MITSUBISHI ESTATE Annual Report 2014

(2) Consolidated Balance SheetsCompared with March 31, 2013, total assets as of March 31, 2014, increased ¥53,847 million, to ¥4,765,368 million, principally as a result of the operating, investing, and financing activities previously identified, which led to movements in assets and liabilities.Total liabilities contracted ¥27,234 million, to ¥3,318,275 million. The balance of interest-bearing debt as of March 31, 2014, declined ¥112,375 million compared with the year-end balance in fiscal 2013, to ¥1,973,042 million. Deducting cash and cash equivalents, the balance of net interest-bearing debt as of March 31, 2014, decreased ¥145,277 million year on year, to ¥1,748,303 million.Net assets expanded ¥81,081 million year on year, to ¥1,447,093 million. Reductions in net assets caused by changes in such items as land revaluation reserve and remeasurements of defined benefit plans were more than offset by increases in retained earnings, foreign currency translation adjustments, and other items.Matters Related to Rental PropertiesMitsubishi Estate and some of its consolidated subsidiaries own certain office buildings and retail facilities in Tokyo and other major cities in Japan as well as in the United States and the United Kingdom, with the aim of obtaining rental revenue from these buildings and facilities. Because certain leased office buildings among these are used by the Company or some of its consolidated subsidiaries, the Company has classified such buildings as rental properties containing self-use space.Analysis of Financial Position(1) Consolidated Cash FlowOn a consolidated basis, cash and cash equivalents at the end of the fiscal year under review increased ¥32,902 million year on year, to ¥224,739 million. Major cash inflows included income before income taxes and minority interests, decrease in invento-ries, and long-term borrowings. Major cash outflows included purchases of property and equipment and the repayment of long-term borrowings.Cash Flows from Operating ActivitiesNet cash provided by operating activities was ¥336,489 million, up ¥214,202 million compared with the previous fiscal year. Income before income taxes and minority interests amounted to ¥108,685 million, while depreciation and amortization—a non-cash item—totaled ¥74,805 million. These and other cash inflows were adjusted to reflect movements in inventories, notes and accounts payable, and other items.Cash Flows from Investing ActivitiesNet cash used in investing activities totaled ¥133,537 million, up ¥84,455 million year on year. The increase in net cash used was primarily due to purchases of property and equipment. Cash Flows from Financing ActivitiesNet cash used in financing activities amounted to ¥177,514 million, compared with net cash provided by financing activities of ¥27,150 million recorded in the previous fiscal year. The decline can mainly be attributed to repayment of long-term borrowings and corporate bonds compared with fiscal 2013.Cash FlowMillions of yenTotal Assets / ROAMillions of yen%Total Equity / Total Equity RatioMillions of yen% Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Total Assets (left scale) ROA (right scale) Total Equity (left scale) Total Equity Ratio (right scale)01,000,0003,000,0005,000,0004,000,000012,000,0002345201020112012201320140400,000800,0001,600,0001,200,00001020304020102011201220132014–400,000–100,000–300,000100,000200,000400,0000–200,000300,00020102011201220132014Financial sectionYears ended March 3148MITSUBISHI ESTATE CO., LTD.