to download Telecom Italia Annual Report 2011 - Company Reporting

Olivetti
The Olivetti group mainly operates in thee sector of office products and servicess for Information
Technology. Thanks to its vast offering of cutting-edge hardware and software, its solution provider
activities offer solutions able to automate processes and business activities for small and medium
enterprises, large corporationss and vertical markets. The Group continuess the process, begun during the
last few years, of expanding and diversifyingg the offering by concentrating on both thee developmentt of
software solutions and applications services for businesses and public administrations, and also a
specialized electronic devices.
The market of the Business Unit is focused mainly in Europe, Asia and South America.
The structure of the Business Unit
The Business Unit is organized as follows (main companies only):
Main operating and financial data
Key results of the
Olivetti Business Unit in 2011 compared to 2010 are presented in thee following table:
(millions of euros)
2011
2010
Change
amount
%
Revenues
343
391
(48)
(12.3))
EBITDA
(35)
(19)
(16)
(84.2))
EBITDA margin
(10.2)
(4.9)
EBIT
(41)
(24)
(17)
(70.8))
EBIT margin
(12.0)
(6.1)
Capital expenditures
5
5
Headcount at year-end (number)
1,075
1,090
(15)
(1.4))
Revenues
Revenues amount to 343 million euros in 2011, decreasing 48 million euros e compared to 2010, partly
because of the negative exchange rate effect of 3 million euros. The market context is particularly
depressed for the third consecutive year and the deterioration of o the Italiann and European
macroeconomic
picture had an
adverse effect on 2011; this caused a decisive fall in ICT expendituress in
Italy.
As
far as Olivetti S.p.A. is concerned, this scenario led to
a drastic reduction in sales to the Parent,
Telecom Italia, (-23 million euros compared to 2010) and is
reason in itself for an almost 50% declinee in
year-over-year revenues.
Sales in Italy in the indirect channel came too an abrupt stop in the last part p of the yearr (-6 million euros
compared to 2010) in parallel with the heightening of the crisis which particularly hard hit the SMEs and a
professional offices customer channel; conversely, the direct sales channel in Italy off large customers
exceeded last year’s figures (+ +4 million euros), in part thanks to the positive contribution of new service
offers.
Report on Operations
The Business Units of the Telecom Italia Group – Olivetti
76