At 31 January €m 2004 2003 Net income 83.5 69.7 Depreciation of tangible and intangible fixed assets 59.8 66.4 Goodwill amortisation 6.0 5.7 Provisions for risks and contingencies (13.3) 0.4 Other items 15.7 (9.3) Profits and losses on sales of fixed assets (1.8) 0.1 Funds generated from operations 149.9 133.0 nnnnnnnn nnnnnnnn (Increase) decrease in inventories 10.1 4.6 (Increase) decrease in accounts receivable (5.2) 11.1 Increase (decrease) in accounts payable 8.5 (23.2) Increase (decrease) in other payables and receivables (6.3) 3.7 Net change in lease debt and receivables (71.6) 7.9 Cash flow from operating activities (A) 85.4 137.1 nnnnnnnn nnnnnnnn Addition to tangible fixed assets (53.4) (47.1) Investments in intangible fixed assets (3.9) (2.7) Financial investments (11.0) (254.8) Sub-total investments (68.3) (304.6) Sales of fixed assets 6.5 1.0 Sales of financial assets - 1.1 Repayment of loans and advances granted - - Cash flow from investing activities (B) (61.8) (302.5) nnnnnnnn nnnnnnnn Share capital increase 0.7 - Dividends (30.3) - New long-term borrowings 214.1 152.0 Repayment of long-term borrowings (260.4) (4.1) Net change in other financial debts and accrued interest 4.4 4.6 Cash flow from financing activities (C) (71.5) 152.5 nnnnnnnn nnnnnnnn Effect of exchange rate changes on cash and cash equivalents (D) (1.5) (1.8) Net change in cash and cash equivalents  (A)+(B)+(C)+(D) (49.4) (14.7) nnnnnnnn nnnnnnnn Opening cash and cash equivalents 97.7 112.4 Closing cash and cash equivalents 48.3 97.7 nnnnnnnn nnnnnnnn The following notes form an integral part of the consolidated financial statements. CONSOLIDATED  CASH  FLOW  STATEMENT 13 Consolidated financial statements