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, which indicates the cash resources available for dividend distribution or the redemption of existing loans. The free cash flow increased year-on-year by € 41,705 thousand to € - 61,312 thousand. Significant changes resulted from both cash flow from operating activities and cash flow from investing activities. Cash flow from operating activities rose mainly due to the year-on-year increase in the operating result (EBIT), the rise in trade liabilities and other liabilities, as well as a smaller increase in trade receivables and other assets, as well as lower income tax payments than in the previous year. Meanwhile, higher interest paid had an opposing effect. The cash outflow from investing activities was higher than in the previous year. This increase was largely due to higher payments for investments in property, plant and equipment and investment property. Proceeds for short-term deposits (previous year: payments) had an opposing effect.

Change in liabilities from financing activities

The balance of the proceeds from the issuance of bonds and the drawdown of (financial) loans, as well as the balance of payments for the repayment 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 repayment of (financial) loans in the amount of € 77,349 thousand (previous year: € 70,528 thousand). The drawdown of (financial) loans produced proceeds of € 139,585 thousand (previous year: € 309,425 thousand). This change in the liabilities from financing activities is reflected in the increase in liabilities to banks in the amount of € 38,050 thousand (previous year: € 238,455 thousand) and the increase in liabilities from other loans in the amount of € 27,406 thousand (previous year: € 2,583 thousand); see also Note 38. Exchange rate effects and other effects are insignificant.

Lease liabilities, see also Note 38 and Note 40, increased during the reporting year by € 73,792 thousand (previous year: decreased by € 61,933 thousand), including the net effects in particular of new non-cash contracts in the amount of € 130,476 thousand (previous year: € 27,525 thousand), contract terminations in the amount of € 6,063 thousand (previous year: € 35,384 thousand) and cash repayments in the amount of € 50,621 thousand (previous year: € 54,074 thousand).

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.