Condensed consolidated statements of cash flows
Third quarter |
|
January-September |
||
|---|---|---|---|---|
2018 |
2019 |
in € millions |
2018 |
2019 |
837 |
1,059 |
Net cash and cash equivalents at beginning of period |
1,278 |
2,732 |
Adjustments to reconcile earnings to cash generated from operating activities |
||||
155 |
175 |
Profit for the period from continuing operations |
410 |
475 |
60 |
87 |
Amortization and depreciation |
180 |
261 |
– |
28 |
Impairment losses |
– |
61 |
20 |
27 |
Financing income and expenses |
29 |
58 |
(4) |
(6) |
Results from associates and joint ventures |
(14) |
(16) |
(18) |
(5) |
Pre-tax result on acquisitions and divestments |
(40) |
(71) |
66 |
51 |
Income tax |
112 |
151 |
155 |
35 |
Changes in working capital |
(427) |
(502) |
(45) |
(16) |
Changes in provisions |
(248) |
(508) |
(27) |
(29) |
Interest paid |
(41) |
(50) |
(74) |
(45) |
Income tax paid |
(111) |
(132) |
(4) |
10 |
Other changes |
(7) |
13 |
284 |
312 |
Net cash from operating activities |
(157) |
(260) |
(41) |
(52) |
Capital expenditures |
(120) |
(135) |
(13) |
6 |
Acquisitions and divestments net of cash acquired |
6 |
92 |
– |
(220) |
Investment in short-term investments |
– |
(1,565) |
– |
790 |
Repayments of short-term investments |
– |
6,069 |
1 |
2 |
Other changes |
45 |
(156) |
(53) |
526 |
Net cash from investing activities |
(69) |
4,305 |
(74) |
(30) |
Changes from borrowings |
418 |
(85) |
(23) |
(8) |
Dividend paid |
(501) |
(1,353) |
– |
– |
Capital repayment |
– |
(2,000) |
– |
(717) |
Buy-back of shares |
– |
(2,206) |
(29) |
1 |
Other changes |
(28) |
1 |
(126) |
(754) |
Net cash from financing activities |
(111) |
(5,643) |
105 |
84 |
Net cash used for continuing operations |
(337) |
(1,598) |
34 |
(4) |
Cash flows from discontinued operations |
34 |
(5) |
139 |
80 |
Net change in cash and cash equivalents of continued and discontinued operations |
(303) |
(1,603) |
(24) |
16 |
Effect of exchange rate changes on cash and cash equivalents |
(23) |
26 |
952 |
1,155 |
Net Cash and cash equivalents at September 30 |
952 |
1,155 |
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 the first three quarters of 2019, the adoption of IFRS 16 has resulted in €83 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 Q3 2019 resulted in an inflow of €312 million (2018: €284 million). This increase was driven by the aforementioned implementation of IFRS 16, increased profit for the period and lower income taxes paid, which was partly offset by lower inflow of working capital.
Net cash from investing activities in Q3 2019 resulted in an inflow of €526 million (2018: outflow of €53 million). This was mainly impacted by a net cash inflow from the short-term investments of €570 million.
Net cash from financing activities in Q3 2019 resulted in an outflow of €754 million (2018: outflow of €126 million). This was mainly impacted by the share buyback (€0.7 billion) and the impact of the implementation of IFRS 16 leading to €29 million redemption of lease liabilities.
At September 30, 2019, net debt was positive €537 million versus negative €5,861 million at year-end 2018. This was mainly due to a capital repayment (€2.0 billion), the final dividend 2018 (€315 million), a special cash dividend payment (€1.0 billion), share buyback (€2.2 billion), pension related payments (€642 million) and seasonality of the operating working capital.