Tiscali 2009 Annual Report Download - page 53

Tiscali Group: Annual Report 2009
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funding granted and to face up the group’s obligations, d) achieve a long-term financial and economic
equilibrium for the Group.
To these factors need to be added the litigation matters described in the notes to the financial statements,
the outcomes of which although not reasonably predictable at the moment, nor be reasonably expected in
the next twelve months following the balance sheet date, have been evaluated as potentially significant (see
the paragraph “Disputes, potential liabilities and commitments”).
Final assessment of the Board of Directors
The Board of Directors, in assessing the above elements, has considered that, in 2009, the Group:
a) completed all the actions required by the Restructuring Plan, including repayment of a significant
portion of the financial debt and restructuring (with more favourable terms) of the residual debt, as well
as the completion of the share capital increase, proof of the confidence of the market and of the financial
institutions in the company‘s business model;
b) positively launched the implementation of the 2009-2013 Plan, confirming, at the current state of play,
both the main assumptions used in its preparation and the validity of the business strategy and business
model; in particular, the Directors observed how the trend in customer acquisition was reversed and how the
net profit for the period, despite being negative as a whole, recorded significant improvement, with a positive
consolidated operating result (EUR 11.4 million) compared with a negative figure in the previous year (EUR
14.2 million) and a consolidated loss generated by operating activities which fell from EUR 127.7 million in
2008 to EUR 14.7 million in 2009, also thanks to revenues generated by the writing off of EUR 42.3 million
of debt by lenders, in line with the provisions of the agreements;
c) verified consistency between the Business Plan and the financing requirements of the new debt
structure, as well as the suitability of the Plan to respect the covenants and other contractual obligations.
These elements mean the Group is reasonably positioned to implement the Business Plan and this will
enable it to achieve a situation of financial and economic equilibrium in the long-term.
In conclusion, the Directors, in analysing what was already achieved in the context of a path aimed at
allowing the Group and Company to reach long-term financial and economic equilibrium, recognise that,
as of today’s date, uncertainties remain, as mentioned previously, relating to events and circumstances that
could raise significant doubts about the ability of the Group and the Company to continue to operate on
the basis of the assumption of a going-concern. But, after making the necessary checks and assessing the
uncertainties identified in light of the additional elements described, they have the reasonable expectation
that the Group and the Company possess adequate resources to continue operations in the foreseeable
future and have therefore adopted the going-concern assumption in preparing the financial statements.
Cagliari, 26 March 2010
The Chief Executive Officer The Executive appointed to draw up
the company accounting documents
Renato Soru Luca Scano