Arla Foods Consolidated Annual Report 2021

72 Arla Foods Consolidated Annual Report 2021 / Consolidated Financial Statements / Primary Statements CASH FLOW / CONTINUED STRONG CASH FLOW FROM OPERATING ACTIVITIES TO SUPPORT HIGH INVESTMENTS Cash flow from operating activities increased by 6.7 per cent to EUR 780 million compared to EUR 731 million last year, mainly driven by higher EBITDA. Increased prices resulted in more cash tied up in net working capital; however, this was offset by settlement of deferred VAT payments and duty declarations from last year. Cash flow from investing activities amounted to EUR -482 million compared to EUR -488 million last year. The overall investment level was consistent with last year due to continuously high CAPEX investments amounting to EUR 452 million, compared to EUR 478 million last year. Cash flow from financing activities was EUR -330 million compared to EUR -293 million last year, comprising transactions with owners and other financing activities. Transactions with owners comprised supplementary payments of EUR 227 million in relation to the 2020 profit appropriation and further net payments of EUR 18 million. The net cash flow from other financing activities was EUR -85 million, representing a green bond issue in Sweden, offset by movements in interest-bearing debt positions. Combined cash and cash equivalents at 31 December 2021 were EUR 97 million, compared to EUR 126 million last year. The movement was due to a net cash outflow of EUR 32 million during 2021 and exchange rate adjustments of cash funds of EUR 3 million. An insignificant amount of cash and cash equivalents at 31 December 2021 was deposited in restricted accounts. Accounting policies The consolidated cash flow statement is presented according to the indirect method, with cash flow from operating activities determined by adjusting EBITDA for the effects of non-cash items such as undistributed results in joint ventures and associates, changes in working capital items and other non-cash items. -200 800 Development in cash flow (EURM) 1,000 948 -90 -78 780 -482 600 400 200 0 EBITDA Net working capital Other payment operating adjustment with impact on and adjustme cash flow Cash flow from operating activities Investing activities Free cash flow 298 -245 Supplem and leaving Payments Other financing activities -85 32 Reduction in cash Contents |||

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