ANNUAL REPORT 2010/11 - Schumag AG

SCHUMAG AG 23Group Cash-Flow Statement 2010/11 2009/10 Change(short presentation) EUR Mill. EUR Mill. EUR Mill.Net income (without extraordinary items) -1.0 -15.2 +14.2Depreciation/Amortization 2.8 8.4 -5.6Change in net current assets -2.9 1.5 -4.4Change in other items -0.3 -1.0 +0.7Outgoing payments for social compensation plan -0.2 -4.6 +4.4Cash-flow from operating activities -1.6 -10.9 +9.3Expenses for intangible assets and property. plant and equipment -2.0 -3.1 +1.1Proceeds from the disposal of property. plant and equipment 0.1 0.0 +0.1Cash-inflow from the sale of mechanical engineering 0.0 11.5 -11.5Cash-flow from investing activity -1.9 8.4 -10.3Outgoing payments to company owners for the purchase of own shares 0.0 -2.0 +2.0Raising of financial liabilities 5.4 1.0 +4.4Redemption of financial obligations -2.4 0.0 -2.4Cash-flow from financing activity 3.0 -1.0 +4.0Effects on cash and cash equivalents affecting liquidity -0.5 -3.5 +3.0Cash and cash equivalents at the start of the reporting period 1.6 5.1 -3.5Cash and cash equivalents at the end of the reporting period 1.1 1.6 -0.5Cash and cash equivalents correspond to theliquid funds shown in the balance sheet.The cash-flow from current operations hascontinued to clearly improve by EUR 9.3 millioncompared with the previous year. This is in particulardue to the cash effect from the improved operatingresult (EUR +14.2 million). The cash effect fromfactoring amounted to EUR 2.0 million.The cash-flow from investing activity was no longeraffected by the extraordinary cash effect from thesale of the mechanical engineering division (EUR+11.5 million) as it had been the case in the previousyear. Net expenses for investments decreasedfrom EUR 3.1 million to EUR 1.9 million. They includein particular the expenses for plants and equipmentfor the precision engineering division (EUR 0.8 million)as well as for the new hall (EUR 0.5 million).Within the scope of our financing activity proceedsamounting to EUR 4.2 million were generated bythe sale-and-lease-back transaction concerning ourmachinery. In addition, a working capital creditamounting to EUR 1.0 million was obtained, anda loan amounting to EUR 0.2 million was grantedby the joint venture partner Max Walk & WillyLehmann Kraftfahrzeuge-Landmaschinen GmbH.The loan amounting to EUR 1.0 million received inAugust 2010 in anticipation of the sale-and-leasebacktransaction was repaid in December 2010.From December 2010 further expenses wereincurred in connection with the sale-and-leasebacktransaction amounting to EUR 1.4 million sothat the cash effect from the sale-and-lease-backamounted to a total of EUR 1.8 million in fiscalyear 2010/11. Liabilities to banks amounted toEUR 1.0 million as of September 30, 2011.Cash and cash equivalents of Schumag decreasedby a total of EUR -0.5 million to EUR 1.1 million.