Konica Minolta 2008 Annual Report Download - page 36

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33
Retained earnings were ¥176.7 billion, up ¥61.0 billion, mainly because from the contribution
of ¥68.8 billion in net income. The unrealized gains on securities, net of taxes, and the foreign
currency translation adjustments were down ¥4.5 billion and ¥6.3 billion, respectively, owing to
sluggish equity markets and a higher yen. Total net assets thus rose ¥49.7 billion. The equity ratio
was 43.0% , up 4.4 percentage points.
Capital Expenditure and Depreciation and Amortization
Capital expenditure increased ¥11.3 billion, to ¥75.3 billion, mainly to expand production facilities.
Spending for the core Business Technologies business declined ¥7.9 billion, to ¥16.6 billion,
although Optics business allocations rose ¥17.5 billion, to ¥42.0 billion. Medical and Graphic
Imaging business expenditures were ¥4.6 billion.
Noteworthy developments during the term included the construction of a fifth TAC film plant,
in Kobe, Japan, and spending on a glass hard disk substrate facility in Malaysia.
Cash Flows
Net cash provided by operating activities was ¥123.0 billion, up ¥56.3 billion. This reflected lower
outflows from a decrease in reserve for discontinued operations in line with the exit from the
Photo Imaging business and higher inflows from a decrease in trade notes and accounts receivable.
Net cash used in investing activities was ¥76.8 billion, up ¥20.4 billion. This stemmed from
a significant fall in inflows from proceeds from sales of property, plant and equipment, and
outflows from payment for acquisition of newly consolidated subsidiaries.
Net cash used in financing activities was ¥10.5 billion, up ¥5.4 billion. Key factors included an
increase in repayment of long-term loans payable and the restoration of interim cash dividend
payments, which raised dividend outlays.
Cash and cash equivalents at the end of the year were thus ¥122.2 billion, up ¥35.6 billion
from the start of the term.
Future Financial Strategies
The Group will accelerate sustainable growth to ensure superior global competitiveness, com-
pleting its steady progress toward targets it set in its FORWARD 08 medium-term management
strategy. Management seeks a net asset ratio exceeding 50% and a debt-to-equity ratio of less
than 0.5 times.
Capital Expenditure
(Billions of Yen)
0
20
40
60
80
06 07 08
Total Assets
(left scale)
Net Assets
(left scale)
Return on Equity (ROE)
(right scale)
Total Assets, Net Assets
and Return on Equity (ROE)
(Billions of Yen, % )
0
250
500
750
1,000
06 07 08
0
15
30
–30
–15