Annual Report 2010 - Enel.com

derivatives transactions on interest rates, exchange rates
and commodities totaled €718 million, while cash collateral
received amounted to €343 million.
Net financial debt of “Assets held for sale” came to €636
million at December 31, 2010 (€63 million at December
Cash flows
84 Enel Annual Report 2010 Report on operations
31, 2009) and essentially regards Enel Maritza East 3 and
the portion of Enel Unión Fenosa Renovables debt involved
in the sale of assets to Gas Natural agreed on July
30, 2010. At December 31, 2009, the item regarded a
number of Endesa companies in Greece and Brazil.
Millions of euro
2010 2009 restated Change
Cash and cash equivalents at the beginning of the period 4,289 5,211 (922)
- of which discontinued operations - - -
Cash flows from operating activities 11,725 8,926 2,799
- of which discontinued operations - (210) 210
Cash flows from investing/disinvesting activities (4,910) (12,676) 7,766
- of which discontinued operations - (60) 60
Cash flows from financing activities (5,976) 2,669 (8,645)
- of which discontinued operations - 273 (273)
Effect of exchange rate changes on cash and cash equivalents 214 159 55
Cash and cash equivalents at the end of the period (1) (2) 5,342 4,289 1,053
- of which discontinued operations - - -
(1) Of which short-term securities equal to €95 million at December 31, 2010 (€97 million at December 31, 2009).
(2) Of which cash and cash equivalents pertaining to assets held for sale in the amount of €83 million at December 31, 2010 (€22 million at December 31, 2009).
Cash flows from operating activities in 2010 were positive
at €11,725 million, up €2,799 million or 31.4% over the
previous year. The increase reflects the decline in uses of
cash in connection with the change in net current assets in
the two periods, as well as the rise in the gross operating
margin due to the change in the method used to consolidate
Endesa and to the improvement in the margin on the
sale and transport of electricity abroad.
Cash flows from investing/disinvesting activities absorbed
funds in the amount of €4,910 million in 2010, while in
2009 they had absorbed cash totaling €12,676 million.
In particular, investments in property, plant and equipment
and in intangible assets totaling €7,187 million did
not change significantly compared with the corresponding
period of the previous year.
Investments in entities or business units, net of cash and
cash equivalents acquired, amounted to €282 million
and are largely accounted for by the acquisition by Enel
Green Power of a number of companies operating in
the generation of electricity from renewable resources
in Italy, the acquisition by Enel Trade of Enel Longanesi
Development, which operates in the natural gas extraction
sector in Italy, the acquisition by Enel North America
of Padoma Wind Power, which is specialized in the development
of wind plants in California, and a number of
smaller acquisitions by Endesa. In 2009, investments in
entities or business units, also stated net of cash and cash
equivalents acquired, were largely accounted for by the
acquisition of 25.01% of Endesa and Endesa’s acquisition
of the Irish company KJWB (now Endesa Ireland).
The disposal of entities or business units, net of cash and
cash equivalents sold, generated cash flows of €2,610
million, essentially accounted for by the collection of the
balance on the sale of 51% of the Russian company SeverEnergia,
the receipt of the prices for the sale of 50.01%
of Endesa Hellas, the sale of 80% of Nubia 2000, which
holds the assets (acquired by Endesa Gas) in the gas transport
and distribution industry in Spain, and the sale of
the Spanish power transmission grids. In 2009, the item
reported cash flows from the sale of the renewable energy
assets of Endesa to Acciona, the sale to Terna of
Enel Linee Alta Tensione (ELAT), the sale of 80% of the
holding in Enel Rete Gas and receipt of the share of the