Notes to the Consolidated Financial Statements of the Covestro Group – Other Information

27. Notes to the Statement of Cash Flows

27.1  Cash Flows from Operating Activities

The net cash inflow from operating activities of €970 million (previous year: €2,193 million) reflects the operating surplus and also takes into account changes in working capital and other noncash transactions.

The year-over-year decrease in cash flows from operating activities of €1,223 million (–55.8%) was mainly the result of a  €1,468 million decrease in EBITDA, which was partially offset by a €214 million reduction in cash outflows from working capital and an €8 million decrease in income tax payments.

27.2  Cash Flows from Investing Activities

Net cash outflow for investing activities in 2022 amounted to €477 million (previous year: €1,995 million).

This was primarily attributable to cash outflows for additions to property, plant, equipment and intangible assets of €832 million (previous year: €764 million) and cash outflows for noncurrent financial assets of €124 million. Cash inflows from other current financial assets in the amount of €374 million (previous year: €188 million) had an offsetting effect. The previous year was characterized, in particular, by cash outflows for acquisitions less cash acquired for the takeover of the RFM business in the amount of €1,469 million.

27.3  Cash Flows from Financing Activities

The net cash inflow from financing activities amounted to €64 million in 2022 (previous year: outflow of €965 million). Net borrowing amounted to €995 million (previous year: net credit repayment in the amount of €624 million). Short-term borrowing and debt repayment were netted.

There was an outflow of €150 million (previous year: €0 million) in 2022 for the acquisition of treasury shares as part of Covestro AG’s share buyback program. The issuance of treasury shares concerns shares (€8 million) (previous year: €2 million) issued to employees in the context of the Covestment share-based participation program.

In April 2022, a dividend totaling €651 million (previous year: €251 million) was paid to Covestro AG shareholders.

The interest paid totaling €131 million (previous year: €81 million) reflected in cash flows from financing activities relates mainly to forward exchange contracts used to hedge foreign currency risks of €63 million (previous year: €20 million), lease liabilities of €25 million (previous year: €26 million), and bonds of €23 million (previous year: €23 million).