Financial SummaryFinancial Review
Assets
Total assets at fiscal year-end were valued at ¥208,461 million, a decrease of ¥12,811 million compared with the previous fiscal year-end. Current assets decreased ¥15,177 million mainly due to five factors; 1) a decrease of ¥12,045 million in cash and cash equivalents, 2) a decrease of ¥1,369 million in deferred tax assets, 3) a decrease of ¥972 million in raw materials and supplies, 4) a decrease of ¥789 million in work in process, and 5) an increase of ¥674 million in trade notes and accounts receivable. Fixed assets increased ¥2,365 million mainly due to an increase of ¥6,418 million in property, plant and equipment and a decrease of ¥3,046 million in deferred tax assets.
Selling, General and Administrative (SG&A) Expenses
SG&A expenses were ¥34,742 million for the fiscal year ended March 31, 2012, down ¥2,395 million from the previous year. The contributors to the decrease were decreases in tariffs and commission fees, a decrease in the provision for employee salaries and benefits, and a decrease in R&D expenses.
Liabilities
Total liabilities at fiscal year-end were ¥104,061 million, up ¥10,414 million compared to the previous fiscal year-end. This was due primarily to four factors; 1) an increase of ¥8,000 million in bonds payable, 2) an increase of ¥6,034 million in short-term borrowings, 3) a decrease of ¥2,695 million in accrued amounts payable, and 4) a decrease of ¥1,702 million in trade notes and accounts payable.
Other Income (Expenses)
The net amount of other income (expenses) was expenses of ¥6,614 million, down ¥5,831 million compared with the previous year. These expenses reflect the posting of business structure improvement expenses, and the absence this year of last year’s posting of a loss on (earthquake) disaster.
Net Assets
Total net assets at the fiscal year-end were ¥104,400 million, down ¥23,225 million as compared to the previous fiscal year-end due primarily to a decrease of ¥21,599 million from a net loss, a decrease of ¥881 million in cash dividends from retained earnings, and a decrease of ¥662 million from foreign currency translation adjustments.
Overview of Capital Investment
Capital investment during the year ended March 2012 amounted to ¥29,101 million. The overall breakdown is as follows.
[Electronic Components]
Capital investment of ¥28,510 million was used mainly to boost productivity of capacitors, and ferrite and applied products, and for R&D facilities.
[Optical Media and Others]
Capital investment of ¥591 million was used mainly to launch new optical media products.
Cash Flows
Net cash provided by operating activities in the fiscal year reached ¥5,534 million (a 78.1% decrease compared with the previous fiscal year). The major factors include loss before income taxes and minority interests of ¥14,624 million, depreciation and amortization of ¥19,250 million, business structure improvement expenses of ¥4,276 million, an impairment loss on property, plant and equipment of ¥268 million, an increase in trade receivables of ¥1,115 million, and a decrease in inventories of ¥1,549 million.
Net cash used in investing activities totaled ¥28,945 million (a 74.4% increase over the previous fiscal year). The major cash outflow was ¥29,101 million for purchases of property, plant and equipment.
Net cash provided by financing activities for the fiscal year was ¥11,388 million (compared to ¥8,948 million in net cash used in the previous fiscal year). Major factors included a net increase in short-term borrowings of ¥6,053 million, proceeds from long-term borrowings of ¥12,000 million, repayments of long-term borrowings of ¥12,563 million, and proceeds from issuance of bonds of ¥7,959 million.
As a result, cash and cash equivalents at end of the year were ¥26,671 million, a decrease of ¥12,140 million as compared to the previous fiscal year-end.
Financing
The TAIYO YUDEN Group practices consolidated management of Group funds with the objective of increasing the efficiency of funding operations. We collect surplus funds from subsidiaries to supply necessary funds to other subsidiaries, while procuring funds externally to cover any shortfalls. We have adopted a Cash Management System (CMS) to minimize external interest-bearing debt.
Financing from external sources at fiscal year-end consisted of the following items:
1. A current portion of convertible-bond-type bonds with subscription rights to share of ¥19,635 million
2. Short-term borrowings of ¥9,031 million
3. The current portion of long-term borrowings of ¥4,147 million
4. Bonds payable of ¥8,000 million
5. Convertible bonds with stock acquisition rights of ¥365 million
6. Long-term borrowings of ¥17,297 million
7. Lease liabilities of ¥2,374 million.
Borrowings are made in Japan at fixed interest rates. The Company also has a commitment line of ¥10,000 million effective for three years to ensure financial stability. We renewed this commitment line in December 2011 with the intention of having these funds available for any emergencies that may severely impact cash flow. As for the fiscal year-end, the Company has not used any of this commitment line.
The TAIYO YUDEN Group has the ability to generate cash flow through sound financial management and operating activities. This enables the procurement of operating capital and funds for capital investment required for the future to maintain growth on a group-wide basis.
