TOSHIBA CORPORATION

Group Members
Farheen Mehdi 16L-6226
Maryam Malik 16L-6202
Anas Adnan 16L-6244
Rida Zainab 16L-
 History
1873 1890 1891 1931 1932 1939 1940 1956

First steps Growth, Integrated Major

taken toward disaster and electrical government
creation of reconstruction equipment supplier during
Toshiba manufacturer the war; exports
formed from to Southeast
merger of Asia begin in
Shibaura postwar period
Engineering
Works (heavy
electrical
machinery) and
Tokyo Electric
Company (small
electrical
equipment)
1957 1972 1973 1983 1984 1999 Since 2000

Revitalization Technical Name Creating

of capabilities changed to World's First
management reinforced to Toshiba; in- and World's
and business realize house No. 1
structures consistent company products and
paves way for growth system services to
overseas promotes prevail amid
expansion swifter global
decision- competition
making and become
an even
stronger
global
contender
 Company Name TOSHIBA CORPORATION

Founded July 1875

Common Stock 200,000 million (As of July 31, 2016)

Total Assets 5,433.3 billion (US$ 48,082.7 million)

Net Sales 5,668.7 billion (US$ 50,165.4 million)

Fiscal Year April 1 to March 31

Number of Employees 187,809

Number of Shares issued 4,237,600,000 shares

Number of Shareholders 437,466

Stock Exchange Listings Japan : Tokyo and Nagoya

 Introduction
Founded in 1938 under a different name, Tokyo Shibaura Electric K.K
Sells communication equipment systems, consumer electronics, power systems,
household appliances, and a laundry list more of others
It is the second largest chip maker in the world, behind Samsung
memory chips from Toshiba are found in a number of products, from smartphones
to PCs to data centers
Today Toshiba is a very diverse conglomerate, and these latest problems stem
from its nuclear services business which brings in about a third of its revenue
 Toshiba's Current On-going Challenge
Toshiba had initially alerted investors in December 2016 to the fact that it
faced a heavy one-off loss linked to a deal done by its US nuclear
subsidiary, Westinghouse Electric.

Westinghouse bought a nuclear construction and services business from

Chicago Bridge & Iron (CB&I) in 2015. But assets that it took on are likely
to be worth less than initially thought, and there is also a dispute about
payments that are due.

Toshiba has also reported "inefficiencies" in the labor force at CB&I, along
with other factors driving up costs.
 Impact of the challenge
By February the loss emerged about $6.3bn (5.05bn)

Shares are down by more than 50% since mid-December 2016

Toshiba's chairman resigned, the firm delayed releasing its full financial
figures - initially for a month - and then even longer.

And its US nuclear business Westinghouse has filed for Chapter 11

bankruptcy - which temporarily shelters struggling firms as they try to
restructure their affairs and outstanding debts.
 How The Company Responded
To plug the gap, Toshiba is set to sell a majority stake in its flash-memory
business to get it through its ongoing financial turbulence.
Toshiba hopes its savior will be another major part of its business, the unit that
makes memory chips for smartphones and computers, which has been valued
at between $9bn and $13bn.
On 27 January, Toshiba announced it would split off this part of the
businessfrom the rest of the company - with plans to sell a slice of it to raise
much-needed funds to help offset the losses in the nuclear division.
Toshiba took the unusual step of reporting third-quarter earnings without
approval from its auditors. Toshiba said losses last year had left it with
negative shareholders equity of 225.6 billion yen at the end of December
It did however release earnings guidance and unaudited numbers, with the
promise of audited figures in a month.
 Impact Of Company's Actions
This further jeopardized Toshibas listing on the Tokyo Stock Exchange

Shares have fallen for a reason: investors selling up because of the unease they feel
about the position the company is in. That uncertainty saw ratings agencies cut their
ratings on Toshiba's credit, making it more expensive for the firm to borrow money.

A lower share price also reduces the amount of new funds that can be raised by
selling shares. So if it needs to raise funds, that means going to the banks for support
or, as we are seeing, selling off parts of the business.

And clearly for investors who've held on to Toshiba shares, they are now worth
markedly less than they were before Christmas

In addition, Toshiba is still struggling to recover after it emerged in 2015 that profits
had been overstated for seven years, prompting the chief executive to resign.
Recommendations

http://www.bbc.com/news/business-38456275

https://www.bloomberg.com/news/articles/2017-04-14/apple-said-to-consider-helping-toshiba-with-chip-unit-investment

The iPhone maker is actively looking at options for helping the troubled Japanese
company by investing in its semiconductor unit

Apple is considering a range of options from partnering with Taiwans

Hon Hai Precision Industry Co. to joining with Japanese investors on a bid

The Development Bank of Japan has been talked about as one potential investor.
Industry rivals including Canon and Western Digital are also thought to be eyeing
a bid, and another potential buyer could be South Korea firm, SK Hynix.

Apple could take a minority stake in the chip business with Japanese finance
firms, as well as working with Hon Hai or SoftBank
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