registration document France Telecom 2009 - Orange.com

9 ANALYSIS
analysis of the financial position and earnings
OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
2008 vs. 2007
The France Telecom Group’s organic cash fl ow totaled 8,016
million euros in 2008, up from 7,818 million euros in 2007. The
198 million euro increase in organic cash fl ow between 2007
and 2008 was attributable to mainly to i) the positive impact
of the sum of “EBITDA less CAPEX” (including Orange in the
United Kingdom) after the neutralization of non-monetary
items included in EBITDA (relating mainly to the year-onyear
change in gains (losses) on disposal of assets and, to a
lesser extent, restructuring costs), partially offset by ii) a fall
(309 million euros) in change in amounts due to suppliers of
property, plant and equipment and intangible assets excluding
licenses (representing a reduction of 140 million euros in 2008
compared with an increase of 169 million euros in 2007), due to
the reduction in capital expenditures year-on-year.
9.1.4.1.2 Net cash provided by operating activities
Net cash provided by operating activities totaled 14,384 million
euros in 2009, down 615 million euros compared with 2008
(14,999 million euros). Net cash provided by operating activities
totaled 14,644 million euros in 2007.
Z CHANGE IN NET CASH PROVIDED BY OPERATING ACTIVITIES BETWEEN 2008 AND 2009
(in millions of euros)
Financial years ended
December 31
Net cash provided by operating activities in 2008 14,999
Decrease in the EBITDA of continuing operations (2,289)
Decrease in the EBITDA of discontinued operations (1) (265)
Decrease in interest paid and interest rates effects on derivatives, net
(net of dividends and interest income received) 673
Change in the total working capital requirement (2) 616
Decrease in income tax paid 258
Other items (3) 392
Neutralization of the provision covering the implementation of the “Part-Time Seniors”
plan in 2009 (4) (non-monetary item included in EBITDA) 569
Other (177)
Net cash provided by operating activities in 2009 14,384
(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) Including, in 2009, 964 million euros in respect of the dispute over the implementation mechanism for business tax 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).
(3) Mainly comprising the impact of the neutralization of non-monetary items included in EBITDA.
(4) See Section 9.1.1.4 Key events in 2009, and Notes 5, 24 and 31 to the consolidated fi nancial statements.
Z CHANGE IN NET CASH PROVIDED BY OPERATING ACTIVITIES BETWEEN 2007 AND 2008
(in millions of euros)
Financial years ended
December 31
Net cash provided by operating activities in 2007 14,644
Decrease in interest paid and interest rates effects on derivatives, net
(net of dividends and interest income received) 149
Decrease in the EBITDA of continuing operations (667)
Change in the total working capital requirement (135)
Decrease in the EBITDA of discontinued operations (1) (93)
Increase in income tax paid (87)
Other items (2) 1,188
Neutralization of non-monetary gains (losses) on disposal of assets included in EBITDA 758
Neutralization of non-monetary restructuring costs included in EBITDA 384
Other 46
Net cash provided by operating activities in 2008 14,999
(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) Mainly comprising the impact of the neutralization of non-monetary items included in EBITDA.
246
2009 REGISTRATION DOCUMENT / FRANCE TELECOM