Annual Report 2002 - Software AG

32
Increased liquidity
At year-end 2002, the Group had cash and cash
equivalents of 75.4 million euros. This represented
an increase of 50.2 percent in comparison with 2001.
Net cash provided by operating activities totaled
40.7 million euros. On December 31, 2002,
the Group had unused credit lines of 43.6 million
euros.
A healthy balance sheet
Total assets fell from 504.0 million euros to 440.8
million euros. The most important changes to the
balance sheet compared with year-end 2001 were
as follows:
Intangible assets consist primarily of goodwill.
Goodwill is subject to straight-line amortization
over a period of 10 years from the date of acquisition.
In fiscal 2002, goodwill amortization
amounted to 21.8 million euros, with 176.6 million
euros remaining on the balance sheet.
Tangible assets declined from 41.6 million euros
to 37.0 million euros, chiefly as a result of lower
capital expenditure, prompted by lower business
volumes during fiscal 2002.
Financial assets fell from 8.4 million euros to 5.9
million euros. Long-term investments rose to 5.3
million euros, whereas the value of participations
sank to 0.5 million euros as a result of writing
down one particular holding.
Cash and cash equivalents, and net
cash provided by operating activities
Cash and cash equivalents
Net cash provided by operating
activities
2002
2001
As a result of lower business volumes, a lower
number of days’ sales outstanding (DSO), and
currency translation effects, receivables and other
assets declined to 132.6 million euros. DSO fell
from 110 in 2001 to 93 in 2002. Receivables to
the value of 16.4 million euros were factored
during 2002.
Despite a dividend for 2001 of 11.7 million euros,
shareholders’ equity increased to 214.5
million euros. The primary causes were a consolidated
net income for 2002 of 33.5 million
euros, and currency translation effects when
consolidating subsidiaries. Equity-to-total-assets
ratio for the Group increased from 39 to
49 percent.
Provisions declined from 114.9 million euros to
108.7 million euros. Due to the reduced payroll,
personnel-related provisions were lower. During
the year, provisions totaling of 17.6 million euros
were formed for restructuring. Of this amount,
6.3 million euros remained unused.
Liabilities fell to 35.9 million euros, partly as a
result of lower business volumes but also because
of the repayment of debt arising from acquisitions.
On December 31, 2002, there were
no amounts due to banks.
Deferred income fell by 33.6 million euros to 81.7
million euros, a key reason being currency translation
effects.
40.7
50.2
75.4
83.2