Annual Report 2011 - Skanska

35NoteContinuedRelation between consolidated operating cash flow statement andconsolidated cash flow statementThe difference between the consolidated operating cash flow statement and theconsolidated cash flow statement in compliance with IAS 7, “Cash Flow Statements,”is presented below.The consolidated cash flow statement that was prepared in compliance withIAS 7 recognizes cash flow divided into:Cash flow from operating activitiesCash flow from investing activitiesCash flow from financing activitiesThe consolidated operating cash flow statement recognizes cash flow divided into:Cash flow from business operationsCash flow from financial operationsCash flow from strategic investmentsDividend etc.Change in interest-bearing receivables and liabilitiesThe 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 anelement of business operations together with tax payments on these. Such netinvestments are net investments in property, plant and equipment and intangiblenon-current assets as well as net investments in Infrastructure Development.Investments of a strategic nature are recognized under cash flow from strategicinvestments.Under cash flow from financing activities, the operating cash flow statementrecognizes only interest and other financial items as well as taxes paid on the same.Dividends are recognized separately. Loans provided and repayment of loans arealso recognized separately along with changes in interest-bearing receivables atthe bottom of the operating cash flow statement, resulting in a subtotal in thatstatement that shows cash flow before changes in interest-bearing receivables andliabilities.Cash flow for the year2011 2010Cash flow from business operations accordingto operating cash flow 2,602 4,630Less net investments in property, plant andequipment and intangible assets –2,381 1,594Less tax payments on property, plant and equipmentand intangible assets divested and divestmentof assets in Infrastructure Development 24 14Cash flow from operating activities 245 6,238Cash flow from strategic investments accordingto operating cash flow –1,444 –15Net investments in property, plant andequipment and intangible assets 2,381 –1,594Increase and decrease in interest-bearingreceivables 5 –2,227Taxes paid on property, plant and equipmentand intangible assets divested and assets inInfrastructure Development –24 –14Cash flow from investing activities 918 –3,850Relation between the Group’s investments in the cash flow statementand investments in the operating cash flow statementTotal net investments are recognized in the cash flow statement divided into operatingactivities and investing activities, taking into account the settlement of payments forinvestments and divestments. Purchases and divestments of current-asset propertiesare recognized under operating activities, while other net investments are recognizedunder investing activities.2011 2010Net investments in operating activities –887 3,303Net investments in investing activities 937 –1,60950 1,694Less cash flow adjustments, investments –368 160Total net investments –318 1,854The consolidated operating cash flow statement recognizes net investments dividedinto net investments in operations and strategic net investments as follows.Investments/Divestments2011 2010Operations - InvestmentsIntangible assets –70 –72Property, plant and equipment –2,206 –1,338Assets in Infrastructure Development –988 –692Shares –366 –155Current-asset properties –10,773 –8,492of which Residential Development –7,288 –5,367of which Commercial Property Development –3,485 –3,125–14,403 –10,749Operations – DivestmentsIntangible assets 1 4Property, plant and equipment 198 240Assets in Infrastructure Development 5,808 403Shares 4 16Current-asset properties 9,518 11,955of which Residential Development 5,696 5,366of which Commercial Property Development 3,822 6,58915,529 12,618Net investments in operations 1,126 1,869Strategic investmentsAcquisitions of businesses –1,444 0–1,444 0Strategic divestmentsDivestments of businesses 0 4Divestments of shares 0 –190 –15Net strategic investments –1,444 –15Total net investments –318 1,854Cash flow from financing operations accordingto operating cash flow statement, includingchanges in interest-bearing receivables andliabilities 2,663 –4,242Increase and decrease in interest-bearingliabilities –5 2,227Dividend etc 1 –5,096 –2,873Cash flow from financing activities –2,438 –4,888Cash flow for the year –1,275 –2,5001 Of which repurchases of shares –184 –252156 Notes, including accounting and valuation principles Skanska Annual Report 2011