Annual Report in English - Consilium

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CAsH FloW stAteMent, PARent CAsH FloW stAteMent, PARent note 2011 2010 operating activities operating profit/loss before financial items 1 -19.3 -22.4 Amortisation 9, 10 0.1 – -19.2 -22.4 interest received 0.3 – interest paid -3.9 -3.3 Cash flow from operating activities before changes in working capital -22.8 -25.7 increase/decrease in other current receivables 28.9 -52.6 Changes in trade payables – -1.0 increase/decrease in other current operating liabilities 0.2 0.5 Cash flow from operating activities 6.3 -78.8 Investing activities investments in subsidiaries – -1.6 Cash flow from investing activities – -1.6 Financing activities proceeds from borrowings 21 – 63.8 Repayment of loans -6.4 – dividend paid – -4.1 Repurchase of warrants -0.1 – Group contributions received 0.5 20.0 Cash flow from financing activities -6.0 79.7 Cash flow for the year 0.3 -0.7 Cash & cash equivalents at beginning of year 0.1 0.8 Cash & cash equivalents at end of year 0.4 0.1 36
ACCountInG PolICIes All amounts are in seK millions unless otherwise stated. Accounting Policies The most important accounting policies applied in preparing the consolidated financial statements are described below. These policies have been applied consistently for all presented years unless otherwise stated. Basis of preparation Consilium’s consolidated financial statements have been prepared in accordance with the swedish Annual Accounts Act, RfR 1 supplementary Accounting Rules for Groups, and international financial Reporting standards (ifRs) and ifRiC interpretations as adopted by the eu. The financial statements have been prepared on the historical cost basis unless otherwise indicated. new and amended standards applied by the Group none of the ifRs or ifRiC interpretations that are mandatory for financial periods beginning on or after 1 January 2011 has had a significant impact on the Group. new standards, amendments and interpretations of existing standards not yet effective and which the Group will not apply early. iAs 19 employee Benefits was amended in June 2011. The amendment requires the Group to discontinue use of the corridor approach and instead recognise all actuarial gains and losses in other comprehensive income as incurred. past service cost is recognised immediately. interest expenses and expected return on plan assets will be replaced by a net interest calculated using the discount rate, based on the net surplus or net deficit of the defined benefit plan. The Group intends to apply the amended standard for the financial year beginning 1 January 2013, and has not yet evaluated its effects. The standard has not yet been adopted by the eu. ifRs 9 financial instruments deals with the classification, measurement and reporting of financial liabilities and assets. ifRs 9 was issued in november 2009 for financial assets and in october 2010 for financial liabilities and replaces the parts of iAs 39 relating to the classification and measurement of financial instruments. The categories in iAs 39 are replaced by two classifications – those measured at fair value and those measured at amortised cost. The classification is determined at initial recognition using a business model test and a contractual cash flow characteristics test. for financial liabilities, there are no significant changes compared with iAs 39. The main change relates to liabilities designated as measured at fair value through profit or loss. for these liabilities, the amount of change in the fair value that is attributable to the credit risk of the liability is required to be presented in other comprehensive income rather than in profit or loss, unless this causes an accounting mismatch. The Group intends to apply the new standard no later than the financial year beginning 1 January 2015, and has not yet evaluated its effects. The standard has not yet been adopted by the eu. ifRs 10 Consolidated financial statements, which is based on existing principles, establishes control as the basis for consolidation. The standard provides additional guidance in determining whether control exists when this is difficult to assess. The Group will apply ifRs 10 for the financial year beginning 1 January 2013, and has not yet evaluated its full impact on the financial statements. The standard has not yet been adopted by the eu. ifRs 11 Joint Arrangements is based on the core principle that a party to a joint arrangement determines the type of joint arrangement in which it is involved by assessing its rights and obligations. There are two types of joint ownership: joint operations and joint ventures. proportionate consolidation of joint ventures is not allowed. The Group uses the proportionate method at present. ifRs 11 is expected to have the following effect on income statement items (based on 2011 figures): sales -71.9 Gross profit/loss -23.1 operating profit/loss -6.8 profit/loss after financial items 0.0 The Group intends to apply ifRs 11 for the financial year beginning 1 January 2013, and has not yet assessed its full impact on the financial statements. The standard has not yet been adopted by the eu. ifRs 12 disclosure of interests in other entities includes disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities. The Group will apply ifRs 12 for the financial year beginning 1 January 2013, and has not yet evaluated its full impact on the financial statements. The standard has not yet been adopted by the eu. ifRs 13 fair Value measurement provides more consistent and less complex measurement of fair value. The standard defines fair value, sets out in a single ifRs a framework for measuring fair value and requires disclosures about fair value measurements. ifRs 13 does not determine when an asset or liability is measured at fair value. Rather, the measurement and disclosure requirements of ifRs 13 apply when another ifRs requires or permits the item to be measured at fair value. The Group has not yet evaluated the full impact of ifRs 13 on its financial reports. The Group intends to ACCountInG PolICIes apply the new standard in the financial year beginning 1 January 2015. The standard has not yet been adopted by the eu. none of the other ifRs and ifRiC interpretations that are not yet effective is expected to have a significant impact on the Group. significant accounting estimates and assumptions preparation of the financial statements in accordance with ifRs requires use of critical accounting estimates. in addition, management is required to make certain judgements when applying the Group’s accounting policies. Areas involving a significant amount of judgement, which are complex or require use of critical accounting estimates are as follows. Assumptions used in goodwill impairment testing The Group tests goodwill for impairment in accordance with the principles described under intangible assets. The assumptions and accounting estimates regarding projected cash flows and the discount rate using a weighted average capital cost are described in note 10. Cash flow projections are based on the best estimate of future income and operating expenses. impairment testing has not identified any goodwill impairment. The margin used in the testing is such that company management does not believe any changes in individual variables would cause the value in use to fall below the carrying amount. management also believes that even a certain amount of movement in the most critical variables will still not result in impairment losses. Assumptions used in impairment testing of capitalised development expenditure The Group tests capitalised development expenditure for impairment in accordance with the principles described under intangible assets. Cash flow projections are based on the best estimate of future income and operating expenses. impairment testing has not identified any impairment of capitalised development expenditure. The margin used in the testing was such that company management does not believe any changes in individual variables will cause the value in use to fall below the carrying amount. management also believes that even a certain amount of movement in the most critical variables will still not result in impairment losses. Assumptions used in impairment testing of deferred tax assets A deferred tax asset is recognised in the balance sheet for the carryforward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused losses can be utilised. The Group’s forecasts are used as a basis for defining future profit. The carrying amount of a deferred tax asset is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the deferred tax asset to be utilised. uncertainty regarding the future economic situation or other difficulties in the assessment of future profit may result in a lower taxable profit in subsidiaries which have unused tax losses. The probability of the Group being able to utilise unused tax losses is based on factors such as estimates and recent years’ results. All unused tax losses have been recognised as deferred tax assets. trade receivables Receivables are recognised at net amounts due less any provision for doubtful debts, which are assessed on an individual basis. The net value reflects the amounts expected to be received based on the known circumstances at the reporting date. Changed circumstances, such as an increased number of defaults or a change in an existing customer’s financial position, may result in deviations in the net value measurement. The current market situation has resulted in an increased focus on customer credit ratings and monitoring of trade receivables. Disputes Consilium is involved in disputes in the course of its normal business operations. disputes may concern product liability, alleged errors in deliveries of goods and other issues connected with Consilium’s operations. disputes may prove costly, time-consuming and disruptive to normal business operations. At present, there are not considered to be any disputes of significance in progress. Cash flow The cash flow statement is prepared using the indirect method. Reported cash flows only concern transactions which involve cash inflows and outflows. Cash & cash equivalents comprise cash and bank deposits. Basis of consolidation The consolidated financial statements incorporate the financial statements of the parent company and entities controlled by the parent company (subsidiaries). Control is achieved where the parent company owns, directly or indirectly, more than half of the voting power and has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The consolidated financial statements have been prepared in accordance with the acquisition method. The cost of an acquisition comprises the fair value of assets transferred, 37
Page 1 and 2: Annual Report 2011
Page 3 and 4: tHe YeAR In BRIeF significant event
Page 5 and 6: Fire safety & Automation The busine
Page 7 and 8: Marine & Safety business area The c
Page 9 and 10: ConsIlIuM’s MARKet oRGAnIsAtIon C
Page 11 and 12: Marine & safety Consilium’s produ
Page 13 and 14: Consilium’s offering Consilium ha
Page 15 and 16: These and several other factors hav
Page 17 and 18: offer functions that control automa
Page 19 and 20: Consilium’s offering Consilium pr
Page 21 and 22: predicts that energy demand in Asia
Page 23 and 24: SEK 14.70. At the end of 2011, Cons
Page 25 and 26: KeY FIGuRes AnD DeFInItIons Key fig
Page 27 and 28: The total number of vessels and the
Page 29 and 30: ConsolIDAteD InCoMe stAteMent seK m
Page 31 and 32: ConsolIDAteD stAteMent oF CHAnGes I
Page 33 and 34: InCoMe stAteMent, PARent seK millio
Page 35: stAteMent oF CHAnGes In eQuItY, PAR
Page 39 and 40: Product development and research ex
Page 41 and 42: notes note 1 BusIness AReAs Busines
Page 43 and 44: note 2 sAlARIes, otHeR eMPloYee Ben
Page 45 and 46: note 9 PRoPeRtY, PlAnt & eQuIPMent
Page 47 and 48: not 13 FInAnCIAl RIsK MAnAGeMent, C
Page 49 and 50: note 19 PRovIsIons Group Provisions
Page 51 and 52: note 26 BoARD MeMBeRs AnD senIoR eX
Page 53 and 54: AuDItoR’s RePoRt To the annual me
Page 55 and 56: Board members - attendance, relatio
Page 57 and 58: stakeholder model Global supplier b
Page 59 and 60: AuDItoR’s RePoRt on tHe CoRPoRAte
Page 61 and 62: MAnAGeMent ove Hansson b. 1955. ll.
Page 63 and 64: ADDResses HeAD oFFICe Consilium AB

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