to download Telecom Italia Annual Report 2011 - Company Reporting

Financial liabilities – Maturities of contractually expected disbursements
maturing by 12/31/ of the year:
(millions of euros) 2012 2013 2014 2015 2016 After
2016
Total
Bonds Principal 4,722 1,145 1,173 719 2,250 7,580 17,589
Interest 959 726 675 604 563 2,591 6,118
Loans and other financial liabilities (*) Principal 281 2,036 5,347 913 231 8,371 17,179
Interest 771 769 643 472 444 5,294 8,393
Finance lease liabilities Principal 225 113 175 151 135 726 1,525
Interest 99 92 84 76 67 179 597
Non-current financial liabilities (*) Principal 5,228 3,294 6,695 1,783 2,616 16,677 36,293
Interest 1,829 1,587 1,402 1,152 1,074 8,064 15,108
Current financial liabilities (**) Principal 1,025 - - - - - 1,025
Interest 5 - - - - - 5
Total Financial liabilities Principal 6,253 3,294 6,695 1,783 2,616 16,677 37,318
(*) These include hedging derivatives, but exclude non-hedging derivatives.
(**) These exclude non-hedging derivatives.
Interest 1,834 1,587 1,402 1,152 1,074 8,064 15,113
Derivatives on financial liabilities – Contractually expected interest flows
maturing by 12/31/ of the year:
(millions of euros) 2012 2013 2014 2015 2016 After
2016
Total
Disbursements 603 575 421 346 282 2,485 4,712
Receipts (408) (357) (290) (260) (202) (1,007) (2,524)
Net disbursements 195 218 131 86 80 1,478 2,188
With regard to derivative transactions, in order to name the Parent as the sole counterpart of the
banking system, in May 2009, all the derivatives of the Group were centralized under
Telecom Italia S.p.A. In the Telecom Italia S.p.A. separate financial statements this resulted in the
presence of two non-hedging derivatives (one with the bank and the other with the same and opposite
sign with the company of the Group), while the hedging relationship remains with the subsidiary and the
Group. Since they are not significant for the analysis of liquidity risk, because the positions are fully
offset, the flows relating to the non-hedging derivatives that were placed under centralized management
have been excluded from the analysis of the maturities of contractually expected disbursements for
financial liabilities and the analysis of the maturities of contractually expected interest flows for
derivatives.
Market value of derivatives
In order to determine the fair value of derivatives, the Telecom Italia Group uses various valuation
models. The mark-to-market calculation is determined by discounting to present value the interest and
notional future contractual flows using market interest rates and exchange rates.
The notional amount of IRS does not represent the amount exchanged between the parties and
therefore does not constitute a measurement of credit risk exposure which, instead, is limited to the
amount of the differential between the interest rates paid/received.
The market value of CCIRSs, instead, also depends on the differential between the reference exchange
rate at the date of signing the contract and the exchange rate at the date of measurement, since CCIRSs
imply the exchange of the reference interest and principal, in the respective currencies of denomination.
Telecom Italia S.p.A. Separate Financial Statements Note 15 – Financial risk management 369