Cash flow

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in EUR million

2014

2013

Change
in %

Cash flow generated from operations

901.4

1,051.6

−14.3

Cash flow used in investing activities

−781.6

−2,021.4

n.m.

Cash flow generated from (used in) financing activities

696.5

569.6

22.3

Effects of exchange rate changes

−0.1

1.8

n.m.

Loss of purchasing power on cash and cash equivalents

0.5

−1.0

n.m.

Change in cash and cash equivalents

816.7

−399.4

n.m.

The cash flow from operating activities fell by 14.3% in the reporting year to EUR 901.4 mn. As the gross cash flow rose by 4.7% for operational reasons, this downturn was attributable to the large increase in working capital. The higher working capital requirements were primarily due to the increase in prepaid expenses as a result of increased demand for instalment plans in Croatia, Austria, Belarus, Slovenia and the Republic of Serbia, as well as the continued utilisation of the restructuring provision. In addition, accounts payable declined particularly in Austria in the year under review due to the lower level of outstanding liabilities to suppliers.

The cash flow used for investing activities fell from EUR 2,021.4 mn in the previous year to EUR 781.6 mn in the year under review, consisting primarily of regular CAPEX and expenditure for spectrum acquisitions in Bulgaria and Slovenia as well as the acquisition of blizoo Macedonia. The year-on-year reduction was mainly due to the acquisition of mobile frequencies and intellectual property rights, frequencies and collocation rights for base stations from Orange Austria in 2013.

The cash flow from financing activities increased from EUR 569.6 mn in the previous year to EUR 696.5 mn in the year under review. Cash outflows for the repayment of liabilities and the increased dividend due to payments to owners of the hybrid bond were more than offset by the EUR 996.6 mn capital increase.

As a result, cash and cash equivalents increased to EUR 816.7 mn compared with a negative EUR 399.4 mn at year-end 2013.

Free cash flow, which includes income from the disposal of property, plant and equipment and intangible assets, increased from a negative EUR 716.7 mn in the previous year to a positive EUR 156.1 mn in the year under review. This was the result of the lower cash flow used for investing activities due to the acquisition of mobile frequencies in Austria in 2013.

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