Reclassified balance sheet³⁷

Fixed capital (€18,016 million) rose by €2,494 million compared with 31 December 2012, due mainly to an increase in equity investments (+€588 million) and in intragroup medium- and long-term financial receivables from subsidiaries (+€1,903 million).

Equity investments

Equity investments of €8,197 million break down as follows:

The acquisitions and subscriptions (€597 million) refer to Snam’s total outlay for its acquisition, through TIGF Investissements SAS (a wholly owned subsidiary of TIGF Holding SAS), of 100% of TIGF S.A., which is active in the transportation and storage of gas in the south-west of France³⁸. The amount includes: (i) the subscription of 45% of the share capital of TIGF Holding SAS (€241 million); and (ii) the subscription of a 45% quota of a convertible bond issued by TIGF Investissements SAS (€356 million).

Net working capital fell by €224 million compared with 31 December 2012 to €129 million, owing mainly to: (i) the reduction in tax receivables (-€112 million) in relation to receivables due from subsidiaries for the national tax consolidation scheme (-€110 million) resulting from the advance tax payments made by operating companies to Snam for 2013; (ii) the increase in tax payables (-€78 million) as a result of higher pre-tax profits for companies included in the tax consolidation scheme; and (iii) the reduction in other assets (-€20 million), due mainly to the effects on the income statement of prepayments for up-front fees and the substitute tax on the revolving credit lines (-€33 million)³⁹.

Shareholders’ equity amounted to €6,440 million, down by €136 million compared with 31 December 2012. The reduction was due to the payment (-€507 million) of the balance of the 2012 dividend (€0.15 per share being the balance of the total dividend of €0.25 per share, the payment of which began on 23 May 2013), and the advance payment (-€338 million) of the 2013 dividend (€0.10 per share, the payment of which began on 24 October 2013), which was partially absorbed by the total profit for 2013 (+€705 million).

The other changes (+€4 million) relate mainly to the effects of the exercise of 1,233,700 stock options by Snam executives.⁴⁰

Net financial debt stood at €11,689 million as at 31 December 2013, up by €2,406 million compared with the €9,283 million recorded at 31 December 2012. The increase is due to the reduction in intragroup short-term financial receivables (+€1,491 million) and the increase in financial and bond debt (+€915 million), due essentially to an increase in bonds (+€2,811 million), which was partly offset by the net repayment of bank loans (-€1,907 million).

Financial and bond debt, which totalled €13,326 million at 31 December 2013, was denominated entirely in euros, with the exception of a bond worth ¥10 billion, which was fully converted into euros via a hedging derivative worth around €75 million as at the issue date. Financial debt relates mainly to bonds (€8,857 million, equal to 66.5%), bank loans (€3,108 million, equal to 23.3%) and loan agreements concerning European Investment Bank (EIB) funding (€1,350 million, equal to 10.1%)⁴¹.

Intragroup short-term financial receivables (€1,635 million) relate to loans granted to subsidiaries through the intragroup current account.

Long-term financial debts (€11,076 million) represent around 83% of financial debt (around 96% at 31 December 2012).

The breakdown of debt by type of interest rate at 31 December 2013 is as follows:

Fixed-rate debt (€8,557 million) rose by €2,511 million after new bonds were issued.

Floating-rate debt (€4,769 million) fell by €1,596 million compared with 31 December 2012, owing essentially to the early extinguishment of a term loan (-€1,483 million) and to the net repayment of revolving credit lines (-€1,673 million). These effects were partly offset by bank term loans taken out (+€1,249 million, of which €647 million related to EIB funding) and by the private placement of a bond (+€300 million).