Konica Minolta 2015 Annual Report Download - page 78

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• Cash flows from financing activities
Cash flows from financing activities amounted to an outflow of
¥62.1 billion, compared with ¥63.6 billion in the previous fiscal year,
primarily due to a ¥41.9 billion net decrease in corporate bonds
and debts payable, ¥13.5 billion in expenditures for the purchase
of treasury stocks, and 8.9 billion in expenditures for the payment
of dividends.
• Cash flows from investing activities
Cash of ¥39.0 billion was used in the acquisition of property, plant
and equipment, primarily for the construction of a new R&D
building, capital investment in the Business Technologies Business,
and new business investments in the Industrial Business. Other
cash outflows included ¥11.0 billion in payments for transfer of
business in the Business Technologies Business and for the
acquisition of subsidiary shares and ¥8.6 billion in payments for the
acquisition of intangible assets. This resulted in an outflow of ¥54.0
billion in cash flows used in investing activities, compared with
¥54.1 billion in the previous period. As a result, free cash flow,
calculated as the sum of cash flows from operating and investing
activities, rose to an inflow of ¥47.9 billion, up from ¥35.9 billion in
the previous fiscal year.
• Cash flows from operating activities
Net cash provided by operating activities increased to ¥101.9
billion, up from ¥90.0 billion in the previous period. Cash inflows
included profit before tax of ¥65.4 billion, depreciation and
amortization of ¥47.9 billion, an impairment loss of ¥5.1 billion,
¥10.6 billion caused by a decrease in operating receivables and
other receivables, and ¥0.6 billion caused by a decrease in
inventory. Cash outflows included ¥11.7 billion for payment of
income taxes, and ¥5.5 billion owing to a decrease in operating
debt and other debt.
Cash Flows
120
80
40
0
-40
-80
(Billions of yen)
CF from operating activities
CF from investing activities
Free cash flow
89.9
34.1
-55.7
3.0
-63.4
90.0
35.9
-54.1
101.9
47.9
-54.0
20132012 2014 (FY)
J-GAAP IFRS
66.4
• Industrial Business
In the field of optical systems for industrial use, robust sales were
seen for mainstay products such as spectrophotometers for
measuring device displays and lenses for industrial and
professional use in the optics field. In the performance materials
field, sales were good for small, medium, and large panels. This
owed to steadfast demand for large-screen LCD televisions, a
growing trend towards larger screen sizes, and firm sales of
smartphones. Unit sales of thin-type TAC films increased over last
fiscal year, centered on VA-TAC films for increasing viewing angle,
an area in which Konica Minolta excels.
Despite an increase in sales over the previous fiscal year in the
performance materials field, overall sales for this business declined.
This is attributable to shrinking demand for lenses for compact
cameras in the field of optical systems for industrial use,
downsizing of the lens business for mobile phone cameras, and a
withdrawal from the glass substrates for HDDs business. However,
profit from this business increased as a result of sales increases for
the performance materials field and for measuring instruments,
along with the effects of business restructuring in the field of optical
systems for industrial use conducted in the previous fiscal year.
As a result, external revenue in this business dropped 2.9%
year on year to ¥112.7 billion, while operating profit rose to ¥19.7
billion, a ¥19.5 billion increase year on year.
Konica Minolta has established its new OLED lighting
business as a driver of future growth, and in the autumn of 2014
we began operations at the world’s first plant engaged in the mass
production of plastic substrate flexible OLED lighting panels. OLED
lighting panels designed by Konica Minolta were used for an
outdoor illumination at a well-known theme park in Japan, an
example of how these panels are bringing new value in being thin,
light, and flexible—characteristics not seen in conventional light
sources.
Fiscal 2014 changes in revenue and operating profit
(Billions of yen)
Cash flows
17.5%
Operating
profit ratio
116.1
0.2%
112.7
(-2.9%)
0.2
19.7
Revenue Operating
profit
( ) indicates
comparison
to previous
fiscal year
(FY)(FY)
20142013 2013 2014
77
KONICA MINOLTA, INC. Annual Report 2015
Foundation for GrowthBusiness StrategiesGrowth StrategyCompany Overview and Characteristics Financial Report