Cash flow
Consolidated cash flow statement
A summary of the cash flow statement for 2024 is shown below.
|
€ million |
2024 |
2023 |
|
Cash flow from operating activities |
829 |
724 |
|
Cash flow from investing activities |
-679 |
-1,179 |
|
Cash flow from financing activities |
102 |
494 |
|
Net cash flow |
252 |
39 |
Cash flow from operating activities
The cash flow from operating activities in 2024 amounted to €829 million (2023: €724 million). The increase of €105 million compared to 2023 is partly caused by the €200 million improvement in working capital, as a result of the prepayment received in the sale of Kenter in 2024. This is offset by the €51 million corporate income tax payment in 2024, which is €49 million more than in 2023 due to the application of the Discretionary Depreciation Scheme in 2023.
Cash flow from investing activities
The cash outflow from investing activities in 2024 was €679 million, compared with an outflow of €1,179 million in 2023. The decrease is mainly attributable to the sale of Kenter (€919 million). On the other hand, there was a €362 million rise in gross investments in 2024, which reflects the increased work package.
In 2024, the investments increased by €362 million relative to 2023. The increase is almost entirely due to higher investments in the electricity grids (€328 million). This involves both replacement and expansion of the network. Besides rolling out new and heavier-duty cables, we are building new electrical substations and expanding existing ones. Compared to 2023, investments in the gas networks rose by €37 million.
Investments (€ million)
Cash flow from financing activities
The cash flow from financing activities for 2024 amounted to €102 million (2023: €494 million). A green bond was issued in both 2024 and 2023 under the EMTN programme, resulting in an incoming cash flow of nearly €750 and €500 million respectively in those two years. In 2024, in anticipation of repayment in 2025, a subordinated perpetual bond loan was issued for €496 million. This was largely offset by items such as the repayment of current liabilities in the form of ECPs (€500 million) and an EMTN loan (€400 million), the dividend distribution of €173 million and lease payments of €45 million.
In 2023, the ECP loan we arranged led to an incoming cash flow of €200 million. Shareholder loans worth €41 million were also restructured in 2023. This was offset by repayment of non-current loans at €126 million, the dividend payout of €82 million, and the lease payment of €28 million.
Free cash flow
|
€ million |
2024 |
2023 |
|
Cash flow from operating activities |
829 |
724 |
|
Acquisition/sale of associate |
919 |
13 |
|
Investments in property, plant and equipment |
-1,773 |
-1,411 |
|
Paid deposits |
47 |
51 |
|
Construction contributions received |
128 |
140 |
|
Loans received |
1 |
33 |
|
Loans repaid |
-1 |
-5 |
|
Free cash flow |
150 |
-455 |
The free cash flow over 2024 totalled €150 million positive, compared with a free cash flow in 2023 of €455 million negative. This difference is mainly caused by the funds received from the sale of Kenter in 2024, partially offset by higher investments.