Cash flows

In CHF million   31.3.2016   31.3.2015   Change
Operating income before depreciation and amortisation (EBITDA)   1,081   1,051   30
Capital expenditure   (596)   (549) 1   (47)
Proceeds from sale of property, plant and equipment and other intangible assets   11   12   (1)
Change in defined benefit obligations   15   15  
Change in net working capital and other cash flow from operating activities   (327)   (185)   (142)
Operating free cash flow   184   344   (160)
Net interest paid   (9)   (17)   8
Income taxes paid   (107)   (109)   2
Free cash flow   68   218   (150)
Other cash flows from investing activities, net   (3)   (60)   57
Issuance and repayment of financial liabilities, net   (88)   (250)   162
Other cash flows from financing activities   (6)   (4)   (2)
Net decrease in cash and cash equivalents   (29)   (96)   67
1 Excluding capital expenditure totalling CHF 5 million in real estate projects for which sales contracts were signed.

Free cash flow declined year-on-year by CHF 150 million or 68.8% to CHF 68 million, due to lower operating free cash flow. Operating free cash flow decreased by CHF 160 million or 46.5% to CHF 184 million. This decline was mainly due to the payment of the Competition Commission penalty as part of the ongoing proceedings regarding broadband services. Swisscom does not consider the sanction justified and lodged an appeal with the Federal Court. Swisscom paid the penalty of CHF 186 million, as no suspensive effect was granted. As a result of the payment, net working capital increased significantly compared to the end of 2015, amounting to CHF 327 million (prior year: CHF 185 million). Net working capital also increased as a result of higher accruals for prepaid expenses for financial year 2016. Investments rose by CHF 47 million or 8.6% to CHF 596 million compared to the previous year, mainly due to the ongoing expansion of the broadband network in Switzerland.

In the first quarter of 2016, Swisscom issued a debenture bond with a nominal amount of CHF 200 million. It has a coupon of 0.375% and matures in 2028. 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%.