Toshiba 2000 Annual Report Download - page 44

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RESEARCH AND DEVELOPMENT
Consolidated R&D expenditures increased 6% to ¥334.4 billion (US$3,155 million). This was 5.8% of net sales, compared with 6%
in the previous year. Toshiba is actively involved in all areas of R&D, from basic research to product development and production
technology. Major themes are wireless networks, digital broadcasting equipment, W-CDMA terminals, fine design rules in semi-
conductor production, LSIs, polysilicon LCDs, new MRI and digital copiers. Toshiba estimates that fiscal 2000 R&D expenditures
will be ¥350 billion (US$3,302 million).
CAPITAL INVESTMENTS
Capital expenditures, which include investments in property, plant and equipment of ¥298.5 billion (US$2,816 million), were ¥318.8
billion (US$3,007 million), a decrease of 16% compared to the previous fiscal year. Capital expenditures for electronic devices &
components were ¥156.8 billion (US$1,479 million), 49% of the total. Significant elements of these expenditures were fine process facili-
ties at the Yokkaichi Operations, memory manufacturing facilities at subsidiary Yokkaichi Toshiba Electronics Corporation and low-tem-
perature polysilicon LCD production facilities at Fukaya Operations. In other segments, capital expenditures were ¥51.4 billion (US$485
million) in information & communications and industrial systems, ¥42.9 billion (US$405 million) in digital media, ¥7.2 billion (US$68 mil-
lion) in power systems, ¥16.4 billion (US$154 million) in home appliances and ¥44.1 billion (US$416 million) in others.
FINANCIAL POSITION
As of March 31, 2000, total assets were ¥5,702.2 billion (US$53,794 million), ¥321.4 billion less than at the end of the previous fiscal
year. Inventories decreased by ¥160.7 billion due to the completion of plants in power systems and the inventory reductions made
possible by the introduction of supply chain management. Current assets declined by ¥142.1 billion. Property, plant and equipment
declined by ¥90.2 billion due to lower levels of capital investments. Total debt was reduced by ¥214.3 billion from the previous year to
¥1,967.3 billion (US$18,559 million) as operating cash flows increased substantially. Accrued pension and severance costs went
down by ¥106.3 billion due to growth in the value of pension assets. Shareholders’ equity decreased by ¥68.2 billion compared to the
previous year to ¥982.1 billion (US$9,265 million). Factors here were the year’s net loss and a negative foreign currency translation
adjustment.
CASH FLOWS
Net cash provided by operating activities totaled ¥435.9 billion (US$4,113 million), a considerable increase over last year’s ¥264.9
billion. This is mainly attributable to the decrease in inventories and the increase in depreciation and amortization.
Net cash used in investing activities came to ¥293.2 billion (US$2,766 million), which included ¥298.5 billion (US$2,816) of acqui-
sition of property and equipment, the main component being manufacturing facilities for electronic devices. Capital investments were
down from the previous year, but falling proceeds from the sale of marketable securities and other factors resulted in an increase in
cash requirements of ¥13.1 billion.
Net cash used in financing activities was ¥158.7 billion (US$1,497 million) due to continued efforts to reduce debt.
In addition to the above items, the effect of exchange rate changes was a negative ¥16.6 billion (US$157 million). This resulted in a
net decrease of ¥32.5 billion in cash and cash equivalents, bringing the total to ¥465.2 billion (US$4,389 million).