ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...
ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...
ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...
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NOTE 21<br />
LIQUID ASSETS<br />
GROUP PARENT COMPANY<br />
SEK M 2010 2009 2010 2009<br />
Cash and bank balances 428.1 434.9 88.3 151.7<br />
Restricted bank accounts 28.6 48.4 0.0 0.0<br />
Short-term investments 50.4 8.1 50.0 8.1<br />
Total 507.1 491.4 138.3 159.8<br />
Short-term investments have an insignificant risk of fluctuating in value,<br />
can easily be converted to cash and mature in not more than three months<br />
from acquisition. Short-term investments at each year consisted of overnight<br />
investments with banks which were available the first business day<br />
after the turn of the year.<br />
NOTE 22<br />
SHAREHOLDERS’ EQUITY<br />
Share capital<br />
According to the Articles of Association of Intrum Justitia AB (publ), the<br />
company’s share capital will amount to not less than SEK 1,500,000 and<br />
not more than SEK 6,000,000. All shares are fully paid in, carry equal<br />
voting rights and share equally in the company’s assets and earnings. No<br />
shares are reserved for transfer.<br />
Changes in<br />
share capital<br />
No. of<br />
shares<br />
2010 2009<br />
Share<br />
capital (SEK)<br />
No. of<br />
shares<br />
Share<br />
capital (SEK)<br />
Opening balance<br />
New share issues in<br />
79,994,651 1,599,893.02 79,592,171 1,591,843.42<br />
connection with exercise<br />
of employee stock<br />
options<br />
– – 402,480 8,049.60<br />
Closing balance 79,994,651 1,599,893.02 79,994,651 1,599,893.02<br />
Treasury shares –250,000 –5,000.00 –250,000 –5,000.00<br />
Net 79,744,651 1,594,893.02 79,744,651 1,594,893.02<br />
Share repurchase<br />
In 2008, 250,000 shares of the total of 79,994,651shares outstanding were<br />
repurchased for SEK 25.7 M to guarantee the delivery of shares and payment<br />
of social security costs in connection with the Group’s Performance-<br />
Based Share Program. The amount is recognized as a reduction in retained<br />
earnings.<br />
Other shareholders’ equity in the Group<br />
Other paid-in capital<br />
Refers to equity other than share capital contributed by the owners or arising<br />
owing to the Group’s shared-based payment programs. Also included<br />
are share premiums paid in connection with new issues.<br />
Reserves<br />
Refer exclusively to the translation reserve, which contains all exchange rate<br />
differences arising as of January 1, 2004 from the translation of financial<br />
reports from foreign operations as well as long-term intra-Group receivables<br />
and liabilities that represent an increase or decrease in the Group’s net<br />
investment in the foreign operations. The amount also includes exchange<br />
rate differences arising since January 1, 2009 on the Parent Company’s<br />
external loans in foreign currency, which are intended to hedge the Group’s<br />
translation exposure attributable to net assets in foreign subsidiaries.<br />
Retained earnings including net earnings for the year<br />
Refer to earnings in the Parent Company and subsidiaries, joint ventures<br />
and associated companies. Provisions to the statutory reserve, excluding<br />
transferred share premium reserves, were previously included in this item.<br />
Dividends paid and share repurchases are deducted from the amount.<br />
Following the balance sheet date the Board of Directors proposed a dividend<br />
of SEK 4.10 per share (3.75), or a total estimated payout of SEK 327.0<br />
M (299.0).<br />
NOTE 23<br />
Notes<br />
Other shareholders’ equity in the Parent Company<br />
Statutory reserve<br />
Refers to provisions to the statutory reserve and share premium reserve<br />
prior to 2006. The statutory reserve is restricted equity and may not be<br />
reduced through profit distributions.<br />
Share premium reserve<br />
When shares are issued at a premium, the amount exceeding their quota<br />
value is transferred to the share premium reserve. Provisions to the share<br />
premium reserve as of 2006 are non-restricted equity.<br />
Fair value reserve<br />
Refers to unrealized exchange rate gains or losses on long-term monetary<br />
transactions with subsidiaries as well as external loans in foreign currency,<br />
which are intended to hedge the Group’s translation exposure attributable<br />
to net assets in foreign subsidiaries. The fair value reserve is non-restricted<br />
equity.r i utländska dotterföretag. Fond för verkligt värde är fritt eget kapital.<br />
Retained earnings<br />
Refer to retained earnings from the previous year less the dividend paid and<br />
share repurchases. Retained earnings are non-restricted equity.<br />
Capital structure<br />
The company’s definition of capital corresponds to shareholders’ equity<br />
including the minority share, which at year-end totaled SEK 2,576.6 M<br />
(2,548.9).<br />
The measure used to monitor the company’s capital structure is the debt/<br />
equity ratio, defined as the sum of interest-bearing liabilities and pension<br />
provisions less liquid assets and interest-bearing receivables, divided by equity<br />
including the minority share. The Board of Directors has established financial<br />
objectives for the Group, where one of the restrictions is that the debt/<br />
equity ratio may not exceed 150 percent over the long ter m. There is also an<br />
external limit in the form of one of the covenants in the Group’s main loan<br />
facility, which requires that the debt/equity ratio not exceed 175 percent.<br />
The debt/equity ratio was 85.1 percent (81.2) at year-end.<br />
PENSIONS<br />
Employees in Intrum Justitia’s companies are covered by various pension<br />
benefits. Some are defined benefit plans and are fully financed through assets<br />
administered by fund managers.<br />
The Group applies IAS 19 Employee Benefits, which contains, among<br />
other things, uniform regulations on the actuarial calculation of provisions<br />
for pensions in defined benefit plans. Defined benefit pension plans<br />
are used by the Group’s companies in Belgium, France, Italy, Norway and<br />
Germany. Employees in these countries account for a total of 26 (25) percent<br />
of the entire Group’s personnel. The pension plan in Norway is a<br />
funded obligation insured with the Norwegian insurance company Storebrand.<br />
Other pension plans are not funded.<br />
Provisions for pensions at year-end can be sub-divided into the following<br />
components:<br />
GROUP<br />
SEK M 2010 2009 2008 2007 2006<br />
Present value of fully or partly<br />
funded obligations<br />
73.9 38.9 36.8 40.3 32.0<br />
Fair value of assets<br />
under management<br />
–66.9 –39.5 –37.2 –34.0 –28.7<br />
Surplus/deficit in the plan 7.0 –0.6 –0.4 6.3 3.3<br />
Present value of<br />
unfunded obligations<br />
26.6 32.6 32.9 29.5 27.7<br />
Present value of<br />
net obligation<br />
33.6 32.0 32.5 35.8 31.0<br />
Unrecognized actuarial<br />
gains/losses<br />
–1.5 7.4 6.9 –0.8 3.3<br />
Provisions for pensions 32.1 39.4 39.4 35.0 34.3<br />
67