Cash flows
Consolidated cash flow statement
€ million | 2018 | 2017 |
Cash flow from operating activities | 638 | 454 |
Cash flow from investing activities | -496 | -549 |
Cash flow from financing activities | -103 | 148 |
Net cash flow | 39 | 53 |
The cash flow from operating activities in 2018 amounted to €638 million compared with €454 million in 2017. The increase of €184 million compared with 2017 is largely accounted for by a rise in the operating profit, mainly as a consequence of the increase in the regulated tariffs.
The cash outflow from investing activities in 2018 amounted to €496 million, which is a €53 million improvement on 2017. Despite the higher level of investment, the cash outflow was lower. This is largely accounted for by the inward cash flow from the sale of Allego. Third-party contributions to investments in 2018 amounted to €126 million, which is higher than in 2017 (€96 million).
Capital expenditure
Despite a decrease in capital expenditure in gas networks, the level of capital expenditure has risen by €161 million in the past five years, an increase of 28%. This is mainly due to the increased investments in the electricity distribution networks and in smart meters. In recent years, there has also been an increase in the investments in telecommunications networks (both optical fibre networks and mobile data communications). 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.
In view of the difference between the cash flow from operating activities and from investing activities (€142 million positive), the dividend payment of €92 million and the increase in cash and cash equivalents of €39 million, no additional financing was drawn down in 2018. The net debt position consequently remained unchanged. The cash flow from financing activities, of €103 million negative, is largely made up of the dividend paid out.
Free cash flow
The free cash flow in 2018 totalled €143 million inward, compared with an outward free cash flow in 2017 of €95 million. The improvement compared with 2017 is mainly explained by the sale of Allego.
€ million | 2018 | 2017 |
Cash flow from operating activities | 638 | 454 |
Cash flow from the disposal of Allego/Sale of HV network | 110 | 7 |
Investments and divestments in non-current assets | -731 | -652 |
Construction contributions received from third parties | 126 | 96 |
Free cash flow | 143 | -95 |