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  • Operating cash flow amounted to SEK 3,702 M (3,439).
  • Net capital expenditure amounted to SEK 667 M (650).
  • Operating cash flow

    SEK M 2005 2004
    Operating income (EBIT) 4,078 3,683
    Depreciation / amortization 882 923
    Net capital expenditure -667 -650
    Change in working capital -110 -12
    Paid and received interest -455 -489
    Adjustment for non-cash items -26 -16
    Operating cash flow 3,702 3,439
    Operating cash flow / Income before tax 1.04 1.08
    The Group's operating cash flow amounted to SEK 3,702 M (3,439), equivalent to 104 percent (108) of income before tax.
    The Parent company's cash flow amounted to SEK 829 M (–648).
    Net capital expenditure
    Direct net capital expenditure on tangible and intangible fixed assets totaled SEK 667 M (650), equivalent to 76 percent (70) of depreciation / amortization of tangible and intangible fixed assets falling due during the financial year. The low level of capital expenditure is explained principally by the Group's long-term efforts to optimize capital expenditure.
    Change in working capital

    SEK M 2005 2004
    Inventories -108 -79
    Accounts receivable -95 -135
    Accounts payable 215 95
    Other working capital -122 107
    Change in working capital -110 -12
    Efforts to reduce the Group's average material throughput times in its inventories are continuing. During the year rising material prices and increased volumes have increased the capital tied up in inventories, which burdened cash flow by SEK –108 M (–79). The average material throughput time is now 108 days (109). The increased capital tied up in accounts receivable is chiefly due to stronger sales.
    Relationship between cash flow from operating activities and operating cash flow

    SEK M 2005 2004
    Cash flow from operating activities 3,450 3,339
    Net capital expenditure -667 -650
    Tax paid 919 750
    Operating cash flow 3,702 3,439
    Company acquisitions
    Total outlay on company acquisitions amounted to SEK 422 M (804). Acquired net debt totaled SEK –10 M (–30). Acquisitions made during the year were financed by intern-ally generated cash flow.
    Change in net debt
    Net debt was reduced by the strong operating cash flow but increased to a comparable extent by changed exchange rates, dividends to shareholders and acquisitions.

    SEK M 2005 2004
    Net debt at 1 January 12,208 13,454
    IFRS adjustment (IAS 39) 77 -
    Operating cash flow -3,702 -3,439
    Restructuring payments 298 321
    Tax paid 919 750
    Acquisitions 413 929
    Dividend 951 457
    Translation differences 1,076 -264
    Net debt at 31 December 12,240 12,208

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      GROUP   PARENT COMPANY  
        EUR M1 SEK M SEK M     EUR M1 SEK M SEK M
      Note 2005 2005 2004   Note 2005 2005 2004
    OPERATING ACTIVITIES
    Operating income   440 4,078 3,683     45 415 249
    Depreciation and amortization 8 95 882 923   8 1 6 3
    Non-cash items 37 -3 -26 -16     - - -
    Cash flow before interest and tax   532 4,934 4,590     46 421 252
     
    Paid and received interest 37 -49 -455 -489     2 18 -187
    Dividends received   - - -     1,487 13,802 3,322
    Tax paid on income   -99 -919 -750     - -1 -
    Cash flow before changes in working capital   384 3,560 3,351     1,536 14,240 3,387
     
    Changes in working capital 37 -12 -110 -12     -15 -133 91
    Cash flow from operating activities   372 3,450 3,339     1,520 14,107 3,478
     
    INVESTING ACTIVITIES
    Investments in tangible and intangible assets 37 -87 -805 -842     -5 -45 -8
    Sales of tangible and intangible assets 37 15 138 192     2 18 1
    Investments in subsidiaries 37 -41 -384 -904     -15 -142 -14,456
    Reduction of equity in subsidiaries   - - -     - - 8,348
    Sales of shares in subsidiaries   - - 62     24 222 4,996
    Investments in associates 37 0 2 -     - - -
    Other investments 37 0 -3 -13     - - -5
    Cash flow from investing activities   -113 -1,052 -1,505     6 53 -1,124
     
    FINANCING ACTIVITIES
    Dividends   -104 -951 -457     -102 -951 -457
    Net cash effect of changes in borrowings   -147 -1,374 -1,277     -1,335 -12,380 -2,545
    Cash flow from financing activities   -251 -2,325 -1,734     -1,437 -13,331 -3,002
    CASH FLOW   8 73 100     88 829 -648
     
    CASH AND CASH EQUIVALENTS 2)
    Cash and cash equivalents at 1 January 24 108 1,017 880   24 0 4 652
    Cash flow   8 73 100     88 829 -648
    Effect of translation differences   -14 -132 37     - - -
    Cash and cash equivalents at 31 December 24 102 958 1,017   24 88 833 4
    1 Average EUR/SEK rate = 9.28.
    2 Closing-day EUR/SEK rate = 9.43.
    These rates have been used for the conversions from SEK to EUR above.