Olympus 2012 Annual Report Download - page 65

Consolidated net sales for the Information & Communication Business amounted
to ¥229,399 million (up 9.5% year on year), while operating income amounted to
¥5,277 million (up 0.7% year on year).
Net sales in the Information & Communication Business increased thanks not
only to expanded sales channels for mobile phones, but also to favorable sales of
smartphones.
Operating income in the Information & Communication Business was close to
the same level as the previous fiscal year, mainly due to the impact of the amortization
of goodwill from our making ITX Corporation into a wholly owned subsidiary by means
of a share exchange in March 2011.
Consolidated net sales for the Others business amounted to ¥48,910 million
(down 2.3% year on year) and operating loss was ¥7,992 million (compared with an
operating loss of ¥3,606 million in the same period of the previous fiscal year).
Net sales for the Others business were down owing to overseas market
deterioration.
However, operating loss for the Others business expanded because of increased
research and development costs related to the acquisition of a regenerative medicine-
related business.
Financial Position
As of the end of the fiscal year under review, total assets decreased ¥52,634 million
compared to the end of the previous fiscal year to ¥966,526 million. Current assets
decreased ¥6,976 million due to a decrease in cash and time deposits, and fixed
assets decreased ¥45,658 million due to factors such as depreciation, amortization of
goodwill and sales of investment securities.
Total liabilities increased ¥14,917 million compared to the end of the previous
fiscal year to ¥918,498 million due mainly to an increases in long-term borrowings,
less current maturities of ¥29,099 million, despite a decrease in short-term borrow-
ings of ¥35,220 million.
Net assets decreased ¥67,551 million compared to the end of the previous
fiscal year to ¥48,028 million, mainly because there was a net loss in the current fiscal
year of ¥48,985 million and a decline in accumulated other comprehensive income of
¥14,219 million.
As a result of the foregoing, the equity ratio decreased from 11.0% as of the end
of the previous fiscal year to 4.6%.
Cash Flows
Cash flows provided by operating activities were ¥30,889 million, compared with
¥30,469 provided by operating activities in the previous fiscal year. This was mainly
due to ¥33,787 million in depreciation and amortization, ¥15,839 million in impair-
ment loss, and ¥12,283 million in amortization of goodwill. In contrast, decreasing
factors mainly included ¥19,929 million in income taxes paid, ¥13,990 million in inter-
est payments and an increase of ¥11,681 million in accounts receivable.
Cash flows used in investing activities were ¥35,735 million, compared with
¥19,003 million provided by investing activities in the previous fiscal year. This was
mainly due to purchase of property, plant and equipment totaling ¥22,761 million,
purchases of intangible assets of ¥12,483 million, and payments for acquisition of
new consolidated subsidiaries related to changes in scope of consolidation of ¥6,584
million. In contrast, increasing factors included ¥4,155 million in sales and redemption
of investment securities.
Cash flows used in financing activities were ¥5,761 million, compared with
¥37,359 million used in financing activities in the previous fiscal year. This was mainly
due to ¥63,197 million in repayments of long-term borrowings, less current maturities
and ¥4,004 million in dividends paid. In contrast, increasing factors mainly included
proceeds from long-term borrowing, less current maturities of ¥60,244 million.
As a result, cash and cash equivalents at the end of the current fiscal year
amounted to ¥198,661 million, a decrease of ¥11,724 million compared to the end of
the previous fiscal year.
Fiscal 2013 Outlook
Although there is expected a moderate trend towards recovery in the global economy
going forward, there is a chance that it may underperform expectations due to
downside factors including the protracted nature of fiscal uncertainty in Europe and
the rising price of crude oil. Regarding the Japanese economy, while a positive
contribution is expected from demand related to earthquake recovery projects in the
immediate future, difficult conditions are expected to continue.
Given this environment, the Olympus Group will work to promote growth in core
businesses by concentrating management resources on core technologies, with
improvements in our profitability and financial standing as our top priorities.
In the Medical Business, we will work to achieve further growth with the launch
of new products including THUNDERBEAT, an energy device, and EVIS EXERA III, the
next-generation endoscopy platform system, which is the first renewal of its series for
seven years. We will work to expand sales and improve revenue in the Life Science &
Industrial Business by gradually launching new products such as element analysis
devices in the industrial field, while enhancing products and strengthening sales in the
markets of emerging countries in the life science field. In the Imaging Business, we will
focus on high-value added products such as the OM-D series, a new generation
camera, and carry on the transition to a business structure that steadily yields profit
through cost reduction.
The forecast of consolidated financial results for the fiscal year ending March
31, 2013 is currently being formulated by the new management team that was
appointed at the Extraordinary General Meeting of Shareholders held on April 20,
2012. The forecast will be disclosed as soon as we are able to announce it.
OLYMPUS 󱚈 Annual Report 2012 63