Read the Registration Document - Guerbet

d) Factors affecting resultsEBITDA was up sharply by nearly 30%, bolstered by savings in operating expenses, and despite moremodest gains for the gross margin that continued to be impacted by rising raw material prices.Current operating income rose by approximately 40% even though allowances for depreciation andamortisation increased.Finally, the rise in net income closely tracked the trend for current operating income. This performanceincluded an improvement in net financial income as well a higher tax expense consistent with the level of2012 earnings.e) Financial positionIFRS(in thousands of euros)2012 2011Cash flow 45,289 34,200Change in WCR: (11,034) 3,663of which change in inventories (651) (13,428)of which change in trade receivables (1,480) 477of which change in trade payables (10,145) 8,981of which change in other assets and liabilities (1,242) 7,633Capital expenditures (33,195) (40,008)Dividends (5,481) (5,481)Other 1 5,451 (2,733)Free cash flow 2 1,030 (10,359)Net debt 3 99,009 100,039Number of months of cash flow 26 35f) Factors affecting the financial positionNet debt declined marginally, mainly in response to lower capital expenditures relative to the budget. Thiswill moreover result in a time lag for certain investments as they are carried forward into 2013.1 Including primarily tax, the effect of exchange rate fluctuations, fixed asset disposals and capital increases described in detail in theconsolidated cash flow statement.2 Free cash flow represents the difference between surplus operating cash flows and capital expenditures and accounts for theincrease or decrease in net debt.3 Net debt constitutes the sum total of current and non-current borrowings less cash and cash equivalents.48