Condensed consolidated statements of cash flows
First quarter |
|
|
in € millions |
2018 |
2019 |
Net cash and cash equivalents at beginning of period |
1,278 |
2,732 |
|
|
|
Adjustments to reconcile earnings to cash generated from operating activities |
|
|
Profit for the period |
132 |
74 |
Amortization and depreciation |
60 |
85 |
Impairment losses |
– |
33 |
Financing income and expenses |
(19) |
13 |
Results from associates and joint ventures |
(4) |
(5) |
Pre-tax result on acquisitions and divestments |
(20) |
– |
Income tax |
(1) |
31 |
Changes in working capital |
(360) |
(421) |
Changes in provisions |
(185) |
(498) |
Interest paid |
(4) |
(6) |
Income tax paid |
(51) |
(30) |
Other changes |
(4) |
– |
Net cash from operating activities |
(456) |
(724) |
Capital expenditures |
(37) |
(37) |
Acquisitions and divestments net of cash acquired |
23 |
3 |
Investment in short-term investments |
– |
(295) |
Repayments of short-term investments |
– |
3,054 |
Other changes |
3 |
(162) |
Net cash from investing activities |
(11) |
2,563 |
Changes from borrowings |
393 |
(25) |
Dividend paid |
(173) |
(1,026) |
Capital repayment |
– |
(2,000) |
Buy-back of shares |
– |
(303) |
Other changes |
– |
(1) |
Net cash from financing activities |
220 |
(3,355) |
Net cash used for continuing operations |
(247) |
(1,516) |
Cash flows from discontinued operations |
– |
– |
Net change in cash and cash equivalents of continued and discontinued operations |
(247) |
(1,516) |
Effect of exchange rate changes on cash and cash equivalents |
(4) |
23 |
Net Cash and cash equivalents at March 31 |
1,027 |
1,239 |
IFRS 16 “Leases” was adopted per January 1, 2019, applying the modified retrospective method. The payments for the operating leases, in 2018 reported in the cash flow from operating activities, as from January 1, 2019, are included in the cash flow from financing activities. For Q1 2019, the adoption of IFRS 16 has resulted in €27 million of lease expenses being presented as redemption of lease liabilities in net cash from financing activities; this amount was previously recorded in net cash from operating activities. The 2018 comparative figures have not been restated.
Cash flows and net debt
Net cash from operating activities in Q1 2019 resulted in an outflow of €724 million (2017: €456 million). This was impacted by changes in provisions of €498 million (including top-up payments for the main UK plans of €478 million (2018: €175 million)) and working capital outflow of €421 million (2018: €360 million).
Net cash from investing activities in Q1 2019 resulted in an inflow of €2,563 million (2018: outflow of €11 million). This was mainly impacted by a cash inflow from the short-term investments of €3,054 million, an outflow of €295 million in short-term investments and an outflow of €161 million for the pre-funding for the Akzo Nobel (CPS) Pension Scheme.
At March 31, 2019, net debt was negative €1,259 million versus ne- gative €5,861 million at year-end 2018. This is mainly due to a capital repayment (€2.0 billion), a special cash dividend payment (€1.0 billion), share buyback (€0.3 billion), pension related payments (€639 million) and seasonality of the operating working capital.