[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 declined to €318.1 million as at the reporting date (December 31, 2021: €483.0 million). In addition, an amount of €14.1 million has been recognized for restricted cash under assets classified as held for sale. Taking into account the credit facility of €1,271.1 million that was still freely available (December 31, 2021: €1,000.0 million), the unrestricted cash and cash equivalents available to the KION Group at the end of 2022 amounted to €1,577.3 million (December 31, 2021: €1,473.7 million).

Cash flow from operating activities amounted to a net cash outflow of minus €345.9 million in 2022, which was down sharply compared with the net cash provided by operating activities of €881.7 million in the previous year. The main factors in this decrease were the fall in earnings and the considerable rise in net working capital of €804.5 million (2021: €201.9 million). The latter was primarily due to the much lower level of trade payables at the end of the year and the volume-related growth of receivables from customers. The build-up of unfinished trucks in the Industrial Trucks & Services segment, which was caused by the supply chain disruptions, had been reduced significantly by the end of 2022 thanks to the measures introduced during the year to strengthen both the supplier network and production processes. However, inventories of materials and supplies – particularly steel and electronics – were increased in order to counter procurement risks.

Net cash used for investing activities amounted to minus €369.7 million and was therefore higher than in the previous year (2021: minus €337.8 million). Within this total, cash payments for capital expenditure on production facilities, product development, and purchased property, plant, and equipment rose to minus €382.7 million (2021: minus €333.8 million). Net payments for acquisitions had amounted to minus €17.0 million in 2021; the equivalent figure for the year under review was minus €4.9 million.

Free cash flow – the sum of cash flow from operating activities and investing activities – was significantly negative at minus €715.6 million (2021: positive cash flow of €543.8 million).

Net cash provided by financing activities amounted to €562.8 million in 2022 (2021: net cash used of minus €386.1 million). The net addition to financial debt of €942.4 million (2021: net repayment of minus €148.8 million) mainly related to the commercial paper program and to the drawdown and subsequent repayment of amounts under the revolving credit facility (RCF) during the reporting year. Furthermore, new bank loans were arranged during the reporting year and, as scheduled, the fixed-rate tranche of the promissory note was repaid. There was a moderate increase in payments made for interest portions and principal portions under procurement leases to minus €151.7 million (2021: minus €145.1 million). Current interest payments also went up, rising to minus €32.6 million on the back of higher financial debt (2021: minus €29.5 million). The payment of a dividend to the shareholders of KION GROUP AG resulted in an outflow of funds of minus €196.7 million, which equates to €1.50 per share.

Currency effects in relation to cash and cash equivalents amounted to €2.1 million (2021: €10.8 million).

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