Tiscali 2009 Annual Report Download - page 160

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11.5 Notes on the Financial Statements
Tiscali S.p.A. is a limited company incorporated under the laws of the Republic of Italy at the Cagliari
Companies’ Register. The Tiscali Group offers telecommunications services on fixed networks in Italy. Tiscali
offers integrated Internet access services, telephony and multimedia services and in particular is positioned
in the segment of IP technology services that enable voice and internet traffic to be carried on the same
technological platform.
The financial information included in these statements is presented in EUR which is the currency used to
conduct most of the parent company’s operations.
The income statement and balance sheet, cash flow statement, statement of changes in shareholders’
equity and values indicated in the notes to the financial statements are presented in EUR.
Assessment of company continuity and foreseeable changes in management
Events and uncertainties about company continuity
The financial statements for the year for Tiscali S.p.A. closed with a loss of EUR 248.3 million, which
reduces the net equity to EUR 93.7 million.
The Tiscali Group incurred a consolidated loss for the financial year of EUR 387.0 million, of which EUR
372.3 million was related to disposals during the year, and has a deficit in consolidated net shareholders’
equity of EUR 67.0 million, after the share capital increase completed in November 2009 for approximately
EUR 180.0 million and after the effects of writing-off EUR 42.3 million in debt, in accordance with the
restructuring agreements signed with financial institutions. In addition, as at 31 December 2009, the Group
reports gross indebtedness of EUR 240.6 million and current liabilities which are greater than current (non-
financial) assets by EUR 85.3 million.
At the date of 31 December 2008 the loss was equal to EUR 271.1 million (of which EUR 143.3 million arose
from assets sold), and the overall net assets came to EUR 4.8 million and the gross financial indebtedness
to EUR 644.8 million. At the same date the difference between assets and current (non financial) liabilities
was negative to the tune of EUR 187.2 million.
The financial and economic disequilibrium of the Group, as already in evidence in the financial statements
for year ended at 31 December 2008, caused the Directors in early 2009 to prepare a new Business Plan
and related Financial Plan to enable the Tiscali Group to begin restructuring its debts in order to guarantee
its long-term financial equilibrium.
Subsequently, during 2009 the Group undertook certain actions (overall referred to as the ‘Restructuring
Plan’) aimed at achieving the long-term financial and economic equilibrium for the Group and to re-launch
its commercial activities (as described in paragraph 4.4 of the Report on Operations, “Significant events
during the year”).
In particular, in the sphere of the Restructuring Plan the following action was started and completed which
have had their asset, income and cash flow impact in the financial statements cut off at 31 December 2009:
1. The set-up of an reorganisation plan for 2009-2013 intended to seek out the long term income-asst
balance of the Tiscali Group;
Tiscali S.p.A. Accounting Statements and Explanatory Notes