British American Tobacco: Financial Analysis
Table of Contents
AMERICAN TOBACCO (BAT):
BRITISH AMERICAN TOBACCO (BAT) group is one of the world’s top tobaccos manufacturing group and known due to its high quality innovative product portfolio all over the world. Having excellent supply chain from crops to consumers BAT is carrying out its operation in more than 180 different markets around the world and hold healthy market positions into each region of their operation that makes BAT as market leader in more than 50 markets. BAT starts its operations in 1902 and today has become one of the world’s top company in term of market capitalization is producing more than 200 brands and one of the eight adult from one billion adult smokers of the world choose brands manufactured by the group (BAT business Review, 2010).
Primary Business Activities:
Main function of the company is to produce and sell tobacco products mainly cigarettes. However, some of companies hold by group also manufactured smokeless Swedish Style snus that is placed under lip and many healthcare experts has reported it less harmful than cigarettes. Kent, Dunhill, Lucky Strike and Pall Malle are leading brands of the company and these brands are labeled as Global Drive Brand. Key markets covered by these four global driver brands are Australia, Argentina, Brazil, Chile, France, Germany, Italy, Japan, Kazakhstan, Malaysia, Mexico, Romania, Russia, Saudi Arabia, South Africa, South Korea, Spain, Taiwan and Uzbekistan. Other international brands named by the group include Viceroy, Rothmans, Kool, Benson & Hedges, State Express 555, Peter Stuyvesan and John Player Gold Leaf (BAT About us, 2011).
History of the BAT Group:
BAT starts its business operations in 1902 and came into being as a result of joint venture between two giant firms from two powerful economies i.e. American Tobacco Company from US and Imperial Tobacco Company from UK and BAT listed on London Stock Exchange by 1911. BAT born as international player and expand its business to West Indies, India, Ceylon, Egypt, Holland, Belgium, Sweden, Norway, Finland, Indonesia and East Africa and Malaysia during first decade of its operations till 1911 and company continuously grow in term of sales and market capitalization. Moreover, 1930 crash in Wall Street, change many of their distribution networks into fully subsidiaries. Second World War severely affects its operations in most of the countries in Europe and also loses contracts from China where sale was more than 55 millions. These negative shocks compel the group to adopt diversification strategy and start investing in financial services, paper and pulp, cosmetics and the food industry. However, company refocuses into their basic function of tobacco and the function of financial services in 1989. During 1990s group made various joint ventures as economic liberalization and the breakup of state monopolies explore many new opportunities to grow in this respect. Till 2011 group made various acquisitions, mergers and joint venture to expand its operations around the world (BAT History, 2011).
BAT Competitors:
Imperial Tobacco Group PLC, ITC Ltd., Philip Morris International, Inc. and Godfrey Phillips India Ltd. are direct competitors of BAT in term of market capitalization. Moreover, following list demonstrates the top Global Cigarette and Cigar Manufacturers in term of revenue generation (Yahoo finance, 2011).
· British American Tobacco plc
· Japan Tobacco Inc.
· Altadis, S.A.
· Imperial Tobacco Group plc
· Reynolds American Inc.
· Lorillard, Inc.
· Swedish Match AB
Position of the company within their industry:
Statistics reveal strong current market position of the group as BAT stands at top position in term of market capitalization and shows highest price earnings ratio that shows the strong belief of investors on BAT and they are willing to pay more against a unit earning of the group. Company shows 5% growth in sales after excise duty and other taxes and document £4,984 millions of operating profit more than 12% as compared to previous year that shows high growth for the group. Moreover, statistics evidenced that basic EPS reached to 145.2 pence for the year of 2010 and 114.2 pence dividend per share is announced that is the highest limit over the group life. Having 45 factories in 39 countries and the 60431 no. of employees the current market price of the group shares is 2657P.
Future Directions:
Currently group’s turnovers are increasing continuously and 5% percent increase in revenues is evidenced that shows the potential of the sector and high demand of tobacco product. However, many NGOs and government is continuously trying to de-motivate cigarette manufacturing to protect environment and health. So, laws and regulations can affect group operations negatively. On the other in many countries Government can impose high taxes to prevent high cigarette consumptions that can also change the nature of product and more importantly the profitability.
Stock Market Research:
Table 1 shows the average annual market prices of the company for last ten years. Statistics reveals continuous rise in average annual stock prices of the group. Current stock price of the company is 2640p/share at London Stock Exchange. This continuous rise demonstrates the strength of the company in market and investors’ confidence on group shares. Moreover, results also reveal continuous and steady rise share prices at annual basis. Following graph reveals the share prices for last ten years and we can view less speculative activities related to the group shares.
Some ups and downs are evidenced in 2008 and 2009 but these variations were due to economic crises and not because of speculation. 2010 evidenced 24% increase in market prices and average market price was 2245 as compared to 1806 in 2009 shows high increase in market price for the year. However, there is chance of further increases in the stock prices. In 2008 and 2009 group has stopped to apply buy back shares and till now the group did not buy their own shares. While at the end of 2011 group is expected to start buy back shares policy and start buy their own shares that can impact on share prices (Annual report, 2010). Moreover, high P/E ratio also reveals high marketability of the company as investors are more confident in investing in the company and ready to pay 12.8 against unit earning of the company. 2008 and 2009 also evidenced negative growth of P/E ratio due to decreased market value. However, 2010 some recovery is viewed and group’s P/E ration reached to 12.5p. On the other hand dividend yield is also on higher side and show steady results. Company also adopting smooth dividend policy and pay about 55 to 65% of their earnings as dividend. In 2010 company announce 114.7 adjusted diluted EPS that reveals high profitability of the company. In addition due to these high earning group announce 114.2 dividend per share which is the highest dividend ever paid by the group. Continuous growth in dividend per share as shown in the following graph attracts long term investors to invest in BAT stocks.
Ten years Dividend Per Share
In conclusion group show strong growth in its marketability and investors are more confident about the group and less speculative activities are found. Moreover, group is paying smooth dividends that imply high future earnings will lead to high dividends per share in this respect. So, investing for long term in group’s stock will be beneficent and prove profitable investment.
Ratios and Their Competitive Analysis:
SIC codes of the company are 2111, 2131, 6282, 6311, 6321, 6331, 6351, 6371 and 6399 (Research bank, 2011). Table 2 demonstrates the common used ratio for the group. Results reveal that current ratio of the group goes down in 2010 as compared to previous year 2009. However, still it is more than 1 that is the acceptable ratio for a manufacturing concern. Acceptable liquidity is also evidenced by increases in working capital as compared to previous year in this respect. On the other hand debt ratio of the group decreases as compared to previous year and results in high interest coverage ratio as compared to previous year. Nonetheless, debt to equity ratio also decreases that show the decreased margins for financer from equity of the company. Collection period of the company has been increased by last year. Though high collection period block cash flows but in this case company has already enough cash flow that also increases as compared to last year and on the other hand with the increase in collection period group’s sales also increases and ultimately the profits that demonstrates the effective management of trade receivables in this respect. However, still inventory turnover decreases as compared to last year and high net operating cycle do not show effective working capital management for the company. Moreover, though high payment period is beneficent for the company as it provides relaxation regarding payments and avoid unnecessary short term financing but still high payment period can affect subsequent relations with creditors. Despite ineffective working capital management in term of inventory turnover company still show positive profitability results as compared to previous year. Results reveal highest EPS in the life of company and company announced highest dividend per share in the history of life se well. At last these positive earning contribute positively to its market value that cross the line of 2200p per share that was average 1806p last year. Company also announced highest dividend per share of 114.5p per share in his history. A significant positive impact of high profitability is found in term of increased marketability and a substantial increase in market value is evidenced in this respect. These positive earnings increase investors’ confidence and they are ready to pay 12.8p against per unit of earning.
Condensed Financial Statements and a Written Analysis: |
Table 3, 4 and 5 demonstrate the condensed balance sheet, income statement and statement of cash flows. Results reveal increase in both current and fixed assets with respect to 2007. However, company is decreasing its debts in term of both current and long term liabilities. A substantial incrase in retain earnings are also view in table 3.1. On the other hand it is evidenced by table 3.2 that company finance more through long term debts than current liabilities. Gross profits show increasing trends while increased sales and reduced cost are the potential reasons behind this increae in GP as compared to 2007. Though operating expenses in 2010 are highest as compared to 2007 but still net income show increasing trends in this respect. Company document increasing trend in cash in flow from operating activities while decreasing trend of cash from investing activities reveal low intention of firm to dispose of its assets. Increasing trend of cash from financing trend shows that the company is investing its free cash flow and gain profits that cause increase in cash flows. Moreover, substantial decreasing trend is found in exchange rate affects as compared to 2007. In conclusion cash flow results show that company has substantial amount of cash flow and there is less chance that company face liquidity problems. Moreover, operating cash flows contributes most significantly that demonstrates the effective operation management in term of cash flows in this respect. Delayed payments and decrease inventory turnover led the company to invest for delayed period.
Conclusion:
In conclusion BAT is one of the leading tobacco products manufacturer and recent results reveal strong growth in term of both profitability and marketability. Current share price is at its top position i.e. 2246p per share and results also reveal increase in P/E ratio for the company. Moreover, company stock is found less speculative, though variations are found in late 2008 and early 2009 but it was due to economic shocks that affect whole the market. Furthermore, operating results are also satisfactory and company document increase in its sales and reduction in cost that lead to high profitability and results file highest EPS and dividend per share in the history of company. These positive earning also increase market credibility and return the investors’ confidence. These results show that investing in the company shares will be more profitable for both long term and short term. Though increasing numbers of competitors and economic crises are there but still due to its more than 100 years of operations it is expected that company will perform well in subsequent years that also affect its marketability and increase shareholders’ wealth.
References:
BAT (2011), “About us” [online] Available at
London Stock Exchange (2011), [online] Available at
Yahoo finance (2011), “BAT tobacco” [online] Available at
Annual Reports (2010), “BAT tobacco”, [online] Available at
Appendix:
Table 1 Marketability Data
British American Tobacco (LSE)
| ||||||
Year
|
Price
|
DPS
|
EPS
|
P/E ratio
|
Div Yield
|
Div Payout Ratio
|
2000
|
394.8513
| |||||
2001
|
553.071
|
32
|
5.79%
| |||
2002
|
673.993
|
35.2
|
66.54
|
10.13
|
5.22%
|
52.90%
|
2003
|
643.6561
|
38.8
|
69.21
|
9.30
|
6.03%
|
56.06%
|
2004
|
826.4183
|
41.9
|
131.12
|
6.3
|
5.07%
|
31.96%
|
2005
|
1085.544
|
47
|
83.85
|
12.95
|
4.33%
|
56.05%
|
2006
|
1394.123
|
55.9
|
98.6
|
14.14
|
4.01%
|
56.69%
|
2007
|
1660.758
|
66.2
|
108.5
|
15.31
|
3.99%
|
61.01%
|
2008
|
1818.651
|
83.7
|
128.8
|
14.12
|
4.60%
|
64.98%
|
2009
|
1806.998
|
99.5
|
153
|
11.8
|
5.51%
|
65.03%
|
2010
|
2245.48
|
114.2
|
175.7
|
12.8
|
5.09%
|
65.00%
|
2011
|
2514.603
| |||||
Data is not available for blanked cells
Table 1.2 % change in Marketability Data
% of Change as compared to last year
| ||||||
Years
|
Price
|
DPS
|
EPS
|
P/E ratio
|
Div Yield
|
Div Payout Ratio
|
2000
| ||||||
2001
|
40.07%
| |||||
2002
|
21.86%
|
10.0%
| ||||
2003
|
-4.50%
|
10.2%
|
4.0%
|
-8.2%
|
15.4%
|
6.0%
|
2004
|
28.39%
|
8.0%
|
89.5%
|
-32.2%
|
-15.9%
|
-43.0%
|
2005
|
31.36%
|
12.2%
|
-36.1%
|
105.4%
|
-14.6%
|
75.4%
|
2006
|
28.43%
|
18.9%
|
17.6%
|
9.2%
|
-7.4%
|
1.1%
|
2007
|
19.13%
|
18.4%
|
10.0%
|
8.3%
|
-0.6%
|
7.6%
|
2008
|
9.51%
|
26.4%
|
18.7%
|
-7.8%
|
15.5%
|
6.5%
|
2009
|
-0.64%
|
18.9%
|
18.8%
|
-16.4%
|
19.6%
|
0.1%
|
2010
|
24.27%
|
14.8%
|
14.8%
|
8.2%
|
-7.6%
|
-0.1%
|
2011
|
11.99%
| |||||
Data is not available for blanked cells
Table 2 Comparative Ratio Analysis
Fiscal year ended 31 Dec. 2010
| ||||
SIC 2111, 2131, 6282, 6311, 6321, 6331, 6351, 6371, 6399
|
Ratios
|
2010
£m
|
2009
£m
|
2008
£m
|
Liquidity
| ||||
Working capital
|
£ 8657
|
£ 8106
|
£ 8739
| |
Current ratio
|
1.13
|
1.17
|
0.98
| |
Quick ratio
|
0.66
|
0.70
|
0.63
| |
Long-term solvency
| ||||
Debt ratio
|
65.73%
|
70.27%
|
73.81%
| |
Debt-to-equity ratio
|
1.73
|
2.10
|
2.54
| |
Times-interest-earned
|
8.99
|
8.14
|
9.14
| |
Free cash flow
|
£3,240
|
£2,630
|
£1,711
| |
Management efficiency
| ||||
Accounts receivable turnover
|
6.26
|
6.00
|
5.72
| |
Inventory turnover
|
1.08
|
1.23
|
1.28
| |
Asset turnover
|
0.55
|
0.52
|
0.52
| |
Accounts payable turnover
|
0.69
|
0.84
|
2.57
| |
Accounts receivable days
|
58
|
61
|
64
| |
Inventory days
|
338
|
298
|
284
| |
Accounts payable days
|
527
|
433
|
142
| |
Net trade cycle
|
923
|
792
|
490
| |
Profitability
| ||||
Gross profit margin
|
75%
|
72%
|
73%
| |
Return-on-sales (ROS)
|
21%
|
21%
|
22%
| |
Return-on-assets (ROA)
|
12%
|
11%
|
11%
| |
Return-on-equity (ROE)
|
36%
|
39%
|
37%
| |
Earnings per share (EPS) (adjusted)
|
£176.70p
|
£153.80p
|
£129.60p
| |
Investment
| ||||
Price/Earnings ratio (PE)
|
12.80
|
11.80
|
14.12
| |
Dividend yield
|
5.05%
|
5.51%
|
4.60%
| |
Dividend rate
|
£114.20p
|
£99.50p
|
£83.70p
| |
Average Market value per share
|
2245.48
|
1806.8
|
1818.651
| |
Table 3 condensed classified balance sheet
Dated: Dec. 31, 2010
(£ in millions)
|
2010
|
2009
|
2008
|
2007
|
Current assets
|
£8657
|
£8106
|
£8742
|
£5366
|
Property, plant and equipment (net)
|
3117
|
3010
|
3076
|
2378
|
Other assets
|
16086
|
15498
|
15733
|
10984
|
Total assets
|
£27860
|
£26614
|
£27551
|
£18728
|
Current liabilities
|
£7645
|
£6916
|
£8901
|
£4554
|
Long-term liabilities
|
10667
|
11786
|
11435
|
7076
|
Contributed capital
|
506
|
506
|
506
|
506
|
Retained earnings
|
3190
|
2168
|
1578
|
1835
|
Treasury stock and other stockholder’s equity
|
5852
|
5238
|
5131
|
4757
|
Total liabilities and stockholder’s equity
|
£27860
|
£26614
|
£27551
|
£18728
|
Table 3.1 condensed classified balance sheet: Trend Analysis
Dated: Dec. 31, 2010
(£ in millions)
|
2010
|
2009
|
2008
|
2007
|
Current assets
|
161%
|
151%
|
163%
|
100%
|
Property, plant and equipment (net)
|
131%
|
127%
|
129%
|
100%
|
Other assets
|
146%
|
141%
|
143%
|
100%
|
Total assets
|
149%
|
142%
|
147%
|
100%
|
Current liabilities
|
168%
|
152%
|
195%
|
100%
|
Long-term liabilities
|
151%
|
167%
|
162%
|
100%
|
Contributed capital
|
100%
|
100%
|
100%
|
100%
|
Retained earnings
|
174%
|
118%
|
86%
|
100%
|
Treasury stock and other stockholder’s equity
|
123%
|
110%
|
108%
|
100%
|
Total liabilities and stockholder’s equity
|
149%
|
142%
|
147%
|
100%
|
Table 3.2 condensed classified balance sheet: common-size statements
Dated: Dec. 31, 2010
(£ in millions)
|
2010
|
2009
|
2008
|
2007
|
Current assets
|
31%
|
30%
|
32%
|
29%
|
Property, plant and equipment (net)
|
11%
|
11%
|
11%
|
13%
|
Other assets
|
58%
|
58%
|
57%
|
59%
|
Total assets
|
100.0 %
|
100.0 %
|
100.0 %
|
100.0 %
|
Current liabilities
|
27%
|
26%
|
32%
|
24%
|
Long-term liabilities
|
38%
|
44%
|
42%
|
38%
|
Contributed capital
|
2%
|
2%
|
2%
|
3%
|
Retained earnings
|
11%
|
8%
|
6%
|
10%
|
Treasury stock and other stockholder’s equity
|
21%
|
20%
|
19%
|
25%
|
Total liabilities and stockholder’s equity
|
100.0 %
|
100.0 %
|
100.0 %
|
100.0 %
|
Table 4 Condensed multi-step income statement
Fiscal year ended Dec. 31,2010
(£ in millions)
|
2010
|
2009
|
2008
|
2007
|
2006
|
Revenue
|
14883
|
14208
|
12122
|
10018
|
9762
|
Cost of goods sold
|
(3707)
|
(3948)
|
(3316)
|
(2772)
|
(2872)
|
Gross profit
|
11176
|
10260
|
8806
|
7246
|
6890
|
Operating expenses (Employee benefit depreciation, amortization and impairment costs)
|
(3447)
|
(2928)
|
(2337)
|
(1922)
|
(1955)
|
Income from operations
|
7729
|
7332
|
6469
|
5324
|
4935
|
Other operating income
|
207
|
196
|
281
|
205
|
181
|
Other expenses
|
(3618)
|
(3427)
|
(3178)
|
(2624)
|
(2494)
|
Net finance cost
|
(480)
|
(504)
|
(391)
|
(269)
|
(289)
|
Share of post-tax results of associates and joint ventures
|
550
|
483
|
503
|
442
|
431
|
Income from continuing operations before income tax
|
4388
|
4080
|
3684
|
3078
|
2764
|
Provision for income tax
|
(1248)
|
(1124)
|
(1025)
|
(791)
|
(716)
|
Income from continuing operations
|
3140
|
2956
|
2659
|
2287
|
2048
|
Nonrecurring items
| |||||
Net income
|
3140
|
2956
|
2659
|
2287
|
2048
|
Earnings per share (basic)
|
145.2p
|
137.0p
|
123.28p
|
105.19p
|
92.08p
|
Earnings per share (diluted)
|
144.4p
|
136.3p
|
122.54p
|
104.46p
|
91.33p
|
Table 4.1 condensed multi-step income statement: trend analysis
Fiscal year ended Dec. 31,2010
(£ in millions)
|
2010
|
2009
|
2008
|
2007
|
Revenue
|
149%
|
142%
|
121%
|
100%
|
Cost of goods sold
|
134%
|
142%
|
120%
|
100%
|
Gross profit
|
154%
|
142%
|
122%
|
100%
|
Operating expenses (Employee benefit depreciation, amortization and impairment costs)
|
179%
|
152%
|
122%
|
100%
|
Income from operations
|
145%
|
138%
|
122%
|
100%
|
Other operating income
|
101%
|
96%
|
137%
|
100%
|
Other expenses
|
138%
|
131%
|
121%
|
100%
|
Net finance cost
|
178%
|
187%
|
145%
|
100%
|
Share of post-tax results of associates and joint ventures
|
124%
|
109%
|
114%
|
100%
|
Income from continuing operations before income tax
|
143%
|
133%
|
120%
|
100%
|
Provision for income tax
|
158%
|
142%
|
130%
|
100%
|
Income from continuing operations
|
137%
|
129%
|
116%
|
100%
|
Nonrecurring items
| ||||
Net income
|
137%
|
129%
|
116%
|
100%
|
Earnings per share(basic)
|
138%
|
130%
|
117%
|
100%
|
Earnings per share (diluted)
|
138%
|
130%
|
117%
|
100%
|
Table 4.2 condensed multi-step income statement: common-size statements
Fiscal year ended Dec. 31,2010
(£ in millions)
|
2010
|
2009
|
2008
|
2007
|
Revenue
|
100.0 %
|
100.0 %
|
100.0 %
|
100.0 %
|
Cost of goods sold
|
25%
|
28%
|
27%
|
28%
|
Gross profit
|
75%
|
72%
|
73%
|
72%
|
Operating expenses (Employee benefit depreciation, amortization and impairment costs)
|
23%
|
21%
|
19%
|
19%
|
Income from operations
|
52%
|
52%
|
53%
|
53%
|
Other operating income
|
1%
|
1%
|
2%
|
2%
|
Other expenses
|
24%
|
24%
|
26%
|
26%
|
Net finance cost
|
3%
|
4%
|
3%
|
3%
|
Share of post-tax results of associates and joint ventures
|
4%
|
3%
|
4%
|
4%
|
Income from continuing operations before income tax
|
29%
|
29%
|
30%
|
31%
|
Provision for income tax
|
8%
|
8%
|
8%
|
8%
|
Income from continuing operations
|
21%
|
21%
|
22%
|
23%
|
Nonrecurring items
|
0%
|
0%
|
0%
|
0%
|
Net income
|
21%
|
21%
|
22%
|
23%
|
Table 5 condensed of cash flows statement
Fiscal year ended
(£ in millions)
|
2010
|
2009
|
2008
|
2007
|
Net cash from operating activities
|
£4490
|
£3878
|
£3539
|
£2600
|
Net cash from investing activities
|
(451)
|
(589)
|
(2386)
|
(122)
|
Net cash from financing activities
|
(3864)
|
(3405)
|
(374)
|
(2621)
|
Effect of exchange rate on cash
|
29
|
(125)
|
261
|
47
|
Net change in cash
|
204
|
(241)
|
1040
|
(96)
|
Cash, beginning
|
1979
|
2220
|
1180
|
1276
|
Cash, ending
|
£2183
|
£1979
|
£2220
|
£1180
|
Table 5.1 condensed statements of cash flows; trend analysis
Fiscal year ended
|
2010
|
2009
|
2008
|
2007
|
Net cash from operating activities
|
173%
|
149%
|
136%
|
100%
|
Net cash from investing activities
|
370%
|
483%
|
1956%
|
100%
|
Net cash from financing activities
|
147%
|
130%
|
14%
|
100%
|
Effect of exchange rate on cash
|
62%
|
266%
|
555%
|
100%
|
Net change in cash
|
213%
|
251%
|
1083%
|
100%
|
Cash, beginning
|
155%
|
174%
|
92%
|
100%
|
Cash, ending
|
185%
|
168%
|
188%
|
100%
|
Table 5.2 statement of cash flows
2010
|
2009
|
2008
|
2007
| |
Net cash from operating activities
|
4490
|
3878
|
3539
|
2600
|
Proceeds on disposal of intangibles
|
17
|
16
| ||
Interest received
|
59
|
83
|
125
|
114
|
Dividends received from investments
|
2
|
2
|
2
|
2
|
Proceeds on disposal of property, plant and equipment
|
61
|
39
|
62
|
62
|
Purchases and proceeds on disposals of investments
|
37
|
9
|
71
| |
Proceeds from associates’ share buy-backs
|
42
| |||
Proceeds from ST trademark disposals
|
187
| |||
Proceeds on disposal of subsidiaries
|
12
|
26
|
126
| |
Proceeds from issue of shares to owners of the parent
|
3
|
2
|
3
|
5
|
Proceeds from the exercise of options over own shares held in employee share ownership trusts
|
4
|
5
|
7
|
22
|
Proceeds from increases in and new borrowings
|
892
|
1,447
|
3518
|
438
|
Differences on exchange
|
29
|
261
|
47
| |
Net cash and cash equivalents at 1 January
|
1,979
|
2,220
|
1180
|
1276
|
Net cash and cash equivalents at 31 December
|
2,183
|
1,979
|
2220
|
1180
|
Total sources of cash
|
9,751
|
9,842
|
11,011
|
5,959
|
Purchases of property, plant and equipment
|
-497
|
-450
|
-448
|
-416
|
Purchases of intangibles
|
-87
|
-104
|
-96
|
-66
|
Purchases and proceeds on disposals of investments
|
-1
| |||
Purchase of Bentoel
|
-370
| |||
Purchase of ST cigarette and snus businesses
|
-1243
| |||
Purchase of Tekel cigarette assets
|
-12
|
-873
| ||
Purchases of other subsidiaries and associates
|
-1
|
-9
|
-15
| |
Interest paid
|
-578
|
-576
|
-400
|
-384
|
Interest element of finance lease rental payments
|
-2
|
-2
|
-3
|
-3
|
Capital element of finance lease rental payments
|
-17
|
-35
|
-30
|
-21
|
Movements relating to derivative financial instruments
|
-179
|
-267
|
-356
|
-89
|
Purchases of own shares held in employee share ownership trusts
|
-66
|
-94
|
-400
|
-750
|
Purchases of non-controlling interests
|
-12
|
-116
|
-41
| |
Reductions in and repayments of borrowings
|
-1,582
|
-1,853
|
-731
|
-427
|
Dividends paid to owners of the parent
|
-2,093
|
-1,798
|
-1393
|
-1198
|
Dividends paid to non-controlling interests
|
-234
|
-234
|
-173
|
-173
|
Differences on exchange
|
-125
| |||
Total uses of cash
|
-5,335
|
-5,934
|
-6,271
|
-3,583
|
Net Change in Cash
|
4,416
|
3,908
|
4,740
|
2,376
|
5.3 Sources and uses of cash statement--- common-size statements
2010
|
2009
|
2008
|
2007
| ||
Net cash from operating activities
|
46.05
|
39.40
|
32.14
|
43.63
| |
Proceeds on disposal of intangibles
|
0.15
|
0.27
| |||
Interest received
|
0.61
|
0.84
|
1.14
|
1.91
| |
Dividends received from investments
|
0.02
|
0.02
|
0.02
|
0.03
| |
Proceeds on disposal of property, plant and equipment
|
0.63
|
0.40
|
0.56
|
1.04
| |
Purchases and proceeds on disposals of investments
|
0.38
|
0.08
|
1.19
| ||
Proceeds from associates’ share buy-backs 25 42
|
0.38
| ||||
Proceeds from ST trademark disposals
|
1.90
| ||||
Proceeds on disposal of subsidiaries
|
0.12
|
0.24
|
2.11
| ||
Proceeds from issue of shares to owners of the parent
|
0.03
|
0.02
|
0.03
|
0.08
| |
Proceeds from the exercise of options over own shares held in employee share ownership trusts
|
0.04
|
0.05
|
0.06
|
0.37
| |
Proceeds from increases in and new borrowings
|
9.15
|
14.70
|
31.95
|
7.35
| |
Differences on exchange
|
0.30
|
0.00
|
2.37
|
0.79
| |
Net cash and cash equivalents at 1 January
|
20.30
|
22.56
|
10.72
|
21.41
| |
Net cash and cash equivalents at 31 December
|
22.39
|
20.11
|
20.16
|
19.80
| |
Total sources of cash
|
9751
|
9842
|
11011
|
5959
| |
Purchases of property, plant and equipment
|
-5.10
|
-4.57
|
-4.07
|
-6.98
| |
Purchases of intangibles
|
-0.89
|
-1.06
|
-0.87
|
-1.11
| |
Purchases and proceeds on disposals of investments
|
-0.01
| ||||
Purchase of Bentoel
|
-3.76
| ||||
Purchase of ST cigarette and snus businesses 25 (1,243)
|
-11.29
| ||||
Purchase of Tekel cigarette assets
|
-0.12
|
-7.93
| |||
Purchases of other subsidiaries and associates
|
-0.01
|
-0.08
|
-0.25
| ||
Interest paid
|
-5.93
|
-5.85
|
-3.63
|
-6.44
| |
Interest element of finance lease rental payments
|
-0.02
|
-0.02
|
-0.03
|
-0.05
| |
Capital element of finance lease rental payments
|
-0.17
|
-0.36
|
-0.27
|
-0.35
| |
Movements relating to derivative financial instruments
|
-1.84
|
-2.71
|
-3.23
|
-1.49
| |
Purchases of own shares held in employee share ownership trusts
|
-0.68
|
-0.96
|
-3.63
|
-12.59
| |
Purchases of non-controlling interests
|
-0.12
|
-1.05
|
-0.69
| ||
Reductions in and repayments of borrowings
|
-16.22
|
-18.83
|
-6.64
|
-7.17
| |
Dividends paid to owners of the parent
|
-21.46
|
-18.27
|
-12.65
|
-20.10
| |
Dividends paid to non-controlling interests
|
-2.40
|
-2.38
|
-1.57
|
-2.90
| |
Differences on exchange
|
-1.27
| ||||
Total uses of cash
|
-54.71
|
-60.29
|
-56.95
|
-60.13
| |
Net Change in Cash
|
45.29
|
39.71
|
43.05
|
39.87
| |
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