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A Group Management Report and Management Report on Salzgitter AG II. Profitability, Financial Position and Net Assets 152 153
Cash and Cash Equivalents
in € mil. FY 2007 FY 2006
Inflow of funds from current business activities 781.0 487.7
Outflow/inflow of funds from investment activities –745.2 1,076.8
Outflow of funds from financing activities –242.0 –104.4
Change in cash and cash equivalents –206.2 1,460.1
Cash and cash equivalents on the reporting date 2,138.8 2,345.0
Having recorded positive cash flows from investment activity in preceding years, positively influenced
by the sale of participations, the cash flow in 2007 was negative at € –745 million. We spent € 373
million on investments in property, plant and equipment and intangible assets. These investments are
above the level of the previous year (€ 231 million) and also exceed depreciation. In addition, € 390
million were used for the acquisition of Klöckner-Werke AG and the VPE mill in Zeithain.
In the financial year 2007, the cash flow from financing activities stood at € –242 million. We paid out
€ 114 million or € 2.00 per share to the shareholders of Salzgitter AG in the financial year 2006.
Despite the increase in working capital and a higher volume of investment and acquisition, the exceptionally
good profit trend resulted in an only moderately lower net cash position held at banks in comparison
with the previous year’s reporting date (€ 2,115 million; 2006: € 2,283 million). Cash investments
of € 2,234 million, including securities, as of the end of 2007, were offset, due to reporting
date factors, by lower liabilities of € 119 million owed to banks (2006: € 140 million).
The liquidity and debt-to-equity ratios improved again in the financial year 2007.
Multi-year Overview of the Financial Position
FY 2007 FY 2006 FY 2005 FY 2004 FY 2003 FY 2002 FY 2001
Solvency I (%) 1) 211 252 150 100 91 97 116
Solvency II (%) 2) 317 365 253 187 187 185 210
Dynamic debt burden (%) 3) –304.5 –95.5 41.3 20.2 12.5 8.3 6.8
Gearing (%) 4) Cash flow (€ mil.) from current
98.0 101.9 169.1 278.0 268.7 261.4 244.3
business operations 781 488 468 352 223 157 117
Net debts to banks (€ mil.) 5) –2,115 –2,283 –822 –71 56 66 –49
1) (current assets – inventories) x 100
current debts + dividend proposal
2) current assets x 100
current debts + dividend proposal
3) cash flow from current business operations x 100
non-current and current borrowings (including pensions) – investments
4) non-current and current debts (including pensions) x 100
equity
5) – = ^ cash in bank, + = ^ debts
Profitability, Financial
Position & Net Assets