Tiscali 2003 Annual Report Download - page 77

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7979
The total value of net tangible assets at 31 December 2003 was EUR 246.6 million. Investments over the year came to
around EUR 66 million, and mainly relate to investments in network, server and Internet access equipment.
The “land and buildings” line includes investments and restatements of tangible assets in course of acquisition from the
previous year following the completion of the parent Company headquarters in Cagliari, on which work had begun the pre-
vious year. The total investment in the new premises was EUR 34.5 million.
The “plant and machinery” line largely includes dedicated equipment and networks, routers, servers and telephone
exchanges that make up most of the tangible assets. The item shows an increase due to investment in upgrading network
and access infrastructure.
The “other tangible assets” line mainly includes furnishings, IT and office equipment and vehicles.
The value of tangible assets fell by around EUR 20 million, of which EUR 17 million relates to the French subsidiaries
(following the reorganisation that took place after the Cable & Wireless acquisition) and Danish subsidiary Tiscali
Denmark.
As already stated in the accounting policies section of these notes, for the purpose of preparing the 2003 accounts, the
Group commissioned an independent consultant to assess the estimated residual life of the key equipment, specifically
IP and Ethernet network equipment (commercially known as routers and L3/L2 switches) belonging to Tiscali S.p.A. and
its subsidiaries. This report put the useful life of these assets—with the same technical specifications and used for the
same purpose—at five years, and has allowed Tiscali to harmonise depreciation rates for this equipment at 20% across
the various Group companies. This is the rate previously applied by the parent Company.
For assets relating to some Group companies, this has led to a change in the estimated residual life of specific equip-
ment belonging to certain Group companies, thereby reducing amortisation charges by around EUR 12.1 million in 2003,
and increasing net profit and consolidated shareholders’ equity by the same amount.
III – IInvestments
The breakdown of investments is as follows.
The investments in consolidated and non-consolidated subsidiaries are valued according with the equity method. These mainly
include stakes held by Tiscali S.p.A. in non-consolidated subsidiaries.
The change compared to the previous year relates to the valuation at equity of non-consolidated subsidiaries.
The investments in other companies are valued at cost, and relate to the smallest stakes held by Tiscali S.p.A..
Long-term investments in other companies mainly include the 0.3% stake in H3G S.p.A., a 3G (UMTS) mobile telephony Company
operating under the “3” brand, acquired by Luxembourg-based Tiscali Finance for EUR 12.5 million.
LONG-TERM INVESTMENTS 31.12.2003 31.12.2002 CHANGE
Investments in:
Non-consolidated Group companies 714 288 426
Affiliated companies 66 185 (119)
Other companies 12,547 12,687 (140)
Receivables 8,038 26,714 (18,676)
Total 21,365 39,874 (18,509)