COMP LOGRO INDICADOR 2014 2015
3.4. SEGURIDAD Y PRIVACIDAD DE LA INFORMACIÓN.
write off such costs in full. The balance of lire 284 million refers primarily to research costs incurred by company SIAS.
Industrial patents and intellectual property rights Dec. 31, 1999 Dec. 31, 2000
1,451 1,404
These refer mainly to software developed for the editing of local newspapers (lire 216 million), the administration of the Group’s advertising concessionaire (lire 510 million), and for Internet application of subsidiaries Aleph (lire 224 million) and Studio Vit (lire 277 million).
Investments during the year amounted to lire 934 million, while depreciation charges tota- led lire 1,011 million.
Concessions, licenses and trademarks Dec. 31, 1999 Dec. 31, 2000
13,294 18,762
The item refers mainly to licenses for the use of software packages expected to have a useful life spanning over several years.
Total investments for the year amounted to lire 11,956 million. The most significant investments were:
• the Group’s parent company (lire 1,964 million) and local newspapers (lire 354 mil- lion) for the upgrade of editing, administrative and distribution systems;
• Kataweb (lire 6,928 million) mainly due to the upgrade of databases (lire 800 mil- lion), the development and management of Internet sites (lire 4,200 million), messa- ging system Kataweb messenger (lire 409 million), and e-commerce activities (lire 755 million);
• other companies of the Kataweb group (for a total of lire 2,260 million), for the deve- lopment of Zivago’s (lire 1,329 million) and I.F.E.’s (lire 469 million) sites and e-com- merce systems, in addition to application software of companies active in the supply of web solutions.
Goodwill on titles Dec. 31, 1999 Dec. 31, 2000 la Repubblica 355,585 344,620
Local newspapers 97,865 94,619
Free press 5,126 4,955
Il Piccolo 56,590 55,080
Messaggero Veneto 75,252 90,540
On April 22, 2000 the Group’s parent company acquired an additional 4.77% share in the capital stock of Editoriale Messaggero Veneto and the whole capital stock of Editoriale Lino Zanussi, owner in turn of 35% of Editoriale Messaggero Veneto and of a 16.4% share in printing company V.I.T.A. Subsequently, subsidiary NCE - Newco Edit acquired a further 1.42% share of Editoriale Messaggero Veneto. The total difference between the total price paid for the acquisition of the said investments and the related shares in the shareholders’ equity of acquired companies amounting to lire 17,715 million has been attributed in full to the value of the Messaggero Veneto title.
The value of titles in the Internet area refers to publications controlled by Kataweb News (lire 1 million) and the Fantacalcio and PC Zeta trademarks, owned by Studio Vit (lire 1 million).
The depreciation expense for the year amounted to lire 18,621 million.
Consolidation differences Dec. 31, 1999 Dec. 31, 2000
Equity investments in the radio sector 6,308 4,211
la Repubblica editions 23 15
Friuli Venezia Giulia region companies 48,619 47,941
Internet companies 4,902 34,829
Total 59,852 86,996
Consolidation differences refer mainly to the difference between the price paid for the acquisition of new investments and the related share in the shareholders’ equity.
During the year, the Group parent company acquired an additional 2.73% share in prin- ting company V.I.T.A., while further 1.07% share in V.I.T.A. was acquired by NCE - Newco Edit. The difference in the price paid for the acquisitions and the related share in the shareholders’ equity of the companies acquired, amounting to lire 261 million, has been recorded among consolidation differences.
On June 6, 2000 subsidiary Edigraf, a company active in the printing of newspapers in the North-Eastern region, acquired 100% of printing company Artigraficheriva for lire 486 million, representing a difference of lire 152 million over the relating share in the com- pany’s shareholders’ equity.
The increase in the consolidation difference relating to investments in the Internet area is due to acquisitions made during the year by subsidiary Kataweb, the Group’s holding company for the sector:
• On January 18, 2000 Kataweb acquired a 70% share in Quadrante, a company based in Bologna active in the web solutions sector. The price paid for the acquisition was equal to lire 3,519 million, representing a difference of lire 3,385 million over the
• On February 24, 2000 it acquired a 70% share in Studio Vit, a Milan based company owner of the Fantacalcio trademark. The price paid for the acquisition was equal to lire 11,030 million, representing a difference of lire 6,750 million over the relating share in the company’s shareholders’ equity. Such difference has been prudently writ- ten down to reflect lower earnings projections for the sector.
• On April 5, 2000 it acquired a 70% share in Sias, a company based in Pisa active in the web solutions field. The price paid for the acquisition was equal to lire 1,823 mil- lion, representing a difference of lire 1,537 million over the relating share in the com- pany’s shareholders’ equity.
• On April 19, 2000 it acquired a 60% share in Web Bridges, a company based in Rome also active in the web solutions field. The price paid for the acquisition was equal to lire 6,327 million, representing a difference of lire 6,205 million over the relating share in the company’s shareholders’ equity.
• On July 24, 2000, following a previously concluded agreement, it acquired an additio- nal 12.5% share in the capital stock of Uhuru Digital Design, of which it already held an 80% share. The price paid for the acquisition was lire 30 million, representing a difference of lire 20 million over the relating share in the company’s shareholders’ equity.
• On August 30, 2000 it acquired an additional 49% share in the capital stock of Aleph, in which it already held a 51% share. The price paid for the acquisition was lire 25,049 million, representing a difference of lire 23,659 million over the relating share in the company’s shareholders’ equity.
• On October 27, 2000, it acquired an 80% share in the capital stock of Cellularmania.com, a company managing a site on the cellular telephone market. The price paid for the acquisition was lire 554 million, representing a difference of lire 538 million over the relating share in the company’s shareholders’ equity.
Consolidation differences relating to companies Easy Commerce, I.F.E. and Zivago have been written down respectively by lire 606 million, 307 million and 174 million.
The depreciation expense for the year was lire 14,308 million.
Goodwill on other assets Dec. 31, 1999 Dec. 31, 2000
25,170 59,393
Goodwill on other activities refers to goodwill paid by Group radio stations for the acqui- sition of broadcast frequencies.
Investment in frequencies amounted to lire 41,991 million and referred to 147 new FM posts aimed at improving the quality of service and the coverage of the signal for the three radio stations of the Group.
The depreciation expense for the year amounted to lire 7,607 million.
Work in progress and advances Dec. 31, 1999 Dec. 31, 2000
2,367 6,747
Work in progress include lire 5,101 million of costs relating to the Vivacity project for the creation of a portal network by a company owned jointly by Kataweb and Unicredito Italiano, to be incorporated in the first months of 2001.
Other than the cost of such project, investments during the year totaled lire 1,635 million – mainly referring to subsidiaries Selpi for the creation of an information system for the centralization of the Group’s paper warehouses (lire 600 million), Elemedia, for the acqui- sition of frequencies (lire 554 million), and Studio Vit, for the development of the
Fantacalcio site (lire 116 million), in addition to lire 2,333 million due to reclassification under other intangible assets of investments no longer in their startup phase.
Other intangible assets Dec. 31, 1999 Dec. 31, 2000
Capital improvements on leased assets 9,695 11,412
Other 1,563 5,326
Total 11,258 16,738
Capital improvement on leased assets refer primarily to the restructuring of leased offices in which Group companies are based, and the cost of accessories for rotary presses leased from subsidiary Rotosud. Investments in the year amounted to lire 5,798 million, while the amortization expense was lire 4,743 million.
The most significant investments related to the renovation of the Group’s parent com- pany’s offices (lire 1,935 million), and of those of Elemedia (lire 550 million), A. Manzoni & C. (lire 1,206 million), and of companies in the Internet area (lire 708 mil- lion), as well as to investments in the upgrade of rotary presses leased from Rotosud (lire 569 million), in addition to stocks for subsidiaries’ I.F.E. and Esperya USA’s warehouses (lire 230 million), active in the distribution of food and wine through the Internet.
Other intangible assets include mainly accessory costs (stamp duties, notary public expen- ses) incurred by Elemedia for the acquisition of new businesses (lire 1,955 million), costs for the launch of the first on-line university degree course organized by Somedia in coo- peration with the Milan Polytechnic (lire 1,178 million), in addition to costs incurred by Kataweb for the production of sites (lire 955 million).
The depreciation expense for the year amounts to lire 3,232 million. Tangible assets
Tangible assets at December 31, 2000 amounted to lire 237,479 million, representing an increase of lire 13,730 million on December 31, 1999. They are made up by buildings and office furniture owned by consolidated companies and are used in ordinary business acti- vities.
Investments made in the year amounted to lire 70,840 million, while the depreciation expense was lire 54,693 million.
The most significant investments referred to:
• the Group parent company (lire 18.5 billion) for the completion of projects aimed at increasing black and white printing and color pre-printing (lire 9.1 billion), extraordi- nary maintenance of production plants (lire 3.4 billion), the strengthening of editing systems (lire 2.1 billion) and of information and network systems (about lire 3.2 bil- lion);
• subsidiary Elemedia (lire 10.8 billion) for high frequency transmission equipment (lire 6.3 billion), the development of a satellite radio (lire 1.4 billion) and TV (lire 0.6 billion) broadcasting network, in addition to the update of network and corporate information systems (lire 2.5 billion);
• local newspapers (lire 13.3 billion), for the completion of color and pre-printing projects (lire 2.3 billion), the upgrade of editing systems (lire 1.4 billion) and produc- tion plants (lire 7.4 billion), the acquisition of a plot of land on which the Livorno printing center is built (lire 0.7 billion) and office furniture and equipment (about lire 1.5 billion);
• subsidiary Rotosud (lire 4.5 billion) for the extraordinary maintenance of a rotary press (lire 1.2 billion), the completion of a pallet mover plant (lire 0.7 billion) and the acquisition of engraving equipment (lire 2 billion);
• advertising concessionaire A. Manzoni & C. (lire 1.6 billion) for furniture and acces- sories used in the renovation of offices;
• Internet area (lire 16.6 billion) for the hardware necessary for the development and management of Kataweb sites (lire 8.6 billion) and of subsidiary Aleph (lire 2.5 bil- lion) and other subsidiaries in the web solutions area (lire 1.3 billion), in addition to the construction of logistic infrastructure of e-commerce companies I.F.E. (lire 2.5 billion), Esperya USA (lire 0.3 billion) and Zivago (lire 0.1 billion).
Some subsidiaries make use of leased assets, as shown in the commitments section of the balance sheet and commented in the notes.
Some subsidiaries have carried out revaluations of tangible assets pursuant to special laws. Guarantees have been pledged on some tangible assets in favor of banks that have exten- ded subsidized loans to subsidiaries, as shown in the commitments section of the balance sheet and commented in the notes.
Financial assets
Financial assets at December 31, 2000 amounted to lire 84,343 million (lire 31,568 mil- lion at December 31, 1999), increasing by lire 52,775 million.
Investments
At December 31, 2000, investments amounted to a total of lire 58,813 million (lire 14,355 million at December 31, 1999), and were made up as follows:
% ownership Book value
Dec. 31, 1999 Dec. 31, 2000 Dec. 31, 1999 Dec. 31, 2000
Investments valued on equity:
Indipendenza Srl 50% 50% 3,940 3,994
Le Scienze SpA 50% 50% 812 636
Saire Srl 50% 50% 593 543
La Rivista dei Libri SpA 50% 50% 55 43
CNN Italia SpA 30% 30% 60 66
Editoriale Libertà SpA - 35% - 40,499
Altrimedia SpA - 35% - 1,424
Zivago SpA 50% - 132 -
E-Viaggi SpA 50% - 290 -
Total investments valued on equity 5,882 47,205 Investments valued at cost:
IEG Srl 44,3% - 335 -
Rotocolor SpA (in liquidation) 100% 100% 170 170
E.N.A. Ltd (in liquidation) 25% 25% 24 24
Enotrya Srl 70% 70% 105 105
Kataweb Inc. 100% - 473 -
Ansa Soc. Coop. a r.l. 19.6% 19.6% 2,880 4,230
E Ink Corporation Inc. 1.1% 1.1% 2,868 2,868
Presto Technologies Inc. 7.8% 7.8% 1,154 1,154
DAB Servizi SpA 12.8% 12.5% 255 255
Trento Press Service Srl 14.4% 14.4% 72 72
Cooperativa Libera Stampa a r.l. 12.5% 12.5% 28 28
A.G.F. Srl 10% 10% 20 20
Gutemberg 2000 Srl 2% 2% 8 8
Centro Europa Ricerche Srl 20% 20% 4 4
Beenz.com Inc. (USA) - 4% - -
Beenz.com Italia SpA - 49% - 1,482
TCD SpA - 30% - 1,057
Enotrya USA Inc. - 100% - -
Other investments 77 130
Total investments valued at cost 8,473 11,608
Investments in companies valued on equity
Acquisitions
• On June 22, 2000, subsidiary Finegil Editoriale acquired a 35% share in Editoriale Libertà (formerly Stabilimento Tipografico Piacentino Sapa), editor of Libertà, a Piacenza newspaper, for lire 47,536 million, and Altrimedia, the newspaper’s adverti- sing concessionaire, for lire 1,963 million. Subsequently, such companies distributed part of retained earnings amounting respectively to lire 7,259 million and lire 770 mil- lion.
Changes in consolidation criteria
• Companies Zivago and E-Viaggi.com, valued at equity at December 31, 1999, are now consolidated using the proportional method.
Other changes
• The book value of company Le Scienze declines by lire 176 million as a result of the net profit for the year amounting to lire 90 million and lire 265 million of dividends distributed.
• The book value of company Saire declines by lire 50 million as a result of net profit amounting to lire 30 million and dividends distributed amounting to lire 80 million.
• The book value of company Indipendenza increases by lire 55 million due to the share in the profit reported for the year.
Investments in companies valued at cost
Acquisition and incorporation of companies
• On January 28, 2000 Esperya USA, a company of the Kataweb Group, incorporated Enotrya USA Inc., a company incorporated in Wilmington, Delaware (USA) having a capital stock of 1 US dollar (no par value). The company will develop the sale of high quality wines on the American market through the Internet. The company is not yet operational, and has therefore not been consolidated.
• On March 31, 2000, subsidiary Kataweb acquired for lire 24,567 million a 4% share in Beenz.com Inc., a New York based company, active in marketing activities aimed at developing customer loyalty of Internet users. Such investment has prudentially been written down at the end of the year to take into account the uncertainty relating to future earnings.
• On June 21, 2000 subsidiary Kataweb incorporated, together with the Municipality of Trieste and other industrial and banking partners, TCD-Trieste Città Digitale SpA, a company based in Trieste, underwriting a 30% share in its capital stock. The company will create a local portal for the city of Trieste.
• On June 22, 2000, subsidiary Kataweb incorporated, in partnership with the Spanish affiliate of Beenz.com, Beenz.com Italia SpA, a company based in Milan with a capi-
Italy the customer loyalty system created by Beenz.com. The original value of the share, amounting to lire 1,910 million, has been written down to the book value of the share held in the company in view of the difficult economic situation in the sector.
Changes in consolidation criteria
• Company Kataweb Inc., which in the financial statements at December 31, 1999 was valued at cost, has now been consolidated on the line-by-line method.
Liquidation
The liquidation of IEG Srl was completed in the year.
Other changes
The increase in the book value of affiliated company Ansa is due to the share in the capi- tal stock increase currently underway.
Long-term receivables
Dec. 31, 1999 Dec. 31, 2000 of which expiring over 5 years
Guarantee deposits 3,269 2,249 624
Tax receivables for advances on taxes payable
on Employee severance reserve 11,869 10,914 -
Total 15,138 13,163 624
Guarantee deposits at December 31, 2000 refer mainly to leasing contracts. The decline of lire 396 million on December 31, 1999 is due mainly to the refund obtained by the Group parent company of a lire 730 million deposit paid in 1999 to supplier Cerutti SpA against the order of new printing equipment, offset only in part by guarantee deposits for the new offices of Internet companies (lire 309 million).
Tax receivables for advances on taxes payable on Employee severance reserve refer to advances paid pursuant to Law 140/97 on amounts accrued by employees upon termina- tion of employment at December 31, 1997, revalued yearly. The net decrease of lire 955 million on December 31, 1999 is due to the use of the provision for personnel terminating employment during the year.
Other fixed financial assets
These amount to lire 11,743 million (lire 2,075 million at December 31, 1999). The amount relates to Mediocredito Lombardo 1997-2001 floating-rate bonds with a coupon set at 6-month Euribor less 20 basis points, and to General Motors Acceptance Co. (G.M.A.C.) floating-rate bonds expiring August 29, 2003, with a coupon set at 3-months Euribor plus 20 basis points and a face value of euro 5 million, equal to lire 9,668 million, underwritten by the Group parent company and pledged as guarantee for subsidized loans.
C – CURRENT ASSETS