Fujitsu 2007 Annual Report Download - page 57

Assets, Liabilities and Net Assets
Total assets at the end of fiscal 2006 were ¥3,943.7 billion (US$33,421
million), an increase of ¥136.5 billion from the end of the previous fiscal
year. This was due in large part to the increase in current assets, prima-
rily trade receivables, resulting from increased sales. Although invento-
ries totaled ¥412.3 billion (US$3,495 million), exceeding our target of
reducing them to below ¥400.0 billion, the monthly inventory turnover
rate rose to 0.93 times, an improvement of 0.05 times, as asset utiliza-
tion efficiency continued to steadily improve. Although property, plant
and equipment increased as a result of the investment in capacity expan-
sion at the Mie Plant, there was a large decrease in marketable securities
held for investment resulting from the sales of shares in Fanuc Ltd. and
other companies.
Total liabilities were ¥2,783.0 billion (US$23,585 million), an increase
of ¥65.9 billion compared to the end of the previous fiscal year. How-
ever, excluding the impact of the last day of the fiscal year being a busi-
ness holiday, there was a decrease of ¥61.9 billion. The balance of
interest-bearing loans totaled ¥745.8 billion (US$6,320 million), a
decrease of ¥182.7 billion compared to the end of the previous fiscal year.
Subtracting cash and time deposits, net interest-bearing loans were
¥300.8 billion (US$2,550 million). As a result of bond redemptions
and loan repayments, the D/E ratio improved to 0.77 times, well within
the target level of 1.0.
Net assets were ¥1,160.7 billion (US$9,837 million), up ¥70.6 bil-
lion compared to the end of the previous fiscal year. Consolidated
retained earnings, which had been negative each year since fiscal 2002,
achieved a positive balance. As a result, the owners’ equity ratio rose
to 24.6%, an increase of 0.5 percentage points compared to the end of
the previous fiscal year.
■ Total Assets/Total Assets Turnover Ratio
Total Assets (¥ Billions)
Total Assets Turnover Ratio (Times)
2003 4,225.3
1.05
2004 3,865.5
1.18
2005 3,640.1
1.27
2006 3,807.1
1.29
2007 3,943.7
1.32
(As of March 31)
■ Owners’ Equity/Owners’ Equity Ratio
Owners’ Equity (¥ Billions)
Owners’ Equity Ratio (%)
2003
16.6
2004
702.3
827.1
21.4
2005 856.9
23.5
2006 917.0
24.1
2007 969.5
24.6
(As of March 31)
Owners’ equity: net assets less minority interests
Summary of Cash Flows
Net cash provided by operating activities was ¥408.7 billion (US$3,464
million). However, as the last day of the fiscal year was a business holi-
day, this number includes ¥75.2 billion (US$637 million) in trade
payables and other current assets (liabilities), the payment of which was
shifted into the following fiscal year. Although there was an increase in
trade receivables, this was offset by the increase in earnings from busi-
nesses operations, in addition to the impact of the last day of the fiscal
year being a holiday, leaving overall net cash flow from operating activi-
ties roughly equivalent to the level of the prior fiscal year.
Net cash used in investing activities was ¥151.0 billion (US$1,280
million). Although outflows increased due to capital expenditures pri-
marily for the increase in production capacity at the Mie Plant, as a result
of the impact of the sales of shares in Fanuc Ltd., NIFTY Corporation
and Spansion Inc., together with an impact of ¥34.3 billion (US$2,915
million) attributable to the last day of the fiscal year being a holiday, there
was overall a decrease in cash outflows of ¥83.6 billion compared with
the previous fiscal year.
Free cash flow, the sum of operating and investment cash flows, was
positive ¥257.6 billion (US$2,184 million), an increase in free cash flow of
¥86.7 billion over fiscal 2005. Excluding the impact of sales of marketable
securities, this represents an increase in free cash flow of ¥152.8 billion.
Net cash used in financing activities was ¥234.9 billion
(US$1,991 million).
As a result of the above factors, cash and cash equivalents at the end
of the fiscal year totaled ¥448.7 billion (US$3,803 million), an increase
of ¥27.8 billion compared to end of the previous fiscal year.
Annual Report 2007 55