Tiscali 2008 Annual Report Download - page 104

103
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES
Commitments and other guarantees
A breakdown of guarantees given during 2008 is shown in the
table below.
EUR (000) 31.12.2008 31.12.2007
GUARANTEES GIVEN 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
Transactions with related parties
Dealings with non-consolidated Group companies
The Group has no significant dealings with non-consolidated
companies.
Dealings with other related parties
During the year, the Tiscali Group had a number of dealings with
related parties, under conditions considered normal on the
respective reference markets, taking into account the
characteristics of the goods and services provided
The table below summarises the balance sheet and income
statement values recorded in the Tiscali Group’s consolidated
financial statements at 31 December 2008 arising from
transactions with related parties.
The most significant balances, at 31 December 2008, summarized
by supplier of the services, are as follows:
INCOME STATEMENT VALUES Notes 31.12.2008 31.12.2007
EUR (000) Group Group
Shardna 1 0 0
Interoute 2 (1,621) (557)
Leadsatz GmbH 3 (100) (620)
Bizzarri Francesco 4 0 (69)
Borghesi e Colombo Associati Srl 5 0 (770)
Studio Racugno 6 (69) (59)
TOTAL SUPPLIERS OF MATERIALS AND SERVICES (1,790) (2,075)
Andalas SA 7 (2,747) (1,934)
TOTAL (4,538) (4,009)
BALANCE SHEET VALUES Notes 31.12.2008 31.12.2007
EUR (000) Group Group
Shardna 1 331 331
Interoute 2 (948) (76)
Leadsatz GmbH 3 (60) (7)
Bizzarri Francesco 4 (37) (25)
Borghesi e Colombo Associati Srl 5 0 (270)
Studio Racugno 6 (27) (23)
TOTAL SUPPLIERS OF MATERIALS AND SERVICES (741) (70)
Andalas SA 7 (30,228) (30,086)
TOTAL (30,970) (30,156)
1) Shardna S.p.A. company invested in by the majority
shareholder Renato Soru. The dealings, maintained by the
Parent Company, relate to the sub-letting of the Tiscali offices
in the suburbs of Cagliari.
2)
Interoute : group entirely owned by the Sandoz Family
Foundation, a Tiscali shareholder. The costs incurred during
the year refer to purchases made by Tiscali Italia S.p.A. in
relation to dark fibre and related maintenance.
3)
Leadsatz GmbH : a company with whom an outsourcing
agreement has been entered into for the Portal area of the
German companies sold off. Mr. J. Maghin, director of
Leadsatz GmbH was also, during 2007, a minority
shareholder of Ishtari Gmbh (a company invested in by
Tiscali Deutschland Gmbh).
4)
Mr. F. Bizzarri : member of Tiscali Spa’s Board of Directors,
has stipulated an IPTV consultancy contract with the Parent
Company and with the subsidiary Tiscali Italia S.p.A..
5)
Studio Borghesi e Colombo Associati Srl : the director
Arnaldo Borghesi, member of Tiscali S.p.A.’s Board of
Directors, up until 25 February 2009 provided Tiscali
S.p.A. with consultancy services as part of extraordinary
finance transactions.
6)
Studio Racugno : the director Gabriele Racugno, member
of Tiscali S.p.A.’s Board of Directors, up until 29 February
2008 provided Tiscali Italia S.p.A. and Tiscali Service S.p.A.
with legal and out-of-court assistance mainly concerning
financial and intellectual property contractual matters.
7)As indicated in the explanatory notes, the shareholder
Andalas Limited granted a loan in 2004 bearing interest
at market rates. The loan agreement explicitly envisages
subordination with respect to the other debts of the Tiscali
Group.
Remuneration of the Directors, Statutory Auditors
and Executives with strategic responsibility
The 2008 remuneration due to the directors and statutory auditors
of Tiscali SpA in relation to the performance of their functions,
in the Parent Company and in other consolidated companies, is
presented below:
EUR [phone]
Directors 5,994 1,977
Board of Statutory Auditors 188 202
Total remuneration 6,182 2,179
The total value of the cost incurred in 2008 for the remuneration
due to executives with strategic responsibility amounted to EUR
5.8 million. This liability includes the following amounts:
•the figurative cost of the stock option plans granted to a
number of Group executives for EUR 2 million;
•the Group’s contributions to public and corporate welfare
funds for EUR 0.4 million.