✓ audited

Earnings per share and cash flow

  • Earnings per share decrease by €1.43 to €5.31
  • Adjusted earnings per share decline by €0.55 to €5.71
  • At €6,733 million, high level of cash provided by operating activities; year-on-year decline mainly due to lower net income
  • Free cash flow of €2.6 billion below previous year’s level as a result of higher expenditures for property, plant and equipment and intangible assets

Cash flow

At €6,733 million, cash flow from operating activities once again reached a high level. The decline of €372 million compared with 2011 was primarily the result of lower net income. The increase in capital tied up in higher inventories and receivables matched the level of the previous year.

Payments related to property, plant and equipment and intangible assets exceeded the previous year’s level by €739 million. At €2,584 million, free cash flow was therefore €1,111 million lower than in the previous year.

Adjusted earnings per share

Earnings per share adjusted for special items and the amortization of intangible assets is a key ratio that offers long-term comparability and is more suitable for predicting the company’s future profitability.

In 2012, adjusted earnings per share amounted to €5.71 compared with €6.26 in the previous year.

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Adjusted earnings per share (million €)

 

 

2012

2011

Income before taxes and minority interests

 

8,436

8,970

Special items

 

(7)

(968)

Amortization of intangible assets

 

690

789

Amortization of intangible assets contained in the special items

 

(75)

(97)

Adjusted income before taxes and minority interests

 

9,044

8,694

Adjusted income taxes

 

(3,440)

(2,513)

Adjusted income before minority interests

 

5,604

6,181

Adjusted minority interests

 

(356)

(432)

Adjusted net income

 

5,248

5,749

 

 

 

 

Weighted average number of outstanding shares

(in thousands)

918,479

918,479

Adjusted earnings per share

(€)

5.71

6.26

Adjusted income before taxes and minority interests, adjusted net income and adjusted earnings per share are key ratios that are not defined under International Financial Reporting Standards (IFRS). They should therefore be viewed as supplementary information.