Consolidated cash-flow statements
    Jan 1-Dec 31 Jan 1-Dec 31 Jan 1-Dec 31
Amounts in SEK millions Note 2008 2007 2006
Cash flow from operating activities        
Operating income   5,736 4,691 2,552
Adjustment for depreciation   560 608 601
Adjustment for other non-cash items   -879 -73 207
    5,417 5,226 3,360
         
Taxes paid   -1,868 -1,130 -549
    3,549 4,096 2,811
Changes in working capital:        
(Increase)/decrease of current receivables   87 -1,163 -1,308
(Increase)/decrease of inventories   -192 -1,110 -725
Increase/(decrease) of liabilities   264 896 1,418
Increase/(decrease) of provisions   354 545 423
(Increase)/decrease in working capital   513 -832 -192
         
    4,062 3,264 2,619
         
Cash flow from investing activities        
Investments in fixed assets (Capex)   -747 -556 -373
Divestment of fixed assets   140 79 19
Acquisition of businesses 25 -726 -1,199 -1,227
Divestment of businesses 25 - 0 4
    -1,333 -1,676 -1,577
         
Cash flow from financing activities        
Received interests and dividends   219 49 52
Paid interests   -266 -229 - 223
Realised financial exchange differences   -245 -64 56
Repurchase of shares   -766 -1,497 -
Dividends to owners of parent company   -963 -698 -570
Dividends to minority owners in subsidiary   -20 -27 -29
(Increase)/decrease of other financial assets   -380 -13 80
Increase/(decrease) of liabilities to credit institutions   -178 1,188 -302
    -2,599 -1,291 -936
         
Net increase (decrease) in cash and bank   130 297 106
         
Cash and bank at the beginning of the year   856 546 479
Translation difference in cash and bank   97 13 -39
Cash and bank at the end of the period 24 1,083 856 546
         
Free cash flow per share (SEK) *   6.38 3.60 2.33
         
Capex in relation to sales   2.7 2.2 1.9
         
Average number of shares **   427,500,307 440,611,504 446,687,972
       
* Free cash flow is the sum of cash flows from operating and investing activities.
** Average number of shares has been affected by the repurchase of shares and the 4:1 split.		      
Comments to the consolidated cash-flow statements
For further comments on certain individual lines in the cash-flow statements, reference is made to Notes 24 and 25.
Cash flow
Cash flow from operating and investing activities amounted to SEK 2,729 (1,588) (1,041) million during 2008. Out of this, acquisitions of businesses were SEK -726 (-1,199) (-1,227) million whereas divestments generated cash of SEK 140 (79) (23) million. Cash flow from operations has primarily been influenced by the higher operating income in comparison with last year. As a result of increased volumes and profit the cash flow has been burdened by increased tax payments.
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 decreased by SEK 513 million during 2008 whereas the corresponding figures for 2007 and 2006 were an increase by SEK 832 and 192 million respectively.
Investments
Investments in property, plant and equipment amounted to SEK 747 (556) (373) million during 2008. The investments made for the individual product groups are as follows:
Heat exchangers
Investments have been made in capacity and productivity enhancing equipment in Ronneby in Sweden and in Alonte in Italy for brazed heat exchangers.
Investments have also been made in China in equipment and factory space to increase capacity for both plate heat exchangers and brazed heat exchangers. Major investments in production capacity for welded heat exchangers have been made in both Fontanil and Chalon in France.
Decanters
Large investments have been finalized for capacity build up for medium sized decanters in Poona in India and large decanters in Söborg in Denmark. The investments have increased the product range flexibility between the two factories.
High speed separators
Large investments in turn/mill capacity for component manufacturing have been made both in Poona, India and in Eskilstuna, Sweden.
Fluid handling products
Investments in capacity for production of fluid handling products have been finalized in China and India for mainly the Asian market but also for exports.
Depreciations
Depreciation, excluding allocated step-up values, amounted to SEK 304 (265) (263) million during the year.
Acquisitions and disposals
For a further analysis of the impact on the cash flow by acquisitions and disposals, see Note 25.
Free cash flow per share
The free cash flow per share is SEK 6.38 (3.60) (2.33) *.
* The figures for prior years have been recalculated due do the 4:1 split.