Company Valuation Under IFRS : Interpreting and Forecasting ...

Chapter Five – Valuing a company
5. Metro cash flow (€ million)
Year 2002 2003 2004 2005 2006 2007 2008
EBIT 1,613 1,693 1,784 1,889 2,013
Depreciation and 1,521 1,551 1,587 1,628 1,674
amortisation
Changes in pension 60 61 63 64 66
provisions
Changes in other 0 0 0 0 0
provisions
Changes in net 63 99 115 135 160
working capital
Income taxes paid (487) (531) (579) (632) (692)
Changes in deferred 0 0 0 0 0
tax assets and liabilities
Changes in prepayments 0 0 0 0 0
and deferred income
Cash flow from 2,770 2,873 2,970 3,085 3,220
operating activities
Capital expenditure (1,500) (1,600) (1,700) (1,800) (1,900)
Cash flow from (1,500) (1,600) (1,700) (1,800) (1,900)
investing activities
Dividends to Metro (334) (369) (417) (469) (527)
shareholders
Dividends to minority (25) (28) (31) (35) (39)
shareholders
Equity issued 0 0 0 0 0
Equity bought back 0 0 0 0 0
Change in debt 0 0 0 0 0
Net interest paid (417) (364) (311) (256) (200)
Investment income (11) (11) (11) (11) (11)
Other financial items (6) (6) (6) (6) (6)
Cash flow from (792) (778) (776) (778) (783
financing activities)
Opening cash 1323 1,593 2,071 2,565 3,059 3,566
Change in cash 270 478 495 494 507 537
Closing cash 1593 2,071 2,565 3,059 3,566 4,103
Average cash 1,458 1,832 2,318 2,812 3,313 3,834
Interest received 158 199 251 305 359 416
Interest rate on cash 10.8% 10.8% 10.8% 10.8% 10.8% 10.8%
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