(36) Notes to the Statement of Cash Flows

Explanation of the method used to calculate and present cash flows

For a general explanation, please see the comments on the statement of cash flows in the section headed “Accounting policies and valuation principles.”

Net cash flow provided by operating activities

The net cash inflow from operating activities in 2013 amounted to €641 million (2012: €838 million). Income before income taxes, which is the starting point for the statement of cash flows, was minus €239 million in 2013 (2012: €660 million) after depreciation, amortization and write-downs of €717 million (2012: €378 million). Income taxes paid in 2013 amounted to €41 million (2012: €109 million). The balance of other assets and liabilities showed a year-on-year decrease of €15 million (2012: €85 million).

Net cash used in investing activities

Purchases of intangible assets, property, plant and equipment led to a cash outflow of €624 million in 2013 (2012: €696 million). Cash inflows from financial assets mainly comprised proceeds from the sale of units in money market funds. A loss of €17 million for 2012 was assumed for Currenta GmbH & Co. OHG, Leverkusen, Germany, which is accounted for using the equity method, after offsetting against reserves. The acquisition of subsidiaries resulted in a cash outflow of €15 million (2012: €44 million) net of acquired cash and cash equivalents totaling €3 million (2012: €1 million) and retrospective purchase price adjustments. The cash inflows comprised €2 million (2012: €5 million) in interest received and €0 million (2012: €15 million) in receipts from other affiliates. The net cash outflow for investing activities was €342 million (2012: €674 million).

Net cash provided by (used in) financing activities

A net cash outflow of €260 million (2012: inflow of €46 million) was recorded for financing activities. This included a €58 million net outflow (2012: €241 million net inflow) from proceeds and repayments of borrowings, a €119 million (2012: €123 million) outflow for interest paid and other financial disbursements, and an €83 million (2012: €72 million) outflow for the dividend paid by LANXESS AG, including €83 million (2012: €71 million) to the stockholders of LANXESS AG. Details of unused credit facilities are given in Note [35].

Cash and cash equivalents

Cash and cash equivalents, which comprise cash, checks and bank balances, amounted to €427 million (2012: €386 million). In accordance with IAS 7, this item also includes securities with maturities of up to three months from the date of acquisition.