Olympus 2009 Annual Report Download - page 33

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In other income and expenses, the Company recorded a net
expense of ¥125,888 million (US$1,325 million).
Accounting for these factors, loss before provision for income
taxes was ¥91,301 million (US$961 million), a turnaround from income
of ¥94,612 million in the previous fiscal year. Provision for income
taxes decreased to ¥25,870 million (US$272 million), resulting in net
loss for the fiscal year under review of ¥114,810 million (US$1,209
million). For fiscal 2009, basic net loss per share came to ¥428.83
(US$4.51), a turnaround from net income per share of ¥214.48 in the
previous fiscal year.
ANALYSIS OF FINANCIAL POSITION
Total Assets
As of March 31, 2009, total assets stood at ¥1,106,318 million
(US$11,645 million), down 18.6% from the previous year-end.
Total current assets dropped 12.6% year on year to ¥474,767 mil-
lion (US$4,998 million). This was mainly attributable to decreases in
cash and time deposits of ¥21,404 million, notes and accounts receiv-
able of ¥33,297 million.
Investments and other assets as of the end of the year were down
¥196,570 million, to ¥468,438 million (US$4,931 million).
Accounting for these factors, total asset turnover was 0.89 times,
up from 0.83 times in the previous fiscal year.
Total Liabilities and Net Assets
Total liabilities decreased 5.3% year on year to ¥937,534 million
(US$9,869 million), mainly due to a 48.4% fall in total current liabili-
ties from March 31, 2008, to ¥341,905 million (US$3,599 million).
The drop in current liabilities was principally due to decreases in
short-term borrowings of ¥230,552 million, current maturities of long
term debt of ¥26,068 million, other payable of ¥21,083 million,
accrued expenses of ¥18,141 million and notes and accounts payable
of ¥16,998 million.
In contrast, total non-current liabilities jumped 81.6% to ¥595,629
million (US$6,270 million), due mainly to an increase in long-term
debt, less current maturities.
Reflecting these factors, the equity ratio decreased 11.6 percent-
age points to 14.6%.
Cash Flows
Cash and cash equivalents as of March 31, 2009, grew ¥12,878 million
year on year, to ¥132,720 million (US$1,397 million).
Net cash provided by operating activities fell ¥47,378 million from
¥89,006 million in the previous fiscal year to ¥41,628 million (US$438
million). The major cash inflows were depreciation and amortization
of ¥44,804 million (US$472 million) and amortization of goodwill of
¥101,459 million (US$1,068 million). The major cash outflows com-
prised loss before provision for income taxes of ¥91,301 million
(US$961 million) and a decrease in accounts payable of ¥14,340 mil-
lion (US$151 million).
Net cash used in investing activities improved ¥283,575 million
compared with the corresponding period of the previous fiscal year to
¥20,728 million (US$ 218 million). The principal cash outflows were
purchases of property, plant and equipment of ¥43,829 million
(US$461 million) and payments for acquisition of subsidiaries of
¥40,390 million (US$425 million). The major cash inflows were with-
drawals from time deposits of ¥38,440 million (US$405 million) and
sales of investment securities of ¥40,538 million (US$427 million).
Net cash used in financing activities totaled ¥3,751 million (US$39
million), a turnaround from net cash provided by financing activities of
¥164,401 million in fiscal 2008. The major cash outflows were a
decrease in short-term borrowings of ¥218,220 million (US$2,297 mil-
lion), redemption of bonds of ¥35,199 million (US$371 million), repay-
ments of long-term debt of ¥33,603 million (US$354 million),
purchase of treasury stock of ¥10,240 million (US$108 million) and
dividends paid of ¥10,749 million (US$113 million). The major cash
inflow was proceeds from long-term debt of ¥259,719 million
(US$2,734 million).
Research & Development Expenditures
The Olympus Group continuously pursues new technologies through
its R&D activities in order to bolster its core competencies in current
businesses and create new business opportunities. In fiscal 2009,
R&D expenditures amounted to ¥70,010 million (US$737 million), an
increase of 6.2% compared with the previous fiscal year and equiva-
lent to 7.1% of total net sales.
Capital Expenditures
Capital expenditures grew 11.1% from the previous fiscal year to
¥55,632 million (US$586 million). Depreciation and amortization as of
the year-end rose to ¥44,804 million (US$472 million).
30,404
37,522
29,758 27,022
44,696
50,070
44,804
55,632
46,127 44,444
Capital Expenditures /
Depreciation and Amortization
(Millions of yen)
05 06 07 08 09
Depreciation and amortization
Capital expenditures
R&D Expenditures
(Millions of yen)
05 06 07 08 09
55,531
65,928 70,010
47,720 45,935
Return on Equity
(%)
05 06 07 08 09
15.3
16.8
–4.8
10.7
-44.4