The consolidated cash flow statement shows the changes in cash in the KION Group resulting from cash inflows and outflows in the year under review, broken down into cash flow from operating, investing and financing activities. The effects on cash from changes in exchange rates are shown separately. Cash flow from operating activities is presented using the indirect method in which the profit or loss for the year is adjusted for non-cash operating items.
In 2010, cash flow from operating activities surged by 74 per cent to €199,289 thousand (2009: €114,715 thousand). The underlying reason for this improvement was the increase in earnings before interest and tax (EBIT) to €34,636 thousand (2009: -€181,887 thousand).
The volume-related increase in working capital had the opposite effect on cash flow.
Because the Group increased its investing activities once more, the cash used for investing activities rose by 9 per cent in 2010 to €123,248 thousand (2009: net outflow of €112,864 thousand). The reason for this was the higher capital expenditures on non-current assets and property, plant and equipment, with total cash payments amounting to €123,462 thousand (2009: €108,202 thousand).
The proceeds from the disposal of assets primarily related to disposals of assets no longer required for the Group's operating activities. Cash payments for acquisitions amounting to €7,638 thousand (2009: €17,588 thousand) largely relate to the acquisition of additional shares in subsidiaries which were recognised as a purchase price liability in the Financials 2009 in accordance with IAS 32 and consequently reported in full in the consolidated financial statements.
Cash flow from financing activities amounted to a total net cash outflow of €290,210 thousand (2009: net cash inflow of €46,656 thousand). Whereas the main activities in 2009 were the borrowings against the existing line of credit (capex facility) and the senior facility agreement (SFA), the net outflow of funds in 2010 was largely due to the net repayment of loans (€95,705 thousand) and the repayment of other funding by individual Group companies (€42,133 thousand). Interest payments fell by €23,788 thousand to €134,716 thousand as a result of lower payments for interest-rate hedges.
In 2009, the KION Group acquired 60 per cent of the shares in KION Baoli (Jiangsu) Forklift Co. Ltd., China which resulted in cash payments for acquisitions amounting to €17,588 thousand, including transaction costs. In April 2010, a further 32 per cent of its shares were purchased for €9,535 thousand. The cash used for this transaction is reported in cash flows from financing activities as required by IAS 7.
Cash and cash equivalents decreased by a total of €210,524 thousand, of which €3,645 thousand was attributable to fluctuations in exchange rates for the year ended December 31, 2009. Cash and cash equivalents totalled €252,884 thousand as at the reporting date.
