The following table shows the composition of and changes in net financial debt:
| Milions of euro | |||
|---|---|---|---|
| at Dec. 31, 2018 | at Dec. 31, 2017 | Change | |
| Long-term debt: | |||
| - bank borrowings | 1,048 | 1,039 | 9 |
| - bonds | 8,208 | 8,541 | (333) |
| - debt assumed and loans from subsidiaries | 4,141 | 1,200 | 2,941 |
| Long-term debt | 13,397 | 10,780 | 2,617 |
| - financial receivables due from others | (128) | (6) | (122) |
| Net long-term debt | 13,269 | 10,774 | 2,495 |
| Short-term debt/(liquidity): | |||
| - short-term portion of long-term borrowings | 806 | 3,654 | (2,848) |
| - short-term bank borrowings | 45 | 245 | (200) |
| - cash collateral received | 240 | 256 | (16) |
| Short-term debt | 1,091 | 4,155 | (3,064) |
| - short-term portion of long-term financial receivables | (1) | (1) - | |
| - short-term portion of loans assumed/granted | - | (27) 27 | |
| - other short-term financial receivables | (12) | 1 | (13) |
| - cash collateral paid | (1,253) | (2,074) | 821 |
| - net short-term financial position with Group companies | 4,403 | 2,912 | 1,491 |
| - cash and cash equivalents and short-term securities | (2,007) | (2,489) | 482 |
| Net short-term debt/(liquidity) | 2,221 | 2,477 | (256) |
| NET FINANCIAL DEBT | 15,490 | 13,251 | 2,239 |
Net financial debt at December 31, 2018, amounted to €15,490 million, an increase of €2,239 million, the result of an increase in the net long-term debtor position of €2,495 million, partly offset by a decrease of €256 million in net short-term financial debt.
The main transactions in 2018 impacting financial debt can be summarized as follows:
- a net decrease of €333 million in bonds due to implementation of the bond portfolio restructuring program, by way of the renegotiation and concomitant new issue of hybrid bonds in May;
- the increase, compared with the amount recognized at December 31, 2017, of long-term loans from subsidiaries, in particular the loan agreements between Enel SpA and Enel Finance International NV signed in June and December for a total of €2,250 million, as well as the loan from the same company following the merger of the subsidiary Enel Holding Chile Srl in the amount of €691 million;
- the decrease of €2,848 million in the short-term portion of long-term loans due to redemptions of bonds maturing during the year, partially offset by new issues that matured;
- a decrease of €200 million in short-term bank borrowings;
- a decrease in cash collateral paid to banks in the amount of €821 million;
- an increase of €1,491 million in the net debtor position with Group companies on the intercompany current account.
Cash and cash equivalents amounted to €2,007 million, a decrease of €482 million compared with December 31, 2017, reflecting normal operations related to the centralized treasury functions performed by the Parent Company.
Cash flows
| Milions of euro | |||
|---|---|---|---|
| 2018 | 2017 | 2018-2017 | |
| Cash and cash equivalents at the start of the year | 2,489 | 3,038 | (549) |
| Cash flows from operating activities | 3,449 | 2,465 | 984 |
| Cash flows from investing/disinvesting activities | (2,587) | (48) | (2,539) |
| Cash flows from financing activities | (1,344) | (2,966) | 1,622 |
| Cash and cash equivalents at year end | 2,007 | 2,489 | (482) |
Cash flows from financing activities came to a negative €1,344 million (€2,966 million in 2017). They reflected the repayment of bonds and the payment of dividends for 2017 (€2,410 million).
Cash flows from investing activities were a negative €2,587 million (€48 million in 2017), and were essentially generated by the net effect of the operation involving Enel SpA’s acquisition of the investments held by Enel Investment Holding BV, a wholly owned Dutch subsidiary, in the Romanian companies, in Enel Russia and RusEnergoSbyt and in the Dutch company Enel Insurance NV, as well as the recapitalization of the subsidiaries e-distribuzione SpA and Enel X Srl.
The cash requirements generated by financing and investing activities were funded by cash flows generated by operating activities (a positive €3,449 million, compared with €2,465 million in 2017), essentially reflecting dividends received from subsidiaries (€3,510 million) and the use of cash and cash equivalents, which at December 31, 2018 consequently amounted to €2,007 million (€2,489 million at the start of the year).
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