Epson 2011 Annual Report Download - page 23

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22
saw net sales decline.
Segment income in the electronic devices business segment increased. In addition to higher revenues, an
improved product mix, and lower fixed costs in the semiconductor business, segment income benefited from
lower costs associated with the small- and medium-sized displays business. Segment income was, however,
negatively impacted by factors such as yen appreciation, a worsening of the product mix in the quartz device
business, and HTPS panel price erosion.
As a result of the foregoing factors, full-year net sales in the electronic devices segment were ¥231,235 million
($2,780,938 thousand), down 6.8% from the prior year, while segment income was ¥5,569 million ($66,975
thousand) versus an operating loss of ¥9,266 million a year ago. Segment income in the same period last year,
recalculated using the accounting method applied this year, was ¥1,529 million.
Precision products
The precision products segment reported higher demand for IC handlers and robots accompanying a rebound in
corporate manufacturing. Sales of watches, meanwhile, also showed signs of rebounding, and the segment as a
whole posted higher net sales and, along with it, increased segment income.
As a result of the foregoing factors, full-year net sales in the precision products segment were ¥68,276 million
($821,118 thousand), up 18.2% from the prior year. Segment income was ¥3,307 million ($39,771 thousand),
compared to operating loss of ¥4,111 million in the year ago period. Segment loss in the same period last year,
recalculated using the accounting method applied this year, was ¥1,311 million.
Other
Full-year net sales in the “Other” segment were ¥1,279 million ($15,382 thousand), compared to ¥19,714 million
in the same period last year. Segment loss for the year was ¥286 million ($3,451 thousand), compared to an
operating loss of ¥6,669 million in the same period last year. The main reason for the decline in income is that
subsidiaries that provided internal services to Epson were dissolved and their functions transferred to various
Epson businesses in the previous fiscal year. Segment loss in the same period last year, recalculated using the
accounting method applied this year, was ¥100 million.
Adjustments
Segment loss was ¥46,032 million ($533,602 thousand). The loss was primarily due to the recording of research
and development expenses for basic research and new businesses that do not belong to a reporting segment, as
well as to the recording of selling, general and administrative expenses, largely comprised of Head Office
expenses. Segment loss in the same period last year, recalculated using the accounting method applied this year,
was ¥53,639 million.
(2) Cash Flow Performance
Net cash provided by operating activities during the year was ¥32,395 million ($389,597 thousand), compared to
¥56,542 million in the previous fiscal year. This decrease was due mainly to a ¥23,318 million decrease in notes
and accounts payable-trade accompanying repayment of things such as notes and accounts payable-trade and a
¥15,665 million ($188,394 thousand) increase in inventories due chiefly to a strategic build-up of product
inventory for the following year. On the other hand, income before income taxes and minority interests was
¥15,381 million ($184,978 thousand), depreciation and amortization totaled ¥41,159 million ($494,999
thousand), and notes and accounts receivable-trade decreased by ¥8,225 million ($98,917 thousand).
Net cash used in investing activities was ¥23,615 million ($284,004 thousand), compared to ¥43,203 million the
previous fiscal year. Comprising the bulk of this was ¥28,308 million ($340,444 thousand) in purchases of
property, plant, and equipment associated mainly with new products.
Net cash used in financing activities was ¥42,691 million ($513,421 thousand), compared to ¥41,087 million the
previous fiscal year. Most of this was used for repayment of loans.
As a result, cash and cash equivalents at end of period totaled ¥211,777 million ($2,546,927), compared to
¥254,590 million at the end of the previous fiscal year.
* Please refer to the following for historical information about Epson’ s financial results:
http://global.epson.com/IR/