Management Discussion and Analysis Cash Flow "nm" denotes not meaningful Note: (1) Refers to Singtel Group excluding Optus. The Group’s free cash flow grew 1.2% to S$3.65 billion. The increase was driven by lower capital expenditure partly offset by lower operating cash flow, higher cash taxes and lower associates’ dividends. Net cash inflow from operating activities declined 9.9% to S$5.37 billion. Dividends received from the associates fell 6.0% mainly from Telkomsel, the Southern Cross consortium and NetLink Trust. Net cash inflow from operating activities declined 9.9% to S$5.37 billion. Dividends received from the associates fell 6.0% mainly from Telkomsel, the Southern Cross consortium and NetLink Trust. The investing cash outflow was S$2.33 billion. During the year, Singtel received proceeds of S$118 million from the disposal of a property in Singapore. Payments of S$123 million were made for the acquisition of Videology assets in August 2018 and S$344 million for the acquisition of a 5.7% equity interest in Airtel Africa in October 2018. Capital expenditure totalled S$1.72 billion, comprising S$587 million for Singtel and S$1.13 billion (A$1.14 billion) for Optus. In Singtel, major capital investments in the year included S$215 million for fixed and data infrastructure, S$183 million for mobile networks and S$189 million for ICT and other investments. The investing cash outflow was S$2.33 billion. During the year, Singtel received proceeds of S$118 million from the disposal of a property in Singapore. Payments of S$123 million were made for the acquisition of Videology assets in August 2018 and S$344 million for the acquisition of a 5.7% equity interest in Airtel Africa in October 2018. Capital expenditure totalled S$1.72 billion, comprising S$587 million for Singtel and S$1.13 billion (A$1.14 billion) for Optus. In Singtel, major capital investments in the year included S$215 million for fixed and data infrastructure, S$183 million for mobile networks and S$189 million for ICT and other investments. In Optus, capital investments in mobile networks amounted to A$633 million with the balance in fixed and other investments. In Optus, capital investments in mobile networks amounted to A$633 million with the balance in fixed and other investments. Net cash outflow for financing activities amounted to S$3.06 billion. Major cash outflows included net interest payments of S$385 million, and payments of S$1.75 billion for final dividends in respect of FY 2018 and S$1.11 billion for interim dividends in respect of FY 2019, partly offset by increase in net borrowings of S$222 million.

Financial Year ended 31 March

2019	2018	Change

(S$ million)	(S$ million)	(%)

Net cash inﬂow from operating activities	5,368	5,955	-9.9

Net cash outﬂow for investing activities	(2,329)	(1,951)	19.4

Net cash outﬂow for ﬁnancing activities	(3,056)	(4,009)	-23.8

Net change in cash balance	(16)	(5)	248.9

Exchange effects on cash balance	4	(4)	nm

Cash balance at beginning of year	525	534	-1.7

Cash balance at end of year	513	525	-2.3

Singtel (1)	1,242	1,126	10.3

Optus	1,006	989	1.8

Associates (net dividends after withholding tax)	1,402	1,492	-6.0

Group free cash ﬂow	3,650	3,606	1.2

Optus (in A$ million)	1,028	947	8.5

Cash capital expenditure as a percentage of operating revenue	10%	14%

Question: What was the increase in free cash flow from 2018 to 2019 driven by?
Answer: lower capital expenditure partly offset by lower operating cash flow, higher cash taxes and lower associates’ dividends