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King Street urges Toshiba to take full advantage of this historic opportunity and realize the extraordinary returns that would be generated by an accelerated and increased ¥1.1 trillion share buyback and the successful execution of the Toshiba Next Plan.

Accelerate the Share Buyback

Toshiba has yet to buy back any of its stock following its ¥700 billion commitment announced this past June. We are frustrated by this lack of progress, and cannot stress enough how critical it is that Toshiba begin implementing its buyback immediately. The sooner Toshiba buys back its stock, the greater Toshiba’s returns, given its current undervaluation. Any delay or inefficient implementation of the buyback will result in much higher purchase prices and materially impair shareholder returns.

To put the timing impact in context repurchasing shares at the September 27, 2018 levels could increase share prices 100% once the short-term initiatives are implemented and in excess of 240% longer-term assuming successful execution of the Toshiba Next Plan (see slide 22). These share price increases would be cut in half if the Company delays the share buyback until these measures have been materially initiated.

There are a number of methods that would accomplish the entire buyback in a timely manner, any of which would significantly increase Toshiba’s equity value. We believe an accelerated stock repurchase program (“ASR”) is the most effective mechanism, as it would reduce Toshiba’s shareholdings immediately in a single transaction achieve the lowest price (on a tax-adjusted basis) and minimize execution risks (see slides 19 and 112 - 114). Irrespective of the method chosen, it is imperative that Toshiba fully execute the buyback as quickly as possible to take advantage of the extraordinary returns available to it by investing in its own turnaround. We urge Toshiba to initiate and expedite the share buyback upon Board approval of the Company’s audited second quarter financials and the announcement of the Toshiba Next Plan, expected in November.