Fujitsu 2011 Annual Report Download - page 101

0
100
200
400
300 257.6
113.4
296.4
23.4
38.1
2007 2009 2010 20112008
the level declined by ¥35.7 billion to ¥74.3 billion ($895 million). In
addition, the future minimum lease payment required under non-
cancelable operating leases at the end of fiscal 2010 decreased by ¥12.4
billion from the end of fiscal 2009 to ¥85.6 billion ($1,032 million).
*4 Unrecognized obligations consist primarily of unrecognized actuarial losses.
“Actuarial losses” refer to disparities that occur chiefly as the result of differ-
ences between expected and actual returns from pension plan assets under
management, differences between the estimates used for the actuarial
calculation of retirement benefit obligations and actual obligations, and
changes in estimates. Of these differences, those that have not yet been
expensed are referred to as “unrecognized actuarial losses.” The Group
expenses actuarial losses that arise over the average remaining service
period of its employees.
Condensed Consolidated Balance Sheets (Unit: billion yen)
As of March 31 2010 2011
YoY
Change
Assets
Current assets . . . . . . . . . . . . . . . . 1,871.9 1,760.6 (111.3)
Investments and long-term loans . . 414.1 372.8 (41.2)
Property, plant and equipment . . 662.7 638.6 (24.0)
Intangible assets . . . . . . . . . . . . . . 279.2 251.9 (27.2)
Total assets . . . . . . . . . . . . . . . . . . 3,228.0 3,024.0 (203.9)
Liabilities
Current liabilities . . . . . . . . . . . . . . 1,560.0 1,507.8 (52.2)
Long-term liabilities . . . . . . . . . . . 719.6 562.5 (157.1)
Total liabilities . . . . . . . . . . . . . . . . 2,279.6 2,070.3 (209.3)
Net assets
Shareholders’ equity . . . . . . . . . . . 865.8 903.9 38.0
Accumulated other
comprehensive income . . . . . . . . (67.1) (82.6) (15.4)
Minority interests in
consolidated subsidiaries . . . . . . 149.6 132.4 (17.1)
Total net assets . . . . . . . . . . . . . . . 948.3 953.7 5.4
Total liabilities and net assets . . . 3,228.0 3,024.0 (203.9)
Cash and cash equivalents at
end of year . . . . . . . . . . . . . . . . . . . 420.1 358.5 (61.5)
Interest-bearing loans . . . . . . . . . . . . 577.4 470.8 (106.6)
Net interest-bearing loans . . . . . . . . 157.2 112.2 (45.0)
Owners’ equity . . . . . . . . . . . . . . . . . . 798.6 821.2 22.5
Notes: Year-end balance of cash and cash equivalents: Cash and time deposits
+ Investment securities – Time deposits and investment securities with a
maturity of greater than three months
Year-end balance of interest-bearing loans: Short-term borrowings and
current portion of bonds payable (Current liabilities) + Long-term
borrowings and bonds payable (Non-current liabilities)
Net debt (Interest-bearing loans – cash and cash equivalents)
Owners’ equity: Net assets – Subscription rights to shares – Minority
interests in consolidated subsidiaries
Reference: Financial Indicators (Unit: billion yen)
Years ended March 31 2010 2011 YoY Change
Inventories. . . . . . . . . . . . . . . 322.3 341.4 19.1
[inventory turnover ratio] . . . [14.88] [13.65] [(1.23)]
[Monthly inventory
turnover rate] . . . . . . . . . . . [1.04] [1.02] [(0.02)]
Shareholders’ equity ratio . . . 26.8% 29.9% 3.1%
Owners’ equity ratio (%) . . . . 24.7% 27.2% 2.5%
D/E ratio (times) . . . . . . . . . . 0.72 0.57 (0.15)
Net D/E ratio (times) . . . . . . . 0.20 0.14 (0.06)
Note: Inventory turnover ratio: Net sales ÷ {(Beginning balance of inventories +
year-end balance of inventories) ÷ 2}
Monthly inventory turnover: Net sales ÷ Average inventories during
period* ÷ 12
Shareholders’ equity ratio: Shareholders’ equity ÷ Total assets
Owners’ equity ratio: (Net assets – Subscription rights to shares – Minority
interests in consolidated subsidiaries) ÷ Total assets
D/E ratio: Interest-bearing loans ÷ Owners’ equity
Net D/E ratio: Net debt (Interest-bearing loans – cash and cash equivalents) ÷
Owners’ equity
* Average inventories during period are calculated as the average of the
ending balance of inventories for each of the four quarters of the fiscal year.
Cash Flows
Net cash flows provided by operating activities during fiscal 2010
were ¥255.5 billion ($3,079 million), a year-on-year decrease of
¥39.8 billion. The decrease was the result of an increase in invento-
ries stemming from the initiation of full-scale production and delivery
of the Next-Generation Supercomputer system and the effect of the
earthquake. Other factors were the payment during fiscal 2010 of
costs associated with both the restructuring initiatives in the services
business in Europe and a settlement with a German copyright orga-
nization on royalty payments related to the personal reproduction of
copyrighted materials by PC users from the previous year.
Net cash used in investing activities was ¥142.1 billion ($1,712
million). Although there was cash inflow from the sale of investment
securities and from the final sale of shares in conjunction with the
transfer of the HDD business in the prior fiscal year, there were
outflows of ¥122.2 billion ($1,473 million) for the acquisition of
property, plant and equipment, primarily for use in outsourcing
services, and ¥59.6 billion ($719 million) for the acquisition of
intangible assets, resulting in higher cash outflows of ¥143.1 billion
compared with the previous fiscal year. During fiscal 2009, there was
an inflow of ¥116.8 billion from the sale of investment securities,
including shares in FANUC Ltd., in accordance with FANUC’s solicita-
tion to repurchase its shares, an inflow of ¥50.4 billion in conjunction
with the conversion of Fujitsu Technology Solutions (Holding) B.V.
and FDK Corporation into consolidated subsidiaries and the aggrega-
tion of the companies’ cash and cash equivalents, and an inflow of
¥17.5 billion in line with the transfer of the HDD and other business.
Free cash flow (the sum of cash flows from operating and invest-
ing activities) was positive ¥113.4 billion ($1,367 million), repre-
senting a decrease of ¥182.9 billion year on year. Excluding one-time
items, such as proceeds from sales of investment securities, free cash
flow decreased by ¥38.2 billion.
(¥ Billions)
Free Cash Flow
(Years ended March 31)
099FUJITSU LIMITED ANNUAL REPORT 2011
FACTS & FIGURES
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS