SNAM Annual Report 2016 - Cash flow statement

Cash flow statement (*)

(€ million)

Notes

2015

2016

(*)	In conformity with the provisions of paragraph 33 of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, the net financial flows attributable to operations, investment, and financing of discontinued operations can be presented alternatively in the Notes or in the financial statements. Snam chose to represent the Group total cash flows in the Cash flow statement, including both continuing and discontinued operations. The additional information on the cash flows of discontinued operations is given in Note 21 “Discontinued operations”.
(**)	The amount relates to the collection of the consideration from the sale of 38.87% of the equity investment held by Snam S.p.A. in Italgas Reti S.p.A. (€1,502 million, net of cash sold). For more information about the operation of separating Italgas Reti S.p.A. from Snam S.p.A., refer to Note 21 “Discontinued operations”.
(***)	This refers to the repayment to Snam S.p.A. of inter-company financial receivables from the Italgas Group net of financial payables to the EIB (€424 million), provided by the EIB to Snam for financing Italgas S.p.A. projects, that are being taken over by the Italgas Group. For more information about the operation of separating Italgas Reti S.p.A. from Snam S.p.A., refer to Note 21 “Discontinued operations”.

Net profit – continuing operations

796

591

Net profit – discontinued operations

442

270

Net profit

1,238

861

Adjustments for reconciling net profit with cash flows from operating activities:

Amortisation and depreciation – continuing operations

(26)

573

616

Amortisation and depreciation – discontinued operations

273

243

Impairment losses from tangible and intangible fixed assets

(26)

Effect of valuation using the equity method

(14)

(126)

(133)

Net capital losses (capital gains) on asset sales, cancellations and eliminations

Interest income

(8)

(126)

Interest expense

345

615

Income tax – continuing operations

(29)

357

308

Income tax – discontinued operations

110

Other changes

(9)

Changes in working capital:

- Inventories

- Trade receivables

(9)

- Trade payables

(128)

(148)

- Provisions for risks and charges

(14)

- Other assets and liabilities

136

(101)

Working capital cash flow

(176)

Change in provisions for employee benefits

(4)

Dividends collected

141

148

Interest collected

122

Interest paid

(345)

(615)

Income taxes paid net of reimbursed tax credits

(605)

(390)

Net cash flow from operating activities

2,054

1,627

- of which with related parties

(32)

2,450

2,343

Investments:

- Property, plant and equipment

(12)

(793)

(832)

- Intangible assets

(13)

(393)

(313)

- Change in scope of consolidation and business units

(46)

- Equity investments

(144)

(170)

- Financial receivables held for operations

(78)

(133)

- Change in payables and receivables relating to investments

Cash flow from investments

(1,436)

(1,448)

Divestments:

- Property, plant and equipment

- Change in receivables relating to divestment activities

- Companies leaving the scope of consolidation (**)

1,502

- Equity investments

147

Cash flow from divestments

153

1,528

Net cash flow from investment activities

(1,283)

- of which with related parties

(32)

(157)

1,326

Assumption of long-term financial debt

1,167

2,039

Repayment of long-term financial debt

(1,620)

(4,479)

Increase (decrease) in short-term financial debt

284

143

Change in financial receivables not held for operating activities

216

Financial receivables of companies leaving the scope of consolidation (***)

1,585

(712)

Purchase of treasury shares

(103)

Dividends paid to Snam shareholders

(875)

(875)

Net cash flow from financing activities

(828)

(1,690)

- of which with related parties

(32)

222

1,584

Net cash flow for the period

(57)

Cash and cash equivalents at the beginning of the period

(7)

Cash and cash equivalents at the end of the period

(7)

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