Consolidated statement of cash flows

In millions of euros 2011 2010
Profit for the year 440.0 612.0
of which from discontinued operations and assets held for sale – Rete Rinnovabile 50.6 146.8
of which from discontinued operations and assets held for sale – NRTS 28.3 0.0
Adjustments for: - -
Amortisation, depreciation, impairment losses/(reversals of impairment losses) on property, plant and equipment and intangible assets** 385.5 351.4
Provisions (including employee-related provisions) and impairment losses 94.1 63.5
(Gains)/Losses on disposals of property, plant and equipment (3.6) (3.1)
Financial (income)/expenses 129.6 99.5
Income taxes 388.3 249.2
Cash flows generated by operating activities, before changes in net working capital 1,433.9 1,372.5
Increase/(Decrease) in provisions (including employee-related and tax provisions) (91.1) (39.4)
(Increase)/Decrease in inventories (4.9) 0.3
(Increase)/Decrease in trade receivables and other current assets (168.2) (347.7)
lncrease/(Decrease) in other non-current liabilities 6.0 (0.3)
(lncrease)/Decrease in other non-current assets (413.2) (187.0)
lncrease/(Decrease) in trade payables and other current liabilities 568.5 333.7
Interest income and other financial income received 91.3 109.1
Interest expense and other financial expense paid (218.5) (212.1)
Income taxes paid (354.7) (255.7)
Cash flows generated by operating activities [a] 849.1 773.4
Investments in property, plant and equipment, net of grants received (1,166.0) (1,092.2)
Recognition of acquired companies’ property, plant and equipment 0.0 (43.4)
Revenue from sale of property, plant and equipment and intangible assets 8.6 4.7
Investment in intangible assets, net of grants received (51.1) (58.1)
Construction contracts and assets held for sale 0.0 (503.5)
Goodwill of discontinued operations and assets held for sale 0.0 (1.4)
Net deconsolidation of discontinued operations and assets held for sale – Rete Rinnovabile 404.9 0.0
Increase in equity interests in associates (43.2) (8.1)
Acquisition of equity investments (0.1) (0.5)
Investment in discontinued operations 0.0 0.1
Cash flows used in investing activities [b] (846.9) (1,702.4)
Capital increase 1.2 0.8
Increase of reserves 10.4 6.4
Increase/(Decrease) in net income and accumulated losses (1.0) (2.8)
Dividends paid (422.1) (400.8)
Equity attributable to non-controlling interests in discontinued operations and assets held for sale – Rete Rinnovabile (0.2) 0.2
Change in short- and medium/long-term financial payables (including short-term portions)*** 1,772.7 981.4
Change in short-term financial investments (150.0) 500.0
Deconsolidation of financial debt for discontinued operations and assets held for sale – Rete Rinnovabile (254,6) 0.0
Cash flows generated by financing activities [c] 956.4 1,085.2
Increase/(Decrease) in cash and cash equivalents [a+b+c] 958.6 156.2
of which change in cash and cash equivalents for discontinued operations and assets held for sale – Rete Rinnovabile (6.2) 6.2
Opening cash and cash equivalents 156.3 0.1
Closing cash and cash equivalents 1,114.9 156.3
(*) For comments on the Consolidated statement of cash flows, please see the section “Notes to the statement of cash flows” in the “Notes to the financial statements”. (**) Net of set-up grants taken to income statement for the year. (***)Net of FVH derivatives. The change takes into account the net credit position of Terna S.p.A. towards Rete Rinnovabile S.r.l. at 31 December 2010 (amounting to €254.6 million).