TOSHIBA RFID TOUR 2008 Paul De Clerck Business Development Manager pdeclerck@toshibatec-eu.be

1. TOSHIBA RFID TOUR 2008 Paul De Clerck Business Development Manager pdeclerck@toshibatec-eu.be 1 /

2. Europe’s Largest RFID Implementation Project 2 /

3. TOSHIBA Europe GmbH Regensburg Operation • Founded: 1990 • Employees: 396 • European Operational Centre for PC products • EMEA Planning & Customization • FG-bulk Notebook Operation • up to 400.000 units / month • European Logistic Center • European Service Center • Product- and Software Development 3 /

4. Project Definition • Problem Statement • European market outlook is very positive • TRO cannot match market demands in 2006 and beyond • Factory warehouse bottleneck will keep sales expansion back • Current average daily output is 9.574 units/day • Bottleneck is most severe during the last week of each month: 40% of total throughput • 13% of monthly throughput during the final working day of each month ! 4 /

5. Project Definition - 2 • Goal/Objective statement • Increase throughput/day by 57% at the end of 06F • Keep headcount at current level • Increase booking throughput/day at I point from 9574 (05B) to 15000 units/day (06S) • Projected Business Benefit • Decreased booking cost/unit  about 300 k EUR / FY • Increased product availability • Metric • Throughput/day (shift) at i-point booking in PCs. 5 /

6. No space Project Overview FG Bulk Packing Area 36x Scan Pallet Transfer • I-point Area • - Changeover from packing operation to FG WH (ready for sales) • manual booking for every single unit • prestorage of FG pallets •  Hidden Factory & Bottleneck !!! FG - Warehouse 6 /

7. Analysis - RFID-Pilot RFID-Tags inside Pretty-Box glued on ACC-Box RFID-Gate with Antennas Test pallet Transportation from CFC to Warehouse Over RFID-Gate 7 /

8. Analysis & Improve – Result Summary 8 /

9. Current Solution Improve A Critical Business Problem and its Solution CFC No space CFC Additionalmanpower Waiting forbooking ContinuousFlow Transport RFID Gate No space Handling 1x Scanfor all Transport Duringtransport FG-WH Move palletto scan FG-WH 36x Scan Ready forstoring time saving process time consuming process 9 /

10. RFID Label Printer by Toshiba TEC RFID Label Positioning at Accessory Box RFID Booking Gate Improve Practical Realization – Process Flow Booking Control Terminal FG Packing 10 /

11. Layout after Improvement (RFID Implementation) FG Bulk Packing Area Pallet Transfer & RFID Booking Improvements I-point eliminated  eliminated Hidden Factory  eliminated Bottleneck  expanded WH storage place  streamlined process  automatic booking for every single unit FG - Warehouse 11 /

12. Improvements & Benefits • Hard Savings : 320k EUR /FY Booking Reliablity with RFID technology 100% 12 /

13. TOSHIBA’s Performance Status • Improvement of two contradictory metrics at the same time (Throughput& Headcount) • Implementation of total new technology (RFID) at Toshiba • Cross Company Cooperation with Toshiba TEC • Toshiba will be first Notebook vendor with RFID utilization • Competitive advantage by offering customers additional values with RFID • Logistic, WH & Sales processes at Customers • Customers Cost and Efficiency • Ready to implement special customers requested information into RFID label 13 /

14. Summary • TOSHIBA TEC is a Global Player • High Quality, Innovation and Customer Trust are Key Drivers for our Continuous Success • TOSHIBA TEC is the RFID Partner par excellence with real deals, ROI and references • The Regensburg RFID Installation is Europe’s largest, triggering new major business opportunities • Partnering to Accelerate Innovation is a Key Objective for TOSHIBA TEC 14 /

15. Thank you for your attention. 15 /