Financial statements5

The items on the balance sheet are classified as “current” and “non-current”, while those on the income statement are classified according to their nature.

The statement of changes in shareholders’ equity adopted reconciles the opening and closing balances for each item of shareholders’ equity.

The statement of cash flows is prepared using the “indirect” method, adjusting the profit for the period from non-monetary components.

It is considered that these statements adequately represent the group’s situation with regard to its balance sheet, income statement and financial position.

(5) The financial statements are the same as those adopted in the 2009 annual report, except for the statement of cash flows, for which, in order to provide more comparable information with that of other listed companies, an alteration has been made to the elements that include “Net cash flow from operating activities”. In particular, the main changes have involved: (i) the elimination of the items “Cash flows from operating activities before changes in working capital” and “Cash flows from operating activities”; (ii) the introduction of the item “Equity method valuation effect”; (iii) the inclusion in the item “Changes in working capital” of net impairment losses (reversals of impairment losses) for inventories, trade receivables and the change in fair value of derivatives previously included in the item “Net impairment losses (reversals of impairment losses)”; (iv) the inclusion of changes in provisions for risks and charges in the item “Changes in working capital”; and (v) the representation of the change in provisions for employee benefits after “Cash flows from working capital”. Information about financial instruments in accordance with the classification provided for by IFRS is given “Guarantees, commitments and risks - Management of corporate risks - Other information about financial instruments“.