1.1MB - Pirelli

Related party disclosures
Required disclosures according to article 2359 of the Italian Civil code referring to Consob
Communication No. 97001574 of February 20, 1997 and No. 98015375 of February 27, 1998,
which deal with related party transactions among Group companies, are listed below
according to the effects of such transactions on the balance sheet and statement of income
of the consolidated financial statements at December 31, 1998.
As allowed by IAS 24, no disclosure is made of the effects deriving from the transactions
between Pirelli S.p.A. and its subsidiaries since they are already eliminated upon the
preparation of the consolidated financial statements.
All the transactions fall within the ordinary operations of the Group, governed by market
terms, and there are no transactions of an unusual and exceptional nature.
The following table presents the major transactions at December 31, 1998 that Pirelli S.p.A.
Group has entered into with the parent companies (Pirelli & C. A.p.A., Pirelli & C.
Luxembourg S.A., Société Internationale Pirelli S.p.A., Pirelli Partecipazioni Limited) and
the subsidiaries of the latter companies, which are included in the consolidation area of
Pirelli & C..
(in billions of lire)
Type of transaction With parent With subsidiaries Total
companies
of
Pirelli & C. A.p.A.
• Trade receivables and other 23.7) 0.4) 24.1)
• Trade payables and other (0.0) (7.1) (7.1)
• Financial receivables 501.2) 150.8) 652.0)
• Financial payables (57.5) (88.4) (145.9)
• Revenues for goods and services 2.0) 0.7) 2.7)
• Costs for goods and services (3.9) (14.8) (18.7)
• Financial income 5.3) 5.9) 11.2)
• Financial expenses (23.4) (3.5) (26.9)
Transactions of Pirelli S.p.A. and its subsidiaries with the parent companies mainly refer
to the following:
• trade receivables and other, relating to the transfer of tax receivables by Pirelli S.p.A.
and some of its subsidiaries to Pirelli & C. A.p.A., for purposes of compensation as
allowed by tax laws;
• financial receivables, relating to loans receivable by Pirelli Finance Holding N.V.
(subsidiary of Pirelli S.p.A.) from Pirelli & C. Luxembourg S.A. and receivables from
transactions on the current account by Pirelli Servizi Finanziari S.p.A. (subsidiary of
Pirelli S.p.A.) from Pirelli & C. A.p.A. and Pirelli Partecipazioni Limited and by Pirelli
Finance Holding N.V. from Société Internationale Pirelli S.p.A.;
• financial payables, relating to a deposit made by Société Internationale Pirelli S.p.A. to
Pirelli Finance Holding N.V. (subsidiary of Pirelli S.p.A.);
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