Omron 2004 Annual Report Download - page 37

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EXPLANATION OF BALANCE SHEETS
Assets, Liabilities and Shareholders’ Equity
Total assets as of March 31, 2004, stood at ¥592,273 million, up by
¥24,874 million (4.4 percent) compared to the end of the previous
year. Most of this increase was in the form of current assets (up by
¥21,113 million year-on-year). Cash and cash equivalents rose by
¥15,140 million (18.9 percent) accompanying increased free cash flow,
while notes and accounts receivable-trade rose by ¥11,296 million (9.9
percent) due mainly to increased orders. Property, plant, and equip-
ment grew only slightly, expanding by ¥1,678 million (1.1 percent).
Investments and other assets also rose only slightly, increasing by
¥2,083 million (1.7 percent), due to the increased value of investment
securities accompanying higher stock prices.
Current liabilities, long-term debt, and minority interests in sub-
sidiaries rose by ¥1,774 million (0.6 percent) compared to the end of
the previous fiscal year, reaching ¥317,563 million. Countering the
aforementioned increase in notes and accounts receivables-trade,
notes and accounts payable-trade rose by ¥11,572 million (17.0 per-
cent). Also, in conjunction with a bond redemption scheduled for
September 2004, the current portion of long-term debt (repayment
within one year) increased by ¥18,039 million, to ¥30,036 million. The
current ratio thus moved from 195 percent at the end of the previous
year to 171 percent. Due to accelerated repayments and the conver-
sion to short-term debt of the bond redemption amount, long-term
debt declined by ¥29,108 million, to ¥11,207 million. As a result, total
interest-bearing liabilities fell by ¥14,573 million (20.5 percent), to
¥56,687 million. Termination and retirement benefits decreased by
¥992 million (0.8 percent), to ¥119,738 million.
Shareholders’ equity increased by ¥22,162 million in terms of
“other” surplus funds resulting from increased net income for fiscal
2003, as well as increasing by ¥11,803 million due to net unrealized
gains on securities resulting from the increased value of investment
securities. Omron also repurchased ¥8,411 million worth of its own
shares, and total shareholders’ equity rose accordingly, by ¥23,100
million (9.2 percent) compared to the end of the previous fiscal year, to
¥274,710 million. Accumulated other comprehensive losses include
foreign currency translation adjustments, minimum pension liability
adjustments, net unrealized gain (loss) on securities, and net unreal-
ized loss on derivatives. As a result, the ratio of shareholders’ equity
to total assets improved to 46.4 percent from the 44.3 percent at the
end of the previous year, and the debt/equity ratio, defined as total lia-
bilities divided by shareholders’ equity, improved from 1.26 times to
1.16 times. Shareholder’s equity per share based on the number of
shares outstanding at the end of the year was ¥1,148.33, compared
to ¥1,036.01 a year earlier.
CASH FLOW
Cash and cash equivalents as of the end of fiscal 2003 were up by
¥15,140 million (18.9 percent) compared to the previous year, rising to
¥95,059 million. The effects of exchange rate fluctuations during the
fiscal year were minimal.
Cash flow provided by operating activities for the year totaled
¥80,687 million in inflow, up by ¥38,833 million from the previous year.
The main factor responsible for this was the sharp increase in net
income for the year.
Net cash used in investing activities totaled ¥34,484 million in out-
flow, an increase of ¥3,851 million. The main factor responsible was
¥3,661 million increase in capital investment (for a total of ¥38,115 mil-
lion) accompanying Omron’s growth strategy.
Net cash used in financing activities was ¥28,119 million in outflow,
compared to outflow of ¥1,996 million in the previous fiscal year. The
main factor responsible was accelerating the repayment of net bor-
rowings of short-term bank loans and long-term debt. The Omron
Group paid dividends of ¥2,942 million, with ¥8,411 million expended
on share repurchases, for a total use of funds of ¥11,353 million.
(%)
FY99 FY00 FY01 FY03
40 50
120 150
80 100
160 200
200 250
Working Capital & Current Ratio
00
Working capital [left axis]
Current ratio [right axis]
FY02
(Billions of yen)
(Times)
FY99 FY00 FY01 FY03
40 1.0
20 0.5
60 1.5
80 2.0
Outstanding Interest-Bearing Liabilities
& Debt/Equity Ratio
00.0
Outstanding interest-bearing liabilities [left axis]
Debt/equity ratio [right axis]
FY02
(Billions of yen)
FY99 FY00 FY01 FY03
10
0
30
20
40
50
Free Cash Flow
-10
Free cash flow
FY02
(Billions of yen)