[39] 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 totaled €527.1 million, which was lower than the prior-year figure of €846.3 million, primarily because of the decline in EBIT. The payment of taxes totaling minus €216.8 million (2019: minus €191.6 million), resulting mainly from the Company’s strong profitability in 2019, was also a factor. The outflow of minus €150.3 million represented by the change in net working capital was on a par with the prior-year figure (minus €146.8 million), while the effects from the capacity and structural program recognized in profit or loss were largely cash-neutral.

The net cash used for investing activities amounted to minus €406.3 million in the reporting period (2019: minus €277.9 million). Within this figure, cash payments for capital expenditure on production facilities, product development, and purchased property, plant, and equipment amounted to minus €283.8 million, which was slightly down on the prior year (2019: minus €287.4 million). In addition, cash payments for the acquisition of subsidiaries and other entities totaled minus €133.5 million (after deduction of cash and cash equivalents acquired); these predominantly comprised a net cash payment of minus €89.3 million for the acquisition of DAI and payments totaling minus €22.2 million for the acquisition of a minority interest in Quicktron.

In line with the interim guidance, free cash flow – the sum of cash flow from operating activities and investing activities – was well below the prior-year figure at €120.9 million (2019: €568.4 million). However, it did recover significantly over the course of 2020.

Net cash used for financing activities fell sharply to minus €4.5 million (2019: minus €534.9 million), mainly due to the net cash of €813.3 million provided by the capital increase and the issuance of the new corporate bond with a nominal amount of €500.0 million. These inflows more than compensated for the net cash outflow related to the early repayment of the outstanding liability under the acquisition facilities agreement (AFA), the early repayment of a fixed-interest loan taken out in 2019, the partial repayment of the promissory notes, and the payments to reduce the revolving credit facility. Overall, financial debt taken on during the reporting year amounted to €3,650.5 million (2019: €2,940.1 million); repayments were much higher at minus €4,260.0 million (2019: minus €3,166.2 million). Payments made for interest portions and principal portions under procurement leases totaled minus €133.3 million (2019: minus €126.5 million). Current interest payments declined to minus €33.8 million thanks to the further optimization of the interest on financial debt (2019: minus €36.7 million). The payment of a dividend to the shareholders of KION GROUP AG had resulted in an outflow of funds of minus €141.5 million in 2019. The corresponding payment in 2020 amounted to minus €4.7 million, which equates to a dividend of €0.04 per share.

Additional information on the changes to liabilities arising from financing activities can be found in the following tables:

Negative currency effects in relation to cash and cash equivalents amounted to minus €13.1 million (2019: positive currency effects of €2.4 million). Overall, cash and cash equivalents went up from €211.2 million as at December 31, 2019 to €314.4 million as at December 31, 2020.