Tiscali 2007 Annual Report Download - page 139

EUR (000) 31.12.2007 31.12.2006
A. Cash 171 -
B. Other cash equivalents 2,012 152
C. Securities held for trading - -
D. Cash and cash equivalents (A) + (B) + (C) 2,183 152
E. Current financial receivables (*) - -
F. Current bank payables (2,169) (12,419)
G. Current portion of non-current debt
H. Other current financial payables
I. Current financial debt (F) + (G) + (H) (2,169) (12,419)
J. Net current financial debt (I) – (E) – (D) 14 (12,267)
K. Non-current bank payables - -
L. Bonds issued - -
M. Other non-current payables to Group companies (236,062) (208,162)
N. Other non-current payables to third parties - -
O. Non-current financial debt (K) + (L) + (M) + (N) (236,062) (208,162)
P. Net financial debt (J) + (O) (236,048) (220,429)
The net financial position indicated in the table above is recon-
ciled with the net debt shown in the Report on Operations as
follows:
EUR (000) 31.12.2007 31.12.2006
Net debt as per the Report on operations (231,966) (207,332)
Current financial receivables (4,082) (13,097)
Net financial position (236,048) (220,429)
29. Financial risk management
29.1 Financial risk management objectives
The Group’s Corporate Treasury division provides business servi-
ces, co-ordinates access to the local and international financial
markets, and monitors and handles the financial risk associated
with Group operations by means of internal risk reports which
analyze the exposures by degree and magnitude of the risk.
These risks include market risks (inclusive of currency risks, fair
value interest rate risks and price risks), credit risks and risks in
cash flow interest rates.
The use of financial derivatives is disciplined by policies appro-
ved by the Board of Directors, which provides written principles
on foreign exchange risks, interest rate risks, credit risks, on the
use of financial derivatives and non-derivative financial instru-
ments, and the investment of surplus liquidity. Consensus regar-
ding the policies and exposure limits is reviewed by the internal
auditor on an on-going basis.
29.2 Market risks
Group activities expose it primarily to the financial risk of
changes in exchange rates for foreign currency and to the in-
terest rate.
30. Transactions with related parties
During 2007, the Tiscali S.p.A. had a number of dealings with
related parties.
These were transactions regulated on an arms’-length basis;
the table below summarises the balance sheet and income
statement values recorded in the Parent Company’s financial
statements at 31 December 2007 arising from transactions
with related parties.
The effects on the income statement are indicated as follows:
TISCALI S.P.A. – SINANCIAL STATEMENTS AT 31 DECEMBER 2007
138
INCOME STATEMENT 31.12.2007 of which: % change
EUR (000) related parties
Revenues 30,902 14,681 48%
Other income 897
Purchase of materials and outsourced services (23,566) (18,752) 80%
Payroll and related costs (9,031)
Other operating costs (2,686)
Writedowns of receivables from customers (873)
Other provisions (886) (886) 100%
Restructuring costs and other writedowns (17,822)
Amortization/depreciation (390)
Operating result (23,455) (4,957)
Portion of result of equity investments carried at equity -
Net financial income (Charges) (310)
Pre-tax result (23,765) (4,957)
Income taxes (77)
Net result from operating activities (on-going) (22,842) (4,957)
Result from assets disposed of and/or destined to be disposed of
Net result (23,842) (4,957)