Cash flows were as follows:
| (in million euros) | FISCAL 2022 | FISCAL 2021 |
|---|---|---|
| Operating cash flow | Operating cash flow FISCAL 2022 1,243 |
Operating cash flow FISCAL 2021 766 |
|
Change in working capital excluding change in BRS financial assets(1) |
Change in working capital excluding change in BRS financial assets(1) FISCAL 2022 (63) |
Change in working capital excluding change in BRS financial assets(1) FISCAL 2021 171 |
| IFRS 16 outflow | IFRS 16 outflow FISCAL 2022 (208) |
IFRS 16 outflow FISCAL 2021 (242) |
| Net capital expenditure | Net capital expenditure FISCAL 2022 (341) |
Net capital expenditure FISCAL 2021 (211) |
|
Free cash flow(2) |
Free cash flow(2) FISCAL 2022 631 |
Free cash flow(2) FISCAL 2021 483 |
| Net acquisitions | Net acquisitions FISCAL 2022 14 |
Net acquisitions FISCAL 2021 (42) |
| Share buy-backs | Share buy-backs FISCAL 2022 (13) |
Share buy-backs FISCAL 2021 (11) |
| Dividends paid to shareholders | Dividends paid to shareholders FISCAL 2022 (294) |
Dividends paid to shareholders FISCAL 2021 — |
| Other changes (including scope and exchange rates) | Other changes (including scope and exchange rates) FISCAL 2022 (128) |
Other changes (including scope and exchange rates) FISCAL 2021 (40) |
| (Increase)/decrease in net debt | (Increase)/decrease in net debt FISCAL 2022 210 |
(Increase)/decrease in net debt FISCAL 2021 390 |
Free cash flow, adjusted for IFRS 16, was 631 million euros against 483 million euros in Fiscal 2021.
Operating cash flow of 1,243 million euros improved significantly compared to the previous year at 766 million euros, boosted by the strong recovery in Underlying operating profit and by the Benefits & Rewards Services indemnity from the Hungarian government related to closure of the business for 34 million euros.
The Working capital outflow in Fiscal 2022 of 63 million euros was due to some significant exceptional items such as restructuring costs, a cash contribution to the UK pension fund for 71 million euros, the unwinding of government Covid-linked payment delays for 117 million euros, the reimbursement of the Tokyo Olympics hospitality packages for 55 million euros and the Benefits & Rewards fine related to the dispute with the French competition authorities which is being paid monthly.
Net capital expenditure, including client investments, increased to 341 million euros, and 1.6% of revenues, compared to 211 million euros in the preceding year, at 1.2% of revenues.Gross capex was 478 million euros, or 2.3% of revenues. Digital and IT investments accounted for 30% of the gross spend, with the remainder focused on client facing investments.
Benefits & Rewards Services continued to invest heavily, at a rate of 9.1% of revenues, with 93% of its investments in IT and digital. The Business & Administrations gross capital expenditure to revenues ratio was at 1.3%, nearly double last year, linked to the recovery in Sports & Leisure activity. Healthcare was also at1.5%, the highest level in many years, due to some significant investments in several hospitals in North America and Continental Europe. On the other hand, in Education, capex to sales was down -60 bps this year at 2.7% of revenues even though the euro amount remained stable.
Cash conversion was 91%, below the normal level of 100%, but including 363 million euros of negative non-recurring elements.
M&A activity restarted in Fiscal 2022 with acquisition spend of 70 million euros, but was more than offset by disposals of 84 million euros.
After taking into account Other changes, consolidated net debt decreased by 210 million euros ending the year to 1,268 million euros at August 31, 2022.
