- >Financial Report
- >Consolidated financial statements Geberit Group
- >Notes to the consolidated financial statements
- >Note 28
Net cashflow is calculated as follows:
|1 EBIT + Depreciation + Amortization|
|Financial result, net||-23.5||-1.7|
|Income tax expenses||-52.4||-76.6|
|Deferred taxes charged/credited (-) to net income ( Notes 18 and 25)||-19.5||4.4|
|Changes in non-current provisions||23.9||25.8|
|Non-cash effective depreciation of the Sanitec inventory revaluation||28.4||0.0|
|Changes in non-current assets and other||7.7||-0.7|
“Changes in non-current provisions” mainly includes the changes in provisions for operating risks, accrued pension obligations and non-cash expenses resulting from share participation and option plans charged or credited to net income. “Changes in non-current assets and other” mainly includes the changes in prepaid pension assets booked to net income, gains from the disposal of property, plant and equipment and the amortization of deferred financing costs.
Free cashflow is calculated as follows:
|Purchase of property, plant and equipment and intangible assets, net||-141.0||-102.3|
|Changes in net working capital||40.4||-35.2|
|Payments charged to non-current provisions||-11.7||-10.4|
As per the Group definition, the term “Free cashflow” does not include cashflows from divestments or acquisitions of subsidiaries, proceeds or repayments of borrowings, the purchase or sale of treasury shares and dividend payments.
“Changes in net working capital” comprises the changes in the aggregate of trade accounts receivable, inventories and other current assets, less the aggregate of trade accounts payable and other current provisions and liabilities.
“Payments charged to non-current provisions” mainly includes outflows resulting from pension and warranty obligations.
“Net cashflow” and “Free cashflow” are no substitute for figures shown in the consolidated income statements and the consolidated statements of cashflows, but they may give an indication of the Group’s capability to generate cash, to pay back debt, to finance acquisitions, to buy back shares and to pay dividends.