21 Notes to the Statement of Cash Flows

The cash flow from operating activity is calculated using the indirect method. The indirect calculation adjusts the relevant changes in statement of financial position items to remove any exchange rate effects and/or changes in the scope of consolidation. This means that changes to the relevant statement of financial position items cannot be reconciled with the corresponding values based on the published consolidated statements of financial position.

The cash flow from investment activity shows the actual outflow of funds, so these figures also cannot be reconciled with the additions in fixed assets in the consolidated statement of financial position. If subsidiaries or business activities are acquired or sold, the influences ensuing from these transactions are shown as separate items in the statement of cash flows. Financial investment in securities falling due in more than three months is reported separately under cash flow from investment activity, as these transactions must instead be attributed to the cash and cash equivalents in economic terms.

The Group is financed mainly by bank loans granted in the form of loan commitments. Within the defined approval limits for loan commitments, our utilization of credit may be subject to considerable fluctuations both within a year and over several years. The raising and repayment of loans in foreign currencies are translated at the exchange rate prevailing as of the time of transaction, with the result that here, too, a reconciliation of the entire inflows and outflows for changing the financial liabilities in the statement of financial position is not possible.

For more details on the composition of funds made up of cash and cash equivalents, see Note 11