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Current Financial Assets
A breakdown of current financial assets, which totaled 76 million euros, is as follows:
 

(in millions of euros) 12/31/05 12/31/04 Change
Equity investments held for trading 29 29 -
Loans receivable 3 11 (8)
Bank deposits in project financing transactions - 26 (26)
Derivatives 44 21 23
Total current financial assets 76 87 (11)
 
All of the items listed above have an impact on the Group's net financial position. A review of these financial assets is provided below:
 
Equity Investments Held for Trading
These investments in publicly traded companies are classified as held for trading, as required by the IFRSs. They include the following: AMGA Spa (16 million euros), ACEA Spa (3 million euros), ACEGAS Spa (5 million euros) and ACSM Spa (3 million euros). The valuation of these investments at fair value did not produce significant gains or losses.
 
Derivatives Recognized as Current Assets
The table below provides a breakdown of receivable recognized on the balance sheet to reflect the fair value measurement in accordance with IAS 39 of derivatives outstanding at December 31, 2005:
 

(in millions of euros) 12/31/05
Foreign exchange transactions 3
Interest rate transactions 31
Commodities transactions 33
Fair value recognized in current assets 67
allocated as follows:
- to Other receivables 23
- to Current financial assets 44
 
Receivables of 44 million euros that were recognized as current financial assets include 34 million euros for the fair value of interest rate and foreign exchange transactions and 10 million euros for the fair value of commodity transactions.
The portion of these receivables that represents cash flow hedges is offset by a reserve included in shareholders' equity.
 
Cash and Cash Equivalents
Cash and cash equivalents of 361 million euros include short-term bank and postal account deposits totaling 271 million euros and 90 million euros in readily marketable securities held by Edison Treasury Services.
 
Securitization Transactions Pursuant to Law No. 130/99
The turnover of assigned receivables assigned to Edison Treasury Services Srl in 2005 amounted to 1,801 million euros.
Because Edison Treasury Services Srl is consolidated line by line, as required by the IFRSs, all transactions with this company have been eliminated.

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Liabilities and Shareholders' Equity
 
11. Shareholders' Equity
The Group's interest in shareholders' equity amounted to 6,270 million euros, or 563 million euros more than at December 31, 2004.
The table below provides a breakdown of this item and shows the changes that occurred in 2005:
 

(in millions of euros) Share Addition. Reserve for Reserve for Reserve Consolid. Retained Group Group
capital paid-in treasury public for currency reserve earnings interest interest
    capital stock grants and translat   (Loss in net in share-
        investments     carry- profit holders'
        planned     forward) (loss) equity
        pursuant to law          
Balance at December 31, 2003 4,212 80 2 20 - 1,413 (595) 144 5,276
Appropriation of the 2003 result - (80) - - - - 224 (144) -
Capital increase due to the                  
conversion of warrants 47 - - - - - - - 47
Other changes - - - - - 30 - - 30
Group interest in the                  
2004 result - - - - - - - 354 354
Balance at December 31, 2004 4,259 - 2 20 - 1,443 (371) 354 5,707
Adoption of IAS 39, broken down as follows:                  
- impact at January 1, 2005 - - - - - 38 - - 38
- impact 1.1 - 12.31.05 - - - - - 11 - - 11
Appropriation of the 2004 result - - - - - 41 313 (354) -
Capital increase due to the                  
conversion of warrants 7 - - - - - - - 7
Capital increase due to the award
of stock options 7 4 - - - - - - 11
Difference on the translation of financial                  
statements in foreign currencies
and sundry changes - - (2) - 3 (5) - - (4)
Group interest in the                  
2005 result - - - - - - - 500 500
Balance at December 31, 2005 4,273 4 - 20 3 1,528 (58) 500 6,270
 
The amounts shown for Share capital, Additional paid-in capital, Reserve for public grants and for investments planned pursuant to Law No. 488/92 and Retained earnings reflect the balances that these accounts have on the annual financial statements of Edison Spa, the Group's Parent Company.
At December 31, 2005, the subscribed and paid-in capital stock of Edison Spa totaled 4,273 million euros. It consisted of shares with a par value of 1 euro, regular ranking for dividends, and was broken down as follows:

Share class Number of shares Millions of euros
Common shares 4,162,515,334 4,162
Nonconvertible savings shares 110,592,420 111
Total shares 4,273,107,754 4,273
 
The aggregate value of share capital and additional paid-in capital increased by bout 17 million euros, reflecting the issuance of shares in connection with the exercise of 6,961,601 warrants and the exercise of options awarded under the Company's stock option plan, which resulted in the issuance of 7,258,187 additional common shares. A total of 1,018,648,623 warrants were outstanding at December 31, 2005. Each warrant can be exercised until December 2007, to subscribe one new share at a price of 1 euro per share. No change affected the savings shares.