Oki 2001 Annual Report Download - page 19

Oki Electric Industry Co., Ltd. Annual Report 2001 17
taxes amounting to ¥10,228 million, Oki recorded net income of
¥8,944 million, a significant improvement from ¥1,146 million
in fiscal 2000.
Net income per share rose from ¥1.87 last period, to ¥14.61.
Dividends will be resumed at ¥5.00 per share.
Financial Position
Total assets fell 2.1%, to ¥732,483, primary owing to the reduc-
tion of bank loans and bonds. Owing to a series of accounting
changes, total current assets fell 10%, to ¥433,230 million, and
comprised 59.2% of total assets, compared with 64.3% in fiscal
2000 and 66.1% in fiscal 1999. In fiscal 2001, the Group imple-
mented new accounting standards for financial instruments,
which resulted in the reclassification of certain marketable secu-
rities, totaling ¥46,333 million as of April 1, 2001, from current
assets to other investments in securities. In addition, certain
marketable securities stated at cost or less in prior fiscal years
were revalued at market price. See note 1(m) on page 22 for
details.
Similarly, accounting standards for foreign currency treatment
changed as of April 1, 2000, and translation adjustments were
reclassified as part of shareholders’ equity rather than assets and
liabilities. Note 1(m) on page 22 provides more information.
Property, plant and equipment, before depreciation, increased
2.9%, to ¥711,260 million, mainly because of capital expendi-
tures in the electronic devices segment.
Total liabilities fell 3.6%, to ¥578,256 million, owing to re-
ductions in short-term borrowings, bonds and long-term debt.
Total current liabilities rose 7.7%, to ¥351,578 million. Total
current liabilities accounted for 60.8% of total liabilities, com-
pared with 54.4% in fiscal 2000 and 52.8% in fiscal 1999.
Total long-term liabilities decreased 17.0%, to ¥226,678
million. The current ratio was 1.23, compared with 1.47 in fiscal
2000 and 1.53 in fiscal 1999. Total shareholders’ equity rose
4.4%, to ¥148,844 million. The equity ratio improved to 20.3%,
from 19.0% in fiscal 2000 and 17.7% in fiscal 1999. The debt-
to-equity ratio was 3.9:1, as against 4.2:1 in fiscal 2000 and
4.6:1 in fiscal 1999.
Cash Flows
Cash and cash equivalents at end of the year, calculated on a
consolidated basis, amounted to ¥52,885 million, ¥13,890 mil-
lion, or 20.8%, lower than the previous fiscal year. Free cash
flows, or the combined net cash provided by operating activities
and used in investing activities, totaled ¥48,467 million, a
change of ¥36,011 million, owing to disposal of working securi-
ties. Interest-bearing debt fell ¥63,518 million, a result of the
free cash flows and disposal of funds.
The Company recorded net cash provided by operating activi-
ties of ¥62,405 million, a difference of ¥6,486 million compared
with the previous period. The primary reason for this increase
was that, despite higher working capital caused by a rise in
sales, profitability improvements raised net income for this
period. Net cash used in investing activities was ¥13,938
million, owing to redemption of working bonds and circulation
of investment funds, compensating for an increase in capital
investment expenditures for semiconductors and other equip-
ment. Net cash used in financing activities increased to ¥63,557
million, owing to the continuous reduction of interest-bearing
debt.