Cash flow (Glossary) from operating activities declined 10% to €177 million, down €19 million on the previous year’s figure of €196 million. This was largely due to a decrease in EBITDA (Glossary) of 10% to €235 million (2007/2008: €260 million). Interest payments of €9 million (2007/2008: €13 million) led to a lower level of cash outflows, while tax payments of €65 million were much higher than in the previous year (2007/2008: €56 million) due to higher tax prepayments. A substantial fall in working capital (Glossary) – primarily due to the lower level of receivables – produced cash inflows of €49 million (2007/2008: €3 million). On the other hand, the rise in other assets and liabilities and a reduction in accruals generated cash outflows of €36 million (2007/2008: cash inflows of €4 million).
Cash outflows from investing activities were down 7% to €67 million (2007/2008: €72 million). Cash outflow for investments in intangible assets and property, plant and equipment was €52 million (2007/2008: €67 million). As in previous years, the main focus of this investment activity was on other fixed assets and office equipment and on the Outsourcing (Glossary) business. With regard to acquisitions, net spending on the expansion and strengthening of the business came to €8 million (2007/2008: €2 million). At the beginning of the fiscal year, we paid the agreed purchase price of €5 million for the share in Bankberatung Organisations- und IT-Beratung für Banken AG that we had acquired in fiscal 2007/2008. We also expanded our business in North America by purchasing a 100% stake in Connections Canada Inc. (CCi). At the same time, we took over a business unit from Siemens in the Philippines in order to reinforce our presence in the Asia/Pacific/Africa region.
Cash flow from financing activities produced an outflow of €101 million (2007/2008: €116 million). One major item here was the dividend of €67 million (2007/2008: €88 million including an extra dividend) paid out to shareholders. We spent a net €33 million on loan repayments, whereas in the previous year we had increased our borrowings by €16 million. No payments were made in the reporting year for the repurchase of our own shares (treasury shares). By contrast, in fiscal 2007/2008, our purchase of €43 million of treasury shares was another major factor in the outflow of cash from financing activities.
Free cash flow (cash flow from operating activities less capital expenditure on intangible assets, property, plant and equipment and reworkable service parts) fell by just 6% to €116 million (2007/2008: €124 million).
The Group’s net debt (Glossary) decreased significantly by 23% to €150 million (2007/2008: €194 million).
|
Cash flow. |
|
€m |
|
|
2008/2009 |
2007/2008 |
|
EBITDA |
235 |
260 |
|
Cash flow from operating activities |
177 |
196 |
|
Cash flow from investment activities |
–67 |
–72 |
|
Cash flow from financing activities |
–101 |
–116 |
|
= Change in liquidity |
9 |
8 |
|
Cash and cash equivalents at the beginning of the period |
–3 |
–11 |
|
Cash and cash equivalents at the end of the period |
6 |
–3 |
Rating.
At present, Wincor Nixdorf does not a have a rating from an external rating agency. In the past, due to our positive cash flow from operating activities and the credit lines available to us, we have not commissioned a rating process with a rating agency. According to the information we have received from a number of well-known lenders, our creditworthiness is classed as good.
