Epson 2015 Annual Report Download - page 28

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27
Selling, general and administrative expenses and business profit
Selling, general and administrative (SG&A) expenses were ¥294.6 billion, an increase of ¥22.1 billion (8.1%).
In addition to foreign exchange effects, the increase in SG&A expenses is largely a result of higher labor costs,
primarily in the form of bonuses, associated with the Company’s improved financial performance.
As a result, business profit was ¥101.2 billion, up ¥11.1 billion (12.4%) year over year.
Segment profit (business profit) in each reporting segment was as follows.
Segment profit in the information-related equipment segment was ¥133.6 billion, up ¥9.8 billion (8.0%) year
over year. This was due primarily to increased sales of key products, in addition to foreign exchange effects.
Segment profit in the devices and precision products segment was ¥14.8 billion, up ¥3.9 billion (36.7%) year
over year. This increase was due to revenue growth, including foreign exchange effects.
Segment loss in the sensing and industrial solutions segment was ¥9.0 billion, a ¥900 million improvement
compared with the ¥9.9 billion loss in the previous period. This improvement was primarily due to industrial
robot profit growth.
In the “other” segment loss was ¥300 million, compared with a ¥200 million loss in the previous period.
As for adjustments, segment loss was ¥37.8 billion, a ¥3.5 billion increase over the ¥34.3 billion loss incurred in
the previous period. Adjustments consisted primarily of patent royalties, R&D expenses for basic research and
new businesses that do not belong to a reporting segment, and SG&A expenses, comprising Head Office
expenses.
Other operating income, other operating expenses, and profit from operating activities
Other operating income was ¥39.9 billion, a year-over-year increase of ¥39.9 billion (565.3%). The increase in
other operating income resulted from changes in the defined-benefit plan in Japan that reduced past service
costs by ¥30 billion and the sale of assets. Other operating expenses were ¥9.8 billion, a year-over-year decrease
of ¥6.7 billion (40.7%). Other operating expenses decreased because the foreign exchange loss shrank from
¥9.2 billion last fiscal year to ¥2.5 billion this fiscal year. As a result, profit from operating activities was ¥131.3
billion, a year-over-year increase of ¥51.8 billion (65.2%).
Finance income and finance costs
Finance income was ¥3.2 billion, a year-over-year increase of ¥500 million (21.7%). The increase in finance
income was primarily due to an increase in interest income. Finance costs were ¥2.3 billion, a year-over-year
decrease of ¥2.1 billion (47.6%). The decrease in finance costs was primarily due to a decrease in interest paid.
Profit before tax
The foregoing resulted in profit before tax of ¥132.5 billion, a year-over-year increase of ¥54.5 billion (70.0%).
Income taxes
Income taxes were ¥18.6 billion, a ¥27.9 billion increase compared with the previous period. The increase in
income taxes was mainly because the negative ¥27.8 billion corporate tax adjustment recorded in the previous
period fell to negative ¥4.5 billion.
Profit for the year
Profit for the year was ¥112.7 billion, a year-over-year increase of ¥28.3 billion (33.6%).
(2) Liquidity and capital resources
Cash flow
Net cash provided by operating activities was ¥108.8 billion, a decrease of ¥6.0 billion compared with the
previous period. Although profit for the period and income taxes were both higher, by ¥28.3 billion and ¥27.9
billion, respectively, net cash provided by operating activities declined mainly because of a ¥20.5 billion effect