Consolidated Cash Flow Statement
The Consolidated Cash Flow Statement, prepared in accordance with international financial accounting standards, is presented in the “Consolidated Financial Statements and Notess as of 31 December 2010”.
The following is a comment relating to the summary statement shown.
| Change in consolidated net debt | 2010 | 2009 | Change |
|---|---|---|---|
| In millions of Euro | |
|
|
| Opening consolidated net debt | (352.0) | (359.7) | 7.7 |
| Cash flow from operating activities (earnings+amortisation/depreciation) | 128.8 | 143.8 | (15.0) |
| (Increase)/reduction in working capital | 8.4 | (20.9) | 29.3 |
| (Increase)/reduction in net investments | (103.7) | (89.4) | (14.2) |
| Net change in retirement funds and other provisions | (7.8) | (3.8) | (3.9) |
| Change in shareholders' equity | (23.8) | (21.8) | (1.9) |
| Total change | 2.0 | 7.7 | (5.7) |
| Closing consolidated net debt | (349.9) | (352.0) | 2.0 |
During 2010 the Piaggio Group generated financial resources amounting to 2.0 million euro.
Cash flow from operating activities, defined as net income minus non-monetary costs and charges, was equal to 128.8 million euro.
Working capital generated a cash flow of 8.4 million euro; in detail:
- the collection of trade receivables generated financial flows for a total of 21 million euro;
- stock management generated financial flows for a total of approximately 12.4 million euro;
- supplier payments used financial flows of approximately 1.6 million euro;
- the movement of other non-trade assets and liabilities had a negative impact on financial flows by approximately 23.4 million euro.
Investment activities involved a total of 96.2 million euro of financial resources. These investments refer to approximately 40.0 million euro for capitalised research and development expenditure, and approximately 56.2 million euro for plant, property and equipment and intangible assets.
In more detail, research and development expenditure amounted to 26.2 million euro for the Two-wheeler segment (scooters, motorcycles and engines) and 13.8 million euro for the Commercial vehicles business.
As regards plant, property and equipment and intangible assets, 21.8 million euro was dedicated to product development for the Two-wheeler segment, approximately 15.3 euro to product development for the Commercial vehicles segment, approximately 11.5 million euro to industrial activities, approximately 6.1 million euro to information technology and 1.5 million euro to other activities.
The impact on cash flow of the distribution of dividends in 2010 was equal to 25.8 million euro.
As a result of the above financial dynamics, which generated a positive cash flow of 2 million euro, the net debt of the Piaggio Group stood at 349.9 million euro.
