Louis Vuitton 2002 Annual Report Download - page 95

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ANNUAL REPORT 2002 • 93
NOTES TO THE CONSOLIDATED STATEM ENT OF CASH FLOWS
●The consolidated statement of cash flows, as shown oppo-
site, details the principal cash flows for the year 2002.
●The Group’s net cash provided by operating activities before
changes in current assets and liabilities amounted to 1,518 mil-
lion euros in 2002, a 65% increase over the 919 million euros
recorded the year before.
●The net change in working capital requirements generated
a cash flow of 436 million euros. This strong performance
was the result of tight management of inventory and accounts
receivable, particularly within the Fashion and Perfumes and
Cosmetics activities. Accounts payable also made a positive
contribution of 82 million euros to the change in cash.
●In total, net cash provided by operating activities was
1,954 million euros, well above the 574 million euros gener-
ated in 2001.
●Net cash used in investing activities : the balance between
acquisitions and capital expenditures on one hand and
disposals on the other hand, represented an outflow of
724 million euros.
●The Group’s capital expenditures represented 559 million
euros in cash, down from 984 million in 2001. The 43%
decrease from last year reflects the one-off exceptional real
estate acquisitions in 2001, greater selectivity in investments,
and a focus on the Group’s leading brands, starting with
Louis Vuitton.
●Financial investments (acquisition of other investments
and change in other non-current assets) totaled 274 million
euros for the full year and the net effect of acquisitions and
disposals of consolidated companies another 160 million
euros. Specifically, the impact on the Group's cash of the
installment payments for Prada's stake in Fendi totaled
180 million euros and, together with the amount allocated
to acquire Millennium, exceeded the proceeds from the
disposal of Pommery.
●Inversely, proceeds from asset disposals (fixed assets and
unconsolidated investments) amounted to 269 million euros.
This sum reflects primarily the sale of real estate assets as
well as shares in Fininfo, Grand Marnier and Gant.
●The Group’s sale of treasury shares, net of acquisitions,
generated 516 million euros in proceeds during the year.
●In 2002, LVMH S.A. paid 349 million euros of dividends,
excluding treasury shares, which included 246 million
distributed in June as the final 2001 dividend payment,
and 103 million in December as an interim dividend for 2002.
Additionally, the minority shareholders of consolidated
subsidiaries received 23 million euros in dividends.
●The cash surplus, after all operating and investing activi-
ties and after dividend payouts, was 1,387 million euros.
●This positive cash balance allowed the Group to pay
down a very significant 2,408 million euros of existing
borrowings and financial debt, while limiting the amount
of new borrowings.
●New borrowings and financial debt provided 523 million
euros. The Group continued to broaden its investor base
and to pursue opportunities with private placements of
236 million euros under its Euro Medium-Term Notes pro-
gram. Debt reduction was directed at short-term borrowings
as a priority, with the amount of commercial paper outstand-
ing decreasing by 1,390 million euros in 2002.
●At the close of the year, cash and cash equivalents
amounted to 544 million euros.