Cash Flow
Net Cash Flow
WACKER’s long-term objective is to finance its capital expenditures primarily from its own cash flow. This target was clearly achieved in 2021. Net cash flow totaled €760.8 million in 2021 (2020: €697.7 million).
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€ million |
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2021 |
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2020 |
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Change in % |
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Cash flow from operating activities (gross cash flow) |
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1,064.4 |
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873.7 |
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21.8 |
Cash flow from long-term investing activities before securities |
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-303.6 |
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-176.0 |
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72.5 |
Net cash flow |
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760.8 |
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697.7 |
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9.0 |
Net cash flow is defined as the sum of cash flow from operating activities and cash flow from long-term investing activities (excluding securities).
Net Cash Flow
€ million
Gross Cash Flow
In 2021, cash flow from operating activities (gross cash flow) totaled €1.06 billion (2020: €873.7 million). Net income for the year amounting to €827.8 million (2020: €202.3 million) significantly improved gross cash flow year over year. The change in working capital was €-53.7 million (2020: €100.0 million). Cash flow from operating activities was increased by depreciation and amortization of €404.2 million (2020: €403.5 million) included in net income for the period. The payment of €250 million to pension trust assets and the €44.6 million in termination benefits paid in 2021 under the Shape the Future efficiency program both had a negative impact on gross cash flow.
Cash Flow from Operating Activities (Gross Cash Flow)
€ million
Cash Flow from Long-Term Investing Activities
The Group’s investment projects are the key factors influencing cash flow from long-term investing activities. In 2021, cash payments of €-321.3 million for capital expenditures were higher than the prior-year figure (2020: €-226.5 million). More than half of the capital expenditures were made in Germany. WACKER received a repayment of €46.8 million toward redemption of a strategic loan made to equity-accounted Dow Siloxane (Zhangjiagang) Co., Ltd. Cash flow from long-term investing activities amounted to €-303.6 million in 2021 (2020: €-176.0 million).
Cash Flow from Long-Term Investing Activities before Securities
€ million
Cash Flow from Financing Activities
Cash flow from financing activities totaled €-153.9 million in the reporting year (2020: €117.1 million). It reflects the net repayment of external financing liabilities in the amount of €-12.1 million (2020: €177.1 million). Wacker Chemie AG’s dividend payment of €-99.4 million led to a cash outflow in the second quarter. Repayments of lease liabilities amounted to €-31.4 million (2020: €-31.8 million).
Cash and Cash Equivalents
Cash and cash equivalents increased to €926.6 million (2020: €626.0 million). Liquidity from cash and from current and noncurrent securities rose markedly, from €1.34 billion to €1.98 billion.
WACKER Reports Net Financial Assets
WACKER defines net financial debt – or net financial assets, as the case may be – as the balance of gross financial debt (current and noncurrent financing liabilities) and existing noncurrent and current liquidity, consisting of securities, cash and cash equivalents. Net financial assets totaled €546.5 million as of December 31, 2021 (Dec. 31, 2020: net financial debt of €67.5 million).
The net financial assets were primarily attributable to cash inflows from operating activities.
Aside from the financing liabilities disclosed in the report on net assets, WACKER has at its disposal an adequate amount (more than €900 million) in unused lines of credit 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 engage in any off-balance-sheet financing.
Net Financial Assets/Net Financial Debt
€ million
