Sony 2015 Annual Report Download - page 70

For all segments excluding the Financial Services segment, there was a net cash inflow of 262.8 billion yen,
a decrease of 40.9 billion yen, or 13.5 percent year-on-year. This decrease was primarily due to the negative
impact of an increase in inventories, resulting from a larger increase in inventories in the Devices segment,
compared to a decrease in the fiscal year ended March 31, 2015, partially offset by positive factors such as a
year-on-year improvement in net income after taking into account non-cash adjustments (including depreciation
and amortization, other operating expense, net, deferred income taxes and equity in net income of affiliated
companies) and a year-on-year smaller decrease in notes and accounts payable, trade.
The Financial Services segment had a net cash inflow of 495.3 billion yen, an increase of 35.6 billion yen,
or 7.7 percent year-on-year. This increase was primarily due to an increase in insurance premium revenue at
Sony Life.
Investing Activities: During the fiscal year ended March 31, 2016, Sony used 1,030.4 billion yen of net cash
in investing activities, an increase of 390.8 billion yen, or 61.1 percent year-on-year.
For all segments excluding the Financial Services segment, there was a net cash outflow of 334.9 billion
yen, an increase of 231.3 billion yen, or 223.2 percent year-on-year. This increase was primarily due to an
increase in the amount of fixed asset purchases, such as semiconductor manufacturing equipment, partially offset
by factors such as cash inflow from the sale of certain shares of Olympus Corporation.
The Financial Services segment used 694.0 billion yen of net cash, an increase of 157.1 billion yen, or
29.3 percent year-on-year. This increase was mainly due to a year-on-year increase in payments for investments
and advances at Sony Life.
In all segments excluding the Financial Services segment, net cash used in operating and investing activities
combined* for the fiscal year ended March 31, 2016, was 72.1 billion yen, a 272.1 billion yen deterioration from
cash generated in the fiscal year ended March 31, 2015.
Financing Activities: Net cash provided by financing activities during the fiscal year ended March 31, 2016,
was 380.1 billion yen, compared to a net cash outflow of 263.2 billion yen in the fiscal year ended March 31,
2015.
For all segments excluding the Financial Services segment, there was a 144.8 billion yen net cash inflow,
compared to a net cash outflow of 315.4 billion yen in the fiscal year ended March 31, 2015. This change was
primarily due to the issuance of new shares and convertible bonds in the fiscal year ended March 31, 2016,
partially offset by factors such as repayments of long-term debt.
In the Financial Services segment, financing activities provided 224.9 billion yen of net cash, an increase of
180.5 billion yen, or 406.6 percent year-on-year. This increase was primarily due to a larger increase in short-
term borrowings and policyholders’ account at Sony Life and an increase in customer deposits at Sony Bank,
compared to a decrease in the fiscal year ended March 31, 2015.
Total Cash and Cash Equivalents: Accounting for the above factors and the effect of fluctuations in foreign
exchange rates, the total outstanding balance of cash and cash equivalents at March 31, 2016 was 983.6 billion
yen. Cash and cash equivalents of all segments excluding the Financial Services segment was 749.9 billion yen at
March 31, 2016, an increase of 8.0 billion yen, or 1.1 percent compared with the balance as of March 31, 2015.
In order to manage cash balance globally, Sony utilizes a system in which cash surpluses among subsidiaries are
deposited with SGTS and cash shortfalls are covered by loans through SGTS. Sony’s ability to repatriate cash
held in foreign subsidiaries may be restricted or delayed by local laws; however, any such amounts are
considered insignificant. Refer to Cash Management in Item 5 B. Liquidity and Capital Resources. Sony believes
that it continues to maintain sufficient liquidity through access to a total, translated into yen, of 522.5 billion yen
of unused committed lines of credit with financial institutions in addition to the cash and cash equivalents
balance at March 31, 2016. Within the Financial Services segment, the outstanding balance of cash and cash
equivalents was 233.7 billion yen at March 31, 2016, an increase of 26.2 billion yen, or 12.6 percent compared
with the balance as of March 31, 2015.
70