Fujitsu 2014 Annual Report Download - page 116

–100
0
100
300
200
–90.4
49.1
113.4
296.4
2010 2012 2013 20142011
46.6
Cash Flows
Condensed Consolidated Statements of Cash Flows
(Unit: billion yen)
Years ended March 31 2013 2014
YoY
Change
I Cash flows from operating activities . . 71.0 175.5 104.5
II Cash flows from investing activities . . (161.4) (128.8) 32.6
I+II Free cash flow . . . . . . . . . . . . . . . . . (90.4) 46.6 137.1
[Excluding one-time items] . . . . . . . . . . [8.4] [14.4] [6.0]
III Cash flows from financing activities . . 100.3 (44.7) (145.1)
IV Cash and cash equivalents at
end of year . . . . . . . . . . . . . . . . . . . . 284.5 301.1 16.6
Note: “Free cash flow excluding one-time items” refers to free cash flow exclud-
ing the following:
• Proceeds from sales of available-for-sale securities;
• Proceeds from business transfers; and
• A special contribution (¥114.3 billion) during the year ended March 31,
2013 into pension schemes of the Company’s UK subsidiary.
Net cash provided by operating activities during fiscal 2013
amounted to ¥175.5 billion ($1,704 million), a year-on-year increase
of ¥104.5 billion. Contributing factors include an outflow of approxi-
mately ¥50.0 billion ($485 million) for the payment of restructuring
charges relating to the LSI device business and business outside
Japan, as well as approximately ¥26.0 billion ($252 million) in
outflows for the payment of income tax withheld in relation to divi-
dends received from subsidiaries in Japan in the fourth quarter of the
fiscal year. On the other hand, income before income taxes and
minority interests improved this fiscal year, and, in fiscal 2012, there
was a one-time outflow of ¥114.3 billion ($1,110 million) for a
special payment to the pension fund held by a UK subsidiary.
Net cash used in investing activities was ¥128.8 billion ($1,251
million). Outflows mainly consisted of capital expenditure for pur-
chases of property, plant and equipment amounting to ¥114.1 billion
($1,108 million), primarily related to datacenters, and purchases of
intangible assets amounting to ¥64.8 billion ($630 million), primar-
ily software. There was an inflow of cash from the sale of investment
securities and an inflow of cash from the maturity of a time deposit
that had been held for fund management purposes. Compared to
fiscal 2012, net outflows decreased by ¥32.6 billion.
Free cash flow, the sum of cash flows from operating and invest-
ing activities, was positive ¥46.6 billion ($453 million), representing
an increase in net cash inflows of ¥137.1 billion compared to the
previous fiscal year. Inflows from the sales of investment securities
and the sale of a business, excluding one-time items such as the
special contribution in the previous fiscal year to the pension fund
held by the Company’s UK subsidiary, resulted in increased cash
inflows of ¥6.0 billion in fiscal 2013, largely unchanged from the
previous fiscal year.
Net cash used in financing activities was ¥44.7 billion ($435
million). Short-term borrowings in the previous fiscal year that were
used to finance a special contribution to the pension fund held by
the Company’s UK subsidiary were repaid and replaced by straight
bonds and other long-term borrowings. This led to a decrease in net
cash inflows of ¥145.1 billion compared to fiscal 2012.
As a result of the above factors, cash and cash equivalents at the
end of fiscal 2013 were ¥301.1 billion ($2,924 million), an increase
of ¥16.6 billion compared to the end of fiscal 2012.
To ensure efficient funding when the need for funds arises, the
Group views the maintenance of an appropriate level of liquidity as
an important policy with respect to its financing activities. “Liquidity”
refers to cash and cash equivalents and the total unused balance of
financing frameworks based on commitment lines established with
multiple financial institutions. As of March 31, 2014, the Group had
liquidity of ¥498.8 billion ($4,843 million), of which ¥301.1 billion
($2,924 million) was cash and cash equivalents and ¥197.7 billion
($1,919 million) was the yen value of unused commitment lines.
To raise funds from global capital markets, the Group has
acquired bond ratings from Moody’s Investors Service (Moody’s),
Standard & Poor’s (S&P), and Rating and Investment Information,
Inc. (R&I). As of March 31, 2014, the Company had bond ratings
(long-term/short-term) of A3 (long-term) from Moody’s, BBB+ (long-
term) from S&P, and A (long-term) and a-1 (short-term) from R&I, all
unchanged from the previous fiscal year end.
(¥ Billions)
(Years ended March 31)
Free Cash Flow
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS
114 FUJITSU LIMITED ANNUAL REPORT 2014