28. Notes to the Cashflow Statement The cashflow statement has been prepared in accordance with IAS 7 (revised); it is subdivided into cashflows from operating, investing and financing activities. The indirect method is used to determine the cashflow from operating activities. The gross  cashflow, derived from earnings before taxes on income and adjusted for non-cash income and expense items, is determined within the cashflow from operating activities. In financial year 2004, the gross cashflow increased perceptibly from € 280.6 million to € 385.6 million due to a significant improvement in profit. The cash from operating activities,  including the change in short term balance sheet items, amounts to € 285.7 million (previous year: € 165.0 million). Payments for income taxes in the financial year totaled € 99.0 million (previous year. € 89.3 million), of which the amount of € 22.4 million  concerns subsequent payments for previous years.  Cash used for investing activities totalling € 29.2 million was  fully financed by the cash provided by operating activities. The remaining free cashflow amounts to € 256.6 million (previous year: € 107.4 million or € 137.7 million before acquisitions). Within financing activities, the total amount of € 79.2 million  (previous year: € 20.9 million) was spent on the buyback of own shares during the financial year. The dividend resolved for  financial year 2003 to the amount € 11.2 million (previous year: € 8.7 million) was paid. The total amount of € 23.2 million  (previous year: € 9.5 million) was obtained from the conversion of stock options issued to management. Taking the cash used for financing activities totalling € 70.8  million (previous year: € 23.4 million) and the currency-related change in cash and cash equivalents into account, there is a marked increase in liquid funds of € 178.8 million (previous year: € 77.0 million). The company’s liquid funds thus total € 369.3  million (previous year: € 190.6 million) as of the balance sheet date.  29. Contingencies 30. Other Financial Obligations Foreword | Mission | Management Report | Share | Marketing |  Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management 89 From license, promotion and advertising contracts: 2005 (2004) 33.4 31.6 2006 - 2009 (2005 - 2008) 53.4 62.0 From rental and lease contracts: 2005 (2004) 29.5 22.3 2006 - 2009 (2005 - 2008) 90.8 63.2  as from 2010 (as from 2009) 48.4 31.1 Dec. 31, 2004 Dec. 31, 2003 € million € million Liabilities on bills discounted 1.3 1.5 Guarantees and warranties - - Dec. 31, 2004 Dec. 31, 2003 € million € million The Company’s other financial obligations relate to license,  promotion and advertising contracts. In addition, the company leases and rents offices, warehouses, facilities, a car park and also sales premises for its own retail business. The residual  term of the lease contract for the logistics centre in Germany (operative leasing) is 6 years. The term of rental contracts  concerning the retail business is between 5 and 15 years. The terms of all other rental and lease contracts are between 1 and 5 years. As of the balance sheet date, the Company’s financial obligations were as follows: