Liquidity Analysis
Key figures
2017 2018 Δ %
in € million
Cash flow from
operating activities 302.3 296.2 - 2
Cash flow from
investing activities ( 325.1) (195.7) 40
Cash flow from
financing activities ( 67.4) (135.9) - 102
In the course of 2018, the level of cash and cash equivalents
fell by € 36.0 million to € 239.7 million (previous year:
€ 275.7 million). Cash inflow from operating activities was
€ 296.2 million and thus almost on a par with the previous
year (€ 302.3 million), despite the lower Group net income.
This is primarily due to the fact that earnings in the pre-
vious year were favored among other things by non-cash oneoff
earnings in the area of income tax. In the change of
net working capital positions, the effects from a relatively low
increase in trade accounts receivable compared to the pre-
vious year were offset by a slower increase in trade accounts
payable.
Compared to 2017, cash flow from investment activities
decreased significantly to € 195.7 million (previous year:
€ 325.1 million). Investments in intangible assets and property,
plant and equipment were at the previous year’s level,
and also included larger technology acquisitions. No new
business activities were acquired in the past fiscal year.
The cash flow for acquisitions had reached € 141 million in
2017.
The cash flow from financing activities amounted to
€ 135.9 million in 2018 (previous year: € 67.4 million). The
current debt outflows concerned the scheduled repayment
of a promissory note tranche (€ 64.0 million) and thus were
roughly the same as in the previous year. In 2017, in
addition
to the repayment of a promissory note tranche of
€ 32.0 million, debt resulting from the PolyAd activities
was also reduced. In the 2018 fiscal year, ALTANA AG paid
a dividend amounting to € 80 million, after no dividend
was paid in the previous year.
Value Management
Key figures value management
2017 2018
in € million
Operating capital (annual average) 2,509.7 2,762.7
Operating earnings 284.8 258.6
Return on capital employed (ROCE) 11.3 % 9.4 %
Weighted average cost of capital 8.0 % 8.0 %
ALTANA
Value Added (relative AVA) 3.3 % 1.4 %
ALTANA
Value Added (absolute AVA) 84.0 37.6
ALTANA determines the change in the company’s value via
the key figure ALTANA Value Added (AVA), whose calculation
is explained in the “Group Basics” section. In 2018, a
positive contribution was made to our company’s value
again, which, however, was lower than in 2017 and was
below our expectations.
The decline in earnings due to material costs is reflected
in lower operating earnings, which at € 258.6 million did
not reach the very good level of the previous year (€ 284.8
million). At the same time, the Group’s average capital
employed rose to € 2,762.7 million in 2018 (previous year:
€ 2,509.7 million). This increase in capital largely resulted
from the fact that company and technology acquisitions made
in 2017 were considered in the financial statements for
64 Business Development