|
Condensed cash flow statement | |||||
|
€ million |
Q1 |
Q1 |
Change | ||
| |||||
|
|
|
|
| ||
|
EBIT |
91 |
60 |
51.2% | ||
|
Cash flow from operating activities |
-46 |
66 |
<-100% | ||
|
Cash flow from investing activities |
-28 |
-20 |
-38.1% | ||
|
Free cash flow |
-74 |
46 |
<-100% | ||
|
Cash flow from financing activities |
1 |
-41 |
>100% | ||
|
Currency effects on cash |
1 |
-1 |
>100% | ||
|
Change in cash and cash equivalents |
-72 |
4 |
<-100% | ||
|
|
|
|
| ||
|
Net financial debt1 |
2,741 |
2,600 |
5.4% | ||
Cash Flow from Operating Activities
Cash flow from operating activities includes all cash generated from operations and also reflects cash paid for taxes. In Q1/2012, the cash flow from operating activities amounted to a net outflow of €46 million, compared to a net inflow of €66 million in Q1/2011. This was driven by the temporary increase in trade working capital as a result of the expanded trading activity. The payment for income taxes rose to €11 million compared to €6 million in Q1/2011 due to positive earnings in Q1/2012.
Cash Flow from Investing Activities
Our cash flow from investing activities amounted to a net outflow of €28 million in Q1/2012, compared to a net outflow of €20 million in Q1/2011. This increase was due to capital expenditure and cash payments for acquisitions, mainly due to the acquisition of the 51 per cent of remaining shares of Linde Creighton Ltd. in the UK. Cash receipts from the disposal of non-current assets were €7 million in Q1/2012 compared to €1 million in Q1/2011, mainly due to the sale of property in Basingstoke, UK.
Free Cash Flow
In Q1/2012, free cash flow, defined as cash flow from operating activities less cash flow from investing activities, decreased by €119 million to a cash outflow of €74 million, compared to a cash inflow of €46 million in Q1/2011.
Cash Flow from Financing Activities
Cash flow from financing activities amounted to a total net cash inflow of €1 million in Q1/2012, compared to a net cash outflow of €41 million in Q1/2011. In March 2012, we received an additional €5 million as previously unfunded commitments under the Multi-Currency Revolving Credit Facility. The main driver was proceeds from additional credit lines with local banks and resulted in cash inflows of €18 million in Q1/2012 compared to cash outflows of €11 million due to repayments in the prior year period. Interest payments also declined by €6 million to €23 million in Q1/2012 compared to €29 million in Q1/2011 due to the terms of interest payments of our corporate bond. Interests on the fixed rate notes will be payable semi-annually and quarterly for the floating rate notes, and have the next payment date for both on 15 April 2012.