The cash flow statement explains the changes in cash and cash equivalents. It is prepared via a comparison of the balance sheets at 1 January and 31 December. Changes that do not involve cash flows, such as changes in exchange rates, amortization, depreciation, impairment losses, and transfers to other balance sheet items, are eliminated. Changes in working capital due to the acquisition or disposal of consolidated companies are included under Investing activities.
The consolidated cash flow statement includes an analysis of all cash flows in total, including continuing and discontinued operations. For amounts related to discontinued operations split by activities and a reconciliation of results from continuing operations to total, see Note 3 Change in the scope of consolidation.
Most of the changes can be traced back to the detailed statements of changes for the balance sheet items concerned. For those balance sheet items for which no detailed statement of changes is included, the table below shows the link between the change according to the balance sheet and the change according to the cash flow statement.
|
|
2024 |
|
2023 |
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|---|---|---|---|---|---|---|---|---|
Operating working capital |
|
|
|
|
||||
Balance at 1 January |
|
3,769 |
|
2,432 |
||||
Balance at 31 December1 |
|
3,603 |
|
3,769 |
||||
Balance sheet change |
|
(166) |
|
1,337 |
||||
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
||||
- Exchange differences |
|
(4) |
|
47 |
||||
- Changes in consolidation (including acquisitions and disposals) |
|
122 |
|
(1,899) |
||||
- Transfers/non-cash value adjustments1 |
|
7 |
|
251 |
||||
Total change in operating working capital according to the cash flow statement |
|
(41) |
|
(264) |
||||
|
||||||||
In 2024, the operating working capital continuing operations was €3,603 million (2023: €3,769 million), which amounts to 27.7% of annualized fourth-quarter net sales (2023: 30.3%).
The cash flow relating to acquisitions (-€5 million) is limited in 2024. The disposal of businesses of €42 million consists of the cash-related part of the consideration (€118 million) minus the cash in the divested companies (€21 million) and the divestment-related costs and tax settlements (€55 million). See also Note 3 Change in the scope of consolidation.
The proceeds from disposals of other financial assets of €397 million mainly relate to the sale of 386,732 shares and 102,000 share certificates of Robertet S.A. in November 2024. See also Note 11 Other non-current assets.
In the repurchase of shares of €706 million, an amount of €654 million was related to the statutory buy-out of 6.7 million non-tendered shares of DSM B.V. In 2024, the liability including interest of €5 million was settled by paying the fair share price plus statutory interest minus distributions (€572 million) to shareholders who transferred 5.9 million of their unencumbered right to the shares to the Company, and by paying €82 million into consignment with the Dutch consignment office for the remaining 0.8 million shares not offered within the transfer period. The unencumbered title to these shares transferred to the Company by operation of law.