registration document France Telecom 2009 - Orange.com

analysis of the financial position and earnings
9
ANALYSIS OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
ORGANIC CASH FLOW
(in millions of euros)
Financial years ended December 31
2009
2008
historical basis
2007
historical basis
EBITDA (including Orange in the United Kingdom) 15,721 18,328 19,043
EBITDA of continuing operations 14,794 17,083 17,750
EBITDA of discontinued operations (1) 939 1,204 1,297
Eliminations and other (12) 41 (4)
CAPEX (including Orange in the United Kingdom) (5,659) (6,867) (6,979)
CAPEX of continuing operations (5,304) (6,414) (6,459)
CAPEX of discontinued operations (1) (355) (453) (520)
EBITDA - CAPEX (including Orange in the United Kingdom) 10,062 11,461 12,064
Interest paid and interest rates effects on derivatives, net
(net of dividends and interest income received) (1,589) (2,262) (2,411)
Income tax paid (620) (878) (791)
Decrease (increase) in the total working capital requirement (2) 775 159 294
Increase (decrease) in amounts due to suppliers of property, plant and
equipment
and intangible assets excluding licenses (CAPEX) (375) (140) 169
Telecommunication licenses
(net of the change in amounts due to suppliers of telecommunication licenses (93) (209) (129)
Proceeds from sales of property, plant and equipment and intangible assets 93 233 113
Other items (3) 97 (348) (1,491)
Organic cash flow 8,350 8,016 7,818
Organic cash fl ow attributable to owners of the parent 7,617 7,253 7,072
Organic cash fl ow attributable to non-controlling interest 733 763 746
Additional information
Payments made under the early retirement plan (4) (484) (661) (893)
Restructuring costs paid (excluding payments made under the early
retirement plan) (268) (393) (272)
(1) Disposal of Orange in the United Kingdom pending (see Section 9.1.1.4 Key events in 2009, Section 9.1.3 Analysis by operating segment, Segment information of the consolidated
fi nancial statements, and Notes 3 and 11 to the consolidated fi nancial statements).
(2) See the Financial glossary appendix.
(3) Mainly comprising the impact of the neutralization of non-monetary items included in EBITDA.
(4) See Notes 2, 7, 10, 24, 25 and 31 to the consolidated fi nancial statements.
2009 vs. 2008
The France Telecom Group’s organic cash fl ow totaled 8,350
million euros in 2009, compared with 8,016 million euros in
2008. This 334 million euro increase in organic cash fl ow
between 2008 and 2009 was attributable mainly to:
■ a 673 million euro fall in interest paid and interest rates
effects on derivatives, net (net of dividends and interest
income received), taking mainly into account equalization
payments made on the unwinding of hedging derivatives and
the redemption of perpetual bonds redeemable for shares
(TDIRAs) in the fi rst half of 2009, for a total of 563 million
euros (see Note 30 to the consolidated fi nancial statements);
■ a 258 million euro fall in income tax paid; and
■ a 116 million euro fall in telecommunication licenses (net of
the change in amounts due to suppliers of telecommunication
licenses), due largely to the acquisition in 2008 of the fi rst
spectrum of frequency relating to the UMTS license of Mobinil
in Egypt (see Section 9.1.2.4 Group capital expenditures).
These factors were partially offset by:
■ an increase (348 million euros) in the change in the total
working capital requirement (see the Financial glossary
appendix) excluding a 964 million euro expense in 2009
relating to the ruling handed down by the European Court of
First Instance (ECFI) in respect of the dispute over the special
business tax (taxe professionnelle) regime in France prior to
2003 (see Section 9.1.1.4 Key events in 2009 and Notes 18,
26, 30, 31 and 32 to the consolidated fi nancial statements);
■ a bigger fall (235 million euros) in 2009 than in 2008 in change
in amounts due to suppliers of property, plant and equipment
and intangible assets excluding licenses, due to the reduction
in capital expenditures year-on-year; and
■ a 140 million euro fall in proceeds from sales of property, plant
and equipment and intangible assets.
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