securities-(405 )-

Loss on sales of investment securities

7

-

70

Write down of investment securities

141

108

1,407

Gain on business transfer of Home Electric Appliances business (Note 14)(225 )-(2,246 )Restructuring cost

947

-

9,452

-

2,933

-

12,192(14,857 )

121,689

Expenses of extra pension for early retirement
Changes in assets and liabilities:
Notes and accounts receivable

8,799(2,036 )87,823

Notes and accounts payable(25,802 )15,904(257,531 )Other(9,211 )12,685(91,935 )Sub Total

Inventories

22,11045,869220,681Interest and dividend income received

1,523

1,194

15,201

Interest expense payments(832 )(895 )(8,304 )Payments of extra pension for early retirement(1,486 )(463 )(14,832 )Income taxes payments(12,301 )(5,192 )(122,777 )Income taxes refund

-

723

-

9,014

41,23689,969(10,800 )(7,960 )(107,795 )

413

5,949

4,122

(4,501 )(6,636 )(44,925 )Acquisition of investment securities(204 )(854 )(2,036 )Acquisition of investments in newly consolidated subsidiaries (Note 15)(533 )-(5,320 )Proceeds from sales of investment securities

19

563

190

Payments of loan receivable

(38 )

(45 )

(379 )

63

65

629

1,886

-

18,824

Net cash provided by operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
Proceeds from sales of property, plant and equipment
Acquisition of intangible assets

Proceeds from loan receivable
Proceeds from business transfer of Home Electric Appliances business (Note 14)177(440 )

1,766(13,518 )(9,358 )(134,924 )OtherNet cash used in investing activities
Cash flows from financing activities(4,262 )(14,947 )(42,539 )Repayments of long-term debt

(685 )(1,523 )(6,837 )Purchase of treasury stock(82 )(746 )(818 )(3,193 )(2,784 )(31,870 )(595 )(719 )(5,939 )4

3

40(8,813 )(20,716 )(87,963 )Proceeds (Repayments) of short-term loans, net

Payments of dividend
Payments of dividend to minority shareholders of subsidiaries
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents(3,410 )799(34,035 )Net increase in cash and cash equivalents(16,727 )11,961(166,953 )Cash and cash equivalents at beginning of year

79,736

67,775795,848

Increase in cash and cash equivalents resulting from:
Subsidiaries inclusion in consolidation
Cash and cash equivalents at end of year

949

-

9,472

\63,958\79,736$638,367

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

8

The consolidated financial statements of TOSHIBA TECCORPORATION (the ” Company” ) have been prepared inaccordance with accounting principles generally acceptedin Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial
Reporting Standards, 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\100.19 = US$1.00 prevailing as of March 31, 2008. 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 accountsof the Company and its significant majority-owned subsidiaries(together the “Companies” ). For the years ended March
31, 2008 and 2007, the accounts of 87 and 68 subsidiaries
are consolidated, respectively. All significant inter-company
transactions and accounts are eliminated in consolidation.
All assets and liabilities of the subsidiaries are revaluated on
acquisitions, if applicable. The difference between the cost ofinvestments in subsidiaries and the equity in their assets andliabilities at the dates of acquisition is recognized on goodwill
in the consolidated balance sheet and principally amortized by
the straight-line method over 5 to 15 years, except for thoserecorded in U.S. subsidiaries.
The equity method of accounting is adopted for investments
in major unconsolidated subsidiaries and affiliated companies.
For the year ended March 31, 2007, the major unconsolidated
subsidiary for which the equity method of accounting has been
adopted was as follows:
TOSHIBA TEC NETHERLANDS RETAIL INFORMATION SYSTEMS B.V.
For the year ended March 31, 2008, TOSHIBA TEC
NETHERLANDS RETAIL INFORMATION SYSTEMS B.V.
was consolidated and exempted from the application of theequity method of accounting. Accordingly, the Company has
no unconsolidated subsidiary for which the equity method of
accounting has been applied as of March 31, 2008.
From the perspective of immateriality, the investments in theremaining unconsolidated subsidiaries and affiliated companies arestated at cost.
Certain subsidiaries have year end which differs from that of
the Company. As a result, adjustments have been made for any
significant transactions 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 subsidiaries aretranslated into yen using the annual average rate during theyear. The balance sheet accounts, except for the components
of net assets, are translated at the rate in effect at the balance
sheet date. The components of net assets are translated attheir historical rates. Translation adjustments are presented as acomponent of “Valuation and Translation adjustments” under Net
Assets in the consolidated balance sheets.
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 operations.
（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” arereported at fair value with unrealized holding gains or losses, netof taxes, presented as a component of “Valuation and Translation
adjustments” under Net Assets in the consolidated balance
sheets. Cost of securities sold is determined by the moving
average method.
Non-marketable securities classified as “Other securities”
are carried 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
first-in, first-out method, or market, or at the cost determinedby the specific cost method. Work-in-process is principallystated at the lower of cost, determined by the moving averagemethod, or market, or at the cost determined by the specific cost
method. Raw materials are principally stated at the lower of cost,
determined by the moving average method, or market.
（F）Property, Plant and Equipment and Depreciation
Property, plant and equipment are carried at cost. Material
improvements are capitalized, but repair and maintenanceincluding minor improvements are charged to income.
Depreciation of property, plant and equipment is generally
computed by the declining-balance method for the Company andits domestic subsidiaries, and by the straight-line method forthe overseas subsidiaries, at the rates based on the estimateduseful lives of the respective assets. The useful lives of principal
property, plant and equipment are summarized as follows:
Buildings and structures
15 to 38 years
Machinery and equipment
5 to 11 years
Tools, furniture and fixtures 1 to 6 years
Effective for the year ended March 31, 2008, under a revision of
the Corporation Tax Law, the Company and domestic subsidiaries
changed the depreciation method into that based on the revised
Corporation Tax Law, as for fixed assets acquired after April
1, 2007. As a result, operating income and income before
income taxes and minority interest were \214 million (US$2,136

9

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Years ended March 31 , 2008 and 2007

2008

1. Basis of Presenting Consolidated
Financial Statements

Thousands of
U.S.dollars (Note 1)

Millions of yen

2007

2008

Cash flows from operating activities
Income before income taxes and minority interest\22,241\19,079$221,988

Depreciation and amortization

13,821

14,265

137,948

Allowance for doubtful accounts(252 )

585(2,515 )Accrual for retirement benefits, less payments(185 )

64(1,846 )(1,514 )(1,178 )(15,111 )Adjustment to reconcile income before income taxes andminority interest to net cash provided by operating activities:

Interest and dividend income
Interest expense

824

909

8,224

Equity in earnings of affiliates-(335 )-

Gain on sales of land and training facility-(3,008 )-Loss on sales or disposal of fixed assets

327

593

3,264

Loss on sales of land and recreation facility

-

563

-

Gain on sales of investment securities-(405 )-

Loss on sales of investment securities

7

-

70

Write down of investment securities

141

108

1,407

Gain on business transfer of Home Electric Appliances business (Note 14)(225 )-(2,246 )Restructuring cost

947

-

9,452

-

2,933

-

12,192(14,857 )

121,689

Expenses of extra pension for early retirement
Changes in assets and liabilities:
Notes and accounts receivable

8,799(2,036 )87,823

Notes and accounts payable(25,802 )15,904(257,531 )Other(9,211 )12,685(91,935 )Sub Total

Inventories

22,11045,869220,681Interest and dividend income received

1,523

1,194

15,201

Interest expense payments(832 )(895 )(8,304 )Payments of extra pension for early retirement(1,486 )(463 )(14,832 )Income taxes payments(12,301 )(5,192 )(122,777 )Income taxes refund

-

723

-

9,014

41,23689,969(10,800 )(7,960 )(107,795 )

413

5,949

4,122

(4,501 )(6,636 )(44,925 )Acquisition of investment securities(204 )(854 )(2,036 )Acquisition of investments in newly consolidated subsidiaries (Note 15)(533 )-(5,320 )Proceeds from sales of investment securities

19

563

190

Payments of loan receivable

(38 )

(45 )

(379 )

63

65

629

1,886

-

18,824

Net cash provided by operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
Proceeds from sales of property, plant and equipment
Acquisition of intangible assets

Proceeds from loan receivable
Proceeds from business transfer of Home Electric Appliances business (Note 14)177(440 )

1,766(13,518 )(9,358 )(134,924 )OtherNet cash used in investing activities
Cash flows from financing activities(4,262 )(14,947 )(42,539 )Repayments of long-term debt

(685 )(1,523 )(6,837 )Purchase of treasury stock(82 )(746 )(818 )(3,193 )(2,784 )(31,870 )(595 )(719 )(5,939 )4

3

40(8,813 )(20,716 )(87,963 )Proceeds (Repayments) of short-term loans, net

Payments of dividend
Payments of dividend to minority shareholders of subsidiaries
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents(3,410 )799(34,035 )Net increase in cash and cash equivalents(16,727 )11,961(166,953 )Cash and cash equivalents at beginning of year

79,736

67,775795,848

Increase in cash and cash equivalents resulting from:
Subsidiaries inclusion in consolidation
Cash and cash equivalents at end of year

949

-

9,472

\63,958\79,736$638,367

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

8

The consolidated financial statements of TOSHIBA TECCORPORATION (the ” Company” ) have been prepared inaccordance with accounting principles generally acceptedin Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial
Reporting Standards, 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\100.19 = US$1.00 prevailing as of March 31, 2008. 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 accountsof the Company and its significant majority-owned subsidiaries(together the “Companies” ). For the years ended March
31, 2008 and 2007, the accounts of 87 and 68 subsidiaries
are consolidated, respectively. All significant inter-company
transactions and accounts are eliminated in consolidation.
All assets and liabilities of the subsidiaries are revaluated on
acquisitions, if applicable. The difference between the cost ofinvestments in subsidiaries and the equity in their assets andliabilities at the dates of acquisition is recognized on goodwill
in the consolidated balance sheet and principally amortized by
the straight-line method over 5 to 15 years, except for thoserecorded in U.S. subsidiaries.
The equity method of accounting is adopted for investments
in major unconsolidated subsidiaries and affiliated companies.
For the year ended March 31, 2007, the major unconsolidated
subsidiary for which the equity method of accounting has been
adopted was as follows:
TOSHIBA TEC NETHERLANDS RETAIL INFORMATION SYSTEMS B.V.
For the year ended March 31, 2008, TOSHIBA TEC
NETHERLANDS RETAIL INFORMATION SYSTEMS B.V.
was consolidated and exempted from the application of theequity method of accounting. Accordingly, the Company has
no unconsolidated subsidiary for which the equity method of
accounting has been applied as of March 31, 2008.
From the perspective of immateriality, the investments in theremaining unconsolidated subsidiaries and affiliated companies arestated at cost.
Certain subsidiaries have year end which differs from that of
the Company. As a result, adjustments have been made for any
significant transactions 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 subsidiaries aretranslated into yen using the annual average rate during theyear. The balance sheet accounts, except for the components
of net assets, are translated at the rate in effect at the balance
sheet date. The components of net assets are translated attheir historical rates. Translation adjustments are presented as acomponent of “Valuation and Translation adjustments” under Net
Assets in the consolidated balance sheets.
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 operations.
（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” arereported at fair value with unrealized holding gains or losses, netof taxes, presented as a component of “Valuation and Translation
adjustments” under Net Assets in the consolidated balance
sheets. Cost of securities sold is determined by the moving
average method.
Non-marketable securities classified as “Other securities”
are carried 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
first-in, first-out method, or market, or at the cost determinedby the specific cost method. Work-in-process is principallystated at the lower of cost, determined by the moving averagemethod, or market, or at the cost determined by the specific cost
method. Raw materials are principally stated at the lower of cost,
determined by the moving average method, or market.
（F）Property, Plant and Equipment and Depreciation
Property, plant and equipment are carried at cost. Material
improvements are capitalized, but repair and maintenanceincluding minor improvements are charged to income.
Depreciation of property, plant and equipment is generally
computed by the declining-balance method for the Company andits domestic subsidiaries, and by the straight-line method forthe overseas subsidiaries, at the rates based on the estimateduseful lives of the respective assets. The useful lives of principal
property, plant and equipment are summarized as follows:
Buildings and structures
15 to 38 years
Machinery and equipment
5 to 11 years
Tools, furniture and fixtures 1 to 6 years
Effective for the year ended March 31, 2008, under a revision of
the Corporation Tax Law, the Company and domestic subsidiaries
changed the depreciation method into that based on the revised
Corporation Tax Law, as for fixed assets acquired after April
1, 2007. As a result, operating income and income before
income taxes and minority interest were \214 million (US$2,136

9thousands) each less than if the property, plant and equipment
had been depreciated under the previous accounting method.
Also, under this revision of the Corporation Tax Law, concerning
assets acquired before March 31, 2007, the Company anddomestic subsidiaries can depreciate the difference between 5%
equivalent of acquisition cost and memorandum value (\1). The
difference is depreciated for 5 years by the straight-line method
after the fiscal year following the year in which the net bookvalue has reached 5% of the acquisition cost under the previous
Corporation Tax Law. As a result, operating income and income
before income taxes and minority interests were \360 million(US$3,593 thousands) each less than if the property, plant andequipment would have been depreciated under the previous
accounting method.

（K）Allowance for retirement benefits for directors andcorporate auditors
The Company and its domestic subsidiaries provided allowancefor the retirement benefits for directors and corporate auditors.
At the board of directors meeting on March 26, 2008, theCompany has adopted the stock option plan instead of theretirement benefits for directors and corporate auditors.

（G）Intangible Assets and Amortization
Intangible assets are amortized by the straight-line method overtheir estimated useful lives.
Goodwill recognized through purchase and acquisition ofsubsidiary is basically amortized by the straight-line method over
5 to 15 years period. Concerning subsidiaries in the U.S., goodwill
is not amortized, but instead tested for impairment annually andwhen events or circumstances indicate it might be impaired,in accordance with the “Statement of Financial AccountingStandards No.142, ‘Goodwill and Other Intangible Assets’” .

(M）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 theassets and liabilities and are measured using the enacted tax
rates and laws which will be in effect when the differences are
expected to reverse.
Starting from the year ended March 31, 2006, the Company andits wholly owned domestic subsidiaries were permitted to file theconsolidated tax return in Japan for the Corporation Tax purpose.

（H）Allowance for Doubtful Accounts
Allowance for doubtful accounts is provided in the amountsufficient to cover probable losses on collection. It consistsof individually estimated uncollectible amounts and an amountcalculated using the rate of actual losses on collection in thepast.
（ I ）Accrued bonuses to directors and corporate auditors
Effective for the year ended March 31, 2007, the Company
and its domestic consolidated subsidiaries have adopted an
accounting standard for directors’ bonuses.
The standard required that directors’ bonuses be accounted foras an expense of the accounting period in which such bonuses
were accrued.
（J）Retirement Benefits
Upon retirement or termination of employment, employees of
the Company and its domestic subsidiaries are generally entitledto lump-sum payments determined by reference to their current
basic rate of pay, length of service and conditions under which
the termination occurs.
The Company and its domestic subsidiaries provide allowancefor the retirement benefits and make contributions to a noncontributory tax-qualified pension plans (the ” Funded Plan” )for employees’ severance indemnities payable, as part of theexisting retirement plan.
Allowance for the employees’ retirement benefits are determined
mainly at the amount based on the retirement benefit obligationand the fair value of the pension plan assets, as adjusted foramortization of unrecognized actuarial gain or loss and past
service costs.

10（L）Leases
The Companies lease certain equipment under non-cancelable
lease agreements referred to as finance leases. Finance leases
other than those, which transfer the ownership of the leased
property to the Companies, are primarily accounted for as
operating leases.

（N）Consumption taxes
Consumption taxes withheld from sales and paid upon purchasing
goods and services by the Company are not included in revenues
and expenses.
（O）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
with unrealized gain or loss, charged or credited to operations,
except for those which meet the criteria for the deferral hedge
accounting under which unrealized gains or losses is deferred
as assets or liabilities. Receivables and payables hedged byqualified forward foreign exchange contracts are translated at thecorresponding foreign exchange contract rates.
（P）Revenue Recognition
Sales are generally recognized at the time of shipment of thegoods to customers except for sales of certain product, which arerecorded in the accounts upon customer acceptance.
（Q）Research and Development Expenses
Research and development costs are charged to income as
incurred.

3. Short-Term Loans and Long-Term Debt
The average interest rate for short-term loans outstanding at
March 31, 2008 and 2007 is 5.1% and 4.8 %, respectively.
The long-term debt at March 31, 2008 and 2007, consists of thefollowing :Thousands of
U.S.dollars

Millions of yen

2008

2007

2008

Long-term debt:
Due serially through 2017, withinterest rate of 4.29 %¥649¥1,292$6,478

621

618

6,198

¥28

¥674

$280

Less current portion

The aggregate annual maturities of long-term debt (including thecurrent portion) outstanding at March 31, 2008 are as follows:Year ending
March 31

Millions ofyen

Thousands of
U.S. dollars

2009

¥621

$6,198

2010

1

10

2011

1

10

2012 and thereafter

26

260

¥649

$6,478

4. Retirement Benefits
The Company and its domestic subsidiaries have defined benefit
plans,i.e., the Funded Plans and the lump-sum payment plans,
covering substantially all employees who are entitled to lumpsum or annuity payments, the amounts of which are determinedby reference to their basic rates of pay, length of service, and theconditions under which termination occurs.
The following table sets forth the funded status of the plans, andthe amounts recognized in the consolidated balance sheets asof March 31, 2008 and 2007 for the Companies' defined benefit
plans:
Thousands of
U.S. dollars

Millions of yen

2008

2007

2008

¥(78,554 )¥(69,639 )$(784,050 )Plan assets

35,77435,426

357,061

Unfunded retirement benefit obligation(42,780 )(34,213 )(426,989 )Unrecognized actuarial gain or loss

5,815

3,570

58,040

Unrecognized past service cost

9,633

3,341

96,147Retirement benefit obligation

Net amount recognized in the
consolidated balance sheet
Prepaid pension cost（R）Impairment of Fixed Assets
According to the accounting standard, fixed assets are reviewed
for impairment at least once a year and whenever events orchanges in circumstances indicate that the carrying amount of anasset may not be recoverable.

The components of retirement benefit expenses for the years
ended March 31, 2008 and 2007 are as follows:

Accrued retirement benefit obligation

Thousands of
U.S. dollars

Millions of yen

2008

2007

2008

Service cost

¥2,949¥3,099$29,434

Interest cost

1,469

1,326

14,662

Expected return on plan assets(996 )(654 )(9,941 )Amortization of actuarial gain or loss

1,038

1,001

10,360

Amortization of past service cost

1,224

464

12,217

Total¥5,684¥5,236$56,732

Apart from the retirement benefit expenses above, additional
retirement benefit payments are included in Non-operating
expenses. The additional retirement benefit payments for theyears ended March 31, 2008 and 2007 were \123 millions ($1,228
thousands) and \3,094 millions, respectively.
The assumption used in accounting for the above plans in 2008
and 2007 are as follows:
2008

2007

Discount rates

Mainly 2.0%

Mainly 2.0%

Expected return on assets

Mainly 4.0%

Mainly 2.0%

Amortization period ofpast service cost

10 years Straight-line method

10 years Straight-line method

Amortization period of
actuarial gain or loss

10 years Straight-line method

10 years Straight-line method

5. Contingent liabilities
Contingent liabilities at March 31, 2008 and 2007 are as follows :Thousands of
U.S.dollars

Millions of yen

2008
Trade notes receivable discounted or endorsed

2007

2008

¥1,579¥1,658$15,760

Guarantees on lease contracts

193

730

1,926

Guarantees on employees' bank loans

954

1,117

9,522

9

-

90

Subsidiary's guarantee on customers' bank loans

6. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses
at March 31, 2008 and 2007 are as follows:
Thousands of
U.S. dollars

Millions of yen

2008

2007

Delivering expense¥8,071¥8,316

2008$80,557(27,332 )(27,302 )(272,802 )Advertising expense

4,977

4,084

49,676

183

70

1,826

Personnel expense

102,816

95,601

1,026,210¥(27,515 )¥(27,372 )$(274,628 )Depreciation and amortization

4,138

4,068

41,302

Research and development expense

23,716

21,108

236,710

Other selling expense

12,48019,657

124,56311

thousands) each less than if the property, plant and equipment
had been depreciated under the previous accounting method.
Also, under this revision of the Corporation Tax Law, concerning
assets acquired before March 31, 2007, the Company anddomestic subsidiaries can depreciate the difference between 5%
equivalent of acquisition cost and memorandum value (\1). The
difference is depreciated for 5 years by the straight-line method
after the fiscal year following the year in which the net bookvalue has reached 5% of the acquisition cost under the previous
Corporation Tax Law. As a result, operating income and income
before income taxes and minority interests were \360 million(US$3,593 thousands) each less than if the property, plant andequipment would have been depreciated under the previous
accounting method.

（K）Allowance for retirement benefits for directors andcorporate auditors
The Company and its domestic subsidiaries provided allowancefor the retirement benefits for directors and corporate auditors.
At the board of directors meeting on March 26, 2008, theCompany has adopted the stock option plan instead of theretirement benefits for directors and corporate auditors.

（G）Intangible Assets and Amortization
Intangible assets are amortized by the straight-line method overtheir estimated useful lives.
Goodwill recognized through purchase and acquisition ofsubsidiary is basically amortized by the straight-line method over
5 to 15 years period. Concerning subsidiaries in the U.S., goodwill
is not amortized, but instead tested for impairment annually andwhen events or circumstances indicate it might be impaired,in accordance with the “Statement of Financial AccountingStandards No.142, ‘Goodwill and Other Intangible Assets’” .

(M）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 theassets and liabilities and are measured using the enacted tax
rates and laws which will be in effect when the differences are
expected to reverse.
Starting from the year ended March 31, 2006, the Company andits wholly owned domestic subsidiaries were permitted to file theconsolidated tax return in Japan for the Corporation Tax purpose.

（H）Allowance for Doubtful Accounts
Allowance for doubtful accounts is provided in the amountsufficient to cover probable losses on collection. It consistsof individually estimated uncollectible amounts and an amountcalculated using the rate of actual losses on collection in thepast.
（ I ）Accrued bonuses to directors and corporate auditors
Effective for the year ended March 31, 2007, the Company
and its domestic consolidated subsidiaries have adopted an
accounting standard for directors’ bonuses.
The standard required that directors’ bonuses be accounted foras an expense of the accounting period in which such bonuses
were accrued.
（J）Retirement Benefits
Upon retirement or termination of employment, employees of
the Company and its domestic subsidiaries are generally entitledto lump-sum payments determined by reference to their current
basic rate of pay, length of service and conditions under which
the termination occurs.
The Company and its domestic subsidiaries provide allowancefor the retirement benefits and make contributions to a noncontributory tax-qualified pension plans (the ” Funded Plan” )for employees’ severance indemnities payable, as part of theexisting retirement plan.
Allowance for the employees’ retirement benefits are determined
mainly at the amount based on the retirement benefit obligationand the fair value of the pension plan assets, as adjusted foramortization of unrecognized actuarial gain or loss and past
service costs.

10（L）Leases
The Companies lease certain equipment under non-cancelable
lease agreements referred to as finance leases. Finance leases
other than those, which transfer the ownership of the leased
property to the Companies, are primarily accounted for as
operating leases.

（N）Consumption taxes
Consumption taxes withheld from sales and paid upon purchasing
goods and services by the Company are not included in revenues
and expenses.
（O）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
with unrealized gain or loss, charged or credited to operations,
except for those which meet the criteria for the deferral hedge
accounting under which unrealized gains or losses is deferred
as assets or liabilities. Receivables and payables hedged byqualified forward foreign exchange contracts are translated at thecorresponding foreign exchange contract rates.
（P）Revenue Recognition
Sales are generally recognized at the time of shipment of thegoods to customers except for sales of certain product, which arerecorded in the accounts upon customer acceptance.
（Q）Research and Development Expenses
Research and development costs are charged to income as
incurred.

3. Short-Term Loans and Long-Term Debt
The average interest rate for short-term loans outstanding at
March 31, 2008 and 2007 is 5.1% and 4.8 %, respectively.
The long-term debt at March 31, 2008 and 2007, consists of thefollowing :Thousands of
U.S.dollars

Millions of yen

2008

2007

2008

Long-term debt:
Due serially through 2017, withinterest rate of 4.29 %¥649¥1,292$6,478

621

618

6,198

¥28

¥674

$280

Less current portion

The aggregate annual maturities of long-term debt (including thecurrent portion) outstanding at March 31, 2008 are as follows:Year ending
March 31

Millions ofyen

Thousands of
U.S. dollars

2009

¥621

$6,198

2010

1

10

2011

1

10

2012 and thereafter

26

260

¥649

$6,478

4. Retirement Benefits
The Company and its domestic subsidiaries have defined benefit
plans,i.e., the Funded Plans and the lump-sum payment plans,
covering substantially all employees who are entitled to lumpsum or annuity payments, the amounts of which are determinedby reference to their basic rates of pay, length of service, and theconditions under which termination occurs.
The following table sets forth the funded status of the plans, andthe amounts recognized in the consolidated balance sheets asof March 31, 2008 and 2007 for the Companies' defined benefit
plans:
Thousands of
U.S. dollars

Millions of yen

2008

2007

2008

¥(78,554 )¥(69,639 )$(784,050 )Plan assets

35,77435,426

357,061

Unfunded retirement benefit obligation(42,780 )(34,213 )(426,989 )Unrecognized actuarial gain or loss

5,815

3,570

58,040

Unrecognized past service cost

9,633

3,341

96,147Retirement benefit obligation

Net amount recognized in the
consolidated balance sheet
Prepaid pension cost（R）Impairment of Fixed Assets
According to the accounting standard, fixed assets are reviewed
for impairment at least once a year and whenever events orchanges in circumstances indicate that the carrying amount of anasset may not be recoverable.

The components of retirement benefit expenses for the years
ended March 31, 2008 and 2007 are as follows:

Accrued retirement benefit obligation

Thousands of
U.S. dollars

Millions of yen

2008

2007

2008

Service cost

¥2,949¥3,099$29,434

Interest cost

1,469

1,326

14,662

Expected return on plan assets(996 )(654 )(9,941 )Amortization of actuarial gain or loss

1,038

1,001

10,360

Amortization of past service cost

1,224

464

12,217

Total¥5,684¥5,236$56,732

Apart from the retirement benefit expenses above, additional
retirement benefit payments are included in Non-operating
expenses. The additional retirement benefit payments for theyears ended March 31, 2008 and 2007 were \123 millions ($1,228
thousands) and \3,094 millions, respectively.
The assumption used in accounting for the above plans in 2008
and 2007 are as follows:
2008

2007

Discount rates

Mainly 2.0%

Mainly 2.0%

Expected return on assets

Mainly 4.0%

Mainly 2.0%

Amortization period ofpast service cost

10 years Straight-line method

10 years Straight-line method

Amortization period of
actuarial gain or loss

10 years Straight-line method

10 years Straight-line method

5. Contingent liabilities
Contingent liabilities at March 31, 2008 and 2007 are as follows :Thousands of
U.S.dollars

Millions of yen

2008
Trade notes receivable discounted or endorsed

2007

2008

¥1,579¥1,658$15,760

Guarantees on lease contracts

193

730

1,926

Guarantees on employees' bank loans

954

1,117

9,522

9

-

90

Subsidiary's guarantee on customers' bank loans

6. Selling, General and Administrative Expenses
Major components of selling, general and administrative expenses
at March 31, 2008 and 2007 are as follows:
Thousands of
U.S. dollars

Millions of yen

2008

2007

Delivering expense¥8,071¥8,316

2008$80,557(27,332 )(27,302 )(272,802 )Advertising expense

4,977

4,084

49,676

183

70

1,826

Personnel expense

102,816

95,601

1,026,210¥(27,515 )¥(27,372 )$(274,628 )Depreciation and amortization

4,138

4,068

41,302

Research and development expense

23,716

21,108

236,710

Other selling expense

12,48019,657

124,56311

7. Non-Operating Income and Expenses - Other, Net“Other, net” for the years ended March 31, 2008 and 2007,
consists of the following :Thousands of
U.S.dollars

Millions of yen

2008
Write-down and disposal of inventories
Loss on sales or disposals of property,
plant and equipment¥(720 )

2007

2008

¥(1,337 )$(7,186)

10. Leases（A）Finance leases
The following pro forma amounts represent the acquisition cost,
accumulated depreciation and net book value of leased property
as of March 31, 2008 and 2007, which would have been reflectedin the consolidated balance sheets if the finance lease accounting
had been applied to the finance lease transactions currently
accounted for as operating leases:(327 )(593 )(3,264)Foreign exchange gain or loss

(1,219 )241(12,167)

Other, net(1,536 )(2,019 )(15,331)

2008$(37,948)

Acquisition Accumulated New bookcost
depreciation
value¥(3,802 )¥(3,708 )Millions of yen

Machinery and equipment

Research and development costs charged to income for theyears ended March 31, 2008 and 2007 are as follows:

Tools, furniture and fixtures

2008
Acquisition
cost

¥233

2008

2007

2008

¥30,677¥29,529$306,188

9. Income Taxes and Deferred Tax Assets andLiabilities

2008

2007

¥347

¥186

StocksNew book
value

Total

Acquisition
cost

Carrying
value

Unrealized
gain (loss)

2007

737

410

327

270

134

136

¥1,084

¥643

¥441

¥617

¥320

¥297

¥911 ¥1,849

¥938

248

210

(38)

¥1,159 ¥2,059

¥900

282

Acquisition
cost

2008
Accumulated
depreciation

New book
value

Machinery and equipment$3,463 $2,326 $1,137

Tools, furniture and fixtures

7,356

4,092

(38)

¥1,228 ¥2,809¥1,581$10,819 $6,418 $4,401

Total$11,568$20,551$8,983(3) Information regarding non-marketable securities as of March
31, 2008 and 2007 is as follows.

2.1

Changes in valuation allowance(0.7 )

9.2

Corporation tax special deduction for research expenditures(3.4 )(6.0 )

Due within one year

¥144

¥88

$1,437

Other, net

4.0

1.1

OthersDue after one year

297

209

2,964

32.0%

35.4%

Total

¥441

¥297

$4,401

Deferred tax assets:

Forward exchange contracts:
Sell Euros and others

Fair value

Unrealized
gain (loss)$15,041 $14,881$160（A） Business Segment
The Companies operate in three business segments.

Thousands of
U.S.dollars

Millions of yen

2008

2007

2008

(2) Lease payments for the years ended March 31, 2008 and2007, are \189 millions （$1,886 thousands） and \90 millions,
respectively.

Total

Millions of yen

2008

Unaffiliated customers
Intersegment

Unaffiliated customers
Intersegment

Other securities
Unlisted stocks¥1,907¥1,924--¥1,907¥1,924

Total
Unaffiliated customers
Intersegment
Total

Thousands of U.S.dollars

2008

2007

Carrying value
Other securities（B）Operating leases

Unlisted stocks

Future minimum lease payments subsequent to March 31, 2008
and 2007 for noncancelable operating leases are summarized asfollows:

OthersTotal$19,034$19,204--$19,034$19,204

64,358306,959

311,094

3,063,769

2,582

13,992

25,771

313

231

3,124

2,895

14,22328,895(10,841 )(91,875 )¥9,046$103,114

13,239156,912Home Electric Appliances & Others

23

386

230

Eliminations

-

0

0

Consolidated¥26,075¥22,671$260,256

Retail Information Systems¥77,315¥79,209$771,684

Document Processing & Telecommunication Systems

201,002221,240

2,006,208

2,254

30,213

8,118

10,02981,02534,50235,079344,366

Due within one year

¥215

¥129

$2,146(1,500 )(2,301 )(14,972 )Due after one year

303

180

3,024

33,002

32,778329,394

¥518

¥309

$5,170Retained earnings appropriated for tax allowable reserves

380

643

3,793

Corporate and Eliminations

Unrealized gains on securities

421

729

4,201

Consolidated

Other

179

132

1,787

12. Derivative Financial Instruments
Fair value information of the derivative financial instruments at
March 31,2008 and 2007 is summarized below according to thedisclosure requirements applicable to the respective year:¥510,846 $4,920,351

15,721

3,027

9,781

2,999,411

8,203¥10,331

Other

2008

302,891

6,448

Document Processing & Telecommunication Systems

Elimination of consolidated unrealized gains

2007

300,511Retail Information Systems

37,100Millions of yen

1,919,562

Operating Income

3,777

2008

24,393

196,370(9,205 )3,717

Thousands of
U.S.dollars

2,407

192,321¥492,970

Accrued bonuses$319,613¥193,963 $1,895,169

2,444

Eliminations

88,093

1,504¥189,877

Consolidated

7,994¥31,2742008

Home Electric Appliances & Others

8,826

980

2007

Document Processing & Telecommunication Systems

2007

Carrying value

Intangible assets¥32,0222008
Net Sales$107,935

Net deferred tax assets

Thousands of
U.S.dollars

Millions of yen¥11,025

Deferred tax liabilities:¥(5)

13. Segment Information¥10,814

Valuation allowance¥2,812 ¥2,817

Retail Information Systems(1) Future minimum lease payments （including the interest
portion thereon） subsequent to March 31, 2008 and 2007 forfinance lease transactions accounted for as operating leases
are summarized as follows:

2.4

2008

Unrealized
gain (loss)$9,362(379 )

Expenses permanently not deductible for income tax purposes

2007$18,455
2,096(11.6 )

Thousands of
U.S.dollars$9,0932,475(10.9 )

Millions of yen

Unrealized
gain (loss)

StocksDifferent tax rates applied to income of foreign subsidiaries

Significant components of the Companies' deferred tax assets
and liabilities at March 31, 2008 and 2007 are as follows:

Carrying
value

Securities whose carrying value exceeds their acquisition cost:

40.6%

Effect of :¥16

Fair value

Above forward exchange contracts are taken by the Company tohedge the foreign currency risk on inter-company transactions.
They meet the criteria for deferral hedge accounting, and holding
gains or losses of these financial instruments are deferred in the
Non-Consolidated Financial Statements of the Company.

(2) The proceeds from sales of securities, except those of theaffiliated companies, for the years ended March 31, 2008 and2007 were \5 millions （$50 thousands） and \552 millions,
respectively. The realized gains on those sales for theyears ended March 31, 2008 and 2007 were \4 millions ($40
thousands) and \405 millions, respectively.

3,264¥1,507 ¥1,491

Contract
amount¥1,619244

Acquisition
cost

Contract
amount2008¥946 ¥2,565

Securities whose acquisition cost exceeds their carrying value:

Thousands of U.S.dollars

Unrealized
gain (loss)

Thousands of U.S.dollars

Thousands of U.S.dollars

¥161

40.6%

Accrued retirement benefits

Unrealized
gain (loss)

2007

Fair value

Securities whose carrying value exceeds their acquisition cost:

Stocks

The following table summarizes the difference between thestatutory tax rate and the Company's effective tax rate for theyears ended March 31 2008.

2008

2007

Securities whose acquisition cost exceeds their carrying value:

Acquisition Accumulated
cost
depreciation¥114

Carrying
value

Contract
amountForward exchange contracts:
Sell Euros and others

Millions of yen

2008

Thousands of
U.S.dollars

Statutory tax rate

¥347

Millions of yen

2008（1） Information regarding marketable Other Securities as ofMarch 31, 2008 and 2007 is as follows:

Stocks

8. Research and Development Expenses

Millions of yen

12

11. Securities

Identifiable Assets

Home Electric Appliances & Others

400

9,108

3,992

35,183

48,696351,163¥313,900¥358,253 $3,133,047

13

7. Non-Operating Income and Expenses - Other, Net“Other, net” for the years ended March 31, 2008 and 2007,
consists of the following :Thousands of
U.S.dollars

Millions of yen

2008
Write-down and disposal of inventories
Loss on sales or disposals of property,
plant and equipment¥(720 )

2007

2008

¥(1,337 )$(7,186)

10. Leases（A）Finance leases
The following pro forma amounts represent the acquisition cost,
accumulated depreciation and net book value of leased property
as of March 31, 2008 and 2007, which would have been reflectedin the consolidated balance sheets if the finance lease accounting
had been applied to the finance lease transactions currently
accounted for as operating leases:(327 )(593 )(3,264)Foreign exchange gain or loss

(1,219 )241(12,167)

Other, net(1,536 )(2,019 )(15,331)

2008$(37,948)

Acquisition Accumulated New bookcost
depreciation
value¥(3,802 )¥(3,708 )Millions of yen

Machinery and equipment

Research and development costs charged to income for theyears ended March 31, 2008 and 2007 are as follows:

Tools, furniture and fixtures

2008
Acquisition
cost

¥233

2008

2007

2008

¥30,677¥29,529$306,188

9. Income Taxes and Deferred Tax Assets andLiabilities

2008

2007

¥347

¥186

StocksNew book
value

Total

Acquisition
cost

Carrying
value

Unrealized
gain (loss)

2007

737

410

327

270

134

136

¥1,084

¥643

¥441

¥617

¥320

¥297

¥911 ¥1,849

¥938

248

210

(38)

¥1,159 ¥2,059

¥900

282

Acquisition
cost

2008
Accumulated
depreciation

New book
value

Machinery and equipment$3,463 $2,326 $1,137

Tools, furniture and fixtures

7,356

4,092

(38)

¥1,228 ¥2,809¥1,581$10,819 $6,418 $4,401

Total$11,568$20,551$8,983(3) Information regarding non-marketable securities as of March
31, 2008 and 2007 is as follows.

2.1

Changes in valuation allowance(0.7 )

9.2

Corporation tax special deduction for research expenditures(3.4 )(6.0 )

Due within one year

¥144

¥88

$1,437

Other, net

4.0

1.1

OthersDue after one year

297

209

2,964

32.0%

35.4%

Total

¥441

¥297

$4,401

Deferred tax assets:

Forward exchange contracts:
Sell Euros and others

Fair value

Unrealized
gain (loss)$15,041 $14,881$160（A） Business Segment
The Companies operate in three business segments.

Thousands of
U.S.dollars

Millions of yen

2008

2007

2008

(2) Lease payments for the years ended March 31, 2008 and2007, are \189 millions （$1,886 thousands） and \90 millions,
respectively.

Total

Millions of yen

2008

Unaffiliated customers
Intersegment

Unaffiliated customers
Intersegment

Other securities
Unlisted stocks¥1,907¥1,924--¥1,907¥1,924

Total
Unaffiliated customers
Intersegment
Total

Thousands of U.S.dollars

2008

2007

Carrying value
Other securities（B）Operating leases

Unlisted stocks

Future minimum lease payments subsequent to March 31, 2008
and 2007 for noncancelable operating leases are summarized asfollows:

OthersTotal$19,034$19,204--$19,034$19,204

64,358306,959

311,094

3,063,769

2,582

13,992

25,771

313

231

3,124

2,895

14,22328,895(10,841 )(91,875 )¥9,046$103,114

13,239156,912Home Electric Appliances & Others

23

386

230

Eliminations

-

0

0

Consolidated¥26,075¥22,671$260,256

Retail Information Systems¥77,315¥79,209$771,684

Document Processing & Telecommunication Systems

201,002221,240

2,006,208

2,254

30,213

8,118

10,02981,02534,50235,079344,366

Due within one year

¥215

¥129

$2,146(1,500 )(2,301 )(14,972 )Due after one year

303

180

3,024

33,002

32,778329,394

¥518

¥309

$5,170Retained earnings appropriated for tax allowable reserves

380

643

3,793

Corporate and Eliminations

Unrealized gains on securities

421

729

4,201

Consolidated

Other

179

132

1,787

12. Derivative Financial Instruments
Fair value information of the derivative financial instruments at
March 31,2008 and 2007 is summarized below according to thedisclosure requirements applicable to the respective year:¥510,846 $4,920,351

15,721

3,027

9,781

2,999,411

8,203¥10,331

Other

2008

302,891

6,448

Document Processing & Telecommunication Systems

Elimination of consolidated unrealized gains

2007

300,511Retail Information Systems

37,100Millions of yen

1,919,562

Operating Income

3,777

2008

24,393

196,370(9,205 )3,717

Thousands of
U.S.dollars

2,407

192,321¥492,970

Accrued bonuses$319,613¥193,963 $1,895,169

2,444

Eliminations

88,093

1,504¥189,877

Consolidated

7,994¥31,2742008

Home Electric Appliances & Others

8,826

980

2007

Document Processing & Telecommunication Systems

2007

Carrying value

Intangible assets¥32,0222008
Net Sales$107,935

Net deferred tax assets

Thousands of
U.S.dollars

Millions of yen¥11,025

Deferred tax liabilities:¥(5)

13. Segment Information¥10,814

Valuation allowance¥2,812 ¥2,817

Retail Information Systems(1) Future minimum lease payments （including the interest
portion thereon） subsequent to March 31, 2008 and 2007 forfinance lease transactions accounted for as operating leases
are summarized as follows:

2.4

2008

Unrealized
gain (loss)$9,362(379 )

Expenses permanently not deductible for income tax purposes

2007$18,455
2,096(11.6 )

Thousands of
U.S.dollars$9,0932,475(10.9 )

Millions of yen

Unrealized
gain (loss)

StocksDifferent tax rates applied to income of foreign subsidiaries

Significant components of the Companies' deferred tax assets
and liabilities at March 31, 2008 and 2007 are as follows:

Carrying
value

Securities whose carrying value exceeds their acquisition cost:

40.6%

Effect of :¥16

Fair value

Above forward exchange contracts are taken by the Company tohedge the foreign currency risk on inter-company transactions.
They meet the criteria for deferral hedge accounting, and holding
gains or losses of these financial instruments are deferred in the
Non-Consolidated Financial Statements of the Company.

(2) The proceeds from sales of securities, except those of theaffiliated companies, for the years ended March 31, 2008 and2007 were \5 millions （$50 thousands） and \552 millions,
respectively. The realized gains on those sales for theyears ended March 31, 2008 and 2007 were \4 millions ($40
thousands) and \405 millions, respectively.

3,264¥1,507 ¥1,491

Contract
amount¥1,619244

Acquisition
cost

Contract
amount2008¥946 ¥2,565

Securities whose acquisition cost exceeds their carrying value:

Thousands of U.S.dollars

Unrealized
gain (loss)

Thousands of U.S.dollars

Thousands of U.S.dollars

¥161

40.6%

Accrued retirement benefits

Unrealized
gain (loss)

2007

Fair value

Securities whose carrying value exceeds their acquisition cost:

Stocks

The following table summarizes the difference between thestatutory tax rate and the Company's effective tax rate for theyears ended March 31 2008.

2008

2007

Securities whose acquisition cost exceeds their carrying value:

Acquisition Accumulated
cost
depreciation¥114

Carrying
value

Contract
amountForward exchange contracts:
Sell Euros and others

Millions of yen

2008

Thousands of
U.S.dollars

Statutory tax rate

¥347

Millions of yen

2008（1） Information regarding marketable Other Securities as ofMarch 31, 2008 and 2007 is as follows:

Stocks

8. Research and Development Expenses

Millions of yen

12

11. Securities

Identifiable Assets

Home Electric Appliances & Others

400

9,108

3,992

35,183

48,696351,163¥313,900¥358,253 $3,133,047

13Depreciation and Amortization
Retail Information Systems¥2,803¥2,919$27,977

Document Processing & Telecommunication Systems

10,946

10,710109,252

72

636

719

¥13,821¥14,265$137,948

Retail Information Systems¥2,936¥2,757$29,305

Document Processing & Telecommunication Systems

12,133

11,576

121,100

Home Electric Appliances & Others
Consolidated（Note 2） Corporate assets mainly consist of cash, time deposits, securities andinvestments with financial institutions of the Company. Corporate assets
at March 31, 2008 and 2007, are \35,723 millions ($356,553 thousands) and\49,565 millions, respectively.

（C） Net Sales by Region

Capital Expenditures

Home Electric Appliances & Others
Consolidated

37

693

369

¥15,106¥15,026$150,774（Note） Corporate assets mainly consist of cash, time deposits, securities and investments with financial
institutions of the Company. Corporate assets at March 31, 2008 and 2007, are \35,723 millions($356,553 thousands) and \49,565 millions, respectively.

2008（B） Geographic Segments
Thousands of
U.S.dollars

Millions of yen

2008

2007

2008

Net SalesJapan¥234,845¥270,336$2,343,996

Intersegment

85,55485,769853,918

Total

320,399

356,105

3,197,914

American States
Unaffiliated customers
Intersegment
Total

100,847

103,117

1,006,558

1,679

1,121

16,758102,526

104,238

1,023,316

115,458

99,6791,152,391

6,154

6,189

61,423

EuropeUnaffiliated customers
Intersegment
Total

121,612

105,868

1,213,814

Asia and others
Unaffiliated customers

41,82037,714417,407

Intersegment

64,933

68,116

648,099

Total

106,753

105,830

1,065,506

Eliminations(158,320 )(161,195 )(1,580,199)

Consolidated¥492,970¥510,846$4,920,351

Operating IncomeJapan¥8,984¥7,064$89,670

American States

4,812

4,479

48,029Europe

5,748

2,277

57,371¥239,985$2,026,849

American States

125,085

125,786

1,248,478

Current assets\414$4,132Europe124,572

109,501

1,243,357

Fixed assets

384

3,833

Asia and others

40,24335,574

401,667

Current liabilities

24

240

¥492,970¥510,846$4,920,351

Long-term liabilities

191

1,906

Acquisition cost of investments of AI SOLUTIONS CORPORATION

583

5,819

Cash and Cash equivalents of AI SOLUTIONS CORPORATION

50

499

Expenses for the Acquisition of AI SOLUTIONS CORPORATION

533

5,320

14. Business Combination
Under the resolution of the board of directors' meeting held
on December 25, 2006, the business transfer of Home ElectricAppliances business was carried out on June 1, 2007.
（1） Background（2） Business Segment Affected
Home Electric Appliances business is included in the businesssegment "Home Electric Appliances & Others".

1. The business concerned
Development and manufacturing of home electric appliancessuch as cleaners, food preparation devices, small motors, etc.
2. Scale of the operation
Thousands of
As of the year ending March, 2007

7,285

80,228(15,042)

Consolidated sales

Consolidated¥26,075¥22,671$260,256

Consolidated operating income

Millions of yen

U.S.dollars¥13,559$135,333¥308$3,074（4） Consideration and Gain
¥232,706¥247,958$2,322,647

33,58540,585335,213

Europe60,064

67,399599,501

Asia and others

42,86746,084

427,857

Corporate and Eliminations(55,322 )(43,773 )(552,171)¥313,900¥358,253$3,133,047（A）Transactions with Fellow Subsidiaries for the year
ended March 31, 2007.
Name

Address

Subsidiary
Toshibaof theConsumer Chiyoda-ku,
parentMarketingTokyo
company Corporation

Capital（Millions ofyen）

Business

3,000

Business planning andsales of home appliancesand domestic sales ofIT products and visualequipments for the
consumer market

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts（Millions ofyen）Account
item

Percentage ofvoting rights
held （%）

None

Sales of home
Sales of ourelectric appliances,products
etc.

Trade notes
and accountreceivable

11,895

The Home Electric Appliances business was sold for \1,886
million ($18,824 thousand) with the related gain on sales of \225million ($2,246 thousands).
The related assets and liabilities decreased by the transfer andproceeds from the transfer are summarized as follows.
Thousands ofMillions of yen U.S. dollars

Current assets¥2,021$20,172

Fixed assets

1,701

16,978Long-term liabilities

2,061

20,571

Assets and liabilities decreased by the transfer

1,661

16,579Gain from the transfer
Transfer value

225

2,246

1,886

18,825Address

Capital（Millions ofyen）

Business

Percentage ofvoting rights
held （%）

100

Financing of
TOSHIBA Groupdomestic companies

None

Subsidiary
Toshibaof theMinato-ku,
CapitalparentTokyo
Corporationcompany

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

None

Deposits offunds

Transactions

Transaction
Amounts（Millions ofyen）Account
item

Balance at
Fiscal Year
End （Millionsof yen）

Deposits of funds

38,486

Cash andCashequivalents

38,486（Note）Transaction Amounts are Balance at Fiscal Year End.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

（B）Transactions with Fellow Subsidiaries for the year
ended March 31, 2008.

（¥=Million, US$=Thousand）

StatusName

Address

CapitalBusiness

Development, designing,
manufacturing, sales
Subsidiary
ToshibaMinato-ku,\20,000
and maintenance ofof the parent Solutions
Tokyo（$199,621） computer systems andcompany Corporation
communication systems,
etc.

Balance at
Fiscal Year
End （Millionsof yen）

Dispatch of
Business
executive
Relationshipofficers, etc.

None
None

Name

Percentage ofvoting rights
held （%）

None

RelationshipTransactions

Transaction
Amounts

Sales of document
Sales of ourprocessing andproducts
telecommunicationequipments, etc.

Account
item

Balance at
FiscalYear End

Trade notes\7,865\3,901and account（$78,501）（$38,936）
receivable

4,439With regard to the amounts above, Transaction Amounts include consumption taxes and Balance
at Fiscal Year End doesn't include them.

（3） Transferred Business

1,566

American States

16. Transactions with Related Parties

StatusThe Home Electric Appliances business was transferred to
TOSHIBA HA PRODUCTS Co., Ltd., a subsidiary of TOSHIBACONSUMER MARKETING CORPORATION to unify development,
manufacturing and sales of the home electric appliances businessfor more efficient business operations in the TOSHIBA group.
This enabled us to strengthen our operation, concentrating in
Retail Information Systems business and Document Systems andTelecommunications business.

8,038（Note 1）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 closeness（2） Countries & Areas
1. American States / U.S.A., Canada, Mexico, Puerto Rico, Panama, Venezuela,
Brazil, Chile
2. Europe / U.K., France, Germany, Belgium, Spain, Netherlands, Sweden, Norway,
Denmark, Finland, Switzerland, Poland
3. Asia and Others / Singapore, Malaysia, Indonesia, China, Australia, Korea

14（Note） Net sales by region are determined based upon the locations of the customers. Therefore, thisinformation is different from the net sales for geographic segments, which are determined based uponwhere the sales originated.

(1,507 )Identifiable Assets

Thousands ofMillions of yen U.S. dollars¥203,070

Eliminations

Consolidated

2008

In the fiscal year 2008, the Company consolidated AI
SOLUTIONS CORPORATION by the acquisition of investments.
The related assets and liabilities at the date of acquisition of AI
SOLUTIONS CORPORATION, the acquisition cost of investmentsof AI SOLUTIONS CORPORATION and the net expenses for theacquisition are summarized as follows.

Japan

Asia and others

Japan

2007

StatusNet Sales

Net sales

Unaffiliated customers

Thousands of
U.S.dollars

Millions of yen

15. Acquisition of investments
in newly consolidated subsidiaries

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices andoverall costs.

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices and（¥=Million, US$=Thousand）

StatusName

Address

Subsidiary
ToshibaMinato-ku,
of theSolutionsparentTokyo
Corporationcompany

Capital（Millions ofyen）

Business

Percentage ofvoting rights
held （%）

20,000Development, designing,
manufacturing, sales
and maintenance ofcomputer systems andcommunication systems,
etc.

None

None

CapitalBusiness

Percentage ofvoting rights
held （%）

Subsidiary
Toshibaof theMinato-ku,
CapitalparentTokyo
Corporationcompany\100（$998）

Financing of
TOSHIBA Groupdomestic companies

None

Name

Relationship

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Address

StatusTransactions

Sales of document
Sales of ourprocessing andproducts
telecommunicationequipments, etc.

Transaction
Amounts（Millions ofyen）Account
item

Balance at
Fiscal Year
End （Millionsof yen）

7,897

Trade notes
and accountreceivable

6,684

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices andoverall costs.

Dispatch of
Business
executive
Relationshipofficers, etc.

None

Deposits offunds

Transactions

Transaction
Amounts

Deposits of funds*1

Account
item

Balance at
FiscalYear EndCash and\31,796Cash（$317,357）
equivalents

With regard to the amounts above, Transaction Amounts include consumption taxes and Balance
at Fiscal Year End doesn't include them.
*1 Concerning Deposits of funds, it's difficult to figure out Transaction Amounts because fundsettlement is performed whenever needed. Therefore, only Balance at Fiscal Year End isstated.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

15

Depreciation and Amortization
Retail Information Systems¥2,803¥2,919$27,977

Document Processing & Telecommunication Systems

10,946

10,710109,252

72

636

719

¥13,821¥14,265$137,948

Retail Information Systems¥2,936¥2,757$29,305

Document Processing & Telecommunication Systems

12,133

11,576

121,100

Home Electric Appliances & Others
Consolidated（Note 2） Corporate assets mainly consist of cash, time deposits, securities andinvestments with financial institutions of the Company. Corporate assets
at March 31, 2008 and 2007, are \35,723 millions ($356,553 thousands) and\49,565 millions, respectively.

（C） Net Sales by Region

Capital Expenditures

Home Electric Appliances & Others
Consolidated

37

693

369

¥15,106¥15,026$150,774（Note） Corporate assets mainly consist of cash, time deposits, securities and investments with financial
institutions of the Company. Corporate assets at March 31, 2008 and 2007, are \35,723 millions($356,553 thousands) and \49,565 millions, respectively.

2008（B） Geographic Segments
Thousands of
U.S.dollars

Millions of yen

2008

2007

2008

Net SalesJapan¥234,845¥270,336$2,343,996

Intersegment

85,55485,769853,918

Total

320,399

356,105

3,197,914

American States
Unaffiliated customers
Intersegment
Total

100,847

103,117

1,006,558

1,679

1,121

16,758102,526

104,238

1,023,316

115,458

99,6791,152,391

6,154

6,189

61,423

EuropeUnaffiliated customers
Intersegment
Total

121,612

105,868

1,213,814

Asia and others
Unaffiliated customers

41,82037,714417,407

Intersegment

64,933

68,116

648,099

Total

106,753

105,830

1,065,506

Eliminations(158,320 )(161,195 )(1,580,199)

Consolidated¥492,970¥510,846$4,920,351

Operating IncomeJapan¥8,984¥7,064$89,670

American States

4,812

4,479

48,029Europe

5,748

2,277

57,371¥239,985$2,026,849

American States

125,085

125,786

1,248,478

Current assets\414$4,132Europe124,572

109,501

1,243,357

Fixed assets

384

3,833

Asia and others

40,24335,574

401,667

Current liabilities

24

240

¥492,970¥510,846$4,920,351

Long-term liabilities

191

1,906

Acquisition cost of investments of AI SOLUTIONS CORPORATION

583

5,819

Cash and Cash equivalents of AI SOLUTIONS CORPORATION

50

499

Expenses for the Acquisition of AI SOLUTIONS CORPORATION

533

5,320

14. Business Combination
Under the resolution of the board of directors' meeting held
on December 25, 2006, the business transfer of Home ElectricAppliances business was carried out on June 1, 2007.
（1） Background（2） Business Segment Affected
Home Electric Appliances business is included in the businesssegment "Home Electric Appliances & Others".

1. The business concerned
Development and manufacturing of home electric appliancessuch as cleaners, food preparation devices, small motors, etc.
2. Scale of the operation
Thousands of
As of the year ending March, 2007

7,285

80,228(15,042)

Consolidated sales

Consolidated¥26,075¥22,671$260,256

Consolidated operating income

Millions of yen

U.S.dollars¥13,559$135,333¥308$3,074（4） Consideration and Gain
¥232,706¥247,958$2,322,647

33,58540,585335,213

Europe60,064

67,399599,501

Asia and others

42,86746,084

427,857

Corporate and Eliminations(55,322 )(43,773 )(552,171)¥313,900¥358,253$3,133,047（A）Transactions with Fellow Subsidiaries for the year
ended March 31, 2007.
Name

Address

Subsidiary
Toshibaof theConsumer Chiyoda-ku,
parentMarketingTokyo
company Corporation

Capital（Millions ofyen）

Business

3,000

Business planning andsales of home appliancesand domestic sales ofIT products and visualequipments for the
consumer market

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts（Millions ofyen）Account
item

Percentage ofvoting rights
held （%）

None

Sales of home
Sales of ourelectric appliances,products
etc.

Trade notes
and accountreceivable

11,895

The Home Electric Appliances business was sold for \1,886
million ($18,824 thousand) with the related gain on sales of \225million ($2,246 thousands).
The related assets and liabilities decreased by the transfer andproceeds from the transfer are summarized as follows.
Thousands ofMillions of yen U.S. dollars

Current assets¥2,021$20,172

Fixed assets

1,701

16,978Long-term liabilities

2,061

20,571

Assets and liabilities decreased by the transfer

1,661

16,579Gain from the transfer
Transfer value

225

2,246

1,886

18,825Address

Capital（Millions ofyen）

Business

Percentage ofvoting rights
held （%）

100

Financing of
TOSHIBA Groupdomestic companies

None

Subsidiary
Toshibaof theMinato-ku,
CapitalparentTokyo
Corporationcompany

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

None

Deposits offunds

Transactions

Transaction
Amounts（Millions ofyen）Account
item

Balance at
Fiscal Year
End （Millionsof yen）

Deposits of funds

38,486

Cash andCashequivalents

38,486（Note）Transaction Amounts are Balance at Fiscal Year End.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

（B）Transactions with Fellow Subsidiaries for the year
ended March 31, 2008.

（¥=Million, US$=Thousand）

StatusName

Address

CapitalBusiness

Development, designing,
manufacturing, sales
Subsidiary
ToshibaMinato-ku,\20,000
and maintenance ofof the parent Solutions
Tokyo（$199,621） computer systems andcompany Corporation
communication systems,
etc.

Balance at
Fiscal Year
End （Millionsof yen）

Dispatch of
Business
executive
Relationshipofficers, etc.

None
None

Name

Percentage ofvoting rights
held （%）

None

RelationshipTransactions

Transaction
Amounts

Sales of document
Sales of ourprocessing andproducts
telecommunicationequipments, etc.

Account
item

Balance at
FiscalYear End

Trade notes\7,865\3,901and account（$78,501）（$38,936）
receivable

4,439With regard to the amounts above, Transaction Amounts include consumption taxes and Balance
at Fiscal Year End doesn't include them.

（3） Transferred Business

1,566

American States

16. Transactions with Related Parties

StatusThe Home Electric Appliances business was transferred to
TOSHIBA HA PRODUCTS Co., Ltd., a subsidiary of TOSHIBACONSUMER MARKETING CORPORATION to unify development,
manufacturing and sales of the home electric appliances businessfor more efficient business operations in the TOSHIBA group.
This enabled us to strengthen our operation, concentrating in
Retail Information Systems business and Document Systems andTelecommunications business.

8,038（Note 1）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 closeness（2） Countries & Areas
1. American States / U.S.A., Canada, Mexico, Puerto Rico, Panama, Venezuela,
Brazil, Chile
2. Europe / U.K., France, Germany, Belgium, Spain, Netherlands, Sweden, Norway,
Denmark, Finland, Switzerland, Poland
3. Asia and Others / Singapore, Malaysia, Indonesia, China, Australia, Korea

14（Note） Net sales by region are determined based upon the locations of the customers. Therefore, thisinformation is different from the net sales for geographic segments, which are determined based uponwhere the sales originated.

(1,507 )Identifiable Assets

Thousands ofMillions of yen U.S. dollars¥203,070

Eliminations

Consolidated

2008

In the fiscal year 2008, the Company consolidated AI
SOLUTIONS CORPORATION by the acquisition of investments.
The related assets and liabilities at the date of acquisition of AI
SOLUTIONS CORPORATION, the acquisition cost of investmentsof AI SOLUTIONS CORPORATION and the net expenses for theacquisition are summarized as follows.

Japan

Asia and others

Japan

2007

StatusNet Sales

Net sales

Unaffiliated customers

Thousands of
U.S.dollars

Millions of yen

15. Acquisition of investments
in newly consolidated subsidiaries

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices andoverall costs.

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices and（¥=Million, US$=Thousand）

StatusName

Address

Subsidiary
ToshibaMinato-ku,
of theSolutionsparentTokyo
Corporationcompany

Capital（Millions ofyen）

Business

Percentage ofvoting rights
held （%）

20,000Development, designing,
manufacturing, sales
and maintenance ofcomputer systems andcommunication systems,
etc.

None

None

CapitalBusiness

Percentage ofvoting rights
held （%）

Subsidiary
Toshibaof theMinato-ku,
CapitalparentTokyo
Corporationcompany\100（$998）

Financing of
TOSHIBA Groupdomestic companies

None

Name

Relationship

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Address

StatusTransactions

Sales of document
Sales of ourprocessing andproducts
telecommunicationequipments, etc.

Transaction
Amounts（Millions ofyen）Account
item

Balance at
Fiscal Year
End （Millionsof yen）

7,897

Trade notes
and accountreceivable

6,684

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices andoverall costs.

Dispatch of
Business
executive
Relationshipofficers, etc.

None

Deposits offunds

Transactions

Transaction
Amounts

Deposits of funds*1

Account
item

Balance at
FiscalYear EndCash and\31,796Cash（$317,357）
equivalents

With regard to the amounts above, Transaction Amounts include consumption taxes and Balance
at Fiscal Year End doesn't include them.
*1 Concerning Deposits of funds, it's difficult to figure out Transaction Amounts because fundsettlement is performed whenever needed. Therefore, only Balance at Fiscal Year End isstated.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

15

（¥=Million, US$=Thousand）

Status

Subsidiaryof theparentcompanyName

Toshiba
Singapore
Pte. Ltd.

Capital(Thousands ofSingapore dollars)

Address

Percentage ofvoting rights
held （%）

Business

Sales and maintenance ofaudio visual equipment,
S$11,600
personal computers,
Singapore（US$8,401） document processing andtelecommunication equipments,
etc.

None

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

None

Transaction
Amounts

Transactions

Account
item

Balance at
FiscalYear End

Trade notes\10,673\3,161and account（$106,528）（$31,550）
receivable

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices andoverall costs.

17. Cash Dividends（A）Cash dividends for the year ended March 31, 2007
（1） Cash dividends paid
Type of shares

General shareholders' meeting
Common stock
held on June 29, 2006
Board of directors
Common Stockheld on October 31, 2006

Total amount ofdividends（Millions of yen）

Dividends per
share
（yen）

\1,395\1,389Record date

Effective date\5

March, 31,
2006

June 29, 2006
（After generalshareholders' meeting）\5

September 31,
2006

December 8, 2006

（2） Year end dividends of the following fiscal year
Type of shares

Board of directors
Common stock
held on April 27, 2007

Total amount ofdividends(Millions of yen)

Dividend
resource\1,666

Retainedearnings

Dividends per share Record Effective
（yen)
date
date
\6

March, 31, June 7,
2007
2008

（B）Cash dividends for the year ended March 31, 2008
（1） Cash dividends paid
（resolution）

Type of shares

Board of directors held on
Common stock
April 27, 2007
Board of directors
Common Stockheld on October 31, 2007

（resolution）

Total amount ofdividends(Millions of yen)

Dividends per
share
(yen)

\1,666\6\1,527\5.5

Total amount ofdividends
Type of shares(Thousands of
U.S.dollars)

Board of directors held on
Common stock
April 27, 2007
Board of directors
Common Stockheld on October 31, 2007

Record date
March, 31,
2007
September
31,2007

Dividends per
share(dollar)$16,628$0.06$15,241$0.05

Record date

Effective dateJune 7, 2007
December 3, 2007

Total amount ofType of shares dividends(Millions of yen)

Board of directors
Common stock
held on April 25, 2008

(resolution)\1,804

Total amount ofdividends
Type of shares(Thousands of
U.S.dollars)

Board of directors
Common stock $18,006
held on April 25, 2008
16

Dividend
resource
Retainedearnings

Dividend
resource
Retainedearnings(Resolution at the board of directors meeting held on June 26, 2008)
Date resolution passed
Qualified beneficiaries
Type of shares for which new
subscription rights offered

June 26,2008
18 the Company's directors andcorporate officers
Common Stock

Unaffiliated customers
Intersegment
Total
Unaffiliated customers

December 3, 2007

March, 31, June 2,
2008
2008

Dividends per share Record Effective(dollar)
date
date
$0.06

1,827,647

264,154

2,636,531

Unaffiliated customers

45,949458,619

Intersegment

3,365

33,586

Total

49,314492,205

2,582

25,771

Auto ID & Printer Business Group

Other
Unaffiliated customers

Subscription rights exercise period
Conditions for exercising
subscription rights

From August 2, 2008 to August 1, 2038
Subscription rights may be exercised ina lump sum within expiration
cycle and 10 days after a beneficiary
resigns from directors or
corporate officers.
Concerning acquisition of sharesubscription rights from transfer,approval of the Company's board of
directors is required.

313

3,124

2,895

28,895

Eliminations(12,883 )(128,586 )Consolidated\492,970$4,920,351

Retail Solution Business Group\173,160$1,728,316

Document Systems Business Group

260,065

2,595,718

Auto ID & Printer Business Group

43,681

435,982

Other

2,873

28,676

Eliminations(12,883 )(128,586 )Consolidated\466,896$4,660,106

Retail Solution Business Group

\9,952$99,331

Document Systems Business Group

10,467

104,472

Auto ID & Printer Business Group

5,633

56,223

Other

23

230

Eliminations--

Consolidated\26,075$260,256

Operating Expenses

Operating Income

Identifiable Assets
Retail Solution Business Group\71,618$714,822

Document Systems Business Group

177,440

1,771,035

Auto ID & Printer Business Group

29,259292,035

Other

400

3,992

35,183351,163\313,900$3,133,047

Retail Solution Business Group

\2,743$27,378

Document Systems Business Group

10,308102,885

Auto ID & Printer Business Group

698

6,967

Other

72

718

\13,821$137,948

Retail Solution Business Group

\2,894$28,885

Document Systems Business Group

11,404

113,824

Auto ID & Printer Business Group

771

7,695

Other

37

370

\15,106$150,774

Corporate and Eliminations
Consolidated

June 7, 2007

Dividends per share Record Effective
(yen)
date
date
\6.5

28,216

183,11263,659Total

New Business groups and main products are as follows.
March, 31,
2007
September
31,2007$1,799,431

2,827

2,700,190\1 (Note 2)

Effective April 1, 2008, the Company changed its businesssegment. Corresponding to the changes in the businesscircumstances, the Company shifted from entity-based
segmentation to business-line segmentation, aiming at more
flexible business operation. The Company aims to expand businessmore with this opportunity.

\180,285

270,532

Exercise price（B）Change in Business Segment

2008

6,378

Intersegment（Notes）
1. The Company may appropriately adjust the numbers of shares to a reasonable extent
in the event of a share split, reverse split of shares, a merger of the Company withanother company , a company split or in any other similar event where an adjustmentof the number of shares shall be required.
2. The amount to be incorporated in capital upon the exercise of the share acquisitionrights shall be the amount per share to be issued or transferred by the exercise of
the share acquisition rights (the "Exercise price") multiplied by the number of shares
under the share acquisition rights. The Exercise price shall be one yen.

2008

Document Systems Business Group

83,000 (Note 1)

Details regarding transfer of sharesubscription rights

Thousands of
U.S.dollars

Retail Solution Business Group

Maximum numbers of shares

Effective date（2） Year end dividends of the following fiscal year
(resolution)

After the general shareholders' meeting held on June 26, 2008,
the stock option plan was adopted as compensation for theCompany's directors and corporate officers (except outside
directors and corporate auditors).
The Company passed the resolution to issue share acquisitionrights by this stock option plan at the board of directors meeting.
The resolution is summarized as follows.

Millions of yen

Net Sales

Total

With regard to the amounts above, Transaction Amounts include consumption taxes and Balance
at Fiscal Year End doesn't include them.

（resolution)（A）Stock Option Plan

Intersegment

Sales of document
Sales of ourprocessing andproducts
telecommunicationequipments, etc.

(resolution)

18. Subsequent Event

March, 31, June 2,
2008
2008

（1）Retail Solution Business GroupPOS systems, Cash register, Scales, etc.
（2） Document Systems Business Group
MFPs, Facsimiles, Inkjet heads, etc.

Depreciation and Amortization

Consolidated（3） Auto-ID & Printer Business Group
Bar-code systems, RFID systems, Printers, Specialized terminals,
etc.
The business segment information for the year ended March 31,
2008, under the new business segmentation is as follows.

Capital Expenditures

Consolidated

17

（¥=Million, US$=Thousand）

Status

Subsidiaryof theparentcompanyName

Toshiba
Singapore
Pte. Ltd.

Capital(Thousands ofSingapore dollars)

Address

Percentage ofvoting rights
held （%）

Business

Sales and maintenance ofaudio visual equipment,
S$11,600
personal computers,
Singapore（US$8,401） document processing andtelecommunication equipments,
etc.

None

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

None

Transaction
Amounts

Transactions

Account
item

Balance at
FiscalYear End

Trade notes\10,673\3,161and account（$106,528）（$31,550）
receivable

Policy for determining trade terms and other related matters
As in the case of general trade terms, sales of products are determined from market prices andoverall costs.

17. Cash Dividends（A）Cash dividends for the year ended March 31, 2007
（1） Cash dividends paid
Type of shares

General shareholders' meeting
Common stock
held on June 29, 2006
Board of directors
Common Stockheld on October 31, 2006

Total amount ofdividends（Millions of yen）

Dividends per
share
（yen）

\1,395\1,389Record date

Effective date\5

March, 31,
2006

June 29, 2006
（After generalshareholders' meeting）\5

September 31,
2006

December 8, 2006

（2） Year end dividends of the following fiscal year
Type of shares

Board of directors
Common stock
held on April 27, 2007

Total amount ofdividends(Millions of yen)

Dividend
resource\1,666

Retainedearnings

Dividends per share Record Effective
（yen)
date
date
\6

March, 31, June 7,
2007
2008

（B）Cash dividends for the year ended March 31, 2008
（1） Cash dividends paid
（resolution）

Type of shares

Board of directors held on
Common stock
April 27, 2007
Board of directors
Common Stockheld on October 31, 2007

（resolution）

Total amount ofdividends(Millions of yen)

Dividends per
share
(yen)

\1,666\6\1,527\5.5

Total amount ofdividends
Type of shares(Thousands of
U.S.dollars)

Board of directors held on
Common stock
April 27, 2007
Board of directors
Common Stockheld on October 31, 2007

Record date
March, 31,
2007
September
31,2007

Dividends per
share(dollar)$16,628$0.06$15,241$0.05

Record date

Effective dateJune 7, 2007
December 3, 2007

Total amount ofType of shares dividends(Millions of yen)

Board of directors
Common stock
held on April 25, 2008

(resolution)\1,804

Total amount ofdividends
Type of shares(Thousands of
U.S.dollars)

Board of directors
Common stock $18,006
held on April 25, 2008
16

Dividend
resource
Retainedearnings

Dividend
resource
Retainedearnings(Resolution at the board of directors meeting held on June 26, 2008)
Date resolution passed
Qualified beneficiaries
Type of shares for which new
subscription rights offered

June 26,2008
18 the Company's directors andcorporate officers
Common Stock

Unaffiliated customers
Intersegment
Total
Unaffiliated customers

December 3, 2007

March, 31, June 2,
2008
2008

Dividends per share Record Effective(dollar)
date
date
$0.06

1,827,647

264,154

2,636,531

Unaffiliated customers

45,949458,619

Intersegment

3,365

33,586

Total

49,314492,205

2,582

25,771

Auto ID & Printer Business Group

Other
Unaffiliated customers

Subscription rights exercise period
Conditions for exercising
subscription rights

From August 2, 2008 to August 1, 2038
Subscription rights may be exercised ina lump sum within expiration
cycle and 10 days after a beneficiary
resigns from directors or
corporate officers.
Concerning acquisition of sharesubscription rights from transfer,approval of the Company's board of
directors is required.

313

3,124

2,895

28,895

Eliminations(12,883 )(128,586 )Consolidated\492,970$4,920,351

Retail Solution Business Group\173,160$1,728,316

Document Systems Business Group

260,065

2,595,718

Auto ID & Printer Business Group

43,681

435,982

Other

2,873

28,676

Eliminations(12,883 )(128,586 )Consolidated\466,896$4,660,106

Retail Solution Business Group

\9,952$99,331

Document Systems Business Group

10,467

104,472

Auto ID & Printer Business Group

5,633

56,223

Other

23

230

Eliminations--

Consolidated\26,075$260,256

Operating Expenses

Operating Income

Identifiable Assets
Retail Solution Business Group\71,618$714,822

Document Systems Business Group

177,440

1,771,035

Auto ID & Printer Business Group

29,259292,035

Other

400

3,992

35,183351,163\313,900$3,133,047

Retail Solution Business Group

\2,743$27,378

Document Systems Business Group

10,308102,885

Auto ID & Printer Business Group

698

6,967

Other

72

718

\13,821$137,948

Retail Solution Business Group

\2,894$28,885

Document Systems Business Group

11,404

113,824

Auto ID & Printer Business Group

771

7,695

Other

37

370

\15,106$150,774

Corporate and Eliminations
Consolidated

June 7, 2007

Dividends per share Record Effective
(yen)
date
date
\6.5

28,216

183,11263,659Total

New Business groups and main products are as follows.
March, 31,
2007
September
31,2007$1,799,431

2,827

2,700,190\1 (Note 2)

Effective April 1, 2008, the Company changed its businesssegment. Corresponding to the changes in the businesscircumstances, the Company shifted from entity-based
segmentation to business-line segmentation, aiming at more
flexible business operation. The Company aims to expand businessmore with this opportunity.

\180,285

270,532

Exercise price（B）Change in Business Segment

2008

6,378

Intersegment（Notes）
1. The Company may appropriately adjust the numbers of shares to a reasonable extent
in the event of a share split, reverse split of shares, a merger of the Company withanother company , a company split or in any other similar event where an adjustmentof the number of shares shall be required.
2. The amount to be incorporated in capital upon the exercise of the share acquisitionrights shall be the amount per share to be issued or transferred by the exercise of
the share acquisition rights (the "Exercise price") multiplied by the number of shares
under the share acquisition rights. The Exercise price shall be one yen.

2008

Document Systems Business Group

83,000 (Note 1)

Details regarding transfer of sharesubscription rights

Thousands of
U.S.dollars

Retail Solution Business Group

Maximum numbers of shares

Effective date（2） Year end dividends of the following fiscal year
(resolution)

After the general shareholders' meeting held on June 26, 2008,
the stock option plan was adopted as compensation for theCompany's directors and corporate officers (except outside
directors and corporate auditors).
The Company passed the resolution to issue share acquisitionrights by this stock option plan at the board of directors meeting.
The resolution is summarized as follows.

Millions of yen

Net Sales

Total

With regard to the amounts above, Transaction Amounts include consumption taxes and Balance
at Fiscal Year End doesn't include them.

（resolution)（A）Stock Option Plan

Intersegment

Sales of document
Sales of ourprocessing andproducts
telecommunicationequipments, etc.

(resolution)

18. Subsequent Event

March, 31, June 2,
2008
2008

（1）Retail Solution Business GroupPOS systems, Cash register, Scales, etc.
（2） Document Systems Business Group
MFPs, Facsimiles, Inkjet heads, etc.

Depreciation and Amortization

Consolidated（3） Auto-ID & Printer Business Group
Bar-code systems, RFID systems, Printers, Specialized terminals,
etc.
The business segment information for the year ended March 31,
2008, under the new business segmentation is as follows.

Capital Expenditures

Consolidated17

18