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 net working capital 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 METRO Wholesale 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 currency effects and the reclassification of deconsolidation results recognised in EBIT.

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 previous year. 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.

The cash flows from discontinued operations are derived as follows: