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Copyright 2011, Toshiba Corporation.
Toshiba’s Smart Community Initiatives and
Strategies for Growth
Norio Sasaki
President and CEO
December 16, 2011
2
© 2011 Toshiba Corporation
This presentation contains forward looking statements
concerning future plans, strategies and the performance of
Toshiba.
These statements are based on Toshiba’s assumptions and
beliefs in light of information currently available.
Furthermore, they are subject to a number of risks and
uncertainties (including but not limited to changes in economic
trends, intensive competition in the electronics industry, market
demand, exchange rate fluctuations, taxation systems and
other factors). Toshiba therefore wishes to caution readers that
actual results might differ materially from our expectations.
Notes
3
© 2011 Toshiba Corporation
Mega-trends Forming the Near-future and
the Smart Community Business
Toshiba’s Total Solutions for Realizing
Smart Communities
Toshiba’s Approach to the Smart
Community Business
Global Business Structure
Towards Town Planning for the Future
4
© 2011 Toshiba Corporation
Mega-trends Forming the Near-future and
the Smart Community Business
Toshiba’s Total Solutions for Realizing
Smart Communities
Toshiba’s Approach to the Smart
Community Business
Global Business Structure
Towards Town Planning for the Future
5
© 2011 Toshiba Corporation
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
2050
The global population is expected to grow about
1.5 times by 2050, with most growth in the newly
emerging economies of Africa and Asia.
-Emerging economies: energy and
environmental problems from rapid population
influx us to urban areas
- Developed Countries: Aging population, need
for enhanced welfare, Stuck at high levels of
per capita energy consumption
An escalating problem of urban concentration due to rapid increases
in the world’s population, centering on emerging economies
Mega-trends Change Business Conditions: Population Problems
Source: UN and World Urbanization Prospects The 2009 Revision.
2
4
6
8
(billion
people)
estimation
9.15
6.91
3.69
2.53
5.29
8.31
North
America
0.70
0.70
Europe
0.70
Oceania
0.05
South
America
0.48
Africa
2.00
Asia
5.23
exceeding 7
billion people
As of end of October, 2011
Source: UN, World Population ProspectsThe 2008 Revision.
Ratio of Urban Population
Growth of Urban Population
1950 1975 2009 2025 2050
Urban 0.73 1.51 3.42 4.54 6.29
Non-Urban 1.8 2.55 3.41 3.47 2.86
1.8 2.55 3.41 3.47 2.86
0.73
1.51
3.42
4.54 6.29
0
2
4
6
8
10
billion
1950 1975 2009 2025 2050
Developing 0.3 0.81 2.5 3.52 5.19
Developed 0.43 0.7 0.92 1.01 1.1
0.43 0.7 0.92 1.01 1.10.3
0.81
2.5
3.52
5.19
0
1
2
3
4
5
6
7
billion
6
© 2011 Toshiba Corporation
Increasing energy demand
resource shortages and price rises
Sources: IEA "World Energy Outlook 2001"
Agency for Natural Resources and Energy data
Rise of resource nationalism, generating
the issue of a gap between resource-rich
and resource-poor countries
Strengthening of regulations against
global warming; more frequent
unseasonable weather and natural
disasters
Huge influence on the world economy
and corporate activity
Mega-trends Change Business Conditions: Energy Problems
Increasing carbon-dioxide emissions
global warming
Carbon-dioxide
millions t
year
7© 2011 Toshiba Corporation
Mega-Trends Changing the World
- Global Issues and Solutions -
Use of sustainable
energy/resources
Developed CountriesEmerging Economies
Vital needs support
& healthcare *1
Build Secure
Information
Infrastructure
Economic Globalization
*1 Vital Needs Support & Healthcare: Services to support vital elements such as water, air, food, and
enhanced care for aged population and contribution to betterment of health
Aging Society
with Low Birthrate
Upsurge in Population
Urbanization
Traffic Jams
Digital
Convergence
Water
Shortages
Increased
Energy Demand
Shortages of Resources
Jumps in Resource Prices
Industrial Growth
Changes in Diet
Food
Scarcity
Expansion of
Internet
Community
Expansion of
Commodity Markets
Global
warming
Instant
Communication Life-quality
Improvement
Mega
Competition
“Smart Community” provides solutions
Price rise
In Medical Care
Medical Care
For AgingIncrease of
Cyberterrorism
8
© 2011 Toshiba Corporation
Global market in 2015 estimate: approx. 163 trillion yen*
Global Smart Community Mega-Market and Business Scale
Japan: 5
trillion yen
North
America: 35
trillion yen
Europe: 41
trillion yen
Middle East:
7 trillion yen
Africa: 3 trillion
yen
China: 57 trillion
yen
Asia Oceania: 7 trillion
yen
Central and
South America: 4
trillion yen
India: 4 trillion
yen
36
64
52 75
37
4
5955
3
8
7
5
15
1
3
82
1
2015
23
1
Smart grid (incl. renewable) 217 projects
Smart community (redeveloped) 195 projects
•Circle size: market scale
•Number: project count
Smart community (new) 73 projects
* source : "Nikkei BP – World Smart City Conspectus 2012"
9
© 2011 Toshiba Corporation
FY2015 Sales Target: 900 billion yen
Japan: 37% Outside of Japan: 63%
Developed
countries: 34%
Emerging
Economies:
29%
Sales targets by market
*Developed: North America 16; Europe 18
*Emerging: China 12; Asia 12 ;
Middle East and Africa 2; others (3)
Sales Target by solutions
ICT and cloud: 12%
Smart grid
Landis+Gyr:
33%
Smart transportation: 2%
Market
(400 projects)
Toshiba
(20 projects)
Commercial
level
40 projects (10%) 8 projects (20%*)
FS and
Experimental
260 projects (65%) 8 projects (3%*)
Investigation
stage
100 projects (25%) 4 projects (4%*)
Target market share
in 2015:
8 trillion yen*
(5% of 163 trillion yen)
Extensive experience and high market share in commercial level feasibility studies
and experimental projects moving steadily towards achieving target for FY2015
•Source: “Nikkei BP – World Smart City Conspectus 2012“* Overlapping parts removed. Ratio is a Toshiba estimate.
Sales Target (FY2015)
900 billion yen
Smart facilities:
52%
* Ratio = Toshiba Projects / World Projects
10
© 2011 Toshiba Corporation
Mega-trends Forming the Near-future and
the Smart Community Business
Toshiba’s Total Solutions for Realizing
Smart Communities
Toshiba’s Approach to the Smart
Community Business
Global Business Structure
Towards Town Planning for the Future
11
© 2011 Toshiba Corporation
Substation
Eco-truck line
Physical
distribution
terminal
Electric power
storage center
Demand-activated bus i
ITS system
High-speed
vehicle lane
Mega solar
Photovoltaics
EV charge stand
Hospital
FEMS
HEMS
University
City office
Transmission
network
Commercial
district
Residential
district
Apartments
Commercial area
HotelResource
recycling plant
Digital
Signage
Co-gen
Factory
district
Waterworks
Far
m
Rapid transit railway
between cities
BEMS Business
district
CEMS
Sewer plant
Desalination plant
Container
data center
Residential
district
Achieve a balance between the
Comfort of the “individual” and a sustainable “community”
Toshiba’s Smart Community Concept
Heating
Solutions
Home
Solutions
Building
Solutions
Electric
Solutions
Water
Solutions
Medical
SolutionsTransport
Solutions
Station
Factory
Solutions
Store
Solutions
Contents
Solutions
12
© 2011 Toshiba Corporation
Buildings and
residences
Medical
HEMS
Medical
Social Infrastructure Cloud Services
Retail
Transport
Large size
Distribution
Real time DB
(Hundreds PB(s) -
some EB)
Security
Application
TransportWaterElectricity
Smart meter MP radar rain
gauge
DSRC, ITS CT, MRI
Integration service bus
Toshiba social
infrastructure cloud
Extensive
Distributed
Data
Processing
(Several Gbps)
analysis engine, optimization engine
Optimal operation
Cart POS
ATO
EV charge and
discharge
Energy-saving air-
conditioning control
Sensor to
detect people
BEMS
Fusion of social infrastructure technologies and
ICT to process huge volume of data
Water and
Sewage
Sensing
technology
Control
technology
ICT
13
© 2011 Toshiba Corporation
Cloud Services for Energy
Regional energy management in cooperation with main grid
PV and storage batteries
support regional flexibility
HEMSBEMSBEMSBEMSFEMS
Regional energy
management
CEMS
Central power supply control center
EMS
Hydro powerThermal powerNuclear power Wind power Mega-solar
CEMSCEMS
Large capacity
storage battery
- Stabilization of renewable energy supply lowers power cost
- Response to demand system saves energy and boosts regional efficiency
14
© 2011 Toshiba Corporation
Disaster-prevention cloud services at regional level
High level disaster-prevention solution by collaborative regional information
CCTV
camera
Class B river
Class A river
Pumping
station
Pumping
station
Rain guage
Local broadcasting
stations
Disaster prevention Office
Weather
Bureau
Flood alarm
Hospital
Person
involved
Person
involved
Laser shoot
River office
Prefectural
Government
Community
medical
collaboration
Inflow
forecast
Water height
projection
Damage forecast
by high definition
GPS
Evacuation
guidance for
citizens
MP radar
hyetometer
Regional disaster-prevention cloud
Sewage plant
Real time situation assessment and cooperation in the region contributes to reduce damage
Traffic control,
guidance
15
© 2011 Toshiba Corporation
Medical Cloud Services
Community medical care network for an aging society
Strengthening local clinic functions improves medical care for the overall community
-Data sharing and central storage
-Patient data management and
preventive medicine
- Early treatment at clinic
Hospital
Local clinic
Specialist hospital
Cloud service
Pharmacy
-Medical examination center
-Healthcare administration
center
Heavy ion
radiotherapy center
Hospital
Residence
Diagnostic
equipment
Healthcare
accounting
POS
Electronic bin card
system
Health care
accounting
POS
Label
Printer
Health
care
accounting
POS
Community medicine
Network
Direct coding
for Cloud that
requires no
decoding
(re-encoding
technology)
Pathology report analysis,
accounts analysis
Code 1
Code 2
Code 3
Code 4
Code 5
Code 6
16
© 2011 Toshiba Corporation
Information Kiosk
Service site for customers
Coupons,
discount information
Payment Kiosk
Merchandise management
of inventory
Utilize tablet PCs
Saving energy for
data updates
Solutions services centered on Kiosks and digital signage
Enhance sales
opportunities, sales by
shop front promotions
Low cost
operation
Expand area cooperating with point system
Internet storage, payment service
personal data, transaction data on cloud,
web fliers/promotion services
Information on
facilities, products
Increased
customers
Increase average
customer spending
Easy paymentDelivery service
Convenient shopping
Cloud solutions for retailers that realize smart shopping
Cloud Service
Retailers (Product control, Saving energy)
Customer (Individual recommend)
-Group Recommendations
-Conversion to 3D content
-Contents for multi devices
Promote comfortable living with various devices and professional system integration
Cloud Services for Retailers: In-store purchases
Self-service Kiosk
Self checkout lane
POS
Digital Showcase,
Digital Signage
Cart POS
Electronic bin card
Shopping at stores
Internet
Shopping
Shopping
support
17
© 2011 Toshiba Corporation
Cloud Services for the Home
Provide users with multiple optimized services
Heat
solution
Power
solution
Water
solution
Medical
solution
Transport
solution
Education
Anti-
crime
AdvertisingShopping
Enter-
tainment
Provide as a design service for a total smart life
Optimize
Optimize
Cooperate
Realize Home + EV total management:
Visualize (power saving10%), DR(peak-shift 5-10%), charge and discharge of EV
Smart meter
HEMS
Home Display
Fuel Cell
LED lighting
PCS Solar Power
Home Storage Battery
Electric Vehicle
Electricity
Measuring Unit
DR/Control
Carbon-dioxide
emission
For example, automatic scheduling of EV
charge-discharge reflecting road conditions
and travel times
18
© 2011 Toshiba Corporation
Mega-trends Forming the Near-future and
the Smart Community Business
Toshiba’s Total Solutions for Realizing
Smart Communities
Toshiba’s Approach to the Smart
Community Business
Global Business Structure
Towards Town Planning for the Future
19
© 2011 Toshiba Corporation
Experimental and Commercial Smart Community
Over 20 projects worldwide, expanding smart community by each region’s problems
Indiana, USA
①Energy Systems Network PJ
New Mexico , USA
①Japan-US Smartgrid
demonstration project
②Open collaborative research of
environment technology by
industry, academic, government
②Kawasaki station area PJ
Yokohama
②Yokohama smart city PJ (YSCP)
Ibaraki
③Ibaraki city smart community PJ
①New Energy System on
Miyakojima PJ
①Miyakojima whole island EMS
①Miyakojima Kurimajima PJ
Malaysia
②Green township
concept
Delhi-Mumbai Industrial Corridor
②Manesar PJ ②Haryana PJ
Shaanxi , China
②Smart community technical
demonstration project
Tianjin, China
③Tenshin Eco city PJ
Central-Eastern
Europe(Bulgaria)
①Smart community
business study PJ
Lyon, France
②Smart community
demonstration project
○ Smart home for
Bristol city EU_PJ
Italy
②Genova , Smart city
Promotion plan
① Win smart grid for ACEA
Distribuzione S.p.A, Rome *
①PJ for Isle of Wight
Earthquake disaster
reconstruction PJ
★
★
★
★
[Project status]
★ :Commercial 4
:Investigate stage 4
None: FS, Experiment 12
England
Miyakojima
Kawasaki
Haryana state, India ① : Smart grid type
(incl. renewable energy) : 8
② : Smart Community
(Re-development): 9
③ : Smart Community
(New Development) : 2
* Acceptance of order by Ansaldo Trasmissione & Distribuzione S.p.A
20
© 2011 Toshiba Corporation
Realize balance between installing large-scale renewable energy
sources and stabilizing power supply
(PV 4MW, Wind 4.2MW; approx. 15% of maximum demand)
Example 1
Installation of New Energy System on Miyakojima, a Remote Island
Peak cut, peak
shift
frequency control
Current power
generating
system is
expensive due to
fuel costs
Renewable energy
Potential application in industrial park, as it reduces
private power generation Extended to India
Existing
Gas Turbine Power
Plant 15,000kW
Existing
Themal
19,000kW
(Miyako)
40,000kW
(Miyako II)
Existing
Wind Power Plant
900kW x 4
600kW x 1
Solar Power Plant
4MW
Center Control Unit
Battery Storage Device
4MW
Battery Storage
Device 200kW
Consumer
Simulated
Consumer
Cut fuel costs
by reducing or stopping
thermal generation
21
© 2011 Toshiba Corporation
Example 2
Yokohama Smart City Project (YSCP)
Construct a society aiming to cut CO2 emissions by 30% (*1)
Wide area energy management and demand response (DR)
Scale
CEMS:Community Energy Management System
BEMS:Building Energy Management System
HEMS:Home Energy Management System
SCADA:Supervisory Control And Data Acquisition
Business Potential Evaluation
HEMS (4,000 houses)
-10% CO2 reduction by visualization, 10% CO2 reduction by DR,
total of 20% CO2 reduction (*2)
- First DR for mansions at “Park Homes Okurayama”
BEMS(160,000,000sqm) - 15% CO2 reduction by smart BEMS (*2)
- 5% improvement by building
management (integrated BEMS) (*2)
EV (2,000 sets) - 30% CO2 reduction per set (*4)
☆ Smart city
expo 2011
Urban City Award
*1 Reduction target compared to Yokohama city action guideline FY2004
*2 Cut target before and after installing system
*3 Mitsui Fudosan Residential Co.,Ltd.
*4 Estimation reflecting life cycle
Population: about 420,000 people
(about 170,000 households)
Space: about 60 km2
Area: Minato Mirai area,
Kohoku new town,
Kanazawa Green Valley
Investment Recovery
HEMS = 3 years
BEMS = 5 years
22
© 2011 Toshiba Corporation
Area: Lyon Confluence redevelopment area
Example 3
Lyon Project, France
Save energy 25% + Generate energy (Solar: 15%, Cogeneration: 83%)
Generate more energy than is consumed
Zero-emissions by use of renewable energy and sharing EV
Visualize use in project area: homes, buildings and traffic
Start demonstration
Project from January, 2012
Collaboration
Achieve targets 5 years ahead of the EU’s 20-20-20 Plan*
* A target agreed among EU countries to reduce greenhouse gases by 20%, improve energy
efficiency by 20% , and achieve renewable energy use of 20% by 2020, against 1990.
Optimize solar power generation to bring EV into the community
EV Charge Station
(Charge, Control)EV Car sharing
(Charge, Schedule
Optimization)
Solar Power Plant
Energy monitor for homeSmart Battery
Solar Power
Plant
Energy monitor
for condominiums
InformationPowerSmart meter
Building
Meter Data ControlEnergy Management
System
Community
Management System
Distribution
System
Solar Power Plant
23
© 2011 Toshiba Corporation
Plan a disaster-resistant and safe town
Reconstruct, not get stuck in "restoration"
Construct advanced community that solves the problem of
modern society an optimistic town with state-of-the-art
technology
Develop disaster resistance and cultivate future towns
Produce a new society by early promotion of renewable
energy create a smart living environment by housing
relocation
Create hometown Iwate Sanriku which protects life and
coexists with the sea and the land
Secure safety, rebuild livelihoods, restore employment
Symbiosis with the environment through harnessing
resources such as biomass
c 2011 Toshiba Corporation
Example 4
Actions to Revive Towns 1
“Industrial development and job creation” “Environmental harmony / cyclical form”
Optimal smart communities blended with local characteristic are proposed.
Iwate
Prefecture
Miyagi
Prefecture
Fukushima
Prefecture
24
© 2011 Toshiba Corporation
C
h
a
r
g
e
E
l
e
c
t
r
i
c
d
i
s
c
h
a
r
g
e
System
stabilizati
on
Photovolt
aics
P
o
w
e
r
g
e
n
e
r
a
t
i
o
n
C
h
a
r
g
e
E
l
e
c
t
r
i
c
d
i
s
c
h
a
r
g
e
E
l
e
c
t
r
i
c
p
o
w
e
r
s
u
p
p
l
y
E
l
e
c
t
r
i
c
it
y
d
e
m
a
n
d
P
o
w
e
r
g
e
n
e
r
a
t
i
o
nElectric
network
Share
power
supply
system
Electric
vehicle (EV)
Sewage
treatment
equipment
Smart house
Methane
fermentation by
mixed processing of
sludge and a kitchen
garbage
Sew
er
Wate
r for
vege
table
traini
ng
Photovoltaic solar
cell
Water
network
N
a
k
a
m
iz
u
Sewer
Gas
engine
power
generation
Accumul
ation-of-
electricity
place
Wind
power
genera
tion
Collecti
on heat
of solar
heat
Plant
factory
Factory
waste
heat
boiler
Heat
drive
type
Heat
pump
Thermal cracking
process
Heat
network
Unused energy
power
generation 熱
電
O
R
C
Car
bid
e
Electric
drive
type
Heat
pump
Po
wer
gen
erat
ion
Nanoca
rbon
A high-tech
material is made
from wood
quality, and it is
industry
application.
Nakami
zu
Waterw
orks
Wood
quality
Bioma
ss
Advanc
ed Eco
Factory
Raw
sludg
e
Adva
nced
proc
essin
g
(resu
rgent
wate
r)
Stora
ge
batte
ry
Example 5
Actions to Revive Towns 2
Highway (multiplex
defense)
Harbor
facilities
Scho
ol
Factory
Admini
stratio
n
institut
ion
Transfer
Residential
zone
Relocate
community to
higher
land
Hospital
Farmland
Farmland
A town built with hope that incorporates
state-of-the-art technology
(Miyagi prefecture)
Optimal Smart Community Proposal with Local Characteristics
A town in symbiosis with the environment
through use of biomass resources
(Iwate prefecture)
Artificial
rock
Ratio of renewable energy use
in the project area
2010: 25% → 2015: 45%
To Reconstruct a community with improved
lifelines, where people can sustain life for 3
days in the designated area after a disaster
25
© 2011 Toshiba Corporation
Realize new business by using difference of power selling price and clean energy sources
- Investment recovery within 10 years with a 15 cent margin on power selling price
and a storage battery price of $500 per kWh -
Charge
Maximize Profit
Power sales trend
EV maker
Discharge
Charge at night, sell in the daytime
→ increase profit
Increase Sales
Power generation
trend
25 20 15 10 5
500
1000
1500
2000
0
4
8
12
16
20
初期投資
回収年
売電価格差
(セント)
蓄電池単価
(ドル/kWh)
Reduce capital investment
by reusing EV battery
Charge with cheap
wind energy at night
Energy
for
Sales
+
Capital
Investment
-
←Sell renewable energy
during daytime
←
←
North America Energy Systems Network (ESN) Project
Examples of Business Models 1
Energy Management
effective use of
vehicle batteries
Re-use market
Inexpensive
rechargeable battery
Large-scale wind
power generation
Time to
recoup
initial investment
Margin on power
selling price (cents)
Storage
battery
price
( $/kWh)Operating cost
26
© 2011 Toshiba Corporation
School
NH8
Substation
(66kV)
Substation
(220kV)
Substation
(66kV)
Power
supply
from
gridOffices
Hotels Hospital
Data & Security
Centre
Commercial Area
Residential
Area
Solar Generation
Solar Generation
Solar Generation
Water Treatment Plant
Sewage
Treatme
nt Plant
Energy
Management
Center
Micro-Grid
Industrial Area
Co-Generation
System
Heat Supply
Communication
Network
Security Area
Logistics
Hub
MRT
EV Circuit Bus
Co-Generation
System
Co-Generation
Syste
m
Co-Generation
System
Industrial Area
Power
Supply
from
gird
Grid Power
Supply
Create smart community covering all of Manesar
30% reduction in cost of off grid power; 60% reduction in CO2 by eliminating boiler and
using cogeneration; 60% reduction in water demand by reuse of water
※EMS = Energy Management System
Capital
investment
in off grid
equipment
Power generation
cost for current
industrial park
Operating
cost
Electricity
cost for
general
users
Cost
of
Electricity
(Utility)
Electricity cost
with Smart
Industrial park
Current
Situation
Heat supply
Combination
Use
discount
Common
equipment
Use
discount
Examples of Business Models 2
Build Smart Communities Through Redevelopment
India: Delhi-Mumbai Industrial Corridor, Manesar Project
Cogeneration realizes a low carbon industrial complex with
reliable power supply
Energy
Charge of
Cogeneration
Operator
27
© 2011 Toshiba Corporation
Tianjin TEDA1x1 project
Implement growth model in cooperation with business developer
+
-
New Business
Opportunities
VS
Operation
Cost
Examples of Business Models 3
Build Smart Communities Through New Developments
ESCO Business
Increase community value by attracting
enterprises, creating jobs, increasing
population and activating the local economy
・ low carbon society
・ Increase corporate profit by
saving energy and reducing
utility costs
Tax revenues
Tax revenues
Community
value
Community
value
Construction
investment
Construction
investment
Smart Industrial Complex
Current industrial park
Investment in Smart Community and Smart Service
businesses in construction
* TEDA: Tianjin Economic-Technological Development Area
TEDA Nangang industrial
zone recycling economy,
public project garden
Source: TEDA homepage
28
© 2011 Toshiba Corporation
Mega-trends Forming the Near-future and
the Smart Community Business
Toshiba’s Total Solutions for Realizing
Smart Communities
Toshiba’s Approach to the Smart
Community Business
Global Business Structure
Towards Town Planning for the Future
29
© 2011 Toshiba Corporation
Transform the Business Structure from Analysis to Synthesis
Develop new solutions to meet mega-trends
Alliance Partners
Electricity Water
Transport-
ation
Health Buildings
and
homes
Provide best mix of tailor-made solutions
Broad solutions and knowhow from analytical approach
Synthesis
(composition)
Complementary technology
(Town planning,
Smart technology)
Toshiba Group
Toshiba TEC
Toshiba Elevators & Building
Systems
Toshiba Solutions
Toshiba Medical Systems
Toshiba Lighting & Technology
Toshiba Carrier
:
Comfortable individuals and Sustainable community
Cloud Creative DNA to
support rich life
Basic
infrastructure
ICT x Control technology x
Sensing technology
= Comprehensive
engineering
technology
Collaboration for Constructing a Total Solutions Structure
30
© 2011 Toshiba Corporation
Further Enhancement of Cloud Business Platform
Accumulated Data
Common platform for application services
Common framework: customer management platform, multi-language,
application platform, security, collective knowledge processing, etc.
ICT Cloud Platform
Formulation of global cloud services
contribute to further development of smart community
Accelerating Meta Cloud
Enhancing
ICT Cloud Platform
Digital
signage
Home・Health care・
Education
BtoC
・Toshiba Places
Office・
Distribution services Social infrastructure
MFPTablet
PC
POS
IP Phone
・Home care solutions
・HEMS (Visualization,
Equipment control)
・IT classroom
・School administration
support services
・Retailer community
services
・Unified
communication
・Document solution
Heating
Solutions
Home
Solutions
Building
Solutions
Electric
SolutionsWater
Solutions
Medical
Solutions
Transport
Soluti
ons
31
© 2011 Toshiba Corporation
Integrate Group-wide ICT and cloud solution services
Products, Components Control Systems Information, Cloud services
Home Appliances Group
Digital Products Group
Infrastructure Systems Group
Power Systems Company
Social Infrastructure Systems Company
Toshiba Medical Systems Corporation
Toshiba Elevator and Building Systems Corporation
Smart Community Div.
Electronic Devices Group
Cloud Solution Div.
(new)
Toshiba Solutions
Corporation
ICT, Cloud solution
Reinforce Smart Community Business Structure: Jan. 1, 2011
32
© 2011 Toshiba Corporation
Landis+Gyr Acquisition and Operation
Acquired: July 29
Purchase price: $2.3Billion
Promote “local-fit” business in four regional markets
Toshiba
60% 40%
The Innovation Network
Corporation of Japan (INCJ)
L+G board
Landis+Gyr AG
EMEA Asia-PacificN.Am S.Am
Holding Co. EMEA
S.Am
Sales $1.533Bln
(2010)
N.Am
Asia-
Pacific
34%
45%
7%
14%
33
© 2011 Toshiba Corporation
Purpose of Acquisition 1: Synergy with Toshiba’s T&D business
Toshiba T&D
Storage
Battery
muEMS
Power distribution automation
Landis+Gyr
Smart meters
Meter data management system
*1 GIS: Gas Insulated Switchgear, *3 North American market share of a Landis+Gyr Affiliate
*2 MVSG: Middle Voltage Switchgear
MVSG※2GIS※1 Relay
34%
19% ※3
Market
Share
TransformerPV power
generation
Home
Photovoltaics
Together, both companies cover Smart Grid components
34
© 2011 Toshiba Corporation
North America
South America
Asia-Pacific
EMEA
Purpose of Acquisition 2:Utilize Landis+Gyr’s Global
Presence
Landis+Gyr’s hubs and major customers
E.ON (Europe)
British Gas (UK)
ERDF (France)
ACEA (Italy)
City Power
Johannesburg (South
Africa)
etc.
SP Ausnet
(Australia)
Ausgrid (Australia)
MGVCL (India)
State Grid
Corporation of
China (China)
etc.
R&D Center
Mass production
Factory
Assembly Factory
Sales Office
Oncor (US)
AEP (US)
PSE (US)
Hydro
Quebec (Canada)
etc.
Rede Group (Brazil)
AMPLA (Brazil)
LIGHT (Brazil)
Copel (Brazil)
etc.
A global presence, in over 30 countries with more than 8,000
corporate customers
⇒ Promote Smart Grid system to current customers
35
© 2011 Toshiba Corporation
Example: Synergy from the Acquisition
Smart Grid system for Italy’s ACEA
photovoltaic power supply for electric vehicle charge stand
ACEA Control room:
Electric power
system
Communication
network
Demonstration PJ by Toshiba and L+G
Linked with existing supervision
and control system
L+G
supply
Toshiba
supply
Photovoltaic
Raffinerie Substation
Smart meter
Charge Stand
Storage
Battery
Smart
Inverter
Smart meter
Smart meter
muEMS
Electric
power
Communication
line
muEMS
Smart meter
PV
Storage battery
Charge stand
muEMS
Smart meter
PV
Storage battery
Charge stand
muEMS
Smart meter
PV
Storage battery
Charge stand
Plan to expand to 70 locations
Deployment
Supply of Landis+Gyr's smart meters and Toshiba’s related products
(photovoltaics, storage batteries (SCiB), charge stands, muEMS, etc.)
for ACEA’s Smart Grid demonstration PJ.
36
© 2011 Toshiba Corporation
EBIT・・・Earnings Before Interests and Taxes
One-stop Solution
increases in both
sales and profit
Current Investment
US$1,620M
0
1,000
500
2,000
2,500
3,000
1,500
3,500
2011 2013 2015 2017 2019 2021 2023
(Unit: US$M)
EBI
T
2011 2013 2015 2017 2019 2021
0
2,000
1,000
3,000
4,000
5,000
6,000
Sales
EBIT
Sales
200
400
600
800
Utility Needs FDIR*1
+
Distribution Automation
DLC*2
+
HEMS
BEMS+
BEMS
Landis+Gyr Toshiba
Utility Needs
Local metering
Utilize
Landis+Gyr’s
Bases
*1 FDIR : Fault-Detection, Fault-Isolation, and Recovery
*2 DLC: Direct Load Control
Realize Synergy
etc….
Recovery of Investment
Sales and operating profit plan, excluding Toshiba’s existing businesses
Shorten 9 years initial plan to 7 years by realizing synergies
37
© 2011 Toshiba Corporation
Targets of Smart Community Business
Conventional
town planning
Smart community
town planning
Operation and Management
Plan and Design
Provide total solutions from planning to
construction and operation management
In cooperation with
developers and consultants,
propose smarter way from
master plan to detailed
design
Construct infrastructure including
energy supply, transport, health,
water, buildings, homes, etc.
ICT supports advanced
operation and management
Business cycle
Deliver equipment for energy supply,
transportation, health, water, buildings, homes, etc.
:Outside
of Japan
:Japan
2015年
9,000億円
FY2015
900 billion yen
about
400 billion yen
at present
Construction
38
© 2011 Toshiba Corporation
Mega-trends Forming the Near-future and
the Smart Community Business
Toshiba’s Total Solutions for Realizing
Smart Communities
Toshiba’s Approach to the Smart
Community Business
Global Business Structure
Towards Town Planning for the Future
39
© 2011 Toshiba Corporation
Towards the Future of Urban Development
Establish business model
Strategic alliances
Standardization
Reduce cost by mass
production
Expand private sector
projects
Funding
Promote strategic alliances
Develop business from
EPC to service
Technology
validation
Profitability
verification
Redevelopment
New
development
Restore
Now
2STEP 3STEP
Deploy commercialized
business globally
Promotion by creating
optimal consortiums
Verified and accumulated
through demonstration PJ
1STEP
40
© 2011 Toshiba Corporation

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Toshiba Smart Cities

  • 1. Copyright 2011, Toshiba Corporation. Toshiba’s Smart Community Initiatives and Strategies for Growth Norio Sasaki President and CEO December 16, 2011
  • 2. 2 © 2011 Toshiba Corporation This presentation contains forward looking statements concerning future plans, strategies and the performance of Toshiba. These statements are based on Toshiba’s assumptions and beliefs in light of information currently available. Furthermore, they are subject to a number of risks and uncertainties (including but not limited to changes in economic trends, intensive competition in the electronics industry, market demand, exchange rate fluctuations, taxation systems and other factors). Toshiba therefore wishes to caution readers that actual results might differ materially from our expectations. Notes
  • 3. 3 © 2011 Toshiba Corporation Mega-trends Forming the Near-future and the Smart Community Business Toshiba’s Total Solutions for Realizing Smart Communities Toshiba’s Approach to the Smart Community Business Global Business Structure Towards Town Planning for the Future
  • 4. 4 © 2011 Toshiba Corporation Mega-trends Forming the Near-future and the Smart Community Business Toshiba’s Total Solutions for Realizing Smart Communities Toshiba’s Approach to the Smart Community Business Global Business Structure Towards Town Planning for the Future
  • 5. 5 © 2011 Toshiba Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 The global population is expected to grow about 1.5 times by 2050, with most growth in the newly emerging economies of Africa and Asia. -Emerging economies: energy and environmental problems from rapid population influx us to urban areas - Developed Countries: Aging population, need for enhanced welfare, Stuck at high levels of per capita energy consumption An escalating problem of urban concentration due to rapid increases in the world’s population, centering on emerging economies Mega-trends Change Business Conditions: Population Problems Source: UN and World Urbanization Prospects The 2009 Revision. 2 4 6 8 (billion people) estimation 9.15 6.91 3.69 2.53 5.29 8.31 North America 0.70 0.70 Europe 0.70 Oceania 0.05 South America 0.48 Africa 2.00 Asia 5.23 exceeding 7 billion people As of end of October, 2011 Source: UN, World Population ProspectsThe 2008 Revision. Ratio of Urban Population Growth of Urban Population 1950 1975 2009 2025 2050 Urban 0.73 1.51 3.42 4.54 6.29 Non-Urban 1.8 2.55 3.41 3.47 2.86 1.8 2.55 3.41 3.47 2.86 0.73 1.51 3.42 4.54 6.29 0 2 4 6 8 10 billion 1950 1975 2009 2025 2050 Developing 0.3 0.81 2.5 3.52 5.19 Developed 0.43 0.7 0.92 1.01 1.1 0.43 0.7 0.92 1.01 1.10.3 0.81 2.5 3.52 5.19 0 1 2 3 4 5 6 7 billion
  • 6. 6 © 2011 Toshiba Corporation Increasing energy demand resource shortages and price rises Sources: IEA "World Energy Outlook 2001" Agency for Natural Resources and Energy data Rise of resource nationalism, generating the issue of a gap between resource-rich and resource-poor countries Strengthening of regulations against global warming; more frequent unseasonable weather and natural disasters Huge influence on the world economy and corporate activity Mega-trends Change Business Conditions: Energy Problems Increasing carbon-dioxide emissions global warming Carbon-dioxide millions t year
  • 7. 7© 2011 Toshiba Corporation Mega-Trends Changing the World - Global Issues and Solutions - Use of sustainable energy/resources Developed CountriesEmerging Economies Vital needs support & healthcare *1 Build Secure Information Infrastructure Economic Globalization *1 Vital Needs Support & Healthcare: Services to support vital elements such as water, air, food, and enhanced care for aged population and contribution to betterment of health Aging Society with Low Birthrate Upsurge in Population Urbanization Traffic Jams Digital Convergence Water Shortages Increased Energy Demand Shortages of Resources Jumps in Resource Prices Industrial Growth Changes in Diet Food Scarcity Expansion of Internet Community Expansion of Commodity Markets Global warming Instant Communication Life-quality Improvement Mega Competition “Smart Community” provides solutions Price rise In Medical Care Medical Care For AgingIncrease of Cyberterrorism
  • 8. 8 © 2011 Toshiba Corporation Global market in 2015 estimate: approx. 163 trillion yen* Global Smart Community Mega-Market and Business Scale Japan: 5 trillion yen North America: 35 trillion yen Europe: 41 trillion yen Middle East: 7 trillion yen Africa: 3 trillion yen China: 57 trillion yen Asia Oceania: 7 trillion yen Central and South America: 4 trillion yen India: 4 trillion yen 36 64 52 75 37 4 5955 3 8 7 5 15 1 3 82 1 2015 23 1 Smart grid (incl. renewable) 217 projects Smart community (redeveloped) 195 projects •Circle size: market scale •Number: project count Smart community (new) 73 projects * source : "Nikkei BP – World Smart City Conspectus 2012"
  • 9. 9 © 2011 Toshiba Corporation FY2015 Sales Target: 900 billion yen Japan: 37% Outside of Japan: 63% Developed countries: 34% Emerging Economies: 29% Sales targets by market *Developed: North America 16; Europe 18 *Emerging: China 12; Asia 12 ; Middle East and Africa 2; others (3) Sales Target by solutions ICT and cloud: 12% Smart grid Landis+Gyr: 33% Smart transportation: 2% Market (400 projects) Toshiba (20 projects) Commercial level 40 projects (10%) 8 projects (20%*) FS and Experimental 260 projects (65%) 8 projects (3%*) Investigation stage 100 projects (25%) 4 projects (4%*) Target market share in 2015: 8 trillion yen* (5% of 163 trillion yen) Extensive experience and high market share in commercial level feasibility studies and experimental projects moving steadily towards achieving target for FY2015 •Source: “Nikkei BP – World Smart City Conspectus 2012“* Overlapping parts removed. Ratio is a Toshiba estimate. Sales Target (FY2015) 900 billion yen Smart facilities: 52% * Ratio = Toshiba Projects / World Projects
  • 10. 10 © 2011 Toshiba Corporation Mega-trends Forming the Near-future and the Smart Community Business Toshiba’s Total Solutions for Realizing Smart Communities Toshiba’s Approach to the Smart Community Business Global Business Structure Towards Town Planning for the Future
  • 11. 11 © 2011 Toshiba Corporation Substation Eco-truck line Physical distribution terminal Electric power storage center Demand-activated bus i ITS system High-speed vehicle lane Mega solar Photovoltaics EV charge stand Hospital FEMS HEMS University City office Transmission network Commercial district Residential district Apartments Commercial area HotelResource recycling plant Digital Signage Co-gen Factory district Waterworks Far m Rapid transit railway between cities BEMS Business district CEMS Sewer plant Desalination plant Container data center Residential district Achieve a balance between the Comfort of the “individual” and a sustainable “community” Toshiba’s Smart Community Concept Heating Solutions Home Solutions Building Solutions Electric Solutions Water Solutions Medical SolutionsTransport Solutions Station Factory Solutions Store Solutions Contents Solutions
  • 12. 12 © 2011 Toshiba Corporation Buildings and residences Medical HEMS Medical Social Infrastructure Cloud Services Retail Transport Large size Distribution Real time DB (Hundreds PB(s) - some EB) Security Application TransportWaterElectricity Smart meter MP radar rain gauge DSRC, ITS CT, MRI Integration service bus Toshiba social infrastructure cloud Extensive Distributed Data Processing (Several Gbps) analysis engine, optimization engine Optimal operation Cart POS ATO EV charge and discharge Energy-saving air- conditioning control Sensor to detect people BEMS Fusion of social infrastructure technologies and ICT to process huge volume of data Water and Sewage Sensing technology Control technology ICT
  • 13. 13 © 2011 Toshiba Corporation Cloud Services for Energy Regional energy management in cooperation with main grid PV and storage batteries support regional flexibility HEMSBEMSBEMSBEMSFEMS Regional energy management CEMS Central power supply control center EMS Hydro powerThermal powerNuclear power Wind power Mega-solar CEMSCEMS Large capacity storage battery - Stabilization of renewable energy supply lowers power cost - Response to demand system saves energy and boosts regional efficiency
  • 14. 14 © 2011 Toshiba Corporation Disaster-prevention cloud services at regional level High level disaster-prevention solution by collaborative regional information CCTV camera Class B river Class A river Pumping station Pumping station Rain guage Local broadcasting stations Disaster prevention Office Weather Bureau Flood alarm Hospital Person involved Person involved Laser shoot River office Prefectural Government Community medical collaboration Inflow forecast Water height projection Damage forecast by high definition GPS Evacuation guidance for citizens MP radar hyetometer Regional disaster-prevention cloud Sewage plant Real time situation assessment and cooperation in the region contributes to reduce damage Traffic control, guidance
  • 15. 15 © 2011 Toshiba Corporation Medical Cloud Services Community medical care network for an aging society Strengthening local clinic functions improves medical care for the overall community -Data sharing and central storage -Patient data management and preventive medicine - Early treatment at clinic Hospital Local clinic Specialist hospital Cloud service Pharmacy -Medical examination center -Healthcare administration center Heavy ion radiotherapy center Hospital Residence Diagnostic equipment Healthcare accounting POS Electronic bin card system Health care accounting POS Label Printer Health care accounting POS Community medicine Network Direct coding for Cloud that requires no decoding (re-encoding technology) Pathology report analysis, accounts analysis Code 1 Code 2 Code 3 Code 4 Code 5 Code 6
  • 16. 16 © 2011 Toshiba Corporation Information Kiosk Service site for customers Coupons, discount information Payment Kiosk Merchandise management of inventory Utilize tablet PCs Saving energy for data updates Solutions services centered on Kiosks and digital signage Enhance sales opportunities, sales by shop front promotions Low cost operation Expand area cooperating with point system Internet storage, payment service personal data, transaction data on cloud, web fliers/promotion services Information on facilities, products Increased customers Increase average customer spending Easy paymentDelivery service Convenient shopping Cloud solutions for retailers that realize smart shopping Cloud Service Retailers (Product control, Saving energy) Customer (Individual recommend) -Group Recommendations -Conversion to 3D content -Contents for multi devices Promote comfortable living with various devices and professional system integration Cloud Services for Retailers: In-store purchases Self-service Kiosk Self checkout lane POS Digital Showcase, Digital Signage Cart POS Electronic bin card Shopping at stores Internet Shopping Shopping support
  • 17. 17 © 2011 Toshiba Corporation Cloud Services for the Home Provide users with multiple optimized services Heat solution Power solution Water solution Medical solution Transport solution Education Anti- crime AdvertisingShopping Enter- tainment Provide as a design service for a total smart life Optimize Optimize Cooperate Realize Home + EV total management: Visualize (power saving10%), DR(peak-shift 5-10%), charge and discharge of EV Smart meter HEMS Home Display Fuel Cell LED lighting PCS Solar Power Home Storage Battery Electric Vehicle Electricity Measuring Unit DR/Control Carbon-dioxide emission For example, automatic scheduling of EV charge-discharge reflecting road conditions and travel times
  • 18. 18 © 2011 Toshiba Corporation Mega-trends Forming the Near-future and the Smart Community Business Toshiba’s Total Solutions for Realizing Smart Communities Toshiba’s Approach to the Smart Community Business Global Business Structure Towards Town Planning for the Future
  • 19. 19 © 2011 Toshiba Corporation Experimental and Commercial Smart Community Over 20 projects worldwide, expanding smart community by each region’s problems Indiana, USA ①Energy Systems Network PJ New Mexico , USA ①Japan-US Smartgrid demonstration project ②Open collaborative research of environment technology by industry, academic, government ②Kawasaki station area PJ Yokohama ②Yokohama smart city PJ (YSCP) Ibaraki ③Ibaraki city smart community PJ ①New Energy System on Miyakojima PJ ①Miyakojima whole island EMS ①Miyakojima Kurimajima PJ Malaysia ②Green township concept Delhi-Mumbai Industrial Corridor ②Manesar PJ ②Haryana PJ Shaanxi , China ②Smart community technical demonstration project Tianjin, China ③Tenshin Eco city PJ Central-Eastern Europe(Bulgaria) ①Smart community business study PJ Lyon, France ②Smart community demonstration project ○ Smart home for Bristol city EU_PJ Italy ②Genova , Smart city Promotion plan ① Win smart grid for ACEA Distribuzione S.p.A, Rome * ①PJ for Isle of Wight Earthquake disaster reconstruction PJ ★ ★ ★ ★ [Project status] ★ :Commercial 4 :Investigate stage 4 None: FS, Experiment 12 England Miyakojima Kawasaki Haryana state, India ① : Smart grid type (incl. renewable energy) : 8 ② : Smart Community (Re-development): 9 ③ : Smart Community (New Development) : 2 * Acceptance of order by Ansaldo Trasmissione & Distribuzione S.p.A
  • 20. 20 © 2011 Toshiba Corporation Realize balance between installing large-scale renewable energy sources and stabilizing power supply (PV 4MW, Wind 4.2MW; approx. 15% of maximum demand) Example 1 Installation of New Energy System on Miyakojima, a Remote Island Peak cut, peak shift frequency control Current power generating system is expensive due to fuel costs Renewable energy Potential application in industrial park, as it reduces private power generation Extended to India Existing Gas Turbine Power Plant 15,000kW Existing Themal 19,000kW (Miyako) 40,000kW (Miyako II) Existing Wind Power Plant 900kW x 4 600kW x 1 Solar Power Plant 4MW Center Control Unit Battery Storage Device 4MW Battery Storage Device 200kW Consumer Simulated Consumer Cut fuel costs by reducing or stopping thermal generation
  • 21. 21 © 2011 Toshiba Corporation Example 2 Yokohama Smart City Project (YSCP) Construct a society aiming to cut CO2 emissions by 30% (*1) Wide area energy management and demand response (DR) Scale CEMS:Community Energy Management System BEMS:Building Energy Management System HEMS:Home Energy Management System SCADA:Supervisory Control And Data Acquisition Business Potential Evaluation HEMS (4,000 houses) -10% CO2 reduction by visualization, 10% CO2 reduction by DR, total of 20% CO2 reduction (*2) - First DR for mansions at “Park Homes Okurayama” BEMS(160,000,000sqm) - 15% CO2 reduction by smart BEMS (*2) - 5% improvement by building management (integrated BEMS) (*2) EV (2,000 sets) - 30% CO2 reduction per set (*4) ☆ Smart city expo 2011 Urban City Award *1 Reduction target compared to Yokohama city action guideline FY2004 *2 Cut target before and after installing system *3 Mitsui Fudosan Residential Co.,Ltd. *4 Estimation reflecting life cycle Population: about 420,000 people (about 170,000 households) Space: about 60 km2 Area: Minato Mirai area, Kohoku new town, Kanazawa Green Valley Investment Recovery HEMS = 3 years BEMS = 5 years
  • 22. 22 © 2011 Toshiba Corporation Area: Lyon Confluence redevelopment area Example 3 Lyon Project, France Save energy 25% + Generate energy (Solar: 15%, Cogeneration: 83%) Generate more energy than is consumed Zero-emissions by use of renewable energy and sharing EV Visualize use in project area: homes, buildings and traffic Start demonstration Project from January, 2012 Collaboration Achieve targets 5 years ahead of the EU’s 20-20-20 Plan* * A target agreed among EU countries to reduce greenhouse gases by 20%, improve energy efficiency by 20% , and achieve renewable energy use of 20% by 2020, against 1990. Optimize solar power generation to bring EV into the community EV Charge Station (Charge, Control)EV Car sharing (Charge, Schedule Optimization) Solar Power Plant Energy monitor for homeSmart Battery Solar Power Plant Energy monitor for condominiums InformationPowerSmart meter Building Meter Data ControlEnergy Management System Community Management System Distribution System Solar Power Plant
  • 23. 23 © 2011 Toshiba Corporation Plan a disaster-resistant and safe town Reconstruct, not get stuck in "restoration" Construct advanced community that solves the problem of modern society an optimistic town with state-of-the-art technology Develop disaster resistance and cultivate future towns Produce a new society by early promotion of renewable energy create a smart living environment by housing relocation Create hometown Iwate Sanriku which protects life and coexists with the sea and the land Secure safety, rebuild livelihoods, restore employment Symbiosis with the environment through harnessing resources such as biomass c 2011 Toshiba Corporation Example 4 Actions to Revive Towns 1 “Industrial development and job creation” “Environmental harmony / cyclical form” Optimal smart communities blended with local characteristic are proposed. Iwate Prefecture Miyagi Prefecture Fukushima Prefecture
  • 24. 24 © 2011 Toshiba Corporation C h a r g e E l e c t r i c d i s c h a r g e System stabilizati on Photovolt aics P o w e r g e n e r a t i o n C h a r g e E l e c t r i c d i s c h a r g e E l e c t r i c p o w e r s u p p l y E l e c t r i c it y d e m a n d P o w e r g e n e r a t i o nElectric network Share power supply system Electric vehicle (EV) Sewage treatment equipment Smart house Methane fermentation by mixed processing of sludge and a kitchen garbage Sew er Wate r for vege table traini ng Photovoltaic solar cell Water network N a k a m iz u Sewer Gas engine power generation Accumul ation-of- electricity place Wind power genera tion Collecti on heat of solar heat Plant factory Factory waste heat boiler Heat drive type Heat pump Thermal cracking process Heat network Unused energy power generation 熱 電 O R C Car bid e Electric drive type Heat pump Po wer gen erat ion Nanoca rbon A high-tech material is made from wood quality, and it is industry application. Nakami zu Waterw orks Wood quality Bioma ss Advanc ed Eco Factory Raw sludg e Adva nced proc essin g (resu rgent wate r) Stora ge batte ry Example 5 Actions to Revive Towns 2 Highway (multiplex defense) Harbor facilities Scho ol Factory Admini stratio n institut ion Transfer Residential zone Relocate community to higher land Hospital Farmland Farmland A town built with hope that incorporates state-of-the-art technology (Miyagi prefecture) Optimal Smart Community Proposal with Local Characteristics A town in symbiosis with the environment through use of biomass resources (Iwate prefecture) Artificial rock Ratio of renewable energy use in the project area 2010: 25% → 2015: 45% To Reconstruct a community with improved lifelines, where people can sustain life for 3 days in the designated area after a disaster
  • 25. 25 © 2011 Toshiba Corporation Realize new business by using difference of power selling price and clean energy sources - Investment recovery within 10 years with a 15 cent margin on power selling price and a storage battery price of $500 per kWh - Charge Maximize Profit Power sales trend EV maker Discharge Charge at night, sell in the daytime → increase profit Increase Sales Power generation trend 25 20 15 10 5 500 1000 1500 2000 0 4 8 12 16 20 初期投資 回収年 売電価格差 (セント) 蓄電池単価 (ドル/kWh) Reduce capital investment by reusing EV battery Charge with cheap wind energy at night Energy for Sales + Capital Investment - ←Sell renewable energy during daytime ← ← North America Energy Systems Network (ESN) Project Examples of Business Models 1 Energy Management effective use of vehicle batteries Re-use market Inexpensive rechargeable battery Large-scale wind power generation Time to recoup initial investment Margin on power selling price (cents) Storage battery price ( $/kWh)Operating cost
  • 26. 26 © 2011 Toshiba Corporation School NH8 Substation (66kV) Substation (220kV) Substation (66kV) Power supply from gridOffices Hotels Hospital Data & Security Centre Commercial Area Residential Area Solar Generation Solar Generation Solar Generation Water Treatment Plant Sewage Treatme nt Plant Energy Management Center Micro-Grid Industrial Area Co-Generation System Heat Supply Communication Network Security Area Logistics Hub MRT EV Circuit Bus Co-Generation System Co-Generation Syste m Co-Generation System Industrial Area Power Supply from gird Grid Power Supply Create smart community covering all of Manesar 30% reduction in cost of off grid power; 60% reduction in CO2 by eliminating boiler and using cogeneration; 60% reduction in water demand by reuse of water ※EMS = Energy Management System Capital investment in off grid equipment Power generation cost for current industrial park Operating cost Electricity cost for general users Cost of Electricity (Utility) Electricity cost with Smart Industrial park Current Situation Heat supply Combination Use discount Common equipment Use discount Examples of Business Models 2 Build Smart Communities Through Redevelopment India: Delhi-Mumbai Industrial Corridor, Manesar Project Cogeneration realizes a low carbon industrial complex with reliable power supply Energy Charge of Cogeneration Operator
  • 27. 27 © 2011 Toshiba Corporation Tianjin TEDA1x1 project Implement growth model in cooperation with business developer + - New Business Opportunities VS Operation Cost Examples of Business Models 3 Build Smart Communities Through New Developments ESCO Business Increase community value by attracting enterprises, creating jobs, increasing population and activating the local economy ・ low carbon society ・ Increase corporate profit by saving energy and reducing utility costs Tax revenues Tax revenues Community value Community value Construction investment Construction investment Smart Industrial Complex Current industrial park Investment in Smart Community and Smart Service businesses in construction * TEDA: Tianjin Economic-Technological Development Area TEDA Nangang industrial zone recycling economy, public project garden Source: TEDA homepage
  • 28. 28 © 2011 Toshiba Corporation Mega-trends Forming the Near-future and the Smart Community Business Toshiba’s Total Solutions for Realizing Smart Communities Toshiba’s Approach to the Smart Community Business Global Business Structure Towards Town Planning for the Future
  • 29. 29 © 2011 Toshiba Corporation Transform the Business Structure from Analysis to Synthesis Develop new solutions to meet mega-trends Alliance Partners Electricity Water Transport- ation Health Buildings and homes Provide best mix of tailor-made solutions Broad solutions and knowhow from analytical approach Synthesis (composition) Complementary technology (Town planning, Smart technology) Toshiba Group Toshiba TEC Toshiba Elevators & Building Systems Toshiba Solutions Toshiba Medical Systems Toshiba Lighting & Technology Toshiba Carrier : Comfortable individuals and Sustainable community Cloud Creative DNA to support rich life Basic infrastructure ICT x Control technology x Sensing technology = Comprehensive engineering technology Collaboration for Constructing a Total Solutions Structure
  • 30. 30 © 2011 Toshiba Corporation Further Enhancement of Cloud Business Platform Accumulated Data Common platform for application services Common framework: customer management platform, multi-language, application platform, security, collective knowledge processing, etc. ICT Cloud Platform Formulation of global cloud services contribute to further development of smart community Accelerating Meta Cloud Enhancing ICT Cloud Platform Digital signage Home・Health care・ Education BtoC ・Toshiba Places Office・ Distribution services Social infrastructure MFPTablet PC POS IP Phone ・Home care solutions ・HEMS (Visualization, Equipment control) ・IT classroom ・School administration support services ・Retailer community services ・Unified communication ・Document solution Heating Solutions Home Solutions Building Solutions Electric SolutionsWater Solutions Medical Solutions Transport Soluti ons
  • 31. 31 © 2011 Toshiba Corporation Integrate Group-wide ICT and cloud solution services Products, Components Control Systems Information, Cloud services Home Appliances Group Digital Products Group Infrastructure Systems Group Power Systems Company Social Infrastructure Systems Company Toshiba Medical Systems Corporation Toshiba Elevator and Building Systems Corporation Smart Community Div. Electronic Devices Group Cloud Solution Div. (new) Toshiba Solutions Corporation ICT, Cloud solution Reinforce Smart Community Business Structure: Jan. 1, 2011
  • 32. 32 © 2011 Toshiba Corporation Landis+Gyr Acquisition and Operation Acquired: July 29 Purchase price: $2.3Billion Promote “local-fit” business in four regional markets Toshiba 60% 40% The Innovation Network Corporation of Japan (INCJ) L+G board Landis+Gyr AG EMEA Asia-PacificN.Am S.Am Holding Co. EMEA S.Am Sales $1.533Bln (2010) N.Am Asia- Pacific 34% 45% 7% 14%
  • 33. 33 © 2011 Toshiba Corporation Purpose of Acquisition 1: Synergy with Toshiba’s T&D business Toshiba T&D Storage Battery muEMS Power distribution automation Landis+Gyr Smart meters Meter data management system *1 GIS: Gas Insulated Switchgear, *3 North American market share of a Landis+Gyr Affiliate *2 MVSG: Middle Voltage Switchgear MVSG※2GIS※1 Relay 34% 19% ※3 Market Share TransformerPV power generation Home Photovoltaics Together, both companies cover Smart Grid components
  • 34. 34 © 2011 Toshiba Corporation North America South America Asia-Pacific EMEA Purpose of Acquisition 2:Utilize Landis+Gyr’s Global Presence Landis+Gyr’s hubs and major customers E.ON (Europe) British Gas (UK) ERDF (France) ACEA (Italy) City Power Johannesburg (South Africa) etc. SP Ausnet (Australia) Ausgrid (Australia) MGVCL (India) State Grid Corporation of China (China) etc. R&D Center Mass production Factory Assembly Factory Sales Office Oncor (US) AEP (US) PSE (US) Hydro Quebec (Canada) etc. Rede Group (Brazil) AMPLA (Brazil) LIGHT (Brazil) Copel (Brazil) etc. A global presence, in over 30 countries with more than 8,000 corporate customers ⇒ Promote Smart Grid system to current customers
  • 35. 35 © 2011 Toshiba Corporation Example: Synergy from the Acquisition Smart Grid system for Italy’s ACEA photovoltaic power supply for electric vehicle charge stand ACEA Control room: Electric power system Communication network Demonstration PJ by Toshiba and L+G Linked with existing supervision and control system L+G supply Toshiba supply Photovoltaic Raffinerie Substation Smart meter Charge Stand Storage Battery Smart Inverter Smart meter Smart meter muEMS Electric power Communication line muEMS Smart meter PV Storage battery Charge stand muEMS Smart meter PV Storage battery Charge stand muEMS Smart meter PV Storage battery Charge stand Plan to expand to 70 locations Deployment Supply of Landis+Gyr's smart meters and Toshiba’s related products (photovoltaics, storage batteries (SCiB), charge stands, muEMS, etc.) for ACEA’s Smart Grid demonstration PJ.
  • 36. 36 © 2011 Toshiba Corporation EBIT・・・Earnings Before Interests and Taxes One-stop Solution increases in both sales and profit Current Investment US$1,620M 0 1,000 500 2,000 2,500 3,000 1,500 3,500 2011 2013 2015 2017 2019 2021 2023 (Unit: US$M) EBI T 2011 2013 2015 2017 2019 2021 0 2,000 1,000 3,000 4,000 5,000 6,000 Sales EBIT Sales 200 400 600 800 Utility Needs FDIR*1 + Distribution Automation DLC*2 + HEMS BEMS+ BEMS Landis+Gyr Toshiba Utility Needs Local metering Utilize Landis+Gyr’s Bases *1 FDIR : Fault-Detection, Fault-Isolation, and Recovery *2 DLC: Direct Load Control Realize Synergy etc…. Recovery of Investment Sales and operating profit plan, excluding Toshiba’s existing businesses Shorten 9 years initial plan to 7 years by realizing synergies
  • 37. 37 © 2011 Toshiba Corporation Targets of Smart Community Business Conventional town planning Smart community town planning Operation and Management Plan and Design Provide total solutions from planning to construction and operation management In cooperation with developers and consultants, propose smarter way from master plan to detailed design Construct infrastructure including energy supply, transport, health, water, buildings, homes, etc. ICT supports advanced operation and management Business cycle Deliver equipment for energy supply, transportation, health, water, buildings, homes, etc. :Outside of Japan :Japan 2015年 9,000億円 FY2015 900 billion yen about 400 billion yen at present Construction
  • 38. 38 © 2011 Toshiba Corporation Mega-trends Forming the Near-future and the Smart Community Business Toshiba’s Total Solutions for Realizing Smart Communities Toshiba’s Approach to the Smart Community Business Global Business Structure Towards Town Planning for the Future
  • 39. 39 © 2011 Toshiba Corporation Towards the Future of Urban Development Establish business model Strategic alliances Standardization Reduce cost by mass production Expand private sector projects Funding Promote strategic alliances Develop business from EPC to service Technology validation Profitability verification Redevelopment New development Restore Now 2STEP 3STEP Deploy commercialized business globally Promotion by creating optimal consortiums Verified and accumulated through demonstration PJ 1STEP
  • 40. 40 © 2011 Toshiba Corporation