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 2022. Net cash flow totaled €438.8 million in 2022 (2021: €760.8 million).
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€ million |
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2022 |
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2021 |
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Change in % |
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Cash flow from operating activities (gross cash flow) |
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1,125.5 |
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1,064.4 |
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5.7 |
Cash flow from long-term investing activities before securities |
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-686.7 |
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-303.6 |
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>100 |
Net cash flow |
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438.8 |
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760.8 |
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-42.3 |
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
€ million
Gross Cash Flow
In 2022, cash flow from operating activities (gross cash flow) totaled €1.13 billion (2021: €1.06 billion). Net income for the year amounting to €1.28 billion (2021: €827.8 million) improved gross cash flow year over year. The change in working capital was €- 72.0 million (2021: €- 3.7 million). Higher raw-material costs resulted, in particular, in increased inventories. The depreciation and amortization of €402.1 million (2021: €404.2 million) included in net income for the period had a positive impact on cash flow from operating activities. Conversely, the profit of €200.9 million (2021: €62.4 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)
€ million
Cash Flow from Long-Term Investing Activities
The Group’s investment projects are the key factor influencing cash flow from long-term investing activities. In 2022, cash payments of €- 61.7 million for capital expenditures were significantly higher year over year (2021: €- 21.6 million). More than half of the capital expenditures were made in Germany. The acquisition of SICO Performance Material (Shandong) Co., Ltd., China involved capital expenditures (less acquired cash) of €135.8 million. Cash flow from long-term investing activities amounted to €- 86.7 million in 2022 (2021: €- 03.6 million).
Cash Flow from Long-Term Investing Activities before Securities
€ million
Cash Flow from Financing Activities
Cash flow from financing activities totaled €- 58.5 million in the reporting year (2021: €- 53.9 million). It included the repayment of financing liabilities of €331.2 million (2021: €14.5 million) and new financing liabilities of €315.5 million (2021: €2.4 million). Wacker Chemie AG’s dividend payment of €- 97.4 million led to a cash outflow in the second quarter. Repayments of lease liabilities amounted to €- 6.2 million (2021: €- 1.4 million).
Cash and Cash Equivalents
Cash and cash equivalents decreased to €894.7 million (2021: €926.6 million). Liquidity in the form of cash and cash equivalents and noncurrent and current securities was on par with the previous year at €1.96 billion (2021: €1.98 billion).
WACKER Reports Net Financial Assets
WACKER defines net financial debt/assets 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 €409.2 million as of December 31, 2022 (Dec. 31, 2021: €546.5 million).
Aside from the financing liabilities disclosed in the report on net assets, WACKER has at its disposal an adequate amount (around €600 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
€ million
