TIM Group

Key economic performance data and economic value generated and distributed

The TIM Group aims to achieve a balance between the three dimensions of sustainability:

  • environmental: maintaining the function of ecological systems, ensuring a balance between the use of natural resources and the company’s activities;
  • social: promoting the principle of fairness between generations and within the same generation;
  • economic: maintaining and increasing capital.

[G4-9]  The Group reports on what it does to achieve this objective in the Sustainability Report, which focuses primarily on environmental and social sustainability, as well as aspects that are both of a social and economic nature (e.g. customer care and innovation management) and the Annual Financial Report, which discusses the Group’s economic performance in detail. In order to give a comprehensive view of the Group’s sustainability, we have provided some summary data of economic performance below, which are drawn from the Annual Report.

TIM group – Main economic, financial and operational data by business unit

(million euros)  Revenues  EBITDA  Industrial investmentsHeadcount at year-end (units)
Other activities1113171(18)(14)13-86100181108
Adjustments and eliminations(39)(50)(45)(3)21------
Consolidated total19,02519,71921,5748,0027,0068,7864,8765,1974,98461,22965,86766,025

[G4-9 The distribution of revenue by product and service is shown in Note 25 of the TIM Group’s consolidated financial statements.

TIM group – Other economic, financial and operational data by business unit

(million euros)  31.12.2016  31.12.2015  31.12.2014
Total net equity23,55321,24921,584
- attributable to Parent Company Shareholders21,20717,55418,068
- attributable to non-controlling interests2,3463,6953,516
Profit (loss) for the financial year attributable to Parent Company Shareholders1,808(70)1,351
Profit (loss) for the financial year attributable to non- controlling interests158731610
Net financial debt carrying amount25,95528,47528,021

[G4-9]  The trend in the Group’s capitalisation and debt is shown in the Report on Operations of the TIM Group.

[G4-9 The following table shows one of the Group’s key management data figures: the trend in fixed and mobile telephone service access lines.

TIM Group – Main economic, financial and operational data by Business Unit

(thousands)/Year-end figures  31.12.2016  31.12.2015  31.12.2014
Physical connections18,96319,20919,704
Broadband connections9,2068,8908,750
Number of lines29,61730,00730,350
Number of lines63,41866,23475,721

[G4-EC1The economic value generated and distributed to stakeholders is shown below. Since 2008, the method of presentation recommended by the GRI has been adopted, with appropriate adaptation.

TIM Group – Economic value generated and distributed

(million euros)  2016  2015*  2014*
Direct economic value generated  
a) Total revenue and operating income19,33620,00621,975
b) Interest payable and dividends paid159216228
c) Net gains (losses) on disposals of non-current assets1433629
d) Direct economic value generated (a+b+c)19,50920,55822,232
Economic value distributed  
e) Operating costs8,1289,2959,953
f) Employee benefits expenses3,1063,5893,119
g) Shareholders and providers of capital1,7292,2912,259
h) Taxes and duties949534854
i) Economic value distributed (e+f+g+h)13,91215,70916,185
Economic value retained (d-i)5,5974,8496,047

* The data relating to 2015 and 2014 was reviewed to take into account some changes made by the Brazil BU.


(million euros)201620152014
Wages and salaries2,1162,2962,202
Social security costs770834801
Other expenses220459116
Employee benefits expenses3,1063,5893,119

(million euros)201620152014
Purchases of materials and services7,7938,5339,430
Other operating costs9831,3751,057
Change in inventories(9)4452
Internally generated assets(639)(656)(588)
Operating costs8,1289,2969,951

(million euros)  2016  2015  2014
Dividends distributed191262319
Interest payable1,5382,0291,940
Shareholders and providers of capital1,7292,2912,259

(million euros)  2016  2015  2014
Income taxes849418736
Indirect taxes and duties100116118
Taxes and duties949534854
- regarding Domestic BU876381724
- regarding Brazil BU84123124
- regarding activities abroad/other(11)306

TIM Group – Contribution to the community

(million euros)  2016  2015  2014
Distribution of contribution   
Investments in the community19.217.67.1
Initiatives in the community6.19.414.5

The contribution to the community is calculated according to the London Benchmarking Group (LBG) guidelines. The calculation has been done using management data partly based on estimates.

More than 150 major international companies subscribe to the LBG, which was founded in 1994 and is the global gold standard for the classification of voluntary contributions made by companies in favour of the community.

In line with the LBG model, in order to measure and represent the Group’s commitment to the community, the contributions paid out have been subdivided into three categories (donations, investments in the community, initiatives for the community). In the first, the charitable spirit prevails, the third includes initiatives that combine a benefit to the community with a commercial interest on the part of the Company. For further information regarding the LBG model and its investment classification criteria on the three levels, see the sustainability section of the telecomitalia.com website and the lbg-online.net website.