【正文】 inventory – Ancillary hotline Toshiba Toshiba SH OEM Toshiba Toshiba SH Dealers Digital China Source: interview 30 SEC China010821BJToshiba TOSHIBA HAS POSITIONED CHINA AS A KEY RD BASE * The other two RD centers are in the UK and the US respectively Source: Literature research ? Threelayer structure of Toshiba RD –First layer focusing on technology trends in the next 35 years –Second layer focusing on multimedia technology and technology trends in the next 23 years –Third layer focusing on product development ? Toshiba RD in China –Established RD department in Beijing, April 2023 –Plan to develop it into Toshiba (China) RD center” in October 2023 which will be the third overseas RD center of Toshiba –Plan to have 250 people this year and expand to 500 people in RD center in 2023 RD 31 SEC China010821BJToshiba TOSHIBA HAS OUTSOURCED THE MAJOR PART OF NOTEBOOK MANUFACTURING AND ITS DISTRIBUTOR IS CAPABLE OF CUSTOMIZATION IN CONFIGURATION Source: Literature research, interview Manufacturing Parties involved Responsibilities Toshiba SH ? Assembling production to cover total volume sold in China ? Assembling production for expert OEM (Renbao) ? Major part of notebook manufacturing Digital China ? Customization for bigbatch order according to customers39。s KEY TV PRODUCT OFFERINGS Color TVs (inch, model no.) ? Projection TV Series: 43’ – 61’ – 61D9UXC – 50D9UXC – 43D9UXC – 50D8UXC – 43D8UXC Source: Company website, Lit search ? CRT TV Series: 21’ – 29’ – 29D2DC – 29D2XC – 25D2XC – 25E3DC3 – 21D2NC ? Flat TV Series: 21’ – 34’ – 34D8UXC – 34D6DC – 29D8UXC – 29D6DC – 29D3XC – 25D6XC – 21AF6C 20 SEC China010821BJToshiba DALIAN TOSHIBA’S MARKET POSITION IN CHINA’S CONVENTIONAL CRT TV MARKET: NO. 5 MARKET SHARE LEADER Market share by sales, % Source: GFK, McKinsey Analysis, External interviews: Konka, Sony, Toshiba 9 . 7 1 1 . 79 . 69 . 37 . 4 7 . 57 . 07 . 37 . 0 5 . 76 . 65 . 04 . 24 . 94 . 23 . 94 . 04 . 63 . 0 3 . 32 . 2 2 . 22 . 0 2 . 41 3 . 01 3 . 71 1 . 21 0 . 96 . 46 . 3 %1999 2023 Others 100% 100% Key trends Rationale ? Industry undergoes further consolidation ? Foreign players lose market share to local players ? Top five players in the market –Changhong, TCl, Konka, Hisense, Skyworth,controlled % of the market in 1999 grew to % in 2023 ? Local players increased market share from 65% in 1999 to ~67% in 2023 Rowa LG Panda Jinxing SkyworthRGB Xoceco Philips Haier Panasonic Hisense Toshiba TCL Changhong Konka Sony 21 SEC China010821BJToshiba DALIAN TOSHIBA’S MARKET POSITION IN CHINA’S PJTV MARKET: NO. 1 MARKET SHARE LEADER Source: GFK, internal interview, literature search, external interviews: Sony, Panasonic, Toshiba Key trends Rationale ? Established MNCs, Toshiba, Sony will continue to dominate market ? Local players start establishing themselves by 2023 ? Highend producers with superior technology in pixel resolution and brightness ? Local players expected to acquire key PJTV technologies as of 2023 ? As parison, Changhong alone now controls ~ 20% of large screen CRTV market, local players likely to gain similar share in PJTV market Market share by sales Percent Local (Konka Changhong, etc) Other MNCs Hitachi Panasonic Samsung Sony Toshiba 1999 2023 100% 35323332710151461~5~3~4 ~3100% 22 SEC China010821BJToshiba PJTV PLAYERS’ STRENGTHS AND WEAKNESSES Company Strengths/weaknesses Toshiba ? Strong brand name ? Aggressive sales and marketing Sony ? No. 1 brand name ? Premium market with highest industry profits Samsung ? Strong quality in resolution and brightness ? Solid position in the market ? Comparable technology with Japanese counterparts Other MNCs: Panasonic, Philips, etc. ? Possess the technology, but yet to establish themselves in market Local panies: TCL, Konka, Hinsense, Haier, Changhong ? Lack the key technologies for PJTV ponents – tubes and screen ? Lowend brand have resulted in low sales volume ? Will fill up the technology gap by about 2023 Source: Lit search, McKinsey analysis 23 SEC China010821BJToshiba TOSHIBA HAS A FULLLINE PROUCT OFFERING IN NOTEBOOK, COVERING LOWEND TO PREMIUM SEGMENT Source: Literature research Key product offerings ? Satellite Series 2800 (, , ) ? Portege Series (7220CT, 3480CT, 3490CT) ? Tecra Series (8100H, 8000J, 8200) ? Satellite 1750 () ? New satellite 2800 (, ,) ? Satellite Pro 4600 (, , ) ? New Satellite Pro 4600 () ? Satellite 3000 () Source: literature research 24 SEC China010821BJToshiba TOSHIBA IS STRONG IN EDUCATION, LARGE AND MEDIUM BUSINESS, BUT PARTICULARLY WEAK IN GOVERNMENT Source: IDC 1 7 . 83 1 . 42 3 . 52 8 . 82 7 . 42 2 . 28 . 41 0 . 98 . 44 . 85 . 5Small office Home 100% = Toshiba Market average 73 484 Education Government Large business Small business Medium business Sales by customer segments Percent of units shipment (000s), 2023 25 SEC China010821BJToshiba TOSHIBA IS GENERALLY A MEDIUM TO HIGHEND PLAYER, PARTICULARLY STRONG IN USD PRICE BRAND Source: IDC 4 8 . 82 2 . 71 2 . 1 1 0 . 41 1 . 15 6 . 51 3 . 32 4 . 51 6 . 1 1 0 .