Annual Report 2010 (PDF, 5.2MB) - Panalpina Annual Report 2012

Reports of the Board of Directors and the Executive Board
18
This favorable development can mostly be attributed to
the increase in cost of goods sold during the reporting
period and a further improved payment discipline and renegotiation
of payment terms with various vendors.
Borrowings (short-/long-term)
Total borrowings were further reduced from CHF 13 million
at year-end 2009 to CHF 10 million at year-end 2010.
Other liabilities
The Group’s other liabilities increased significantly from
CHF 369 million at year-end 2009 to CHF 471 million at
year-end 2010. The major reasons for the increase are
provisions remaining on the balance sheet at the end of
the year amounting to CHF 94 million in connection with
the charges arising from the settlement of the two legal
claims in the United States (FCPA, anti-trust) and associated
compliance consulting costs as well as for an
internal reorganization project.
Total equity
The most significant change in shareholders’ equity is
the change in reserves which – as a result of the negative
net result for the reporting year, an adverse currency
translation effect as well as recognized actuarial losses
on pension valuation amounting to CHF 11 million –
declined from CHF 999 million on December 31, 2009
to CHF 950 million on December 31, 2010. Total equity
decreased by CHF 52 million during the reporting
period, from CHF 864 million on December 31, 2009 to
CHF 812 million on December 31, 2010.
Cash flow
Net cash from operating activities
The Group’s net cash from operating activities in the
reporting period amounted to CHF 37 million, CHF 223 million
below last year (2009: CHF 260 million). Although
the Group expanded its net profit for the period (before the
CHF 128 million special charges) substantially, the growth
in business led to a sizeable increase of the net working
capital, whereas in the comparable prior-year period, net
cash from operating activities was boosted significantly
due to the severe drop in business volumes and the related
reduction in net working capital. In addition, net cash from
operating activities includes an outflow of CHF 27 million
during the reporting year due to the payment of certain fines
to US authorities.
Cash flow from investing activities
The largest part of investing cash outflows in 2010 was
for expenditures on property, plant and equipment in the
amount of CHF 28 million (mainly IT equipment), which
were lower than in the year before (2009: CHF 33 million).
On the other hand, the interest received on the current
cash holdings declined from CHF 15 million in 2009 to
CHF 5 million in 2010, as interest rates in the latest reporting
period were close to zero. Overall, the net cash flow
from investing activities improved slightly from minus
CHF 34 million in 2009 to minus CHF 31 million in 2010.
Capital expenditures in 2010 amounted to a historically low
0.6 % of net forwarding revenue and thus underlined
the asset-light character of Panalpina’s business model.
Total liabilities and equity
Trade payables and accrued cost of services
Short- and long-term borrowings
in million CHF
2010
2009
10
696
679
13
369
471
Other liabilities
Equity
812 1,989
864 1,925
Free cash flow
The free cash flow, calculated as net cash from operating
activities and adding the net cash flow from investing
activities, accordingly decreased from CHF 226 million in
2009 to CHF 6 million in 2010.
Cash flow development
Free cash flow
in million CHF
Net cash from
operating activities
2010
6
36
2009
226
260
Panalpina Annual Report 2010