Report 2010 - Italcementi Group

2010 Annual Report
Presentazione 6
Consolidated Annual Report Directors’ report 27
Corporate Governance Consolidated financial statements Financial statements 68
Italcementi S.p.A. financial statements Notes 73
Annexes 142
Report of the Independent Auditors 151
30. Finance income (costs), net exchange-rate differences and derivatives
Finance costs net of finance income, net exchange-rate differences and net derivatives were as follows:
2010 2009
(in thousands of euro) Income Costs Income Costs
Interest income 27,984 22,391
Interest expense (135,260) (124,732)
Sub total 27,984 (135,260) 22,391 (124,732)
Net interest in respect of net financial position (107,276) (102,341)
Dividends and other income
from equity investments, net 30,082 4,931
Other finance income 8,619 6,330
Other finance costs (26,584) (6,980)
Total finance income (costs) 66,685 (161,844) 33,652 (131,712)
Gains/(losses) on interest-rate derivative contracts (3,945) (307)
Gains/(losses) on exchange-rate derivative contracts 1,141 (19,593)
Net exchange-rate differences 7,327 11,089
Net exchange-rate differences and derivatives 4,523 - - (8,811)
Total finance income (costs), net exchange-rate
differences and derivatives (90,636) (106,871)
Net finance costs, not considering net exchange-rate differences and derivatives, amounted to 95.2 million euro
(98.1 million euro in 2009); the amount includes net costs of 21.4 million euro relating to the buyback of the US
Private Placement notes, of which 15.9 million euro in respect of the net financial position. Net of this nonrecurring
item, net finance costs in respect of net debt amounted to 91.3 million euro; the decrease compared
with 2009 arose as a result of the reduction in interest rates and lower average debt in 2010.
In 2010 “Dividends and other income from equity investments, net” included the capital gain of 18.6 million euro
on the sale of Mediobanca.
Capitalized finance costs amounted to 8.4 million euro in 2010 (16.3 million euro in 2009).
31. Income tax expense
Income tax expense for the year was 62,087 thousand euro, as follows:
(in thousands of euro) 2010 2009 Change
Current tax (110,518) (122,220) 11,702
Deferred tax 44,242 17,561 26,681
Prior-year tax and net non-recurring tax items 3,973 10,084 (6,111)
Tax from change in tax rate 216 350 (134)
Total (62,087) (94,225) 32,138
In Italy, the IRES income tax rate applied by the parent company on estimated taxable income for the year was
27.5%, as in 2009. Taxes for Group companies in other countries are calculated using local tax rates.
The reconciliation between the tax charge reflected in the income statement and the theoretical tax charge
does not consider IRAP, since IRAP uses a taxable base other than profit before tax.
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