operating performance and financial position of edison Spa
Reclassified Statement of Income
    FY 2005 FY 2004
A. Sales revenues 4,065 3,303
  Other revenues and income 144 81
  Net revenues 4,209 3,384
Change in inventory of work in progress,
  semifinished goods and finished goods 13 48
  Increase in Company-produced additions to fixed assets 6 16
B. Production value 4,228 3,448
  Raw materials and outside services (-) (3,476) (2,611)
C. Value added 752 837
  Labor costs (-) (128) (118)
D. EBITDA 624 719
  Depreciation, amortization and writedowns (-) (413) (403)
E. EBIT 211 316
  Net financial income (expense) (165) (211)
  Dividends 228 374
  Upward adjustments (Writedowns) of financial assets (38) (216)
F. Income (loss) before extraordinary items and taxes 236 263
  Exraordinary income (expense) 82 56
G. Income (loss) before taxes and minority interest 318 319
  Income taxes 33 (7)
H. Net income (loss) 351 312
Reclassified Balance Sheet
    12/31/05 12/31/04
A. Fixed assets    
  Intangibles 2,836 3,017
  Property, plant and equipment 3,130 2,932
  Financial fixed assets 2,728 2,887
    8,694 8,836
B. Net working capital    
  Inventories 211 212
  Trade accounts receivable 942 615
  Other assets 763 713
  Trade accounts payable (-) (886) (595)
  Other liabilities (-) (258) (309)
  Reserves for risks and charges (-) (897) (963)
    (125) (327)
C. Invested capital, net of operating liabilities (A+B) 8,569 8,509
D. Reserve for employee severance indemnities (-) (40) (37)
E Net invested capital (C+D) 8,529 8,472
Covered by:
F. Stockholders' equity 4,589 4,221
G. Net (borrowings) financial assets    
  Long-term debt 3,077 3,021
  Long-term loans receivable (19) (269)
    3,058 2,752
  Short-term debt 1,385 1,531
  Liquid assets and short-term loans receivable (-) (503) (32)
    882 1,499
  Total net (borrowings) financial assets 3,940 4,251
H. Total coverage sources (F+G) 8,529 8,472
Statement of Changes in Net Financial Position
    FY 2005 FY 2004
A. Net borrowings at beginning of period (4,251) (4,691)
  EBITDA 624 719
  Change in operating working capital(1) (27) (15)
  Taxes paid (-) (26) (5)
  Change in other assets (liabilities) (40) 707
B. Cash flow - Operating activities 531 1.406
Investments in intangibles, property, plant and equipment,
and financial fixed assets (-) (635) (1,061)
Proceeds from the sale of intangibles, property, plant
  and equipment, and financial fixed assets 417 173
  Dividends received 145 369
C. Free cash flow 458 887
  Net financial expense (165) (214)
  Contributions of capital stock and reserves 18 48
  Dividends declared (-) - (281)
D. Net casg flow for the period 311 440
E. Net borrowings at end of period (A+D) (3,940) (4,251)
(1) Inventories + trade receivables - trade payables.