Yamaha 2003 Annual Report Download - page 27

ANNUAL REPORT 2003 25
01020304050
’03
’02
’01
’00
’99
Capital Expenditures
and Depreciation (Billions of Yen)
Capital Depreciation
expenditures
17.6
36.4
28.6
17.3
18.8
050100 150 200 250
’03
’02
’01
’00
’99
Total Shareholders’ Equity
and ROE (Billions of Yen, %)
Total shareholders’ ROE
equity
8.6
–7.1
–18.7
6.4
–5.2
020406080
’03
’02
’01
’00
’99
Interest-Bearing Liabilities (Billions of Yen, %)
Interest-bearing Interest-bearing liabilities
liabilities to total assets ratio
Note: Interest-bearing liabilities=
loans + convertible bonds – cash and bank deposits
8.9
14.9
10.0
13.5
10.8
Despite the Company recording a sizeable extraordinary loss, net income
amounted to ¥17.9 billion, reflecting income from equity in earnings of
unconsolidated subsidiaries and affiliates. The extraordinary loss of ¥11.6
billion included a ¥7.7 billion devaluation loss on the Company’s holdings
in banks and other companies and ¥2.3 billion in expenses incurred in the
restructuring of the recreation and CDR/RW businesses.
FINANCIAL POSITION
Thanks to YAMAHA’s strong inventory reduction efforts throughout the year,
overall inventories, which were larger than desired at the beginning of the
year, fell ¥4.1 billion, to ¥80.1 billion, which is close to optimal size.
Although we reduced inventories and holdings of investment securities in
banks and other companies compared with the previous year-end, total
assets were up ¥3.1 billion, to ¥512.7 billion, due to gains on the revalua-
tion of investment securities held in equity-method affiliates as well as
increased accounts receivable thanks to higher sales of semiconductors
to corporate clients.
Despite a rise in notes and accounts payable, total liabilities were down
¥8.7 billion, to ¥294.3 billion, owing to decreased pension obligations and
reduced borrowings due to a fall in working capital. Current assets grew
¥9.9 billion, to ¥221.1 billion, while current liabilities amounted to ¥158.1
billion, up ¥13.6 billion from the previous year-end. As a result, working
capital declined ¥3.7 billion, to ¥62.9 billion. The liquidity ratio was
139.8%, down 6.3 percentage points from the previous year-end. Buoyed
by higher earnings, total shareholders’ equity increased ¥12.5 billion, to
¥214.5 billion.
CASH FLOWS
Cash and cash equivalents at the end of year were up ¥2.4 billion, to ¥43.0 bil-
lion. Net cash provided by operating activities was ¥33.0 billion, reflecting
increased income and reduced inventories. Net cash used in investing activi-
ties, reflecting the acquisition of investment securities and capital investment,
amounted to ¥21.6 billion, while free cash flow totaled ¥11.4 billion.
INTEREST-BEARING LIABILITIES
The balance of interest-bearing liabilities, after the deduction of cash and
bank deposits, improved ¥9.1 billion compared with the previous year-end,
to ¥46.0 billion, reflecting increased income and reduced inventories.
In addition, the debt-to-equity ratio was 0.42 times.
EXCHANGE RATES
Calculated using the average exchange rate prevailing during the term, the
yen increased ¥3 against the U.S. dollar and weakened ¥11 against the euro,
causing a ¥4.5 billion rise in net sales.
The Company recorded ¥4.9 billion in foreign currency exchange gains
thanks to the strong euro and other factors.
Sales conversion rates and settlement rates were as follows:
Sales conversion rates: US$1=¥121.97 (¥124.97 in fiscal 2002)
Euro 1=¥120.88 (¥110.44 in fiscal 2002)
Settlement rates: US$1=¥121.87 (¥123.74 in fiscal 2002)
Euro 1=¥116.54 (¥106.82 in fiscal 2002)