Strong business franchise in a broad range of electronics markets, supported by its strong technological capabilities in electronic devices. Long-standing, leading market position in infrastructure-related businesses in Japan. The company's capital structure and cash flow are likely to remain consistent with the current rating level, despite continuing weakness in profitability. Good access to capital markets. High dependence on profits from NAND flash memory. In fiscal 2003 (ended March 31, 2004), Toshiba's operating margin after depreciation improved slightly to 2.3% (excluding gains from the transfer of part of its pension liabilities to the government) from 2.0% the previous year, recovering from a low of negative 2.1% in fiscal 2001. This upturn in profitability was driven by strong sales of NAND flash
