Post on 30-Sep-2020
Telecom Italia Group 1H 2014 Results
TELECOM ITALIA GROUP
1H 2014 Results
Milan, August 6th, 2014
Piergiorgio Peluso
Marco Patuano
1H 2014 Results 2
Safe Harbour
These presentations contain statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of
developments and changes in the customer base, estimates regarding future growth in the different business lines and the global business, market share,
financial results and other aspects of the activities and situation relating to the Telecom Italia Group. Such forward looking statements are not guarantees of
future performance and involve risks and uncertainties, and actual results may differ materially from those projected or implied in the forward looking
statements as a result of various factors. Consequently, Telecom Italia makes no representation, whether expressed or implied, as to the conformity of the
actual results with those projected in the forward looking statements. Forward-looking information is based on certain key assumptions which we believe to be
reasonable as of the date hereof, but forward looking information by its nature involves risks and uncertainties, which are outside our control, and could
significantly affect expected results. Analysts and investors are cautioned not to place undue reliance on those forward looking statements, which speak only
as of the date of this presentation. Telecom Italia undertakes no obligation to release publicly the results of any revisions to these forward looking statements
which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Telecom Italia business or
acquisition strategy or planned capital expenditures or to reflect the occurrence of unanticipated events. Analysts and investors should consult the Company's
Annual Report on Form 20-F as well as periodic filings made on Form 6-K, which are on file with the United States Securities and Exchange Commission
which may identify factors that affect the forward looking statements included herein.
The accounting policies adopted in the preparation of the Half-Year Condensed Consolidated Financial Statements as of and for the six months ended 30
June 2014 have been applied on a basis consistent with those adopted in the Annual Consolidated Financial Statements at 31 December 2013, to which
reference should be made, except for the new standards and interpretations adopted by the Telecom Italia Group starting from 1 January 2014 which had no
effects on the Half-Year Condensed Consolidated Financial Statements as of and for the six months ended 30 June 2014. Please note that the limited review
on the Telecom Italia Group Half-Year Condensed Consolidated Financial Statements at 30 June 2014 has not yet been completed.
Following the classification, starting from the fourth quarter 2013, of the Sofora - Telecom Argentina group as a disposal group (Discontinued operations/Non-
current assets held for sale) the consolidated financial statements data of prior periods (including the first half 2013) have been restated accordingly and
therefore the Sofora - Telecom Argentina group is no longer separately presented as a business unit.
Furthermore:
•starting from the First Quarter 2014, Organic change in Revenues, EBITDA and EBIT are determined excluding, where applicable, only the effects of the
change in the scope of consolidation and exchange differences and therefore don‟t take into account, as in the past, non-organic income and expenses,
including those non-recurring;
•starting from the Interim Report at 31 March 2014, the Domestic business unit includes the Olivetti group, in addition to Core Domestic and International
Wholesale. This different presentation reflects the commercial and business placement of the Olivetti group and the process of integrating its products and
services with those offered by Telecom Italia in the domestic market. In the past, the results of the Olivetti group were included in the “Olivetti” business unit;
as a result, the data for prior periods under comparison have been restated, accordingly.
Marco Patuano - Piergiorgio Peluso
1H 2014 Results 3
• TI 2Q’14 Results
• Financial Update
• Take-Aways
• Appendix
Agenda
Marco Patuano
1H 2014 Results 4
Service Revenues 4,871 mln €
• Organic Performance at -7.1% YoY vs -6.5% in 1Q‟14 reflects:
• Domestic trend stabilization with a consistent improvement in mobile service revenues. Good acquisition trend in Fixed & Mobile UBB;
• Slight erosion in TIM Brasil figures impacted by full MTR drag in 2Q Solid growth in Mobile Generated Revenues
• Organic improvement to -4.8%YoY vs -5.7% in 1Q‟14 driven by:
• +0.8pp in 2Q in Domestic operations (+2.5pp net of subsidy);
• Continued Sound performance of TIM Brasil
Ebitda 2,145 mln €
Innovative Capex
~250 mln €
• Constant progression in this key area:
• Italy: 83 municipalities covered with fiber, 60.5% population reached by LTE, TIM recognized by AGCOM as best network in Italy for speed in data transmission;
• Brazil: 66 cities covered by mobile BB project (+13 cities vs 1Q‟14)
OpFCF generation
1,058 mln €
• Strong Performance in 2Q‟14: +11% YoY
Marco Patuano
• Reduction of 0.2 bln € vs 1Q‟14 & -1.5 bln € vs 2Q‟13 Net debt 27,36 bln €
2Q’14 Group Highlights
1H 2014 Results 5
-7.5% -7.9% -7.3% -8.6%
1Q'13 2Q'13 1Q'14 2Q'14
Fixed Service Revenues
Domestic Service Revenues
2,913 2,664
1,311 1,138
2Q'13 2Q'14
Mo
bile
F
ixe
d
elim.
3,914 3,567
-13.3%
-8.6%
-8.9%
€ mln, %YoY
2
1
2
Marco Patuano
Domestic Service Revenues Performance
-17.9% -18.3%
-14.9%
-13.3%
1Q'13 2Q'13 1Q'14 2Q'14
Mobile Service Revenues
• Stable TI retail line losses per quarter (~140k). CB erosion due to increasing trend in carrier selection and pre-selection disconnections
• Voice Usage & ARPU erosion
• Zero support from monthly rental fee increase in 2013
• A good set of KPIs in BroadBand. Faster than expected fiber acquisition trend
• Calling CB stabilization due to lower pressure coming from competitive environment and almost zero MNP balance
• ARPU stabilization on a quarterly basis
• Double-digit growth in mobile Broadband users. Good LTE take-up
1
1H 2014 Results 6
1,347
1,177
+30 -30
-49 -24
-98
1H13 IT commercial&other IT
others subsidy 1H14
+80
-50
innovative traditional
Do
mesti
c
Cap
ex
€ mln
NG
N
LT
E
83 municipalities
+ 31 vs 1Q‟14
Innovative
capex on total:
26% +10pp vs 1H‟13
network
UBB Coverage(2)
Efficiency(1): -153 mln €
Innovative portion of
network capex: 34%
+10pp vs 1H‟13 +47% YoY
>3x vs main competitor
60,5% of pop.
+10pp vs FY‟13
higher than main competitor
Marco Patuano
a b
c
d
(1) total domestic capex efficiency=
(2) at the end of July 2014
a b c d + + +
Italy: Switching Capex to Innovation
1H 2014 Results 7
Innovative revenues on total (1)
Mo
bile B
B C
B
Fib
er
CB
net
ad
ds
6,853 7,166 8,023 8,444 8,677 9,151
0% 1% 2% 4%
5% 7%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
MBB Users % LTE on MBB Users
+4.3
+10.9
+29.8
+58.1
0.1 0.2
0.5
>1.0
3Q'13 4Q'13 1Q'14 2Q'14
Fiber CB Avg daily acquisition ('000)
>100k
clients
at the end
of June
~+30%
YoY
Investing to support the growth in
data and new services
(1) net of wholesale
„000
25% 32%
28% 32%
2Q’13 2Q’14
2Q’13 2Q’14 M
ob
ile
se
rvic
e
Fix
ed
se
rvic
e
innovative traditional
innovative traditional
Marco Patuano
Italy: New Services Demand is Catching Speed
1H 2014 Results 8
1
2
3
4
-23.3%
-17.4%
-14.9%
-13.3%
+12.9% +11.5%
-24.9% -23.5%
1Q'14 2Q'14
694 531
67
56
169
139
252
281
63
61
66
70
94
126
2Q'13 2Q'14
Outgoing voice
Incoming voice
SMS
Traditional
Broadband
VAS content
Innovative
wholesale
Service
handsets
Total
-21.9%
+8.4%
-13.3%
-10.0%
930
315
1,311
1,405
726
342
1,138
1,264
2H
Key
imp
rovem
en
t fa
cto
rs
Traditional • Outgoing ARPU
stabilization
• Zero MTR drag
• Constant recovery in
calling CB
Innovative • Increasing smartphone
penetration
• 4G uptake support
• New digital entertainment
services
Service Revenues Trend
Reven
ues
1
2
3
4
Domestic Mobile: Clear Signs of Improvement € mln, %YoY
Marco Patuano
-14.9% -13.3%
1Q'14 2Q'14 3Q'14 4Q14
+ +
1H 2014 Results 9
-19.7%
-20.7%
1Q'14 2Q'14
+0.1%
+1.8%
-4.9%
-8.4%
-6.9%
-8.3%
2H
Key
imp
rovem
en
t fa
cto
rs
Traditional • F/M traffic erosion
reduction due to
bundled offers
• Access valorisation
Innovative • Constant support from
BB CB growth
• Increased fiber
penetration and adoption
• Continued uptrend in ICT
services
Service Revenues Trend
444 352
706 647
267 232
398 402
37 38
129 134
933
859
72
73
2Q'13 2Q'14
Traditional
Broadband
VAS content
Innovative
National, Int‟le wholesale + Subs&other
Total
Outgoing
Access
Others
Service
1,416
564
2,913
2,985
1,231
574
2,664
2,737 handsets
ICT
-13.1%
+1.8%
-8.3%
-8.6%
-7.3% -8.6%
1Q'14 2Q'14 2H'14
+
ARPU
CB
1
2
3
4
Marco Patuano
Domestic Fixed: Leveraging on the Value of BB R
even
ues
1
2
3
4
€ mln, %YoY
1H 2014 Results 10
+7%
+9%
-30%
-23%
-1%
+1%
-18%
-22%
mobile
• Outgoing Voice Revenues flat
• SMS declining trend
Excellent take-up in data KPIs in 2Q
• Smartphone & webphone penetration at 62%
• Smartphones ~71% of new handset sales
\
YoY, %
+3%
ex-MTR
-2.0%
+0.3%
Total Service Revenues
Mobile & Fixed Service Revenues
Mobile Service Revenues(1)
-7%
flat
-1%
Outgoing SMS
Outgoing Voice
Traditional
+73%
+35%
+44%
Vas Content & other VAS
Data
Innovative
1Q‟14
2Q‟14
fixed(2) received
generated
1Q‟14
partially
impacted by
MTR cut
2Q‟14 fully
affected by
this year
MTR cut
Marco Patuano
(1) visitors&other revenues non included
(2) revenues based on net contribution
Brazil: Usage of Mobile Data is Rapidly Expanding
1H 2014 Results 11
Marco Patuano
Well advanced sale process:
The TIM Part tower portfolio is appealing for the market due to its further co-tenancy potential;
Sale process attracted strong interest from various highly qualified buyers;
Transaction involves more than 6.5k TIM towers;
Expected to be finalized by the end of the year.
Fits our continued leveraging on development of mobile data, increasing our 4G frequencies and roll-out:
Minimum price and cleanup costs range not yet fully defined; License period: 15 + 15 years; Payment preceded by a deposit of 10%;
No further obligations. Opportunity for network and spectrum sharing.
Italy Brazil Argentina
Transaction dependent on clear industrial driver: Market analysis still in process before project launch;
More than 10k towers potentially involved into the deal.
Merger of the digital terrestrial network operator businesses of Telecom Italia Media and Gruppo Editoriale L’Espresso finalized on June 30th:
TI Media and Gruppo L‟Espresso hold 70% and 30% of the shares of Persidera - the new name of TIMB respectively;
This transaction has resulted in the creation of the leading independent network operator in Italy, which owns five digital multiplexes with a nationwide coverage infrastructure providing high-quality services;
Disposal expected within 2014.
Tower Deal
700Mhz Auction
TI Media
Sale process in the final phase:
Waiting for the Administrative authorizations from the Local Regulatory Authorities to transfer the control of Telecom Argentina;
Buyer and seller committed to proceed.
Asset disposal
Planned Non-Core Assets Disposals Progress
Tower Deal
1H 2014 Results 12
Piergiorgio Peluso
• TI 2Q‟14 Results
• Financial Update
• Take-Aways
• Appendix
Agenda
1H 2014 Results 13
Re
ve
nu
es
2Q’14 Reported
€ mln, %YoY
Eb
itd
a
Ca
pe
x
Group Domestic
Brazil
Group Domestic
Brazil
Group Domestic
Brazil
5,363 3,803
1,558
2,145 1,709
434
1,023 684
337
Organic(1)
-10.6% -8.2%
-15.0%
-6.7% -7.5%
-4.8%
-14.5% -10.9%
-19.6%
-6.8% -8.1%
-3.4%
-4.8% -7.4%
+8.0%
-9.6% -10.9%
-7.0%
-2.0%
-4.1%
-4.2%
-2.8%
net of new SAC policy
Weight(2) €mln YoY YoY
(1) Starting from 2014, Organic performance includes only exchange rate variations and impacts from perimeter changes
(2) Including TI Media, Other & Elimination. Olivetti is included in the Domestic perimeter
Eb
itd
a -
Ca
pe
x
Group Domestic
Brazil
1,122 1,025
97
+1.7% -5.0%
+162%
+0.1% -4.9%
+164%
71%
29%
80%
20%
67%
33%
91%
9%
n.a.
n.a.
Piergiorgio Peluso
Telecom Italia 2Q’14 Results
1H 2014 Results 14
Reported data, € mln, %YoY
2Q'13 2Q'14
63
2Q'13 2Q'14
2Q'13 2Q'14
63
2Q'13 2Q'14
Total Revenues
Ebitda - Capex
Ebitda
Capex
on revenues 44.6% 44.9%
-4.2%
net of new SAC policy
1,847 1,709 -7.5% 4,141
3,803
768 684
-8.2%
-10.9% -54 1,079 1,025
-2.8%
net of new SAC policy
Piergiorgio Peluso
Domestic Performance Dashboard
1H 2014 Results 15
(1) Interconnection, Cost of Equipment, Other COGs
(2) Acquisition costs, ADV, Customer Care, Other commercial costs
(3) Industrial costs, G&A, Real Estate, Other
Volume/ Revenues Driven (1)
Market/ Customer Driven (2)
Process/ Asset Driven (3)
Labour Cost
1,423 1,440
4,030 4,407
1H14 1H13
-86
-377
-238
1,414 1,449
683 921
510 596
External Opex net of COGs
-324 mln € YoY
Solid Cost Reduction:
• Lower competition is reducing marketing expenses
• Zero-base budget G&A approach
• Facility services efficiency and rental renegotiations
• Massive energy saving program based on efficiency, technological upgrades and development of distributed power generation
Piergiorgio Peluso
1H14 Opex Reduction Overperforming FY Targets € mln
1H 2014 Results 16
1,327 1,302
284 256
2Q'13 2Q'14
40 97
2Q'13 2Q'14
361 337
2Q'13 2Q'14
401 434
2Q'13 2Q'14
Organic data*, € mln, %YoY
24.9% 27.8%
+8.0%
-3.4%
-7.0%
+57
Piergiorgio Peluso
* Excluding exchange rate
Brazil Performance Dashboard
Service
Handsets
1,558 1,611
-2.0%
Mobile Service +3% ex-MTR
1H’14 +4% YoY
Total Revenues
Ebitda - Capex
Ebitda
Capex
on revenues
1H 2014 Results 17
Group OpFCF
Domestic 2Q OpFCF
Brazilian 2Q OpFCF
306 83 OpFCF
∆WC & Others 209
46
+97 +37
2Q‟14 2Q‟13
+223
€ mln
1,044 1,017 OpFCF
∆WC &
Others
EBITDA
- CAPEX
-1,594 -1,722
2,638 2,739
1H‟14 1H‟13
+27
Piergiorgio Peluso
2Q
14
Op
FC
F 1
,05
8
753 875 OpFCF
∆WC & Others
Ebitda - Capex
-204
1,025 1,079
2Q‟14 2Q‟13
-122
-272
1H’14 Operating FCF: Focus on 2Q Improvement
-105
Fine levied
by the Italian
AntiTrust
~+60
Leasing LT
Amazonas
-146
2013 Brazilian
Frequencies
payment
Ebitda - Capex
1H 2014 Results 18
Improving our Cost of Funding
Robust and Safe Liquidity Position
Lowering Bond Yields • 10Yrs 1.5 Bln $ issued in May14 - Yield: 275bps @4.2% € Equiv
• 7Yrs 1 Bln € issued in Jan14 - Yield: 300bps @4.6%
• 7Yrs 1 Bln € issued in Sept 13 - Yield: 330bps @5.05%
Lowering costs of Bank Facilities
Amendment of 7 Bln € bank facilities (maturing in 2017/2018):
commitment fees lowered by approx. 35% with significant savings on
financial expenses (starting from August 1, 2014)
Debt maturities covered until 2017
Tenors well diversified to avoid concentration
Strict Guidelines for Liquidity and Credit position:
• High credit-quality banking and financial institutions
• Diversification policy among different banking counterparts
(limits of concentration by type of investment, sector and
counterparts)
• Deposits generally made for periods of less than 3 months
Liquidity Margin
Cash Financial Expenses
827 874
1H14 1H13
- 47
€ mln
12.8
€ bln
Cash & Cash Equivalent
Undrawn portion of committed facilities
6.5
6.3
1H‟14
Piergiorgio Peluso
Treasury Optimization
1H 2014 Results 19
Marco Patuano
• TI 2Q‟14 Results
• Financial Update
• Take-Aways
• Appendix
Agenda
1H 2014 Results 20
Domestic
• Domestic business on track with 2014-2016 Plan
• Improving trend in mobile space paving the way to a solid 2H2014
• Line losses and voice ARPU weak as expected; increasing BB ARPU and sound
fiber take-up rate leading to a better fixed revenues mix
• Continued over-performance on efficiencies with a positive impact on OpFCF Efficiency
Plan
Innovative Capex
• The take-up of innovative services shows we must keep our focus on
CAPEX for innovation
Disposal • Non-core asset disposal ongoing
Marco Patuano
• Free Cash Flow Generation well on track and debt duly managed FCF
generation
2Q’14 Group Take-Aways
Brazil • Brazilian mobile transformation to a data driven market is underway: data revenues
almost offset MTR drag and by 2016 it will account for 40% of total revenues
1H 2014 Results 21
Marco Patuano - Piergiorgio Peluso
• TI 2Q‟14 Results
• Financial Update
• Take-Aways
• Appendix
Agenda
1H 2014 Results 22
March April May June July
On-air TV
Avg. weekly acquisition trend
A well-managed growth
• Healthy acquisition
trend confirmed also
after launch phase
• More than 150k users
by mid July
Acquisition Mix: 2Q’14 vs. pre 2Q’14
new lines existing CB
mo
bile
fixe
d
stable stable
-10pp +10pp
Delta ARPU: 2Q’14 vs. pre 2Q’14
new lines existing CB
Growth
Broadly
stable Stable
Double
digit growth
mo
bile
fixe
d
TIM Smart: A Proven
Value - Accretive Proposition
Marco Patuano - Piergiorgio Peluso
«TIM Smart» Successful Story
1H 2014 Results 23
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
-28 -20
-8 -17
-41 -34
-111 -107
-178 -197
-124
-92
Jan Feb Mar Apr May June
Highlights
31,858 31,706 31,554 31,221 30,996 30,660
Active
CB
Mobile CB
• Customer base stabilization due to better
competitive environment
• Constant increase of active SIM on total CB:
• +0.7 pp in 1Q‟14 vs 1Q‟13
• +1.7 pp in 2Q‟14 vs 2Q‟13
2014
2013
TIM MNP Balance
+83 +58 +86 +169 +180 +83
Highlights
• Solid sign of healthier mobile market in Italy: -35% total MNP volume in 1H‟14 vs. 1H‟13
• Sound TIM MNP balance vs previous year: +660k clients in 1H’14 vs 1H’13
Marco Patuano - Piergiorgio Peluso
Domestic Mobile KPIs „000
1H 2014 Results 24
13,777 13,555 13,372 13,210 13,027 12,828
7,238 7,233 7,164 7,169 7,211 7,258
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
6,019 5,918 5,842 5,814 5,766 5,679
965 1,014 1,045 1,084 1,122 1,155
1 1 4 15 45 103
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Fixed Access
Broadband
ARPU 18.9 19.1 19.2 19.2 19.2 19.6
OLO
TI retail
21,016 20,788 20,536 20,378 20,238 20,085
13,913 13,910 13,867 13,960 14,084 14,187 Market BB
BB fast
„000
ADSL
Marco Patuano - Piergiorgio Peluso
Domestic Fixed KPIs
Highlights
• TI customer base erosion due to different
mix: stable contraction of TI Retail
Calling accesses confirmed (~-140k per
quarter) and constant increasing
disconnections of Calling Retail OLOs in
TI Access Base (carrier selection and
carrier preselection): -21k in 4Q‟13, -42k in
1Q‟14 and -60k in 2Q‟14
Highlights
• Solid performance in Fast BB customer base: +24% YoY @ ~1.3 mln clients
• Right mix in CB dynamic:
• +35k QoQ on Flat users • -30k QoQ on Free users
• Positive BB ARPU trend confirmed
• +2.3% YoY @ 19.6 €/month • o/w Consumer +4.1% YoY @ 17.1 €/month
1H 2014 Results 25
-12.2%
+2.8%
-12.9%
-15.0%
-14.8%
-23.9%
-1.4%
-19.0%
+16.1%
-20.3%
-65.9%
-10.0%
+5.3%
-10.9%
-14.3%
-14.1 %
-23.6%
-0.5%
-18.8%
+34.9%
-18.8%
-76.0%
1,264
78
1,186
1,060
1,011
531
480
49
126
517
14
Total
wholesale(1)
Consumer+Business
services
outgoing voice
VAS
business received
handsets
business generated(2)
(1) Including Visitors
(2) Total Retail Service Revenues net of Incoming
voice
fees&other
1,405
74
1,331
1,238
1,177
694
483
60
93
637
58
2Q’13 2Q’14 YoY 1H’14 vs 1H’13
Marco Patuano - Piergiorgio Peluso
Domestic Mobile Revenues Breakdown Reported, € mln, %YoY
1H 2014 Results 26
Reported, € mln, %YoY
Service Wireline
Sparkle group
Wholesale Domestic
Retail Service
voice & access
internet
business data
other
elim. & other
2,913 2,664 -8.6% -8.0%
313 300 -4.2% +0.8%
660 598 -9.4% -11.1%
1,981 1,808 -8.8% -8.1%
1,247 1,094 -12.3% -11.5%
403 408 +1.1% +0.5%
268 265 -1.0% -1.6%
63 41 -34.9% -25.2%
(41) (42) n.m. n.m.
Total Wireline 2,985 2,737 -8.3% -7.6%
Marco Patuano - Piergiorgio Peluso
products 72 73 +1.9% +10.4%
Domestic Fixed Revenues Breakdown
2Q’13 2Q’14 YoY 1H’14 vs 1H’13
1H 2014 Results 27
814
1,383
909
947
1,040
1,147
1,611
7,851 6,500
387
1,882
1,880
2,936
2,232
3,042
10,800
23,159
6,347
1,500
1,500
12,847
2,701
3,265
2,789
3,883
3,272
4,189
12,411 32,510
Liquiditymargin
Within 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Beyond 2019 Total M/LTerm Debt
Liquidity Margin
€ 32,510 mln is the nominal amount of outstanding medium-long term debt. Adding by Mandatory Convertible Bond (€ 1,300 mln), discontinued operations (€ 27 mln), IAS adjustments (€ 710 mln) and current financial liabilities (€ 442 mln), the gross debt figure of € 34,989 mln is reached.
N.B. Debt maturits are net of € 1,745 mln (face value) of repurchased (of which € 987 in the 2013 and € 543 in the 2014) own bonds (of which € 1,530 mln related to bonds due within 2016).
Loans (of which long-term rent, financial and operating lease payable € 1,200)
Drawn bank facility Bonds
Debt Maturities
Undrawn Portion of Facility/Committed
Group Liquidity Position (Ex. Disc. Ops)
Fully Covered
until 2017
Marco Patuano - Piergiorgio Peluso
Robust Liquidity Margin and Well-Distributed Debt Maturities
€ mln € mln
1H 2014 Results 28
N.B. The figures are net of the adjustment due to the fair value measurement of derivatives and related financial liabilities/assets, as follows:
- the impact on Gross Financial Debt is equal to 2,457 mln € (of which 724 mln € on bonds)
- the impact on Financial Assets is equal to 978 mln €
Therefore, the Net Financial Indebtedness is adjusted by 1,479 mln €
Total Gross Debt net of Adjustment: Euro 34,989 mln
Gross debt 34,989 (of which 28 mln disc. Operations)
Financial assets (7,226)
of which Cash & CE and marketable securities (6,347)
Cash & Cash Equivalent (4,983)
Marketable securities (1,364)
Italian Government Securities (1,045)
Other (319)
Discontinued operations (405)
Net Financial Position 27,358
Maturities and Risk Management
Cost of debt:
5.5%
Average debt maturity: 7.16 years
(bond only 8.09 years)
Fixed rate portion on gross debt approximately
67.3%
Around 40% of outstanding bonds (nominal amount)
is denominated in USD, GBP and YEN and is fully
hedged
€ mln
Marco Patuano - Piergiorgio Peluso
Well-Diversified and Hedged Debt
1,462 Bank Facilities 16.9%
4.7%
1,677 Other
5,898 Banks & EIB
1,216 Op. leases and long
24,708 Bonds
4.2%
3.5%
28
Discontinued operations
0.1%
70.6%