Cash-flow statement

 

In 2012, for the first year, EDPR generated an Operating Cash-Flow above the overall investments. Operating Cash-Flow increased 4% to 666 million euros which compares unfavourably with the Funds From Operations (FFO) performance given the non-recurrent working capital changes registered in 2011 and the increased stock of green certificates in Romania, which were mostly sold only at the beginning of 2013.

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The key cash-flow items that explain the 2012 cash evolution are the following:

• Funds From Operations, resulting from EBITDA after net interest expenses, income from associates and current taxes increased 11% year-on-year to 655 million euros;

• Operating Cash-Flow, before net interest costs, adjusted by non-cash items (namely income from US institutional partnerships) and net of changes in working capital, amounted to 666 million euros (+4% YoY). The changes in working capital year-on-year comparison is influenced by non-recurrent receivables in 2011 (mostly related to VAT collection) and the increased stock of green certificates in Romania, which were mostly sold only at the beginning of 2013;
• Capital expenditures with the ongoing construction and development works totalled 612 million euros, while other investments activities amounted to 22 million euros;

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• In the period, EDPR completed two minority stakes transactions executing its asset rotation strategy of selling non-controlling interests in operationally optimized assets. Through the first sale of a 49% equity stake in a 599 MW portfolio of wind farms to Borealis, EDPR received 230 million dollars (179 million euros) in Dec-12. The instalment of the minority stake transaction announced in Dec-12 with CTG will occur in the 1H13;

• All in all, Net Debt decreased 33 million euros to 3,355 million euros. In 2012, EDPR was for the first time free cash-flow positive and going forward as the Operating Cash-Flow continues to grow and the asset rotation strategy is executed, EDPR is expected to enter into solid free cash-flow generation cycle.

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