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## Improvement of the financial structure 

Q: There is some concern about a weakening of Toshiba’s financial structure. What measures is Toshiba tak- ing in this area? 

A: Toshiba is focused on reducing debt and improving the debt- to-equity ratio. Unfortunately, our performance in the harsh busi- ness conditions of fiscal 2001, plus heavy restructuring charges, resulted in a sharp drop in shareholders’ equity. Although we minimized the rise in debt, thanks to moves to improve asset efficiency and advance our Asset Light asset-reduction program through our 01 Action Plan, the debt-to-equity ratio rose to 258%, due to the decline in shareholders’ equity. If we exclude debt held by Toshiba Group financial companies, that ratio was still 191%. In these circumstances, Toshiba has to bolster its finan- cial structure by generating cash flows. That means moves to strengthen profitability and to further reduce assets. We expect that the measures we are taking under the 01 Action Plan will allow Toshiba to reduce debt from fiscal 2002 on, to improve the debt-to-equity ratio, and also raise our credibility in global capital markets. 

