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43Seiko Epson Annual Report 2005
Net cash used in financing activities was ¥96,373 million, compared to ¥40,918 million in the
prior fiscal year. In the year under review, this was largely due to the net repayment of ¥91,322
million in short-term and long-term loans as operating cash flows greatly outweighed cash flows
from investing activities.
Due to these factors, there was a net decline of ¥30,279 million in cash and cash equivalents.
As of March 31, 2005, short-term bank loans and long-term debt totaled ¥394,797 million, compared
to ¥457,000 million a year ago. This was attributable to the repayment of loans discussed in cash
flows from financing activities, which offset an increase in bank loans from business integration in the
company’s LCD operations. Long-term debt, excluding the current portion, accounts for the major-
ity of Epson’s loans. As of March 31, 2005, long-term debt, excluding the current portion, amounted
to ¥259,919 million with a weighted-average interest rate of 1.33%. Almost all of these loans are
unsecured bank loans with maturities up to July 2011.
Epson has organized lines of credit with 13 banks totaling ¥80,000 million with the goal of enabling
it to procure funds with greater efficiency. As of March 31, 2005, none of this credit was drawn on.
In combination with cash and cash equivalents of ¥234,904 million at March 31, 2005, Epson be-
lieves that it has sufficient liquidity.
Financial Condition
Total assets as at March 31, 2005 were ¥1,297,790 million, compared to ¥1,206,491 million as at
March 31, 2004.
Current assets and fixed assets increased ¥37,543 million and ¥53,756 million, respectively. Current
assets increased largely atop of an increase in notes and accounts receivable, trade and inventories,
reflecting the business integration in LCD operations and other factors, which outweighed a decline
in cash and cash equivalents due to the repayment of loans. Likewise, property, plant and equip-
ment increased mainly as a result of the aforementioned business integration, as well as an increase
in capital investments.
Total liabilities as at March 31, 2005 were ¥798,263 million, compared to ¥789,582 million as at
March 31, 2004. Current liabilities increased ¥87,028 million, while long-term liabilities decreased by
¥78,347 million. Despite the repayment of short-term bank loans, the increase in current liabilities
was due mainly to an increase in the current portion of long-term debt scheduled for repayment
within one year and effects of the integration of LCD operations. The decrease in long-term liabilities
mainly reflected repayments.
Working capital, defined as current assets less current liabilities, was ¥242,111 million, compared
to ¥291,596 million as at March 31, 2004. This came as increases in notes and accounts receivable,
trade and inventories, and a decrease in short-term bank loans, were countered by a decline in cash
and cash equivalents, as well as increases in the current portion of long-term debt and accounts
payable, other.
The ratio of debt to total assets was 30.4% as at March 31, 2005, compared to 37.9% at the
previous fiscal year-end, and was primarily due to loan repayments.