[38] 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.
Net cash provided by operating activities totalled €846.3 million, which was much higher than the prior-year figure of €765.5 million. This year-on-year improvement in cash flow from operating activities was due to the higher level of earnings and a reduction in spending on the ongoing renewal and expansion of the short-term rental fleet. Conversely, the growth of net working capital lowered cash flow from operating activities by €146.8 million (2018: by €54.3 million), primarily because of a decline in advance payments from customers in the project business.
Net cash used for investing activities amounted to €277.9 million, which was a higher amount than in the previous year (2018: €245.6 million). Within this figure, cash payments for capital expenditure on production facilities, product development and purchased property, plant and equipment rose to €287.4 million (2018: €258.5 million).
Free cash flow – the sum of cash flow from operating activities and investing activities – increased to €568.4 million (2018: €519.9 million).
Net cash used for financing activities came to €534.9 million (2018: €514.5 million), partly due to net repayments of financial debt amounting to €226.0 million. One new promissory note was issued, whereas a further amount was repaid towards the remaining long-term tranches under the AFA. Overall, financial debt taken on during the reporting period reached €2,940.1 million (2018: €1,811.7 million); repayments amounted to €3,166.2 million (2018: €2,042.6 million). Payments made for interest portions and principal portions under procurement leases totalled €126.5 million (2018: €114.0 million). Current interest payments decreased from €42.9 million in 2018 to €36.7 million in 2019 due to a year-on-year fall in average net debt. The payment of a dividend to the shareholders of KION GROUP AG in May 2019 resulted in an outflow of funds of €141.5 million (2018: €116.8 million). The acquisition of employee shares caused a cash outflow of €2.9 million (2018: €3.6 million).
Additional information for 2019 on the changes to liabilities arising from financing activities can be found in > TABLES 099 – 100.
|
|
|
Non-cash changes |
|
|
|---|---|---|---|---|---|
in € million |
01/01/2019 |
Cash flows |
Foreign exchange movement |
Other changes |
31/12/2019 |
Non-current financial liabilities |
1,818.7 |
–100.0 |
0.0 |
–1.9 |
1,716.8 |
Current financial liabilities |
226.5 |
–126.0 |
–4.5 |
7.7 |
103.7 |
Liabilities from accrued interest |
15.2 |
–34.2 |
–0.0 |
23.3 |
4.4 |
Derivative financial instruments for hedging purposes |
7.3 |
–2.5 |
– |
4.9 |
9.7 |
Liabilities from procurement leases |
421.2 |
–126.5 |
4.7 |
186.7 |
486.1 |
Total liabilities from financing activities |
2,489.0 |
–389.2 |
0.2 |
220.7 |
2,320.7 |
|
|
|
Non-cash changes |
|
|
|---|---|---|---|---|---|
in € million |
01/01/2018 |
Cash flows |
Foreign exchange movement |
Other changes |
31/12/2018 |
Non-current financial liabilities |
2,024.8 |
–200.0 |
8.0 |
–14.1 |
1,818.7 |
Current financial liabilities |
243.9 |
–30.9 |
–7.9 |
21.5 |
226.5 |
Liabilities from accrued interest |
14.5 |
–39.4 |
–0.0 |
40.2 |
15.2 |
Derivative financial instruments for hedging purposes |
1.9 |
–3.5 |
– |
8.9 |
7.3 |
Liabilities from procurement leases |
369.1 |
–114.0 |
–1.6 |
167.7 |
421.2 |
Total liabilities from financing activities |
2,654.2 |
–387.8 |
–1.5 |
224.1 |
2,489.0 |
Positive currency effects increased cash and cash equivalents by €2.4 million (2018: decrease of €3.2 million due to negative effects). Overall, cash and cash equivalents went up from €175.3 million as at 31 December 2018 to €211.2 million as at 31 December 2019.