(Appendix – continued)
ST
Free Cash Flow (non-U.S. GAAP measure)
Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) net cash used in investing activities, excluding payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, which are considered as temporary financial investments. This definition ultimately results in net cash from operating activities plus payment for purchase (and proceeds from sale) of tangible, intangible and financial assets, proceeds from capital grants and other contributions, and net cash paid for business acquisitions, if any.
ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations. Free Cash Flow does not represent total cash flow since it does not include the cash flows from, or used in, financing activities.
Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates. Our definition of Free Cash Flow may differ from definitions used by other companies.
| (US$ m) | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 |
| Net cash from operating activities | 1,881 | 1,311 | 1,320 | 1,550 | 1,651 |
| Payment for purchase of tangible assets, net of proceeds from sale and proceeds from capital grants and other contributions | (1,152) | (1,072) | (1,090) | (920) | (955) |
| Payment for purchase of intangible assets, net of proceeds from sale | (22) | (22) | (24) | (27) | (20) |
| Payment for purchase of financial assets, net of proceeds from sale | - | (8) | - | - | - |
| Free Cash Flow (a) | 707 | 209 | 206 | 603 | 676 |
