TIM S.p.A. (ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory)

NOTE 38—SEGMENT REPORTING

a) Reporting by operating segment

Segment reporting is based on the following operating segments:

Domestic;

Brazil;

Media (only with reference to 2015); and

Other Operations.

The Media Business Unit was included into the Domestic Business Unit as of January 1, 2016.

SEPARATE CONSOLIDATED INCOME STATEMENTS BY OPERATING SEGMENT


	Domestic									Brazil									Media					Other operations									Adjustments and eliminations									Consolidated Total
	2017			2016			2015			2017			2016			2015			2017	2016	2015			2017			2016			2015			2017			2016			2015			2017			2016			2015
	(millions of euros)
Third-party revenues		15,328			14,971			14,960			4,500			4,044			4,634					82			—			10			43			—			—			—			19,828			19,025			19,719
Intragroup revenues		26			35			41			2			3			3					—			—			1			6			(28	)		(39	)		(50	)		—			—			—

Revenues by operating segment		15,354			15,006			15,001			4,502			4,047			4,637					82			—			11			49			(28	)		(39	)		(50	)		19,828			19,025			19,719
Other income		471			259			258			52			51			21					4			—			1			4			—			—			—			523			311			287

Total operating revenues and other income		15,825			15,265			15,259			4,554			4,098			4,658					86			—			12			53			(28	)		(39	)		(50	)		20,351			19,336			20,006

Acquisition of goods and services		(6,235	)		(5,785	)		(6,046	)		(2,168	)		(2,028	)		(2,443	)				(33	)		(4	)		(9	)		(48	)		19			29			38			(8,388	)		(7,793	)		(8,532	)
Employee benefits expenses		(3,266	)		(2,759	)		(3,206	)		(353	)		(336	)		(349	)				(4	)		(7	)		(11	)		(30	)		—			—			—			(3,626	)		(3,106	)		(3,589	)
of which: accruals to employee severance indemnities		(6	)		(1	)		(1	)		—			—			—					—			—			—			—			—			—			—			(6	)		(1	)		(1	)
Other operating expenses		(704	)		(574	)		(999	)		(500	)		(505	)		(470	)				(12	)		(5	)		(2	)		(11	)		1			(2	)		1			(1,208	)		(1,083	)		(1,491	)
of which: write-downs and expenses in connection with credit management and provision charges		(468	)		(317	)		(506	)		(160	)		(162	)		(149	)				(12	)		—			—			(8	)		—			—			—			(628	)		(479	)		(675	)
Change in inventories		41			16			3			(6	)		1			(33	)				—			—			(8	)		(15	)		—			—			1			35			9			(44	)
Internally generated assets		510			535			556			108			95			88					—			—			—						8			9			12			626			639			656
Depreciation and amortization		(3,360	)		(3,310	)		(3,205	)		(1,114	)		(980	)		(909	)				(23	)		—			—			—			1			(1	)		2			(4,473	)		(4,291	)		(4,135	)
Gains (losses) on disposals of non-current assets		(2	)		(9	)		—			14			23			336					—			—			—			—			(1	)		—			—			11			14			336
Impairment reversals (losses) on non-current assets		(37	)		(3	)		(3	)		—			—			(240	)				—			—			—			(1	)		—			—			—			(37	)		(3	)		(244	)

Operating profit (loss)		2,772			3,376			2,359			535			368			638					14			(16	)		(18	)		(52	)		—			(4	)		4			3,291			3,722			2,963

Share of profits (losses) of associates and joint ventures accounted for using the equity method		(1	)		(23	)		1			—			—			—					—			—			—			—			—			—			—			(1	)		(23	)		1
Other income (expenses) from investments																																											(18	)		7			10
Finance income																																											1,808			2,543			2,760
Finance expenses																																											(3,303	)		(3,450	)		(5,281	)

Profit (loss) before tax from continuing operations																																											1,777			2,799			453
Income tax expense																																											(490	)		(880	)		(403	)

Profit (loss) from continuing operations																																											1,287			1,919			50
Profit (loss) from Discontinued operations/Non-current assets held for sale																																											—			47			611

Profit (loss) for the year																																											1,287			1,966			661
Attributable to:
Owners of the Parent																																											1,121			1,808			(70	)
Non-controlling interests																																											166			158			731

REVENUES BY OPERATING SEGMENT


	Domestic								Brazil						Media				Other operations						Adjustments and eliminations									Consolidated Total
	2017		2016			2015			2017		2016		2015		2017	2016	2015		2017		2016		2015		2017			2016			2015			2017		2016			2015
	(millions of euros)
Revenues from equipment sales—third party		1,350		1,136			956			210		232		475				—		—		10		43		—			—			—			1,560		1,378			1,474
Revenues from equipment sales—intragroup		—		—			—			1		—		—				—		—		1		5		(1	)		(1	)		(5	)		—		—			—

Total revenues from equipment sales		1,350		1,136			956			211		232		475				—		—		11		48		(1	)		(1	)		(5	)		1,560		1,378			1,474

Revenues from services—third party		13,974		13,843			14,017			4,290		3,812		4,159				82		—		—		—		—			—			—			18,264		17,655			18,258
Revenues from services—intragroup		26		35			41			1		3		3				—		—		—		1		(27	)		(38	)		(45	)		—		—			—

Total revenues from services		14,000		13,878			14,058			4,291		3,815		4,162				82		—		—		1		(27	)		(38	)		(45	)		18,264		17,655			18,258

Revenues on construction contracts—third party		4		(8	)		(13	)		—		—		—				—		—		—		—		—			—			—			4		(8	)		(13	)
Revenues on construction contracts—intragroup		—		—			—			—		—		—				—		—		—		—		—			—			—			—		—			—

Total revenues on construction contracts		4		(8	)		(13	)		—		—		—				—		—		—		—		—			—			—			4		(8	)		(13	)

Total third-party revenues		15,328		14,971			14,960			4,500		4,044		4,634				82		—		10		43		—			—			—			19,828		19,025			19,719
Total intragroup revenues		26		35			41			2		3		3				—		—		1		6		(28	)		(39	)		(50	)		—		—			—

Total revenues by operating segment		15,354		15,006			15,001			4,502		4,047		4,637				82		—		11		49		(28	)		(39	)		(50	)		19,828		19,025			19,719

PURCHASE OF INTANGIBLE AND TANGIBLE ASSETS BY OPERATING SEGMENT


	Domestic						Brazil						Media				Other operations						Adjustments and eliminations						Consolidated Total
	2017		2016		2015		2017		2016		2015		2017	2016	2015		2017		2016		2015		2017		2016		2015		2017		2016		2015
	(millions of euros)
Purchase of intangible assets		1,763		1,113		1,454		529		528		505				—		—		—		—		—		—		—		2,292		1,641		1,959
Purchase of tangible assets		2,842		2,792		3,632		635		675		1,121				8		—		—		—		—		—		—		3,477		3,467		4,761

Purchase of intangible and tangible assets		4,605		3,905		5,086		1,164		1,203		1,626				8		—		—		—		—		—		—		5,769		5,108		6,720

of which capital expenditures		4,551		3,709		3,900		1,150		1,167		1,289				8		—		—		—		—		—		—		5,701		4,876		5,197

of which change in finance leasing contracts		54		196		1,186		14		36		337				—		—		—		—		—		—		—		68		232		1,523

HEADCOUNT BY OPERATING SEGMENT

Domestic

Brazil

Other operations

Consolidated Total

As of
December 31,
2017

As of
December 31,
2016

As of
December 31,
2017

As of
December 31,
2016

As of
December 31,
2017

As of
December 31,
2016

As of
December 31,
2017

As of
December 31,
2016

(number of employees)

Headcount

49,851

51,280

9,508

9,849

100

59,429

61,229

ASSETS AND LIABILITIES BY OPERATING SEGMENT


	Domestic				Brazil				Other operations					Adjustments and eliminations						Consolidated Total
	As of December 31, 2017		As of December 31, 2016		As of December 31, 2017		As of December 31, 2016		As of December 31, 2017			As of December 31, 2016		As of December 31, 2017			As of December 31, 2016			As of December 31, 2017		As of December 31, 2016
	(millions of euros)
Non-current operating assets		48,850		47,428		6,769		7,711		3			5		1			1			55,623		55,145
Current operating assets		4,363		4,472		898		1,209		(2	)		16		(10	)		(1	)		5,249		5,696

Total operating assets		53,213		51,900		7,667		8,920		1			21		(9	)		—			60,872		60,841

Investments accounted for using the equity method		17		18		—		—		—			—		—			—			17		18
Discontinued operations /Non-current assets held for sale																					—		—
Unallocated assets																					7,894		9,587

Total Assets																					68,783		70,446

Total operating liabilities		9,829		8,968		1,855		2,397		58			57		(26	)		(16	)		11,716		11,406
Liabilities directly associated with Discontinued operations/Non-current assets held for sale																					—		—
Unallocated liabilities																					33,284		35,487
Equity																					23,783		23,553

Total Equity and liabilities																					68,783		70,446

b) Reporting by geographical area

Revenues

Non-current operating
assets

Breakdown by location
of operations

Breakdown by location
of customers

Breakdown by location
of operations

2017

2016

2015

2017

2016

2015

As of
December 31,
2017

As of
December 31,
2016

(millions of euros)

Italy

(A)

15,015

14,635

14,743

14,064

13,657

13,772

48,591

46,948

Outside Italy

(B)

4,813

4,390

4,976

5,764

5,368

5,947

7,032

8,197

Total

(A+B)

19,828

19,025

19,719

19,828

19,025

19,719

55,623

55,145

c) Information about major customers

None of the TIM Group’s customers exceeds 10% of consolidated revenues.

TIM S.p.A. | CIK:0000948642 |

ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory