Cash flow statement

CONSOLIDATED CASH FLOW STATEMENT

(in thousands of euro)  Note (*) FY 2008 FY 2007
A) CASH FLOWS FROM ORDINARY ACTIVITIES      
Profit for the year attributable to the shareholders of the parent (20) 16,111 27,694
Adjustments for:      
Dividends received   (21) (305)
Depreciation of property, plant and equipment (1) 11,067 13,154
Amortization of intangible assets (3) 15,226 19,077
Impairment of other fixed assets and goodwill (39) 5,197 -
Impairment of non-current assets (42) (43) 2,687 -
(Gain) loss on sale of property, plant and equipment (40) 78 (28)
(Gain) loss on sale of intangible assets (40) (73) (161)
(Gain) loss on sale of business areas (40) (13) (133)
(Gain) loss on sale of available-for-sale financial assets   - (13,271)
Increase (decrease) in provisions for risks and charges (23) (1,636) (142)
Increase (decrease) in employee benefits (22) (31) (6,606)
Increase (decrease) in deferred tax assets/liabilities (8) (13,269) (1,981)
Annual installment of substitute tax on tax-/financial-reporting alignment   1,457 -
Income statement effects of acquisitions   (22) -
Net financial (income) expenses   (10,208) (2,680)
Cash flows from ordinary activities prior to change in net working capital   26,550 34,618
(Increase) decrease in inventories (9) 1,414 (4,241)
(Increase) decrease in trade receivables (10) (24,877) (12,542)
Increase (decrease) in trade payables (27) (16,716) 2,165
Income taxes paid   (13,729) (18,422)
(Increase) decrease in other assets/liabilities   6,341 35,284
Changes in net working capital   (47,567) 2,244
TOTAL CASH FLOWS FROM ORDINARY ACTIVITIES (A)   (21,017) 36,862
B) CASH FLOWS USED IN INVESTING ACTIVITIES      
Dividends received   21 305
Proceeds on sale of property, plant and equipment   152 527
Proceeds on sale of intangible assets   188 1,265
Proceeds on sale of business areas   13 133
Proceeds on sale of available-for-sale financial assets   - 13,805
Investments in property, plant and equipment (1) (13,422) (7,161)
Investments in intangible assets (3) (12,864) (8,830)
Other changes in property, plant and equipment   - 253
Other changes in intangible assets   - 146
Other increases in goodwill (2) (500) (18)
Purchase of investments in associates (4) (420) (2,071)
Purchase of investments in subsidiaries (45) (45,424) (50,311)
Other decreases (increases) in investments in associates   (104) 126
Other decreases (increases) in other non-current assets and liabilities   (728) 1,792
Purchases of available-for-sale financial assets (5) (300) (1,698)
Other decreases (increases) in held-for-sale financial assets   - 19
TOTAL CASH FLOWS USED IN INVESTING ACTIVITIES (B)   (73,388) (51,718)
       
FREE CASH FLOWS (A + B)   (94,405) (14,856)
C) CASH FLOWS USED IN FINANCING ACTIVITIES      
Dividends paid (19) (13,911) (18,666)
Registering (repayment) of long-term bank loans (21) (3,133) (2,438)
Change in other non-current financial assets (6) (1,240) (625)
Change in financial assets/liabilities held for trading (26) 812 (57)
Net financial interest received   10,208 2,680
Proceeds from increase in capital and reserves   - 192,040
Change in equity attributable to minority interests   (97) (797)
Other changes in reserves   8,492 (46)
TOTAL CASH FLOWS USED IN FINANCING ACTIVITIES (C)   1,131 172,091
       
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C)   (93,274) 157,235
OPENING CASH AND CASH EQUIVALENTS   238,573 81,338
CLOSING CASH AND CASH EQUIVALENTS   145,299 238,573
INCREASE (DECREASE) OF THE YEAR   (93,274) 157,235

(*) Section 11 of the explanatory notes (notes to the financial statements)

As required by CONSOB (the Italian securities & exchange commission) resolution no. 15519 of 27 July 2006, the effects of related-party transactions on the balance sheet, income statement, and cash flow statement of the parent, Il Sole 24 ORE S.p.A., are reported in Section 13.5 and detailed in Section 13.2.