Mitsubishi 2003 Annual Report Download - page 44

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42
ANNUAL REPORT 2003 POWER TO CHANGE
FINANCIAL POSITION
In January 2003, MMC demerged its truck and bus operations and established MFTBC as a new wholly owned subsidiary. The
subsequent sale of a 58% interest in MFTBC in March 2003 removed the latter firm from the scope of consolidation. The cash,
total assets and interest-bearing debt of MFTBC (which amounted to ¥58.8 billion, ¥722.2 billion and ¥220.4 billion, respec-
tively, as of March 31, 2003) have therefore been excluded from the Consolidated Balance Sheets.
Assets
Total assets at the fiscal 2002 year-end amounted to ¥2,425.4 billion. This represented a year-on-year decline of ¥469.2 billion
relative to the previous year-end total of ¥2,894.6 billion. Current assets decreased by ¥138.3 billion to ¥960.7 billion. The
principal reason for these declines was the exclusion of truck and bus operations from the scope of consolidation following
the establishment of MFTBC.
Another significant change in this year’s accounts was the separate listing of sales finance receivables, which are assets of
financial services operations. The new classification reflects the importance of these assets. Previously, they were included
within short-term loans and long-term loans. As of March 31, 2003, long-term sales finance receivables amounted to ¥87.4
billion and short-term sales finance receivables amounted to ¥34.3 billion.
Fixed assets amounted to ¥1,464.6 billion as of March 31, 2003, which was equivalent to a year-on-year decline of ¥330.9
billion. This largely represented the effects of the deconsolidation of truck and bus operations.
Liabilities
Total liabilities at the fiscal 2002 year-end amounted to ¥2,127.7 billion, a year-on-year decline of ¥480.1 billion. The principal
reason for this decline was the deconsolidation of truck and bus operations following the establishment of MFTBC. Current
liabilities decreased by ¥411.0 billion to ¥1,645.7 billion. Long-term liabilities fell by ¥69.0 billion to ¥482.0 billion.
As of March 31, 2003, the outstanding balance of interest-bearing debt stood at ¥1,008.6 billion, which represented a year-
on-year decline of ¥296.0 billion. Even allowing for the effect of the deconsolidation of truck and bus operations, which removed
¥220.4 billion of interest-bearing debt from the balance sheet, MMC made further steady progress in reducing total debt. The
net reduction achieved in fiscal 2002 was thus ¥75.6 billion.
Stockholders’ Equity
As of March 31, 2003, total stockholders’ equity amounted to ¥280.3 billion, an increase of ¥9.6 billion relative to the previous
fiscal year-end. This represented: an increase in retained earnings due to net income of ¥37.4 billion, which reduced the deficit;
an increase in the capital surplus due to exchanges of shares in subsidiaries; and, partially offsetting these gains, a decrease
of ¥26.0 billion due to translation adjustments associated with the yen’s depreciation. The equity ratio improved by 2.2 points,
from 9.4%, to 11.6%. Stockholders’ equity per share amounted to ¥188.95, an improvement of ¥4.85 relative to the previous
year-end figure of ¥184.10.