2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 30
Sustainability disclosure Italcementi S.p.A. Annual Report Consolidated financial statements 63
Extraordinary session 351
In Italy, the IRES rate applied by the parent on estimated taxable income for the year was 27.5%, as in 2011.
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.
The reconciliation between the theoretical tax charge, determined using theoretical tax rates applicable in Italy,
and the effective tax charge reflected in the income statement is set out below:
(in thousands of euro) 2012
Consolidated profit before tax (224,224)
Applicable IRES tax rate % 27.5%
Theoretical tax charge (61,662)
Effect of difference between parent tax rate and tax rate for the other companies (1) 7,335
Effect of tax rate reduction for tax relief/allowances (13,426)
Tax effect on permanent differences 86,507
Net effect for the year of unrecognized deferred taxes on temporary differences (2) 94,102
Effect of change in tax rates -
Withholdings at sources 4,716
Effect of change in estimate on previously recognized / unrecognized deferred tax 29,602
Other taxes (2)
Tax on profit for the period reflected in income statement, excluding IRAP (a) 147,172
Effective tax rate, excluding IRAP and other tax items not related to the period's income
Other tax items not related to the period's income (b) (3,573)
IRAP (c) 2,569
Tax on profit for the period reflected in income statement (a+b+c) 146,168
Effective tax rate
n.s.
n.s. = not significant
(1) The difference between the Italian tax rate for the parent and the rates in the foreign countries where the Group operates refers mainly to
France, Belgium and the USA.
(2) Refers mainly to unrecognized deferred tax assets on losses for the period in Italy, the USA and Spain.
32. Profit (loss) relating to discontinued operations
Afyon – Turkey
On May 31, 2012 the Group sold the Turkish company Afyon to third parties; the net sale price of 24.2 million
euro generated a consolidated net gain of 0.2 million euro.
Fuping Cement – China
On June 26, 2012 the Group sold its entire interest in Fuping Cement to West China Cement, a holding listed
in Hong Kong, against a reserved capital increase for a share of approximately 6.25%; the market value of the
West China Cement shares on the sale date was 44.0 million euro, the transaction generated a consolidated
net gain of 12.8 million euro.
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