Financial position

Cash flows

In CHF million   2013   2012   Change
Operating income before depreciation and amortisation (EBITDA)   4,302   4,477   (175)
Capital expenditure in property, plant and equipment and other intangible assets   (2,396)   (2,529)   133
Proceeds from sale of tangible and other intangible assets   28   25   3
Change in defined benefit obligations   (20)   (180)   160
Change in net working capital and other cash flows from operating activities   78   103   (25)
Dividends paid to non-controlling interests   (14)   (14)  
Operating free cash flow   1,978   1,882   96
Net interest paid   (243)   (236)   (7)
Income taxes paid   (278)   (190)   (88)
Free cash flow   1,457   1,456   1
Other cash flows from investing activities, net   (149)   1   (150)
Issuance and repayment of financial liabilities, net   37   (75)   112
Dividends paid to equity holders of Swisscom Ltd   (1,140)   (1,140)  
Other cash flows   (21)   (18)   (3)
Net increase in cash and cash equivalents   184   224   (40)

Free cash flow was almost unchanged versus the previous year at CHF 1,457 million. Higher income tax payments and higher net interest payments offset the increase in the operating cash flow. The main reason for the increase in operating free cash flow was the lower capital expenditure in comparison with the previous year. Capital expenditure fell by CHF 133 million or 5.3% year-on-year to CHF 2,396 million. Excluding these costs, investments for mobile frequencies increased by CHF 227 million or 10.5% to CHF 360 million, primarily as a result of increased investment at Fastweb. The change in defined benefit obligations in the previous year includes non-cash non-recurring income of CHF 157 million resulting from a pension plan adjustment. Net working capital was CHF 78 million lower versus the end of 2012 (prior year: CHF 103 million). The decrease is primarily the result of lower trade receivables. In 2013, Swisscom paid dividends totalling CHF 1,140 million to its shareholders (prior year: CHF 1,140 million).