Earnings Release • Jul 27, 2017
Earnings Release
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| Informazione Regolamentata n. 0116-71-2017 |
Data/Ora Ricezione 27 Luglio 2017 17:44:27 |
MTA | |
|---|---|---|---|
| Societa' | : | ENEL | |
| Identificativo Informazione Regolamentata |
: | 92318 | |
| Nome utilizzatore | : | ENELN05 - Giannetti | |
| Tipologia | : | 1.2 | |
| Data/Ora Ricezione | : | 27 Luglio 2017 17:44:27 | |
| Data/Ora Inizio Diffusione presunta |
: | 27 Luglio 2017 17:44:28 | |
| Oggetto | : | and minorities | Enel net ordinary income +3.8% in 1H 2017 thanks to reduction in financial expenses |
| Testo del comunicato |
Vedi allegato.
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Francesco Starace, Enel CEO and General Manager, commented: "The geographical and technological diversification of our asset and customer portfolio, the robust growth trajectory as well as the corporate simplification and operational efficiency actions we have carried out enabled us to deliver a solid performance across our main financial indicators in the first half of 2017. Indeed, we posted a 3.8% increase in net ordinary income in spite of the challenges posed by poor global generation resource availability, as well as the exceptional situation in the Iberian Peninsula during the period.
At the same time, we have made further significant progress against each of the objectives set out in the Group Strategic Plan presented last November. Our digitisation plan is accelerating improvements in many areas of the business, with a particular focus on operational efficiency where we are on the right track to achieve our year-end target.
Looking at industrial growth, our focus on networks and renewables is providing a resilient contribution to the overall results, and in renewables in particular, where we plan to bring an additional 2GW of capacity online in the second part of the year, making 2017 another record year in terms of installed capacity. In light of the results and operational performance posted in the first half of the year, we can confirm our 2017 financial targets."
Rome, July 27th, 2017 – The Board of Directors of Enel S.p.A. ("Enel"), chaired by Patrizia Grieco, examined and approved the half-year financial report at June 30th, 2017.
*****
The following table reports revenues by business area:
| Revenues (millions of euros) | 1H 2017 | 1H 2016 | Change |
|---|---|---|---|
| Italy | 18,677 | 17,605 | 6.1% |
| Iberia | 9,960 | 9,171 | 8.6% |
| Latin America | 6,513 | 5,105 | 27.6% |
| Europe and North Africa | 1,157 | 2,304 | -49.8% |
| North and Central America | 365 | 462 | -21.0% |
| Sub-Saharan Africa and Asia | 46 | 9 | - |
| Other, eliminations and adjustments |
(403) | (506) | 20.4% |
| Total | 36,315 | 34,150 | 6.3% |
These factors more than offset:
a.s. ("Slovenské elektrárne") for 1,068 million euros, and the deconsolidation of EGPNA Renewable Energy Partners ("EGPNA-REP") for 149 million euros, and on the other hand, of the acquisition of Brazilian distribution company Celg Distribuição S.A. ("CELG") for 596 million euros.
The only extraordinary item in revenues for 1H 2017 was the gain on the sale of the interest in the Chilean company Electrogas for 146 million euros. The only extraordinary item in revenues for 1H 2016 was the gain of 124 million euros on the sale of Hydro Dolomiti Enel (restated in 2Q 2016 following the calculation of the price adjustment).
The following table reports EBITDA by business area:
| EBITDA (millions of euros) | 1H 2017 | 1H 2016 | Change |
|---|---|---|---|
| Italy | 3,667 | 3,679 | -0.3% |
| Iberia | 1,596 | 1,973 | -19.1% |
| Latin America | 2,058 | 1,730 | 19.0% |
| Europe and North Africa | 277 | 421 | -34.2% |
| North and Central America | 218 | 327 | -33.3% |
| Sub-Saharan Africa and Asia | 28 | 1 | - |
| Other | (166) | (78) | - |
| Total | 7,678 | 8,053 | -4.7% |
EBITDA for 1H 2017 was 7,678 million euros, down by 375 million euros (-4.7%) compared with 1H 2016. The decrease mainly reflected:
These factors were partly offset by:
The following table reports ordinary EBITDA by business area:
| Ordinary EBITDA (millions of euros) | 1H 2017 | 1H 2016 | Change |
|---|---|---|---|
| Italy | 3,667 | 3,555 | 3.2% |
| Iberia | 1,596 | 1,973 | -19.1% |
| Latin America | 1,912 | 1,730 | 10.5% |
| Europe and North Africa | 277 | 421 | -34.2% |
| North and Central America | 218 | 327 | -33.3% |
| Sub-Saharan Africa and Asia | 28 | 1 | - |
| Other | (166) | (78) | - |
| Total | 7,532 | 7,929 | -5.0% |
As EBITDA for 1H 2017 and 1H 2016 included the same non-recurring items discussed under revenues, ordinary EBITDA in 1H 2017 amounted to 7,532 million euros, -5.0% compared with 1H 2016. Net of the non-recurring items discussed below, ordinary EBITDA for 1H 2017 was 7,558 million euros, compared with 7,812 million euros for 1H 2016, down 254 million euros (-3.3%), largely taking into account the impact from the changes in the scope of consolidation.
Non-recurring items in 1H 2017 included: in Iberia, a number of adjustments of remuneration for extrapeninsular generation, +52 million euros; in Latin America, certain post-acquisition provisions related to CELG and the revaluation of certain prior fines levied in Argentina, with a -78 million euro impact. Nonrecurring items in 1H 2016 included: in Iberia, the reimbursement of the environmental tax in the region of Extremadura, the reversal of provisions and the gain on the disposal of Compostilla RE reinsurance company totalling 114 million euros; and other minor non-recurring items totalling 3 million euros.
The following table reports EBIT by business area:
| EBIT (millions of euros) | 1H 2017 | 1H 2016 | Change |
|---|---|---|---|
| Italy | 2,549 | 2,582 | -1.3% |
| Iberia | 789 | 1,094 | -27.9% |
| Latin America | 1,387 | 1,247 | 11.2% |
| Europe and North Africa | 172 | 239 | -28.0% |
| North and Central America | 123 | 199 | -38.2% |
| Sub-Saharan Africa and Asia | 7 | (2) | - |
| Other | (173) | (149) | -16.1% |
|---|---|---|---|
| Total | 4,854 | 5,210 | -6.8% |
EBIT in 1H 2017 was 4,854 million euros, down 356 million euros (-6.8%) compared with 1H 2016, despite a reduction of 19 million euros in depreciation, amortisation and impairment losses. In 1H 2016, impairment included a writedown of upstream gas assets for 39 million euros.
In 1H 2017, Group net income was 1,847 million euros, over the 1,834 million euros in 1H 2016, +13 million euros.
Group net ordinary income was 1,809 million euros (1,742 million euros in 1H 2016), a 67 million euro increase (+3.8%) over the same period of 2016. Net of non-recurring items described under ordinary EBITDA (net of taxes and minorities), Group net ordinary income was 1,806 million euros in 1H 2017, a 132 million euro increase (+7.9%) on the 1,674 million euros posted in 1H 2016.
Net capital employed as of June 30th, 2017 was 90,594 million euros (including 68 million euros of net assets and liabilities held for sale) compared with 90,128 million euros as of December 31st, 2016. Enel's net capital employed was funded by:
As of June 30th, 2017, the debt/equity ratio was 0.75 (0.71 as of December 31st, 2016).
The following table reports capital expenditure by business area:
| Capital expenditure (millions of euros) |
1H 2017 | 1H 2016 | Change |
|---|---|---|---|
| Italy | 740 | 738 | 0.3% |
| Iberia | 350 | 408 | -14.2% |
| 7 | 17 | -58.8% |
|---|---|---|
| 21 | 201 | -89.6% |
| 813 | 748 | 8.7% |
| 153 | 88 | 73.9% |
| 1,381 | 1,265 | 9.2% |
Capital expenditure in 1H 2017 was 3,465 million euros (excluding investments of 249 million euros in assets classified as "held for sale"), unchanged on 1H 2016.
*****
| 1H 2017 | 1H 2016 | Change | |
|---|---|---|---|
| Electricity sales (TWh) | 138.6 | 131.0 | 5.8 % |
| Gas sales (billions of m3 ) |
6.2 | 5.7 | 8.8% |
| Electricity generated (TWh) | 121.2 | 128.2 | -5.5% |
| Electricity distributed (TWh) | 217.7 | 209.9 | 3.7% |
| Employees (no.) | 62,756 | 62,080 | 1.1% |
a decline in nuclear generation (-6.0 TWh), mainly due to the deconsolidation of Slovenské elektrárne;
increased thermal generation (+4.4 TWh), mainly as a result of higher output from coal-fired and CCGT plants in Spain;
Generation mix of Enel Group plants:
The Enel Group confirms its long-term objective for achieving "mix decarbonisation" by 2050. It is expected that renewables will contribute nearly half of Enel Group's total estimated capacity of 83 GW in 2019.
*****
In 1H 2017, significant progress was made towards achieving each of the objectives in the Group's 2017-2019 Strategic Plan, as updated in November 2016.
From an operational standpoint, despite the challenges posed by poor generation resource availability on a global scale and the exceptional situation in the Iberian Peninsula, the diversification of activities allowed the Enel Group to post solid results during the period.
For 2H 2017, in line with the Strategic Plan targets, the Group expects:
The progress for each of these key pillars, the expected normalisation of operating performance and an acceleration in the contribution of investments in renewables enable us to confirm the financial targets for 2017 as a whole.
*****
The main bond issues carried out in 1H 2017 by Enel Group companies include:
*****
May 17th, 2017: Enel announced that its subsidiary Enel Green Power España (owned through Endesa) had been awarded 540 MW of wind power capacity in Spain, following a tender launched by the Spanish government. The plants, whose construction investment is expected to amount to, approximately, 600 million euros, will sell their power in the Spanish wholesale market while the Spanish government will provide incentives, in the form of yearly capacity payments, to guarantee a steady return over the 25 years of the plants' lifetime. The wind farms, which are expected to enter service by 2019, will be located in the regions of Aragona, Andalusia, Castile and León as well as Galicia, areas which enjoy high levels of wind resources. Once up and running, the wind facilities will generate approximately 1,750 GWh per year.
May 23rd, 2017: Enel announced that its subsidiary Enel Finance International N.V. had launched a multitranche bond issue offered on the US and international markets for institutional investors for a total of 5 billion US dollars, the equivalent of about 4.5 billion euros. The issue, which was guaranteed by Enel, is structured in three tranches: (i) 2,000 million US dollars fixed-rate 2.875% maturing in 2022; (ii) 2,000
million US dollars fixed rate 3.625% maturing in 2027; and (iii) 1,000 million US dollars fixed-rate 4.750% maturing in 2047. The offer is part of the strategy for the Enel Group's financing, as well as refinancing the Group's maturing consolidated debt.
May 29th, 2017: Enel announced that its subsidiary Enel Green Power North America, Inc. ("EGPNA"), acting through Rock Creek Wind Holdings, LLC, had signed a tax equity agreement worth about 365 million US dollars with Bank of America Merrill Lynch and JP Morgan for the Rock Creek wind farm (300 MW) in Missouri. The agreement – which is backed by a parent company guarantee from Enel – secures the funding commitment by the two investors, and the closing of the funding is expected to occur upon completion of construction and achievement of commercial operation of the farm. The Rock Creek wind farm, whose construction investment is expected to total about 500 million US dollars, is due to begin operations by the end of 2017 and, once operational, will generate about 1,250 GWh per year.
June 14th, 2017: Enel announced that its subsidiary PJSC Enel Russia had been awarded two wind projects with a total capacity of 291 MW in the tender organised by the Russian government for the installation of 1.9 GW of wind capacity in the country. The two projects, which will be developed and built by Enel Green Power, Enel's Global Division for Renewable Energy, with a total expected investment of about 405 million euros, will sell their electricity on the Russian wholesale market with the support of capacity payment agreements with the Russian government.
June 16th, 2017: Enel announced that it had filed with the Company Register of Rome a plan of merger by incorporation of its subsidiary Enel South America S.r.l. ("Enel SA") into Enel, as approved by the management bodies of both companies. The transaction will enable Enel to benefit from the direct management of the equity investments in the two Latin American sub-holding companies Enel Americas S.A. and Enel Chile S.A., which are currently held by Enel SA, thereby shortening the chain of control. As the merger is subject to a simplified procedure with no share swap, Enel will not increase its share capital nor assign shares to replace the equity interest held in Enel SA. The merger will take legal effect either as of the last registration of the deed of merger with the Companies' Register or as of the later date set down in the deed of merger.
June 22nd, 2017: Enel announced that its subsidiary EGPNA had signed an agreement, unanimously approved by the board of directors of the US company EnerNOC, to acquire the latter's full equity in a public offering for a total consideration in terms of equity value of about 250 million US dollars. EnerNOC is a leader in demand response and energy services for industrial, commercial and institutional customers. The transaction should be completed by 3Q 2017 with the acquisition of all of EnerNOC's shares by EGPNA and the subsequent delisting of the company, subject to obtaining all required regulatory approvals.
June 27th, 2017: Enel announced that its subsidiary EGPNA had begun operation of the 150 MWdc Aurora solar PV facility in Minnesota (USA), the largest photovoltaic plant in Enel's North American PV portfolio. Aurora, whose construction investment amounted to approximately 290 million US dollars, can generate 210 million kWh per year and sells its power through a long-term power purchase agreement to the Xcel Energy utility in Minnesota.
June 28th, 2017: Enel announced that its subsidiary Enel Green Power Hellas S.A. had begun construction of the Kafireas wind farm located in the southern part of the Greek island Evia, in the municipality of Karistos. Kafireas, which once completed will have a total installed capacity of 154 MW, and will be the largest wind farm in the country, will sell its power under a 20-year power purchase agreement with the Greek market operator LAGIE. The Enel Group is expected to invest about 300 million euros in building the wind farm, which is scheduled to enter service in 1Q 2019. The facility will be able to generate about 483 GWh per year.
July 27th, 2017: Enel announced that its subsidiary Enel Green Power España (owned through Endesa) had been awarded 339 MW of solar capacity in Spain following a tender launched by the Spanish government. The plants, whose construction investment is expected to amount to 270 million euros, will sell their energy in the pool market in Spain while the Spanish government will provide incentives, by means of yearly capacity payments, to guarantee a steady return over the 25 years of the facilities' lifetime. The solar PV plants, which are expected to enter into service by 2019, will be located in the regions of Murcia and Bajadoz. Once up and running, the plants will generate approximately 640 GWh per year.
More details on these events are available in relevant press releases, which are published on Enel's website at the following address: https://www.enel.com/en/media/allpressreleases.html
*****
At 18:00 CET, today, July 27th, 2017, a conference call will be held to present the results for the first half of 2017 to financial analysts and institutional investors. Journalists are also invited to listen in on the call. Documentation relating to the conference call will be available on Enel's website (www.enel.com) in the Investor section from the beginning of the call.
Tables reporting the income statement, statement of comprehensive income, balance sheet and cash flow statement for the Enel Group are attached below. Those schedules and the explanatory notes have been submitted to the audit firm for assessment. A descriptive summary of alternative performance indicators is also attached.
The officer responsible for the preparation of the corporate financial reports, Alberto De Paoli, certifies, pursuant to Article 154-bis, paragraph 2, of the Consolidated Law on Financial Intermediation, that the accounting information contained in this press release corresponds with that contained in the accounting documentation, books and records.
There were no changes in accounting standards that had an impact on the accounts that would need to be reported here. Unless otherwise specified, the balance sheet figures as of June 30th, 2017 exclude assets and liabilities held for sale.
The operating segment figures are reported in line with the new organisational structure, which modified the structure of reporting, the analysis of the Group's performance and financial position and, accordingly, the representation of consolidated results from September 30th, 2016. Consequently, the results by business segment are discussed on the basis of the new organisational arrangements. Similarly, the figures for the first half of 2016 have been restated appropriately for comparative purposes.
*****
This press release uses a number of "alternative performance indicators" not envisaged in the IFRS-EU accounting standards but which management feel can facilitate the assessment and monitoring of the Group's performance and financial position. In line with the recommendations in the Guidelines issued on October 5th, 2015, by the European Securities and Markets Authority (ESMA) pursuant to Regulation (EU) no. 1095/2010, the content and basis of calculation of these indicators are as follows:
1 Determined as the difference between "Non-current assets" and "Non-current liabilities" with the exception of: 1) "Deferred tax assets"; 2) "Securities held to maturity", "Financial investments in funds or portfolio management products measured at fair value through profit or loss" and "Other financial receivables" included in "Other non-current financial assets"; 3) "Long-term borrowings"; 4) "Employee benefits"; 5) "Provisions for risks and charges (non-current portion)"; and 6) "Deferred tax liabilities".
2 Defined as the difference between "Current assets" and "Current liabilities" with the exception of: 1) "Current portion of long-term financial receivables", "Factoring receivables", "Securities held to maturity", "Cash collateral" and "Other financial receivables" included in "Other current financial assets"; 2) "Cash and cash equivalents"; 3) "Short-term borrowings" and the "Current portion of long-term borrowings"; 4) "Provisions for risks and charges (current portion)"; and 5) "Other financial payables" included in "Other current liabilities".
3 Determined as the difference between "Assets held for sale" and "Liabilities held for sale".
| Millions of euro | st Half 1 |
||||
|---|---|---|---|---|---|
| 2017 | 2016 | ||||
| of which with related parties |
of which with related parties |
||||
| Revenues | |||||
| Revenues from sales and services | 35,358 | 2,609 | 33,172 | 2,365 | |
| Other revenues and income | 957 | 31 | 978 | 177 | |
| [Subtotal] | 36,315 | 34,150 | |||
| Costs | |||||
| Purchases of energy, gas and fuel | 17,615 | 3,683 | 15,325 | 2,734 | |
| Services and other materials | 8,235 | 1,338 | 8,030 | 1,235 | |
| Personnel | 2,280 | 2,232 | |||
| Depreciation, amortization and impairment losses | 2,824 | 2,843 | |||
| Other operating expenses | 1,457 | 135 | 1,117 | 126 | |
| Capitalized costs | (672) | (721) | |||
| [Subtotal] | 31,739 | 28,826 | |||
| Net income/(expenses) from commodity contracts measured at fair value | 278 | 8 | (114) | 2 | |
| Operating income | 4,854 | 5,210 | |||
| Financial income from derivatives | 645 | 1,193 | |||
| Other financial income | 1,046 | 2 | 1,348 | 13 | |
| Financial expense from derivatives | 1,173 | 2,051 | |||
| Other financial expense | 1,916 | 13 | 2,017 | 25 | |
| Share of income/(expense) from equity investments accounted for using the equity method |
81 | 52 | |||
| Income before taxes | 3,537 | 3,735 | |||
| Income taxes | 1,044 | 1,143 | |||
| Net income from continuing operations | 2,493 | 2,592 | |||
| Net income from discontinued operations | - | - | |||
| Net income for the period (shareholders of the Parent Company and non controlling interests) |
2,493 | 2,592 | |||
| Attributable to shareholders of the Parent Company | 1,847 | 1,834 | |||
| Attributable to non-controlling interests | 646 | 758 | |||
| Earnings per share (euro) attributable to ordinary shareholders of the Parent Company |
0.18 | 0.19 | |||
| Diluted earnings per share (euro) attributable to ordinary shareholders of the Parent Company |
0.18 | 0.19 | |||
| Earnings from continuing operations per share (euro) attributable to ordinary shareholders of the Parent Company |
0.18 | 0.19 | |||
| Diluted earnings from continuing operations per share (euro) attributable to ordinary shareholders of the Parent Company |
0.18 | 0.19 |
| Millions of euro | 1 | st Half |
|---|---|---|
| 2017 | 2016 | |
| Net income for the period | 2,493 | 2,592 |
| Other comprehensive income recyclable to profit or loss (net of taxes): | ||
| - Effective portion of change in the fair value of cash flow hedges | (31) | (516) |
| - Income recognized in equity by companies accounted for using the equity method | (1) | (28) |
| - Change in the fair value of financial investments available for sale | 10 | 28 |
| - Exchange rate differences | (1,797) | 1,116 |
| Other comprehensive income not recyclable to profit or loss (net of taxes): | ||
| Remeasurements in net liabilities (assets) for defined benefits | - | - |
| Income/(Loss) recognized directly in equity | (1,819) | 600 |
| Comprehensive income for the period | 674 | 3,192 |
| Attributable to: | ||
| - shareholders of the Parent Company | 872 | 1,820 |
| - non-controlling interests | (198) | 1,372 |
Millions of euro
| ASSETS | at June. 30, 2017 | at Dec. 31, 2016 | |||
|---|---|---|---|---|---|
| of which with related parties |
of which with related parties |
||||
| Non-current assets | |||||
| Property, plant and equipment | 75,417 | 76,265 | |||
| Investment property | 123 | 124 | |||
| Intangible assets | 16,678 | 15,929 | |||
| Goodwill | 13,542 | 13,556 | |||
| Deferred tax assets | 6,437 | 6,665 | |||
| Equity investments accounted for using the equity method |
1,583 | 1,558 | |||
| Derivatives | 1,201 | 1,609 | |||
| Other non-current financial assets (1) | 3,783 | 3,892 | |||
| Other non-current assets | 971 | 706 | |||
| [Total] | 119,735 | 120,304 | |||
| Current assets | |||||
| Inventories | 2,744 | 2,564 | |||
| Trade receivables | 12,218 | 812 | 13,506 | 958 | |
| Income Tax receivables | 1,077 | 879 | |||
| Derivatives | 2,270 | 9 | 3,945 | 18 | |
| Other current financial assets (2) | 3,708 | 10 | 3,053 | 135 | |
| Other current assets | 3,066 | 259 | 3,044 | 109 | |
| Cash and cash equivalents | 8,513 | 8,290 | |||
| [Total] | 33,596 | 35,281 | |||
| Assets classified as held for sale | 141 | 11 | |||
| TOTAL ASSETS | 153,472 | 155,596 |
(1) Of which long-term financial receivables and other securities at June 30, 2017 for €2,111 million (€2,180 million at December 31, 2016) and €405 million (€441 million at December 31, 2016).
(2) Of which current portion of long-term financial receivables, short-term financial receivables and other securities at June 30, 2017 for €1,054 million (€767 million at December 31, 2016), €2,528 million (€2,121 million at December 31, 2016) and €60 million (€36 million at December 31, 2016).
Millions of euro
| LIABILITIES AND SHAREHOLDERS' EQUITY | at June. 30, 2017 | at Dec. 31, 2016 | |||
|---|---|---|---|---|---|
| of which with related parties |
of which with related parties |
||||
| Equity attributable to the shareholders of the Parent Company | |||||
| Share capital | 10,167 | 10,167 | |||
| Other reserves | 4,177 | 5,152 | |||
| Retained earnings (losses carried forward) | 20,423 | 19,484 | |||
| [Total] | 34,767 | 34,803 | |||
| Non-controlling interests | 17,001 | 17,772 | |||
| Total shareholders' equity | 51,768 | 52,575 | |||
| Non-current liabilities | |||||
| Long-term loans | 42,923 | 1,027 | 41,336 | 1,072 | |
| Post-employment and other employee benefits | 2,595 | 2,585 | |||
| Provisions for risks and charges | 4,931 | 4,981 | |||
| Deferred tax liabilities | 8,340 | 8,768 | |||
| Derivatives | 2,429 | 2,532 | |||
| Other non-current liabilities | 1,980 | 83 | 1,856 | 23 | |
| [Total] | 63,198 | 62,058 | |||
| Current liabilities | |||||
| Short-term loans | 3,025 | 5,372 | |||
| Current portion of long-term loans | 7,549 | 89 | 4,384 | 89 | |
| Provisions for risks and charges | 1,283 | 1,433 | |||
| Trade payables | 11,060 | 3,202 | 12,688 | 2,921 | |
| Income tax payable | 830 | 359 | |||
| Derivatives | 2,059 | 7 | 3,322 | 11 | |
| Other current financial liabilities (1) | 841 | 1 | 1,264 | ||
| Other current liabilities | 11,786 | 8 | 12,141 | 28 | |
| [Total] | 38,433 | 40,963 | |||
| Liabilities included in disposal groups classified as held for sale | 73 | - | |||
| Total liabilities | 101,704 | 103,021 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 153,472 | 155,596 |
(1) Of which €296 million of "short term financial debt" as of December 31, 2016.
| Millions of euro | st Half 1 |
|||
|---|---|---|---|---|
| 2017 | 2016 | |||
| of which with related parties |
of which with related parties |
|||
| Income before taxes for the period | 3,537 | 3,735 | ||
| Adjustments for: | ||||
| Depreciation, amortization and impairment losses | 2,824 | 2,843 | ||
| Financial (income)/expense | 1,398 | 1,527 | ||
| Net income of equity investments accounting for using the equity method | (81) | (52) | ||
| Changes in net working capital: | (1,212) | (589) | ||
| - Inventories | (185) | 143 | ||
| - Trade receivables | 331 | 146 | 262 | (81) |
| - Trade payables | (1,882) | 281 | (1,102) | (374) |
| - Other assets/liabilities | 524 | 24 | 108 | (168) |
| Accruals to provisions | 130 | 344 | ||
| Utilization of provisions | (535) | (611) | ||
| Interest income and other financial income collected | 779 | 2 | 810 | 13 |
| Interest expense and other financial expense paid | (1,970) | (13) | (2,218) | (25) |
| (Income)/expense from measurement of commodity contracts | 53 | (295) | ||
| Income taxes paid | (739) | (1,123) | ||
| (Gains)/Losses on disposals | (148) | (175) | ||
| Cash flows from operating activities (a) | 4,036 | 4,196 | ||
| Investments in property, plant and equipment | (3,057) | (3,431) | ||
| Investments in intangible assets | (408) | (283) | ||
| Investments in entities (or business units) less cash and cash equivalents acquired | (723) | - | ||
| Disposals of entities (or business units) less cash and cash equivalents sold | 19 | 406 | ||
| (Increase)/Decrease in other investing activities | 155 | 18 | ||
| Cash flows from investing/disinvesting activities (b) | (4,014) | (3,290) | ||
| Financial debt (new long-term borrowing) | 7,641 | 1,309 | ||
| Financial debt (repayments and other net changes) | (5,144) | (5,146) | ||
| Collection of proceeds from sale of equity holdings without loss of control | (406) | (213) | ||
| Dividends and interim dividends paid | (1,656) | (2,187) | ||
| Cash flows from financing activities (c) | 435 | (6,237) | ||
| Impact of exchange rate fluctuations on cash and cash equivalents (d) | (170) | 119 | ||
| Increase/(Decrease) in cash and cash equivalents (a+b+c+d) | 287 | (5,212) | ||
| Cash and cash equivalents at beginning of the period (1) | 8,326 | 10,790 | ||
| Cash and cash equivalents at the end of the period (2) | 8,613 | 5,578 |
(1) Of which cash and cash equivalents equal to €8,290 million at January 1, 2017 (€10,639 million at January 1, 2016), short-term securities equal to €36 million at January 1, 2017 (€1
million at January 1, 2016) and cash and cash equivalents pertaining to assets held for sale in the amount of €150 million at January 1, 2016. (2) Of which cash and cash equivalents equal to €8,513 million at June 30, 2017 (€5,515 million at June 30, 2016), short-term securities equal to €60 million at June 30, 2017 (€30 million at June 30, 2016) and cash and cash equivalents pertaining to assets held for sale in the amount of €40 million at June 30, 2017 (€33 million at June 30, 2016).
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