Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 20Cash Flow(€ × 1 million) 2010 2009Profit for the period 7.1 1.8Depreciation and amortisation 60.0 62.9Other non-cash items 30.4 29.1Working capital movement (38.2) (7.0)Cash from operating activities 59.3 86.8Interest paid (29.8) (24.5)Tax paid (3.1) (7.2)Net cash from operating activities 26.4 55.1Net investments paid (37.6) (37.7)Acquisitions 0.1 (0.2)Other investing activities 3.1 5.0Dividend payment – (2.1)Net proceeds shares issued – 212.3Other fi nancing (0.9) 0.1Net cash flow (8.9) 232.5Non-cash movements (10.4) (8.2)Decrease/(increase) in net debt (19.3) 224.3Net debt this period 256.1 236.8Net debt previous period 236.8 461.1Key ratios2010 2009Key ratiosLeverage ratio × 1 2.3 2.0Interest coverage ratio × 1 3.7 4.0Debt to equity × 1 0.4 0.4Wavin operatedwell within thecovenantsNet debtNet debt increased by € 19.3 million, to € 256.1 million at year-end 2010 compared to € 236.8 millionat year-end 2009. The increase was largely related to the working capital cash outfl ow. Wavin’s mainsource of funding is a syndicated loan facility of € 500 million, which will expire in October 2011 and willbe replaced with a € 475 million syndicated loan facility expiring in April 2013. The interest margins onboth facilities were amended in the last quarter of 2010, resulting in an interest margin reduction of75 bps to 125 bps, depending on the leverage ratio.The company operated well within the agreed set of bank covenants. At year-end the leverage ratio(net debt/last twelve months Ebitda) was 2.3, well below the threshold of 3.7. The interest coverage ratio(Ebitda/net interest expense) was 3.7 against a minimum of 2.3. With current facilities in place, Wavin isadequately funded even if trading conditions remain challenging, and will have suffi cient liquidity whenmarkets recover further.