REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

6. Overview of the group’s Business ...................................................................... 20
6.1 PRINCIPAL ACTIVITIES ............................................................................ 20
6.1.1 Strategy ............................................................................................. 20
6.1.2 Competitive advantages ............................................................................. 21
6.1.3 A network servicing the Group’s Internet and telephony operations .................................. 22
6.1.4 Description of the Group’s principal activities ...................................................... 30
6.2 PRINCIPAL MARKETS ............................................................................. 39
6.2.1 Internet access ...................................................................................... 39
6.2.2 Telephony operators ................................................................................ 41
6.3 EXCEPTIONAL FACTORS WHICH HAVE INFLUENCED THE GROUP’S PRINCIPAL ACTIVITIES OR
PRINCIPAL MARKETS .............................................................................. 42
6.4 EXTENT TO WHICH THE GROUP IS DEPENDENT ON PATENTS OR LICENSES, INDUSTRIAL,
COMMERCIAL OR FINANCIAL CONTRACTS OR NEW MANUFACTURING PROCESSES .................. 42
6.4.1 Dependence on patents and software licenses ....................................................... 42
6.4.2 Dependence on supply, industrial, commercial or financial agreements .............................. 42
6.4.3 Dependence on new operating processes ............................................................ 43
6.4.4 Dependence on the Group’s main customers and suppliers .......................................... 43
6.5 BASIS FOR STATEMENTS MADE BY THE GROUP REGARDING ITS COMPETITIVE POSITION ............ 44
6.6 REGULATORY SITUATION ......................................................................... 44
6.6.1 Regulation of electronic communications networks and services ..................................... 44
6.6.2 Regulation of the content of electronic communications .............................................. 55
7. Organizational structure ............................................................................... 60
7.1 BRIEF DESCRIPTION OF THE GROUP ............................................................... 60
7.2 ORGANIZATION CHART ........................................................................... 61
8. Property, plant and equipment ......................................................................... 62
8.1 EXISTING OR PLANNED MATERIAL TANGIBLE FIXED ASSETS ....................................... 62
8.2 ENVIRONMENTAL ISSUES THAT MAY AFFECT THE COMPANY’S UTILIZATION OF THE TANGIBLE
FIXED ASSETS ..................................................................................... 62
9. Operating and financial review ......................................................................... 63
9.1 KEY CONSOLIDATED FINANCIAL DATA ............................................................ 63
10. Capital resources ...................................................................................... 76
11. Research and development, patents and licenses ...................................................... 77
11.1 RESEARCH AND DEVELOPMENT ................................................................... 77
11.2 INTELLECTUAL PROPERTY ........................................................................ 77
11.2.1 Patents ............................................................................................. 77
11.2.2 Trademarks ......................................................................................... 77
12. Trend information ..................................................................................... 78
13. Profit forecasts or estimates ........................................................................... 79
14. Administrative, management and supervisory bodies and senior management ...................... 80
14.1 MEMBERS OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES ................... 80
14.1.1 Composition of the Board of Directors .............................................................. 80
14.1.2 Composition of the senior management team ........................................................ 83
14.2 ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES AND SENIOR MANAGEMENT
CONFLICTS OF INTEREST .......................................................................... 84
14.3 DIRECTORS’ AND SENIOR MANAGERS’ INTERESTS IN THE COMPANY AND THE GROUP ............. 84
15. Compensation and benefits ............................................................................ 86
15.1 TOTAL AMOUNT OF COMPENSATION PAID AND BENEFITS IN KIND GRANTED TO DIRECTORS AND
SENIOR MANAGERS ............................................................................... 86
15.1.1 Directors’ fees ...................................................................................... 86
15.1.2 Compensation paid and benefits in kind granted to senior managers during fiscal 2007 .............. 86
15.1.3 Change in total compensation paid to members of the senior management team in the past three
fiscal years .......................................................................................... 86
15.2 STOCK OPTIONS GRANTED TO OR EXERCISED BY CORPORATE OFFICERS IN 2007 ................... 87
15.3 AGREEMENTS ENTERED INTO BY THE COMPANY OR MEMBERS OF THE GROUP WITH THE
COMPANY’S SENIOR MANAGERS OR PRINCIPAL SHAREHOLDERS ................................... 87
15.4 LOANS AND GUARANTEES GRANTED TO SENIOR MANAGERS ....................................... 87
16. Functioning of the company’s administrative and management bodies .............................. 88
16.1 ORGANIZATION OF THE COMPANY’S ADMINISTRATIVE AND MANAGEMENT BODIES ................ 88
16.1.1 Organization of the Board of Directors .............................................................. 88
16.1.2 Senior Management (Article 19 of the bylaws) ....................................................... 90
16.1.3 Meetings of the Board of Directors .................................................................. 91