Net debt

 

Net debt is defined as the non-current financial liabilities, plus current financial liabilities and derivative financial liabilities, minus derivative financial assets, investments in securities, and cash and cash equivalents.
(in millions of EUR)
 
December 31,
Note
2011
2010
2009
Non-current financial debt
18.1, 18.3
3 014
2 650
2 547
Current financial liabilities
18.1, 18.2, 18.3
209
113
149
Derivative liabilities
19
20
16
40
Derivative assets
19
(58)
(66)
(96)
Investments in securities - non current
11
(13)
(125)
(126)
Investments in securities - current
11
(93)
(43)
(12)
Cash and cash equivalents
15
(432)
(758)
(439)
Net debt
 
2 647
1 787
2 063
Net debt to equity ratio
 
48.7%
35.3%
46.8%
 
The following table summarizes the movement of net debt during 2011:
(in millions of EUR)
 
 
Net debt at January 1, 2011
 
1 787
Free cash flow
 
   231
Exercise of stock options and warrants
 
(13)
Net cash received from derivative instruments
 
24
Call options acquired on own equity instruments
 
6
Purchase of treasury shares
 
20
Purchase of non-controlling interests
 
10
Dividends paid
 
173
Net debt after cash movements
 
2 238
Non-cash movements
 
365
Currency translation effect on assets and liabilities
 
44
Net debt at December 31, 2011
 
2 647

The non-cash movements mainly consist of the debt acquired from Delta Maxi (EUR 351 million, see Note 4.1).
Free cash flow is defined as cash flow before financing activities, investments in debt securities and sale and maturity of debt securities and can be summarized as follows:
 (in millions of EUR)
2011
Net cash provided by operating activities
1 106
Net cash used in investing activities
(1 265)
Sale of debt securities (net)
(72)
Free cash flow
(231)

Cash used in investing activities was significantly impacted by the acquisition of Delta Maxi (EUR 574 million, see Note 4.1).

 



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