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 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 business operations.

Cash flows from discontinued operations stem from the sale of the Galeria Kaufhof group which was completed in the previous year. The following explanations relate to continuing operations.

During the reporting period, net cash from operating activities amounted to €1,569 million (2014/15: €1,595 million). Depreciation/amortisation/impairment losses concern property, plant and equipment at €854 million (2014/15: €888 million), other intangible assets at €168 million (2014/15: €104 million), investment properties at €11 million (2014/15: €38 million) and goodwill at €0 million (2014/15: €457 million). On the other hand, reversals of impairment losses amount to €16 million (2014/15: €22 million).

The change in net working capital amounts to €−283 million (2014/15: €−305 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 €154 million (2014/15: cash inflow of €381 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, adjustments of unrealised currency effects and the elimination of deconsolidation results recognised in EBIT.

Key items include the reclassification of the deconsolidation result from the sale of the activities in Vietnam of €451 million to disposals of subsidiaries and payments into METRO Unterstützungskasse from loans granted in the amount of €220 million. In the previous year, the item essentially included the adjustment of unrealised currency effects of €236 million, which amounted to €−4 million in financial year 2015/16.

In the reporting period, investing activities led to cash outflow of €224 million (2014/15: cash outflow of €1,187 million). This includes net payments from the disposal of METRO Cash & Carry’s wholesale business in Vietnam in the amount of €357 million. Acquisitions of subsidiaries essentially include the acquisitions of Rungis Express and the RTS group. In the previous year, this included payments for the acquisition of the Classic Fine Foods group in the amount of €241 million and additional shares in the iBOOD group in the amount of €10 million.

Other investments include payments of €82 million (2014/15: payment €415 million) for short-term monetary investments > 3 months.

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

Divestments include the repayment of a short-term financial investment > 3 months in the amount of €415 million.

In the reporting period, cash outflow from financing activities totalled €3,584 million (2014/15: cash outflow of €718 million), which essentially stems from the redemption of financial liabilities.

There were no restrictions on the disposal of cash and cash equivalents.