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Statement of Cash Flow

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Cash equivalents

The Group’s cash and cash equivalents decreased by USD 65 million during 2015 and was USD 142 million at year- end. The evolvement is shown in the graph above. Investing activities amounted to USD 77 million where the construction of Þeistareykir Geothermal Power Plant makes the largest difference. Amortisation of long-term debt in excess of new loans amounted to USD 224 million.

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As previously stated, investing activities amounted to USD 77 million but only USD 13.5 million were due to maintenance of the Company’s power stations and transmission systems. Free cash flow thus amounted to USD 235.5 million. The Company can for example use free cash flow for new investing activities, which amounted to USD 68 million, reduce debt or pay dividends to the owners. The focus remains on reducing the Company’s debt.

Landsvirkjun will for the next few years continue to place an emphasis on reducing the Company’s debt. Net debt has decreased by USD 838 million since year-end 2009, but the leverage of Landsvirkjun continues to be relatively high despite this, with net debt amounting to 6.2x EBITDA. Landsvirkjun’s goal is to reduce this ratio to below 5 within the next few years. If this is successful then there will be more opportunities to pay dividends to owners and access to favourable long term financing, without a government guarantee, will improve.

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Appendix

Here you can download Landsvirkjun’s financial statements for the year 2015. This includes Landsvirkjun’s entire Financial Statement in Acrobat (pdf) and key figures in Excel (xls).