2011 Annual Report - Italcementi Group

Directors’ report
Any changes in the standards and regulations, compared to 2010, are detailed in the notes
under the heading “Statement of compliance with the IFRS”. In accordance with the
provisions of European Union Regulation no. 1606 of 2002, the principles to be adopted do
not include the standards and interpretations published by the International Accounting
Standards Board (IASB) and the International Financial Reporting Interpretations
Committee (IFRIC) at December 31, 2011, but not endorsed by the European Union at that
date. Furthermore, the European Union has endorsed additional standards/interpretations
that Italcementi S.p.A. will apply at a subsequent time, having decided not to elect early
application.
Earnings indicators
To assist comprehension of its financial data, Italcementi S.p.A. employs a number of
widely used indicators, which are not contemplated by the IFRS.
Specifically, the income statement presents the following intermediate results / indicators:
recurring EBITDA, EBITDA, EBIT, computed as the sum of the preceding items. On the
face of the statement of financial position, similar considerations apply to net debt, whose
components are detailed in the specific section of the notes.
Since the indicators employed by the company are not envisaged by the IFRS, their
definitions may not coincide with and therefore not be comparable to those adopted by
other companies/groups.
This report contains many financial and non-financial earnings indicators, including those
mentioned above. The financial indicators, taken from the financial statements, are used in
the tables summarizing Italcementi S.p.A.’s financial performance, in relation to
comparative amounts and other amounts from the same period (e.g., change in revenue,
recurring EBITDA and EBIT with respect to the previous year, and change in their return on
revenue). The use of amounts not directly apparent from the financial statements (e.g.,
amounts of subsidiaries’ financial statements) and the presentation of comments and
assessments assist qualification of the trends in the amounts concerned.
The non-financial indicators refer to external and internal elements: the general economic
situation and the situation of the industry in which the company operates, trends in sales
prices and key cost factors, acquisitions and disposals, other significant events in the
period, organizational developments, the introduction of laws and regulations, etc.. In the
notes, the section on the net debt provides information about the effects of changes in
interest rates and the main exchange rates on the statement of financial position and the
income statement.
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