Report by the Board of Directors

Statement of Financial Position and Financing

The figures presented in the statement of financial position of December 31, 2017, are compared with the statement of the financial position of December 31, 2016 (MEUR).
  Dec. 31, 2017 Dec. 31, 2016
Non-current assets 46.7 30.3
Current assets 91.6 123.0
Total assets 138.4 153.3
Share capital 12.9 12.9
Other capital 103.7 117.7
Total equity 116.7 130.6
Non-current liabilities 1.5 3.1
Current liabilities 20.2 19.6
Total equity and liabilities 138.4 153.3
 Cash flow of the review period: Jan.-Dec. 2017 Jan.-Dec. 2016
+ Profit of the period +/- Adjustment of accrual basis items -2.4 5.0 
+/- Change in net working capital 2.0  -7.6 
- interest, taxes and dividends 0.3  0.9 
= Net cash from operating activities -0.0  -1.7 
- Net cash from investing activities -18.5  14.5 
- Net cash from financing activities -13.4  -11.6 
= Net change in cash and cash equivalents -32.0  -27.9 

Net cash from operating activities in January–December 2017 includes operative cash flows from both continuing and discontinuing operations.

The amount of gross investments in the period under review was EUR 20.1 million. Net investments for the review period totaled to EUR 19.1 million. The total amount of depreciation during the period under review was EUR 3.9 million. The amount of interest-bearing debt, including finance lease liabilities, was at the end of the reporting period EUR 1.2 million (EUR 3.2 million on December 31, 2016). Bittiumīs equity ratio at the end of the period was 85.6 percent (87.0 percent on December 31, 2016).

Cash and other liquid assets at the end of the reporting period were EUR 62.9 million (EUR 94.9 million on December 31, 2016).

Bittium has a total of EUR 20.0 million binding credit facility agreements essentially on the old terms from which EUR 10.0 million are valid until December 31, 2018 and EUR 10.0 million until December 31, 2019. At the end of the review period, EUR 0.0 million of these facilities were in use.

Bittium follows a hedging strategy that has an objective to ensure the business margins in changing market circumstances by minimizing the influence of exchange rates. According to the hedging strategy principles, the net position in the currency is hedged when it exceeds the euro limit defined in the hedging strategy. The net position is determined on the basis of accounts receivable, accounts payable, order book and budgeted net currency cash flow.