Epson 2012 Annual Report Download - page 27

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26
Minority interests in income for the period under review were ¥185 million, an increase of ¥14 million (8.6%)
compared to the previous period.
Net income
As a result of the foregoing, Epson posted net income of ¥5,032 million, a ¥5,207 million decrease (50.9%) from
the previous year.
(2) Liquidity and capital resources
Cash flow
Net cash provided by operating activities in the period under review was ¥26,678 million, down ¥5,716 million
from the previous period. Among the factors contributing to increased cash flow were a ¥28,141 million effect
from an increase in notes and accounts payable-trade. Conversely, among the factors contributing to the decrease
in cash flow were a ¥9,221 million effect from an increase in notes and accounts receivable-trade, a ¥10,533
million effect from a decrease in the provision for bonuses, a ¥6,207 million payment for loss on litigation, and a
¥6,061 million payment for business restructuring.
Net cash used in investing activities totaled ¥31,528 million, up ¥7,913 million from the previous period. While
the Company had ¥6,358 million in income from the transfer of a subsidiary, the increase in net cash used in
investing activities was primarily due to a ¥6,112 million increase in payments for acquisitions of intangible
assets and tangible property, plant and equipment, as well as a ¥1,940 million payment to acquire subsidiary
company shares.
Net cash used in financing activities totaled ¥57,406 million, up ¥14,714 million from the previous period. While
repayment of interest-bearing liabilities reduced expenditures by ¥6,230 million, total cash used in financing
activities increased chiefly due to a ¥20,412 million increase in expenditures due to a purchase of treasury stock.
Due to these factors, as of March 31, 2012, cash and cash equivalents at the end of the period stood at ¥150,029
million, a drop of ¥61,747 million from the previous fiscal year-end, giving Epson sufficient liquidity.
The combined total of short- and long-term loans payable was ¥138,812 million, a decrease of ¥41,910 million
compared to the previous period, owing to progress in repaying general interest-bearing liabilities.
Long-term loans payable [excluding the current portion] amount to ¥77,500 million as of March 31, 2012, at a
weighted average interest rate of 1.54% and with a repayment deadline of January 2017. These borrowings were
obtained as unsecured loans primarily from banks.
Financial condition
Total assets as of March 31, 2012 stood at ¥740,769 million, a decrease of ¥57,459 million from the previous
fiscal year-end. The main reason for the decrease in total assets is that the total of cash and deposits and
securities decreased by ¥59,713 million, mainly due to repayment of interest-bearing liabilities and the
acquisition of treasury stock.
Total liabilities as at March 31, 2012, were ¥492,628 million, down ¥34,792 million from the previous fiscal
year-end. While this decrease in total liabilities was a result of a ¥10,000 million increase in financing by means
of bonds payable, the Company reduced its total short-term and long-term loans payable by ¥41,910 million as a
result of repayment of loans from financial institutions.
Net assets as of March 31, 2012 stood at ¥248,140 million, a decrease of ¥22,667 million from the previous
fiscal year-end. The main reason for the decrease was that shareholders' equity decreased by ¥19,969 million due
to the acquisition of treasury shares.
Working capital, defined as current assets less current liabilities, was ¥173,875 million, a decrease of ¥54,232
million compared with March 31, 2012.