Olympus 2010 Annual Report Download - page 33

OLYMPUS 2010 31
In other income and expenses, the Company recorded net income
of ¥26,055 million (US$290 million), a significant improvement from
the ¥125,888 million net loss recorded in the previous fiscal year. The
turnaround is primarily attributable to a significant ¥73,867 million
decrease in the amortization of goodwill to ¥2,334 million (US$26 mil-
lion) as well as a gain on transfer of business of ¥47,674 million
(US$530 million).
Accounting for these factors, income before provision for income
taxes was ¥86,204 million (US$958 million), a turnaround from a loss
of ¥91,301 million in the previous fiscal year. Provision for income
taxes increased to ¥38,266 million (US$425 million), resulting in net
income for the fiscal year under review of ¥47,763 million (US$531
million). For fiscal 2010, basic net income per share came to ¥177.22
(US$1.969), a turnaround from net loss per share of ¥428.83 in the
previous fiscal year.
ANALYSIS OF FINANCIAL POSITION
Total Assets
As of March 31, 2010, total assets stood at ¥1,152,227 million
(US$12,803 million), up 4.1% from the previous year-end.
Total current assets rose 12.2% year on year to ¥532,876 million
(US$5,921 million). This was mainly attributable to an increase in cash
and time deposits of ¥69,906 million.
Investments and other assets as of the end of the year were up
¥6,419 million to ¥474,857 million (US$5,276 million).
Accounting for these factors, total asset turnover was 0.77 times,
down from 0.89 times in the previous fiscal year.
Total Liabilities and Net Assets
Total liabilities decreased 0.2% year on year to ¥935,336 million
(US$10,393 million), largely reflecting drops of ¥15,750 million in other
payables and ¥6,337 million in short-term borrowings that helped off-
set such gains as a ¥7,470 million increase in notes and accounts pay-
able and an ¥8,684 million increase in income taxes payable.
As of March 31, 2010, net assets stood at ¥216,891 million
(US$2,410 million), an increase of 28.5% from the previous fiscal year-
end. The major component was a ¥48,686 million increase in total
shareholders’ equity due to the recording of net income of ¥47,763 mil-
lion (US$531 million). Reflecting these factors, the equity ratio
climbed 3.6 percentage points to 18.2%.
Cash Flows
Cash and cash equivalents as of March 31, 2010, grew ¥70,293 million
year on year, to ¥203,013 million (US$2,256 million).
Net cash provided by operating activities rose ¥34,617 million from
¥41,628 million in the previous fiscal year to ¥76,245 million (US$847
million). The major cash inflows were income before provision for
income taxes of ¥86,204 million (US$958 million) and depreciation
and amortization of ¥43,275 million (US$481 million).
Net cash used in investing activities increased ¥239 million com-
pared with the previous fiscal year to ¥20,967 million (US$233 mil-
lion). The principal cash outflows were purchases of property, plant
and equipment of ¥39,498 million (US$439 million) and payments for
acquisition of subsidiaries amounting to ¥59,895 million (US$666 mil-
lion). Major cash inflows included proceeds from transfer business of
¥74,402 million (US$827 million) and a ¥17,536 million (US$195 mil-
lion) net increase from sales of investment in subsidiaries related to
changes in scope of consolidation.
Net cash provided by financing activities totaled ¥17,355 million
(US$193 million), a turnaround from net cash used in financing activi-
ties of ¥3,751 million in fiscal 2009. The largest cash inflow was pro-
ceeds from long-term debt of ¥95,631 million (US$1,063 million). The
major cash outflows were relatively small repayments of long-term
debt of ¥48,870 million (US$543 million) and ¥20,300 million (US$226
million) paid for the redemption of bonds.
Research & Development Expenditures
The Olympus Group continuously pursues new technologies
through its R&D activities in order to bolster its core competencies
in current businesses and create new business opportunities. In
fiscal 2010, R&D expenditures amounted to ¥61,850 million
(US$687 million), a decrease of 11.7% compared with the previous
fiscal year, and equivalent to 7.0% of total net sales.
Capital Expenditures
Capital expenditures fell 38.3% from the previous fiscal year to
¥34,323 million (US$381 million). Depreciation and amortization as
of the year-end decreased to ¥43,275 million (US$481 million).
30,404
37,522
27,022
44,696
50,070
44,804 43,275
55,632
34,323
44,444
Capital Expenditures /
Depreciation and Amortization
(Millions of yen)
06 07 08 09 10
Depreciation and amortization
Capital expenditures
R&D Expenditures
(Millions of yen)
06 07 08 09 10
55,531
65,928 70,010
61,850
45,935
Return on Equity
(%)
06 07 08 09 10
15.3
16.8
10.7
-44.4
25.8