Notes to the consolidated financial statements

Cash flow

Cash flow

The cash flow statement has been prepared in accordance with IAS 7. This note contains a detailed analysis of cash flow in accordance with the internal criteria established by the company for business purposes, which is some cases differ from the provisions of IAS 7. The main criteria applied are described below:

  • In order to provide a clearer explanation of cash generated, the Group separates cash flows into "cash flows excluding infrastructure projects", where infrastructure project companies are treated as financial investments and investments in the capital of these companies are therefore included in cash flows from investing activities, and yields on the investments (dividends and other) are included in cash flows from operating activities, and "cash flows of infrastructure projects", consisting of cash flows from operating and financing activities of infrastructure projects (Note 1 contains a detailed definition of infrastructure projects).

  • In addition, and as indicated in Note 4 on segment reporting, a breakdown by segment is provided of both cash flows excluding infrastructure projects and cash flows of infrastructure projects.

  • In order to provide a more accurate analysis of cash flows from operating activities, they are calculated based on gross operating results and explanations of the differences between gross operating results and cash flows from operating activities are also provided.

  • Interest received from cash and cash equivalents is treated differently from the cash flow statement treatment under IAS 7, since this interest is included in cash flows from financing activities as a reduction in the amount of interest paid in the item "Interest flows".

  • These flows seek to present the evolution of net cash as defined in Note 20, as the net amount of borrowings, cash and cash equivalents and restricted cash. This method also departs from IAS 7, explaining the movement in cash and cash equivalents.

 Cash flow

The following table contains a reconciliation of the cash flow statement under IAS 7 and the cash flow statement prepared for internal reporting purposes:

 Cash flow statement under IAS 7

Explanation of differences:

  • The cash flow statement includes interest received in cash flows from investing activities, while the internal analysis includes interest in interest flows, net of interest paid.

  • The cash flow statement explains changes in cash and cash equivalents, while the internal analysis explains the change in the reported net cash position reflected in the Group's consolidated balance sheet. When explaining the change in reported net cash, adjustments must be made to items that, despite generating movements in net cash, do not imply cash flows as defined by IAS 7. These items are included in the internal analysis on the lines "Change in exchange rate" and "Other movements in borrowings". It may therefore be observed that the sum of the change in the net cash position and adjustments to net cash (-2,553 - 705 + 2,008 = -1,250) is identical to the sum of the increase and decrease in bank borrowings and change in cash and cash equivalents reflected in the cash flow statement (3,610 - 4,931 + 71 = -1,250).


 Cash Flow

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