Cash Flows

The following table presents the primary components of GrandVision’s cash flows.

Cash flow components

in millions of EUR

2014

2013

Net cash from operating activities

380

333

Net cash used in investing activities

- 374

- 113

Net cash used in financing activities

29

- 259

Inflow/(outflow) in cash and cash equivalents

36

- 39

Cash and cash equivalents at beginning of year

22

55

Inflow/(outflow) in cash and cash equivalents

36

- 39

Exchange gains/(losses) on cash and cash equivalents

- 3

6

Cash and cash equivalents at end of period

54

22

Net cash from operating activities increased by €47 million to an inflow of €380 million in 2014 in comparison with an inflow of €333 million in 2013. The movement is primarily a result of the increase in adjusted EBITDA. The exceptional and non-recurring items included in 2014 are mostly of a non-cash nature and, consequently, did not materially affect net cash from operating activities.

Net cash used in investing activities increased by 230% to an outflow of €374 million in 2014 in comparison with an outflow of €113 million in 2013. The movement is primarily a result of the higher level of acquisitions, as well as higher capital expenditure for store network expansion, store maintenance and the implementation of the new TechCenters and global IT projects.

Net cash used in financing activities is an inflow of €29 million in 2014 as some additional borrowing was needed to finance the acquisitions this year. In 2013 net cash used in financing acitivities was an outflow of €259 million, as most of the free cash flow generated by the company could be used to lower the level of borrowings as the acquisition level in 2013 was lower.