Consolidated cash flows
| Consolidated cash flows |
|
|
|
| SEK millions | Note | 2023 | 2022 |
| Operating activities |
| ||
| Operating income | 9,256 | 6,519 | |
| Adjustment for depreciation and amortisation | 2,524 | 2,392 | |
| Adjustment for other non-cash items | -419 | 105 | |
| 11,361 | 9,016 | ||
| Taxes paid | -1,933 | -1,834 | |
| 9,428 | 7,182 | ||
| Changes in working capital: |
| ||
| Increase(-)/decrease(+) of receivables | -1,319 | -2,155 | |
| Increase(-)/decrease(+) of inventories | -652 | -3,140 | |
| Increase(+)/decrease(-) of liabilities | 2,373 | 2,058 | |
| Increase(+)/decrease(-) of provisions | -661 | -654 | |
| Increase(-)/decrease(+) in working capital | -259 | -3,891 | |
|
| |||
| 9,169 | 3,291 | ||
| Investing activities |
| ||
| Investments in fixed assets (Capex) | -2,440 | -1,853 | |
| Divestment of fixed assets | 90 | 20 | |
| Acquisition of businesses | 17 | -337 | -3,685 |
| -2,687 | -5,518 | ||
| Financing activities |
| ||
| Received interests and dividends | 168 | 99 | |
| Paid interests | -489 | -290 | |
| Realised financial exchange gains | 52 | 68 | |
| Realised financial exchange losses | -536 | -147 | |
| Repurchase of shares | – | -661 | |
| Dividends to owners of the parent | -2,480 | -2,480 | |
| Dividends to non-controlling interests | -18 | -12 | |
| Increase(-) of financial assets | -555 | -457 | |
| Decrease(+) of financial assets | 11 | 1,002 | |
| Increase of loans | 2,400 | 12,546 | |
| Amortisation of loans | -4,096 | -6,575 | |
| -5,543 | 3,093 | ||
|
| |||
| Cash flow for the year | 939 | 866 | |
| Cash and cash equivalents at the beginning of the year | 4,352 | 3,356 | |
| Translation difference in cash and cash equivalents | -156 | 130 | |
| Cash and cash equivalents at the end of the year | 26 | 5,135 | 4,352 |
|
| |||
| Free cash flow per share (SEK) * | 16.50 | 3.52 | |
| Capex in relation to net sales | 3.8% | 3.6% | |
| Average number of shares** |
| 413,326,315 | 413,637,227 |
* Free cash flow is an alternative performance measure. It is the sum of cash flows from operating activities, investments and divestments of fixed assets.
** Average number of shares has been impacted by repurchase of shares.
Comments to the consolidated cash flows
For further comments on certain individual lines in the cash flow statement, reference is made to Notes 17 and 26.
Cash flows from operating activities
The increase in cash flows from operating activities in 2023 is explained by the increase in operating income and the lower increase in working capital.
Cash and cash equivalents
The item cash and cash equivalents is mainly relating to bank deposits and liquid deposits.
Cash flow
Cash flow from operating and investing activities amounted to SEK 6,482 (-2,227) million during 2023. Out of this, acquisitions of businesses were SEK -337 (-3,685) million.
Adjustment for other non-cash items
Other non-cash items are mainly referring to realised gains and losses in connection with sale of assets. These have to be eliminated since the cash impact of divestments of fixed assets and businesses are reported separately under cash flow from investing activities.
Working capital
Working capital increased by SEK 259 (3,891) million during 2023, mainly due to build-up of inventories related to the volume growth and build-up of work in progress.
Investments
Investments in property, plant and equipment amounted to SEK 2,440 (1,853) million during 2023.
A number of structural changes in the form of new or improved buildings including move of production and productivity increasing investments for improved cost and availability have been implemented or started during the year, among others in Lund in Sweden, Satara in India, Kolding in Denmark and Jiang Yin, Kunshan and Qingdao in China. Examples of investments made for the individual product groups are as follows:
Heat exchangers
Investments have been made in machines for increased capacity and manufacturing of new products and in productivity enhancing equipment in Ronneby in Sweden, San Bonifacio in Italy and Jiang Yin in China for brazed heat exchangers. Additional investments have been made in Jiang Yin in China, Satara in India and in Lund in Sweden in equipment to widen the product range and increase the productivity for gasketed heat exchangers.
High speed separators
Continued capacity investments in machining equipment for separators have been made in Eskilstuna in Sweden, Krakow in Poland and Pune in India.
Decanters
Capacity and productivity enhancing investments have been made in Nakskov in Denmark.
Pumps and valves
Capacity and productivity enhancing investments have been made in Kolding in Denmark and Kunshan in China. The complete transfer of manufacturing from Eastbourne in UK to Kolding in Denmark was finalised during the year.
Depreciations
Depreciation, excluding allocated step-up values, amounted to SEK 1,559 (1,449) million during the year.
Acquisitions and disposals
For a further analysis of the impact on the cash flow by acquisitions and disposals, see Note 17.
Free cash flow per share
The free cash flow per share is SEK 16.50 (3.52).