Annual Report 2013

Economic report

Financial position

At 2,116 million euros, cash flowcash flow
Inflows and outflows of cash and cash equivalents divided within the statement of cash flows into cash flows from ordinary activities, from investing and acquisition activities, and from financing activities.
from operating activities
in the reporting period was below the very high level of the prior-year period (2,634 million euros). The increased EBIT as well as lower income taxes paid were offset by outflows for inventories and trade accounts receivable. Higher payments for variable employee remuneration additionally reduced this figure.

The cash outflow in the cash flowcash flow
Inflows and outflows of cash and cash equivalents divided within the statement of cash flows into cash flows from ordinary activities, from investing and acquisition activities, and from financing activities.
from investing activities
(–381 million euros) was 98 million euros less than the figure for the previous year. The change resulted from lower expenditures for acquisitions.

At –1,849 million euros, the cash outflow in cash flowcash flow
Inflows and outflows of cash and cash equivalents divided within the statement of cash flows into cash flows from ordinary activities, from investing and acquisition activities, and from financing activities.
from financing activities
was significantly less than the cash outflow in 2012 (–2,858 million euros), despite the redemption of our senior bond in June 2013 and higher dividend payments. Cash outflow in the prior-year period was mainly due to high investments in short-term securities and time deposits, recognized under other financing transactions. In 2013, we used the proceeds from the partial sale of these securities and time deposits to redeem our senior bond.

Cash and cash equivalents decreased compared to December 31, 2012 by 187 million euros to 1,051 million euros.

At 1,616 million euros, free cash flowfree cash flow
Cash flow actually available for acquisitions, dividend payments, the reduction of borrowings and contributions to pension funds.
decreased compared to the previous year (2,023 million euros) as a result of the lower cash flowcash flow
Inflows and outflows of cash and cash equivalents divided within the statement of cash flows into cash flows from ordinary activities, from investing and acquisition activities, and from financing activities.
from operating activities.