CHAPTER 5 Solid economic and operational performance

136

Payments for investing activities (501) (774)

Charges for divestments 110 15

Total cash flows used in investing activities (391) (758)

Free cash flow 915 260

Interest paid (93) (97)

IFRS 16 debt payments (134) (136)

Dividends paid (528) (209)

Proceeds/repayment of borrowings (870) 986

Total Cash Flow from financing (1,624) 544

Net increase (decrease) in cash and cash equivalents (710) 804

Cash flows from operating activities before changes in working capital amounted to 1,881 million, having risen 352% against 2020, driven by the improvement of EBITDA. The change in working capital was negative by 575 million due to the general increase in raw material prices and higher activity levels.

Cash flows from investing activities fell in relation to the previous year due to the streamlining of investments already implemented by the Group in 2020 as part of the 'Multi-year Efficiency Programme' designed to preserve cash flow generation.

Dividends of 528 million were paid out during the year. This heading also includes dividends paid to non-controlling interests in the Group's subsidiaries.

Free cash flow before dividends and interest was 3.5 times higher than in 2020, covering interest and dividend payments for the year.

B) FINANCIAL POSITION

Net financial debt at 31 December 2021 stood at 2,759 million, 2% lower than in 2020 ( 2,825 million). Financial debt including the effect of IFRS 16 amounts to 3,446 million ( 3,451 million in 2020).

This chart shows the debt trend based on sources and applications of funds.

NET DEBT EVOLUTION DEC20 - DEC21 (MILLION )

2,825

(1,305)

391 227

527 94 2,759

687 3,446

Net debt Dec 2020

Cash Flow from operations

Inverstments/ Divestments

Cost of debt

Dividends paid

Currency & others

Net debt Dec 2020

IFRS 16 impact

Net debt Dec 2021 & IFRS 16