43. Notes to the cash flow statement

Free cash flow

The balance of the cash inflow from operating activities and the cash outflow from investing activities makes up the free cash flow. This indicates what cash resources are available for dividend distribution or the redemption of existing loans. The free cash flow fell year-on-year by € 25,408 thousand to € 88,501 thousand. Significant changes resulted from both the cash flow from operating activities and the cash flow from investing activities. The increase in cash flow from operating activities was mainly due to the year-on-year rise in the operating result (EBIT). There was an opposing effect from the year-on-year increase in income tax expenses, a smaller change in provisions and the change in trade receivables and other assets. The cash outflow from investing activities was higher than in the previous year. This increase was mainly the result of payments for (previous year: proceeds from) short-term deposits and a rise in payments for the acquisition of shares in consolidated companies.

Change in liabilities from financing activities

The balance of the proceeds from the issuance of bonds and the taking out of (financial) loans, as well as the balance of payments for the redemption of (financial) loans, produces the change in liabilities from financing activities pursuant to IAS 7. In the reporting year, the Group made payments for the redemption of (financial) loans in the amount of € 24,298 thousand (previous year: € 37,211 thousand). There were € 34,041 thousand (previous year: € 0 thousand) in proceeds from the issuance of bonds and (financial) loans. The first-time consolidation of HHLA PLT Italy S.r.l. and iSAM AG as well as its three subsidiaries in the reporting year led to an increase in liabilities to banks of € 34,225 thousand. This change in the liabilities from financing activities is reflected in the increase in liabilities to banks in the amount of € 39,468 thousand (previous year: decrease of € 36,687 thousand) as well as in the increase in liabilities from other loans in the amount of € 4,260 thousand (previous: decrease of € 126 thousand), see also Note 38. Exchange rate effects and other effects are insignificant.

Financial funds

Financial funds include cash in hand and bank balances with a remaining term of up to three months and receivables and liabilities relating to HGV. Receivables from HGV are overnight deposits available on demand. They are recognised at nominal value.