Cash flow

Overview of the DEUTZ Group’s financial position

€ million      
  2018 2017 Change (%)
Cash flow from operating activities 97.5 112.7 –13.5
Cash flow from investing activities –80.3 –27.3 194.1
Cash flow from financing activities –28.2 –32.6 –13.5
       
Cange in cash and cash equivalents –11.0 52.8 –120.8
Free cash flow 1) from continuing operations 14.5 82.5 –82.4
       
Cash and cash equivalents at 31 Dec 132.8 143.8 –7.6
Current and non-current interest-bearing financial debt at 31 Dec 39.1 45.6 –14.3
Net financial position 2) at 31 Dec 93.7 98.2 –4.6
1) Cash flow from operating activities, before payment of compensation for vested company pension rights, and from investing activities less interest expense (continuing operations).
2) Cash and cash equivalents less current and non-current interest-bearing financial debt.
 

The fall in cash flow from operating activities compared with the prior year was mainly due to the sharper increase in working capital in 2018.

By contrast, net cash used for investing activities was significantly higher than the level reported in 2017, in part because of the increase in payments related to capital spending on property, plant and equipment and on intangible assets and the granting of a loan to a supplier. In 2017, the disposal of the land occupied by our former Cologne-Deutz site had also had a very favourable impact on cash flow from investing activities.

The dividend payment of €18.1 million for the prior year, which was much higher than the amount paid out in 2017, and the subsidised loan of €11.2 million taken out by our Spanish subsidiary were the main factors affecting cash flow from financing activities. Free cash flow decreased significantly as a result of the decline in cash flow from operating activities and the sharp rise in net cash used for investing activities.

The change in cash flow described here caused cash and cash equivalents and the net financial position 1) to contract slightly in 2018.

1) Net financial position: cash and cash equivalents less current and non-current interest-bearing financial debt.