Investor's Guide

Disclaimer  This document is provided for the purpose of presenting relevant information relating to Toshiba Corporation (hereinafter “Toshiba”) and its consolidated subsidiaries and affiliates (together with Toshiba, hereinafter “Toshiba Group”) and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan.  The information contained in this document shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration, or qualification under the securities laws of any such jurisdiction.  This document contains forward-looking statements concerning future plans, strategies, and the performance of Toshiba Group.  These forward-looking statements are not historical facts; rather they are based on management’s assumptions and beliefs in light of the economic, financial, and other data currently available.  Since Toshiba Group promotes business in various market environments in many countries and regions, its activities are subject to a number of risks and uncertainties that, without limitation, relate to economic conditions, worldwide mega-competition in the electronics business, customer demand, foreign currency exchange rates, tax rules, regulations, and other factors. Toshiba therefore wishes to caution readers that actual results might differ from the expectations.  Toshiba Group undertakes no obligation to update any forward-looking statements contained herein.  Please refer to the latest annual securities report (Yuukashoken houkokusho) and the quarterly securities report (Shihanki houkokusho) for detailed information on Toshiba Group’s business risks. Both the annual securities report and the quarterly securities report are issued in Japanese only.  Toshiba Group’s fiscal year (FY) runs from April 1 to March 31.

Table of Contents

1. Who we are 1-1. At a Glance 1-2. Financial Highlights 1-3. History 1-4. Existential Threats and Rejuvenation 1-5. Current Portfolio 1-6. Proven Technology

2. Strategy 2-1. The Toshiba Next plan 2-2. Phase 1: 2019-2021 2-3. Portfolio Strategy 2-4. Recognize Megatrends, and Deliver Growth

3. Stable Growth as an Infrastructure Services Company 3-1. Market 3-2. Phase 2: Infrastructure Service Business Model 3-3. Strengths 3-4. Phase 3: Evolving to Become a CPS Technology Company 3-5. New Businesses

4. Maximizing Shareholder Returns 4-1. Shareholder Return Policy 4-2. Focusing on TSR 4-3. Financial Policy to Maximize Shareholder Return

5. ESG 5-1. Governance Initiatives 5-2. Environment Initiatives 5-3. Social Initiatives

6. Financials 6-1. Consolidated Historical Financials 6-2. Industry Segment Performance

7 Data

Committed to People, Committed to the Future.

The Essence of Toshiba

Toshiba Corporation introduces the “Essence of Toshiba” on July 1st, 2018.

The Essence of Toshiba illustrates our unwavering direction and values in all future corporate activities, and is the unifying force of Toshiba Group. It comprises three components: Basic Commitment of the Toshiba Group, Our Purpose, and Our Values.

Basic Commitment Our Purpose Our Values of the Toshiba Group

We are Toshiba. We have an unwavering drive to make and do Do the right thing things that lead to a better world. We act with integrity, honesty and openness, doing what's right—not A planet that's safer and cleaner. what's easy.

Committed to People, A society that's both sustainable and dynamic. A life as comfortable as it is exciting. Look for a better way Committed to the Future. We continually strive to find new and

better ways, embracing change as a That's the future we believe in. We see its possibilities, and work means for progress. At Toshiba, we commit to every day to deliver answers that will bring on a brilliant new day. raising the quality of life for By combining the power of invention with our expertise and desire Always consider for a better world, we imagine things that have never been – and people around the world, the impact make them a reality. We think about how what we do will ensuring progress that is in change the world for the better, both harmony with our planet. That is our potential. Working together, we inspire a belief in each today and for generations to come. other and our customers that no challenge is too great, and there's no promise we can't fulfill. Create together We collaborate with each other and We turn on the promise of a new day. our customers, so that we can grow together.

1. Who We Are 1-1. At a Glance

For over 145 years, Toshiba Corporation has pioneered innovations, technologies and products that have created value and contributed to a better world. From small beginnings in Tokyo, we have grown to a presence in over 30 countries, and can count over 125,000 employees around the world.

There have been setbacks along the way. In recent years, we have had to contend with an inappropriate accounting scandal and a major loss at a US subsidiary. They followed closely on one another, and even threatened our survival. But by drawing on deep wells of experience and determination, we took the resolute measures needed to ensure recovery.

Now, led by a new and forward-looking management team, we have a renewed commitment to growth and continuing relevance. The Toshiba Next Plan is our dynamic blueprint for modernization, for reforms of business processes, and for the development of new businesses that will lead us to a vibrant future. By implementing its strategic measures in coming years we will plot a new course, boost shareholder value, and secure key goals.

 Maximize corporate value and total shareholder returns  Increase the Group’s capabilities and potential  Reform business structures, processes, procurement and sales, and enhance core earning power  Secure organic growth with intensive investments in promising business domains, and closely focused R&D.

Moving forward, hard-earned strengths in energy, social infrastructure and electronic devices, combined with world-class capabilities in information processing and digital and AI technologies, will support Toshiba’s continued evolution toward becoming an infrastructure services company, that makes comprehensive capabilities in cyber-physical systems.

Key Figures at a Glance

Net Sales in 2019 Operating Income in 2019 EBITDA ¥3,389.9B ¥130.5 B ¥210.1B

Dividend Employees worldwide Countries we operate in ¥20 (2019 full year) 125,000+ 30+

Reporting Segments

Toshiba Group has grown and prospered by supporting society and people in their daily lives. We currently do that by focusing on seven business domains: Energy System & Solutions, Infrastructure Systems & Solutions, Building Solutions, Retail & Printing Solutions, Electronic Devices & Storage Solutions, Digital Solutions and Others.

Energy Systems & Solutions Retail & Printing Solutions Large-scale power generation systems for nuclear Platforms for retail POS systems and office and thermal power; renewable energy generation multifunctional printers and peripherals systems. Electronic Devices & Storage Solutions Infrastructure Systems & Solutions Automotive and industrial semiconductors; HDD Products, systems and services for the public sector for data centers; semiconductor manufacturing equipment; materials and devices Building Solutions Elevators and escalators; ventilation & air- Digital Solutions conditioning; lighting Cutting-edge technologies, such as IoT and AI

Others Rechargeable lithium-ion battery (SCiB™)

Breakdown by Segment Breakdown by Geography

Over the course of FY20, Toshiba will continue to advance its capabilities as an infrastructure services companies with comprehensive capabilities in cyber-physical systems, and redefine reporting segments into four functions: Devices/Products, Infrastructure Systems (Installation), Infrastructure Services, and Data Services. These will come into effect in FY21.

For further information the new segments, please see Chapter 3.

A Global Footprint

1-2. Financial Highlights

Financial Highlights (Consolidated)

Net sales decreased by 303.6 billion yen to 3,389.9 Despite a negative impact of 20.3 billion yen from COVID- billion yen, reflecting elimination of last memory product 19, restructuring and procurement reform helped increase operating income by 95.1 billion yen to 130.5 billion yen. resold though channels, completion of PC business divesture, and the impact of COVID-19.

The loss from the sale of the LNG business and equity Equity attributable to shareholders decreased by 516.9 losses from Kioxia (ex-Toshiba Memory) reduced net billion yen to 939.8 billion yen (shareholder’s equity ratio income by 1,127.9 billion yen to -114.6 billion yen. FY18 27.8%) due to lower net income and the impact of the

included the gain from the sale of the memory business. 300.2 billion yen share buyback.

R&D expenditures were 158.9 billion yen, 5% lower than Free cash flows decreased by 1,695.0 billion yen to -264.7 in the previous year. The R&D expenditure to sales ratio billion yen, reflecting the loss from the sale of the LNG

was 4.7%, 0.2% up from the previous period. business. Other contributory factors included the gain from the sale of the memory business in FY18. 9

1-3. History

Successful companies can adjust to a such as power plants and water works. Later changing world, to new needs. For the most on, they also turned their attention to washing successful companies, that ability is baked into machines, refrigerators, vacuum cleaners and their corporate DNA and underpins all they other products that improved quality of life. do. A willingness to take on challenges, to Toshiba has a history of nearly 150 years, promote advances in technology, and to act as dating back to 1875 and Japan’s emergence as a force for good in society, helped the two a modern country on the world stage. Its companies to grow in scale and resilience. In founders were pioneers and visionaries who 1923, when the Great Kanto Earthquake razed built their own companies: Hisashige Tanaka Tokyo to the ground, both companies were of Tanaka Engineering Works, and Ichisuke soon back in business and helping to rebuild Fujioka of Hakunetsu-Sha. Inspired by the the city. Shibaura Engineering Works got its immense potential of industry and devastated factory, one of the biggest in electrification, they established start-ups Japan, up and running again in a matter of dedicated to inventing imaginative products weeks, not months. and services, the likes of which had never been seen before. Building Success The two companies merged in 1939, and This venture spirit is at the heart of Toshiba. It became Tokyo Shibaura Electronic Co., Ltd., on is the DNA that sustains the company and its the year the Second World War broke out. By Group; for generations past and for its end, many of Japan’s cities were in ruins, generations to come. without electricity, transportation, or means of communication. Here too Toshiba contributed, Building Resilience and as reconstruction gave way to dramatic Tanaka Engineering Works and Hakunetsu-Sha growth the company developed the dedicated themselves to the development and businesses that Japan needed: the essential manufacture of technologies and products infrastructure and rolling stock that sustained that supported Japan’s modernization. At first, society; labor-saving home appliances for they concentrated on essential infrastructure, 10 better lifestyles; and the transistors that would world, with inventions like large capacity become the building blocks of the future. memories that facilitated the development of essential communications tools, from e-mail By the 1960s “Made in Japan” was increasingly to social media. recognized as a guarantee of quality and value, and Japanese products found ready Building Tomorrow buyers in world markets. Toshiba was in the We live in an uncertain present and the future vanguard of companies that moved onto the holds many perils. With widening cracks in the global stage. Toshiba products crossed oceans, global order and the stresses and strains and its heavy electric machinery, imposed by the climate crisis and the COVID- communications equipment, and medical 19 pandemic, it is more important than ever to equipment reached countries worldwide. reflect on the issues that face us, to ask how we can realize a stable future, and to Building a New World cooperate in creating a better tomorrow for Without any doubt, the digital revolution has all. transformed our world. The almost unnoticed development of the transistor in the late 1940s Toshiba’s history is steeped in change, in ushered in an age of transformative overcoming current problems with novel technologies that has given us the internet solutions. In recent years, we have faced and and truly personal information tools. survived major crises—and even as we did so, we continued to innovate in many areas. That During these years, Toshiba’s spirit of includes using our know-how in nuclear inquisitiveness and ingenuity have more than energy to develop heavy-ion therapy proved their worth. As early as the 1960s, the equipment to treat recalcitrant cancers, a development of optical-character readers defining moment for a new generation of realized a new technology that has given us medical treatment and patient care． today’s automated letter-sorting machines, automatic ticket gates, and the Edge image- As we move forward in our transition to recognition capabilities of IoT. The first become an infrastructure services company, Japanese-language word processor came from we will integrate the power of cyber and Toshiba’s labs, and not only transformed how physical systems into new technologies, Japanese people work and communicate but products and systems. We will pay homage to provided a model for digitizing other complex our roots and remain true to our founding scripts. beliefs by contributing to a better society.

In 1985, Toshiba gave the world its first laptop As generations have passed, there have been computer, and the 1991 invention of the many times when Toshiba technologies have NAND flash memory made possible the turned on the promise of a new day. Our powerful computers we carry with us venture spirit has carried us, our DNA has everywhere as smartphones. Toshiba has inspired us. They served us then, and they will achieved all this while playing a pivotal role in serve us for all our tomorrows. building the foundations for our networked

A Decade of Transformation

[Note] The charts are based on the financial information announced in the earnings release with respect to such fiscal year and the changes in classification occurred thereafter are not reflected, while the restatement of financial results publicly announced in 2015 is reflected. Toshiba believes that the charts provide investors with additional useful information regarding operating performance of Toshiba Group.

[Note] For the convenience of the reader, these charts and breakdowns cover continuing and non-continued businesses and indicate changes in the business portfolio. Figures in the charts are unaudited. Toshiba believes that these charts provide investors with additional useful information regarding operating performance of Toshiba Group.

Net Sales, including non-continued businesses

Operating Income, including non-continued businesses

Corporate History 1875 July A shop-cum-factory (called Tanaka Seizo-sho from 1882; later Shibaura Engineering Works Co., Ltd.) opened in Tokyo. 1890 Apr. Hakunetsu-sha & Co., Ltd. (from 1899 Tokyo Electric Company) founded. 1904 June Shibaura Engineering Works Co., Ltd. established. 1939 Sept. Shibaura Engineering Works Co., Ltd. merged with Tokyo Electric Company to become Tokyo Shibaura Electric Co., Ltd. 1942 Oct. Absorbed Shibaura Mazda Industry Co., Ltd. and Nippon Medical Electric Co., Ltd., expanding home appliance line- up. 1943 July Absorbed Tokyo Electric Co., Ltd. and Toyo Fire Brick Co., Ltd., expanding line-up of communications equipment. 1950 Feb. Under the Law on Elimination of Excessive Concentration of Economic Power, a group of 14 companies, including Tokyo Electric Appliances Co., Ltd., now Toshiba TEC Corp., was separated from Tokyo Shibaura Electric Co., Ltd. Apr. Absorbed Toshiba Rolling Stock Co., Ltd., expanding rolling stock products. 1955 Nov. Absorbed Dengyo-sha Prime Mover Works Ltd. 1961 Nov. Absorbed lshikawajima-Shibaura Turbine Co., Ltd., expanding line-up of turbines. 1978 July English official trade name changed to “Toshiba Corporation.” 1984 Apr. Japanese official trade name changed to “Toshiba Corporation.” 1998 June Introduced corporate executive officer system. 1999 Apr. Introduced in-house company system. 2001 July Changed registered headquarters from Kawasaki City, Kanagawa, to Minato Ward, Tokyo. Aug. Announced 01 Action Plan. 2003 June Adopted the Company with Committees (now, company with three Committee, etc.) system. Oct. Transferred electric equipment for manufacturing plant business to TMA Electric Corp. (now Toshiba Mitsubishi- Electric Industrial Systems Corp.). 2006 Oct. Acquired Westinghouse Group. 2009 June Raised funds by public offering. Oct. Acquired HDD business from Fujitsu Ltd. 2010 Oct. Merged mobile phone business with that of Fujitsu Ltd. and transferred it to Fujitsu Toshiba Mobile Communications Ltd. (now Fujitsu Mobile Communications Ltd.). 2011 July Acquired Landis+Gyr AG. 2012 Mar. Transferred all shares of Toshiba Mobile Display Co., Ltd. to Japan Display Inc., a company established with co- funding by Innovation Network Corporation of Japan, Toshiba Corporation, Sony Corporation and Hitachi, Ltd. Aug. Toshiba TEC Corporation acquired the retail store solutions business of US-based IBM (International Business Machines Corporation). 2015 Sept. Decided that, in principle, the majority of the directors of the Company, and all members of the Nomination Committee, Audit Committee and Compensation Committee, shall be outside directors. Dec. Announced the Toshiba Rebuilding Initiative. 2016 Mar. Sold off all shares of Toshiba Medical Systems Corporation. June Sold off 8.01% shares of Toshiba Lifestyle Products & Services Corporation. June The Board decided to no longer appoint advisers to the Board (“Sodanyaku”). 2017 Mar. Westinghouse Group deconsolidated from Toshiba Group by Westinghouse Electric Company filing a voluntary petition for relief under Chapter 11. Apr. Split off and transferred the memory business to Toshiba Memory Corp. by means of a company split. July Split off and transferred the social infrastructure business to Toshiba Electric Service Corp. (Toshiba Infrastructure Systems & Solutions Corp.) by means of a company split. Split off and transferred the electronic devices business to Toshiba Electric Devices & Storage Corp. by means of a company split. Split off and transferred the ICT solutions business to Toshiba Solutions Corp. (Toshiba Digital Solutions Corp.) by means of a company split. July Sold off 100% shares of Landis+Gyr Group. Oct. Split off and transferred the energy business to Toshiba Energy Systems & Solutions Corp. by means of a company split. 2018 Feb. Transferred 95% shares of Toshiba Visual Solutions Corporation to China’s Hisense Group. June Transferred all shares of Toshiba Memory Corporation and re-invested to gain 40.2% of the voting rights. Oct. Transferred 80.1% shares of Toshiba Client Solutions CO., Ltd. to Sharp Corporation. 2019 Sep. Transferred the LNG business to Total S.A. 2020 Completed incorporation of three listed subsidiaries, Toshiba Plant Systems & Services Corporation, NuFlare Technology, Inc., Nishishiba Electric Co., Ltd.

1-4. Existential Threats and Rejuvenation Over the three years 2015 to 2017, Toshiba Exchange and the Nagoya Stock Exchange. Group had to deal with problems that literally They responded on September 15 by threatened its existence. The discovery of requiring improvements in such areas as inappropriate accounting in 2015 led to the internal management systems, and by designation of Toshiba’s shares as Securities designating Toshiba’s stock as a Securities on on Alert by the Tokyo Stock Exchange and Alert. Nagoya Stock Exchanges, a move that We immediately initiated a program to strongly undermined public trust. reform management and corporate Subsequently, huge losses at a subsidiary of governance. It was clear that fundamental Westinghouse Electric Company (WEC) and changes in the corporate culture were WEC Group’s filing for Chapter 11 bankruptcy needed, and alongside efforts in that turned consolidated shareholders’ equity direction we took measures that included negative. This required deadline extensions reforming the board to ensure a majority of for filing our Annual Securities Report in outside directors. Japan, and ultimately resulted in Toshiba’s stock being relegated to the Second Section On September 15, 2016, a year to the day of of the Tokyo Stock Exchange and Nagoya the designation as a Securities on Alert, Stock Exchange. Toshiba submitted reports on the new management system and other reforms to Fiscal 2017 was a do-or-die year, when these both stock exchanges, but they ultimately cumulative issues raised the threat of determined that more had to be done to delisting. We took decisive actions on two monitor progress and further verify fronts. Concerted efforts to strengthen implementation of reforms. In December, internal management systems won both stock exchanges announced their cancellation of the designation as Securities extension of the designation. on Alert in October. In parallel, measures that included a December third-party allotment of The Road Back new shares, which raised ¥600 billion in We did not give up. Taking on board the capital, a lump-sum settlement of parent reasons given for continuing the designation, company guarantees for the construction of we pressed forward with our reforms, and nuclear power plants in the US, and the sale also dug deeper and implemented more of WEC-related claims and assets, combined measures, to thoroughly enforce compliance to resolve the issue of negative consolidated and to strengthen monitoring of Group shareholders’ equity. At the end of March companies. We also turned our attention to 2018, the danger of delisting was behind us. improving management decision-making processes. This second round of reforms Root Causes proved successful, and on October 12, 2017 For many observers of these events, the the designation of Toshiba’s stock as a central concern was Toshiba’s management Securities on Alert was withdrawn. system and corporate governance. Aware of this, we commissioned an Independent Having survived this major crisis, we are Investigation Committee to investigate the deeply aware of the need for constant accounting issue, and it reported its concerns vigilance and continued compliance. In in July 2015. On September 8, we submitted March 2018, the Japan Exchange Regulation restated past Annual Securities Reports and organization issued “Principles for Preventing other documents to the Tokyo Stock Corporate Scandals and Protecting Corporate

Value”. This is our yardstick for continuing investors who choose to back us. In June reforms and assessing the status of the 2018, we closed the sale of Toshiba Memory measures we have taken so far. Corporation (TMC), a move that greatly improved our financial situation, and that We also emerged from theses crises aware also gave us the leeway to use a part of the that repeated postponements of financial capital gains for a program of share statements and the annual securities report buybacks, to the scale of ¥700 billion. Beyond caused our shareholders many this, we promote a policy of delivering an inconveniences and concerns. appropriate and stable dividend. A cause of contention here was a disagreement with our independent auditor Our People and Our Commitment about the FY17 results, though that was not Toshiba’s longevity, and our future prospects, related to the accounts themselves, which the rest on the dedicated efforts of generations auditor endorsed as accurate, and we were of employees. Through many challenges, finally able to get their approval. throughout the Group’s growth and evolution, in Japan and overseas, Toshiba’s After weathering this long storm, we took people have supported and promoted stock of what had happened, how we had business activities aimed at realizing a responded and what we did. In July 2018, we sustainable society. released a “Report on Improvements of the Internal Management System” that summed In 2018, we decided to restate the basic up the overall situation for our stakeholders, management principles that have inspired so and the then current status of our reforms many of those people, while retaining our and our business operations. At this point, core message, “Committed to People, three years after the discovery of Committed to the Future.” The new inappropriate accounting, we realized we statement emphasizes that Toshiba were finally at the starting line to revitalize contributes to “a planet that is safer and Toshiba. cleaner, a society that is both sustainable and dynamic, and a life as comfortable as it is Looking Ahead exciting.” It also codifies our core values: “Do Nobuaki Kurumatani joined Toshiba as CEO the Right Thing, Look for a Better Way, at the start of FY18, and immediately Always Consider the Impact, and Create embarked on a program of reforms and Together.” restructuring to rejuvenate Toshiba Group. The blueprint for this is the five-year “Toshiba The global Toshiba community subscribes to Next Plan” (see page 33), a transformation these basic purposes and values as a plan that will strengthen core earning power, reaffirmation of the essence of our corporate guide our transition to become an identity and sense of values. As a corporate infrastructure services company with group determined to be deeply useful to comprehensive capabilities in cyber-physical society, we are opening a new chapter in systems, and make Toshiba more globally business creation and technological competitive. innovation, and we will develop products that create value, change people’s lives for the We are also determined to make Toshiba better, and stimulate the growth of Toshiba attractive to shareholders, and to reward the Group.

1-5. Current Portfolio

Energy Systems & Solutions

The scope of our business embraces large-scale power generation systems for nuclear and thermal power, along with renewable energy generation systems for hydro, geothermal, solar, and wind power. Our related businesses include power transmission and distribution systems that deliver electricity directly to end users, and a hydrogen based autonomous energy system that realizes “local production for local consumption.”

Main Business Areas  Power Generation Systems for Nuclear Power, Thermal Power and Renewable Energy  Power Generation Business for Renewable Energy  Transmission and Distribution Systems  Hydrogen Energy Systems  Energy Digital Service  Heavy-ion Therapy System

Main Subsidiaries  Toshiba Energy Systems & Solutions Corporation  Toshiba Plant Systems & Services Corporation

Net Sales Operating Income

Net Sales in 2023 Operating Income in 2023 ROS in 2023 ¥660.0 B ¥64.0 B 9.7%

Free Cash Flow in 2023 ROIC in 2023 Employees in Energy segment ¥47.0 B 10% 15,500+

Business Overview The Energy Systems & Solutions segment saw lower sales of 568.8 billion yen, 83.9 billion yen decrease from the previous year. Nuclear Power Systems reported lower sales due to impact from lower sales in projects to enhance safety measures, and the Thermal & Hydro Power Systems reported lower sales due to fewer thermal plant construction projects in Japan and service-related projects.

The segment as a whole saw higher operating income of 31.8 billion yen, 55.8 billion yen increase from the previous year. All businesses (Nuclear Power Systems, Thermal & Hydro Power Systems, and Transmission & Distribution Systems) saw higher operating income.

Topics (1) Operations Begin at the World´s Largest-Class Hydrogen Production Plant using Renewable Energy The Fukushima Hydrogen Energy Research Field (FH2R) which Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) constructed together with the New Energy and Industrial Technology Development Organization (NEDO), Tohoku Electric Power Co., Inc., and Iwatani Corporation, has commenced operations. Built in the town of Namie in Fukushima Prefecture, north of Tokyo, the FH2R hydrogen production plant is a technological development project with its aim to create a business model of hydrogen use and hydrogen sales. It is equipped with the world’s largest 10MW-class hydrogen production unit that uses renewable energy. Utilizing 20MW of solar power generated on the 180,000m2 site, FH2R produces (as well as stores and supplies) up to 1,200 Nm3* of hydrogen per hour (rated power operation) through electrolysis of water in its hydrogen production unit. Hydrogen produced at the plant will, among other things, be used in power generation, by charging stationary fuel cells, and in transport and mobility with fuel cell battery- powered cars and buses. As well as being a clean energy source, emitting no air pollutants or greenhouse gases when used, hydrogen can be produced through a number of methods. And since it can also be transported and stored in any state, either gas or liquid, hydrogen is expected to play a key role in terms of energy for the future. In order to build a society fully based on hydrogen energy, a combined effort will be needed to increase hydrogen demand such as with the full-scale introduction of hydrogen power generation, as well as building a hydrogen supply chain to meet this demand. Testing will take place in the future at FH2R to investigate technology for optimal operation control. The technology anticipates hydrogen supply and demand needs, adjusting power supply and demand from the grid to maximize the use of renewable energy which undergoes significant fluctuations in output. By establishing low-cost, clean, hydrogen production technologies, as well as maximizing the use of renewable energy, with its large variations in power, without using storage batteries, Toshiba ESS aims to build a completely carbon-free hydrogen supply system, from production through to end use, to ultimately make the hydrogen based society a reality. * Nm3: Normal cubic meter. A unit of measure that represents the volume of dry gas at 0°C and 1 atm (standard atmosphere).

(2) EPC Order Received for Large-Scale Onikoube Solar Power Plant Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) has received a services order for engineering, procurement, and construction (EPC) for the Onikoube Solar Power Plant in the city of Osaki in Miyagi Prefecture, North East Japan. The plant is being planned by project owner PurpleSol G.K., an affiliate of Thai Solar Energy Public Company Limited, one of Thailand’s

19 leading renewable energy companies. This large-scale solar power plant will have a generation capacity of 147MW equating to the largest EPC order received by Toshiba ESS thus far. The plant is scheduled to go into operation in December 2022. The Onikoube Solar Power Plant is planned for construction on the 156-hectare site of an abandoned golf course at a total cost of 35.5 billion yen. By fixing the frames closer together and setting the panels at a steeper angle, it will be possible to install 362,960 solar panels within the boundaries of the site. Furthermore, due to its innovative design and construction taking into account the slope of the ground and snowfall in the region, the plant will be able to produce power at a highly efficient rate. Toshiba ESS’ track record in the design and construction of large-scale solar power plants is second to none in Japan. Undoubtedly, it is this performance of exceptional capability in technology and construction that has led to winning this particular solar power plant order. The Toshiba Group provides power generation systems and solutions through a wide variety of different renewable energies, from solar power and hydroelectricity to geothermal and wind- generated power. Going forward, the Group will continue to work on a diverse range of clean energy projects such as the construction of industrial-use solar power plants, helping to create a society of sustainable development.

(3) Withdrawal from the LNG Agreement As part of structural reforms to the Energy Systems & Solutions business, the Group has completed its withdrawal from the liquefied natural gas (LNG) agreement in the US. In May 2019, Toshiba concluded a stock transfer agreement with Total Gas & Power Asia Private Ltd, a Singaporean affiliate of the French energy giant, Total S.A., for all shares of Toshiba America LNG Corp. (TAL) – a Toshiba consolidated subsidiary that operates in the LNG agreement. Simultaneously, with the completion of the transfer of shares under this agreement, Toshiba and Total also agreed that all contracts related to the LNG agreement entered into by Toshiba Group companies, including every LNG contract concluded between Group companies as well as trade agreements with its customers, would either be transferred to Total or canceled. Total has provided a substitute guarantee to replace Toshiba’s then-existing guarantee for all of TAL’s obligations under a liquefaction tolling agreement with the US natural gas liquefaction provider, FLNG Liquefaction 3, LLC (FLIQ3). The transfer was completed on August 30, 2019 (US time) after all necessary procedures were finalized including releasing Toshiba from its guarantee of TAL. Any risk associated with the LNG agreement has now been severed with the completion of the transfer. The Toshiba Group will continue to manage its portfolio based on benchmarks set out in the “Toshiba Next Plan”, making further structural reforms as and when necessary.

Infrastructure Systems & Solutions

For many years, we have provided products, systems, and services to customers in the public sector that have the responsibility for maintaining the infrastructure of essential utilities. We will also embrace IoT and artificial intelligence (AI) in years ahead in order to establish safer, more secure, and more convenient social infrastructure systems.

Main Business Areas  Water Supply & Wastewater  Treatment Systems  Traffic Control Systems Net Sales in FY19  Defense & Electronic Systems  Railway Transportation Systems  Substation Systems  Broadcasting & Network Systems  Security & Automation Systems  Motor/Drive Systems

Main Consolidated Subsidiary  Toshiba Infrastructure Systems & Solutions Corporation

Net Sales Operating Income

(Yen in Billions)

Net Sales in 2023 Operating Income in 2023 ROS in 2023 ¥810.0 B ¥80.0 B 9.9%

Free Cash Flow in 2023 ROIC in 2023 Employees in Infra segment ¥45.0 B 12% 20,000+

Business Overview The Infrastructure Systems & Solutions segment reported higher sales of 735.0 billion yen, 1.5 billion yen increase from the previous year. Railways and Industrial Systems recorded lower sales as Industrial Systems reduced low-margin projects, but Public Infrastructure recorded higher sales on expansion of the defense & electronic systems business. Segment as a whole saw higher operating income of 47.7 billion yen, 17.4 billion yen increase from the previous year. All businesses saw higher operating income. In Public Infrastructure this reflected improvements in the sales mix, and in Railways and Industrial Systems it was due to changes in product mix.

Topics (1) Order Received for Sewage Treatment Projects in India - Contributing to River Ganges Cleanup Plan Toshiba Water Solutions Private Limited, a subsidiary of Toshiba in India, received an order from Bihar Urban Infrastructure Development Corporation Ltd for the construction of two sewage treatment plants in the cities of Chapra and Begusarai located along the Ganges in Bihar, India, together with a 15-year contract for their operation and maintenance. Sewage will be treated in both these areas, contributing to the clean-up of the River Ganges. Water pollution has become a serious problem in the Ganges due to rapid urbanization. To combat this the Indian government announced an action plan to clean up the river in 2015. Toshiba Water Solutions has previously constructed four sewage treatment plants in Jharkhand and Uttar Pradesh as part of this action plan. Success with these projects no doubt helped to secure the contract for the two plants in Bihar. By combining its water treatment-related solutions technologies of monitoring control and energy-saving with its expertise and experience in engineering, procurement, construction, operations and maintenance which Toshiba Water Solutions has cultivated in projects in India and abroad, the Company is contributing towards the Sustainable Development Goal of “ensuring availability and sustainable management of water and sanitation for all.”

(2) Delivery of the Newly Developed Hybrid System for The Central Japan Railway Company’s Next-Generation Limited Express Rolling Stock (test train) The newly developed, compact and highly efficient hybrid system for the next-generation limited express HC85 series has been delivered to The Central Japan Railway Company. The HC85 series uses a hybrid system in which electric power supplied from a diesel engine- powered generator is combined with battery-stored electric power to drive the motor. As part of the overall system, Toshiba Infrastructure Systems & Solutions has delivered motors, generators, batteries, vehicle controllers, and master controllers. The new development of the compact, high-powered fully-closed permanent magnet synchronous generator (PMSG) means that, for the first time in Japan, fully-closed permanent magnet synchronous machines have been adopted for both motors and generators for use in railways. The fully-closed permanent magnet synchronous motor (PMSM) and the fully-closed permanent magnet synchronous generator (PMSG) are both highly efficient rotary machines with the hermetically sealed structure producing reduced noise levels and easier maintenance. In terms of batteries, Toshiba’s SCiB™ lithium-ion rechargeable battery has also been taken on. The battery is charged from the regenerative power gained through braking. This power can then be used to activate the vehicle’s idle-stop system and for initial acceleration. The result is an efficient use of energy helping to achieve a good, overall environmental performance. Toshiba Infrastructure Systems & Solutions will continue to develop equipment and systems for rolling stock, developing railway systems in line with various railway concepts while pursuing

22 improvements in safety and environmental performance.

(3) BISCADE™ Card - Japan’s First Commercialized Fingerprint Authentication IC Card to be Used in Security Systems The BISCADE™ Card, a fingerprint authentication IC card, developed by Toshiba Infrastructure Systems & Solutions has been adopted by Laurel Intelligent Systems Co., Ltd. for its FSS®SmartLogon®TFPA security system. The system uses a combination of IC card and fingerprint authentication instead of the traditional computer logon system of IC card and password. The BISCADE™ Card will thus be used as a computer logon card for improved security and convenience. Prior to use, the card holder has his or her fingerprint registered on the IC card. The card works by placing a finger onto the sensor of the card while the IC card is read to verify the identity of the registered card holder. In this way, authentication becomes possible with just one card through the process of two-factor authentication, namely the combined function of a registered card holder with the additional biometric authentication, greatly improving security measures when the card is used. Furthermore, as well as using the existing IC card reader as is, it is also possible to safely use the important information stored on the secure chip in the IC card in conjunction with ID verification. With rising use of the Internet in recent years, security measures have become increasingly more important. Looking to the future, Toshiba will contribute to greater IC card use through its development of products such as contactless IC cards and credit cards that support fingerprint authentication.

Building Solutions

Our portfolio covers elevators & escalators for buildings and facilities, ventilation, and lighting, all businesses essential to the day-to-day comfort of people. Through these businesses, we also offer energy-saving, environmentally conscious products and services, as well as building solutions that improve building security and reliability.

Main Business Portfolio Main Consolidated Subsidiaries  Elevators  Toshiba Elevator and Building Systems  Escalators Corporation  Building Facilities  Toshiba Lighting & Technology  Materials for Electrical Construction Corporation  Lighting Equipment, Airport Ground  Toshiba Carrier Corporation Lighting System, Stage and Studio Lighting System Net Sales in FY19  Automotive Light Sources, Industrial Light Sources and Modules  Air conditioners, Multi Systems for Buildings, Heat Source System  Heat Pump Hot Water Supply System, Ventilating Fans, Ventilating Systems  Cold-Chain Equipment

Net Sales Operating Income

Net Sales in 2023 Operating Income in 2023 ROS in 2023 ¥800.0 B ¥74.0 B 9.3%

Free Cash Flow in 2023 ROIC in 2023 Employees in Building segment ¥54.0 B 23% 21,000+

Business Overview The Building Solutions segment reported higher sales of 570.1 billion yen, 13.1 billion yen increase from the previous year. While sales in Lighting were lower, both Elevators and Air Conditioning reported improvements.

The segment as a whole saw higher operating income of 29.1 billion yen, 12.2 billion yen increase from the previous year, the result of rises in Elevators in Japan and overseas, and an improved performance in Lighting.

Topics (1) Construction Completed of the New Technology Building “e-Third” In January 2020, Toshiba Carrier completed the construction of the new technology building, e-Third (short for “evolution + Technology Hub in R&D”), built within the premises of Fuji Factory & Engineering Center. Work has been carried out to the interior of the building and operations have started from May 2020. Comparative experiments will be carried out in the e-Third using different air-conditioning systems in office areas divided into blocks, with work areas used for demonstrating and testing. The office has been designed in such a way as to encourage communication between departments and individuals and as a place where focused work can be carried out. Furthermore, the multifunctional image sensor, SMART EYE SENSOR MULTI™, manufactured by Toshiba Infrastructure Systems & Solutions, has been combined with central monitoring systems to visualize office area use. By doing so, it becomes possible to see how the office is used by employees as well as saving energy, thereby promoting a continual evolution of the office space. Toshiba Carrier positions the e-Third as the center of technological development for expansion around the world, strengthening its research and development capabilities for domestic and overseas products and solutions.

(2) Toshiba Wins the International iF Design Award 2020 In the iF Design Award 2020, Toshiba Elevator and Building Systems won the Gold Award with its destination control system, FLOORNAVI™, while Toshiba Lighting & Technology took the Product Design Award with its LED base light with a built-in video camera, ViewLED™. The iF Design Award is an international design award sponsored by the world’s longest-standing independent design group, iF International Forum Design GmbH (based in Hannover, Germany). It is held every year recognizing excellence in design. The FLOORNAVI™ destination control system allows users to specify from the control panel located in the elevator hall which floor they wish to go to before entering the elevator. The system then indicates to users wanting to go to the same floor which elevator to take. Reducing the number of floors each elevator stops at helps to provide a smoother elevator experience. The ViewLED™ is an LED base light with a built-in video camera. The camera works through conventional lighting wires. The ViewLED™ allows simple, low cost video recording while addressing the needs of society in terms of safety and security.

Retail & Printing Solution

Main Business Portfolio POS systems, Multi-function peripherals

Main Consolidated Subsidiaries Toshiba TEC Corporation

Business Overview The Retail & Printing Solutions segment recorded higher sales of 490.4 billion yen, 5.0 billion yen increase from the previous year. Both the overseas Retail business and Printing Solutions saw lower sales, but the Retail business in Japan recorded higher sales.

The segment as a whole reported lower operating income of 14.5 billion yen, 5.7 billion yen decrease from the previous year. Although the retail business in Japan saw higher operating income, the overseas Retail business and Printing Solutions business recorded lower operating income.

Topics Sales of Toshiba’s Smartphone-based Pay-at-Table System Toshiba Tec began sales of its Pay-at-Table System from December 2, 2019. Aimed at restaurants and bars, the system allows customers to pay their bill at the table using their smartphone by scanning the code from the Toshiba Tec self-order device, Relax Order™ (a device which allows restaurant customers to place their order from their table). By using the smartphone camera to read the code displayed on the Relax Order™, customers can settle up using an on-line payment service. And because the system is directly linked to the store’s Point of Sale (POS) system, the amount customers need to pay is automatically displayed, meaning payment can be completed without the need for store staff to check the amount at the table. The store receives a ‘Payment Received’ notification once customers have paid their bill. The system thus allows stores to reduce time staff are at the cash register, enabling them to focus more efforts on other work such as serving customers. It’s expected that this system will save labor and improve in-store service. Since the payment system uses an on-line payment service, customers can settle up without the need to install a dedicated app on their phone. The system supports 6 types of payment methods, including credit card and payment by QR code so customers can pay with their preferred option. Stores can also reduce their costs by not having to invest in many different code payment systems.

Electronic Devices & Storage Solutions

We are expanding our business by focusing on markets where we anticipate steady growth, such as automotive and industrial semiconductors, large capacity HDDs for data centers, semiconductor manufacturing equipment, and materials and devices. By providing high-added value products, we are helping to advance the role of big data in society while reducing environmental loads, and contributing to the realization of a safe and secure society.

Main Products  Discrete semiconductors: Power Devices, Net Sales in FY19 Small Signal Devices, Photocouplers, etc.  System LSI: Analog ICs, Microcontrollers, Automotive Digital ICs, etc.  Storage Products: Nearline HDDs, Mobile HDDs  Semiconductor Manufacturing Equipment: Electron Beam Mask Writer, etc.

 Devices: Thermal Printheads, etc.

 Materials: Fine Ceramics, etc

Main Consolidated Subsidiaries  Toshiba Electronic Devices & Storage Corporation  NuFlare Technologies, Inc.  Toshiba Materials Co., Ltd  Toshiba Hokuto Electronics Corporation

Net Sales Operating Income

Net Sales in 2023 Operating Income in 2023 ROS in 2023 ¥1,100.0 B ¥110.0 B 10.0%

Free Cash Flow in 2023 ROIC in 2023 Employees in Devices segment ¥77.0 B 18% 24,000+

Business Overview The Electronic Devices & Storage Solutions segment saw lower sales of 745.6 billion yen, 187.4 billion yen decrease from the previous year. In Semiconductors, this was due to the slowdown in the global market and the impact of COVID-19. HDDs & Others also saw lower sales on lower demand for mobile HDDs, the impact of COVID-19, and changes in the memory products resale channel. The segment as a whole reported higher operating income of 13.4 billion yen, 0.9 billion yen increase from the previous year. Although HDDs & Others recorded flat sales, Semiconductor saw higher operating income, as benefits from restructuring overcame lower sales. The previous year recorded goodwill impairment of 9.8 billion yen for NuFlare Technology, Inc.

Topics (1) Expansion of HDD Business for Data Centers Toshiba Electronic Devices & Storage (“Toshiba TDSC”) is expanding its HDD business into the realm of data centers. Toshiba Group was the first in the industry to release 14TB near-line HDD using conventional magnetic recording (CMR) technology for data centers. Several major data center clients have adopted the HDD, expanding the size of Toshiba’s business in this field. In addition, many clients are also endorsing Toshiba TDSC’s 16TB HDDs. This fiscal year the 16TB HDD MG08 series has been used by Microchip Technology Inc. of the United States, passing compatibility tests with their Adaptec® Host Bus Adapters (HBA) and their Redundant Array of Independent Disk (RAID) adapters. Companies that use these adapters, which are widely used in the marketplace, will be able to utilize the Toshiba TDSC manufactured 16TB HDD in their storage system servers. As a result, it is expected that demand for Toshiba TDSC’s HDDs for data centers will further increase in the future. Toshiba TDSC will continue to actively develop product lines such as its high-capacity HDDs for data centers that meet the needs of its customers, helping to strengthen the foundations for an information-oriented society.

(2) Opening of Second Production Site for Silicon Nitride Substrates Toshiba Materials has made the decision to open a second production facility for silicon nitride substrates in the city of Oita, Oita Prefecture, southern Japan. The company plans to make a major investment in a second production facility through a 10-billion-yen program that will run until March 2023. Production at the new plant is expected to start in July 2021. Silicon nitride substrates offer the advantages of excellent thermal conductivity and durability. Driven by the concern to cut power consumption in automobiles and industrial equipment, they are positioned to meet the growing demands for heat dissipation and insulation components required in the power semiconductors that control and supply power. From a business continuity planning perspective also, which recognizes the increased impact of natural disasters in recent years, it is becoming ever more important for production to take place on multiple sites. In light of these circumstances, Toshiba Materials has made the decision to open a second production facility for silicon nitride substrates in Japan Semiconductor Corporation’s Oita Operations site. The plant will have a production capacity of about 40,000 m2 / year, which the company will gradually increase in line with growing demand. Production will also continue at Toshiba Materials’ main plant in Yokohama, Kanagawa Prefecture. Toshiba Materials will continue to contribute to the realization of highly efficient energy-saving automobiles and industrial equipment through the stable supply of high-quality products

1-6. Proven Technology Research & Development Toshiba Group stands or falls as an innovator. We develop know-how and technology that has made possible numerous Japan- and world-first products. We also develop the manufacturing systems essential for products as diverse as semiconductors and power plants, and the AI-based software that powers advanced visual processing systems and IoT.

From small beginnings in Tokyo, we built one of Japan’s largest private R&D organizations, and we subsequently took that to the global stage with facilities in Europe, the United States and Asia and China. Moving forward, we are now developing technologies essential for continued progress and growth as an infrastructure services company, building comprehensive capabilities in cyber-physical- systems systems.

In readiness for the challenges and opportunities coming years will offer, we have broken ground for a new R&D complex in Kawasaki that includes an eye-catching 12-story cube. When it opens in 2023, it will concentrate currently dispersed R&D in the Tokyo region, and offer an environment and facilities that encourage creativity and the incubation of next generation technologies.

Intellectual Property IP has long been positioned as a tool that protects our knowhow, propels business activities, and makes a positive contribution to profitability. A strong and comprehensive patent portfolio, fully utilized in all areas of business, underpins our physical capabilities, including our strengths in manufacturing, hardware and services. IP also defines who we are and where we are going. That is why we promote our IP policy on the global stage, and why we are now recognized as the world #3 in AI- related patent applications. Our IP portfolio is helping us to secure leadership in AI and other areas essential for the cultivation of cyber capabilities.

World-first and Japan-first Products and Services (Representative Examples)

1895 Invented Japan’s first induction motor [1] 1921 Invented the world’s first “double-coil bulb,” one of the six great inventions in bulb technology

1930 Released Japan’s first electric washing machine and electric refrigerator [2]

1955 Released Japan’s first electric rice cooker [3]

1960 Developed Japan’s first color TV [4] 1963 Completed Japan’s first 12,500kW nuclear power turbine generator 1967 Launched world’s first large-capacity static uninterruptable power supply (UPS) Completed world’s first mail processing equipment [5] 1972 Released world’s first color TV with black-stripe color cathode-ray tube 1976 Developed world’s first microcomputer for automobile engines

1978 Developed Japan’s first word processor [6] 1979 Completed world’s first optical-disc-based data filing system 1980 Released world’s first bulb-type fluorescent lamp, “Neo Ball™” (ball-shaped) 1981 Developed world’s first home-use inverter air conditioner 1982 Developed Japan’s first Magnetic Response Imaging System (MRI) 1985 Released world’s first non-latchup IGBT Released world’s first laptop PC 1989 Developed world’s first large-capacity ultra-supercritical-pressure steam turbine 1991 Developed world’s first 4Mbit NAND-type electrically erasable and programmable read-only memory (EEPROM) 1996 Released world’s first DVD Player Completed construction of the world’s first advanced boiling water reactor (ABWR) 1998 Developed world’s first single-chip MPEG-4 videophone LSI with embedded 16Mbit DRAM 2001 Commercialized world’s first HDD & DVD video recorder 2010 Commercialized world’s first 3D LCD TVs not requiring dedicated glasses 2013 Commercialized world’s first Glasses-free 3D medical display 2016 Developed World’s First Rotating Gantry with Superconducting Technology for Heavy-ion Radiotherapy System 2017 Launched world’s first 14TB HDD with conventional magnetic recording 2019 Realized breakthrough algorithm of world’s fastest, largest-scale combinatorial optimization 2020 World's first development and demonstration of a quantum cryptographic communication technology applied system for genomic medicine

2. Strategy 2-1. The Toshiba Next Plan Objectives

*1 Total Shareholders Return: The overall yield for shareholders, including capital gains and dividends.

The Toshiba Next Plan (TNP) promotes corporate activities that will enhance Toshiba Group’s potential by maximizing enterprise value, allowing us to generate value for our customers, business partners, employees and communities, and to significantly enhance shareholder value. We are doing this through three major policies: Intensively investing in growth, strict risk management, and strengthening core earning power.

Targets of the Toshiba Next Plan

*1: Excluding restructuring charges and the impact of the COVID-19 from operating income, *2: EBITDA = Operating income + depreciation and amortization expenses *3: ROIC = Profit and loss before tax × (1 - tax rate) ÷ (net interest bearing debt + net asset)

With TNP we aim to realize earning power matching that of industry leaders by transforming an ROS of approximately 4% at the end of FY19 to an industry-leading ROS of 10% in FY25.

Execution of the Toshiba Next Plan The TNP goes far beyond business as usual. The outcome of an exhaustive analysis of Toshiba Group and its businesses, it’s a comprehensive transformation plan covering the five years to FY23. Targets mark milestones and progress made during its execution, and its end point of realizing a more resilient, streamlined organization, focused on growing returns and increasing free cash flow. There are three phases to realizing this transformation.

Phase 1: Improve core earning power by driving down costs, selling non-core businesses and assets, and establishing disciplined portfolio management. Phase 2: Reshape the portfolio to become an infrastructure services company that derives strength from cyber and physical technologies. Accelerate growth initiatives to maximize corporate value and enhance total shareholder returns. Phase 3: Evolve into a CPS technology company to pursue further growth. Full contributions to earnings from this phase will begin in FY23.

Phase 1 was initiated in FY19 and is still making progress. Phase 2 is staring in FY20, and its progress will be disclosed in FY21.

Key Targets in 2025 Net Sales Operating Income ROE over ¥4.0 T ROS 10% 15%

ROIC Dividend Payout Ratio 12% over 30%

2-2. Phase 1: 2019-2021

Strengthen core earning power by driving down costs, sell non-core businesses and assets, and establish disciplined portfolio management

The first three years of the TNP, Phase 1, are dedicated to reform and progress on a broad front. In the first year alone, cross-functional teams in procurement and sales implemented over 15,000 reforms. We eliminated 64 subsidiaries, 70% of the target figure, and completed reorganizations at four manufacturing facilities. More details of the measures and results are explained below, for six key areas.

Strengthen Core Earning Power We enhanced core earning power through restructuring and reforms of procurement, sales and business processes. Core operating income rose significantly, by 81.1 billion yen in FY19 against FY18, demonstrating steady improvement in true earning power. - Restructuring: Exited non-core businesses, optimized workforce, reduced subsidiaries by 25% - Procurement: Reduced cost of goods, for both direct and indirect materials - Sales: Reviewed sales-related costs and project orders - Business Processes: Modularization, renewal of IT systems

Image of Cross Functional Teams (CFT) activities:

We formulated the TNP in 2018, and in the period up to FY20 we achieved a cumulative increase in profit of 130 billion yen, as the result of CFT deployment and restructuring. We expect to secure a further 130 billion yen increase over the next five fiscal years through continued CFT activities, together with IT system upgrades which would streamline staff functions resulting in fixed cost reduction. CFT activities alone are expected to contribute 80 to 100 billion yen. We believe significant savings can be achieved by make-or-buy CFT that will streamline our current 600 billion yen spending on outsourcing costs, and by engineering CFT focused on promoting design standardization and modularization.

Our efforts in TNP Phase 1 saw the marginal profit ratio improve significantly over FY18, and a sharp decrease in fixed costs. We expect to see further contributions like this up to FY25.

Phase 1 Achievement and Outlook:

Contribution from the CFT activities:

Divestments We emphasize efficient capital management and are promoting divestment of non-core businesses, listed shares, functional subsidiaries, and real estate. In 2019, divestments totaled 46 billion yen, and since 2015 we have sold strategic shareholdings with a value of approximately 260 billion yen and real estate worth 90 billion yen. This remains a priority area. - Non-core businesses: Sold US LNG business to Total; exited overseas nuclear power plant construction - Strategic shareholdings: Divested shares in IHI, Japan Material, KONE, TOPCON, Shibaura Mechatronics - Real Estate: Sold NREG Toshiba; sold factory sites in Kitakyusyu, Osaka and Ome in Japan, and the Irvine Campus in California; sold Toshiba General Hospital and Toshiba guesthouses - Privatized three listed subsidiaries to increase enterprise value: Toshiba Plant & Systems Services, NuFlare Technology, and Nishishiba Electric

Portfolio Reform and Priorities Introduction of an ROS-based exit rule allows us to promote disciplined portfolio management, determine the true capabilities of each business, and to drive active investments in high growth fields from 2021 onwards. (for further information, see page 39, 2-3.)

Reinforced Governance Framework Enhanced internal controls have been a priority for the board and management since 2015, and board appointments in 2019 reflect our commitment to constructive shareholder engagement, best-in-class governance, and to maximizing shareholder value. - The board is diverse in gender, nationality and expertise, with extensive experience in 37

international business, portfolio management, corporate restructuring, M&A, capital markets, capital allocation, accounting and auditing, and legal compliance. - Reviewed executive compensation to align it with mid- to long-term shareholder value. (for further information, see page 75, 5-1.)

Reinforced Financial Framework A strong performance in FY19 achieved operating income of 130.5 billion yen, up significantly from 35.4 billion yen in FY18. We will build on this. - The board has defined an appropriate level of capital, after considering risk assets, contingent liabilities, and portfolio and business plans. It will review the figure periodically. - We will continue to lower the cost of capital to leverage growth; ensure that net D/E does not exceed 30% and that net D/EBITDA does not exceed 100%.

Shareholder Returns Our basic policy on capital allocations that enhance shareholder returns and long term value. - On November 13, 2019, we completed a 700 billion yen share repurchase, at that time Japan’s largest in over a decade in terms of total amount, percentage of market cap, and relative to trading volume. - Despite COVID-19, we paid interim and year-end dividends totaling 20 yen per share. - Capital in excess of the appropriate level of capital will be used to provide shareholder returns, including share repurchase. (for further information, see page 69, chapter 4)

2-3. Portfolio Strategy

History of Portfolio Upgrade Competitiveness requires constant business portfolio evaluation and adjustment. Since 2015, we have implemented a series of measures to upgrade and build a resilient, B2B based portfolio.

Major restructuring measures 2016 Mar. Completed transfer of medical business to Canon 2016 June Transferred home appliance business to Midea 2017 July Divested Landis + Gyr 2018 Jan Divested Westinghouse 2018 Feb Completed transaction of TV business to Hisence 2018 June Completed divestiture of Toshiba Memory 2018 Oct. Completed transfer of PC business to Sharp 2019 June Completed transfer of LNG business to Total

Kioxia, the Former Toshiba Memory Holdings While we sold a majority stake in the current Kioxia Holdings Corporation (Kioxia) to a consortium Bain Capital in 2018, we still hold a 40.2% stake in the company. However, we have clearly stated that we have no strategic intention to remain in the Memory business, and that we want to realize the value of our investment in Kioxia at an early date. We intended to do that in the recent Kioxia IPO, which was postponed for reasons beyond our control.

We continue to consider how best to monetize our stake. In the meantime, Toshiba is not involved in the management of Kioxia, and is not provided with any forecasts of business result other than those released publicly. Toshiba Group’s forward-looking statements concerning financial conditions, results of operation and cash flow, do not include the impact of Kioxia.

Setting Priorities and Discipline Introduction of an ROS-based exit rule now allows us to promote disciplined portfolio management, determine the true capabilities of each business, and to drive active investments in high growth fields.

Any of our main business unit failing to achieve 5% ROS in FY20 will be subject to further restructuring, divestment or elimination. As the goal of this rule is to encourage allocation of resources to future growth, promising emerging businesses are exempt from the rule. The potentially distorting impact of COVID-19 is also discounted for now.

Based on the 5% rule, we monitored four businesses until recently: the thermal power business, System LSI business, Toshiba Tec’s printing business, and the HDD business. This figure is now three, as we announced a series of measures related to withdrawal from further system LSI development at the end of September 2020.

For further information: Press release announced on September 29, 2020 http://www.toshiba.co.jp/about/ir/en/news/20200929_1.pdf

Heading towards FY21 Semiconductor Business Withdrawing from new development of System LSI has substantially decreased the break-even point has significantly enhanced the stability of the business. Even if there is a market contraction in the future like the one caused by COVID-19, and sales fall to about the 300 billion yen level, the current structure will still allow for an operating margin of well over 5%.

*1: Power devices below 300V, 2: Toshiba Estimate

HDD Business We will mainly focus on the transition from the shrinking mobile HDD business to the expanding nearline HDD business targeting data centers. From a technological standpoint, we will catch up to the competition with our 18TB HDD in the current fiscal year. The significant investments in manufacturing facilities were also completed up to this point. Customer certifications are also expected to be completed during the current fiscal year. As a result, we plan to increase our share to 15% by fiscal year end and to over 20% by the end of the next fiscal year

*1: Toshiba estimate, based on market forecasts from IDC

Thermal Power Business We shifted resources from new constructions to the service businesses, leading to a steady increase of services within the revenue mix. We forecast that services will account for over 70% of sales in fiscal year 2025. Fixed costs are also decreased by 24% over the last 3 years, as a result of a review in staffing and optimization of manufacturing sites. We are also engaging in efforts to improve the operating efficiency by aggregating engineering resources. As a result, we expect core ROS to exceed 5% in the current fiscal year.

2-4. Recognize Megatrends, and Deliver Growth

As we closely monitor current businesses, we also look to the future, and the cultivation of products that will carry Toshiba forward.

We do this by looking at the megatrends that shape our world, and the problems we must contend with. They are many and varied. Energy shortages. Climate change, resource depletion and other environmental problems. A rising global population, intensifying urbanization and decreasing working populations. While these problems grow in severity, we now must also counter the threat of the COVID-19 pandemic. Technology alone cannot overcome these issues, but it offers effective tools that can help.

This section provides a brief introduction to a selection of the new and promising products that Toshiba is cultivating now to ensure growth in years to come. It concludes by looking at a crucial area for future growth, our capabilities in AI, an essential part of the cyber world.

SCiB™ A lithium-ion rechargeable battery offering six outstanding characteristics: excellent safety, long life, low-temperature operation, rapid charging, high input and output, and a wide effective state of charge range. The SCiB™ has been adopted by cars and buses, boats and hybrid locomotives. It also has a strong role to play in supporting renewable energy systems, grid stabilization, and power supply in remote locations.

The automobile market will grow to 12.4 trillion yen, the stationary and industrial market to 3.3 trillion yen. In India, we have partnered with Suzuki Corporation and Denso Corporation to manufacture automotive lithium-ion batteries at a factory under construction at Gujarat. Twice the size of our main plant in Japan, it is now readying for mass production in FY20.

*1 Compound Average Growth Rate, *2 JCI: Johnson Controls (US), *3 CBMM: Companhia Brasileira de Metalurgia e Mineração (Brazil)

Power Electronics Power Electronics is one of the growth businesses that aims to grow with Toshiba’s strengths in next-generation power devices and systemization technologies with low power loss. Following the delivery to Tokyo Metro Marunouchi Line in October 2019, Toshiba delivered electric systems for the latest electric multiple units operated by West Japan Railway Company, including combined traction and auxiliary inverter systems, traction motors, train control and monitoring systems and air-conditioning systems. Technologies deployed include inverters with next-generation that operate at high temperatures with low power loss, and a main traction motor that operates at high efficiency, requires less maintenance, and runs quietly. These improve energy efficiency and convenience of the railway system.

Toshiba will invest in enhancement of production capability and continued R&D of power devices, to deliver differentiated products for mobility and social infrastructure markets.

*1 NEDO: New Energy and Industrial Technology Development Organization *2 SiC: Silicon carbide, *3 GaN: Gallium nitride

A World Leader in AI

A recent World Intellectual Property Organization (WIPO) survey ranked Toshiba #3 in the world in AI-related patent applications, after IBM and Microsoft. This is integral to the direction we are taking, and a key area where we will continue to promote steady progress.

In applying AI, we are interested in sites that are rich in data, and in people. These are locations where we can develop prediction know-how for measurement and judgement, for recognition, analysis and understanding of flows and interactions, and for securing optimal planning. We will apply this know-how to the digital services that we are now promoting

AI researchers are found throughout Toshiba, but until recently this resulted in a fragmented knowledge base. We are now compiling and maintaining an AI technology database, currently approaching 200 case studies. We are determined to take full advantage of our assets and to ensure that AI R&D is a centrally managed resource always available to the people who need it.

3. Stable Growth as an Infrastructure Services Company

3-1. Market

New Business Categorization, FY20 onwards

As Phase 1 continues to make progress, we will initiate Phase 2 of the TNP. Toshiba Group is no longer a general electrical contractor business, a collection of product-oriented business units. We have left that behind to become an infrastructure services company that emphasizes maximization of overall corporate value and TSR.

Our core businesses today are in infrastructure services, a market currently enjoying global growth of 7%, and 5% in Japan. It’s a source of consistent profit, where we will expand businesses by leveraging data to offer our customers higher value and increased efficiency.

Total Addressable Market (US$B) Global Japan

*: Estimate of total infrastructure service market to which Toshiba can access. Includes $48.0 billion in Japan (5% CAGR) and $1.1 trillion global market (7% CAGR) (Estimated by Toshiba by referring to various reports of Japan ministries and other sources).

The Four Functions This approach is at the heart of our forthcoming reclassification, where the interrelations between the newly defined four functions will realize a synergy loop through mutual reinforcement.

Devices/Products The manufacture and sale of products, most notably semiconductors and motors, that are widely incorporated into infrastructure equipment and systems. By concentrating on areas where we can leverage strengths in technology differentiation, we will generate steady profit.

Infrastructure Systems (Installation) Businesses that focus on constructing the initial infrastructure framework. We are resolving past losses incurred in large-scale projects overseas, and will improve returns with much strengthened project management, by narrowing our business focus and being more selective, and by reducing fixed costs.

Infrastructure Services Toshiba’s core business. We are moving forward by expanding the scope of the services we offer and by leveraging data to increase the value and increased and efficiency we offer our customers.

Data services In the near future, a three- to five-year horizon, this will be the main pillar of our earnings. Our first step, and the first toward becoming an Infrastructure Services Company that takes comprehensive capabilities in CPS technology, is to organize data from operation and maintenance of infrastructure services and activities, and extract added value.

Forecast by New Segments

*1: The new segments are based on simple reclassification of current segment by splitting some figures. This excludes a part of common fee, monitored businesses and one time costs. *2: Sales and operating income figures are core-based. *3: ROIC figures include COVID-19 impact and restructuring costs. Figures before FY19 is adjusted to compare with FY20, such as impact on pre-deposit, loss-making contracts, subcontract act. ROIC= Profit and loss before tax × (1 - tax rate) ÷ (net interest bearing debt + net asset)

3-2. Phase 2: Infrastructure Service Business Model

Revenue Opportunities Across the Product Lifecycle

Infrastructure Services Track Record: Stable High Margin, Solid Growth

* Excludes restructured business and restructuring cost, adjustments made for certain one off reimbursements.

Provision of infrastructure services builds long-term relationships with customers. The service period for electrical equipment for rolling stock and elevators can exceed 30 years; for steam turbines and generators, and the monitoring and control equipment of water supply and sewerage systems, it’s as long as 60 years.

In FY19, over 70% of our total profit came from such services, capping an extended period of extremely stable performance.

Japan is already a 5 trillion yen market for the maintenance and renewal of aging facilities, and is projected to see annual growth of 5%. In the new normal of post COVID-19, remote monitoring of facilities and automated maintenance by robots are expected to be growth areas, presenting us with new opportunities. Another exciting prospect is the data services business. It’s now at the start- up phase but has the potential for EBITDA margins as high as 60%. 49

Steps to Grow Infrastructure Services:

We have identified several steps to grow our lucrative infrastructure service businesses.

Streamlining of service operations – Activities here will reach full-scale in FY21. Studies and some actions have been initiated, and profitability improvement of about 20 billion yen by is expected by 2025.

Expansion of service locations – We will promote a business expansion in the order of 500 billion yen through new installations in existing businesses, successful execution of service contracts, extending the scope of service to cover equipment made by other companies, and M&A. Start the roll-out in FY21.

Evolution into value-added services – We will evolve into value-added services, primarily though a transition to a profit-share model. In addition, we will participate in projects such as public private partnerships and concessions. We have started proof of concept in several areas and expect to see business launches from FY22.

* Proof of Concept

*1: Not major M&A encountered opportunistically, but focused on areas adjacent and complementary. Carry out planned, small scale M&A as part of annual business strategy.

Growth Model

*1: Net sales and operating income are based on core figures, ROIC calculations include COVID-19 impact and restructuring costs.

Area Coverage Type – Services that cover a large number of customers in a specific area, including buildings, POS, and IT. These services require a large number of personnel and numerous work locations, and a rapid response and cost competitiveness are the keys to success.

The entire Infrastructure Services are expected to expand by almost 500 billion yen from FY19 to FY25, with organic growth in Area Coverage Type business accounting for about 70 billion yen. As we provide field engineers with IT equipment and train them with multiple skill sets, we will take steps to integrate service locations and reduce administrative costs. This should significantly improve the ROS of the Area Coverage Type business from 7% to 12%, and we are targeting an ROIC of over 40%.

Major Infrastructure Type – Key infrastructures facilities, such as power plants, water purification plants, and roads, that require full-time onsite support. Technical capabilities in individual devices and systems and the ability to make operation-related proposals are the keys to success.

In this service, we target sales growth of 410 billion yen by FY25, 230 billion yen in growth coming from M&A by acquiring additional locations, and another 100 billion yen mainly from renewable energy. We aim to maintain a double-digit ROS of 12%, and to achieve an ROIC of about 20%.

Expanding Service Area

Business opportunities from the drive for net zero carbon emissions

*1: Prepared by Toshiba based on IEA World Energy Outlook, *2: Toshiba’s assumption based on renewables to occupy 33% in 2030

The EU, China and Japan have all set mid-21st century targets for carbon neutrality, and the IEA calculates that global energy-related investments required to achieve the Paris Agreement targets will increase from 80 trillion a year in 2014-2018 on average, to 140 trillion yen a year in 2019-2050. Looking at this, we are convinced that business opportunities to promote CO2 neutrality measures will drive the expansion of service location business in three areas; renewables, energy management and CO2 handling.

The IEA calculates that global energy-related investments required to achieve Paris Agreement targets will increase from 80 to 140 trillion yen a year. In Japan alone, investments of 50-80 trillion yen are seen as necessary over the next 10 years.

Toshiba’s Renewable Energy Business

*1: Carbon dioxide Capture, Utilization and Storage, *2: Perovskite solar panel; biggest in size and highest efficiency among film-based modules *3: Load dispatching center, *4: Fukushima Hydrogen Research Energy Field: Technology development business with New Energy and Industrial Technology Development Organization (NEDO), Tohoku Electric Power Co., Inc., Tohoku Electric Power Network Co., Inc., Iwatani Corporation and Asahi Kasei Corporation.

In line with such rapid market growth, we want to leverage our industry-leading technologies, and aim for a threefold expansion of our renewable energy business over the next 10 years. We are convinced that business opportunities from measures to achieve carbon neutrality could become a major pillar for service location business expansion.

In the domestic market for renewable energy, we have top shares in mega-solar and hydropower generating equipment. We are the global number one in adjustable speed pumped storage hydro systems, and a global leader in geothermal power generator turbines. In Japan, we plan to add wind power to our portfolio by building state-of-the-art windmills.

With respect to energy management, we have the top share in Japan for high voltage transmission equipment and advanced power control systems. In addition, to prepare ourselves for the future energy storage demand, we are developing secondary batteries and participating in a world-class pilot program in Fukushima.

With respect to CO2 handling, we are now operating Japan’s first large-scale Carbon Capture Facility in Omuta, Fukuoka. This is the first facility in Japan able to capture over 50% of the CO2 emissions from a power plant.

3-3. Strengths

We can already see how combining new capabilities with long-standing physical strengths is allowing us to reinforce our business in services. Here are some representative examples.

Developing IoT Services in the Social Infrastructure Business We offer customers a wide range of industrial systems where data services have great potential. Here we already offer customized services. Take railway systems as an example.

The data we get from those services give us deeper insights that supports a platform business and visualization, life cycle and failure analysis. Combined with our already extensive experience with operations and maintenance and linked with information models, this allows us to improve our customer O&M business, and made even better proposals.

This is already a reality. IoT devices we are installing in the drivers’ cabs of trains operated by JR Freight provide data that is analyzed to support failure prediction and improve service stability. Nor is it confined to rail. Our work on predicting rainwater inflows is optimizing pump control at sewerage facilities, reducing risk.

Developing IoT Services in the Energy Business Our physical strengths in turbines, central monitoring and control systems and pumping systems are being complemented by new technologies that are also taking us into new businesses.

In Mikawa, in western Japan, we operate a biomass power plant that we use to test and build a knowledge-base on different services, including an O&M dashboard developed in-house. Taking advantage of this knowledge, we are also starting demonstration experiments at external plants.

IoT Service Development in Manufacturing & IoT

Toshiba has always shone in manufacturing. Our Corporate Manufacturing Engineering Center has operated for 50 years, and we have tremendous knowledge of the physical that we are enhancing with data services and AI. Gains we have made through innovations like developing digital twins of all our factories are now supporting us in delivering solutions to other industry leaders, like Denso and Fujikoshi.

3-4. Phase 3: Evolving to Become a CPS Technology Company

Three Approaches to Evolving into a CPS Technology Company

* 1: CPS (Cyber Physical System): A mechanism for creating added value by collecting data in the real world (physical), analyzing it in the cyber world using digital technologies, etc., and making it easy to use information and knowledge, and feeding back it to the physical side.

*1: Smart Receipt is the service provided by Toshiba TEC

We are taking three approaches for evolving into a CPS technology company during TNP Phase 3. - Evolution of existing infrastructure services. Provision of “as-a-service” and CPS services, and creation of added value from the resulting data. - Implementation of new technologies as new infrastructure services, including encrypted quantum communications and precision medicine. These services will also lead to data creation going forward. - A matching platform for physical data. In addition to data created from the first two approaches, distribution data can be used as big data and transformed into a platform, a basis for data services that provide users with value.

Approach 1: Evolution of Existing Infrastructure Services

The Potential of Renewable Energy

* 1: VPP Virtual Power Plant

Renewable energy offers an example of the evolution of existing infrastructure services. We anticipate expanded investments over the next 10 years, which will push expansion of service locations that provide support. We also expect to see generation of unconsumed, surplus power from renewables, from around 2030, which will create a need for demand managing and matching. Our competitive advantages in key areas of energy management, include grid stabilization, energy storage, and VPP. This also underpins our preparations to establish a VPP business, where we see an enormous future market.

Market Size to Expand to1.2 Trillion Yen

In November 2020, we partnered with Next Kraftwerke, a major European renewable energy supply and demand manager, to establish a new company for energy resource aggregation services in the Japanese market. Data on weather, power supply and demand, the grid network, and energy storage capacity will be collected and used to optimize energy data matching and to provide services to

58 generators, consumers, and aggregators, to meet planned electricity supply demand balance, and to support best suitable trading operation in the balancing market.

We expect enormous demand for energy management; a market of 300 billion yen in 2030 that will grow to 1.2 trillion yen in 2040.

Approach 2: Social Implementation of CPS as New Infrastructure Technology

Quantum Key Distribution Commercialization of quantum key distribution (QKD) is a core component of quantum security infrastructure. As quantum computers improve in performance, the security market is attracting close attention, and is expected to grow to 1.4 trillion yen by 2030.

Market size to expand to 1.4 Trillion yen

*1: Toshiba’s long term market forecast, *2 Estimated by Toshiba

Our advantages here are clear. Toshiba has achieved the world’s fastest quantum key distribution speeds, and we are ideally positioned to establish the global de facto standard for this completely secure method of data transmission. Our technologies outperform our competitors by 50 times in transmission speeds and 1.6 in communication distance. Pilot testing is already underway in Japan and overseas, and we will launch services during fiscal year 2021.

We continue to promote advances, and are currently working on the service layer, and developing multiplexing technology that will allow quantum keys to travel the same fiber as the related data. However, this is not a market where we just intend to sell hardware. Our business plan is to build a subscription model, and with the start of real-life quantum services approaching fast, we are also making standardization proposals, including to the ITU Telecommunication Standardization Sector. We aim to turn an overwhelming competitive advantage into global market leadership.

Micro RNA MicroRNA-based cancer detection will play an important role in our advanced medicine infrastructure. The global market for liquid biopsy is expected to expand to 700 billion yen by 2030, and we have a technology that can detect 13 types of cancer at Stage 0 using only a very small amount of blood. This gives us a major competitive advantage in respect of evaluation time and the stage and accuracy of detection. Commercialization is slated for FY21, and our target is global leadership in the sector.

Market size to expand to 700 Billion yen

Approach 3: The Physical Data Matching Platform

The Data Services Market

Over the last decade or so, we have all witnessed cyber companies rapidly creating corporate value from digitized data. So far, this has been “cyber-to-cyber” value creation, and there is still a vast amount of data buried on the physical side. This is the treasure trove that Toshiba Group is determined to excavate. As the digital economy really takes off, already huge data volumes will grow even further, to 175 zettabytes in 2025. The vast majority of this increase will come from business domains where we are active—CPS data generated from physical processes. We have no doubt that an advancing

60 digital economy offers Toshiba immense business opportunities.

We have long been known for our strengths on the physical side, but for over 50 years we have also cultivated digital and AI technologies, and we will combine these physical and cyber resources to find and use still buried treasure in physical processes. The synergy loop of our four functions, centered on infrastructure services, will create the Toshiba of the future, an infrastructure services company with comprehensive capabilities in cyber physical systems.

Data Matching Platform Created by Toshiba Data

Our data matching platform creates value by taking customer data and finding associations with other data. For instance, data on consumer consumption that has accumulated in a database can used in digital services, such as B2C advertising and sales promotions, and converted into statistical data for use in business services in various settings.

As data volumes increases, and with it the value of its use, for both consumers and corporate users, we are considering alliances with over 100 corporate partners, including convenience store chains, drugstore chains, advertising agencies, and consumer goods manufacturers.

We aim to establish a data economy centered around the individual, not corporations, and are taking a different approach to many other companies in this field. Our privacy policy states that “rights to all data originating in a person belong to that person.” The basic premise is that confirming, controlling, freely transferring, and connecting data should all based on individual free will. We aim to establish a convenient, rich, and safe society by applying this policy to data connection.

Addressable Markets- Toshiba to Leverage Top Market Share in POS Terminals

*1 Source RBR 2019; POS units installed

Toshiba TEC enjoys high shares in many POS markets around the world. It is the No.1 player in Mexico, No.2 in the US, and No.3 in China and South Korea. Based on these well-established sales and service networks, Toshiba TEC is developing plans for distribution data matching services in Asia and in North America.

Target: Expand membership by CAGR 65%, total distribution by CAGR 90% by 2025

In the domestic market, Toshiba Data’s first step is to boost the number of affiliated stores offering our membership services of outlets. Toward this, we are considering coordination with Toshiba TEC and other companies’ POS systems. Our membership target is 30 million by 2025, so we are aiming for an extremely high growth rate of 65% a year. The total distribution amount of retail, an important metric for corporate users, is also expected to grow at a fast annualized pace of 90%, to 4 trillion yen in 2025.

Our Core Platform

As a manufacturer, Toshiba’s past growth has in large part been due to strengths in the physical domain. Now, supported by abundant business domain assets, our highly capable human resources and the collective strengths of Toshiba Group, we are fusing our physical resources with our rich resources in cyber, AI and digital technologies.

Using CPS technology, we will work with our SPINEX platform and many partners to create new services that solve social issues and spearhead the digital transformation of the industrial sector.

3-5. New Businesses

Decarbonization

Tandem solar cells The solar arrays familiar to us are all single layer monocrystalline silicon cells, and improving their performance is no easy task. But stacking a transparent solar cell that lets light through to the silicon cell while generating electricity from a lower wavelength immediately boosts power efficiency. Toshiba has done that with the Tandem Solar Cell, a low-cost cuprous oxide cell mounted on top of the silicon cell, greatly increasing output per area. As the leader in tandem cell power generation efficiency, we are working to bring the cells to market, and expect them to find use in diverse new green energy applications, including on-site renewable power generation and storage systems, distributed regional power supplies, and energy aggregation to balance power supply and demand.

Perovskite solar power We aim to commercialize these products in around 2025. We have achieved the world’s largest size in perovskite solar power, which are thin and can be applied to roofs and windows, and have also succeeded to reach the highest efficiency with respect to film types. We aim to achieve the efficiency level similar to that of crystal silicon by 2030.

CCUS We have cultivated technologies in carbon capture for over a decade, and operated pilot plant that can capture 10 tons of CO2 a day since 2009. In October 2020, we started the operation of a large-scale carbon capture facility at the Mikawa Power Plant in Fukuoka, Japan, that captures more than 500 tons of CO2 a day, over 50% of the plant’s daily emissions.

Hydrogen With the expanding use of renewable energy, there is an increase in occasions for output controlled variable in order to maintain the power grid supply-and-demand balance. Power-to-gas technology using hydrogen to enable large-scale long-term energy storage is a way to enable effective use of power from renewable sources with the least output controlled variable. Hydrogen energy storage and use will require not only a power grid supply-and-demand balancing function (demand response) but also establishment of the optimal operation function based on a hydrogen demand

and supply forecasting system. Toshiba has rich delivery record in our Hydrogen systems H2 one, and the Fukushima Hydrogen Energy Research Field (FH2R) which opened in March 2020 using a 10 MW hydrogen production unit is designed to fully utilize highly fluctuating power output from renewable energy without using storage batteries by performing supply-and-demand adjustment with respect to the power grid while producing clean hydrogen at low cost.

Precision Medicine Advances in technology are opening up new approaches to diagnostics and treatment. We are developing several tools, with a particular emphasis to help the treatment of cancer.

*1: Collaboration with Shinshu University, *2: Collaboration with Tokyo Medical University and National Cancer Center Japan, *3: Collaboration with Tohoku University, *4: Collaboration with Kanazawa University and Johns Hopkins University, *5: ASGCT: The American Society of Gene & Cell Therapy

The Genotype tool analyzes genetic information unique to the Japanese population to identify potential lifestyle-related diseases. We offer this as a service, and over 9,000 employees helped to build the database by allowing use of their medical data. A central concern is early detection of diabetes, a fast growing, debilitating ailment, and preventing diabetic nephropathy, a severe kidney disease. We are now able to predict risk of future diabetes with 96% accuracy.

In cancer treatment, we have capabilities covering both diagnosis and treatment. Our microRNA liquid biopsy system is a major advance, able to detect the presence of RNA markers in the blood for up to 13 different cancers, including those at stage 0, the easiest to treat. The test requires only a small amount of the patient’s blood, and results, delivered in only 2 hours, are 99% accurate. It is now undergoing trials.

Gene therapy fights cancer at the cellular level, by introducing genetic material into cells to fight or protect against cancer. Viruses are often used for this, but have all the drawbacks associated with viruses. Our work with Shinshu University has allowed us to develop cancer-oriented liposome technology, a biodegradable molecule that provides accurate, highly efficient transport of nucleic acid to targeted cancerous cells.

On another level, we will also launch genetic risk determination services using genomic information and solutions to mitigate forecasted risk of disease.

Quantum-related Technology

Simulated Bifurcation Machine One outcome of our work in quantum knowhow is an algorithm able to take on the weighty problem of quickly finding the best answer in a situation where there are many and complex possible combinations and answers. We tested its capabilities by using the Simulated Bifurcation Machine, running on a standard PC, to make foreign exchange transactions in eight currencies. The results quickly proved its worth and attracted considerable attention. We are providing services to solve complicated calculation with 100,000 spins. The platform side is already being used in Amazon Web Services (AWS), and a service to Azure Quantum will also begin in 2021. On the application side, the first proof of concept demonstration in financial arbitrage transactions is being planned for 2021. We are engaging in talks with financial institutions and pharmaceutical manufacturers to pursue rapid commercialization.

4. Maximizing the Shareholder Return 4-1. Shareholder Return Policy

*1 For the time being, equity-method income/loss from Kioxia is excluded from this policy.

In 2018, Toshiba completed a 700-billion-yen share repurchase, the biggest in Japan in a decade in terms of scale, trading volume and size relative to market cap. This demonstrated commitment to maximizing shareholder returns was restated in November 2019 when we announced a basic policy of maintaining an average consolidated dividend payout ratio of 30%; full consideration of additional returns, including share repurchases when capital exceeds a deemed appropriate in terms of assets, and subject to periodic board review.

Of course, ensuring financial stability is management’s highest fiduciary responsibility, and is prioritized when dealing with COVID-19 and other risks and threats.

For further information regarding Toshiba’s shareholder returns, please refer to this page. http://www.toshiba.co.jp/about/ir/en/stock/dividend.htm

4-2. Focusing on TSR

Total Shareholder Return, TSR, provides us with an important medium-to long-term indicator, both comprehensive and objective, that evaluates the results of our activities from the shareholder perspective. We remodeled our executive compensation system, to make sure it is better aligned with and tied to enhancing shareholder value. This was remodeled in 2018 in line with announcement of TNP, and further expanded the following year to introduced compensation with expanding restricted shares to outside directors, and performance-linked stock incentives to non-executives. (for further information, see page 76)

4-3. Financial Policy to Maximize Shareholder Return

The board is responsible for determining appropriate capital levels, and is free to seek advice from third parties on this question. There is no magic number. Decisions are based on evaluations of the balance sheets, including risky assets and contingent liabilities, our portfolio and our plans. We also benchmark against competitors in Japan and overseas with similar risk profiles.

We will decrease our cost of capital by using leverage to finance growth. We have set a debt limit that limits net D/E to 30% and net D/EBITDA to 100%.

We put highest priority on efficient capital management and maintain a policy of selling off non-business assets. Our divestments of listed shares, functional subsidiaries, and real estate. We will continue to sell off unnecessary non-business assets.

Benchmark for Shareholders’ Equity

Approach to Growth Investments

Announced in November 2020 Our basic financial management policy remains unchanged from our previous announcements. We also believe it is important to apply appropriate leverage to lower cost of capital as the focus of growth changes over time. Pursuant to this policy, we will increase borrowings by FY25 and use proceeds to fund strategic investments. While we anticipate strategic investments to take the form of M&A transactions which meet our ROIC and IRR criteria, we will consider returning excess funds to our shareholders.

Capital allocation for the 5 years from FY21 to FY25

We forecast cumulative operating cash flows of 1.3 trillion yen in the 5 years of FY21-FY25. The illustrations above show there will be further cash accumulation through asset sales and increased leverage. Also, it shows our planning of capital allocation starts with dividends, which we plan to increase steadily based on our basic policy of maintaining an average consolidated dividend payout ratio of at least 30%. Furthermore, we anticipate capital expenditures of 700 billion yen in order to execute our growth strategy. The remaining capital will be used to strengthen infrastructure services through growth investments including M&A. We will consider returning funds in excess of adequate capital to our shareholders, possibly in the form of a share buyback.

5. ESG Toshiba Group has long been guided and inspired by the simple credo of its basic commitment: “Committed to People, Committed to the Future.” The foundation for an unwavering determination to contribute to society through our businesses, it also reminds us that we are a member of a society that faces many issues, including energy shortages, resource depletion, and climate change, and that we must contribute to their solution by considering the impact of our corporate activities over the long term, rather than pursuing short-term profit.

In our business activities, we will continue fundamental research into future technologies and products, and support the transition to renewable energy and lower use of labor and energy. In our corporate operations, our focus is on promoting environmental management, sustainability, and also compliance.

We are strengthening our engagement with ESG, the environment, society and governance, and with sustainability management, which we recognize as the foundations for ethical and transparent management and Toshiba Group’s sustainable development over the long term. We will create and provide value in cooperation with our stakeholders, including customers, shareholders and investors, suppliers, employees and local communities. We conduct corporate activities in a fair and honest manner, in accordance with the Toshiba Group Standards of Conduct.

While our recent focus has been on governance, an area where we have taken the lead among Japanese companies, we are now also reinforcing initiatives related to the environment and society.

Our Approach

SDGs Initiatives In engaging with society, we seek to envision a future for generations to come, and to join with our stakeholders to shape the world of tomorrow. Our basic commitment is a natural fit with the United Nations Sustainable Development Goals (SDGs), which define targets for securing sustainable development by 2030. Within this framework, we combine the creative power and technological expertise we have built up over the years to tackle social issues that are becoming increasingly complex and serious.

Contributing to the SDGs through Our Corporate Activities An SDGs promotion team from our corporate staff and key group companies led efforts to clarify the relationship between our businesses and the SDGs. They identified eight goals that can be achieved through Toshiba Group’s businesses, and we announced accelerated initiatives in these areas in the TNP. Subsequently, we added two more goals to be achieved through corporate activities. Toshiba Group is contributing to the achievement of SDGs through all of its corporate activities.

5-1. Governance Initiatives

Revitalized Governance The repercussions from the 2015 discovery of inappropriate accounting (page X), especially the 2016 continuation of the designation of Toshiba’s shares as securities on alert, were a strong spur to fundamental reforms of governance. The 2017 report that secured the lifting of the designation catalogued far-reaching changes already made to internal controls, and the Toshiba that they produced remains committed to excellence in corporate governance to this day.

Our policy on governance aim to meet the interests of stakeholders by realizing the Group's sustainable growth and improving enterprise value over the medium to long term. The foundations for its attainment are the measures reported to the Tokyo and Nagoya stock exchanges: reinforced management systems, including decision-making processes, that are robustly monitored and scrutinized; reforms of business processes; measures to change the awareness and mindset of managers and employees; a revamped disclosure system; and much improved monitoring of all of the above in Toshiba Group companies, in Japan and overseas.

Most important of all, the centerpiece of the reforms, is the enhanced ability of the board to oversee business execution by executives. This was achieved by adopting a company-with-three- committees system that delegates decisions on business execution to key executives, freeing the board to concentrate on determining basic business strategy and overseeing and supervising its execution.

The board itself is also subject to new governance rules. Annual surveys of the effectiveness of the directors help to clarify the current status and identify any issues. Sharing the results of the evaluations and analysis contributes to efforts to enhance the board’s overall effectiveness and improve its functioning, and that of the three committees.

Board Reform In 2019, we continued to advance board reforms when, following constructive engagement with some of our largest investors, we won shareholder approval for a significant restructuring. This increased the number of independent directors from seven to a strong majority of 10 out of 12 directors, and included the appointment of non-Japanese directors, four in all, for the first time in 80 years. The reform also ensured that the members of the Audit, Nomination and Compensation committees are all independent directors.

The 2020 ordinary general meeting of shareholders expressed its confidence in the reformed board, electing one new director to replace the retiring chairperson.

Toshiba’s board is diverse in gender, nationality and expertise, with members experienced in portfolio management, business restructuring, M&A, capital markets, capital allocation, accounting and auditing, and legal affairs and compliance. It has become a model for corporate governance in Japan.

Communications with Capital Markets Achieving the sustainable growth and mid- to long-term increase of corporate value that we target demands healthy long-term relations with our shareholders, investors and other stakeholders. One way we promote constructive dialogues with shareholders and investors is through meetings with outside directors. Questions and opinions offered so far have ranged wide, to include corporate governance, voting systems, the skill sets of nominated directors, and the TNP. We post minutes of the meetings on our website, in the interest of open and fair disclosure, and to reach a wider audience. We continue to consider how we can achieve that latter goal and further strengthen dialogues with shareholders.

Improved Compliance Alongside growth-oriented investment and improved profitability, the TNP considers risk management. It introduces a three-line defense as a framework to prevent recurrence of negative incidents, with business operations forming the first line, the corporate administrative divisions the second line, and the auditing divisions the third. Each has defined roles and responsibilities, and clear consultation and report routes, and they complement each other in realizing and promoting effective risk management.

In the first line, personal awareness is essential. Toshiba’s top management understands the importance of talking up compliance and ensuring its company-wide observance. Tools we employ to support this include behavioral evaluations of personnel, and spending on training to foster understanding of compliance and awareness of the whistleblower system. We have also made regular personnel rotations mandatory, to prevent over-reliance of specific people to handle any given task.

The second line is based on administrative checks and balances. Functions that previously reported to business operations are now separated from them, and they instead report to their related corporate division. This has already been implemented for finance & accounting, IS, HR & administration, and legal services. Further measures, including improved data collection, measures to eliminate human error and to visualize risk, will be achieved with the introduction of next- generation mission-critical IT systems. In related measures, achieving the TNP goal of reducing the subsidiary count will also help to strengthen group governance and internal controls.

The third line is responsible for proactive auditing. In July 2020, this was reinforced with the establishment of the Compliance Advisory Meeting as a forum where in-house and third-party experts and senior executives, including the CEO, could develop recommendations on strengthening compliance, bolstering fraud prevention, and consider how to enhance internal controls over the medium to long term. Actions like these will support Toshiba in its determinations to conduct business while "placing the highest priority on life, safety, and compliance with laws, social norms, and ethics.”

Compensation Aligned with Raising Shareholder Value The Compensation Committee is responsible for establishing compensation policy for directors and executive officers.

The main responsibility of directors is to supervise execution of the Group's business and to increase corporate value. Compensation for directors is determined at a level that will secure highly competent personnel, ensure effective execution of the supervisory function, and thereby increase corporate value from a medium-to long-term perspective.

The main responsibility of executive officers is to lead and to increase the corporate value of companies or divisions within the Group. Compensation for executive officers has two components, fixed compensation and performance-linked compensation, and is determined at a level that will secure highly competent personnel and provide an incentive to improve business performance.

a. Compensation for directors  Directors are paid a base salary (fixed amount) in accordance with the scope of their responsibilities. An allowance is provided for nonresidents of Japan (where Toshiba’s HQ is located).  Stock compensation is paid in the form of Toshiba stock, and is subject to mechanisms such as restricted stocks with sale and transfer restrictions prior to retirement  Directors who are concurrently executive officers are compensated only as executive officers, as specified in (b) below. b. Compensation for executive officers  Compensation for executive officers consists of base salary (fixed amount), stock compensation (fixed amount) determined by position, and performance-linked compensation.  Performance-linked compensation is determined in accordance with the performance of the company as a whole, and of the business managed by an executive officer during the fiscal year, plus reference to medium- to long-term management indicators.  For stock compensation and performance-linked compensation (shares) that are paid in the form of the company's stock, mechanisms such as restricted stocks with sale and transfer restrictions prior to retirement are used to secure effectiveness as an incentive for medium- to long-term improvement of business performance. c. Compensation standards Compensation standards are determined at levels suitable for a global company, with the aim of securing highly competent management personnel. The compensation standards of other listed companies and their employee payroll and benefits are considered when determining Toshiba's compensation standards.

Compensation pertaining to the above is set as follows: Director Base salary + Stock compensation + Allowance for non-residents of Japan Executive officer Base salary + Stock compensation + Performance-linked compensation (shares and cash)

Please refer to https://www.toshiba.co.jp/about/ir/en/governance/gov_03.htm for details on performance-linked compensation. d. Total amount of compensation by category of corporate officer, total amount of compensation by type, and the number of eligible corporate officers Category Total amount of Fixed Performance- Executives compensation compensation linked eligible (millions of yen) compensation (people) Directors 17 17 - 5 (excluding outside directors) Outside 222 222 - 14 directors Executive 1,023 677 346 15 officers

For further information on our governance initiatives, please refer to https://www.toshiba.co.jp/about/ir/en/governance/index.htm

5-2. Environmental Initiatives

Environmental Future Vision 2050 Recent years have seen a number of environmental issues grow in scale and seriousness, including climate change, resource depletion and energy shortages, all of which threaten the safe and secure lives of future generations. In these circumstances, we recognize that, if we are to continue to realize growth while contributing to a sustainable society, it is essential to provide value and respond to global trends with a long-term perspective.

In 2020, Toshiba Group announced Toshiba Group's Environmental Future Vision 2050, a new long-term vision with a global perspective that responds to the drive for decarbonization and the transition to a circular economy.

Environmental Future Vision 2050 envisions a sustainable society as decarbonized, that circulates resources, and that is in harmony with nature. It sets goal for contributing to the realization of this society through environmental management that creates value and ensures harmony with the earth. Using the same backcasting approach applied to our 2007 vision, we will promote initiatives in three areas: climate change, the circular economy, and ecosystems.

Climate change – Contribute to reducing GHG emissions to net zero by 2050 by cutting emissions throughout our value chain by 50% by FY30 and over 80% by FY50, both against FY19. These goals are consistent with Japan’s targets under the Paris Agreement, and essential for realizing the future envisaged by the Agreement. We will achieve them by expanding our investments in energy-saving equipment and the use of renewable energy, leveraging our technologies to create products and services that contribute to GHG reductions, and promoting businesses related to adaptation to climate change.

The circular economy – Continue to promote efficient use of resources in products, services and business activities, proactively collaborate with industry organizations, government agencies and other companies, and look for opportunities to promote the transition to a circular economy business model. Specifically, in addition to reducing waste generated by business activities and to increasing recycling of used products and parts, we will apply our digital technologies to building a circular economy business model.

Ecosystems – Contribute to a society where people can live in harmony with nature and continue to enjoy the blessings of ecosystems by promoting compliance with policies and regulations on chemical substance management, proper management of water resources, and conservation of biodiversity in and around our business and production sites.

These efforts will allow us to contribute to the realization of a sustainable society by reducing the lifecycle environmental impacts of our products and services. With the aim of integrating business and environmental management, we will proactively develop environmental contribution measures in our focus business areas in line with the TNP.

Targets for FY30 We have broken down the GHG reduction targets we need to meet on our way to achieving Environmental Future Vision 2050, and will promote related initiatives. We have submitted these targets to the Science Based Targets initiative (SBTi)* for an official validation. * Science-Based Targets, SBT: Science-based targets are scientifically grounded GHG reduction targets set by companies on a medium- to long-term basis in order to keep the global temperature rise this century well below 2 degrees Celsius above pre-industrial levels. Science-based targets are validated by the SBT initiative.

(All against FY19)  Total of Scope1*1 and Scope 2*2 (GHG emissions from the business activities of the Group)

28% reduction by FY30

 In Scope 3*3 total GHG emissions from the use of energy supply products and services*4 sold

50% reduction by FY30

 Total GHG emissions from the use of energy-consuming products and services*5 sold in Scope 3

14% reduction by FY30 *1 Direct emissions from the use of fuel in-house *2 Indirect emissions from the use of electricity and heat purchased by the company *3 Generated in the company’s value chain (raw material procurement, distribution, sales, disposal, etc…) other than Scope 1 and Scope 2 *4 Power plants, etc. *5 Social infrastructure products, building-related products (air-conditioning equipment, lighting equipment, elevators), office equipment, power devices, etc

We will achieve the Scope 1 and Scope 2 emission reductions by investing in energy-saving facilities for use in our own business activities, and by expanding the introduction of renewable energy. For Scope 3, we target category 11 "Use of sold products" and include energy-supplying products and services, which were not subject to Scope 3 calculations in the past. We aim to significantly reduce emissions by no longer accepting new orders for coal-fired thermal power plant construction work.

Developing the Seventh Environmental Action Plan Our Seventh Environmental Action Plan, from FY21 through FY23, will define more detailed KPIs based on Environmental Future Vision 2050, and we will promote activities by setting annual targets.

Disclosures in line with the Task Force on Climate-related Financial Disclosures The impacts of climate change grow increasingly serious every year, attracting growing interest and concern, and requiring companies to take proactive measures. In its final report, released in 2017, the Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board, required companies to disclose information on climate-related risks and opportunities. Toshiba Group has endorsed TCFD, and also participates in the TCFD Consortium, established to promote efforts by endorsing organizations in Japan. Going forward, we will actively disclose climate-change information in accordance with the four thematic areas stipulated by TCFD: governance, strategy, risk management, and metrics and targets.

Please refer to https://www.toshiba.co.jp/env/en/vision/carbon_risk.htm for details on the climate- related risks and opportunities currently identified by Toshiba Group.

Also, please refer to https://www.toshiba.co.jp/env/en/index.htm for our environmental initiatives.

5-3. Social Initiatives

Respect for Human Rights Guided by our basic commitment, we respect the rights of all stakeholders, including our employees, customers, and shareholders. We support universal principles regarding human rights and labor practices, including the Universal Declaration of Human Rights, and respect human rights through sound business activities.

Toshiba Group's policy on human rights is stipulated in the Article 1 of the Standards of Conduct for Toshiba Group, “Human Rights." Written in reference to international codes and guidelines, such as the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises and ISO26000, it is binding on all Toshiba Group executives and employees. Under this policy, we demand corrective actions for any human rights violations not only by Toshiba Group executives and employees, but also by our suppliers. We also initiate dialogues with concerned stakeholders.

Occupational Health and Safety Management Safe and comfortable work environments allow employees to maintain the mental and physical health needed to flourish professionally. Toshiba first codified occupational health and safety (OHS) policy in April 2004. With the introduction of a new global brand identity in 2018, and in light of the requirements of ISO45001 certification, the policy was revised to specify consideration of people related to Toshiba‘s business who work in diverse conditions, including independent contractors.

Toshiba Group defines fatal accidents or accidents requiring multiple people to take time off work as serious accidents, and strives to eliminate them from the workplace. Toshiba Group has many companies and operates in a large number of industries. In this context, past cases indicate that the risk of serious accidents is relatively high, and we have defined target industries to which we apply OHSAS18001*1, an international occupational health and safety management standard requiring third-party audits. We have promoted the introduction of this standard and the acquisition of third- party certification for manufacturing companies in those industries since FY07. By FY19, all Toshiba Group manufacturing companies and 52 non-manufacturing companies in Japan (76.1% of the total number of employees in all domestic companies) had acquired certification, while 43 major manufacturing companies overseas (73.5% of the total number of employees in all overseas companies) had acquired certification. OHSAS18001 provides us with a methodology for promoting visible safety management that continually assesses and manages safety and health risks through risk assessments and managing compliance with laws and regulations*2.

Group companies other than those subject to OHSAS18001 certification also operate simple PDCA cycles in accordance with industry-defined guidelines or based on the Basic Safety and Health Policy and promotion plans. The Group's corporate OHSMS is maintained and upgraded by periodically evaluating the processes of these activities. *1 Occupational Health and Safety Assessment Series. Toshiba Group is promoting the transition to ISO45001 standards announced in March 2018 for companies that have acquired OHSAS18001 certification. *2 Major regulatory categories that are managed in compliance with OHSAS18001

Stringent application of OHS measures has long assured safe workplaces. Toshiba factories in Japan consistently report many fewer occupational accidents than the national average for manufacturing industry, and for the electrical appliance industry. In FY19, the number of accidents was 17% lower than in the previous fiscal year, with a total of 96 (1 death, 30 lost time, and 65 no lost time). However, we did record the Group's first fatal accident in seven years.

Human Resource Management for Sustainable Growth The Essence of Toshiba states that "we turn on the promise of a new day." To realize this goal, we are focusing on creating an open corporate culture, building fair personnel systems, and developing and utilizing human resources so that our diverse human resources, who are sincere and passionate for change, can envision the future of the company, cooperate with each other, and create new value together.

Toshiba Group's Human Resources Policy is based on the idea that people who are sincere and enthusiastic about reform will envision the future of the company, cooperate with each other, and create new value together. The policy is designed to fully support this.

Toshiba Group Human Resources Policy To initiate a new future for Toshiba Group, the new Human Resource System provides total support for people with a sincere passion for transformation who envision the company’s future and cooperate with one another to create new things. Appraisal: People who take on new challenges will be highly evaluated and rewarded for their actions and performance. Talent (management, assignment, and training): People who lead growth and innovation and take on new challenges will be assigned and trained.

Organization:

A highly creative and productive organization will be created where each person can play an active role.

Diversity is a driver of active innovation and corporate growth, and we foster an open culture in which employees can play active roles and cultivate individual strengths, irrespective of gender or sexual preference, nationality, or disabilities. This approach also enhances corporate value, as it gives us access to a larger pool of capable, innovative people. Our Global Recruitment Program for directly hiring new graduates from foreign universities, introduced in FY06 has now attracted a cumulative total of well over 400 people. Global recruits

receive training and mentoring in Japan, to prepare them for their careers.

We are making a concerted effort to accelerate the careers of female employees. Our aim is for women to account for 7% of managers by the end of FY20. We also want women to account for 50% of new university recruits for administrative positions, and for 25% for technical positions. Measures to achieve these targets including training female manager candidates and awareness raising for managers and workers.

Work-style Reform In order to solve social issues and contribute to the further development of society as an infrastructure services company, we have promoted work-style reforms since April 2019. By promoting flexible work-style, business reforms, and health management, we are working to rectify long working hours and to encourage high-value-added work, so that every employee can work safely, healthily, and enthusiastically.

Since April 2020, as a result of the coronavirus pandemic, personnel who can work from home do so, in principle. We supported this move by immediately increasing the number of network lines that can be accessed from outside the company simultaneously o 50,000, a fivefold increase, and we continue to promote efforts to improve the working environment.

The Supply Chain We meet our responsibilities throughout the supply chain with a risk-based approach centered on suppliers with whom we have continuing business, with consideration for factors particular to business sectors and regions. We ask suppliers to comply with the Toshiba Group Procurement Policy, and make translations and updates available in English, Chinese and Thai. This is complemented by the Toshiba Group Green Procurement Guidelines, which addresses environmental issues, and the Toshiba Group Conflict Mineral Policy. Our employees are also guided by our Standards of Conduct. We fulfill our CSR and work to build sound partnerships with suppliers through trade compliant with laws, regulations and social norms, and by cultivating mutual trust and understanding. As early as October 2011, for humanitarian reasons, we introduced our policy on conflict minerals, which prohibits the use of tin, tantalum, tungsten, gold and other minerals mined in the Democratic Republic of the Congo and its neighbors, which violate human rights.

For more information on our social initiatives, please refer to https://www.toshiba.co.jp/sustainability/en/performance/social/index.htm

6-1. Consolidated Historical

FIVE-YEAR SUMMARY

Toshiba Corporation and Consolidated Subsidiaries Millions of yen, except per share amounts and ratio The Fiscal Years ended March 31 2020 2019 2018 2017 2016 Net sales ¥ 3,389,871 ¥ 3,693,539 ¥ 3,947,596 ¥ 4,043,736 ¥ 4,346,485 Operating income (loss) 130,460 35,447 86,184 96,537 (581,376) Income (loss) from continuing operations, before income taxes and noncontrolling interests (47,539) 10,909 82,378 44,945 (499,439) Net income (loss) attributable to shareholders (114,633) 1,013,256 804,011 (965,663) (460,013) of the Company Comprehensive income (loss) attributable to shareholders of the Company (138,915) 1,083,664 819,189 (844,585) (752,518) Equity attributable to shareholders of the Company 939,806 1,456,659 783,135 (552,947) 328,874 Total equity 1,076,426 1,699,045 1,010,734 (275,704) 672,258

Total assets 3,383,433 4,297,344 4,458,211 4,269,513 5,433,341 Per share of common stock: (Yen) 2,071.98 2,691.21 1,201.78 (1,306.03) 776.74 Earnings (loss) per share attributable to shareholders of the Company (Yen) −Basic (236.39) 1,641.85 1,628.88 (2,280.76) (1,086.45) −Diluted − − − − − Shareholders' equity ratio (%) 27.8 33.9 17.6 (13.0) 6.1 Return on equity ratio (%) (9.6) 90.5 698.6 − (65.1) Price-to-earnings ratio (PER) − 2.15 1.89 − − Net cash provided by (used in) operating activities (142,148) 124,855 37,367 134,163 (1,230) Net cash provided by (used in) investing activities (122,514) 1,305,434 (146,713) (178,929) 653,442 Net cash provided by (used in) financing activities (687,244) (645,018) (63,613) (204,220) 135,747 Cash, cash equivalents and restricted cash at the end of the fiscal 376,973 1,335,520 548,657 723,231 975,529 year Number of employees 125,648 128,697 141,256 153,492 187,809 Notes: 1) The Group's Consolidated Financial Statements are based on US Generally Accepted Accounting Principles. 2) The Memory business (including its SSD business, but excluding its image sensor business) was classified as discontinued operations in accordance with Accounting Standards Codification ("ASC") No. 205-20 "Presentation of Financial Statements - Discontinued Operations" in the fiscal year ended March 31, 2018. Results of the prior fiscal years have been revised to reflect these changes. The results of the Memory business were reported as discontinued operations for the first two months of the fiscal year ended March 31, 2019, and the results of the rest of the year were accounted for using the equity method. 3) The Westinghouse Group's Nuclear Power business was classified as discontinued operations in accordance with ASC 205-20 in the fiscal year ended March 31, 2017. Results of the prior years have been revised to reflect these changes. 4) The Group adopted Accounting Standards Updates ("ASU") No. 2016-15 "Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force)", ASU No. 2016-18 "Statement of Cash Flows Restricted Cash (a consensus of the FASB Emerging Issues Task Force)" and ASU No. 2017-07 "Compensation Retirement Benefits Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" effective from the first quarter of the fiscal year ended March 31, 2019. Results of the prior years have been revised to reflect these changes, except for ASU 2017-07, which was not reflected before the fiscal year ended March 31, 2016. 5) Consumption tax is not included in the Net sales. 6) Operating income (loss) is derived by deducting the cost of sales, selling, general and administrative expenses and impairment loss on goodwill from net sales. This result is regularly reviewed to support decision-making in allocation of resources and to assess performance. Certain expenses such as restructuring charges and legal settlement costs are not charged to operating income (loss). 7) Total equity is the sum of Equity attributable to shareholders of the Company and Equity attributable to noncontrolling interests. 8) The calculation of "Per share of common stock", "Shareholders' equity ratio" and "Return on equity ratio" is based on Equity attributable to shareholders of the Company in the consolidated balance sheets. 9) Basic earnings (loss) per share attributable to shareholders of the Company ("EPS") is computed based on the weighted-average number of shares of common stock outstanding during each period. Diluted EPS assumes the dilution that could occur if convertible bonds were converted or stock acquisition rights were exercised to issue common stock, unless their inclusion would have an antidilutive effect. 10) Diluted net earnings per share attributable to shareholders of the Company has been omitted because the Company did not have potential common stock that were outstanding. 11) On October 10, 2018, the Company executed a share consolidation in a ratio of 10 shares to 1. The results of before the fiscal years ended March 31, 2016 to March 31, 2018 have been revised to reflect these changes. 12) Return on equity ratio for the years ended on March 31, 2017 has been omitted because the average equity attributable to shareholders of the Company during the period is less than zero. 13) Price-to-earnings ratio ("PER") for the years ended on March 31, 2020, 2017 and 2016 have been omitted because of Net loss attributable to shareholders of the Company. 14) The number of employees are the sum of the workers who are expected to work or have worked over a year between the regular employees and fixed-term employees.

Consolidated Balance Sheets Toshiba Corporation and Consolidated Subsidiaries As at March 31, 2020 and 2019

Millions of yen Thousands of US dollars Assets 2020 2019 2020 Current assets: Cash and cash equivalents ¥ 376,973 \ 1,335,520 $ 3,458,468 Notes, accounts receivable and contract assets : Notes receivable 71,591 79,072 656,798 Accounts receivable and contract assets 920,322 955,649 8,443,321 Allowance for doubtful notes, accounts receivable and contract assets (21,119) (19,466) (193,752) Inventories 482,327 468,878 4,425,018 Other receivables 70,664 82,944 648,294 Prepaid expenses and other current assets 137,341 131,261 1,260,009 Total current assets 2,038,099 3,033,858 18,698,156

Long-term receivables and Investments: Long-term receivables 7,315 8,603 67,110 Investments in and advances to affiliates 428,384 501,052 3,930,128 Marketable securities and other investments 77,003 85,965 706,450 Total long-term receivables and investments 512,702 595,620 4,703,688

Property, plant and equipment: Land 41,819 42,442 383,661 Buildings 644,571 642,613 5,913,495 Machinery and equipment 1,261,488 1,243,888 11,573,284 Construction in progress 35,368 28,939 324,477 1,983,246 1,957,882 18,194,917 (14,338,98 Accumulated depreciation (1,562,949) (1,572,162) 1) Total property, plant and equipment 420,297 385,720 3,855,936

Operating lease right-of-use assets: Total operating lease right-of-use assets 155,513 − 1,426,725

Others assets: Goodwill and other intangible assets 119,677 116,595 1,097,954 Deferred tax assets 84,336 99,003 773,725 Other assets 52,809 66,548 484,486 Total other assets 256,822 282,146 2,356,165

Total assets ¥ 3,383,433 \ 4,297,344 $ 31,040,670 For more information, please visit our IR website at http://www.toshiba.co.jp/about/ir/en/finance/index.htm

Consolidated Balance Sheets Toshiba Corporation and Consolidated Subsidiaries As at March 31, 2020 and 2019

Millions of yen Thousands of US

dollars Liabilities and equity 2020 2019 2020 Current liabilities: Short-term borrowings ¥ 13,339 ¥ 26,991 $ 122,376 Current portion of long-term debt 49,310 330,753 452,385 Notes and accounts payable 502,066 660,792 4,606,110 Other payables and accrued expenses 286,000 297,334 2,623,853 Current lease liabilities 44,529 − 408,523 Accrued income and other taxes 64,382 49,422 590,661 Advance payments received 266,129 301,450 2,441,550 Other current liabilities 172,162 211,677 1,579,469 Total current liabilities 1,397,917 1,878,419 12,824,927

Long-term liabilities: Long-term debt 173,754 76,935 1,594,073 Accrued pension and severance costs 431,632 434,487 3,959,927 Non-current lease liabilities 114,219 − 1,047,881 Deferred tax liabilities 56,519 57,515 518,523 Other liabilities 132,966 150,943 1,219,871 Total long-term liabilities 909,090 719,880 8,340,275

Total liabilities ¥ 2,307,007 ¥ 2,598,299 $ 21,165,202

Equity attributable to shareholders of the Company: Common stock: Authorized−1,000,000,000 shares issued 2020−455,000,000 shares ¥ 200,175 ¥ 200,044 $ 1,836,468 2019−544,000,000 shares Retained earnings (accumulated deficit) 1,031,231 1,528,463 9,460,835 Accumulated other comprehensive loss (286,593) (262,311) (2,629,294) Treasury stock, at cost: 2020−1,422,054 shares (5,007) (45,936) 2019−2,735,038 shares (9,537) Total equity attributable to shareholders of the Company 939,806 1,456,659 8,622,073 Equity attributable to noncontrolling interests 136,620 242,386 1,253,395 Total equity ¥ 1,076,426 ¥ 1,699,045 $ 9,875,468 Commitments and contingent liabilities Total liabilities and equity ¥ 3,383,433 ¥ 4,297,344 $ 31,040,670

Consolidated Statements of Operations Toshiba Corporation and Consolidated Subsidiaries For the fiscal years ended March 31, 2020 and 2019

Millions of yen Thousands of US dollars 2020 2019 2020 Sales and other income: Net sales ¥ 3,389,871 ¥ 3,693,539 $ 31,099,734 Interest and dividend income 4,245 6,249 38,945 Equity in earnings of affiliates − 12,901 − Other income 29,752 49,487 272,954 3,423,868 3,762,176 31,411,633 Costs and expenses: Cost of sales 2,472,002 2,783,564 22,678,917 Selling, general and administrative expenses 787,409 864,690 7,223,936 Impairment loss on goodwill − 9,838 − Interest expenses 5,409 10,563 49,624 Equity in losses of affiliates 58,957 − 540,890 Other expenses 147,630 82,612 1,354,404 3,471,407 3,751,267 31,847,771

Income (loss) from continuing operations, before income taxes and noncontrolling interests (47,539) 10,909 (436,138)

Income taxes: Current 19,423 30,793 178,192 Deferred 15,697 (15,241) 144,009 35,120 15,552 322,201

Loss from continuing operations, before noncontrolling interests (82,659) (4,643) (758,339)

Income (loss) from discontinued operations, before noncontrolling interests (13,794) 1,040,240 (126,551)

Net income (loss) before noncontrolling interests (96,453) 1,035,597 (884,890)

Less: Net income attributable to noncontrolling interests 18,180 22,341 166,789

Net income (loss) attributable to shareholders of the Company ¥ (114,633) ¥ 1,013,256 $ (1,051,679)

Per Share Data

Yen US dollars Basic net earnings per share attributable to shareholders of the Company Loss from continuing operations ¥ (207.95) ¥ (43.72) $ (1.91) Earnings (loss) from discontinued operations ¥ (28.44) ¥ 1,685.57 $ (0.26) Net earnings (loss) ¥ (236.39) ¥ 1,641.85 $ (2.17)

Cash dividends per share ¥ 20.00 ¥ 30.00 $ 0.18

Consolidated Statements of Comprehensive Income Toshiba Corporation and Consolidated Subsidiaries For the fiscal years ended March 31, 2020 and 2019

Millions of yen Thousands of US dollars 2020 2019 2020 Net income (loss) before noncontrolling interests ¥ (96,453) ¥ 1,035,597 $ (884,890)

Other comprehensive income (loss), net of tax Net unrealized gains and losses on securities (28) 40 (257) Foreign currency translation adjustments (17,265) 62,172 (158,394) Pension liability adjustments (9,213) 5,043 (84,523) Net unrealized gains and losses on derivative instruments 173 999 1,587 Total other comprehensive income (loss) (26,333) 68,254 (241,587)

Comprehensive income (loss) (122,786) 1,103,851 (1,126,477) before noncontrolling interests

Less: Comprehensive income attributable to noncontrolling interests 16,129 20,187 147,973

Comprehensive income (loss) attributable to shareholders of the Company ¥ (138,915) ¥ 1,083,664 $ (1,274,450)

Consolidated Statements of Cash Flows Toshiba Corporation and Consolidated Subsidiaries For the fiscal years ended March 31, 2020 and 2019

Millions of yen Thousands of US dollars 2020 2019 2020 Cash flows from operating activities Net income (loss) before noncontrolling interests ¥ (96,453) ¥ 1,035,597 $ (884,890) Adjustments to reconcile net income (loss) before noncontrolling interests to net cash provided by (used in) operating activities: Depreciation and amortization 79,615 78,518 730,413 Provisions for pension and severance costs, less payments (13,725) (13,031) (125,917) Deferred income taxes 15,697 (12,641) 144,009 Equity in (earnings) losses of affiliates, net of dividends 67,318 (6,608) 617,596 Loss from sales, disposal and impairment of property, plant and equipment and intangible assets, net 6,871 23,276 63,037 (Gain) loss from sales and impairment of securities, net 484 (936,386) 4,440 Changes in operating assets and liabilities: (Increase) decrease in notes, accounts receivable and contract assets 38,891 (41,935) 356,798 Increase in inventories (20,049) (65,899) (183,936) Decrease in notes and accounts payable, trade (156,220) (10,396) (1,433,211) Increase (decrease) in accrued income and other taxes 15,541 (14,111) 142,578 Increase (decrease) in advance payments received (33,582) 7,241 (308,092) Others (46,536) 81,230 (426,935) Net cash provided by (used in) operating activities (142,148) 124,855 (1,304,110) Cash flows from investing activities Proceeds from sale of property, plant and equipment and intangible assets 4,216 4,749 38,679 Proceeds from sale of securities 1,954 1,637 17,927 Acquisition of property, plant and equipment (119,267) (122,555) (1,094,193) Acquisition of intangible assets (15,901) (15,682) (145,881) Purchase of securities (3,497) (1,913) (32,083) (Increase) decrease in investments in affiliates 295 (30,381) 2,706 Proceeds from sale of Toshiba Memory Corporation stock − 1,458,289 − Others 9,686 11,290 88,863 Net cash provided by (used in) investing activities (122,514) 1,305,434 (1,123,982) Cash flows from financing activities Proceeds from long-term debt 160,910 4,605 1,476,239 Repayment of long-term debt (352,691) (198,906) (3,235,697) Decrease in short-term borrowings, net (13,377) (63,047) (122,725) Dividends paid (23,319) (22,249) (213,936) Purchase of treasury stock, net (300,886) (399,924) (2,760,422) Payments of tender offer for shares of 3 listed subsidiaries (161,373) − (1,480,486) Others 3,492 34,503 32,036 Net cash used in financing activities (687,244) (645,018) (6,304,991) Effect of exchange rate changes on cash and cash equivalents (6,641) 1,592 (60,926) Net increase (decrease) in cash and cash equivalents (958,547) 786,863 (8,794,009) Cash and cash equivalents at the beginning of the fiscal year 1,335,520 548,657 12,252,477 Cash and cash equivalents at the end of the fiscal year 376,973 1,335,520 3,458,468

Consolidated Statements of Cash Flows Toshiba Corporation and Consolidated Subsidiaries For the fiscal years ended March 31, 2020 and 2019

Supplemental disclosure of cash flow information

Millions of yen Thousands of US dollars 2020 2019 2020 Cash paid during the fiscal year: Interest ¥ 5,571 ¥ 10,383 $ 51,110 Income taxes 21,478 70,263 197,046 Sale of Toshiba Memory Corporation stock: Assets transferred (net of cash and cash equivalents) − 1,372,076 − Liabilities relinquished − 538,760 −

6-2. Industry Segment Performance

7. Data

Accounting and Board’s Skill Map markets Capital management restructuring International compliance experience Corporate Corporate Corporate Corporate

Name Current position(s) in the Diversity* business business auditing Law andLaw

Company M&A

Satoshi 〇〇〇〇〇 Chairman TSUNAKAWA 〇〇〇〇〇 Nobuaki Representative Executive Officer; KURUMATANI President and CEO 〇〇 Yuki Outside Chairperson, Compensation Director Committee; FURUTA Independent Member, Audit Committee Chairperson, Audit Committee 〇〇〇〇 Outside Junji (full-time); Director Member, Nomination OTA Independent Committee 〇〇 Nobuyuki Outside Director Member, Audit Committee KOBAYASHI Independent 〇〇〇〇 Takashi Outside Member, Nomination Director Committee; YAMAUCHI Independent Member, Audit Committee Member, Nomination 〇〇〇〇〇 Outside Yoshiaki Committee; Director Member, Compensation FUJIMORI Independent Committee 〇〇〇〇〇〇 Paul J. Outside Director BROUGH Independent 〇〇〇 Ayako Hirota Outside Director WEISSMAN Independent 〇〇〇〇〇〇 Jerome Outside Member, Compensation Director Thomas Committee BLACK Independent 〇〇〇〇〇 George Outside Raymond Director ZAGE III Independent 〇〇〇 Osamu Outside Director NAGAYAMA Independent * Diversity indicates diversity of gender, ethnicity, nationality, and other identities.

Directors Outside Directors

Osamu Nagayama Outside Director Satoshi Tsunakawa Representative Executive Officer Date of Birth: September 21, 1955 Date of Birth: April 21, 1947 April 1979 Joined the Company April 1971 Joined The Long-Term Credit Bank of Japan President & Representative Director, Toshiba June 2010 – November 1978 Joined Chugai Pharmaceutical Co., Ltd. Medical Systems Corporation (now Canon Medical June 2014 Systems Corporation) March 1985 Director, Chugai Pharmaceutical Co., Ltd. General Manager, Healthcare Business March 1987 Director, Senior Vice President, Chugai October 2013 Development Division Pharmaceutical Co., Ltd. June 2014 Executive Officer, Corporate Senior Vice President March 1989 Representative Director, Deputy President, Chugai Director, Representative Executive Officer, Vice Pharmaceutical Co., Ltd. September 2015 President September 1992 Representative Director, President and CEO, Chugai Director, Representative Executive Officer, –March 2012 Pharmaceutical Co., Ltd. June 2016 President January 2006 Enlarged Corporate Executive Committee Member, F. –March 2018 Director, Representative Executive Officer, Hoffmann-La Roche Ltd. April 2018 President and COO October 2006 Chairman, The Tokyo Biochemical Research April 2020 – –present Foundation Director, Chairman April 2009 present President, Japan Bioindustry Association –present

June 2010 Outside Director, Sony Corporation –June 2013 Nobuaki Kurumatani Representative Executive Officer March 2012 Representative Director, Chairman and CEO, Chugai Date of Birth: December 23, 1957 –March 2018 Pharmaceutical CO., Ltd Joined Mitsui Bank (now Sumitomo Mitsui June 2013 Outside Director, Chairman of the Board of Directors, April 1980 Banking Corporation) –June 2019 Sony Corporation Executive Officer, Sumitomo Mitsui Banking March 2018 Representative Director, Chairman, Chugai April 2007 Corporation –March 2020 Pharmaceutical Co., Ltd Managing Executive Officer, Sumitomo Mitsui March 2020 Senior Advisor(Honorary Chairman), Chugai January 2010 Banking Corporation –present Pharmaceutical Co., Ltd Managing Executive Officer, Sumitomo Mitsui July 2020 April 2012 Outside Director Financial Group, Inc. –present June 2012 Director, Sumitomo Mitsui Financial Group, Inc. Director and Senior Managing Executive Officer, April 2013 Outside Director Sumitomo Mitsui Banking Corporation Yuki Furuta Director and Deputy President Executive Officer, Date of Birth: April 8, 1942 April 2015 Sumitomo Mitsui Banking Corporation Deputy President Executive Officer, Sumitomo April 1969 Public Prosecutor Mitsui Financial Group, Inc. April 1993 Assistant Vice-Minister of Justice May 2017 – Chairman & Co-Representative, CVC Asia Pacific (Japan) July 1998 Chief Prosecutor, Utsunomiya District Public Prosecutors Office March 2018 Kabushiki Kaisha September 1999 Prosecutor, Supreme Public Prosecutors Office April 2018 Representative Executive Officer, Chairman and CEO Director-General of the Criminal Affairs Bureau, Director, Representative Executive Officer, Chairman December 1999 Ministry of Justice June 2018 and CEO Director of Criminal Division, Supreme Public June 2020 – Director, Representative Executive Officer, August 2002 Prosecutors Office present President and CEO September 2003 Deputy Prosecutor-General, Supreme Public – December 2004 Prosecutors Office August 2005 – April 2012 Justice of supreme court August 2012– present Registered as attorney at law September 2015 –present Outside Director

Junji Ota Outside Director Outside Director Takashi Yamauchi Date of Birth: February 21, 1948 Date of Birth: May 3, 1951 April 1971 Joined Nippon Steel Corporation April 1976 Joined Mitsui & Co., Ltd.

June 2001 Director, Nippon Steel Corporation Managing Officer and Chief Operating Officer of Iron April 2008 April 2005 Managing Director, Nippon Steel Corporation & Steel Products Business Unit, Mitsui & Co. Ltd. Audit & Supervisory Board Member (full-time), June 2008 Executive Managing Officer and Chief Operating Nippon Steel Corporation April 2010 Officer of Transportation Logistics Business Unit, Advisor (full-time), Nippon Steel Corporation Audit Mitsui & Co., Ltd. June 2012 – June 2016 & Supervisory Board Member, Nippon Steel Engineering Co., Ltd. Executive Managing Officer, Mitsui & Co., Ltd. Chief April 2011 Executive Officer, Mitsui & Co. (Asia Pacific) Pte. Ltd. June 2014 – Advisor, Nippon Steel & Sumitomo Metal June 2015 Corporation (now Nippon Steel Corporation) Senior Executive Managing Officer, Mitsui & Co., Ltd. Vice Chair (Public Member), Self-regulation Board, Chief Executive Officer, Mitsui & Co. (Asia Pacific) Pte. July 2014 Japan Securities Dealers Association April 2013 Ltd. Vice Chairman, Japan Securities Dealers Association Executive Vice President and Managing Officer, July 2016 Chair (Public Governor), Self-regulation Board Mitsui & Co., Ltd. April 2014 June 2016 – Vice Chairman, Japan Securities Dealers Association Chair Chief Executive Officer, Mitsui & Co. (Asia Pacific) Pte. June 2019 (Public Governor), Self-regulation Board Ltd. Executive Vice President and Managing Officer, June 2018 – Outside Director April 2015 present Outside Director, Heiwa Real Estate Co., Ltd. Mitsui & Co., Ltd. Full-Time Audit and Supervisory Board Member, June 2015 Mitsui & Co., Ltd. Nobuyuki Kobayashi Outside Director June 2019 - present Outside Director Date of Birth: March 22, 1950

May 1977 Registered as certified public accountant Yoshiaki Fujimori Outside Director January 1983 Joined Chuo Audit Corporation Date of Birth: July 3, 1951 June 1988 Representative Member, Chuo Audit Corporation Joined Nissho Iwai Corporation (now Sojitz April 1975 October 2000 – Manager, Investigation Department, Business Corporation) June 2006 Management Division, Chuo Audit Corporation October 1986 Joined General Electric Japan Ltd. September 2006 Joined Crowe Toyo & Co. September 1997 Vice President, General Electric Company June 2007 – Outside Audit and Supervisory Board Member, May 2001 – present Striders Corporation Senior Vice President, General Electric Company August 2011 January 2008 Representative Member, Crowe Toyo & Co. CEO, Representative Director, Chairman and October 2008 President, GE Japan Ltd. August 2014 President, Crowe Toyo & Co. March 2011 – October 2017 – June 2011 Representative Director and Chairman, GE Japan Ltd. August 2018 Advisor, Crowe Toyo & Co. Director, LIXIL Corporation March 2018 - Representative Director & President, Eishin June 2011 Director, JS Group Corp (now LIXIL Group present Partners Co., Ltd. Corporation) June 2019 - Outside Director, Imagineer Co., Ltd. Outside Director, Representative Executive Officer, present Director President and CEO, JS Group Corp (now LIXIL August 2011 Group Corporation) Representative Director, President and CEO, LIXIL Corporation Outside Director, Tokyo Electric Power Company, June 2012 – Incorporated (now Tokyo Electric Power Company June 2017 Holdings, Incorporated) Representative Director, Chairman and CEO, LIXIL January 2016 Corporation Senior Advisor, LIXIL Group Corporation Outside June 2016 - Director, Takeda Pharmaceutical Company present Limited July 2016 – Outside Director, Boston Scientific Corporation present February 2017 – Senior Executive Advisor, CVC Asia Pacific (Japan) present Kabushiki Kaisha August 2018 – Outside Director and Chairman, Oracle present Corporation Japan June 2019 - present Outside Director March 2020 - present Outside Director, Shiseido Co., Ltd.

Outside Directors Paul J. Brough Outside Director Jerry Black Outside Director Date of Birth: November 13, 1956 Date of Birth: May 29, 1959 September 1983 Joined KPMG Hong Kong July 1982 Joined Arthur Andersen & Co. October 1991 Partner, KPMG Hong Kong October 1986 Joined Ernst & Young LLP July 1995 Head of Consulting, KPMG Hong Kong January 1995 Joined Kurt Salmon Associates, Inc. Head of Financial Advisory Services, KPMG Hong October 1997 Managing Director, Global Practice Director, Kurt Kong March 2002 Salmon Associates, Inc. Asia-Pacific head of Financial Advisory Services, Managing Director, North America, Kurt Salmon KPMG Hong Kong and member of KPMG’s global January 2005 October 1999 Associates, Inc. advisory steering group President, Consumer Products Division, Kurt Joint-Liquidator of various Lehman Brothers January 2006 September 2008 Salmon Associates, Inc. entities located in Asia. President, Chief Executive Officer, Kurt Salmon April 2009 – January 2008 March 2012 Regional Senior Partner, KPMG Hong Kong Associates, Inc. September 2012 Chief Restructuring Officer, Sino-Forest March 2009 Joined Aeon Co., Ltd., Advisor – January 2013 International Corporation Executive Officer, Chief Executive of Group Strategy & IT and Chief May 2009 September 2012 Executive Officer of Asian Operation, Aeon Co., Ltd. – present Independent Non-Executive Director, GL Limited Executive Officer, Chief Executive Officer of ASEAN Business and February 2013 – March 2010 Chief Executive Officer of Group IT and Digital Chairman and CEO, Emerald Plantation Holdings Ltd. April 2015 Business, Chief Group Strategy Officer, Aeon Co., Ltd. October 2013 – Director (until May 2015) and Interim CEO (until April Senior Managing Executive Officer, Chief Group May 2015 2015), Greenheart Group Limited March 2011 Strategy Officer; Chief Executive Officer of Group IT October 2013 – Independent Non-Executive Director, Habib Bank and Digital Business, Aeon Co., Ltd. present Zurich (Hong Kong) Limited Senior Managing Executive Officer, Advisor to May 2015 – Independent Non-Executive Director, Noble Group March 2012 Group CEO; Chief Group Strategy Digital and IT Officer, Aeon Co., Ltd. May 2017 Limited January 2016 – Executive Director and Chief Restructuring Officer, Senior Managing Executive Officer, Advisor to June 2016 China Fishery Group Limited March 2013 Group CEO; Chief Strategy, Digital, IT and Marketing Officer, Aeon Co., Ltd. September 2016 Independent Non-Executive Director, Vitasoy Senior Managing Executive Officer, Merchandising – present International Holdings Limited March 2014 Strategy and Digital Shift Promotion Officer, Aeon Co., Ltd. May 2017 – February 2015 – December 2018 Executive Chairman, Noble Group Limited May 2016 Executive Officer, Digital Business, Aeon Co., Ltd. May 2017 – Independent Non-Executive Director, The March 2016 – Director, Executive Officer and Vice President of present Executive Center Limited February 2017 AEON RETAIL Co., Ltd. December 2018 – Executive Chairman, Noble Group Holdings April 2017 – October 2019 Limited present Advisor, Aeon Co., Ltd. June 2019 - present Outside Director June 2019 – present Outside Director

Ayako Hirota Weissman Outside Director George Raymond Zage III Outside Director Date of Birth: May 9, 1957 Date of Birth: January 20, 1970 January 1984 Vice President, Equitable Capital Management June 1991 Joined PriceWaterhouse Managing Director, Smith Barney, Harris Upham & January 1987 August 1992 – Vice President of Investment Banking Division, Co. Inc. (now Citigroup) February Goldman Sachs & Co October 1999 Partner, Feirstein Capital Management LLC 2000 Portfolio Manager, Kingdon Capital Management March 2000 Joined Farallon Capital Management L.L.C January 2002 LLC September 2002 Managing Director, Farallon Capital Asia Pte. Ltd Founder and Chief Executive Officer, AS Hirota January 2008 – Managing Director and CEO, Farallon Capital Asia Pte. June 2006 Capital Management LLC August 2018 Ltd Senior Vice President, Senior Portfolio Manager August 2013 – Independent Non-Executive Director, Whitehaven Coal November 2010 – and Director in charge of Asia Strategy, Horizon present Limited present Asset Management, Inc. (now Horizon Kinetics LLC) August 2016 – Commissioner (Non-Executive), PT Aplikasia Karya present June 2015 – Anak Bangsa (Go-Jek) Outside Director, SBI Holdings, Inc. June 2019 August 2018 – Founder and CEO, Tiga Investments Pte. Ltd. June 2019 – present Senior Advisor (Part time), Farallon Capital present Outside Director Management, L.L.C February 2020 – April 2019 – Commissioner (Non-Executive), PT Lippo Non-Executive Director, Nippon Active Value present Karawaci Tbk present Fund plc June 2019 - present Outside Director

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Shareholder Information

Distribution of Shareholders (Shareholding ratio by category) 2016 2017 2018 2019 2020 ■ Individuals and others in Japan 38.2 % 31.4 % 15.9 % 16.8 % 20.2 % ■ Overseas investors 28.4 38.2 72.3 69.8 62.6 ■ Companies in Japan 3.2 2.9 1.5 1.7 1.8 ■ Securities companies in Japan 1.2 1.7 1.1 1.6 1.9 ■ Financial institutions in Japan 29.0 25.8 9.2 10.1 13.4

Note: For the purpose of calculation of shareholding ratio, treasury shares are excluded from the total number of issued shares.

(%) 100 15.9 16.8 Financial institutions in Japan 13.4% 38.2 31.4 80 Individuals and others in Securities Japan companies in 60 20.2% Japan 28.4 38.2 72.3 69.8 1.9% 40 Companies in Japan 3.2 2.9 1.8% 1.2 1.7

1.7 29.0 25.8 1.5 2 1.1 1.6 9.2 10.1 ’16/3 ’17/3 ’18/3 ’19/3 ’20/3 Overseas investors 0 62.6%

Major Shareholders (As of May 15, 2020) Name of Shareholder Shareholding ratio (Percentage)

GOLDMAN, SACHS & CO. REG 7.4% SMP PARTNERS (CAYMAN) LIMITED AS TRUSTEE OF ECM MASTER FUND 7.1 GOLDMAN SACHS INTERNATIONAL 4.5 CHINOOK HOLDINGS LTD 3.4 3D OPPORTUNITY MASTER FUND 2.6 The Dai-ichi Life Insurance Company, Limited 2.5 Nippon Life Insurance Company 2.4 Toshiba Employees Shareholding Association 2.1 THE CHASE MANHATTAN BANK. N.A. LONDON SPECIAL ACCOUNT NO.1 1.9 JP MORGAN CHASE BANK 385765 1.7 Notes: 1. For the purpose of calculation of shareholding ratio in the above table of principalshareholders, treasury shares are excluded from total number of issued shares(denominator). 2. The change report on large-volume holdings offered for public inspection on June 1, 2018notes that, as of June 1, 2018, Farallon Capital Management L.L.C. and CHINOOKHOLDINGS LTD jointly hold 350,398K shares (ratio of stock certificates, etc. held:5.37%) as shown below. As the Company cannot confirm the beneficial ownership ornumber of shares held by Farallon Capital Management L.L.C. and CHINOOKHOLDINGS LTD as of May 15, 2020, Farallon Capital Management L.L.C. is not includedin the above table and data for CHINOOK HOLDINGS LTD stated in the above table isbased on the details of the shareholder registry. The number of shares referred to in this note is the number of shares prior to share consolidation in October 2018.

Name of Number of stock certificates, etc., held (in Ratio of stock certificates, etc., held company thousands) (percentage) Farallon Capital Management, L.L.C. 138,475 2.12 CHINOOK HOLDINGS LTD 211,923 3.25 Total 350,398 5.37 3. The change report on large-volume holdings offered for public inspection on December 19,2018 notes that Effissimo Capital Management Pte Ltd. held 73,718K shares as ofDecember 14, 2018 (ratio of stock certificates, etc. held: 11.30%). However, as theCompany was unable to confirm the beneficial ownership or number of shares held as ofMay 15, 2020, Effissimo Capital Management Pte Ltd. is not included in the above table.In addition, the change report on large-volume holdings offered for public inspection onMay 25, 2020 notes that Effissimo Capital Management Pte Ltd. held 69,868K shares as ofMay 19, 2020 (ratio of stock certificates, etc. held: 15.36%). However, as the Companywas unable to confirm. 4. The change report on large-volume holdings offered for public inspection on April 10, 2020notes that King Street Capital Management, L.P. held 18,608K shares as of April 3, 2020(ratio of stock certificates, etc. held: 4.09%). However, as the Company was unable to confirm the beneficial ownership or number of shares held as of May 15, 2020, King Street Capital Management, L.P. is not included in the above table.

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Consolidated Subsidiaries and Affiliated Companies Accounted for by the Equity Method

Consolidated Subsidiaries Domestic • Japan Semiconductor Corporation • Toshiba Elevator and Building • Toshiba IT-Services Corporation • Kaga Toshiba Electronics Systems Corporation • Toshiba Lighting & Technology Corporation • Corporation Toshiba Energy Systems & • Toshiba Logistics Corporation Solutions Corporation • Nishishiba Electric Co., Ltd. • Toshiba Plant Systems & Services Corporation* • Toshiba Global Commerce Solutions • Nuclear Fuel Industries, Ltd. Holdings Corporation • Toshiba Tec Corporation* • NuFlare Technology, Inc. • Toshiba Industrial Products and • Toshiba Tec Solution Service Corporation • Toshiba Carrier Corporation Systems Corporation • Sigma Power Ariake Corporation • Toshiba Electronic Devices & • Toshiba Infrastructure Systems & Storage Corporation Solutions Corporation 127 companies in total including the 20 above • Toshiba Digital Solutions Corporation * Listed Company in stock market

Overseas • Concert LLC • Toshiba Europe GmbH • Toshiba Semiconductor (Thailand) Co., Ltd. • TCFG Compressor (Thailand) Co., Ltd. • Toshiba Gulf FZE • Toshiba Tec Europe Imaging Systems S.A. • Toshiba America Business Solutions, Inc. • Toshiba Hydro Power (Hangzhou) Co., • Toshiba Tec France Imaging Systems S.A. • Toshiba America Electronic Components, Ltd. • Toshiba Tec Information Systems Inc. • Toshiba Industrial Products Asia Co., Ltd. (Shenzhen) Co., Ltd. • Toshiba America, Inc. • Toshiba Information Equipment • Toshiba Tec Singapore Pte., Ltd. • Toshiba Asia Pacific Pte., Ltd. (Philippines), Inc. • Toshiba Tec U.K. Imaging Systems Ltd. • • Toshiba Carrier Air Conditioning (China) Toshiba Information Systems (UK) Ltd. • Toshiba Transmission & Distribution Co., Ltd. • Toshiba International Corporation Systems Asia Sdn. Bhd. • Toshiba Carrier (Thailand) Co., Ltd. • Toshiba International Procurement • Toshiba Transmission & Distribution Systems (India) Private Ltd. • Toshiba (China) Co., Ltd. Hong Kong, Ltd. • • TPSC (India) Private Ltd. • Toshiba Dalian Co., Ltd. Toshiba JSW Power Systems Private Ltd. • • TPSC (Thailand) Co., Ltd. • Toshiba Electronics Europe GmbH Toshiba Lighting & Technology (Kunshan) Co., Ltd. • Toshiba Electronics Taiwan Corporation 218 companies in total including the 34 • Toshiba Europe Ltd. • Toshiba Elevator (China) Co., Ltd. above

Affiliated Companies Accounted for by the Equity Method Domestic • EREX New Energy Saiki Co., • Kioxia Holdings Corporation 44 companies in total including the 4 Ltd. • Toshiba Mitsubishi Electric Industrial above • Kioxia Corporation Systems Corporation

Overseas • Changzhou Toshiba Transformer Co., • GD Midea Group Wuhan Air- 77 companies in total including the 19 Ltd. Conditioning Equipment Co., Ltd. above • Dalian Toshiba Locomotive • GD Midea Group Wuhu Air- (As of March 31, 2020) Electric Equipment Co., Ltd. Conditioning Equipment Co., Ltd. • Energy Asia Holdings, Ltd. • Guangdong Meizhi Compressor Ltd. • GE Toshiba Turbine Components de • Mexico Guangdong Meizhi Precision Manufacturing Co., Ltd. S.R.L. de C.V. • GD Midea Air-Conditioning • Henan Pinggao Toshiba High-Voltage Equipment Co., Ltd. Switchgear Co., Ltd.

• GD Midea Commercial Air- • SMTT Holding B.V. Conditioning Equipment Co., Ltd.

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Delivery Track record in Energy Business

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