Epson 2014 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2014 Epson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 99

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99

Net income (loss)
Epson posted ¥83,698 million in net income, a ¥93,789 million increase from the previous period.
(2) Liquidity and capital resources
Cash flow
Net cash provided by operating activities was ¥111,253 million, an increase of ¥68,260 million compared
to the previous period. While negatively affected by an increase in trade accounts receivable (¥22,922
million effect) and an increase in inventory (¥22,892 million effect), cash flow from operating activities
increased principally because of a ¥75,395 million increase in income before income taxes and minority
interests and a ¥35,570 million effect from an increase in trade notes and accounts payable.
Net cash used in investing activities totaled ¥39,519 million, an increase of ¥7 million compared to the
previous period. Although there was a ¥3,466 million decrease in outlays associated with the acquisition of
property, plant and equipment and intangible assets, net cash used in investing activities increased
principally because in the previous period Epson recorded ¥3,147 million in income associated with a
business transfer and because of a ¥499 million increase in outlays to acquire investment securities.
Net cash used by financing activities totaled ¥56,567 million, as revenue from financing activities
decreased by ¥77,866 million compared to the previous period. This was principally due to a ¥78,920
million net decrease in interest-bearing liabilities.
As a result of the foregoing factors, cash and cash equivalents at the end of the fiscal year stood at ¥211,500
million, an increase of ¥26,861 million compared to the end of the previous fiscal year, giving Epson
sufficient liquidity.
The combined total of short-term loans payable, long-term loans payable, and bonds payable was ¥220,455
million, a decrease of ¥50,671 million compared to the previous period, owing to the repayment of general
interest-bearing liabilities.
Long-term loans payable (excluding the current portion) as of the fiscal year-end were ¥50,500 million, at a
weighted average interest rate of 0.73% and with a repayment deadline of November 2017. These
borrowings were obtained as unsecured loans primarily from banks.
Financial condition
Total assets were ¥865,872 million, an increase of ¥87,325 million compared to the end of the previous
fiscal year. This increase is primarily the result of a ¥23,893 million increase in deferred tax assets, a
¥20,098 million increase in product inventories, a ¥26,893 million increase in cash and deposits and
short-term investment securities, and a ¥13,795 million increase in notes and accounts receivable.
Total liabilities were ¥514,141 million, a decrease of ¥5,599 million compared to the end of the previous
fiscal year. Although notes and accounts payable–trade increased by ¥15,571 million, liabilities associated
with retirement benefits increased by ¥14,917 million, and the provision for bonuses increased by ¥9,718
million, total liabilities decreased primarily as a result of a ¥50,671 million net decrease in short-term loans
payable, long-term loans payable, and bonds payable.
Net assets were ¥351,730 million, an increase of ¥92,924 million compared to the end of the previous fiscal
year. This was primarily due to an ¥80,120 million increase in retained earnings and a ¥19,394 million
change in the foreign currency adjustment associated with the depreciation of the yen.
Working capital, defined as current assets less current liabilities, was ¥288,815 million, an increase of
¥96,046 million compared to the end of the previous fiscal year.
The ratio of interest-bearing liabilities to total assets declined to 25.5% from 34.9% at the end of the
previous fiscal year.
26