41. Notes to the cash flow statement

In accordance with IAS 7 (Cash Flow Statement), 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 three months.

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

During the reporting period, net cash provided by operating activities amounted to €2,008 million (12M 2012/13: €2,667 million; 9M 2013: €–1,768 million). Impairment losses concern property, plant and equipment at €1,048 million (12M 2012/13: €1,171 million; 9M 2013: €802 million), goodwill at €88 million (12M 2012/13: €101 million; 9M 2013: €31 million), other intangible assets at €130 million (12M 2012/13: €168 million; 9M 2013: €113 million) and “investment properties” at €16 million (12M 2012/13: €20 million; 9M 2013: €16 million). On the other hand, reversals of impairment losses amount to €11 million (12M 2012/13: €15 million; 9M 2013: €7 million).

The change in net working capital amounts to €–28 million (12M 2012/13: €468 million; 9M 2013: €–2,395 million) and includes changes in inventories, trade receivables and receivables due from suppliers included in the item “other financial and non-financial assets”, credit card receivables and prepayments made on inventories. In addition, the item includes changes in trade liabilities and liabilities to customers, deferred sales related to vouchers, customer loyalty programmes, provisions for customer loyalty programmes and rights of return as well as prepayments made on orders.

Other operating activities resulted in a total cash outflow of €–38 million (12M 2012/13: €–320 million; 9M 2013: €–459 million). This item includes 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, unrealised currency effects and elimination of EBIT by deconsolidation results. The change compared with the previous year primarily stemmed from revised deconsolidation gains from the previous year (12M 2012/13: €–188 million; 9M 2013: €–162 million).

In the reporting period, investing activities led to cash outflow of €715 million (12M 2012/13: cash inflow of €721 million; 9M 2013: cash inflow of €747 million). This includes payments from the disposal of Real’s Eastern European business in the amount of €89 million. In the previous year (12M 2012/13), cash flow from investing activities included cash inflows of €953 million from the disposal of Real’s Eastern European business as well as €341 million from the sale of the OPCI real estate properties in France.

The amount of investments in property, plant and equipment shown as cash outflow differs from the inflows 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.

Other investments include payments of €169 million for the acquisition of ten single property companies for resale. In addition, a payment of €85 million was made to a British pension fund to take out a reinsurance policy. Investments in intangible assets amounted to €131 million (12M 2012/13: €165 million; 9M 2013: €123 million); investments in financial assets amounted to €2 million (12M 2012/13: €58 million; 9M 2013: €56 million).

Alongside disposals of subsidiaries, divestments comprise incoming payments related to the sale of 9 per cent of shares in Booker PLC totalling €244 million as well as cash inflow related to the divestment of individual office properties of METRO GROUP’s headquarters in Düsseldorf totalling €187 million. In addition, 25.75 per cent of the shares in OPCI FRENCH WHOLESALE PROPERTIES – FWP were divested for €40 million.

During the reporting period, the cash outflow from financing activities totalled €1,448 million (12M 2012/13: €–2,814 million; 9M 2013: €–1,690 million).