Sisal Annual Report 2011 - Permira

Inventories of finished goods and merchandise totalling EUR 9,134 thousand representprimarily telephone refill cards bought for resale to the public from VodafoneOmnitel N.V. (EUR 8,328 thousand) in accordance with the clauses of thecontract signed at the beginning of 2004 between Sisal S.p.A. and Vodafone. Theyalso include physical stocks of telephone and TV content refill cards of key operatorsof the sector, bought for resale to the public from Servizi in Rete 2001 S.p.A.(EUR 616 thousand) according to the clauses of contracts signed by this companywith Sisal S.p.A. in November 2005, stocks of telephone refill cards bought fromCarrefour Italia Mobile S.r.l. (EUR 46 thousand), in accordance with the clauses ofthe contract signed in 2007, and also stocks of telephone refill cards purchased forresale from the company Arabia Mobile Services S.r.l. (EUR 61 thousand) accordingto the clauses of the contract signed in 2011. Finally, they comprise stocks of overthe-counterproducts purchased for resale to the public from the Giochi PreziosiGroup (EUR 74 thousand) according to the clauses of the contracts signed in 2009and from Mattel Italy S.r.l. (EUR 9 thousand).The considerable increase over the prior year (approximately EUR 3.5 million) isdue principally to higher purchases of Vodafone recharge cards during the lastdays of the year to be used during the holidays between the end and beginningof the new year that were partially offset by a decrease in the inventories of overthe-counterproducts.Trade receivables (9)There are no foreign currency denominated trade receivables and the analysis bygeographical area is not significant as all receivables are to domestic operators.Trade receivables comprise the following:Trade receivables(in thousands of Euro)At12.31.2011At12.31.2010Receivables from points of sale 155,016 142,351Trade receivables from network 20,346 27,955Trade receivables from betting agencies 13,263 10,815Trade receivables from gaming customers 340 2,664Trade receivables from third parties 1,445 1,784Other trade receivables from third parties 1,121 21Doubtful receivables 33,485 23,856Provision for impairment of receivables (41,034) (32,364)Total 183,983 177,083Receivables from points of sale represent amounts due by the Group for the betsplaced on the last events of December 2011 and from the sales of non-gamingproducts in the same month. The increase from last year is particularly attributableto the higher betting volumes in the non-gaming sector and to the effect of a differentcalendar period for collections at the end of the year and a greater numberof outlets.80 SISAL ANNUAL REPORT 2011