Free Cash Flow

The following is a summary of the free cash flow, using Lonza’s definition. It includes earnings before interest, taxes and depreciation (EBITDA) and subtracts / adds the increase / decrease of operating net working capital, subtracts capital expenditures, acquisitions and adds disposal of fixed assets and subsidiaries as well as adding changes of other long-term operating assets / liabilities. This key measure is the same as reported monthly to the Executive Committee.

million CHF 2016 2015
EBITDA 848 780
Change of operating net working capital 78 139
Capital expenditures in tangible and intangible assets (366) (264)
Disposal of tangible and intangible assets 10 8
Change of other assets and liabilities 68 30
Free cash flow (before acquisitions / disposals) 638 693
Acquisition of subsidiaries (230) (30)
Disposal of subsidiaries 0 4
Free cash flow 408 667