27.Notes to the Statement of Cash Flows

Cash Flows from Operating Activities

The net cash of €2,193 million (previous year: €1,234 million) provided by operating activities comprises the cash surplus from operating activities and reflects the changes in working capital and other noncash transactions.

Cash flows from operating activities were €959 million (77.7%) higher than in the prior year mainly due to an increase in by €1,566 million, which stood in contrast to €258 million higher cash outflows from working capital and a €391 million increase in income tax payments.

In November 2021, money market funds were transferred to Metzler Trust e.V., Frankfurt am Main (Germany), in the amount of €500 million. The transfer was a noncash transaction and therefore did not result in a cash outflow from operating activities.

Cash Flows from Investing Activities

Net cash outflow for investing activities in fiscal 2021 amounted to €1,995 million (previous year: €1,769 million).

This was primarily attributable to cash outflows for additions to property, plant, equipment, and intangible assets of €764 million (previous year: €704 million) and cash outflows for acquisitions less acquired cash of €1,469 million for the acquisition of the Resins & Functional Materials (RFM) business from Koninklijke DSM N.V., Heerlen (Netherlands). In addition, there were cash inflows from other current financial assets of €188 million (previous year: cash outflows of €1,089 million).

The transfer of money market funds amounting to €500 million to Metzler Trust e.V. was a noncash transaction and therefore did not result in a cash inflow from investing activities.

Cash Flows from Financing Activities

The net cash outflow for financing activities amounted to €965 million in fiscal 2021 (previous year: net cash inflow from financing activities of €1,204 million). Net credit repaid amounted to €624 million (previous year: net credit assumed of €1,056 million). Short-term debt assumed and repaid was netted.

In April 2021, dividend totaling €251 million was paid to Covestro AG shareholders (previous year: €219 million).

The interest paid totaling €81 million (previous year: €79 million) reflected in cash flows from financing activities relates mainly to lease liabilities of €26 million (previous year: €28 million), bonds of €23 million (previous year: €14 million), and forward exchange contracts used to hedge foreign currency risks of €20 million (previous year: €27 million).

Reconciliation of financial debt in 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes cashflow not realized

 

 

 

 

Carrying amounts Dec. 31, 2020

 

Changes cashflow realized

 

Changes due to exchange rate movements

 

Changes in measurement

 

Acquisitions (IFRS 3)

 

Lease contracts

 

Other changes

 

Carrying amounts Dec. 31, 2021

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Bonds

 

1,990

 

(500)

 

 

2

 

 

 

 

1,492

Liabilities to banks

 

227

 

19

 

 

 

29

 

 

 

275

Lease liabilities

 

672

 

(143)

 

31

 

 

4

 

197

 

 

761

Other financial liabilities

 

1

 

 

 

 

 

 

1

 

2

Financial debt1

 

2,890

 

(624)

 

31

 

2

 

33

 

197

 

1

 

2,530

1

Not including forward exchange contracts used to hedge currency risks.

Reconciliation of financial debt in 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes cashflow not realized

 

 

 

 

Carrying amounts Dec. 31, 2019

 

Changes cashflow realized

 

Changes due to exchange rate movements

 

Changes in measurement

 

Lease contracts

 

Other changes

 

Carrying amounts Dec. 31, 2020

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Bonds

 

997

 

991

 

 

2

 

 

 

 

1,990

Liabilities to banks

 

10

 

218

 

(1)

 

 

 

 

 

227

Lease liabilities

 

735

 

(152)

 

(35)

 

 

127

 

(3)

 

672

Other financial liabilities

 

 

(1)

 

 

 

 

 

2

 

1

Financial debt1

 

1,742

 

1,056

 

(36)

 

2

 

127

 

(1)

 

2,890

1

Not including forward exchange contracts used to hedge currency risks.

EBIT/earnings before interest and taxes
Income after income taxes plus financial result and income tax expense