Transparency Report 2017
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TRANSPARENCY REPORT 2017 Directive 2014/26/UE art. 22 – Legislative Decree 35/2017 art.28 SIAE - Società Italiana degli Autori ed Editori Viale della Letteratura, 30 — 00144 Roma, Italia www.siae.it CONTENTS SIAE BODIES 3 INTRODU CTION 6 1) Information provided according to the Annex referred to in art. 28, subparagraph 2 of the 6 Legislative Decree no.35 of March 15, 2017 a) Budget documents : Balance Sheet , Income Statement and Cash Fl ow Statement 6 b) Description of the activities performed throughout the accounting period 23 c) Details regarding the refusal to confer a license in accordance with art. 22, 24 subparagraph 2 d) SIAE Legal and governance structu re 24 e) Entities directly or indirectly owned or controlled by SIAE 27 f ) Remunerations paid to the Supervisory Board and to the Management Board 28 g) Financial information referred to in point 2 28 h) Special Relation rega rding the utilization of the amounts deducted for social, cultural and 29 educational purposes 2) Financial information referred to in point 1, letter g 33 a) Financial information regarding the rights incomes – Premise 33 b) Financial information on the cost of rights management and other services provided by 37 the Company to the right-holders c) Financial information regarding the amounts due to the right -holder s 44 - MUSIC REPERTORY 47 - CINEMA REPERTORY 53 - DOR -LYRIC REPERTORY 59 - OLAF REPERTORY 67 ATTACHMENT 1: Relations with other Collecti ve Management Organizations 73 2 TRANSPARENCY REPORT 2017 SIAE BODIES As of the approval date of the Transparency Report 2017 PRESIDENT Sugar Filippo Nicola MANAGEMENT BOARD Monti Arduini Federico Proietti Biagio Purgatori Andrea Scordino Luca Domenico SUPERVISORY BOARD Micalizzi Franco Maisano Michele Franchini Paolo Mauri Pierangelo Angrisano Alessandro Maxia Maria Grazia Barbagallo Angelo Minellono Cristiano Biocca Antonino Narici Ilaria Anna Bolelli Ferrera Antonella Ostali Piero Giancarlo Bonizzoni Roberto Perilli Paola Borgatti Gianfranco Piovani Nicola Brunetta Caprini Linda Polillo Marco Buja Claudio Prudente Oscar Cinque Massimo Razzini Roberto Costa Vittorio Rizzi Antonella Daldello Franco Solbiati Alessandro De Martino Giuseppe Tommaso Vito De Siervo Luigi Verona Tonino Gramitto Ricci Alfredo Villevieille Bideri Silvia 3 Lavezzi Mario Leonardi Piero ADVISORY COMMITTEES MUSIC SECTION CINEMA SECTION Benini Massimo Alberico Michele Buja Claudio Barbanente Mariangela Chiaravalle Valeriano Biocca Antonino Corsi Paolo Conforti Michele Costa Vittorio Koch Giovanna Fedele Francesco Saverio Gaudino Lucio Galletti Anna Lavezzi Mario Minellono Cristiano Razzini Roberto DOR SECTION LYRIC SECTION Amurri Valentina Battistelli Giorgio Brunetta Caprini Linda Cannito Luciano Cavosi Roberto Moro Laura Cinque Massimo Narici Ilaria Anna D’Arborio Paola Ostinelli Cristiano Di Stefano Riccardo Savasta Alessandro Flora Giovanna Longoni Gianmario OLAF SECTION Bolelli Ferrera Antonella Fallai Paolo Foschini Cristina Hoepli Giovanni Ulrico Carlo Benigni Claudio 4 TRANSPARENCY REPORT 2017 Piccarolo Laura AUDIT COMMITTEE INTERNAL AUDIT Belmonte Laura Scordino Luca Domenico Fiori Giovanni Nova Massimiliano Substitutes: De Buglio Massimo Romani Barbara GENERAL DIRECTOR Blandini Gaetano 5 INTRODUCTION On March 27, 2017, the Legislative Decree no.35 of March 15, 2017 was published on the Official Gazette of the Italian Republic (no. 72) which sets out the "Implementation of the Directive 2014/26/UE regarding the collective copyright management and the connected rights and the concession of multiterritory licenses for rights on musical works for the online utilization in the internal market". In particular, the decree transposes the Community rules setting the requirements in order to ensure the management proper functioning regarding the copyrights and the connected rights and the concession of multiterritory licenses operated by the collective management organizations for the online utilization of musical works in the internal market. Article 28 of the decree introduced the annual Transparency report as a binding document, including the Special report regarding the utilization of the amounts detracted in order to provide social, cultural and educational services. The Transparency report must at least contain the information required by a special Attachment to the decree. Apart from the Transparency report, SIAE draws up and transmits to the Parliament and to the supervisory bodies an annual report regarding the results of the developed activity, related to transparency and efficiency profiles. *** Numbers format It should be noted that dots are used as thousands separators while commas are used as decimal separators. 1) Information provided according to the Annex referred to in art. 28, subparagraph 2 of the Legislative Decree no.35 of March 15, 2017 a) Budget documents: Balance Sheet, Income Statement and Cash Flow Statement SIAE draws up its Financial Statement in accordance with the Book V, Title V, Chapter V, Section IX, of the Civil Code (Legislative Decree no. 35/2017 art.8 subparagraph 1 d) 3), as reformed by the Legislative Decree no. 139/2015, and the accounting standards issued by the Italian Accounting Body (OIC), updated during the year 2016. Moreover, starting from January 1, 2005, SIAE voluntarily underwent a financial audit in accordance with the art. 2409-ter of the Civil Code (now Article 37 of the Legislative Decree of January 27, 2010, no.39). The Financial Statement dated December 31, 2017 consists of: - Balance Sheet, Income Statement and Notes on the Accounts; - Management Report; 6 TRANSPARENCY REPORT 2017 - Cash Flow Statement; - Separate reports concerning “Endorsement”, “Solidarity Fund” e “Project SILLUMINA” managements. The Financial Statement, in accordance with the scheme described by the Civil Code for Limited Companies, has a scalar structure, with the evidence of the “Operative Result” as the difference between Production Value and Costs (so-called A-B) and (separately) of the result of the financial management. What is more, compared to other industrial realities, SIAE presents strong elements of differentiations because the production cycle is reverse as the revenues (the collection of the copyright) anticipate the expenditures (inputs acquisition). This leads to the circumstance that the economic parameter represented by the difference between Production Value and Costs (Difference between A-B of the Income Statement) is not properly representative, because the capacity to produce liquidity and, as a consequence, financial incomes is physiological (therefore a typical element). The Income Statement was therefore managerially re-classified in order to provide the reader useful information for the interpretation of the economic outturn of the current management of the business and of the one related to the strategic actions put in place during the accounting period. 7 2017 Accounting period - Reclassified Income Statement (amounts in millions of euros) CURRENT MANAGEMENT 2017 2016 Revenues and Incomes 176,6 177,8 Copyright 118,3 123,9 Private Copy 4,2 4,4 Convention services 30,0 30,4 Other revenues and incomes 7,1 11,4 Financial management balance 16,9 7,7 Costs and expenses 159,6 161,9 Staff 76,2 81,1 Management and functioning 75,7 74,6 Different charges 2,7 2,7 Amortizations 4,9 3,5 Current management result 17,0 15,9 STRATEGIC MANAGEMENT 0,0 Plus/minus from financial assets cession 0,0 0,0 Strategic plan (6,6) (9,0) Transposition of the Directive Barnier, sectoral studies and organization of the elections (1,0) 0,0 Corporate reorganization charges (4,4) (5,6) Cultural and social activities (0,9) (0,9) Strategic management balance (12,9) (15,5) #N/D Management result 4,1 0,4 Income taxes 0,3 (0,4) Separated managements 0,1 0,5 Special sectional accounts 0,0 0,0 Result of the accounting period 3,9 1,3 The reclassified scheme listed above points out that the current management produced revenues equal to 176,6 millions of euros and costs equal to 159,6 millions euros. The profit, of about 17 millions of euros (substantially equal to the financial component), allowed to sustain the strategic charges and the social and cultural activities. The presence of profits consents to plan actions that benefit the membership base in terms of: - Decrease of commissions (the average commission in 2009 amounted to 16,7 %, in 2017 to 15,3 %). - Investments in order to improve the business efficiency (informatics, reorganization, etc.); from 2013 to 2017, 28,3 millions of euros were invested only for informatics. - Support to social and charity initiatives and cultural promotion. Indeed, without these actions, the Financial Statement would register large surpluses that are not consistent with the company mission. 8 TRANSPARENCY REPORT 2017 The surpluses, equal to 3,9 millions of euros in this particular case, increase, as provided for in the Memorandum of Association, the Reserves which represent, in the absence of a Share Capital, the only guarantee fund for the business continuity. Balance sheet 2017 2016 Asset B) FIXED ASSETS I) Intangible fixed assets 3) Industrial patents and use of intellectual property rights 5.318.760 5.358.039 6) Fixed assets under construction and advances 293.289 1.213.914 7) Other intangible fixed assets 3.983.288 3.268.297 Total intangible fixed assets (I) 9.595.337 9.840.250 II) Tangible fixed assets 1) Land and buildings 32.302.347 31.882.347 -Land and buildings amortization fund (9.814.682) (9.214.581) 22.487.665 22.667.766 2) Installations and machines 6.057.003 5.735.809 - Installations and machines amortization fund (4.907.343) (5.194.948) 1.149.660 540.861 3) Industrial and commercial equipment 15.273.462 16.356.510 - Industrial and commercial equipment fund (14.235.085) (14.853.720) 1.038.377 1.502.790 5) Fixed assets under construction and advances 0 20 Total tangible fixed assets (II) 24.675.702 24.711.437 III) Financial fixed assets 1) Holdings in: d) other companies 3.657 3.657 3.657 3.657 2) Receivables: d) from others - installments due in the following accounting period 72.031 88.564 - installments due after the following accounting period 96.462.783 84.281.378 96.534.814 84.369.942 3) Other securities: a) S.I.A.E.