the average cost of debt and to the increase in the debt following the acquisition of the Aqua group. [2.8]
Insofar as the Group’s Consolidated Balance Sheet is con- cerned, it should be highlighted that there was increase in the Net Working Capital (+0.5%), once the effect of the acquisition of Aqua (18.0 million euros) had been taken into account. This means that there were fewer sales, which dropped from 31.6% to 30.7%. Inventory performed well with a decrease of -0.1%. Accounts Receivable and Payable showed an increase of 1.9%.
The Group focuses its risk management on the uncertain- ty of the financial markets (exchange and interest rates), and tries to minimise the potential adverse effects on the Group’s profitability.
Fluidra operates in the international environment and, therefore, is exposed to exchange rate risks for currency operations, especially in relation to the American dollar, the pound sterling and the Australian dollar. At 31 Decem- ber 2011, the contingent consideration was expressed in US dollars as a consequence of the acquisition of Aqua, as a result of which it is partly exposed to the risk of foreign exchange rates.
The risk management policy of interest rates is based on covering the risk in dollars through natural hedging (off- setting of receipts and payments) by covering any fluctua- tions with forward rates. In the case of the pound sterling, the Australian dollar and the shekel versus the US dollar, transactions and balances are covered by forward rate and/ or option rate arrangements.
The Group manages the exchange rate risk in the cash flow through hedged variable-to-fixed interest rate swaps.
With regard to credit and liquidity risk, the Group does not have significant concentrations of credit risk and im- plements prudent liquidity risk management practices. It does so by centralising the management of the flexibility required in financing to address the business requirements in the different markets in which it operates.
OPERATING INVESTMENTS [EN30] 2007 2008
Land and Buildings
Plants and Machinery Other fixtures, tools and furniture
Other fixed assets and work in progress
TOTAL (IN THOUSAND EUROS)
2,547 7,454 7,532 5,692 23,225
1,084 11,367 7,596 3,807 23,854
2009 605
3,377 4,639 2,306 10,927
2010 2011 826
4,168 4,625 4,067 13,686
813
3,928 6,445 3,717 14,903
Investments amounting to €21.4M were made, of which 6.5M corresponded to intangible assets other than those set out in the table, such as investments in R&D+i and pro- duct development (€4M), IT systems (1.6M), and patents and brands (€1M). There was a 21% increase in comparison with the previous year.
With respect to the environment, Fluidra remained com- mitted to optimising the natural resources that are used in manufacturing processes and to realising the potential of alternative energies. [EC8]
ASSETS ALLOCATED TO ENVIRONMENTAL IMPROVEMENTS
Waste treatment Energy savings Reducing emissions Reducing pollution Other
TOTAL (IN THOUSAND EUROS)
4.150 13
519 514 6
5.202
2007 2008 2009 2010 2011 Inv. Year 5,388
14
571 523 6
6,502
5,742 13
571 528 -
6,854
5,176 663 571 488 -
6,898
3,378 134 571 488 -
4,571
(1,798) (529) - - -
(2,327)
Insofar as the Group’s Consolidated Balance Sheet is concerned, it should be highlighted that there was increase in the Net Working Capital (+0.5%)
18 (
ECONOMIC SCENARIO
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