A N N U A L R E P O R T 1 9 9 9

Cash Dividends per Share
(¥)
15
10
5
0
’95 ’96 ’97 ’98 ’99
and ¥0.3 billion (US$2.1 million) in
equity in earnings of affiliates. Net
income fell 43.6%, to ¥26.7 billion
(US$220.7 million), and net income per
share declined to ¥37.29 (US$0.31),
from ¥65.50 in the previous year.
Return on equity fell to 4.0%, from
7.4% in the previous year, and return
on assets was 2.1%, down from 3.9%.
Given our solid customer base and the
range of measures currently being
implemented, we expect steady
improvement in performance over
the medium to long term.
Dividends
Dividends per share were ¥15.00
(US$0.12), the same as in the previous
year. Toppan’s approach to the payment
of dividends is to provide shareholders
with a stable yet gradually increasing flow
of dividend payments while retaining
within the Company the resources needed
to prepare for future growth.
The Company allocates retained
earnings to the renewal and expansion
of existing production facilities, principally
in the strategically important field of
electronics, and to investment in new
business fields. Through these activities,
we work to strengthen the Company and
improve profitability, and thus to provide
a stable return to our shareholders.
Financial Position
Toppan gives top priority to maintaining
a strong financial condition and to generating
cash flow sufficient for the Company
to make the investment needed for
smooth operational administration and
future growth. Toppan met those goals
during the year under review.
Cash flow declined 20.2% during
the year under review, to ¥76.1 billion
(US$629.2 million), due to the fall in net
income. Nonetheless, the Company continued
to maintain an adequate level of
cash flow. Net cash provided by operating
activities was down 63.2%, to ¥49.4
billion (US$408.2 million). This decrease
was primarily attributable to lower net
income and to a decline in payables,
accrued expenses and income taxes.
Net cash used in investing activities
was up 2.7%, to ¥95.3 billion
(US$787.5 million). Capital expenditures
declined 24.3%, to ¥93.5 billion
(US$772.8 million). In order to establish
a foundation for future growth, in
recent years the Company has invested
aggressively in strategically important
fields, especially electronics. In other
fields, however, we reduced our capital
investment due to our performance in
the year under review.
Cash used in financing activities was
¥13.7 billion (US$113.6 million), of
which cash dividends paid accounted
for ¥10.8 billion (US$89.6 million). Cash
provided by financing activities totaled
¥33.6 billion in the previous year, due
to an increase in long-term indebtedness,
which included the issuance of
¥50.0 billion in unsecured bonds. (See
Note 3 of Notes to Consolidated
Financial Statements.)
Although cash and cash equivalents
at the end of the term were down
24.9%, to ¥179.7 billion (US$1,484.9
million), we maintained ample liquidity.
Our fundamental policy is to maintain
capital spending for renewal and renovation
purposes within the limits of cash
flow, and, for such large investment
Net Cash Provided by
Operating Activities
(Billion ¥)
180
150
120
90
60
30
0
’95 ’96 ’97 ’98 ’99
Capital Expenditures
(Billion ¥) (Billion ¥)
140
120
100
80
60
40
20
0
’95 ’96 ’97 ’98 ’99
60
30
0
Depreciation & Amortization
(right scale)
21