Yamaha 2008 Annual Report Download - page 60

58 Yamaha Corporation
Cash Flows
Net cash provided by operating activities in fiscal 2008 was
¥37,225 million, a decline of ¥2,507 million from ¥39,732 million
in fiscal 2007, This was due mainly to an increase in income tax
and other tax payments.
Net cash provided by investing activities was ¥41,999 million. In
fiscal 2007, the Company used ¥22,427 million, but during the year
under review recorded a gain of ¥67,778 million as a result of the
sale of investments in subsidiaries and affiliates, including the sale of
a portion of Yamaha’s equity holdings in Yamaha Motor Co., Ltd.
Net cash used in financing activities totaled ¥19,314 million,
representing an increase of ¥11,068 million from the fiscal 2007
figure of ¥8,246 million. This primarily reflected an increase in
refunds of resort membership deposits related to the recreation
segment and an increase in cash dividends paid.
As a result of the above, the fiscal 2008 year-end balance of
cash and cash equivalents amounted to ¥103,371 million,
including the net effect of exchange rate changes and changes
in the scope of consolidation, representing a year-on-year
increase of ¥57,445 million.
Capital Expenditures and Depreciation
Capital expenditures in fiscal 2008 declined to ¥24,394 million
from ¥25,152 million, a decrease of ¥758 million, or 3.0% year on
year. The musical instruments segment posted a year-on-year
increase of ¥1,655 million, to ¥16,472 million from ¥14,817 million
in fiscal 2007. This reflects investment in molds for new products,
investments to increase production capacity at Hangzhou Yamaha
and PT. Yamaha Indonesia, and increased capital spending asso-
ciated with consolidation of piano production plants in Japan.
Capital expenditures in the electronic equipment and metal
products segment were ¥2,435 million, down ¥1,960 million from
¥4,395 million in the previous fiscal year. This decline reflected the
decline in investment by Yamaha Kagoshima Semiconductor Inc.
following the completion of miniaturization as well as the decrease
in investment resulting from the transfer of the electronic metal
products business. In the recreation segment, capital expenditures
decreased ¥864 million, to ¥600 million from ¥1,464 million in the
previous fiscal year, due to the transfer of four resort facilities.
Total depreciation and amortization expense amounted to
¥20,289 million, increasing by ¥333 million from the fiscal 2007
figure of ¥19,956 million. Of this, ¥1.5 billion comprised an increase
in depreciable assets resulting from the application of a 250%
declining-balance method for assets acquired on or after April 1,
2007 under a revision of the Corporate Tax Law of Japan and the
five-year amortization based on the straight-line method of the
residual values of assets fully depreciated to the allowable limit.
R&D Expenses
R&D expenses in fiscal 2008 increased by ¥645 million, or 2.7%
year on year, from ¥24,220 million to ¥24,865 million. The ratio
of R&D expenses to net sales was 0.1 points higher than in fiscal
2007, rising from 4.4% to 4.5%.
Most of this spending was directed at product development in
digital musical instruments, and in the AV/IT and semiconductor
businesses. Specifically, the spending supported research and
product development of hybrid pianos that blend acoustic and
digital technologies, as laid out in the medium-term management
plan; development of digital products leveraging digital network
technology; and development of high-value-added semiconduc-
tors, including silicon microphones that integrate MEMS* technol-
ogy with analog and digital technologies.
R&D budgets also funded programs to develop basic sound-
related technologies in areas such as speakers, sound field control,
voice synthesis, sound sources, and DSP**; MEMS*; materials for
audio equipment; and technologies related to the environment.
* Micro Electro Mechanical Systems (MEMS) are devices in which components
such as sensors, actuators and electronic circuitry are integrated on a single
silicon substrata. Specific examples include silicon microphones, sensors, etc.
** Digital Signal Processor/Processing (DSP) is a general term for the digital
signal-processing technologies used to process and generate sounds and
music. This includes many unique technologies developed by Yamaha.
Practical applications include the sound controls in AV equipment, effects
used in professional mixing consoles, sound-generating chips in mobile
phones and 3D sound technologies.
24,394
20,289
04/3 05/3 06/3 07/3 08/3
0
30,000
20,000
10,000
Capital Expenditures
Others
Electronic Equipment
and Metal Products
AV/IT
Musical Instruments
Depreciation
Capital Expenditures/Depreciation
(Millions of Yen)
24,865
04/3 05/3 06/3 07/3 08/3
0
25,000
20,000
15,000
10,000
5,000
Others
Lifestyle-Related
Products
Electronic Equipment
and Metal Products
AV/IT
Musical Instruments
R&D Expenses
(Millions of Yen)