The cash flow statement is prepared using the indirect method and in accordance with IAS 7. The statement traces the movements in the AGRANA Group’s cash and cash equivalents arising from operating, investing and financing activities.
Cash and cash equivalents, for the purpose of the cash flow statement, represent cash on hand, cheques and bank deposits. They do not include current bank borrowings or securities classified as current assets.
The effects of business acquisitions are eliminated and are stated in the item “purchases of businesses”.
Currency translation differences, with the exception of those relating to cash and cash equivalents, are already eliminated within the corresponding items in the balance sheet.
6.1. Cash flows from operating activities
Operating cash flow before changes in working capital was € 149,577 thousand (prior year: € 97,228 thousand), or 7.5% of revenue (prior year: 4.8%). The item “other non-cash expenses/income” consisted of, among items, the unrealised foreign currency translation losses (€ 4,624 thousand) reflected in net financial items, the effects of deferred taxes (expense of € 7,024 thousand), and current non-cash tax expense (€ 8,720 thousand). After changes in working capital, net cash from operating activities was € 162,151 thousand (prior year: net cash from operating activities of € 115,005 thousand).
Cash flows from operating activities included the following interest, tax and dividend payments:
| €000 | 2009|10 | 2008|09 |
|---|---|---|
| Interest received | 5,208 | 9,312 |
| Interest paid | 26,627 | 37,551 |
| Tax paid | 13,640 | 6,701 |
| Dividends received | 1,150 | 4,411 |
There were no restrictions on the use of items classified as cash and cash equivalents.
6.2. Cash flows from investing activities
€ 48,401 thousand (prior year: € 72,080 thousand) was required to fund the investing activities.
Purchases of property, plant and equipment and intangibles, net of government grants, decreased to € 48,160 thousand (prior year: € 73,172 thousand). Proceeds from disposal of non-current assets were € 3,402 thousand (prior year: € 14,637 thousand).
Purchases of businesses were reported in the financial year that relate to the acquisition of a new holding company (a joint venture) for the activities in the West Balkan region.
6.3. Cash flows from financing activities
In the 2009|10 financial year, borrowings were reduced by € 95,811 thousand (prior year: reduction by € 21,507 thousand). Also, an increase in the capital of AGRANA BIH Holding GmbH by the co-owner generated an inflow of € 1,250 thousand.
Dividends paid consisted mainly of the cash dividend distributed to the shareholders of AGRANA Beteiligungs-AG.