Consolidated statements of cash flows

2018

Consolidated statements
of cash flows

SEK in millions	Note	Jan–Dec 2016	Jan–Dec 2015
Net income		6,496	10,205
Adjustments for:
Amortization, depreciation and impairment losses		13,662	21,705
Capital gains/losses on sales/disposals of non-current assets and operations		-6,275	283
Income from associated companies and joint ventures, net of dividends received	C14	-701	3,471
Pensions and other provisions		11,981	-487
Financial items		147	-290
Income taxes		649	1,537
Miscellaneous non-cash items		4	-239
Cash flow before change in working capital		25,964	36,184
Increase (-)/Decrease (+) in operating receivables		-1,943	146
Increase (-)/Decrease (+) in inventories		61	-384
Increase (+)/Decrease (-) in operating liabilities		1,888	-698
Change in working capital		6	-935
Cash flow from operating activities	C30	25,970	35,249
of which from discontinued operations		3,460	8,121
Intangible assets and property, plant and equipment acquired		-18,703	-18,699
Intangible assets and property, plant and equipment divested		173	153
Business combinations and other equity instruments acquired	C30, C33	-94	-6,248
Operations and other equity instruments divested	C30	12,084	4,724
Loans granted and other similar investments	C1	-6,198	-11,764
Repayment of loans granted and other similar investments		3,272	1,218
Compensation from pension fund		500	–
Net change in short-term investments		1,538	1,631
Cash flow from investing activities^1,2	C1	-7,428	-28,985
of which from discontinued operations²		-1,508	-4,823
Cash flow before financing activities	C1	18,542	6,264
Repurchased treasury shares including transaction costs		-5	-14
Acquisition of non-controlling interests		–	-356
Dividends paid to owners of the parent		-12,990	-12,990
Dividends paid to holders of non-controlling interests	C30	-2,376	-781
Proceeds from long-term borrowings		1,523	8,437
Repayment of long-term borrowings		-6,898	-8,307
Net change in short-term borrowings		-3,484	3,934
Settlement of derivative contracts for economic hedges and CSA		1,180	450
Cash received for repurchase agreements		6,975	–
Cash paid for repurchase agreements		-6,416	–
Cash flow from financing activities		-22,491	-9,628
of which from discontinued operations		-1,976	422
Net change in cash and cash equivalents		-3,949	-3,363
of which from discontinued operations		-24	3,719
Cash and cash equivalents, opening balance	C1	25,334	28,735
Net change in cash and cash equivalents for the year		-3,949	-3,363
Exchange rate differences in cash and cash equivalents		1,523	-38
Cash and cash equivalents, closing balance	C18	22,907	25,334
of which from continuing operations (including Sergel and Yoigo)¹		14,605	14,647
of which from discontinued operations (Eurasia)²	C34	8,302	10,687

1) Includes sales price paid in cash for Telia Company’s 60.4 percent ownership in Ncell, Telia Company’s share in the holding company Reynolds Holding and Telia Company’s economic interest in the 20 percent local shares in Ncell. For more information, see Note C34.

2) Includes sales price paid in cash in for minority owner Visor’s share of Ncell and Visor’s share in the holding company Reynolds Holding. The major part of the price has been distributed to Visor during the third quarter of 2016 and SEK 0.3 billion remains within cash and cash equivalents of discontinued operations as of December 31, 2016. For more information, see Note C34.