Notes: Consolidated financial statements

Notes to cash flow statement

The cash flow statement shows the changes in cash and cash equivalents in the year under review, and was prepared in accordance with IAS 7 (Cash Flow Statements). The cash flows are broken down into operating activities, investing activities and financing activities. The indirect method has been used for showing cash flow from operating activities.

Interest income and interest payments, dividend income as well as tax payments are stated under operating activities.

Cash and cash equivalents include the cash and cash equivalents stated in the balance sheet with a residual maturity of less than three months (cash in hand, cash deposited with the Bundesbank, cash at banks and checks as well as securities).

CASH FLOW FROM OPERATING ACTIVITIES

The cash flow from operating activities is calculated by adjusting the net profit for the period before taxes by items which are not cash-effective and by adding the change in non-current assets and liabilities (excluding financial debt). The cash flow from operating activities is then established after due consideration is given to interest and tax payments.

While profit before taxes on income decreased, the increase in the cash inflow from operating activities is mainly attributable to a much lower result generated by the disposal of property, plant and equipment and intangible assets, a reduced result of non-cash expenses and income, the increase in trade accounts payable as well as the decline in taxes on income while trade accounts receivables increased significantly.

CASH FLOW FROM INVESTING ACTIVITIES

The cash flow from investing activities is calculated as the inflow of funds attributable to the disposal of property, plant and equipment and intangible assets as well as investment grants, and the outflow of funds for capital spending in property, plant and equipment and intangible assets as well as non-current financial assets.

Inflow of funds attributable to investment grants are shown under investing activities, because there is a close relationship between investment grants which are received and the outflows of funds for capital spending in property, plant and equipment. The considerable increase in the outflow of cash from investing activities is mainly attributable to the outflows for the acquisition of Arriva and higher outflows for investments in property, plant and equipment in conjunction with a simultaneous increase in the inflows from investing grants.

When changes take place in the scope of consolidation as a result of the acquisition or sale of companies, the acquisition price which is paid (excluding any liabilities which are transferred) less the acquired or sold financial resources are stated as cash flow from investing activities. The other effects of the acquisition or sale on the balance sheet are eliminated in the corresponding items of the three categories.

CASH FLOW FROM FINANCING ACTIVITIES

The cash flow from financing activities is due to the net inflows and outflows attributable to issued bonds, bank loans and other loans which have been raised as well as inflows attributable to the raising of and/or outflows for the redemption of Federal loans.

The increase in the inflow of cash from financing activities is mainly attributable to the net increase in inflows from the raising of funds. There has been a considerable increase in net inflows from issuing bonds compared with the previous year, and the net outflows from the redemption and repayment of the Federal loans has increased further compared with the previous year.

Last modified: 13.07.2011