TOSHIBA TEC CORPORATION

Business Details

Develops, manufactures, sells, and maintains POS systems for domestic and overseas markets, MFPs (for Domestic Market) (transferred in from April 2025), Auto-ID Systems (Domestic), and related products and services. Efforts are focused on expanding the solutions business utilizing the Global Retail Platform "ELERA," strengthening the recurring business, and expanding Multi-vendor Maintenance Services. The segment has multiple overseas subsidiaries, including Toshiba Global Commerce Solutions, and possesses a global customer base and sales/maintenance network.

Recent Overview

Domestic POS saw a substantial profit increase, but full-year operating profit fell 4% year on year due to the impact of tariffs on overseas POS in the first half

In FY2026 (ending March 2026), domestic market POS systems achieved higher sales and profit, driven by expanded sales of self-checkout systems, smart receipts, and payment terminals, along with revisions to product prices and maintenance service prices. On the other hand, overseas market POS systems saw a decline in first-half sales due to U.S. tariff measures, and full-year sales declined due to foreign exchange effects. Domestic MFPs saw lower sales due to customers holding back on purchases, but profit and loss improved. As a result, segment sales were ¥347,641 million (roughly flat year on year), and operating profit was ¥7,630 million (down 4% year on year). The forecast for FY2027 (ending March 2027) anticipates a substantial recovery, with sales of ¥372,000 million and operating profit of ¥13,000 million (margin of 3.5%).

Key Products

Growth Drivers

• Steady POS demand driven by the full-scale rollout of a large-scale project for domestic market POS systems (FY2027, ending March 2027)
• Improvement in recurring revenue and profitability through the expansion of solution services utilizing the Global Retail Platform "ELERA"
• Continued expansion of sales of self-checkout systems, smart receipts, and payment terminals in domestic market POS systems, and continuation of the effects of product price and maintenance service price revisions
• Accumulation of high-value-added service revenue through the expansion of Multi-vendor Maintenance Services (BPO)
• Expansion of the high-value-added solutions business through Generative AI Utilization Services and strategic partnerships
• Improvement in profit and loss in overseas market POS systems due to a partial recovery in customer investment appetite and responses to U.S. tariff measures (such as price revisions)

Risks

• Deterioration in sales and profit/loss of overseas market POS systems due to cost increases associated with U.S. tariff measures and delays in customer investment timing (risk of cost increases due to semiconductor and oil price hikes also continues)
• Uncertainty in the demand environment associated with price revisions (uncertainty regarding customer investment trends in the overseas retail market)
• Risk of a decrease in the yen-converted value of overseas sales due to exchange rate fluctuations (in the direction of yen appreciation) (forecast rates for the next fiscal year: USD ¥150, EUR ¥175)
• A challenging business environment amid continued intensifying competition with rival companies (price competition pressure continues both domestically and overseas)
• Risk of decreased sales of MFPs for the domestic market due to customers holding back on purchases and reduced print volumes
• Risk of a decrease in the number of label printers sold in Auto-ID Systems (Domestic)
• Suppression of customer capital expenditure due to deteriorating macro environment, including geopolitical risks and rising prices