Henkel Annual Report 2019 99

63
Net financial position
The Company in million euros

Shares and bonds

– 2,895 2,471 – 817 – 50 – 603 1 – 151 2 – 2,045
Corporate governance

Combined management report

Fundamental principles
of the Group

Economic report

Henkel AG & Co. KGaA

At Free cash Dividends Allocations to Payments for Miscellaneous At
(condensed version December 31, flow paid pension funds acquisitions December 31,
according to the German 2018 2019
Commercial Code [HGB]) 1 Including purchase of non-controlling interests with no change of existing control.
2 Primarily foreign exchange effects.
Risks and opportunities report

Forecast
Consolidated financial statements
Further information
Effective December 31, 2019, our net financial position 1 Financial position
amounted to – 2,045 million euros (December 31, 2018: Cash flow from operating activities in fiscal 2019 came in at € – 2,045 m
– 2,895 million euros). The change compared to the end of the 3,241 million euros, representing an increase versus the previ- net financial position.
previous year was primarily due to the strong free cash flow. ous year (2,698 million euros). While operating profit decreased
slightly year on year, amortization / depreciation was higher –
64
Net financial position 2015 to 2019 mainly due to first-time application of IFRS 16. The development
of inventories and trade accounts receivable had a positive
in million euros
effect on cash flow from operating activities in the year under
2015 335
review. In the previous year, the effect had been negative.
2016 – 2,301
2017 – 3,222
Year on year, the ratio of net working capital ² to sales improved
2018 – 2,895
by 1.2 percentage points to 3.9 percent (prior-year level:
2019 – 2,045
5.1 percent).

1 The net financial position is defined as cash and cash equivalents plus readily 2 Inventories plus payments on account, receivables from suppliers and trade
monetizable securities and time deposits and financial collateral provided, less accounts receivable, less trade accounts payable, liabilities to customers, and
borrowings, plus positive and minus negative fair values of derivative financial current sales provisions.
instruments.