Toshiba Medical Systems Corporation Business Outline Sep, 2015 Disclaimer: Caution Concerning Forward-Looking Statements This document contains projections of business results, statements regarding business plans and other forward-looking statements. This information is based on certain assumptions, such as the economic environment, business policies and other factors. Actual results may differ significantly from the estimates listed here. 2 Toshiba’s Vision Our Aim: Providing Products + Excellent User Experiences 3 Business Field of TMSC in the Healthcare Cycle ② Screening ① ③ Diagnosis Healthcare Cycle ⑥ Home-care/ Monitoring Diagnosis to Treatment ⑤ Management/ Rehabilitation Medical Information Networking/Solution Screening to Diagnosis Prediction ④ Treatment Targeting Broader Care Phases (Screening–Diagnosis–Treatment) for 1) Early Detection, 2) Diagnostic Accuracy / Efficiency and 3) Less-invasive Treatment 4 Toshiba Group Structure Board of Directors President & CEO Corporate Staff Corporate R&D Center Corporate Software Engineering Center Corporate Manufacturing Engineering Center Cloud & Solutions Company Energy & Infrastructure Group Electronic Devices & Components Group Healthcare Systems & Services Group Toshiba Medical Systems Co. Lifestyle Products & Services Group Community Solutions Group 5 TMSC Contribution in Toshiba Group Toshiba Gr. Net Sales FY14 USD 67B (USD=JPY100) Energy & Infrastructure 28% Others Lifestyle 7% 19% 16% 24% Community Solutions 6% Healthcare USD4.1B (JPY 413B) Electronic Devices 6 Corporate Profile Company name : Business Start : 1914 Foundation : 1930 President & CEO : Toshio Takiguchi Headquarters : Tochigi, JAPAN Site Area :354,900㎡ Capital : 20.7 billion yen Revenue : 405billion yen (4 billion US$) TMSC HQ (TMSC Consolidated FY14) Global Employees: 9,760 (As of Mar. 2015) Toshio Takiguchi 7/17 Location of TMSC HQ Shiobara Nikko Otawara 150km (90 miles) from Tokyo Utsunomiya Mashiko Narita Tokyo 8 Corporate History 1875 Tanaka Manufacturing founded 1985 World’s First Slip ring CT scanner 1914 Research & Development of Japan’s first X-ray tube 1915 Japan’s First X-ray tube 1930 Japan Medical Electronics 2015 2003 Toshiba Medical Systems Co. 1938 Japan’s First Japan’s First Tomography System © 2015 Toshiba Corporation 9 Main Products Imaging Solutions PET-CT Systems Nuclear Medicine Systems (Japan) Radiation Therapy Systems (Japan) CT Systems Vascular Systems Workstation X-ray Systems Hospital Information System Clinical Laboratory Systems Ultrasound Systems Image Network Solution Information System for Clinics MRI Systems (Electronic Medical Record/Ordering) (Electronic Medical Record/ Medical Business Accounting) Medical Information Solutions 10 FY2014 TMSC Group Consolidated Revenue FY2014 USD 4.1 B Business Segment Others Area (Main Business) Japan CT 33% 39% 8% MRI Overseas UL 14% 67% XR 16% 11 Worldwide Sales & Service Network Through 11 subsidiaries and 77 distributors, We provide sales & service of medical equipment in more than 135 countries around the world Toshiba Medical Systems Europe B.V. Founded in 1981 Toshiba Medical Systems Turkey Founded in 2013 Toshiba of Canada Ltd. Toshiba Medical Systems China, Inc. Vital Images, Inc. Founded in 2007 Toshiba Medical Systems Korea, Inc. Founded in 2013 Toshiba Medical Systems Malaysia Sdn. Bhd. Founded in 2014 Medical Div. founded in 1986 Acquired in 2011 Toshiba Medical Systems Corporation Toshiba America Medical Systems, Inc. Medical Div. Founded in 1976 Toshiba Medical Systems Asia Pte, Ltd. Founded in 1995 Toshiba (Australia) Pty., Ltd. Toshiba Medical do Brasil, Ltda Founded in 1974 Medical Div. founded in 1980 © 2015 Toshiba Corporation 12 Our Management Slogan © 2015 Toshiba Corporation 13 New Solutions Concept Based on Clinical Needs Assisting in Hospital Management Improving Workflow Providing Clinical Value © 2015 Toshiba Corporation 14 Global R&D Global R&D network for products, services and technologies that contribute to the improvement of clinical values and medical efficiencies through collaboration with leading academic institutions. Established in 2008 (TMVS) Toshiba Medical Visualization Systems Europe, Ltd. Toshiba Software India Pvt. Ltd. Established in 2012 (TMC) Software Development Center (TMSC) Established in 2013 (TMRD) Established in 2006 (TMRU) Vital Images, Inc. Toshiba Medical Research Institute USA, Inc. Healthcare Technology Center Established in Dec 2014 Toshiba Medical Systems R&D (Dalian) Co., Ltd. Toshiba Medical Systems Corporation Nasu Headquarters Acquired in 2011 ・ Combination of wide-ranging technology asses of the Toshiba Group ・ Acceleration of Development for next-generation products ・ Research and development of differentiating technologies on mid- and long-term basis Corporate Corporate Software Manufacturing Engineering Center Engineering Center © 2014 Toshiba Corporation 15 Global Manufacturing & Procurement Global production system to support continuous sales growth and profit maximization Management of local production requirements in various regions Established in 2012 Established in 1991. Started manufacturing of medical systems in 2002 Role of base TMSC Dalian, China Chinese Procurement Center (TDL) Toshiba Dalian Ltd. Malaysia Brazil Manufacturing Mother factory Manufacturing base for lowend models and units Manufacturing base for ultrasound systems and PWBs Manufacturing base for expansion of sales (TMSC) Toshiba Medical Systems Corporation Nasu Headquarters (TMMA) Started operation in Dec 2014 Toshiba Medical Systems Manufacturing Asia SDN. BHD. (TMB) Started operation in Jan 2013 Toshiba Medical do Brasil Ltda. © 2014 Toshiba Corporation 16 360 Degree Safety Dose reduction/ management Ensuring patient safety Ensuring safe environment for operators Reduction of operational errors Provision of safety education/service Toshiba ensures safety for patients and all people involved in healthcare. Non-contrast MRA Workstation CT MR UL XR © 2015 Toshiba Corporation 17 Toshiba’s Low Dose Technique: Standard feature on all CT models We aim to reduce CT dose by 50% series series series *AIDR 3D=Adaptive Iterative Dose Reduction 3D 18 Dose Management Dose management with integrated exposure dose reduction for patients and medical staff SpotFluoro function X-rays are transmitted only to the target region, reducing exposure dose for the patient by up to 90% and for the operator by up to 70%. Dose Tracking System Visualization of exposure dose Realtime monitoring of skin exposure during procedure Exposure area outside the target region (not necessary) Target region during catheter operation © 2015 Toshiba Corporation 19 Advanced Medical Technology for the Diagnostic Imaging Field Worldwide clinical study using the latest CT (Aquilion ONE) Participation of 16 organizations in 8 countries Conventional Method Coronary artery angiography Myocardial SPECT Uses catheters & radioactive chemicals Canada Europe USA Japan Singapore Cardiac test using Aquilion ONE Coronary artery CT angiography Myocardial CT perfusion Brazil Single CT imaging ・Reduced radiation USA ・Reduced dosage ★Johns Hopkins University of contrast medium Harvard University-affiliated ・Shortened exam time hospitals Beth Israel Deaconess Medical Center Brigham and Women's Hospital National Institute of Health Japan Europe Iwate Medical University Mie University Keio University St Luke’s International Hospital University Clinic Humboldt University(Charité,) Leiden University Medical Center Copenhagen University Hospital (Rigshospitalet) Singapore Mount Elizabeth Hospital National Heart Center Canada University of Toronto Toronto General Hospital ★Main PI (Principal Investigator) Brazil University of São Paulo (INCOR) Albert Einstein Israelite Hospital 20 Non-contrast MRI Multicenter Study The results of the international multicenter trial “REACT” (REnal Artery Contrast-free Trial) were published in as clinical evidence. AJR American Journal of Roentgenology 2015-January edition Non-contrast imaging technology Time-SLIP (Time-Spatial Labeling Inversion Pulse) was compared with CT angiography in terms of ability to diagnose renal artery stenosis, and its clinical usefulness was verified. The value of the Time-SLIP method as a safe alternative evaluation method to CTA (which requires use of contrast medium) was verified. Global doctors collaborating on REACT Advanced Diagnostic Imaging Center, Monterey, CA, USA Bois de Verrières Medical Imaging Center, Antony, France Centros Médicos Creu Blanca, Barcelona, Spain Fundació Puigvert, Barcelona, Spain Renal artery non-contrast image acquired using a Toshiba MRI system. Peking Union Medical College Hospital, Beijing, China University of Tokyo, Tokyo, JAPAN University of Texas Health Science Center, San Antonio, TX, USA © 2015 Toshiba Corporation 21 Social Contribution Through Provision of Environmentally Friendly Products Establishment of eco-company brand in the medical equipment market Green Processes Energy conservation/resource conservation/elimination of hazardous substances throughout processes, from procurement to servicing Green Products Development of environmentally friendly products Small installation space (min. 23 m2) Quick installation (as short as 5 days) Reduced power consumption (30% reduction) Transformation of green space within the grounds of headquarters We are promoting creation of an environment which is friendly to flora and fauna Size reduction (48% lower product weight) Reduced power consumption (14% reduction) 22 23 From Start-up to Global R&D Center of Excellence Ken Sutherland President - TMVS Company Timeline 1999 Started working with Toshiba 2001 st 1 Ultrasound product for Toshiba 2003 1st Technology Framework R&D for Toshiba 2009 Acquired by Toshiba 1994 Company Start-up Toshiba Corporate Energy Data Healthcare Medical TMVS Acquisition and Investment New Talent Acquisition SUPA Inspire Studentship with Toshiba Medical Visualization Systems Taking Scottish Innovation to a Global Market Toshiba, EDINBURGH 3. GLOBAL SALES & MARKETING 1. CREATIVE INNOVATION Toshiba Medical Systems, JAPAN 2. PRODUCT INTEGRATION & TESTING