1.22 Accounting policies for the cash flow statement
The cash flow statement has been prepared using the indirect method. A distinction is made in the cash flow statement between cash flow from operating activities, investing activities and financing activities. Cash flow in foreign currencies is translated at the average monthly exchange rate throughout the financial year. Exchange differences for cash are shown separately in the cash flow statement. Receipts and expenditure for income tax and interest receipts and payments are recognised under cash flow from operating activities. Cash flow from acquisitions and disposal of financial interests (subsidiaries and participating interests) are recognised under cash flow from investing activities insofar as cash payments have taken place, minus cash assets also sold. Distributed dividends are recognised under cash flow from financing activities. Transactions involving no cash inflows or outflows, including leases and the deferred portion of the purchase price of participating interests (‘earn out’) are not included in the cash flow statement. Cash flows pertaining to borrowings and repayments as part of leases are presented as cash flow resulting from finance activities. Cash flows relating to lease interest are presented under financial expenses paid.
The management report as referred to in Part 9 of Book 2 of the Dutch Civil Code monitors the elements from the foreword to the historical summary inclusive. This version of the annual financial reporting of Hydratec Industries N.V. for the financial year ending on 31 December 2025 is not presented in the ESEF format as specified in the regulatory technical standards for ESEF (Delegated Regulation (EU) 2019/815). The set of ESEF reports can be downloaded at the download page.