Review of 2010 – USD version - Skanska

Note
35 Continued
Relation between consolidated operating cash flow statement and
consolidated cash flow statement
The difference between the consolidated operating cash flow statement and the consolidated
cash flow statement in compliance with IAS 7, “Cash Flow Statements,”
is presented below.
The consolidated cash flow statement that was prepared in compliance with IAS 7
recognizes cash flow divided into:
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Relation between the Group’s investments in the cash flow statement
and investments in the operating cash flow statement
Total net investments are recognized in the cash flow statement divided into operating
activities and investing activities, taking into account the settlement of payments for
investments and divestments. Purchases and divestments of current-asset properties are
recognized under operating activities, while other net investments are recognized under
investing activities.
2010 2009
Net investments in operating activities 458.2 349.1
Net investments in investing activities –223.2 –186.7
235.0 162.4
Less cash flow adjustments, investments 22.2 2.0
Total net investments 257.2 164.4
The consolidated operating cash flow statement recognizes cash flow divided into:
Cash flow from business operations
Cash flow from financial operations
Cash flow from strategic investments
Dividend etc.
Change in interest-bearing receivables and liabilities
The consolidated operating cash flow statement refers to operating activities as “business
operations.” Unlike the cash flow statement in compliance with IAS 7, “business
operations” also includes net investments, which are regarded as an element of business
operations together with tax payments on these. Such net investments are net
investments in property, plant and equipment and intangible non-current assets as well
as net investments in Infrastructure Development.
Investments of a strategic nature are recognized under cash flow from strategic
investments.
Under cash flow from financing activities, the operating cash flow statement recognizes
only interest and other financial items as well as taxes paid on the same. Dividends
are recognized separately. Loans provided and repayment of loans are also recognized
separately along with changes in interest-bearing receivables at the bottom of the operating
cash flow statement, resulting in a subtotal in that statement that shows cash flow
before changes in interest-bearing receivables and liabilities.
Cash flow for the year
2010 2009
Cash flow from business operations according to operating
cash flow 642.3 809.6
Less net investments in property, plant and equipment
and intangible assets 221.1 178.8
Less tax payments on property, plant and equipment and
intangible assets divested and divestment of assets in
Infrastructure Development 1.9 2.7
Cash flow from operating activities 865.4 991.1
Cash flow from strategic investments according to
operating cash flow –2.1 –8.0
Net investments in property, plant and equipment and
intangible assets –221.1 –178.8
Increase and decrease in interest-bearing receivables –309.0 –219.7
Taxes paid on property, plant and equipment and
intangible assets divested and assets in
Infrastructure Development –1.9 –2.7
Cash flow from investing activities –534.1 –409.1
The consolidated operating cash flow statement recognizes net investments divided
into net investments in operations and strategic net investments as follows.
Investments/Divestments
2010 2009
Operations – Investments
Intangible assets –10.0 –8.1
Property, plant and equipment –185.6 –166.3
Assets in Infrastructure Development –96.0 –58.1
Shares –21.5 –16.7
Current-asset properties –1,178.1 –973.7
of which Residential Development –744.6 –406.8
of which Commercial Property Development –433.5 –567.0
Operations– Divestments
Intangible assets 0.6
–1,491.3 –1,223.0
Property, plant and equipment 33.3 52.4
Assets in Infrastructure Development 55.9 17.9
Shares 2.2 0.3
Current–asset properties 1,658.6 1,324.8
of which Residential Development 744.5 773.7
of which Commercial Property Development 914.1 551.2
1,750.6 1,395.4
Net investments in operations 259.3 172.4
Strategic investments
Acquisitions of businesses 0.0 –1.3
Acquisitions of shares 0.0 –6.7
0.0 –8.0
Strategic divestments
Divestments of businesses 0.6 0.0
Divestments of shares –2.6
–2.1 0.0
Net strategic investments –2.1 –8.0
Total net investments 257.2 164.4
Cash flow from financing operations according to
operating cash flow statement, including changes in
interest-bearing receivables and liabilities –588.5 –247.2
Increase and decrease in interest-bearing liabilities 309.0 219.7
Dividend etc 1 –398.6 –332.5
Cash flow from financing activities –678.1 –360.1
Cash flow for the year –346.8 221.9
1 Of which repurchases of shares –35.0 –46.4
Skanska Review of 2010 – USD version Notes, including accounting and valuation principles 143