41. 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 operations.

Cash flows from discontinued operations concern the hypermarket business as well as METRO China.

The following explanations relate to continuing operations.

Due to the Covid-19 pandemic, operating activities generated significantly lower cash flows of €646 million in the reporting year (2018/19: €1.209 million). Depreciation/amortisation/impairment losses are attributable to property, plant and equipment at €358 million (2018/19: €362 million), to usufructuary rights at €315 million (2018/19: €288 million), to other intangible assets at €132 million (2018/19: €113 million), to goodwill at €27 million (2018/19: €3 million) and to investment properties at €25 million (2018/19: €15 million). This is contrasted by reversals of impairment losses in the amount of €1 million (2018/19: €8 million).

The change in net working capital amounts to €−172 million (2018/19: €+27 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 decrease in cash flows from changes in the net working capital is primarily due to the decrease in trade payables, which is mainly related to a decrease in purchasing volume due to Covid-19.

Other operating activities resulted in a total cash outflow of €140 million (2018/19: cash inflow of €53 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 €265 million (2018/19: cash inflow of €46 million). The decline is mainly due to higher cash inflows from divestments in the previous year, which mainly related to the sale of real estate.

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 usufructuary rights, 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 units in money market funds. The balance of capital expenditure in financial investments and the disposal of financial investments amounts to €−8 million (2018/19: €−2 million).

In the reporting period, cash flow from financing activities totalled €1,280 million (2018/19: cash outflow of €1.535 million).

The lease payments reported under cash flow from financing activities include the redemption portion of €370 million (2018/19: €352 million) and the interest portion of €177 million (2018/19: €188 million). The interest income received from leases (lessor) are disclosed in cash flow from operating activities. They amount to €15 million (2018/19: €16 million).

Cash and cash equivalents were subject to restrictions on title in the amount of €0 million (2018/19: €0 million).