The consolidated statement of cash flows shows the changes in cash and cash equivalents 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.
The non-cash income of €142,530 thousand essentially comprises the income arising from the remeasurement of the remaining shares (30 per cent) in Linde Hydraulics at fair value (€108,692 thousand), the gain from the remeasurement of the existing, formerly equity-accounted investment in Linde Creighton Ltd. (€ 8,015 thousand) and the income arising on the remeasurement of purchase price obligations (€4,557 thousand).
Cash flow from operating activities increased by 7.0 per cent to €414,008 thousand in 2012 (2011: €386,810 thousand). The underlying reason for this improvement was that earnings before interest and taxes (EBIT) increased to €550,113 thousand in the reporting year (2011: €213,160 thousand).
The net cash provided by investing activities of €104,052 thousand (2011: outflow of €152,580 thousand) was mainly attributable to the sale of the 70 per cent controlling interest in Linde Hydraulics for a purchase consideration of €271,000 thousand including the options. Of the total purchase consideration, €262,870 thousand was paid in cash and €8,130 thousand was paid into a trust account. Cash payments for capital expenditures on non-current assets and property, plant and equipment amounted to €155,101 thousand (2011: €133,005 thousand). The net cash used for acquisitions totalled €9,703 thousand (2011: €32,916 thousand) and essentially related to the acquisition of the outstanding shares (51 per cent) in Linde Creighton Ltd., Basingstoke, United Kingdom. The proceeds from the disposal of non-current assets primarily related to disposals of assets no longer required for the Group's operating activities.
The net cash used for financing activities amounted to €330,130 thousand (2011: €114,715 thousand). Whereas the main factors affecting this cash flow in 2011 were the net inflows resulting from the issuance of a corporate bond (inflow of €500,000 thousand), the funds drawn down under a revolving SFA credit line (inflow of €132,691 thousand) and the repayment of SFA liabilities (outflow of €537,018 thousand), the net outflow of cash in 2012 was largely attributable to the repayment of SFA liabilities (outflow of €664,577 thousand) and the inflow of funds from the capital contribution made by Weichai Power for the approved capital increase (inflow of €467,000 thousand). Interest payments decreased by €17,743 thousand to €129,712 thousand as a result of the declined interest rates. In 2012 there were also receipts of €20,490 thousand from currency hedges (2011: payments of €13,714 thousand).
Following its consolidation for the first time in 2011, on 2 November 2012 the KION Group acquired the remaining shares (34 per cent) in Voltas Material Handling Private Limited, Pune, India, for a purchase consideration of €8,304 thousand. The cash used for this transaction is reported in cash flow from financing activities as required by IAS 7.
The amount of cash and cash equivalents for the year ended 31 December 2012 increased by a total of €188,906 thousand, €976 thousand of which was attributable to exchange-rate movements. This substantial increase was largely the result of the net cash provided by the sale of the 70 per cent controlling interest in Linde Hydraulics (inflow of €262,870 thousand). Cash and cash equivalents amounted to €562,357 thousand as at the reporting date.
