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. Currently, there are no discontinued operations.

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 increased from 1,300.2 million euros to 1,486.1 million euros. The 185.9-million-euro increase resulted primarily from the significant year-on-year improvement in the operating result.

A decrease in utilisations of provisions and the increase in trade payables also led to higher operating cash flows.

Other non-cash transactions amounting to 16.2 million euros (previous year: -11.4 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 29.9 million euros (previous year: -2.1 million euros) for the remeasurement of pensions and similar obligations.

During the financial year, borrowing costs in the amount of 0.3 million euros (previous year: 0.1 million euros) were recognised.

Cash Flow from Investing Activities

The cash used in investing activities amounted to -1,786.3 million euros in the financial year, compared with -1,903.5 million euros in the previous year. The decrease in cash used in investing activities was due primarily to the 51.1-million-euro decline in net payments for the acquisition of consolidated companies and other business units and the 62.6-million-euro decrease 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 153.8 million euros (previous year: 157.4 million euros) that arose from the repayment of loans. Of this figure, 120.4 million euros (previous year: 142.0 million euros) related to loans to associates.

Furthermore, loans granted to joint ventures led to outflows for purchases of financial assets amounting to 32.4 million euros (previous year: 160.8 million euros) and repayments made in the course of the year to proceeds from disposals of financial assets amounting to 14.3 million euros (previous year: 171.2 million euros).

Investments in non-current assets amounted to 1,793.7 million euros, (previous year: 1,856.3 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 171.1 million euros (previous year: 174.6 million euros) related to loans granted. Of this figure, an amount of 126.5 million euros (previous year: 152.3 million euros) was granted to associates.

Furthermore, outflows of 30.7 million euros for the purchase of further shares (first tranche) in UAB Palink were recognised under purchases of financial assets and companies accounted for using the equity method.

Of the excess proceeds from business combinations and the acquisition of shares in consolidated companies amounting to 20.8 million euros (previous year: 0.8 million euros), 16.2 million euros was attributable to the acquisition of additional shares (second tranche) in UAB Palink and 4.6 million euros to repayments in connection with the acquisition of store locations from the Kaiser's Tengelmann Group in the previous year.

Of the payments for business combinations and the acquisition of shares in consolidated companies amounting to 25.7 million euros (previous year: 56.8 million euros), 15.5 million euros was attributable to the acquisition of the shares in Travel LAB SAS, Bloom Investissements SAS and Key 2014 SAS, each with its registered office in Saint-Ouen, France, 7.2 million euros to the acquisition of 12 stores in Russia, 1.8 million euros to the acquisition of two stores in Italy and 1.2 million to the acquisition of shares in Reisebüro Rade GmbH, Offenburg, and Journey Latin America Limited, London, United Kingdom. See also note 4 "Acquisitions".

Cash Flow from Financing Activities

The cash flow from financing activities was 284.5 million euros. Changes since the previous year amounting to 335.2 million euros resulted primarily from the fact that a promissory note loan amounting to 1,000.0 million euros was raised in the financial year while the syndicated line of credit was repaid in the amount of 650.0 million euros.

Furthermore, the utilisation of lines of credit resulted in cash inflows totalling 181.4 million euros.

In addition to the utilisation of lines of credit, cash proceeds of 11.0 million euros (previous year: 14.5 million euros) and cash repayments of 2.1 million euros (previous year: 34.7 million euros) in relation to borrowings from affiliated companies and associates also contributed to the cash inflows from financing activities.

Furthermore, loans from banks amounting to 16.5 million euros (previous year: 88.2 million euros) were raised during the financial year and 117.9 million euros (previous year: 91.1 million euros) of other loans were repaid.

In addition, the raising and repayment of loans to related parties led to cash proceeds of 567.7 million euros (previous year: 50.0 million euros) and cash payments of 556.9 million euros (previous year: 14.2 million euros).

The 33.4-million-increase in paid dividends resulted primarily from the increase in RZAG's dividends.

The payments from the change in non-controlling interests amounting to 45.5 million euros (previous year: 6.0 million euros) include cash outflows for the acquisition of further shares (third tranche) in UAB Palink. For information on acquisition of the three tranches, please also see note 4 "Acquisitions".

For details on cash repayments of finance lease liabilities amounting to 66.9 million euros (previous year: 46.9 million euros), see note 24 "Leases".

The change in cash funds amounting to 0.4 million euros related to changes in the scope of consolidation were attributable to fully consolidating Xtravel AB, Stockholm, Sweden, for the first time.

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, there are also loans from affiliated companies, associates and related parties.

Reconciliation of Liabilities from Financing Activities
in million €20182017
Other financial liabilities as at 1 Jan.2,397.61,337.7
 Non-interest bearing financial liabilities-92.1-69.1
Financial liabilities as at 1 Jan.2,305.51,268.6
  Liabilities from operating intercompany transactions-19.0-16.6
  Bank overdrafts-1.8-42.0
  Other liabilities from operating activities-10.2-6.1
Liabilities from financing activities as at 1 Jan.2,274.51,203.9
   Net change in cash funds368.2634.1
    of which cash proceeds from borrowings1,595.8825.6
    of which cash repayments of borrowings-1,160.7-144.6
    of which cash payments of finance lease liabilities-66.9-46.9
   Net change in non-cash funds31.0436.5
    of which additions from finance leases21.7280.6
    of which due to changes in the scope of consolidation0.0151.1
    of which due to currency translation-1.34.8
    of which due to reclassifications0.0-0.2
    of which due to other changes10.60.2
Liabilities from financing activities as at 31 Dec.2,673.72,274.5
  Liabilities from operating intercompany transactions30.919.0
  Bank overdrafts4.41.8
  Other liabilities from operating activities10.510.2
Financial liabilities as at 31 Dec.2,719.52,305.5
 Non-interest bearing financial liabilities80.392.1
Other financial liabilities as at 31 Dec.2,799.82,397.6

Other non-cash changes in liabilities from financing activities amounting to 10.6 million euros were due primarily to accrued interest on loans from banks.