Financing

The financial position of the Group remained strong during the second quarter.

The interest-bearing net debt amounted to EUR 92 (-11) million at the end of July. The effective net debt including as debt the sold receivables of EUR 102 (184) million equalled EUR 194 (173) million.

Cash and liquid assets amounted to EUR 23 (91) million. The available limit in the revolving credit facilities with core banks amounted to EUR 120 (200) million, and the unused limit in the securitisation programmes was EUR 140 (68) million.

Net financial items during the second quarter totalled EUR -2.3 (-3.0) million. The year-to-date net financial items were EUR -6.6 (-5.4) million. The increase is explained by a higher amount of debt compared with the corresponding period last year. 

Net gearing increased to 33 (-3)% compared with the end of Q2 2008, and the equity ratio decreased to 22 (24)%.

Free cash flow and net working capital

In the second quarter, the operative cash flow before changes in net working capital and investments amounted to EUR 37 (38) million. The increase in net working capital produced a cash flow of EUR -49 (186) million, as the decrease in the amount of receivables sold impacted the cash flow negatively during the second quarter. Net investments amounted to EUR -4 (-7) million. The free cash flow decreased to EUR
-16 (217) million.

The year-to-date operative cash flow before changes in net working capital and investments was EUR 70 (70) million. Changes in net working capital resulted in a cash flow of EUR -118 (38) million. The net cash flow effect of investments was EUR
-20 (-12) million. On a year-to-date basis the free cash flow decreased to EUR -68 (96) million.