Exhibit 99.1
Reclassification of items in the statements of cash flow
The reclassification has no impact on the Group’s income statements, balance sheets or the change in cash and cash equivalents.
SKF has reclassified some items in its statements of cash flows for the years 2006, 2005 and 2004 as a result of the U.S. Securities and Exchange Commission’s review of the 2005 Annual report on Form 20-F. Previously reported statements of cash flow for these years have been changed, certain items are moved from financing to operating activities and to investing activities. Cash flows related to contributions to pension plans are now considered as operating activities and cash flows relating to marketable securities and other liquid assets are now considered as investing activities.
2006 | As previously published | As restated | |||||
Contributions to and payments under post-employment defined benefit plans (a) | -350 | -413 | |||||
Net cash flow from operating activities | 5,090 | 5,027 | |||||
Investments in financial and other assets and equity securities (b) | -50 | -2,173 | |||||
Sales of financial and other assets assets and equity securities (b) | 62 | 3,020 | |||||
Net cash flow used in investing activities | -2,859 | -2,024 | |||||
Net cash flow after investments before financing | 2,231 | 3,003 | |||||
Change in marketable securities and other liquid assets (b) | 835 | - | |||||
Contributions to post-employment benefit plans (a) | -63 | - | |||||
Net cash flow used in financing activities | 2,780 | 2,008 | |||||
Increase +/(decrease)- in cash and cash equivalents | 5,011 | 5,011 |
2005 | As previously published | As restated | |||||
Contributions to and payments under post-employment defined benefit plans (a) | -364 | -417 | |||||
Net cash flow from operating activities | 4,426 | 4,373 | |||||
Investments in financial and other assets and equity securities (b) | -55 | -5,430 | |||||
Sales of financial and other assets assets and equity securities (b) | 122 | 3,549 | |||||
Net cash flow used in investing activities | -1,996 | -3,944 | |||||
Net cash flow after investments before financing | 2,430 | 429 | |||||
Change in marketable securities and other liquid assets (b) | -1,948 | - | |||||
Contributions to post-employment benefit plans (a) | -53 | - | |||||
Net cash flow used in financing activities | -3,314 | -1,313 | |||||
Increase +/(decrease)- in cash and cash equivalents | -884 | -884 |
2004 | As previously published | As restated | |||||
Contributions to and payments under post-employment defined benefit plans (a) | -525 | -3,636 | |||||
Net cash flow from operating activities | 4,197 | 1,086 | |||||
Investments in financial and other assets and equity securities (b) | -101 | -2,479 | |||||
Sales of financial and other assets assets and equity securities (b) | 60 | 5,296 | |||||
Net cash flow used in investing activities | -2,044 | 814 | |||||
Net cash flow after investments before financing | 2,153 | 1,900 | |||||
Change in marketable securities and other liquid assets (b) | 2,858 | - | |||||
Contributions to post-employment benefit plans (a) | -3,111 | - | |||||
Net cash flow used in financing activities | -1,975 | -1,722 | |||||
Increase +/(decrease)- in cash and cash equivalents | 178 | 178 |
(a) Cash outflows related to contributions to pension plans are considered as operating activities. Previously, SKF had classified contributions to post-employment defined benefit plans as part of the financing activities as the decision to fund these plans was made in the context of financing SKF's overall obligations.
(b) Cash flows relating to marketable securities and other liquid assets are considered as investing activities. Further, since the original maturities of these investments are greater than three months, it is preferable to present them on a gross basis. Previously, SKF had classified these activities as part of financing activities as the investments are part of the overall financing program at SKF.
Göteborg, 6 March 2007
Aktiebolaget SKF (publ.)
Enclosure Consolidated statements of cash flow, restated
For further information, please contact:
Marita Björk, SKF Investor Relations, tel: +46 (0)31 337 1994, mobile: +46 (0)705-181994, e-post: marita.bjork@skf.com
Consolidated statements of cash flow, restated
Millions of Swedish kronor
2006 | Years ended 31 December 2005 | 2004 | ||||||||
Operating activities | ||||||||||
Profit before taxes | 6,387 | 5,253 | 4,087 | |||||||
Adjustments for | ||||||||||
Depreciation, amortisation and impairment | 1,834 | 1,752 | 1,733 | |||||||
Net gain (-) on sales of property, plant and equipment | -13 | -29 | -17 | |||||||
Net gain (-) on sales of equity securities | -2 | -52 | - | |||||||
Net gain (-) on sales of equity securities associated companies | - | -63 | - | |||||||
Net gain (-) on sales of businesses | - | -10 | -21 | |||||||
Other non cash items | -434 | 26 | 159 | |||||||
Income taxes paid | -1,947 | -1,618 | -858 | |||||||
Contributions to and payments under post-employment defined | ||||||||||
benefit plans | -413 | -417 | -3,636 | |||||||
Jointly controlled and associated companies | 186 | 57 | -2 | |||||||
Changes in working capital | ||||||||||
Inventories | -250 | -671 | -648 | |||||||
Trade receivables | -831 | -142 | -907 | |||||||
Trade payables | 442 | -156 | 755 | |||||||
Other operating assets and liabilities, net | 68 | 443 | 441 | |||||||
Net cash flow from operating activities | 5,027 | 4,373 | 1,086 | |||||||
Investing activities | ||||||||||
Purchase of intangible assets | -78 | -171 | -111 | |||||||
Sales of intangible assets | - | - | 1 | |||||||
Purchase of property, plant and equipment | -1,933 | -1,623 | -1,401 | |||||||
Sales of property, plant and equipment | 52 | 93 | 59 | |||||||
Acquisitions of businesses, net of cash and cash equivalents | -2,129 | -419 | -644 | |||||||
Sales of businesses, net of cash and cash equivalents | - | 57 | 93 | |||||||
Pre-liquidation proceeds from Oy Ovako Ab | 1,217 | - | - | |||||||
Investments in financial and other assets and equity securities | -2,173 | -5,430 | -2,479 | |||||||
Sales of financial and other assets and equity securities | 3,020 | 3,549 | 5,296 | |||||||
Net cash flow used in investing activities | -2,024 | -3,944 | 814 |
Net cash flow after investments before financing | 3,003 | 429 | 1,900 | |||||||
Financing activities | ||||||||||
Proceeds from medium- and non-current loans | 4,676 | 3,249 | 123 | |||||||
Repayment of medium- and non-current loans | -740 | -321 | -624 | |||||||
Change in current loans | -55 | 7 | -31 | |||||||
Payment of finance lease liabilities | -5 | -3 | -13 | |||||||
Cash dividends to AB SKF shareholders | -1,821 | -1,366 | -1,138 | |||||||
Cash dividends to minority shareholders | -47 | -33 | -39 | |||||||
Redemption of shares | - | -2,846 | - | |||||||
Net cash flow used in financing activities | 2,008 | -1,313 | -1,722 |
Increase(+)/decrease(-) in cash and cash equivalents | 5,011 | -884 | 178 | |||||||
Cash and cash equivalents at 1 January | 2,379 | 3,076 | 2,976 | |||||||
Cash effect excluding acquired companies | 4,514 | -911 | 115 | |||||||
Cash effect of businesses acquired | 497 | 27 | 63 | |||||||
Cash effect of exchange transactions | - | -32 | - | |||||||
Translation effect on cash held | -148 | 219 | -78 | |||||||
Cash and cash equivalents at 31 December | 7,242 | 2,379 | 3,076 |