Change in net financial position

In millions of euros 2010 2009
Opening net financial debt -3,260.9 -2,954.1
Self.financing 736.4 1,070.5
Change in net working capital -178.0 180.2
Cash flows generated from operating activities 558.4 1,250.7
Investments in property, plant and equipment -1,063.4 -821.1 disposals (acquisitions) of fixed assets -21.2 0.0
Investments in intangible assets -57.0 -51.0
Disposals (acquisitions) of equity investments -8.1 -359.6
Other changes in non,current assets 16.1 23.9
Cash flows used in investing activities -1,133.6 -1,207.8
Dividends distributed -400.8 -337.8
Other changes in equity 33.1 -11.9
Equity movements .367.7 .349.7
Change in financial debt -942.9 -306.8
Closing net financial debt -4,203.8 .3,260.9


The liquidity generated by operating activities during the year, amounting to € 558.4 can be ascribed to self-financing (€ 763.4 million) and to changes in net working capital (-€ 178.0). More specifically, self-financing includes the profit for the year for € 433.7 million, amortisations for € 318.8 million and the net decrease in funds for € 13.0 million. NWC management has used net financial resources for € 178.0 million, for the most part ascribable to the net balance of energy receivables and payables referring to pass-through economic items, the increase of trade receivables mainly with reference to the incentive mechanism linked to the reduction of volumes supplied to the Ancillary Services Market and to the greater diversified activities implemented by the Company. Said change is partially offset by the payables due to suppliers for the greater investments made and the increase in net payables due to the tax authority, mainly for current taxes.

Investing activities led to a net use of cash of about € 1,133.6 million. These cash flows mainly concerned investments in property, plant and equipment (€ 1,063.4 million) and intangible assets (€ 57.0 million) for the year, net of plant grants recognised during the year (€ 12.3 million). The flow also reflects the acquisition from the subsidiary TELAT of some transmission plants subject to development and renewal (€ 21.2 million) in addition to the further investment share acquired in the associate CESI (€ 8.0 million).

Cash flows in respect of equity movements are essentially the result of the distribution of the balance for the 2009 dividend (€ 240.4 million) and the interim dividend for 2010 (€ 160.4 million). Other changes to equity refer to the adjustment to fair value of derivative instruments hedging variable rate payables - net of the related tax effect (€ 25.9 million) and the effects of the exercise of Stock Options during the year (€ 7.2 million). Therefore, cash flows absorbed by investing activities and equity movements for the year resulted in total uses of liquidity in the amount of € 1,501.3 million, which was funded in part by cash flows generated from operating activities (€ 558.4 million) and the remaining € 942.9 million through new debt.