Tiscali 2003 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2003 Tiscali annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 147

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147

Financial position
Tiscali’s financial position as of 29 February 2004 is shown below. In particular, cash resources of EUR 44.9 million were used
in the first two months of the year. The Company also bought back bonds due in July 2004 worth a total of EUR 7.4 million.
However, the cash burn rate is falling: EUR 30 million was spent in January 2004, but this fell to around EUR 15 million in
February. Tiscali expects to see a further significant reduction in March.
Tax inspections
The Italian tax police carried out an inspection at Tiscali S.p.A. last year, which began on 11 September and was completed on
12 December, when it delivered a record of findings filed by the Guardia di Finanza (Tax Police).
Proceedings by the tax police do not in themselves constitute concrete allegations against the Company inspected, but merely
serve to provide information to the relevant tax office, which will then issue a tax assessments, but only if it considers the com-
ments of the tax police to be well-founded, against which the Company may appeal.
The findings of the tax police concerned: (i) minor amounts of VAT; (ii) interest earned on intragroup loans, which is less than EUR
7 million for the period 2001/2002; and (iii) the future use of tax losses carried forward of EUR 210 million.
None of the points raised in the tax police report—even those judged to be well-founded—affect Tiscali’s results, since the Group
has sufficient credits on past tax losses (accumulated in the start-up phase) to offset any increased tax payments required.
In addition, the report has no effect on the total tax assets relating to the tax losses carried forward announced to the market,
which for reasons of caution included only part of the losses actually realised. The figure previously revealed by the Group is the-
refore confirmed at around EUR 1 billion.
Tiscali will consider whether to appeal if the tax office decides to act on the tax police’s remarks (which in any case have a neu-
tral effect on the Company’s balance sheet).
3838
31.12.2003 29.02.2004
Cash EUR 203.5 million EUR 153.7 million
Other financial assets EUR 129.0 million EUR 119.7 million
Term deposits EUR 51.8 million EUR 43.1 million
Tax receivables and capital grants * EUR 77.2 million EUR 76.6 million
TOTAL CASH AND CASH EQUIVALENTS EUR 332.5 million EUR 273.4 million
Bonds maturing in July 2004 EUR 80.3 million EUR 72.9 million
Bonds maturing in July 2005 EUR 250.0 million EUR 250.0 million
Equity-linked bonds maturing in September 2006 EUR 209.5 million EUR 209.5 million
Telinco bonds EUR 0.8 million EUR 0.8 million
Loans and other long-term liabilities EUR 33.5 million EUR 33.5 million
Other short-term financial liabilities EUR 38.0 million EUR 38.0 million
GROSS DEBT 1 EUR 612.1 million EUR 604.7 million
Liabilities to other lenders ** EUR 43.5 million EUR 38.7 million
GROSS DEBT 2 EUR 655.6 million EUR 643.4 million
NET DEBT 1 EUR 279.6 million EUR 331.3 million
NET DEBT 2 EUR 323.1 million EUR 370.0 million
PRO FORMA NET DEBT 1 EUR 70.1 million EUR 121.8 million
PRO FORMA NET DEBT 2 EUR 113.6 million EUR 160.5 million
(assuming the full conversion of Equity-linked bonds)
* Mainly tax refunds expected to be received before end-2004
** Mainly includes leasing payments