Toshiba 2007 Annual Report Download - page 76

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FINANCIAL POSITION AND CASH FLOWS
Total assets increased by ¥1,204.9 billion from the end of March 2006 to ¥5,932.0 billion (US$50,270.9 million), largely as a
result of the acquisition of Westinghouse in October 2006.
Shareholders’ equity improved by ¥106.1 billion from the end of March 2006 to ¥1,108.3 billion (US$9,392.6 million),
mainly as a result of generating net profit in this period.
Total debt increased by ¥241.0 billion from the end of March 2006 to ¥1,158.5 billion (US$9,817.7 million). While this
increase was due to funding the acquisition of Westinghouse, it was effectively minimized by concerted efforts to reduce
debt, including sales of securities and fixed assets, to reinforce profitability, and to improve working capital.
As a result of the foregoing, the debt-to-equity ratio as of the end of March 2007 was 105%, a 13-point deterioration from
the end of March 2006.
Free cash flow was minus ¥151.3 billion, a ¥349.3 billion deterioration from the year-earlier period. The main cause of this
was increased cash flow from investing activities for the acquisition of Westinghouse.
CASH FLOWS
In the fiscal year under review, net cash provided by operating activities amounted to ¥561.5 billion, an increase of ¥60.1 bil-
lion from the previous fiscal year.
Net cash used in investing activities totaled ¥712.8 billion, up ¥409.4 billion from the previous fiscal year. This was due to
costs incurred from the acquisition of Westinghouse.
Net cash provided by financing activities amounted to ¥154.8 billion in the current year compared with ¥235.3 billion in
net cash used in financing activities during the prior year. In the current year proceeds from long term debt were used prima-
rily to finance the acquisition of Westinghouse.
The effect of exchange rate movements was to increase cash by ¥34.9 billion. After accounting for the aforementioned and
other factors, cash and cash equivalents at the fiscal year-end increased by ¥38.4 billion to ¥309.3 billion.
PRINCIPAL SUBSIDIARIES AND AFFILIATED COMPANIES
As of March 31, 2007 Percentage held by the Group
Subsidiaries: Affiliated Companies:
Japan Japan
Toshiba Building Co., Ltd. 100 Toshiba Machine Co., Ltd. 34
Toshiba Elevator and Building Toshiba Mitsubishi-Electric Industrial
Systems Corporation 80 Systems Corporation 50
Toshiba Medical Systems Corporation 100
Toshiba Plant Systems & Services
Corporation 62
Toshiba TEC Corporation 52
U.S.A. Brazil
Toshiba America, Inc. 100 Semp Toshiba Amazonas S.A. 40
Westinghouse Electric Company* 77
* Toshiba Nuclear Energy Holdings (US) Inc., 77% of whose voting rights are substantially owned by Toshiba Corporation, substantially owns all of the equity of Westinghouse Electric Company.
Management’s Discussion and Analysis