Prospectus - Notowania

consolidation were attributable solely to the already mentioned commercial expansion
in CEE countries.
As regards the 2006 and 2007 financial years, it should be pointed out that writedowns
on property, plant and equipment included some effects arising from the
business combinations with the Capitalia and HVB Groups; said non-recurring values
amounted to € 5 million in 2006 (related to the integration with the HVB Group) and
€ 53 million in 2007 (related, in particular, to the business combination with the
Capitalia Group). Owing to their nature, these were included in the item “Integration
costs" in the reclassified income statement.
(in millions of Euros) Net income % Change
Net write-downs of intangible assets 12.31.2008 12.31.2007 12.31.2006 2008/2007 2007/2006
A. Intangible assets
A.1 Owned (714) (620) (557) 15.2% 11.3%
- Generated internally by the
company (93) (71) (102) 31.0% -30.4%
- Other (621) (549) (455) 13.1% 20.7%
A.2 Acquired under financial lease (1) - - n.a. n.a.
Total (715) (620) (557) 15.3% 11.3%
The increase in adjustments for 2008 was mainly due to the effect of consolidation of
the Capitalia Group for an entire year as opposed to only three months in the previous
year. In addition, it should be noted that in 2007 the item included extraordinary
integration costs totalling € 108 million related, in particular, to the business
combination with the Capitalia Group and € 35 million in 2006 relative to the
integration with the HVB Group. No costs of this nature were included in 2008.
Net of the Q4 contribution from the Capitalia Group, not included in 2006, and of
integration costs, net write-downs of intangible assets for 2007 amounted to € 486
million, a decrease of € 36 million compared to the previous year (net of HVB
integration costs).
Net provisions for risks and charges
(in millions of Euros) % Change
Net provisions for risks and charges:
breakdown
Litigation
Staff expenses
Other
Total
12.31.2008
(100)
(1)
(153)
(254)
12.31.2007
(200)
19
(441)
(622)
12.31.2006
(161)
(61)
(543)
(765)
2008/2007
-50.0%
-105.3%
-65.3%
-59.2%
2007/2006
24.2%
-131.1%
-18.8%
-18.7%
As at December 31, 2008, the net balance of provisions came from reallocations of
surplus funds set aside in previous periods amounting to € 575 million (€ 252 million
for litigation, € 323 million for other funds) and from new provisions totalling € 829
million (€ 351 million for litigation and € 476 million for other provisions). With
reference to litigation and other provisions, the provisions during the year derived
partly from litigation and claims relating to financial instruments and derivatives.
In 2007, provisions for litigation and claims relating to financial instruments and
derivatives were included, amounting to roughly € 210 million.
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