16 consolidated annual accounts 05 CONSOLIDATED CASH-FLOW STATEMENTS IN THE YEARS ENDED ON 31 DECEMBER 2005 AND 2004 (Thousand euros) (*) Included for the sake of comparison (see Note 2.4) Note Year 2005 Year 2004 1. OPERATING ASSETS Consolidated profit /(loss) before taxes 88,226 91,483 Adjustments to profit: Depreciation and amortisation of tangible and intangible assets (+) 68,101 62,019 Losses on asset impairment  (net) (+/-) 27.6 799 15,288 Provisions (net) (+/-) 27.4 878 392 Profit and loss on sale of tangible and intangible assets  (+/-) (2,689) 2,455 Profit and loss of companies consolidated using the equity method (+/-) 10 649 550 Financial Income (-) 27.2 (9,961) (11,373) Interest expense (+) 27.7 35,188 36,832 Other non-cash items (+/-) Adjusted profit /(loss) 181,191 197,646 Net change in assets / liabilities: (Increase)/Decrease in inventories 12 (13,383) (3,669) (Increase)/Decrease in trade debtors and other accounts receivable (42,790) 8,427 (Increase)/Decrease in other current assets (1,538) 1,822 Increase/(Decrease) in trade creditors 24 20,627 (6,920) Increase/(Decrease) in other current liabilities 38,031 (17,379) Increase/(Decrease) in provisions for charges and liabilities 22 (40,773) (16,622) Income taxes paid (16,573) (20,680) Total net cash flows from operating activities (I) 124,792 142,625 2. INVESTMENT ACTIVITIES Financial income 27.2 9,961 11,373 Capital expenditure (-): Group and associated companies and joint ventures (59,455) - Tangible and intangible assets and property investments (145,494) (93,850) Permanent investments (55,437) (25,031) Investments and other current financial assets 14.2 (723) (21,728) Other assets - (9,449) (261,109) (150,058) Divestments (+): Group and associated companies and joint ventures 5,967 27,922 Tangible and intangible assets and property investments 16,736 3,249 Permanent investments 11.1 and 11.2 10,458 628 Investments and other current financial assets 37,778 793 Other assets 7,048 1,670 77,987 34,262 Total net cash flows from investing activities (II) (173,161) (104,423) 3. FINANCING ACTIVITIES Dividends paid (-) (29,882) (29,882) Pre-paid interest on debt (-) (36,388) (37,564) Changes in (+/-): Equity instruments - Reserves 23,518 (2,304) - Minority interests (25.754) (6.401) Liability instruments (+/-): - Bank loans and overdrafts 128,582 32,244 - Leasing 19 (13,468) (616) - Debenture loans and other traded securities 17 (25) (22) - OTHER LONG-TERM LIABILITIES (3,926) (22,603) Total net cash flows from financing activities (III) 42,657 (67,148) 4. GROSS INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (I+II+III) (5,712) (28,946) 5. EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH OR CASH EQUIVALENTS (IV) 743 (627) 6. NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (I+II+III+IV) (6,455) (28,319) 7. CASH OR CASH EQUIVALENTS AT BEGINNING OF THE YEAR 23,751 52,697 8. CASH OR CASH EQUIVALENTS AT END OF THE YEAR (7+4) 18,039 23,751