Omron 2005 Annual Report Download - page 46

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previous year. Shareholder’s equity per share based on the number
of shares outstanding at the end of the year was ¥1,284.81, com-
pared to ¥1,148.33 at the end of the previous year.
Cash Flow
Cash and cash equivalents at the end of this year were reduced
¥14,440 million over the previous year to ¥80,619 million with
minimal effects of exchange rate fluctuations this year.
In terms of cash flows from operating activities, net income
increased ¥3,365 million. However, there was also an increase in
tax payments, leading to an inflow decrease of ¥19,611 million
over the previous year to ¥61,076 million.
With regard to cash flows from investing activities, capital
expenditures for growth infrastructure development and invest-
ments in affiliates were proactively implemented, leading to an
increase in outflow of ¥1,566 million over the previous year to
¥36,050 million.
As for cash flows from financing activities, due to increases in
repayment of borrowed money in sums above those in the previ-
ous year, outflow reached ¥40,684 million (in comparison to a
¥28,199 million outflow in the previous year).
(%)
100
50 100
200
150 300
Working Capital and Current Ratio
00
(Billions of yen)
FY00 FY01 FY02 FY03
Working capital [left axis]
Current ratio [right axis]
FY04
(Times)
40 1.0
20 0.5
60 1.5
80 2.0
Outstanding Interest-Bearing Debts
and Debt/Equity Ratio
00
(Billions of yen)
FY00 FY01 FY02 FY03
Outstanding interest-bearing debts [left axis]
Debt/equity ratio [right axis]
FY04
10
0
30
20
40
50
Free Cash Flow
-10
FY00 FY01 FY02 FY03
Free cash flow
FY04
(Billions of yen)
Business and Other Risks
The following risks may influence the Omron Group’s manage-
ment results and financial condition (including share price), and
Omron believes that these items may substantially affect investor
decisions.
Note that items referring to the future reflect the Omron
Group’s forecasts and assumptions as of June 24, 2005, the date
of publication of these materials.
1. Economic Conditions
The primary business of the Omron Group is consumer and com-
merce electronic components used in the manufacture of control
system equipment and other electrical and electronic equipment
by the manufacturing sector and in capital investment related
areas. Accordingly, demand for Omron Group products is affect-
ed by economic conditions in these markets. Also, the Omron
Group procures raw materials and semi-finished products in a
wide variety of forms, and rapid increases in demand could result
in supply shortages and/or sudden increases in prices that could
halt production and/or cause sudden increases in costs.
Both in Japan and overseas, therefore, market forces affecting
suppliers to, and purchasers from, the Omron Group can result in
the contraction of demand for our products, thereby possibly hav-
ing a negative impact on the Group’s operating results and finan-
cial condition.
2. Risks Accompanying Overseas Business Activities
The Omron Group actively conducts business activities such as
production and sales in overseas markets. The Group may be
subject to operating difficulties in overseas countries related to
possible social unrest due to factors including differences in cul-
ture or religion, political turmoil and uncertainty in economic
trends, differences in business customs in areas such as the
structure of relationships with local businesses and collection of
receivables, specific legal systems and investment regulations,
changes in tax systems, labor shortages and problems in the
labor-management relationship, epidemics, and terrorism, wars,
and other political circumstances.