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Toshiba Subsidiaries to Implement Personnel Measures Including Early Retirement Incentive Programs

Press Release   •   Jan 12, 2018 09:45 GMT

TOKYO—Toshiba Corporation (TOKYO: 6502) today announced that Toshiba Infrastructure Systems & Solutions Corporation (TISS) and Toshiba Energy Systems & Solutions Corporation (ESS), consolidated subsidiaries that respectively promote social infrastructure and energy systems businesses, have decided to implement personnel reallocation and early retirement incentive programs with support for outplacement.

1. Reasons for Implementation
TISS operates social & industrial infrastructure and building facilities businesses, and strives to improve profitability and achieve continued growth by promoting current business through a spiral lifecycle strategy of product upgrades and improvements, and by exploring new business domains through technology development and overseas expansion. In support of these goals, TISS has decided to reinforce divisions that require strengthening and to reduce fixed expenses in indirect divisions through reallocation of human resources. Implementation of the program will strengthen TISS’s business structure.

In Japan and overseas, ESS contributes to the realization of stable power supply through its businesses in nuclear, thermal, and hydro power generation systems, and in transmission & distribution systems. As it seeks to enhance profitability and secure continued growth, ESS draws on extensive know-how and experience and IoT technologies cultivated in current businesses to provide products and services offering high added value. ESS is also strengthening its business structure by optimizing its corporate staff function and allocating appropriate human resources to each business unit, and toward this has decided to streamline its headcount by implementing the personnel reallocation and early retirement incentive program.

2. Outline of Early Retirement Incentive Programs
Both programs will be open to candidates in corporate staff functions aged 50 and above, and are expected to cover approximately 50 employees in each company. Applications will be accepted from February, and the accepted applicants will leave the company by the end of March 2018. In addition to a standard retirement payment, they will also receive a special severance payment and outplacement support, if needed.

3. Outline of TISS

(1) Name Toshiba Infrastructure Systems & Solutions Corporation
(2) Address 72-34 Horikawa-cho, Saiwai-ku Kawasaki-shi, Kanagawa, Japan
(3) Name and Title of Representative Shinichiro Akiba, President & CEO
(4) Business Outline Development, manufacture and sales of social infrastructure business products, systems and services
(5) Capital Stock 10 billion yen

4. Outline of ESS

(1) Name Toshiba Energy Systems & Solutions Corporation
(2) Address 72-34 Horikawa-cho, Saiwai-ku Kawasaki-shi, Kanagawa, Japan
(3) Name and Title of Representative Yoshihiro Aburatani, President & CEO
(4) Business Outline Development, manufacture and sales of energy business products, systems and services
(5) Capital Stock 10 billion yen

5. Future Outlook
Toshiba expects TISS and ESS to incur total operating expenses of approximately 1.6 billion yen in implementing the early retirement incentive programs. Toshiba made provision for restructuring in its business results forecast for FY2017, to March 31, 2018, as announced on November 9, 2017, and the 1.6 billion yen will be accommodated by this provision.

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About Toshiba

For over 140 years, Toshiba Corporation has contributed to a sustainable future by applying innovative technologies to value creation. Today, our business domains are centered on the essential infrastructure that supports modern life and society. Guided by the principles of The Basic Commitment of the Toshiba Group, “Committed to People, Committed to the Future”, Toshiba promotes global operations that contribute to realization of a world where generations to come can live better lives.

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