Net financial debt

Net financial debt was € 2,790,231 thousand at 30 June 2009, falling € 291,785 thousand compared to 31 December 2008.
Net financial debt differs from ”book value” of net financial debt (described below) since it includes transaction cost for the inception and refinancing medium and long-term Senior debt through The Royal Bank of Scotland Plc Milan Branch, the Subordinated loan from Lighthouse International Company S.A., and the cost of starting the securitisation of receivables. These costs, net of those already amortised, totalled € 69,387 thousand at 30 June 2009.

Net financial debt does not include the market value of cash flow hedge contracts still open at period end and of those closed early but with effect deferred to subsequent periods. At 30 June 2009 this was a total net liability of € 32,272 thousand (a € 10,931 thousand net liability at 31 December 2008).

The graph below shows the main items causing the change in net financial debt in the first half of 2009.