Cash flow from operating activities before changes in working capital amounted to Euro 349,330 thousand in the year, compared with Euro 366,464 thousand in 2008, reflecting the slight deterioration in EBITDA.
Changes in working capital provided Euro 53,405 thousand in cash flow (Euro 114,815 thousand used in 2008), mostly reflecting:
-an increase in net trade receivables, despite slightly lower revenues, due to the growth in business in emerging countries, combined with a slight worsening of receivables turnover for current collections and higher receivables for the new commercial initiatives in the textile segment;
-a reduction in inventories, thanks to actions under the reorganization plan in terms of production sources and supply chain efficiency;
-a decrease in trade payables which, despite fewer purchases in fourth quarter 2009, benefited from the actions taken to extend average payment terms;
-an increase in net other payables, mainly because of higher balances owed by Italian subsidiaries to the tax authorities for VAT.
Cash flow used to pay taxes amounted to Euro 84,084 thousand.
Operating activities provided Euro 295,515 thousand in cash flow compared with Euro 160,140 thousand provided in the prior year.
Cash flow used by investing activities amounted to Euro 112,255 thousand (Euro 208,666 thousand in 2008), due to greater focus on the Group's operating investments, of which:
-Euro 86,371 thousand in the commercial network, mainly in markets such as Italy, Spain and France, as well as the priority growth markets of Russia, Mexico, Turkey and India; priority was given to refurbishing and expanding existing stores, while the purchase of new buildings and commercial operations was pursued more selectively. This figure also includes Euro 12,456 thousand in cash flow absorbed by non-current financial assets for the purchase of commercial operations in
Italy
;
-Euro 30,829 thousand in investments in production, mostly relating to the production centers in
Romania
,
Italy
and Istria (
Croatia
);
-Euro 11,825 thousand in other investments, most of which in information technology; among the most important were those in implementing and developing the SAP application software at certain Italian and foreign subsidiaries and in developing software for the various production, logistics, commercial and product areas.
Cash flow used by financing activities includes the payment of Euro 49,762 thousand in dividends, of which Euro 48,253 thousand to shareholders of Benetton Group S.p.A., and the purchase of treasury shares for Euro 2,626 thousand.
Comparing the two years, there was an overall improvement in cash flows of more than Euro 320 million.
The explanatory notes to the consolidated financial statements contain further information of an economic and financial nature, including the reconciliation of shareholders' equity and net income of the Parent Company with the corresponding consolidated amounts as well as comments on research and development activities.