Casio 2014 Annual Report Download - page 16

Management’s Discussion and Analysis
Net Sales
Consolidated net sales for the year ended March 31, 2014 were ¥321,761 million, an increase
of 8.1% from the previous year
Millions of Yen
2014 2013
Consumer ¥264,404 ¥227,861
System Equipment 45,299 41,778
Others 12,058 28,124
Total ¥321,761 ¥297,763
Results by Segment
By operating segment, in the Consumer segment, sales were ¥264,404 million, an increase of
16.0% from the previous year. This segment accounted for 82.2% of net sales.
By business, in the timepiece business, sales increased significantly overall with brands such
as G-SHOCK and EDIFICE continuing to perform well, primarily in overseas markets such as
North America and China under a stronger global brand strategy. The line-up of watches for
women in brands such as Baby-G and SHEEN continued steady growth. In the electronic dic-
tionary business, sales of the EX-word series remained strong, mainly for the student model,
and Casio continued to hold the overwhelming No.1 share of the Japanese market. In the elec-
tronic musical instrument business, sales of electronic pianos increased steadily.
In the System Equipment segment, sales were ¥45,299 million, an increase of 8.4% from the
previous year. In the Others segment, sales were ¥12,058 million, a decrease of 57.1% from the
previous year.
Results of Operations
In income for fiscal 2014, the Consumer segment posted ¥35,504 million in operating income.
The timepiece and electronic dictionary businesses maintained high profitability. The System
Equipment segment posted an operating loss of ¥1,765 million mainly as a result of cooling of
corporate-sector demand. The Others segment posted an operating loss of ¥512 million. As a
result, Casio posted ¥26,576 million in consolidated operating income, allowing for adjustments.
Financial expenses amounted to ¥178 million, compared to financial expenses of ¥235 mil-
lion in the previous fiscal year. Other expenses amounted to ¥3,441 million, compared to other
expenses of ¥876 million in the previous fiscal year. The main reason for these changes was an
increase of directors’ retirement benefits.
Net income amounted to ¥15,989 million.
Financial Condition
Total assets at the end of March 2014 were ¥366,964 million, largely on a par with the previous
fiscal year. Current assets declined by ¥5,584 million to ¥244,135 million, partly as a result of a
decrease in inventories. Non-current assets increased by ¥3,226 million to ¥122,829 million, largely
as a result of a net defined benefit asset newly recorded and a decrease in deferred tax assets.
Total liabilities decreased 11.5% year-on-year to ¥181,708 million. Current liabilities
increased by ¥6,808 million to ¥122,110 million and non-current liabilities declined by ¥30,454
million to ¥59,598 million, due primarily to an increase in notes and accounts payable-trade and
transfer of the non-current portion of long-term loans and bonds payable to the current portion
of long-term loans and bonds payable. Net assets at year-end rose ¥21,288 million to ¥185,256
million due mainly to an increase in retained earnings.
As a result, the equity ratio was improved to 50.5%, a 6.1 point increase over the previous year.
Cash Flow Analysis
Cash and cash equivalents at the reporting year-end came to ¥114,129 million, an increase of
¥16,779 million.
Net cash provided by operating activities amounted to ¥40,107 million, an increase of
¥30,629 million from the previous year. This was mainly due to a decrease in working capital.
Net cash provided by investing activities amounted to ¥8,044 million, an increase of ¥21,421
million from a net cash outflow of ¥13,377 million in the previous year. This was mainly due to
an increase in net cash inflow of purchase, sales and redemption of investment securities.
Net cash used in financing activities amounted to ¥38,523 million, a ¥33,828 million wors-
ening from the previous year. This was chiefly attributable to increases in net cash outflow of
short-term and long-term loans payable and cash outflow of redemption of bonds.
Capital Investment
Capital investment decreased 27.0% year-on-year to ¥5,574 million. By segment, capital invest-
ment came to ¥4,064 million in the Consumer segment, ¥939 million in the System Equipment
segment, and ¥221 million in the Others segment.
Research & Development
R&D expenses came to ¥8,352 million. By segment, R&D expenses were ¥3,592 million in the
Consumer segment, ¥1,013 million in the System Equipment segment, and ¥7 million in the
Others segment.
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