KEY ECONOMIC PERFORMANCE DATA AND ECONOMIC VALUE GENERATED AND DISTRIBUTED

The Group aims to achieve a balance between the three dimensions of sustainability:

  • environmental: maintaining the function of ecological systems, ensuring a balance between the use of natural resources and the company’s activities;
  • social: promoting the principle of fairness between generations and within the same generation;
  • economic: maintaining and increasing capital.

[G4-9] The Group reports on what it does to achieve this objective in the sustainability Report, which focuses primarily on environmental and social sustainability, as well as aspects that are both of a social and economic nature (e.g. customer care and innovation management) and the Annual Financial Report, which discusses the Group’s economic performance in detail. In order to give a comprehensive view of the Group’s sustainability, we have provided some summary data of economic performance below, which are drawn from the Annual Report.

Telecom Italia Group – Main economic, financial and operational data by Business Unit

(million euros)RevenuesEBITDAIndustrial investmentsHeadcount at year-end
BU 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013
Domestic 15,001 15,303 16,388 5,567 6,998 7,741 5,086 2,783 3,031 52,644 53,076 53,377
Brazil 4,636 6,244 6,945 1,449 1,774 1,812 1,626 2,195 1,349 13,042 12,841 12,140
Media 82 71 124 37 25 (2) 8 6 20 64 89 84
Other activities 49 - - (51) (12) (15)   - - 117 19 22
Adjustments and eliminations   (50)  (45) (50)   2 1 4   - -   -   - - -
Consolidated total 19,718 21,573 23,407 7,004 8,786 9,540 6,720 4,984 4,400 65,867 66,025 65,623
 

[G4-9] The distribution of revenue by product and service is shown in Note 25 of the Telecom Italia Group’s consolidated financial statements.

Telecom Italia Group - Other consolidated economic and financial data

  (million euros) 31.12.2015 31.12.2014 31.12.2013
Total net equity 21,542 21,699 20,186
  -attributable to Parent Company Shareholders 17,819 18,145 17,061
  -attributable to minority shareholdings 3,723 3,554 3,125
Profit (loss) for the financial year attributable to Parent Company Shareholders 168 1,350 (674)
Profit (loss) for the financial year attributable to Minority Shareholdings 729 610 436
Net financial accounting debt 28,475 28,021 27,942
         

[G4-9] The trend in the Group’s capitalisation and debt is shown in the Report on Operations of the Telecom Italia Group.

[G4-9] The following table shows one of the Group’s key management data figures: the trend in fixed and mobile telephone service access lines.

Telecom Italia Group – Main operational data by Business Unit

(thousands)/Year-end figures 31.12.2015 31.12.2014 31.12.2013
DOMESTIC FIXED
  Physical connections 19,209 19,704 20,378
  Broadband connections 8,890 8,750 8,740
DOMESTIC MOBILE    
  Number of lines 30,007 30,350 31,221
BRAZIL    
  Number of lines 66,234 75,721 73,431
         

[G4-EC1] The economic value generated and distributed to stakeholders is shown below. Since 2008, the method of presentation recommended by the GRI has been adopted, with appropriate adaptation.

Telecom Italia Group – Economic value generated and distributed

(million euros)201520142013
Direct economic value generated    
a) Total revenue and operating income 20,005 21,974 23,731
b) Interest payable and dividends paid 216 228 149
c) Net gains (losses) on disposals of non-current assets 336 29 (82)
d) Direct economic value generated (a+b+c) 20,557 22,231 23,798
Economic value distributed    
e) Operating costs 9,296 9,951 10,976
f) Employee costs 3,589 3,119 3,087
g) Shareholders and providers of capital 2,291 2,259 2,508
h) Taxes and duties 532 852 961
i) Economic value distributed (e+f+g+h) 15,708 16,181 17,532
Economic value retained (d-i) 4,849 6,050 6,266
Wages and salaries 2,296 2,202 2,183
Social security costs 834 801 788
Other expenses 459 116 116
Employee costs 3,589 3,119 3,087
Purchases of materials and services 8,533 9,430 10,377
Other operating costs(*) 1,375 1,057 1,190
Change in inventories 44 52 (48)
Internally generated assets (656) (588) (543)
Operating costs 9,296 9,951 10,976
Dividends distributed 262 319 595
Interest payable 2,029 1,940 1,913
Shareholders and providers of capital 2,291 2,259 2,508
Income taxes 416 734 833
Indirect taxes and duties 116 118 128
Taxes and duties 532 852 961
- regarding Domestic BU 381 724 826
- regarding Brazil BU 121 122 126
- regarding activities abroad/other 30 6 9

(*) Mainly includes write-downs and charges connected with the management of non-financial credits of 345 million euros (375 million euros in 2014), risk provisions equal to 330 million euros (84 million euros in 2014), and contributions and fees for the performance of TLC activities of 342 million euros (449 million euros in 2014) net of “Indirect taxes and duties” of 116 million euros (118 million euros in 2014) included in the item “Taxes and duties”.                  

Telecom Italia Group – Contribution to the community

(million euros)201520142013
Distribution of contribution    
Charity 0.3 0.9 1.8
Investments in the community 17.6 7.1 23.3
Initiatives in the community1 9.4 14.5 21.5
Total 27.3 22.5 46.6
     

The contribution to the community is calculated according to the London Benchmarking Group (LBG) guidelines. The calculation has been done using management data partly based on estimates.

More than 150 major international companies subscribe to the LBG, which was founded in 1994 and is the global gold standard for the classification of voluntary contributions made by companies in favour of the community.

In line with the LBG model, in order to measure and represent the Group’s commitment to the community, the contributions paid out have been subdivided into three categories (donations, investments in the community, initiatives for the community). In the first, the charitable spirit prevails, the third includes initiatives that combine a benefit to the community with a commercial interest on the part of the Company. For further information regarding the LBG model and its investment classification criteria on the three levels, see the sustainability section of the telecomitalia.com website and the lbg-online. net website.

Telecom Italia Group – economic shared value CSV projects

The estimate of economic shared value generated by the 17 CSV projects during 2015, in Italy, was over 12 billion euros. The details of the values of the individual projects are given in the corresponding chapters.

1 Among the initiatives for the community worth note: the Junior TIM Cup, a joint project with the CSI - Centro Sportivo Italiano - and Lega Serie A to promote football in parish youth centres and reflect on delicate issues such as cyber bullying and digital well-being; TIM Guarda Avanti, an initiative for talking to young people about their future and making them aware of the danger of using mobile phones while driving; the VOLLEY TIM CUP promoting ladies’ volleyball and team sports as a way of building a sense of loyalty and belonging to a group, whether sports or equivalent, which characterises their daily routine and helps their physical, civil, social and cultural growth.