Reconciliation of reclassified financial statements

Reclassified balance sheet
(€ million) Dec. 31, 2010 Dec. 31, 2011
Reclassified balance sheet items
(where not stated otherwise, items comply with statutory scheme)
Partial amounts from statutory scheme
Amounts from reclassified scheme Partial amounts from statutory scheme
Amounts from reclassified scheme
A) Net tangible assets
7,403
8,024
 Note 7 - Property, plant and equipment 7,403
8,024
B)Net intangible assets
760
752
 Note 8 - Intangible assets 760
752
C)Investments
105
102
 Note 9 - Investments accounted for using the equity method 115
109
 Note 10 - Other investments 2
1
 Reclassified from E) - provisions for losses related to investments (12)
(8)
D)Working capital
(506)
(462)
 Note 2 - Trade and other receivables 4,330
3,504
 Reclassified to I) - financing receivables not related to operations (20)
(75)
 Note 3 - Inventories 791
1,353
 Note 4 - Current tax assets 72
78
 Note 5 - Other current tax assets 218
256
 Note 6 - Other current assets 275
498
 Note 11 - Other financial assets 3
2
 Reclassified to I) - financing receivables not related to operations (3)
(2)
 Note 12 - Deferred tax assets 90
100
 Note 13 - Other non-current assets 39
146
 Note 15 - Trade and other payables (5,814)
(5,341)
 Note 16 - Income tax payables (166)
(244)
 Note 17 - Other current tax liabilities (107)
(150)
 Note 18 - Other current liabilities (149)
(506)
 Note 22 - Deferred tax liabilities (55)
(79)
 Note 23 - Other non-current liabilities (10)
(2)
E)Provisions for contingencies
(152)
(201)
 Note 20 - Provisions for contingencies (164)
(209)
 Reclassified to C) - provisions for losses related to investments 12
8
F)Employee termination indemnities
(193)
(200)
 te 21 - Provisions for employee benefits (193)
(200)
CAPITAL EMPLOYED, NET
7,417
8,015
G)Shareholders’ equity
4,060
4,709
 Note 25 - Saipem shareholders’ equity 4,060
4,709
H)Minority interest
94
114
 Note 24 - Minority interest 94
114
I)Net borrowings
3,263
3,192
 Note 1 - Cash and cash equivalents (930)
(1,029)
 Note 14 - Short-term debt 1,002
956
 Note 19 - Long-term debt 2,887
2,576
 Note 19 - Current portion of long-term debt 327
766
 Reclassified from D) - financing receivables not related to operations (note 2) (20)
(75)
 Reclassified from D) - financing receivables not related to operations (note 11) (3)
(2)
FUNDING
7,417
8,015

Reclassified income statement

The only items of the reclassified income statement which differ from the statutory scheme are those stated hereafter:

  • other income and revenues (€17 million) relating to reimbursements for services that are not part of core operations (€11 million), compensation for damages (€5 million) and gains on disposals of assets (€1 million), which are indicated in the statutory scheme under the item ‘other income and revenues’, have been recorded as reductions to the corresponding cost items in the reclassified income statement;
  • other operating income (expenses) of €3 million have been recorded as reductions to the corresponding cost items in the reclassified income statement;
  • the items ‘financial income’ (€524 million), ‘financial expenses’ (-€586 million) and ‘derivatives’ (-€71 million), which are indicated separately under the statutory scheme, are stated under the item ‘finance (expense) income’ (-€133 million) in the reclassified income statement;
  • the items ‘effect of accounting using the equity method’ (€16 million) and ‘other income (expenses) from investments’ (€3 million), which are indicated separately under the statutory scheme, are stated net under the item ‘net income from investments’ (€19 million) of the reclassified income statement.

All other items are unchanged.

Reclassified cash flow statement

The only items of the reclassified cash flows statement which differ from the statutory scheme are those stated hereafter:

  • the items ‘depreciation and amortization’ (€608 million), ‘net impairment of tangible and intangible assets’ (€34 million), ‘change in the provision for employee benefits’ (€7 million), ‘effect of accounting using the equity method’ (-€16 million), and ‘other changes’ (-€6 million), indicated separately and included in cash generated from operating profit in the statutory scheme, are shown net under the item ‘depreciation/amortization and other non-monetary items’ (€627 million);
  • the items ‘income taxes’ (€392 million), ‘interest expense’ (€100 million) and ‘interest income’ (-€9 million), and, indicated separately and included in cash generated from operating profit in the statutory scheme, are shown net under the item ‘dividends, interests and taxes’ (€483 million);
  • the items regarding changes in ‘other assets and liabilities’ (-€776 million), ‘inventories’ (-€550 million), ‘trade receivables’ (€826 million), ‘trade payables’ (€286 million) and ‘provisions for contingencies’ (€40 million), indicated separately and included in cash generated from operating profit in the statutory scheme, are shown net under the item ‘changes in working capital related to operations’ (-€174 million);
  • the items ‘dividends received’ (€11 million), ‘interest received’ (€9 million), ‘income taxes paid net of refunds of tax credits’ (-€285 million) and ‘interest paid’ (-€111 million), indicated separately and included in cash generated from operating profit in the statutory scheme, are shown net under the item ‘dividends received, income taxes paid and interest paid and received’ (-€376 million);
  • the items relating to investments in ‘intangible assets’ (-€6 million) and ‘tangible assets’ (-€1,100 million), indicated separately and included in cash flow from investing activities in the statutory scheme, are shown net under the item ‘capital expenditure’ (-€1,106 million);
  • the items relating to investments in ‘shareholdings’ (€0 million) and ‘consolidated subsidiaries and businesses’ (-€93 million), indicated separately and included in cash flow from investing activities in the statutory scheme, are shown net under the item ‘Investments in shareholdings, consolidated subsidiaries and businesses’ (-€93 million);
  • the items relating to disposals of ‘tangible assets’ (€3 million), consolidated subsidiaries and businesses (€7 million) and shareholdings (€8 million), indicated separately and included in cash flow from disposals in the statutory scheme, are shown net under the item ‘disposals’ (€18 million);
  • the items ‘financing receivables’ (-€56 million) and disposals of ‘financing receivables’ (€53 million), indicated separately and included in cash flow used in investing activities in the statutory scheme, are shown under the item ‘borrowings (repayment) of debt related to financing activities’ (-€52 million), net of ‘other changes related to financing’ (€49 million);
  • the items ‘proceeds from long-term debt’ (€186 million), ‘repayments of long-term debt’ (-€117 million) and ‘increase (decrease) in short-term debt’ (-€49 million), indicated separately and included in net cash used in financing activities in the statutory scheme, are shown net under the item ‘changes in short and long-term financial debt’ (€20 million).

All other items are unchanged.