ANNUALREPORT2009
For the Year Ended March 31, 2009

Financial Highlights
Years ended March 31

Thousands of
U.S.dollars

Millions of yen

Consolidated

2005

2006

2007

2008

2009

2009

¥376,187¥443,402¥510,846¥492,970¥422,601$4,302,158

Operating income

16,195

17,15722,671

26,075

10,123103,054

Net income

6,348

6,034

10,763

13,382

2,634

26,815

Total assets

270,056

323,476358,253

313,900

281,732

2,868,085-

148,423

158,813161,169

142,034

1,445,933

119,779

128,066

-

-

-

-

Net sales

Total net assets
Total shareholders' equity

Yen

U.S.dollars

Per share data:
Net income Basic¥22.44¥21.40¥38.72¥48.20¥9.53$0.097

Total shareholders' equity

428.88458.80494.73504.00465.63

4.740
Thousands of
U.S.dollars

Millions of yen

Non-Consolidated
Net sales
Operating income

2005

2006

2007

2008

2009

2009

¥257,510¥253,931¥297,996¥266,537¥237,364$2,416,410

5,691

3,720

4,299

5,008

(1,477)(15,036)

Net income

4,055

6,966

6,266

7,777

4,722

48,071

Common stock

39,971

39,971

39,971

39,971

39,971

406,912

Total assets

198,634

197,815

237,996

204,069

200,658

2,042,736-

110,494

113,039

117,124

116,766

1,188,700

105,248

110,494

-

-

-

-

Total net assets
Total shareholders' equity

Yen

U.S.dollars

Per share data:
Net income Basic
Cash dividends
Total shareholders' equity¥14.33¥24.84¥22.54¥28.01¥17.09$0.174

8.00

9.00

11.00

12.00

5.00

0.051

376.91395.91

407.11421.99424.094.317

The dollar amounts in this report represent translations of yen, for convenience only, at the rate of ¥98.23=US$1.00, the exchange rate
prevailing on March 31, 2009.

CONTENTS

Financial Highlights..................................................................................................................................1
Consolidated Balance Sheets....................................................................................................................4
Consolidated Statements of Operations....................................................................................................6
Consolidated Statements of Changes in Net Assets.................................................................................7
Consolidated Statements of Cash Flows...................................................................................................8
Notes to Consolidated Financial Statements............................................................................................9Business Overview in the Consolidated Fiscal Year 2008
As for the global economy in the consolidated fiscal year 2008, the global financial crisis resulting from subprime loan
concerns in the United States severely affected the real economy and therefore the economic downturn deepened in the US
and Europe while the economy slowed rapidly throughout Asia. The Japanese economy also slowed at high speeds, since theglobal economic downturn caused a drastic decrease in export, production and capital investments coupled with slumping
consumer spending.
Under these economic circumstances, the Toshiba TEC Group was committed to developing and introducing competitive
products, strengthening regional sales strategies, improving business efficiency, reforming the business structure,streamlining resources and driving innovation activities.
We devoted ourselves to further developing the company business under the operation system centering on the retail
solution business, the document systems business and the auto-ID & printer business, from April 1, 2008, aiming to achieve
an agile and flexible business system in order to respond to changes in the business environment.
However, sales amounted to 422,601 million yen, a 14% decrease over the previous consolidated fiscal year, due to global
market slowdown resulting from downturn in economy, strong yen and the influence of the transfer of the home electric
appliances business and concentration of major transactions in the first half of the previous fiscal year. We recorded a
declining profit in spite of our efforts to increase our earning capacity through the cost structure reform. The influence ofstrong yen and the consolidated subsidiary goodwill amortization in accordance with changes in the accounting system
resulted in a decrease in operating income of 61% over the previous consolidated fiscal year to 10,123 million yen, adecrease in ordinary income of 70% over the previous consolidated fiscal year to 6,807 million yen and a decrease in net
income of 80% to 2,634 million yen.
Given the above severe financial condition, we declare an interim dividend of 5 yen per share regarding surplus inthis fiscal year. We regret to inform, we will pass a dividend at the end of this term. Your understanding will be highly
appreciated.

Issues to be Addressed
The future economies in Europe and the United States are expected to decline with the serious impact of the global financial
crisis on export, employment, income and personal consumption while the economy in Asia is expected to slow down.
Japanese economy is also expected to deteriorate further, with the adverse effect on export, capital investment and sluggish
personal consumption.

Under these economic circumstances, the Toshiba TEC Group is committed to achieving realization of “Establish of astrong constitution for profits”. We will make concerted efforts together in order to assure a strong corporate structure by
improving sales and service efficiency, selecting and concentrating investments, strengthening our manufacturing capacity
and stabilizing our financial status.

Main measures of each business group as of Financial Year 2008 are as follows.

Retail Solution Business GroupThe Retail Solution Business Group will concentrate its
efforts to enforce profitability, by promoting development,
release and expanding our sales of new products, area
marketing on the domestic front, and further enlargement inforeign market in order to expand our sales of POS systems
and other related products.

Document Systems Business GroupThe Document Systems Business Group is committed to improveand strengthen its profitability by developing, releasing andexpanding sales of new competitive products, reducing fixed costand enhancing sales and service efficiency in order to realize strong
profitability.

Auto ID & Printer Business GroupWe will strive to enforce our business basis andits profitability for expanding our sales areas bothon the domestic and international front, cultivating
new markets and customers, and releasing new
products, etc. in order to enforce both business basis
and its profitability.

Consolidated Balance Sheets
March 31, 2009 and 2008

Thousands of
U.S.dollars (Note 1)

Millions of yen

ASSETS

2009

2008

2009

Cash and cash equivalents¥68,532¥63,958$697,669

Trade notes and accounts receivable

58,35376,995594,045

Inventories

34,93840,328355,675

Deferred income taxes (Note 9)

7,232

10,53773,623

Prepaid expenses and other current assets

9,833

10,511

100,102

Allowance for doubtful accounts(1,596)(3,239)(16,248)

Total current assets

177,292

199,090

1,804,866

Buildings and structures

31,262

28,985318,253

Machinery and equipment

29,984

31,912305,243

Tools, furniture and fixtures

56,71255,805577,339

Land

2,809

2,874

28,596

Current assets

Fixed assets
Property, plant and equipment:

Lease Assets
Less accumulated depreciation
Construction in progress

6,884

-

70,080(95,133)(89,730)(968,472)

3,541

3,856

36,04836,05933,702367,087

27,97041,223284,740

Intangible assets:
Goodwill
Other intangible assets

6,173

6,881

62,842

34,143

48,104

347,582

42

222

428

3,168

3,966

32,251

Deferred income taxes (Note 9)22,72021,485231,294

Other investments and other assets

8,469

7,471

86,216

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

Allowance for doubtful accounts

(161)

(140)

(1,639)34,23833,004

348,550

Total fixed assets

104,440

114,810

1,063,219

Total assets¥281,732¥313,900$2,868,085

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

2009

2008

2009

Trade notes and accounts payable¥40,503¥46,364$412,328

Short-term loans (Note 3)

11,802

13,853

120,147

1

621

10

1,178

-

11,992

726

3,524

7,391

Current liabilities

Current portion of long-term debt (Note 3)
Lease liabilities
Accrued income and other taxes
Accrued bonuses to directors and corporate auditors
Other current liabilities
Total current liabilities

-

92

-

49,59458,645504,876

103,804

123,099

1,056,744

3

28

31

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

3,852

-

39,214

Accrued retirement benefits (Note 4)30,41927,515

309,671

Allowance for retirement benefits for directors and corporate auditors

230

349

2,341

1,390

1,740

14,150Total long-term liabilities

35,894

29,632

365,407

Total liabilities

139,698

152,731

1,422,151

39,971

39,971

406,912

Capital surplus

52,98652,989539,408

Retained earnings

47,22951,113

480,800

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:
12,925,892 shares in 2009

(5,363)-(54,596)

10,598,347 shares in 2008-

(4,141)-

Total shareholders' equity

134,823

139,932

1,372,524

164

613

1,670

Valuation and Translation adjustment
Unrealized holding gains on securities
Net deferred profits on hedges

(279)

-

(2,840)(6,557)(659)(66,752)(6,672)(46)(67,922)

46

-

468

13,837

21,283140,863

Total Net assets

142,034

161,169

1,445,933

Total liabilities and Net assets¥281,732¥313,900$2,868,085

Foreign currency translation adjustments
Total valuation and translation adjustments
Share subscription rights
Minority interest in consolidated subsidiariesConsolidated Statements of Operations
Years ended March 31, 2009 and 2008

Thousands of
U.S.dollars (Note 1)

Millions of yen

2009

2008

2009

Net sales¥422,601¥492,970$4,302,158

Cost of sales (Note 8)

228,434

262,632

2,325,501

194,167

230,338

1,976,657

184,044204,263

1,873,603

10,12326,075103,054

925

1,514

9,417

-

225

-

Interest expense

(610)

(824)

(6,210)Restructuring cost

(1,365)(947)(13,896)

Other, net (Note 7)(3,631)(3,802)(36,964)

Income before income taxes and minority interest

5,442

22,241

55,401

Current

1,377

7,339

14,018Deferred

2,119

(226)

21,572

Income before minority interest

1,946

15,12819,811

(688)

1,746

(7,004)¥2,634¥13,382$26,815Gross profit
Selling, general and administrative expenses (Note 6 and 8)
Operating income
Non-operating income and expenses:
Interest and dividend income
Gain on business transfer of Home Electric Appliances business (Note 14)

Income taxes (Note 9):

Minority interest in income of consolidated subsidiaries
Net income

Yen

Per share data

2009

2008

2009

Net income-Basic¥9.53¥48.20$0.097

Cash dividends¥5.00¥12.00$0.051

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



U.S.dollars

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2009 and 2008

Millions of yen

Common stock

Balance at March 31, 2007
Net income for the year
Cash dividends (Note 18)
Purchases of treasury stock
Retirement of treasury stock
Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

¥39,971¥39,971

Shareholder's equity
RetaindTreasury stock, Total shareholder'sCapital surplus
earnings
at costequity¥52,9872¥52,989¥42,452
13,382(3,193)(1,528)¥51,113¥(4,062)(81)
2¥(4,141)¥131,348
13,382(3,193)(81)
4(1,528)¥139,932

Millions of yen

Balance at March 31, 2007
Net income for the year
Cash dividends (Note 18)
Purchases of treasury stock
Retirement of treasury stock
Changes by revision of consolidation scope
Other, net
Balance at March 31, 2008

Valuation and Translation adjustments
Net unrealized holding Net deferred profits on Foreign currency
Total valuation andgain on securities
hedgestranslation adjustments translation adjustments¥1,058
(445)
¥613

3
(3)
-

¥4,957(5,616)¥(659)¥6,018(6,064)¥(46)

Minority
interests

Total net assets¥21,447(164)¥21,283¥158,813
13,382(3,193)(81)
4(1,528)(6,228)¥161,169

Millions of yen

Shareholder's equity

Balance at March 31, 2008
Net income for the year
Cash dividends (Note 18)
Purchases of treasury stock
Retirement of treasury stock
Changes by accounting standard
Other, net
Balance at March 31, 2009

Common stock

Capital surplus

Retaindearnings

Treasury stock,at cost¥39,971¥39,971¥52,989(3)¥52,986¥51,113
2,634(3,180)(3,407)69¥47,229¥(4,141)(1,238)16¥(5,363)

Total
shareholder'sequity¥139,932
2,634(3,180)(1,238)13(3,407)
69¥134,823

Millions of yen

Balance at March 31, 2008
Net income for the year
Cash dividends (Note 18)
Purchases of treasury stock
Retirement of treasury stock
Changes by accounting standard
Other, net
Balance at March 31, 2009

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

¥613
(449)
¥164

(279)
¥(279)(¥659)(5,898)¥(6,557)¥(46)(6,626)¥(6,672)

Share
subscription
rights46¥46

Minority
interests

Total net assets¥21,283(7,446)¥13,837¥161,169
2,634(3,180)(1,238)13(3,407)(13,957)¥142,034

Thousands of U.S. dollars

Shareholder's equity

Balance at March 31, 2008
Net income for the year
Cash dividends (Note 18)
Purchases of treasury stock
Retirement of treasury stock
Changes by accounting standard
Other, net
Balance at March 31, 2009

Common stock

Capital surplus

Retaindearnings

Treasury stock,at cost$406,912$406,912$539,438(31)$539,408$520,340
26,815(32,373)(34,684)702$480,800$(42,156)(12,603)163$(54,596)

Total
shareholder'sequity$1,424,534
26,815(32,373)(12,603)132(34,684)702$1,372,524

Thousands of U.S. dollars

Balance at March 31, 2008
Net income for the year
Cash dividends (Note 18)
Purchases of treasury stock
Retirement of treasury stock
Changes by accounting standard
Other, net
Balance at March 31, 2009

Valuation and Translation adjustments
Net unrealized holding Net deferred profits on Foreign currency
Total valuation andgain on securities
hedgestranslation adjustments translation adjustments$6,240(4,571)$1,670(2,840)$(2,840)($6,709)(60,043)$(66,752)($468)(67,454)$(67,922)

Share
subscription
rights

$0
468
$468

Minority
interests

Total net assets$216,665(75,802)$140,863$1,640,731
26,815(32,373)(12,603)132(34,684)(142,085)$1,445,933

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 2008Consolidated Statements of Cash Flows
Years ended March 31, 2009 and 2008

Thousands of
U.S.dollars (Note 1)

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 business transfer of Home Electric Appliances business (Note 14)
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 payments
Income taxes refund
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 16)
Proceeds from sales of investment securities
Payments for business acquisition (Note 16)
Payments of loan receivable
Proceeds from loan receivable
Proceeds from business transfer of Home Electric Appliances business (Note 14)
Proceeds from liquidation of non-consolidated subsidiaries (dormant)
Other
Net cash used in investing activities
Cash flows from financing activities
Proceeds (Repayments) of short-term loans, net
Repayments of long-term debt
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
Increase in cash and cash equivalents resulting from:
Subsidiaries inclusion in consolidation
Cash and cash equivalents at end of year

2009

2008

2009

¥5,442¥22,241$55,401

16,973(1,342)
2,824
(925)
610
264
(7)
22
1,365

13,821(252)(185)(1,514)
824
327
7
141
(225)
947

172,788(13,662)
28,749(9,417)
6,210
2,688
(71)
224
13,896

10,495
1,861
723(9,926)28,379
909
(614)
(37)
(4,378)2,504
26,763

12,192
8,799(25,802)(9,211)
22,1101,523(832)(1,486)(12,301)
9,014

106,841
18,945
7,360(101,049)
288,903
9,254(6,251)(377)(44,569)
25,491
272,451(11,141)298(2,121)(6)
21(1,133)
(19)
40
182
464
(13,415)(10,800)
413(4,501)
(204)
(533)
19
(38)
63
1,886
177
(13,518)(113,417)
3,034(21,592)(61)
214(11,534)
(193)
407
1,853
4,724
(136,565)

(860)
(585)
(1,238)(3,180)(576)(911)(7,350)(1,425)
4,573
63,958(4,262)(685)(82)(3,193)(595)
4(8,813)(3,410)(16,727)
79,736(8,755)(5,955)(12,603)(32,373)(5,864)(9,274)(74,824)(14,507)
46,555651,105-

949-¥68,532¥63,958$697,669* By applying the "Accounting Standard for Lease Transactions" and the "Implementation Guidance for Accounting Standard forLease Transaction", the impact of non-financial transaction on assets and liabilities is ¥3,653 ($37,188) and ¥3,483 ($35,458) million
respectively.

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

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 ¥98.23= US$1.00 prevailing as of March 31, 2009. 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,
2009 and 2008, the accounts of 79 and 87 subsidiaries areconsolidated, respectively. All significant inter-company
transactions and accounts are eliminated in consolidation.
All assets and liabilities of the subsidiaries are revaluated on
acquisitions, if applicable. The difference between the cost ofinvestments in subsidiaries and the equity in their assets andliabilities at the dates of acquisition is recognized on goodwill in
the consolidated balance sheet and principally amortized by thestraight-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, 2009 and 2008.
From the perspective of immateriality, the investments in theremaining unconsolidated subsidiaries and affiliated companies
are stated at cost.
Certain subsidiaries have year end which differs from that of
the Company. As a result, adjustments have been made for any
significant transactions that took place during the period between
the year end of the subsidiaries and the year end of the Company.

(B) Foreign Currency Translation
Revenue and expense accounts of foreign subsidiaries aretranslated into yen using the annual average rate during the year.
The balance sheet accounts, except for the components of net
assets, are translated at the rate in effect at the balance sheet date.
The components of net assets are translated at their historicalrates. Translation adjustments are presented as a component of“Valuation and Translation adjustments” under Net Assets in the
consolidated balance sheets.
Foreign currency transactions are measured at the applicablerates of exchange prevailing at the transaction dates, unlesshedged by foreign exchange contracts. Assets and liabilities
denominated in foreign currencies at the balance sheet date arere-measured at the applicable rates of exchange prevailing at thatdate, unless hedged by foreign exchange contracts. Exchange
differences are charged or credited to operations.

(C) Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid investments,
generally with original maturates of three months or less.

(D) Investment Securities
Marketable securities classified as “Other securities” arereported at fair value with unrealized holding gains or losses, netof taxes, presented as a component of “Valuation and Translation
adjustments” under Net Assets in the consolidated balance
sheets. Cost of securities sold is determined by the moving
average method.
Non-marketable securities classified as “Other securities”
are carried at cost, which is determined by the moving averagemethod.

(E) Inventories
Prior to April 1, 2008, finished goods, merchandises and semifinished components are principally stated at the lower of cost,
determined by the first-in, first-out method, or market, or at thecost determined by the specific cost method. Work-in-process isprincipally stated at the lower of cost, determined by the moving
average method, or market, or at the cost determined by the
specific cost method. Raw materials are principally stated at thelower of cost, determined by the moving average method, ormarket.
Effective for the fiscal year 2008, the Accounting Standard for
Measurement of Inventories (ASBJ Statement No 9) has been
applied from the current consolidated fiscal year. The value
stated on the balance sheet is calculated by the lower of the costor market prices in consideration of its profitability. This changein accounting had no impact on operating income and income
before income taxes and minority interest.

(F) Property, Plant and Equipment and Depreciation
Property, plant and equipment are carried at cost. Material
improvements are capitalized, but repair and maintenanceincluding minor improvements are charged to income.
Depreciation of property, plant and equipment is generally
computed by the declining-balance method for the Company
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
Effective for the year ended March 31, 2009, under a revisionof the Corporation Tax Law, the Company and domestic
subsidiaries changed the depreciation method into that based on
the revised Corporation Tax Law. With regard to the depreciationof machinery and equipment, the duration has changed into
7-13 years from 7-11 years. By the adoption of this change, theoperating income, the ordinary income and the income before tax
have decreased by ¥335 million each.

(G) Intangible Assets and Amortization(M) Income Taxes, Deferred Tax Assets and Liabilities

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.

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.

(H) Allowance for Doubtful Accounts
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 the past.

(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 such bonuses
were accrued.

(J) Retirement Benefits
Upon retirement or termination of employment, employees of
the Company and its domestic subsidiaries are generally entitledto lump-sum payments determined by reference to their current
basic rate of pay, length of service and conditions under which
the termination occurs.
The Company and its domestic subsidiaries provide allowancefor the retirement benefits and make contributions to a noncontributory tax-qualified pension plans (the ”Funded Plan”) for
employees’ severance indemnities payable, as part of the existing
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) Allowance for retirement benefits for directors
and corporate auditors

Consumption taxes withheld from sales and paid uponpurchasing goods and services by the Company are not included
in revenues and expenses.

(O) Derivative Financial Instruments
The Company and certain subsidiaries have entered into
forward exchange contracts to hedge the risk of 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.

(P) Revenue Recognition
Sales are generally recognized at the time of shipment of thegoods to customers except for sales of certain product, which arerecorded in the accounts upon customer acceptance.

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

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

(R) Impairment of Fixed Assets(L) Leases(S) The “Practical Solution on Unification of
Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial
Statements”

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.
Effective for the consolidated fiscal year beginning April 1,
2008, the Companies have adopted “Accounting Standards
for Lease Transactions” and “Implementation Guidance for
Accounting Standards for Lease Transactions”. By applying
these standards, depreciation of assets under finance leases,
entered into on and after April 1, 2008, which do not transfer
ownership of the leased assets to the lessee, are calculated by thestraight-line method over the lease period with no residual value.
This change in accounting had no impact on operating income
and income before income taxes and minority interest.

10(N) Consumption taxes

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.

Effective for the fiscal year 2008, the Company has adopted
the “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial
Statements” (ASBJ PITF No 18, issued May 17, 2006) andcarried out necessary consolidated financial adjustments. By the
adoption of this rule, the retained earnings at the beginning of
the year decreased by ¥3,406 million mainly due to amortizing
goodwill of subsidiaries in America. The operating income andthe income before income taxes and minority interest have also
decreased by ¥1,659 million, respectively.

3. Short-Term Loans and Long-Term Debt
The average interest rate for short-term loans outstanding at
March 31, 2009 and 2008 is 3.2% and 5.1%, respectively.
The long-term debt (including lease liabilities) at March 31,
2009 and 2008, consists of the following :Thousands of
U.S.dollars

Millions of yen

2009

2008

2009

Long-term debt:
Due serially through 2017, with interest
rate of 3.72%¥3Less current portion
0
¥3

¥649
621
¥28

$30
0
$30

-

$51,206
11,992$39,214

Lease liabilities
Less current portion¥5,0301,178¥3,852

The aggregate annual maturities of long-term debt (including
the current portion) outstanding at March 31, 2009 are as
follows:
Year ending
March 31

2010
2011
2012
2013 and thereafter

Millions of yen

1
1
1
¥3

Thousands of
U.S.dollars

10
10
10
$30

The aggregate annual maturities of lease liabilities (including
the current portion) outstanding at March 31, 2009 are as
follows:
Year ending
March 31

2010
2011
2012
2013 and thereafter

Millions of yen

Thousands of
U.S.dollars¥1,7671,342
649
94¥3,852$17,988
13,662
6,607
957$39,214

The following table sets forth the funded status of the plans,
and the amounts recognized in the consolidated balance sheets asof March 31, 2009 and 2008 for the Companies' defined benefit
plans:
Thousands of
U.S.dollars

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
Prepaid pension costAccrued retirement benefit obligation

2009

2008

2009

¥(78,255)
28,406(49,849)
11,0658,530¥(78,554)
35,774(42,780)
5,815
9,633

$(796,651)
289,179(507,472)
112,644
86,837(30,254)165¥(30,419)(27,332)
183¥(27,515)(307,991)
1,680$(309,671)

The components of retirement benefit expenses for the years
ended March 31, 2009 and 2008 are as follows:
Thousands of
U.S.dollars

Millions of yen

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

2009

2008

2009

¥3,256
1,565(1,046)1,287
1,251¥6,313¥2,949
1,469
(996)
1,038
1,224
¥5,684$33,147
15,932(10,648)
13,102
12,735$64,268

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, 2009 and 2008 were ¥76 millions ($774
thousands) and ¥123 millions, respectively.
The assumption used in accounting for the above plans in 2009
and 2008 are as follows:
2009

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

2008

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

4. Retirement Benefits

5. Contingent liabilities

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.

Contingent liabilities at March 31, 2009 and 2008 are as
follows:
Thousands of
U.S.dollars

Millions of yen

Trade notes receivablediscounted or endorsed
Guarantees on lease contracts
Guarantees on employees' bank loans
Subsidiary's guarantee on
customers' bank loans

2009

2008

2009

¥1,033101
731¥1,579193954$10,516
1,028
7,442

2

9

20

11

6. Selling, General and Administrative
ExpensesSignificant components of the Companies' deferred tax assets
and liabilities at March 31, 2009 and 2008 are as follows:

Major components of selling, general and administrative
expenses at March 31, 2009 and 2008 are as follows:
Thousands of
U.S.dollars

Millions of yen

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

2009

2008

2009

¥7,445
3,276
97,382
3,928
20,0707,849¥8,071
4,977
102,816
4,138
23,716
12,480$75,792
33,350991,367
39,988204,316
79,904

7. Non-Operating Income and Expenses Other, Net"Other, net" for the years ended March 31, 2009 and 2008,
consists of the following:Thousands of
U.S.dollars

Millions of yen

Write-down and disposal of inventories
Loss on sales or disposals ofproperty, plant and equipment
Foreign exchange gain or loss
Other, net

2009

2008

2009

¥(491)¥(720)$(4,998)(400)(1,666)(1,074)¥(3,631)(327)(1,219)(1,536)¥(3,802)(4,072)(16,960)(10,934)$(36,964)

8. Research and Development Expenses
Research and development costs charged to income for theyears ended March 31, 2009 and 2008 are as follows:
2009

2008

2009

¥29,592¥30,677$301,252

9. 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 2009 and 2008.
Statutory tax rate
Effect of :Different tax rates applied to income of foreign subsidiaries
Expenses not deductible for income tax purposes
Changes in valuation allowance
Corporation tax deduction for research expenditures
Amortization of goodwill of foreign subsidiaries
Other, net

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

2009

2008

2009

¥11,881
9,174
3,151

¥10,814
8,826
3,717

$120,951
93,39332,0781,286
6,500
31,992(1,658)30,334

3,027
8,118
34,502(1,500)33,002

13,092
66,171
325,685(16,879)
308,806

317
111
(45)
383
¥29,951

380
421
179
980
¥32,022

3,227
1,130
(458)
3,899
$304,907

10. Leases
The year ended in March 31, 2008

(A) Finance leases
The following pro forma amounts represent the acquisition
cost, accumulated depreciation and net book value of leased
property as of March 31, 2008, which would have been reflectedin the consolidated balance sheets if the finance lease accounting
had been applied to the finance lease transactions currently
accounted for as operating leases:
Millions of yen

Thousands of
U.S.dollars

Millions of yen

2009

2008

40.6%

40.6%

(19.3)
5.7
0.5
(9.0)
44.7
1.0
64.2%

(10.9)
2.4
(0.7)
(3.4)
4.0
32.0%

Thousands of
U.S.dollars

Millions of yen

2008
Acquisition cost

Machinery and equipment
Tools, furniture and fixtures

¥347
737
¥1,084

Accumulated depreciation

New book value

¥233
410
¥643

¥114
327
¥441

(1) Future minimum lease payments (including the interest
portion thereon) subsequent to March 31, 2008 for financelease transactions accounted for as operating leases are
summarized as follows:
Millions of yen

2008

Due within one year
Due after one year

¥144
297
¥441

(2) Lease payments for the year ended March 31, 2008, are ¥189
millions ($1,886 thousands).

(B) Operating leases
Future minimum lease payments subsequent to March 31, 2008
for noncancelable operating leases are summarized as follows:
Millions of yen

2008

12

Due within one year
Due after one year

¥215
303
¥518

The year ended in March 31, 2009

(E) Other related information(A) Finance Lease as a lessee

Future minimum lease payments for noncancelable operatingleases are summarised as follows:

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, furnituresand 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 resudual value.

(B) Operating Lease
Future minimum lease payments for noncancelable operatingleases are summarised as follows:

Due within one year
Due after one year

Millions of yen

Thousands of
U.S.dollars

2009

2009

¥215
255
¥470

$2,1892,596$4,785(C) Finance Lease as a lessor
1. Details of investment lease1-1) Investment lease - current assets
Lease revenues receivable
Interests receivable1-2) Investment lease - others
Lease revenues receivable
Interests receivable

Within one year
Between 1 to 2 years
Between 2 to 3 years
Between 3 to 4 years
Between 4 to 5 years
More than 5 years

Millions of yen

Thousands of
U.S.dollars

2009

2009

¥221
(21)
¥200

$2,250(214)$2,036

¥261
(25)
¥236

$2,657(255)$2,402

Investment
lease

Thousands of
U.S.dollars

¥221
221
39
¥481

$2,2502,250
397¥4,897(D) Operating Lease

Thousands of
U.S.dollars

2009

2009

-

-

638
907
¥1,545

6,495
9,233$15,728638
907¥1,545

6,495
9,233$15,728

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

11. Securities(1) Information regarding marketable Other Securities as ofMarch 31, 2009 is as follows:
Millions of yen

Acquisition
cost

2009
Carrying
value

Unrealized
gain (loss)

Acquisition
cost

2008
Carrying
value

Unrealized
gain (loss)

Securities whose carrying value exceeds their acquisition cost:
Stocks¥855 ¥1,404¥548¥911 ¥1,849
Securities whose acquisition cost exceeds their carrying value:
Stocks
270
214
(56)
248
210
Total
¥1,125 ¥1,618¥492 ¥1,159 ¥2,059

¥938
(38)
¥900

Thousands of U.S.dollars

Acquisition cost

2009
Carrying value

Unrealized gain (loss)

Securities whose carrying value exceeds their acquisition cost:
Stocks$8,704$14,293
Securities whose acquisition cost exceeds their carrying value:
Stocks
2,749
2,179
Total
$11,453$16,472$5,579(570)$5,009(2) The proceeds from sales of securities, except those of theaffiliated companies, for the years ended March 31, 2009 and2008 were ¥19 millions ($193 thousands) and ¥5 millions,
respectively. The realized gains on those sales for the years
ended March 31, 2009 and 2008 were ¥6 millions ($61
thousands) and ¥4 millions, respectively.
(3) Information regarding non-marketable securities as of March
31, 2009 and 2008 is as follows.
Millions of yen

2009

2008
Carrying value

Future minimum lease payments for noncancelable operatingleases are summarised as follows:
Millions of yen

Due within one year
Due after one year

Millions of yen

Thousands of
U.S.dollars

2009

2009

¥337
277
¥614

$3,431
2,820$6,251Other securities
Unlisted stocks
OthersTotal¥1,550¥1,550¥1,907¥1,907

Thousands of U.S.dollars

2009
Carrying value

Other securities
Unlisted stocks
OthersTotal$15,779$15,77913

12. Derivative Financial Instruments
Fair value information of the derivative financial instruments at
March 31,2009 and 2008 is summarized below according to thedisclosure requirements applicable to the respective year:
Millions of yen

2009
Contract
Unrealized
Fair value
amountgain (loss)

Forward exchange contracts:
Sell Euros and others¥2,046 ¥2,186 ¥(140)2008
Contract
Unrealized
Fair value
amountgain (loss)¥1,507 ¥1,491¥16

Depreciation and Amortization
Retail Information Systems
Document Processing & Telecommunication Systems
Home Electric Appliances & Others
Consolidated¥2,803
10,94672¥13,821

Capital Expenditures
Retail Information Systems
Document Processing & Telecommunication Systems
Home Electric Appliances & Others
Consolidated¥2,936
12,13337¥15,106

Thousands of U.S.dollars

2009
Contract
amountForward exchange contracts:
Sell Euros and others$20,829

Fair value

Unrealized gain
(loss)$22,254$(1,425)(B) Business Segment for the year ended in March 31, 2009
The Companies operate in three business segments in the fiscal
year 2008.

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

13. Segment Information(A) Business Segment for the year ended in March 31, 2008
The Companies operated in three business segments in thefiscal year 2007.
Millions of yen

2008

Net Sales
Retail Information Systems
Unaffiliated customers
Intersegment
Total
Document Processing & Telecommunication Systems
Unaffiliated customers
Intersegment
Total
Home Electric Appliances & Others
Unaffiliated customers
Intersegment
Total
Eliminations
Consolidated

14¥189,877
2,444
192,321300,511
6,448
306,959
2,582
313
2,895
(9,205)¥492,970

Operating Expenses
Retail Information Systems
Document Processing & Telecommunication Systems
Home Electric Appliances & Others
Eliminations
Consolidated¥181,990
291,238
2,873(9,205)¥466,895

Operating Income
Retail Information Systems
Document Processing & Telecommunication Systems
Home Electric Appliances & Others
Eliminations
Consolidated¥ 10,331
15,721
23¥26,075

Identifiable Assets
Retail Information Systems
Document Processing & Telecommunication Systems
Home Electric Appliances & Others
Corporate and Eliminations
Consolidated¥77,315
201,002400
35,183¥313,900

Millions of yen

Thousands of
U.S.dollars

2009

2009

¥166,738
3,770
170,508$1,697,424
38,3791,735,803

216,037
9,671
225,708

2,199,298
98,453
2,297,751

39,826
4,358
44,184(17,800)¥422,601

405,436
44,365449,801(181,207)$4,302,158

Operating Expenses
Retail Solution Business Group
Document Systems Business Group
Auto-ID and Printer Business GroupEliminations
Consolidated¥163,867
223,644
42,767(17,800)¥412,478$1,668,197
2,276,738
435,376(181,207)$4,199,104

Operating Income
Retail Solution Business Group
Document Systems Business Group
Auto-ID and Printer Business GroupEliminations
Consolidated¥6,642
2,064
1,417¥10,123$67,617
21,012
14,425$103,054

Identifiable Assets
Retail Solution Business Group
Document Systems Business Group
Auto-ID and Printer Business Group
Corporate and Eliminations
Consolidated¥65,762
147,591
25,84542,534¥281,732$669,470
1,502,504
263,107433,004$2,868,085

Depreciation and Amortization
Retail Solution Business Group
Document Systems Business Group
Auto-ID and Printer Business Group
Consolidated¥3,15013,016808¥16,974$32,068
132,5058,226$172,799

Net Sales
Retail Solution 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

Capital Expenditures
Retail Solution Business Group
Document Systems Business Group
Auto-ID and Printer Business Group
Consolidated¥3,907
10,627580¥15,114$39,774
108,185
5,905$153,864

Corporate assets mainly consist of cash, time deposits, securities and investments withfinancial institutions of the Company.
		 Corporate assets at March 31, 2009 and 2008, are ¥43,422 millions ($442,043
thousands) and ¥35,723 millions, respectively.
		 The business segment has been changed from the fiscal year 2008.
			

(Note2) Corporate assets mainly consist of cash, time deposits, securities and investments withfinancial institutions of the Company.
		 Corporate assets at March 31, 2009 and 2008, are ¥43,422 millions ($442,043
thousands) and ¥35,723 millions, respectively.

(C) Net Sales by Region
Millions of yen(Note)(C) Geographic Segments
Millions of yen

Thousands of
U.S.dollars

2009

2008

2009

¥215,419
70,266285,685¥234,845
85,554
320,399$2,193,006
715,3212,908,327

81,065
1,855
82,920100,847
1,679
102,526825,257
18,884
844,141

91,3882,398
93,786

115,458
6,154
121,612930,347
24,412
954,759

34,73052,26886,998(126,788)¥422,601

41,82064,933
106,753(158,320)¥492,970

353,558
532,098
885,656(1,290,726)$4,302,158

Operating Expenses
Japan
American States
EuropeAsia and others
Eliminations
Consolidated¥282,392
83,47593,55882,736(129,684)¥412,478¥311,415
97,714
115,864
98,714(156,812)¥466,895$2,874,804
849,791
952,438
842,268(1,320,208)$4,199,104

Operating Income
Japan
American States
EuropeAsia and others
Eliminations
Consolidated¥3,293
(555)
228
4,262
2,896
¥10,123¥8,984
4,812
5,748
8,038
(1,507)¥26,075$33,523(5,650)2,321
43,38829,482$103,054

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

Identifiable Assets
Japan
American States
EuropeAsia and others
Corporate and Eliminations
Consolidated¥203,938
26,88947,941
37,321(34,356)¥281,732¥232,706
33,58560,06442,867(55,322)¥313,900$2,076,127
273,735
488,048
379,935(349,751)$2,868,085(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

Net SalesJapan
American States
EuropeAsia and others
Net sales(Note)

2009

2008¥190,828
97,42598,80235,546¥422,601¥203,070
125,085
124,572
40,243¥492,970

Thousands of
U.S.dollars

2009$1,942,665
991,805
1,005,823
361,865$4,302,158

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.

14. Business Combination
Under the resolution of the board of directors' meeting held
on December 25, 2006, the business transfer of Home ElectricAppliances business was carried out on June 1, 2007.
(1) Background
The Home Electric Appliances business was transferred to
TOSHIBA HA PRODUCTS Co., Ltd., a subsidiary of TOSHIBACONSUMER MARKETING CORPORATION to unify
development, manufacturing and sales of the home electric
appliances business for more efficient business operations in the
TOSHIBA group.
This enabled us to strengthen our operation, concentrating in
Retail Information Systems business and Document Systems andTelecommunications business.
(2) Business Segment Affected
Home Electric Appliances business is included in the businesssegment "Home Electric Appliances & Others".
(3) Transferred Business1. The business concerned
Development and manufacturing of home electric
appliances such as cleaners, food preparation devices,
small motors, etc.
2. Scale of the operation
for the year ending March, 2007
Millions of yen

Consolidated sales
Consolidated operating income¥13,559¥308(4) Consideration and Gain
The Home Electric Appliances business was sold for ¥1,886
million with the related gain on sales of ¥225 million.
The related assets and liabilities decreased by the transfer andproceeds from the transfer are summarized as follows.
Millions of yen

Current assets
Fixed assets
Long-term liabilities
Assets and liabilities decreased by the transfer
Gain from the transfer
Transfer value¥2,021
1,701
2,061
1,661
225
1,886

15

15. Stock Option Plan

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

The year ended March 31, 2008
Not applicable

Stock market volatility (Note 1)

The year ended March 31, 2009
1. The amount and the accounting subject in relation to thestock option in the fiscal year 2008 Selling, General and
Administrative Expenses: ¥46 million ($468 thousand).
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

(Note) 1.
2.

The amount is converted into the number of shares.
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 its circumstances
Addressed is the amount of stock option existed in the fiscal
year 2008.
As for the number of stock option, it is converted into thenumber of shares.
2-1. The number of stock option
The first new share subscription rightas share-reward type stock option
Before the resolution
March 31, 2008

3 years and 5 month

Estimated dividents (Note 3)¥12 ($0.12) per share

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

0.94%

The figure is calculated based on actual share data from February 14, 2005 up to theweek 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 estimated figure is based on the actual divident amount at March 31, 2008.
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.

16. Acquisition of investments in newly
consolidated subsidiaries
In the fiscal year 2007, the Company consolidated AI
S O L U T I O N S C O R P O R AT I O N b y t h e a c q u i s i t i o n o f
investments.
The related assets and liabilities at the date of acquisition of
AI SOLUTIONS CORPORATION, the acquisition cost ofinvestments of AI SOLUTIONS CORPORATION and the net
expenses for the acquisition are summarized as follows.
Millions of yen

Current assets
Fixed assets
Current liabilities
Long-term liabilities
Acquisition cost of investments of AI SOLUTIONS CORPORATIONCash and Cash equivalents of AI SOLUTIONS CORPORATION
Expenses for the Acquisition of AI SOLUTIONS CORPORATION

¥414
384
24
191
583
50
533

-

Offered83,000Cancelled-

Vested-Outstanding

83,000In the fiscal year 2008, one of the subsidiaries of TABS,
Toshiba America Business Solutions, has acquired business.
The related assets and liabilities in relation to the acquisition ofbusiness are summarised as follows:

After the resolution
March 31, 2008-

Vested-Exercised-

Cancelled-

Outstanding-

2-2. Per share data
The first new share subscription rightas share-reward type stock option
Exercised price¥1

The avarage price at the time of
exercising
Official price at the date of offered($0.01)-¥560 ($5.70)

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

16

28.1%

Estimated residual period (Note 2)

Millions of yen

Current assets
Fixed assets
Current liabilities
Long-term liabilities
Acquisition cost of business transfer
Cash and Cash equivalents
Expenses for the business acquisition

¥283
988
132
1,139
7
1,132

Thousands of
U.S.dollars$2,881
10,058
1,344
11,59571
11,524* There is no additional acquisition or consolidation in the fiscal
year 2008.

17. Transactions with Related Parties(A) Transactions with Fellow Subsidiaries for the year
ended March 31, 2008.

(B) Transactions with Fellow Subsidiaries for the year
ended March 31, 2009.
StatusName

Address

CapitalBusiness

Percentage of voting
rights held (%)

None

Balance at
Fiscal YearEnd

(Millions of yen)ToshibaSolutions
Corporation

Minato-ku,
Tokyo¥23,500($239,234)

Development,
designing,
manufacturing,sales andmaintenanceof computer
systems andcommunication
systems, etc.

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts

Account item

Sales of our
products

Sales of document
processing andtelecommunicationequipments, etc.

¥7,241($73,715)

Trade notes
and accountreceivable(¥=Million, US$=Thousand)Status

Subsidiaryof the parent
companyName

ToshibaSolutions
Corporation

Address

Minato-ku,
Tokyo

CapitalBusiness¥20,000

Development,
designing,
manufacturing,sales andmaintenanceof computer
systems andcommunication
systems, etc.

Relationship
Dispatch of
executive
officers, etc.

Business
Relationship

None

Sales of our
products

Percentage of voting
rights held (%)

None

Transactions

Transaction
Amounts

Account item

Balance at
Fiscal YearEnd

Sales of document
processing andtelecommunicationequipments, etc.

¥7,865Trade notes
and accountreceivable¥3,901

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

Subsidiaryof the parent
company

Toshiba
CapitalCorporation

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.
Deposits of
None
funds

Address

Percentage of voting
rights held (%)

CapitalBusiness

Minato-ku,
Tokyo

¥100

Financing of
TOSHIBAGroup domestic
companies

None

Transactions

Transaction
Amounts

Account item

Balance at
Fiscal YearEnd

Deposits of
funds

*1

Cash and Cashequivalents¥31,796*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)Subsidiaryof the parent
companyName

Toshiba
Singapore Pte.
Ltd.

Address

Singapore

Capital(Thousands ofSingapore dollars)

S$11,600

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Transaction
Amounts

Sales of our
products

Sales of document
processing andtelecommunicationequipments, etc.

¥10,673

None

Business

None(Millions of yen)

(Millions of yen)

¥3,586($36,506)

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

Percentage of voting
rights held (%)

Minato-ku,
Tokyo

¥100
($1,018)

Financing of
TOSHIBA Groupdomestic companies

None

Transactions

Transaction
Amounts

Account item

Balance at
Fiscal YearEnd

StatusName

Address

Subsidiaryof the parent
company

Toshiba
CapitalCorporation

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

(Millions of yen)

(Millions of yen)

(Millions of yen)

¥35,718($363,616)

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

Status

Subsidiaryof the parent
company

Percentage of voting
rights held (%)

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

None

Account item

Balance at
Fiscal YearEnd

Trade notes
and accountreceivable¥3,161None

Deposits offunds

Deposits of
funds

*1

Cash and Cashequivalents

Receivedinterest andAccruedinterest are¥1($10) and¥223 ($2270)
respectively.

With regard to the amounts above, Transaction Amounts include consumption taxes and Balance
at Fiscal Year End doesn't include them.
*1 Concerning Deposits of funds, it's difficult to figure out Transaction Amounts because fundsettlement is performed whenever needed.
Therefore, only Balance at Fiscal Year End 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.
StatusName

Address

CapitalBusiness

Percentage of voting
rights held (%)

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

Account item

Balance at
Fiscal YearEnd

Deposits offunds

Deposits of
funds

None

(Millions of yen)

*1

(Millions of yen)

Cash and Cashequivalents¥6,214($63,260)
Receivedinterest:¥112 ($1,140)

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

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

*1 Concerning Deposits of funds, it's difficult to figure out Transaction Amounts because fundsettlement is performed whenever needed.
Therefore, only Balance at Fiscal Year End is stated.

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

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

17

StatusName
Toshiba
International
Finance Plc.

London, UK

Relationship
Dispatch of
Business
executive
Relationshipofficers, etc.

Transactions

Deposits offunds

Deposits offunds

Subsidiaryof the parent
company

None

CapitalBusiness

Percentage of voting
rights held (%)

GBP 5,000

Financingof corporate
subsidiaries
overseas etc.

None

Transaction
Amounts

Account item

Balance at
Fiscal YearEnd

Address(Millions of yen)

(Millions of yen)

Short-termloans payable*1¥3,744($38,115)Interest:¥87 ($886)

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

18. Cash Dividends(A) Cash dividends for the year ended March 31, 2008
(1) Cash dividends paid
(resolution)

Type of shares(Millions of yen)

Total amountof dividends

Dividends per
share
(yen)

Record date

¥1,666¥6

March, 31, 2007

Generalshareholders'Common stock
meeting held on
April 27, 2007
Board ofdirectors held on Common stock
October 31, 2007

Effective dateJune 7, 2007

¥1,527¥5.5(After generalshareholders'meeting)¥1,804

Dividend
resource

Retainedearnings

Dividends
per share

Record date Effective date

¥6.5

March, 31, 2008 June 2, 2008

(yen)(B) Cash dividends for the year ended March 31, 2009
(1) Cash dividends paid
(resolution)

Type of shares

Board ofdirectors held on Common stock
April 25, 2008
Board ofdirectors held on Common stock
October 30, 2008
(resolution)

Type of shares

Board ofdirectors held on Common stock
April 25, 2008
Board ofdirectors held on Common stock
October 30, 2008

(Millions of yen)

Total amountof dividends

Dividends per
share
(yen)

¥1,804¥6.5

March, 31, 2008 June 2, 2008

¥1,376¥5.0

September 30,2008 December 1, 2008

Total amountof dividends(Thousands of
U.S.dollars)

Dividends per
share(dollar)Record date

Record date

Effective date

Effective date

$18,365$0.07

March, 31, 2008 June 2, 2008

$14,008$0.05

September 30,2008 December 1, 2008

(2) Year end dividends of the following fiscal year
Not applicable

18

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

June 26,2008

Qualified beneficiaries

18 the Company's directors andcorporate officers
Type of shares for which new Common Stocksubscription rights offered
Maximum numbers of shares
83,000 (Note 1)
Exercise price¥1 (Note 2)

Subscription rights exercise period

From August 2, 2008 to August 1, 2038

C o n d i t i o n s f o r e x e r c i s i n g Subscription rights may be exercised insubscription rights
a lump sum within expiration cycle and
10 days after a beneficiary resigns fromdirectors or corporate officers .
Details regarding transfer of share C o n c e r n i n g a c q u i s i t i o n o f s h a r e
subscription rights
subscription rights from transfer,approval of the Company's board of
directors is required.
(Note) 1.

2.

Type of Total amountof dividends
shares (Millionsof yen)Board ofCommondirectors held on
stock
April 25, 2008

The year ended in March 31, 2008
(A) Stock Option Plan

September 30, 2007 December 3, 2007

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

19. Subsequent Event

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

(B) Change in Business Segment
Effective April 1, 2008, the Company changed its businesssegment. Corresponding to the changes in the businesscircumstances, the Company shifted from entity-based
segmentation to business-line segmentation, aiming at more
flexible business operation. The Company aims to expand
business more with this opportunity.
New Business groups and main products are as follows.
(1) Retail Solution Business GroupPOS systems, Cash register, Scales, etc.
(2) Document Systems Business Group
MFPs, Facsimiles, Inkjet heads, etc.
(3) Auto-ID & Printer Business Group
Bar-code systems, RFID systems, Printers, Specialized terminals,
etc.

The business segment information for the year ended March
31, 2008, under the new business segmentation is as follows.
Millions of yen

The year ended in March 31, 2009
Not applicable2008

Net Sales
Retail Solution Business Group
Unaffiliated customers
Intersegment
Total
Document Systems Business Group
Unaffiliated customers
Intersegment
Total
Auto ID & Printer Business Group
Unaffiliated customers
Intersegment
Total
Other
Unaffiliated customers
Intersegment
Total
Eliminations
Consolidated¥180,285
2,827
183,112264,154
6,378
270,532
45,9493,365
49,314
2,582
313
2,895
(12,883)¥492,970

Operating Expenses
Retail Solution Business Group
Document Systems Business Group
Auto ID & Printer Business Group
Other
Eliminations
Consolidated¥173,160
260,065
43,681
2,873(12,883)¥466,896

Operating Income
Retail Solution Business Group
Document Systems Business Group
Auto ID & Printer Business Group
Other
Eliminations
Consolidated¥9,952
10,4675,633
23¥26,075

Identifiable Assets
Retail Solution Business Group
Document Systems Business Group
Auto ID & Printer Business Group
Other
Corporate and Eliminations
Consolidated¥71,618
177,440
29,259400
35,183¥313,900

Depreciation and Amortization
Retail Solution Business Group
Document Systems Business Group
Auto ID & Printer Business Group
Other
Consolidated¥2,743
10,308698
72¥13,821

Capital Expenditures
Retail Solution Business Group
Document Systems Business Group
Auto ID & Printer Business Group
Other
Consolidated¥2,894
11,404771
37¥15,10619

20

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: 3,439 <Consolidated: 19,851> (as of March 2009)
Common Stock: ¥39,971 million (as of March 2009)
Stock Listing: Tokyo Stock Exchange (1st Section)

Board of Directors and Corporate Auditors
President and Chief Executive Officer (as of June 25, 2009)◊Mamoru Suzuki
Directors◊Yoshiyasu Kikuchi
Kazuaki Ushiyama
Keiichi Miura
Teruhiko Ukita
Toshio Yonezawa
Masahiko Fukakushi◊:Representative Director

Corporate Auditors

Takao Saito
Satoshi Yamato
Hideaki Hori
Hideo Tsushima

Main Consolidated Companies (as of March 31, 2009)• TOSHIBA AMERICA BUSINESS SOLUTIONS, INC.
• TOSHIBA TEC GERMANY IMAGING SYSTEMS GmbH• TOSHIBA TEC FRANCE IMAGING SYSTEMS S.A.
• TEC ENGINEERING CORPORATION• TOSHIBA TEC BUSINESS SOLUTIONS CORPORATION• TOSHIBA TEC EUROPE RETAIL INFORMATION SYSTEMS S.A.
• TOSHIBA TEC U.K. IMAGING SYSTEMS LTD.
• 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.