ANNUAL REPORT

37. Cash flow from operating activities
Euro/thousand
For the 12 months to 31 December
2009 2008
Net profit (loss) 82,592 89,535
Depreciation, amortisation and impairment 22,222 17,376
Income taxes 57,917 46,243
Provisions (121) 1,975
Costs of pension plans and stock grants 1,705 941
Losses (gains) of property sales (77) 53
Value adjustments of equity investments valued at cost
Financial charges and income, net of value adjustments
of equity investments carried at cost 13,856 (20,522)
Other non monetary items 178,094 135,601
The changes in working capital, net of the effects of the acquisition and sale of consolidated companies and
translation differences, are as follows:
Euro/thousand 2009 2008
Inventories (48,036) (175,444)
Contract work in progress and advances received (70,870) (18,645)
Trade receivables and payables 62,072 292,005
Changes in working capital (56,834) 97,916
The changes in other operating assets and liabilities, net of the effects of the acquisition and sale of
companies and translation differences, are as follows:
Euro/thousand 2009 2008
Payment of severance indemnity and other defined-benefit plans (3,963) (7,578)
Changes in provisions for risks (4,415) (20,193)
Changes in other operating items 33,849 26,227
25,471 (1,544)
38. Financial risk management
The Company is exposed to financial risks in connection with its operations, and particularly to risks of the
following types:
• market risks, regarding exposure to positions which generate interest (interest rate risk) and operations in
currency areas other than the functional currency (exchange risk);
• credit risks, deriving from ordinary commercial operations or financing activities.
The Company monitors each of the aforementioned risks individually, taking prompt action to minimize them,
also through the use of derivative hedging instruments.
The paragraphs below, also through the use of sensitivity analysis, examine the potential impact on results
reported deriving from hypothetical fluctuations in the reference parameters. In accordance with IFRS 7, the
analysis is based on simplified scenarios applied to actual figures for the reference periods and, due to their
nature, cannot be considered as indicative of the real effects of future changes in the reference parameters
if the equity and financial structure and the market conditions change, nor can they reflect the interrelations
existing between and complexity of reference markets.