Toshiba’s Technology Strategy pressure sensors, RIG (rate integrating gyroscope), and ULP gyro © 2018 Toshiba Corporation 3 Research& Development Policy Research & Development Investment

© 2018 Toshiba Corporation

Dr. Shiro SaitoCorporate Executive Vice PresidentToshiba CorporationNovember 22, 2018

Toshiba’s Technology Strategy

1© 2018 Toshiba Corporation

東芝が目指す姿

×

We turn on the promise of a new day

PhysicalCyberStrengths in digital transformation for industry

Strengths nourished in manufacturing


Toshiba Group’s Vision

2018 2023 2028Secure core earning power,

Grow with technology

Help solve social issues

Maximize enterprise valueWorld’s

Leading CPS

Technology

Company

Toshiba Next Plan

2030

Urbanization, Automation,

Renewable energy,

Edge rich devices,*2

AI and digital solutions,

Batteries, Power electronics,

Precision medicine

Evolution

Incubation

Infrastructure

Energy

Storage & Electronic Devices

Industrial ICT solution

R&D

Become world’s leading CPS*1 technology company,

ensure profitability by implementing the Toshiba Next Plan

*1 CPS(Cyber Physical Systems): CPS collect data from the physical world to be analyzed and processed using digital

technology. CPS create value through a constant feedback loop between the cyber and physical worlds.

*2 Devices that use sensing technology such as LiDAR, Spin MEMS, hydrogen

sensors, pressure sensors, RIG (rate integrating gyroscope), and ULP gyro


Research & Development Policy

Research & Development Investment and StructureIn Conclusion

Contents0102030405

Technologies that Differentiate Toshiba’s CPSExamples of Toshiba’s CPS


1. Cyber Physical Systems（CPS）2. To become a CPS Technology Company3. Research & Development Policy



Cyber Physical Systems（CPS）CPS creates value by collecting data at the physical world, recognizing/analyzing that with digital technology, and giving feedback to the physical world

Cyber

PhysicalValue creation

ControlOptimize and PlanAnalyze and PredictRecognize and Understand

Sensing


Recognize and Understand

To Become a CPS Technology CompanyRelationships with customers in various business domains built through products are valuable assets

Cyber

PhysicalValue creation

Sensing ControlOptimize and PlanAnalyze and Predict

Abundant assets in business domains

AI & digital technologies unique to Toshiba

Core components with overwhelming performance

Transmission & Distribution Buildings & Offices Industry

Devices and storage Telecommunications Automobiles Logistics Medicine

Public・Transportation・BroadcastingEnergy


To Become a CPS Technology CompanyRelationships with customers in different business domains built through products are important assets

Mature markets Growth markets

Market

leader or

runner up

Fourth or

lower in

market

Market growth

Co

mp

etitiv

en

ess

Mobile HDD

Thermal power (construction)

Industrial motors

PV and Wind power HVAC (overseas)

Electric transformer

Thermal power (service)

Rail(domestic)

HVAC (domestic)

Nuclear

Water systems

Automation system

Elevators (domestic)

Power semiconductors

Renewable energy

ICT solutions Hydro power

System LSI

Batteries

Nearline HDD

Lighting

Parts and raw materialsSocial systems*1

Electronic wave products

*1 Social systems, power distribution, broadcasting systems,

telecommunications, road systems

*2 Nearline HDD: Large capacity HDD for data centers

Discrete industrial applications

Elevators (overseas)

Rail (overseas)

Automotive motors

*2

*Retail & printing businesses are

not included



Towards CPS technology company

Creating original CPS by competitive components and AI & IoT technologiesResolve social issues and maximize enterprise value through technology

Further strengthen components technologiesbased on abundant assets in business domains

Develop technologies that improve customer valuethrough digitization based on AI & IoT technologies

Create cutting-edge technologies to solve social issues that will emerge in the future

- Toshiba Analytics AI SATLYS™ - IoT solution for power plants - VPP - Digital substation- Demand forecasting - Image segmentation - Structure health monitoring- Wireless Multi-hop Video Transmission

- Heavy-ion therapy solution - Biodegradable liposome- AI hardware - Quantum branching machines - Quantum cryptographic communication

- SCiB™ Rechargeable battery - Power electronics - Large capacity Nearline HDD- Supercritical CO2 cycle power generation system - Railway systems - Automation/Robotics- Semiconductors for automobiles - Hydrogen energy


Technologies that Differentiate Toshiba’s CPS1. Component technology (Policy 1)2. Digital & AI technology (Policy 2)3. Cutting-edge technology (Policy 3)


中長期成長に向けた技術戦略① コンポーネント技術のさらなる強化② AI・IoT技術をベースとしたデジタル化の開発③ 先端技術の創出

- Toshiba Analytics AI SATLYS™


Create cutting-edge technologies to solve social issues that will emerge in the future- Heavy-ion therapy solution - Biodegradable liposome- AI hardware - Quantum cryptographic communication

- SCiB™ Rechargeable battery - Power electronics - Semiconductors for automobiles - Large capacity Nearline HDD - Supercritical CO2 cycle power generation system

Develop technologies that improve customer value through digitization based on AI & IoT technologies









Safety

Low TemperatureOperation

Long LifeRapid Charging

High Input& Output

200km 320km

LTO*1Anode(current SCiBTM)

SCiB™ Rechargeable BatteryFurther high capacity, high output, high temperature durability to respond to potential growth markets & needs

〜400km

Further high capacity and high outputto respond to potential growth markets & needsFocus on markets where the SCiBTM’s characteristics of rapid charging, safety and long life are attractive

High output(for ISS/HEV)

High capacity(for EV/PHEV)

Nanofiber film formed directly on electrode with electrospinning technology. Thinner film and higher porosity result in higher output and capacity

Separator-free Next-generationanode material

NTO*2Anode Composite solid electrolyte

Bipolar structure

320kmRange（6mins rapid charge）*3：〜400km

Automotive(HEV, Commercial vehicle, etc.) Industrial (railways, AGV, etc. )Applications*1： Lithium Titanium Oxide*2： Niobium Titanium Oxide*3： A compact EV with a 20kWh for LTO or a 32kWh for NTO in JC08 test cycle

Higher capacity by niobium titanium oxide anode results in 1.5-times drive range of current SCiB™Electrodeand Nanofiber film

Electrode


Power ElectronicsIntegrated development from device to equipmentLow conduction and switching loss semiconductors improve efficiency and reduce energy consumption of equipment and systems

Power devicesDevices Equipment System

Next generation Power Devices(SiC, GaN)

Power electronics controls Industrial equipment Mobility Power generation/Transmission/Distribution

Create differentiation technologies, from properties of materials to application in circuits, and take lead in efficiency and miniaturization of power convertersMOSFET: Metal-Oxide-Semiconductor Field-Effect TransistorIEGT: Injection Enhanced Gate Transistor

High precision materials processing technology Developing low conduction and switching loss device structures Circuit and control technology that maximizes device performance

● GaN-MOSFET: Industry’s topclass threshold voltage stability*3

● SiC-MOSFET: Original process reduces channel resistance by 40%*2

● Industry’s top class*1 of low-on-resistance MOSFETs

● IEGTs with low loss and wide safe operating area for transmission and distribution power grid

Power DevicesSi Power Devices

*1: in 100V-class MOSFET as of October 2018, Toshiba Electronic Devices & Storage Corporation*2: S. Asaba et al., Int. Conf. on Silicon Carbide and Related Materials 2017, 33.3*3: T. Yonehara et al., Int. Electron Devices Meeting 2017, MO.C2.1


Semiconductors for automobiles Support automated driving by high resolution image recognition processor and high sensitivity distance sensor

Enhanced night time recognition performance with original recognition algorithm Develop advanced recognition technology based on deep learning, in cooperation with Denso Corporation

SiPM*2 light receiving element and measurement logic circuit enable multi-channel and higher sensitivity Achieve longer range measurement (200m) with high level distance measurement accuracy (0.125%)

*1: Light Detection and Ranging *2:Silicon Photo-Multiplier

ViscontiTMImage recognition processor LiDAR *1Distance sensorSign recognition Traffic signal recognition

Cyclist detection

Auto high beam control

Pedestrian collision warning (day and night)

Vehicle collision warning(day and night)General object detection

Lane departure warning

Distance (near red blue far)

Image by data receiving light


Large Capacity Nearline HDD for Data Centers見えないものをセンシングEvolution of magnetic recording density to support higher capacity demand from mega data centers

Product Roadmap

10TB 14TBAir He He HeMAMR 18TB16TB

2017 2018

*1： Form Factor: 3.5-inch and 26.1mm-height. Source: Toshiba Electronic Devices & Storage Corporation, as of December 2017.*2： Spin Torque Oscillator

Next generation higher density technology

*２

World's largest capacity*1and low power consumption14TB nearline HDD Stabilizing heads and rotation of disks by Helium sealing Toshiba’s innovative mechanical design to realize 9-disk inside

Technology to boost disk recording capacity using microwave oscillators on magnetic heads

MAMR(Microwave Assisted Magnetic Recording)


Gas turbine and Combustor forSupercritical CO2 Cycle Thermal Power Plant SystemDevelop key components for decarbonized and near-zero emission thermal power plant system※

(Courtesy of NET Power and McDermott)

Future outlook

Supercritical CO2 cycle thermal power plant system*World’s first supercritical CO2combustor

Center is the flame inside the combustor

Compact and high efficiency super critical CO2 turbine

Testing at demonstration plant

25MWe demonstration plant Texas, U.S.A

〜 Joint development with NET Power, Exelon Generation and McDermott 〜

・Realization of near-full carbon capture without additional carbon dioxide capture system・Generate power by rotating turbine using CO2

* “Allam Cycle” developed by 8 Rivers Capital

Toshiba’s target

Compared with conventional thermal power plant・No emission of nitrogen oxides・CO2 is captured at high-pressure and high-purity, and can be used for enhanced oil recovery (EOR) and chemical plants









1967Demonstration of automatic postal code reading and sorting device

AI to solve on-site essential problems

Accumulation of long-standing AI technologiesAnalysis Prediction Optimal planning

Data-rich work sites• Classification of defects in the product• Analysis of deteriorated infrastructure*1

• In-vehicle image recognition• Object recognition for logistics• Person tracking for surveillancecameras• Image and voice recognition for operation support• Tumor-tracking for heavy-ion therapy

• Path planning for autonomous driving• Automatic speech dialogue• Action decision for robots

• Failure prognostic of equipment• Forecast of power demand • Plant operation plan

• Train operation plan• Infrastructure maintenance plan

Situationswhere humans and AI co-exist

Recognition Decision & Control Interaction

Realizes necessary functions from data acquisition from the physical world to providing feedbacks to the physical world

*1: This work was supported by the New Energy and Industrial Technology Development Organization (NEDO) of Japan.*2: https://www.toshiba.co.jp/about/press/2017_11/pr_j0801.htm (2017 / Sponsorship: Tokyo Electric Power Company Holdings, Inc.)

1st prize in the electricity load forecasting technology contest out of about 100 teams*2time

ABCD20

30

40

50

0 2 4 6 8 10 12 14 16 18 20 22

[MW]

[H]


Gold Medal in the Japanese Society for Artificial Intelligence’s Field Innovation Award Details are to be announced at ICMLA2018 in December 2018

R&D leveraging open innovation R&D aligned with on-site problems

R&D Direction of AI Technologies見えないものをセンシングEnhancement through on-site application and open innovationFrom AI with manual intervention to self-learning AI

DNN compaction for high speed processing in edge devicesAutomatic classification of tendency to defect occurrence through unsupervised learning

Product failure analysis based on data mining

PartnersJoint researchField

Domain knowledge

Enhancement at business fields withlarge amounts of data

Supervised learning Semi-supervised learning Unsupervised learningReinforcement learning

Manual design of DNN structure Automatic optimization of DNN structure

Toshiba’s AI

AI with manual interventionSelf-learningAI

Enhancement at cutting-edge research laboratories

DNN: Deep Neural Network

Joint research at the RIKEN AIP*1-TOSHIBA Collaboration Center

*1: RIKEN Center for Advanced Intelligence Project


Standardized AI analysis knowledge verified on site Delivered in different forms such as SaaS and micro-services

Toshiba Analytics AI見えないものをセンシング技術戦略Use knowledge from Toshiba’s wide business domains for AI inference serviceIntegrate knowledge from experience for standardization and managed services

Features Big data analysis with over tens of thousands of dimensions Realize highly accurate inference with limited learning data (automatic generation of learning data with AI) Intuitive explanation of abnormal factors (visualization, AI with high level explanation) For JFE Engineering CorporationAI detects abnormal combustion state from combustion images at waste treatment facilities

Joint research with Chiba University HospitalAI learns the knowledge of skilled pathologists to overcome a shortage of pathologists

Combustion image analysis

Detection of cancer cells in pathology slide









Cutting-edge technologies to realize Precision Medicine Deepen technologies for very early detection and individualized treatment to contribute to improving cancer cure rates

Micro RNA

Live cell visualization

LiposomeHeavy-Ion Therapy

Next generation sequenceJaponica Array*1

Toshiba owns core technologies through all phases from prevention to treatment

Examination TreatmentPrevention Diagnostics

*1 Collaboration with Tohoku University

Minimally invasive treatmentLiquid cytology Cell diagnosisGenome analysis

Realiza

tion of P

recisio

n Medi

cine


Heavy-Ion Therapy TechnologyDownsize the equipment and realize precise treatmentusing superconductivity and Image recognition technologiesto reduce burden on patients and increase treatment opportunities

The world’s first adaption of superconducting technology for the rotating gantry(Delivered to NIRS*1. Orders received from Yamagata University Hospital and YonseiUniversity Health System in South Korea)

* 1 N a t i o n a l I n s t i t u t e o f R a d i o l o g i c a l S c i e n c e s , N a t i o n a l I n s t i t u t e f o r Q u a n t u m a n d R a d i o l o g i c a l S c i e n c e a n d T e c h n o l o g y

40% volume reduction comparing to conventional one

Successfully downsized the rotating gantry by use of superconducting magnets and improved scanning electromagnets

Track tumor motion and secure precise delivery without implantation of fiducial markers by use of Image recognition technology

Reduce impact on healthy tissue by matching the peak energy of the heavy ion beam to cancerous cells

Education, Culture, Sports, Science Minister's Commendation Science and Technology Award in 2017

More compact and light rotating gantry Tumor tracking without fiducial markers

X-ray Heavy-Ion

Go through Stop


GeneNucleus

Cell

Presented at the 57th annual autumn meeting of the Japanese society of clinical cytology

Biodegradative liposomesSafe and highly efficient delivery of desired gene to cells in precision medicine that realizes higher cancer cure rates

98% success in delivering genes to cellsTime-lapse imaging

Toshiba’s original nano-sized lipid carrier that delivers genes to cells with high efficiency

■ Gene delivery flow

1. Enter into cell

2. Liposome degradatedinside cell

100~200nm 100nm

microscopicimage of liposome

Liposome

3. Expression ofintroduced gene

Visualize gene activity of breast cancer cell by converting it into light

Liposome

24H later 48H laterConvert gene activity into light and succeed in observing live cells

DNA(Genes)Biodegradativelipid


AI HardwareUltra low-power AI chip meeting the demands for processing large amount of sensing data at the edges

Joint research with Stanford University

Neural network modelOscillation circuit

Perform multiply-accumulate operation by new calculation method

Conventional structure Proposed analog structure

Product-sumoperation

AddMult Mem

FF

CounterLess power used for Product-sum operation for DNN (inference processing)

Reduced power consumption by 88%, compared to conventional chipReal time AI processing even with battery power Prototype board and chip (28nm CMOS technology)

Input

Weight


Quantum cryptographic communicationProtecting security of confidential information, such as genome medical data transmitted via networks

Joint research with the University of Cambridge

Principles

Achieved key distribution speed of 10.2Mbpsand improved Toshiba’s own world’s record (tested with a 7km installed fiber in a field environment)

Transmit photons and share encryption keys (Use principles of quantum physics to detect eavesdropping; only secure keys can be used)Encrypt confidential information by one-time-pad cipher using encryption keys and transmit the encrypted information

Proposed a new method for achieving quantum key distribution over 500km, a new world record

A company B company


1. Stabilized energy supply and demand2. Improved maintenance of railways3. Automated logistics centered on robots

Examples of Toshiba’s CPS


Stabilized Energy Supply and Demand

PV &Wind power ElectricVehicles Hydrogen

Virtual Power Plant (VPP)

Utilize characteristics of each Distributed Energy ResourceHarness extensive experience & knowledge of equipmentApply prediction & optimization technologies

Power saving(Negawatt)

Prediction, forecasting & optimization technologies

Optimal controlIoT Integration

Cyber

Physical

OptimizationPortfolio Optimization

Demand predictionModelling

Reduction

targetProbability

ＡＢ

Customer

Ｃ

…

Battery Storage( Industry, Residential)

Feature extraction


Improved maintenance of railways

Hybrid locomotive

Rechargeable battery(World’s first acquisition of European safety certificationfor a railway system using rechargeable battery)

Analyze

Contribute to improvement of locomotive maintenance with control technology based on deep knowledge of features of rechargeable batteries, motors, etc. and operational data analysis technology

Maintenance plan

Permanent MagnetSynchronous Motor

Cyber

Physical


Automated logistics centered on robotsContribute to automation of logistics solutions with high processing performance based on object recognition, motion planning, and control at edge and link them with higher level data

Recognition Direction

World Robot Summit: Overall victory in the robot competition received the Minister of Economy, Trade and Industry award (2018/10)

Picking of atypical objectRecognition

Sensing(image, location, distance, force, etc. )

Grip and motion planning

Robot control

Cyber

Physical


Research & Development Investment and Structure1. R&D investment2. Transformation of operating processes3. R&D structure4. Role of each R&D organization5. Open innovation6. New business incubation


Energy systemFocus on growth fields such as renewable energy technology (e.g. PV, Wind power, VPP*2), asset management solutions and environmentally friendly products (supercritical CO2 power cycle etc.)Infrastructure systemFocus on growth fields such as SCiB™, power electronics, roboticsStorage and deviceFocus investment on the development of power devices and large capacity HDD for data centerIndustrial ICTFocus on development for business model transformation such as SPINEX™ , RECAIUS™ and SATLYS ™

R&D InvestmentAccelerate investments to support profit and medium- to long-term growth

R&D investment *1 Major R&D projectsTotal investment plan：JPY 930.0B (FY19-23)

■ Infrastructure System

■ Storage & Devices

■ Corporate & Others

■ Energy System

■ Retail & Printing

■ Industrial ICT

0

500

1,000

1,500

2,000

FY17 FY18 FY19 FY20 FY21 FY22 FY23*1 Excluding Toshiba Memory, *2 VPP: Virtual Power Plant

(Billion Yen)

200.0

150.0

100.0

50.0

0.0


Transformation of operating processes to improve earning powerOptimize the entire value chain from R&D to products

Manufacturing process optimization Maintenance process optimizationDesigning process optimization

On-site IoTManufacturing process IoTDigital engineering

Modularization CAE/DMU*1Managementstrategy ManufacturingSimulation VR/MR*2

*1: CAE: Computer Aided Engineering / DMU: Digital Mockup *2: VR: Virtual Reality / MR: Mixed Reality

Modularization/Standardization/IT

Specificationguidance andconfiguration

Manufacturing & Testing MaintenanceProcurementDevelopment/DesignPlanningMarketing

OperationSimulation

IoT Gateway

WorkerParts ProductsMachine

IoT IoT IoT


R&D StructureEstablish "Research & Development Div." to produce outstanding and fundamental common technologies by collecting expertise of individual corporate laboratories

Toshiba Corporation

Toshiba Energy Systems & Solutions Corp.Toshiba Infrastructure Systems & Solutions Corp.

Toshiba Tec Corp.

Toshiba Electronic Devices & Storage Corp.Toshiba Digital Solutions Corp.

Materials & Devices Division

Center For Semiconductor Research & DevelopmentSoftware & AI Technology Center

Energy Systems Research and Development CenterInfrastructure Systems Research and Development Center

Technology and engineering divisions

<Key group companies’R&D organizations>

Research & Development Div.Digital Transformation Strategy Acceleration Div.

Corporate Research & Development CenterCorporate Software Engineering & Technology CenterCorporate Manufacturing Engineering Center

Toshiba Research Europe Ltd.- Cambridge Research Laboratory- Telecommunications Research LaboratoryToshiba America Research Inc.Toshiba China R&D CenterToshiba Software (India) Pvt. Ltd.Toshiba Software Development (Vietnam) Co., Ltd.

<Overseas R&D organizations>

Industrial ICT Security Center


Role of Each R&D OrganizationBy pulling together the ranges of corporate labs for business processes and technologies,deliver technology solutions from research to manufacturing and maintenance

Research Development Design Production Preparation Manufacturing Installation Maintenance& Service

Toshiba Software (India) Pvt. Ltd.Toshiba Software Development (Vietnam) Co., Ltd.

Business unitstechnology divisions

Toshiba Research Europe Ltd. (Cambridge Research Lab., Telecommunications Research Lab.)

Toshiba China R&D Center

Open innovation

Business incubation

Toshiba Group business

Toshiba America Research Inc.

Corporate Software Engineering & Technology CenterCorporate Manufacturing Engineering Center

Corporate Research & Development Center

R&D organizations in business units（works labs）


Open InnovationEstablish overseas research sites for advanced technologies in the US, Europe and China, and accelerate R&D in cooperation with top universities and research institutes in Japan and overseas

Toshiba Software India

Stanford UniversityToshiba China R&D Center

Toshiba America Research

AI hardwaretechnology

University of OxfordUniversity of Cambridge

Voice recognitiontechnology Data analysistechnologyIndian Institute of Science Johns Hopkins University

AI hardware technologyNano deviceUniversity of BristolTelecommunicationstechnology

Precision MedicineCOI TohokuInnovative social implementationRIKENAccelerate R&D on “self-learning AI”

AI

Toshiba Research Europe

Machine learningHanoi University of Science and Technology

Software test technologyVietnam National University

Toshiba Software Development Vietnam


New business incubationIntroduce a new business creation mechanism that leverages our venture spirit

Internal technologyassets

Quickexaminationof customer valueVenture network

Business development strategy and promotionCVC* function (investment in venture businesses)

New business

Exploreexternaltechnology assets

Ideas

External resources, information, expert viewsAccelerated by synergies

R&DNew business seeds

Verify technology seeds

Market-in orientation

* CVC：Corporate Venture Capital


In conclusion


東芝が目指す姿

×

We turn on the promise of a new day

PhysicalCyberStrengths in digital transformation for industry

Strengths nourished in manufacturing


41© 20XX Toshiba XXX Corporation

Documents

Toshiba’s Technology Strategy pressure sensors, RIG (rate integrating gyroscope), and ULP gyro © 2018 Toshiba Corporation 3 Research& Development Policy Research & Development Investment