Cash flows

Consolidated cash flow statement

The cash flow from operating activities in 2017 amounted to €454 million, compared with €376 million in 2016. The increase of €78 million compared with 2016 is largely accounted for by a rise in the operating profit, mainly because of the increase in regulated tariffs (€105 million).

The cash outflow from investing activities in 2017 amounted to €549 million, which is €317 million higher than in 2016. The increased cash outflow overall in 2017 is explained by the cash inflow as a result of the exchange of service areas (€359 million) in 2016. Third-party contributions to investments in 2017 amounted to €96 million, which is lower than in the previous year (€99 million).

Investments

Despite a decrease in capital expenditure in gas networks, the level of capital expenditure has risen by €96 million in the past five years, an increase of 17%. Apart from the increased investments in the electricity networks and smart meters, there has been an increase in other investments as well, including higher levels of investment in telecommunication networks (both optical fibre networks and mobile data networks). In 2015 and 2016, there was also investment in buildings connected with the renovation of the offices in Duiven and Arnhem, with their sustainable and energy-efficient credentials.

Alliander funded the difference between the cash flow from operating and investing activities (€95 million negative), and the dividend payment of €104 million by drawing the first tranche of the EIB loan facility and ECP financing. Cash and cash equivalents rose by €53 million, bringing the total financing cash flow to €148 million.

Free cash flow

The free cash flow in 2017 totalled €95 million negative, compared with a positive inward free cash flow in 2016 of €144 million. The decrease of €239 million compared with 2016 was mainly a result of the cash flow from the exchange of service areas.