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<strong>SAVINO</strong> <strong>DEL</strong> <strong>BENE</strong> S.p.A.<br />
DIRECTORS' REPORT ON THE INTERIM FINANCIAL STATEMENTS<br />
FOR THE SIX MONTH PERIOD ENDED 30TH JUNE 2001<br />
This report has been prepared in accordance with the Italian Civil Code and in compliance with<br />
Article No. 81 of Regulation No. 11971 dated 14th May 1999, subsequently modified and amended by<br />
the Consob Resolution No. 12475 of 6th April 2000. The company, taking advantage of the opportunity<br />
offered by paragraph 7, Article No. 81 of the abovementioned Regulation, presents the results for the<br />
six-month period before taxation.<br />
All figures are stated in millions of lire, unless otherwise indicated.<br />
Board of Directors and Board of Statutory Auditors<br />
The Board of Directors was nominated by the Shareholders’ meeting of 29th June 1999 and is made<br />
up of four members whose appointment expires on the approval of the financial statements as of 31st<br />
December 2001.<br />
The Board of Directors is comprised of the following members:<br />
Paolo Nocentini (Chairman), Giuliano Macucci (Vice-chairman), Silvano Brandani (Managing Director)<br />
and Francesca Lapi (Director).<br />
The Company’s Statute nominates the Chairman of the Board of Directors as its legal representative<br />
and grants him the authority and responsibility for all of the Company’s ordinary and extraordinary<br />
administration, with the exception of actions for which the Board of Directors’ authorisation is<br />
specifically required by law and actions of significant economic importance such as the purchase and<br />
sale of real estate, of companies and investments and the granting of guarantees for an amount in<br />
excess of Lire 300 million.<br />
The Vice-chairman’s responsibilities are the same as those attributed to the Chairman, to be carried<br />
out by the Vice-chairman in the Chairman’s absence or impediment.<br />
The Managing Director has the responsibility for the logistic organisation of the Company, the control<br />
and management of the Livorno branch and the administrative co-ordination of relations with the<br />
American subsidiary companies.<br />
The Board of Statutory Auditors was appointed by the same Shareholders’ meeting which nominated<br />
the Board of Directors and their appointment also expires on the approval of the financial statements<br />
as of 31st December 2001. The Board of Statutory Auditors is comprised of the following members:<br />
Annibale Viscomi – Chairman of the Board of Statutory Auditors, Luca Porciani – Acting Auditor,<br />
Roberto Zaffina - Acting Auditor and two supplementary auditors (Franco Vannucchi and Muzio<br />
Clementi).<br />
PERFORMANCE DURING THE PERIOD<br />
1
a) World economy<br />
The first six months of the year 2001 were characterised by the slowing down of the world<br />
economy greater than expected, due principally to the sharp slowing down of economic activity in the<br />
USA, as a result of the reduction in investment, especially in the new information technology sector.<br />
During the second quarter of the year 2001 orders for capital equipment also fell. This reduction in<br />
activity regards the manufacturing sector, not that of services, as may be seen from the employment<br />
statistics and the expectations of purchase managers in both sectors. The increase in the consumer<br />
confidence index in May and June leads us to expect that consumption shall continue to sustain<br />
production activity and that it could benefit in the future from the drop in oil prices.<br />
In addition, the expansion strategy implemented both by the Federal Reserve and by the<br />
American government should produce significant effects as from the final quarter of the year.<br />
The negative performance of the Japanese economy, which registered a drop in GNP during the<br />
first quarter of the year 2001, has not contributed to the growth in international trade. The most recent<br />
forecasts show no change in GNP for the current year and a slight growth during the year 2002.<br />
The slowing down in the world economy has also had negative effects on the emerging<br />
economies. The European economy is also slowing down. During the first quarter of the year the GNP<br />
has risen by 2.4% on an annual basis with respect to the last quarter of the year 2000. The balance of<br />
trade remains positive, due in part to the drop in imports. The maintenance of the level of household<br />
consumption has compensated for the drop in investments, although industrial production has<br />
decreased since the beginning of the year. A growth in GNP of around 2% is expected for the year<br />
2001.<br />
In Italy consumption is stagnant, due to the effects of inflation. The growth in investment has been<br />
very slight, while net foreign demand has not contributed in any way towards the growth in GNP.<br />
Following a positive trend during the first three months of the year, exports have almost come to a halt<br />
during the second quarter. Following the unsatisfactory results registered in April and May, the<br />
estimated figures for June and July show a partial recovery in industrial production. The economic<br />
indicators show better prospects for growth than those of the Euro area as a whole. In terms of our<br />
Group, we would point out that the drastic slowing down in growth registered during the first half of the<br />
year 2001 resulted in a sharp braking in trade throughout the entire world and that international imports<br />
and exports remained stagnant in terms of volume during the first three months of the year, to drop<br />
even further during the second quarter.<br />
Nevertheless, the consolidation of the recovery in the international economic situation during the<br />
year 2002, should result in an increase in imports and exports, the growth in which could well exceed<br />
7.5 %. As regards currency exchange rates, a gradual recovery is expected in the value of the euro<br />
against the US dollar during the second half of the year. The gradual strengthening of the euro should<br />
be confirmed during the year 2002, without however reaching parity with the US dollar: the average<br />
quotation during the coming year should be 0.93 dollars. These figures lead us to expect a lower<br />
growth in European exports towards the USA and a greater growth in trade on other routes.<br />
b) Company performance<br />
The Company and therefore the Savino Del Bene Group, plays a leading role in the international<br />
shipping and transport market in Italy, due both to the size of its international and national network, and<br />
to the quality of the service offered in addition to the economic results achieved. The quality of the<br />
service and the vast range of destinations reached have made us market leader in our sector and have<br />
enabled us to realise positive results in excess of those of our competitors, even in difficult market<br />
situations.<br />
The performance of the first six months of the year 2001 was characterised by a reduction in<br />
income before taxes of approx. 30%, dropping from Lire 14,598 million at 30th June 2000 to Lire<br />
10,183 million at 30th June 2001. Corresponding figures for the first six months of the year 2000 and<br />
for the entire year 2000 are provided for comparative purposes:<br />
(+)Sales revenue<br />
(+) Other income and revenues<br />
Value of production<br />
(-) Goods and services consumed<br />
Added value<br />
Diff. %Diff.<br />
30.06.00 % 31.12.00 % 30.06.01 % 6.01-6.00 6.01-6.00<br />
181,966 99.3% 384,759 99.3% 177,826 99.1% -4,140 -2.28%<br />
1,215 0.7% 2,883 0.7% 1,640 0.9% 425 34.98%<br />
183,181 100% 387,642 100% 179,466 100% -3,715 -2.03%<br />
-154,821 -84.5% -328,536 -84.8% -153,729 -85.7% 1,092 -0.71%<br />
28,360 15.5% 59,106 15.2% 25,737 14.3% -2,623 -9.25%<br />
2
(-) Labour costs<br />
(-) Sundry costs<br />
Gross operating margin<br />
(-) Amortisation, depreciation and write-down<br />
of fixed assets<br />
(-) Write-down of current assets<br />
(-) Provisions for risks<br />
Net operating income<br />
-14,174 -7.7% -28,319 -7.3% -16,057 -8.9% -1,883 13.28%<br />
-427 -0.2% -1,098 -0.3% -618 -0.3% -191 44.73%<br />
13,759 7.5% 29,689 7.7% 9,062 5.0% -4,697 -34.14%<br />
-1,147 -0.6% -3,410 -0.9% -1,762 -1.0% -615 53.62%<br />
-452 -0.2% -1,193 -0.3% -310 -0.2% 142 -31.42%<br />
-327 -0.2% -459 -0.12% -377 -0.2% -50 15.29%<br />
11,833 6.5% 24,627 6.4% 6,613 3.7% -5,220 -44.11%<br />
+ (-) Financial income (expenses) 1,212 0.7% 811 0.2% 2,021 1.1% 809 66.75%<br />
+ Dividends and tax credits 1,639 0.9% 3,608 0.9% 1,539 0.9% -100 -6.10%<br />
(+/-) Adjustments to value of financial assets -7 0.0% -358 -0.09% 0 0.0% 7 -100%<br />
Income before taxes and extraordinary<br />
items 14,677 8.0% 28,688 7.4% 10,173 5.7% -4,504 -30.69%<br />
+ (-) Extraordinary income (expenses) -79 0.0% 1,824 0.5% 10 0.0% 89 -112.%<br />
Income before taxes 14,598 8.0% 30,512 7.9% 10,183 5.7% -4,415 -30.24%<br />
Income tax for the period 0 0.0% -13,468 -3.5% 0 0.0% 0 =<br />
Net income for the period 14,598 8.0% 17,044 4.4% 10,183 5.7% -4,415 -30.24%<br />
During the period the Company recorded sales revenues of Lire 177,826 million, with a decrease<br />
of only 2.28% with respect to the figure for six months ended 30th June 2000, despite the fact that the<br />
company's business, and particularly that regarding the American market, has undergone a significant<br />
reduction in volume. The Company has continued its policy of expanding its direct presence on new<br />
markets and during the first six months of the year 2001 it opened a new office in Padova and another<br />
three offices at Buenos Aires, at Campinas (Brazil) and at Philadelphia (USA). With respect to the first<br />
half of the previous year, the volumes of goods shipped have decreased in the sea shipment sector (-<br />
14.86%) and increased in the air sector (+3.81%), the same applies to revenues, which show a<br />
decrease in the sea shipment sector (-7.78%) and an increase in the air sector (+11.92%). The gross<br />
operating margin has fallen from Lire 13,759 million during the first six months of the year 2000 to Lire<br />
9,062 million during the first six months of the year 2001, representing a decrease of approx. 34% and<br />
the gross operating margin /total sales revenue ratio has fallen from 7.5% to 5%. The decrease in<br />
profitability is due both to the higher incidence of labour costs on revenues, which rose from 7.79% at<br />
30.6.00 to 9.03% at 30.6.01, and to the decrease in turnover per employee, which amounted to Lire<br />
490 million against Lire 551 million as at 30.6.00. Once again the contribution made to the result for the<br />
period from the company's financial management (Lire 3,560 million) was considerable, due to<br />
significant exchange gains and income from equity investments.<br />
As regards the company's performance, the table below shows the following a decrease:<br />
30.06.00 31.12.00 30.06.01<br />
Difference<br />
30.6.2001<br />
-30.6.2000<br />
% Difference<br />
30.6.2001-<br />
30.6.2000<br />
Sales revenue 181,966 384,759 177,826 -4,140 -2.28%<br />
Gross operating margin 13,759 29,689 9,062 -4,697 -34.14%<br />
Net operating income 11,833 24,627 6,613 -5,220 -44.11%<br />
Net income before taxation 14,598 30,512 10,183 -4,415 -30.24%<br />
In particular, the decrease in income has led to a reduction in the principal financial and economic<br />
ratios:<br />
30.06.00 30.06.01<br />
Gross operating margin /Total sales revenue 7.6 5.1<br />
Net operating income / Total sales revenue (ROS) 6.5 3.7<br />
Return on equity (ROE) 21.0 11.8<br />
Return on investments (ROI) 18.2 10.2<br />
Debt ratio (net liquidity/capital invested) 20.1 3.4<br />
The following table shows an analysis of sales revenue by sector, showing the variations that have<br />
taken place with respect to the figures for the year ended 31st December 2000 and the six months<br />
ended 30th June 2000:<br />
3
30.06.00 % 31.12.00 % 30.06.01 %<br />
Difference %Difference<br />
6.01-6.00 6.01-6.00<br />
By sea 111,901 61.50% 234,352 60.91% 103,195 58.03% -8,706 -7.78%<br />
By air 50,970 28.01% 113,007 29.37% 57,044 32.08% 6,074 11.92%<br />
By land 6,890 3.78% 13,144 3.42% 6,103 3.43% -787 -11.42%<br />
Importation and<br />
customs clearing<br />
services 12,007 6.60% 23,806 6.19% 11,240 6.32% -767 -6.39%<br />
Other revenues 198 0.11% 450 0.11% 244 0.14% 46 23.23%<br />
Total 181,966 100% 384,759 100% 177,826 100% -4,140 -2.28%<br />
The following table shows an analysis of the above revenue by geographical area:<br />
30.06.01 %<br />
North America 80,598 45.32%<br />
Central America 637 0.36%<br />
South America 4,027 2.26%<br />
Europe 80,477 45.26%<br />
Africa 269 0.15%<br />
Middle East 2,356 1.32%<br />
Far East 9,336 5.25%<br />
Australia and South Pacific 126 0.08%<br />
Total 177,826 100%<br />
The following table shows the variation in costs with respect to prior periods:<br />
30.06.00 31.12.00 30.06.01<br />
Diff.<br />
6.01-6.00<br />
%Diff.<br />
6.01-6.00<br />
Freight charges 99,764 209,230 98,362 -1,402 -1.41%<br />
Haulage charges 16,796 35,040 15,253 -1,543 -9.19%<br />
Customs charges 6,195 12,887 4,314 -1,881 -30.36%<br />
Cost of haulage, porterage and storage 4,192 8,857 4,008 -184 -4.39%<br />
Cost of insuring goods 350 873 462 112 32.00%<br />
Cost of visas and fees to customs operators 28 91 31 3 10.71%<br />
Agents and correspondents’ fees and charges 18,496 42,034 20,512 2,016 10.90%<br />
Cost of shipping carried out by authorised third<br />
parties 217 455 281 64 29.49%<br />
Other services 6,967 15,210 8,124 1,157 16.61%<br />
Purchase of consumable materials 641 1,430 895 254 39.63%<br />
Leasing and rental charges 1,175 2,429 1,487 312 26.55%<br />
Total costs for goods and services 154,821 328,536 153,729 -1,092 -0.71%<br />
In particular, the utilisation of Group companies in North America for the carrying out of<br />
“brokerage” activities and delivery of goods to their destination, represents the principal reason for the<br />
increase in agents and correspondents’ fees and charges. The decrease in the cost of goods and<br />
services consumed was not sufficient to compensate for the reduction in the volume of sales revenue<br />
realised during the period.<br />
Shipments by sea<br />
Revenues from shipments by sea amount to Lire 103,195 million, against Lire 234,352 million at 31st<br />
December 2000 and Lire 111,901 million at 30th June 2000. The analysis of this revenue by<br />
geographic area is shown in the table below. For the first time the figures are analysed by the<br />
4
geographic area of the customer invoiced for the service. However the percentage analysis of the<br />
revenues by destination area is more or less the same as that shown in the table detailing the<br />
geographical analysis by destination of volumes shipped by sea.<br />
30.06.01 %<br />
North America 59,702 57.85%<br />
Central America 488 0.47%<br />
South America 2,426 2.35%<br />
Europe 36,037 34.92%<br />
Africa 158 0.15%<br />
Middle East 2,224 2.16%<br />
Far East 2,097 2.03%<br />
Australia and South Pacific 63 0.06%<br />
Total 103,195 100%<br />
During the first six months of the year 2001, the drop in the volume of goods shipped by sea (-<br />
14.86%) was only partly matched by the drop in revenues from goods shipped by sea (-7.78%). This is<br />
due principally to an increase in the rates charged to customers.<br />
The reduction in volumes shipped towards the Company's main North American market was<br />
partially compensated for by the increase registered in shipments towards the Far East (+28.6%) which<br />
represents a market with a high potential for future growth.<br />
The following table shows the variation in the volume of goods shipped by sea towards the<br />
following destinations with respect to 30.6.00 and to 31.12.00 (figures expressed in No. of Teus<br />
shipped):<br />
5
30.06.00 % 31.12.00 % 30.06.01 %<br />
Diff.<br />
6.01-6.00<br />
% Diff.<br />
6.01-6.00<br />
North America 22,895 86.18% 44,232 84.99% 18,909 83.59% -3,986 -17.41%<br />
Central America 184 0.69% 466 0.90% 272 1.20% 88 47.83%<br />
South America 721 2.71% 1,630 3.13% 911 4.03% 190 26.35%<br />
Europe 358 1.35% 633 1.22% 231 1.02% -127 -35.47%<br />
Africa 475 1.79% 1,015 1.95% 331 1.46% -144 -30.32%<br />
Middle East 672 2.53% 1,161 2.23% 336 1.49% -336 -50.00%<br />
Far East 1,187 4.47% 2,705 5.20% 1,527 6.75% 340 28.64%<br />
Australia and South<br />
Pacific 76 0.29% 200 0.38% 103 0.46% 27 35.53%<br />
Total 26,568 100% 52,042 100% 22,620 100% -3,948 -14.86%<br />
While North America remains our principal destination, traffic towards Central and South America<br />
and the Far East has increased significantly, thanks to new trade contacts developed by the new<br />
Group companies set up in these areas.<br />
The analysis of Tues shipped by sea from the Company's various branches and offices is shown<br />
in the table below (figures expressed in No. of Teus shipped):<br />
30.06.00 % 31.12.00 % 30.06.01 %<br />
Diff.<br />
6.01-6.00<br />
% Diff.<br />
6.01-6.00<br />
Florence 14,889 56.04% 26,898 51.69% 10,945 48.39% -3,944 -26.49%<br />
Bologna 946 3.56% 1,524 2.93% 431 1.91% -515 -54.44%<br />
Segrate (Mi) 580 2.18% 1,503 2.89% 688 3.04% 108 18.62%<br />
Montecosaro (Mc) 152 0.57% 248 0.48% 113 0.50% -39 -25.66%<br />
Naples 2,583 9.72% 6,204 11.92% 3,098 13.70% 515 19.94%<br />
Pisa 14 0.05% 28 0.05% 26 0.11% 12 85.71%<br />
Prato 210 0.79% 445 0.86% 223 0.99% 13 6.19%<br />
Santacroce Sull'Arno (Pi) 506 1.90% 1,040 2.00% 641 2.83% 135 26.68%<br />
Treviso 3,705 13.95% 7,984 15.34% 3,049 13.48% -656 -17.71%<br />
Verona 641 2.41% 1,316 2.53% 650 2.87% 9 1.40%<br />
Padova 0 0.00% 0 0.00% 591 2.61% 591 =<br />
Vicenza 1,837 6.91% 3,849 7.40% 1,568 6.93% -269 -14.64%<br />
Livorno 505 1.90% 1,003 1.93% 597 2.64% 92 18.22%<br />
Total 26,568 100% 52,042 100% 22,620 100% -3,948 -14.86%<br />
The main decreases relate to the Florence, Bologna, Treviso and Vicenza branches. While, as<br />
regards Florence and Bologna the decrease was due to the abandonment of low value added<br />
customers, the Treviso decrease was due to the negative trends in the specialised product sector in<br />
which the branch operates. Finally, as regards the Vicenza branch, we would point out that the Padova<br />
branch, which became operative during the first quarter of the year 2001, has absorbed part of the<br />
traffic which was previously carried out by the Vicenza branch. The Naples branch has benefited from<br />
the acquisition of new customers by the American affiliated companies, which has led to an increase in<br />
the volume of traffic in the “food” sector.<br />
Shipments by air<br />
Revenues from shipments by air amount to Lire 57,044 million, against Lire 113,007 million at 31st<br />
December 2000 and Lire 50,970 million at 30th June 2000. The following table shows the geographic<br />
analysis of revenue. For the first time the figures are analysed by the geographic area of the customer<br />
invoiced for the service. However the analysis of the revenues by destination area is more or less the<br />
same, in percentage terms, as that shown in the table detailing the geographical analysis by<br />
destination of volumes shipped by air.<br />
6
30.06.01 %<br />
North America 20,220 35.45%<br />
Central America 147 0.26%<br />
South America 1,593 2.79%<br />
Europe 27,639 48.45%<br />
Africa 104 0.18%<br />
Middle East 129 0.23%<br />
Far East 7,150 12.53%<br />
Australia and South Pacific 62 0.11%<br />
Total 57,044 100%<br />
The air sector registered an increase of 3.8% in the volume of goods transported. This result is<br />
extremely positive, given that the market as a whole registered a decrease of more than 10% during<br />
the first quarter of the current year. The following table shows the variations in the volumes shipped by<br />
air with respect to 30.6.00 and to 31.12.00 (figures expressed in thousand of Kg.) :<br />
30.06.00 % 31.12.00 % 30.06.01 %<br />
Diff.<br />
6.01- 6.00<br />
% Diff.<br />
6.01-6.00<br />
North America 6,438 69.80% 13,534 68.70% 6,447 67.33% 9 0.14%<br />
Central America 52 0.56% 176 0.89% 57 0.60% 5 9.62%<br />
South America 239 2.59% 536 2.72% 361 3.77% 122 51.05%<br />
Europe 64 0.69% 157 0.80% 72 0.75% 8 12.50%<br />
Africa 88 0.95% 181 0.92% 90 0.94% 2 2.27%<br />
Middle East 98 1.06% 213 1.08% 273 2.85% 175 178.57%<br />
Far East 2,212 23.98% 4,853 24.63% 2,018 21.08% -194 -8.77%<br />
Australia and<br />
South Pacific 33 0.36% 50 0.25% 257 2.68% 224 678.79%<br />
Total 9,224 100% 19,700 100% 9,575 100% 351 3.81%<br />
The analysis of the quantities shipped by air by point of despatch, and detailed in the table below,<br />
shows a consolidation of the quantities shipped in the previous year: the principal variations, both<br />
positive and negative, are linked to the quantities shipped by our customers, given that no significant<br />
variations took place in our customer base during the period. The table below shows the quantities<br />
shipped by air by point of despatch (figures expressed in thousands of Kg.):<br />
30.06.00 % 31.12.00 % 30.06.01 %<br />
Diff.<br />
6.01-6.00<br />
% Diff.<br />
6.01-6.00<br />
Florence 2,950 31.98% 6,054 30.73% 2,825 29.50% -125 -4.24%<br />
Bologna 0 0.00% 113 0.57% 90 0.94% 90 =<br />
Segrate (Milan) 2,406 26.08% 5,407 27.45% 2,344 24.48% -62 -2.58%<br />
Montecosaro (Mc) 555 6.02% 1,283 6.51% 807 8.43% 252 45.41%<br />
Naples 32 0.35% 62 0.31% 58 0.61% 26 81.25%<br />
Pisa 355 3.85% 732 3.72% 528 5.51% 173 48.73%<br />
Prato 213 2.31% 529 2.69% 305 3.19% 92 43.19%<br />
Santacroce sull'Arno (Pisa) 770 8.35% 1,604 8.14% 694 7.25% -76 -9.87%<br />
Treviso 318 3.45% 759 3.85% 280 2.92% -38 -11.95%<br />
Verona 118 1.28% 256 1.30% 170 1.78% 52 44.07%<br />
Padova 0 0.00% 0 0.00% 91 0.95% 91 =<br />
Vicenza 1,507 16.34% 2,901 14.73% 1,383 14.44% -124 -8.23%<br />
Total 9,224 100% 19,700 100% 9,575 100% 351 3.81%<br />
The Montecosaro office benefited from the favourable trend in footwear exports. Again, we would<br />
point out that the Padova office has absorbed part of the traffic which was previously handled by the<br />
Vicenza office.<br />
Shipments by land<br />
7
Revenues from shipments by land (road haulage) amount to Lire 6,103 million, against Lire<br />
13,144 million at 31st December 2000 and Lire 6,890 million at 30th June 2000. They are analysed by<br />
geographic destination in the table below (figures expressed in millions of lire):<br />
Diff. % Diff.<br />
30.06.2000 31.12.2000 30.06.2001 6.01-6.00 6.01-6.00<br />
North America 0 0 16 16 =<br />
Europe 6,890 13,109 6,087 -803 -11.65%<br />
Middle East 0 35 0 0 =<br />
Total 6,890 13,144 6,103 -787 -11.42%<br />
After a period of growth, this sector registered a decrease in revenue of 11.42% with respect to<br />
the first half of the year 2000. The sector's activity is concentrated mainly in the three offices at Vicenza<br />
(which has absorbed the traffic originated by the Verona branch), Montecosaro and Santa Croce<br />
sull’Arno (which in turn has absorbed a significant part of the traffic which passed through Florence).<br />
Overland shipment is carried out within Europe only and particularly with the Group's Iberian<br />
companies.<br />
The decrease is due to a general reduction in goods shipped overland by customers, and to the<br />
loss for the Vicenza office, of the traffic generated by the Milan office. While the overland transport<br />
sector is considered complementary to the Group's core business and does not enter within the<br />
Group's strategic development and expansion plans, it is still of fundamental importance as it enables<br />
the Savino Del Bene Group to offer its customers a complete and fully integrated transport service. An<br />
analysis of goods transported overland is given below, by point of despatch (thousands of Kg shipped):<br />
30/06/00 % 31/12/00 % 30/06/01 %<br />
Diff.<br />
6/01-6/00<br />
% Diff.<br />
6.01-6.00<br />
Florence 223 1.65% 301 1.19% 0 0.00% -223 -100.00%<br />
Montecosaro (Mc) 4,660 34.53% 7,970 31.64% 4,074 36.89% -586 -12.58%<br />
Santacroce sull'Arno<br />
(Pisa) 3,792 28.10% 7,640 30.33% 3,375 30.56% -417 -11.00%<br />
Verona 0 0.00% 30 0.12% 0 0.00% 0 =<br />
Vicenza 4,820 35.72% 9,248 36.71% 3,596 32.57% -1,224 -25.39%<br />
Total 13,495 100% 25,189 100% 11,045 100% -2,450 -18.15%<br />
Importation and customs clearing activity<br />
Revenues from importation and customs clearing activity amounts to Lire 11,240 million, against Lire<br />
23,806 million at 31st December 2000 and Lire 12,007 million at 30th June 2000 The table below<br />
shows an analysis of revenue by geographical area. For the first time the figures are analysed by the<br />
geographic area of the customer invoiced for the service.<br />
30/06/01 %<br />
North America 549 4.88%<br />
Central America 1 0.01%<br />
South America 2 0.02%<br />
Europe 10,604 94.34%<br />
Africa 7 0.06%<br />
Middle East 0 0.00%<br />
Far East 76 0.68%<br />
Australia and South Pacific 1 0.01%<br />
Total 11,240 100%<br />
The importation business is that which registered the largest growth in volume during the period<br />
(+15,52%) thanks to the acquisition of new customers by the Group's foreign companies with a view to<br />
acquiring significant market shares on the opposite routes from those utilised up until now. The direct<br />
presence of the Group at the destination areas of its routes enables it to guarantee a consistently high<br />
8
quality of service to its customers to and from all of the areas covered by the Group. The presence of<br />
Group companies on foreign markets also serves to gather custom for traffic towards Italy.<br />
Furthermore, the direct traffic between the various foreign companies of the Group is becoming<br />
increasingly important. The most active Italian offices in this sector, in addition obviously to the head<br />
office, are those of Pisa and Segrate. This latter registered the more significant growth, both in<br />
percentage and absolute terms. The principal point of despatch for imports remains North America.<br />
The Company intends to expand this sector even further, particularly if the euro/dollar exchange<br />
rate should lead to a growth in American exports.<br />
The number of import shipments per branch is shown in the table below:<br />
30.06.00 % 31.12.00 % 30.06.01<br />
Differenc<br />
e<br />
% 6.01 -6.00<br />
%Difference<br />
6.01-6.00<br />
Florence 526 21.94% 1,467 27.21% 712 25.71% 186 35.36%<br />
Livorno 0 0.00% 58 1.08% 35 1.26% 35 =<br />
Segrate (Milan) 286 11.93% 690 12.80% 651 23.51% 365 127.62%<br />
Montecosaro (Mc) 202 8.43% 464 8.61% 239 8.63% 37 18.32%<br />
Naples 149 6.22% 71 1.32% 69 2.49% -80 -53.69%<br />
Pisa 624 26.03% 975 18.09% 543 19.61% -81 -12.98%<br />
Santacroce sull'Arno<br />
(Pisa) 243 10.14% 487 9.03% 212 7.66% -31 -12.76%<br />
Treviso 0 0.00% 485 9.00% 0 0.00% 0 =<br />
Verona 18 0.75% 47 0.87% 28 1.01% 10 55.56%<br />
Vicenza 349 14.56% 647 12.00% 280 10.11% -69 -19.77%<br />
Total 2,397 100% 5,391 100% 2,769 100% 372 15.52%<br />
Investments<br />
The Company carried out the following investments during the period:<br />
a) intangible fixed assets: costs (Lire 5 million) for changes to the Company's Statute relative to the<br />
increase in share capital from Euro 18,917,600 to Euro 19,000,800 resolved by the Board of<br />
Directors on 30th March 2001 and carried out by means of the utilisation of the reserve for<br />
employee profit sharing. Other investments in intangible fixed assets regarded the implementation<br />
of existing programmes and the acquisition for licenses for the use of software for Lire 7 million<br />
and the cost of improvements to leased assets for Lire 155 million. In addition, advance payments<br />
were made to suppliers for Lire 34 million improvements to leased buildings.<br />
b) tangible fixed assets: the principal investments regarded improvements to the Company's<br />
buildings for Lire124 million, purchases of equipment for Lire 215 million and of other assets for<br />
Lire 1,348 million including mainly purchases of electronic machinery (Lire 755 million) and motor<br />
vehicles (Lire 356 million). Lastly, advance payments were made to suppliers for Lire 227 million<br />
relative to a ground lease for a period of 30 years on a building situated in the dockland district of<br />
Genoa (Lire 182 million) and for other improvements to the Company's buildings (Lire 40 million)<br />
and for purchases of equipment (Lire 5 million).<br />
c) financial fixed assets: the acquisition of an equity investment of 51% of the share capital of the<br />
company Leonardi e C. S.p.A for Lire 8,262 million; the underwriting and payment of the increase<br />
in the share capital of the company Tavoni Arimar S.p.A. for Lire 580 million; the payment of Lire<br />
530 million to reintegrate the losses sustained by the company Cavallino S.r.l.; the non-interest<br />
bearing advance payment of Lire 6,000 million for future increases in share capital of the company<br />
Savino Del Bene Internationale S.A. utilising an interest bearing loan already existing in the<br />
financial statements as at 31.12.00.<br />
Equity and financial situation<br />
The reclassified balance sheet as at 30th June 2001 shows the following situation:<br />
9
30.06.00 31.12.00 30.06.01<br />
Diff.<br />
6.01-6.00<br />
% Diff.<br />
6.01-6.00<br />
A FIXED ASSETS<br />
Intangible fixed assets 907 785 823 -84 -9.26%<br />
Tangible fixed assets 13,386 26,811 27,124 13,738 102.63%<br />
Financial fixed assets 25,497 25,199 34,136 8,639 33.88%<br />
Total fixed assets 39,790 52,795 62,083 22,293 56.03%<br />
B NET WORKING CAPITAL<br />
Trade receivables 89,191 102,158 103,462 14,271 16.00%<br />
Other assets 8,892 14,679 10,206 1,314 14.78%<br />
Trade payables -55,542 -62,456 -54,005 1,537 -2.77%<br />
Provisions for risks and charges -2,418 -2,706 -2,897 -479 19.81%<br />
Other liabilities -13,225 -23,859 -25,368 -12,143 91.82%<br />
Total net working capital<br />
CAPITAL INVESTED LESS OPERATING<br />
26,898 27,816 31,398 4,500 16.73%<br />
C LIABILITIES (A+B) 66,688 80,611 93,481 26,793 40.18%<br />
D EMPLOYEE TERMINATION INDEMNITY -8,772 -9,323 -9,968 -1,196 13.63%<br />
E NET CAPITAL INVESTED (C-D)<br />
Financed by :<br />
57,916 71,288 83,513 25,597 44.20%<br />
F SHAREHOLDERS' EQUITY<br />
NET FINANCIAL INDEBTEDNESS<br />
69,579 83,477 86,395 16,816 24.17%<br />
G (LIQUIDITY)<br />
Medium and long term financial debt 0 0 0 0 0.00%<br />
Long term financial receivables<br />
Medium and long term net financial indebtedness<br />
0 0 0 0 0.00%<br />
(liquidity) 0 0 0 0 0,00%<br />
Short term financial debt 10,534 15,094 13,808 3,274 31.08%<br />
Liquidity and short term receivables -22,197 -27,283 -16,690 5,507 -24.81%<br />
Short term net financial indebtedness (liquidity) -11,663 -12,189 -2,882 8,781 -75.29%<br />
Total net financial indebtedness (liquidity) -11,663 -12,189 -2,882 8,781 -75.29%<br />
H TOTAL SOURCES OF FINANCE (F+G) 57,916 71,288 83,513 25,597 44.20%<br />
The net financial position at 30.6.2001 has fallen from a net liquidity of Lire 11,663 million at 30th<br />
June 2000 to Lire 2,882 million at del 30th June 2001 due to the significant investments carried out,<br />
and particularly in equity investments in companies operating in the transport and shipping sector.<br />
In order to give further detail of the movements in net working capital a statement of cash flows for<br />
the Company as at 30th June 2001 is shown as an appendix to this report. This statement shows that<br />
the Company's operations have generated funds for Lire 13,306 million, against Lire 23,074 million at<br />
31st December 2000 and Lire 16,397 million at 30th June 2000 against an application of funds of Lire<br />
25,332 million at 30.6.01 and Lire 10,505 million at 30.6.00, due mainly to increases in equity<br />
investments (Lire15, 374 million) and to the payment of dividends (Lire 7,265 million against Lire 4,885<br />
million at 30.6.00).<br />
Transactions with Subsidiary, Associated and Parent Companies and Other Related Parties<br />
during the period the Company Savino Del Bene S.p.A carried out transactions with subsidiary and<br />
associated companies as part of its normal business activities and at normal market conditions. As<br />
regards transactions between other Group companies and other related parties, reference should be<br />
made to the Directors’ Report on the interim consolidated financial statements.<br />
As regards the company Savino Del Bene S.p.A. we would point out that during the period<br />
1.1.2001-30.6.2001 no transactions took place with other related parties. Detail of the results of the<br />
principal subsidiary companies listed in Appendix No. 1 to the consolidated interim financial statements<br />
as at 30.6.2001 is given below:<br />
10
• Savino Del Bene USA Inc. (New York): this company, which is held indirectly through Savino Del<br />
Bene Finanziaria S.a. carries out the function of a sub-holding of the American subsidiary<br />
companies and of administrative and IT co-ordination and support for the American subsidiaries'<br />
operations with the aim of developing and expanding export traffic from the USA towards Europe<br />
and the rest of the world. The company had an average of No. 5 employees compared to the No.<br />
4 employees as at 30.6.00. The company recorded a loss of Lire 25 million against a net income of<br />
Lire 91 million at 30.6.00.<br />
• Savino Del Bene Inc. (New York): this subsidiary company recorded a loss of Lire 261 million for<br />
the first six months of the year 2001, compared to a net income of Lire 282 million in the first six<br />
months of the year 2000. The company employed an average of No. 32 employees during the<br />
period, compared to No. 26 during the first half of the year 2000. Total sales revenue has increased<br />
by 4.8%, rising from US$ 3,728 thousand to US$ 3,907 thousand at 30.6.01. Revenues from air<br />
imports have remained relatively stable (US$ 1,087 thousand). Revenues from sea imports have<br />
increased, reaching a total of US$ 1,692 thousand, against US$ 1,201 thousand, while export<br />
revenue has fallen from US$ 1,326 thousand to US$ 1,067 thousand. This loss is due principally to<br />
the increase in labour costs.<br />
• Savino Del Bene International Freight Forward Inc. (Chicago): this subsidiary company<br />
recorded a loss for the period of Lire 246 million, against a net income of Lire 274 million at<br />
30.6.00. The company employed an average of No. 31 employees during the period, compared to<br />
No. 24 during the first half of the year 2000. Turnover has increased by 11%, to arrive at US$<br />
2,932 thousand. Import activity accounts for approx. 72.5% of total sales revenue and has<br />
increased by 12% during the period. Export activity shows an increase of 68% for air traffic and a<br />
decrease of 14% for goods shipped by sea. The company has completed the transfer to a new<br />
warehouse close to the Chicago airport and railport and expects to see the benefits thereof in<br />
terms of increased revenues during the second half of the year.<br />
• Savino Del Bene Inc. (Los Angeles): during the first six months of the year 2001 this subsidiary<br />
company recorded a loss of Lire 637 million against a net income of Lire 32 million for the<br />
corresponding period of the previous year. The company employed an average of No. 22<br />
employees during the period. The company operates through two separate offices, one in Los<br />
Angeles and the other in San Francisco. The Los Angeles office realised an increase in turnover of<br />
28% to reach a total turnover of US$ 1,022 thousand, due principally to the increase in sea<br />
imports. The San Francisco office registered an increase of 62% in turnover, which amounted to<br />
US$ 745 thousand at 30.06.01. The loss for the period is due to the significant fixed costs relating<br />
to personnel and rental of premises. The company expects to increase the volume of its imports<br />
from Europe and to develop and expand new routes from Turkey, Brazil and China. The company<br />
is currently extending the offer of customs brokerage services to all of its customers.<br />
• Savino Del Bene (Georgia) Inc.: at 30th June 2001 this subsidiary recorded a loss of Lire 40<br />
million against a net income of Lire 74 million for the corresponding period of the previous year.<br />
The company employed an average of No. 9 employees during the period compared to No. 6 at<br />
30.6.00. The company registered an increase in turnover of 11.9%, for a total turnover of US$<br />
686.565, thanks to the increase in imports by sea and in exports by both sea and by air.<br />
• Savino Del Bene (Texas) Inc.: this company recorded a loss of Lire 585 million for the first six<br />
months of the year 2001, against a net income of Lire 19 million for the corresponding period of the<br />
previous year. The company employed an average of No. 21 employees during the period<br />
compared to No. 22 during the first half of the year 2000. The loss for the period is due to a drop in<br />
sales revenue, which fell by 14%, due essentially to a drop in imports by customers as a result of<br />
the slowing down of the US economy. In fact, while both sea and air imports show a decline, the<br />
company registered an increase of 69% in sea exports, thanks to the acquisition of new customers<br />
who export to Europe, Turkey and China. The company's customers expect to increase their<br />
activities during the second part of the year, and therefore we can reasonably expect to see a<br />
better result for the second half of the year than for the first half.<br />
• Savino Del Bene Inc. Charlotte: this subsidiary company recorded a loss for the period of Lire<br />
174 million against a loss of Lire 64 million at 30.6.00. The company employed an average of No. 3<br />
11
employees during the period. Turnover for the period amounted to US$ 223 thousand, against US$<br />
243 thousand for the period ended 30.6.00. The company registered an increase of 26% in imports<br />
by sea, which was not sufficient however to compensate for the decrease in imports by air, which<br />
fell by 22%. Air and sea exports have fallen from US$ 28 thousand to US$ 7 thousand.<br />
• Savino Del Bene Inc. (Massachusetts): this subsidiary company recorded a loss of Lire 238<br />
million against a loss of Lire 76 million for the corresponding period of the previous year. The<br />
company employed an average of No. 9 employees during the period, compared to No. 7 during<br />
the first half of the year 2000. Turnover fell by 34%, from US$ 602,344 during the period ended<br />
30.6.00 to US$ 398,326 at 30.6.01; this decrease is due principally to the decrease in imports by<br />
sea (-41%). In general, the acquisition of new customers has forced the company to apply more<br />
competitive rates, which, as can be seen, have led to a decrease in turnover but which have<br />
consolidated the volume of goods shipped.<br />
• Savino Del Bene Inc. Miami: at 30th June 2001 this subsidiary company recorded a loss of Lire<br />
144 million against a loss of Lire 75 million for the corresponding period of the previous year. The<br />
average number of employees during the period amounted to No. 10 compared to No. 9 during the<br />
first half of the year 2000. The company showed an increase in turnover of 144%, due principally to<br />
imports by sea of furniture and masonry materials which rose from US$ 171,044 to US$ 467,631.<br />
The company commenced customs brokerage activities which generated revenues of US$ 108<br />
thousand. Imports by air have increased by 56.9%, rising from US$ 100,218 to US$ 157,263. The<br />
increase in turnover was achieved through the application of competitive shipping rates to<br />
customers which were unable to cover the increase in fixed costs.<br />
• Fashion Distribution Service New Jersey Inc.: this subsidiary company realised a net income for<br />
the period of Lire 309 million, against Lire 370 million for the corresponding period of the previous<br />
year. The company employed an average of No. 20 employees during the period. Total sales<br />
revenues show an increase of 3.2% and amount to US$ 2,705 thousand. The company provides a<br />
whole series of highly advanced logistics services, thanks to its state of the art warehouse, for the<br />
storage, handling and forwarding of goods to their destination. The company uses external<br />
personnel.<br />
• Superb Custom Brokers Inc.: this subsidiary company recorded an income for the period of Lire<br />
8 million, against Lire 12 million at 30.6.00. The company employed an average of No. 18<br />
employees during both the current and the previous period. Turnover amounted to US$ 908,372<br />
against US$ 1,157,379 at 30.6.00. The company operates as a customs broker on behalf of the<br />
American Group companies.<br />
• Savino Del Bene Corp. (Canada): this subsidiary company recorded a loss of Lire 108 million<br />
against a net income of Lire 93 million during the first six months of 2000. The company employed<br />
an average of No. 10 employees during the period. Exports by sea have increased by 30% with<br />
respect to 30.6.00, while exports by air amount to 26,000 kg, representing an increase of 47.6%<br />
with respect to 30.6.00. Turnover amounted to Lire 1,332 million.<br />
• Savino Del Bene S.l. (Spain) : this subsidiary company recorded a net income of Lire 799 million<br />
at 30.6.01, against Lire 704 million for the corresponding period of the previous year. Turnover has<br />
decreased by approx. 5.4%, due to the fall in exports towards North America. Revenues from<br />
shipments by sea, which represent 63.8% of total revenues, fell by 5% and amounted to Euro<br />
5,039 thousand. Revenues from air traffic fell even further (-19%), after the significant growth<br />
registered therein during the first six months of the year 2000, and amount to Euro 1,021 thousand.<br />
By contrast, revenues from overland transport relative to both imports and exports to and from Italy<br />
have risen by 3.13% to reach Euro 1,853 thousand, even if this increase is due to the increase in<br />
rates charged to customers. In addition to its Alicante head office, the company has another two<br />
offices, one in Madrid and the other in Barcelona; this latter was opened in June 2001. The<br />
company employed an average of No. 37 employees during the period.<br />
• Savino Del Bene Ltd. (UK): this subsidiary company realised a net income of Lire 105 million at<br />
30.6.2001 against approx. Lire 31 million for the corresponding period of the previous year. At the<br />
end of April 2001, the company sold its road haulage business segment and now concentrates its<br />
activities in the international sea and air shipping sector. Turnover for the period has fallen by<br />
20.8%, mainly as a result of the abovementioned sale of the road haulage business segment. The<br />
12
most significant reduction regarded the traffic towards North America while traffic towards the Far<br />
East showed an increase of 10%. Following the change in activity, this company shows significant<br />
potential for growth, particularly for imports from Asia and America.<br />
• Savino Del Bene L.da. (Portugal): this subsidiary company closed the period with a net income of<br />
Lire 67 million against Lire 236 million for the corresponding period of the previous year. The<br />
company employed an average of No. 37 employees during the period. Turnover increased by a<br />
total of 1%, reaching Euro 1,786 thousand, however we would point out that the increase is due<br />
entirely to the growth in revenues from shipments by sea (Euro 1,058 thousand) as a result of the<br />
increase in rates charged to customers. All of the other sectors registered a decrease, both in<br />
terms of revenue and in terms of volumes shipped, principally as a result of the drop in exports.<br />
During the year 2001 the company expects to attend various trade fairs and to further develop its<br />
direct contacts on the principal destinations of goods shipped in order to acquire new customers.<br />
• Savino Del Bene France S.a.: this company recorded a loss for the period of Lire 267 million<br />
against a loss of Lire 74 million for the first six months of the year 2000. Turnover amounted to FF.<br />
22,419 thousand against FF. 16,769 thousand at 30.6.00. Revenues from exports by air have<br />
grown from FF. 9,356 thousand to FF. 10,553 thousand, while revenues from shipments by sea<br />
amounted to FF. 9,296 thousand, against FF. 5,387 thousand. The company employed an average<br />
of No. 21 employees during the period.<br />
• Savino Del Bene China Ltd.: this company recorded a net income for the period of Lire 139<br />
million against Lire 443 million at 30.6.00. Turnover fell by 7%, due to the loss of an important<br />
customer in the air sector, although it subsequently acquired two new major customers during the<br />
period and opened up a new shipping route to and from Mexico. The average number of<br />
employees during the period amounted to No. 17, compared to No. 12 during the corresponding<br />
period of the previous year. During the period the company extended its warehouse. Revenues<br />
from air traffic (imports and exports) amounted to HK$10,796 thousand, representing a decrease<br />
of 15.7%. Revenues from shipments by sea increased by 29% to reach a total of HK$3,926<br />
thousand. The company expects to see a further significant increase in shipments by sea during<br />
the second half of the year 2001, while it does not expect to be able to repeat the excellent results<br />
achieved during the year 2000 for the air traffic sector.<br />
• Hani Transport Co. Ltd (Korea): this subsidiary company recorded a loss of Lire 26 million for the<br />
first six months of the year 2001, against Lire 87 million for the corresponding period of the<br />
previous year. The average number of employees during the period amounted to No. 21. During<br />
the period turnover decreased by 11.6% due to the drop in revenues from air traffic, which fell from<br />
Won 457,884 thousand to Won 404,793 thousand. Revenues from exports by air (Won 78,817<br />
thousand) fell by 471% due to the negative performance of the Korean economy. The volume of<br />
goods shipped in this sector has fallen by 56.4%. The company is expanding the sea shipping<br />
sector and has acquired new customers who export to South Africa and, from the middle of June<br />
onwards, also imports from Vietnam which should guarantee an average of No. 30 Teus per<br />
month. The principal types of product shipped are machinery (overland) and textile and electronic<br />
products.<br />
• Savino Del Bene Japan Co. Ltd. (Tokyo): this subsidiary company recorded a loss of Lire 91<br />
million against Lire 511 million at 30.6.00. Turnover amounted to Yen 59,694,747. The company<br />
operates from two offices (Tokyo and Osaka) and the result for the period was influenced by the<br />
loss of important European customers and by the fierce competition from other operators which<br />
forced the company to reduce the rates it charges to customers in order to maintain business.<br />
• Savino Del Bene Nakliyati Ltd (Turkey): this subsidiary company recorded a loss for the period<br />
of Lire 6 million against a loss of Lire 9 million for the corresponding period of the previous year.<br />
average number of employees during the period amounted to No. 13, compared to No. 10 during<br />
the period ended 30.6.00. During the period the company shipped No. 382 Teus by sea, compared<br />
to No. 427 Teus in the period ended 30.6.00, while the cubic metres of groupage amounted to 90,<br />
compared to 29 at 30.6.00. The volume of goods exported by air amounted to 25,744 kg,<br />
compared to 7,793 kg at 30.6.00. The increase in exports was helped by the devaluation of the<br />
Turkish Lira (-94% with respect to the US dollar). The company has exploited the synergies offered<br />
by the Savino Del Bene Group in order to expand its own traffic.<br />
13
• S.D.B. Finanziaria S.a. (Luxembourg) : this company channels loan finance to the Group's<br />
operating companies in addition to providing administrative and tax consultancy and data gathering<br />
services to many of the Group companies included in the consolidation area. During the first six<br />
months of the year 2001 the company realised an income of Lire 435 million against Lire 206<br />
million for the corresponding period of the year 2000.<br />
• Savino Del Bene Internationale Luxembourg S.a..: this company realised a net income for the<br />
period of Lire 992 million, against a net income of Lire 1,197 million for the period ended 30.6.00.<br />
The company manages the financial resources of and provides treasury services to the entire<br />
Savino Del Bene Group.<br />
The Italian subsidiary and associated companies showed the following results for the six months ended<br />
30th June 2001:<br />
• General Noli S.p.A.: this subsidiary company realised a net income of Lire 3,731 million against a<br />
net income of Lire 3,256 million for the corresponding period of the previous year. The average<br />
number of employees during the period amounted to No. 37 against No. 25 during the first six<br />
months of the year 2000. Total sales revenue amounted to Lire 44,714 million, representing an<br />
increase of 36.4% with respect to the corresponding period of the previous year. This increase is<br />
due mainly to revenues from goods shipped by sea, which rose from Lire 31,455 million at 30.6.00<br />
to Lire 43,696 million at 30.6.01. In terms of the volume, goods shipped by sea have increased by<br />
approx. 20% arriving at No. 9,374 Teus shipped. Revenues from air traffic have decreased by<br />
approx. 27%, falling from Lire 1,239 million to Lire 897 million. More significant in terms of quantity<br />
was the decrease in goods shipped by air, which fell from 418 thousand kg. at 30.6.00 to 252<br />
thousand kg for the current period. The company's principal markets are North and Central<br />
America. The main traffic sectors in which the company operates are the transport of ceramic tiles<br />
and foodstuffs. During the period the company set up a new company in Brazil in order to develop<br />
and expand traffic on this route. The company also operates through foreign subsidiary companies<br />
in New York, Toronto and Valencia, which recorded positive results for the period. In particular, we<br />
would point out the result achieved by the subsidiary General Noli S.L. Spain in Valencia, which<br />
realised a net income for the period of Lire 862 million and which achieved an increase in turnover<br />
of 53.9%, rising from Euro 2,579,015 to Euro 3,969,092 at 30.6.2000. The company carries out<br />
sea exports and registered an increase of 49.69% in terms of number of TEUS shipped, which<br />
rose from No. 2,419 to No. 3,621. The company's principal destinations are North America (75%)<br />
and Canada (20%).<br />
• Leonardi e C. S.p.a.: this subsidiary company was acquired during the period and realised a net<br />
income of Lire 3,739 million at 30th June 2001 against an income before tax of Lire 2,798 million at<br />
31.12.00. The company carries out international shipping by sea and air; the company's principal<br />
markets are North America, the Middle East and the Far East. During the period the company<br />
employed an average of No. 49 employees. Revenues from shipments by sea amount to Lire<br />
55,701 million against Lire 114,065 million for the entire year 2000, for a total volume shipped of<br />
424 thousand kg. Revenues from air traffic amount to Lire 1,654 million against Lire 3,682 million<br />
at 31.12.2000. During the period the company shipped a total of No. 13,854 Teus.<br />
• Savitransport S.p.a.: this subsidiary company realised a net income of Lire 1,606 million for the<br />
first six months of the year 2001, compared to Lire 429 million for the first six months of the year<br />
2000. The average number of employees during the period amounted to No. 47, against No. 42<br />
during the first half of the year 2000. During the period the company recorded an increase of more<br />
than 34% in air traffic, shipping Kg 1,971 thousand against Kg 1,466 thousand at 30.6.00.<br />
Revenues from air traffic rose from Lire 8,949 million at 30.6.00 to Lire 12,575 million, representing<br />
an increase of 40.5%. The routes which saw the most significant increases were those towards<br />
North America (kg 1,805 thousand, an increase of 33%), the Far East (Kg 104 thousand, an<br />
increase of 100%) and Australia and the South Pacific (Kg 54 thousand, an increase of 94%).<br />
Shipments by sea fell from No. 2,612 Teus shipped at 30.6.00 to No. a 2,110 Teus shipped at<br />
30.6.01, while turnover has increased, rising from Lire 5,576 million to Lire 8,014 million, due<br />
principally to the decrease in “porto assegnato” traffic and the increase in “prepaid” traffic. Import<br />
activity shows a decrease in the number of imports handled, which fell from 511 thousand at<br />
30.6.00 to 321 thousand at 30.6.01 The company operates in Italy through its subsidiary company<br />
(51%) Savitransport Triveneto S.r.l. which realised an income for the period of Lire 83 million,<br />
14
against Lire 33 million for the period ended 30.6.00, and a turnover of Lire 3,674 million against<br />
Lire 2,474 million for the first six months of the year 2000. The company also holds investments in<br />
two American companies, with head offices in Chicago and New York, and which recorded profits<br />
for the period of Lire 113 million and Lire 169 million respectively.<br />
• Albatrans S.p.a.: this subsidiary company realised a net income of Lire 1,377 million, against Lire<br />
1,032 million during the first six months of the year 2000. Turnover has risen from Lire 15,123<br />
million to Lire 21,864 million, representing an increase of over 44%. The average number of<br />
employees during the period amounted to No. 23, compared to No. 21 during the first half of the<br />
year 2000. During the period the company saw a significant increase in shipments by air, which<br />
amounted to 1,659 thousand kg, an increase of 461 thousand kg with respect to the first six<br />
months of the year 2000. thousand. Revenue from shipments by air has risen from Lire 7,262<br />
million to Lire 10,725 million, representing an increase of over 47%. Shipments by sea have<br />
decreased by approx. 6% in terms of the number of Teus shipped, which fell from No. 3,489 at<br />
30.6.00 to No. 3,280 at 30.6.01. Revenue from shipments by sea have increased however, rising<br />
from Lire 7,703 million to Lire 10,720 million. The company controls an American company with<br />
head offices in New York which recorded a loss of Lire 438 million for the period. The company<br />
also controls another two European companies, both of which recorded positive results for the<br />
period.<br />
• Fashion Transport S.r.l.: this subsidiary company realised a net income of Lire 189 million,<br />
against a loss of Lire 85 million at 30.6.00. The average number of employees during the period<br />
amounted to No. 12, compared to No. 15 during the period ended 30.6.00. Revenues from<br />
shipments by air have increased by Lire 607 million, rising from Lire 3,636 million at 30.6.00 to Lire<br />
4,243 million, while the volume shipped shows an increase of approx. 20% with a total of Kg.<br />
363,656 shipped during the period. The company managed to increase the rates charged to<br />
several important customers and also obtained more favourable freight charges from air carriers.<br />
The main destination areas are North and South America. Revenues from road haulage within<br />
Europe registered an increase of 45.7%, rising from Lire 498 million to Lire 726 million. This<br />
increase was due to a new agreement with new correspondents on the Iberian Peninsula. Revenue<br />
from shipments by sea has decreased by approx. 19%, falling from Lire 193 million to Lire 162<br />
million. In actual fact this sector is of marginal importance and is limited to transactions with<br />
customers of the other Savino Del Bene Group companies. The company plans to open its own<br />
office in North America in order to expand traffic to and from that area.<br />
• Tavoni Arimar Spedizioni S.p.a.: this company recorded an income for the period of Lire 92<br />
million, against Lire 443 million for the corresponding period of the previous year. The average<br />
number of employees during the period amounted to No. 34, compared to No. 14 during the period<br />
ended 30th June 2000. During the period the company acquired the shipping and transport<br />
company “Tavoni International” which has No. 9 offices in Central and North Italy; consequently,<br />
the figures regarding both the volumes of goods shipped and the revenue therefrom have been<br />
influenced by this acquisition. Shipments by sea showed an increase of 57.3% in terms f the<br />
number of TEUS shipped, which rose from No. 2,000 to No. 3,146. Revenue from shipments by<br />
sea rose from Lire 7,553 million to Lire 12,020 million. The volume of kilos shipped by air increased<br />
by 279%, rising from 491 thousand kg at 30.6.00 to 1,863 thousand kg at 30.6.01, while revenues<br />
from air shipments rose from Lire 3,881 million to Lire 11,031 million. The acquisition of Tavoni<br />
has led to a shift in the principal traffic routes away from North America towards the Far East<br />
although together these two areas generate more than 50% of the total volume of goods shipped.<br />
• Centro Spedizioni Internazionali S.p.a.: this subsidiary company recorded a loss of Lire 15<br />
million against a net income of Lire 27 million for the first six months of the year 2000. The<br />
average number of employees during the period amounted to No. 16 against No. 17 during the<br />
period ended 30.6.00. Turnover has remained virtually unchanged with respect to the<br />
corresponding period of the previous year and amounted to Lire 3,893 million, despite the closure<br />
of the Santacroce sull’Arno (Pisa) office which had generated a turnover of approx. Lire 600 million<br />
at 30.6.00. Revenues from shipments by sea increased from Lire 306 million Lire 708 million with<br />
No. 316 Teus shipped during the period compared to No. 142 during the period ended 30.6.00.<br />
The loss of an important customer led to a decrease in the volume of goods shipped by air, which<br />
amounted to Kg. 38 thousand against Kg. 85 thousand in the corresponding period of the previous<br />
year. The company's main activity remains that road haulage road haulage, which generated<br />
revenues for Lire 2,323 million against Lire 2,712 million del 30.6.00.<br />
15
• Fiorino Shipping S.r.l. : the company recorded a net income for the period of Lire 428 million<br />
against a net income of Lire 382 million for the corresponding period of the previous year. The<br />
average number of employees during the period amounted to No. 9, against No. 8 at 30.6.00.<br />
Shipments by sea have increased by 35.8% to a total of No. 606 Teus shipped, while revenues<br />
from shipments by sea have fallen by 4.9% to Lire 3,170 million. The volume of goods shipped by<br />
air shows a decrease of 13.5%, falling from 462 thousand kg at 30.6.00 to 400 thousand kg at<br />
30.6.00. Revenues from shipments by air have risen from Lire 2,815 million to Lire 2,829 million.<br />
The principal sectors in which the company operates regard clothing, textiles, chemical products<br />
and leather and furs, and the principal route is represented by North America.<br />
• Novibrama S.r.l. : this subsidiary company recorded a net income of Lire 49 million, against Lire<br />
81 million for the corresponding period of the previous year. The average number of employees<br />
during the period amounted to No. 7, unchanged with respect to 30.6.00. The company carries out<br />
road haulage services and plays a strategic role within the Savino Del Bene Group. Turnover for<br />
the period amounted to Lire 4,000 million against Lire 5,941 million at 30.6.00.<br />
• Lulli S.r.l. : this subsidiary company realised an income of Lire 259 million, against Lire 340 million<br />
for the period ended 30.6.00. The company provides computer consultancy and data processing<br />
services. The average number of employees rose to No. 15, against No. 8 employees at 30.6.00.<br />
Turnover for the period amounted to Lire 3,007 million, against Lire 2,855 million for the<br />
corresponding period of the previous year.<br />
• Cavallino S.r.l.: the main activity of this subsidiary company is that of real estate management.<br />
The company recorded a net income for the period of Lire 88 million against Lire 83 million for the<br />
period ended 30.6.00. This company has no employees and realised a turnover of Lire 365 million<br />
against Lire 358 million for the period ended 30.6.00.<br />
• Sacid S.r.l.: this subsidiary company recorded a net income of Lire 38 million against Lire 171<br />
million at 30.6.00. The company employed an average of No. 9 employees during the period,<br />
compared to No. 7 during the period ended 30.6.00. Total sales revenue showed an increase of<br />
15.3%, rising from Lire 2,133 million at 30.6.00 to Lire 2,460 million at 30.6.01. The company's<br />
main activity is that of customs brokerage, importation and shipments by air, and its operations are<br />
centred on the Fiumicino Airport in Rome. In particular, the revenues deriving from importation and<br />
customs brokerage activities amounted to Lire 1,388 million, relatively unchanged with respect to<br />
the corresponding period of the previous year. Revenues from shipments by air amounted to Lire<br />
833 million against Lire 643 million del 30.6.00.<br />
• C.R.T. S.r.l.: this subsidiary company recorded a net income of Lire 207 million against Lire 97<br />
million at 30.6.00. The average number of employees during the period amounted to No. 4, as in<br />
the previous year. The company transports containers within Italy. Total sales revenues showed an<br />
increase of 35%, rising from Lire 5,662 million to Lire 7,648 million.<br />
• Do.Ca. S.r.l.: this associated company is based in Livorno and therefore operates mainly in<br />
shipments by sea. The company realised a net income of Lire 837 million against Lire 388 million<br />
for the corresponding period of the previous year. During the period the company recorded a<br />
turnover of Lire 21,031 million, against Lire 15,026 million for the period ended 30.6.00. The<br />
company registered an increase of 211% in terms of quantity of Teus shipped, which rose from No.<br />
3,770 Teus to No. 4,566. The company's principal routes are comprised of North and South<br />
America.<br />
• Levitrans S.r.l.: this associated company recorded a net income for the period of Lire 6 million<br />
against Lire 5 million at 30.6.00. This company operates in the transport of marble and masonry<br />
products sector. The company employed an average of No. 14 employees during the current<br />
period and that of the previous year. Shipping revenues amounted to Lire 17,052 million against<br />
Lire 11,791 million at 30.6.00. Revenues from shipments by sea amounted to Lire 16,984 million<br />
against Lire 11,773 million at 30.6.00. The goods shipped in terms of number of Teus amounted to<br />
No. 2,901 against No. 2,743 at 30.6.00.<br />
16
The parent company's income statement includes the following costs and revenues relative to<br />
subsidiary and associated companies:<br />
30.06.00 31.12.00 30.06.01<br />
(+) Revenues and income:<br />
Revenues from services, mainly shipping<br />
services 83,084 167,297 81,935<br />
Other revenues from rental of real estate 103 206 117<br />
Other revenues from payroll services rendered: 54 85 56<br />
Financial income from dividends and relative tax credits 1,638 3,608 1,538<br />
Financial income from interest on loans 147 609 0<br />
Income from writeback of book value of equity investments 0 241 0<br />
Extraordinary gains realised on the sale of equity investments<br />
(-) Costs and charges:<br />
Costs for services received, mainly related to<br />
0 1,939 0<br />
shipping activities 28,202 52,717 27,055<br />
Costs for rental of real estate: 423 840 429<br />
Exchange losses 0 1,830 0<br />
Provision for coverage of losses 0 288 0<br />
Write-down of equity investments 0 524 0<br />
Significant events subsequent to 30th June 2001<br />
Subsequent to 30th June 2001 the Company opened a new office in Genoa, which became<br />
operative as from the beginning of August 2001 and which is expected to lead to a further expansion of<br />
traffic from North Italy towards Asia in general.<br />
In accordance with a previous agreement, the company acquired a further share of 2% in the<br />
company Leonardi and Co. S.p.A.<br />
Finally, a preliminary agreement has been signed for the acquisition of a building, for office use,<br />
close to the Company's head offices in Scandicci (Florence) for a cost of Lire 515 million; the additional<br />
space shall permit a more rational distribution of operations.<br />
No other events have taken place after the period end which could have a significant effect on the<br />
Company's equity, financial and economic situation.<br />
Forecast for the remainder of the current year<br />
The following figures are forecast for the year 2001 as a whole:<br />
31.12.00 30.06.01 31.12.01<br />
Value of production 387,642 179,466 385,000<br />
Gross operating margin 29,689 9,062 22,000<br />
Net operating result 24,627 6,613 17,000<br />
The net financial position has changed from a net liquidity of Lire 12,189 million at 31st December<br />
2000 to Lire 2,882 million as a result of the significant equity investments acquired during the period.<br />
Given that no significant investments are expected to take place during the second half of the year<br />
2001 we expect to be able to maintain, and indeed improve, the result achieved during the first six<br />
months of the year.<br />
ACCOUNTING PRINCIPLES AND VALUATION CRITERIA<br />
The accounting principles adopted in the preparation of these interim financial statements are<br />
consistent with those adopted in the previous annual financial statements. The more significant<br />
accounting principles are disclosed below:<br />
17
1. Intangible fixed assets are recorded at purchase cost and amortised over the period that the assets<br />
are expected to benefit. In particular, Starting up and expansion costs are capitalised with the Board of<br />
Statutory Auditors’ consent and amortised over a period of five years. Goodwill is capitalised and<br />
amortised over a period of five years from the period in which it was purchased, with the Board of<br />
Statutory Auditors’ consent. Concessions, licences and similar rights relate to the cost of applications<br />
software acquired under licence for use and are amortised on a straight-line basis over the duration of<br />
the licence, which is estimated as being over a period of five years. Improvements to third party assets<br />
and are amortised over the duration of the relative lease or rental contract or over their expected useful<br />
lives, whichever is the shorter.<br />
2. Tangible fixed assets are stated at purchase cost, including directly related charges, and are shown<br />
net of accumulated depreciation thereon. The cost of certain assets has been restated, following the<br />
application of monetary revaluation laws or following mergers, within the limits of the fair value of the<br />
assets concerned. In particular, the buildings recorded in the financial statements were revalued during<br />
the year in accordance with Law No. L.342/2000 utilising the criteria of the revaluation of both historical<br />
cost and of accumulated depreciation, offset by the creation of a specific reserve in shareholders'<br />
equity, having accrued the relative substitutive tax.<br />
Repair and maintenance costs are charged entirely to the income statement in the period in<br />
which they are incurred. Tangible fixed assets are depreciated annually on a straight-line basis<br />
using rates that reflect the residual economic lives of the assets concerned.<br />
3. Assets acquired under financial leasing contracts are recorded in the financial statements in<br />
accordance with the current interpretation of the relative legislation, which requires that leasing<br />
instalments be charged to the income statement for the period.<br />
4. Equity investments intended to be held on a long-term basis are recorded as financial fixed assets<br />
and are stated at purchase cost. Investments in foreign companies are stated at cost converted into<br />
Italian lire at the exchange rate in existence at the moment of acquisition or underwriting of the<br />
investment. In the event of a permanent fall in value they are written down to their net equity value,<br />
determined on the basis of the last approved set of financial statements, taking account of reasonable<br />
expectations of future profitability, by means of the creation of a specific reserve for write-downs.<br />
Losses in excess of the book values of the investments are recorded in a specific provision under the<br />
heading "Provisions for risks and charges".<br />
The investments are restored to their original value should the reasons for such write-downs no longer<br />
apply.<br />
5. Own shares are recorded in the financial statements either as financial fixed assets or current<br />
financial assets, depending on whether they are intended to be held over the long term or whether they<br />
are designed to uphold the Company’s share quotation. In the former case they are valued at cost,<br />
18
educed where necessary to take account of permanent reductions in value; in the second case the<br />
own shares are stated at the lower of average weighted cost and market value.<br />
6. Marketable securities are classified as financial fixed assets if they are intended to be held until their<br />
maturity date, or as current financial assets if they are destined either for negotiation or to meet future<br />
finance requirements. Those securities included in financial fixed assets are stated at purchase cost,<br />
adjusted where necessary to the lower of cost and reimbursement value. The securities included in<br />
current assets are stated at the lower of average weighted cost and estimated realisable value,<br />
calculated on the basis of market trends.<br />
7. Receivables are classified as financial fixed assets or as current assets depending upon their nature<br />
and due date. Receivables included as financial fixed assets are stated at nominal value as this<br />
coincides with their estimated realisable value. The receivables included in current assets are shown<br />
net of specific provisions for bad debts considered necessary to bring these receivables into line with<br />
their estimated realisable value.<br />
8. Accruals and prepayments are recorded in order to match costs and revenues in the accounting<br />
period to which they relate. Accrued income and liabilities relate to income and expenses relative to the<br />
period, which manifest themselves in subsequent periods. Deferred income and prepaid expenses<br />
relate to income and expenses incurred during the period but which are relative to future periods.<br />
9. In order to hedge against exchange risks the Company stipulates forward exchange contracts<br />
relative to certain purchase/sale operations. The effects of the variation in exchange rates on the<br />
currencies covered by these forward contracts are recorded at the moment in which the relative costs<br />
and revenues are recorded. The gains and losses realised on these contracts are recorded in the<br />
income statement at the moment in which the relative payment/receipt is realised or when they are<br />
considered unrealisable and the relative receivable and payable is registered.<br />
10. Liquid funds are stated at numerical value.<br />
11.Provisions for risks and charges cover contingencies in relation to known or likely losses, the extent<br />
and timing of which cannot be precisely determined at the period-end. They comprise the following:<br />
provision for pensions, leaving indemnities and similar resolved by the shareholders’ meeting as<br />
recognition of an indemnity to long serving members of the Board of Directors in the event of their<br />
retirement. The criteria adopted for the recording of such provision is in line with the nominal value<br />
resolved by the shareholders;<br />
provision for taxes includes both the reserve accrued to cover the estimated future tax liability relative<br />
to tax disputes and tax assessments not yet finalised and the provision for deferred taxation;<br />
other provisions comprise the following:<br />
19
- provision for risk of disputes and penalties to cover the losses expected upon the unfavourable<br />
outcome of legal action in course;<br />
• provision for coverage of subsidiary and associated company losses to cover the losses<br />
sustained by subsidiary and associated companies in excess of the book value of the relative<br />
equity investment.<br />
12. Employee termination indemnity represents the liability matured towards employees at the balance<br />
sheet date, determined in accordance with Italian legislation and labour contracts in force. This reserve<br />
results adequate with regard to the liability matured at the period end and is shown net of advances<br />
granted to employees. The credit relative to the advance taxation paid on employee termination indemnity in<br />
accordance with Law No. 662 of 23rd December 1996 and subsequent amendments, revalued in accordance<br />
with this legislation, is recorded under the heading “other receivables" in financial fixed assets.<br />
13. Payables are stated at nominal value.<br />
14. Accruals for income taxes, calculated on the basis of taxable income for the period, are recorded<br />
gross of advance payments of tax and taxes withheld from the Company at source in accordance with<br />
Law No. 466/1997 and subsequent amendments.<br />
Both advance taxation and deferred taxation are recorded in the financial statements where there<br />
exists a reasonable certainty of their future recovery. Deferred and advance taxation are calculated on<br />
the timing differences between the income shown in the financial statements and the taxable income<br />
declared in the Company's tax return on the basis of the tax rates in force in the coming year. The net<br />
difference between advance and deferred taxation is recorded in the income statement under the<br />
heading "Income tax for the year".<br />
The deferred taxation relative to reserves upon which taxation has been postponed has not been recorded as we<br />
have a reasonable certainty that these reserves shall not be utilised and therefore shall not be subject to<br />
taxation.<br />
15. Dividends are recorded on an accrual basis, and therefore at the moment in which the dividend is<br />
declared.<br />
Dividends from subsidiary companies are recorded on a “matural” basis, that is during the period in<br />
which the relative profits were earned by the subsidiary companies, on the condition that the date of<br />
approval of the parent company’s financial statements is later than that of the approval of the<br />
subsidiary companies financial statements and of the relative resolutions for the distribution of net<br />
income. In accordance with the accruals principle, the relative fiscal effects are recorded in the same<br />
period in which the dividend was recorded, even where the dividend is not actually received until the<br />
subsequent accounting period; therefore deferred taxation is calculated (relative only to corporation tax<br />
–IRPEG), taking account of the relative tax credit, which is recorded as an increase in the value of the<br />
dividend.<br />
16. Income and expenses are recorded in accordance with the accrual concept and are shown net of<br />
discounts, rebates and bonuses.<br />
17. The memorandum accounts include the following:<br />
guarantees given, represented by:<br />
20
- fidejussions granted to third parties in favour of Group companies and third parties against<br />
liabilities and other commitments assumed by them, in addition to pledges on the Company's assets.<br />
- mortgage guarantees given to third parties against mortgage loans obtained;<br />
other memorandum accounts comprised of assets held in leasing, valued at the amount of<br />
leasing instalments outstanding plus the purchase option price.<br />
18. Amounts receivable and payable in foreign currencies adhering to the single European currency<br />
"Euro" are converted into lire using the fixed Euro exchange rates. Amounts receivable and payable in<br />
other foreign currencies are converted into lire using the exchange rates in effect at the transaction<br />
date. Eventual exchange differences realised on receipt or payment of these balances are recorded in<br />
the income statement. In accordance with the accounting principle (Accounting Principle No. 26)<br />
issued by the Italian Institute of Accountants (Consigli Nazionali dei Dottori Commercialisti e<br />
Ragionieri), as from the year 2000, current receivables and payables in foreign currencies not adhering<br />
to the single European currency "Euro” are converted into lire using the year-end exchange rates; the<br />
resulting gains and losses are recorded in the income statement under the headings "financial income"<br />
and "financial charges" respectively. Up until the previous year only the unrealised losses were<br />
recorded in the financial statements under a specific provision for exchange differences. The effects<br />
deriving from the adoption of this new accounting principle are disclosed further on in these<br />
explanatory notes.<br />
Liquid funds and bank overdrafts in foreign currency are converted into lire using the year-end<br />
exchange rates.<br />
21
NOTES TO THE BALANCE SHEET<br />
FIXED ASSETS<br />
Intangible fixed assets amount to Lire 823 million against Lire 785 million at 31st December 2000 and<br />
Lire 906 million at 30th June 2000. The movements which took place during the first six months of the<br />
year 2001 (the period) are detailed below:<br />
Starting up<br />
and<br />
expansion<br />
costs<br />
Concessions,<br />
licences and<br />
trademarks<br />
Goodwill Advances<br />
to<br />
suppliers<br />
Others Total<br />
Balance at 31.12.00<br />
Historical cost 134 124 340 0 702 1,300<br />
Accumulated amortisation -74 -43 -68 0 -330 - 515<br />
Net book value 60 81 272 0 372 785<br />
Movements during the 1°<br />
six months of 2001:<br />
• Additions 6 7 0 34 155 202<br />
• Disposals<br />
/Adjustments<br />
0 0 0 0 -11 - 11<br />
• Amortisation -14 -21 -34 0 -83 - 152<br />
Balance at 30.06.01<br />
Historical cost 140 131 340 34 846 1,491<br />
Accumulated amortisation -89 -64 -102 0 -413 - 668<br />
Net book value 51 67 238 34 433 823<br />
The increase of Lire 6 million in starting up and expansion costs is due to legal and fiscal costs<br />
sustained relative to the increase in share capital resolved by the Board of Directors on 30.3.2001 in<br />
exercising the powers conferred on them by the shareholders meetings. The increase of Lire 7 million<br />
in concessions, licences and trademarks relates to the implementation of operational programmes.<br />
The advances of Lire 34 million relate to sums paid in advance for work to be carried out on leased<br />
buildings. The increase of Lire 155 million in other assets relates to the cost of improvements carried<br />
out on buildings held in leasing. The amortisation charge for the period amounts to a total of Lire 152<br />
million, against Lire 616 million at 31st December 2000 and Lire 307 million at 30th June 2000.<br />
Tangible fixed assets amount to Lire 27,124 million against Lire 26,811 million at 31st December<br />
2000 and Lire 13,386 million at 30th June 2000, net of accumulated depreciation thereon. The<br />
movements during the period are detailed below:<br />
Balance at 31.12.2000<br />
Land and<br />
buildings<br />
Equipment Other<br />
assets<br />
Advances<br />
to suppliers<br />
Historical cost 10,344 1,851 10,261 0 22,456<br />
Revaluation 41,973 0 0 0 41,973<br />
Accumulated depreciation -8,950 -1,292 -6,317 0 -16,559<br />
Revaluation of accum. depreciation -21,059 0 0 0 -21,059<br />
Net book value 22,308 559 3,944 0 26,811<br />
Movements during the first six months<br />
of the year 2001:<br />
Total<br />
22
• Additions 145 214 1,349 227 1,935<br />
• Disposals:<br />
• Historical cost<br />
• Accumulated depreciation<br />
0<br />
0<br />
• Depreciation charge -792 -109 -709 0 -1,610<br />
Balance at 30.06.01<br />
Historical cost 10,489 2,023 11,412 227 24,151<br />
Revaluation 41,973 0 0 0 41,973<br />
Accumulated depreciation -9,742 -1,359 -6,840 0 -17,941<br />
Revaluation of accum. depreciation -21,059 0 0 0 -21,059<br />
Net book value 21,661 664 4,572 227 27,124<br />
The more significant additions during the period were:<br />
• land and buildings: work for a value of Lire 124 million carried out on the buildings in Via delle<br />
Nazioni Unite, Scandicci (Lire 1 million) and in No. 65, Via delle Cateratte, Livorno (Lire 123<br />
million) and additions to light construction for Lire 21 million;<br />
• purchases of equipment for Lire 214 million;<br />
• other assets: purchases of electronic machinery for Lire 756 million, trucks for Lire 356 million,<br />
plant, furniture and equipment for Lire 222 million and motor vehicles for Lire 15 million. The<br />
disposals during the period regarded trucks for Lire 159 million, electrical and electronic machinery<br />
for Lire 32 million and plant, furniture and equipment for Lire 7 million.<br />
Lastly, advance payments of Lire 227 million were made for the acquisition of the ground lease<br />
(Lire 182 million) on council land in Genoa for office use up until 31.12.2051 and for restructuring work<br />
on the Livorno building (Lire 40 million) and for the purchase of equipment (Lire 5 million).<br />
The only assets included in the financial statements which have been subject to revaluation are<br />
land and buildings. The table below shows the gross book value:<br />
Commercial buildings Agricultural<br />
land<br />
Light construction Total<br />
Historical cost of land and<br />
buildings not revalued<br />
124 0 274 398<br />
Historical cost of revalued<br />
assets<br />
9,989 102 0 10,091<br />
Revaluation of historical cost: 0 0 0 0<br />
- Merger losses 5,676 0 0 5,676<br />
- Law No. 576/1975 24 0 0 24<br />
- Law No. 413/1991 1,050 25 0 1,075<br />
- Law No. 342/2000 35,198 0 0 35,198<br />
Total gross book value 52,061 127 274 52,462<br />
Financial fixed assets, comprised of equity investments, receivables and other securities, amount<br />
to Lire 34,136 million against Lire 25,200 million at 31st December 2000 and Lire 25,498 million at 30th<br />
June 2000.<br />
Investments in subsidiary and associated companies amount to Lire 33,298 million against Lire<br />
18,486 million at 31st December 2000 and Lire 18,796 million at 30th June 2000 and show the<br />
following movements during the period:<br />
-42<br />
42<br />
Subsidiary<br />
companies<br />
-198<br />
186<br />
Associated<br />
companies<br />
Balance at 31.12.00<br />
Historical cost 16,926 3,558 20,484<br />
Write-downs -1,007 -991 -1,998<br />
Net book value 15,919 2,567 18,486<br />
Movements during the first six months<br />
of the year 2001<br />
• additions 15,374 0 15,374<br />
0<br />
0<br />
-240<br />
228<br />
Total<br />
23
• write-back of value of investment 0 0 0<br />
• repayments received -304 0 - 304<br />
• disposals 0 0 0<br />
• write-downs -258 0 - 258<br />
Balance at 30.06.01<br />
Historical cost 31,996 3,558 35,554<br />
Write-downs -1,265 -991 -2,256<br />
Net book value 30,731 2,567 33,298<br />
The increase of Lire 15,374 million in investments in subsidiary companies relates to the following:<br />
• Lire 580 million for the increase in the share capital of the company Tavoni Arimar S.p.a.;<br />
• Lire 530 million for the coverage of losses sustained by the company Cavallino S.r.l., already<br />
written down by Lire 258 million;<br />
• Lire 8,262 million for the acquisition of 51 % of the share capital of the company Leonardi e C.<br />
S.p.a.;<br />
• Lire 6,000 million for the non-interest bearing loan made to the subsidiary company Savino del<br />
Bene International S.A. (Luxembourg) under the form of advance payment for future share capital<br />
increases utilising the interest bearing loan existing in the financial statements as at 31.12.00;<br />
• Lire 2 million for the underwriting and payment of 1% of the share capital of the indirect subsidiary<br />
company Savino Del Bene Argentina.<br />
The repayment received of Lire 304 million refers to the refund of the share capital of the<br />
subsidiary company Schiassi Spedizioni S.r.l. which went into liquidation.<br />
The write-down of Lire 258 million refers, as previously mentioned, to the subsidiary company<br />
Cavallino S.r.l. which reintegrated the loss for the year ended 31.12.2000 during the period.<br />
In particular, Appendix No. 1 attached to these explanatory notes shows a list of both direct and<br />
indirect investments and the comparison between their net equity value and the book value recorded<br />
in the financial statements. Appendix No. 2 lists the investments in companies owned indirectly<br />
through the subsidiary companies. Finally, Appendix No. 3 shows the principal financial statement<br />
figures for the Company's subsidiary and associated companies.<br />
Receivables recorded under the heading "financial fixed assets" are comprised as follows:<br />
30.06.00 31.12.00 30.06.01<br />
Receivables from subsidiary companies<br />
- due within 12 months<br />
Other receivables<br />
5,896 5,896 0<br />
- due after 12 months 806 818 838<br />
Total 6,702 6,714 838<br />
Receivables from subsidiary companies relate to an interest bearing loan of Lire 5,896 million<br />
towards the subsidiary company SDB International S.A. (Luxembourg) which was transformed into a<br />
non-interest bearing loan and transferred to advances from shareholders for future increases in share<br />
capital and therefore recorded as an increase in the value of the equity investment in this subsidiary.<br />
Other receivables amount to Lire 838 million and consist mainly of guarantee deposits necessary<br />
for the carrying out of the Company's business and granted against contracts for the supply of services<br />
(Lire 227 million) and the receivable from the fiscal authorities for the advance taxation paid on<br />
employee termination indemnity in accordance with Law No. 79/1997 (Lire 611 million).<br />
C) Current assets<br />
Receivables amount to Lire 113,418 million, against Lire 116,691 million at 31st December 2000<br />
and Lire 97,573 million at 30th June 2000, and comprise the following:<br />
30.06.00 31.12.00 30.06.01<br />
Trade receivables<br />
- due within 12 months 51,793 57,481 51,092<br />
Receivables due from<br />
subsidiary companies<br />
- due within 12 months 37,156 44,375 51,895<br />
24
Receivables due from<br />
associated companies<br />
- due within 12 months 215 301 475<br />
Other receivables<br />
- due within 12 months 5,568 11,706 7,093<br />
- due after 12 months 2,841 2,828 2,863<br />
Total 97,573 116,691 113,418<br />
Trade receivables amount to Lire 51,092 million and are shown net of a provision for bad debts of<br />
Lire 2,962 million, which fell by Lire 365 million during the period following the utilisation of the provision<br />
to cover losses sustained and which was increased by Lire 500 million to bring the net value of<br />
receivables into line with their estimated net realisable value.<br />
Receivables due from subsidiary companies amount to Lire 51,895 million, against Lire 44,375<br />
million at 31st December 2000 and Lire 37,156 million at 30th June 2000 and represent receivables of<br />
a commercial nature due from the following companies:<br />
25
Subsidiary companies 31.12.00 30.06.01<br />
Albatrans S.p.A. Scandicci (Florence, ITALY) 756 832<br />
Tavoni Arimar Spa Sesto Fiorentino (Florence, ITALY) 401 501<br />
Centro Spedizioni Internazionali S.p.A. Vicenza (ITALY) 45 32<br />
Fashion Transport S.r.l. Sesto Fiorentino (Florence, ITALY) 197 75<br />
Fiorino Shipping S.r.l. Sesto Fiorentino (Florence, ITALY) 391 66<br />
General Noli Spedizioni Internazionali S.p.A. Modena (ITALY) 209 570<br />
Hani Transport Co. Ltd. Kangnam (SOUTH KOREA) 1,722 1,509<br />
Leonardi & C. spa Sassuolo (Modena, ITALY) 0 35<br />
Lulli S.r.l. Scandicci (Florence, ITALY) 11 7<br />
Novibrama S.r.l. Livorno (ITALY) 9 38<br />
Sacid S.r.l. Rome (ITALY) 44 58<br />
Savitransport S.p.A. Sesto Fiorentino (Florence, ITALY) 217 197<br />
Schiassi Spedizioni S.r.l. Bologna (ITALY) 0 0<br />
Cavallino srl Scandicci (Florence, ITALY) 0 0<br />
Savino Del Bene "Fiume" Rijeka (CROATIA) 0 0<br />
Savino Del Bene Corp. Canada Mississauga (CANADA) 1,068 1,040<br />
Savino Del Bene China Ltd. HONG KONG 523 700<br />
Savino Del Bene Portuguesa Lda Perafita (PORTUGAL) 279 408<br />
Savino Del Bene S.L. Alicante (SPAIN) 590 554<br />
Savino Del Bene UK Limited Basildon (UK) 258 196<br />
C.R.T. Combined Railway Transport S.r.l. Bentivoglio (Bologna, ITALY) 41 70<br />
Fashion Distribution Services Inc. Carteret (USA) 380 403<br />
General Freight Inc. Montreal (CANADA) 401 250<br />
Savino Del Bene (S) PTE Ltd. SINGAPORE 732 554<br />
Savitransport Triveneto S.r.l. Sesto Fiorentino (Florence, ITALY) 1 272<br />
Savino Del Bene do Brasil Ltda. San Paolo (BRAZIL) 261 628<br />
S.D.B. Argentina Buenos Aires (ARGENTINA) 0 174<br />
S.D.B. Finanziaria S.A. LUXEMBOURG 283 0<br />
Savino Del Bene France SA Roissy (FRANCE) 5 4<br />
Savino Del Bene Egypt Ltd. Cairo (EGYPT) 49 84<br />
Savino Del Bene (Georgia) Inc. East Point-Atlanta (USA) 525 511<br />
Savino Del Bene Inc. Massachusetts Chelsea- Boston (USA) 1,602 1,690<br />
Savino Del Bene Intern. Freight Forw. Inc. Elk Grove Vil.-Chicago (USA) 10,527 13,695<br />
Savino Del Bene (Texas) Inc. Irving-Dallas (USA) 3,326 5,219<br />
Savino Del Bene Inc. California Los Angeles (USA) 7,650 7,386<br />
Savino Del Bene Inc. Miami Miami (USA) 2,106 2,549<br />
Savino Del Bene Inc. New York New York (USA) 5,594 7,439<br />
Savino Del Bene Inc. Charlotte Charlotte (USA) 877 819<br />
Savino Del Bene Freight Forw. (India) Pvt Ltd. Bombay (INDIA) 542 382<br />
Savino Del Bene Naklyiati Ltd. Istanbul (TURKEY) 470 514<br />
PT Savino Del Bene (Indonesia) Jakarta (INDONESIA) 16 56<br />
Savino Del Bene Japan Co. Ltd. Tokyo (JAPAN) 1,268 1,315<br />
Savino Del Bene (K L) Sdn. Bhd. Kuala Lampur (MALAYSIA) 14 74<br />
Savino Del Bene Perù Sac. San Sidro (PERU) 119 166<br />
Savino Del Bene Inc. Seattle Seattle (USA) 41 199<br />
Savino Del Bene Pte Thailand Ltd Bangkok (THAILAND) 195 272<br />
Superb Custom Brokers Inc. New York (USA) 630 352<br />
Total 44,375 51,895<br />
Receivables due from associated companies amount to Lire 475 million, against Lire 301 million<br />
at 31st December 2000 and Lire 215 million at 30th June 2000 and relate to the company Do.Ca. S.r.l.<br />
and one of its subsidiaries (Lire 374 million) and to the company Levitrans S.r.l. (Lire 11 million).<br />
26
Other receivables amount to Lire 9,956 million, against Lire 14,534 million at 31st December 2000<br />
and Lire 8,409 million at 30th June 2000.<br />
The current portion due within 12 months amounts to Lire 7,093 million and is comprised of the<br />
following:<br />
• Lire 4,984 million - fiscal authorities for advance payment of taxes, tax withheld at source and tax<br />
credits;<br />
• Lire 267 million - VAT authorities;<br />
• Lire 796 million - advances to suppliers;<br />
• Lire 589 million - due from the company Ventura S.p.A. for the sale of the investments in the<br />
companies Da Verrazzano S.r.l. and Vespucci S.r.l.;<br />
• Lire 393 million - advance taxation;<br />
• Lire 64 million - INAIL.<br />
The non-current portion amounts to Lire 2,863 million and is comprised of the following:<br />
• Lire 1,817 million - due from an insurance company relative to insurance policies for directors<br />
leaving indemnity;<br />
• Lire 724 million - advances to employees;<br />
• Lire 205 million - advance taxation;<br />
• Lire 117 million - mainly comprised of sundry receivables from the fiscal authorities for direct and<br />
indirect tax refunds.<br />
Financial assets amount to Lire 3,987 million, against Lire 4,374 million at 31st December 2000<br />
and Lire 3,781 million at 30th June 2000. They comprise the following :<br />
30.6.00 31.12.00 30.06.01<br />
Own shares 963 1,497 1,079<br />
Other securities 2,818 2,877 2,908<br />
Total 3,781 4,374 3,987<br />
During the period No. 80,730 own shares were purchased and No. 187,875 own shares were sold,<br />
giving rise to a net loss on trading of Lire 352 million (a loss of Lire 357 million and a gain of Lire 5<br />
million), deriving principally from the sale of own shares (No. 184,875) to managers of the Group as<br />
part of the “stock option” programme resolved by the shareholders. At 30th June 2001 the Company<br />
held No. 222,915 own shares, for a total nominal value of € 115,915.8, equivalent to Lire 224,444,286.<br />
The average cost per share purchased amounts to approx. Lire 4,840 equivalent to € 2.4998.<br />
Other securities amount to Lire 2,908 million, against Lire 2,877 million at 31st December 2000<br />
and Lire 2,818 million at 30th June 2000 and represent an investment portfolio administered externally<br />
by a stock-brokerage company.<br />
Liquid funds amount to Lire 12,703 million against Lire 22,909 million at 31st December 2000 and<br />
Lire 18,416 million at 30th June 2000 and comprise the following:<br />
30.06.00 31.12.00 30.06.01<br />
Bank and post office deposit accounts 17,260 21,947 10,684<br />
Cheques 1,064 879 1,899<br />
Cash on hand 92 83 120<br />
Total 18,416 22,909 12,703<br />
D) Accrued income and prepaid expenses<br />
These comprise the following:<br />
30.06.00 31.12.00 30.06.01<br />
Accrued income 254 0 0<br />
Prepaid expenses 256 145 250<br />
Total 510 145 250<br />
Prepaid expenses refer to that part of costs incurred during the period but relative to subsequent<br />
periods for insurance (Lire 158 million), advance shipping charges (Lire 44 million), and contract<br />
maintenance and assistance (Lire 10 million) and other costs (Lire 38 million).<br />
27
Shareholders' Equity<br />
The composition and movements therein are detailed in the table below:<br />
Share<br />
capital<br />
Revaluatio<br />
n reserve<br />
Legal<br />
reserv<br />
e<br />
Reserve<br />
for own<br />
shares<br />
Other<br />
reserves<br />
Net<br />
income<br />
for the<br />
period<br />
Balance at 31.12.99 36,230 210 1,431 874 10,916 10,204 59,865<br />
Increase in share capital (Board Meeting<br />
28.3.00)<br />
Conversion of share capital into Euro (Extr.<br />
Shareholders' Meeting dated 28.4.00)<br />
Total<br />
150 0 0 0 0 -150 0<br />
250 0 0 0 -250 0 0<br />
Allocation of net income (AGM dated 28.4.00) 0 0 511 0 4,659 -5,170 0<br />
Dividends paid (AGM dated 28.4.00) 0 0 0 0 0 -4,884 -4,884<br />
Increase in reserve for own shares (AGM dated<br />
28.4.00)<br />
0 0 0 2,126 -2,126 0 0<br />
Revaluation surplus (Law No. 342/00) 0 11,452 0 0 0 0 11,452<br />
Net income for the year 2000 0 0 0 0 0 17,044 17,044<br />
Balance at 31.12.00 36,630 11,662 1,942 3,000 13,199 17,044 83,477<br />
Increase in share capital (Board Meeting<br />
30.3.01)<br />
161 0 0 0 0 -161 0<br />
Allocation of net income (AGM dated 2.5.01) 0 0 852 0 8,766 -9,618 0<br />
Dividends paid (AGM dated 2.5.01) 0 0 0 0 0 -7,265 -7,265<br />
Net income for the period 1/1/01 – 30/6/01 0 0 0 0 0 10,183 10,183<br />
Balance at 30.06.01 36,791 11,662 2,794 3,000 21,965 10,183 86,395<br />
The movements which took place during the period derive from the following:<br />
• the increase of Lire 161 million in share capital resolved by the Board of Directors on 30.3.2001, in<br />
accordance with the power conferred thereon by the shareholders' meeting of 16.9.98, by means<br />
of the transfer from the reserve for employee profit sharing, subsequently re-constituted in the<br />
allocation of net income for the year ended 31.12.2000;<br />
• the resolution passed by the ordinary shareholders' meeting dated 2.5.2001, which allocated the<br />
net income for the year 2000 to the legal reserve (Lire 852 million), to extraordinary reserves (Lire<br />
8,766 million) and to the reserve for employee profit sharing (Lire 161 million) and declared a<br />
dividend of Lire 200 per ordinary share, for a total of Lire 7,265 million.<br />
Provisions for risks and charges<br />
These amount to Lire 2,897 million, against Lire 2,706 million at 31st December 2000 and Lire<br />
2,418 million at 30th June 2000 and comprise the following:<br />
31.12.00 Increase Decrease 30.06.01<br />
Provision for leaving indemnities, 1,818 99 0 1,917<br />
pension funds and similar<br />
Provision for taxation<br />
Other provisions:<br />
0 250 0 250<br />
- Provision for the coverage of subsidiary<br />
company losses<br />
288 0 258 30<br />
- Provision for litigation, penalties and<br />
disputes<br />
600 127 27 700<br />
Total 2,706 476 285 2,897<br />
28
The provision for leaving indemnities, pension funds and similar represents the provision accrued in order to<br />
pay an indemnity to the Company’s long-term directors at the end of their collaboration. This provision<br />
shows an increase during the period of Lire 99 million representing the indemnity matured during the<br />
period.<br />
The provision for taxation is comprised of a provision of Lire 250 million in order to cover the risks<br />
relative to a fiscal assessment in course.<br />
Other provisions are comprised of:<br />
• Provision for the coverage of subsidiary company losses for Lire 30 million; this provision shows a<br />
decrease of Lire 258 million during the period relative to the utilisation of the provision for the<br />
coverage of the losses for the year ended 31.12.00 sustained by the subsidiary company<br />
Cavallino S.r.l.; the residual balance of the provision as at 30.6.01 of Lire 30 million relates to the<br />
subsidiary company Hani Transport Co. Ltd.;<br />
• provision for litigation, penalties and disputes for Lire 700 million; this provision shows a decrease of<br />
Lire 27 million during the period due to utilisation and an increase of Lire 127 million due to<br />
additional provision accrued.<br />
Employee termination indemnity<br />
This amounts to Lire 9,968 million, against Lire 9,323 million at 31st December 2000 and Lire 8,772<br />
million at 30th June 2000. The following movements took place during the period:<br />
Balance at 31.12.00 9,323<br />
Increases for : 0<br />
- indemnity matured during the period 709<br />
- indemnity on employees transferred from Group companies 0<br />
- revaluation in accordance with Law No. 297/82 173<br />
Decreases for: 0<br />
- indemnity paid to employees leaving the Company -177<br />
- advance payments in accordance with Law No. 297/82 -60<br />
Balance at 30.06.01 9,968<br />
Payables<br />
These amount to Lire 93,014 million, against Lire 101,257 million at 31st December 2000 and Lire<br />
79,140 million at 30th June 2000, and comprise the following:<br />
30.06.00 31.12.00 30.06.01<br />
Payables towards banks<br />
- due within 12 months<br />
Advances from customers<br />
10,534 15,094 13,808<br />
- due within 12 months<br />
Trade payables<br />
606 484 509<br />
- due within 12 months<br />
Payables towards subsidiary<br />
companies<br />
43,708 50,331 42,598<br />
- due within 12 months<br />
Payables towards associated<br />
companies<br />
11,181 11,592 10,820<br />
- due within 12 months 47 49 78<br />
Payables<br />
authorities<br />
towards fiscal<br />
- due within 12 months 5,183 17,295 9,846<br />
Payables towards social<br />
welfare institutions<br />
- due within 12 months<br />
Other payables<br />
2,092 1,963 2,333<br />
- due within 12 months 5,764 4,424 8,331<br />
- due after 12 months 25 25 4,691<br />
Total 79,140 101,257 93,014<br />
29
Payables towards banks amount to Lire 13,808 million, against Lire 15,094 million at 31st December<br />
2000 and Lire 10,534 million at 30th June 2000, and are comprised entirely of current account<br />
overdrafts and short-term loans in foreign currency. The interest rates applied on overdrafts during the<br />
period varied between 7.5% to 8.50%, and between 4.5% to 7% for foreign currency loans.<br />
Advances from customers amount to Lire 509 million, against Lire 484 million at 31st December 2000<br />
and Lire 606 million at 30th June 2000.<br />
Trade payables amount to Lire 42,598 million, against Lire 50,331 million at 31st December 2000 and<br />
Lire 43,708 million at 30th June 2000. They represent payables of a commercial nature and include the<br />
supplements relative to services concluded on or before 30.06.2001.<br />
Payables towards subsidiary companies amount to Lire 10,820 million, against Lire 11,592 million at<br />
31st December 2000 and Lire 11,181 million at 30th June 2000. They consist of the following payables:<br />
30
Subsidiary companies 31.12.00 30.06.01<br />
Albatrans S.p.A. Scandicci (Florence, ITALY) 74 82<br />
Tavoni Arimar spa Sesto Fiorentino (Florence, ITALY) 24 33<br />
Centro Spedizioni Internazionali S.p.A. Vicenza (ITALY) 123 62<br />
Fashion Transport S.r.l. Sesto Fiorentino (Florence, ITALY) 465 16<br />
Fiorino Shipping S.r.l. Sesto Fiorentino (Florence, ITALY) 18 114<br />
General Noli Spedizioni Internazionali S.p.A. Modena (ITALY) 38 110<br />
Hani Transport Co. Ltd. Kangnam (SOUTH KOREA) 290 152<br />
Leonardi & C. spa Sassuolo (Modena, ITALY) 0 314<br />
Lulli S.r.l. Scandicci (Florence, ITALY) 767 697<br />
Novibrama S.r.l. Livorno (ITALY) 906 423<br />
Sacid S.r.l. Rome (ITALY) 30 23<br />
Savitransport S.p.A. Sesto Fiorentino (Florence, ITALY) 327 39<br />
Schiassi Spedizioni S.r.l. Bologna (ITALY) 424 0<br />
Cavallino srl Scandicci ((Florence, ITALY) 0 0<br />
Savino Del Bene "Fiume" Rijeka (CROATIA) 0 13<br />
Savino Del Bene Corp. Canada Mississauga (CANADA) 382 334<br />
Savino Del Bene China Ltd. HONG KONG 750 519<br />
Savino Del Bene Portuguesa Lda Perafita (PORTUGAL) 71 93<br />
Savino Del Bene S.L. Alicante (SPAIN) 356 314<br />
Savino Del Bene UK Limited Basildon (UK) 290 24<br />
C.R.T. Combined Railway Transport S.r.l. Bentivoglio (Bologna, ITALY) 733 880<br />
Fashion Distribution Services Inc. Carteret (USA) 197 279<br />
General Freight inc. Montreal (CANADA) 0 0<br />
Savino Del Bene (S) PTE Ltd. SINGAPORE 312 72<br />
Savitransport inc. Chicago (USA) 0 1<br />
Savitransport Triveneto S.r.l. Sesto Fiorentino (Florence, ITALY) 11 29<br />
Savino Del Bene do Brasil Ltda. San Paolo (BRAZIL) 46 110<br />
Savino del Bene Argentina Buenos Aires (ARGENTINA) 0 17<br />
Savino Del Bene France SA Roissy (FRANCE) 150 96<br />
Savino Del Bene Egypt Ltd. Cairo (EGYPT) 1 2<br />
Savino Del Bene (Georgia) Inc. East Point-Atlanta (USA) 282 173<br />
Savino Del Bene Inc. Massachusetts Chelsea- Boston (USA) 87 123<br />
Savino Del Bene Intern. Freight Forwarders Inc. Elk Grove Vil.-Chicago (USA) 381 848<br />
Savino Del Bene (Texas) Inc. Irving-Dallas (USA) 49 49<br />
Savino Del Bene Inc. California Los Angeles (USA) 510 470<br />
Savino Del Bene Inc. Miami Miami (USA) 117 226<br />
Savino Del Bene Inc. New York New York (USA) 1,990 2,434<br />
Savino Del Bene Inc. Charlotte Charlotte (USA) 148 161<br />
Savino Del Bene Freight Forw. (India) Pvt Ltd. Bombay (INDIA) 118 140<br />
Savino Del Bene Naklyiati Ltd. Istanbul (TURKEY) 51 2<br />
PT Savino Del Bene (Indonesia) Jakarta (INDONESIA) 1 6<br />
Savino Del Bene Japan Co. Ltd. Tokyo (JAPAN) 36 78<br />
Savino Del Bene S.a. Chiasso Chiasso (SWITZERLAND) 2 2<br />
Savino Del Bene Perù Sac. San Sidro (PERU) 44 48<br />
Savino Del Bene Inc. Seattle Seattle (USA) 5 39<br />
Savino Del Bene Pte Thailand Ltd Bangkok (THAILAND) 94 149<br />
Savino Del Bene (K L) Sdn. Bhd. Kuala Lumpur (MALAYSIA) 0 64<br />
Superb Custom Brokers Inc. New York (USA) 892 960<br />
Total 11,592 10,820<br />
Payables towards associated companies amount to Lire 78 million, against Lire 49 million at 31st<br />
December 2000 and Lire 47 million at 30th June 2000. They consist of payables towards the<br />
associated companies Do.Ca. S.r.l. (Lire 32 million) and Levitrans S.r.l. (Lire 46 million).<br />
31
Payables towards fiscal authorities amount to Lire 9,846 million against Lire 17,295 million at 31st<br />
December 2000 and Lire 5,183 million at 30th June 2000. These relate to current tax withheld at<br />
source from employees and others (Lire 1,188 million), to the balance of the income tax for the year<br />
2000 and to the first instalment of the advance payment of income tax for the year 2001 (Lire 6,755<br />
million), substitutive tax in accordance with Law No. 342/2000 (Lire 1,792 million) and substitutive tax<br />
in accordance with Law No. 358/1997 (Lire 111 million).<br />
Payables towards social welfare institutions amount to Lire 2,333 million against Lire 1,963 million at<br />
31st December 2000 and Lire 2,092 million at 30th June 2000.<br />
Other payables amount to Lire 13,022 million against Lire 4,449 million at 31st December 2000<br />
and Lire 5,789 million at 30th June 2000.<br />
The current portion of these other payables amounts to Lire 8,331 million and is comprised of the<br />
following:<br />
• Lire 4,108 million - payables towards employees;<br />
• Lire 1,550 million - payable for the purchase of the equity investment in the subsidiary company<br />
Leonardi & C. S.p.a.;<br />
• Lire 476 million - payable for the purchase of the equity investment in the associated company<br />
Levitrans S.r.l.;<br />
• Lire 205 million - dividends payable;<br />
• Lire 137 million - insurance indemnities to be passed on to customers;<br />
• Lire 24 million - for a down payment received upon the stipulation of a preliminary sale contract for a<br />
building;<br />
• Lire 1,831 million - others.<br />
The non-current portion amounts to Lire 4,691 million and relates to guarantee deposits for Lire 41<br />
million and to a payable of Lire 4,650 million for the acquisition of the equity investment in the company<br />
Leonardi e C. S.p.a..<br />
E) Accrued liabilities and deferred income<br />
These comprise the following:<br />
30.06.00 31.12.00 30.06.01<br />
Accrued liabilities 60 100 74<br />
Deferred income 101 52 93<br />
Total 161 152 167<br />
The accrued liabilities amount to Lire 74 million relate to costs matured during the first six months<br />
of the current year and consist mainly of interest charges from banks.<br />
Deferred income amounts to Lire 93 million and relates to income relative to subsequent periods<br />
and consist mainly of insurance premiums re-charged to customers (Lire 80 million) and rental income<br />
(Lire 13 million).<br />
Memorandum accounts<br />
The memorandum accounts amount to a total of Lire 40,667 million against Lire 25,902 million at<br />
31st December 2000 and Lire 35,911 million at 30th June 2000. They are comprised of the following :<br />
30.06.00 31.12.00 30.06.01<br />
Secured guarantees given 10,022 22 0<br />
Personal guarantees given to:<br />
- subsidiary companies 12,297 10,951 10,737<br />
- associated companies 7,400 7,800 7,800<br />
- third parties 6,087 5,750 15,967<br />
Other memorandum accounts 105 1,379 6,163<br />
Total 35,911 25,902 40,667<br />
The increase in guarantee given to third parties relates mainly to the fidejussion of Lire 6,200<br />
million granted for the purchase of the equity investment in the company Leonardi & C. S.p.a. and for a<br />
guarantee of Lire 4,000 million granted in favour of the Milan Customs Office for the carrying out of<br />
commercial activities.<br />
32
NOTES TO THE INCOME STATEMENT<br />
Value of production<br />
The revenue from sales of goods and services amounts to Lire 177,826 million, against Lire<br />
384,759 million at 31st December 2000 and Lire 181,966 million at 30th June 2000. It represents<br />
revenues, net of rebates and discounts, deriving from normal shipping and transport operations and is<br />
detailed below:<br />
30.06.00 31.12.00 30.06.01<br />
Income from sea transport 111,901 234,352 103,195<br />
Income from air transport 50,970 113,007 57,044<br />
Income from overland transport 6,890 13,144 6,103<br />
Other income from services 12,205 24,256 11,484<br />
Total 181,966 384,759 177,826<br />
Other income and revenues amount to Lire 1,640 million against Lire 2,883 million at 31st<br />
December 2000 and Lire 1,215 million at 30th June 2000. These are comprised principally of income<br />
from the rental of real estate for Lire 309 million and income from the reimbursement of expenses for<br />
Lire 1,223 million.<br />
Cost of production<br />
The cost of raw, ancillary and consumable materials and goods for resale amounts to Lire 895 million,<br />
against Lire 1,430 million at 31st December 2000 and Lire 641 million at 30th June 2000 and relate<br />
mainly to costs sustained for the purchase of stationery and fuel.<br />
The cost of services amounts to Lire 151,347 million against Lire 324,677 million at 31st December<br />
2000 and Lire 153,105 million at 30th June 2000. These are comprised principally of freight charges.<br />
transport, commission, maintenance, insurance and sundry administrative expenses.<br />
Leasing and rental charges amount to Lire 1,487 million against Lire 2,429 million at 31st<br />
December 2000 and Lire 1,175 million at 30th June 2000.<br />
Labour costs amount to Lire 16,057 million against Lire 28,319 million at 31st December 2000 and<br />
Lire 14,074 million at 30th June 2000.<br />
Amortisation of intangible fixed assets amounts to Lire 152 million against Lire 616 million at 31st<br />
December 2000 and Lire 306 million at 30th June 2000. Depreciation of tangible fixed assets amounts<br />
to Lire 1,610 million against Lire 2,794 million at 31st December 2000 and Lire 841 million at 30th June<br />
2000.<br />
The provision for bad debts amounts to Lire 310 million against Lire 1,193 million at 31st<br />
December 2000 and Lire 452 million at 30th June 2000.<br />
Provisions for risks and charges amount to Lire 377 million, against Lire 459 million at 31st<br />
December 2000 and Lire 327 million at 30th June 2000, and comprise of the provision for taxation for<br />
Lire 250 million and the provision for litigation, penalties and disputes for Lire 127 million.<br />
Sundry operating expenses amount to Lire 618 million against Lire 1,098 million at 31st December<br />
2000 and Lire 427 million at 30th June 2000. They comprise taxes and duties, trade association<br />
contributions, subscriptions and other operating expenses.<br />
Financial income and expenses<br />
33
Income from equity investments amount to Lire 1,539 million against Lire 3,614 million at 31st<br />
December 2000 and Lire 1,639 million at 30th June 2000. They consist principally of dividends<br />
received from the subsidiary companies Savitransport S.p.a. (Lire 510 million), Lulli S.r.l. (Lire 108<br />
million), Albatrans S.p.a. (Lire 300 million) and Sacid S.r.l. (Lire 51 million) and the relative tax credits<br />
thereon. (Lire 569 million).<br />
Other financial income derives from marketable securities for and amounts to Lire 88 million<br />
against Lire 64 million at 31st December 2000 and Lire 50 million at 30th June 2000. It relates mainly<br />
to gains realised on administered securities;<br />
Financial income other than the above amounts to Lire 4,489 million against Lire 13,993 million at<br />
31st December 2000 and Lire 4,746 million at 30th June 2000. It is comprised principally of interest<br />
income from banks (Lire 159 million) and gains on exchange (Lire 4,215 million).<br />
Interest and other financial charges amount to Lire 2,556 million, against Lire 13,252 million at 31st<br />
December 2000 and Lire 3,584 million at 30th June 2000, and are comprised as follows :<br />
30.06.00 31.12.00 30.06.01<br />
Interest charges from subsidiary<br />
companies<br />
0 1,830 0<br />
Interest charges from banks 519 1,232 461<br />
Losses on exchange 2,663 9,480 1,441<br />
Bank charges 195 432 223<br />
Loss on sale of own shares 187 187 356<br />
Other financial charges 20 91 75<br />
Total 3,584 13,252 2,556<br />
D) Adjustments to the value of financial assets<br />
No such adjustments were made during the period while they amounted to Lire 358 million at 31st<br />
December 2000 and Lire 7 million at 30th June 2000.<br />
E) Extraordinary income and expenses<br />
Net extraordinary income amounts to Lire 10 million against net extraordinary income of Lire 1,824<br />
million at 31st December 2000 and net extraordinary expenses of Lire 79 million at 30th June 2000. It<br />
relates to non-recurring income recorded during the period.<br />
6. OTHER INFORMATION<br />
Workforce<br />
The average number of employees showed the following movements with respect to previous periods:<br />
30.06.00 31.12.00 30.06.01<br />
Managers 10 10 9<br />
Clerical and supervisory staff 318 331 342<br />
Manual workers 14 13 15<br />
Total 342 354 366<br />
Euro<br />
In collaboration with the subsidiary company Lulli S.r.l., the Company has already adopted the<br />
measures necessary to overcome the problems relative to the introduction of the Euro and the<br />
procedures necessary in order to use the new currency as unit of accounting measurement without<br />
difficulty are already being implemented.<br />
In particular, the following subsidiary companies have already adopted the euro as their<br />
accounting currency:<br />
• Savino Del Bene S.L. (Spain)<br />
• Savino Del Bene Portuguesa Lda (Portugal)<br />
• S.D.B. Finanziaria S.A. (Luxembourg)<br />
• Savino Del Bene Internationale Luxembourg S.a. (Luxembourg)<br />
• Albatrans S.l. (Spain)<br />
• General Noli S.l. (Spain)<br />
34
The new versions of the accounting and administrative/management software prepared by the<br />
subsidiary company Lulli S.r.l. have already been tested and are currently being verified (running the<br />
existing procedures in parallel in order to ensure the possibility of fall-back) by certain pilot offices.<br />
Within the end of the current year these new procedures shall be adopted by all of the Group<br />
companies affected by the introduction of the Euro.<br />
All of the Group companies with head offices within the Euro area shall commence staff training<br />
programmes as from October 2001 relative to the Euro and the use thereof in the new computer<br />
procedures.<br />
Changes to the Company's offices<br />
The extraordinary shareholders' meeting of 2nd May 2001 resolved the transfer of the Company's<br />
secondary offices from Montemurlo, in No. 20 Via Spartaco Lavagnini, Frazione Oste, to Prato, in No.<br />
61/E Via Fonda di Mezzana.<br />
In addition, the new Padova office became operative as from the beginning of the year 2001.<br />
On behalf of the Board of Directors,<br />
Paolo Nocentini - Chairman<br />
35