This note includes information about the Group’s cash flows from a capital expenditure perspective and from a performance perspective in general. It also includes information about non-cash transactions. Where more relevant for the understanding of a transaction, cash inflows and outflows are described in the notes of the respective assets or liabilities to which the cash flows relate. The same applies to non-cash transactions.

Net capital expenditure

The Group’s capital expenditure primarily relates to investments in own production, plant and equipment (PP&E capital expenditure, excluding filling machines) and to the manufacture and deployment of filling machines with customers under contracts accounted for as operating leases (filling machine capital expenditure).

Net capital expenditure is defined by the Group as capital expenditure less upfront cash. Upfront cash is defined as consideration received as an upfront payment for filling machines from customers. Net capital expenditure is not a defined performance measure in IFRS (see further note 9).

Management uses net capital expenditure as it better demonstrates how cash generative the business is. As the Group typically receives a portion of the total consideration for a filling machine as an upfront payment from the customer (see also note 20), the cash outflow relating to filling machines is generally lower than implied by the gross capital expenditure figure. Payments received for filling lines (including upfront payments) are included in cash flows from operating activities.

The following table reconciles capital expenditure to net capital expenditure.

(In € million)


Year ended
31 Dec. 2019


Year ended
31 Dec. 2018

PP&E (excluding filling machines)





Gross filling machines





Capital expenditure (gross)





Upfront cash (for filling machines)





Net capital expenditure





Free cash flow

Free cash flow is used by management to evaluate the performance of the Group. Free cash flow is defined by the Group as net cash from operating activities plus dividends received from the joint ventures less capital expenditure and payments of lease liabilities (finance lease liabilities before adoption of IFRS 16 Leases – see note 5.2). Free cash flow is not a defined performance measure in IFRS (see further note 9).

The following table reconciles net cash from operating activities to free cash flow.

(In € million)


Year ended
31 Dec. 2019


Year ended
31 Dec. 2018

Net cash from operating activities





Dividends received from joint ventures





Acquisition of PP&E and intangible assets





Payment of lease liabilities





Free cash flow





The increase in net cash from operating activities in the year ended 31 December 2019 compared to the prior period is mainly a result of lower interest payments since the refinancing transactions that took place in connection with the IPO in 2018. The Group also had payments in the comparative period presented as part of cash flows from operating activities relating to the refinancing transactions and the IPO.

Non-cash transactions

The Group has entered into lease contracts in the year ended 31 December 2019 and 31 December 2018 that are accounted for on-balance sheet (see notes 13 and 22). The initial recognition of a lease on the statement of the financial position is a non-cash transaction. The Group also introduced share-based payments plans and arrangements in the year ended 31 December 2019. The granting of instruments under these plans and arrangements are non-cash transactions (see note 31).

Other non-cash transactions for the year ended 31 December 2018 include the derecognition of capitalised transaction costs and original issue discount resulting from the early redemption of notes and repayment of term loans, the derecognition of derivative instruments that were related to the debt (see notes 22 and 23) and the conversion of shares (see note 24).

Cash outflows under lease contracts

The total cash outflow for the Group’s lease contracts for the year ended 31 December 2019 was €15.7 million (€15.9 million for the year ended 31 December 2018).