Condensed consolidated statements of cash flows

Second quarter

 

January-June

2018

2019

in € millions

2018

2019

1,027

1,239

Net cash and cash equivalents at beginning of period

1,278

2,732

Adjustments to reconcile earnings to cash generated from operating activities

123

226

Profit for the period

255

300

60

89

Amortization and depreciation

120

174

Impairment losses

33

28

18

Financing income and expenses

9

31

(6)

(5)

Results from associates and joint ventures

(10)

(10)

(2)

(66)

Pre-tax result on acquisitions and divestments

(22)

(66)

47

69

Income tax

46

100

(222)

(116)

Changes in working capital

(582)

(537)

(18)

6

Changes in provisions

(203)

(492)

(10)

(15)

Interest paid

(14)

(21)

14

(57)

Income tax paid

(37)

(87)

1

3

Other changes

(3)

3

15

152

Net cash from operating activities

(441)

(572)

(42)

(46)

Capital expenditures

(79)

(83)

(4)

83

Acquisitions and divestments net of cash acquired

19

86

(1,050)

Investment in short-term investments

(1,345)

2,225

Repayments of short-term investments

5,279

41

4

Other changes

44

(158)

(5)

1,216

Net cash from investing activities

(16)

3,779

99

(30)

Changes from borrowings

492

(55)

(305)

(319)

Dividend paid

(478)

(1,345)

Capital repayment

(2,000)

(1,186)

Buyback of shares

(1,489)

1

1

Other changes

1

(1)

(205)

(1,534)

Net cash from financing activities

15

(4,889)

(195)

(166)

Net cash used for continuing operations

(442)

(1,682)

(1)

Cash flows from discontinued operations

(1)

(195)

(167)

Net change in cash and cash equivalents of continued and discontinued operations

(442)

(1,683)

5

(13)

Effect of exchange rate changes on cash and cash equivalents

1

10

837

1,059

Net Cash and cash equivalents at June 30

837

1,059

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 half-year 2019, the adoption of IFRS 16 has resulted in €54 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 Q2 2019 resulted in an inflow of €152 million (2018: €15 million). This increase was driven by increased profit for the period and lower outflow of working capital.

Net cash from investing activities in Q2 2019 resulted in an inflow of €1,216 million (2018: outflow of €5 million). This was mainly impacted by a net cash inflow from the short-term investments of €1,175 million.

Net cash from financing activities in Q2 2019 resulted in an outflow of €1,534 million (2018: outflow of €205 million). This was mainly impacted by the share buyback (€1.2 billion) and the final dividend 2018 (€315 million).

At June 30, 2019, net debt was positive €62 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 (€1.5 billion), pension related payments (€639 million) and seasonality of the operating working capital.