[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 €311.8 million as at the reporting date (December 31, 2022: €318.1 million). In addition, cash of €8.9 million was recognized under assets classified as held for sale (December 31, 2022: €14.1 million).

Taking into account the credit facility of €1,364.7 million that was still freely available (December 31, 2022: €1,271.1 million), the unrestricted cash and cash equivalents available to the KION Group at the end of 2023 amounted to €1,674.4 million (December 31, 2022: €1,577.3 million).

In 2023, the KION Group’s cash flow from operating activities amounted to a substantial net cash inflow of €1,144.0 million thanks to the significant increase in operating profit and the improved management of working capital. By contrast, the prior-year figure – amounting to a net cash outflow of minus €345.9 million – had been adversely affected, in particular, by the considerable growth of net working capital as a result of the extensive supply chain disruptions.  Interest received and interest paid resulting from the lease and short-term rental businesses are also recognized in cash flow from operating activities.

Net cash used for investing activities amounted to minus €428.8 million and was therefore higher than in the previous year (2022: minus €369.7 million). Within this total, cash payments for capital expenditure on production facilities, product development, and purchased property, plant and equipment rose to minus €442.8 million (2022: minus €382.7 million).

As a result, free cash flow – the sum of cash flow from operating activities and investing activities – improved significantly to €715.2 million in the reporting year (2022: minus €715.6 million).

Net cash used for financing activities amounted to minus €721.7 million in 2023 (2022: net cash provided of €562.8 million), largely due to the repayment of financial debt on the back of the very good level of free cash flow. Additions to and repayments of financial debt mainly related to current additions and repayments under the commercial paper program and the syndicated revolving credit facility (RCF) as well as the repayment of bank loans. Payments made for interest portions and principal portions under procurement leases totaled minus €157.9 million (2022: minus €151.7 million). Due to higher market interest rates and the higher average level of debt during the year, current interest payments went up substantially to minus €69.7 million (2022: minus €32.6 million). The payment of a dividend to the shareholders of KION GROUP AG resulted in an outflow of funds of minus €24.9 million, which equates to €0.19 per share.

Currency effects in relation to cash and cash equivalents amounted to minus €5.0 million (2022: €2.1 million).

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