Casio 2007 Annual Report Download - page 22

Financial Condition
Total assets at the end of March 2007 increased 4.7% year-on-year to ¥525,483 million. Current assets rose by
¥10,957 million to ¥330,136 million due mainly to an increase in trade receivables. Noncurrent assets rose ¥12,566
million to ¥195,347 million mainly due to increases in buildings and structures and software. Total liabilities
decreased 3.4% to ¥288,814 million, due mainly to the conversion of bonds with stock acquisition rights (convert-
ible bonds). The debt-to-equity ratio was 0.37, compared with 0.63 for the previous year, marking a substantial
improvement.
Net assets* amounted to ¥236,669 million. The equity ratio** increased 4.5 percentage points to 42.6%.
* Beginning with the fiscal year ended March 2007, the term “net assets” has been employed instead of “shareholders’ equity” in
line with the new accounting standards.
** The equity ratio is defined as net assets minus minority interests as a percentage of total assets.
Cash Flow Analysis
Cash and cash equivalents as of the reporting term-end amounted to ¥97,239 million, a decline of ¥27,993 million
from the previous term-end. The principal factors in the decline are repayment of long-term debt and an increase in
trade receivables as a result of the fact that the last day of the business term fell on a bank holiday.
Net cash provided by operating activities posted a decline of ¥7,926 million from the previous term to ¥35,949
million, mainly consisting of income before income taxes of ¥41,383 million (¥39,671 million for the previous term)
and depreciation expenses of ¥31,613 million (¥26,629 million for the previous term), which more than offset an
increase in trade receivables of ¥21,208 million (¥10,696 million for the previous term) and income taxes paid of
¥14,208 million (¥17,123 million for the previous term).
Net cash used in investing activities increased by ¥7,997 million from the previous term to ¥37,679 million, as
a result of a net increase in outlay for the acquisition of tangible fixed assets of ¥16,865 million (¥19,935 million
for the previous term), of intangible fixed assets of ¥17,942 million (¥11,815 million for the previous term), and of
investments in securities of ¥9,039 million (¥3,353 million for the previous term).
Net cash used in financing activities decreased by ¥11,105 million from the previous term to ¥28,713 million, due
mainly to a net increase in short-term borrowings of ¥4,285 million (a net decrease of ¥1,519 million for the previous
term). Other main components were repayment of long-term debt of ¥20,747 million (¥9,688 million for the previous
term) and expenditure for the acquisition of treasury stock of ¥6,557 million (¥47 million for the previous term).
Capital Investment
Capital investment amounted to ¥26,810 million, up 36.0% over the previous term. Broken down by business seg-
ment, capital investment came to ¥11,661 million in the Electronics Segment, up 10.1%, and ¥14,020 million in the
Electronic Components and Others Segment, up 60.0%. The remaining capital investment, made by the Company as
a whole, cannot be accounted for by business segment.
Research & Development
R&D expenses remained almost the same level as the previous term, at ¥18,019 million. By business segment, R&D
expenses in the Electronics Segment increased 6.2% to ¥12,133 million, while a decrease of 33.4% to ¥1,668
million was recorded in the Electronic Components and Others Segment. The remaining R&D expenses were used
throughout the Company and cannot be accounted for by business segment.
Management’s Discussion and Analysis
20 CASIO COMPUTER CO., LTD.