Report on Transparency - 2014 - Società Italiana degli ... · Bolelli Ferrera Antonella Minellono Cristiano Bonizzoni Roberto ... Galletti Anna Laganà Giuseppe ... Report on Transparency

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SOCIETA’ ITALIANA DEGLI AUTORI ED EDITORI

Report on Transparency - 2014

(Directive 2014/26/EU, art. 22)

Società Italiana degli Autori ed Editori

Report on Transparency – 2014

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SIAE’s CORPORATE BODIES pag. 5

1. General information (article 22, par. 2 of the Directive) pag. 7

1.1 SIAE’s legal and governance structure pag. 7

1.2 Description of the activities during the fiscal year pag. 8

1.3 Information on the refusal to grant licenses pag. 8

1.4 Balance sheet, profit and loss account and financial report pag. 8

1.5 Organizations directly or indirectly held or controlled by SIAE pag. 22

1.6 Compensations for the Supervisory Board and Management Board members pag. 23

2. Financial information (article 22, par. 2 of the Directive) pag. 23

2.1 Financial information: general considerations pag. 23

2.2 Financial information: provisions for social, educational and cultural services pag. 25

pag. 25

pag. 29

pag. 30

pag. 32

pag. 33

pag. 37

pag. 40

pag. 43

2.8 Financial information on the sums due to rights holders: distribution

2.9 Relationship with other foreign collecting organizations

2.10 Cultural and social support initiatives

TABLE OF CONTENTS

2.3 Financial information: receipts (or turnover to be distributed)

and proceeds

2.4 Financial information: SIAE’s fees

2.5 Financial information on the costs for SIAE to manage rights and to provide services

Analytical accounting

2.6 Financial information on the costs for SIAE to manage rights and to provide services:

Sections

2.7 Financial information on the sums due to rights holders: sums to be distributed

(debt vis-à-vis members and agents)



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S.I.A.E.’s CORPORATE BODIES

At the date of approval of the Accounts

VICE PRESIDENT

Filippo Nicola Sugar

MANAGEMENT BOARD Monti Arduini Federico Proietti Biagio Purgatori Andrea Scordino Luca Domenico

SUPERVISORY BOARD

Micalizzi Franco Franchini Paolo

Angrisano Alessandro Maisano Michele

Barbagallo Angelo Biocca Antonino

Mauri Pierangelo 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



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ADVISORY COMMITTEES

MUSIC SECTION

CINEMA SECTION

Benini Massimo

Barbanente Mariangela

Buja Claudio

Biocca Antonino

Chiaravalle Valeriano

Conforti Michele

Colasanti Pietro

Gaudino Lucio

Corsi Paolo

Koch Giovanna

Costa Vittorio

Laganà Giuseppe Maurizio

Galletti Anna

Lusuardi Nicola

Lavezzi Mario

Minellono Cristiano

OPERA SECTION

Razzini Roberto

Battistelli Giorgio

Cannito Luciano

DOR SECTION

Moro Laura

Amurri Valentina

Narici Ilaria Anna

Brunetta Caprini Linda

Ostinelli Cristiano

Cavosi Roberto

Savasta Alessandro

Cinque Massimo

D’Arborio Paola

OLAF SECTION

Di Stefano Riccardo

Bolelli Ferrera Antonella

Flora Giovanna

Fallai Paolo

Longoni Gianmario

Foschini Cristina

Hoepli Giovanni Ulrico Carlo

Paolinelli Mario

Piccarolo Laura

BOARD OF AUDITORS INTERNAL CONTROL

Benito Di Troia Luca Domenico Scordino Giovanni Fiori Massimiliano Nova Deputies Romana Sciuto Giampiero Riccardi

DIRECTOR GENERAL Gaetano Blandini



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1. General Information (Directive 2014/26/EU, art.22 - par.2)

1.1 S.I.A.E.’s Legal and Governance structure

SIAE, the Italian Society of Authors and Publishers, is a Public Economic Body, founded as an association, regulated by Law n. 2 of January 9, 2008. In particular, pursuant to art. 1, paragraph 2, of the above Law "SIAE’s activities are governed by the rules of private law." Furthermore, SIAE has the exclusive right to copyright intermediation in Italy under Articles 180 et seq. of Law n. 633 of 22 April 1941 ("Protection of copyright and neighboring rights"). SIAE is a multipurpose management organization, which acts as an intermediary for copyrights in all artistic fields, presently subdivided into five specific sections: Music, Dor, Olaf, Opera and Cinema. The resources used to attain these objectives derive from the business results of this organization. SIAE does not receive - directly or indirectly - any transfer, grant, loan, or benefit from the State budget or from other public bodies. Therefore, its economic and financial management results are not linked to the State budget and to its borrowing requirements and have nothing to do with public finance. SIAE’s Statutes are published on its corporate website www.siae.it. The Statutes regulate the organization of the society and its governance.

SIAE’s governing bodies are as follows: the Assembly (Articles 9-11 of the Statutes), the Supervisory Board (Articles 12-14), the Management Board of (Articles 16-19) and the Board of Auditors (art. 20). Article 15 of the Statutes governs the five Advisory Committees, one for each section managed by the Society. Moreover, the Statutes provide for a statutory audit (Art. 21) and for the adoption of an organizational and management model designed to prevent frauds, pursuant to Legislative Decree n. 231/2001, with the establishment of a supervisory body with independent powers of initiative and control (Art. 23). SIAE’s website features its internal regulation, in particular:

- the General Regulations of the Society (Article 32 of the Statute), which contain, inter alia, the provisions related to the above-mentioned sections and the procedures for conciliation and arbitration; - the code of ethics or conduct (Article 32 of the Statutes), which governs the rules of conduct for all staff members who work in various capacities for the Society as well as for members and Mandators; - Model 231/2001.

http://www.google.com/url?q=http%3A%2F%2Fwww.siae.it&sa=D&sntz=1&usg=AFQjCNHxJ5ZJD2vHeOt-VFzXzLxIq8tGxw



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1.2 Description of the activities during the fiscal year

The detailed description of the activities carried out by SIAE during the year is contained in the Annual Management Report.

The report is published on its corporate website www.siae.it (see also section 1.3) together with the Annual Management Report.

1.3 Information on the refusal to grant licenses

In the course of 2013, SIAE did not refuse to grant licenses (except for the cases of license

revocation or refusal as a result of the applicant’s failure to comply with the licensing conditions or

of denial as provided for under the law).

In this regard, the licensing terms and conditions are published on its corporate website

www.siae.it.

1.4 Balance sheet, income statement and financial report

The Balance Sheet and the Profit and loss account drafted by SIAE comply with the accounting

standards provided for joint stock companies by the Civil Code and the accounting principles

established by the Italian Accounting Body (OIC), as updated during the year 2014. With such a

view, starting from January 1, 2005, S.I.A.E. underwent control on its accounts as provided by art.

2409-ter of the Civil Code (now art. 37 of the Legislative Decree nr. 39 of January 27, 2010).

The corporate accounts ended on December 31 2013 include:

- the Balance Sheet, the Profit and loss account and the Notes;

- the Management Report;

- the Financial Report;

- the separate reports relevant to the management of “Anti-counterfeiting SIAE Sticker” and

“Solidarity Fund”.

In the Management Report attached to the 2014 Balance Sheet are also highlighted the specific

features of the activity of S.I.A.E.

While waiting for the final adoption of the Directive 34/2013/EU of June 26, 2013, concerning the

Balance Sheet, a new classification of the items in the Profit and Loss Account with a view to

increasing transparency on the lines of conduct and the business results of the Society.





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It has been deemed useful to re-publish here such Profit and Loss Account, moreover specifying

that the published scheme is inspired by the Profit and Loss Accounts of the main European

Collecting Societies

The newly classified Profit and Loss Account above excludes the costs and income of the Solidarity

Fund (see par. “Separate Accounts – Solidarity Fund”).

MANAGEMENT 2014 2013

Income and Revenues 195,25 194,61 Authors’ rights: commissions and expense refunds 93,91 93,02

Authors’ rights: commissions reductions 4,70 3,80

Services to authors 11,71 13,69

Income for services and other revenues 49,61 49,16

Late payment of authors’ right interest and sanctions 6,62 6,03

Financial revenues 28,70 28,91

Costs and Expenses 179,95 180,13

Staff 87,74 89,84

Management and Functioning 81,90 80,51

Other burdens 6,21 4,82

Financial burdens 1,65 1,93

Amortization 2,45 3,03

Result of operating management 15,30 14,48

STRATEGIC MANAGEMENT

Plus/minus due to transfer of financial assets 4,96 8,86

Appreciation/Depreciation 0,02 (3,92)

Reduction of commission on collections (4,70) (3,80)

Company structure reorganization costs (9,42) (10,00)

Cultural and social activities (1,66) (0,24)

Result of the strategic management (10,80) (9,10)

Business result 4,50 5,38

Extraordinary management 0,05 0,96

Result before taxes 4,55 6,34

Corporate tax 1,08 4,75

Result of the financial year 3,47 1,59

Financial Year 2014 - New classification - Profit and Loss (Million Euros)



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The income and revenues of the operative management include:

- The commissions on collections;

- The economic effects of the reduction of commission due to the “strategic” management;

- The reimbursement of the expenses temporarily withheld on the private copying levy, to

be balanced on the basis of the relevant final accounts;

- The services to members;

- The remuneration for the cooperation with public and private bodies (Tax Agency, State

Monopolies, SCF, others);

- Anti-counterfeiting sticker services, ticketing, and so on;

- Interest of late payments of authors’ rights;

- The financial revenues. Said values include the profits of present investments deriving from

monies waiting to be distributed, as well as investments made on medium/long terms.

The operational costs are the cost of production, excluding appreciation and depreciation of

assets and the costs of cultural and social activities (see par. 2.10).

The “strategic management” highlights capital gain, the appreciation and depreciation of a

financial and property character, the lower income due to the reduction of some commissions on

collections, the costs of cultural and social activities.

The result of the operative management mirrors the trend of the present management.

The profit deriving therefrom, about 15 million euros, allowed to cover the costs of a strategic

character (reorganization, cultural and social activities, commissions reduction, and so on),

together with the capital gain.

The Business result is about € 4,5 million and generates a 3.5 million surplus after absorbing the

residual extraordinary items and taxes.

The income and revenues of the operative management show the financial revenues realized by

the Society in the management of the authors’ rights (as illustrated in the following chart) , as well

as those deriving from withheld sums (reserves, severance pay).



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The chart illustrates the operations of S.I.A.E.

Chart 1

The chart highlights how all sources of income (both those generally classified in the “value of the

production” and those belonging to the management of financial resources) are elements

embodied into the same production cycle of S.I.A.E. and belonging to the so called current

activities: that is to say, those activities that, according to the best company doctrine, continuously

renew themselves while the production progress, and whose value is directly influenced by the

repetitive operations of purchase-production-sale.

With the only particular feature that, in the case of S.I.A.E., the industrial cycle is inverted and is

represented by the phases of acquisition and management of the mandates, authors’ rights

collection, and distribution of collections.

Collections

Distribution to authors and

publishers

Collection and

management

of financial

resources

Distribution

to right

holders

Allocation to

the

repertoire

Fixation of

distribution

criteria



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This said, the Balance Sheet, the Profit and Loss Account and the Financial Report are published

here below.

The parts not reported below can be found in the 2014 Management report published on SIAE

website.



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BALANCE SHEET 2014 2013

ASSETS

B) FIXED ASSETS

I) Intagible fixed assets

3) 926,857 1,788,452

Total intagible fixed assets (I) 1,788,452

926,857

II) Tangible fixed assets

1) Land and real-estate properties 31,882,347 32,377,647

- Depreciation fund 8,039,577 (7,452,075)

23,842,770 24,925,572

2) Plants and machinary 5,906,108 6,194,478

- Depreciation fund 5,465,727 (5,801,936)

440,381 392,542

3) Industrial and commercial facilities 15,726,031 16,972,612

- Depreciation fund (14,759,100) (15,962,269)

966,931 1,010,343

Total tangible fixed assets (II) 25,250,082 26,328,457

III) Financial assets

1) Interests in:

d) other companies 3,732 5,033

3,732 5,033

2) Credits:

d) Vis-à-vis third parties

- instalments expiring in the next fiscal year 69,691 64,078

- Instalments expiring after the next fiscal year 84,187,189 186,422,156

84,256,880 186,486,234

3) Other securities:

a) S.I.A.E. securities 586,666,079 362,309,797

b) Fs securities 60,000,000 0

c) "Fondo Immobiliare" securities 164,609,996 164,609,996

d) Fs "Fondo immobiliare" securities"Fondo Immobiliare" securities 31,200,000 0

842,476,075 526,919,793

Total financial assets (III) 926,736,687 713,411,060

TOTAL ASSETS (B) 952,913,626 741,527,969

Industrial property rights and copyrights



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ASSETS 2014 2013

C) OUTSTANDING ASSETS

II) Credits

1) Vis-à-vis clients

a) vis-à-vis members and agents

1) vis-à-vis members and agents for memberships fees 1,386,419 2,643,505

and annual contributions - write-offs for membership fees (981,405) (2,330,720)

405,014 312,785

2) advances form members and agents 67,876,571 68,604,695

- write-offs for advance payments (482,640) (1,721,420)

67,393,931 66,883,275

67,798,945 67,196,060

b) for private copying 967 1,748,812

c) vis-à-vis other Mandators 1,999,709 1,409,095

d) vis-à-vis other users 31,822,000 33,145,560

e) vis-à-vis third parties 235,521 149,571

Total credits vis-à-vis clients 102,823,355 103,649,098

4-bis) Tax credits

1) vis-à-vis tax authorities 18,864,440 17,978,127

4-ter) Advance tax payments 12,118,972 11,831,489

5) Vis-à-vis others

a) employees 287,097 214,791

b) banks 153,276 28,540

c) other credits 4.602.094 4,091,690

- Write-off provisions for other credits (632,942) (629,082)

3,969,152 3,462,608

Total receivables from third parties 4,409,525 3,705,939

Totale Credits (II) 138,216,292 137,164,653

III) Non fixed financial assets

6) securities 20,296,000 56,143,825

20,296,000 56,143,825

IV) Liquidity

1) Bank and post deposits 216,480,845 464,180,521

3) Cash 11,847 11,016

Total liquidity (IV) 216,492,692 464,191,537

TOTAL OUTSTANDING ASSETS (C) 375,004,984 657,500,015

D) ACCRUED AND DEFERRED ASSETS

a) Accrued and deferred assets 8,038,651 9,542,576

TOTAL ACCRUED AND DEFERRED ASSETS TAXES (D) 8,038,651 9,542,576

TOTAL ASSETS 1.335.957.261 1,408,570,560

MEMO ACCOUNTSa) guarantees from dealers 3,795,049 3,641,286

b) Pension fund guarantee 11,849,340 16,051,340

c) Financial collateral for Fondo Norma 77,427,805 77,427,805

d) Bank guarantee for Fondo Forte 0 123,514

e) Sanctions ex art. 10 124,997 221,400

TOTALE MEMO ACCOUNT 93,197,191 97,465,345

TOTAL 1,429,154,452 1,506,035,905

Total non fixed financial assets (III)



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LIABILITIES 2014 2013

A) NET WORTH

III) REVALUATION RESERVES

1) revaluation reserve ex.L. 21/11/00 n. 342 39,150,070 39,150,070

2) revaluation reserve 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 revalution reserves (III) 91,721,926 91,721,926

V) Statutory reserves

1) permanent reserve 13,655,285 12,864,550

2) extraordinary reserve 9,652,278 8,940,617

Total Statutory Reserve (V) 23,307,563 21,805,167

VII) OTHER RESERVES

1) Lira/Euro conversation reserve 237 237

Total other reserves (VII) 237 237

VIII) SURPLUS/DEFICIT BROUGHT FORWARD 0 0

IX) Result 3,463,966 1,581,470

TOTAL EQUITY (A) 118,493,692 115,108,800

B) CONTINGENCY FUND

1) provisions for pensions and other charges

a) termination of employment benefits for agents 30,869,945 35,689,610

b) supplementary termination of employment benefits 31 19

Total provisions for pensions and other charges 30,900,525 35,709,002

2) Taxes, deferred taxes 00

3) Other provisions

a) Solidarity Fund

1) Benefit Fund 3,202,242 3,202,242

2) fondo patrimonialeAssets 6,108,180 6,108,180

3) Closed Fund for future pension benefits 80,698,270 80,389,672

4) Permanent reserve 2,866,024 2,866,024

92,874,716 92,566,118

b) for risks related to management activities 8,263,838 7,248,816

c) for risks to the Pension Fund management 11,849,340 16,051,340

d) for corporate reorganizational risks 21,000,000 17,342,809

e) for private copiyng refund adjustments 0 2,283,825

f) for incentives to employees 3,600,000 1,014,500

g) welfare charges 153 0

Total Other provisions 137,740,794 136,507,408

TOTAL CONTINGENCY FUND (B) 168,641,319 172,216,410



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LIABILITIES 2014 2013

TOTAL TERMINATION OF EMPLOYMENT BENEFITS 25,241,011 28,038,886

D) DEBTS

4)Debits vis-à-vis banks

a) withholding taxes 307,798 137,610

b) other debts 19 77,443,249

327 77,580,859

7) Debts vis-à-vis suppliers 16,967,611 13,171,688

12) Tax debts 13,861,208 17,890,856

13) Debts vis-à-vis security institutes 3,890,690 3,807,692

14) Other debts vis-à-vis

a) members, mandators and other parties 764,650,828 753,392,285

b) other parties for private copying 147,469,790 151,274,687

c) other agents (entities) 1,182,471 1,495,167

d) Dealers and others for temporary and contingent deposits 22,044,026 23,921,625

e) other companies and organizations 305,173 305,575

f) employees 9,275,209 11,288,442

g) other debts

1) miscellaneous 11,449,333 4,009,919

2) copyrights waiting to be paid 32,100,382 34,593,858

43,549,715 38,603,777

Total other debts 988,477,212 980,281,558

TOTAL DEBTS (D) 1,023,523,868 1,092,732,653

a) Deferred and accrued liabilities 57,371 473,811

TOTAL DEFERRED AND ACCRUED LIABILITIES (E) 57,371 473,811

1,335957,261 1,408,570,560

MEMO ACCOUNTSa) Guarantees from dealers 3,795,049 3,641,286

b) Guarantee for pension Fund benefits 11,849,340 16,051,340

c) Financial collateral for Fondo Norma 77,427,805 77,427,805

d) Bank guarantee for Fondo Forte 0 123,514

e) Sanctions paid ex art. 10 124,997 221,400

93,197,191 97,465,345

TOTAL 1,429,154,452 1,506,035,905

TOTAL LIABILITIES

C) TERMINATION OF EMPLOYMENT BENEFITS

E) DEFERRED AND ACCRUED LIABILITIES



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PROFIT AND LOSS ACCOUNT 2014 2013

A) PRODUCTION VALUE

1) Revenues from sales and services

a) membership fees and related services 11,714,299 13,687,571

b) fees on revenues from:

1) copyrights and other services 89,197,883 88,215,134

2) public film registry 41,447 44,939

3) special public registry for computer programs 33,765 44,909

89,273,095 88,304,982

c) refund of expenses for "private copying" 4,633,976 4,711,503

d) revenues and fees on the services entrusted by

tax authorities and to Sicily:

1) Revenues from services with tax authorities 29,300,608 28,344,300

29,300,608 28,344,300

e) revenues and fees from services entrusted by other entities:

1) fees on services entrusted to other entities 2,093,191 2,119,654

2) revenues from AAMS agreement 1,981,010 3,420,280

3) revenues from the agreement with instruments developers 7,670 7,127

4) revenues from rental services 830 1,070,538

5) revenues from the agreement with Production Music D.R.F. 2,647 7,339

6) revenues from the F.I.G.C. agreement 50,000 55,000

7) statistical services 226,079 204,720

10,221,440 6,884,658

f) other revenues and proceeds from sales and services

1) revenues from the sale of tickets and files/registries 931,795 929,309

2) secretarial rights 5,725,102 5,474,467

3) ticket validation 61,728 66,576

4) validation rights 3,499,958 4,181,498

5) revenues from Burcardo library 2,857 2,669

10,221,440 10,654,519

Total revenues of sales and services (1) 150,334,120 152,587,533

5) Other revenues and proceeds

a) rental receivables 254,425 382,650

b) other receipts 4,644,675 2,893,574

Total other revenues and proceeds (5) 4,899,100 3,276,224

TOTAL PRODUCTION VALUE (A) 155,233,220 155,863,757



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6) purchasing of

a) assets to be sold 724,360 290,671

b) consumer goods and materials 774,638 667,070

Total amount for purchasing (6) 1,498,998 957,741

7) services

a) agents

1) remuneration and retirement contributions 40,770,377 41,033,960

2) provision for termination of employment benefits 1,379,330 1,663,301

42,149,707 42.697.261

b) external examiners 381,326 519,847

c) outsourcing 3,396,426 3,318,423

d) professional, technical and IT services

1) administrative, technical, IT and legal services 4,735,479 4,803,356

2) consulting services 1,777,725 1,965,756

3) staff recruitment and training 223,329 142,799

6,736,533 6,911,911

e) various services 14,327,946 12,835,658

f) corporate bodies and other entities 1,135,180 1,028,777

Total for services (7) 68,127,118 67,311,877

8) for third-party assets

a) real-estate properties 11,085,623 10,898,454

b) rental and leasing of goods and equipment 1,460,106 1,623,767

Total for third-party assets (8) 12,545,729 12,522,221

9) for the staff

a) flat remuneration

1) flat remuneration 57,201,606 59,702,439

2) remuneration for inspections, extraordinary assignments and others 3,839,117 4,097,595

b) social charges 16,315,250 17,299,314

c) termination of employment benefits 4,717,676 5,048,349

d) retirement benefits and similar benefits: complementary benefits etc. 11,189 16,310

e) other costs 5,762,347 3,872,069

Total for the staff (9) 87,847,185 90,036,076



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10) Depreciation and devaluation

a) depreciation of intangible fixed assets 1,211,765 1,644,372

b) depreciation of tangible fixed assets 1,235,011 1,380,664

c) other devaluations of fixed assets 495,300 0

d) devaluation of credits related to the outstanding assets 6,682 2,567,127

of liquidity

Total depreciation and devaluation (10) 2,948,758 5,592,163

12) Provisions for risks and charges

a) provisions for future charges 2,996,952 1,581,182

b) provisions for refunding adjustments of private copying 0 689,517

Total provisions for risks and charges (12) 2,996,952 2,270,699

14) Other operating charges

a) Solidarity fund

1) benefits 936,600 630,582

2) provisions for solidarity benefits 309 1,119,195

1,245,197 1,749,777

c) protocol expenses 50,524 42,404

d) 742,854 703,007

e) taxes 1,315,954 1,551,298

f) various expenses

1) management of maintenance costs for real-estate rented 72,607 84,694

2) various expenses 1,096,032 394,455

3) operating costs 1,366,282 17,373

4) Surplus levy for reimbursement private copying expenses 228,733 0,000

2,763,654 496,522

Total operating costs (14) 6,118,183 4,543,008

TOTAL PRODUCTION COSTS (B) 182,082,923 183,233,785

DIFFERENCE (A - B) (26,849,703) (27,370,028)

Siae International activities, promotion of copyrights

studi e iniziative relativi alla promozione, sviluppo e diff. del patrimonio



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16) Other financial proceeds

a) from credits related to fixed assets 16,189 17,167

b) from securities related to fixed assets

1) dividends 0 0

2) interest receivables on securities:

- interest receivables 19,403,411 14,052,661

- interest receivables on Fs securities 1,084,709 132,998

20,488,120 14,185,659

3) various proceeds from securities:

- proceeds from securities 12 441

- proceeds from Fs securuites 0 2,078

12,395 2,519

20,500,515 14,188,178

c) from securities related to the otstanding assets

- interest receivables on securities 154,508 256,809

154,508 256,809

d) other proceeds

1) interest receivables on bank accounts:

- interest receivables on bank and post accounts 5,870,707 11,869,480

- interest receivables from Fs bank and post accounts 947 2,672,285

6,817,787 14,541,765

2) interests on tax credits 220,000 185,000

3) interests and other financial proceeds 3,021,581 2,525,824

4) additional copyright proceeds - interests on arrears 6,618,171 6,029,334

5) interests on arrears and private copying sanctions 814,000 1,326

16,678,353 23,283,249

Total other financial proceeds (16) 37,349,565 37,745,403

17) Interests and other financial charges 1,732,635 1,944,952

17-bis) Exchange rate profits and losses

a) exchange rate difference (1,640) (220)

Total exchange rate profits and losses (17-bis) (1,640) (220)

TOTAL FINANCIAL PROCEEDS AND CHARGES (C) 35,615,290 35,800,231

D) VALUE ADJUSTMENTSOF FINANCIAL ASSETS

18) Increase in value 518,000 303,625

19) Decrease in value 0 (471,800)

ADJUSTMENTS OF THE VALUE OF FINANCIAL ASSETS (D) 518,000 (168,175)

C) FINANCIAL PROCEEDS AND CHARGES



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E) EXTRAORDIANRY PROCEEDS AND CHARGES

20) Extraordinary proceeds

a) various extraordinary proceeds 4,425 50,709

b) capital gain on transfer of securities 4,958,604 8,203,738

c) other accrued assets 518 2,306,253

5,481,306 10,560,700

d) capital gain on real-estate investments 0,000 659,025

Total extaraordinary proceeds (20) 5,481,306 11,219,725

21) Extraordinary charges

a) Pension fund restructuring charges 0 700,000

b) capital loss/decrease in the value of securities 0 1,188,000

c) corporate reorganizational charges 9,416,947 10,000,000

d) various extraordinary charges 330,121 601,422

Total extraorninary charges (21) 9,747,068 12,489,422

TOTAL EXTRAORDINARY PROCEEDS AND CHARGES (E) (4,265,762) (1,269,697)

RESULT BEFORE TAXES 5,017,825 6,992,331

22) INCOME TAXES

a) current taxes

- Ires 206,860 769,825

- Irap 1,634,482 2,033,977

b) deferred taxes

- Active 287,483 0

- Passive 0 2,607,059

TOTAL INCOME TAXES (22) 1,553,859 5,410,861

23) RESULT 3,463,966 1,581,470



20

2014 2013

SOURCES OF FINANCING

Result 3,463,966 1,581,470

Depreciation of tangible fixed assets 1,235,011 1,380,664

Depreciation of intangible fixed assets 1,211,765 1,644,372

Decrease/(increase) of receivables (1,051,639) 28,744,368

Decrease/(increase) of deferred and accrued assets 1,503,925 (1,006,349)

(Decrease)/increase of debts vis-à-vis suppliers 3,795,923 (3,594,413)

(Decrease)/increase deferred and accrued liabilities (416,438) 316,219

Increases for the contingency fund 17,480,945 16,784,005

Use of the contingency fund (21,056,036) (14,311,207)

Increase of the termination of employment benefit fund 4,717,676 5,048,349

Use of the termination of employment benefit fund (7,515,551) (7,416,223)

(Decrease)/increase in other debts and advances (73,004,708) 66,145,476

Liquidity generated by the management of revenues (69,635,161) 95,316,731

Net accounting value of the assets sold 496,053 1,530,952

(69,139,108) 96,847,683

USE OF LIQUIDITY

Purchase of tangible fixed assets (652,690) (612,547)

Purchase of intangible fixed assets (350,170) (2,075,731)

Non fixed financial assets (other securities) 35,847,825 69,921,675

net variation of the financing credits (213,325,628) (134,118,840)

Sharing of the profits of the previous year -79074 (455,596)

-178559737 (67,341,039)

Liquidity variation -247698845 29,506,644

INITIAL LIQUIDITY 464,191,537 434,684,893

FINAL LIQUIDITY 216,492,692 464,191,537

FINANCIAL REPORT



21

1.5 Entities directly or indirectly owned or controlled by SIAE

A. Norma Fund – As of 31 December 2014, SIAE holds 1658 shares for a total net value of € 173,132,156 (€ 104,422.29 share value) of the closed real-estate fund "Norma", reserved for institutional investors and established on 19 December 2011.

B. Aida Fund - At the end of 2012, the Norma Fund acquired the real-estate fund AIDA. This

Fund started operating in 2011 with an initial capital amounting to € 63,900,000 subdivided

into 639 shares with a unit value of € 100,000. As of today, the Fund’s capital amounts to €

79,073,964.

C. Armonia - SIAE is a member of the European Economic Interest Grouping (EEIG) "Armonia",

whose purpose is the creation of a licensing hub to grant pan-European licenses to multi-

territory Digital Service Providers (DSPs). SIAE’s membership share as of 31.12.2014

amounts to € 88,114.

D. Fast Track (FT-The Digital Copyright Network) - It is a simplified joint stock company, 9.84%

of which is held by SIAE for a total value of € 3,642. The statutory objective is to connect

the databases of its various companies to make them interoperable. FT is a technology

provider that develops solutions for the benefit of its partners and the CISAC community,

so to improve the management of copyright through an accurate and rapid exchange of

information.

E. Global Repertoire Database (GRD) – It is a company founded in 2013 with the name "GRD

Limited" - of which SIAE holds 900 shares with a nominal value of one euro cent (for a total

of € 90). On December 9, 2014, the company went into liquidation. In 2015 SIAE was

credited its shares plus € 742.28.

F. RAI and MEDIASET - SIAE holds RAI shares for a book value equal to € 130,887 and a par

value of € 1,071,100 (0.44% of the share capital). SIAE is also holder of Mediaset shares

(0.0006% of the share capital) with a nominal value equal to and book value of € 3,615.

G. Nabucco Fund – On October 2, 2014, SIAE’s Solidarity Fund bought 312 shares for a total

value of € 31,200,000 (unit share value: € 100,000) of the Nabucco Fund, a closed

investment fund, reserved to international investors.



22

1.6 Compensations paid to the members of the Supervisory Board and the Management Board

The compensations paid in 2014 to the members of SIAE’s corporate bodies were as follows:

- € 332,000 to the Supervisory Board;

- € 325,000 to the Management Board;

- € 130,000 to the Board of Auditors.

The compensations are expressly regulated by the Statutes (Art. 8).

In addition, the following bodies received:

- € 145,000 for the Supervisory Authority 231/2001;

- € 96,148 for the Audit firm.

In 2014, SIAE also paid a total of € 59,400 to the Sections’ Committees.

2. Financial information (Article 22, paragraph 2 of Directive 2014/26/EU)

2.1 Financial information: general considerations

A. – Collections - The sums received by the Society arising from the provision of collecting services are not considered by SIAE as an item of the profit and loss account.

These sums (or receipts) are intended to be distributed among the Members (and mandators) and

they are indicated in the report as "debts" vis-à-vis Members (and mandators), provided that such

definition ("debt") is neither considered as an "imbalance” nor as a financial requirement.

B. Proceeds - SIAE derives its proceeds from the "fees" applied on the receipts from administrative services (collection, distribution and payment of authors’ rights) provided to the members and mandators.

The proceeds from authors’ rights, together with the fees for the services provided to third parties

or mandated by law and with other sources of income, constitute the revenues in the "production

value".



23

The production value, the financial proceeds and any other extraordinary source of income are

used to remunerate all the factors of production and to cover the other operating costs and

expenses.

As indicated in par. 1.4, the financial proceeds are generated by the different sources of financing

indicated under “Liabilities” in the balance sheet (net worth, provisions for risks and charges,

debts) and by copyright management.

With reference to the proceeds resulting from the management of copyrights, they are distinctive

because of the time elapsing between the receipts and the distribution (their collection precedes

the payments to members). Moreover, the frequency and the rules of distribution are established

by the Members each year through specific orders to be approved by the Sections’ Committees.

Finally, the financial results are indicated in the balance sheet in a section other than the one

related to the production value, in accordance with the provisions of Articles 2424, 2424 bis, 2425

and 2425 bis of the Civil Code.

2.2 Financial Information: deductions for social, cultural and educational Services

SIAE does not operate any deduction for social, cultural and educational purposes.

2.3 Financial information: table of receipts (or turnover to be distributed) and proceeds

The illustration of the trends related to receipts and proceeds is given in the management report

and, more generally, in the annual financial statement.

The copyright proceeds increased by € 1.6 million (+0.3% as compared with 2013). Adding the

“Authors” share of the Private Copying Levy allocated to the various Sections to the authors’ rights

collected, the gross rights to be distributed register an increase amounting to € 19 million (+4% as

compared to 2013).



24

As to proceeds, a slight decrease occurred in comparison with 2013 (€ 0.6 million, that is to say -0.4%) due to:

- The decrease of some of the commission fees on the collections for the use of music works, with a reduction of € 4.7 million (against - € 3.8 milioni in 2013; in fact, in 2013, a reduction on the 2013 collections only had been already decided for all collections in all the repertoires).

- The “services provided to other bodies”. In this field, a decrease amounting to € 1.5 million occurred as a consequence of the decrease in the activity of control entrusted to SIAE by the State Monopolies.

As to the Private Copying Levy, it is to be underlined that S.I.A.E. exclusively recovers its own expenses and does not apply any commission.

Here below is the summary of collections by repertoire according to the CISAC standard scheme.

64% 11%

7%

6%

6% 4% 1% 1%

Collections 2014

Public performing rights: 359.48

Dramatic and dramatic-musical works: 61.52

Private Copying: 39.8

Music Mechanical Rights: 32.31 From abroad: 30.31

Audiovisual works: 24.49

Plastic, graphic and photographic works: 7.23

Literary works: 5.65

Million €



25

Again, with regard to the receipts, it is important to keep in mind the national and international

context in which SIAE operates.

The year 2014 ended with a slight global economic upturn, though with different trends in the

various regions interested. The growth has been substantial in the USA, it is reinforcing in Japan,

and slowing down in China and Russia, where, on the contrary, the general economic conditions

appear to be declining.

In the financial markets of the euro zone, rates further decreased in a context of increased

liquidity, from time to time reaching a new all-time low, so reflecting both the (perceived)

weakness in growth and the contained inflation dynamic, as well as the markets expectations

about the purchase of sovereign debt by the Euro System.

At the same time, also the labor markets showed some signs of improvement, even though the

employment is still high and the spare production capacity is expected to decline only gradually.

With a specific view on Italy, some feeble signs of improvement have emerged. In the fourth

quarter of 2014, the GDP stopped falling, thanks to increased exportations and consumption and

to a slight rise in investments.

Therefore, in 2014, the conjunctural economic environment of the Country remained in recession,

though mitigated by some signs of improvement.

The average inflation trend rate registered in 2014 was about 0.2% against 1.3% in 2013 as

compared to 2011 (source: ISTAT Relazione III e IV Trimestre "La misura dell'inflazione per classi di

spesa delle Famiglie").

Summary by repertoire National Gross Collections Amounts deducted for Administration

Costs % B/A

Gross Distributable Income (A-B)

Net Distributable A B C

Section I - musical works: public performing rights

359,484,599 66,245,897 18.4% 293,238,702

Section II - musical works: mechanical reproduction rights

61,411,090 4,293,753 7% 57,117,337

Section III - audiovisual works 34,191,286 4,121,242 12.1% 30,070,044 Section IV - dramatic and dramatic-musical works

62,458,071 9,873,670 15.08% 52,584,401

Section V - literary works 5,679,069 933,252 16.4% 4,745,817 Section VI - plastic, graphic and photographic works

7,268,940 1,345,704 18.5% 5,923,236

Section VII - other rights 0% - Subtotal 1: domestic collections 530,493,055 86,813,518 16.4% 443,679,537 Section VIIIa - collections from foreign affiliated societies (Import) 30,305,482 909,161 3% 29,396,321

Total: Subtotal 1 + income from abroad 560,798,537 86.539.473 15.6% 473,075,858

SIAE - Authors' rights collections



26

As to the household spending ability, taking into account their “gross disposable income” and the

related “purchasing power” (source: Relazione III Trimestre 2014 "Reddito e Risparmio delle

famiglie e profitti delle società"), some signs of a slowdown in the negative trends of the previous

years have emerged:

- The gross aggregate disposable income grew by 1% in real terms against 0% in 2013; and

the related purchasing power increased by 0.8%;

- The household expenditure for “final consumption” (which also includes expenditure for

entertainments) inverted this trend, increasing by 0.5% against the decrease registered in

the preceding year;

- The amount of the household gross fixed investments (mostly for purchasing real estate)

decreased by 2.6%, less than in 2013 (-4.5%).

While the household disposable gross income is increasing, thanks also to the decrease of the

consumer prices, final consumption did not grow, as families’ propensity to save increased due to

the uncertainty over the future.

In conclusion, a new start of the business cycle is still to be consolidated, but we can and have to

rely on a clear improvement of households’ confidence (as said in the Bank of Italy Journal n.

2/2015).



27

2.4 Financial information: SIAE’s commissions in details

Percentages for fees (commissions) applied by SIAE are summarized in the following table:

2013 2014 2013 2014

Public performances, live and recorded, in

entertainments, dancing and small concerts 21.0% 20.8% Video reproduction on a "work by work" basis 18.0% 18.0%

Broadcasting of soundtracks (films, short films and so

on) in cinema halls 21.0% 20.8% Recording by broadcasters 13.0% 12.7%

Broadcasting of soundtracks by radio/tv broadcasters 13.0% 12.7% Reproduction on music DVDs 9.3 9.3%

Broadcasting and recording by radio/tv broadcasters 13.0% 12.7%

Reproduction on carriers sold at a reduced

price or distributed for free, during

promotional campaigns and so on

9.3% 9.3%

Broadcasting in public venues through radios, tv sets,

cable radio 21.0% 20.8% Blank license for mechanical reproduction 7.3% 7.3%

Public perfomamces, such as concerts, revues, bands

and variety shows 21.0% 20.8%

Centralized multi territorial licenses for

mechanical reproduction 7.0% 7.0%

Uses abroad 3.0% 3.0% Licenses "work by work" for mechanical

reproduction 10.0% 10.0%

Online uses (streaming, webcasting, etc.). 10.0% 10.0% Uses abroad 3.0% 3.0%

Performances or representations of original works 7.0% 8.0% Performances or representations of original

works 11.0% 12.0%

Performances or representations of elaborated works 22.0% 22.0% Performances or representations of

elaborated works 22.0% 22.0%

Broadcasting and reproduction by radio/tv

broadcasters 13.0% 14.0%

Broadcasting and reproduction by radio/tv

broadcasters 13.0% 14.0%


cable radio 21.0% 22.0%

Broadcasting in public venues through radios,

tv sets, cable radio 21.0% 22.0%

Online uses (streaming, webcasting, etc.) 10.0% 10.0% Online uses (streaming, webcasting, etc.) 10.0% 10.0%

Uses abroad 3.0% 3.0% Uses abroad 3.0% 3.0%

Audio reproductioon 10.0% 10.0% Audio reproduction 10.0% 10.0%

Video reproduction 18.0% 18.0% Video reproduction 18.0% 18.0%

Broadcasting by radio/tv broadcasters 13.0% 14.0% Broadcasting by radio/tv broadcasters 13.0% 14.0%


cable radio 21.0% 22.0%

Broadcasting in public venues through radios,

tv sets, cable radio 21.0% 22.0%

Public reading and recitation (PDL) 7.0% 8.0% Reproduction of visual art works (paintings,

sculptures, graphic works and photos) 11.5% 12.5%

Lending by public libraries 7.5% 7.5% -Diritto di seguito (vendite, successive alla

prima, di opere). 20.0% 19.0%

Reprography (reproduction for personal use within

15% of the work) 20.0% 20.0% On line uses (streaming, webcasting etc.) 14.0% 14.0%

Online uses (streaming, webcasting etc.) 14.0% 14.0% Uses abroad 3.0% 3.0%

Uses abroad 3.0% 3.0% Video reproduction 18.0% 18.0%

Audio reproductioon 10.0% 10.0%

Video reproduction 18.0% 18.0%

Publishing rights 3.0% 3.0%

Fair compensation for tv broadcasting of audiovisual

works 13.0% 14.0%

-Equo compenso per riproduzione video di opere

audiovisive. 18.0% 18.0%

Online uses (streaming, webcasting 10.0% 10.0%

Uses abroad 3.0% 3.0%

SIAE'S FEES (COMMISSIONS)

MUSIC WORKS

Music performing rights Music mechanical reproduction rights

Dramatic works, operas

Operas, ballets Theatre

LITERARY WORKS AND VISUAL ART WORKS

Literary works Visual arts

CINEMATOGRAPHIC WORKS

Audiovisual works



28

2.5 Financial information on the costs for the managements of rights and other services

provided by the Company: analytical accounting methodology

The analytical profit and loss accounts are structured by Section. The Section includes the set of

the activities and processes for managing each specific repertoire (Music, Cinema, Dor/Theatre,

Opera, Olaf/Literary and Visual arts works).

The Music Section administers the rights of public performance, mechanical reproduction,

broadcasting, recording, digital reproduction, multimedia, private copying rights (authors’ shares).

The DOR (dramatic/theatre works, operettas, revues)/OPERA section administers the performing

right of operas, mechanical reproduction, broadcasting, digital reproduction, multimedia, private

copying rights (authors’ shares). It also provides lending of materials and critical editions. As to

theatre works, it administers the public performing rights, reproduction rights, digital

reproduction, the private copying rights (authors’ shares).

The OLAF Section (visual arts and literary works) administers the rights of public recitation, the

publishing rights, the resale rights, the lending rights, the reproduction, broadcasting, digital

reproduction rights, reprography, multimedia, private copying (authors’ shares). It provides

services for the registration of unpublished works and the marking of cover pages.

The CINEMA Section administers the fair compensation due for the use of cinematographic works.

It collects the insurance sums for films and locations and other services (e.g. Information on film

showings).

The Sections’ profit and loss account contains the direct costs and revenues related to "business

services".

It shows the direct margin deriving from the resources generated which are able to cover the

costs for the provision of business services connected to that specific administration.

The balance of the management of assets and of financial resources (by way of example: the

income from rents) is not included in the Sections’ profit and loss account and is intended to cover

costs for central services (human resources, administration costs, purchasing and logistics, legal

counseling, IT infrastructures, etc.), the company’s general expenses consisting of the costs and

revenues related to the corporate bodies and the supporting structures, the Pension Fund, the

extraordinary transactions related to the implementation of strategic plans, tax charges and other

non-recurring proceeds and expenses.

The income items related to the business in the analytical accounting model are:



29

- the revenues and the expenses associated uniquely to the specific management that, as

such, do not require any allocation;

- the costs of the business structures that, in relation to the use of the human resources

directly devoted to the Sections’ activities, are periodically assigned to the respective profit and

loss accounts on the basis of the data provided by each Section.

The parameters used to allocate the costs and revenues to the business units are as follows:

- the square meters used for the allocation of the operating costs including but not limited to:

security, cleaning, maintenance, real estate, rental expenses;

- the number of people present in each structure for the allocation of costs such as,

telephone services, maintenance, office equipment, health insurance;

- specific statistical parameters (by way of example: the number of machines, personal

computers, servers) and quantitative parameters (by way of example: turnover, number of

invoices, number of bank payment slips, number of licenses) for the allocation of activities, such

as, for instance, ITC, front office and administrative actrivities;

- the cost of human resources for the allocation of common costs for human resorces (by way

of example: provisions, insurance policies);

- the incidence of revenues related to items to be distributed, for the allocation of proceeds

related to collection (by way of example: administrative rights of procedures);

- the incidence of revenues related to the items to be distributed, for the allocation of costs

generated by specific activities (by way of example: pro-rata VAT on exempt revenues);

- the incidence of direct costs (cost to cost) used for the allocation of costs including but not

limited to the costs for coordination of the Territorial Network, the "accessory" costs of agents

(such as social security contributions and refunding of expenses).

2.6 Financial information on the costs for the management of rights and other services

provided by the Society: the Sections tables

The analytical accounting process allows for drafting the profits and losses related to the various

services and their margins.

The economic data for 2013 show the results from the management of copyright and other

services provided by the Society, whose margin (direct), as mentioned, contributes to the overall

operation of the Society.



30

The loss and profits accounts of the Sections are published in the SIAE’s website together with the

statement of accounts.

INCOME AND COSTS SIAE Music DOR/LIRICA OLAF CINEMA OTHER BUSINESS ACTIVITIES

DIRECT MANAGEMENT

Income from services 153,147,443 85,909,660 12,469,653 4,356,691 4,887,338 45,524,101

Financial and extraordinary direct income

6,879,256 4,480,984 2,265,083 132,364 - 825

TOTAL income from services 160,026,698 90,390,644 14,734,736 4,489,055 4,887,338 45,524,926

Direct staff 65,888,708 36,305,155 7,948,777 3,307,620 3,074,617 15,252,539

Agents and external inspectors 45,526,645 24,885,246 4,287,983 386,342 47,208 12,919,867

Other operating costs and charges

33,305,858 17,601,136 2,960,576 1,826,581 1,212,416 9,705,148

TOTAL costs and charges 141,721,212 78,791,212 15,197,336 5,520,544 4,334,241 38,877,555

Direct margin 18,305,487 11,599,107 (462,600) (1,031,489) 553,097 7,647,372

Indirect management

Income/costs of Central Services (human resources, purchasing and logistics, administrative, coordination, IT infrastructures and legal counseling)

27,900,847

Income from accessory management (assets, financial and extraordinary)

34,952,141

General business expenses (governing bodies, structures for support to top management, expenses for the strategic plans, and so on)

20,955,263

Income tax 937,549

Result of the business 3,463,966



31

2.7 Financial information on the amounts due to right holders: sums to be distributed

As of December 31st, 2014, SIAE recorded the following amounts financially achieved as follows:

Amounts to be distributed as of January 1st,

2014752,952,005

Advances as of January 1st, 2014 (68,604,695)

Music advances depreciat ion fund 1,721,420

Balance as of January 1st, 2014 686,068,730

Net collections 2014 473,075,861

Amounts distributed in 2014 (462,215,034)

Balance as of January 1st, 2014 696,929,557)

Amounts to be distributed as of December

31st, 2014764,323,488

Advances as of December 31st, 2014 (67,876,571)

Music advances depreciat ion fund 482,640,00

Balance as of December 31st, 2014 696,929,557

In total, in the 2014 financial year, S.I.A.E. collected 520,996,075 €, for intermediation, accessory services and rights administered ex-lege. Adding the author shares of the private copying levy, amounting to 39,802,462 €, the total amounts is 560,798,537 €. Commissions deducted by S.I.A.E. amount to 87,722,676 €. The net collections figure (473,075,861) represents the amount to be distributed. The commission percentages applied by S.I.A.E. are indicated in paragraph 2.4 above.

Here below the figures for each administered repertoire, according to the format adopted by CISAC in the international field.



32

Section I - MUSIC WORKS: PERFORMING

RIGHTS Gross collections Commissions B/A %

Collections to be

distributed (A-B)

A B C

Radio 11,266,295 1,424,613 12.6% 9,841,682

Television 66,548,371 8,364,125 12.6% 58,184,246

Satellite 15,640,077 1,981,011 12.7% 13,659,066

Film music 12,777,331 2,65,7666 20.8% 10,119,665

Live music* 133,185,959 27,535,660 20.7% 105,650,299

Music with mechanical instrument:

Discoteques 34,263,975 7,126,862 20.8% 27,137,113

Music with mechanical instrument: Other 79,406,119 16,516,316 20.8% 62,889,803

Online Multimedia 6,224,701 622,467 10.0% 5,602,234

Mobile Multimedia 171,771 17,177 10.0% 154,594

Total: 359,484,599 66,245,897 18.4% 293,238,702

Music works - Performing Rights

Section II - MUSIC WORKS: MECHANICAL

REPRODUCTION RIGHTS Gross collections Commissions B/A %

Collections to be

distributed (A-B)

A B C

Radio 872,863 110,848 12.7% 762,015

Television 9,770,083 1,239,946 12.7% 8,530,137

Phonographic Market i. National 11,541,119 1,036,177 9.0% 10,504,942

Phonographic Market ii. Centralized

licenses3,857,392 270,982 7.0% 3,586,410

Videographic Market i. National 1,720,350 309,654 18.0% 1,410,696

Synchronisation Rights 4,673 701 15.0% 3,972

Private Copying i. Audio 24,496,394 734,892 3.0% 23,761,502

Private Copying i. Video 4,632,404 138,972 3.0% 4,493,432

Online Multimedia 3,899,580 389,958 10.0% 3,509,622

Mobile Multimedia 616,232 61,623 10.0% 554,609

Total: 61,411,090 4,293,753 7.0% 57,117,337

Music works - Mechanical Reproduction Rights

Section III - AUDIOVISUAL WORKS Gross collections Commissions B/A % Collections to be

distributed (A-B)

A B C

Television 22,694,720 3,162,890 13.9% 19,531,830

Satellite 340,639 47,785 14.0% 292,854

Private copying 9,659,073 676,135 7.0% 8,982,938

Other (DVDs) 1,059,349 190,681 18.0% 868,668

Other (multimedia other uses) 437,505 43,751 10.0% 393,754

Total: 34,191,286 4,121,242 12.1% 30,070,044

Cinema - Audiovisual works



33

Section IV - THEATRE WORKS AND

OPERAS Gross collections Commissions B/A %

Collections to be

distributed (A-B)

A B C

Theatre 22,873,210 2,797,210 12.2% 20,076,000

Radio 4,963,453 694,884 14.0% 4,268,569

Television 12,776,269 1,788,666 14.0% 10,987,603

Satellite 269,056 37,668 14.0% 231,388

Public venues theatre repertoire 18,167,168 3,996,778 22,0% 14,170,390

Other (Multimedia other uses) 450 45 10.0% 405

Mechanical reproduction rights 185,248 28,842 15.6% 156,406

Private copying 944,898 28,347 3.0% 916,551

Public venues opera repertoire 2,278,319 501,23 22.0% 1,777,089

Total: 62,458,071 9,873,670 15.8% 52,584,401

THEATRE, OPERAS

Section V - LITERARY WORKS Gross collections Commissions B/A % Collections to be

distributed (A-B)

A B C

Recitation in public 1,461,185 247,047 16.9% 1,214,138

Radio 184,637 25,849 14.0% 158,788

Television 12,000 1,68 14.0% 10,32

Mechanical reproduction rights 121,437 17,539 14.4% 103,898

Reprogaphy 2,799,280 559,856 20.0% 2,239,424

Private copying 27,563 827 3.0% 26,736

Public Lending Right 1,069,165 80,187 7.5% 988,978

Publishing rights 2,410 72 3.0% 2,338

Online Multimedia 1,392 195 14.0% 1,197

Total: 5,679,069 933,252 16.4% 4,745,817

OLAF - Literary works

Section VI - VISUAL ARTS Gross collections Commissions B/A % Collections to be

distributed (A-B)

A B C

Television 80,000 11,200 14.0% 68,800

Reproduction rights 635,141 79,400 12.5% 555,741

Resale rights 6,431,749 1,240,212 19,3% 5,191,537

Private copying 42,130 1,264 3.0% 40,866

Offline Multimedia 60,984 10,977 18.0% 50,007

Online Multimedia 18,936 2,651 14.1% 16,285

Total: 7,268,940 1,345,704 18.5% 5,923,236

OLAF - Visual arts works



34

Section VIIIa - COLLECTIONS FROM

FOREIGH SOCIETIES Gross collections Commissions B/A %

Collections to be

distributed (A-B)

A B C

Music repertoire - performing rights 19,369,095 581,071 3.0% 18,788,024

Music repertoire - mechanical

reproduction rights4,920,337 147,609 3.0% 4,772,728

Audiovisual repertoire 2,632,446 78,974 3.0% 2,553,472

Theatre repertoire 911,957 27,358 3.0% 884,599

Opera repertoire 234,131 7,024 3.0% 227,107

Literary works repertoire 342,575 10,277 3.0% 332,298

Visual arts repertoire 1,894,941 56,848 3.0% 1,838,093

Total: 30,305,482 909,161 3.0% 29,396,321

Intersectional collections - From abroad



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2.8 Financial information on the sums due to the right holders: distribution activity

In the year 2014, SIAE’s Sections distributed to right holders 462,205,551 €, through periodic and extraordinary distribution activities (with a different timing for each Section (three-month, four-month, half year and year distributions).

WHOLE REPERTOIRE S S

MULTIMEDIAL (PANEUROPEAN) T T T T

DOR (*) WHOLE REPERTOIRE T T A T T A

OPERA WHOLE REPERTOIRE Q Q Q

CINEMA WHOLE REPERTOIRE S S

WHOLE REPERTOIRE S S

RESALE RIGHT T T T T

REPROGRAPHY A

LENDING RIGHT A

Key: A=yearly; S=six-month period;T=three-month period; trimestrale;Q=four-month period

NOTES

MUSIC

OLAF

For the year 2014 all indicated distributions took place in the terms established by the relevant Section Distribution Schemes.(*) For the DOR Sections the data included in the table do not take into account 12 distributions relevant to advances on commissioned RAI and RTI works, which are

made monthly.

07 08 09 10 11 12

SIAE DISTRIBUTION: FREQUENCY, TYPES AND TIMING

SECTIONS TYPE OF DISTRIBUTIONCalendar

01 02 03 04 05 06



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The following tables summarizes the rights liquidated and paid to the right holders.

RIGHTS ATTRIBUTED IN THE YEAR

Music Section Repertoire - performing rights 305,181,813 - - - - 305,181,813

Music Section Repertoire - mechanical rights 64,566,150 - - - - 64,566,150

DOR Section Repertoire - performing rights - 42,229,974 - - - 42,229,974

DOR Section Repertoire - mechanical rights - 1,299,878 - - - 1,299,878

Opera Section Repertoire - performing rights - - 8,130,235 - - 8,130,235

Opera Section Repertoire - mechanical rights - - 1,441 - - 1,441

Cinema Section - broadcasting and multimedia - - - 20,032,603 - 20,032,603

Cinema Section repertoire - mechanical rights - - - 8,402,097 - 8,402,097

OLAF Section repertoire - Visual arts - - - - 7,294,235 7,294,235

OLAF Section repertoire - Literary works - - - - 5,067,125 5,067,125

TOTAL RIGHTS ATTRIBUTED 369,747,963 43,529,852 8,131,676 28,434,700 12,361,360 462,205,551

RIGHTS PAID IN THE YEAR

BALANCE PAYMENTS 303,597,400 41,933,093 7,381,630 28,430,044 11,757,734 393,099,902

PAYMENTS ON FUTURE ADVANCES 65,620,905 1,597,163 21,980 123,152 30,731 67,393,931

RECTIFICATIONS ON FUTURE ADVANCES 1,721,201

TOTAL RIGHTS PAID 370,939,506 43,530,256 7,403,610 28,553,196 11,788,465 462,215,034

RIGHTS LIQUIDATED AND PAID TO THE RIGHT HOLDERS

MUSIC DOR OPERA CINEMA OLAF SIAE TOTAL

Amounts to be distributed, updated as of December 31, 2014, for a total of € 696,929,557, are detailed by Section, type of right and process in the graph below.



37

NET BALANCE AS OF DECEMBER 31, 2014 534,173,166 68,972,594 52,615,313 8,326,165 32,842,319 696,929,557

CREDITS VIS-A-VIS MEMBERS (Advances and debits for various rights) 65,620,905 123,152 1,597,163 21,98 30,731 67,393,931

GROSS BALANCE AS OF DECEMBER 31, 2014 599,794,071 69,095,746 54,212,476 8,348,145 32,873,050 764,323,488

Consisting of:

RIGHTS PENDING ANALYTICAL DISTRIBUTION 427,371,998 19,654,567 42,530,820 5,999,176 11,645,189 507,201,750

Rights collected during the financial year 349,737,792 15,635,046 25,962,308 3,150,936 9,685,054 404,171,136

Past rights pending consolidation 77,634,206 4,019,521 16,568,512 2,848,240 1,960,135 103,030,614

RIGHTS TO BE DISTRIBUTED IN A SUPPLEMENTARY DISTRIBUTION 135,580,320 38,988,864 7,858,163 1,633,081 12,976,625 197,037,053

Past rights already distributed but not attributed, to be furtherly

processed and/or supplementarily distributed starting from the following

year

67,924,740 6,513,118 0 0 0 74,437,858

Suspended rights (for lacking of reports, irregular registration forms and

so on), to be furtherly processed and/or supplementarily distributed by

deliberation of the Management Committee

67,655,580 32,475,746 7,858,163 1,633,081 12,976,625 122,599,195

DISTRIBUTED RIGHTS PENDING ATTRIBUTION 35,291,270 10,452,315 2,829,198 316 8,251,236 57,139,779

Rights not attributed lacking identifying elements (such as lack of

registration of used works, non-identified works or authors) to be finalized23,394,656 6,024,771 0 0 4,958,607 34,378,034

Rights attibuted to right holders but not payable (e.g. irregular

successions, transfers of repertoire, cancelled members, wrong

payment systems, residents abroad)

11,896,614 4,427,544 2,829,198 315,760 3,292,629 22,761,745

GUARANTEE FUND 1,550,483 0 994,295 400,128 0 2,944,906

SIAETABLE SHOWING AMOUNTS TO BE DISTRIBUTED MUSIC CINEMA DOR OPERA OLAF

The rights pending distribution increased by about 3% (16.8 million €) as compared with 2013, due to higher private copying remuneration attributed to the Sections.

Distributed rights non-identified or suspended decreased by 3% (about 6 million €). This trend shows the activity, which has been intensified over the last years, carried on in order to identification and/or attribution to the right holders, also through supplementary distributions.



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2.9 Relationships with foreign authors’ societies

In the year 2014, S.I.A.E. realized a financial net balance (ref. Balance of Payments 2014) with foreign authors’ societies registering a negative balance of 58,909,101.

The above balance was due to collections (net of commissions deducted by the foreign authors’ societies) of 30,305,482 €, which were lower than the relevant payments, net of SIAE’s commissions, amounting to 89,194,802 in total (these payments are considered without taking into account Italian taxes in force of reciprocity of actual financial flows).

Section Collections Payments Balance

OLAF 2,235,978 (2,871,767) (635,789)

DOR 893,714 (476,595) 417,119

OPERA 234,131 (1,027,211) (793,080)

CINEMA 2,632,446 (9,379,618) (6,747,172)

MUSIC 24,289,432 (75,439,611) (51,150,179)

DIRECT ADMINISTR. 19,781 - -

Total 30,305,482 (89,194,802) (58,909,101)

Foreign Societies – Collections and Payments



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The following chart shows the financial flows by geographic areas.

Each foreign society transfer the rights net of its commissions. On collections from abroad S.I.A.E. deducts a 3% commission (see paragraph 2.7, Section VIIa, above).



40

Sections’ flows from and to abroad:



41

2.10 Cultural and social activities

As already said, S.I.A.E. does not operate any deduction for social, cultural and educational

purposes (see paragraph 2.2 above).

This said, “….the Society provides funding, scholarships and other benefits, even to non-members,

for the purposes of promoting worthy initiatives” (art. 2 of SIAE’s Statutes) for the promotion of

author’s right.

Resources allocated to said activities, besides others deriving from operating surplus (art. 2 of the Statutes) are charged to the SIAE’s budget.

The year 2014 was characterized by a development of the activities supporting the Italian

artistic and cultural heritage through “supporting ideas”, “right to creativity”, acknowledgement to

“committed authors” and the participation in socially relevant projects.

The events have been quite a number; the main ones are listed in the table below.

VENICE "DAYS OF THE AUTHORS" 85,000 S.I.A.E. PER GENOVA 600,000

C02 PROJECT 75,000 GASLINI ONLUS 90,000

T°NO'HMA SPACE 55,000 TELETHON MARATHON 30,000

THE JAZZ HOME 50,000 BAMBINO GESU' HOSPITAL 22,603

A STRIP OF FERTILE LAND 40,000 MEYER ONLUS CHILDREN'S HOSPITAL 20,000

39THE FESTIVAL OF THE WRITERS' SONGS 40,000 SUPPORT TO FABRIZIO PINNA 15,498

THE STAGE OF LEGALITY 40,000 ROMA INSIEME ASSOCIATION 15,036

LESSONS FROM AUTHORS AND "GENOVA PER VOI" 30,000 MARCO CAVALLO THE FILM PROJECT 10,000

THE NORTHERN WIND 30,000 EXODUS ONLUS FUNDATION 5,000

MASTER SCHOLARSHIPS 1ST LEVEL DISC. PROD. & COMP. 30,000 MARCO BERRY ONLUS 5,000

EXPERIMENTAL CENTRE FOR CINEMA FUNDATION 25,000 PIEVE DI SOLIGO MUNICIPALITY FLOOD IN MOLINETTO 5,000

TEATRO ALLA SCALA ACADEMY 20,000 818,136PUBLIC SCHOOLS IN MILAN 20,000

2014 DRAMA AWARD 20,000

EMCA "LET'S RESPECT CREATIVITY" AND OTHERS 24,000

ANART "IDEONA" AWARD 15,000

SILVIO D'AMICO DRAMA ACADEMY 15,000

MEI FESTIVAL PROMOTION AND ORGANIZATION 10,000

SPOLETO FESTIVAL CREATIVITY AWARD 10,000

"PICCOLO GRANDE CINEMA" FESTIVAL 10,000

CARLO BIXIO AWARD 10,000

"QUARTIERI SPAGNOLI SYMPHONIC ORCHESTRA" PROJECT 10,000

ART IN THE HEART 10,000

PEPPE DELL'ACQUA PROJECT 10,000

SPOLETO FESTIVAL OF THE TWO WORLDS 10,000

PORTRAIT OF A CAPITAL 10,000

"SENZA LUCIO" FILM 10,000

LELIO LUTTAZZI FUNDATION 10,000

PATHOLOGIC THEATRE 10,000

FRANCO CALIFANO TRUST ONLUS 10,000

AREZZO WAVE BAND 10,000

754,000

90.062

1,662,197

S.I.A.E. FOR CULTURE: S.I.A.E. SOCIAL ACTIVITIES:

OTHERS

GENERAL TOTAL

http://forum.wordreference.com/threads/Form-of-bid-acknowledgement.2046246/



42

Moreover, SIAE, by means of a Solidarity Fund, gives aid and assistance members.

The Solidarity Fund – which operates on the basis of a separate accounting – has recently being

deeply restructured.

The new Regulations entered into force on January 1st, 2012, and implemented by the new

Statutes, have been updated on February 21, 2013.

The new rules provide for payments of contributions, which are strictly personal and non-

transferable to anybody.

The Solidarity Fund is fed by the interests on bank accounts belonging to its own separate

accounting, and by the resources that SIAE itself will allocate to the Fund in case of surpluses.

The separate accounting, shown here below, describes contributions, subsidies and scholarships

paid for a total of 936,600 €.



43

Solidarity Fund

ASSETS 2014 2013

Fixed financial assets (securities) 91,200,000 0

Fixed financial assets (credits) 0 9,081,000

Outstanding assets

Credits

- credits vis-à-vis Siae 0 207,402

- other credits 172,614 36,387

Total credits 172,614 243,789

Liquidity

- bank deposits 1,501,008 83,255,728

Total liquidity 1,501,008 83,255,728

Total outstanding assets 1,673,622 83,499,517

Accrued and deferred assets 484,110 207,095

TOTAL ASSETS 93,357,732 92,787,611

LIABILITIES

Contingency Funds

1) fund for benefits 3,202,242 3,202,2422) capital fund 6,108,180 6,108,1803) closed fund for future solidarity benefits 80,698,270 80,389,6724) permanent reserve 2,866,024 2,866,024

Total contingency funds 92,874,716 92,566,118

Debts

- Debts 97,447 129,3840- Debts towards Siae 385,569Total debts 483,016 129,384

Accruals and deferred income 0 92,109

TOTAL LIABILITIES 93,357,732 92,787,611



44

Solidarity Fund

INCOME AND EXPENSES 2014 2013

PRODUCTION VALUE

Other revenues and proceeds 0 0

TOTAL PRODUCTION VALUE (A) 0 0

PRODUCTION COSTS

Management and operational costs 272,143 281,918

Staff 105,527 194,695

Other operational costs - ordinary subsidies for members 936,6 630,582

308,597 1.119.195

Total operational costs 1,245,197 1,749,776

TOTAL PRODUCTION COSTS (B) 1,622,867 2,226,390

DIFFERENCE (A - B) (1,622,867) (2,226,390)

FINANCIAL INCOME AND EXPENSES

Other financial proceeds

- interests receivable on securities 1,084,709 132,998

- other proceeds on securities 0 2,078- interests receivable on bank accounts 947,080 2,673,447

Total other financial proceeds 2,031,789 2,808,523

Interests and other financial charges

interests and other financial charges 81,000 14,548

Total interests and other financial charges 81,000 14,548

TOTAL FINANCIAL PROCEEDS AND CHARGES 1,950,789 2,793,976

144,394 95,058

RESULT BEFORE TAXES 472,316 662,644

Current taxes

- Ires 472,316 662,644

- Irap 0 0

Total income taxes 472,316 662,644

OPERATIONAL RESULT 0 0

- provisions for the fund for solidarity benefits

EXTRAORDINARY PROCEEDS AND CHARGES



45

***

The present Report is approved, on the proposal of the Director General, by the Management

Board on June 15, 2015. It will be updated at least once a year and it is published on the website of

the Society (www.siae.it).

The Vice President

http://www.siae.it/

Documents

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