Volvo 2006 Annual Report Download - page 59

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Acquisitions and divestments
In 2006 investments were made in Nissan
Diesel and in Deutz. As a consequence invest-
ments in shares and participation had a nega-
tive impact on cashflow of SEK 5.8 billion
(positive 0.3) in 2006.
Acquired and divested companies had a
positive effect on cash flow SEK 0.5 billion
(0.7).
Financing and dividend
Net borrowings decreased cash and cash
equivalents by SEK 2.6 billion during 2006.
The new borrowing during the year, mainly
through the issue of bonds, contributed SEK
69.3 billion. Amortization for the year amounted
to SEK 72.2 billion. In 2005, net borrowings
increased cash and cash equivalents by SEK
3.6 billion.
An ordinary dividend amounting to SEK 6.8
billion, corresponding to SEK 16.75 per share,
was paid to AB Volvo’s shareholders during the
year.
Change in liquid funds
The Group’s liquid funds increased by SEK 2.6
billion during the year amounting to SEK 10.8
billion at December 31, 2006.
Consolidated cash-flow statements
SEK bn 2004 2005 2006
Operating income 13.3 16.1 18.1
Depreciation and amortization 7.1 7.3 10.0
Other non-cash items (0.6) 0.2 0.6
Change in working capital (1.4) (5.6) (3.1)
Financial items and income taxes paid (0.2) (1.9) (3.7)
Cash flow from operating activities 18.2 16.1 21.9
Investing activities
Investments in fixed assets (7.2) (9.9) (9.7)
Investment in leasing assets (0.3) (0.3) (0.5)
Disposals of fixed assets and leasing assets 0.7 0.9 0.9
Operating cash flow excluding Financial Services 11.4 6.8 12.6
Operating cash flow, Financial Services (5.5) (4.4) (1.8)
Operating cash flow, Eliminations 0.0 (0.6) (0.7)
Operating cash flow, Volvo Group total 5.9 1.8 10.1
Investments and divestments of shares, net 15.1 0.3 (5.8)
Acquired and divested operations, net (0.1) 0.7 0.5
Interest-bearing receivables including marketable securities, net (6.4) (1.3) 7.7
Cash flow after net investments 14.5 1.5 12.5
Financing activities
Change in other loans, net (8.8) 3.6 (2.6)
Repurchase of own shares (2.5) (1.8) –
Dividend to AB Volvo’s shareholders (3.4) (5.1) (6.8)
Other 0.0 0.0 0.0
Change in cash and cash equivalents excl translation differences (0.2) (1.8) 3.1
Translation differences on cash and cash equivalents (0.2) 1.1 (0.5)
Change in cash and cash equivalents (0.4) (0.7) 2.6
Board of Directors’ Report 2006 55