Net cash from operating activities increased by €630 million to €2,808 million. Net cash from operating activities before changes in working capital matched the previous year’s level, with a rise in cash outflows for other assets and liabilities being offset by a drop in non-cash income from the reversal of provisions. EBIT was also reduced, amongst other things, by the non-cash write-down on EXPRESS Americas non-current assets, which was added back in under depreciation/amortisation of non-current assets. Net cash from operating activities improved mostly because the net outflow of working capital was €597 million down on the previous year.

Net cash used in investing activities came to €908 million, on a par with the previous year (€871 million). Purchases of non-current assets amounted to €2,009 million. We also acquired interests in The Stationery Office, ASTAR Air Cargo and Polar Air Cargo. Cash inflows of €818 million were primarily accounted for by disposals of other non-current assets and Vfw AG.

Taking net cash from operating activities and deducting net cash used in investing activities gives a positive free cash flow of €1,900 million, an increase of €593 million on the previous year (€1,307 million).

Net cash used in financing activities rose by €1,427 million to €2,303 million. The main factors in this larger cash outflow were higher dividend payments of €903 million and the scaling back of financial liabilities (accounting for an outflow of €757 million). The increase in interest paid is mainly due to the modified, gross disclosure of financial derivatives from the beginning of 2007. There was a parallel increase in interest received as part of net cash from investing activities.

As a result of the net cash flows for operating, investing and financing activities as set out above, cash and cash equivalents decreased by €422 million compared with 1 January 2007, to €1,339 million.