HTC 2013 Annual Report Download - page 65

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FINANCIAL STATUS, OPERATING RESULTS AND RISK MANAGEMENT FINANCIAL STATUS, OPERATING RESULTS AND RISK MANAGEMENT
126 127
3. Cash Flows
1. Analysis of change in cash flow for the most recent fiscal year
Year
Item 2013 2012 %
Cash Flow Ratio（％） (17.17) 18.69 (192)
Cash Flow Adequacy Ratio（％） 109.71 126.39 (13)
Cash Flow Reinvestment Ratio （％） (19.78) (10.66) 86
Explanation and analysis of change:
2013 revenue was down YoY, which turned net cash flow in operating activities from net cash inflow to net
cash outflow and brought the cash flow ratio to -17%. Cash flow adequacy ratio decreases 110%. Cash flow
reinvestment ratio decreases to -19% due to the continued payment of cash dividend and cash outflow in
operating activities in 2013.
2. Cash flow analysis for the coming year
We expect our net cash flows from operating activities and ample cash on-hand can fully support capital
expenditures, cash dividends and all other cash needs in 2014.
4. The Effect on Financial Operations of Material
Capital Expenditures During the Most Recent
Fiscal Year
1. Review and analysis of material capital expenditures and funding
sources
(1) Material capital expenditure and funding sources
Unit：NT$ thousands
Planned Item
Actual or
projected
sources of
capital
Actual or
projected date
of completion
Total capital
needed
(as of FY 2013)
Actual or projected capital utilization
2011 2012 2013
Purchas and Installation
of Equipment / Facilities Working capital 2010~2013 12,558,351 3,946,634 3,374,528 1,947,341
Plant/Building
Construction Working capital 2010~2013 10,357,135 4,490,062 3,547,319 377,836
2. Anticipated benefits
New Plant / Building Construction
The new Taoyuan Headquarters campus and Taipei headquarters building are essential to expanding
production and providing HTC employees with an appropriate working environment.
New Equipment / Facilities
Replacement / upgrade of equipment and facilities is critical to enhancing productivity and meeting
rising market demand.
HTC's operation is in good condition. The capital expenditures in recent years were mainly from our
own operating capital. Therefore there is no great impact on the company's finance.
5. Investment Diversification in Recent Years
HTC's strategic investments focus on the industrial segments that will enhance HTC's core businesses and
long-term strategic developments. Project evaluation is based on industry dynamics, market competition,
founding team experience, business model, risk analysis, et cetera. The final goal is to make key strategic
investments ,whether via minority or control, in companies and industries that will strengthen HTC's product
and service offerings and its long-term competitiveness.
In 2013 HTC focuses on reallocation and disposal of existing investment portfolio; therefore there is no
strategic investment of any kind this year. HTC will focus on investments in Asia market, especially in the
Greater - China region in the future. Investments will mainly be in the area of firmware, cloud technology,
mobile Internet and related services, etc.