The net cash inflow from operating activities of €870 million (previous year: €997 million) reflects the operating surplus and also takes into account changes in working capital and noncash income and expenses.
The €127 million (12.7%) decrease in cash flows from operating activities compared with the previous year resulted primarily from a €9 million decline in EBITDA and a €330 million decline in funds freed up from working capital, which were partially offset by €164 million lower income tax payments. The change in working capital was predominantly driven by a rise in inventories, which was partially offset by lower trade accounts receivable.
Net cash outflow for investing activities in 2024 amounted to €423 million (previous year: €925 million).
This mainly related to cash outflows for additions to property, plant, equipment, and intangible assets of €781 million (previous year: €765 million). These were offset in particular by cash inflows from other current financial assets in the amount of €296 million (previous year: cash outflows of €305 million), which resulted primarily from net cash proceeds of €252 million from short-term bank deposits. There were also cash inflows from sales of property, plant, equipment and other assets of €76 million (previous year: €2 million), which resulted in particular from the sale of intangible assets amounting to €46 million.
The net cash outflow from financing activities amounted to €565 million in fiscal 2024 (previous year: €639 million). Net credit repayment amounted to €414 million (previous year: €417 million). Short-term borrowing and debt repayment were netted.
As in the previous year, no dividend was paid to Covestro AG shareholders in 2024.
The total interest payments of €150 million (previous year: €169 million) in the year 2024 presented in cash flows from financing activities were mainly attributable to bonds and liabilities to banks, forward exchange transactions to hedge foreign currency risk, and lease liabilities. In addition, capitalized interest amounting to €15 million (previous year: €12 million) was recognized together with the associated assets under cash outflows for additions to property, plant, equipment, and intangible assets in cash flows from investing activities.
The following table shows the reconciliation of the changes in liabilities from financing activities to the cash flows from financing activities reported in the statement of cash flows.
Starting in the 2024 reporting year, interest payments are presented as part of the cash changes in liabilities from financing activities. In addition, the carrying amounts of liabilities from accrued interest and miscellaneous other financial liabilities are reconciled. The prior-year presentation has been modified accordingly.
| Reconciliation of liabilities from financing activities in fiscal 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Carrying amounts Dec. 31, 2023 |
Cash changes1 | Noncash changes | Other3 | Carrying amounts Dec. 31, 2024 |
|||||
| Changes due to exchange rate move-ments | Changes in measure-ment | Divest-ments | Lease contracts | Other changes2 | |||||
| € million | € million | € million | € million | € million | € million | € million | € million | € million | |
| Bonds | 1,990 | (500) | – | – | 2 | 1,492 | |||
| Liabilities to banks | 657 | 202 | 11 | – | – | 870 | |||
| Lease liabilities | 743 | (185) | 22 | – | 126 | 30 | 736 | ||
| Receivables / liabilities from forward exchange contracts | (4) | (43) | – | 8 | – | – | 50 | 11 | |
| Other financial debt | 2 | 39 | – | – | – | 41 | |||
| Accrued interest on liabilities | 19 | (64) | – | – | 76 | (15) | 16 | ||
| Other miscellaneous financial liabilities4 | – | (3) | – | – | 3 | – | |||
| Total | 3,407 | (554) | 33 | 8 | – | 126 | 111 | 35 | 3,166 |
1 In addition to payments related to equity transactions, the difference compared with the statement of cash flows is mainly attributable to the interest payments shown. The interest payments shown in the statement of cash flows also include fees and other financial expenses for obtaining money and credit, as well as payments that do not relate to liabilities from financing activities.
2 In addition to accrued interest, these relate mainly to discount unwinding.
3 Includes cash changes outside cash flows from financing activities.
4 The differences of €24 million (previous year: €28 million) compared with the other financial liabilities presented in note 22 “Other Financial Liabilities” arise from items not related to financing activities.
| Reconciliation of liabilities from financing activities in fiscal 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Carrying amounts Dec. 31, 2022 |
Cash changes1 | Noncash changes | Other3 | Carrying amounts Dec. 31, 2023 |
|||||
| Changes due to exchange rate move-ments | Changes in measure-ment | Divest-ments | Lease contracts | Other changes2 | |||||
| € million | € million | € million | € million | € million | € million | € million | € million | ||
| Bonds | 1,988 | – | – | – | 2 | 1,990 | |||
| Liabilities to banks | 922 | (261) | (10) | (4) | 10 | 657 | |||
| Lease liabilities | 746 | (184) | (23) | – | 176 | 28 | 743 | ||
| Receivables / liabilities from forward exchange contracts | (10) | (61) | (1) | 81 | – | – | (13) | (4) | |
| Other financial debt | 1 | – | – | 4 | (3) | 2 | |||
| Accrued interest on liabilities | 20 | (67) | – | – | 78 | (12) | 19 | ||
| Other miscellaneous financial liabilities4 | – | (3) | – | – | 3 | – | |||
| Total | 3,667 | (576) | (34) | 81 | – | 176 | 118 | (25) | 3,407 |
1 In addition to payments related to equity transactions, the difference compared with the statement of cash flows is mainly attributable to the interest payments shown. The interest payments shown in the statement of cash flows also include fees and other financial expenses for obtaining money and credit, as well as payments that do not relate to liabilities from financing activities.
2 In addition to accrued interest, these relate mainly to discount unwinding.
3 Includes cash changes outside cash flows from financing activities.
4 The differences of €28 million (previous year: €37 million) compared with the other financial liabilities presented in note 22 “Other Financial Liabilities” arise from items not related to financing activities.