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 year. 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 STATEMENT OF CASH FLOWS
| |
(€ millions) |
2007 |
2008 |
2009 |
| Net profit |
|
594 |
530 |
732 |
| Adjusted by: |
|
|
|
|
| - Amortisation, depreciation and other non-monetary components |
|
488 |
488 |
622 |
| - Interest, income taxes and other changes |
|
426 |
490 |
552 |
| Cash flow from operating activities before changes in working capital |
|
1,508 |
1,508 |
1,906 |
| Change to working capital due to operating activities |
|
2 |
90 |
(140) |
| Interest and income taxes received (paid) |
|
(576) |
(545) |
(602) |
| Net cash flow from operating activities |
|
934 |
1,053 |
1,164 |
| Investments in property, plant and equipment and intangible assets |
|
(727) |
(1,097) |
(1,225) |
| Change in consolidation scope |
|
|
|
(4,474) |
| Divestments |
|
1 |
2 |
30 |
| Net payables for investments |
|
(24) |
74 |
16 |
| Free cash flow |
|
184 |
32 |
(4,489) |
| Change in financial liabilities |
|
627 |
354 |
1,530 |
| Equity cash flow |
|
(811) |
(386) |
2,995 |
| Net cash flow for the year |
|
0 |
0 |
36 |
(*) Reference should be made to the paragraph on the reconciliation of the reclassified consolidated balance sheet with the legally required consolidated balance sheet.
CHANGE IN NET FINANCIAL DEBT
| |
(€ millions) |
2007 |
2008 |
2009 |
| Free cash flow |
|
184 |
32 |
(4,489) |
| Financial payables and receivables of acquired companies |
|
|
|
(2,219) |
| Equity cash flow |
|
(811) |
(386) |
2,995 |
| Change in net financial debt |
|
(627) |
(354) |
(3,713) |