The consolidated cash flow statement is prepared in accordance with IAS 7 (Cash Flow Statements) and discloses the cash flows in order to present the source and application of cash and cash equivalents. It distinguishes between cash flows from operating, investing and financing activities. Cash and cash equivalents are composed of cash, checks and bank balances with a maturity of not more than three months, and correspond to the cash and cash equivalents reported on the balance sheet. The effects of currency translation and changes in the consolidated group are adjusted when calculating cash and cash equivalents.
50.1 Net cash from operating activities
Cash flows from operating activities are calculated by adjusting net profit before taxes for net financial income/net finance costs and non-cash factors, as well as taxes paid and changes in provisions (net profit before changes in working capital). Adjustments for changes in working capital and liabilities (excluding financial liabilities) result in net cash from or used in operating activities.
Net cash from operating activities rose by €1,229 million year-on-year to €3,565 million. In the previous year, operating cash flow was largely dominated by the outflow relating to receivables and liabilities from financial services in the amount of €2,550 million, which was due to the reduction of securitized liabilities at Deutsche Postbank AG.
Tax payments rose by €237 million as against the previous year (€76 million) to €313 million. €155 million of this relates to Deutsche Post AG and €53 million to the Deutsche Postbank group. In addition, Deutsche Post AG paid tax arrears amounting to €191 million resulting from completed external tax audits (disclosed under other operating expenses, see note 15).
As in the previous year, the change in provisions of €–2,531 million (previous year: €–1,276 million) comprises the elimination of non-cash interest cost on provisions (€545 million) that is already reflected in the elimination of net finance costs from the net profit before taxes. In addition, the changes in provisions in the balance sheet were adjusted for the provisions acquired as a result of acquisitions (€774 million) and for provisions for income taxes (€149 million). The changes in receivables and other assets in the amount of €–503 million (previous year: €–735 million) relate primarily to the €714 million increase in trade receivables. Other current assets were reduced by €130 million. Liabilities and other items rose by €896 million in the period under review (previous year: €1,728 million), mainly due to the increase in the subordinated debt of Deutsche Postbank AG (affecting cash flow) in the amount of €976 million (previous year: €1,085 million, see note 44).
50.2 Net cash used in investing activities
Cash flows from investing activities mainly result from cash received from disposals of noncurrent assets and cash paid for investments in noncurrent assets. Net cash used in investing activities totaled €5,052 million in the year under review (previous year: €385 million).
Disposals of items of noncurrent assets generated income for the Group of €761 million (previous year: €2,038 million, of which €1,534 million from the disposal of the 33.23% minority interest in Deutsche Postbank AG). €156 million of this relates to the sale of shares (primarily trans-o-flex (€65 million), Fuelserv (€35 million) and Fulco group – LBC Sweden AB, Herrljunga Akeri AB, LBC Finland Oy, GM/ITM A/S (Denmark) – (€21 million)).
€6,176 million (previous year: €2,536 million) was spent on investments in noncurrent assets. €4,135 million of this amount (previous year: €793 million) was attributable to the acquisition of companies, in particular the acquisition of Exel in the amount of €3,720 million, Blue Dart (€119 million), further shares in DHL Korea (€55 million), Express Couriers (€22 million) and the assumption of the logistics activities of KarstadtQuelle AG (asset deal) in the amount of €179 million. The total cash and cash equivalents acquired with these acquisitions amounted to €233 million (previous year: €17 million).
The following assets and liabilities were acquired on the acquisition of companies:
|Acquisitions of companies|
|Receivables and other securities from financial services||141||0|
|Current assets (excluding cash and cash equivalents)||167||2,243|
Further details of the acquisitions can be found in note 3.
Investments in other noncurrent assets increased by €298 million year-on-year to €2,041 million (previous year: €1,743 million). €1,931 million of this relates to capital expenditure and €110 million to the acquisition of other noncurrent financial assets.
In addition to the cash inflow or outflow due to divestitures or investments in noncurrent assets, the cash flow from investing activities also includes interest received in the amount of €210 million (previous year: €225 million) and a cash inflow of €153 million (previous year: outflow of €112 million) from current financial instruments. The cash inflow from current financial instruments is largely attributable to the sale by Deutsche Post AG of available-for-sale fixed-income securities in the amount of €159 million.
50.3 Net cash used in financing activities
Cash flows from financing activities result from the issue and repayment of financial liabilities, and from distributions. In addition, interest paid in the amount of €360 million (previous year: €443 million) is included in cash flows from financing activities.
Overall, net cash used in financing activities increased from €493 million in the previous year to €1,229 million in the period under review. In the previous year, the change in financial liabilities (inflow of €440 million) mainly reflected the proceeds from the exchangeable bond issued by Deutsche Post AG in 2004 on shares of Deutsche Postbank AG (€1.08 billion). Other repayments of bank loans, primarily by Deutsche Post International B.V., led to total cash outflows of €302 million in the area of financial liabilities. The dividend paid to shareholders of Deutsche Post AG resulted in an outflow of €556 million (previous year: €490 million). €76 million was paid to minority shareholders in the period under review, including €68 million to the minority shareholders of Deutsche Postbank AG. In addition, the issue of Deutsche Post AG shares under the stock option plan led to a cash inflow of €65 million.
50.4 Cash and cash equivalents
The cash inflows and outflows described above produced cash and cash equivalents of €2,084 million at year-end (see note 34 “Cash and cash equivalents”), down €2,761 million over the prior-year amount (€4,845 million). Currency translation differences impacted cash and cash equivalents in the amount of €–45 million in the year under review (previous year: €–14 million).