Notes to the consolidated cash flow statement

The cash flow statement has been prepared using the indirect method. To reconcile the movement in cash and cash equivalents, the result after tax is adjusted for items in the income statement and movements in balance sheet that did not affect receipts and payments during the year.

The cash flow statement includes the cash flows of both continuing and discontinued operations. The cash flow statement distinguishes between cash flows from operating, investing and financing activities. The cash flow from operating activities includes interest and income tax payments and interest and dividend receipts. Development costs, investments in and disposals of non-current assets (including financial interests) are included in cash flow from investing activities. Dividends paid out are recognised as outgoing cash flow from financing activities.

Cash flows from discontinued operations

The consolidated cash flow statement for 2016 includes cash flows from discontinued operations for the period in which the legal entities concerned (as described in Note 11 ‘Result after tax on discontinued operations’) were members of the Group. For that part of 2016, these cash flows from operating activities were €165 million, from investing activities were €182 million (outflow) and from financing activities €0 million.

Movements in working capital

Working capital consists of inventories and current receivables less short-term non-interest-bearing debt.

The table below shows movements in working capital recognised in the cash flow from operating activities:

x € 1 million

2017

2016

Movements in intangible current assets

-11

-

Movements in inventories

7

42

Movements in trade receivables

27

118

Movements in other receivables

236

76

Movements in non-interest bearing debt

29

-349

Total

288

-113

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