1 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. 2 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 3 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 what's easy. A planet that's safer and cleaner. 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. 4 5 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+ 6 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. 7 A Global Footprint 8 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 resold though channels, completion of PC business operating income by 95.1 billion yen to 130.5 billion yen. 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. Free cash flows decreased by 1,695.0 billion yen to -264.7 R&D expenditures were 158.9 billion yen, 5% lower than 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.