Reebok 2015 Annual Report Download - page 126

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GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Group Business Performance – Statement of Financial Position and Statement of Cash Flows
INVESTMENTANALYSIS
Capital expenditure is defined as the total cash expenditure for the purchase of tangible and intangible
assets (excluding acquisitions). Group capital expenditure decreased 7% to € 513 million in 2015 (2014:
€ 554 million). Capital expenditure in property, plant and equipment amounted to € 464 million and was
thus below the prior year level of € 504 million. The Group invested € 49 million in intangible assets,
representing a 2% decrease compared to the prior year (2014: € 50 million). Depreciation and amortisation
excluding impairment losses/reversal of impairment losses of tangible and intangible assets increased
10% to € 338 million in 2015 (2014: € 309 million).
The majority of the Group’s capital expenditure was related to the Group’s controlled space initiatives.
Investments in new or remodelled own-retail and franchise stores as well as in shop-in-shop presentations
of our brands and products in our customers’ stores accounted for 45% of total capital expenditure
(2014: 36%). Expenditure for logistics and IT represented 21% and 11%, respectively (2014: 33% and 9%,
respectively). In addition, expenditure for administration represented 6% (2014: 7%), while 16% of total
capital expenditure was recorded for other initiatives (2014: 14%). From a regional perspective, the majority
of the Group’s capital expenditure was recorded at the Group’s headquarters in Herzogenaurach, Germany,
accounting for 45% (2014: 55%). In addition, capital expenditure in Greater China accounted for 15% (2014:
10%) of the Group’s capital expenditure, followed by Western Europe with 12% (2014: 6%), MEAA with 7%
(2014: 6%), North America and Latin America with 6% each (2014: 6% and 6%, respectively), Russia/CIS
with 3% (2014: 5%) and Japan with 2% (2014: 1%). Expenditure for Other Businesses accounted for 4% of
total capital expenditure (2014: 4%).
LIQUIDITYANALYSIS
In 2015, net cash generated from operating activities increased to € 1.090 billion (2014: € 701 million).
Net cash generated from continuing operating activities increased to € 1.086 billion (2014: € 694 million),
driven by a significant increase in income before taxes, partly offset by an increase in income taxes paid.
Net cash used in investing activities increased to € 591 million (2014: € 537 million). Net cash used in
continuing investing activities increased to € 584 million (2014: € 531 million), mainly as a result of the
see Diagram 35
see Diagram 34
34CAPITAL EXPENDITURE BY REGION
12%
6%
15%
3%
6%
2%
7%
4%
45%
Western Europe
North America
Greater China
Russia/CIS
Latin America
Japan
MEAA
Other Businesses
HQ/Consolidation
45
3
6
7
42
12 6
15
35CAPITAL EXPENDITURE BY TYPE
45%
21%
16%
11%
6%
Controlled space
Logistics
Other
IT
Administration
6
11
16
21
45
36NET BORROWINGS/EBITDA 1€ IN MILLIONS
2015 0.3
2014 0.1
2013 (0.2)
2012 (0.3)
2011 (0.1)
1 2015, 2014 and 2013 reflect continuing operations as a result of the divestiture of the
Rockport business.