IMMOEAST Annual Report 2006/07

5.2 Financial position
Cash flow statement
All amounts in TEUR 2006/07 2005/06 Change in %
Gross cash flow 63,361.5 24,854.1 154.9%
Cash flow from operating activities -121,097.5 6,783.7 -1,885.1%
Cash flow from investing activities -2,174,279.3 -799,448.5 172.0%
Cash flow from financing activities 2,664,752.7 1,056,146.7 152.3%
Cash and cash equivalents at the beginning of the period 317,728.7 58,811.7 440.2%
Cash and cash equivalents at the end of the period 702,146.3 317,728.7 121.0%
Change in cash and cash equivalents 384,417.6 258,917.0 48.5%
The full consolidated cash flow statement is shown on page 105.
Results for 2006/07
Gross cash flow
Gross cash flow demonstrates the strength of a company’s operational earnings. However, the
strong growth of IMMOEAST in recent years has made this indicator less important than earnings
data for an accurate evaluation of performance. In spite of this fact, it can be noted that gross cash
flow rose by 155% over the prior year to TEUR 63,361.5 for 2006/07 – an above-average increase
compared with the growth in revenues. Income taxes paid rose by 691% to TEUR 13,062.8 due to
the sale of the Europe Tower in Budapest through an asset deal, which did not allow for the (full)
elimination of tax expense.
Cash flow from operating activities
Cash flow from operating activities is based on gross cash flow, and includes the changes in the
various components of working capital. For the reporting year, cash flow from operating activities
fell significantly below gross cash flow because of a sharp rise in other receivables. This increase
was related to amounts due from taxation authorities in various East European countries for input
VAT as well as recently granted financing.
Cash flow from investing activities
Cash flow from investing activities clearly reflects the expansion strategy of IMMOEAST, with an
increase of 172% from TEUR 799,448.5 in 2005/06 to TEUR 2,174,279.3 for the reporting year. The
most important positions were the acquisition of property companies for TEUR 732,135.1 and the
purchase of financial assets for TEUR 544,875.0, whereby the acquisition of a 25% stake in TriGránit
represents a major component of this item.
Cash flow from financing activities
Cash flow from financing activities is comprised primarily of net proceeds of TEUR 2,658,792.3
from the IMMOEAST capital increase, and also includes the increase in and repayment of financial
liabilities.
Financing
IMMOEAST currently has an equity ratio of 73.2% and gearing of 19.7%. This standing reflects the
capital increase that was carried out during the 2006/07 financial year.
Information on the conditions of financial liabilities is provided in the notes to the financial statements
on page 207ff.
Report by the Executive Board 81
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary
Growth higher than
revenues
Negative cash cash flow from
operating activities activities due due to
increase in receivables
Intensity of expansion
reflected in plus of 172%
Capital increase leads to
improvement in equity ratio