Tiscali 2008 Annual Report Download - page 140

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Guarantees issued and commitments
Guarantees issued are detailed as follows:
EUR (000) 31.12.2007 31.12.2006
GUARANTEES ISSUED TO THIRD PARTIES
Sureties 687,527 802,127
687,527 802,127
OTHER MEMORANDUM ACCOUNTS
Commitments 6,964 8,376
6,964 8,376
Total 694,491 810,503
Sureties given include EUR 500 million in relation to the
guarantee given by the Parent Company for the loans granted by
Banca Intesa San Paolo and JP Morgan as part of the acquisition
of certain Group companies.
The same item includes the surety given by Tiscali S.p.A. to
guarantee the amount of the loan granted for the sale & lease
back transaction on the Sa Illetta property, totalling EUR 95
million, achieved by the subsidiary Tiscali Italian S.p.a..
The item commitments includes EUR 6.6 million for the
maintenance of credit facilities granted to the subsidiary Tiscali
Italia S.p.A..
Net financial position
As required by Consob Communication n. DEM/6064293
dated 28 July 2006, the Company’s net financial position at 31
December 2008 is as follows:
EUR (000) 31.12.2008 31.12.2007
A. Cash 1 171
B. Other cash equivalents 1,372 2,012
C. Securities held for trading - -
D. Cash and cash equivalents (A) + (B) + (C) 1,373 2,183
E. Current financial payables - -
F. Current bank payables (627) (2,169)
G. Current portion of non-current debt
H. Other current financial payables to Group companies (45,753) (234,270)
I. Current financial debt (F) + (G) + (H) (46,379) (236,439)
J. Net current financial debt (I) – (E) – (D) (45,006) (234,256)
K. Non-current bank payables - -
L. Bonds issued - -
M. Other non-current payables to Group companies (3,108) (1,792)
N. Other non-current payables to third parties (515) -
O. Non-current financial debt (K) + (L) + (M) + (N) (3,623) (1,792)
P. Net financial debt (J) + (O) (48,630) (236,048)
The net financial position indicated in the table above is
reconciled with the net debt shown in the Report on Operations
as follows:
EUR (000) 31.12.2008 31.12.2007
Net debt as per the Report on operations (43,605) (231,966)
Current financial receivables (5,025) (4,082)
Net financial position (48,630) (236,048)
Financial risk management
Financial risk management objectives
The Group’s Corporate Treasury division provides business
services, 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
approved 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 instruments, and the investment of surplus liquidity.
Consensus regarding the policies and exposure limits is
reviewed by the internal auditor on an on-going basis.
Market risks
The Company’s activities do not expose it primarily to the
financial risk of changes in exchange rates for foreign currency
and to the interest rate.
TISCALI S.P.A. – FINANCIAL STATEMENTS AND EXPLANATORY NOTES
139