20% - Assa Abloy

ASSA ABLOY
Annual Report 2007
58
Cash flow
• Operating cash flow amounted to SEK 4,808 M (3,528).
• Net capital expenditure amounted to SEK 751 M (739).
Operating cash flow
SEK M 2006 2007
Operating income (EBIT) 3,297 5,458
Restructuring costs 1,474 –
Depreciation 898 909
Net capital expenditure –739 –751
Change in working capital –704 –25
Interest paid and received –708 –734
Adjustments for non-cash items 10 –49
Operating cash flow 1 3,528 4,808
Operating cash flow /
Income before tax 0.86 2 1.04
1 Excluding restructuring payments.
2 Income before tax excluding restructuring costs.
The Group’s operating cash flow amounted to SEK 4,808 M
(3,528), equivalent to 104 percent (86) of income before
tax.
The Parent company’s cash flow amounted to SEK –1 M
(–222).
Net capital expenditure
Direct net capital expenditure on tangible and intangible
assets totaled SEK 751 M (739), equivalent to 83 percent
(82) of depreciation of tangible and intangible assets for
the financial year. The low net capital expenditure is mainly
due to the Group’s long-term efforts to optimize capital
expenditure, and to implemented property sales.
Change in working capital
SEK M 2006 2007
Inventories –526 –148
Accounts receivable –487 –256
Accounts payable 223 219
Other working capital 86 160
Change in working capital –704 –25
Efforts to reduce the Group’s material throughput time in
inventories resulted in a reduction of five days during the
year. The material throughput time was 104 days (109) at
year-end. However, rising material prices and increased volumes
during the year increased capital tied up in inventories
somewhat, which had an impact of SEK –148 M (–526) on
cash flow. The increased capital tied up in accounts receivable
is mainly due to stronger sales.
Relationship between cash flow from operating activities
and operating cash flow
SEK M 2006 2007
Cash flow from operating activities 2,968 3,871
Restructuring payments 342 424
Net capital expenditure on tangible
assets –739 –751
Tax paid 957 1,264
Operating cash flow 3,528 4,808
Acquisitions of subsidiaries
The total purchase price for acquisitions of subsidiaries
amounted to SEK 1,675 M (3,553). Acquired net debt
totaled SEK 4 M (–339).
Change in net debt
Net debt was affected mainly by the strong operating cash
flow, the dividend to shareholders and acquisitions.
SEK M 2006 2007
Net debt at 1 January 12,240 13,560
Operating cash flow –3,528 –4,808
Restructuring payments 342 424
Tax paid 957 1,264
Acquisitions 3,132 1,376
Dividend 1,189 1,189
Translation differences –772 –52
Net debt at 31 December 13,560 12,953