Yamaha 2011 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2011 Yamaha annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

56 Yamaha Corporation
and the payment of income taxes in the fiscal year under review, in
contrast with a refund received in the previous fiscal year.
Net cash used in investing activities totaled ¥9,740 million, com-
pared with ¥12,711 million in fiscal 2010. This represents a ¥2,971 mil-
lion decrease in cash used, which was mainly due to higher proceeds
from sales of investment securities.
Net cash used in financing activities was ¥10,080 million, in con-
trast to net cash of ¥9,867 million used in the previous fiscal year. This
represents a ¥213 million increase in cash used, which was due to higher
expenditures for share buybacks, despite lower dividend payments.
As a result, with foreign currency translation effects also taken
into account, the fiscal 2011 year-end balance of cash and cash
equivalents amounted to ¥58,446 million, representing a year-on-year
decrease of ¥788 million.
Capital Expenditures/Depreciation and Amortization
Capital expenditures in fiscal 2011 came to ¥10,439 million, a decrease
of ¥4,041 million, or 27.9%, year on year, from ¥14,480 million in the
previous fiscal year. This was due to the absence of large projects such
as the reconstruction of the Ginza Building, which was completed in
fiscal 2010, and the integration of domestic piano manufacturing bases
at the Kakegawa Factory. The figure for fiscal 2010 includes expendi-
tures of ¥525 million in the lifestyle-related products business, which
was terminated in that fiscal year. If we exclude this expenditure, then
total capital expenditures decreased ¥3,515 million, or 24.2%. Capital
expenditures in the musical instruments business decreased ¥3,654
million, or 31.3%, year on year, from ¥11,663 million to ¥8,008 mil-
lion. This was primarily due to investments associated with Xiaoshan
Yamaha Musical Instruments Co., Ltd.’s factory relocation and invest-
ments to increase production capacity of factories overseas.
In the AV/IT business, capital expenditures were down by ¥303
million, or 22.5%, year on year, from ¥1,348 million to ¥1,044 million. As
a result of investments in production capacity expansion for magnetic
sensors and other products, capital expenditures in the electronic
devices business came to ¥921 million, up ¥262 million, or 39.9%, from
the previous year-end figure of ¥659 million. Capital expenditures
increased significantly in the others business, rising ¥179 million, or
63.1%, from ¥284 million in fiscal 2010, to ¥464 million.
Depreciation and amortization amounted to ¥12,814 million, a
decline of ¥1,324 million, or 9.4%, from ¥14,139 million in fiscal 2010.
R&D Expenses
R&D expenses in fiscal 2011 increased by ¥679 million, or 3.1%, year on
year, from ¥21,736 million to ¥22,416 million. The ratio of R&D expenses
to net sales was 0.8 of a percentage point higher than in fiscal 2010,
rising from 5.2% to 6.0%.
Most of this spending was directed at product development
primarily in digital musical instruments, and in the AV/IT and semi-
conductor businesses. Specifically, the spending supported elemental
technology research and product development for hybrid pianos that
blend acoustic and digital technologies, development of various sound
generators to make digital musical instruments more competitive,
development of new professional audio equipment for the commer-
cial audio equipment market leveraging digital network technology,
and development of products to expand the genre of AV products. In
semiconductors, spending was used for development of high value-
added analog and hybrid semiconductors and development of new
products for mobile phones, amusement equipment and magnetic
sensors for smartphones.
R&D budgets also funded programs to research and develop basic
sound- and music-related technologies (sound sources, voice synthesis,
architectural acoustics, etc.) and acoustic materials. New devices such
as speakers and sensors, as well as interfaces were also researched.
Free Cash Flows
(Millions of yen)
0
90,000
12,906
07/3 08/3 09/3 10/3 11/3
-30,000
60,000
0
30,000
Capital Expenditures / Depreciation Expenses
(Millions of yen)
0
30,000
10,439
12,814
07/3 08/3 09/3 10/3 11/3
0
20,000
10,000
� Capital expenditures
� Depreciation expenses
R&D Expenses
(Millions of yen)
0
30,000
20,000
10,000
07/3 08/3 09/3 10/3 11/3
22,416