Nikon 2011 Annual Report Download - page 28

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on year), and 6.8% as a proportion of sales. By segment,
spending in the Precision Equipment Business segment
totaled ¥20,838 million, the Imaging Products Business
segment ¥23,814 million, the Instruments Business
segment ¥4,512 million and the Other Business segment
¥11,607 million.
Financial Position
Total assets at March 31, 2011, amounted to ¥829,909
million, an increase of ¥89,277 million from the end of the
previous fiscal year (March 31, 2010). Total current assets
increased ¥106,331 million, due mainly to increases in cash
and cash equivalents, and in inventories. Noncurrent assets
(net property, plant and equipment plus total investments
and other assets) decreased ¥17,054 million from the end
of the previous fiscal year as a result of greater asset
efficiency.
Total liabilities amounted to ¥440,689 million, an
increase of ¥72,127 million from the end of the previous
fiscal year. The Company lowered its lease obligations and
other borrowings, and took steps to balance the cycle of
bond issuances and redemption.
Total equity amounted to ¥389,220 million, an increase
of ¥17,150 million, due mainly to an increase in retained
earnings. The equity ratio decreased 3.3 percentage points
from the end of the previous fiscal year, to 46.9%.
Cash Flow Analysis
Net cash provided by operating activities amounted to
¥123,614 million in the fiscal year ended March 31, 2011.
This was due mainly to ¥46,506 million in income before
income taxes; along with increases of ¥29,304 million
in advances received; and ¥47,028 million in notes and
accounts payable trade.
Net cash used in investing activities amounted to
¥23,590 million, a decrease of ¥23,518 million from curbs
on acquisition of property, plant and equipment, and
investment securities.
Net cash used in financing activities amounted to ¥20,122
million, a decrease of ¥11,355 million from cash used in the
previous fiscal year. This mainly reflected ¥19,892 million
in proceeds from the issuance of bonds; ¥10,000 million
in proceeds from long-term debt; and ¥32,900 million in
expenditures for redemption of bonds.
Basic Policy on Shareholder Returns and
Current and Subsequent Term Dividends
Nikon’s basic dividend policy is to “improve reflection of
business performance based on paying a steady, continuous
dividend emphasizing the standpoint of investors while also
expanding investment for future growth and technological
development (capital expenditures and R&D development) and
striving to strengthen competitiveness.” In accordance
with this policy, the Company aims for a total return ratio
of 25% or more, and to otherwise provide shareholder
returns through dividend increases and the acquisition of
treasury stock.
For the fiscal year ended March 31, 2011, Nikon has
increased its year-end dividend by ¥10, to ¥14 per share,
which along with the interim dividend of ¥5 per share is a
full-year dividend of ¥19 per share (payout ratio of 27.6%).
For the fiscal year ending March 31, 2012, we plan to pay
a full-year dividend of ¥27 per share (of which, the interim
dividend will be ¥10 per share).
Note: ROE is calculated as net income (loss) divided by
average shareholders’ equity, and ROA is calculated as
net income (loss) divided by average total assets.
Balance Sheet Analysis
March 31, 2010 and 2011 % of Total Assets
2010 2011
Total assets 100.0% 100.0%
Total current assets 65.4 71.2
Inventories 27.9 28.5
Property, plant and equipment 16.9 14.3
Investments and other assets 17.7 14.5
Total current liabilities 40.5 41.2
Short-term borrowings 2.0 1.8
Long-term debt, less current portion 5.6 8.2
Total equity 50.2 46.9