Net Cash Flow

In 2016, WACKER complied with its long-term policy of financing its investments essentially from its own cash flow. Net cash flow totaled €400.6 million in 2016 (2015: €22.5 million), demonstrating that long-term investments are predominantly covered by cash flow from operating activities.

Net Cash Flow

Net cash flow is the sum of cash flow from operating activities (excluding the change in advance payments received) and cash flow from long-term investing activities (before securities), including finance leases.

Gross Cash Flow

Cash flow from operating activities (gross cash flow) totaled €736.6 million in 2016 (2015: €617.2 million), up 19 percent. Gross cash flow was negatively impacted by lower net income of €189.3 million (2015: €241.8 million) and by higher payments from working capital of € –57.3 million, after € –28.3 million a year earlier. On the other hand, gross cash flow was supported by lower tax payments of €79.5 million (2015: €218.7 million) and by a smaller reduction in advance payments received of €183.1 million (2015: €238.3 million). Depreciation of €735.2 million recognized in the net income for the period was substantially higher than the year before (2015: €575.4 million).

Cash Flow from Long-Term Investing Activities

The Group’s investment projects influence cash flow from long-term investing activities. In 2016, cash payments of €516.9 million for investments were substantially below the prior-year figure (2015: €815.6 million). This was due to the completion of investment spending on the polysilicon facilities at the Charleston production site. Acquisitions led to a cash outflow of €8.8 million relating to the purchase of large-scale fermentation facilities at the new León site in Spain.

Cash Flow from Financing Activities

Cash flow from financing activities totaled € –135.8 million in 2016 (2015: €57.9 million), reflecting primarily the refinancing of external financial liabilities amounting to around €250 million. WACKER took out new bilateral loans totaling US$ 250 million in March 2016 and repaid financial liabilities of €200 million on schedule in December 2016. In the second quarter of 2016, WACKER paid its shareholders a total dividend of €99.4 million. A year earlier, the proceeds from the IPO of Siltronic AG had added €361.9 million to cash flow from financing activities.

Cash and Cash Equivalents

Cash and cash equivalents decreased from €310.5 million to €283.5 million. However, liquidity from cash and from current and noncurrent securities rose from €381.4 million to €465.7 million.

Net Financial Debt Down

WACKER defines net financial debt – which is one of its financial indicators – as the balance of gross financial debt (current and noncurrent financial liabilities) and existing noncurrent and current liquidity, consisting of securities, cash and cash equivalents. Net financial debt amounted to €992.5 million as of December 31, 2016 (Dec. 31, 2015: €1.07 billion), down 8 percent year over year.

High cash inflows from operating activities led to an increase in liquidity, with financial liabilities remaining unchanged. Exchange-rate effects increased net financial debt by around €28 million.

Aside from the financial liabilities disclosed in the report on net assets, WACKER has at its disposal adequate unused loans for around €800 million, with maturities of over one year. Our existing lines of credit provide us with enough financial scope to secure the Group’s continued growth. The Group does not use any off-balance-sheet financing instruments.