Toshiba Tec (6588) Investor presentation summary

Review of FY2021–2025 performance

• Operating profit reached 14.3B yen in FY2025 despite a significant U.S. tariff impact of ▲11.4B yen, with a focus on strengthening core profitability and investing for growth.

• Key initiatives included the transfer of the inkjet head business, establishment of ETRIA and TTTeC-Creation, and opening of innovation centers.

• Second-half FY2025 operating profit improved by 4.6B yen year-over-year, reflecting successful profitability initiatives.

FY2026–2028 management policy and transformation

• Strategic shift to high-value-added solutions, expanding partnerships and recurring business, and targeting a company-wide operating profit margin of 10% by FY2030.

• Emphasis on business model transformation, leveraging AI and digitalization to address labor shortages and sustainability.

• Strengthening management structure with a CEO/COO model to accelerate execution and accountability.

Financial targets and resource allocation

• FY2028 targets: 6.6% operating profit margin, 16% ROIC, and 19B yen in free cash flow.

• Domestic retail business aims for a 10% operating margin by FY2028; overseas retail and workplace businesses also target steady margin improvements.

• Cash flow generation will support growth investments, asset-light operations, and a payout ratio of around 30%.