Annual Report 2013

Cash FlowsNet cash used in operating activities amounted to ?21.0 billion. The main cash outfl owswere the increase in notes and accounts receivable-trade and the increase in inventoriesrefl ecting such factors as the upswing in crude oil prices as well as the decrease innotes and accounts payable owing mainly to cutbacks in the cost of fi nding alternativesupplies stemming from the suspension of operations at the Chiba Refi nery.Net cash used in investing activities totaled ?80.5 billion owing primarily to thepurchase of fi xed assets.Net cash provided by fi nancing activities was ?104.7 billion. This was due mainly toincreases in borrowings.As a result, cash and cash equivalents as of the fi scal year-end totaled ?129.7 billion,up ?7.3 billion from a year earlier.Capital ExpendituresIn the fi scal year under review, the Company made total capital expenditures of ?83.4billion, up ?55.5 billion from the previous year. In the Petroleum Business, expenditurewas directed toward production facilities at the refi neries, marketing facilities includingthe new construction and refurbishment of self-service stations, and consolidatedsubsidiaries. In the Petrochemical Business, the principal investment was related toproduction facilities of Cosmo Matsuyama Oil Co., Ltd., a consolidated subsidiary.Major capital expenditures in the Oil Exploration and Production Business includedoutlays for production facilities by Abu Dhabi Oil Co., Ltd., a consolidated subsidiary.Other substantial expenditures comprised investments in wind power generationfacilities by consolidated subsidiary EcoPower Co., Ltd. During fi scal 2012, the Companydid not dispose of or sell any important facilities in each of its mainstay businesses.(Billions of yen) Capital expenditures by segment are summarized as follows.FY2012 FY2011 ChangeCash fl ows from operating activities -21.0 43.6 -64.6Cash fl ows from investing activities -80.5 -25.8 -54.7Cash fl ows from fi nancing activities 104.7 11.6 +93.1Cash and cash equivalents at fi scalyear-end 129.7 122.4 +7.3Ratio of cash fl ows tointerest-bearing debt (years) ? 16.5 ?Note: The ratio of cash fl ows to interest-bearing debt = Interest-bearing debt divided by operating cash fl owsCash fl ows from operating activities, Depreciation and amortization Capital expenditures Cash dividends per share-25750100(FY)2550(Billions of yen)‘08 ‘09 ‘10 ‘11 ‘12 Cash fl ows from operating activities Depreciation and amortization060804020100(FY)(Billions of yen)‘08 ‘09 ‘10 ‘11 ‘1206428(FY)(Yen)‘08 ‘09 ‘10 ‘11 ‘12(Billions of yen)FY2012 FY2011 ChangePetroleum 24.1 17.5 +6.6Petrochemical 0.6 0.5 +0.1Oil Exploration and Production 57.3 9.6 +47.7Depreciation and Amortization 45.0 50.6 -5.6Notes: 1. Capital expenditure is recorded on an inspection basis.2. Depreciation and amortization included recovery of recoverable accounts under production sharing as well as depreciationapplicable to such items as intangible fi xed assets and long-term prepaid expenses.