Balance Sheet Disclosures


38. Cash Flow Statement

The cash flow statement shows changes in cash and cash equivalents less overdraft facilities during the financial year. A distinction is drawn between changes resulting from operating activities, investing activities and financing activities. The discontinued operations' cash flows from operating activities, investing activities and financing activities are reported separately from those of continuing operations in accordance with IFRS 5. During the financial year, these related to the BILLA Croatia discontinued operations (see note 5 "Divestitures").

The disclosures below relate to the cash flows of continuing operations.

Cash Flow from Operating Activities

During the period under review, the cash provided by operating activities decreased from 1,735.4 million euros to 1,300.2 million euros. The 435.2 million euro decrease resulted primarily from non-recurring income from central settlement following the revised European Court of Justice (ECJ) ruling in the previous year.

Adjusted for this non-recurring effect from the previous year, which was reflected in not only results from continuing operations but also income taxes paid and interest received, cash flows from operating activities during the financial year were up year on year. Among other factors, a decrease in income taxes paid contributed to this development. 

Other non-cash transactions amounting to -11.4 million euros (previous year: -105.0 million euros) in the financial year related to, among other things, allowances on receivables and inventories as well as the recognition directly within equity of -2,1 million euros (previous year: -68.2 million euros) for the remeasurement of pensions and similar obligations.

During the financial year, borrowing costs in the amount of 0.1 million euros (previous year: 0.0 million euros) were recognised.

Cash Flow from Investing Activities

The cash used in investing activities amounted to -1,903.5 million euros in the financial year, compared with -1,510.7 million euros in the previous year. The increase in cash used in investing activities is essentially attributable to the 277.4-million-euro increase in investments in intangible assets, property, plant and equipment, and investment properties. 

The proceeds from disposals of financial assets and companies accounted for using the equity method included an amount of 157.4 million euros (previous year: 156.1 million euros) that arose from the repayment of loans. Of this figure, 142.0 million euros (previous year: 114.5 million euros) related to loans to associates.

In addition, loans granted to joint ventures, which amounted to 160.8 million euros (previous year: 112.5 million euros) and repayments of 171.2 million euros (previous year: 110.0 million euros) made in the course of the financial year led to outflows for purchases and proceeds from disposals of financial assets and equity-accounted companies.

Investments in non-current assets amounted to 1,856.3 million euros, (previous year: 1,578.9 million euros). They related mainly to expansion investments in the store network and replacement and expansion investments at stores, warehouse locations and manufacturing companies.

Under purchases of financial assets, an amount of 174.6 million euros (previous year: 131.7 million euros) related to loans granted. Of this figure, an amount of 152.3 million euros (previous year: 118.2 million euros) was granted to associates.

Of the excess proceeds from business combinations and the acquisition of shares in consolidated companies amounting to 0.8 million euros (previous year: 18.2 million euros), 0.5 million euros was attributable to the first-time inclusion of REWE Dortmund SE & Co. KG, Dortmund, and 0.2 of that line item was attributable to the acquisition of GO VACATION AFRICA (PTY) LTD, Gauteng, South Africa.

Of the payments for business combinations and the acquisition of shares in consolidated companies amounting to 56.8 million euros (previous year: 121.4 million euros), 41.2 million euros was attributable to the acquisition of store locations of the Kaiser's Tengelmann Group and the acquisition of REWE Berlin Logistik GmbH, Berlin. The final purchase price for the acquisition was 37.5 million euros. The difference between the purchase price and the preliminary payment is recognised as at the balance sheet date as a receivable from purchase price reimbursements. In addition, payments of 9.2 million euros and 6.3 million euros resulted from the acquisition of grocery stores in Italy and Russia, respectively. See also note 4 "Acquisitions".

Cash Flow from Financing Activities

The cash flow from financing activities was 619.7 million euros. Changes since the previous year amounting to 958.7 million euros resulted primarily from the utilisation of the syndicated loan of 650.0 million euros and the borrowing of short-term demand and time deposits amounting to 135.0 million euros, while a promissory note loan of 300.0 million euros was repaid in the previous year.

By contrast, the repayment of lines of credit resulted in cash outflows of 125.0 million euros. 

In addition to the repayment of lines of credit, cash proceeds of 14.5 million euros (previous year: 25.2 million euros) and cash repayments of 34.7 million euros (previous year: 35.7 million euros) in relation to borrowings from affiliated companies and associates also contributed to the cash outflows from financing activities.

In addition, loans from banks amounting to 88.2 million euros (previous year: 63.3 million euros) were raised during the financial year and 91.1 million euros (previous year: 153.2 million euros) of other loans were repaid.

The payments from the change in non-controlling interests in the amount of 6.0 million euros (previous year: 9.5 million euros) include cash outflows for the acquisition of the remaining shares in the EXIM Group and Campina Verde Ecosol, S.L., Cordoba, Spain.

For details on cash repayments of finance lease liabilities amounting to 46.9 million euros (previous year: 36.3 million euros), see note 24 "Leases".

Liabilities from Financing Activities

Liabilities from financing activities related in particular to loans and demand and time deposits from banks, promissory note loans and finance lease liabilities. In addition, the Group also had loans from affiliated, associated, related and joint entities.

Reconciliation of liabilities from financing activities
in million €20172016
Other financial liabilities as at 1 Jan.1,337.71,347.7
 Non-interest bearing financial liabilities-69.1-71.8
Financial liabilities as at 1 Jan.1,268.61,275.9
  Liabilities from operating intercompany transactions-16.6-11.4
  Bank overdrafts-42.0-36.2
  Other liabilities from operating activities-6.1-19.7
Liabilities from financing activities as at 1 Jan.1,203.91,208.6
   Net change in cash funds634.1-314.8
    of which cash proceeds from borrowings825.6249.5
    of which cash repayments of borrowings-144.6-528.0
    of which cash payments of finance lease liabilities-46.9-36.3
   Net change in non-cash funds436.5310.1
    of which additions from finance leases280.6189.5
    of which due to changes in the scope of consolidation151.1125.5
    of which due to currency translation4.80.4
    of which due to reclassifications-0.2-5.2
    of which due to other changes0.2-0.1
Liabilities from financing activities as at 31 Dec.2,274.51,203.9
  Liabilities from operating intercompany transactions19.016.6
  Bank overdrafts1.842.0
  Other liabilities from operating activities10.26.1
Financial liabilities as at 31 Dec.2,305.51,268.6
 Non-interest bearing financial liabilities92.169.1
Other financial liabilities as at 31 Dec.2,397.61,337.7

Of the effects from changes to the scope of consolidation, 147.6 million euros (previous year: 125.1 million euros) was attributable to liabilities from finance leases.