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Consolidated Financial Report |
DIRECTORS’ REPORT
2014 Annual Report
Prysmian Group
72
The net financial position of Euro 802 million at 31 December
2014 has decreased by Euro 3 million from Euro 805 million
at 31 December 2013. The main factors affecting the year-end
balance were:
• generation of Euro 400 million in cash from operating
activities (before changes in net working capital);
• substantial stability in net working capital (increase of
Euro 1 million);
• payment of Euro 72 million in taxes;
• receipt of Euro 36 million in dividends from investments
in equity-accounted companies, up from the previous
year following the extraordinary dividend of Euro 21
million distributed by Yangtze Optical Fibre and Cable
Joint Stock Limited Company;
• net receipt of Euro 9 million from business combinations
(comprising the net receipt of Euro 15 million upon com-
pleting the purchase price adjustment process for the
acquisition of Global Marine Systems Energy Ltd, and
the payment of Euro 6 million to acquire the remaining
34% of the subsidiary AS Draka Keila Cables);
• net operating investments of Euro 155 million;
• payment of Euro 110 million in net finance costs;
• payment of Euro 90 million in dividends;
• purchase of treasury shares for Euro 20 million.
More details about the change in net financial position can
be found in the subsequent comments accompanying the
statement of cash flows.
2014
2013 (*)
Change
2012 (*)
EBITDA
496
563
(67)
549
Changes in provisions (including employee benefit obligations)
(23)
(69)
46
13
(Gains)/losses on disposal of property, plant and equipment,
intangible assets and non-current assets
(8)
(7)
(1)
(14)
Share of net profit/(loss) of equity-accounted companies
(43)
(35)
(8)
(31)
Acquisition price adjustment
(1)
(22)
-
(22)
-
Net cash flow provided by operating activities (before changes in net working capital)
400
452
(52)
517
Changes in net working capital
(1)
(6)
5
69
Taxes paid
(72)
(60)
(12)
(72)
Dividends from investments in equity-accounted companies
36
16
20
16
Net cash flow provided/(used) by operating activities
363
402
(39)
530
Acquisitions
9
-
9
(86)
Net cash flow used in operational investing activities
(155)
(107)
(48)
(129)
Free cash flow (unlevered)
217
295
(78)
317
Net finance costs
(110)
(124)
14
(126)
Free cash flow (levered)
107
171
(64)
191
Increases in share capital and other changes in equity
(20)
-
(20)
1
Dividend distribution
(90)
(92)
2
(44)
Net cash flow provided/(used) in the year
(3)
79
(82)
148
Opening net financial position
(805)
(888)
83
(1.026)
Net cash flow provided/(used) in the year
(3)
79
(82)
148
Convertible bond equity component
-
39
(39)
-
Other changes
6
(35)
41
(10)
Closing net financial position
(802)
(805)
3
(888)
STATEMENT OF CASH FLOWS
(*) The previously published prior year comparative figures have been restated following the introduction of IFRS 10 and IFRS 11 and a new method of classifying
the share of net profit (loss) of associates and joint ventures.
(1) This refers to the acquisition in November 2012 of Global Marine Systems Energy Ltd (now renamed Prysmian PowerLink Services Ltd) from Global Marine
Systems Ltd.
(in milions of Euro)