Konica Minolta 2005 Annual Report Download - page 35

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previous fiscal year-end to ¥246.3 billion. Short-term debt declined by ¥25.3 billion.
On the other hand, long-term borrowings and outstanding corporate bonds,
including debt due for repayment within one year, increased by ¥3.7 billion. This
reflected a focus on raising the proportion of long-term debt to improve the balance
of long-term and short-term debt. Within shareholders’ equity, foreign currency
translation adjustments improved by ¥2.4 billion for the fiscal year owing to a
weakening in the yen’s exchange rate towards the end of the period. As a result of
the above, shareholders’ equity improved ¥4.3 billion from the end of the previous
fiscal year, and shareholders’ equity ratio improved one percentage point to 35.6%.
Capital Expenditure, Depreciation and Amortization
Capital expenditure increased by ¥56.4 billion and was centered on increased
production capacity. Capital expenditure for the Business Technologies segment was
¥24.3 billion and used to expand polymerized toner production lines and for metal
molding or new products. Capital expenditure for the Optics segment was used to
construct a third LCD-use TAC film plant, and to increase production capacity for
microcamera units used in mobile phones with built-in cameras, and glass hard disk
substrates. Capital expenditure in the Photo Imaging segment was ¥7.4 billion and
mainly used for investments to maintain the business. In addition, ¥3.7 billion and
¥0.2 billion was spent on capital expenditure for the Medical and Graphic Imaging
and Sensing segments, respectively.
Cash Flows
Net cash provided by operating activities was ¥55.7 billion for the fiscal year, and
mainly reflected an increase in operating capital of ¥23.2 billion, centering on an
increase in notes and accounts receivable (¥14.1 billion), and a decrease in notes and
accounts payable (¥9.2 billion).
Net cash used in investing activities was ¥49.3 billion. This outflow was mainly due
to acquisitions of property, plant and equipment, as well as intangible assets.
Property, plant and equipment acquisitions are outlined in the capital expenditures
section, and were ¥46.6 billion, largely consisting of the acquisition of computer
system software. On the other hand, liquidations of marketable securities resulted in
a ¥5.0 billion cash inflow.
Net cash from financing activities were ¥31.6 billion, and were mainly the result of
¥24.9 billion for the redemption of corporate bonds, as well as efforts to reduce
interest-bearing debt.
Future Financial Strategies
Interest-bearing debt was reduced by ¥21.6 billion during the fiscal year, and the
debt/equity ratio improved from 0.80 times to 0.73 times. The targets under the V-5
Plan, the Group’s medium-term business plan, are to further reduce interest-bearing
debt to ¥145.0 billion by the fiscal year ending March 31, 2009 and to improve the
debt/equity ratio to 0.25 times.
In the interest of enhancing the Company’s credit rating, Konica Minolta will
continue working to improve earnings and shrink operating capital to create cash
flow and to reduce interest-bearing debt.
20042003 2005
Cash Flows
(¥ billions)
-60
120
0
60
Cash flows from
operating activities
Cash flows from
investing activities
Cash flows from
Financing activities
20042003 2005
Capital Expenditures
(¥ billions)
0
60
45
30
15