Reebok 2008 Annual Report Download - page 96

092 Group Management Report – Our Financial Year Group Business Performance — Balance Sheet and Cash Flow Statement — Treasury
Shareholders’ equity
€ in millions
2004 1) 1,544
2005 2,684
2006 2) 2,828
2007 3,023
2008 3,386
1) Restated due to application of amendment to IAS 19.
2) Including Reebok business segment from February 1, 2006 onwards.
Accounts payable
€ in millions
2004 592
2005 684
2006 1) 752
2007 849
2008 1,218
1) Including Reebok business segment from February 1, 2006 onwards.
Change in cash and cash equivalents
€ in millions
Cash and cash
equivalents
at the end
of 2007
Net cash
provided by
operating
activities
Net cash
used in
investing
activities
Net cash
used in
fi nancing
activities
Cash and cash
equivalents
at the end
of 2008 1)
1) Includes a positive exchange rate effect of € 2 million.
2008 capital expenditure by segment
2008 capital expenditure by type
adidas 50%
Own retail 37%
Other 37%
TaylorMade-
adidas Golf 4%
Retailer
support 7%
Reebok 14%
IT 19%
HQ /
Consolidation 32%
Cash fl ow development refl ects increased
working capital needs
In 2008, cash infl ow from operating activities was € 497 mil-
lion (2007: € 780 million). The decrease in cash provided by
operating activities compared to the prior year was primarily
due to higher working capital needs. Cash outfl ow for invest-
ing activities was € 444 million (2007: € 285 million) and was
mainly related to spending for property, plant and equipment
such as investments in the furnishing and fi tting of adidas and
Reebok own-retail stores and in IT systems. Cash outfl ows
for fi nancing activities were related to the buyback of adidas
AG shares in an amount of € 409 million and the payment of
dividends to shareholders in an amount of € 99 million. Cash
outfl ow in the amount of € 186 million led to a corresponding
change in short-term borrowings. An increase of long-term
borrowings by € 588 million only partly offset these outfl ows.
Conse quently, net cash used in fi nancing activities totalled
€ 106 million (2007: € 510 million). As a result of this develop-
ment and despite a positive exchange rate effect of € 2 mil-
lion (2007: negative € 1 million), cash and cash equivalents
decreased by € 51 million to € 244 million at the end of 2008
(2007: € 295 million).
Capital expenditure focus on Group expansion
Capital expenditure is the total cash expenditure for the
purchase of tangible and intangible assets. Group capital
expenditures increased 32% to € 380 million in 2008 (2007:
€ 289 million). The adidas segment accounted for 50% of Group
capital expenditures (2007: 52%). Expenditures in the Reebok
segment accounted for 14% of total expenditures (2007: 20%).
The majority of adidas and Reebok expenditures focused on
the expansion of own-retail activities. TaylorMade-adidas Golf
capital expenditures accounted for 4% of total expenditures
(2007: 4%). The remaining 32% of total capital expenditures
was recorded in the HQ /Consolidation segment (2007: 24%)
and was mainly related to IT infrastructure measures see
Global Operations, p. 064.
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