Consolidated statement of cash flows
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.
In 2016, the KION Group’s segment structure was reorganised and external financial reporting was then adjusted in line with the new structure. Henceforward, operational responsibility for leased assets, rental assets and the financial services business will be pooled in the Industrial Trucks & Services segment. This has also given rise to a change in reporting in relation to cash flow from operating activities and cash flow from investing activities. The ‘Change in rental assets (excluding depreciation)’ item has now been aggregated with another item to become ‘Change in rental assets (excluding depreciation) and liabilities for finance leases’ and is reported under cash flow from operating activities. The prior-year figures have also been restated as part of this reporting modification. As a result, cash flow from investing activities in 2015 has improved by €222.9 million, while cash flow from operating activities has decreased by the same amount.
The KION Group’s net cash provided by operating activities totalled €414.3 million, which was below the prior-year figure (2015: €455.0 million). The rise in the contributions to operating profit and other payment receipts was offset, in particular, by the increase in rental assets (net), higher working capital, the greater volume of leasing and higher tax payments. In addition to the cash transaction costs incurred by KION GROUP AG, Dematic itself also incurred pre-contract expenses in connection with the expected acquisition by the KION Group amounting to €63.1 million that was then reflected in Dematic cash flows after the acquisition date. These payments by Dematic are included in the cash flow from operating activities of the KION Group under ‘Change in other operating assets / liabilities’.
Net cash used for investing activities amounted to €2,264.3 million (2015: net cash used of €122.3 million). Cash payments for development (R&D) and for property, plant and equipment amounted to €166.7 million (2015: €142.6 million). Cash payments for acquisitions came to a total of €2,118.7 million. The acquisition of Dematic led to a net cash outflow of €2,091.1 million; the other acquisitions in the reporting year resulted in payments of €27.6 million, of which €23.2 million related to the acquisition of Retrotech Inc. Cash payments for acquisitions in the prior-year period (€84.9 million) had largely been in connection with the acquisition of Egemin Automation.
Free cash flow – the sum of cash flow from operating activities and investing activities – declined by €2,182.8 million in the reporting period to minus €1,850.0 million (2015: plus €332.7 million) as a consequence of the acquisitions.
Cash flow from financing activities came to a significant positive balance of €2,026.3 million in 2016 (2015: minus €329.1 million), caused by the refinancing of the acquisition of Dematic. The net drawdown of financial debt in the year under review amounted to €1,744.0 million (2015: net repayment of €224.0 million). While financial debt taken on during the year came to €4,362.5 million, repayments totalled €2,618.5 million. Net cash of €68.3 million was also used for regular interest payments (2015: net cash used of €43.3 million). The cost of obtaining financing in the year under review amounted to €23.2 million (2015: €5.6 million). The distribution of a dividend of €0.77 per share (2015: €0.55 per share) resulted in a cash outflow of €76.0 million (2015: €54.3 million), while the acquisition of 50,000 treasury shares required an outflow of €2.8 million.
Supported by favourable currency effects of €0.2 million (2015: €0.5 million), this resulted overall in a substantial rise in cash and cash equivalents, which advanced from €103.1 million as at the end of 2015 to €279.6 million as at 31 December 2016. > TABLE 042