Annual Report 2016 - SIAENovember 2016, the roadshow continues to visit cities around Italy. Similar initiatives will be implemented to meet the authors and professionals of other

2016

Annual Report

Section 1 - SIAE’s JobInside:

www.siae.it

Section 2 - 2016 Balance

2/1 - Authors Management

2/2 - Beyond Authors Management

- Music- Cinema- Theater - Lyrics- OLAF- Related Services

- Home Copy- Endorsement Management - Sillumina Project- Solidarity Fund- Delegated Services

Società Italiana degli Autori ed EditoriViale della Letteratura, 30 · 00144 Rome (Italy)

www.siae.it

2 Section 1 - SIAE’s Job

SIAE1

SIAE’sJob

SECTION

3Section 1 - SIAE’s Job

SIAE1

SIAE’sJob

SECTION


SIAE: Protecting the Talent

SIAE is a society established for the collective management of author’s rights. It is made up of authors, publishers, dealers, who are its “membership base”, holding economic rights on their works who entrust SIAE with their protection.

SIAE grants licenses of use of the repertories, collects the sum and distributes them to each relevant rightholder.

SIAE’s Mission is to guarantee its members with the remuneration for their work.

SIAE’s Governance is entirely entrusted to the bodies appointed and elected by its members (Assembly, Supervisory Board, Management Board and Advisory Committees):

• the timing and the criteria for the allocation of the receivables are decided by the Management Board of the Company on the advice of the Associated Section Commissions;

• at the instance of those entitled to SIAE rights, it gives important advances.

A company who manages and pays author’s rights

EXTERNAL MONITORING BODIES

Presidency of the Council of Ministers

INTERNALMONITORING

BODIES

SUPERVISORY TBOARD

MANAGEMENT BOARD

COMMISSIONS

MEF AGCOMMiBACT

INTERNALCONTROL

COMMITTEE

INDIPENDENT AUDITING COMPANY

BOARD OF AUDITORS

O.d.V. EX d.lgs.231/2001

GENERAL MANAGEMENT


SIAE in Three formsIn addiction to author’s rights, SIAE manages more services

The SIAE business is expressed in three forms:

• Protection of the Author’s rights,• Services entrusted to SIAE by law,• Services in agreement with public and private entities.

SIAE TURNOVER 2016

1. Author’s right 2. Home copy3. Other business activities4. Various conventions5. Additional income

74% - 592 mln16% - 128 mln6% - 49 mln3% - 22 mln1% - 6 mln

796 mln €


PROTECTION OF THE AUTHOR’S RIGHT

SERVICES IN AGREEMENTWITH PUBLIC AND PRIVATE ENTITIES

SERVICESENTRUSTED TO SIAE BY LAW

AUTHOR’SMANAGEMENT

MUSIC

CINEMA

DOR - LIRICA

RELATED SERVICES

HOME COPY

ENDORSEMENT MANAGEMENT (GeVi)

SILLUMINA PROJECT

SOLIDARITY FUND

ITALITAN REVENUE

STATE MONOPOLIES AGENCY

OTHER AGREEMENTS

OLAF

DELEGATEDSERVICES AND

OTHER CULTURAL & STRATEGICAL

ACTIVITIES

1

2

3

SIAE


SIAEin Italy

1213 Employees

1Head Office in Rome

10 Regional headquarters

28 Branches

470 Agents


SIAE in the world

Agreements with 150 foreign companies in 145 country for the

reciprocal representation contracts

270agreements for the management of

the SIAE repertoire internationally

Members of the most important organization for author’s rights

protection (CISAC, BIEM, GESAC, EVA, SAA,

IFRRO)


SIAE Makes Culture

The Culture and Creativity industry generates more than 41 billion euros and represents 2.96% of the GDP. It deals with over one million resources (4% of the entire Italian workforce), exceeding the telecommunications, energy, automotive and food sectors.

ECONOMIC VALUE 2015

47,9 mld € (total)

of which 41,1 mld€ direct

EMPLOYED 2015

1.028.000 (complessivi)

of which 883.000 direct

The context of reference: the Italian cultural market…


VIDEOGAMES ARCHITECTUREPERFORMING

ARTSVISUAL

ARTS AUDIOVISUAL BOOKS MUSIC ADVERTISINGNEWSPAPER

AND MAGAZINES RADIO

ECONOMICVALUE

2015

EMPLOYED 2015 €

€€

€

€

€

€

€

€

€

€

3,4 mld €

15.200 68.900 172.400 250.200 180.500 141.000 168.000 92.600 94.000 7.300

2,4 mld € 4,7 mld € 11,9 mld € 14,0 mld € 3,1 mld € 4,7 mld € 7,4 mld € 4,7 mld € 0,9 mld €


SIAE has devoted € 3.3 million for the support and promotion of numerous cultural initiatives, above all those aimed at young authors, the formation, digitization and enhancement of the cultural industry.

The SIAE also partakes in many social and solidarity activities, fully aware that culture is also able to help improve emergency or hardship situations, whether they be social, economic or health-related.

Over the year, particular focus has been placed on charitable initiatives to help the populations in Central Italy affected by the tragic earthquake of August 2016.

… within which it supports and promotes cultural initiatives


€ 3,3 mln € 180.000Cultural activities Social activities


Contrast to false programming: Contrast to false programming:identifying fraudulent systems and subjects who have committed fraud to steal proceeds that rightfully belong to others;

Agreements with Broadcaster on behalf of Cinema and Music: leaving pre-existing extension system for expired agreements behind and aligning licenses to current and effective uses of a repertoire;

SIAE TodayThe activities carried out

Digital Agenda: digital transformation program for redefining the service model and developing a new technological architecture.

€


1. Renewals Portal of environmental Music: subscriptions management (renewal/modifications) for the dissemination of ambient music in public establishments.

2. Online Subscription: through an online feature available on the institutional website (in less than six months, 41.3% of the membership applications were made online).

3. New Portal for Authors and Editors, which can be accessed by members and principals, for consulting data (for example, the earnings dashboard, changes to personal data).

4. Portal for “mioBorderò”: aimed at all event Organizers and Execution Managers, for the management of online Music Programs.

5. Payments platform for direct payments from the portals via credit card, PayPal and bank transfers.

6. Electronic Signatures of the documents (with contextual substitutional preservation of the same): a requisite for future evolutions, focused on streamlining processes and reducing costs.

7. Online Depository of musical works for creating a new and revolutionary customer journey.

8. Evolution of the CRM for SIAE membership, user and customer management.

DIGITAL AGENDA


SIAE for...

For young authors: support through initiatives to promote works by young authors and publishers and, more generally, niche repertoires that need greater support (including those in less widespread sectors such as jazz or cult music).

For users: innovated offering and simplified rates to define the service the user has subscribed to according to his or her needs. We have created the Mercoledì Live rate; economic, immediate and directly usable on the Web through the Mercoledì Live portal.

For the public: Dialogando con SIAE (Conversing with the SAIE) is a roadshow organized in collaboration with MusiCraft, where we can meet and talk with authors, publishers and professionals in the music industry. After the first event in Milan in November 2016, the roadshow continues to visit cities around Italy. Similar initiatives will be implemented to meet the authors and professionals of other repertoires administered by the SIAE.

Ongoing initiatives


For proper functioning: the Decree implementing the Barnier Directive transposes Community laws by laying down requirements for ensuring the proper functioning of the management of copyright and related rights, as well as the multi-territorial licensing of rights by collective copyright management organizations in musical works for online use in the internal market.

The SIAE has been preparing for the transposition of this legislation, to be implemented by 2017, for some time now, and has a renewal plan ready: from the revision of the Statute to the revision of business processes that regulate the business relationship, communication and advertising systems used for members, the allocation of rights, management reports, territorial organization, etc...


2

2016Balance

SECTION 2016 BALANCE


2

2016Balance

SECTION 2016 BALANCE

20 Section 2 - 2016 Balance

Data, in ShortA particular balance, thanks to income’s advance payment compared to the outflow

ACTIVE PASSIVE

Fixed assetstangible assetsfinancial assetsintangible assets

Total fixed assetsCurrent assets

creditscash availability

Total current assets

Prepayments and accrued income

ACTIVE TOTAL

24,7964,6

9,8999,3

292,7245,4

538,0

21,8

1.559,2

25,6838,5

1,0865,1

250,0267,6517,6

6,8

1.389,5

118,6166,223,7

787,631,60,5

819,7261,0

0,2

EquityFunds for risks and chargesTFR for employee work

Payable to members, principal and successors of which:

waiting for allocationguarantee fundsfor institutional services

Other debtsAccrued expences and deffered income

PASSIVE TOTAL

2016 20162015 2015

FINANCIAL STATEMENTS (€/mln)

119,9158,4

21,4

803,944,60,6

848,9410,0

0,5

1559,2 1389,5

21Section 2 - 2016 Balance

The presence of sums that are awaiting processing and assignment to the right-holders is shown in the balance sheet:

• in the Balance Sheet: between cash and cash equivalents, current assets and financial fixed assets and liabilities (payables) are shown as sums allocated to the breakdown of the process of identifying the right holders according to the repertoire used;

• in the income statement: among the proceeds from financial management.

SIAE is characterized, like all other international collecting societies, by reversing the operating cycle, by anticipating revenues (collecting author’s rights) in relation to the output (allocation to the beneficiaries).This peculiarity physiologically generates the presence of a liquidity that can generate financial profits.


Sums pending allocation

Payable to members, principals and successorTotal payablesPassive Total

Payables/Total payablesPayables/Passive total

848,911258,951559,15

67,4%54,4%

952,781379,85

1401,17

69,0%68,0%

876,381933,492

1051,3

93,9%83,4%

SIAE SACEM GEMA

Pursuant to Legislative Decree n. 35 of March 2017, the SIAE is obliged to adhere to the budget strategy provided for joint-stock companies (pursuant to Book V, Title V, Chapter V, Section IX, of the Civil Code).

This diagram, in economic scalar form, shows the difference between Value and Production Costs, used by normal commercial companies as one of the parameters for efficiency management, thus excluding the contribution of financial management.


Income statement (€/mln)

Revenuesa) author’s right (deductions and other services)b) delegated servicesc) segregated accounts & non- operative income

Total revenues

Costsa) personnelb) agentsc) management and operationd) depreciation and devaluations

Total costs

DIFFERENCEfinancial and patrimonial incomeincome xax

Year’s result

122,430,433,6

186,3

82,542,561,46,0

192,4

(6,1)7,70,4

1,3

121,531,317,8

170,6

85,643,157,79,9

196,2

(25,6)27,6

1,6

0,3

2016 2015


However, for the specificities of collecting companies, the financial component resulting from the use of the sums allocated is a typical element of the core business and the parameter “Difference between value and cost of production” (so called “Operating margin”) is absolutely not significant.

The Barnier Directive leaves the members of the decision to distribute the funds in the allocation department or to use them to offset the management costs (as always SIAE and the main foreign consortia).

Since SIAE is a non-profit company, and its “mission” is not to generate profits to be distributed to its members, revenues and proceeds of any kind are intended for the remuneration of the productive factors (costs and charges).

SIAE: Not-for-profit Organisation


REMUNERATION OF

PRODUCTION FACTORS(COSTS AND CHARGES)

REVENUES AND INCOMES


Understanding Our NumbersTo underline the importance of financial management

As already explained, the SIAE’s balance sheet is structured around that established by the Civil Code for joint-stock companies and Legislative Decree 50/2017, using a scalar structure that shows the operating result as the difference between value and production costs (so-called AB), with the result of financial activities shown separately. However, this method of representation means that it is not possible to highlight SIAE’s actual production cycle, which differs from that of normal industrial businesses.For this reason, we felt that it would be useful to reclassify the profit and loss account, so as to provide the reader with

more accurate information about the net profit generated by business and the strategic actions implemented within the agency.The reclassified diagram shows that Operational Management generated € 177.8 million in revenues (net of the positive balance of financial management, €170.1 million) and € 161.9 in costs. The positive Margin, equal to 15.9 million ( 8.2 euros without the financial component), has helped support the strategic and the social and cultural activities costs.Presenting a statement with a surplus of over € 15 million is not the scope of the business: the company does not pursue profit and does not distribute dividends.


3. Support for social initiatives, solidarity and cultural promotions;

For this reason, the sum of all proceeds and revenues (operational and financial) and all costs (operational and strategic) yield a modest result.

When operational management highlights positive margins, actions are planned for the benefit of the membership base in terms of:

1. Decrease in commissions (average commissions from 2009 to 2016 decreased by 1.5 percentage points)

2. Investments to improve business efficiency (IT, reorganization, etc.);

The 2016 surplus will fuel the Reserves, so that in the absence of a share capital, it is the only fund guaranteeing business continuity.


177,8123,9

4,430,4

11,47,7

161,981,1

74,62,73,5

15,9

179122,1

3,531,36,016,1

164,584,276,0

2,22,1

14,5

Revenues and incomesauthor’s rights (deductions and other services)home copydelegated servicesother revenuesnet financial income

Costs and expensespersonnelmanagement and operationother chargesdepreciation

Operationl management result

2016 2015Operational management

Reclassified Income Statement


0,00,0

(9,0)(5,6)(0,9)

(15,5)

0,4(0,4)

0,50,0

1,3

11,8(7,0)

(12,7)(4,4)(1,5)

(13,8)

0,71,0

0,60,0

0,3

gain/losses on disposal of financial fixed assetswrite-ups/write-downsstrategic plancorporate reorganization costscultural and social activities

Strategic management balance

Business resultincome taxseparetd accountsspecial sectional accounts

Year’s results

2016 2015Strategic management


Music Cinema TheaterLyrics

OLAF Related Services

Introduction

AuthorsManagement


Authors ManagementMusic, Cinema, Theater-lyrics, Olaf and Related Services

All works are born from an idea, from the creativity of the author: every piece of music literature and drama, very film and opera, every visual arts work encompasses the author’s hard work, and this deserves to be protected.

Creative works are a valuable asset: they are the expression of an intellectual work that the law protects just like any other. This is why copyright exists from the moment the work is created.

Copyright protects authors and their creativity. It gives the author sole rights to the distribution of his or her works, to claim authorship, to decide if and when to publish them, to oppose any modification thereof, to

authorize any type of use and to receive the related proceeds that they have earned.The SIAE was established at the request of authors to ensure that this right was respected and that they could continue to create.


85.800

12 mln

500.000

1,8 mln45 mln

Members

Works managed by mutual representation contracts

Users of the SIAE Repertoire

Licensing agreement Works managed directly


€ 519 mlnDistributions 2016

15,2%Deductions

€ 638 mlnTotal collections (author’s rights

and home copy to authors)

2016 Income statement (€/ mln)

122,4-

14,06,3

142,6

63,331,4

42,65,3

142,6(0,5)

0,5

Revenues and incomesa) author’s rights b) segregated accounts & non-operative incomec) financial and patrimonial income

Total revenues

Costs and expensesa) personnelb) agentsc)management and operationd) depreciation and devaluation

Total cost’s and expensesincome tax

Year’s result

Authors mangement


During 2016, € 519 million was cleared in copyrights, but at the same time € 638 million was collected, including the Private

Copy for Authors. At the end of 2016, the intended flows for distribution amounted to € 848.4 million.

Flows fordistribution

Flows for distribution

SIAE

ANALYTIC

AUTHORSIAE

SAMPLE CASE

1

2

RIPARTITION METHODSIAE uses mainly an Analytic Method. Only when conditions doesn’t allow that, uses the SampleCase.

Based on real utilization data

It’s uses astatistic method

Rights to be distributed88%

7%

5%

Rights distributed pending attribution

Guarantee funds


Flows for allocation

Net balance 31/12/2016payable to members

Gross Balance on 31/12/2016of which:

Rights to be allocated analiticallyrights collected during the yearprior rights pending consolidation

Rights to be allocated via proportional allocation

prior rights already allocated and not allocated subject to further processingrights suspended

Rights to be allocated pending attributionrights not attributed for lack of identification elements, pending processing

rights attributed to eligible and non- liquidated

Guarantee funds

581.10070.192

651.292

455.457400.516

54.941

138.052

73.794

64.258

35.94520.465

15.480

21.838

101.94287

102.029

44.59736.330

8.267

36.360

22.974

13.387

7.5822.803

4.778

13.490

Music DOR OLAFCinema Lyric SIAE

50.6301.682

52.312

40.69825.19415.504

3.361

0

3.361

3.8090

3.809

4.444

6.835125

6.859

4.6244.021603

565

0

565

3990

399

1.272

35.77834

35.812

14.41211.0603.351

10.071

0

10.071

8.0005.713

2.286

3.300

776.28472.020

848.304

559.787477.121

82.666

188.409

96.768

91.641

55.73428.982

26.752

44.375


The Balance of Payments for SIAE with foreign countries shows a net financial balance compared to the Foreign Collective Management Bodies of about € 68 million.

Abroad - receipts and payments (€/k)

23.3423.0073.3921.348

65

31.154

74.53520.494

2.665456879

99.029

(51.193)(17.487)

727892

(814)

(67.875)

MusicCinemaOlafDorLyrics

Total

Receipts Payments Balance

SIAE with the world

€ 68 mlnNet financial balance compared to Foreign

Collective Management Bodies


80 Mln

40 Mln

40 Mln

60 Mln

60 Mln

20 Mln

Music

Europe

OLAF

Asia

Cinema

America

DOR

Oceania

Lyrics

Africa

20 Mln

PaymentReceipts

2016 Foreign Transaction


Music

Authors Management

Music




Authors Management in Detail Music

The Music Division administers the rights for musical works, with or without lyrics, both of classical and pop genres. Lyrical works, ballets, oratories, operettas, magazines, etc. are entrusted with the protection of the Lirica and DOR Sections: in these cases the Music Division only administers the “disconnected songs”, that is, excerpts take from the full version of dramatic-musical works

The Music Division manages the public performance rights of the works, including film and radio/tv broadcast rights, and mechanical reproduction rights.

On the other hand, the Division does not manage other rights, such as print rights of musical works and/or their related texts and, in general, synchronization rights..


Music section €/mln

Costspersonnel

agents

management and operation

depreciation and devaluation

income tax

Other revenues and incomes

Net operating cost

(€ 106,0)(€ 46,3)

(€ 26,0)

(€ 29,7)

(€ 4,2)

€ 0,2

€ 29,4

(€ 76,5)

2016

€ 384,5 mlnDistrubuted 2016

Mechanical Reproduction

Home Copy to author

Multimedia

33,9

17,6

23,3

28,2

Broadcasting129,1

Public Representation247,0

Abroad


Mechanical Reproduction

Home Copy to author

Multimedia

33,9

17,6

23,3

28,2

Broadcasting129,1

Public Representation247,0

Abroad

2016 Music(€/mln)


Authors Management

Cinema

CinemaMusic TheaterLyrics



The Cinema Section manages the rights concerning cinematographic and similar works (such as television films, television series and tv miniseries, telenovelas and soap operas, sitcoms, etc.) and on behalf of the authors of the storyline, the screenplay and the direction, as well as in favor of the authors of the translations and adaptations of the Italian dialogues of the works originally produced in a foreign language.

The activity of protection concerns, in particular, the fair compensation management, cashed for the video supports distributed in regular sales circuits or on newsstands, and for the Digital Service

Provider that provide audiovisual works online. The tasks performed by the section also includes the keeping of the Film public register and also entrusted with the monitoring of data on projections in cinemas.

Authors ManagementCinema


Cinema section €/mln

Costspersonnelagentsmanagement and operationdepretiation and devaluationincome tax

Other revenues and incomesNet operating costs

(€9,1)(€ 3,0)(€ 0,1)(€ 4,3)(€ 0,3)(€ 1,5)

€ 0,8(€ 8,3)

2016

€ 57 mlnDistributed 2016


2016 Cinema(€/Mln)

Home Copy to author

Abroad

Multimedia

3,0

0,8

12,2

Fair Compensation1,4

Broadcasting56,3



OLAF RelatedServices

Authors Management

Theater-Lyrics


Protection of the rights of the Dor-Opera Section are:

• Works created specially for radio, television or other means of distance distribution, different from the fiction and assimilated works.

• Theatrical works (such as prose, productions for children, puppet and marionette shows, cabarets, theater circus shows) and musical theater (such as operettas, musicals, musical comedies).

• Works belonging to the following

genres: lyrical works, oratories, dramatic-musical works, ballets, choreographic works and similar, even when used partially or in concert form.

Authors ManagementTheater-Lyrics


Thetaer- Lyrics section €/mln

Costspersonnelagentsmanagement and operation depretiation and devaluationincome tax

Other revenues and incomes

Net operating costs

(€ 17,8)(€ 9,2)(€ 4,2)(€ 5,1)

(€ 0,5)€ 1,2

€ 8,2

(€ 9,6)

2016

€ 57,6 mlnDistributed 2016

Other Services

Home copy to author

Public representation

2,9

24,5

1,9

Public exercises21,0

Broadcasting15,8


2016 Theater - Lyrics(€/Mln)

Other Services

Home copy to author


2,9

24,5

1,9

Public exercises21,0

Broadcasting15,8




Authors Management

OLAF


The works of visual arts and the literary works are protected by the OLAF Section (Literary Works and Visual Arts), that also offers services of registration of unpublished works and unreleased software.

For the visual arts, SIAE exercises the right of reproduction on books, catalogs, magazines, posters, postcards, objects and miscellaneous materials, DVDs, CD-ROMs, and broadcasting rights over the Internet.

The OLAF Section also monitors the collection and distribution of royalty fees due to sales of original artist creations

such as paintings, collages, paintings, drawings, engravings, prints, lithographs, sculptures, tapestries, ceramics, works in glass, photographs, manuscripts.

Authors Management The Literary Works and Visual Arts Section (OLAF)


OLAF section €/mln

Costspersonnelagents management and operation depreciation and devaluationincome tax

Other incomes and revenues

Net operating costs

(€ 6,7)(€ 3,9)(€ 0,4)(€ 2,7)(€ 0,3)

€ 0,5

€ 4,1

(€ 2,7)

2016

€ 17 mlnDistributed 2016


Public lending right

Boradcasting

0,5

1,3

5,5

0,4

Reprographics

1,1

Home copy to authors

2,8

Droit de suite8,0

Other


2016 OLAF(€/Mln)


Public lending right

Boradcasting

0,5

1,3

5,5

0,4

Reprographics

1,1

Home copy to authors

2,8

Droit de suite8,0

Other


Music Cinema Theater lyrics


Authors Management

Related Services


Authors ManagementServices Related to Ownership Management

In addition to the activities related to the protection of the above-mentioned repertoires, SIAE carries out complementary services to the Ownership Management, among which:

• The protection of copyright-related rights, or the rights that the law recognizes regarding other subjects, however connected to the author of the work. They are artists, performers, producers of sound carriers, producers of cinematographic or audiovisual works, radio and television broadcasters, and so on.

1) Related rights

2) Administrative rights

3) Public registers

4) Tickets, dossiers and registers

5) Delegated collection services


Services related to the author management(€/mln)

Revenuesservices related to the author management institutional servicesother revenues and income

Costspersonnelagentsmanagement and operationdepreciation and devaluationincome tax

YEAR’S RESULT

€ 4,0€ 3,6

€0,1€0,3

€2,6€0,9€0,9€0,9€0,0

(€ 0,1)

€ 1,5

2016

• The proceeds from administrative rights paid for the complementary services for the ownership management

• The proceeds from the holdings of Public Registers (cinematographic and SW)

• The proceeds from the sale of tickets, files and registers with the SIAE trademark..

• Other collection services delegated by various entities (FIPE, AGIS, etc.).


Introduction

Beyond AuthorsManagement

HomeCopy

Endorsement Management

Solidarity Fund

Delegated Services

SilluminaProject


In addition to the other activities previously mentioned, SIAE performs a number of further business activities related to the services provided by law (Home Copy, Visualization Management, “SILLUMINA” Project, Solidarity Fund) and other Services performed by public and private entities.

Income statement 2016(€/mln)

Other activities

Ricavi e proventidelegated servicessegregated account& non-operative incomefinancial and patrimonial income

Total revenues

Costs and expensespersonnelagentsmanagement and operationdepretation and devaluation

Total costs and expensesincome tax

YEAR’S RESULT

30,419,6

1.551,5

19,211,1

18,80,7

49,80,90,8


Softwarealready published

SoftwarePublic Register

Registrationdemand

Software on support

Demand deposit

Software unpublished

SIAE Registration Demand

Software onsupport

Demanddeposit

Certificate


Home Copy

HomeCopy

Beyond Authors Management


Solidarity Fund

Delegated Services

SilluminaProject

Home Copy is the compensation that applies to blank “virgin” media, recording equipment, and memoirs in exchange for the possibility of making recordings of copyrighted works exclusively for private use.

For such use, the Italian law entitles eligible applicants a fair remuneration.

SIAE collects this fee and distributes it to the authors, producers and performers. For this service SIAE is responsible for the reimbursement of expenses incurred, provisionally determined at the beginning of the year and adjusted for the following

year on the basis of the analytical income statement of the incurred costs.

€

€€

Home CopyA compensation for blank media


Home copy €/mln

Revenuesexpenses reimbursementother revenues and incomes

Costspersonnelmanagement and operationdepretiation and devaluation

Income tax

Year’s result

5,24,40,8

4,61,92,50,1

0,2

0,4

2016

€ 128 mlnCollection 2016



EndorsementManagement

HomeCopy


Solidarity Fund

SilluminaProject

Delegated Services


Article 181 bis of Law n. 633/1941 establishes that on a carrier on a carrier containing computer or multimedia programs, as well as each carrier containing sounds, voices or moving images from works or parts of works protected by copyright law, meant for being commercialized or that are sold to be used for any reasons of for profit, must hold a SIAE’s sticker on it.

The SIAE Sticker is an authentication instrument and guarantee, both to be used by the Police and the consumer, who can so distinguish the legal from the pirated product, and allows to identify who produces or sells it.

The task of applying the sticker, that is the “endorsing” of the carriers pertains to SIAE, which is required to disclose the economic performance in a separate analytical report.

SIAE


Income statement GEVI (€/mln)

Revenuesendorsement rightsother revenues

Total revenuesCosts

personnelmanagement and operationother costs and expenses

Total costs

Operating resultsfinancial income and expenses

Result before taxesincome tax

Years’ result

3,30,84,1

1,31,9

0,23,4

0,70,00,70,20,5

2016


HomeCopy

Solidarity Fund

Sillumina Project

EndorsementManagament

Beyond Author Management

“Sillumina”Project

Delegated Services


The 2016 “Legge di Stabilità” foresees the distribution of 10% of SIAE’s private copying fees, in activities that promote the creativity and the national and international cultural promotion of young people.

So five grants were issued to companies, organizations and associations that submitted a project in support of authors, performers and interpreters under 35.

1

23

4 5

“Sillumina” ProjectFive grants for companies, institutions and associations


Income statement (€/mln)

Revenuesexpenses reimbursement Competition announcement 1- Urban peripheryexpenses reimbursement Competition announcement 2- New Operasexpenses reimbursement Competition announcement 3- Artistic residencies, professional training and cultural promotionexpenses reimbursement Competition announcement 4- Repertoire execution and international promotionexpenses reimbursement Competition announcement 5- Translation of national works and foreign distributioncultural activity expense reimbursement

Total revenuesCosts

servicesContribution

contribution to competition announcement 1 - Urban peripherycontribution to competition announcement 2 - New operascontribution to competition announcement 3 - Artistic residencies, professional training and cultural promotioncontribution to competition announcement 4- Repertoire execution and international promotioncontribution to competition announcement 5- Translation of national works and foreign distribution

Totale costsYear’s result

1,91,31,3

1,3

0,6

0,36,6

0,2

1,91,31,3

1,30,66,36,60,0

2016


SolidarityFund

HomeCopy

EndorsementManagement

SolidarityFund

SilluminaProject


Delegated Services


SIAE promotes forms of solidarity in favor of the SIAE member authors who suffer disadvantages due to their age, physical, psychological, economic, social or family circumstances.

The types of solidarity, are exclusively activities of charity and social assistance and, in any case, with the exclusion of promotional or provisional benefits of a direct or indirect nature.

Such activities in favor of the Members are implemented through a Fund constituted by the Company and

managed by the Company, with separate accounts, on behalf of the Members.

Solidarity FundIn favor of disadvantaged authors


Balance sheet Solidarity fund (€/mln)

Income statement Solidarity fund (€/mln)2016 2016

Activefixed assetscurrent assetsprepayment and accrued income

Active total

Passivefund for risks and chargesdebts

Passive totak

RevenuesCosts

management and operationpersonnelother costs

Total costs

Result before taxesincome tax

Year’s result

91,2,2,71,7

95,6

93,71,9

95,6

2,5

0,30,11,61,9

0,60,6

0,0



Delegated Services

HomeCopy

SolidarityFund


Delegated Services

SilluminaProject


Thanks to its widespread presence throughout the country and its institutional role in show business and entertainment, the SIAE carries out cooperative activities governed by agreements with:

- Internal Revenue Agency:• Control of the correct certification of

proceeds• Monitoring and control of show

business and entertainment activities

• Automated ticket office management

• Taxpayer information and assistance

- Customs and Monopoly Agency: • census and control of gaming

equipment with or without cash prizes

- Film Owners: • provision of data on film rental

payments owed by business owners

This includes also the activities related to credit management and strategic finance.

Delegated Services and Other Cultural and Strategic Activities


Delegated services and other cultural & strategic activity (€/mln)

Costspersonnelagentsmanagement and operationdepreciation and devaluation

Revenuesrevenue agencystate monopolies agencyrentalsother agreementsother revenues and income

income tax

Year’s result

35,817,5

11,16,60,6

35,628,8

0,21,1

0,35,2

(0,1)

0 ,1

2016


2016

Annual Report

Section 1 - SIAE’s JobInside:

www.siae.it

Section 2 - 2016 Balance

2/1 - Authors Management

2/2 - Beyond Authors Management

- Music- Cinema- Theater - Lyrics- OLAF- Related Services

- Home Copy- Endorsement Management - Sillumina Project- Solidarity Fund- Delegated Services

Società Italiana degli Autori ed EditoriViale della Letteratura, 30 · 00144 Rome (Italy)

www.siae.it

Documents

Annual Report 2016 - SIAENovember 2016, the roadshow continues to visit cities around Italy. Similar initiatives will be implemented to meet the authors and professionals of other