transparency report 2015 - siae · pdf filecinema section benini massimo ... clarification...

Directive 2014/26/EU art. 22

www.siae.it

SIAE Società Italiana Autori ed Editori

Transparency Report

2015

TRANSPARENCY REPORT 2015

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CONTENTS SIAE CORPORATE BODIES AND ORGANS 4

1. General Information (Directive 2014/26/EU art. 22- para. 2) 6

1.1 SIAE Legal and governance structures 6

1.2 Description of the financial activities 7

1.3 Details of refusals to grant licenses 7

1.4 Balance Sheet, Income Statement and Financial Statement 9

1.5 Entities directly or indirectly owned or controlled by SIAE 23

1.6 Fees paid to the Supervisory Board and the Management Board 24

2. Financial Information (Directive 2014/26/EU art. 22- para. 2) 24

2.1 Financial Information: General introduction 24

2.2 Financial Information: deductions for the purposes of social, cultural and educational services 25

2.3 Financial Information: Receipts statement (or Turnover, then intended to be allocated) and Income 26

2.4 Financial Information: details of the SIAE shares (commissions) 29

2.5 Financial Information on the cost of rights management and other services provided by the company: the

methodology of analytical accounting 30

2.6 Financial Information on the cost of rights management and other services provided by the company:

Sections 31

2.7 Financial Information on the amounts due to rights-holders: those destined for distribution (payable to the

members and agents) 32

2.8 Financial Information on the amounts due to rights-holders: allocation activities 35

2.9 Relations with other Collection Management Agencies abroad 39

2.10 Cultural initiatives and social support 41

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SIAE CORPORATE STRUCTURE AND BODIES as of the date of approval of the Management 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 Barbagallo Angelo Biocca Antonino Bolelli Ferrera Antonella Bonizzoni Roberto Brunetta Caprini Linda Buja Claudio Cinque Massimo Costa Vittorio Daldello Franco De Martino Giuseppe De Siervo Luigi Elmi Guido Gramitto Ricci Alfredo Lavezzi Mario Leonardi Piero

Maisano Michele Mauri Pierangelo Maxia Maria Grazia Minellono Cristiano Narici Ilaria Anna Ostali Piero Giancarlo Perilli Paola Piovani Nicola Polillo Marco Prudente Oscar Razzini Roberto Rizzi Antonella Solbiati Alessandro Tommaso Vito Verona Tonino Villevieille Bideri Silvia


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ADVISORY COMMITTEES

MUSIC SECTION CINEMA SECTION Benini Massimo Buja Claudio Chiaravalle Valeriano Corsi Paolo Costa Vittorio Fedele Francesco Saverio Galletti Anna Lavezzi Mario Minellono Cristiano Razzini Roberto

Alberico Michele Barbanente Mariangela Biocca Antonino Conforti Michele Koch Giovanna Lusuardi Nicola Gaudino Lucio

DOR SECTION LYRICS SECTION Amurri Valentina Brunetta Caprini Linda Cavosi Roberto Cinque Massimo D’Arborio Paola Di Stefano Riccardo Flora Giovanna Longoni Gianmario

Battistelli Giorgio Cannito Luciano Moro Laura Narici Ilaria Anna Ostinelli Cristiano Savasta Alessandro

OLAF SECTION Bolelli Ferrera Antonella Fallai Paolo Foschini Cristina Hoepli Giovanni Ulrico Carlo Paolinelli Mario Piccarolo Laura

BOARD OF AUDITORS INTERNAL AUDIT

Belmonte Laura Fiori Giovanni Nova Massimiliano Supplenti: De Buglio Massimo Romani Barbara

Scordino Luca Domenico

MANAGING DIRECTOR

Blandini Gaetano

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General information (Directive 2014/26 / EU, article 22 - par.2)

1.1 SIAE Legal structure and governance

The Italian Society of Authors and Publishers (SIAE) is a public economic body and membership

organization, governed by the Law of 9th January 2008, n. 2.

In particular, pursuant to art. 1, paragraph 2, of the above law "SIAE activity is governed by the rules of

private law".

SIAE also exclusively manages the intermediation of copyright in Italy in accordance with articles. 180 et

seq. Law of 22 April 1941, n. 633 ("Protection of copyright and other rights related to the exercise thereof").

SIAE, finally, is the "generalist" managing body operating as an agency of the rights for all artistic fields,

currently divided into five specific sections: Music, Dor, Olaf, Lyrics and Cinema.

It should be pointed out that the economic means to carry out SIAE’s activities are provided by the results

that the company receives from carrying out its activities. SIAE does not use - either directly or indirectly -

any transfer, grant, loan or charged to the state budget or other public bodies. The results of economic and

financial management of SIAE, therefore, do not contribute to either the needs or the indebtedness of

public administrations. Consequently, SIAE is separate to the sector of public finance.

The SIAE Statute is published on our corporate website www.siae.it .

The Statute outlines the membership organization and the governance of the company.

The company's organs are: the Assembly (Art. 9 to 11 of the Statute), the Supervisory Board (Art. 12 to 14),

the Management Board (arts. 16 to 19) and the Board of Auditors (art. 20).

Article. 15 of the Statute governs the Advisory Committees, five in total; one for each of the sections in

which the Company operates.

The statutory audit (art. 21) and the adoption of an organization and management model designed to prevent crimes, pursuant to Legislative Decree n. 231/2001, have been planned with the establishment of a supervisory body with autonomous powers of implementation and control (art. 23). Although SIAE is separate to the sector of public finance, the Chairman of the Supervisory Board is a judge on the Court of Auditors.

On the SIAE website the Company's internal regulations are available. Of particular note:

- the General Regulations of the Company (art. 32 of the Statute), containing the code of the Sections where SIAE operates, as well as the conciliation and arbitration procedures;


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- the Code of ethics or behaviour (art. 32 of the Statute), which governs the rules of conduct for all staff who work in various capacities for the company, as well as that of the members and agents;

- Model 231/2001.

1.2 Description of the activities carried out during the year

For a comprehensive review of the activities carried out by SIAE during the year, refer to the specific

report on management accompanying the annual management report.

The report and the management report are published in full on the company website www.siae.it.

1.3 Information on refusals to grant licenses

During 2015 SIAE did not refuse the granting of any licenses (except in cases of revocation or non-issuance

as a result of not fulfilling the conditions laid down under the same license on the part of users, or denial

by members who have reserved this right in relation to the nature of law).

It should be noted in this regard that the terms of reference under which licenses are granted are

published on the corporate website www.siae.it.

https://translate.google.com/translate?hl=en&prev=_t&sl=it&tl=en&u=http://www.siae.it

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SIAE today

- Structure:

- 1265 employees

- 1 Head Office in Rome

- 472 agents

- 10 regional / inter-regional offices

- 29 Branches

- Economic data:

- €782m Revenue (+100m, +14% on 2014)

- €724m on Copyright and other intermediary services (+€102m, or +16% on 2014

- €617m rights allocated/paid to right-holders (including Private Copy); equivalent to +€57m, or +10% on 2014

- 15.3% average commission on receipts (-0.3% on 2014)

- €70m in taxes payable to the tax authorities (VAT, IRES, Substitute)

- €1m of solidarity amounts paid

- €1.5m in cultural/social grants

- Management of Copyright:

- 83,000 SIAE member Authors and Publishers

- 12 million works managed directly

- 45 million works managed through reciprocal representation contracts

- 120 agreements with foreign companies for the international management of the SIAE repertoire

- 1.2 million licensing agreements (public performance and representation, background muisc, TV, online radio, CD/DVD, etc.)

- 500,000 users of the SIAE repertoire in Italy


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1.4 Balance sheet, income and financial statement

SIAE prepares its annual management report referring to the discipline of the Civil Code relevant to joint stock companies and the accounting standards issued by the Italian Accounting Board (OIC) to date in the course of 2015. By the same token, as of 1st January SIAE 2005 it underwent a financial audit in accordance with art. 2409-ter of the Civil Code (now Article 37 of Legislative Decree no. 27.1.2010, n.39).

The management report of 31st December 2015 consists of: - Balance Sheet, Income Statement and Explanatory Notes;

- Report on Operations;

- Financial Report;

- separate statements concerning "Endorsement" and "Solidarity Fund” management

As part of the Report on management accompanying the 2015 Management Report the specific characteristics of SIAE activities are also described.

In anticipation of news that the Directive 2013/34/EU of 26th June 2013 may be achieved (in budget), a reclassification of income statement items of the company is published specifically to represent more clarity and transparency in regards to the results of the company's business. The reclassified income statement is useful to provide (additionally) in this report, with the additional clarification that the diagram below, however, takes its cue from the annual reports of the main European collection societies.

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OPERATIONAL MANAGEMENT 2015 2014

Incomes and revenues 188,62 195,30

Copyright: fees and reimbursement of expenses 100,70 93,91

Copyright: reduction of commissions 5,00 4,70

Author services 9,36 11,71

Revenue for other services and incomes 48,66 49,61

Default interest and penalties on late payments DD.AA. 6,18 6,62

Financial income 18,72 28,75

Costs and Expenses 169,14 175,21

Personnel 85,42 87,64

Management and operation 77,62 78,00

Other charges 3,80 5,67

Financial charges 0,30 1,65

Depreciation 2,00 2,25

Operational Management Result 19,49 20,10

STRATEGIC MANAGEMENT

Gains/losses on disposal of financial fixed assets 11,80 4,96

Write-ups/write-downs (7,00) 0,02

Reduced commissions on collections (5,00) (4,70)

Strategic plan (12,70) (5,00)

Corporate reorganization costs (4,40) (9,42)

Cultural and social activities (1,50) (1,66)

Strategic Management Balance (18,80) (15,80)

Business Result 0,69 4,30

Extraordinary items 0,86 0,19

Gross result 1,55 4,49

Income tax 1,24 1,03

Solidarity Fund 0,00 0,00

Year results 0,31 3,46

Year 2015 – Income Statement (reclassified) (€ millions)

The reclassified income statement above excludes costs and income of the Solidarity Fund (see "Analytical Separate Accounting - Solidarity Fund").


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Revenue and income from operational management activities include:

- commissions withheld on receipts; - the economic effects of commission reduction measures, charged against "strategic"

management; - reimbursement of costs retained provisionally on Private Copying receipts, to be adjusted based on

the relative balance; - services rendered to members; - the fees for cooperation with public and private entities (Tax Revenue Agency, State monopolies,

SCF, various agencies); - authentication, ticketing, etc. - default interest on late payments of authors' rights; - realised financial income. These include the return on current investments resulting from sums

pending allocation, as well as those related to the medium/long-term loans. Operating costs refer to the cost of production excluding the items evaluation (revaluations and asset impairment charges) and charges for activities in support of cultural and social activity (in paragraph 2.10). "Strategic management" recognizes financial gains, after evaluation of financial statement and balance sheet, lower revenues derived from the provision of some commission rate reduction on receipts, expenses incurred for the implementation of the Strategic Plan and cultural/social activities The result of operational management generally expresses the current performance. The margin generated, about 20 €/m, allowed, together with realised capital gains, the support of strategic costs (reorganization, IT projects and the corporate communication plan, cultural and social activities, the reduction of commissions, etc.). The result of the business is around 1.54€/m and determines an operating surplus of 0.31 €/m after absorbing the residual extraordinary items and tax burden. Revenues and income from operational management recognise the financial income realised by the company in relation to the processing cycle of copyright (summarized in the following graph) besides those that mature on separate figures (reserves, severance pay, etc.). The graph visually summarizes SIAE operation.

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The same graph shows that all sources of revenues (those normally classified in the "production value" and those belonging to the management of financial resources) are elements inherent to the same of SIAE production cycle and belonging to the so-called current activities or activities that, according to best practice, are continually renewed within a series of production cycles, and are directly influenced by the repetitive tasks of purchasing-production-sales. The only difference is that, in the case of SIAE, the cycle has reversed and is represented by the phases of acquisition and management of mandates, collection of copyright, and distribution of receipts. As promised earlier, the following are the Balance Sheet, Income Statement and Financial Statement of the company. Anything left unreported below is included in the 2015 Management Report published separately on the SIAE corporate website.

receipts

Payment to authors and editors


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BALANCE SHEET 2015 2014ACTIVEB) FIXED ASSETS

I) Intangible Assets

3) Industrial patents and use of intellectual rights 970.248 926.857

6) Assets under development and advances 0 0

Total Intangible assets (I) 970.248 926.857

II) Tangible assets

1) Land and buildings 31.882.347 31.882.347

- Accumulated depreciation of land and buildings (8.627.079) (8.039.577)

23.255.268 23.842.770

2) Plant and machinery 5.892.761 5.906.108

- Accumulated depreciation of plant and machinery (5.483.762) (5.465.727)

408.999 440.381

3) Industrial and commercial equipment 16.917.988 15.726.031

-Accumulated depreciation of Industrial and commercial equipment (14.975.188) (14.759.100)

1.942.800 966.931

5) Assets under development and advances 0 0

Total Tangible Assets (II) 25.607.067 25.250.082

III) Financial Assets

1) Investments in:

d) other companies 3.657 3.732

3.657 3.732

2) Credits

d) receivables from others

- installments due within one year 92.489 69.691

- installments due after one year 84.304.312 84.187.189

84.396.801 84.256.880

3) Other securities

a) S.I.A.E. securities 203.306.079 586.666.079

a) Fs securities 0 60.000.000

c) "Real Estate Fund" Securities 164.609.996 164.609.996

c) "Real Estate Fund" Securities /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:Calibri; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-GB;} d) “Real Estate Fund” Fs securities Normal 0 false false false EN-GB X-NONE X-NONE 31.200.000 31.200.000

c) "Financial Fund" Securities 355.000.000 0

754.116.075 842.476.075

Totale Immobilizzazioni finanziarie (III) 838.516.533 926.736.687

Assets Total (B) 865.093.848 952.913.626

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C) Current Assets 2015 2014

II) Receivables

1) From Clients

a) from associates and principals

1) from associates and principals for corporate contributions and annual fees 979.108 1.386.419

-Allowance for company shares (343.007) (981.405)

636.101 405.014

2) From associates and principals for advances 67.950.411 67.777.834

2) other receivables from associates and principals for advances 44.431 98.738

- Allowance for advances (389.571) (482.640)

67.605.271 67.393.932

68.241.372 67.798.946

b) compensation for private copying 2.110.943 967.180

c) from other principals 1.365.061 1.999.709

d) from consumers 31.553.939 31.822.000

e) from others 184.746 235.521

Total Receivables from Customers 103.456.061 102.823.356

4.2) Taxes Receivable

1) from tax authorities 20.222.147 18.864.440

Total tax credits 20.222.147 18.864.440

4.3) Deferred tax 10.973.397 12.118.972

5) due to others

a) due to employees 341.659 287.097

b) due to banks 29.048 153.276

c) other receivables 2.547.768 4.602.094

- Provision for impairment of receivables (487.330) (632.942)

2.060.438 3.969.152

Total receivables from others 2.431.145 4.409.525

Total Receivables (II) 137.082.750 138.216.293

III) Financial assets not held as fixed assets

3) Other securities 112.930.000 20.296.000

Total Financial assets not held as fixed assets (III) 112.930.000 20.296.000

IV) Cash availability

1) Banking and postal deposits 267.582.504 216.480.845

3) Cash and cash equivalents 12.395 11.847

Total Cash (IV) 267.594.899 216.492.692

TOTAL CURRENT ASSETS (C) 517.607.649 375.004.985

D) PREPAYMENTS AND ACCRUED INCOME

a) Prepayments and accrued income 6.763.111 8.038.651

TOTAL PREPAYMENTS AND ACCRUED INCOME (D) 6.763.111 8.038.651

ACTIVE TOTAL 1.389.464.608 1.335.957.262

BALANCE SHEETS

a) Merchant Guarantees on deposit 3.650.972 3.795.049

b) Performance guarantee, pension fund 11.179.340 11.849.340

c) Lien on loan from Fondo Norma 77.427.805 77.427.805

e) Penalty imposed pursuant to article 10 332.007 124.997

TOTAL BALANCE SHEET ITEMS 92.590.124 93.197.191

TOTAL 1.482.054.732 1.429.154.453


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PASSIVE 2015 2014A) EQUITY

III) Revaluation Reserves

1) Revaluation ex. L 21/11/00 n. 342 39.150.070 39.150.070

2) revaluation ex. L. 24/12/03 n. 350 41.007.241 41.007.241

3) revaluation ex. L. 28/01/2009 n. 2 11.564.615 11.564.615

Total revaluation reserves (III) 91.721.926 91.721.926

V) Statutory reserves

1) permanent reserve 15.387.268 13.655.285

2) extraordinary reserve 11.211.063 9.652.278

Total Statutory Reserves (V) 26.598.331 23.307.563

VII) OTHER RESERVES

1) Lira/Euro conversion reserve 237 237

Total other reserves (VII) 237 237

VII) ONGOING SURPLUS/DEFICIT 0 0

IX) Result of excercise 315.583 3.463.966

TOTAL EQUITY (A) 118.636.077 118.493.692

B) FUND FOR RISKS AND CHARGES

1) for pensions and similar obligations

a) severance benefits 29.698.674 30.869.945

b) additional fees for employee verification 19.626 30.580

Total for pensions and similar obligations 29.718.300 30.900.525

2) For taxes, including deferred tax 0 0

3) Other

a) Solidarity fund

1) Benefits payment fund 3.202.241 3.202.241

2) Equity fund 6.108.180 6.108.180

3) future solidaristic benefits restricted fund 80.837.864 80.698.270


93.014.309 92.874.715

b) for risks associated with management activities 8.696.570 8.263.838

b) for risks associated with management of the pension fund 11.179.340 11.849.340

d) for risks around company reorganization 20.000.000 21.000.000

e) adjustments for private copy reimbursements 0 0

f) for employee incentives 3.600.000 3.600.000

g) provision for welfare contributions 18.500 152.900

Total for other 136.508.719 137.740.793

TOTAL FUND FOR RISKS AND CHARGES (B) 166.227.019 168.641.318

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C) TRF for EMPLOYEE WORK 2015 2014

TOTAL TRF for EMPLOYEE WORK (C) 23.714.632 25.241.011

D) PAYABLES

4) Payables to the bank

a) Withholding tax to be deducted 274.217 307.798

b) other payables 22.024 19.349

Total payables to banks 296.241 327.147

7) Accounts payable 17.485.789 16.967.611

12) taxes payable 9.161.062 13.861.208

13) Contributions to pension and social security institutions 3.269.116 3.890.690

14) Other payables

a) to members, principals and successors 819.681.352 764.805.047

b) to others for "private copy payments" 151.711.352 147.469.790

c) to other agents (various organizations) 1.231.544 1.028.252

d) to operators and others for provisional and security deposits 21.510.646 22.044.026

e) to bodies and various corporate entities 473.223 305.173

a) to employees 9.934.096 9.275.209

g) other payables

1) other payables 11.422.679 11.449.333

2) royalties due 34.506.771 32.100.383

45.929.450 43.549.716

Other payables total 1.050.471.663 988.477.213

TOTAL PAYABLES (D) 1.080.683.871 1.023.523.869

E) ACCRUED EXPENSES AND DEFERRED INCOME

a) Accrued expenses and deferred income 203.009 57.371

TOTAL ACCRUED EXPENSES AND DEFERRED INCOME (E) 203.009 57.371

PASSIVE TOTAL 1.389.464.608 1.335.957.261

BALANCE SHEETS

a) Merchant Guarantees on deposit 3.650.972 3.795.049

b) Performance guarantee, pension fund 11.179.340 11.849.340

c) Lien on loan from Fondo Norma 77.427.805 77.427.805

e) Penalty imposed pursuant to article 10 332.007 124.997

TOTAL BALANCE SHEET ITEMS 92.590.124 93.197.191

TOTAL 1.482.054.732 1.429.154.452


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INCOME STATEMENT 2015 2014A) PRODUCTION VALUE

1) Revenues from sales and services

a) company shares and related services 9.366.379 11.714.299

b) commissions on businesses for:

1) copyrights and institutional services 97.100.786 89.196.956

2) public film registry 41.739 41.447

3) special public registry for computer programs 71.666 33.765

Total Business from Commission 97.214.191 89.272.168

c) reimbursement from "private copy payments" 3.540.292 4.633.976

d) fees for services and premiums on businesses for services delegated by the

Revenue Agency and the Region of Sicily

1) fees from services by the Revenue Agency convention 27.925.500 29.300.608

27.925.500 29.300.608

e) fees and premiums for services delegated by various organizations

1) premiums for services delegated by various organizations 2.137.647 2.093.191

2) fees for the AAMS convention 2.000.000 1.981.010

3) fees for the Liutai convention 677 7.670

4) rental fees 1.003.886 830.300

5) fees for the Production Music D.R.F. convention 1.066 3.379

6) fees for the F.I.G.C. conventioin 50.000 50.000

7) statistical services 226.064 226.079

Total fees and premiums for services delegated by various organizations 5.419.340 5.191.629

f) other revenues and income from sales and services

1) income from ticket sales and files/records 930.024 931.795

2) administrative fees 5.633.579 5.725.102

3) punching tickets 57.785 61.728

4) endorsement rights 3.980.228 3.499.958

5) Burcardo library revenues 1.654 2.857

6) additional copyright income 6.184.827 6.618.171

7) proceeds from AGCOM convention 65.574 0

Total other revenues and income from sales and services 16.853.671 16.839.611

Total Revenues from sales and services (1) 160.319.373 156.952.291

5) other revenues and income

a) rental income 220.516 254.425

b) other income 4.748.903 4.644.675

Total other revenues and income (5) 4.969.419 4.899.100

PRODUCTION VALUE TOTAL (A) 165.288.792 161.851.391

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B) PRODUCTION COSTS 2015 2014

6) for purchases

a) goods for sale 621.308 724.360

b) goods and materials for various consumers 756.260 774.638

Total purchases (6) 1.377.568 1.498.998

7) For services

a) agents

1) compensation and pension fund contributions 41.673.933 40.770.377

2) provision for severance allowances 1.416.541 1.379.330

43.090.474 42.149.707

b) external assessors 327.013 381.326

c) third party processing 2.974.425 3.396.426

d) professional and technical services

1) administrative, technical and legal services 4.362.645 3.045.829

2) consulting 2.784.833 1.777.725

3) hiring and training personnel 175.503 223.329

7.322.981 5.046.883

e) other services

- various operating services 9.148.684 8.810.794

- IT services 11.640.057 7.343.637

- travel expenses, external food and lodging 987.259 1.160.735

21.776.000 17.315.166

f) corporate bodies and other entities 1.110.442 1.135.180

Total for services (7) 76.601.335 69.424.688

8) for use of third party assets

a) leasehold 11.228.729 11.085.623

b) rental and leasing goods and various equipment 180.142 162.537

Total for use of third party assets (8) 11.408.871 11.248.160

9) for personnel

a) fixed compensation

1) fixed compensation 56.491.125 57.201.606

2) fees for inspections, additional jobs and various other things 3.762.120 3.839.117

60.253.245 61.040.723

b) pension fund 15.149.509 16.315.250

c) T.F.R. 4.559.415 4.717.676

d) for retirement benefits and similar obligations: supplementary fees for severance activities 0 11.189

e) other costs 5.527.696 5.762.347

Total for personnel (9) 85.489.865 87.847.185


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10) Depreciation and Devaluations

a) amortization of intangible assets 1.235.875 1.211.765

a) amortization of fixed assets 1.538.325 1.235.011

c) other devaluations of fixed assets 0 495.300

d) devaluations of receivables included in current assets and cash equivalents 20.423 6.682

Total depreciation and devaluation (10) 2.794.623 2.948.758

12) Provisions for Risks and Charges

a) provisions for future chares 1.019.931 2.996.952

b) provisions for "private copy payment" fund adjustments 0 0

Total Provisions for Risks and Charges (12) 1.019.931 2.996.952

14) other operating expenses

a) Solidarity fund

1) Benefits 1.014.025 936.600

2) provisions for performances bonuses 139.594 308.597

1.153.619 1.245.197

c) entertainment costs 48.247 50.524

d) SIAE international activities, copyright promotion, studies and initiatives related to the promotion, development and differentiation of the Italian literary and artistic heritage1.342.475 742.854

e) various taxes and fees 1.464.167 1.315.954

f) other expenses

1) operating costs and maintenance of building lease 70.121 72.607

2) other expenses 340.028 1.096.032

3) various operating expenses 1.215.679 1.366.281

4) surplus "private copy payment" withdrawal 178.057 228.733

1.803.885 2.763.653

Total other operating expenses (14) 5.812.393 6.118.182

PRODUCTION COST TOTAL (B) 184.504.586 182.082.923

DIFFERENCE (A-B) (19.215.794) (20.231.532)

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C) FINANCIAL INCOME AND CHARGES 2015 2014

16) Other financial income

a) long-term receivables 15.142 16.189

b) securities held as fixed assets

1) dividends 2.500.000 0

2) Interest income on securities:

- Interest income on securities: 10.256.592 19.403.411

- Interest income on FS securities: 1.755.887 1.084.709

12.012.479 20.488.120

3) Various income from securities:

- various income from securities: 12.395 12.395

- various income from Fs securities: 0 0

12.395 12.395

14.524.874 20.500.515

c) from securities among current assets

- from securities among current assets 139.564 154.508

139.564 154.508

d) other financial income

1) interest income on current bank and postal

- interest income on current bank and postal 3.310.283 5.870.707

-interest income on current Fs bank and postal 35.577 947.080

3.345.860 6.817.787

2) interest on tax 55.000 220.000

3) interest and other financial 2.445.622 3.021.581

5) private copy default interest and penalties 1.085 814

5.847.567 10.060.182

Other financial income total (16) 20.527.147 30.731.394

17) interest and Other financial income

a) interest and Other financial income (336.754) (1.732.635)

Total interest and Other financial income (336.754) (1.732.635)

17.2) Gains and losses on Foreign

a) exchanged (156) (1.640)

17.2) Gains and losses on Foreign exchange total (17.2) (156) (1.640)

FINANCIAL INCOME AND CHARGES TOTAL (C) 20.190.237 28.997.119

D) VALUE AND ADJUSTMENTS TO FINANCIAL ACTIVITIES

18) Re-evaluation 0 518.000

18)Devaluation (7.070.000) 0

D) VALUE AND ADJUSTMENTS TO FINANCIAL ACTIVITIES (7.070.000) 518.000


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E) EXTRAORDINARY INCOME AND EXPENSES 2015 2014

20) extraordinary income

20) various extraordinary income 9.241 4.425

b) gains on sale of securities 21.469.921 4.958.604

c) other contingent 918.740 518.277

d) capital gains from real estate 0 0

Extraordinary income total (20) 22.397.902 5.481.306

21) Extraordinary Charges

a) pension fund restructuring 0 0

b) losses/write-offs on securities (9.666.188) 0

c) corporate reorganization (4.419.821) (9.416.947)

d) various extraordinary expenses (263.112) (330.121)

Extraordinary expenses total (21) (14.349.121) (9.747.068)

EXTRAORDINARY INCOME AND EXPENSES TOTAL (E) 8.048.781 (4.265.762)

BALANCE BEFORE TAXES 1.953.224 5.017.825

22) INCOME TAXES

a) Current taxes

- Ires 492.066 206.860

- Irap 0 1.634.482

492.066 1.841.342

b) Deferred taxes

- Active 1.145.575 (287.483)

-Passive 0 0

1.145.575 (287.483)

INCOME TAXES TOTAL 1.637.641 1.553.859

23) PROFITS FOR THE YEAR 315.583 3.463.966

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2015 2014FUNDING SOURCES

Year result 315.583 3.463.966

Tangible assets amortisation 1.538.325 1.235.011

Intangible assets amortisation 1.235.875 1.211.765

Decrease/(increase) of receivables (347.836) (1.051.639)

Decrease/(increase) of prepayments and accrued income 2.282.245 1.503.925

(Decrease)/increase of trade payables 616.513 3.795.923

(Decrease)/increase of accrued liabilities 145.637 (416.438)

Increases of risks and expenses funds 10.740.276 17.480.945

Use of risk and expenses funds (13.154.575) (21.056.036)

Increase of employee severance funds 4.559.415 4.717.676

Use of employee severance funds (6.085.794) (7.515.551)

(Decrease)/increase other payables and advances 56.415.353 (73.004.708)

Liquidity generated by operations 58.261.017 (69.635.161)

Net balance value of decommissioned assets 7.306 496.053

58.268.323 (69.139.108)

CASH DEPLOYMENTS

Tangible asset acquisitions (1.902.414) (652.690)

Intangible asset acquisitions (1.279.468) (350.170)

Financial activity not held as assets (other securities) (92.634.000) 35.847.825

Net difference in financial receivables 88.220.154 (213.325.628)

Previous year profit distribution (173.198) (79.074)

(7.768.926) (178.559.737)

Liquidity difference 50.499.397 (247.698.845)

INITIAL CASH AVAILABILITY 216.492.692 464.191.537

FINAL CASH AVAILABILITY 266.992.089 216.492.692

FINANCIAL REPORT


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Entities directly or indirectly owned or controlled by SIAE

A. Norma Fund - SIAE, as of 31st December 2015, holds 1,658 shares (equal to 100% of the issued shares) for a total net value of €177,327,644 (unit share value €106,952.741) of the closed type Common Fund for Local Investment "Norma", reserved for institutional investors and set up on 19 December 2011.

B. Aida Fund - The Norma Fund at the end of 2012 acquired the Real Estate Fund AIDA. This Fund started operating in 2011 with an initial underwritten equity amounting to €63,900,000 divided into 639 shares with a unit value of €100,000. The Fund has today an underwritten equity of €79,073,964. The total net value of the fund as of 31/12/2015 amounted to €80,106,862 (n. 796 shares of nominal value € 100,637)

C. Harmony - SIAE joined the European Group's Economic Interest (EEIG) "Harmony" created in April 2013 to simplify the issue of pan-European licenses, providing a single hub for the use of the repertoires represented by them, in line with the objectives of transparency and efficiency required by Directive 2014/26/EU of the European Union on collective rights management. Membership fees for the year 2015 amounted to € 134,092

D. Fast Track (FT the copyright digital network) – Is a company for simplified actions, of which SIAE holds 9.84% of the shares for a total value of €3,642. The stated objective is to connect the databases of different companies making them interoperable. FT is a technology provider that develops solutions for the benefit of partners and the CISAC community, to improve the management of copyright in terms of accuracy of information and interchange speed.

E. RAI and Mediaset - SIAE owns RAI shares for a value on the balance sheet of €130,887 and a nominal value of €1,071,100 (0.44% of the share capital). SIAE also owns Mediaset shares (0.0006% of the share capital) with a nominal and balance value of €3,615.

F. Nabucco Fund - The SIAE, Solidarity Fund, as of 2nd October 2014, underwrote 312 shares with a total value of € 31.2m (€ 100,000.00 unit share value) of the closed real estate Mutual Investment Fund “Nabucco", reserved for institutional investors. The total net value of the fund on 31/12/2015 amounted to €31,563,253 (n. 312 shares of nominal value €101,164)

G. Pentagram Fund – on 3rd August 2015 SIAE underwrote 2,950,000 shares of the SICAV-SIF Indigo Pentagram for a total value of €295m (unit share value €100). As of 31st December an additional 595.474,394 were underwritten (unit share value € 100.76) restricted to the Solidarity Fund. The fund is intended to accept gradually the financial resources permanently present in SIAE. These resources are managed in a portfolio logic, with the help of a professional manager to optimize returns and minimise the risk inherent in financial management,

H. BIEM. - SIAE is vice-president of BIEM (Bureau International des societes gerant les droits d’Enregistrement et de reproduction Mecanique), an organization based in Paris, consisting of 51

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companies representing 120 countries in the field of mechanical reproduction rights and whose main purpose it is to ensure the recognition and effective protection of these rights through the negotiation of standard contracts with the IFPI (International Federation of 'the Phonographic Industry) , which represents the' phonographic industry, to establish the conditions for use of the repertoires managed by the company. It also deals with ensuring technical cooperation among its members. In quality terms, a non-governmental organization, the BIEM represents and defends the interests of its members in international institutions. SIAE has a stake (€15.24) of the share capital (€396) of the BIEM.

1.5 Fees paid to the Supervisory Board and the Management Board

During the year 2015, remuneration paid to the corporate bodies in charge SIAE were as follows:

€332,000 to the Supervisory Board;

€287,000 to the Management Board;

€130,000 to the Board of Auditors.

It should be noted in this regard that the determination of the remuneration of these bodies is specifically regulated by the Statute (Art. 8).

The following fees to further control bodies of SIAE were also provided:

€142,000 to the Supervisory Body 231/2001;

€90,450 to the Auditing Firm.

It is noted that SIAE in 2015 also paid a total of €56,400 to the Subcommittees, always within the limits imposed by the Statute (Art. 8).

2. Financial information (Directive 2014/26 /EU, article 22 - par.2)

2.1 Financial information: General introduction

A. Collections - the amounts received by the Company arising from collection services are not highlighted by SIAE as items of income in the income statement.

Such sums (or receipts) are meant to be shared between the Members (and agents) and recognized in the statement as "debt" in respect of Members (and agents) themselves, provided that such a definition ("debt") doesn’t represent an "imbalance" or financial needs..

B. Proventi - Income - SIAE revenues are made up of "commissions" that are retained on receipts as compensation for administrative services (collection, distribution, liquidation and payment of copyrights) provided to members and agents.

The authorial proceeds, together with fees for services provided to third parties or mandated by law and other income, constitute the revenue reported in the "production value".


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The value of production, financial income and any extraordinary income pay for all aspects of production and other costs and operating expenses.

As explained in section 1.4, the financial income generated, both from different funding sources identified under Liabilities in the Balance Sheet (Equity, Provisions for risks and charges, payables), is still the management of copyright.

With specific regard to financial income from the management of copyright, it is reported that they are distinctive because of the natural temporal distinction between receipts and distribution (cash inflows arising from the collection before the outflows in favour of members). In turn, the frequency and distribution rules are laid down by members from year to year through specific ordinances approved by the Sub-Committees.

It should be noted, finally, that the results of financial operations are recorded in the accounts in a different section from the value of production, in line with the forecasts contained in Articles. 2424, 2424 bis, 2425 and 2425 bis of the Civil Code.

2.2 Financial information: deductions for the purposes of social, cultural and educational services

SIAE does not operate deductions for purposes of social, cultural and educational services.

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2.3 Financial Information: Receipts statement (or Turnover, then intended to be allocated) and Income

For the purpose of illustration of the trend of Receipts and Income, please refer to the Management Report and, more generally, to its annual financial statement.

The business for copyright shows an increase of €50m (+ 10% compared to 2014). Adding to receipts earned during the year for "Authors" of Private Copy attributed to Sections, gross rights to be distributed recorded a significant increase of €65m (+11.53% on 2014).

61,3%

9,5%

8,7%

5,1%

4,9%

8,2%1,4%

0,8%

Receipts 2015

Right to musical performance: 383.42

Lyrical and theatrical works: 59.44

Private Copy: 54.59

Right to music mechanical reproduction:31.9

Abroad: 30.79

Audiovisual works: 51.14

Visual arts: 8.92

Literary works: 5.27

Values in €m

In terms of income, there is an increase compared to 2014 (€7.8 million, or + 9%). Of note:

The Music section increased by €3.7m (+5% on 2014) due to a significant increase in receipts of about €23.9 million (+5.7% on 2014), from €416m in 2014 to €439.9m of 2015.

The Cinema section by €4.5m (+106% compared to 2014) due to the significant increase in business for copyright (+€ 26.2m, equivalent to +97.9%), attributable to the finalisation of the SKY agreements, which resulted in revenues of over €26.5 million in current payments (€6.5m) and arrears (€20m).

It is noted that with specific regard to the compensation of Private Copying, SIAE is only required to recover the costs incurred and does not charge commissions. In fact, despite the almost doubling of receipts (from €78m in 2014 to €129.6m in 2015) expenses decreased by approximately €1.1 million compared to 2014.


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The following are the tables for each Section according to the conventional CISAC layout.

REPERTOIRE Gross receipts Allocated share %B/A Receipts to allocate

A B C

Section I – musical works: rights to perform and

broadcast 383.419.864 69.866.194 18,2% 313.553.670

Section II – musical works: rights to mechanical

reproduction 64.074.588 4.346.366 6,8% 59.728.222

Section III – audio-visual works 71.667.285 8.593.320 12,0% 63.073.965

Section IV – theatrical and lyrical works 59.848.436 9.304.283 15,5% 50.544.153

Section V – literary works 5.898.432 893.665 15,2% 5.004.766

Section VI – visual arts 9.771.600 1.653.900 16,9% 8.117.700

Subtotal: national receipts 594.680.204 94.657.728 15,9% 500.022.476

Section VIIIa - Abroad 30.790.758 923.719 3,0% 29.867.038

Total 625.470.962 95.581.447 15,3% 529.889.514

SIAE – Copyright Receipts

Remaining on the topic of receipts, keep in mind the national and international economic environment. The Italian economy after years of financial and economic crisis has begun to show positive signals. In fact whilst uncertainties regarding the push for growth in supply of goods and services linger, there has been stable consumption growth accompanied by a slight recovery in investment. On the side of domestic demand (which has contributed to a growth of 0.5% GDP in 2015) indicates improvements in domestic consumption.

Actual availability of gross income has increased, along with the purchasing power of households (source: Istat - Report IV quarter 2015 "Income and Savings of households and corporate profits"). In particular:

- gross disposable income of households was up, in real terms, by 0.9%; - corresponding purchasing power increased by 0.8%, confirming the trend already registered in a

previous year; - household spending for "final consumption" (which also includes the expenditure for forms of

recreation and entertainment) confirmed the trend by increasing 1%

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In 2015, GDP at market prices amounted to 1,636,372,000 million current euros, an increase in volume by 0.8%, after three consecutive years of declines. In the same period, GDP increased by 0.2% in quarterly terms in the United States and France and 0.5% in the UK. In trend terms, there was an increase of 1.9% in the UK, 1.8% in the US and 1.3% in France. There has been cyclical increase in economic confidence (+1.1), the inflation rate increased by 0.3 in terms of trend and falls, whilst in economic terms, youth unemployment (-0.1) and even more the trend rate (-1.3) both decreased.


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2.4 Financial information: details on the SIAE Group's rates (commissions)

The percentages refer to SIAE rates (or commissions) summarized in the table below:

2014 2015 2014 2015

Public performances, live and recorded, in the context

of dances and small concerts

20,8% 20,8% - Video reproduction on ‘case-by-case’ licence 18,0% 18,0%

- Use in cinemas as soundtracks to feature films, short

films etc.

20,8% 20,8% - Registration by radio/TV broadcasters 12,7% 12,7%

- Use by radio/TV broadcasters as soundtracks to TV

films, feature films, short films etc.

12,7% 12,7% - Reproduction on music DVDs 9,3% 9,3%

- Use and recording by radio/TV broadcasters 12,7% 12,7% - Reproduction on media sold at a reduced price or distributed for free, in the occasion of a promotional campaign, etc.9,3% 9,3%

- Use in public events with radio, TV and PA music 20,8% 20,8% - Mechanical reproduction on General Permit 7,3% 7,3%

- Public events, such as concerts, revues, gigs and

variety

20,8% 20,8% - Mechanical reproduction on centralised multi-territorial licences 7,0% 7,0%

- Use abroad 3,0% 3,0% - Phono-mechanical reproduction on ‘case-by-case’ licence 10,0% 10,0%

- Use online (streaming, webcasting, etc.) 10,0% 10,0% - Use abroad 3,0% 3,0%

- Performance or representation of original works 8,0% 8,0% - Performance or representation of original works 12,0% 12,0%

- Performance or execution of elaborated works 22,0% 22,0% - Performance or execution of elaborated works 22% 22,0%

- Use and recording by radio/TV broadcasters 14,0% 14,0% - Use and recording by radio/TV broadcasters 14,0% 12,0%

- Use in public events with radio, TV and PA music 22,0% 22,0% - Use in public events with radio, TV and PA music 22,0% 22,0%

- Use online (streaming, webcasting, etc.) 10,0% 10,0% - Use online (streaming, webcasting, etc.) 10,0% 10,0%

- Use abroad 3,0% 3,0% - Use abroad 3,0% 3,0%

- Audio reproduction 10,0% 10,0% - Audio reproduction 10,0% 10,0%

- Video reproduction 18,0% 18,0% - Video reproduction 18,0% 18,0%

- Use by TV/Radio broadcasters 14,0% 14,0% - Use by TV/Radio broadcasters 14,0% 14,0%

- Use in public events with radio, TV and PA systems 22,0% 22,0% - Use in public events with radio, TV and PA systems 22% 22,0%

- Reading and reciting of literary works in public (PDL) 8,0% 8,0% - Reproduction of figurative artworks (paintings, sculptures,

graphic and photographic works) 12,5% 12,5%

- Lending by public libraries 7,5% 7,5% - Right to resale (sales, subsequent to the first, of works) 19,0% 19,0%

- Reprography (reproduction, of up to 15% of the

contents for personal use) 20,0% 20,0% - Use online (streaming, webcasting, etc.) 14,0% 14,0%

- Use online (streaming, webcasting, etc.) 14,0% 14,0% - Use abroad 3,0% 3,0%

- Use abroad 3,0% 3,0% - Video reproduction 18,0% 18,0%

- Audio reproduction 10,0% 10,0%

- Video reproduction 18,0% 18,0%

- Publishing rights 3,0% 3,0%

- Fair payment for televisual use of audio-visual works 14,0% 14,0%

- Fair payment for video reproduction of audio-visual

works 18,0% 18,0%

- Use online (streaming, webcasting, etc.) 10,0% 10,0%

- Use abroad 3,0% 3,0%

SIAE RATES

MUSIC

Rights to musical performance Rights to mechanical reproduction

D.O.R. - LYRICSOpera - Ballet Theatre

O.L.A.FLiterary Works Graphic Arts

CINEMA Audio-visual Works

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2.5 Financial information on the cost of rights management and other services provided by the Company : analytical accounting methodology

The analytical income statements are structured by Section. The Section includes the set of activities and processes aimed at the administration of the specific repertoire (Music, Cinema DOR, Lyrics, OLAF). Music Section administers the public performance rights (DEM), playback (DRM), broadcasts, registration, digital imaging, multimedia, and private copying (author’s share). DOR - Lyrics Section administers the performing rights of operas, playback (DRM), broadcasts, digital imaging, multimedia, and private copying (author’s share). In addition it conducts equipment hire services and critical editions. DOR, for its part, administers the performing rights in public, reproduction (DRM), broadcasts, digital reproduction, and private copying (author’s share). OLAF Section administers the rights of public recitation, publishing, reproduction of works of figurative art, resale rights, lending, reproduction (DRM), broadcasts, digital imaging, reprographics, multimedia, and private copying (authors share). It performs warehousing services of unpublished works and stamping frontispieces. CINEMA Section administers fair payment due for the use of cinematographic works. It carries out collection services for films’ insurance shares, premises and other services (e.g. signalling passage of the film). The sectional income statement includes direct costs and revenues, related to the conduct of "business services". The sectional income statement recognizes the direct margin, which expresses the capacity of the resources generated to remunerate the costs relating to the delivery of business services, attributable to the specific management. The balance of ancillary financial and capital management, (for example: the rental income), is not in the sectional income statement and is intended to cover expenses for central services (human resources, administration, purchasing and logistics, legal assistance, infrastructure , etc.), corporate overhead costs consist of social costs/revenues relating to the bodies and supporting structures, the structure of the Fund Pensions, to the extraordinary operations related to the implementation of strategic plans, taxes and other income and non-recurring expenses The components of business-related income in the analytical accounting model are:

- revenue and expenses associated uniquely to the specific management, as such, do not require any allocation process;

- the cost of corporate structures, in relation to use by human resources directly devoted to "sectional" processes, are periodically allocated to the respective income statements, based on reports signed by heads of department.

The parameters used to allocate costs/revenues relating to business units are:


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- the square meters used for the allocation of management and operating costs such as: security guards, cleaning, maintenance of facilities, real estate, rental costs;

- the number of people present in each structure for the allocation of costs such as: telephone services, maintenance, office equipment, health insurance;

- specific statistical (for example: the number of machines, personal computers, servers) and quantitative (for example: a scope of revenue, number of invoices, number of MAV, the number of custom permissions) parameters for the allocation of activities, such as, ITC , front of house, administrative;

- the cost of staff resources for the allocation of common staff costs (for example: provisions, accident insurance);

- the incidence of revenues related to the item of allocation, for the attribution of accessories to the income (for example: procedural administrative rights);

- the incidence of revenues related to the item of allocation, for the attribution of charges generated by a specific activity (for example: VAT pro-rata, attributed in relation to exempt revenues;

- the incidence of direct costs (cost to cost) used for the allocation of costs such as: those of coordination and addressing of the Territorial Network, the “ancillary” costs of agents (for example: social security contributions and expense reimbursements).

2.6 Financial information for the cost of rights management and other services provided by the Company: the prospects of sections

The analytical accounting process, therefore, allows you to process the income statements of the various services and detect its margins.

The elaboration of economic data for the year 2015 highlights the results achieved by the management of copyright and other services rendered by the company whose income (direct), as mentioned, contributes to the company's overall management.

The analytical income statements relating to the specific sections are published on the SIAE website together with the management report.

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REVENUE AND COST ITEMS SIAE MUSIC DOR Lyrics OLAF CINEMA

OTHER

BUSINESS

ACTIVITIES

Revenues from services and facilities 163.116.169 92.601.414 12.758.575 4.971.080 10.175.600 42.609.499

Financial and extraordinary direct incomes 126.132 120.453 292 213 40 5.134

Revenues and income total 163.242.301 92.721.867 12.758.867 4.971.293 10.175.641 42.614.633

Direct personnel 58.793.957 33.896.417 6.814.568 2.670.527 2.264.797 13.147.648

Agents and external assessors 43.197.906 25.873.650 4.032.424 392.644 57.107 12.842.081

Other operational costs and charges 31.425.210 17.061.821 2.675.347 2.183.859 2.471.720 7.032.463

Costs and expenses total 133.417.074 76.831.888 13.522.339 5.247.030 4.793.623 33.022.193

Direct Margin 29.825.227 15.889.979 (763.472) (275.737) 5.382.017 9.592.440

Income / costs of central services (human

resources, purchasing and logistics,

administration, coordination and guidance,

infrastructure, information technology and

legal assistance)

26.929.979

Proceeds from the ancillary Management

(assets, financial and extraordinary)41.631.097

Corporate overhead (corporate bodies,

support structures to the senior

management, expenses for the

implementation of the Strategic Plan, etc.)

43.236.660

Income tax 974.102

Year result 315.583

DIRECT MANAGEMENT

INDIRECT MANAGEMENT

2.7 Financial information on the amounts due to rights-holders: amounts destined to allocation

Overall SIAE, as of 31/12/2015, recorded the following financial flows as represented below:

Flows for distribution 31/12/2015 764.323.488

Advances as of 01/01/2015 (67.876.571)

Music advances writedown Fund 482.640

Balance as of 01/01/2015 696.929.557

Net receipts 2015 529.889.516

Amounts distributed in 2015 (475.348.897)

Balance as of 31/12/2015 751.470.176

Flows for distribution 31/12/2015 819.075.446

Advances as of 31/12/2015 (67.994.841)

Music advances writedown Fund 389.571

Balance as of 31/12/2015 751.470.176

In 2015 SIAE collected receipts for intermediation, ancillary services to copyright and rights administered by way of law for a total of €570,881,131. Adding the author’s share related to private copying, amounting to €54,589,831, the total amounts to €625,470,962. The SIAE Group's share applicable to such receipts


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amounted to €95,581,446. The net proceeds (€529,889,516) represents the distribution of the current year. The rates applied by SIAE are those indicated in paragraph 2.4 above.

Below are presented the changes related to each administered repertoire, in the formats adopted, internationally, by CISAC.

Section I – MUSICAL WORKS: RIGHTS OF MUSICAL

PERFORMANCEGross receipts Allocated share %B/A Receipts to allocate

A B C

Radio 10.314.390 1.307.379 12,7% 9.007.011

TV 88.908.372 11.246.219 12,6% 77.662.154

Satellite 3.647.490 462.020 12,7% 3.185.470

Music film 13.751.718 2.860.330 20,8% 10.891.388

Live music 138.822.954 28.711.795 20,7% 110.111.159

Mechanical musical instrument i. Clubs 34.876.375 7.254.219 20,8% 27.622.156

Mechanical musical instrument ii. Other 80.692.344 16.783.613 20,8% 63.908.731

Online Multimedia 12.315.621 1.231.559 10,0% 11.084.062

Mobile Multimedia 90.600 9.060 10,0% 81.540

Total: 383.419.864 69.866.194 18,2% 313.553.670

Music – Rights for musical performance

Section II – MUSICAL WORKS: RIGHTS FOR MECHANICAL REPRODUCTION Gross receipts Allocated share %B/A Receipts to allocate

A B C

Radio 805.897 101.783 12,6% 704.114

Television 9.532.254 1.203.001 12,6% 8.329.253

Phonographic Market i. National 11.618.584 1.032.233 8,9% 10.586.352

Phonographic Market ii. Centralised licenses 3.958.097 278.056 7,0% 3.680.041

Videographic Market i. National 2.094.129 376.935 18,0% 1.717.194

Rights of Synchronisation 0 0 0,0% -

Private Copy i. Audio 28.975.401 869.262 3,0% 28.106.139

Private Copy ii. Video 3.198.932 95.968 3,0% 3.102.964

Online Multimedia 3.468.664 346.866 10,0% 3.121.798

Mobile Multimedia 422.630 42.263 10,0% 380.367

Total: 64.074.588 4.346.366 6,8% 59.728.222

Music – Rights for mechanical reproduction

Section III – AUDIO-VISUAL WORKS Gross receipts Allocated share %B/A Receipts to allocate

A B C

TV 22.950.916 3.197.577 13,9% 19.753.339

Satellite 26.962.819 3.774.795 14,0% 23.188.024

Private Copy 20.532.748 1.437.292 7,0% 19.095.456

Other (DVD) 769.799 138.555 18,0% 631.244

Other (Other multimedia uses) 451.003 45.100 10,0% 405.903

Total: 71.667.285 8.593.320 12,0% 63.073.965

Cinema – Audio-visual works

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Section IV – THEATRICAL AND LYRICAL WORKS Gross receipts Allocated share %B/A Receipts to allocate

A B C

Theatre 22.314.549 2.730.940 12,2% 19.583.609

Radio 5.337.224 661.546 12,4% 4.675.678

TV 10.580.758 1.276.348 12,1% 9.304.410

Satellite 304.327 38.333 12,6% 265.994

DOR Public events 2.290.835 503.984 22,0% 1.786.851

Rights to mechanical reproduction 0 0 0,0% -

Private Copy 236.185 37.499 15,9% 198.686

Opera Public events 405.110 12.153 3,0% 392.956

Total 18.379.448 4.043.480 22,0% 14.335.968

Totale: 59.848.436 9.304.283 15,5% 50.544.153

DOR and Lyrics

OLAF – Literary Works

Section V – LITERARY WORKS Gross receipts Allocated share %B/A Receipts to allocate

A B C

Public recitation 1.374.252 241.428 17,6% 1.132.824

Radio 168.001 23.520 14,0% 144.481

TV 12.000 1.680 14,0% 10.320

Rights to mechanical production 56.095 7.644 13,6% 48.451

Reprographics 2.609.048 521.809 20,0% 2.087.239

Private Copy 626.273 18.788 3,0% 607.485

Right to Public Lending 1.044.761 78.357 7,5% 966.404

Editorial rights 6.194 186 3,0% 6.008

Online multimedia 1.807 253 14,0% 1.554

Total: 5.898.432 893.665 15,2% 5.004.766

OLAF – Visual Arts

Section VI – VISUAL ARTS Gross receipts Allocated share %B/A Receipts to allocate

A B C

TV 80.000 11.200 14,0% 68.800

Satellite 127.500 17.850 14,0% 109.650

Rights to reproduce 823.031 102.879 12,5% 720.152

Rights to resale 7.818.090 1.485.436 19,0% 6.332.654

Private Copy 851.367 25.541 3,0% 825.826

Offline Multimedia 24.232 4.362 18,0% 19.871

Online Multimedia 47.380 6.633 14,0% 40.747

Total: 9.771.600 1.653.900 16,9% 8.117.700


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Intersectional Receipts - Abroad

Section VIIIa – SISTER COMPANIES’ RECEIPTS Gross receipts Allocated share %B/A Receipts to allocate

A B C

Musical Repertoire – rights to musical performance 19.806.694 594.199 3,0% 19.212.494

Musical Repertoire – rights to mechanical reproduction 4.824.141 144.723 3,0% 4.679.418

Audio-visual repertoire 2.210.805 66.324 3,0% 2.144.481

Theatrical repertoire 1.069.675 32.090 3,0% 1.037.585

Lyrical repertoire 80.958 2.429 3,0% 78.529

Literary works repertoire 853.041 25.591 3,0% 827.450

Visual arts repertoire 1.945.445 58.363 3,0% 1.887.082

Total: 30.790.758 923.719 3,0% 29.867.038

The average percentage of SIAE's share fell by 0.30 percentage points (from 15.6% in 2014 to 15.3% in 2015. This figure represents the mix between the rates applied to the various receipt items.

0 100000000 200000000 300000000 400000000 500000000

MUSIC

OTHER SECTIONS

Receipts-SIAE Group share2014-2015

2014

2015

2.8 Financial information on the amounts due to right-holders: distribution activities

The SIAE Sections during 2015, with allocation operations periodically ordinary and extraordinary (with different intervals between the individual sections such as to provide for quarterly, quarterly, semi-annual and annual payments) have attributed to right-holders, during the year 2015, a total of €474,783,258.

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ENTIRE REPERTOIRE S S

MULTIMEDIA (PANEUROPEAN) T T T T

DOR (*) ENTIRE REPERTOIRE T T A T T A

LYRICS ENTIRE REPERTOIRE Q Q Q

CINEMA ENTIRE REPERTOIRE S S

ENTIRE REPERTOIRE S S

RIGHT TO RESALE T T T T

REPROGRAPHICS A

RIGHT TO LEND A

KEY: A=annual; S=semiannually;T=quarterly;Q=four-monthly;

ANNOTATIONS

SIAE DISTRIBUTION - FREQUENCY, TYPE AND INTERVAL

SECTIONS TYPE OF ALLOCATION

CALENDAR

01 02 03 04 05 06

MUSIC

OLAF

For the year 2015 all allocations indicated were held in the terms provided for by the respective

Sectional Ordinances of Allocation.

(*)For DOR Section the illustrated figures do not account for 12 liquidations relating to advances for

works commissioned by RAI and RTI, made monthly.

07 08 09 10 11 12

The amounts distributed to those eligible in 2015 (with payments either account balance or in anticipation of future income not yet assigned) amounted to €475,348,897, plus €142,318,112 for other intermediary services, such as Private Copy, various Agreements etc. (Totalling €617,667,009).

The timetable is shown in the above table.

More importantly, it should be stressed that even in comparison with the main foreign collecting companies, SIAE is among those with the highest allocated capacity relative to the amount collected (data 2014).


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The following table summarizes the rights allocated and the amounts paid to rights-holders.

RIGHTS ALLOCATED DURING THE YEAR

Music Repertoire DEM 304.494.370 - - - - 304.494.370

Music Repertoire DRM 63.535.120 - - - - 63.535.120

DOR Repertoire DEM - 45.540.800 - - - 45.540.800

DOR Repertoire DRM - 152.195 - - - 152.195

Lyrics Repertoire DEM - - 8.531.375 - - 8.531.375

Lyrics Repertoire DRM - - 29 - - 29

Cinema Broadcasting and Multimedia - - - 33.813.841 - 33.813.841

Cinema Repertoire DRM - - - 6.360.249 - 6.360.249

OLAF Repertoire Figurative Arts - - - - 7.840.100 7.840.100

OLAF Repertoire Literary Works - - - - 4.515.179 4.515.179

RIGHTS ALLOCATED TOTAL 368.029.490 45.692.995 8.531.404 40.174.090 12.355.279 474.783.258

R Colmn of All.3 Direct Budget net equity 370.939.506 43.530.256 7.403.610 28.553.196 11.788.465

2.162.739- 1.127.794- 11.620.894- 566.814-

RIGHTS PAID DURING THE YEAR

PAYMENTS BALANCE 302.274.552 44.286.143 7.952.646 40.532.230 12.698.056 407.743.626

CAPITAL ACCOUNT ADVANCES TO BE MADE 66.056.750 1.406.852 21.724 89.050 30.894 67.605.271

ADJUSTMENTS TO ADVANCES TO BE MADE

RIGHTS PAID TOTAL 368.331.302 45.692.995 7.974.370 40.621.280 12.728.950 475.348.897

TABLE OF RIGHTS ALLOCATED AND THE AMOUNTS PAID TO RIGHTS-HOLDERS

MUSIC DOR LYRICS CINEMA OLAF SIAE TOTAL

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The amounts relating to flows for allocation, updated 31/12/2015, amounted to €751,470,176, are analysed in detail by Section, type of law and destination within the table presented below.

72%

21%

4%3%

Flows for allocation - Year 2015

Rights to be allocated analytically

Rights to be allocated via proportionalallocation

Rights to be allocated pending processing

Rights to be allocated awaiting settlement

NET BALANCE ON 31/12/2015 563.015.667 93.569.760 51.751.278 7.183.104 35.950.366 751.470.176

PAYABLES TO MEMBERS ON BALANCE (Payments, Advances and

charges for various rights)66.056.750 89.050 1.406.852 21.724 30.894 67.605.270

GROSS BALANCE ON 31/12/2015 629.072.418 93.658.810 53.158.130 7.204.828 35.981.260 819.075.446

of which:

RIGHTS TO BE ALLOCATED ANALYTICALLY 460.984.353 49.309.463 41.322.188 5.125.939 12.732.807 569.474.751

Rights collected during the year 379.171.839 45.797.968 26.457.292 2.415.177 10.271.692 464.113.969

Prior rights pending consolidation 81.812.514 3.511.495 14.864.896 2.710.762 2.461.115 105.360.782

RIGHTS TO BE ALLOCATED VIA PROPORTIONAL

ALLOCATION 130.086.698 17.378.023 3.108.406 1.317.937 12.857.223 164.748.287

Prior rights already allocated and not allocated subject to further processing

and/or additional allocations from the following year66.014.852 10.858.491 0 0 0 76.873.343

Rights suspended (for missing programs, newsletters, irregulars, etc)

undergoing processing and/or additional allocations subject to Deliberations

of the Management Board

64.071.846 6.519.532 3.108.406 1.317.937 12.857.223 87.874.944

RIGHTS TO BE ALLOCATED PENDING ATTRIBUTION 31.296.194 8.678.885 3.453.974 373.846 9.476.033 53.278.932

Rights not attributed for lack of identification elements (e.g. missing database

for works used, works or authors not identifiable etc) pending processing18.955.741 4.398.294 0 0 6.578.938 29.932.974

Rights attributed to eligible and non-liquidated (e.g., sequences are not

regularised, repertoire transfers, members deleted, incorrect payment mode,

residing abroad, etc)

12.340.452 4.280.591 3.453.974 373.846 2.897.095 23.345.959

GUARANTEE FUND 6.705.173 18.292.438 5.273.562 387.106 915.197 31.573.476

SIAETABLE ILLUSTRATING FLOWS FOR ALLOCATION MUSIC CINEMA DOR LYRICS OLAF


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The rights awaiting allocation, compared to 2014, show an increase of about €62m, or 12%, as a result of more business for copyright and private copying.

Description 2015 2014 Difference

Copyright receipts 570.881.131 520.996.075 49.885.056Private Copy (Q. Authors) 54.589.831 39.802.462 14.787.369Commissions (95.581.446) (87.722.676) (7.858.770)

Rights to allocate 529.889.516 473.075.861 56.813.655

Net payables on 31/12 751.470.176 696.929.557 54.540.619 The rights allocated but unidentified or suspended recorded a decrease of about €36m, or 14%. This reflects the actions, intensified in recent years, aimed at identifying and/or analytically allocating to rights-holders. 2.9 Relationships with other Foreign Collective Management Bodies

SIAE, during the year 2015, realised a net debt balance (cf. Balance of Payments 2015) with foreign Collection Management Companies registering a negative balance of €60,805,335.

Section Receipts Payments Balance

CINEMA 2.144.481 12.517.598- 10.373.117-

DOR 1.015.934 383.133- 632.801

LYRICS 80.958 769.145- 688.187-

OLAF 2.795.958 1.819.997- 975.962

MUSIC 24.630.835 75.983.628- 51.352.793-

DIRECT MANAGEMENT 122.592

Total 30.790.758 91.473.501- 60.805.335-

ABROAD – Receipts and Payments

This balance is due to receipts (net of "commissions" held by sister companies abroad) of €30,790,758 which undercuts related payments, net of allocated SIAE share, which together represents a total of €91,473,501 (the latter are considered without Italian taxes and fees for reciprocity of actual cash flow).

The report below shows the fluctuations divided by geographic area.

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0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Africa Asia Oceania America Europe

Abroad entry and

exit movements (€/thousands)

Receipts

Payments

ReceiptsPayments

The movements of the sections to and from foreign countries are represented below.

Music; 75.984

Cinema; 12.518

Dor; 383

Lyrics; 769

Olaf; 1.820

International payments

SIAE€ 91.474

Values in €m

Abroad entry and exit movements (€/thousands)

Receipts Payments

Africa 30 72

America 3.749 43.762

Asia 2.050 713

Europe 24.614 45.548

Oceania 348 1.378

30.791 91.474


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Music; 24.631

Cinema; 2.144

Dor; 1.016

Lyrics; 81

Olaf; 2.796

Direct Management; 123

InternationalReceipts

Values in €m

SIAE€ 30.791

Please note that each collection company transfers the rights net of its allocated share. On receipts from abroad SIAE holds a "commission" of 3%.

10. Cultural initiatives and social support

As previously reported, SIAE does not operate deductions for purposes of social, cultural and educational services (see. Section 2.2). Nevertheless, "The company provides loans, grants and other benefits, also to non-members, in order to promote meritorious initiatives" (art. 2 Statute) in the promotion of copyright. The resources devoted to these activities, in addition to what comes from the management surplus (art. 2 of the SIAE Statute), are charged to the income statement of the company. The commitment shown by SIAE, in 2015, in support of the Italian cultural and artistic heritage could be summarized in the words: Creativity, Culture and Youth, without neglecting solidarity/social actions in support of the needs of the weakest. In particular, this year the Sub-Committees have directly identified projects - including long-term - to be incurred as part of their disciplines.

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Events were numerous, the main ones are summarized in the table below.

It is also noted that SIAE, through a special Solidarity Fund, delivers solidarity benefits for members. The institute - which acts as the base of internal accounts separate to the Company - has undergone a major overhaul.

OPERA MUSICA-FIRENZE PER IL LIVE 60.000 IL JAZZ ITALIANO PER L'AQUILA 30.000

FESTA DEL CINEMA DI ROMA 50.000 TELETHON 15.000

EXPO IN CITTA' 50.000 LA SIAE PER FABRIZIO PINNA 10.497

ASSOCIAZIONE NAZIONALE CANTANTI 50.000 BRIDGE JAZZ MARATHON 10.000

PROGETTO CO2 37.600 PICCOLA ORCHESTRA DI TOR PIGNATTARA 10.000

PROMOZ. E ORG. RASSEGNA MEI 20.000 TEATRO PATOLOGICO 10.000

GIORNATE DEGLI AUTORI VENICE DAYS 15.000 CONCERTO PER PAPA FRANCESCO 10.000

PREMIO DAVID DI DONATELLO 13.000 PARTITA DEI CAMPIONI UNICEF 5.000

TERTIO MILLENNIO FILM FESTIVAL 10.000 PROGR.IN RICORDO M°CALIFANO 5.000

PINO DANIELE TRUST 10.000 ARTISTI UNITI PER PIACENZA 5.000

UNIVERSITA' CA' FOSCARI 10.000

ROCK CONTEST 10.000 110.497 SABAUDIA FILM FESTIVAL 10.000

GOLIARDA SAPIENZA 10.000

PROG.ORCH. SINFON. DEI QUARTIERI SPAGNOLI 10.000

FESTIVAL DI CASTROCARO TERME 10.000

UMBRIA JAZZ E UMBRIA JAZZ WINTER 10.000

FESTIVAL"TIVOLI CHIAMA! FESTIVAL DELLE ARTI" 10.000

PREMIO SIAE LIBERA IL JAZZ 10.000

MUSICULTURA FESTIVAL 10.000

FOND.NE CENTRO SPER.DI CINEMATOGRAFIA 7.500

ALICE NELLA CITTA' 7.500

MASTER- UNIVERSITA' SUOR ORSOLA BENINCASA 7.500

SPAZIO T°NO'HMA 5.000

PIANO CITY MILANO 5.000

FESTIVAL DI CAPALBIO 5.000

ARTE NEL CUORE 5.000

MUSICA LIBERA CONTRO LE MAFIE 5.000

DA SUD # RESTART 5.000

ARTHETICA- FESTIVAL DI PROCIDA 5.000

CALENDARIO CARABINIERI 5.000

Musica respiro celeste- Ernandez art gallery 5.000

SISTEMA DELLE ORCH.E DEI CORI INFANTILI 5.000

CORTI LIRICI 5.000

FONDAZIONE ENTE DELLO SPETTACOLO 5.000

ASS.CULT.TEATRO GIOV. "PREMIO MAZZELLA 4.000

PRIMAVERA SOUND 3.000

FONDAMENTA -SCUOLA TEATRO 2.500

PREMIO DONIDA 2.000

SOS MUSICISTI -CONVEGNO 2.000

ITALIAN GOSPEL CHOIR 2.000

IO LEGGO PERCHE' 1.500

MATERIALI MUSICALI-recrd store day Italia 1.500

PROGETTO MUSICA E MATEMATICA 100.000

"SIAE-CLASSICI DI OGGI" -PROGETTO MUSICA COLTA 300.000

DA LIBRIAMOCI A SCRIVIAMOCI 250.000

PROGETTI SEZIONE CINEMA 185.000

1.351.600

33.443

1.495.540

LA S.I.A.E. PER LA CULTURA: LA S.I.A.E. PER IL SOCIALE:

VARIE

TOTALE GENERALE


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The adoption of a new regulation, which entered into force on 1st January 2012, implemented by Article. 31 of the new Statute, was then updated February 21, 2013. The new provisions provide for the payments of grants, strictly personal and non-reversible, nor transferable to anyone. The Solidarity Fund is endowed by the interest that accrues from financial stocks pertaining to the separate management of the Fund, as well as the resources that will be allocated assuming same SIAE positive financial results. Separate accounts, detailed as follows, highlight performance in terms of contributions, grants and scholarships for € 1,014,025.

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Solidarity Fund

BALANCE SHEET - FS 2015 2014ACTIVEB) ASSETS

III) Financial assets

3) Other securities:

b) Fs securities 0 60.000.000

d) “Real Estate Fund” Fs securities 31.200.000 31.200.000

e) “Financial Fund” securities 60.000.000 0

Financial assets Total (III) 91.200.000 91.200.000

ASSETS TOTAL (B) 91.200.000 91.200.000

C) CURRENT ASSETS

II) Receivables

- Receivables from others 50.882 172.614

Receivables Total (II) 50.882 172.614

IV) Cash availability

1) Banking and postal deposits 2.997.175 1.501.008

Cash availability Total (IV) 2.997.175 1.501.008

CURRENT ASSETS TOTAL (C) 3.048.057 1.673.622

D) PREPAYMENTS AND ACCRUED INCOME

a) Prepayments and accrued income 0 484.110

PREPAYMENTS AND ACCRUED INCOME TOTAL (D) 0 484.110

ACTIVE TOTAL 94.248.057 93.357.732

PASSIVEB) FUND FOR RISKS AND CHARGES

3) Other

a) Solidarity Fund

1) benefits payment fund 3.202.241 3.202.241

2) equity fund 6.108.180 6.108.180

3) future solidaristic benefits restricted fund 80.837.864 80.698.270


Fund for risks and charges Total 93.014.309 92.874.715

FUND FOR RISKS AND CHARGES TOTAL 93.014.309 92.874.715

C) PAYABLES

g) various payables

1) various payables 100.654 97.448

2) parties payable from the SIAE 1.133.094 385.569

PAYABLES TOTAL 1.233.748 483.017

PASSIVE TOTAL 94.248.057 93.357.732


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Solidarity Fund

INCOME AND EXPENSES 2015 2014B) PRODUCTION VALUE

PRODUCTION VALUE TOTAL (A) 0 0

B) PRODUCTION COSTS

Management and operational costs 265.501 272.142

Personnel 76.906 105.527

Various management charges

- ordinary member subsidies 1.014.025 936.600

- provision for solidaristic benefits restricted fund 139.594 308.597

Various management charges total 1.153.619 1.245.197

PRODUCTION COSTS TOTAL (B) 1.496.026 1.622.867

DIFFERENCE (A-B) (1.496.026) (1.622.867)

FINANCIAL INCOME AND CHARGES

Other financial incomes

- interests on securities 1.755.887 1.084.709

- interests on bank c/a 35.573 947.080

Other financial incomes total 1.791.460 2.031.789

Interests and other financial charges

- interests and other financial charges 0 81.000

Interests and other financial charges total 0 81.000

FINANCIAL INCOME AND CHARGES TOTAL (C) 1.791.460 1.950.789

EXTRAORDINARY INCOME AND CHARGES

EXTRAORDINARY INCOME AND CHARGES TOTAL 142.145 144.394

RESULT BEFORE TAXES 437.580 472.316

Current taxes

- Ires 437.580 472.316

- Irap 0 0

Income tax total 437.580 472.316

YEAR RESULT 0 0 ***

This report was approved, at the proposal of the Director General, by the Management Board on 7 June. It will be updated at least annually and is published on the Company's corporate website (www.siae.it). President (signed)

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