Recipharm Annual Report 2006

Liquidity and cash flow
The Group’s unappropriated cash and cash equivalents, including the unutilised portion of the
granted bank overdraft facilities, amounted to MSEK 152.9 (91.9) as per 31 December 2006.
Apart from equity of MSEK 227.1 (174.9), the Group’s operations are partly financed by
long-term borrowings of MSEK 149.6 (63.6), and partly by a granted bank overdraft facility
of MSEK 75.0 (75.0).
Cash flow for the Group has been impaired and amounted to MSEK 19.4 (67.5) for the
financial year. This amount includes MSEK 42.2 (167.9) from operating activities, MSEK -
63.6 (-99.0) from investing activities and MSEK 40.7 (-1.4) from financing activities.
At the end of the financial year, the Group’s equity/assets ratio amounted to 28% (30), which
is lower than the Group’s long-term goal of 40%. The debt/equity ratio for the group
amounted to 0.5 (0.3), which is less than the long-term goal of 0.6.
Investments
The Group’s gross investments in tangible fixed assets amounted to MSEK 14.2 (19.8) for the
financial year. Of these investments, MSEK 10.9 (17.1) referred to investments in machinery
and equipment, MSEK 2.8 (2.4) to constructions in progress and MSEK 0.5 (0.4) to costs of
improvements in property not owned by the Group. The Group’s gross investments in product
rights amounted to MSEK 183.9 (76.7) for the financial year.
Summary covering several years
2006 2005 2004
Net sales, MSEK 918.7 835.2 602.9
Operating profit/loss, MSEK 89.5 69.8 60.3
Profit/loss after financial items, MSEK 84.7 65.7 58.6
Profit for the year, MSEK 71.2 49.2 43.4
Fixed assets, MSEK 302.9 173.5 105.2
Current assets, MSEK 495.3 404.9 285.2
Equity, MSEK 227.1 174.9 142.5
Provisions 30.3 20.1 14.5
Long-term liabilities, MSEK 169.8 71.7 52.2
Short-term liabilities, MSEK 371.0 311.7 181.3
Balance sheet total, MSEK 798.2 578.4 390.4
Operating margin, % 9.7 8.4 10.0
Return on capital employed, % 24 29 33
Equity/assets ratio, % 28 30 36
Debt/equity ratio 0.5 0.3 0.4
Number of employees 570 572 435
Refer to the section on accounting principles and the notes below for definitions of terms.