12.03

Consolidated cash flow statements

Consolidated cash flow statements

Before proposed appropriation of net income

	At 31 December
	2004	% VARIANCE	2003	% VARIANCE	2002
Net income	667		300		599
Depreciation, amortisation and impairments	533		711		490
Changes in provisions:
Deferred tax liabilities	82		180		(16)
Provisions for pension liabilities	(309)		(221)		(111)
Other provisions	(3)		(7)		(14)
Changes in working capital:
Inventory	3		6		(1)
Accounts receivable	(65)		(37)		136
Other current assets	(11)		(10)		(74)
Current liabilities (excluding short-term financing)	103		15		23
O 22 Net cash provided by operating activities	1,000	6.7	937	(9.2)	1,032
Acquisition of group companies	(217)		(59)		(128)
Disposal of group companies	(1)		6		4
Acquisition of affiliated companies	(11)		(16)		(11)
Disposal of affiliated companies	1		2		10
Capital expenditure on intangible assets	(67)		(67)		(74)
Disposals of intangible assets	15		6		10
Capital expenditure of property, plant and equipment	(290)		(287)		(398)
Disposals of property, plant and equipment	32		40		53
Changes in other financial fixed assets	194		(2)		12
Changes in minority interests	6		4		4
O 23 Net cash used in investing activities	(338)	9.4	(373)	28.0	(518)
Changes in shareholders’ equity:
Dividends paid	(237)		(204)		(185)
Other changes in shareholders’ equity	(148)				1
Long-term liabilities acquired	52		70		63
Long-term liabilities repaid	(100)		(83)		(67)
Changes in short-term bank debt	(67)		(219)		(410)
O 24 Net cash used by financing activities	(500)	(14.7)	(436)	27.1	(598)
Changes in cash and cash equivalents	162	26.6	128	252.4	(84)
Cash and cash equivalents at beginning of financial year	470		357		451
Exchange rate differences on cash items	(5)		(14)		(18)
Cash and cash equivalents from acquisitions and disposals	6		(1)		8
Changes in cash and cash equivalents	162		128		(84)
Cash and cash equivalents at end of financial year	633	34.7	470	31.7	357
(in € millions, except percentage) Certain items in the consolidated cash flow statements have been adjusted for non-cash movements (principally assets acquired under finance leases, foreign exchange effects and newly consolidated and deconsolidated entities) and as a result do not correspond to the differences between the balance sheet amounts for the respective items. The accompanying notes form an integral part of the financial statements. The figures # O in the line items of these financial statements refer to the notes to the financial statements.