Edison

NET FINANCIAL DEBT

At March 31, 2010, net financial debt totaled 3,970 million euros, or 112 million euros more than the 3,858 million euros owed at December 31, 2009. The change reflects the positive impact of the cash flow from operations, which offset in part outlays for capital expenditures (161 million euros) and net financial expense (25 million euros).
The table that follows presents in simplified form a breakdown of net financial debt at March 31, 2010 and at December 31, 2009:

Profile of Gross Financial Debt at 3/31/10 (amounting to €4,898 mln)
(millions of euros)

	03.31.2010	12.31.2009	Change
Long term financial debt
Bonds - non current portion	1,696	1,199	497
Non-current bank loans	1,559	2,138	(579)
Amounts due to other lenders-non current portion	52	46	6
Other non current financial assets (*)	(81)	(79)	(2)
Total long term financial debt	3,226	3,304	(78)
Short term financial debt
Bonds - current portion	748	721	27
Current loans payable	843	611	232
Current financial assets	(50)	(30)	(20)
Loans payable of divested operations	(797)	(748)	(49)
Total short term financial debt	744	554	190
Net financial debt	3,970	3,858	112

(*) Includes the long-term portion of financial receivables, as required by the adoption of IFRIC 4.

Medium/Long-term financial debt was down slightly compared with the end of 2009 (-78 million euros) as the net result of the following offsetting transactions:
- An increase in the non-current portion of bonds payable, due to a new issue of five-year bonds with a face value of 500 million euros floated in March 2010; and
- A decrease in non-current bank debt corresponding to the full amount (600 million euros) of a three-year bank facility provided to Edison on a Club Deal basis in May 2009. A portion of this facility, amounting to 300 million euros, was repaid in March 2010 and the balance of 300 million euros was reclassified as current debt ahead of its early repayment in April 2010.

The reclassification as current debt of the 300-million-euro portion of the Club Deal facility ahead of its early repayment in April 2010 is the main reason for the increase of 190 million euros in short-term debt.
Bonds issued by Edison Spa in 2003 that mature in 2010 are also being carried as short-term debt since December 2009.

The transactions described above produced a significant change in the Group’s debt profile, mainly by providing a better mix of bank and bond market financing.