to download Telecom Italia Annual Report 2011 - Company Reporting

Note 7 – Investments accounted for using
the equity method
Investments accounted for using the equity method decreased 38 million euros compared to
December 31, 2010 and include:
(millions of euros) 12/31/2011 12/31/2010
Investments accounted for using the equity method:
Associates 46 84
Joint ventures 1 1
47 85
Investments in associates accounted for using the equity method are detailed as follows:
(millions of euros) 12/31/2009 Investments Disposals and
reimbursements
of capital
Valuation
using equity
method
Reclassifications
and other
changes
12/31/2010
EtecSA (Cuba) 289 100 (389) -
Italtel Group - 35 3 38
Tiglio I 37 (14) 23
Tiglio II 1 1
Other 24 1 (2) (1) 22
Total 351 36 (2) 89 (390) 84
(millions of euros) 12/31/2010 Investments Disposals and
reimbursements
of capital
Valuation
using equity
method
Reclassifications
and other
changes
12/31/2011
Italtel Group 38 (38) -
Tiglio I 23 (1) 22
Tiglio II 1 - 1
Other 22 - 1 23
Total 84 - - (39) 1 46
The measurement of investments “accounted for using the equity method” includes the share of profits
(losses) for the year and the exchange differences on translating foreign operations. With regard to the
writedown in full of the entire investment in the Italtel Group in which a 34.68% interest is held, the
overall macroeconomic picture on the one hand and the specific prospects of future evolution of the
company’s business on the other have led to believe that the recovery of the entire amount of the
associate is not probable.
Aggregate data for 2011 and 2010 relating to the principal associates, prepared in accordance with
IFRS, based on the Telecom Italia Group’s share, are reported below. The share of profits (losses) for the
year refers, for consolidation groups, to the shares of the parent and Non-controlling interests.
(millions of euros) 2011 2010
Total assets 418 463
Total liabilities 354 375
Revenues 130 251
Profits (losses) for the year (18) (21)
Investments in joint ventures include the 50% investment in Consorzio Tema Mobility.
Consolidated Financial Statements
Telecom Italia Group
Note 7 – Investments accounted for using the equity method 192