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it's time. May I start the presentation, uh, on transforming Toshiba to enhance shareholders' value, and FY21 second quarter consolidated business results. We are organized this presentation session on online basis. From four to five o'clock, we will be presenting from our side, and followed by 30 minutes questions session for the mend- uh, the media. The questions from allies and the investors will be accepted from 5:30 to six o'clock Japan time. Please be aware of that. Now, we will be collecting questions via telephone conferencing system. As is informed to you beforehand, the conference call system, uh, will require the pre-registration beforehand. Let me introduce the presenters today. President and CEO, Satoshi Tsunakawa. Corporate Senior Executive Vice President, Mamoru Hatazawa. Representative Executive Officer, Corporate Executive Vice President and CFO, Masayoshi Hirata. We have, uh, Chairperson of the Strategic Review Committee Outside Director, uh, Paul Brough. He is joining from Hong Kong, uh, on- online. My name is Hara of Communications, Corporate Communication Department. We are providing simultaneous translation. So if you are watching the live, uh, str- streaming in Japanese, you will be able to hear translation's voice. Please be aware of that. First, before going into transforming Toshiba to enhance shareholders' value. May I have Mister Tsunaka to say a few words, uh, upon the receipt of the report from Governance Enhancement Committee today. Mr Tsunakawa, please. Now, first of all, uh, I would like to say a few words on behalf of the, uh, the company, uh, upon the report of the Governor Enhancement Committee. First off, I would like to express profound appreciation to the members of the Governor Enhancement Committee, uh, who have made tremendous efforts and time since their appointment to investigate the root cause of the issue, uh, raised in the investigation report, clarify where the responsibility lies, and compile recommendations for formulating the measures to prevent recurrence. I recognize that the Toshiba's Governance Enhancement Committee, based on the strong belief that restructuring of the governance is essential for the revival of the Toshiba, has compiled report for our future. In fact, no issue of illegality was, uh, discovered, um, according to the report of the Governor Enhancement Committee. Having said that though, I feel as a part of the senior management of the company, I am extremely ashamed and embarrassed that the, um, the, uh, senior members of the company, uh, and their actions, uh, was concluded that an act, uh, as a whole, uh, violates the corporate ethics demanded by the market. We have just received a final report of the Governance Enhance Committee that, uh, we will continue to discuss the governance seriously within the company based on the contents of the report, including recommendations for the formulation of the recurrence prevention measures. We believe that this recurrence prevention measures will form the very first step to restore the trust of the shareholders who have, which have been restored so far. Now one of the group's philosophy is, uh, doing the right think. Uh, many employees on the front lines of the operations are working, uh, day to day, uh, based on this value. On the other hand, I believe that, uh, some of the members of the senior management were acted, uh, quite, uh, differently from this mostly, and that should be, uh, sincerely remorsed over. The corporate management is established based on the trust relationship with all stakeholders. The Governance Assessment Committee also pointed out that the importance of top <inaudible> and organizational leaders demonstrating their commitment to value, ethics and integrity. Until now, um, the culture to recognize the mistakes and the very, uh, good communication so that, uh, anyone can raise opinions escalated, uh, just to the higher level. But also, uh, we need to ensure the psychological safety of all employees. Uh, we will make, um, strict, uh, persistent efforts in this regard. As I will announce today, our group decided to separate the energy infrastructure business and storage device businesses. There will be a f- uh, the separate companies, and aim for the IPOs are set independently. This is a drastic change, but because this business will be separated and being independent, and therefore, uh, the, um, committed to people and committed to the future based on this philosophy. Under the new, uh, corporate culture, each business is poised to grow, uh, and this is a great opportunity. But beforehand, uh, it is a critical, uh, mission of the senior management to enhance governance beforehand. I appreciate your continued support and asking for your cooperation. Thank you very much. Next, we'd like to, uh, present on the transforming Toshiba to enhance our shareholders' value. And, uh, Mr. Tsunakawa will m- make presentations. Next, I would like to explain on our new management policy titled as Transforming Toshiba to Enhance Shareholders' Value. Uh, the, uh, Corporate Executive Vice, uh, President Hatazawa will also, uh, be, uh, uh, presenting. And also on online, uh, Chairperson of Strategic Review Committee, Mr. J- Paul, uh, will also be attending as well. Now, uh, to- today, Toshiba Group has decided on its significant transformation to further leap forward for the future. Let me first introduce why this is the best path forward for Toshiba, uh, and our shareholders, and what it, what it means for our business going forward. And then we would like to invite Mr. Brough to explain on the evaluation made by the Strategic Review Committee. After that, Mr. Hataza will talk on what the business outlook will be for the standalone companies after separation. First, uh, about, uh, our path to unlocking the value, uh, that I'd like to explain. Now, at the Board of Director meeting held this morning, decision was made for Toshiba's strategic reorganization to separate the business into two businesses. As a result, uh, there will be three standalone companies to be, um, formulated. One an infrastructure service company, second is device company, and the third is Toshiba. As we concluded this strategic reorganization to be the best path forward for Toshiba and their stakeholders, we took into account the view of our important shareholder, stake- shareholders and other casto- stakeholders, as well as the business characteristics and the value chain of, uh, each of our diverse businesses. Over our history of over 140 years, Toshiba has constantly evolved to stay ahead of the times. Today's announcement is no different. Toshiba has built a portfolio of leading the businesses. But in order to enhance our competitive positioning, each business needs greater flexibility to address its own market opportunities and challenges. The official names for the new companies will be announced in due course. Here is an overview of the three independent businesses. Infrastructure service company will, uh, consist of Toshiba energy systems and solutions, infrastructure systems and solutions, building solutions, digital solutions, and battery businesses, and become a company with the forecasted net sales of 2.1 trillion yen, according to this fiscal year's forecast. Its increased focus, combined with its innovative technological solutions, will enable it to play a leading role in driving the transition to renewable energy, to meet ambitious global carbon neutrality goals, and advancing infrastructure resilience as a leading player. Device company will com- be comprised of To- Toshiba electric device and storage solutions business, and become a company with forecasted net sales of 870 billion yen. Its products will be including power, semiconductors, high-capacity hard disk drives, HDD for data centers, and semiconductor-manufacturing equipment. It will be a global leader in supporting the evolution of social and IT infrastructure. Toshiba will continue to hold the company's on- ownership stake in Kioxia Holding Corporation and Toshiba Tec Corporation. Co- Toshiba will seek to monetize the share of Kioxia at an appropriate timing. The separation this time enables us to better align each new companies by its unique business characteristics. Infrastructure service company relate, um, business focus on the direct sale of equipment and the provision of solutions to specific customers. It has long business cycles that are more heavily dependent on negotiations between business parties than the market conditions at large. In addition, it will be a capital-light business and there are also major differences in, to the extent in which we conduct customized production. In contrast, device company primarily manufacturers and sells devices such as semiconductor's and other materials. Its business cycles are shorter and can be impacted significantly by the market conditions. It will be a capital-intensive business that requires scale of a continuous production across multiple customer orders. And relatively.","model":"openai_whisper-large-v3-v20240930_626MB","date":"2024-10-30T17:12:40Z","timeElapsedInSeconds":36.03290605545044,"datasetRepo":"argmaxinc\/whisperkit-test-data","wer":0.07778989458378771,"modelSizeMB":597,"prediction":"Now, it's time. May I start the presentation on transforming Toshiba to enhance shareholders' value and FY21 second quarter consolidated business results. We are organizing this presentation session on an online basis. From 4 to 5 o'clock, we will be presenting from our side and followed by 30 minutes question session for the media. The questions from analysts and investors will be accepted from 5:30 to 6:00 Japan time. Please be aware of that. Now, we will be collecting questions via telephone conferencing system. As is informed to you beforehand, the conference call system will require the pre-registration beforehand. Let me introduce the presenter today. President and CEO Satoshi Tsunakawa. Corporate Senior Executive Vice President Mamoru Hatazawa. Representative Executive Officer, Corporate Executive Vice President and CFO Masayoshi Hirata. We have a chairperson of the strategic review committee outside director, Paul Broff, who is joining from Hong Kong online. My name is Hara of Communications, Corporate Communication Department. We are providing simultaneous transition, so if you are watching the live streaming in Japanese, you will be able to hear translation's voice. Please be aware of that. First, before going into transforming Toshiba to enhance Shihara's value, may I have Mr. Tanaka to say a few words upon the receipt of the report from Governance Enhancement Committee today. Mr. Tanaka, please. Now, first of all, I'd like to say a few words on behalf of the company upon the report of the Governor and Senesman Committee. First off, I'd like to express profound appreciation to the members of the Governor and Senesman Committee, who have made tremendous efforts and time since their appointment to investigate the root cause of the issue raised in the investigation report, clarify where the responsibility lies and compile recommendations for formulating the measures of recurrence. I recognize that Toshiba's Governance Enhancement Committee, based on the strong belief that restructuring of the governance is essential for the revival of the Toshiba, has compiled a report for our future. In fact, no issue of illegality was discovered, according to the report of the Government Enhancement Committee. Having said that, though, I feel as a part of the senior management of the company, I am extremely ashamed and embarrassed that the government, The senior members of the company and their actions was concluded that an act as a whole violates the corporate ethics demanded by the market. We have just received a final report of the governance enhanced committee, but we will continue to discuss the governance seriously within the company based on the contents of the report, including recommendations for the formulation of the recurrence provincial medias. We believe that this recurrence provincial measures will form the very first step to restore the trust of the shareholders, which has been restored so far. Now, one of the group's philosophy is doing the right thing. Many employees on the front lines of operations are working day to day based on this value. On the other hand, I believe that some of the members of the senior management were acted quite differently from this policy and that should be sincerely remorsed over. The corporate management is established based on the trust relationship with all stakeholders. The Governor Assessment Committee also pointed out that the importance of top at the tone and organizational leaders demonstrating their commitment to value, ethics, and integrity. Until now, the culture to recognize the mistakes and the very good communication so that anyone can raise opinions escalated to a higher level. But also, we need to ensure the psychological safety of all employees. We will make persistent efforts in this regard. As I will announce today, our group... decided to separate the energy infrastructure business and storage device business sets. They will be separate companies and aim for the IPOs independently. This is a drastic change, but because these businesses will be separated and being independent, and therefore – the committed to people and committed to the future. Based on this philosophy, under the new corporate culture, each business is poised to grow, and this is a great opportunity. But beforehand, it is a critical mission of the senior management to enhance governance beforehand. I appreciate your continued support and asking for your cooperation. Thank you very much. Next, we'd like to present on the transforming Toshiba to enhance a shareholder's value, and Mr. Tonakawa will make presentations. Next, I'd like to explain... On our new management policy titled Transforming Toshiba to Enhanced Children's Value, the Corporate Executive Vice President Hatazawa will also be presenting and also online, Chairperson of Strategic Review Committee, Mr. Paul, will also be attending as well. Now, today, Toshiba Group has decided on its significant transformation to further leap forward for the future. Let me first introduce why this is the best path forward for Toshiba and our shareholders and what it means for our business going forward. And then we would like to invite Mr. Broff to explain on the evaluation made by the Strategy Review Committee. After that, Mr. Hadza will talk on what the business outlook will be for the standalone companies after separation. First, about our path to unlocking the value that I'd like to explain. Now, at the board of the election meeting held this morning, the decision was made for Toshiba's strategic reorganization to separate the business into two businesses. As a result, there will be three standalone companies to be formulated. One is infrastructure service company, second is device company, and the third is Toshiba. As we conclude this strategic reorganization to be the best path forward for Toshiba and their stakeholders, we took into account the view of our important stakeholders and other stakeholders, as well as the business characteristics and the value chain of each of our diverse businesses. Over our history of over 140 years, Toshiba has constantly evolved to stay ahead of the times. Today's announcement is no different. Toshiba has built a portfolio of leading businesses, but in order to enhance our competitive positioning, each business needs greater flexibility to address its own market opportunities and challenges. The official names for the new companies will be announced in due course. Here is an overview of the three independent businesses. Infrastructure service company consist of Toshiba Energy Systems and Solutions, Infrastructure Systems and Solutions, Building Solutions, Digital Solutions, and Battery Businesses. and become accompanied with the forecasted net sales of 2.13 yen according to this fiscal year's forecast. Its increased focus combined with its innovative technological solutions will enable it to play a leading role in driving the transition to renewable energy to meet ambitious global carbon neutrality goals and advancing infrastructure resilience as a leading player. Device Company will be comprised of the Toshiba electric device and storage solutions business and become a company with forecasted net sales of 870 billion yen. Its products will be including power semiconductors, high-capacity hard disk drives, HDD for data centers, and semiconductor manufacturing equipment. It will be a global leader in supporting the evolution of social and IT infrastructure. Toshiba will continue to hold the company's ownership stake in Kyokushia Holding Corporation and Toshiba Tech Corporation. Ko Toshiba will seek to monetize the share of Kyokushia at an appropriate timing. Thank you. The separation this time enables us to better align each new company by its unique business characteristics. Infrastructure service company relates business focus on the direct sale of equipment and the provision of solutions to specific customers. It has long business cycles that are more heavily dependent on negotiations between business parties than the market conditions at large. In addition, it will be a capital-light business, and there are also major differences to the extent in which we conduct customized production. In contrast, device company primarily manufactures and sells devices such as semiconductors and other materials. Its business cycles are shorter and can be impacted significantly by the market conditions. It will be a capital-intensive business that requires scale of continuous production across multiple customer orders and relatively 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