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) | Revenues | EBITDA | Industrial investments | Headcount 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) | 2015 | 2014 | 2013 |
|---|---|---|---|
| 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) | 2015 | 2014 | 2013 |
|---|---|---|---|
| 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.