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 achieved in 2023. Net cash flow totaled €165.6 million in 2023 (2022: €438.8 million).
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€ million |
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2023 |
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2022 |
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Change in % |
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Cash flow from operating activities (gross cash flow) |
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936.3 |
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1,125.5 |
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-16.8 |
Cash flow from long-term investing activities before securities |
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-770.7 |
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-686.7 |
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12.2 |
Net cash flow |
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165.6 |
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438.8 |
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-62.3 |
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
Gross Cash Flow
In 2023, cash flow from operating activities (gross cash flow) totaled €936.3 million (2022: €1.13 billion). Net income for the year amounting to €327.3 million (2022: €1.28 billion) reduced gross cash flow year over year. The change in working capital was €224.5 million (2022: €-472.0 million). The decrease in inventories and receivables had a positive impact on cash flow. The depreciation and amortization of €418.7 million (2022: €402.1 million) included in net income for the period had a positive impact on cash flow from operating activities. Conversely, the profit of €49.3 million (2022: €200.9 million) from investments in joint ventures and associates that is included in net income for the year reduced cash flow from operating activities.
Cash Flow from Operating Activities (Gross Cash Flow)
Cash Flow from Operating Activities (Gross Cash Flow)
The Group’s investment projects are the key factor influencing cash flow from long-term investing activities. In 2023, cash payments of €640.2 million for capital expenditures were higher year over year (2022: €561.7 million). More than half of the capital expenditures were focused in Germany. The acquisition of ADL BioPharma S.L.U, León, Spain, involved capital expenditures (less acquired cash) of €110.4 million. Cash flow from long-term investing activities before securities amounted to €-770.7 million in the reporting period from January to December 2023 (2022: €-686.7 million).
Cash Flow from Long-Term Investing Activities before Securities
Cash Flow from Financing Activities
Cash flow from financing activities totaled €-688.1 million in the reporting year (2022: €-458.5 million). It included the repayment of financing liabilities of €454.0 million (2022: €331.2 million) and new financing liabilities of €407.2 million (2022: €315.5 million). Wacker Chemie AG’s dividend payment of €596.1 million led to a cash outflow in the second quarter. Repayments of lease liabilities amounted to €36.5 million (2022: €36.2 million).
Cash and Cash Equivalents
Cash and cash equivalents increased to €1.01 billion (2022: €894.7 million). Liquidity from cash and from noncurrent and current securities declined from €1.96 billion in 2022 to €1.42 billion.
WACKER Reports Low Net Financial Debt
WACKER defines net financial debt/net financial assets as the balance of gross financial debt (noncurrent and current financing liabilities) and existing noncurrent and current liquidity, consisting of securities, cash and cash equivalents. Net financial debt totaled €83.7 million as of December 31, 2023 (Dec. 31, 2022 net financial assets: €409.2 million).
Net Financial Assets / Net Financial Debt
Aside from the financing liabilities disclosed in the report on net assets, WACKER has at its disposal an adequate amount (around €750 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.
