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Cash flows

In CHF million   30.09.2018   30.09.2017   Change
Operating income before depreciation and amortisation (EBITDA)   3,231   3,354   (123)
Capital expenditure in property, plant and equipment and intangible assets   (1,621)   (1,587)   (34)
Change in defined benefit obligations   47   2   45
Change in net working capital and other cash flows from operating activities   (341)   (89)   (252)
Dividends paid to non-controlling interests   (1)   (8)   7
Operating free cash flow   1,315   1,672   (357)
Net interest paid   (88)   (114)   26
Income taxes paid   (313)   (254)   (59)
Free cash flow   914   1,304   (390)
Net expenditures for company acquisitions and disposals   (51)   (26)   (25)
Other cash flows from investing activities, net   19   132   (113)
Issuance of financial liabilities   1,633   458   1,175
Repayment of financial liabilities   (1,513)   (723)   (790)
Dividends paid to equity holders of Swisscom Ltd (CHF 22 per share)   (1,140)   (1,140)  
Other cash flows from financing activities   (6)   (7)   1
Net decrease in cash and cash equivalents   (144)   (2)   647

Free cash flow declined year-on-year by CHF 390 million to CHF 914 million, mainly due to lower operating free cash flow. Operating free cash flow declined by CHF 357 million to CHF 1,315 million, fuelled by lower operating income before depreciation and amortisation (EBITDA) as well as the higher net working capital. Net working capital increased by CHF 341 million compared to the end of 2017, mainly as a result of seasonal effects on trade payablesas well as accruals for prepaid expenses for the financial year. In the second quarter of 2017, the Swisscom pension fund (comPlan) received a one-time payment of CHF 50 million as a result of the regulatory changes communicated in October 2016. Capital expenditure increased year-on-year by CHF 34 million or 2.1% to CHF 1,621 million.

In the first quarter of 2018, Swisscom issued a debenture bond for CHF 150 million. It has a coupon of 1.0% and matures in 2035. Swisscom issued a further debenture bond for EUR 500 million in the second quarter of 2018 with a coupon of 1.125% and a maturity date in 2026. In addition, short-term bank loans were issued in the third quarter of 2018 to repay a 3.25% debenture bond for CHF 1,385 million upon maturity.