Net indebtedness comprises total loans and financial liabilities, less cash and cash equivalents and liquid assets. Liquid assets are financial assets consisting of funds or securities with initial maturity of over three months that are readily convertible into cash and are managed according to a liquidity-oriented policy.
The Group’s net indebtedness stood at €41,133 million in 2019 and include IFRS 16 from 1 January 2019 for €4,492 million. It stood at €33,388 million at 31 December 2018.
| (in millions of euros) | 2019 | 2018 | Variation | Variation |
|---|---|---|---|---|
| Operating profit before depreciation and amortisation (EBITDA) | Operating profit before depreciation and amortisation (EBITDA)201916,708 | Operating profit before depreciation and amortisation (EBITDA)201814,898 | Operating profit before depreciation and amortisation (EBITDA)Variation1,810 | Operating profit before depreciation and amortisation (EBITDA)Variation+12.1 |
| Cancellation of non-monetary items included in EBITDA | Cancellation of non-monetary items included in EBITDA 2019(1,943) | Cancellation of non-monetary items included in EBITDA 2018(1,245) | ||
| Cash EBITDA | Cash EBITDA201914,765 | Cash EBITDA201813,653 | ||
| Change in working capital | Change in working capital 2019452 | Change in working capital 2018470 | ||
| Net investments(3) (excluding 2019-2020 asset disposals, Hinkley Point C and Linky projects) | Net investments (3)(excluding 2019-2020 asset disposals, Hinkley Point C and Linky projects) 2019(11,345) | Net investments (3)(excluding 2019-2020 asset disposals, Hinkley Point C and Linky projects) 2018(11,508) | ||
| Other items including dividends received from associates and joint ventures | Other items including dividends received from associates and joint ventures 2019303 | Other items including dividends received from associates and joint ventures 2018383 | ||
| Operating cash flow (4) | Operating cash flow (4)20194,175 | Operating cash flow (4)20182,998 | Operating cash flow (4)Variation1,177 | Operating cash flow (4)Variation+39.3 |
| Asset disposals | Asset disposals 2019531 | Asset disposals 20181,937 | ||
| Income taxes paid | Income taxes paid 2019(922) | Income taxes paid 2018(309) | ||
| Net financial expenses disbursed | Net financial expenses disbursed 2019(798) | Net financial expenses disbursed 2018(1,048) | ||
| Dedicated assets | Dedicated assets 2019(394) | Dedicated assets 2018(501) | ||
| Dividends paid in cash | Dividends paid in cash 2019(801) | Dividends paid in cash 2018(1,278) | ||
| Operating cash flow before Hinkley Point C and Linky projects | Operating cash flow before Hinkley Point C and Linky projects20191,791 | Operating cash flow before Hinkley Point C and Linky projects20181,799 | ||
| Hinkley Point C and Linky projects | Hinkley Point C and Linky projects 2019(2,582) | Hinkley Point C and Linky projects 2018(2,400) | ||
| Group Cash flow (5) | Group Cash flow (5)2019(791) | Group Cash flow (5)2018(601) | ||
| Issuance of perpetual subordinated bonds | Issuance of perpetual subordinated bonds 2019493 | Issuance of perpetual subordinated bonds 20181,243 | ||
| Redemptions of perpetual subordinated bonds | Redemptions of perpetual subordinated bonds 2019(1,618) | Redemptions of perpetual subordinated bonds 2018(1,329) | ||
| Other monetary changes | Other monetary changes 2019(470) | Other monetary changes 2018(22) | ||
| (Increase)/decrease in net indebtedness, excluding the impact of changes in exchange rate | (Increase)/decrease in net indebtedness, excluding the impact of changes in exchange rate2019(2,386) | (Increase)/decrease in net indebtedness, excluding the impact of changes in exchange rate2018(709) | ||
| Effect of change in exchange rates | Effect of change in exchange rates 2019(341) | Effect of change in exchange rates 201896 | ||
| Effect of other non-monetary changes | Effect of other non-monetary changes 2019(5,039) | Effect of other non-monetary changes 2018121 | ||
| (Increase)/decrease in net indebtedness of continuing operations | (Increase)/decrease in net indebtedness of continuing operations2019(7,766) | (Increase)/decrease in net indebtedness of continuing operations2018(492) | ||
| (Increase)/decrease in net indebtedness of discontinued operations (6) | (Increase)/decrease in net indebtedness of discontinued operations (6)201921 | (Increase)/decrease in net indebtedness of discontinued operations (6)2018119 | ||
| Net indebtedness at beginning of period | Net indebtedness at beginning of period201933,388 | Net indebtedness at beginning of period201833,015 | ||
| NET INDEBTEDNESS AT END OF PERIOD | NET INDEBTEDNESS AT END OF PERIOD201941,133 | NET INDEBTEDNESS AT END OF PERIOD201833,388 |
(1) The statements as of 31 December 2019 have been prepared in accordance with IFRS 16 (see note 2.1 to the 2019 consolidated financial statements).
(2) The published figures for 2018 have been restated due to the impact of presenting the E&P operations as discontinued operations.
(3) Net investments are operating investments and financial investments for growth, net of disposals. They also include net debts acquired or transferred in acquisitions or disposals of securities, investment subsidies received and non-Group partner investments. They do not include the 2019-2020 asset disposals, Hinkley Point C and Linky projects.
(4) Operating cash flow is not an aggregate defined by IFRS as a measure of financial performance, and is not directly comparable with indicators of the same name reported by other companies. This indicator, also known as Funds From Operations (“FFO”), is equivalent to net cash flow from operating activities, changes in working capital after adjustment where relevant for the impact of non-recurring effects, net investments (excluding 2019-2020 asset disposals, Hinkley Point C and Linky projects) and other items including dividends received from associates and joint ventures.
(5) Group cash flow is not an aggregate defined by IFRS as a measure of financial performance, and is not comparable with indicators of the same name reported by other companies. It is equivalent to the operating cash flow less asset disposals, income taxes paid, net financial expenses disbursed, dedicated assets, dividend paid in cash, Hinkley Point C and Linky projects.
(6) This corresponds to the net indebtedness of Edison’s E&P operations (discontinued operations).
