Isuzu 2003 Annual Report Download - page 17

ISUZU MOTORS LIMITED ANNUAL REPORT 2003
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Financial Position
As of March 31, 2003, total consolidated assets were ¥1,028,844 million, a decline of ¥295,300 million from a year
earlier. This mainly reflects inventory reductions, more timely collection of accounts receivables, and the sale of prop-
erty, plant and equipment. Total current assets decreased ¥115,770 million to ¥433,170 million, reflecting declines in
cash and deposits, notes and accounts receivable and inventories. Net property, plant and equipment were ¥477,191
million, a decline of ¥73,987 million from a year ago. Total investments and advances declined ¥104,361 million. As a
result, fixed assets decreased ¥179,529 million to ¥595,673 million.
Total current liabilities were ¥660,857 million, a decrease of ¥211,283 million. The main components were declines
of ¥173,087 million in bank loans and ¥36,500 million in the current portion of long-term bonds. Long-term liabilities
were down ¥48,464 million at ¥338,776 million, mainly due to the redemption of corporate bonds. Interest-bearing
debt was reduced ¥220,813 million to ¥517,921 million.
Although Isuzu booked large losses to eliminate future uncertainties, which caused a sharp decline in sharehold-
ers’ equity, those losses were partly offset with the support of GM and the cooperation of Isuzu’s primary lenders. This
involved a capital increase of approximately ¥10.0 billion from General Motors Limited, a wholly owned subsidiary of
GM, in December 2002 and the conversion of ¥100.0 billion in debt into equity by primary lenders. Shareholders
approved a proposal to decrease capital and capital surplus at an Extraordinary Meeting held in November 2002, a
move that will help to improve Isuzu’s financial structure. As a result, total consolidated shareholders’ equity stood at
¥26,434 million at the fiscal year-end. Through these and other actions, Isuzu made significant progress toward improving
its financial health.
Cash Flows
Net cash provided by operating activities was ¥49,997 million, ¥5,182 million less than in the previous fiscal year.
Despite significant cash outflows accompanying large personnel cuts, cash was provided by efforts to reduce invento-
ries, improve collection of receivables and tighten cash flow management and other initiatives.
Net cash used in investing activities was ¥16,506 million, a reversal of ¥22,790 million from the previous fiscal year.
This mainly reflected the large cash outlays needed to recapitalize affiliated companies in North America and the
absence of the previous fiscal year’s sale of large real estate holdings, offset partly by proceeds from the sale of shares
in affiliated companies and the sale of finance receivables of an overseas finance subsidiary.
During fiscal 2003, the restructuring process placed a wide variety of funding requirements on Isuzu, yet the com-
pany continued to reduce interest-bearing debt through the redemption of bonds and other means. Net cash used in
financing activities was ¥50,029 million, ¥73,501 million less than in the previous fiscal year, in the absence of signifi-
cant proceeds from the sale of investments.