Panalpina Annual Report 2006

Report of the Executive Board
22 Panalpina Annual Report 2006
Financial positions
Balance sheet
Liabilities
in million CHF
2006
2005
(1,131)
Assets
(962)
Condensed consolidated balance sheet
Current assets
0
1,820
2,108
The Group’s current assets increased by 19.3%
from CHF 1,486 million on 31 December 2005
to CHF 1,773 million on 31 December 2006. The
increase in current assets is primarily attributed
to the increase in cash and trade receivables.
The total balance of cash and financial assets
increased by CHF 144 million as a result of the
Group’s strong cash generation. The Group’s net
cash position increased from CHF 210 million
to 347 million.
Trade receivables which comprise 56% of total
assets increased 7.0% from CHF 1,108 million
on 31 December 2005 to CHF 1,185 million on
31 December 2006. The increase in trade receivables
was below to the increase of 12.3% in
forwarding revenues and in coherence with the
growth of the business.
Trade receivables as a percentage of forwarding
services of the preceding twelve months decreased
from 13.4% on 31 December 2005 to 12.7% on
31 December 2006. End of 2006, management
determined based on analyses of historical trends,
Group’s experience and markets observation, to
Net assets (equity)
in million CHF
2006
2005
31 December
2006
(mCHF)
858
978
31 December
2005
(mCHF) % change
Cash and financial assets 374 230 62
Other current assets 1,399 1,255 11
Property, plant and equipment 162 152 6
Intangible assets 102 109 –6
Other non­current assets 72 73 –2
Total assets 2,108 1,820 16
Debt (current and non­current) (27) (20) 34
Other current liabilities (986) (837) 18
Other non­current liabilities (117) (105) 12
Total liabilities (1,131) (962) 18
Total liabilities 8 858 14
Capital and reserves attributable to Panalpina shareholders 970 851 14
Equity attributable to minority interests 8 7 15
Total equity 978 858 14
A full consolidated balance sheet is presented on page 71 of the Consolidated Financial Statements.
adjust the estimates for allowance of trade receivables
not individually impaired. The effect of this
change in accounting estimates has resulted in an
increase in trade receivables in approximately
CHF 11 million. In consideration of this change, the
outstanding trade receivables in percentage of
forwarding services would decrease by 0.1 percentage
points to 12.6% compared to 13.4% in 2005.
Non­current assets
The Group’s non­current assets increased modestly
by 0.4% from CHF 334.3 million on 31 December
2005 to CHF 335.6 million on 31 December 2006,
primarily as a result of the impact in property, plant
and equipment which increased from CHF 152.5
million on 31 December 2005 to CHF 161.6 million
on 31 December 2006.
Current liabilities
The Group’s current liabilities increased by 18.1%
from CHF 855.5 million on 31 December 2005
to CHF 1,010.1 million on 31 December 2006. The
increase in current liabilities was primarily due
to an increase in trade payables and accrued cost
of services resulting from better management of