Pioneer 2012 Annual Report Download - page 25

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production in response to the flooding in Thailand.
Selling, general and administrative (SG&A) expenses
declined to ¥80,995 million from ¥85,279 million in
fiscal 2011. As a result, Pioneer recorded operating
income of ¥12,514 million in fiscal 2012, compared
with ¥15,817 million in fiscal 2011. R&D expenses,
which were included in cost of sales and SG&A
expenses, increased 4.7% to ¥34,590 million,
representing 7.9% of net sales. R&D expenses
were mostly incurred to enhance our technological
advantage in our strategic products, such as car
navigation systems.
• Other income (expenses)
In fiscal 2012, other income (expenses)—net
worsened by ¥8,724 million, to other expenses—net
of ¥6,611 million, compared with other income—net
of ¥2,113 million in fiscal 2011. This was primarily
the result of a worsened gain (loss) on sale and
disposal of property, plant and equipment—net
and the recording of a loss on transition to defined
contribution pension plan. A loss from disaster of
¥9,328 million caused by the flooding in Thailand
in fiscal 2012 was offset by insurance income of
¥10,062 million.
• Income before income taxes and minority interests
As a result of the foregoing, income before income
taxes and minority interests decreased to ¥5,903
million from ¥17,930 million in fiscal 2011.
• Income taxes
Income taxes for fiscal 2012 decreased to ¥1,649
million compared with ¥7,157 million for fiscal 2011,
principally due to the decline in income before
income taxes and minority interests.
• Net income
As a result of the above, net income for fiscal 2012
was ¥3,670 million, a decrease of ¥6,680 million
from ¥10,350 million in fiscal 2011.
Cash Flows
During fiscal 2012, operating activities provided net
cash in the amount of ¥18,213 million, which was
¥19,241 million less than in fiscal 2011. This was
primarily because of a ¥13,211 million increase in
trade receivables in fiscal 2012, compared with a
¥3,219 million decrease in fiscal 2011, combined
with a ¥12,027 million decrease in income before
income taxes and minority interests, despite a
¥6,380 million increase in trade payables.
Investing activities used net cash in the amount
of ¥21,781 million, compared with ¥3,886 million
net cash provided in fiscal 2011. This was mainly
because of a ¥15,843 million decrease in proceeds
from the sale of noncurrent assets, and the absence
of decreases in financial instruments of ¥8,414
million in fiscal 2011.
Financing activities provided net cash in the
amount of ¥1,719 million, compared with ¥74,244
million net cash used in fiscal 2011. This was
primarily a reflection of the redemption of convertible
bonds of ¥60,000 million in fiscal 2011, and a
¥1,442 million increase in the total of short-term
borrowings and long-term debt, compared with a
¥15,795 million decrease in fiscal 2011.
Foreign currency translation adjustments on
cash and cash equivalents increased ¥236 million
from the previous fiscal year end.
As a result, cash and cash equivalents as of
March 31, 2012 totaled ¥45,953 million, a ¥1,613
million decrease from March 31, 2011.
23
Pioneer Corporation Annual Report 2012