2012 Annual Report - Italcementi Group

2012 Annual Report
Presentation 4
General information 14
Annual Report Consolidated Annual Report Directors’ report 146
Sustainability disclosure Italcementi S.p.A. Annual Report Separate financial statements 241
Extraordinary session 351
derivatives to reduce the risk of fluctuations in interest rates and exchange rates with
respect to debt and its international operations. Detailed analysis of this type of risk is
provided in the notes, specifically in note 20 dedicated to net debt.
Ratings risks
The Group’s ability to compete successfully in the marketplace for funding depends on
various factors, including its credit ratings assigned by recognized ratings agencies. Its
credit ratings may change to reflect changes in its results, financial position, credit structure
and liquidity profile. As a result, a rating downgrade may have negative repercussions on
the Group’s ability to raise funding.
Legal risks
Suitable provisions and impairment losses have been applied with regard to existing risks
and their related economic effects. Estimates and valuations are based on available
information and are in any case regularly reviewed, with immediate recognition in the
financial statements of any variations.
A review of the main current disputes (legal and tax-related) may be found in the relevant
sections of this report and in the consolidated annual report, with specific details in the
notes.
Compliance risks
The Group is subject to specific regulations concerning the quality of the products it
markets; special monitoring activities have been set up to ensure compliance with the
regulations in the countries where it operates.
At a general level, the “Risk and Compliance” program has introduced specific training and
circulates procedures and recommendations in the Group countries, to ensure compliance
with legislation and with tax, social and environmental regulations. The program is reviewed
on an annual basis to take account of regulatory changes.
Political risks
The Group has taken out insurance covers to limit the financial consequences of possible
political measures that might prevent normal management of some subsidiaries in
emerging countries.
Financial disclosure risks
The main characteristics of the risk management system and the internal control system
with respect to the financial disclosure process are illustrated in a specific section of the
“Report on corporate governance and ownership structure” in this Italcementi S.p.A. report.
Insurance
In the interest of all Group subsidiaries, Italcementi has taken out policies with leading
insurance companies to cover risks to people and assets, as well as product and general
third-party liability covers. As part of its risk coverage policy, the Group aims to optimize
risk management costs by assessing direct assumption and transfer to the market. All
policies are negotiated under a framework agreement to ensure a balance between the
probability of a risk occurring and the damage that would ensue for each subsidiary.
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