42. Notes to the cash flow statement

In accordance with IAS 7 (Statement of Cash Flows), the consolidated cash flow statement describes changes in the group’s cash and cash equivalents through cash inflows and outflows during the reporting period.

The item cash and cash equivalents includes cheques and cash on hand as well as cash in transit and bank deposits with a remaining term of up to 3 months.

The cash flow statement distinguishes between changes in cash levels from operating, investing and financing activities. Cash flows from discontinued operations are reported separately where they concern discontinued business operations.

Cash flows from discontinued operations concern the hypermarket business to be disposed of.

The following explanations relate to continuing operations.

During the reporting period, cash flows from operating activities amounted to €874 million (2016/17: €851 million). Depreciation/amortisation/impairment losses of €453 million (2016/17: €499 million) are attributable to property, plant and equipment, €93 million (2016/17: €83 million) are attributable to other intangible assets, €0 million (2016/17: €19 million) to goodwill and €6 million (2016/17: €10 million) to investment properties. This stands in contrast to reversals of impairment losses in the amount of €4 million (2016/17: €3 million).

The change in amounts to €179 million (2016/17: €−34 million) and includes changes in inventories, trade receivables and receivables due from suppliers, included in the item other financial assets. Furthermore, it includes changes in trade liabilities. The improved cash flows generated by the net working capital are predominantly attributable to the Russia and Asia segments.

Other operating activities resulted in a total cash outflow of €69 million (2016/17: cash outflow of €45 million). This item includes other taxes, payroll liabilities, changes in other assets and liabilities as well as deferred income and prepaid expenses. In addition, it includes changes in the assets and liabilities held for sale, adjustments of unrealised and the reclassification of deconsolidation results recognised in .

In the reporting period, investing activities led to cash outflow in the amount of €296 million (2016/17: cash outflow of €457 million).

The cash inflows from disposals of subsidiaries in the amount of €33 million relate especiallyto payment receipts for the Chinese property companies disposed of in the . In the previous year, this item included outgoing cash from the disposals of subsidiaries Real Hyper Magazine and the 2 Chinese property companies.

The amount of investments in property, plant and equipment shown as cash outflows differs from the additions shown in the asset reconciliation in the amount of non-cash transactions. These essentially concern additions from finance leases, currency effects and changes in liabilities from the acquisition of miscellaneous other assets.

The financial investments comprise bank deposits with a residual term of more than 3 months to 1 year, as well as near money market investments that are not classified as cash and cash equivalents, such as short-term, liquid debt instruments and shares in money market funds. The balance of capital expenditure in financial investments and the disposal for financial investments amounts to €0 million (2016/17: cash inflow of €103 million).

In the reporting period, cash flow from financing activities totalled €581 million (2016/17: cash outflow of €375 million).

Cash and cash equivalents in the amount of €1 million (2016/17: €33 million) were affected by restrictions on title.

Reconciliation of the cash flow from financial liabilities to the change in financial liabilities reported in the balance sheet

€ million

 

30/9/2017

 

Cash item

 

Additions to finance leases

 

Reclassification in accordance with IFRS 5

 

Exchange rate movements

 

30/9/2018

Bonds incl. commercial papers

 

3,229

 

−309

 

0

 

0

 

0

 

2,920

Liabilities to banks

 

281

 

188

 

0

 

−65

 

−20

 

383

Promissory note loans

 

64

 

−9

 

0

 

0

 

0

 

55

Liabilities from finance leases

 

1,132

 

−128

 

145

 

−493

 

−4

 

652

 

 

4,706

 

−259

 

145

 

−558

 

−24

 

4,010

The cash flows from discontinued operations are derived as follows:

€ million

 

2016/17

 

2017/18

EBIT

 

19

 

−83

Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments

 

149

 

238

Change in provisions for pensions and other provisions

 

41

 

−35

Change in net working capital

 

−10

 

−80

Income taxes paid

 

0

 

0

Reclassification of gains (−) / losses (+) from the disposal of fixed assets

 

−3

 

−6

Other

 

−20

 

−3

Cash flow from operating activities of discontinued operations

 

176

 

31

€ million

 

2016/17

 

2017/18

Acquisition of subsidiaries

 

0

 

−3

Investments in property, plant and equipment (excluding finance leases)

 

−127

 

−88

Other investments

 

−23

 

−10

Acquisition of short-term financial investments

 

−1

 

−1

Disposals of subsidiaries

 

0

 

0

Disposal of fixed assets

 

4

 

11

Gains (+) / losses (−) from the disposal of fixed assets

 

3

 

6

Disposal of short-term financial investments

 

0

 

0

Cash flow from investment activities of discontinued operations

 

−144

 

−85

€ million

 

2016/17

 

2017/18

Dividends paid

 

 

 

 

to METRO AG shareholders

 

0

 

0

to other shareholders

 

0

 

0

Redemption of liabilities from put options of non-controlling interests

 

0

 

0

Proceeds from new borrowings

 

0

 

0

Redemption of borrowings

 

−31

 

−48

Interest paid

 

−29

 

−25

Interest received

 

1

 

0

Profit and loss transfers and other financing activities

 

−4

 

−6

Cash flow from financing activities of discontinued operations

 

−63

 

−79

Net working capital
The net working capital includes inventories, trade receivables and receivables due from suppliers included in the item Other financial and non-financial assets. Trade liabilities are deducted from the total amount of these items.
Glossary
Wholesale, METRO Wholesale
The METRO Wholesale segment comprises the METRO Wholesale sales line of METRO AG with more than 769 wholesale stores across 35 countries worldwide. This also includes the delivery business (Food Service Distribution) with companies like METRO delivery service and the delivery specialists Classic Fine Foods, Pro à Pro and Rungis Express.
Glossary
Currency effects
Currency effects result from situations where identical quantities of currency units are translated into another currency at differing exchange rates.
Glossary
EBIT (Earnings Before Interest and Taxes)
Profit or loss before financial result and (income) taxes. Due to its independence from different forms of financing and tax systems, the key figure can also be used internationally for comparison with other companies.
Glossary
Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Glossary