SCH2017_DRF_EN_Livre.indb

4 Business review

Review of the consolidated financial statements

2.16 Consolidated cash-flow Operating Activities

Cash conversion rate (free cash-flow over net income attributable to the equity holders of the parent company on continuing operations) was 105% in 2017 versus 118% in 2016 (adjusted for the impact of tax adjustments described in note 2.11). The effect of acquisitions and divestments during the year was a net cash outflow amounting to EUR416 million in 2017. Our acquisitions and divestments represented a net cash inflow of EUR47 million for the year ended December 31, 2016, corresponding mainly to the disposals described in note 2.1. Financing Activities In 2017, the Group reimbursed bonds for EUR1,025 million and issued a bond in euros for EUR740 million. The net increase in other financial debts amounted to EUR111 million during the year ended December 31, 2017, compared to a net decrease in other financial debts amounting to EUR794 million during the year ended December 31, 2016. The dividend paid by Schneider Electric was EUR1,133 million in the year ended December 31, 2017, compared with EUR1,127 million in the year ended December 31, 2016. The Group purchased minority interests for EUR 141 million in 2017.

Net cash provided by operating activities before changes in operating assets and liabilities amounted to EUR3,020 million for the year ended December 31, 2017, up 2.2% compared to EUR2,956 million for the year ended December 31, 2016, and represented 12.2% of revenue in 2017 compared with 12.1% in 2016. The change in working capital used EUR79 million in cash in the year ended December 31, 2017, compared to EUR1 million generated in the year ended December 31, 2016. In all, net cash provided by operating activities decreased by 0.5% from EUR2,957 million in the year ended December 31, 2016 to EUR2,941 million in the year ended December 31, 2017. Investing Activities Net capital expenditure, which included capitalized development projects, decreased by 7.2% to EUR688 million for the year ended December 31, 2017, compared to EUR741 million for the year ended December 31, 2016, and represented 2.8% of revenues in 2017 (3.0% in 2016). Free cash-flow (cash provided by operating activities net of net capital expenditure) amounted to EUR2,253 million in 2017 versus EUR2,216 million in 2016.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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