Management Report
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Management Report 31 DECEMBER 2015 134th BUDGET www.siae.it SIAE Società Italiana Autori ed Editori CONTENTS SIAE CORPORATE STRUCTURE AND AGENCIES page 4 MANAGEMENT REPORT page 6 FINANCIAL STATEMENTS page 66 Assets page 68 Liabilites page 70 Income statement page 72 FINANCIAL REPORT page 77 Status page 79 Explanatory notes for the Budget page 79 Accounting standards and valuation criteria page 80 BALANCE SHEET page 86 ACTIVE page 88 B) Assets page 88 C) Current assets page 91 D) Prepayments and accrued income page 98 PASSIVE page 99 A) Net Assets page 99 B) Provisions for risks and charges page 101 C) Severance indemnities page 103 D) Debts page 104 E) Accrued liabilities page 106 Memorandum accounts page 107 INCOME STATEMENT page 108 A) Producation valuation page 111 B) Production costs page 113 C) Income and expenses page 118 D) Value adjustments to financial assets page 118 E) Extraordinary income and page 119 www.siae.it 4 MANAGEMENT REPORT 2015 Taxes page 119 SEPARATE ACCOUNTS page 122 SOLIDARITY FUND page 125 ENDORSEMENT MANAGEMENT page 134 FINANCIAL STATEMENT page 141 FINANCIAL AVAILABILITY REPORT page 144 APPENDICES page 147 Appendix 1 – Lands and Buildings as of 31.12.2015 page 149 Appendix 2 – Financial Assets as of 31.12.2015 page 150 Appendix 3 – Summary Table of Receipts for 2015 page 151 REPORTS page 155 Auditing Firm’s Report page 156 Board of Auditor’s Report page 159 SECTIONAL ANALYTICAL ACCOUNTING page 165 SIAE IN ITALY AND THE WORLD page 175 www.siae.it 5 SIAE CORPORATE STRUCTURE AND BODIES At the time of the approval of the Annual Budget Report 2015 PRESIDENT Sugar Filippo Nicola MANAGEMENT BOARD Monti Arduini Federico Proietti Biagio Purgatori Andrea Scordino Luca Domenico SUPERVISORY BOARD Micalizzi Franco Franchini Paolo Angrisano Alessandro Maisano Michele Barbagallo Angelo Mauri Pierangelo Biocca Antonino Maxia Maria Grazia Bolelli Ferrera Antonella Minellono Cristiano Bonizzoni Roberto Narici Ilaria Anna Brunetta Caprini Linda Ostali Piero Giancarlo Buja Claudio Perilli Paola Cinque Massimo Piovani Nicola Costa Vittorio Polillo Marco Daldello Franco Prudente Oscar De Martino Giuseppe Razzini Roberto De Siervo Luigi Rizzi Antonella Elmi Guido Solbiati Alessandro Gramitto Ricci Alfredo Tommaso Vito Lavezzi Mario Verona Tonino Leonardi Piero Villevieille Bideri Silvia ADVISORY BOARDS 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 Lusuardi Nicola Galletti Anna Gaudino Lucio Lavezzi Mario Minellono Cristiano Razzini Roberto www.siae.it 6 MANAGEMENT REPORT 2015 DOR SECTION LYRICS 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 Paolinelli Mario Piccarolo Laura AUDITOR’S BOARD INTERNAL REVIEW Belmonte Laura Scordino Luca Domenico Fiori Giovanni Nova Massimiliano Supplenti: De Buglio Massimo Romani Barbara GENERAL MANAGER Blandini Gaetano www.siae.it 7 Management Report Management Report 2015 www.siae.it SIAE Società Italiana Autori ed Editori Introduction On 19 March 2015 the SIAE Supervisory Board, chaired by Maestro Franco Micalizzi, appointed Filippo Sugar as Chairman of the company’s Management Board. The appointment, as required by law, was formalized by decree of the President of the Republic on 12 October 2015. President Sugar, in the hearings before the Cultural Commission of the Chamber of Deputies and the Senate, outlined the international environment in which collecting companies are operating, the risks related to protection of copyright, the innovations already realized and the main objectives underlying the company’s mandate. It’s difficult for a complex establishment such as the SIAE to shake off the stereotypically negative perception of tax collection agencies as being a technologically backward. A great deal, in fact a very great deal, has been done and there is still much to do. It is, however, also true that SIAE today is radically different from that of the past and is committed to finally being among the leading companies in the industry, and at European and Global levels. www.siae.it 10 MANAGEMENT REPORT 2015 In comparison with foreign collecting companies, SIAE is no longer losing. Far from it. A study by the international consulting firm Ovum (albeit on 2014 data) showed that SIAE occupies the 7th place among the top 20 collecting companies in the world in terms of collection. Rank Company (Country, currency) LCm 2013 LCm 2014 $m 2014 Variation % 1 SACEM (France, EUR ) 834.8 829.6 1,102.8 -0.6 2 PRS (UK, EUR ) 677.3 667.3 1,100.0 -1.5 3 GEMA (Germany, EUR ) 786.3 823.6 1,094.8 4.7 4 JASRAC (Japan, JPY) 110,845.6 112,494.8 1,068.7 1.5 5 BMI (USA, USD) 977.0 1,013.0 1,013.0 3.7 6 ASCAP (USA, USD) 944.4 1,001.4 1,001.4 6.0 7 SIAE (Italy, EUR) 522.7 524.3 697.0 0.3 8 ECAD (Brasil, BRL) 1,190.1 1,219.9 519.9 2.5 9 SGAE (Spain, EUR) 259.8 260.9 346.8 0.4 10 APRA/AMCOS (Australia, AUD) 270.6 282.8 290.5 4.5 11 SOCAN (Canada, CAD) 276.4 299.5 270.5 8.4 12 BUMA/STEMRA (Holland, EUR) 180.5 190.0 252.6 5.3 13 STIM (Sweden, SKR) 1,584.1 1,701.9 248.8 7.4 14 SABAM (Belgium, EUR) 145.7 157.4 209.2 8.0 15 SUISA (Switzerland, CHF) 145.0 151.6 165.9 4.6 16 KODA (Denmark, DKR) 768.0 826.3 147.3 7.6 17 RAO (Russia, RUB) 4,366.6 4,586.2 121.5 5.0 18 AKM (Austria, EUR) 95.4 98.1 130.4 2.8 19 ZAIKS (Poland, PLN) 351.9 345.1 109.5 -1.9 20 TEOSTO (Finland, EUR) 66.0 65.4 86.9 -0.9 The results achieved in 2015 confirm the continued growth of the company and its potential in the global landscape. On the other hand, if one were to use the GDP of countries in which individual companies operate as a basis of comparison, SIAE would be even more likely to emerge as a copyright collecting firm that is now healthy and able to face the challenges that copyright deserves to win. To these ends, it is hoped that any discussion around copyright can be addressed with composure and with the aim not just to demolish, but to improve and build together the future of copyright. SIAE, moreover, is and remains a tool. What really matters is the defence of copyright itself. The protagonist is, and must be, copyright law, for all those working in the creative sphere, and at the same time as a key economic engine for our country. www.siae.it 11 During 2015, SIAE became the promoter of the first study on the economic value of the cultural and creative industry in Italy. The study (www.italiacreativa.eu) demonstrates the role and weight that culture plays in the economy. The creative sector is worth € 47 billion and employs nearly 1 million people. As summed up by the Minister of Cultural Heritage and Activities and Tourism, Dario Franceschini, this is a sector characterized by strong innovation, which employs younger people and more women than other sectors of domestic industry, capable of generating a value that goes beyond simple economic revenues. Creative Italy feeds off the tangible and intangible heritage that simultaneously produces and constitutes the very soul of our country, that for which Italy is recognized, valued and appreciated throughout the world: architecture, cinema, literature, music, video games, animation, visual arts and advertising, to which are added fashion and design, although still not calculated in this first edition of the report. It is our duty to strive to promote the maximum expression from each of these industries, ensuring the correct market conditions, combating piracy and counterfeiting, and recognizing the right to fair payment for those who work with their talents. www.siae.it 12 MANAGEMENT REPORT 2015 The key words of the Minister also read like a guideline for SIAE’s new course. Strong innovation More youth and more women Fair payment for those who work in the creative sphere Exactly these principles must accompany the interpretation of the environment in which SIAE operates, the results it achieved in 2015 and the initiatives that should mark the progression in change and thus the future. www.siae.it 13 SIAE today Structure: - 1265 employees - 1 Head Office in Rome - 472 Agents - 10 Region/Inter-Regional Offices - 29 Branches Economic data - €782m in turnover (+100m, equiv. to +14% on 2014) - €724m in Copyright and other intermediary services (+€102m, + 16% on 2014) - €617m rights allocated/paid to those entitled (including Private Copy); +€ 57m, or + 10% on 2014 - 15.3% average commission on receipts (-0.3% on 2014) - €70m in unpaid taxes to the tax authorities (IVA (VAT), IRES, Substitute) - €1m of solidarity amounts paid - €1.5m cultural/social grants Copyright Management: - 83,000 Authors and Publishers associated with SIAE - 12 million works managed directly - 45 million works managed through reciprocal representation contracts - 120 agreements with foreign companies for the management of the SIAE repertoire internationally - 1.2 million licensing agreements (public performance and representation, background music, TV, online radio, CD/DVD, etc.) - 500,000 users of the SIAE repertoire in jurisdiction www.siae.it 14 MANAGEMENT REPORT 2015 SIAE Governance is entrusted fully to Boards elected by the Members (the General Meeting, the Supervisory Board, the Management Board and Sub-Committees).