Konica Minolta 2006 Annual Report Download - page 32

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30
were ¥96.6 billion, including goodwill amortization of ¥2.4
billion and special retirement payments of ¥6.5 billion. A
loss of ¥2.5 billion was also recorded related to the equity
in investment losses arising from the decision to exit the
Photo Imaging business. Moreover, interest paid
declined owing to a reduction in interest-bearing debt.
As a result of the above, a loss before income taxes
and minority interests of ¥35.9 billion was recorded for
income before taxes, while the net loss for the period
was ¥54.3 billion. The net loss per share of common
stock was ¥102.29, while ROE was minus 17.1%.
Liquidity and Financial Position
Total Assets, Liabilities and Shareholders’ Equity
Total assets at the end of the period were ¥944.1 billion
and ¥11.5 billion lower than at the end of the previous
fiscal year. In current assets, cash and cash equivalents
rose ¥21.5 billion as the result of preparations for the
exit from the Photo Imaging business. On the other
hand, inventories declined by ¥28.1 billion due to inven-
tory liquidations as a result of the decision to exit the
Photo Imaging business.
Total impairment losses of ¥32.8 billion were recorded
mainly in relation to the decision to exit the Photo
Imaging business. On the other hand, there were active
capital expenditures in the Business Technologies and
Optics segments. In addition, a ¥7.4 billion charge was
made for consolidation goodwill including ¥2.4 billion
one-time amortization of goodwill arising from the prior
management integration. In investments and other
assets, investment securities increased ¥4.3 billion
reflecting a rise in the current value of stocks held.
Under liabilities, interest-bearing debt declined ¥9.8
billion to ¥236.6 billion compared to the end of the
previous fiscal year. Short-term debt declined ¥21.8
billion, and outstanding corporate bonds declined ¥8.2
billion from the end of the previous fiscal year as the
result of efforts to promote redemption. On the other
hand, long-term debt including that portion due within
one year increased ¥20.3 billion. This increase reflected
a shift from short-term debt to long-term debt as a strategy
for future proactive investments. In addition, the deci-
sion to exit the Photo Imaging business resulted in the
recognition of ¥58.1 billion in reserves for discontinued
operations as well as special retirement payments of ¥6.5
billion under a special outplacement program that were
recorded under other current liabilities.
In shareholders’ equity, as net loss for the period was
¥54.3 billion, retained earnings declined ¥59.4 billion
from the end of the previous fiscal year. On the other
hand, unrealized gains on securities increased ¥5.4 billion
as a result of higher stock prices, while the foreign cur-
rency translation adjustment account improved ¥8.2
billion because of the weaker yen at the end of the
period. As a result of the above, shareholders’ equity
declined ¥45.9 billion from the end of the previous fis-
cal year, while shareholders’ equity ratio declined 4.5
percentage points to 31.1%.
04 05 06
0
10
20
30
40
Equity Ratio
(%)
04 05 06
0
4
8
12
16
Interest Coverage Ratio
(times)