Net cash flows from operating activities resulted in a surplus of euro 2,966 million in 2020 compared to a surplus of euro 2,342 million the previous year. Income tax paid totaled euro 293 million in 2020 compared with euro 349 million for the same period the previous year. The change in working capital requirements was positive at euro 1,047 million, compared with euro 394 million in 2019.
Net cash flow from investments includes acquisitions and disposals of tangible and intangible fixed assets, net acquisitions of financial assets and acquisitions and disposals of subsidiaries. Net cash flow from investment activities was a net use of euro 309 million in 2020, following the use of euro 4,260 million in 2019. Net investments in property, plant and equipment and intangible assets amounted to euro 155 million (including investments relating to the “All in One” real estate plan) compared with euro 225 million in 2019. Net investments in the acquisition of subsidiaries amounted to euro 145 million in 2020, compared with euro 4,055 million in 2019 (including mainly the acquisition of Epsilon for USD 4.5 billion).
Financing activities resulted in an outflow of euro 1,988 million in 2020, after a surplus of euro 2,129 million the previous year. The outgoing cash flow is mainly related to the repayment of borrowings in the amount of euro 1,302 million (of which euro 940 million are related to the early repayment of a portion of the loans taken out for the acquisition of Epsilon). This cash flow is also linked to the interest paid in 2020 in the amount of euro 184 million compared to euro 96 million in 2019, in connection with the consolidation of the financial debt on the acquisition of Epsilon over a full year, the drawdown on the RCF line of euro 2 billion in March, as a preventive measure to deal with the potential impact of the pandemic on liquidity, half of which was repaid in June and the other half in September, as well as the cost of the early unwinding of cross-currency swaps for euro 16 million in December 2020. In addition, the level of dividends paid decreased (euro 112 million in 2020 compared to euro 297 million in 2019), following the decision to halve the dividend per share, and the large proportion (more than 60%) of shareholders who have opted for payment in shares.
Overall, the Groupe’s cash position net of positive bank balances increased by euro 290 million during the financial year, compared with a euro 215 million increase the previous year.
Including credit lines that can be drawn down quickly, the Groupe’s available liquidity stood at euro 6,306 million as at December 31, 2020, compared to euro 6,045 million at December 31, 2019.
The Groupe’s free cash flow, before the change in working capital requirements, was down 5.0% to euro 1,190 million on 2019. Financial interest paid mostly include interests on the acquisition debt of Epsilon. Taxes paid were euro 293 million, down compared to euro 349 million in 2019. Net investments in fixed assets were down by euro 70 million. The Groupe has been very selective in its investment policy, favoring IT spending, particularly in the context of remote work initiatives taken in 2020.
The change in working capital requirements was positive at euro 1,047 million, compared with euro 394 million in 2019. The Groupe has been very rigorous in managing its working capital requirements between the beginning of the crisis and the end of the year. Certain factors had an impact on the end of the year: the business mix, a higher recovery rate, as well as certain elements that had a significant impact on the non-operational working capital requirements such as provisions for restructuring, as well as the increase in provisions for bonuses. In addition, some governments, such as in the United States, have deferred the payment of social security charges to help companies cope with the Covid-19 crisis.
