16 Group Interim Management Report >> 08 ­19 K 02 >> SAF-HOLLAND 08 >> Interim Management Report 20 >> Interim Financial Report 38 >> Additional Information We also strengthened the Company's cash position through a customer and management loan: The management of SAF-HOLLAND provided a loan in the amount of EUR 1.3 million in the first quarter of 2009. The loan is unsecured for a period of 24 months. The Company received additional funds in the amount of EUR 4.5 million in the form of a loan provided by a longstanding customer. This loan agreement, with a term of 18 months, provides for interest to be paid at rates and on conditions that are customary in banking. Repayment is due in full on maturity, and the loan is secured by the use of non-core assets as collateral. II.7 Investments Investments in the reporting period focused on the consolidation of our activities in China which, prior to the acquisition of the former Austin-Westran facility in Xiamen, had been conducted with our partner, AL-KO. The company in Jinan will now be operated solely by SAF-HOLLAND and shares in the company in Yantai were sold to the former joint-venture partner. Further consolidation measures in the Xiamen facility in China are planned. At the same time, we invested in an automatic welding line at our location in Bessenbach, the construction of which started in 2008. In total, net investments amounted to EUR 5.2 million (previous year: EUR 25.0 million). For the full-year, capital expenditure will not exceed EUR 7.5 million. II.8 Liquidity Cash and cash equivalents rose significantly in the reporting period to EUR 13.6 million (December 31, 2008: EUR 8.6 million). The ongoing restructuring program and decreased business activities combined to generate a significant decrease in working capital require- ments: Inventories fell to EUR 60.2 million (December 31, 2008: EUR 85.8 million) although the company in Jinan is now fully consolidated and inventories of the company sold in Yantai were taken over. Our aim is to reduce inventories to a volume of 45 days. With the ongoing reduction of inventories we are reacting to market developments. The high inven- tory volume in the previous year of EUR 111.9 million as of September 30, 2008 resulted from the extremely high demand and a major order on hand at that time. Net working capital at the balance sheet date was at 15.1% of sales (December 31, 2008: 10.9%). We plan to reduce the need to 9% of sales. Cash flow from operating activities before income tax payments totaled EUR 29.1 million (previous year: EUR 30.9 million) despite weak demand, confirming the Company's strong performance. As a result of the consolidation of the companies in China, cash flow from investing activities amounted to EUR -5.2 million (previous year: EUR -25.0 million). The higher reference value resulted from the acquisition of the landing leg business from Austin- Westran and the reduction of capacities at that time. Cash flow from financing activities includes scheduled interest payments and repayment of principal as well as the customer and management loan. In total, the figure for the reporting period was EUR -19.5 million (previous year: EUR 4.9 million) ­ the previous year figure was affected by a capital increase in September 2008.