Change in net financial position

In millions of euros  2009   2008 
In millions of euros  -2,954.1   -2,308.7 
 1,070.5   585.4 
Change in net working capital  180.2   -105.3 
Cash flows generated from operating activities  1,250.7   480.1 
Capital expenditure on property. plant and equipment
 -831.5   -736.0 
Capital expenditure on intangible assets  -40.6   -28.9 
Disposals (acquisitions) of equity investments  -359.6   448.7 
Other changes in non-current assets  23.9   -474.4 
Cash flows used in investing activities  -1,207.8   -790.6 
Dividends distributed
 -337.8   -308.6 
Other changes in equity  -11.9   -26.3 
Equity movements  -349.7   -334.9 
Change in financial debt  -306.8   -645.4 
Closing net financial debt  -3,260.9   -2,954.1 

Cash flow generated by continuing operating activities for the year came to about €1,250.7 million. More specifically, selffinancing (€1,070.5 million) includes profit for the year in the amount of €790.0 million (including the Profit for the year from discontinued operations), amortisation and depreciation in the amount of €279.4 million, and the net increase of €3.0 million in provisions. The management of net working capital generated net cash flows of €180.2 million, due mainly to the net balance on payables and receivables relating to pass-through energy items, which were partially offset by the receivable related to the aforementioned mitigation mechanism established by Resolution no. 188/08.

Investing activities led to a net use of cash of about €1,207.8 million. These cash flows mainly concerned investments in property, plant and equipment (€831.5 million) and intangible assets (€40.6 million) for the year, as well as plant grants recognised during the year (€14.7 million). They also reflect the acquisition (net of the €600 million reduction in share capital) of the entire share capital in TELAT S.r.l. (€557.7 million), as well as of the additional interest (€2 million) in CESI acquired from A2A S.p.A. and Siemens S.p.A. (1.871% and 4.68% stakes, respectively), the capital contribution to SunTergrid (€10 million), the recognition of the joint controlling interest in the Tunisian company ELMED ÉTUDES (€0.7 million) and the sale of the equity investment in Terna Participações (€210.8 million).

Cash flows in respect of equity movements are essentially the result of the distribution of the balance for the 2008 dividend (€197.7 million) and the interim dividend for 2009 (€140.1 million). Other changes in equity are related to the recognition and adjustment of the fair value of cash-flow hedge derivatives for floating-rate debt, net of related tax effects (a decline of €11.9 million).

Therefore, cash flows absorbed by investing activities and equity movements for the year resulted in total uses of liquidity in the amount of €1,557.5 million, which was funded in large part by cash flows generated from operating activities (€1,250.7 million) and the remaining €306.8 million through new debt.