Reclassified statement of financial position ⁴²

Fixed capital (€18,650 million) is reduced by €275 million compared with 31 December 2014, mainly as a result of the reduction of financial receivables held for operating activities (-€276 million) against lower receivables from subsidiaries.

Equity investments

Equity investments of €8,693 million break down as follows:

Acquisitions and subscriptions (€144 million) refer to: the acquisition of a 20% stake in the share capital of Trans Adriatic Pipeline AG (TAP), previously held by Statoil Holding Netherlands B.V., for a contractual amount of €130 million⁴³; (ii) the cash adjustment of the amount related to the acquisition, completed in December 2014, by CDP Gas of the equity investment in Trans Austria Gasleitung GmbH – TAG (€14 million) in order to consider the change of contractual parameters that took place between the reference date and the date that the acquisition was completed.

Repayments and transfers (€147 million) mainly relate to the distribution of the extraordinary dividend by TIGF Holding SAS (€61 million), as capital repayment, and the effects of the operation of the entry of TIGF Holding SAS as a new shareholder (€84 million).

Net working capital (€83 million) increased by €14 million compared with 31 December 2014, owing mainly to: (i) the increase in tax receivables (+€36 million), due mainly to higher receivables from subsidiaries for group VAT related to the December payment (+€13 million) and tax credits for withholding taxes paid on foreign dividends (+€12 million); and (ii) the reduction of other liabilities (+€23 million) for lower advances for group VAT (+€20 million). These effects were partly offset by the increase in tax liabilities (-€42 million) due essentially to higher amounts owed to the Revenue Agency related to the VAT payment in December (-€31 million).

Net financial debt stood at €11,879 million at 31 December 2015, down €211 million compared with 31 December 2014 (€12,090 million). The reduction mainly relates to lower financial and bond debt (-€148 million), primarily as a result of the repayment of the outstanding bond loan with a nominal value of €750 million and the net buyback of bond loans for a nominal value of €250 million as part of the liability management operation. Their effects were partly absorbed by a new issue equal to €250 million. These factors were partly offset by loans taken out with the EIB (+€376 million) and the net utilisation of uncommitted bank credit lines (+€278 million).

Financial and bond liabilities totalling €13,792 million (€13,940 million at 31 December 2014) consisted mainly of bonds (€9.8 billion, or 71.1%), payables to banks (€2.3 billion, or 16.8%) and loan agreements concerning EIB funding (€1.6 billion, or 11.8%). The debts are fully denominated in euros, except for a fixed-rate bond loan for ¥10 billion, fully converted into euros through a cross-currency swap (CCS) financial derivative. Long-term financial debt (€11,060 million) represents around 80% of financial debt (around 85% at 31 December 2014).

The breakdown of debt by type of interest rate at 31 December 2015 is as follows:

Fixed-rate financial liabilities (€8,855 million) reduced by €824 million following the repayment of a bond with a nominal value of €750 million, including the net repurchase of bonds related to the liability management operation.

Variable-rate financial liabilities (€4,937 million) increased by €676 million compared with 31 December 2014, essentially as a result of loans taken out with the EIB (+€376 million) and net utilisation of bank credit lines (+€278 million).

The increase of financial receivables and cash and cash equivalents (€63 million) is due to higher financial receivables not held for operating activities (€64 million) resulting from increased use of current accounts of subsidiaries (+€280 million), in particular in connection with the liability management operation, partly offset by the closure and simultaneous repayment to Snam of the shareholders’ loan to the jointly controlled company TAG, as part of an operation to refinance the entire debt of TAG through the banking system (-€216 million).