Cash flow
Consolidated cash flow statement
A summary of the cash flow statement for 2023 is shown below.
|
€ million |
2023 |
2022 |
|
Cash flow from operating activities |
724 |
572 |
|
Cash flow from investing activities |
-1,179 |
-1,175 |
|
Cash flow from financing activities |
494 |
184 |
|
Net cash flow |
39 |
-419 |
Cash flow from operating activities
The cash flow from operating activities in 2023 amounted to €724 million (2022: €572 million). The €152 million increase compared to 2022 is mainly due to the higher net profit in 2023, plus the application of the discretionary depreciation scheme, resulting in a corporate income tax payment of €2 million in 2023 (2022: €60 million).
Cash flow from investing activities
The cash outflow from investing activities in 2023 was €1,179 million, compared with an outflow of €1,175 million in 2022. The €183 million increase in gross investments in 2023 is almost fully neutralised by the receipt of security deposits. Regarding procurement to compensate for network losses, €51 million of the security deposits paid in 2022 (€100 million) was repaid in 2023 due to dropping energy prices in 2023. In addition, Alliander received the remainder (€28 million) of the purchase price for the Allego group company, which was sold in 2018. The above resulted in an investment cash flow in 2023 that was €4 million lower than in 2022.
In 2023, the investments increased by €183 million relative to 2022. This is almost entirely due to the increased investments in the power grids (€159 million) as a result of replacements and expansions, among other things, and the increasing demand for connections for solar farms and wind turbines. Besides rolling out new and heavier-duty cables, we are building new electrical substations and expanding existing ones. Compared to 2022, investments in the gas networks rose by €17 million.
Investments (€ million)
Cash flow from financing activities
The cash flow from financing activities for 2023 amounted to €494 million (2022: €184 million). The green bond issued both in 2023 and in 2022 led to an incoming cash flow of almost €500 million in both years. ECP financing was also acquired in both years, totalling €200 million in 2023 and €300 million in 2022. Furthermore, we reinstated €41 million in loans to shareholders in 2023. This is offset by the contractual repayment of bonds under the EMTN programme in 2022 (€400 million) and also explains most of the difference in the financing cash flow between 2023 and 2022.
Free cash flow
|
€ million |
2023 |
2022 |
|
Cash flow from operating activities |
724 |
572 |
|
Acquisition/sale of associate |
13 |
12 |
|
Investments in property, plant and equipment |
-1,411 |
-1,229 |
|
Paid deposits |
51 |
-100 |
|
Construction contributions received |
140 |
142 |
|
Loans received |
33 |
- |
|
Loans repaid |
-5 |
- |
|
Free cash flow |
-455 |
-603 |
The free cash flow in 2023 totalled €455 million negative, compared with a free cash flow in 2022 of €603 million negative. The less negative free cash flow was almost entirely caused by the higher operational cash flow in 2023.