Cash flows

In CHF million   1.1.–30.9.2016   1.1.–30.9.2015   Change
Operating income before depreciation and amortisation (EBITDA)   3,307   3,099   208
Capital expenditure   (1,768)   (1,737) 1   (31)
Proceeds from sale of property, plant and equipment and other intangible assets   25   18   7
Change in defined benefit obligations   50   51   (1)
Change in net working capital and other cash flow from operating activities   (202)   5   (207)
Dividends paid to non-controlling interests   (8)   (7)   (1)
Operating free cash flow   1,404   1,429   (25)
Net interest paid   (128)   (151)   23
Income taxes paid   (281)   (286)   5
Free cash flow   995   992   3
Acquisition of subsidiaries and non-controlling interests   (26)   (58)   32
Other cash flows from investing activities, net   (12)   167   (179)
Issuance and repayment of financial liabilities, net   137   (58)   195
Dividends paid to equity holders of Swisscom Ltd   (1,140)   (1,140)  
Other cash flows from financing activities   (5)   (4)   (1)
Net decrease in cash and cash equivalents   (51)   (101)   50
1 Excluding capital expenditure totalling CHF 15 million in real estate projects for which sales contracts were signed.

Free cash flow increased by CHF 3 million or 0.3% to CHF 995 million. Operating free cash flow declined by CHF 25 million or 1.7% to CHF 1,404 million. One of the causes behind the decline was the increase in capital expenditure of CHF 31 million or 1.8% to CHF 1,768 million compared with the previous year. The operating income before depreciation and amortisation (EBITDA) and the change in net working capital of the prior year includes the recognition of a provision of CHF 186 million for the Competition Commission proceedings regarding broadband services. Swisscom does not consider the sanction justified and has lodged an appeal with the Federal Court. Swisscom paid the penalty of CHF 186 million at the start of 2016, as no suspensive effect was granted.

In the first nine months of 2016, Swisscom issued two debenture bonds with a nominal amount of CHF 500 million: CHF 200 million with a coupon of 0.375% and maturity in 2028, and CHF 300 million with a coupon of 0.125% and maturity in 2032. The funds raised were used to repay existing debts. In addition, a private placement for CHF 150 million that fell due in the first quarter of 2016 was extended by 15 years at a fixed interest rate of 0.56%.