2011 Annual Report - Italcementi Group

2011 Annual Report
Presentation 4
General information 15
Annual Report Consolidated Annual Report Directors’ report 28
Extraordinary session Italcementi S.p.A. Annual Report Consolidated financial statements 63
Reconciliation between parent’s profit for the year and equity and
loss for the year and equity attributable to owners of the parent
(in millions of euro) 2011
Profit (loss) for the period of the parent (Italcementi S.p.A.) 7.0
Consolidation adjustments:
- Profit (loss) for the period of consolidated companies (in accordance with Group accounting
policies) 562.0
- Elimination of intragroup dividends collected during the year (507.2)
- Reversal of impairment losses (revaluations) in consolidated equity investments 89.2
- Elimination of intercompany (gains) losses and other changes (59.9)
- Consolidated profit (loss) for the period 91.2
- Attributable to non-controlling interests 94.3
- Attributable to owners of the parent (3.1)
December 31,
2011
Equity of the parent company (Italcementi S.p.A.) 1,784.6
Consolidation adjustments:
- Elimination of carrying amount of consolidated equity investments
• Carrying amount of consolidated equity investments (8,464.4)
• Equity of consolidated companies (in accordance with Group accounting policies) 11,574.6
- Consolidated equity 4,894.9
- Equity attributable to non-controlling interests 1,400.0
- Equity attributable to owners of the parent 3,494.9
Risks and uncertainties
In May 2010, Italcementi S.p.A. formed a Risk Management Department, reporting to the
Italcementi S.p.A. Chief Executive Officer, to improve its ability to create value for
stakeholders by optimizing enterprise risk management (ERM). The mission of the function
is to guarantee a structured approach to risk management, integrated with the Group
growth strategy, and to support the improvement of Group performance by identifying,
measuring, managing and controlling key risks.
The creation of the Risk Management Department is part of the “Risk & Compliance”
program set up in 2008, based on the methodology developed by the Committee of
Sponsoring Organizations of the Tradeway Commission (COSO), and consisting of the
following phases.
1. Identification of the main areas of risk for Group strategic goals and development of
methods and tools to analyze and assess the correlated risk events.
2. Assessment, at country level and at aggregate level, of identified risk events in terms of
impact, probability and timeframe, in order to acquire an overall vision of the Group risk
portfolio.
3. Selection of priority risks and definition of response strategies, Group governance rules
and action to integrate and improve risk management systems; some operating risks are
managed at individual company level, while others requiring specific competences or
involving a variety of responsibilities are managed at Group level.
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