49 Cash flow disclosures

The cash flow statement of the continuing operations 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, cheques 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. As Deutsche Postbank Group ceased to be part of the continuing operations, the changes in cash and cash equivalents from its different activities were recognised separately.

The transaction agreed in January on the sale of Postbank shares to Deutsche Bank was completed on 25 February 2009 as scheduled. As a result of the ensuing deconsolidation, the cash flow statement of the discontinued operations comprises only January and February of the reporting period. Since the reporting period and the prior period are therefore not comparable, we do not present further details on the cash flows relating to discontinued operations.

49.1 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, changes in provisions and in other non-current assets and liabilities (net cash from operating activities before changes in working capital). Adjustments for changes in working capital (excluding financial liabilities) result in net cash from or used in operating activities.

Net cash from operating activities due to continuing operations before changes in working capital amounts to €763 million, thus being significantly below the previous year’s level (previous year: €2,714 million). This is mainly due to provisions utilised primarily for restructuring the US express business. The working capital reduction resulted in an overall cash inflow of €481 million. Net cash used for liabilities and other items of €344 million compares with net cash from changes in receivables and other current assets of €778 million. On balance, at €1,244 million, net cash from operating activities is by €2,118 million below the previous year’s level.

1)	Prior-period amount adjusted, see Note 5.

49.2 Net cash used in investing activities

Cash flows from investing activities mainly result from cash received from disposals of non-current assets and cash paid for investments in non-current assets. Interest and dividends received from investing activities as well as cash flows from changes in current financial assets are included as well. At €1,469 million, net cash used in investing activities exceeds the previous year’s amount by €555 million. This increase is the result of last year’s sale of the real estate package to Lone Star investment company leading to cash inflows of €942 million as well as of the refund of €495 million in interest from the repayment of EU state aid. There was a significant decline in cash paid to acquire non-current assets. Cash payments for property, plant and equipment and intangible assets relate among other items to the modernisation of mail centres and IT as well as to the maintenance of the global aircraft network. Large amounts were used last year particularly for the construction of the European and Asian air hubs. On balance, the change in current financial assets resulted in cash outflows of €659 million. Cash was received from the sale of Deutsche Bank shares which was invested on the capital market. Cash paid for investments in subsidiaries and other business units dropped significantly from €1,417 million in the previous year to €53 million. Cash was required in the previous year mainly for the capital increase of Deutsche Postbank AG.

• Previous Note |
• Next Note