Konica Minolta 2005 Annual Report Download - page 34

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Earnings Analysis
Adjusted operating income for the fiscal year ended March 31, 2005 was ¥67.6
billion, representing a slight increase compared to previous fiscal year.
Net other expenses were ¥32.1 billion and basically unchanged from the previous
fiscal year. The major factors were a ¥5.7 billion swing from foreign exchange losses
in the previous fiscal year to foreign exchange gains and a ¥2.0 billion decline in
interest expenses accompanying a decline in interest-bearing debt. On the other
hand, ¥4.9 billion of restructuring expenses were recorded for the Photo Imaging
segment, and a one-time depreciation adjustment of ¥5.4 billion was also recorded
for the camera business. As a result of the above, income before income taxes was
¥35.4 billion, and net income for the period was ¥7.5 billion. Earnings per share of
common stock were ¥14.1 per share, while return on equity was 2.2%.
Major Factors Inhibiting Direct Increase/Decrease Comparison (Operating Income)
Transactions
Foreign Change in Between Change in Actual
Exchange Accounting Prior Segment Total Increase,
Impact Period Companies Content Impact Decline
Business Technologies –0.9 –1 –2.1 0 –4.0 –3.0
Optics –0.8 –0.6 –0.1 0 –1.5 2.3
Photo Imaging 0.2 –0.1 –0.1 0.2 0.2 –2.1
Medical and Graphic Imaging –0.7 0 0 0 –0.7 –0.6
Sensing 0 0 –0.1 –0.2 –0.3 0.1
Other 0.1 0 0 0 0.1 4.0
Total -2.2 -1.7 -2.4 0 -6.3 0.7
LIQUIDITY AND FINANCIAL POSITION
Total Assets, Liabilities and Shareholders’ Equity
Total assets at the end of the fiscal year declined by ¥14.0 billion to ¥955.5 billion.
Within current assets, cash on hand and in banks declined by ¥24.2 billion as cash
on hand was lowered to more appropriate levels and used to repay interest-bearing
debt. In addition, as sales were concentrated in the final month of the fiscal year,
notes and accounts receivable and inventories rose by ¥20.1 billion and ¥3.6 billion
respectively. Deferred tax assets rose by ¥6.8 billion based on the assumption that
consolidated taxation will be introduced from the fiscal year ending March 31, 2006.
Within property, plant and equipment, land holdings increased by ¥2.4 billion for
the fiscal year. Buildings and structures were ¥4.6 billion higher for the fiscal year,
reflecting the construction of a third LCD-use TAC film factory, and an R&D building
for materials technology development. Machinery, equipment and other declined by
¥1.3 billion. While capital expenditure was increased in strategic areas such as
polymerized toner production facilities in the Business Technologies segment and
LCD-use TAC film production facilities in the Optics segment, capital expenditure in
the Other segment was restrained. In addition, tools and furniture increased by ¥15.5
billion owing to investment in metal molding for new product development.
Total investments and other assets declined by ¥12.8 billion for the fiscal year
because of efforts to reduce holdings of marketable securities. In addition, deferred
tax assets declined ¥4.9 billion, mainly due to transfers to current assets.
Within total liabilities, interest-bearing debt declined by ¥21.6 billion from the
20042003 2005
Interest Coverage
Ratio
(times)
0
16
12
8
4
20042003 2005
Equity Ratio
(%)
0
1,000
750
500
250
0
10.0
7.5
5.0
2.5
20042003 2005
Total Assets,
Shareholders’ Equity
and ROE
(¥ billions, %)
0
1,000
750
500
250
Total Assets
Shareholders’ Equity
Return on Equity
0
10.0
7.5
5.0
2.5