| USD million |
FY 2010 |
FY 2009 |
% change y-o-y |
| Net Cash Flows from Operating Activities |
378.1 |
733.7 |
(48%) |
| Net Cash from Operating Activities before Changes in Working Capital |
900.2 |
835.5 |
8% |
| Change in Working Capital |
(250.9) |
166.0 |
n/a |
| Net Interest and Income Tax Paid |
(271.2) |
(267.9) |
1% |
| Net Cash Used in Investing Activities |
(1,548.2) |
(433.8) |
257% |
| incl. Kopeyka acquisition |
(1,090.1) |
- |
n/a |
| Net Cash Generated From/ (Used In) Financing Activities |
1,066.0 |
(194.3) |
n/a |
| Effect of Exchange Rate Changes on Cash & Cash Equivalents |
(36.9) |
29.3 |
n/a |
| Net (Decrease)/Increase in Cash & Cash Equivalents |
(140.9) |
134.8 |
n/a |
Full year 2010 net cash generated from operating activities totalled USD 378 million versus USD 734 million a year ago.
This is attributable to the changes in working capital primarily as a result of the implementation of the new Retail Law which came into effect on 1 August 2010. The new law, among other things, regulates relationships between suppliers and retailers, and its implementation negatively affected retailers’ payment days. We did not react quickly enough to address the complexity of the implementation process, and the effect on working capital was greater than initially anticipated.
Increase in inventories is another factor that affected working capital. The increase is explained by key two reasons: (i) stocking up for extensive new store openings at the end of the year, and (ii) continuous efforts to improve service levels, which at the end of 2010 reached 92% for centralised deliveries and 85% for direct purchasing.
Net cash used in investing activities totalled USD 1,548 million in 2010, which includes USD 1,090 million paid for the Kopeyka acquisition. Organic CapEx totalled USD 458 million or RUR 14 billion, which is substantially below the targeted limit of RUR 18 billion. At the same time, the Company exceeded its store expansion plan and continued to invest in infrastructure projects, including logistics and IT. In 2010, net of Kopeyka acquisition, X5 opened 437 new stores, added 97 thousand sq.m. of logistics space and fully launched SAP for Retail and SAP for HR.
Net cash from financing activities in 2010 amounted to USD 1,066 million as the Company raised funds to finance Kopeyka acquisition.