YAMAHA CORPORATION ANNUAL REPORT 2000

MANAGEMENT’S DISCUSSION AND ANALYSIS
Capital Expenditure
and Depreciation Expenses
(Billions of Yen)
50
35.1
’96
R&D Expenditure
(Billions of Yen)
’96
’97
’98
’99
’00
25
20
15
10
Total Shareholders’ Equity
and ROE
(Billions of Yen)
250
5.8
’96
47.4
’97
7.2
’97
37.1
’98
6.0
’98
34.3
’99
-7.1
’99
18.5
’00
Depreciation expenses
Capital expenditure
-18.7
’00
40
30
20
10
5
0
200
150
100
50
Total shareholders’ equity
Return on equity (ROE) (%)
0
0
15
In liabilities, although accrued expenses and bank loans declined, the recording
of accrued past service benefit expenses resulted in an increase of 1.4%, or
¥4.3 billion, to ¥318.0 billion (US$3.00 billion).
Total current assets declined ¥6.9 billion, to ¥206.0 billion (US$1.94 billion),
and total current liabilities fell ¥11.1 billion, to ¥178.3 billion (US$1.68 billion).
Working capital increased ¥4.2 billion compared to the previous year, to ¥27.7
billion (US$0.26 billion). The current ratio thus rose 3.1%, to 115.5%. Total
shareholders’ equity increased ¥6.9 billion, to ¥221.8 billion (US$2.09 billion).
CASH FLOWS
Although the Company incurred a loss before income taxes and minority interests
for the term of ¥47.6 billion, cash and cash equivalents at end of year
increased ¥14.3 billion compared to the previous fiscal year, to ¥33.6 billion
(US$0.32 billion). This was due to an increase in the accrued past service benefit
expenses, a decline in trade receivables and inventories, a curtailment of capital
expenditures, and the sale of investment securities.
Net cash provided by operating activities totaled ¥10.9 billion (US$0.10 billion),
due primarily to depreciation expenses, an increase in the accrued past service
benefit expenses, and a decline in trade receivables and inventory assets.
Due to the sale of investment securities, net cash provided by investing activities
totaled ¥12.5 billion (US$0.12 billion).
Net cash used in financing activities amounted to ¥7.5 billion (US$0.07 billion),
due to the repayment of loans.
EXCHANGE RATES
Owing to the rise in the value of the yen, net sales fell ¥33.0 billion and net
income declined ¥19.1 billion. Foreign currency exchange rates applied were
as follows:
Average rate: US$1=¥114.02 (¥130.23 in fiscal 1999)
Euro1=¥119.03 (¥144.19 in fiscal 1999)
Year-end rate: US$1=¥106.15 (¥120.55 in fiscal 1999)
Euro1=¥102.14 (¥129.29 in fiscal 1999)