[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.

Cash and cash equivalents increased to €483.0 million as at the reporting date (December 31, 2020: €314.4 million) thanks to the healthy increase in free cash flow. On October 4, 2021, KION GROUP AG entered into an agreement for a new syndicated revolving credit facility (RCF) with a reduced total volume of €1,000.0 million. The previous credit facility, which had a volume of €1,150.0 million, was terminated at the same time. Taking into account this credit facility of €1,000.0 million that was still freely available (December 31, 2020: €1,150.0 million), the unrestricted cash and cash equivalents available to the KION Group as at December 31, 2021 amounted to €1,473.7 million (December 31, 2020: €1,457.3 million).

Net cash provided by operating activities increased year on year to €881.7 million (2020: €527.1 million), mainly due to the significant improvement in operating profit. Within this total, the rise in net working capital of €201.9 million (2020: €150.3 million) reduced the level of cash flow from operating activities. The larger volume of business and the ongoing supply problems meant that inventories had increased by the end of the year, particularly in the ITS segment. In addition, more liquidity was tied up due to higher contract balances in the SCS segment’s project business. However, this was offset by a rise in trade payables.

Net cash used for investing activities amounted to minus €337.8 million in 2021, which was a lower amount than in the previous year (2020: minus €406.3 million). The figure for the prior-year period had included net payments of minus €89.3 million for the acquisition of UK software company Digital Applications International Limited (DAI), whereas acquisition-related net payments in the year under review came to just minus €17.0 million. This included a cash outflow totaling minus €11.9 million for the acquisition of the remaining shares in Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG and JETSCHKE GmbH; in addition, minus €2.0 million had been paid as an advance payment in December 2020. In addition, the KION Group paid minus €4.8 million for the acquisition of around 20 percent of the shares in ifesca GmbH. Cash payments for capital expenditure on production facilities, product development, and purchased property, plant, and equipment rose to minus €333.8 million (2020: minus €283.8 million).

Free cash flow – the sum of cash flow from operating activities and investing activities – came to €543.8 million. This represented a significant improvement when viewed in comparison with the previous year, which had been affected by acquisition items (2020: €120.9 million).

Net cash used for financing activities amounted to minus €386.1 million in the year under review (2020: minus €4.5 million). The significantly lower level of net cash used in 2020 had mainly been attributable to the capital increase of €813.3 million carried out in early December 2020, which was used to repay financial debt. In 2021, financial debt was taken on in a total amount of €623.9 million (2020: €3,650.5 million); repayments amounted to minus €772.7 million (2020: minus €4,260.0 million). Payments made for interest portions and principal portions under procurement leases totaled minus €145.1 million (2020: minus €133.3 million). Current interest payments declined to minus €29.5 million (2020: minus €33.8 million), not least thanks to lower financial debt and the improved funding conditions. The payment of a dividend to the shareholders of KION GROUP AG in May 2021 resulted in an outflow of funds of minus €53.7 million (2020: minus €4.7 million).

Currency effects in relation to cash and cash equivalents amounted to €10.8 million (2020: minus €13.1 million).

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