27. Notes to the Statement of Cash Flows

27.1. Cash Flows from Operating Activities

The net cash of €2,376 million (previous year: €2,361 million) provided by operating activities comprises the cash surplus from operating activities and reflects the changes in working capital and other noncash transactions.

The €15 million (0.6%) year-over-year increase in net cash provided by operating activities was chiefly the result of lower cash outflows from working capital than in the previous year. This compensated for a decline in EBIT by €228 million and higher income tax payments (€64 million).

27.2. Cash Flows from Investing Activities

Net cash outflow for investing activities in 2018 amounted to €346 million (previous year: €747 million).

These mainly included cash outflows for additions to property, plant, equipment and intangible assets of €707 million (previous year: €518 million). The cash inflows (previous year: outflows) from other current financial assets had the opposite effect. These mainly comprised cash inflows (previous year: outflows) from short-term bank deposits of €265 million that were invested in the previous year.

The sale of the U.S. polycarbonate sheet business to Plaskolite LLC, Columbus (United States), generated proceeds from divestitures of €62 million. In 2017, proceeds from divestitures were generated from the sale of the U.S. polyurethane spray foam systems business to Accella Polyurethane Systems LLC, Maryland Heights (United States).

27.3. Cash Flows from Financing Activities

In 2018, there was a net cash outflow of €2,402 million (previous year: €634 million) for financing activities. Net loan repayments amounted to €582 million (previous year: €86 million).

In the course of the share buy-back program, Covestro AG paid €1,313 million to acquire own shares in 2018. The €8 million in treasury shares issued relates to shares issued to employees as part of the Covestment stock participation program.

In April 2018, dividends totaling €436 million were paid to Covestro AG stockholders.

The interest paid totaling €74 million (previous year: €131 million) reflected in cash flows from financing activities relates mainly to forward exchange contracts used to hedge foreign currency risks of €43 million (previous year: €79 million), bonds of €14 million (previous year: €23 million), leasing liabilities of €14 million (previous year: €16 million), and liabilities to banks of €1 million (previous year: €6 million).