Yamaha 2006 Annual Report Download - page 52

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52
Cash Flows
Net cash provided by operating activities in fiscal 2006 totaled ¥25.5 billion. The ¥14.1 billion,
or 35.6%, decline from the previous year came despite higher income before income taxes
and minority interests. Significant factors depressing operating cash flow included an
absence of the impairment losses recorded in fiscal 2005 and higher equity in the earnings of
unconsolidated subsidiaries and affiliates.
Net cash used in investing activities totaled ¥18.1 billion, compared with ¥12.9 billion the
year before. The ¥5.2 billion, or 40.4%, increase in cash outflow was mainly the result of
lower proceeds from sales of investment securities, even though the decline was partially off-
set by reduced payments for capital investments associated with acquisitions and business
alliances during the period.
Net cash used in financing activities rose to ¥25.8 billion, primarily because of the repay-
ment of long- and short-term debt and increased cash dividend payments to shareholders.
The rise represented increased cash outflow of ¥17.5 billion, or 211.0%, compared with the
previous year.
The fiscal 2006 year-end balance of cash and cash equivalents totaled ¥35.4 billion, a
year-on-year decline of ¥15.0 billion, or 29.7%. This amount includes a net positive effect of
¥1.8 billion due to exchange rate fluctuations and a net cash gain arising from an increase in
the number of subsidiaries included in the scope of consolidation.
Capital Expenditures and Depreciation
Capital expenditures of ¥22.9 billion in fiscal 2006 were roughly equal to the previous year’s
total. The musical instruments business increased its capital expenditures by ¥0.6 billion,
or 5.0%, to ¥11.9 billion. This included heightened investment in molds for new products;
in the establishment of new Yamaha music schools in Japan; and in the expansion of
musical instrument assets for rental purposes in line with growth in musical instrument
rental operations.
Capital expenditures in the electronic equipment and metal products business increased
¥0.5 billion, or 10.8%, to ¥5.5 billion, reflecting investment in new semiconductor production
equipment at Yamaha Kagoshima Semiconductor Inc. aimed at miniaturization (0.18µm). In
the recreation segment, capital expenditures declined ¥1.6 billion, or 66.8%, to ¥0.8 billion,
with the conclusion of a guest room expansion program undertaken in the previous year.
The Company’s depreciation and amortization expense amounted to ¥18.9 billion.
2002 2003 2004 2005 2006
18,944
22,882
Musical Instruments and AV/IT
Electronic Equipment and Metal Products
Other Segments
Depreciation
Capital Expenditures
Capital Expenditures and Depreciation
(Millions of Yen)