Reclassified consolidated statement of cash flows

The reclassified consolidated statement of cash flows set out below summarises the legally required format. It shows the opening and closing cash and cash equivalents and the change in net financial debt during the period. The two statements are reconciled through the “free cash flow”, i.e. the cash surplus or deficit left over after servicing capital expenditure. The free cash flow closes either: (i) with the change in cash and cash equivalents for the period, after adding/deducting all cash flows related to financial liabilities/assets (taking out/repayment of loans) and equity (payment of dividends/capital injections); or (ii) with the change in net financial debt for the period, after adding/deducting the debt flows related to equity (payment of dividends/capital injections).

Reclassified Consolidated Statement Of Cash Flows

(€ million)2008 2009 2010
Net profit 530 732 1,106
Adjusted by:
- Amortisation, depreciation and other non-monetary components 490 595 630
- Net capital losses on asset sales and eliminations 6 6 8
- Interest and income taxes 489 550 788
Change in working capital due to operating activities 83 (117) 34
Dividends, interest and income taxes collected (paid) (545) (602) (791)
Net cash flows from operating activities 1,053 1,164 1,775
Investments (1,097) (1,221) (1,422)
Change in consolidation scope and business units (4,478) (137)
Divestments 2 30 14
Other changes relating to investment activities 74 16 152
Free cash flow 32 (4,489) 382
Changes in short- and long-term financial debt 354 1,530 364
Equity cash flows (386) 2,995 (774)
Net cash flow for the year 0 36 (28)

(*) For the reconciliation of the reclassified consolidated statement of cash flows with the legally required format, reference should be made to the paragraph on the reconciliation of the reclassified consolidated financial statements.

Change in Net Financial Debt

(€ million)2008 2009 2010
Free cash flow 32 (4,489) 382
Financial payables and receivables from acquired companies (2,219)
Equity cash flows (386) 2,995 (774)
Change in net financial debt (354) (3,713) (392)

Reconciliation of the reclassified consolidated financial statements with the legally required formats

Reclassified consolidated balance sheet

(€ million)
Reclassified consolidated balance sheet items 31.12.2009 31.12.2010
(Where not expressly stated, the component is taken directly from the legally required format) Reference to notes to consolidated financial statements Partial amount from legally required format Amount from reclassified format Partial amount from legally required format Amount from reclassified format
Non-current assets
Property, plant and equipment 12,684 13,239
Compulsory inventories 405 405
Intangible assets 4,082 4,262
Equity investments 301 319
Financial receivables held for operations (see note 2) 2 2
Net payables for investments, consisting of: (397) (549)
- Payables for investments (see note 13) (429) (627)
- Receivables for investments/divestments (see note 2) 32 78
Total non-current assets 17,077 17,678
Net working capital
Trade receivables (see note 2) 738 777
Inventories 411 441
Tax receivables, consisting of: 21 18
- Current income tax assets 2
- Other current tax assets 5 4
- IRES receivables for national tax consolidation scheme (see note 2) 13 10
- Group VAT credit (see note 2) 1 4
Trade payables (see note 13) (471) (468)
Tax payables, consisting of: (67) (115)
- Current income tax liabilities (5) (11)
- Other current tax liabilities (18) (20)
- IRES payables for national tax consolidation scheme (see note 13) (36) (69)
- Group VAT payables (see note 13) (8) (15)
Deferred tax liabilities (934) (853)
Provisions for risks and charges (576) (629)
Derivatives (see notes 10, 15, 20) (78) (74)
Other assets, consisting of: 145 98
- Other receivables (see note 2) 130 73
- Other current assets (see note 5) 5 8
- Other non-current assets (see note 10) 10 17
Accruals and deferrals from regulated activities, consisting of: (328) (352)
- Accrued income from regulated activities (see notes 5, 10) 83 80
- Prepaid income from regulated activities (see notes 15, 20) (411) (432)
Other liabilities, consisting of: (193) (174)
- Other payables (see note 13) (162) (143)
- Other current liabilities (see note 15) (5) (4)
- Other non-current liabilities (see note 20) (26) (27)
Total net working capital (1,332) (1,331)
Provisions for employee benefits (107) (105)
Assets held for sale and directly related liabilities consisting of: 14 15
- Assets held for sale (see note 11) 25 25
- Liabilities directly associated with assets held for sale (see note 11) (11) (10)
NET INVESTED CAPITAL 15,652 16,257
Shareholders’ equity including minority interests 5,703 5,916
Net financial debt
Financial liabilities, consisting of: 9,986 10,350
- Long-term financial liabilities 7,486 7,186
- Current share of long-term financial liabilities 915 1,320
- Short-term financial liabilities 1,585 1,844
Financial receivables, cash and cash equivalents, consisting of: (37) (9)
- Other financial assets (1) (1)
- Cash and cash equivalents (36) (8)
Total net financial debt 9,949 10,341
COVERAGE 15,652 16,257

Reclassified consolidated statement of cash flows

(€ million)
2009 2010
Items from the reclassified statement of cash flows and reconciliation with the legally required format Partial amount from legally required format Amount from reclassified format Partial amount from legally required format Amount from reclassified format
Net profit 732 1,106
Adjusted by:
Amortisation, depreciation and other non-monetary components 595 630
- Amortisation and depreciation 613 668
- Impairment losses 10
- Equity method valuation effect (21) (47)
- Change in provisions for employee benefits (1) (1)
- Other changes 4
Net capital losses on asset sales and eliminations 6 8
Interest, income taxes and other changes: 550 788
- Interest income (9) (4)
- Interest expense 212 260
- Income taxes 347 532
Changes in working capital due to operating activities: (117) 34
- Inventories 51 (7)
- Trade receivables (164) (39)
- Trade payables (12) (3)
- Change in provisions for risks and charges (*) 30 18
- Other assets and liabilities (*) (22) 65
Dividends, interest and income taxes collected (paid): (602) (791)
- Dividends collected 34
- Interest collected 10 4
- Interest paid (204) (258)
- Income taxes (paid) received (408) (571)
Net cash flows from operating activities 1,164 1,775
Investments (*): (1,221) (1,422)
- Property, plant and equipment (1,053) (1,056)
- Intangible assets (168) (366)
Investments in companies joining the consolidation scope and business units: (4,478) (137)
Divestments (*): 30 14
- Property, plant and equipment 8 4
- Intangible assets 10 10
- Equity investments 12
Other changes relating to investment activities: 16 152
- Change in net payables for investments 16 152
Free cash flow (4,489) 382
Change in financial payables: 1,530 364
- Taking on long-term financial debt 12,407 1,020
- Repaying of long-term financial debt (10,564) (915)
- Increase (decrease) in short-term financial debt (313) 259
Equity cash flows 2,995 (774)
Net cash flow for the year 36 (28)

(*) As a result of the reclassifications carried out in response to the implementation of international accounting standard IFRIC 12 and the change in the way payments for balancing and stock replenishment are recorded, the related cash flows for 2009 were reclassified respectively from “Property, plant and equipment” to “Intangible assets” and from “Provisions for risks and charges” to “Other assets and liabilities”.

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