Reports and Financial Statements As at 31 December 2013 2 3 Contents
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Financials 2 013 Parent Company Financial Statements as at 31 December 2013 Consolidated Financial Statements as at 31 December 2013 Reports and Financial Statements as at 31 December 2013 2 3 Contents Introduction 5 Parent Company Financial Statements as at 31 December 2013 13 Consolidated Financial Statements of the Rai Group as at 31 December 2013 127 Financial Statements of subsidiaries 201 Fianancial Statements of associated companies 231 Corporate directory 236 4 Introduction Parent Company Consolidated Introduction Parent Company Consolidated 5 Introduction Corporate Bodies 6 Organisational Structure 7 Letter to Shareholders from the Chairman of the Board of Directors 9 6 Introduction Parent Company Consolidated Corporate Bodies Board of Directors Chairman Anna Maria Tarantola Directors Gherardo Colombo Rodolfo de Laurentiis Antonio Pilati Marco Pinto Guglielmo Rositani Benedetta Tobagi Luisa Todini Antonio Verro Secretary Nicola Claudio Board of Statutory Auditors Chairman Carlo Cesare Gatto Statutory Auditors in office Domenico Mastroianni (1) Maria Giovanna Basile Alternate Statutory Auditors Liana Meucci Pietro Floriddia General Manager Luigi Gubitosi Independent Auditors PricewaterhouseCoopers (1) Replacing Antonio Iorio from 30 May 2013 Introduction Parent Company Consolidated 7 Organisational Structure (summary) Broadcasting Area • Rai Way SpA Commercial Area • Commercial Management • Rai Pubblicità SpA New Media Editorial Area • RaiNet SpA Radio Editorial Area • Radio - Channels - Public Service Channels - News TV Editorial Area • General interest channels • Semi-generalist channels • Specialised channels • News • Rai Fiction • Rai Cinema SpA • Rai World SpA Communication Human and Public Deputy General Manager coordination of radio and Legal Resources Relations television offering Affairs CFO General Manager Internal Auditing Chairman of the Board of Directors Supervisory Board Board of Directors 8 Introduction Parent Company Consolidated Introduction Parent Company Consolidated 9 Letter to Shareholders from the Chairman of the Board of Directors Shareholders, 2013 was an important year for Rai, characterised holder of the licence for Public Service radio and by commitments aimed towards the construction of television broadcasting, subject to a wide range a new Rai. of restrictions and controls whilst also being, a stock company operating within a competitive and In line with the mandate received, economic- highly dynamic market, with one of the highest financial, managerial-organisation, technological rates of innovation. and editorial projects were launched to make Rai a healthier, more solid and independent company, with a greater capacity to produce first- Activity in 2013 was focused on four main rate programmes that are clearly identified and areas of intervention: management, advertising, identifiable as Public Service products. technological innovation, offering and projects. The first significant result have been achieved on all fronts. The operational actions concerned the rationalisation of spending on a stabilised basis, The income statement for the year showed again favouring the internationalisation of production an, albeit modest, profit. Important managerial with the aim of optimising the use of resources and organisational actions were carried out during and the effectiveness of controls; the recovery the year. The necessary company digitalisation of advertising market shares, also through process was launched, sustaining considerable the strengthening of commercial levers; the investments. The editorial line was also completely acceleration of the digitalisation of television reviewed. production and the consolidation of the Research Centre in Turin; and the start of the process to Progress is based upon a programmatic strengthen the editorial product and new projects, document, the Business Plan 2013 – 2015, which including those of an experimental nature. is directing all of Rai’s strategic and operational activities. As mentioned earlier, the Group and Parent A plan divided into twelve segments, the Company income statements present a slight implementation of which is assigned to project profit, of 5.3 million euros and 4.3 million euros managers for each of the specialised areas respectively, compared to a loss of 244.6 million identified as priorities, thus ensuring effective and euros and 245.7 million euros in the previous efficient execution. year. This was a better result than that forecast in the budget. It is a Plan which aims to make Rai not only 2013 was positively influenced by the absence of a competitive company, thanks to a form of costs for big sporting events which characterised management which is attentive to limiting 2012, but also by considerable savings in expenses whilst strongly supporting technological operating and personnel costs, amounting to a innovation, but also a Public Service company, total of over 60 million euros for the Group and which is focused on offering quality in the various approximately 50 million euros for the Parent genres, with the challenging aim of contributing to Company. raising the country’s cultural level. An all-round indicator: the ratio between the cost of personnel and the gross operating margin It is an ambitious Plan, which intends to strengthen improved, from 2.1 to 1.5. two types of leadership on all platforms and for all areas of the company: one of importance, Due to the on-going severity of the economic as an authoritative, independent and credible context, net revenues continue to decline. source, and one of creativity, with the know-how Due to the financial difficulties experienced by to design new formats, new languages and new households, income from licence fees endured a programmes. reduction in new subscribers and a progressive increase in arrears. These aims are pursued within a fairly articulated The advertising market is still in recession: in just and complex regulatory framework, which reflects two years (2012-2013) the television segment the hybrid nature of Rai, a public company, incurred a loss of 1.1 billion euros: nevertheless, 10 Introduction Parent Company Consolidated Letter to Shareholders from the Chairman of the Board of Directors in 2013 Rai registered a better performance than Programming for Italians abroad was strengthened other companies in the market. and an active presence in the various associations in the Euro-Mediterranean area was ensured, The consolidated net financial position, which best obtaining extensive and tangible appreciation for depicts the current situation, was impacted by our work. disbursements regarding the renewal of the white and blue collar labour agreement, which expired The offering for children was distinguished by the several years ago, by staff resignation incentives high qualitative and quantitative level of original and by advance payments for sporting events. production and programming, particularly with the further consolidation of the channel Rai Yoyo, Rai’s financial position and the solidity of its absolute leader among preschool children. We equity structure are heavily influenced by the have contributed to the national production of government’s decision not to apply the criteria cartoons with investments in products that are also envisaged by law for the determination of the appreciated abroad. single licence fee and by the absence of suitable measures to fight the evasion of this tax, which During 2013 we continued working towards exceeds 27 percent in Italy, compared to a the accomplishment of the ambitious plan of European average which is below 10 percent. technological renewal, launched in autumn 2012. The loss of income due to evasion is This plan is part of a broader strategy which aims approximately 500-600 million euros a year, at understanding the implications, opportunities reducing the prospect of investing in products and and manner in which we can operate in order technology. to work more competitively and effectively in a The amount of Public Service costs not covered by digital world. In December 2013, rainews.it was the licence fee has been approximately 2.3 billion launched and is the new reference portal for Rai’s euros since 2005, as certified by the separate news. accounting approach. Fighting licence fee evasion and acknowledging In an increasingly competitive setting, Rai – thanks Rai the certified payment for the services rendered to the fundamental contribution of the specialised are primary aims but they are not within Rai’s channels – firmly maintained its leadership position reach. in terms of audience, for the whole day and at Rai can only cooperate with the specifically prime time. appointed institutions, reiterate its stance and continue to provide high quality products with The indexes for corporate reputation and quality stringent economic criteria. are very positive and reassuring, highlighting the fact that overall confidence in Rai is still solid. On the managerial-organisational front, model 231, the code of ethics, buying procedures and The quality of programming is also shown in the internal audit system were reviewed and the the numerous awards and acknowledgements reorganisation of the whole system of company received by Rai in 2013. processes begun. Among the many awards received, special Staff evaluation systems are also being introduced mention goes to the Golden Lion awarded at the and organisation processes are being gradually Venice Film Festival to the amazing Sacro Gra simplified in order to reduce reporting