29.Notes to the Statement of Cash Flows

Cash flows from operating activities

The net cash of €1,234 million (previous year: €1,383 million) provided by operating activities comprises the cash surplus from operating activities and reflects the changes in working capital and other noncash transactions.

The €149 million (–10.8%) year-over-year decrease in net cash provided by operating activities was chiefly the result of lower EBIT by €156 million. The outflows from working capital of €116 million (previous year: inflows of €77 million) were partially offset by lower income tax payments by €141 million.

Cash flows from investing activities

Net cash outflow for investing activities in fiscal 2020 amounted to €1,769 million (previous year: €838 million).

These mainly included cash outflows for additions to property, plant, equipment and intangible assets of €704 million (previous year: €910 million) and expenses for other current financial assets of €1,089 million (previous year: €1 million).

Cash flows from financing activities

The net cash inflow from financing activities amounted to €1,204 million in fiscal 2020 (previous year: net cash outflow from financing activities of €668 million). Net credit assumed amounted to €1,056 million (previous year: net credit repaid of €147 million). Short-term debt assumed and repaid was netted.

The issuance of 10,200,000 new, no-par value bearer shares resulted in net cash (after deduction of the costs of raising equity) of €444 million.

In August 2020, dividend totaling €219 million was paid to Covestro AG shareholders (previous year: €438 million).

The interest paid totaling €79 million (previous year: €86 million) reflected in cash flows from financing activities relates mainly to lease liabilities of €28 million (previous year: €33 million), forward exchange contracts used to hedge foreign currency risks of €27 million (previous year: €39 million), and bonds of €14 million (previous year: €14 million).