Fujitsu 2013 Annual Report Download - page 107

*4 Refers to the rate used to discount to present value the amount of expected
retirement benefits deemed to be incurred for each projected retirement
period incurred by the fiscal year-end. The rate is decided with reference to
interest on high-quality corporate bonds as of the balance-sheet date.
Under the Japanese Companies Act, the entire amount paid for
new shares is required to be designated as common stock in principal.
However, a company may designate a maximum 50% of the amount
of the new shares as capital reserve, which is included in capital sur-
plus. The Companies Act also requires that an amount equal to 10% of
dividends must be appropriated as a legal reserve, which is included in
retained earnings, or as a capital reserve, which is included in capital
surplus, until the aggregated amount of legal reserve and capital
reserve equals 25% of common stock. The Companies Act also requires
that legal reserve, capital reserve, other capital surplus and other
retained earnings can be transferred among the accounts under cer-
tain conditions upon resolution of the shareholders.
Capital surplus in consolidated financial statements includes
capital reserve and other capital surplus of non-consolidated finan-
cial statements, and other retained earnings of consolidated basis
include legal reserve and retained earnings of non-consolidated
financial statements. The maximum amount that a company can
distribute as dividends is calculated based on its non-consolidated
financial statements in accordance with the Companies Act and
Generally Accepted Accounting Principles in Japan.
Shareholders’ equity in the non-consolidated financial state-
ments as of March 31, 2013 is ¥387.0 billion ($4,117 million) and
consists of common stock of ¥324.6 billion ($3,453 million), capital
reserve of ¥167.1 billion ($1,777 million), legal reserve of ¥10.1
billion ($108 million) and other retained earnings of negative
¥114.5 billion ($1,218 million). The Company decided not to distrib-
ute year-end dividends, as other retained earnings turned negative
due to impairment losses on subsidiaries’ stock relating to LSI device
business and business outside Japan. Total amounts of dividend for
the year ended March 31, 2013 is solely ¥10.3 billion (¥5 per share)
of interim dividend. The Company paid ¥20.6 billion ($220 million)
in cash dividends for the year ended March 31, 2013. The amount
consists of year-end dividends for the year ended March 31, 2012 of
¥10.3 billion ($110 million) and interim dividends for the year ended
March 31, 2013 of ¥10.3 billion ($110 million), and both payments
equated to ¥5 ($0.053) per share.
Cash Flows
Condensed Consolidated Statements of Cash Flows
(Unit: billion yen)
Years ended March 31 2012 2013
YoY
Change
I Cash flows from operating activities . . 240.0 71.0 (169.0)
II Cash flows from investing activities . . (190.8) (161.4) 29.3
I+II Free cash flow . . . . . . . . . . . . . . . . . 49.1 (90.4) (139.6)
[Excluding one-time items] . . . . . . . . . . [43.5] [8.4] [(35.0)]
III Cash flows from financing activities . . (138.9) 100.3 239.3
IV Cash and cash equivalents at
end of year . . . . . . . . . . . . . . . . . . . . 266.6 284.5 17.8
Note: “Free cash flow excluding one-time items” refers to free cash flow exclud-
ing the following:
• Proceeds from sales of investment securities;
• Proceeds from acquisitions of subsidiaries in line with changes to scope
of consolidation;
• Proceeds from business transfers; and,
• A special contribution (¥114.3 billion) during the year ended March 31,
2013 into pension schemes of the Company’s UK subsidiary.
Net cash provided by operating activities during fiscal 2012
amounted to ¥71.0 billion ($755 million), a year-on-year decrease of
¥169.0 billion. There was an outflow of ¥114.3 billion ($1,217 mil-
lion) for a special payment to the defined benefit corporate pension
fund of the Company’s UK subsidiary. Working capital increased due
to sluggish sales of hardware such as PCs and mobile phones.
Regarding business restructuring costs relating to the LSI device
business and business outside Japan, cash outflows are expected in
and after fiscal 2013.
Net cash used in investing activities was ¥161.4 billion ($1,718
million). Outflows mainly consisted of capital expenditure for purchases
of property, plant and equipment amounting to ¥111.5 billion ($1,187
million), primarily related to datacenters, and purchases of intangible
assets amounting to ¥64.4 billion ($686 million), primarily software. A
cash inflow of ¥10.9 billion ($117 million) in proceeds from transfer of
business, primarily represents the sales proceeds for fixed and other
assets stemming from the transfer of the Iwate Plant and the LSI
assembly and test line facilities of the LSI device business. Compared to
fiscal 2011, net outflows decreased by ¥29.3 billion, reflecting lower
capital expenditures on property, plant and equipment.
Free cash flow, the sum of cash flows from operating and invest-
ing activities, was negative ¥90.4 billion ($962 million), representing
a decrease in net cash inflows of ¥139.6 billion compared to the
previous fiscal year. Excluding one-time items such as the special
contribution to the pension fund of a UK subsidiary company (¥114.3
billion), free cash flow amounted to ¥8.4 billion, which was ¥35.0
billion less than the previous fiscal year.
Net cash provided by financing activities was ¥100.3 billion
($1,068 million). Short-term borrowings were used to fund a contri-
bution made to the defined benefit corporate pension fund of a UK
subsidiary. This represents an increase in net cash inflows of ¥239.3
billion compared to the previous fiscal year.
105
FUJITSU LIMITED ANNUAL REPORT 2013
FACTS & FIGURES