Review of 2010 – USD version - Skanska

Cash flow
The Group’s operating cash flow
USD M 2010 2009
Cash flow from business operations before change
in working capital 628.2 729.0
Change in working capital 6.7 52.7
Net investments/divestments in the business 259.3 172.4
Adjustments in payment dates of net investments –22.2 –2.0
Taxes paid in business operations –229.6 –142.4
Cash flow from business operations 642.3 809.6
Net interest items and other financial items –8.6 –49.5
Taxes paid in financial activities 2.6 13.6
Cash flow from financial activities –6.0 –35.9
Cash flow from operations 636.4 773.7
Strategic net investments/divestments –2.1 –8.0
Taxes paid on strategic divestments 0.0 0.0
Cash flow from strategic investments –2.1 –8.0
Dividend etc 1 –398.6 –332.5
Cash flow before change in interest-bearing receivables
and liabilities 235.7 433.2
Change in interest-bearing receivables and liabilities –582.5 –211.3
Cash flow for the year –346.8 221.9
Cash and cash equivalents, January 1 1,309.0 1,020.5
Exchange rate differences in cash and cash
equivalents 15.9 66.6
Cash and cash equivalents, December 31 978.1 1,309.0
1 Of which repurchases of shares –35.0 –46.4
Cash flow for the year amounted to USD –346.8 M (221.9). Reduced
cash flows from a majority of the units in the Construction business
stream as well as Residential Development contributed to the decrease
in cash flow from business operations before change in working capital
to USD 628.2 M (729.0). Tied-up working capital continued to decrease
during the year, and the change amounted to USD 6.7 M (52.7).
Overall, net divestments in business operations increased by
USD 86.9 M to USD 259.3 M (172.4). The change in net divestments was
primarily due to the fact that, in Commercial Property Development,
during 2010 purchasers took possession of a number of properties that
had been sold.
Taxes paid in business operations amounted to USD 229.3 M (142.4).
Dividends, repurchases of shares and adjustments of holdings to
non-controlling interests amounted to USD –398.6 M (–332.5).
Change in interest-bearing receivables and liabilities amounted to
USD –582.5 M (–211.3). The change is mainly due to debt repayments.
Cash flow for the year, USD –346.8 M (221.9), together with
exchange rate differences of USD –15.9 M (–66.7) decreased cash and
cash equivalents to USD 978.1 M (1,309.0).
Financing and liquidity
At year-end 2010, the Group had interest-bearing net receivables,
including provisions, amounting to USD 1,457.3 M (1,125.6). The
Group’s unutilized credit facilities totaled USD 1,080.4 M (1,070.0) at
year-end. Of these, USD 993.7 M was an unutilized long-term credit that
runs through June 2014. The proportion of interest-bearing net assets
in currencies other than SEK, after taking derivatives into account,
decreased to 28 (38) percent. A large part of this decrease is attributable
to increased net debt in EUR. Interest-bearing assets decreased to
USD 2,182.1 M (2,193.9). Of these, receivables in currencies other than
SEK accounted for 75 (67) percent. The average interest rate refixing
period for all of the Group’s interest-bearing assets was 0.5 (0.1) years,
and the interest rate amounted to 0.91 (0.63) percent at year-end.
Change in interest-bearing assets and liabilities
USD M 2010 2009
Net interest-bearing receivables, January 1 1,125.6 1,195.2
Change in accounting principle –611.7
Adjusted net interest-bearing receivables, January 1 1,125.6 583.5
Cash flow from business operations 642.3 809.6
Cash flow from financing activities excluding changes
in interest-bearing liabilities and receivables –6.0 –35.9
Cash Avkastning flow from på eget strategic och investments –2.1 –8.0
sysselsatt kapital
Dividend etc 1 –398.6 –332.5
%
Acquired/divested 30
interest-bearing liabilities –0.6 0.0
Exchange rate differences –22.0 4.7
Change 25 in pension liability 105.4 90.2
Reclassifications 0.0 29.7
20
Other changes 13.0 –15.5
Net interest-bearing receivables, December 31 15
1,457.3 1,125.6
1 Of which repurchases of shares –35.0 –46.4
10
The Group’s interest-bearing liabilities and provisions decreased to
USD 5 724.8 M (1,068.3), of which pension liabilities and provisions
amounted to USD 185.9 M (318.9) and construction loans to cooperative
0
housing associations totaled USD 163.3 M (355.2). The average interest
2006 2007 2008 2009 2010
rate refixing period, excluding pension liabilities, for all interest-bearing
liabilities Avkastning på eget kapital
was 0.9 (1.2) years, and the average maturity was 1.4 (1.9) years.
• Avkastning på sysselsatt kapital
The interest rate for all Group interest-bearing liabilities, excluding
pension liabilities, amounted to 3.09 (3.65) percent at year-end.
The Group’s total assets and liabilities/equity amounted to
USD 11.4 (11.7) billion. Due to currency rate effects, the total decreased
by USD 0.2 billion.
Return on equity and capital employed
%
30
25
20
15
10
5
0
2006 2007 2008 2009 2010
Return on equity
• Return on capital employed
Comparative figures for 2006–2008 have not been adjusted for the effects of IFRIC 12 and 15
At year-end 2010, the equity of the Group attributable to equity holders
amounted to USD 3,039.2 M (2,781.9). Aside from total comprehensive
income for the year, USD 621.6 M, the change in equity is explained by
disbursement of a dividend of USD –358.2 M and repurchases of shares
totaling USD –35.0 M as well as long-term employee ownership and
share award programs totaling USD 28.9 M.
Return on equity decreased to 20.8 (22.3) percent.
Capital employed amounted to USD 3,781.1 M (3,874.0). Return on
capital employed decreased to 21.4 (22.0) percent.
Equity/assets and debt/equity ratio
The net debt/equity ratio amounted to –0.5 (–0.4), and the equity/assets
ratio was 26.8 (24.1) percent.
74 Report of the Directors Skanska Review of 2010 – USD version