Consolidated Financial Statements >
Directors’ Report
86
| 2012 annual report prysmian group
Net cash flow provided by operating activities (before changes
in net working capital) amounted to Euro 545 million at the
end of 2012.
Cash flow also benefited from the reduction of Euro 75 million
in net working capital described earlier. Therefore, after
deducting Euro 74 million in tax payments, net cash flow
from operating activities in the period was a positive Euro 546
million.
Net cash flow used for acquisitions came to Euro 86 million,
of which Euro 9 million for the purchase of the remaining
Draka shares under the squeeze-out procedure, Euro 25 million
for the purchase of shares in both Telcon Fios e Cabos para
Telecomuniçaoes S.A. and Draktel Optical Fibre S.A., Euro 51
million for the purchase of shares in Global Marine Systems
Energy Ltd, and Euro 1 million for the Neva Cables Ltd share
purchase.
Net operating investments in 2012 amounted to Euro 141
million and mainly refer to expansion of production capacity
for high voltage cables in Russia, China and France, for
submarine cables in Italy and Finland, to the investment in the
Telecom segment in Australia in connection with the long-
term project to produce cables using “ribbon” technology and
lastly to the increase in optical fibre production capacity in
Brazil.
Around 58% of total investment expenditure related to
projects to increase production capacity, while some 16% of
the total went on projects to improve industrial efficiency.
About 14% of the total related to structural work on buildings
or entire production lines for compliance with the latest
regulations, while the remaining 12% referred to investments
in information technology.
Dividends paid out in 2012 amounted to Euro 45 million.
(1)
This does not include cash flow relating to “Financial assets held for trading” and non-instrumental “Available-for-sale financial assets”, classified in the net financial
position.
(in millions of Euro)
31 December 2012
31 December 2011
Change 31 December 2010
EBITDA
546
269
277
365
Changes in provisions (including employee benefit obligations)
13
200
(187)
(17)
Inventory step-up
-
14
(14)
-
(Gains)/losses on disposal of property, plant and equipment,
intangible assets and non-current assets
(14)
(2)
(12)
-
Net cash flow provided by operating activities (before
changes in net working capital)
545
481
64
348
Changes in net working capital
75
183
(108)
(6)
Taxes paid
(74)
(97)
23
(59)
Net cash flow provided/(used) by operating activities
546
567
(21)
283
Acquisitions
(86)
(419)
333
(21)
Net cash flow used in operational investing activities
(141)
(145)
4
(95)
Net cash flow provided by financial investing activities
(1)
8
4
4
5
Free cash flow (unlevered)
327
7
320
172
Net finance costs
(129)
(130)
1
(52)
Free cash flow (levered)
198
(123)
321
120
Increases in share capital and other changes in equity
1
1
-
13
Dividend distribution
(45)
(37)
(8)
(75)
Net cash flow provided/(used) in the year
154
(159)
313
58
Opening net financial position
(1,064)
(459)
(605)
(474)
Net cash flow provided/(used) in the year
154
(159)
313
58
Other changes
(8)
(446)
438
(43)
Closing net financial position
(918)
(1,064)
146
(459)
STATEMENT OF CASH FLOWS
