March 11, 2003 – Tokyo, Japan – Under Toshiba Corp.’s three-year management program, it plans to focus its management resources on three businesses: digital equipment, electronic devices, and social infrastructure. Additionally, Toshiba is set to spin off its home electronics division.

Under the medium-term plan, the company plans to spend $7.2 billion (840 billion yen) on plants and equipment and some $9.4 billion (1.1 trillion yen) on R&D activities, with three-fourths of such spending to be allocated to the growth businesses. It aims to rank in the global top three in each business, reported the Nihon Keizai Shimbun.

Meanwhile, Toshiba will set up a new company with a marketing function on October 1 for big-ticket items. The company’s home electronics division, Toshiba Lighting & Technology Corp., and Toshiba Carrier Corp., which turns out air conditioners, will come under the wing of the new firm. The new company will try to expand its market shares in China and elsewhere through comprehensive strategies.

The spin off is aimed at boosting management efficiency by consolidating closely related businesses. About 750 billion yen, or just over 20% of parent-only sales, will be subject to the spin off, said President Tadashi Okamura.

The medium-term plan does not include major business withdrawals or job cuts. Though expenses related to restructuring are projected at 20 billion yen a year from now, there are no plans for large-scale withdrawal at present, said Okamura.

Asked about future personnel reductions, he said he would accomplish the goal of slashing 10% of group jobs, which was set in 2001, by the end of March, one year ahead of schedule. We will maintain 170,000 employees after achieving that goal.