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51
Annual Report 2006
Total liabilities were ¥2,717.0 billion (US$23,026 million), an
increase of ¥98.0 billion compared to the end of the previous fiscal year.
There was a large one-time increase in accrued severance benefit associ-
ated with the change in pension accounting for our UK subsidiaries,
whereby unrecognized pension obligations were recorded as liabilities.
The balance of interest-bearing loans totaled ¥928.6 billion (US$7,870
million) at fiscal year-end, achieving the target of ¥1,000 billion or less as
a result of loan repayments.
Total shareholders’ equity was ¥917.0 billion (US$7,772 million), an
increase of ¥60.0 billion over the end of fiscal 2004. The increase was pri-
marily attributable to increased profits and unrealized gains on market-
able securities as a result of the rise in the stock market. As a result of the
foregoing, the D/E ratio nearly reached our medium-range target level of
1.0 and the shareholders’ equity ratio rose to 24.1%, reflecting the continu-
ing improvement in the Company’s overall financial condition.
Summary of Cash Flows
Net cash provided by operating activities during fiscal 2005 was ¥405.5
billion (US$3,437 million), exceeding ¥400.0 billion for the first time in
five years. This represented an increase of ¥128.3 billion compared with
the previous fiscal year, resulting from an increase in internal reserve due
to the recovery in principal business operations, and greater efficiency in
the use of assets through an improvement in working capital.
Net cash used in investing activities was ¥234.6 billion (US$1,989
million), an increase in outflows of ¥219.5 billion compared with the
previous fiscal year. Excluding the impact of the sale of marketable secu-
rities in fiscal 2004, outflows increased by ¥51.2 billion. The increase
was primarily attributable to higher capital expenditures, including for
the 300mm wafer semiconductor production facility (Fab No. 1) at the
Mie Plant.
Free cash flow, the sum of operating and investment cash flows, was
positive ¥170.8 billion (US$1,448 million). Excluding the impact of the
sale of marketable securities in fiscal 2004, this represented an increase
in free cash flow of ¥77.1 billion over fiscal 2004.
Net cash used in financing activities was ¥207.8 billion (US$1,761
million), as free cash flow was used to repay borrowings.
As a result of the above factors, cash and cash equivalents at the end
of the fiscal year totaled ¥420.8 billion (US$3,567 million).
2002
2003
2004
2005
2006 170
(102)
53
371
262
(¥ Billions)
■ Free Cash Flow
(Years ended March 31)
2002
2003
2004
2005
2006
Total Assets (¥ Billions)
Total Assets Turnover Ratio (Times)
3,807
1.29
1.02
1.05
1.18
1.27
4,595
4,225
3,865
3,640
(As of March 31)
■ Total Assets/Total Assets Turnover Ratio
2002
2003
2004
2005
2006
Shareholders’ Equity (¥ Billions)
Shareholders’ Equity Ratio (%)
917
24.1
853
702
827
856
18.6
16.6
21.4
23.5
■ Shareholders’ Equity/Shareholders’ Equity Ratio
(As of March 31)