Annual report (20-F) - Ono

(e)
State Subsidies
Starting in 2001 and as part of each year’s Spanish Program for the Promotion of Technology Innovation
(PROFIT), Cableuropa, S.A.U. obtained subsidies from the Spanish Ministry of Science and Technology
to finance the development of certain technology innovation projects. These subsidies are characterized as
long term loans maturing in five equal annual installments starting on the third anniversary of the grant.
These loans bear no interest and the obligations thereunder are supported by bank guarantees and deposits
(see note 4.c and 17).
These loans expire between 2005 and 2011.
12. Accounts payable
Euro thousand
2004 2003
Commercial Suppliers 105,175 100,283
Taxes and social security (see note 18) 14,419 13,484
Fixed asset suppliers 97,842 61,501
Fixed asset suppliers - related parties (see note 20) 31,698 28,764
Creditors - related parties (see note 20) 420 6,949
Other short term creditors 8,284 9,991
257,838 220,972
13. Other current liabilities
Euro thousand
2004 2003
Cross-currency swaps — 37,507
Other 17,507 13,995
17,507 51,502
Cross-currency swaps
In May 2000 and July 2002, the Group entered into different cross-currency swap agreements to hedge
part of its USD Notes related debt.
The 2000 swap agreements, modified in 2003, were entered to hedge 50% on the original Group’s 2009
USD Notes related debt on April 29, 2004.
In June 2003, in view of the significant appreciation of the euro against the USD, the Group purchased an
euro call / USD put option.
On April 29, 2004 (the expiration date) the 2000 swap agreement and the euro call / USD put option were
cancelled.
In July 2002, the Group entered into a further swap agreement (“the 2002 swap agreement”) to hedge
50% of the coupon payments on the 2011 USD Notes related debt until the first call date thereunder of
February 2006. In June 2004, after the partial cancellation of the Notes performed during 2003 and 2004,
the ineffective part of the hedge was sold to the counterparty banks.
F-22