ANNUAL REPORT

2 0 11For the Year Ended March 31, 2011

Financial Highlights
Years ended March 31

Thousands of
U.S.dollars

Millions of yen
Consolidated
Net sales
Operating income

2007

2008

2009

2010

2011

2011

¥510,846¥492,970¥422,601¥364,578¥362,302$4,357,210

22,671

26,075

10,123

9,725

13,997

168,334

Net income

10,763

13,382

2,634

4,144

6,510

78,292

Total assets

358,253

313,900

281,732

289,518

288,592

3,470,740

Net assets

158,813161,169

142,034

142,692

140,519

1,689,946

Yen

U.S.dollars

Per share data:
Net income Basic¥38.72¥48.20¥9.53¥15.06¥23.71$0.285

Total shareholders' equity

494.73504.00465.63474.85473.44

5.694
Thousands of
U.S.dollars

Millions of yen
Non-Consolidated

2007

2008

2009

2010

2011

2011

¥297,996¥266,537¥237,364¥211,345¥221,674$2,665,953

Operating income

4,299

5,008

(1,477)

2,544

2,906

34,949Net income

6,266

7,777

4,722

5,476

4,476

53,830Net sales

Common stock

39,971

39,971

39,971

39,971

39,971

480,710

Total assets

237,996

204,069

200,658

210,729

221,925

2,668,972

Net assets

113,039

117,124

116,766

122,704

124,888

1,501,960

Yen

U.S.dollars

Per share data:
Net income Basic¥22.54¥28.01¥17.09¥19.89¥16.30$0.196

Cash dividends

11.00

12.00

5.00

5.00

7.00

0.084

Total shareholders' equity

407.11421.99424.09445.75455.03

5.472

The dollar amounts in this report represent translations of yen, for convenience only, at the rate of ¥83.15=US$1.00, the exchange rate
prevailing on March 31, 2011.

CONTENTS

Financial Highlights..................................................................................................................................1
Business Review.......................................................................................................................................2
Consolidated Balance Sheets....................................................................................................................6
Consolidated Statements of Operations....................................................................................................8
Consolidated Statements of Comprehensive Income...............................................................................8
Consolidated Statements of Changes in Net Assets.................................................................................9
Consolidated Statements of Cash Flows.................................................................................................10
Notes to Consolidated Financial Statements..........................................................................................11Business Review

Business Overview in the Consolidated Fiscal Year 2010
As for the global economy in the consolidated fiscal year 2010, the entire Asian economy expanded, while a full-scaleeconomic recovery still continued to elude the US, along with credit uncertainty in Europe, the global economy resulted ina gradual recovery. The Japanese economy remained on a recovery trend but fell into an unprecedented crisis due to the
influence of the Great East Japan Earthquake occurred in March 2011.
Under such circumstances, by making full use of its power, the Toshiba Tec Group was committed to providing totalsolutions, developing new products such as Environmentally Conscious Products (ECPs), and expanding its businessscale by focusing on emerging countries and areas expected to grow, along with increasing earning power by streamlining
resources.
From April 1, 2010, we devoted ourselves to further developing business operations centering on the system solutions
business, document solutions business and international POS, AI & printer business, with the aim of expanding businessareas at the earliest date possible and establishing ourselves as a total solution provider.
Sales steadily increased initially, but due to the Great East Japan Earthquake and fluctuations in exchange rates, finallyamounted to 362,302 millions of yen, a 1% decrease over the previous consolidated fiscal year. Our efforts to enhanceearning potential resulted in an increase in operating income of 44% over the previous consolidated fiscal year to 13,996
millions of yen, an increase in ordinary income of 47% over the previous consolidated fiscal year to 10,605 millions of yen,
and an increase in net income of 57% to 6,510 millions of yen.

The business highlight for each report segment
The business highlights for each report segment in the consolidated fiscal year 2010 are described below.
System Solutions Business
The system solutions business that deals with POS systems for the Japanese market, MFPs, Automatic Identification
Systems and related products, was committed to developing new products appropriate to market needs, expanding salesof core products, and promoting area marketing, along with streamlining sales and service systems at home to strengthena high-profit structure under the severe business environment where weak demand continued due to restricted capital
investment in the retail industry.
However, our customers and markets, especially in the Tohoku area, as well as our business were worst affected by theGreat East Japan Earthquake.
Steady growth in sales of POS systems for mass-sales shops despite the influence of the earthquake resulted in an increasein sales of overall POS systems.
Other products also witnessed an increase in sales, since sales of automatic identification systems experienced a steady
growth.
As a result, sales of the system solutions business increased 2% over the previous consolidated fiscal year to 167,478
millions of yen, while operating income increased 61% to 5,740 millions of yen from the previous consolidated fiscal year.
Toshiba Tec Corporation had Kokusai Chart Corporation as its subsidiary by making a tender offer in March 2011, with theaim of maximizing corporate value by incorporating and fusing our bar code printer technology and solution proposals withpaper processing technology of Kokusai Chart.
Document Solutions Business
The document solutions business that deals with MFPs and inkjet print heads for markets outside Japan, faced a difficult
business climate marked by the appreciation of the yen and intense competition with rivals. Even under such circumstances,
this segment focused efforts on further expanding sales of strategic products including high-speed and middle-speed fullcolor MFPs, while further expanding sales and improving management efficiency in emerging markets.
Sales of MFPs decreased due to fluctuations in exchange rates despite an increase in Asia and steady growth in North
America and Europe.
Other products witnessed an increase in sales, since sales of inkjet print heads significantly increased.
As a result, sales of the document solutions business decreased 4% over the previous consolidated fiscal year to 165,345
millions of yen, while operating income increased by 8 millions of yen over the previous consolidated fiscal year to 4,337
millions of yen.
International POS, AI & Printer Business
The international POS, AI & printer business that deals with POS systems for markets outside Japan, Automatic
Identification Systems and printers, devoted itself to developing new business areas, sales routes and customers, expanding
sales by promoting alliance strategies as well as improving profitability by enhancing cost competitiveness, in a severebusiness environment resulting from continuous intense competition with rivals and a negative impact due to fluctuations in
exchange rates.
POS systems and Automatic Identification Systems witnessed an increase in sales, especially in Asia.
ODM such as printers witnessed an increase in sales despite fluctuations in exchange rates.
As a result, sales of the international POS, AI & printer business increased 5% over the previous consolidated fiscal year
to 41,826 millions of yen, while operating income increased 113% to 3,918 millions of yen from the previous consolidated
fiscal year.
Notes: (1) Automatic Identification (AI) Systems refer to systems, which contain hardware and software to automatically retrieve,
identify and manage data, from bar codes and IC tags.
(2) ODM refers to designing and manufacturing products with customer brand.

Key Achievements for 2010
■ No.1 share POS terminal market ('09) in Japan for eight consecutive years.
[Unit share of Japanese market: 42%]
■ No.1 share in A3 MFP market in China for eleven consecutive years.
[Unit share of Chinese market: 18%]
Source: “China Copier&MFP Market Report 2011 July” published by Key Research Inc./A3
Copier&MFP market■ Kokusai Chart Corporation becomes a Toshiba Tec subsidiary inMarch 2011.

Forecast for fiscal year 2011
As for the future global economy, Asia's economic expansion is expected to continue and the US economy is expected toremain on a recovery trend. The European economy is concerned about a weak recovery due to budget austerity although
the German economy is expected to grow steadily. Although the Japanese economy was expected to recover, it is expected
to continue to be in a difficult situation because economic activities slow down and consumer spending will remain weak
due to the influence of the Great East Japan Earthquake.
Under such circumstances, by making full use of its power, the Toshiba Tec Group is committed to providing totalsolutions, developing and introducing differentiated products such as Environmentally Conscious Products (ECPs) andintegrated products, and expanding its business scale by focusing on emerging countries and areas expected to grow, alongwith increasing earning power by streamlining resources and assets together.
From April 1, 2011, we have established new global solutions business by merging the document solutions business andinternational POS, AI & printer business, with the aim of further streamlining and expanding international operations. We
are committed to further developing business operations in markets centering on both the system solutions business and the
document solutions business
Major measures on a segment basis for fiscal year 2011 ending March are as follows:• System Solutions Business
The system solutions business strives to promote area marketing, develop new products appropriate to market needs, andenhance service and supply business, toward expanding sales of POS systems, MFPs, automatic identification systems suchas bar code systems and RFID systems, and related products into the Japanese market as well as providing total solutions.
The system solutions business is also committed to further streamlining sales and service systems at home to strengthen ahigh-profit structure.

• Global Solutions Business
The global solutions business strives to develop and introduce strategic products, as well as expand sales and marketingin response to the region, optimize sales and service channels, toward expanding sales of POS systems, MFPs, automatic
identification systems such as bar code systems and RFID systems, and related products into markets outside Japan as wellas providing total solutions, which capitalize on a wide range of products and markets. The global solutions business isalso committed to expanding business by enhancing operations in emerging countries and areas.
Notes: RFID refers to a system, which identifies and manages articles by attaching an IC tag to articles and moving the tag to the reader
device.

The consolidated forecasts for fiscal year 2011
The consolidated forecasts for fiscal year 2011 are expected as follows based on the aforementioned measures.

Forecasts for fiscal year 2011
Net sales

375,000 millions of yen

Operating income

15,000 millions of yen

Ordinary incomes

13,500 millions of yen

Net income for the fiscal year

7,000 millions of yen

Expected situation per report segment for fiscal year 2011
New segments for reporting
Parenthesis: Relative to fiscal 2010 ended March
Net sales

Operating income

System Solutions Business

174,700 millions of yen (104%)

5,900 millions of yen (102%)

Global Solutions Business

218,700 millions of yen

9,100 millions of yen

Eliminations-18,400 millions of yen

Total

375,000 millions of yen (104%)

(-)

(-)

15,000 millions of yen (107%)

For forecasts for fiscal year 2011 categorized by segment for reporting up till fiscal year 2010, refer to the following.
Old report segments
Parenthesis: Relative to fiscal 2010 ended March
System Solutions BusinessNet sales

Operating income

174,700 millions of yen (104%)

5,900 millions of yen (102%)

Document Solutions Business
170,000 millions of yen (103%)International POS, AI & Printer48,700 millions of yen (117%)
Business
Eliminations-18,400 millions of yen

4,700 millions of yen (109%)

Total

15,000 millions of yen (107%)

375,000 millions of yen (104%)

4,400 millions of yen (113%)-

For the above-mentioned forecasts, the exchange rates are 85 yen per dollar and 110 yen per euro.

Notes: Forecasts are based on the Toshiba Tec Group's currently available data and certain assumptions considered rational, and theactual results are subject to change due to various factors.

Consolidated Balance Sheets
March 31, 2011 and 2010

Thousands of
U.S.dollars (Note 1)

Millions of yen

ASSETS

2011

2010

2011

Cash and cash equivalents¥92,928¥88,669$1,117,595

Trade notes and accounts receivable

54,52755,985655,766

Inventories

34,27831,019412,243

Current assets

Deferred income taxes (Note 10)

7,115

7,625

85,568Prepaid expenses and other current assets

13,102

13,747

157,571

Allowance for doubtful accounts(1,330)(1,533)(15,995)

Total current assets

200,620

195,5122,412,748

Buildings and structures

29,29331,075352,291

Machinery and equipment

30,48531,675366,626

Tools, furniture and fixtures

51,57756,173620,289

Land

2,760

2,796

33,193Fixed assets
Property, plant and equipment:

Lease Assets
Less accumulated depreciation
Construction in progress

8,264

9,325

99,387(94,116)(100,630)(1,131,882)

1,264

736

15,201

29,52731,150355,105

19,40523,814

233,373

Intangible assets:
Goodwill
Other intangible assets

5,595

5,385

67,28825,00029,199300,661

39

42

469

Investments and other assets:
Investment securities: (Note 14)
Unconsolidated subsidiaries and affiliates

3,400

3,458

40,890

Deferred income taxes (Note 10)

Other21,443

21,697

257,883

Other investments and other assets

8,624

8,528

103,716

Allowance for doubtful accounts

Total fixed assets
Total assets

(61)

(68)

(732)

33,44533,657402,226

87,972

94,006

1,057,992¥288,592¥289,518$3,470,740

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

Thousands of
U.S.dollars (Note 1)

Millions of yen

LIABILITIES AND NET ASSETS

2011

2010

2011

Trade notes and accounts payable¥43,002¥43,846$517,162

Short-term loans (Note 3)

10,863

15,223

130,643

6

1

72

Lease liabilities

2,898

1,682

34,853

Accrued income and other taxes

3,392

994

40,794Current liabilities

Current portion of long-term debt (Note 3)

Accrued bonuses to directors and corporate auditors
Other current liabilities
Total current liabilities

66

48

794

48,42746,067582,405

108,654

107,861

1,306,723

1

2

12

Long-term liabilities
Long-term debt (Note 3)
Lease liabilities

2,689

4,242

32,339Accrued retirement benefits (Note 4)

34,30432,030412,556

Allowance for retirement benefits for directors and corporate auditors

192

217

2,309

2,233

2,474

26,855

Total long-term liabilities

39,41938,965474,071

Total liabilities

148,073

146,826

1,780,794

39,971

39,971

480,710

Capital surplus

52,98852,988637,258

Retained earnings

56,012

51,392

673,626(5,691)-(68,443)

Other long-term liabilities

Contingent liabilities (Note 5)
Shareholders' equity
Common stock
Authorized-1,000,000,000 shares
Issued- 288,145,704 shares

Less treasury stock, at cost:
13,988,000 shares in 201113,103,000 shares in 2010-

(5,424)-

Total shareholders' equity

143,280

138,927

1,723,151

224

349

2,694

Accumulated other comprehensive income
Unrealized holding gains on securities
Net deferred profits on hedges

(11)

0

(132)

(13,694)(8,672)(164,691)(13,481)(8,323)(162,129)

135

103

1,624

Minority interest in consolidated subsidiaries

10,585

11,985

127,300

Net assets

140,519

142,692

1,689,946

Total liabilities and Net assets¥288,592¥289,518$3,470,740

Foreign currency translation adjustments
Total accumulated other comprehensive income
Share subscription rightsConsolidated Statements of Operations
Years ended March 31, 2011 and 2010

Thousands of
U.S.dollars (Note 1)

Millions of yen

2011

2010

2011

Net sales¥362,302¥364,578$4,357,210

Cost of sales (Note 9)

192,322

193,282

2,312,953

169,980

171,2962,044,257

155,983

161,571

1,875,923

13,997

9,725

168,334

Gross profit
Selling, general and administrative expenses (Note 6 and 9)
Operating income
Non-operating income and expenses:
Interest and dividend income

513

490

6,170

Interest expense

(806)

(818)

(9,693)

Restructuring cost

(591)

(1,511)(7,108)Other, net (Note 7)(2,942)(2,160)(35,382)

Income before income taxes and minority interest

10,171

5,726

122,321

4,550

2,070

54,720

Income taxes (Note 10):
Current
Deferred

(375)

467

(4,510)

Income before minority interest

5,996

3,189

72,111

(514)

(955)

(6,181)¥6,510¥4,144$78,292

Minority interest in income of consolidated subsidiaries
Net income

Yen

Per share data

U.S.dollars

2011

2010

2011

Net income-Basic¥23.71¥15.06$0.285

Cash dividends

¥7.00

¥5.00

$0.084

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

Consolidated Statements of Comprehensive Income
Years ended March 31, 2011

Millions of yen

Income before minority interests

Thousands of
U.S.dollars (Note 1)

2011

2011

¥5,996$72,111(125)(1,503)

Other comprehensive income
Net unrealized holding gain on securities
Net deferred profits on hedges
Foreign currency translation adjustments
Minimum pension adjustment
Total other comprehensive income (Note 8)
Comprehensive income

(12)

(144)

(6,213)(74,721)66

793(6,284)(75,575)¥( 288)$(3,464)

1,385

16,656(1,673)(20,120)(breakout)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interestsConsolidated Statements of Changes in Net Assets
Years ended March 31, 2011 and 2010

Millions of yen

Common stock

Balance at March 31, 2010
Cash dividends (Note 20)
Net income for the year
Purchases of treasury stock
Retirement of treasury stock
Other, net
Balance at March 31, 2011

¥39,971¥39,971

Shareholder's equity
RetaindTreasury stock, Total shareholder'sCapital surplus
earnings
at costequity¥52,988¥52,988¥51,392(1,924)6,510
34¥56,012¥(5,424)(277)
10¥(5,691)¥138,927(1,924)
6,510
(277)
10
34
¥143,280

Millions of yen

Balance at March 31, 2010
Cash dividends (Note 20)
Net income for the year
Purchases of treasury stock
Retirement of treasury stock
Other, net
Balance at March 31, 2011

Accumulated other comprehensive income
Net unrealized holding Net deferred profits on
Foreign currency Total accumulated othergain on securities
hedgestranslation adjustments comprehensive income

¥349
(125)
¥224

¥0
(11)
¥(11)

¥(8,672)(5,022)¥(13,694)¥(8,323)(5,158)¥(13,481)

Share
subscription
rights

¥103
32
¥135

Minority
interests

Net assets¥11,985(1,400)¥110,585¥142,692(1,924)
6,510
(277)
10
(6,492)¥140,519

Thousands of U.S. dollars

Shareholder's equity

Balance at March 31, 2010
Cash dividends (Note 20)
Net income for the year
Purchases of treasury stock
Retirement of treasury stock
Other, net
Balance at March 31, 2011

Common stock

Capital surplus

Retaindearnings

Treasury stock,at cost$480,710$480,710$637,258$637,258$618,064(23,139)
78,292409$673,626$(65,232)(3,331)
120$(68,443)

Total
shareholder'sequity$1,670,800(23,139)
78,292(3,331)120
409$1,723,151

Thousands of U.S. dollars

Balance at March 31, 2010
Cash dividends (Note 20)
Net income for the year
Purchases of treasury stock
Retirement of treasury stock
Other, net
Balance at March 31, 2011

Accumulated other comprehensive income
Net unrealized holding Net deferred profits on Foreign currency Total accumulated otherhedgestranslation adjustments comprehensive income
gain on securities$4,197(1,503)$2,694$0(132)$(132)$(104,293)(60,398)$(164,691)$(100,096)(62,033)$(162,129)

Sharesubscription
rights$1,238386$1,624

Minority
interests

Net assets$144,137(16,837)$127,300$1,716,079(23,139)
78,292(3,331)
120(78,075)$1,689,946

Millions of yen

Shareholder's equity

Balance at March 31, 2009
Cash dividends (Note 20)
Net income for the year
Purchases of treasury stock
Retirement of treasury stock
Other, net
Balance at March 31, 2010

Common stock

Capital surplus

Retaindearnings

Treasury stock,at cost¥39,971¥39,971¥52,9862¥52,988¥47,2294,144
19¥51,392¥(5,363)(70)
9¥(5,424)

Total
shareholder'sequity¥134,823
4,144
(70)
11
19
¥138,927

Millions of yen

Balance at March 31, 2009
Cash dividends (Note 20)
Net income for the year
Purchases of treasury stock
Retirement of treasury stock
Other, net
Balance at March 31, 2010

Accumulated other comprehensive income
Net unrealized holding Net deferred profits on Foreign currency Total accumulated othergain on securities
hedgestranslation adjustments comprehensive income

¥164
185
¥349

¥(279)
279¥0¥(6,557)(2,115)¥(8,672)¥(6,672)(1,651)¥(8,323)

Share
subscription
rights

¥46
57
¥103

Minority
interests

Net assets¥13,837(1,852)¥11,985¥142,034
4,144
(70)
11
(3,427)¥142,692

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
Numbers of shares in issue: 288,145,704 shares in fiscal year 2010Consolidated Statements of Cash Flows
Years ended March 31, 2011 and 2010

Millions of yen

Cash flows from operating activities
Income before income taxes and minority interest
Adjustment to reconcile income before income taxes andminority interest to net cash provided by operating activities:
Depreciation and amortization
Allowance for doubtful accounts
Accrual for retirement benefits, less payments
Interest and dividend income
Interest expense
Loss on sales or disposal of fixed assets
Gain or loss on sales of investment securities
Write down of investment securities
Gain on reduction of accrued retirement benefits
Restructuring cost
Changes in assets and liabilities:
Notes and accounts receivable
Inventories
Notes and accounts payable
Other
Sub TotalInterest and dividend income received
Interest expense payments
Payments of extra pension for early retirement
Income taxes refund
Income taxes payments
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
Acquisition of investment securities
Acquisition of investments in newly consolidated subsidiaries (Note 12)
Proceeds from sales of investment securities
Payments for business acquisition
Payments of loan receivable
Proceeds from loan receivable
Other
Net cash used in investing activities
Cash flows from financing activities
Proceeds (Repayments) of short-term loans, net
Repayments of long-term debt
Repayments of Finance-Lease liabilities
Purchase of treasury stock
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
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2011

2010

2011

¥10,171¥5,726$122,321

13,518
(116)
1,760
(513)
806
243
(5)
41
(156)
591

17,255
(122)
1,641
(490)
818
144
(1)
44
1,511

162,574(1,395)
21,167(6,170)
9,693
2,922
(60)
493
(1,876)
7,108(1,735)(4,844)
2,978
3,030
25,769
513
(806)
(109)
636
(2,739)23,264

769
3,117
5,167
(5,288)30,291
482
(821)
(60)
1,071
(2,904)28,059(20,866)(58,256)
35,81536,440309,910
6,170(9,693)(1,311)
7,648(32,940)
279,784(5,579)1,161(2,371)
(190)
(979)
18
(32)
48
(8)
(7,932)(6,941)581(1,725)
(31)
5
(330)
(16)
44
294
(8,119)(67,096)
13,963(28,515)(2,285)(11,774)
216
(385)
577
(95)
(95,394)(4,054)(1)(2,238)(277)(1,924)(70)
11(8,553)(2,520)4,259
88,6693,508(1)(2,062)
(70)
(8)
(79)
10
1,298
(1,101)
20,137
68,532(48,755)(12)(26,915)(3,331)(23,139)(842)
132(102,862)(30,307)
51,221
1,066,374¥92,928¥88,669$1,117,595

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

10

Thousands of
U.S.dollars (Note 1)

Notes to Consolidated Financial Statements

1. Basis of Presenting Consolidated
Financial Statements
The consolidated financial statements of TOSHIBA TECCORPORATION (the “Company”) have been prepared inaccordance with accounting principles generally accepted inJapan, which are different in certain respects as to the applicationand disclosure requirements of International Financial ReportingStandards, 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 ¥83.15= US$1.00 prevailing as of March 31, 2011. The translation
should not be construed as a representation that the Japanese yen
could be converted into U.S. dollar at the above or any other rateof exchange.

2. Summary of Significant Accounting
Policies(A) Basis of Consolidation and Accounting ofInvestments in Affiliated Companies
The consolidated financial statements include the accounts of
the Company and its significant majority-owned subsidiaries(together the “Companies”). For the years ended March 31,
2011 and 2010, the accounts of 58 and 72 subsidiaries areconsolidated, respectively. All significant inter-company
transactions and accounts are eliminated in consolidation.
All assets and liabilities of the consolidated subsidiaries arerevaluated on acquisitions, if applicable. The difference between
the cost of investments in subsidiaries and the equity in theirassets and liabilities at the dates of acquisition is recognizedon goodwill in the consolidated balance sheet and principallyamortized by the straight-line method over 5 to 15 years.
The Company has no unconsolidated subsidiary for which
the equity method of accounting has been applied for the years
ended March 31, 2011 and 2010.
From the perspective of immateriality, the investments in theremaining unconsolidated subsidiaries and affiliated companies
are stated at cost.

as a component of “Accumulated other comprehensive income”
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,
net of taxes, presented as a component of “Accumulated othercomprehensive income” under Net Assets in the consolidatedbalance sheets. Cost of securities sold is determined by themoving average method.
Non-marketable securities classified as “Other securities”
are carried at cost, which is determined by the moving averagemethod. Supplies are principally stated at the latest purchase cost
method.

(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. Supplies
are principally stated at the latest purchase cost method.

(F) Property, Plant and Equipment and Depreciation

Certain subsidiaries have year end which differs from thatof the Company. As a result, adjustments have been made forany significant transactions that took place during the period
between the year end of the subsidiaries and the year end of theCompany.

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
and its domestic subsidiaries, and by the straight-line method
for the 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 13 years
Tools, furniture and fixtures 1 to 6 years(B) Foreign Currency Translation(G) Intangible Assets and Amortization

Revenue and expense accounts of foreign consolidated
subsidiaries are translated into yen using the annual averagerate during the year. The balance sheet accounts, except for thecomponents of net assets, are translated at the rate in effect at thebalance sheet date. The components of net assets are translated
at their historical rates. Translation adjustments are presented

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.

11

(H) Allowance for Doubtful Accounts(N) Derivative Financial Instruments

Allowance for doubtful accounts is provided in the amountsufficient to cover probable losses on collection. It consists ofindividually estimated uncollectible amounts and an amountcalculated using the rate of actual losses on collection in thepast.

The Company and certain subsidiaries have entered into
forward exchange contracts to hedge the risk of fluctuationin 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.

(I) Accrued Bonuses to Directors and Corporate
Auditors
The bonuses to directors and corporate auditors are accounted
for as an expense of the accounting period in which suchbonuses 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
obligation and the fair value of the pension plan assets, asadjusted for amortization of unrecognized actuarial gain or loss
and past service costs.

(K) Leases
The Companies lease certain equipment under non-cancelable
lease agreements referred to as finance leases. Prior to April
1, 2008, finance leases other than those which transfer theownership of the leased property to the Companies had been
primarily accounted for as operating leases. Depreciation at leaseassets are calculated by the straight-line method over the lease
period with no residual value.

(L) 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.
The Company and its wholly owned domestic subsidiaries filetheir consolidated tax return in Japan for the Corporation Tax
purpose.

(M) Consumption Taxes
Consumption taxes withheld from sales and paid uponpurchasing goods and services by the Companies are notincluded in revenues and expenses.

12(O) 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.

(P) Research and Development Expenses
Research and development costs are charged to income as
incurred.

(Q) 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.

(R) Accounting Standard for Construction Contracts
Effective for the year ended March 31, 2010, the Company
and its domestic subsidiaries adopted the “Accounting standards
for construction contracts” and “Implementation Guidance foraccounting standards for construction contracts”. This changein accounting had no impact on operating income and income
before income taxes and minority interest.

(S) Partial Amendments to Accounting Standard for
Retirement Benefits (Part 3)
Effective for the year ended March 31, 2010, the Company
and its domestic subsidiaries adopted the “Partial Amendments
to Accounting Standard for Retirement Benefits (Part3)”.As anactuarial gain or loss is amortized starting as an expense fromthe following year, this change in accounting had no impact on
operating income and income before income taxes and minority
interest. As the adoption of this accounting, an unrecognizedbalance of retirement benefit obligations is ¥364 millions as ofMarch 31, 2010.

(T) Application of Accounting Standard for Asset
Retirement Obligation
Effective for the year ended March 31, 2011, the Company
adopted the “Accounting Standard for Asset Retirement
Obligations” and the “Guidance on Accounting Standard for
Asset Retirement Obligations”. This change in accounting had
only minor impact on operating income, ordinary income andincome before income taxes for the year ended March 31, 2011.

(U) Application of Accounting Standard for Business
Combinations and Others
Effective for the year ended March 31, 2011, the Company
adopted the “Accounting Standard for Business Combinations”,
the “Accounting Standard for Consolidated Financial
Statements”, the “Partial Amendments to accounting Standard
for Research and Development Costs”, the “AccountingStandard for Business Divestitures”, the “Accounting Standard
for Equity Method of Accounting for Investments” and the“Guidance on Accounting Standard for Business Divestitures”.

(V) Change in Presentation (Consolidated Statementof Operations)
Effective for the year ended March 31, 2011, the “Company
adopted the rules stipulated in Cabinet Office Ordinances
Revising Some Portions of the Regulations for Financial
Statements” in line with the “Accounting Standard forConsolidated Financial Statements”. The Company newly
reported “Income before minority interests”(w) Additional Information
Effective for the year ended March 31, 2011, the Company
adopted the “Accounting Standard for Presentation ofComprehensive Income”. However, the amounts of “Valuationand translation adjustments” and “Total valuation and translation
adjustment” in the previous year are presented as “Accumulated
other comprehensive income” and “Total accumulated othercomprehensive income”, respectively.

3. Short-Term Loans and Long-Term Debt
The average interest rate for short-term loans outstanding at
March 31, 2011 and 2010 is 0.75% and 0.73%, respectively.
The long-term debt (including lease liabilities) at March 31,
2011 and 2010, consists of the following:Thousands of
U.S.dollars

Millions of yen

2011

2010

2011

Long-term debt:
Due serially through 2014, with interest
rate of 3.72%¥7
Less current portion
6
¥1

¥3
1
¥2

$84
72
$12

¥5,924
1,682¥4,242$67,192
34,853$32,339

Lease liabilities
Less current portion¥5,587
2,898¥2,689The aggregate annual maturities of long-term debt (excluding
the current portion) outstanding at March 31, 2011 are as
follows:
Year ending
March 3120132014 and thereafter

Millions of yen

1
0¥1

Thousands of
U.S.dollars

12
0
$12

The aggregate annual maturities of lease liabilities (excluding
the current portion) outstanding at March 31, 2011 are as
follows:
Year ending
March 31201320142015 and thereafter

Millions of yen

Thousands of
U.S.dollars

677
669
1,343
¥2,6898,142
8,046
16,151$32,339

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 entitledto lump-sum or annuity payments, the amounts of which are
determined by reference to their basic rates of pay, length ofservice, and the conditions under which termination occurs.
And a part of subsidiaries joins a multiemployer defined benefit
pension plans.
The Company and a part of domestic subsidiaries update aboutpension plan, after obtained consensus of labor and managementin Junuary 2011, and adopt "Cash Balance Plan" in April 2011.
The following table sets forth the funded status of the plans,
and the amounts recognized in the consolidated balance sheets asof March 31, 2011 and 2010 for the Companies' defined benefit
plans:
Millions of yen

Retirement benefit obligation
Plan assets
Unfunded retirement benefit obligation
Unrecognized actuarial gain or loss
Unrecognized past service cost
Net amount recognized in the
consolidated balance sheet
Accrued retirement benefit obligation

Thousands of
U.S.dollars

2011

2010

2011

¥(80,804)
36,133(44,671)
5,247
5,120

¥(78,835)
35,602(43,233)
3,905
7,298

$(971,786)
434,552(537,234)
63,103
61,575(34,304)¥(34,304)(32,030)¥(32,030)(412,556)$(412,556)

The components of retirement benefit expenses for the years
ended March 31, 2011 and 2010 are as follows:
Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain or loss
Amortization of past service cost
Total

Thousands of
U.S.dollars

2011

2010

2011

¥3,455
1,492(1,238)
1,422
1,210¥6,341¥3,6991,540(1,010)1,960
1,232¥7,421$41,552
17,943(14,889)
17,102
14,552$76,260

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, 2011 and 2010 were ¥236 millions($2,838 thousands) and ¥115 millions, respectively.

13

The assumption used in accounting for the above plans for theyear ended March 31, 2011 and 2010 are as follows:
2011

Discount rates
Expected return on assets
Amortization period of past service cost
Amortization period of actuarial gain or loss

2010

Mainly 2.0%
Mainly 2.0%
Mainly 4.0%
Mainly 4.0%
10 years Straight-line method 10 years Straight-line method
10 years Straight-line method 10 years Straight-line method

One company of the domestic companies joins a multiemployer
defind benefit pension plans.
Information on such fund as of and for the year ended March
31, 2011 is as follows:
Millions of yen

Thousands of
U.S.dollars

amount of pension assets¥67,950
amount of benefit obligation on pension financing
84,142amount of balance¥(16,192)$817,198
1,011,930$(194,732)

Reserve position of whole plan

Percentage of our required contribution to total institution

Main factor of above amount of balance is amortization of past
service cost (¥12,132 millions ($145,905 thousands)) and lack ofamount carried forward (¥4,060 millions ($48,827 thousands)).
Amortization period of past service cost is 20 years, using thestraight-line method.

5. Contingent liabilities
Contingent liabilities at March 31, 2011 and 2010 are as
follows:

Trade notes receivablediscounted or endorsed
Guarantees on employees' bank loans

Thousands of
U.S.dollars

2011

2010

2011

¥411
504

¥389
606

$4,943
6,061

6. Selling, General and Administrative
ExpensesMajor components of selling, general and administrative
expenses for the years ended at March 31, 2011 and 2010 are as
follows:
Millions of yen

Delivering expense
Advertising expense
Personal expense
Depreciation and amortization
Research and development expense
Other selling expense

14"Other, net" for the years ended March 31, 2011 and 2010,
consists of the following:Thousands of
U.S.dollars

Millions of yen
2011

Gain on sale of investments in securities
Loss on valuation of derivative
Loss on sales or disposals ofproperty, plant and equipment
Foreign exchange gain or loss
Gain on revision of retirement
benefit plan
Other, net

2010

2011

¥5
-

¥3
148

$60
-

(243)
(1,361)

(144)
(759)

(2,922)(16,368)

156(1,499)¥(2,942)(1,408)¥(2,160)

1,876(18,028)$(35,382)

8. Consolidated Statements ofComprehensive Income

1.3%

Millions of yen

7. Non-Operating Income and Expenses Other, Net

Thousands of
U.S.dollars

2011

2010

2011

¥6,246
1,432
85,3801,627
16,451
7,909¥6,121
1,655
87,826
2,941
15,6108,251$75,177
17,222
1,026,819
19,567
197,847
95,117

Consolidated Statements of Comprehensive Income for theyear ended March 31, 2010, consists of the following :Millions of
yen
2010

Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to minority
interests

Other comprehensive income
Net unrealized holding gain on securities
Net deferred profits on hedges
Foreign currency translation adjustments
Minimum pension adjustment
Total other comprehensive income¥2,509(1,812)
¥697

¥186
279
(2,988)32(¥2,491)

9. Research and Development Expenses
Research and development costs charged to income for theyears ended March 31, 2011 and 2010 are as follows:
Millions of yen

Thousands of
U.S.dollars

2011

2010

2011

¥23,203¥22,546$279,050

10. Income Taxes and Deferred Tax Assets
and Liabilities
The following table summarizes the difference between thestatutory tax rate and the Company's effective tax rate for theyears ended March 31, 2011 and 2010.

There is no significant difference between the statutory tax rate
(40.6%) and the Company's effective tax rate for the year ended
March 31, 2011.
2011

2010

-

40.6%

Statutory tax rate
Effect of :Different tax rates applied to income of foreign subsidiaries
Expenses permanently not deductible for income tax purposes
Changes in valuation allowance
Corporation tax special deduction for research expenditures
Amortization of goodwill of foreign subsidiaries
Unrealized gain of inventory
A past fisical year adjustment
Other, net
Effective tax rates-(18.1)
4.8
(1.2)
(9.2)
36.9
(4.7)
(2.3)
(2.5)
44.3%

Significant components of the Companies' deferred tax assets
and liabilities at March 31, 2011 and 2010 are as follows:
Millions of yen

Deferred tax assets:
Accrued retirement benefits
Intangible assets
Accrued bonuses
Elimination of consolidated
unrealized gains
Other
Valuation allowance
Deferred tax liabilities:
Retained earnings appropriatedfor tax allowable reserves
Unrealized gains on securities
Other
Net deferred tax assets(B) Operating Lease as a lessee
Future minimum lease payments for noncancelable operatingleases are summarised as follows:
Millions of yen Millions of yen

Due within one year
Due after one year

2010

2011

¥13,289
7,974
2,904

¥12,491
8,604
2,555

$159,820
95,89934,9251,353
5,972
31,492(2,489)29,003

1,658
6,136
31,444(1,591)
29,853

16,272
71,821
378,737(29,934)
348,803

241
147
188
576
¥28,427

276
232
23
531
¥29,322

2,898
1,768
2,261
6,927
$341,876

11. Leases(A) Finance Lease as a lessee
Finance Lease transactions, except for those which meet theconditions that the ownership of the leased assets was transferredto the lessee.
1-1. The content of Lease assets:tangible assets (tools, furnitures and fixture)
1-2. Depreciation method of lease assets:
According to the "Accounting Standards for Lease
Transactions" and "Implementation Guidance for
Accounting Standards for Lease Transactions", which havebeen adopted from the consolidated fiscal year beginning
April 1, 2008, depreciation of assets under finance leases
which do not transfer ownership of the leased assets to thelessee are calculated by the straight-line method over thelease period with no residual value.

2011

2010

2011

¥361
400
¥761

¥176
197
¥373

$4,341
4,811$9,152(C) Finance Lease as a lessor
1. Details of investment lease1-1) Investment lease current assets
Lease revenues receivable
Interests receivableThousands of
U.S.dollars

2011

Thousands of
U.S.dollars1-2) Investment lease - others
Lease revenues receivable
Interests receivable

Millions of yen Millions of yen

Thousands of
U.S.dollars

2011

2010

2011

¥1,375(130)¥1,245

¥176
(16)
¥160

$16,536(1,563)$14,973¥2,069(196)¥1,873

¥231
(22)
¥209

$24,883(2,357)$22,5261-3) Expected collect amounts of lease revenues receibable are as follows:
Within one year
¥1,375¥176$16,536
Between 1 to 2 years
1,375
176
16,536
Between 2 to 3 years
694
55
8,347
Between 3 to 4 years
Between 4 to 5 years
More than 5 years¥3,444¥407$41,419(D) Operating Lease as a lessor
Future minimum lease payments for noncancelable operatingleases are summarised as follows:
Millions of yen Millions of yen

Due within one year
Due after one year

Thousands of
U.S.dollars

2011

2010

2011

¥734
1,259
¥1,993

¥285
356
¥641

$8,82815,141$23,969(E) Other related information
Future minimum lease payments for noncancelable operating
sub-leases are summarised as follows:
Millions of yen Millions of yen

Lease revenues receivable
Current assets
OthersInvestment lease
Current assets
OthersLease expenses payable
Current liabilities
Fixed liabilities

Thousands of
U.S.dollars

2011

2010

2011

-

-

-

¥730
889
¥1,619¥766
1,228¥1,994$8,77910,629$19,471¥730
889¥1,619¥766
1,228¥1,994$8,77910,692$19,471

15

12 Consolidated Statements of Cash Flows
1. Major items for assets and liabirities of newly consolidated
subsidiary
The relation between the assets and liabilities of Kokusai
Chart Corporation at the time of consolidation, during the year
ended March 31, 2011 and amounts of acquisition for sharesof Kokusai Chart Corporation and cash paid for acquisition
are as follows:
Millions of yen

Thousands of
U.S.dollars¥1,069
1,302
820
(746)
(902)
(314)

$12,856
15,6589,862(8,971)(10,848)(3,776)

1,229

14,781(250)(3,007)¥979$11,774

Current assets
Fixed assets
Goodwill
Current liabilities
Fixed liabilities
Minority interest
Amounts of acquisition for share of
Kokusai Chart Corporation
Cash and cash equivalents of Kokusai
Chart Corporation
Cash paid for acquisition of shares of
Kokusai Chart Corporation

2. The content of important non-finance transaction
By applying the "Accounting Standard for Lease
Transactions" and the "Implementation Guidance for
Accounting Standard for Lease Transaction", the impact of
non-financial transaction on assets and liabilities is ¥3,045
millions ($36,621 thousands) and ¥2,973 millions ($35,755
thousands), respectively.

13. Financial Instruments
Effective for the year ended March 31, 2011, a new accounting
standard for financial instruments and related implementation
guidance have been adopted.

For the year ended March 31, 2011
Overview
1. Policy for financial instruments
The Companies raise funds mainly using Toshiba Group
Finance program. Esentially the Companies use the program in
the Companies have temporary excess funds. The Companies
use derivatives for the purpose of reducing risks (described
below) and does not enter into derivatives for speculative or
trading purposes.
2. Types of financial instruments and related risks
Trade receivables (trade notes and accounts receivable) are
exposed to credit risk in relation to customers. In addition,
the Companies are exposed to foreign currency exchange
rate fluctuation risk arising from receivables denominated inforeign currencies. In principle, the foreign currency exchangerisks deriving from the trade receivables denominated inforeign currencies, net of trade payables denominated in thesame currencies, are hedged by forward foreign exchange
contracts.
Investment securities are exposed to market risk. These areshare of stock related on our business.
Substantially all trade payables (trade notes and accounts
payable) are due within one year. Although the Companies

16

are exposed to foreign currency exchange rate fluctuation
risk arising from those payables denominated in foreign
currencies. But the volume of account payable is in the rangeof account receivable of the same currency.
Regarding derivatives, the Companies enter into forward
foreign exchange contracts to reduce the foreign currency
exchange rate fluctuation risk arising from the receivables andpayables denominated in foreign currencies.
3. Risk management for financial instruments
1) Monitoring of credit risk
In accordance with the internal policies, the Credit
Managing division monitors credit worthiness of theircustomers periodically, and monitors due dates andoutstanding balances by individual customer. In addition,
the Companies are making efforts to identify and mitigate
risks of bad debts from customers who are having financial
difficulties.
2) Monitoring of market risks (the risks arising fromfluctuations in foreign exchanges rates, interest rates andothers)For trade receivables and payables denominated inforeign currencies, the Companies identify the foreign
currency exchange rate fluctuation risk for each currency
on a monthly basis and enters into forward foreignexchange contracts to hedge such risk.
The Accounting Division manages risks on derivativetransaction, in accordance with the internal policies.
Monthly reports including actual transaction data aresubmitted to top management for their review.
For marketable securities and investment securities, theCompanies periodically review the fair values of suchfinancial instruments and the financial position of theissuers. In addition, the Companies continuously evaluate
whether securities should be maintained taking into
account their fair values and relationships with the issuers.
3) Monitoring of liquidity risk (the risk that the Companies
may not be able to meet its obligations on scheduled due
dates)
Based on the report from each division, the Companies
prepare and update its cash flow plans on a timely basis to
manage liquidity risk.
4. Supplementary explanation of the estimated fair value offinancial instruments
The fair value of financial instruments is based on theirquoted market price, if availble. When there is no quoted
market price available, the fair value is determined based onreasonable esteimates. Since various assumptions and factors
are reflected in estimating the fair value, different assumptions
and factors could result in different fair value. In addition,
the notional amounts of derivatives in Note 15 Derivative
Transactions are not indicative of the actual market risk
involved in derivative transactions.

Estimated Fair Value of Financial Instruments

3. Redemption schedule for receivables and marketable securities with maturities at March
31, 2011

The carrying value of financial instruments in the consolidatedbalance sheet as of March 31, 2011, and their estimated fairvalue are as follows:
consolidatedbalance sheet

Millions of yen
estimated
fair value(a) Cash and cash equivalents
notes and accounts(b) Trade
receivable¥92,928¥92,928-

Allowancefor doubtful
accounts*1(1,295)53,232

53,232-securities and(c) Marketable
investment securities

1,593

1,593

-

notes and accounts(d) Tradepayable(43,002)(43,002)-(e) Short- time loans(f) Derivative transactions *2

difference

54,527(10,869)(10,869)

-

(42)

(42)

-

Thousands of U.S. dollars
consolidated
estimatedbalance sheet
fair value
differene

Due in One
Year or Less

¥92,928---

Trade notes and accountreceivable
Marketable securities
and invetment securities
Held-to-maturity
debt securities
National and local
government bonds

54,527

-

-

-

-

-

-

-

-

-

-

-

Corporate bonds

-

-

-

-

Other

-

-

-

-

¥147,455---

Corporate bonds
Other marketablesecurities with maturities

Total

Due in One
Year or Less

$1,117,595

-

-

-

655,766

-

-

-

-

-

-

-

-

-

-

-

-

(e) Short- time loans(f) Derivative transactions *
*1
*2
*3

(130,715)(130,715)-

Other marketablesecurities with maturities

(505)

(505)

-

Corporate bonds

-

-

-

-

Other

-

-

-

-

$1,773,361

-

-

-

Allowance for doubtful accounts provided for individual customers are deducted.
The value of assets and liabilities arising from derivatives is shown at net value.
The liability position is shown in parenthesis.

Note: 1. Method to determine the estimeted fair value of financial instruments and other mattersrelated to securities and derivative transactions
Cash and cash equivalents, Trade notes and accounts receivable
Since these items are settled in a short period of time, their carrying value
approximates fair value.
Marketable securities and investment securities
The fair value of marketable equity securities is based on the quoted market price.
For information on securities by each holding purpose, refer to Note 14 Securities.
Short-term loans, Trade notes and accounts payable
Since these items are settled in a short period of time, their carrying value
approximates fair value.
Derivatives transactions
Refer to Note 15 Derivative Transactions
2. Financial instruments for which it is extremely difficult to determinie the fair value

Unlisted stocks

Due after
Ten Years

Trade notes and accountreceivable
Marketable securities
and invetment securities
Held-to-maturity
debt securities
National and local
government bonds
Corporate bonds

2

Thousands of U.S. dollars
Due after One Due after Fiveyear throughyear throughFive years
Ten years

Cash and cash equivalents--

Due after
Ten Years

Cash and cash equivalents(a) Cash and cash equivalents $1,117,595 $1,117,595
notes and accounts 655,767(b) Trade
receivable
Allowancefor doubtful (15,575)
accounts*1
640,192
640,192
securities and(c) Marketable
19,15819,158
investment securities
notes and accounts (517,162) (517,162)(d) Tradepayable-Millions of yen
Due after One Due after Fiveyear throughyear throughTen years
Five years

Millions of yen

Thousands of
U.S. dollars¥1,848$22,225

Because no quoted market price is available and it is extremely difficult to determine
the fair value, the above financial instruments are not included in the above table.

Total

4. The redemption schedule for long-term debt is disclosed in Note 3.

For the year ended March 31, 2010
Overview
1. Policy for financial instruments
The Companies raise funds mainly using Toshiba Group
Finance program. Esentially the Companies use the program if
the Companies have temporary excess funds. The Companies
use derivatives for the purpose of reducing risks (described
below) and does not enter into derivatives for speculative or
trading purposes.
2. Types of financial instruments and related risks
Trade receivables (trade notes and accounts receivable) are
exposed to credit risk in relation to customers. In addition,
the Companies are exposed to foreign currency exchange
rate fluctuation risk arising from receivables denominated inforeign currencies. In principle, the foreign currency exchangerisks deriving from the trade receivables denominated inforeign currencies, net of trade payables denominated in thesame currencies, are hedged by forward foreign exchange
contracts.
Investment securities are exposed to market risk. These areshare of stock related on our business.
Substantially all trade payables (trade notes and accounts
payable) are due within one year. Although the Companies

17are exposed to foreign currency exchange rate fluctuation
risk arising from those payables denominated in foreign
currencies. But the volume of account payable is in the rangeof account receivable of the same currency.
Regarding derivatives, the Companies enter into forward
foreign exchange contracts to reduce the foreign currency
exchange rate fluctuation risk arising from the receivables andpayables denominated in foreign currencies.
3. Risk management for financial instruments
1) Monitoring of credit risk
In accordance with the internal policies, the Credit
Managing division monitors credit worthiness of theircustomers periodically, and monitors due dates andoutstanding balances by individual customer. In addition,
the Companies are making efforts to identify and mitigate
risks of bad debts from customers who are having financial
difficulties.
2) Monitoring of market risks (the risks arising fromfluctuations in foreign exchanges rates, interest rates andothers)For trade receivables and payables denominated inforeign currencies, the Companies identify the foreign
currency exchange rate fluctuation risk for each currency
on a monthly basis and enters into forward foreignexchange contracts to hedge such risk.
The Accounting Division manages risks on derivativetransaction, in accordance with the internal policies.
Monthly reports including actual transaction data aresubmitted to top management for their review.
For marketable securities and investment securities, theCompanies periodically review the fair values of suchfinancial instruments and the financial position of theissuers. In addition, the Companies continuously evaluate
whether securities should be maintained taking into
account their fair values and relationships with the issures.
3) Monitoring of liquidity risk (the risk that the Companies
may not be able to meet its obligations on scheduled due
dates)
Based on the report from each division, the Companies
prepare and update its cash flow plans on a timely basis to
manage liquidity risk.
4. Supplementary explanation of the estimated fair value offinancial instruments
The fair value of financial instruments is based on theirquoted market price, if availble. When there is no quoted
market price available, fair value is determined based onreasonable esteimates. Since various assumptions and factors
are reflected in estimating the fair value, different assumptions
and factors could result in different fair value. In addition,
the notional amounts of derivatives in Note 15 Derivative
Transaction are not indicative of the actual market risk
involved in derivative transactions.

18

Estimated Fair Value of Financial Instruments
The carrying value of financial instruments in the consolidatedbalance sheet as of March 31, 2010, and their estimated fairvalue are as follows.
consolidatedbalance sheet

Millions of yen
estimated
fair value(a) Cash and cash equivalents
notes and accounts(b) Trade
receivable¥88,669¥88,669-

Allowancefor doubtful
accounts*1(1,492)54,49354,493-securities and(c) Marketable
investment securities

1,697

1,697

-

notes and accounts(d) Tradepayable(43,846)(43,846)-(e) Short- time loans(15,224)(15,224)

-

9

9

-

2

(f) Derivative transactions *
*1
*2
*3

difference

55,985

Allowance for doubtful accounts provided for individual customers are deducted.
The value of assets and liabilities arising from derivatives is shown at net value.
The liability position is shown in parenthsis.

Note: 1. Method to determine the estimeted fair value of financial instruments and other mattersrelated to securities and derivative transactions
Cash and cash equivalents, Trade notes and accounts receivable
Since these items are settled in a short period of time, their carrying value
approximates fair value.
Marketable securities and investment securities
The fair value of marketable equity securities is based on the quoted market price.
For information on securities by each holding purpose, refer to Note 14 Securities.
Short-term loans, Trade notes and accounts payable
Since these items are settled in a short period of time, their carrying value
approximates fair value.
Derivatives transactions
Refer to Note 15 Derivative Transactions
2. Financial instruments for which it is extremely difficult to determinie the fair value

Millions of yen

Unlisted stocks¥1,802

Because no quoted market price is available and it is extremely difficult to determine
the fair value, the above financial instruments are not included in the above table.
3. Redemption schedule for receivables and marketable securities with maturities at March
31, 2010

Due in One
Year or Less

Millions of yen
Due after One Due after Fiveyear throughyear throughFive years
Ten years

Due after
Ten Years

Cash and cash equivalents¥88,669---

Trade notes and accountreceivable
Marketable securities
and invetment securities
Held-to-maturity
debt securities
National and local
government bonds

55,985

-

-

-

-

-

-

-

-

-

-

-

Corporate bonds

-

-

-

-

Other

-

-

-

-

¥144,654---

Corporate bonds
Other marketablesecurities with maturities

Total

4. The redemption schedule for long-term debt is disclosed in Note 3.

14. Securities

Thousands of U.S. dollars
2011

1. Information regarding marketable Other Securities as ofMarch 31, 2011 and 2010 are as follows:
Millions of yen

Acquisition
cost

2011
Carrying
value

Unrealized
gain (loss)

Acquisition
cost

Unrealized
gain (loss)

¥631
(54)
¥577

Thousands of U.S.dollars

2011
Carrying value

Maturing
within one year

Unrealized gain (loss)

Securities whose carrying value exceeds their acquisition cost:
Stocks$9,657$15,815
Securities whose acquisition cost exceeds their carrying value:
Stocks
3,921
3,343
Total
$13,578$19,158$6,158

Sell:
EUR
AUD
Total

$20,79460$20,854-

Currency-related transactions
1. Net deffered profits on hedges

Millions of yen

2010¥1,848¥1,8482011

2010

Contract amout

Fair value

Maturing Maturing
within one after one
year
year

Sell:
EUR
AUD
Total

¥1,802¥1,802$22,225$22,225

15. Derivative Transactions(1) Summarized below are the amount of contract and theestimated fair value of the derivative instruments outstandingat March 31, 2011 and 2010, for which hedged accounting
has not been applied.

¥656
78
¥734

-

2010

Maturing Maturing
within after one
one year
year

-

¥0
0
¥0

2011
Maturing
within one year

Fair value

Maturing
after one year

Forward foreignexchange contracts

Sell:
EUR
AUD

$7,889938$8,827-$(192)(24)$(216)

2. Forward foreign exchange contracts, accounted for as part ofaccounts receivable
Millions of yen
2011
Contract amout

2010
Fair value

Contract amout

Fair value

Maturing
within one
year

Maturing
after one
year

¥267
65
¥332

-

Forward foreignexchange contracts

Millions of yen
UnrealizedGain(Loss)

¥85
5
¥90

Contract amout

Currency-related transactions

Fair
value

Maturing
after one
year

¥(16)
¥(2)
¥(18)

Maturing Maturing
within one after one
year
year

2011

Fair value

Maturing
within one
year

Thousands of U.S. dollars

2011
Carrying value

Contract amout

Forward foreignexchange contracts

Total

Contract amout$(505)
0$(505)(2) Summarized below are the amount of contract and theestimated fair value of the derivative instruments outstandingat March 31, 2011 and 2010, for which hedged accounting
has been applied.

Thousands of
U.S.dollars

Carrying value

Other securities
Unlisted stocks
OthersTotal$(505)
0$(505)

Maturing
after one year

3. Information regarding non-marketable securities as of March
31, 2011 and 2010 are as follows.
2011

UnrealizedGain(Loss)*Caluculation of fair value is based on the value from financial institutions.

(578)$5,5802. The proceeds from sales of securities, except those of theaffiliated companies, for the years ended March 31, 2011 and2010 were ¥16 millions ($192 thousands) and ¥0 millions,
respectively. The realized gains on those sales for the years
ended March 31, 2011 and 2010 were ¥5 millions ($60
thousands) and ¥(2) millions, respectively.

Millions of yen

Fair value

Forward foreignexchange contracts

2010
Carrying
value

Securities whose carrying value exceeds their acquisition cost:
Stocks¥803 ¥1,315¥512¥921 ¥1,552
Securities whose acquisition cost exceeds their carrying value:
Stocks
326
278
(48)
200
146
Total
¥1,129 ¥1,593¥464 ¥1,121 ¥1,698

Acquisition cost

Contract amout

Fair
value

Contract amout

UnrealizedGain(Loss)

Maturing Maturing
within after one
one year
year

Sell:
CAD
AUD
Total

¥168
83
¥251

-

¥(3)
(2)
¥(5)

¥(7)
(2)
¥(9)

Forwardforeignexchange
contracts

Sell:
EUR
AUD
Total

¥1,7295¥1,734

-

¥(42)
0
¥(42)

¥(42)
0
¥(42)

¥1,19912¥1,211

-

¥10
0
¥10

¥10
0
¥10

*Caluculation of fair value is based on the value from financial institutions.

19Thousands of U.S. dollars
2011
Contract amout
Maturing
within one year

Fair value

Maturing
after one year

Forward foreignexchange contracts

Sell:
CAD
AUD
Total

$2,021998$3,019

-

$(36)
(24)
$(60)

16. Segment Information(A) Business Segment for the years ended in March 31, 2011 and 2010
(additional information)
Effective the fisical year ended March 31, 2011, theCompany has adopted "Accouting Standards for Disclosuresabout Segments of an Enterprise and Related Information"and "Guidance on Accouting Standard for Disclosures about
Segments of an Enterprise and Related Information".
Effective April 1, 2010, the Company changed its businesssegment from "Retail Solutions Business Group", "Document
Systems Business Group" and "Auto-ID and Printer BusinessGroup" to "System Solutions Business Group", "Document
Solutions Business Group" and "International POS, AI & PrinterBusiness Group".
1. Summary of reportable segument
The reportable segments of the Companies are components
for which discrete financial information is available andwhose operating results are regularly reviewed by the
Executive Committee to make decisions about resource
allocation and to assess performance.
Aiming the early realization of business expansion andthe positional establishment as total solution provider,
the Companies create inclusive strategies per market anddevelop business activity under a framework for business
operation per market. Therefore, the Companies report on"System Solutions Business Group", "Document Solutions
Business Group"and "International POS, AI & PrinterBusiness Group" as report segments.
2. The calculation method for amounts of sales, income, assets
and other items per reportable segments
The accounting policies of the segments are substantiallythe same as those described in the significant accouting
policies in Note 1.
Millions of yen

2011

Net Sales
System Solutions Business Group
Unaffiliated customers¥164,987
Intersegment
2,491
Total
167,4782010

Thousands of
U.S.dollars

2011

Document Solutions Business Group
Unaffiliated customers
156,578
162,833
Intersegment
8,768
9,127
Total
165,346
171,960
International POS, AI & Printer Business Group
Unaffiliated customers
40,73739,755Intersegment
1,089
233
Total
41,82639,988Adjustments(12,348)(11,723)
Consolidated¥362,302 ¥364,578

1,883,079
105,448
1,988,527
489,922
13,097503,019(148,503)$4,357,210

Segment Income
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Consolidated¥5,741
4,338
3,918¥13,997¥3,556
4,329
1,840¥9,725$69,044
52,171
47,119$168,334

Segment Assets
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Adjustments
Consolidated¥68,752
124,459
28,217
67,164¥288,592¥65,425
133,195
32,40258,496¥289,518$826,843
1,496,801
339,351
807,745$3,470,740

Depreciation
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Consolidated¥2,684
7,559
685¥10,928¥3,257
9,783
958¥13,998$32,279
90,9088,238$131,425

Amortization
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Consolidated

¥35
2,511
44
¥2,590¥35
3,218
4¥3,257$421
30,199529$31,149

Capital Expenditures
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Consolidated¥2,952
7,677
1,243¥11,872¥1,7118,389
340¥10,440$35,502
92,327
14,949$142,778

Note1:
				
Note2:

Adjustments of Net Sales for the year ended March 31, 2011 and 2010 are
intersegments elimination, and ¥12,348 millions ($ 148,503 thousands) and ¥11,723
millions, respectively.
Adjustments of Segment Assets are Corporate assets, and consist of cash and cash
equivalents and investment securities.
Adjustments of Segment Assets at March 31, 2011 and 2010 are ¥67,164 millions($807,745 thousands) and ¥58,496 millions, respectively.
Segment Income corresponds to Operating Income of Cosolidated Statements ofOperations.
The main products of each business segments
System Solutions Business GroupPOS Systems, Electronic Cash Register, Electronic Scales, Multifunction
Peripherals, in Japan
Document Solutions Business GroupMultifunction Peripherals, Facsimile, Unit Parts, Inkjet Head, Overseas
International POS, AI & Printer Business GroupPOS Systems, Electronic Cash Register, Electronic Scales, Overseas(B) Relative Information¥161,990
2,363
164,353$1,984,209
29,9582,014,167

1. Products and service information
the year ended in March 31, 2011
Millions of yen

Net sales of Retail
Net sales of MFP¥186,234
176,068¥362,302

Thousands of U.S.dollars$2,239,735
2,117,475$4,357,210

Note: Retail : POS system, Auto-ID system which contain hardware and software toautomatically retrieve,
MFP : Multi Function Peripherals, Facsimiles,various unit parts and inkjet print heads

20

For the year ended March 31, 2010

2. Information by geographical area
Millions of yen

Net SalesJapan
American States
EuropeAsia and others
Net sales

2011

Thousands of U.S.dollars

2011¥193,885
62,87373,00132,543¥362,302$2,331,750
756,140
877,943
391,377$4,357,210¥14,891
3,740
6,820
4,076
¥29,527$179,086
44,97982,02049,020$355,105

Tangible Fixed Assets
Japan
American States
EuropeAsia and others
Net sales

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
3. Information by major customer
There are no customers whom the companies sell it to more than
10% of total sales.
4. Information on impairment loss in fixed assets be businesssegument
the year ended in March 31, 2011
No events to be noted for this purpose.
5. Information on amortization of goodwill and unamortizedbalance by business segument the year ended in March 31,
2011
Millions of yen

System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Consolidated

Thousands of U.S.dollars

2011

2011

Amotization of Balance at end
goodwillof period

Amotization of Balance at end
goodwillof period

¥35
2,511
44
¥2,590¥882
18,517
6¥19,405$421
30,199529$31,149$10,607
222,69472
233,373

6. Information on negative goodwill by business segment theyear ended in March 31, 2011
No events to be noted for this purpose.

(C) Previous Business Segment for the year ended in
March 31, 2010
Millions of yen

2010

Net Sales
Retail Solutions Business Group
Unaffiliated customers
Intersegment
Total
Document Systems Business Group
Unaffiliated customers
Intersegment
Total
Auto-ID and Printer Business Group
Unaffiliated customers
Intersegment
Total
Eliminations
Consolidated¥151,786
2,626
154,412
183,636
4,832
188,468
29,1573,401
32,558(10,860)¥364,578

Operating Expenses
Retail Solutions Business Group
Document Systems Business Group
Auto-ID and Printer Business GroupEliminations
Consolidated¥149,335
184,529
31,849(10,860)¥354,853

Operating Income
Retail Solutions Business Group
Document Systems Business Group
Auto-ID and Printer Business GroupEliminations
Consolidated¥5,077
3,939
709¥9,725

Identifiable Assets
Retail Solutions Business Group
Document Systems Business Group
Auto-ID and Printer Business Group
Corporate and Eliminations
Consolidated¥65,392
140,029
26,84057,257¥289,518

Depreciation and Amortization
Retail Solutions Business Group
Document Systems Business Group
Auto-ID and Printer Business Group
Consolidated¥2,816
13,677762¥17,255

Depreciation and Amortization
Retail Solutions Business Group
Document Systems Business Group
Auto-ID and Printer Business Group
Consolidated¥1,6808,507
253¥10,44021

(D) Geographic Segments(E) Net Sales by Region
Millions of yen

Millions of yen

2010

Net SalesJapan
Unaffiliated customers
Intersegment
Total
American States
Unaffiliated customers
Intersegment
Total
EuropeUnaffiliated customers
Intersegment
Total
Asia and others
Unaffiliated customers
Intersegment
Total
Eliminations
Consolidated
Operating Expenses
Japan
American States
EuropeAsia and others
Eliminations
Consolidated
Operating Income
Japan
American States
EuropeAsia and others
Eliminations
Consolidated
Identifiable Assets
Japan
American States
EuropeAsia and others
Corporate and Eliminations
Consolidated¥188,545
66,610255,155
66,288
1,620
67,90881,0302,744
83,77428,71645,96874,684(116,943)¥364,578¥248,535
70,20580,731
70,977(115,595)¥354,853¥6,620(2,297)
3,043
3,707(1,348)¥9,725¥198,572
26,93953,50941,359(30,861)¥289,518(Note1) 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(Note2) Corporate assets mainly consist of cash, time deposits, securities and investments withfinancial institutions of the Company.
		 Corporate assets at March 31, 2010, is ¥58,496 millions.

2010

Net SalesJapan
American States
EuropeAsia and others
Net sales(Note)¥169,415
76,68386,98831,492¥364,578

Net sales by region are determined based upon the locations of the customers.
Therefore, this information is different from the net sales for geographic segments,
which are determined based upon where the sales originated.

17. Stock Option Plan
Stock option for the years ended March 31, 2011 and 2010 are
as follows:

The year ended March 31, 2011
1. The amount and the accounting subject in relation to thestock option in the fiscal year 2010
Selling, General and Administrative Expenses: ¥41 millions($493 thousands)
2. The size of stock option and its circumstances
1) General information
The first new share subscription rightas share-reward type stock option
Qualified beneficiaries

18 of the Company directors and corporate
officers

Type of shares for which
new subscription rights offered

83,000 shares of Common stock

Date of issuanceAugust 1, 2008

Condition of exercising(Note)

Vesting period

No conditional period required

Subscription rights exercise period

From August 2, 2008 to August 1, 2038
The second new share subscription rightas share-reward type stock option

Qualified beneficiaries

17 of the Company directors and corporate
officers

Type of shares for which
new subscription rights offered

169,000 shares of Common stock

Date of issuance

July 31, 2009

Condition of exercising(Note)

Vesting period

No conditional period required

Subscription rights exercise period

From August 1, 2009 to July 31, 2039
The third new share subscription rightas share-reward type stock option

Qualified beneficiaries

17 of the Company directors and corporate
officers

Type of shares for which
new subscription rights offered

134,000 shares of Common stock

Date of issuance

July 30, 2010

Condition of exercising(Note)

Vesting period

No conditional period required

Subscription rights exercise period

From July 31, 2010 to July 30, 2040

(Note) 1.
2.

The amount is converted into the number of shares.
Fixed term of the right is not given.
Subscription rights may be exercised in a lump sum within expiration cycle and 10
days after a beneficiary resigns from directors or corporate officers.

2) The size of stock option and movement
Addressed is the amount of stock option existing in the years
ended March 31, 2011, 2010 and 2009.
As for the number of stock option, it is converted into thenumber of shares.

222-1. The number of stock option
The first
new share
subscription
right as sharereward typestock option

The second
new share
subscription
right as sharereward typestock option

The third
new share
subscription
right as sharereward typestock option

Before the resolution

2. The size of stock option and its circumstances
1) General information
The first new share subscription rightas share-reward type stock option
Qualified beneficiaries

18 of the Company directors and corporate
officers

Type of shares for which
new subscription rights offered

83,000 shares of Common stock

Date of issuanceAugust 1, 2008

Condition of exercising(Note)

Vesting period

No conditional period required

Subscription rights exercise period

From August 2, 2008 to August 1, 2038

End of the preceding term

-

-

-

Offered--134,000

Cancelled---

Vested--134,000

Outstanding

-

-

-

66,000169,000---

134,000

4,000

18,000-Qualified beneficiaries

17 of the Company directors and corporate
officers

Type of shares for which
new subscription rights offered

169,000 shares of Common stock

Date of issuance

July 31, 2009

Condition of exercising(Note)

Vesting period

No conditional period required

Subscription rights exercise period

From August 1, 2009 to July 31, 2039

After the resolution
End of the preceding term
VestedExercised
Cancelled
Outstanding

-

-

-

62,000151,000

134,000

The second new share subscription rightas share-reward type stock option

2-2. Per share data
The first
The second
new share
new share
subscription
subscription
right
right
as shareas share-reward reward
type
type stock
stock
optionoptionExercised price
The avarage price at the timeof exercising
Official price at the date ofoffered¥1($0.01)¥1($0.01)

The third
new share
subscription
right as sharereward typestock option¥1($0.01)¥299 ($3.596) ¥296 ($3.560)-¥560 ($6.735) ¥393 ($4.726) ¥307 ($3.692)

3. The evaluation of fair price of stock option

The first new share subscription rightas share-reward type stock option
35.6%

Estimated residual period (Note 2)

1 years and 7 month

Estimated dividents (Note 3)¥5 ($0.06) per share

Risk-free rate (Note 4)(Note) 1.
2.
3.
4.

The amount is converted into the number of shares.
Fixed term of the right is not given.
Subscription rights may be exercised in a lump sum within expiration cycle and 10
days after a beneficiary resigns from directors or corporate officers .

2) The size of stock option and movement
Addressed is the amount of stock option existing in the year
ended March 31, 2010 and 2009.
As for the number of stock option, it is converted into thenumber of shares.
2-1. The number of stock option

1) The evaluation method used: Black–Scholes method
2) General information and the method of estimation

Stock market volatility (Note 1)(Note) 1.
2.
		

0.14%

The third: The figure is calculated based on actual share data from December 15,
2008 up to the week of offered.
The calculation is based on the condition that the Company's directors or corporate
officers are resigned and the exercised exactly after the day of resignation.
The third: The estimated figure is based on the actual divident amount at March 31,
2010.
Estimated capitalisation cycle of government bond in accordance with estimatedaccumulated period

4. The method of estimating the number of stock option vested
Fundamentally, only the actual number of cancelled
is shown as it is difficult to estimate possible number ofcancelled.

The first new sharesubscription rightas share-reward typestock option
Before the resolution
End of the preceding term
OfferedCancelled
VestedOutstanding

83,000--169,000--

83,000169,000--

After the resolution
End of the preceding term--

Vested83,000169,000

Exercised

17,000-Cancelled--

66,000169,000

Outstanding

2-2. Per share data
The first new sharesubscription rightas share-reward typestock option

The Year ended March 31, 2010
1. The amount and the accounting subject in relation to thestock option in the fiscal year 2009
Selling, General and Administrative Expenses: ¥66
millions

The second new sharesubscription rightas share-reward typestock option

Exercised price
The avarage price at the timeof exercising
Official price at the date ofofferedThe second new sharesubscription rightas share-reward typestock option

¥1

¥1

¥387

-

¥560

¥393

23

3. The evaluation of fair price of stock option
1) The evaluation method used: Black–Scholes method
2) General information and the method of estimation
The first new sharesubscription rightas share-reward typestock option
Stock market volatility (Note 1)

The second new sharesubscription rightas share-reward typestock option

28.1%

42.4%

Estimated residual period (Note 2) 3 years and 6 month

2 years and 6 month

Estimated dividents (Note 3)
Risk-free rate (Note 4)(Note) 1.
		
2.
3.
		
4.

¥12 per share¥5 per share

0.94%

0.34%

The first: The figure is calculated based on actual share data from Febrary 14, 2005
up to the week of offered.
The second: The figure is calculated based on actual share data from January 29,
2007 up to the week of offered.
The calculation is based on the condition that the Company's directors or corporate
officers are resigned and the exercised exactly after the day of resignation.
The first: The estimated figure is based on the actual divident amount at March 31,
2008.
The second: The estimated figure is based on the actual divident amount at March 31,
2009.
Estimated capitalisation cycle of government bond in accordance with estimatedaccumulated period

4. The method of estimating the number of stock option vested
Fundamentally, only the actual number of cancelled is shownas it is difficult to estimate possible number of cancelled.

18. Business Combination
The year ended in March 31, 2011
Business combination by acquisition
1. Summary of Business combination(1) Name of the acquired company and its content of business
Name of the acquired company
Kokusai Chart Corporation
Content of business
Mesurement business, information business andlabel related business(2) Reasons for business combination
Aiming for maximizing the Company's value ofsupply-chain management business, by constructing
the collaborative framework, and concentrating
the bar-code printer technology and the abilityof solution proposal which the company has andtechnology of paper converting which the acquiredcompany has.
(3) Date of business combination
March 22, 2011(4) Legal form of business combination
Acquisition of stock(5) Company name after acquisition
Kokusai Chart Corporation(6) Acquired ratio of voting rights
Share of voting rights at the date of the businesscombination 56.61%
2. Operating results of the acquired company for the year
ended in March 31, 2011
Operating results are not included, because the Company
deems the end of fisical period to be the acquisition date
3. Acquisition cost of the acquired company
Acquisition price
Other direct costs forthe acquisition
Total

24

¥1,121 millions($13,482 thousands)¥108 millions($1,299 thousands)¥1,229 millions($14,781 thousands)

4. Goodwill incurred, occurrence factor and method andperiod of amortization¥820 millions($9,862 thousands)(1) Goodwill incurred(2) Occurrence factor
Because its current value of net assets dips below
the acquired cost, the Company recognizes thedifference as goodwill.
(3) Method and period of amortization
Equal amounts over 5 years
5. Breakdown of acquired assets and liabilities as of the dateof business combination
Current assets¥1,069 millions($12,856 thousands)

Fixed assets¥1,836 millions($22,081 thousands)

Total assets¥2,905 millions($34,937 thousands)

Current liabilities¥746 millions($8,972 thousands)

Fixed liabilities¥903 millions($10,860 thousands)

Total liabilities¥1,649 millions($19,832 thousands)

6. Assuming the business combination would be completed at
the beginning date of fisical year, the amount of effect on
consolidated income statements of this fisical year and themethod of calculation would be as follow
It is not disclosed as the amounts are immaterial.

The year ended in March 31, 2010
Not applicable

19. Transactions with Related Parties(A) Transaction with Related Parties for the year
ended March 31, 2011.
(¥=Million, US$=Thousand, S$=Thousand)StatusParentcompanyName

Toshiba
Corporation

Address

Capital(Millions of yen)

Minato-ku,
Tokyo¥439,901$(5,290,451)

Relationship

Business

Percentage of voting
rights held (%)

Manufacturing andsales of Degital
Products anddirect: 52.9%
Electronic devices
indirect: 0.1%
and Social
Infrastructure andHome Appliances

Dispatch of
executive
officers, etc.

Business
RelationshipTransactions

Transaction
Balance at
Amounts
Account item Fiscal Year End(Millions of yen)
(Millions of yen)interlocking of
directors

Deposit offund

Deposit offund

Cash and Cashequibalent,
Accuredinterst,Interst income*1¥65,102$(782,946),¥7$(84),¥227$(2,730)

With regard to the amounts above, Transaction Amounts and Balance at Fiscal Year End don't
include consumption taxes.
*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 is stated.
With regard to the amounts above, the amounts include the transaction amount with Toshiba
Capital Corporation. Toshiba Capital Corporation was merged into by Toshiba Corporation
at October 1, 2010.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

(¥=Million, US$=Thousand, S$=Thousand)Status

Subsidiaryof the parent
companyName

Toshiba
Singapore
Pte.,Ltd.

Address

Singapore

Capital(Thousands ofSingapore
dollars)

Business

S$11,600

Sales andmaintenanceof audio visualequipment, personal
computers,document
processing andtelecommunicationequipments,etc.

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts(Millions of yen)

Sales of our
products

Sales of document
processing andtelecommunicationequipments, etc.

¥8,579None

Percentage of voting
rights held (%)¥2,819$(33,903)

Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.
(¥=Million, US$=Thousand, S$=Thousand)CapitalName

Address(Thousands ofSingapore dollars)

Subsidiaryof the parent
company

Toshiba
Capital (Asia)
LTD.

Singapore

S$4,000

Relationship
Dispatch of
Business
executive
Relationshipofficers.
None

Deposits offunds

Transactions

Deposits offunds

Transaction
Amounts(Millions of yen)
*1

Business

Percentage of voting
rights held (%)

Financingof corporate
subsidiaries
overseas etc.

None¥6,485$(77,992),¥17$(204)

With regard to the amounts above, Transaction Amounts and Balance at Fiscal Year End don't
include consumption taxes.
*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 is stated.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.
(¥=Million, US$=Thousand, S$=Thousand)StatusName

Address

Subsidiary
Toshibaof the parent
International
London, UK
company
Finance (UK) Plc.
Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.
Deposits of
None
funds

Transactions
Deposits offunds

Address

Business

Percentage of voting
rights held (%)

None

Toshiba
Singapore
Pte.,LtdSingapore

S$11,600

Sales andmaintenanceof audio visualequipment,
personalcomputers,
document
processing andtelecommunicationequipments, etc.

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts(Millions ofyen)Account item

Balance at
Fiscal YearEnd

Sales of our
products

Sales of document
processing andtelecommunicationequipments, etc.

¥7,432

Trade notes
and accountreceivable¥2,967

Subsidiaryof the parent
company

NoneWith regard to the amounts above, Transaction Amounts and Balance at Fiscal Year End don't
include consumption taxes.
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.
(¥=Million, US$=Thousand, S$=Thousand)

Balance at
Account item Fiscal Year End(Millions of yen)
Cash and Cashequivalents,
interest
incomeName

Capital(Thousands ofSingapore dollars)

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

Status(¥=Million, US$=Thousand, S$=Thousand)StatusBalance at
Account item Fiscal Year End(Millions of yen)
Trade notes
and accountreceivable(B) Transactions with Related Parties for the year
ended March 31, 2010.

Capital(Thousands ofsterling pound)Business

GBP 5,000

Financingof corporate
subsidiaries
overseas etc.

None

Transaction
Amounts(Millions of yen)Account item

Balance at
Fiscal YearEnd

*1

Cash and Cashequivalents

Percentage of voting
rights held (%)¥2,934($35,286)

With regard to the amounts above, Transaction Amounts and Balance at Fiscal Year End don't
include consumption taxes.
*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 is stated.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

CapitalBusiness

Percentage of voting
rights held (%)

StatusName

Address

Subsidiaryof the parent
company

Toshiba
CapitalCorporation

Minato-ku,
Tokyo

¥100

Financing of
TOSHIBA Groupdomestic companies

None

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts(Millions ofyen)Account item

Balance at
Fiscal Year
End

None

Deposits offunds

Deposits offunds(Millions of yen)

*1

Cash and Cashequivalents¥52,731

Receivedinterest¥176

Accuredinterst¥7

With regard to the amounts above, Transaction Amounts and Balance at Fiscal Year End don't
include consumption taxes.
*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 is stated.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.
(¥=Million, S$=Thousand)StatusName

Address

Capital(Thousands ofSingapore dollars)

Subsidiaryof the parent
company

Toshiba
Capital (Asia)
LTD.

Singapore

S$4,000

Financingof corporate
subsidiaries
overseas etc.

None

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts(Millions ofyen)Account item

Balance at
Fiscal Year
End

None

Deposits offunds

Deposits of
funds

*1

Business

Percentage of voting
rights held (%)(Millions of yen)

Cash and Cashequivalents¥9,449Receivedinterest¥34

With regard to the amounts above, Transaction Amounts and Balance at Fiscal Year End don't
include consumption taxes.
*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 is stated.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

25

(¥=Million, GBP=Thousand)StatusName

Address

Subsidiaryof the parent
company

Toshiba
International
Finance (UK)Plc.

London, UK

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Deposits offunds

Deposits of
funds

None

Capital(Thousands ofsterling pound)Business

Percentage of voting
rights held (%)

GBP 5,000

Financingof corporate
subsidiaries
overseas etc.

None

Transaction
Amounts(Millions ofyen)Account item

Balance at
Fiscal YearEnd

*1

Cash andcash
equivalents(Millions of yen)

¥4,553

With regard to the amounts above, Transaction Amounts and Balance at Fiscal Year End don't
include consumption taxes.
*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 is stated.
Policy for determining trade terms and other related matters
Depositing funds are determined from market rates and offers from third party interests rates.

20. Cash Dividends(A) Cash dividends for the year ended March 31, 2011
(1) Cash dividends paid
(resolution)

Type ofsharesBoard ofCommondirectors held on
stock
April 28, 2010
Board ofCommondirectors held on
stock
October 28, 2010

(resolution)

Type ofsharesBoard ofCommondirectors held on
stock
April 28, 2010
Board ofCommondirectors held on
stock
October 28, 2010

Total amount Dividendsof dividends per share Record date Effective date(Millions of yen)

(yen)

¥1,375¥5.0

March, 31, 2010 June 1, 2010

¥548

¥2.0

Septemer, 31,2010

Total amountof dividends

December 1,
2010(Thousands of
U.S.dollars)

Dividends
per share(U.S.dollars)

Record date Effective date

$16,549$0.06

March, 31, 2010 June 1, 2010

$6,590$0.02

Septemer, 31,
2010

December 1,
2010(2) Year end dividends of the following fiscal year
(resolution)

Type ofsharesBoard ofCommondirectors held on
stock
April 28, 2011

Total amountof dividends(Millions of yen)

¥1,371Dividend
resource

Retainedearnings

Dividends
per share Record date Effective date
(yen)

¥5.0

March, 31, 2011 June 1, 2011

(B) Cash dividends for the year ended March 31, 2010
(1) Cash dividends paid
Not applicable(2) Year end dividends of the following fiscal year
(resolution)

Type ofsharesBoard ofCommondirectors held on
stock
April 28, 201026

Total amountof dividends(Millions of yen)

¥1,375

Dividend
resource

Retainedearnings

Dividends
per share Record date Effective date
(yen)

¥5.0

March, 31, 2010 June 1, 2010

21. Per share Information
Per share information at March 31, 2011and 2010 are as follows:Yen

Net assets per share
Net income per share
Net income per share fully diluted

U.S.dollars

2011

2010

¥473.44
23.71
23.68

¥474.85
15.06
15.05

2011

$5.69
0.29
0.28

* Net income per share and net assets per share fully diluted were calculated on the basis of thefollowing data.
Thousands of
U.S.dollars

Millions of yen

2011

Net income per share
Net income¥6,510
Amounts not attributable tocommon stock
Net income attributable tocommon stock
6,510
Average number of shares ofcommon stock
274,541
Net income per share fully diluted
Adjustment to net income
Increase in number ofcommon stocks (thousand
shares)307(Share subscription rights)
307
Outline of the residual
securities excluded fromthe calculation of the fully
diluted net income per sharebecause they have no dilutive
effects.
-

2010

2011

¥4,144$78,292

4,144

78,292

275,172
181
181

-

-

22. Subsequent Eventsegment base with the aim of expanding business areas in ashort period of time possible and establishing become as a totalsolutions provider.

The year ended in March 31, 2011
Effective April 1, 2011, the Company changed its businesssegment. The Company shifted the business structure aiming
the efficiency and expansion of the overseas operations. The
Company changed to two segments. System Solution is incharge of domestic business, Global Solution is in charge ofoverseas business.
The business segment information for the year ended March
31, 2011, under the new business segmentation is as follows:
Millions of yen

2011

Net Sales
System Solutions Business Group
Unaffiliated customers
Intersegment
Total
Grobal Solutions Business Group
Unaffiliated customers
Intersegment
Total
Adjustments
Consolidated¥164, 987
2,491
167,478
197,315
9,831
207,146(12,322)¥362,302

Segment Income
System Solutions Business Group
Grobal Solutions Business Group
Consolidated¥5,741
8,256¥13,997

Segment Assets
System Solutions Business Group
Grobal Solutions Business Group
Adjustments
Consolidated¥68,752
152,676
67,165¥288,593

Depreciation
System Solutions Business Group
Grobal Solutions Business Group
Consolidated¥2,684
8,244¥10,928

Amortization
System Solutions Business Group
Grobal Solutions Business Group
Consolidated

¥35
2,555
¥2,590Capital Expenditures
System Solutions Business Group
Grobal Solutions Business Group
Consolidated¥2,952
8,920¥11,872

Unamortized balance
System Solutions Business Group
Grobal Solutions Business Group
Consolidated¥882
18,523¥19,405

The year ended in March 31, 2010
(A) Change in Business Segment
Effective April 1, 2010, the Company changed its businesssegment. Corresponding to the changes in the businesscircumstances, the Company shifted the business structurefrom commodity composition segment base to market-friendly

New Business groups and main products are as follows.
(1) System Solutions Business Group Segment
POS systems, Electronic Cash Registers, Electronic
Scales, Office Automation Equipments, Supply products,
Multifunction Peripherals, Facsimile, Unit parts, Inkjet
Head, Barcode systems, RFID solutions, Printers, Custom
terminals, in Japan(2) Document Solutions Business Group Segment
Multifunction Peripherals, Facsimile, Unit parts, Inkjet
Head, Overseas(3) International POS, AI & Printer Business Group Segment
POS systems, Electronic Cash Resgisters, Electronic
Scales, Supply products, Barcode systems, RFID solutions,
Printers, Overseas
The business segment information for the year ended March
31, 2010, under the new business segmentation is as follows.
Millions of yen

2010

Net Sales
System Solutions Business Group
Unaffiliated customers
Intersegment
Total
Document Solutions Business Group
Unaffiliated customers
Intersegment
Total
International POS, AI & Printer Business Group
Unaffiliated customers
Intersegment
Total
Eliminations
Consolidated¥161, 990
2,363
164,353
162,833
9,127
171,960
39,755
233
39,988(11,723)¥364,578

Operating Expenses
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business GroupEliminations
Consolidated¥160,797
167,631
38,148(11,723)¥354,853

Operating Income
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business GroupEliminations
Consolidated¥3,556
4,329
1,840¥9,725

Identifiable Assets
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Corporate and Eliminations
Consolidated¥65,426
133,196
32,40058,496¥289,518

27

Depreciation and Amortization
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Consolidated¥3,292
13,001
962¥17,255

Capital Expenditures
System Solutions Business Group
Document Solutions Business GroupInternational POS, AI & Printer Business Group
Consolidated¥1,7118,389
340¥10,440(B) Transfer of Business
The company decided at the meeting of board of directors heldon May 27, 2010, to take over the MFP's business of domestic
sales and maintenance service from Toshiba Tec Business
Solutions Corporation, effective on October 1, 2010.
(1) Company name and its content of business, a legal form ofbusiness combination, company name after combination andpurpose of business transfer.
1. Company name and its content of businessToshiba Tec Business Solutions Corporation
MFP's business of domestic sales and maintenanceservice
2. Legal form of business combination
Business transfer under common control
3. Company name after combination
Toshiba Tec Corporation
4. Purpose of business transfer
The Company rebuilds the domestic business, andtakes over the MFP's business of domestic sales andmaintenance service and creates synergy effects with
System Solutions Buisness.
(2) Summary of accounting method
The Company accounts for this transfer of business asa transaction under the common control as stated in the"Accounting for Business Combinations" and "Guidance
for Accounting Standard for Business Combinations andBusiness Divestitures".

28

Corporate Data
2-17-2 Higashi Gotanda, Shinagawa-ku, Tokyo 141-8664 Japan
Tel: +81-3-6422-7000
Fax: +81-3-6422-7111
http://www.toshibatec.co.jp/
Established: February 21, 1950
Employees: 3,740 <Consolidated: 20,259> (as of March 2011)
Common Stock: ¥39,971 million (as of March 2011)
Stock Listing: Tokyo Stock Exchange (1st Section)

Board of Directors and Corporate Auditors
President and Chief Executive Officer (as of June 23, 2011)◊Mamoru Suzuki
Directors

Hiroshi Inubushi
Shigenobu Osawa
Ushio Kawaguchi
Masato Yamamoto
Takayuki Ikeda
Atsushi Tanaka
Hidejiro Shimomitsu
Corporate Auditors

Takao Saito
Satoshi Yamato
Hideaki Hori
Takehiko Ouchi
Tsuyoshi Okubo◊:Representative Director

Main Consolidated Companies (as of March 31, 2011)• TOSHIBA AMERICA BUSINESS SOLUTIONS, INC.
• TOSHIBA TEC GERMANY IMAGING SYSTEMS GmbH• TOSHIBA TEC FRANCE IMAGING SYSTEMS S.A.
• TOSHIBA TEC SOLUTION SERVICES CORPORATION• TOSHIBA TEC EUROPE RETAIL INFORMATION SYSTEMS S.A.
• TOSHIBA TEC U.K. IMAGING SYSTEMS LIMITED• TOSHIBA TEC NORDIC AB• TER CO., LTD.
• TEC APPLIANCE CO., LTD.
• TOSHIBA TEC AMERICA RETAIL INFORMATION SYSTEMS, INC.
• TOSHIBA TEC INFORMATION SYSTEMS (SHENZHEN) CO., LTD.
• TOSHIBA TEC SINGAPORE PTE LTD• P.T. TEC INDONESIA• TEC INFORMATION SYSTEMS CORPORATION• TIM ELECTRONICS SDN. BHD.
• TOSHIBA TEC EUROPE IMAGING SYSTEMS S.A.
• TEC PRECISION CO., LTD.
• TOSEI ELECTRIC CORPORATION• TOSHIBA TEC (H.K.) LOGISTICS & PROCUREMENT LTD.
• KOKUSAI CHART CORPORATION