The consolidated statement of cash flows 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.
Cash flow from operating activities increased by 94 per cent to €386,810 thousand in 2011 (2010: €199,289 thousand). The underlying reason for this improvement was that earnings before interest and tax (EBIT) increased to €213,160 thousand in the reporting year (2010: €34,636 thousand).
The net cash used for investing activities in the KION Group increased by 24 per cent to €152,580 thousand in 2011 (2010: €123,248 thousand). Cash payments for capital expenditures on non-current assets and property, plant and equipment came to a total of €133,005 thousand (2010: €123,462 thousand). The net cash used for acquisitions totalled €32,916 thousand (2010: €7,638 thousand) and essentially related to the acquisition of the forklift truck and warehouse technology business of Voltas Limited, Mumbai, India (€16,141 thousand), the purchase of the remaining shares (51 per cent) in Linde Sterling Ltd., Basingstoke, United Kingdom (€9,795 thousand), the investment in Liftec's business in Russia (€4,903 thousand) and a smaller acquisition in Italy. The proceeds from the disposal of 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 €114,715 thousand (2010: €290,210 thousand). Whereas the main factors affecting this cash flow in 2010 were the net repayment of loans (€95,705 thousand) and the repayment of other funding by individual Group companies (€42,133 thousand), the net outflow of cash in 2011 was largely attributable to 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). Interest payments increased by €12,739 thousand to €147,455 thousand as a result of higher interest arising from financial liabilities and capital market liabilities. In 2011, there were also payments of €13,714 thousand for currency hedges (2010: €0).
The KION Group acquired an additional 5.34 per cent of the shares in KION Baoli (Jiangsu) Forklift Co. Ltd., China, for a total of €1,461 thousand in 2011. The cash used for this transaction is reported in cash flow from financing activities as required by IAS 7.
Cash and cash equivalents increased by a total of €120,567 thousand, €1,052 thousand of which was attributable to exchange-rate movements for the year ended 31 December 2011. This sharp increase stemmed largely from the funds drawn down under the revolving SFA credit line. Cash and cash equivalents totalled at €373,451 thousand as at the reporting date.
