Chash flow

The following table summarises the changes in cash flow during the period

(in milions of euro)
  1° Q2° Q3° Q4° Q Total
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 
Operating income (Ebit) before restructuring expenses 183.0  214.7  205.1  205.1  208.8  199.2  219.6  212.5  816.5  831.6 
Amortisation and depreciation 72.3  64.4  73.1  66.1  71.1  68.4  72.4  72.4  288.9  271.3 
Capital expenditures of property, plant and equipment and intangible assets (79.7)  (80.1)  (84.3)  (114.8)  (74.3)  (132.5)  (174.8)  (143.5)  (413.1)  (470.9) 
Change in working capital/other (492.4)  (511.1)  (5.6)  (237.3)  (160.3)  (197.2)  686.1  594.7  27.8  (350.9) 
Operating cash flow (316.8)  (312.1)  188.3  (80.9)  45.3  (62.1)  803.3  736.2  720.1  281.1 
Ordinary financial income/(expenses) (58.6)  (24.3)  (46.1)  (33.5)  (43.9)  (45.5)  (47.2)  (47.2)  (195.8)  (150.5) 
Ordinary tax charges (42.5)  (65.3)  (59.1)  (61.0)  (50.5)  (41.5)  (58.3)  (30.5)  (210.4)  (198.3) 
Net operating cash flow (417.9)  (401.7)  83.1  (175.4)  (49.1)  (149.1)  697.8  658.4  313.9  (67.7) 
Financial investments/disinvestments  - 3.2  - - (31.6)  2.3  (7.5)  - (39.1)  5.5 
Real estate disposals - - - - 26.5  - - 20.5  26.5  20.5 
Russia Investment  - (154.5)  - - - (16.4)  - - - (170.9) 
Impact of consolidating of Sino Italian Wire - - - - - - (39.5)  - (39.5)  -
Retail Investment - - - (106.2)  (4.1)  - (7.9)  (0.0)  (12.0)  (106.2) 
Other dividends paid  - (2.2)  (3.1)  (0.7)  - - - - (3.1)  (2.9) 
Cash Out for restructuring operations (7.5)  (4.2)  (5.2)  (3.3)  (4.2)  (3.6)  (5.7)  (12.4)  (22.6)  (23.5) 
Foreign exchange differences/other (49.6)  (8.5)  29.5  20.2  17.1  0.7  11.3  (3.0)  8.3  9.4 
Net cash flow before divid.
paid/Prelios
(475.0)  (567.9)  104.3  (265.4)  (45.4)  (166.1)  648.5  663.5  232.4  (335.8) 
Dividend paid by Parent  - - (156.7)  (132.3)  - - - - (156.7)  (132.3) 
Prelios: receivable conversion/share capital increase  - - - - (192.9)  - - - (192.9)  -
Net cash flow (475.0)  (567.9)  (52.4)  (397.7)  (238.3)  (166.1)  648.5  663.5  (117.2)  (468.1) 

Operating cash flow was generally positive in 2013, totalling euro 720.1 million, up from euro 281.1 million in 2012, due to better management of working capital, especially in 2Q and 4Q 2013.

In 2013 capital expenditure on property, plant and equipment and intangible assets totalled euro 413.1 million (1.4 times depreciation and amortisation). Capital expenditure was mainly related to development of the premium segment (capacity and improved mix and quality) in Russia, Mexico, Romania and China.

The financial restructuring of Prelios S.p.A. was completed in 3Q 2013. This involved conversion of the financial receivable held by Pirelli into shares and equity instruments (the “convertendo”) issued by the company for euro 169.9 million, and indirect subscription of the capital increase, for euro 23 million paid through Fenice S.r.l., with an aggregate negative impact on net financial (liquidity)/debt position amounting to euro 192.9 million.

Net cash flow before the effects resulting from completion of the reorganisation of Prelios S.p.A. and payment of the parent company dividend was positive for euro 232.4 million. Net cash flow was a negative euro 117.2 million, with a consequent increase in the negative net financial (liquidity)/ debt position.