Annual Financial Statement P&I Personal & Informatik AG April 1 ...

P&I Personal & Informatik Combined Management Report (Group and Cooperation)
The cash-flow from operating activities recorded during the year under review, fiscal
2010/2011, dropped slightly from 21.5 million euros to 21.0 million euros despite the
sound operating results. This decline mainly results from tax payments made for
previous fiscal years and the increase in tax payments resulting from the new tax
prepayment rulings for the year under review. Reserves have been allocated against
tax payments for previous fiscal years.
Cash-flow from the investments dropped from 8.4 million euros in the previous year to
minus 19.3 million euros. There was an inflow of 10.6 million euros recorded in the
balance from the sale of securities held as current assets during fiscal 2009/2010,
conditional on the cash outflow resulting from the new investments in securities and
term deposits with a maturity of longer than three years amounting to 18.5 million
euros. In the previous year the investments cash balance also included the net
payment for the purchase of Gronemeyer Gesellschaft für Datentechnik, EDV und
Organisationsberatung mbH, in Höxter.
Cashflow from the financing activities amounted to -8.3 million euros (previous year:
- 8.1 million euros) and this was a direct result of the dividend payment. The previous
year’s amount comprised the dividend payment and the share buyback scheme
payments.
Increased cash holdings and short-term financial assets
Holding liquid assets and short-term financial assets amounted to 55.4 million euros
(previous year: 43.4 million euros) means that the P&I Group is in a solid position.
In 000 euros 2009/2010 2010/2011 Variance
Cash and cas equivalent 28,428 21,862 -6,566
Securities
liquid funds and the
15,000 33,554 18,554
short-term assets 43,428
55,416 11,988
Interest bearing loans 0 0 0
Net borrowing/Equity -43,428 -55,416 -11,988
Share of total assets 62.6% 71.1% 13.6%
In addition to this the Group possesses two long-term, fixed-interest securities worth a
total of 1,946,000 euros (previous year: 1,906,000 euros), which provide collateral for
a line of credit and are listed in the balance sheet under Financial Assets
Financial management
The P&I Group has regularly had very high liquidity surpluses for many years.
This surplus liquidity, when not used for investments, is held partly in bank balances
and partly in marketable, available-for-sale securities. This policy corresponds with
the management's view, shortly to have the Company’s full liquidity at our disposal.
Investment in securities is only made in euros and the most financially sound
investments in order to minimise the risk of substantial fluctuations in value. The
break-down respectively development of cash and cash equivalents of the Group is
set out in the notes to the accounts and in the cashflow statement.
Derivative Financial instruments
The aim of using derivative financial instruments is to prevent as far as possible the
risks arising from negative developments on the financial markets affecting the
Company's assets, finances and profits.
22