Management Report - SIAE · Gramitto Ricci Alfredo ... Galletti Anna Lavezzi Mario Minellono...

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SIAE Società Italiana Autori ed Editori

Management Report

31 DECEMBER 2015

134th BUDGET

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CONTENTS

SIAE CORPORATE STRUCTURE AND AGENCIES page 4

MANAGEMENT REPORT page 6

FINANCIAL STATEMENTS page 66

Assets page 68 Liabilites page 70 Income statement page 72

FINANCIAL REPORT page 77

Status page 79 Explanatory notes for the Budget page 79 Accounting standards and valuation criteria page 80

BALANCE SHEET page 86 ACTIVE page 88

B) Assets page 88 C) Current assets page 91 D) Prepayments and accrued income page 98

PASSIVE page 99

A) Net Assets page 99 B) Provisions for risks and charges page 101 C) Severance indemnities page 103 D) Debts page 104 E) Accrued liabilities page 106 Memorandum accounts page 107

INCOME STATEMENT page 108

A) Producation valuation page 111 B) Production costs page 113 C) Income and expenses page 118 D) Value adjustments to financial assets page 118 E) Extraordinary income and page 119

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MANAGEMENT REPORT 2015

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Taxes page 119

SEPARATE ACCOUNTS page 122

SOLIDARITY FUND page 125

ENDORSEMENT MANAGEMENT page 134

FINANCIAL STATEMENT page 141

FINANCIAL AVAILABILITY REPORT page 144

APPENDICES page 147

Appendix 1 – Lands and Buildings as of 31.12.2015 page 149 Appendix 2 – Financial Assets as of 31.12.2015 page 150 Appendix 3 – Summary Table of Receipts for 2015 page 151

REPORTS page 155

Auditing Firm’s Report page 156 Board of Auditor’s Report page 159

SECTIONAL ANALYTICAL ACCOUNTING page 165

SIAE IN ITALY AND THE WORLD page 175

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SIAE CORPORATE STRUCTURE AND BODIES At the time of the approval of the Annual Budget Report 2015

PRESIDENT Sugar Filippo Nicola

MANAGEMENT BOARD Monti Arduini Federico Proietti Biagio Purgatori Andrea Scordino Luca Domenico

SUPERVISORY BOARD Micalizzi Franco Franchini Paolo Angrisano Alessandro Barbagallo Angelo Biocca Antonino Bolelli Ferrera Antonella Bonizzoni Roberto Brunetta Caprini Linda Buja Claudio Cinque Massimo Costa Vittorio Daldello Franco De Martino Giuseppe De Siervo Luigi Elmi Guido Gramitto Ricci Alfredo Lavezzi Mario Leonardi Piero

Maisano Michele Mauri Pierangelo Maxia Maria Grazia Minellono Cristiano Narici Ilaria Anna Ostali Piero Giancarlo Perilli Paola Piovani Nicola Polillo Marco Prudente Oscar Razzini Roberto Rizzi Antonella Solbiati Alessandro Tommaso Vito Verona Tonino Villevieille Bideri Silvia

ADVISORY BOARDS MUSIC SECTION CINEMA SECTION Benini Massimo Buja Claudio Chiaravalle Valeriano Corsi Paolo Costa Vittorio Fedele Francesco Saverio Galletti Anna Lavezzi Mario Minellono Cristiano Razzini Roberto

Alberico Michele Barbanente Mariangela Biocca Antonino Conforti Michele Koch Giovanna Lusuardi Nicola Gaudino Lucio

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DOR SECTION LYRICS SECTION Amurri Valentina Brunetta Caprini Linda Cavosi Roberto Cinque Massimo D’Arborio Paola Di Stefano Riccardo Flora Giovanna Longoni Gianmario

Battistelli Giorgio Cannito Luciano Moro Laura Narici Ilaria Anna Ostinelli Cristiano Savasta Alessandro

OLAF SECTION Bolelli Ferrera Antonella Fallai Paolo Foschini Cristina Hoepli Giovanni Ulrico Carlo Paolinelli Mario Piccarolo Laura

AUDITOR’S BOARD INTERNAL REVIEW Belmonte Laura Fiori Giovanni Nova Massimiliano Supplenti: De Buglio Massimo Romani Barbara

Scordino Luca Domenico

GENERAL MANAGER Blandini Gaetano

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Management Report Management Report 2015

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Introduction

On 19 March 2015 the SIAE Supervisory Board, chaired by Maestro Franco Micalizzi, appointed Filippo Sugar as Chairman of the company’s Management Board.

The appointment, as required by law, was formalized by decree of the President of the Republic on 12 October 2015.

President Sugar, in the hearings before the Cultural Commission of the Chamber of Deputies and the Senate, outlined the international environment in which collecting companies are operating, the risks related to protection of copyright, the innovations already realized and the main objectives underlying the company’s mandate.

It’s difficult for a complex establishment such as the SIAE to shake off the stereotypically negative perception of tax collection agencies as being a technologically backward. A great deal, in fact a very great deal, has been done and there is still much to do. It is, however, also true that SIAE today is radically different from that of the past and is committed to finally being among the leading companies in the industry, and at European and Global levels.

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In comparison with foreign collecting companies, SIAE is no longer losing. Far from it. A study by the international consulting firm Ovum (albeit on 2014 data) showed that SIAE occupies the 7th place among the top 20 collecting companies in the world in terms of collection.

Rank Company (Country, currency) LCm 2013 LCm 2014 $m 2014 Variation % 1 SACEM (France, EUR ) 834.8 829.6 1,102.8 -0.6

2 PRS (UK, EUR ) 677.3 667.3 1,100.0 -1.5

3 GEMA (Germany, EUR ) 786.3 823.6 1,094.8 4.7

4 JASRAC (Japan, JPY) 110,845.6 112,494.8 1,068.7 1.5

5 BMI (USA, USD) 977.0 1,013.0 1,013.0 3.7

6 ASCAP (USA, USD) 944.4 1,001.4 1,001.4 6.0

7 SIAE (Italy, EUR) 522.7 524.3 697.0 0.3

8 ECAD (Brasil, BRL) 1,190.1 1,219.9 519.9 2.5

9 SGAE (Spain, EUR) 259.8 260.9 346.8 0.4

10 APRA/AMCOS (Australia, AUD) 270.6 282.8 290.5 4.5

11 SOCAN (Canada, CAD) 276.4 299.5 270.5 8.4

12 BUMA/STEMRA (Holland, EUR) 180.5 190.0 252.6 5.3

13 STIM (Sweden, SKR) 1,584.1 1,701.9 248.8 7.4

14 SABAM (Belgium, EUR) 145.7 157.4 209.2 8.0

15 SUISA (Switzerland, CHF) 145.0 151.6 165.9 4.6

16 KODA (Denmark, DKR) 768.0 826.3 147.3 7.6

17 RAO (Russia, RUB) 4,366.6 4,586.2 121.5 5.0

18 AKM (Austria, EUR) 95.4 98.1 130.4 2.8

19 ZAIKS (Poland, PLN) 351.9 345.1 109.5 -1.9

20 TEOSTO (Finland, EUR) 66.0 65.4 86.9 -0.9

The results achieved in 2015 confirm the continued growth of the company and its potential in the global landscape. On the other hand, if one were to use the GDP of countries in which individual companies operate as a basis of comparison, SIAE would be even more likely to emerge as a copyright collecting firm that is now healthy and able to face the challenges that copyright deserves to win.

To these ends, it is hoped that any discussion around copyright can be addressed with composure and with the aim not just to demolish, but to improve and build together the future of copyright.

SIAE, moreover, is and remains a tool. What really matters is the defence of copyright itself. The protagonist is, and must be, copyright law, for all those working in the creative sphere, and at the same time as a key economic engine for our country.

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During 2015, SIAE became the promoter of the first study on the economic value of the cultural and creative industry in Italy. The study (www.italiacreativa.eu) demonstrates the role and weight that culture plays in the economy.

The creative sector is worth € 47 billion and employs nearly 1 million people.

As summed up by the Minister of Cultural Heritage and Activities and Tourism, Dario Franceschini, this is a sector characterized by strong innovation, which employs younger people and more women than other sectors of domestic industry, capable of generating a value that goes beyond simple economic revenues. Creative Italy feeds off the tangible and intangible heritage that simultaneously produces and constitutes the very soul of our country, that for which Italy is recognized, valued and appreciated throughout the world: architecture, cinema, literature, music, video games, animation, visual arts and advertising, to which are added fashion and design, although still not calculated in this first edition of the report. It is our duty to strive to promote the maximum expression from each of these industries, ensuring the correct market conditions, combating piracy and counterfeiting, and recognizing the right to fair payment for those who work with their talents.

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The key words of the Minister also read like a guideline for SIAE’s new course.

.

Exactly these principles must accompany the interpretation of the environment in which SIAE operates, the results it achieved in 2015 and the initiatives that should mark the progression in change and thus the future.

Strong innovation

More youth and

more women

Fair payment for those who work in the creative

sphere

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SIAE today

Structure:

- 1265 employees

- 1 Head Office in Rome

- 472 Agents

- 10 Region/Inter-Regional Offices

- 29 Branches

Economic data

- €782m in turnover (+100m, equiv. to +14% on 2014)

- €724m in Copyright and other intermediary services (+€102m, + 16% on 2014)

- €617m rights allocated/paid to those entitled (including Private Copy); +€ 57m, or + 10% on 2014

- 15.3% average commission on receipts (-0.3% on 2014)

- €70m in unpaid taxes to the tax authorities (IVA (VAT), IRES, Substitute)

- €1m of solidarity amounts paid

- €1.5m cultural/social grants

Copyright Management:

- 83,000 Authors and Publishers associated with SIAE

- 12 million works managed directly

- 45 million works managed through reciprocal representation contracts

- 120 agreements with foreign companies for the management of the SIAE repertoire internationally

- 1.2 million licensing agreements (public performance and representation, background music, TV, online radio, CD/DVD, etc.)

- 500,000 users of the SIAE repertoire in jurisdiction

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SIAE Governance is entrusted fully to Boards elected by the Members (the General Meeting, the Supervisory Board, the Management Board and Sub-Committees). All the choices in the strategic and administrative areas of the Company come from its membership base..

It worth noting that, in terms of allocation of receipts:

- the timing and criteria that govern it are approved by the Management Board on the advice of the Sub-Committee composed of Members;

- SIAE respects the same timing followed by foreign sister organisations;

- at the request of interested parties SIAE assigns advances, allowing authors and publishers to obtain payment for the copyright in advance of payment.

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Results achieved in 2015

Actions taken in recent years have enabled us to achieve results of full SIAE restoration.

2015 has followed the same direction, with an increasingly committed look towards more investment in the future.

Finalised or confirmed:

- the conclusion of important agreements, among which is noted the agreement with SKY (2015) , exceeding the extensions of the system; licenses are finally aligned to the actual uses of the repertoire and it has resulted in a significant increase in receipts for Cinema (fair compensation) and Music;

- the reduction of fees associated with the stabilization of a commission average (15.3%) that allows SIAE to be perfectly in step with (and sometimes ahead of) other European collecting companies;

- the reversal of the trend of growing human resources costs through: o a prudent Redundancy bonus policy; o the definition of employment contracts; o agreements with agents;

- the safeguarding of employment levels and the rejuvenation of offices; in the month of December 2015 25 young employees were recruited after a period of internship.

At the same time, the following goals continue to be pursued:

- improving efficiency in every process of the company;

- green-lighting high-tech projects directed towards the digitisation process to facilitate the use of services by the members and users;

- the starting of a process of modernization and social communication to clarify the real function of SIAE;

- supporting social and cultural activities.

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As mentioned, 2015’s results confirm the company's growth and the sharp turnaround from the past:

- 2015 marks an increase in the total sales of approximately €100m compared with 2014 (also positive);

- 2015 marks an increase (of almost €5m) of deposits from copyright equivalent to +9.5% compared to 2014, solidifying and expanding the previous year's recovery after years of evident suffering.

In the 2015/2014 comparison, all invoiced copyright collections record positive growth: +3% for performance, representation and acting +23% for broadcast, +4.3% for mechanical rights, +21.6% for other banking services (droit de suite), +1.6% for collection from abroad +47.4% for multimedia, +1.1% for public exercises.

The forecasts for actual challenges contained in Budget 2015 are thus confirmed and even exceeded, making one exception for a marginal difference in the broadcasting sector (despite the positive results of the segment in question, the postponement until 2016 of the Mediaset agreement resulted in a slight difference from the forecast).

490

500

510

520

530

540

550

560

570

580

2009 2010 2011 2012 2013 2014 2015

Andamento degli Incassi per Diritto d'Autore2009-2015

€ milioni

Performance of Copyright Collections

2009-2015 EUR (millions)

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Regarding Budget 2015, it is worth highlighting in particular the excellent results of Multimedia and Live Production sectors.

- 50.000.000 100.000.000 150.000.000 200.000.000 250.000.000 300.000.000

Execution/Representation/Recitation

Broadcasting

Reproduction rights

Intermediation services

Abroad

Public events

Multimedia

Incassi per diritto d'Autore

Budget 2015

Final 2015

Final 2014

Copyright Collections

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Overall economic and financial situation

The financial year result amounted to €0.3 million, and it reflects the strategic actions taken during the year. As mentioned above, SIAE has been able to focus attention on investment and efficiency gains through extensive company reorganization initiatives.

The result has been purposely restricted to make room:

- to increase the corporate restructuring fund to support the Strategic Plan (+€4m) reaching a total of €20m;

- investment of €12.7m in support of the Strategic Plan for modernization of the company, both for the completion of the 2013-2015 Plan, and especially for the activation of that for 2015-2016 which focuses on the Digital Agenda and on the best accessibility and communications (including the new SIAE site). In this context, the costs incurred are:

€8m (including costs and investments) for analysis and IT development related to the projects highlighted below;

€4.7m for communications, new SIAE.it website and new strategic project.

The overall comparison with the Budget data shows the following trends:

Ares Online musical programmes

Optimisation of S.UN SAP

Payment platform

Author and Editor Portal

Online subscriptions

Online deposits

IT Evolution

Single registry

Audiovisual multimedia sharing Begin database development Automatic encoding project

Tablet phase 3 Professional Planners Portal

Private Copy Wednesday Live Sharon

Recovery previous Digital Service Provider Online assistance Ulisse phase 3

ULISSE phase 2 Parties Portal private Project "Programmi Puliti"

DRM Background Music Portal Galileo

PROGETTI PIANO STRATEGICO 2013-2015 DIGITAL AGENDA NEW PROJECTS

ERT SIAE.IT Project " Prometeo"

YEAR 2015

INCOME STATEMENT FORECAST FINAL DELTA

€ millions Approval Nov. 2014

Production Value 163,0 165,2 2,2

Production Costs 178,9 184,5 5,6

Difference between Production Value and Costs (15,9) (19,3) (3,4)

Finanical Management

- income and expenses 27,2 24,9 (2,2)

Extraordinary items 1,8 (3,8) (5,6)

Gross results: 13,1 1,9 (11,2)

Income tax 5,7 1,6 (4,1)

Year's results 7,4 0,3 (7,1)

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More production revenues (in relation to collections and revenues on copyright) which absorbed the increase in investments (€12.7m constituting costs in the SIAE account and characterized by the impact of modernization measures already illustrated above).

Financial management in line with the forecast when you consider all items as related to it.

Financial income includes dividends of the Norma Fund. Given a 2014 balance sheet profit of approximately €5.8m, €2.5m has been allocated. Net undistributed attributable income refers to gains on valuations of properties not realized and, therefore, prudently was not assigned. Profits realized by the Norma Fund in 2015 (approximately €3.5m) will be distributed in the course of 2016..

Extraordinary items, net of financial items just described, includes the increase of the (not included in the forecast) of the corporate restructuring fund for €4.4m. The conferment of additional property to the Norma Fund was postponed (happening instead in 2016) and was therefore the gain indicated by the forecast was not realised.

Within taxes significant savings are evident, and they were achieved mainly thanks to the regulatory updates regarding IRAP which resulted in the elimination of the tax base.

Financial Management Forecast 2015 Final 2015

Incomes and Expenses 24,6 18,4

Writedowns, Plus-Capital Losses 4,7

SIAE Total 24,6 23,1

Solidarity Fund 2,6 1,8

Balance 27,2 24,9

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The result of SIAE business

As is well understood, the SIAE is structured as set forth by the Civil Code for a joint stock company. The mode of data representation, however, does not show the actual production cycle SIAE that differs from that of normal industrial companies. SIAE is in fact characterized by a reversed cycle that sees revenue precede outputs, making the economic parameter A-B (difference between value and cost of production) little or insignificant. For this reason it is deemed necessary to reclassify the income statement so that it can provide the reader with the most accurate information on the financial results generated by the business and strategic actions implemented during the year.

The diagram below, in any case, takes its cue from the annual reports of the main European collecting companies.

OPERATIONAL MANAGEMENT 2015 2014

Revenues and incomes 188,62 195,30

Copyright: fees and reimbursement of expenses 100,70 93,91

Copyright: reduction of commissions 5,00 4,70

Author services 9,36 11,71

Revenue for other services and incomes 48,66 49,61

Default interest and penalties on late payments DD.AA. 6,18 6,62

Financial income 18,72 28,75

Costs and Expenses 169,14 175,21

Personnel 85,42 87,64

Management and operation 77,62 78,00

Other charges 3,80 5,67

Financial charges 0,30 1,65

Depreciation 2,00 2,25

Operational Management result 19,49 20,10

STRATEGIC MANAGEMENT

Gains/losses on disposal of financial fixed assets 11,80 4,96

Write-ups/write-downs (7,00) 0,02

Reduced commissions on collections (5,00) (4,70)

Strategic plan (12,70) (5,00)

Corporate reorganization costs (4,40) (9,42)

Cultural and social activities (1,50) (1,66)

Strategic Management balance (18,80) (15,80)

Business Result 0,69 4,30

Extraordinary items 0,86 0,19

Gross result 1,55 4,49

Income tax 1,24 1,03

Solidarity fund 0,00 0,00

Year's Results 0,31 3,46

Year 2015 – Income Statement (reclassified) (€ millions)

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Revenue and income from banking activities include, in addition to the Production Value, realised financial income. These include the return on current investments resulting from sums pending allocation, as well as those related to medium/long-term loans. They are reported separately from the economic effects of commission reduction measures, which are handled by strategic management.

The operational management shows increased revenues as part of copyright and a decrease in financial income reflecting the particularly compressed trend of interest rates.

Operating costs refer to the costs of production excluding evaluative items (revaluations and asset impairment charges) and charges for activities in support of culture and society (table in the relevant paragraph). In this context there was a generalized and appreciable reduction in costs (-€6m on 2014).

The operating margin effectively expresses the current generation’s performance.

The margin generated, approximately €19.5m, made it possible, together with realized capital gains, to support investments (expenses), for strategic goals (reorganization, strategic plan, cultural and social activities, reduced commissions, etc.). The value is in line with the previous year as cost reductions offset the income.

The balance of strategic management increased by €3m compared to 2014. It once again highlights the expenses related to the Strategic Plan (costs and IT investments, services and communication expenses) which recorded a significant increase (+€7.7m on 2014) due to the conclusion of the 2013-2015 Plan and the start of the 2015-2016 Plan (Digital agenda, communication etc.).

The result of the business totalled around €0.7m and determines an operating surplus of €0.3m after absorbing the residual extraordinary items and taxes.

The reclassified Income Statement is more consistent with the real activities of the company whose production cycle sees the proceeds (net of allocated SIAE shares) wait for the allocation phase, which is possible only once the precise identification of individual eligibility has been performed.

It should be also pointed out that the debt for members (or even the relative increase) is actually related to positive factors such as the increase of receipts and allocations

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The following table shows that the increase of €54m debt on 2014 corresponds to an increase in the rights to be distributed (+€57m on 2014). In fact during the year rights allocated analytically have increased.

In addition it is noted that SIAE corresponds large advances to stakeholders (for 2015 almost €127m only from Music).

As was the case in 2014 report it is useful to draw attention to the characteristics of typical SIAE activity.

The company during each year collects copyright in different shapes and types of use. These are receipt flows from different sources specified below, within each year there will be irregular curves that cannot be predicted with certainty (because they depend on effective uses of works subject to the protection of copyright).

Still, before we can consider sharing any collections:

On the one hand,

- SIAE has to wait for its consolidation (in principle on an annual basis or at least significant interim periods), as the said flows can also result in negative adjustments (in the case of license agreements with broadcasters, subject to precisely such annual adjustment according to the total turnover and the approval and publication of financial reports);

On the other hand,

- SIAE also has to perform with operations in a continuous loop (being subject to the aforementioned continuous flows of receipts), and the attribution of each receipt to the authorial repertoire which generated it;

On the other hand again,

- SIAE must follow (for each type of law) the defined allocation criteria; the latter being an operation for the membership base through the so-called allocation of individual ordinances Sub-Committee.

It is useful to underline that the methods of operation described above take place in a continuous cycle during each year (several times during the year) and - as is obvious - involving the financial resources of ready funds. The following chart visually summarizes the SIAE operation,

€ millions 2015 2014 Delta

Collected copyrights 570,88 521,00 49,89

Private Copy (Q.Authors) 54,59 39,80 14,79

Commissions (95,58) (87,72) (7,86)

Rights to be distributed 529,89 473,08 56,81

Net Debts as of 31.12 751,47 696,93 54,54

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The same graph shows that all sources of revenues (those normally classified in the value of production and those belonging to the management of financial resources) are elements inherent to the same production SIAE cycle and belonging to the so-called current activities or activities that, according to best practice, are continually renewed with a series of production cycles, and whose size is directly influenced by the repetitive tasks of purchasing, production and sales. The only distinction in the case SIAE is that the industrial cycle is reversed and is represented by the phases of acquisition and management of mandates, collection of copyright, and distribution of receipts.

attribution to the repertoire

definition of the allocation criteria

allocation to those eligible

collection and management of

financial resourcesreceipts

Payment to authors and editors

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Moreover, it should be stressed that even in comparison with the main foreign collecting companies, SIAE is among those with the highest capacity of allocations in relation to the amount collected (data from 2014).

SIAE

100%90%

74%81%

86%

Totale SIAE SACEM GEMA PRS

2014 data

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Context: Italy

The results in the comments above seem all the more significant in relation to the economic context in which SIAE operates. The Italian economy, indeed, presents positive signals but has not established itself as having definitively overcome the economic crisis witnessed in recent years. There remain elements of uncertainty that still affect the growth in supply of goods and services. The Italian GDP is still far from that of main European comparisons, despite benefiting from an increase in consumption accompanied by a slight recovery in investment. On the side of domestic demand there have been improvements in domestic consumption (which has contributed to growth of 0.5% GDP in 2015). Increases are also evident in real wages and the purchasing power of households (ISTAT - Report IV quarter 2015 Income and Savings of households and corporate profits). In particular:

- gross disposable income of households was up, in real terms, by 0.9%;

- the corresponding purchasing power increased by 0.8%, confirming the trend already registered in the preceding year;

- household spending on final consumption (which also includes the expenditure for forms of recreation and entertainment) confirmed the trend with an increase of 1%.

In 2015, GDP at market prices amounted to €1,636,372 million, an increase in volume by 0.8%, registering an increase after three consecutive years of declines. In the same period, GDP increased by 0.2% in quarterly terms in the United States and France and 0.5% in the UK. In trend terms, there was an increase of 1.9% in the UK, 1.8% in the US and 1.3% in France.

There is a cyclical increase in economic confidence (+1.1), the inflation rate increased by 0.3 and, in economic terms, youth unemployment fell (-0.1) as did the trend rate to a greater extent (-1.3).

Overall, this should be seen as basically positive, despite the failures of firms in Italy which, while coming in at about 40 shutdowns per day, was a decrease compared to 2014.

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The state and the evolution of the international copyright market

The state and the evolution of the international copyright market

Internationally, the increasingly sharp thrust is in the direction of centralized management of complex repertoires (e.g. Music). This is why an aggregated management guarantees rights-holders more effective and coordinated protection, and in reality, actually helps users (One Stop Shop).

Even in the US, the tendency is to aggregate (see the position of the US Copyright Office in February 2015: the Administration should pursue changes to the legal framework to facilitate the aggregation of licenses).

And if already in the analogue world there has been a natural boost towards business aggregation, this direction becomes essential in the digital world, which by its nature is global and therefore able to circumvent copyrights (and of course the original repertoires) if not managed in aggregate..

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Directive 2014/26 /EU

The protagonist of the debate around the copyright (in 2015 and in early 2016) is undoubtedly the Directive 2014/26/EU of 26 February 2014 on the collective management of copyright and related rights, and the granting of multi-territory licenses for the rights of musical works for online use in the internal market.

Moreover, the accompanying reporting was sometimes rushed and sometimes manipulated.

The Directive, in fact, confirms the direction taken by SIAE and, if possible, strengthens the belief in the correctness of the efforts made to date.

The Directive is aimed at harmonising national laws on two main themes:

1. the structure and governance of collective management of copyright and related rights (according to the rules of transparency, fairness and simplification in relations with rightholders and users);

2. the promotion of multi-territorial licensing of repertoires incentivising aggregation of collecting societies.

It is important, however, to emphasize that, under the principle of subsidiarity enshrined in the Treaty on the Functioning of the European Union (TFEU), even in the sense of the Directive, it remains perfectly within the choice of individual Member States to determine the legal nature of their companies of collective management. The European Court of Justice, in its judgment of 27 February 2014 (Case C-351/12 OAS), has corroborated the legitimacy of the European law on the choice of a Member State to attribute to a collecting company the exclusive intermediation of copyright.

In Italy, it is a fundamental tool to promote and defend the rights of Italian creators also within international hubs that are already developed or in the process of further evolution in Italy. Above all, it is perfectly consistent with the aggregation of repertoires indicated by the Directive (multi-territorial licenses issued by single subjects - One Stop Shop).

The future is exactly these aggregation hubs that share databases and licensing, and certainly not the destruction of copyright, far worse at both the national level and on the basis of theoretical models that do not exist elsewhere or have been tried and then abandoned.

SIAE, moreover, is a company that does not seek profit, because its only function is not to produce profits to be delivered to minority shareholders (compared to the rest of the sector), but is exclusively to distribute to members all copyrights collected. And this too is a key essential reading in the interpretation of the results achieved from year to year.

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The direction of change for SIAE

In this framework, SIAE has become even more committed to the new Strategic Plan and the launch of a new Digital Agenda full of events.

With improving results and stable accounts, SIAE is today focused on:

- adapting every dimension of the membership and administrative experience with and in the Company; SIAE has also already announced its own initiative that anticipated certain provisions contained in the Directive, including transparency reporting;

- intensifying the Company's digitization program;

- simplifying access to the repertoire by members and users through online platforms for applications, the filing of works, issuing permits/licenses of use and the payment of claims;

- simplifying the charging system to be published on the company website;

- accelerating the allocation of rights to members (despite the fact that the current SIAE allocation time-period is already in line with the parameters set by the Directive);

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- increasing analytical allocation through advanced technological solutions; to this end SIAE has entered into an agreement with an international company (BMAT) that specializes in the best automatic recognition of works used by the media:

- increasing efficiency in order to gradually reduce the cost to members for services rendered; SIAE from 2014 has reduced the membership’s share of certain budgetary items of the repertoire and in 2015 on music and voice broadcasting DOR, reducing the costs for members by €5m:

- countering the false programming phenomena with the help of automated tools focusing on ad hoc algorithms.

REDUCING SIAE’S GROUPED FEES

Repertoire Type of ReceiptsPrevious

rates

New

rates

Lower

Commisions

Classes I-II-IV 22% 20,8% 2,9

Receipts from public broadcasts - TV, radio

and piped music (TV, RF and FD in

PP.EE.)

22% 20,8% 0,3

Class III - Broadcast 14% 12,7% 1,5

Dor Broadcast 14% 12% 0,3

(amounts expressed in EUR millions) Total 5,0

Music

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- supporting social and cultural activities; SIAE, unlike other collecting companies who solely collect copyrights, delivers at its own expense subsidies to the most needy and contributions to promote cultural initiatives;

As part of this renewal plan a series of initiatives have already been implemented aimed at promoting the repertoire, with particular attention to young people:

authors under 31 and start-up publishing already enjoy free subscription;

discounts are available for venue operators who organize, in their own spaces (200 seated maximum capacity, free entry and optional drink), a live music Wednesday for young bands and songwriters under 31 enrolled in the SIAE who perform original music.

The new Digital Agenda 2015-2016

The year 2015 was characterized, on the one hand, by the completion of work proposed in the company’s Strategic Plan 2013-2015 but, secondly, by the start of a massive digitization program.

The new SIAE Digital Agenda is full of events and new technological solutions that will be implemented by the end of 2016.

The three lines of action on which the Digital Agenda is based are:

- redefinition of the service model;

- innovation in services and tariffs;

- the start of the development of a new technological architecture.

Redefinition of the service model: the new www.siae.it company website has been realised; completely revised in size, highly enriched in terms of available content that efficient and modern. The success of the new corporate website SIAE is evidenced by the one million visits recorded in just five and a half months since the launch in mid-July to the end of the year. At the same time a centralized service was introduced, via telephone and email, with two unique numbers and email addresses respectively allocated to members and agents, as well as users. In September official corporate social network channels were launched on Facebook, Twitter and Linkedin which quickly registered large followings.

The Private Parties Portal was completed, allowing anyone to register online all the paperwork necessary for making payments relating to fair payment and licenses for copyright for private parties with music playback.

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The construction of other service portals was initiated, which will be activated in 2016 and apply to the renewal of ambient music subscriptions, automatic compilation of music programs and revisions, with the addition of new portal functions for professional event planners, and a complete redesign of the portal for Authors and Publishers, with subscription capabilities and online storage of works .

Services innovation and simplification of tariffs: the membership fee for young people up to 30 years of age has been abolished and the www.giovani.SIAE.it site has been created, dedicated to young authors, publishers and startups on the market for less than two years for free subscription to relevant SIAE services.

Development of a new technological architecture: the development project for a new documentation system for audiovisual works has been completed, as has the migration of the documentation archive for these works to the new technological environment that fully meets the traceability and transparency requirements of the author cycle. To cope with the sharp increase in the repertoire uses on digital channels (e.g. YouTube, Spotify ...) and to improve the coding of uses on radio and television channels, research services have been boosted, as well as in processing usage reports, through the launch of a back-office service jointly developed with the French collecting company SACEM and the Spanish SGAE within the Harmony hub.

In 2016 we will be completing other important projects of the Digital Agenda relating to the additional service portals mentioned above, together with digital signature and electronic payment platforms that will enable the simplification of the registration process, online filing for (and obtaining of) permits and licenses for the use of the repertoire.

Organisational structure: controls and transparency

Continuing in the direction initiated in late 2013 and in 2014, SIAE in 2015 has put at full capacity a modern internal control system, capable of monitoring the risks to which the company is exposed.

The internal control system is an integral part of the Model 231/01 (the Supervisory Board is now chaired by a magistrate of the Court of Auditors) and of the same plan for corruption prevention and the company's transparency.

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During 2015, and in early 2016, the Office of Internal Audit (UCI) has implemented its mandate at the request of the Corporate Agencies and Control whose main results are summarized below .

During 2016, the UCI will continue to perform the activities of its mandate, for the construction and the gradual strengthening of the Control System of the Company, in particular by focusing on what is reported in the following figure.

The intervention plan of analysis and verification of the Company's Internal Control System (hereinafter also measuring the intervention plan) - defined with a risk-based approach - is approved by the SIAE Management Board and identifies with the three-year horizon, the priority areas to investigate.

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The intervention plan, originally approved in May 2014, has recently been updated and integrated –with some clarifications required by the Audit Committee and by the Supervisory Board - by the Management Board at its meeting on 9 March 2016.

In particular, planned actions which: (i) will carry out the analysis, description and verification of the company’s compliance with the processes of operational risk, reliability and of reporting and compliance; (ii) will represent an investigative focus on issues with cross-relevance, such as: Territorial Network, Licensing, Distribution, Finance and Budget; (iii) will integrate, monitor implementation of content control tools in: i) Model pursuant to Legislative Decree no. 231/2001 and ii) Corruption Prevention and Transparency Plan by the company.

For each intervention Final Report is prepared, outlining the methodology and the main results of the analysis and verification; each Final Report is shared with the management involved, which assumes the implementation responsibilities of any identified corrective actions, with the Director-General, the Board of Auditors and the Supervisory Board able to evaluate.

Corrective actions agreed with the Management are subject to quarterly monitoring, the implementation results of which are shared with the Board of Auditors and the Director-General. Annual monitoring of key controls has also been planned for previously verified processes and specific follow-ups to verify the effective implementation of remedial actions.

Below is a graphical representation of the Plan, implementation progress, analysis and verification interventions, and key next steps for updating it.

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In combination with the internal control system, SIAE today:

- is equipped with a section of the SIAE website dedicated to transparency in which all the information of the Company is published using the schema required by ANAC for public administration (although SIAE is itself outside of this context);

- publishes the Report on Transparency suggested by Directive 2014/26/EU.

Personnel

One of the main goals of the Strategic Plan 2013-2015 is substantiated in the streamlining of company structures.

The policy adopted since 2013 has, to date, seen the stabilization of permanent employment contracts, with more than 100 resources. In particular, in collaboration with universities and conservatories work has started to attract more young people to the structure with professional growth potential.

At year-end 2015, the total resources amounted to 1,231 units (net of intermittent staff) of which 25 trainees were hired in the last year.

In line with this strategic direction staff reductions will continue to be implemented exclusively through consensual resolutions incentivised by labour relations.

To this end, already in 2012, the company restructuring fund was created, in which at year-end €20m had accrued. This amount will allow additional early termination measures to be implemented (about 100 employees and managers).

During 2015 43 resources exited (including 7 Directors and 6 Officers), heading the otherway were 46 units with permanent contracts (including 2 executives). The average age of the exiting group was equal to 60.6 years compared to 33 among the new hires. In the average cost per capita there is a decrease in costs from €98,300 to €42,800 for resigning compared to new employees (managers and employees).

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In other words, the Strategic Plan 2013-2015 HR target has been met, however, in the next three years additional staff reductions are expected, accompanied by additions targeted at the needs of certain areas that require specific skills.

The effects of the exit measures in the period 2011-2015, offset by the offers made in the same period, are reflected in the decrease of personnel costs from €96m in 2011, to € 85m in 2015.

48

103

1051

125645

98

1043

45 51

0

200

400

600

800

1000

1200

Directors Officers Employees Ex-trainees and temps Intermittents

SIAE Personnel

2014 2015

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Support activities for: young composers, Italian artistic and cultural heritage and socially relevant projects

The commitment by SIAE to support Italian cultural and artistic heritage could be summarized in three words: Youth, Creativity and Culture. From 1st January 2015 the "under 31" - individuals, start-up creators, start up publishers – have been granted free membership, no registration fees and exemption from payment of the annual contribution. This policy led to an increase of membership applications (+4,136) by young authors. By contrast it resulted in minor evaluable contributions of about €1.3m for SIAE. Initiatives (long as well as short-term) have been promoted and supported, aimed at promoting the work of young authors and publishers and, more generally, niche repertoires need more support. The projects were selected by the Boards of Section and funded by sectional accounts intended for them. In particular: "SIAE- Today’s Classics" - Cultured Contemporary Music Project: an initiative that aims to support the most important ensembles and record companies in the field of contemporary music, the most neglected genre of music within the music of the classical repertoire. Music & Mathematics Project, sponsored by the Association ‘La Partita del Cuore’, it is intended to support youth music groups formed within the Secondary Schools of Second Grade and universities throughout Italy. In the film sector, support has been reflected in numerous initiatives aimed at students of training courses and to young writers and adapters, through training and the establishment of scholarships, promoting initiatives aimed at writing and the creation of new formats for the web, initiatives for study and conferences on themes and activities aimed at young creators to discover innovative productions, both in process and language. The OLAF Section helped sponsor and support a project sponsored by the ‘Centro per il Libro e la Lettura’ "Da Libriamoci a Scriviamoci". The Project aims to promote reading from the classroom, teaching children to love reading through celebrities. In particular, SIAE has contributed to the purchase of texts which introduce students to the knowledge and culture of copyright from school age, as well as texts related to music education, theatre, film and the visual arts.

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Among the initiatives best known to the general public are:

Rome Film Festival

The event represents a landmark in the field. SIAE has contributed to the success of the event by supporting numerous events held on the margins of film screenings such as conferences, meetings and exhibitions.

The Centre of Experimental Cinematography

The “Centre of Experimental Cinematography" is an established institution in the teaching of film art, constantly engaged in innovative research methods, as well as in the teaching of professions and trades related to the world of cinema. SIAE has contributed to the activity of the centre with the provision of scholarships for particularly deserving young people who lack financial resources, valuing and giving support to training projects of excellence in support of young talent in Italian cinema.

Opera Music – Florence Live

A seven-hour live celebration of music organized by the city in collaboration with SIAE. It promotes live music in Italy, as part of a day dedicated to remembering the importance of supporting live music and encouraging new talent. On stage the voices of Italian and international music perform.

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Expo City

An event created by the City of Milan to organize cultural events during the six months of EXPO in the Sforza and Beltrami spaces of Expo Gate. Numerous high profile free events have been produced. The SIAE contribution was fully in support of the planning and realization of musical shows, theatrical and performing arts, all to enrich the knowledge of the Italian repertoire at the European level.

Rock Contest

A project to show the value of original music, implemented with the launch of a competition and review for emerging bands and singers. Participation in the Rock Contest is free and prizes are functional to the development of a musical career: from music tutoring in the recording studio with established musicians and industry professionals, to a major media operation helping to raise the profile of participants (radio and national TV, print, CD compilations, concerts in Italy and abroad)..

National Association of Singers

A project sponsored by the National Association of Singers through the radio program Radio 2 Social Club. SIAE has promoted and supported the young creators and musical projects of emerging or new proposals that are supported in transmission.

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Socially relevant projects

Italian Jazz for L'Aquila Jazz concert of solidarity not to forget and continue working for the reconstruction of the city. The event was sponsored by the City of Aquila, from MIBACT, I-Jazz, MIDJ, and with the support of SIAE, involving 600 jazz artists in 100 concerts: group marathons, soloists, marching band, students of conservatories and music schools all drew attention to the city. More than 60,000 people were registered as attending: a great mobilization of the entire Italian jazz community to animate the old town reconstruction with the sounds of jazz, and to help in the work of sensitization addressed to speed up the reconstruction. Thanks to the support of the SIAE the initiative is to be considered as one of the richest and most important jazz moments ever in our country.

Bridge Jazz Marathon

A musical charity marathon held in Rome that has musicians rotating for eight hours on a unique, original stage, the Bridge of Music "Armando Trovajoli". Everyone united to create a bridge between culture and solidarity, between the musical research of the jazz artists and scientific researchers of the Telethon. The bridge came to life from the creativity of famous names of jazz and of young musicians and composers from the "Conservatorio Santa Cecilia" and "Saint Luois College of Music" in Rome.

Pathological Theatre Association

This association aims to use theatre as a therapeutic tool for children with mental disabilities. The activities range from music to dance, from interpretation to painting. The project supported by the SIAE will last two years.

Piccola Orchestra di Tor Pignattara

Multicultural ensemble formed by young people, Italians and not, between 13 and 17 years with the aim of enhancing, through music, the cultural diversity of the inhabitants of the popular district of Tor Pignattara in Rome. SIAE has supported the project by making the Orchestra CDs.

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OPERA MUSICA-FIRENZE PER IL LIVE 60.000 IL JAZZ ITALIANO PER L'AQUILA 30.000

FESTA DEL CINEMA DI ROMA 50.000 TELETHON 15.000

EXPO IN CITTA' 50.000 LA SIAE PER FABRIZIO PINNA 10.497

ASSOCIAZIONE NAZIONALE CANTANTI 50.000 BRIDGE JAZZ MARATHON 10.000

PROGETTO CO2 37.600 PICCOLA ORCHESTRA DI TOR PIGNATTARA 10.000

PROMOZ. E ORG. RASSEGNA MEI 20.000 TEATRO PATOLOGICO 10.000

GIORNATE DEGLI AUTORI VENICE DAYS 15.000 CONCERTO PER PAPA FRANCESCO 10.000

PREMIO DAVID DI DONATELLO 13.000 PARTITA DEI CAMPIONI UNICEF 5.000

TERTIO MILLENNIO FILM FESTIVAL 10.000 PROGR.IN RICORDO M°CALIFANO 5.000

PINO DANIELE TRUST 10.000 ARTISTI UNITI PER PIACENZA 5.000

UNIVERSITA' CA' FOSCARI 10.000

ROCK CONTEST 10.000 110.497 SABAUDIA FILM FESTIVAL 10.000

GOLIARDA SAPIENZA 10.000

PROG.ORCH. SINFON. DEI QUARTIERI SPAGNOLI 10.000

FESTIVAL DI CASTROCARO TERME 10.000

UMBRIA JAZZ E UMBRIA JAZZ WINTER 10.000

FESTIVAL"TIVOLI CHIAMA! FESTIVAL DELLE ARTI" 10.000

PREMIO SIAE LIBERA IL JAZZ 10.000

MUSICULTURA FESTIVAL 10.000

FOND.NE CENTRO SPER.DI CINEMATOGRAFIA 7.500

ALICE NELLA CITTA' 7.500

MASTER- UNIVERSITA' SUOR ORSOLA BENINCASA 7.500

SPAZIO T°NO'HMA 5.000

PIANO CITY MILANO 5.000

FESTIVAL DI CAPALBIO 5.000

ARTE NEL CUORE 5.000

MUSICA LIBERA CONTRO LE MAFIE 5.000

DA SUD # RESTART 5.000

ARTHETICA- FESTIVAL DI PROCIDA 5.000

CALENDARIO CARABINIERI 5.000

Musica respiro celeste- Ernandez art gallery 5.000

SISTEMA DELLE ORCH.E DEI CORI INFANTILI 5.000

CORTI LIRICI 5.000

FONDAZIONE ENTE DELLO SPETTACOLO 5.000

ASS.CULT.TEATRO GIOV. "PREMIO MAZZELLA 4.000

PRIMAVERA SOUND 3.000

FONDAMENTA -SCUOLA TEATRO 2.500

PREMIO DONIDA 2.000

SOS MUSICISTI -CONVEGNO 2.000

ITALIAN GOSPEL CHOIR 2.000

IO LEGGO PERCHE' 1.500

MATERIALI MUSICALI-recrd store day Italia 1.500

PROGETTO MUSICA E MATEMATICA 100.000

"SIAE-CLASSICI DI OGGI" -PROGETTO MUSICA COLTA 300.000

DA LIBRIAMOCI A SCRIVIAMOCI 250.000

PROGETTI SEZIONE CINEMA 185.000

1.351.600

33.443

1.495.540

LA S.I.A.E. PER LA CULTURA: LA S.I.A.E. PER IL SOCIALE:

VARIE

TOTALE GENERALE

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Regulatory Environment

European Context

In 2015, the matter of copyright was much discussed in the context of the start of the EU Strategy for the Digital Single Market (MUD), which found its way into the Communication of the European Commission from 6 May 2015.

This Communication, the preparation for as well as approval of, coming from extensive Italian collaboration (cf. Government's position of 13 March 2015, notified to the Commission on 20 March 2015, and Report on Copyright of April 30, 2015). It included - among its 16 lines of action - reconsideration of the European regulatory platform on copyright, to be put in place via a legislative reform proposal.

A contribution of the first level was then provided by the European Parliament, with its non-binding resolution - addressed to the Commission - of 9 July 2015; the result of a long process of revision and editing of the report that was initially submitted January 15, 2015 (known as Reda Report, named after the rapporteur responsible).

To understand the positions of public and private stakeholders in the issue of European copyright legislation, as well as other aspects of interest - with an eye towards effective implementation of MUD in Europe - the Commission launched in the second half of 2015 a series of public consultations, in particular on the issues of the review of the audiovisual media services Directive n. 13/2010/EU, the review of the Satellite Cable Directive 83/1993/EC, the online sales of tangible goods and digital content (for the latter, the Commission also advanced, on 9th December 2015, two separate proposals for regulations), CD geo-blocking, and, last but of utmost importance, on the issues of liability of Internet service providers (e-commerce Directive 2000/31/EC) and the IPR enforcement framework in force (Directive 48/2004 / EC).

During these consultations the SIAE conveyed its position through the representative confederative entity, which GESAC (European Authors and Composers Companies Group) and SAA (Society of Audiovisual Authors), and, in some cases, through participation in the coordination with the Department for European Policies of the Presidency of the Council of Ministers (online sales, copyright reform, regulation on portability). In 2015, then, some EU countries have started the process of transposition into national law of Directive 2014/26/EU of 26 February 2014 on the collective management of copyright, related rights and the granting of multi-territorial licenses for musical works’ rights; for online use in the domestic market, with a transposition deadline of 10 April 2016..

As regards Italy, the expected transposition of the Directive into legislative initially contemplated in the cd. 2014 bill of the European delegation, only to be expunged in a specifically parliamentary process. The

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transposition was then re-inserted in the bill of the European delegation in 2015, finally approved by the Council of Ministers 7 November 2015; this bill is, at present being examined in Parliament (AC 3540).

National context

First of all, the adoption of d.p.c.m 2nd February 2015 should be noted: Determination of the extent, and distribution rules for, compensation due under Articles 73 and 73-bis of the law 22 April 1941 n. 633 on the protection of copyright and other rights relating to its exercise, published in the Official Gazette of 10th March, 2015, n. 57. The d.p.c.m fully replaces the previous arrangements in d.p.c.m 1st September 1975, providing that the extent and manner of determination and payment of compensation for the use of the phonogram are identified by means of agreements between the intermediary bodies that operate in favour of producers of phonograms, accredited by the Department of Information and Publishing of the Presidency of the Council of Ministers, and the most representative trade organizations of users, without prejudice to the right of each producer to conclude agreements at all times directly with the users of their phonograms.

In the wider internal context, it should be noted, inter alia, that:

- in the Official Gazette of February 3, 2015, n. 27, the decree MiBACT 2 December 2014 was published: Application provisions of the tax credit for the promotion of music for new talents, by Decree-Law 8th August 2013, n. 91, converted with amendments to Law 7th October 2013, n. 112, which provides for the recognition, for the purpose of income tax, of a tax credit to producers of phonograms and music video recordings, as well as producers and organizers of live musical performances, existing since at least 1 January 2012, in relation to costs incurred for the implementation and promotion of sound and video musical recordings which are foremost films from new talents: artists, groups of artists, composers and performing artists;

- in the Official Gazette March 18, 2015, n. 64, the legislative decree 16 March 2015, n. 28 was published, laying down provisions of non-punishment for particular tenuity of facts, in accordance with Article 1, paragraph 1, letter m) of the Law of 28th April 2014, n. 67 (so-called decriminalization). These provisions also concern the enforceability of criminal offenses related to copyright. It is highlighted that the Government had been obliged by law n. 67-2014 to issue one or more legislative decrees implementing the revised penalty system to turn into administrative offenses a number of offenses for which there will be only penalty of fine or fine;

- the law of 24th March 2015, n. 33; a conversion, with amendments, of Decree-Law 24th January 2015,

n. 3, concerning urgent measures for the banking system and investment (cd. Investment Compact) - Law published in the Official Gazette March 25, 2015, n. 70, Supplement no. 15 - extended to small and medium-sized innovative companies access to certain simplifications, concessions and bonuses already reserved for innovative start-ups. Among the possible requirements for qualification - as already suggested for innovative start-ups - depositories or licensees of at least one industrial

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patent, a patent or a registered software at the Public Registry of SIAE required software, provided that such concessions are directly relating to the corporate purpose and business activity. The measure also strengthened the ‘Patent box’ (see below), also providing for the full inclusion of trademarks under intangible assets for which exists the tax benefit;

- in the Official Gazette of May 28, 2015, n. 122, the MiBACT decree March 27th 2015 was published: Survey of entities supervised by the Ministry of Goods, cultural activity, tourism and the identification of the structures of the Ministry, for the office-holders of its supervisory functions;

- il decreto MiBACT 15 luglio 2015 (pubblicato nella Gazzetta Ufficiale 13 agosto 2015, n. 187) reca la revisione delle norme concernenti il sostegno statale alla produzione e alla distribuzione cinematografica, mentre nella Gazzetta Ufficiale 12 novembre 2015, n. 264, è stato pubblicato il decreto MiBACT 7 settembre 2015, che aggiorna la disciplina i contributi ministeriali sugli incassi realizzati in sala dai film di nazionalità italiana;

- in the Official Gazette. 233 of October 7, 2015, Supplement no.55/L, in accordance with Law 11th March 2014, n. 23, which had given mandate to the Government for the construction of a fairer, transparent, and growth-oriented tax system - pointing between the principles and criteria of the proportionality of the sanction to the seriousness of behaviour, with the possibility of reducing the penalties for less severe cases or to apply administrative sanctions instead of criminal ones in relation to appropriate thresholds of criminality - was published in the legislative decree 24th September 2015, n. 158 Revision of the sanctions system , which has made some changes with regard to taxes on entertainment and especially to the criminal tax penalty system, as well as the administrative penalty system, providing for the application of the principle of favor rei, at the request of the taxpayer, for all measures not yet final;

- the law of 29th September 2015, n. 164 (published in the Official Gazette of October 19th, 2015, n. 243) provides for the ratification and implementation of the ' collaboration agreement concerning radio and television between the Government of the Italian Republic and the Government of the Republic of San Marino , completed in Rome on 5 March 2008. The agreement - already ratified by the Republic of San Marino - renews a previous collaboration agreement between the two countries in the field of broadcasting dating back to 1987 which commits Italy to pay an annual flat fee for the use of radio frequencies assigned to San Marino by the international Radio=communication Conference in Geneva, using RAI in order to allow for the migration from terrestrial to digital transmission systems in neighbouring San Marino territories;

- in the Official Gazette of 20th October 2015, n. 244, notice was given of the publication on the

corporate website of the Ministry of MISE of the inter-ministerial decree MEF-MISE 30th July 2015 implementing Article l, paragraphs 37 to 45 of the Law of 23rd December 2014, n. 190 (law formalised

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2015), as amended, concerning the optional tax regime for income from the use of intellectual property, industrial patents to trademarks, drawings and models, as well as legally protectable processes, formulas and information relating to experience acquired in the industrial, commercial or scientific (Patent box), which specifically relates to income derived from the use and/or sale of copyrighted software (as certified by the SIAE Public Registry of Software)..

There was a significant impact from some provisions of the Law of 28th December 2015, n. 228 Provisions for the preparation of the annual and multiannual budget of the State (law formalised 2016), published in the Official Gazette of 30th December 2015, n. 302, suppl. ord. n.70/L. In the law, in force since 1 January 2016, art. 1, paragraph 335, was, first introduced important innovations in terms of SIAE receipts private copying: in order to encourage the creativity of young authors, 10 percent of all collected fees, calculated before allocations carried out by the Italian Society of Authors and Publishers (SIAE), in accordance with Art. 71-octies of law 633/1941, it is intended by the Company, based on a special act of the annual address by the Minister of Goods and Cultural Activities and Tourism, to the national and international cultural promotion activities..

Among the other new regulations of interest from the 2016 Stability Law: 01/01/2016 anticipation to the entry into force of the former review mentioned in Legislative Decree no. 158-2015 of the tax system of sanctions (art. 1, paragraph 133); changes to tax credits for film activities ex ln 244 of 2007 and subsequent amendments (art. 1, paragraph 331); art changes. 2 and repeal of Article. 15 of Legislative Decree 22 January 2004 n.28, including amendments to the Cinema law (art. 1, paragraph 332); reduced 4% VAT for on-line publishing products (art. 1, paragraph 637); raising the limit for the use of cash (art. 1, paragraph 898); raising the revenue levy only on new slot machines and video lottery (Art. 1, paragraphs 918-919). Finally, the MIBACT decree 1st December 2015 should also be reported (published in the Official Gazette of January 26th 2016, n. 20) laying down the determination of the extent of the commission due to SIAE for management activities of the right to resale . It is a three-year update of the commission, which includes expenditure due to the Company for the assessment, collection and distribution of the remuneration to the author of a work of art for the resale of the original, for the period from April 9 2015 to 8 April 2018.

It should be remembered that, nationally, by MiBACT decree February 5th 2015, the Permanent Advisory Committee for Copyright was reconstituted for 2015-2019, defined in Title VII of the law 22nd April 1941 n. 633, and ss.mm; by decree of President of the Council of Ministers 8th January 2015. Additionally the MiBACT set up a technical-based working panel with duties of monitoring the real dynamics of the media market and the appliances covered by the private copying levy and the formulation of proposals to the triennial update for d.m. determination of the remuneration provided for in Article 71-septies of the law 22nd April 1941 n. 633, and ss.mm..

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As for the 2015 initiatives in Parliament, it is worth highlighting:

- the conclusion on 21 May 2015, of the findings of the investigation of the Commission IX (Transport, Post and Telecommunications) of the Chamber of Deputies on the system of audiovisual and radio media services, during which on 8th October 2014 SIAE was also audited (Head Office and Legislative Director Licensing Division);

- the performance, by the Parliamentary Supervisory Commission on the tax register, of a survey on the aforementioned register, with a view to rationalising public databases in economic and financial matters, in which, on 21st October 2015, the SIAE Director-General was audited with reference to the role SIAE that plays for the Revenue Agency and Customs Agency;

- the approval, on 6th May 2015, of the Resolution of the 7th Commission of the Senate (Public education, cultural heritage) and the final examination of the matter, no. 409 – the cultural provision in the music sector, aimed at strategies to keep the immense Italian repertoire alive and enable the creation of virtuous processes and musical innovation, allowing access to and confrontation with the international reality, about which the SIAE Director-General was interviewed 3rd March 2015

- in the Commission in the 7th Senate, numerous hearings were held on the reform of the cinematographic and audiovisual system in the examination of draft legislation on the subject. On 20th October 2015 the SIAE Director-General was interviewed.

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Recepits

As previously reported, collections for copyright registered an increase of € 49.7 million, equal to +9.5% (from €524.3m in 2014 to €574.1m in 2015).

Adding the proceeds from Private Copying, the total amounted to €703.7m (+16.8% on 2014).

The table below analyses the performance of the various types of collection for each of which there was an increase on the previous year.

In particular, it is noted:

- the increase in performance, representation and acting , amounting to €7.6m (+3% in 2014), due to the strong recovery of live events in the summer, and greater efficiency territory-based monitoring, thanks to the reorganization of regional offices and the creation of the figure Area Manager, connecting Head Office and territorial offices

- the increase in broadcasting , despite the advertising market trend (Nielsen 2014: -0.50% TV and -1.80% Radio); generally the industry has made a significant increase (+€34.3m, or +23.6% on 2014) due to the finalization of agreements with SKY for Cinema and Music Sectors;

- a sign of recovery in rights of mechanical reproduction for €0.8m (+4.3%), after a long period of crisis in the recording industry;

- the increase in intermediation services to be referred in particular to the right to resale (+21.6% on 2014);

- the increase in the collection coming from abroad for €0.5million (+1.6% on 2014);

- the significant increase in multimedia, equal to about €5.4m (+47.4%), partly due to the recovery of prior rights in respect of heavy DSP users;

- essentially stable for public events (+ 1.1%) because of the important works already underway in 2014.

Receipts by type 2015 2014 Delta %

Performance/Representation/Acting 265,5 257,9 7,6 3,0%

Broadcasting 179,7 145,4 34,3 23,6%

Rights of Reproduction 18,8 18,1 0,8 4,3%

Intermediation Services 15,4 14,7 0,8 5,1%

Abroad 30,8 30,3 0,5 1,6%

Public events 47,0 46,5 0,5 1,0%

Multimedia 16,8 11,4 5,4 47,2%

COPYRIGHT TOTAL 574,1 524,3 49,7 9,5%

(amounts expressed in millions EUR)

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Receipts divided by sales channel

Considering the receipts for the commercial channel (Territorial Network and Head Office), territorial collection shows an increase of around € 7.5m compared to 2014 (from €317.3m to €324.9m equal to +2.4%).

In particular:

- agents present an increase of €9.5m on 2014 (+4.1%);

- Role Points instead show a decrease of €2m compared to the previous year (-2.2%).

Centralized receipts show an increase of about €42.2m (+9.5% on 2014).

Repertoires

2015 2014 % 2015 2014 % 2015 2014 %

Lyrics 3,70 4,61 -19,8% 2,91 2,49 16,9% 6,61 7,10 -6,9%

Music 65,57 65,50 0,1% 206,35 198,32 4,0% 271,92 263,82 3,1%

Dor 11,22 11,90 -5,7% 25,64 25,10 2,2% 36,86 37,00 -0,4%

Olaf 5,01 5,39 -7,0% 2,55 2,11 20,9% 7,56 7,50 0,8%

Cinema 0,44 0,50 -12,0% 1,47 1,41 4,3% 1,91 1,91 0,0%

Total 85,9 87,9 -2,2% 238,9 229,4 4,1% 324,9 317,3 2,4%


Roll Points Agents Network Total

Repertoires

2015 2014 % 2015 2014 % 2015 2014 %

Lyrics 6,61 7,10 -6,9% 1,37 1,75 -21,5% 7,98 8,85 -9,8%

Music 271,92 263,82 3,1% 168,02 152,25 10,4% 439,94 416,07 5,7%

Dor 36,86 37,00 -0,4% 16,24 17,61 -7,8% 53,10 54,61 -2,8%

Olaf 7,56 7,50 0,8% 10,24 8,30 23,3% 17,80 15,80 12,7%

Cinema 1,91 1,91 0,0% 53,33 27,10 96,8% 55,24 29,01 90,4%

Total 324,9 317,3 2,4% 249,2 207,0 20,4% 574,1 524,3 9,5%


Total receiptsNetwork total General direction

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Lyrics

Lyrics receipts recorded a sharp decline (€ 7.9m in 2015 compared to €8.8m in 2014), a decrease of 9.8% compared to the previous year. In particular, public use and other services have been affected by a misalignment between invoices and collections to an amount exceeding €0.8m, due to the deferment of payment generated, primarily, by the extension of electronic billing requirement to the whole public administration. In addition, in 2014 broadcasting and abroad had previous collections. The joint effect of these two phenomena has led to the change described above.

3,83

1,24

2,29

0,63

4,03

1,45

2,28

1,09

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

Public representation Broadcasting Public events Intermediary services

RECEIPT ITEMS - LYRICS Repertoire(amounts expressed in millions EUR)

2015

2014

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DOR

The DOR repertoire highlights a decrease in receipts compared with the previous year: -2.8% (from €54.6m in 2014 to €53.1m in 2015). This result is mainly attributable to private sector broadcasters who in 2014 recorded adjustments related to prior years. Also DOR receipts for public representations account for about €0.4m of the decrease in 2016 due to receipts for invoices issued in 2015 against the Public Administration. The DOR repertoire, however, faces an obvious obstacle to their development from some of the most important broadcasters. The talks are based on:

- the tendency of the Broadcaster to classify programs as genres that are not protected by SIAE; even with reference to the kinds of works previously regularly filed with the SIAE;;

- the use, in the production and creation of radio and television entertainment programmes, of resolutions and contractual arrangements aimed at enhancing the contributions of authors such as editors, researchers, etc;

- the continuous use of a systematic and widespread introduction in contractual arrangements used for the production of programs, suggested by the authors of the sale of SIAE rights.

The situation created creates the impossibility of introducing appropriate corrective measures against:

- classifications in order that programs continue to be guaranteed an adequate recognition of the authorial work and creators are able to earn a living off it;

- solutions proposed to the authors to limit the nature of their creative contribution to exclude harmful practices against authors and their professional qualification(s);;

- neutralising or even eliminating the right of DOR authors to assurance of intellectual property and fair compensation.

In all these cases, there need to be introduced contractual provisions binding upon the Issuer to conditions that guarantee the author's right to be remunerated appropriately and according to the conditions agreed between the issuer and SIAE.

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18,49

14,93

18,38

1,3

18,84

16,56

18,17

1,05

0

2

4

6

8

10

12

14

16

18

20

Public representation Broadcasting Public events Intermediary services

RECEIPT ITEMS - DOR Repertoire(amounts expressed in millions EUR)

2015

2014

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Cinema

The significant increase in business for copyright (+€26.2m, equiv. to +97.9%) is attributable to the finalization of agreements with SKY, with revenues of over €26.5m in current payments (€6.5m) and arrears (€20m). Video media receipts record a negative figure (-27.4%) in line with the continued suffering of the entire home video industry..

7,82

5,51

2,6

1,05

0,43 0,39

6,43

4,64

2,8

1,07

0,530,28

0

1

2

3

4

5

6

7

8

9

Right to Resale Other Reprographics Right to Lend Public representation Broadcasting

RECEIPT ITEMS - CINEMA SECTOR(amounts expressed in millions EUR)

2015

2014

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OLAF

OLAF royalties increased from €15.8m in 2014 to €17.8m in 2015, an increase of 12.8%

This result derives from the combined effect of:

- an increase of Right to Resale (+21.5%) compared to 2014, resulting from a careful monitoring of the current payments and sometimes actions to recover prior sales, often adjusted with repayment plans;

- an increase in the item Other, which includes abroad, public events and marking cover pages (affected by regularization of past practices)

On the other hand, it should be noted:

- an apparent decline in receipts relating to reprographics due to invoices issued to Public Administrations for about €0.2m, collected in 2016:

- a slight decrease in the budget suggested by MiBACT relating to the Public Lending Right in 2015 (-1.9%).

49,9

0,772,21 1,89

23,04

1,062,63

1,85

0

10

20

30

40

50

60

Broadcasting Video fair payment Abroad Intermediary services

RECEIPT ITEMS - OLAF SECTOR(amounts expressed in millions EUR)

2015

2014

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Music

Receipts related to use of musical repertoires recorded an increase of about €23.9m (+5.7% on 2014), from €416m in 2014 to €439.9m of 2015.

Examining the results by classification shows the following:

- Dances and small concerts (class I): receipts amount to €118.4m, an increase compared to 2014 of 1.4% (+ €1.6m). Analysis of the two subclasses (Dances and Small Concerts) include the following results:

Dances: receipts for evening dancing increased from €73.9m in 2014 to €74.4min 2015 (+0.6%). In particular:

o dances with mechanical instrument recorded an increase of 1.8% (approximately €0.6m),

o dances with orchestra fell by 0.4% (about €0.2m).

Small concerts: revenue rose from €42.9m to €44m, an increase of 2.7%, equal to €1.1m.

- Cinemas (class II): receipts amounted to €13.8m, an increase of about €1m compared to 2014. The increase in SIAE receipts was mainly influenced by two factors: a considerable increase in event attendances compared to 2014 (+ 8.56%), and a growth, albeit contained, in the number of films distributed in 2015 (ANICA data);

- Radio and television broadcasting (Class III): includes fees paid by broadcasters for broadcasting rights and those for the use of radio equipment in public events; receipts rose from €118.6m in 2014 to €128.2m, resulting in an increase of €9.7m (+8.1%).

118,39

110,65

13,75

128,22

28,01

16,3

24,63

116,8

104,94

12,78

118,57

27,77

10,91

24,29

0

20

40

60

80

100

120

140

Dances and small concerts Concerts and revues, variety andgigs

Cinema Radio and TV broadcasting andPP.EE

Right to mechanical reproductionand right to record

Multimedia Abroad

RECEIPT ITEMS - MUSIC SECTOR(amounts expressed in millions EUR)

2015

2014

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With reference specifically to the broadcasting sector it should be observed that, despite the continued market contractions, particularly in advertising, the 2015 receipts showed an overall significant increase due to the conclusion of several agreements which included the following SKY agreements that permitted total coverage of uses for all of the broadcaster’s channels.

Radio receivers also stabilised along with voice, music and TV used in public events: from €25.1m in 2014 to €25.4m in 2015 (+1%).

- Concerts, revues, variety, gigs and mechanical instruments (class IV) show an increase of 5.4% (from € 104.9m in 2014 to €110.6m). In particular:

the concerts of Musica Leggera (Light Music), an increase of €4m (+11%) thanks to the resumption of local summer festivals;

the proceeds related to background music shows an increase of 1.8% for a total of €0.8m, despite the migration of some large retail chains to other operators, in part countered with specific ad hoc tariff interventions.

- Mechanical reproduction (class V): records, inclusive of registration fees paid by radio and television stations, an increase of +0.9% (from €27.7m in 2014 to €28m in 2015), in contrast to the negative trend of the past 10 years. This result was due to many factors among which we highlight the new SIAEFIMI agreement for general contracts, with the introduction of a new tariff that makes it possible to orientate towards the market trend package commercialisation containing more media. Confirmations of an effective recovery of the physical media market have also come from specialist sources (FIMI, Italy Creative report).

- Internet and mobile (class VI): shows receipts of € 16.3m and an increase of 49.4% compared to 2014 (+€ 5.4m). Looking at paid downloads and free streaming results it emerges that this result is also due to the recovery of prior rights in respect of the main online users (example: iTunes, YouTube, Spotify, etc.).

- Abroad: receipts amounted to €24.6m, compared with €24.3m in 2014, a total 1.4% increase (+€0.3m).

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Private Copy

The receipts from the Private Copying Audio and Video sector amounted to €129.7m compared to €77.9m in 2014, an increase of 66.2% (+€51.7 million). This increase in receipts is attributable to the rate change, which affected some products subject to the fee referred to in the Ministerial Decree of 06/20/2014, and the ever-present auditing activity.

SIAE has cut down on allocation times, and, despite the doubling of receipts, has reduced the amount of reimbursement expenses by over €1m, compared to 2014.

The sector is very volatile due to the pending decision from the European Court of Justice regarding exemptions for professional use.

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Revenues and income

The value of productions has increased over the previous year from €161.8m in 2014 to €165.3m of 2015 (+ €3m, equiv. to + 2%).

Revenues from sales and services amounted to €160.3m, an increase of €3.3m (+2% on 2014).

Revenues and expenses related to authorial management (shares, commissions on business for copyright and payment for private copying expenses) show a total increase of €4.5m, within which the following trends are notably contrasting:

- an increase in commissions (+€8m), in line with the authorial receipts;

- a decline in shares (-€2.3m), relating to the Under-31 policy;

- a reduction in reimbursements (-€1.1m) in private copying purchases despite the near doubling of receipts.

Management for Third party services focuses on agreements signed mostly with government departments and agencies and, therefore, the economic aspects of the agreements are affected by policies of public spending reductions, in the terms defined in the Finance Act.

Consequently, fees are not entirely related to the value of the service provided by SIAE or the value added for clients.

Discussed below are the results produced by the most important agreements.

The services rendered to theTax Revenue Agency generated income of €27.9m. This amount includes:

- an anticipated balance for 2015 of €27m;;

- notifications of violations for 2014 (4,255 notifications) for €0.4m;

- adjustment for the activities of 2014’s balance of €0.4 million;

- a performance bonus for performing a total of 23,859 inspections (of which 15.40% were document checks) amounting to €0.1m.

There has been no payment for SIAE in relation to fees due, concerning:

- il conguaglio per l’attività di cooperazione per l’anno 2015 (€ 0,4 milioni);

- fees (€0.4m) for activities of notification of violations carried out in 2015;

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- the share bonus for achieving all targets, equal to €1m, referred to in item 2 of the annex to the review of economic conditions bythe Convention of the Tax Revenue Agency - SIAE of 30/1/2015.

These additional fees are subject to, it is noted, the results of audit testing by the Tax Revenue Agency which, if positive, will lead to the invoicing in 2016 of the amounts shown above for a total of € 1.8 million.

Contracts for film rentals generated revenues of approximately €1m (+22% compared to 2014). The increase in these revenues can be directly linked to the good performance of films from the affiliated rental companies..

Collaboration with the Autonomous Administration of State Monopolies (AAMS) recorded income of €2million (+1% on 2014). The number of accesses made during 2015 amounted to 12,010 which resulted in the achievement of maximum compensation payable to SIAE.

A further activity, linked to the management of Agreement Services, concerns the supply and sales of statistical data on performances and shows, by the SIAE Centre for Entertainment.

Although the economic impact of this activity, when compared to other existing agreements, is modest (in 2015 it generated approximately €0.2m), it is worth highlighting the institutional importance covered by the provision of entertainment information. Over the past years, the Centre has assumed the role of first contact for the disclosure of show data, to public institutions, local authorities, professional associations and all institutes, national and international, interested in studying the phenomena of shows and performances in Italy.

Among other services:

- a decline in revenues for complementary receipts related to copyright (-7% on 2014) related to the recovery of penalties and penalties for late payments, mainly relating to public events;

- an increase in revenues for endorsement activities (+14% on 2014), in line with the growth of the phono-video-graphic market. It was precisely the receipts related to countersigns issued to general contract holders that increased – in 2015 this category of receipt recorded the highest increase.

Other revenues and income, amounting to € 4.9 million.

As part of other revenues and income, rental items’ income amounts to €220,516 (-13% compared to 2014).

This includes:

- €1.2m, left on sectoral accounts (Solidarity Fund and Endorsement Management));

- €1.4m in expenses reimbursement, on sectoral accounts (Cinema and OLAF) for Cinema- earmarked for cultural activities and interventions on specific IT processes;

- €0.2m in legal expenses reimbursement;

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- €0.2m in reimbursements of training expenses financed by public funds (FORTE and FONDIR);

- €0.3m in reimbursements, out of the sectoral DOR account, for a reduction in commission (from 14% to 12%) on receipts from the broadcasting industry.

The table below shows the rates of fees charged for the various types of receipt/collection.

2014 2015 2014 2015

Public performances, live and recorded, in the context

of dances and small concerts

20,8% 20,8% - Video reproduction on ‘case-by-case’ licence 18,0% 18,0%

- Use in cinemas as soundtracks to feature films, short

films etc.

20,8% 20,8% - Registration by radio/TV broadcasters 12,7% 12,7%

- Use by radio/TV broadcasters as soundtracks to TV

films, feature films, short films etc.

12,7% 12,7% - Reproduction on music DVDs 9,3% 9,3%

- Use and recording by radio/TV broadcasters 12,7% 12,7% - Reproduction on media sold at a reduced price or distributed for free, in the occasion of a promotional campaign, etc.9,3% 9,3%

- Use in public events with radio, TV and PA music 20,8% 20,8% - Mechanical reproduction on General Permit 7,3% 7,3%

- Public events, such as concerts, revues, gigs and

variety

20,8% 20,8% - Mechanical reproduction on centralised multi-territorial licences 7,0% 7,0%

- Use abroad 3,0% 3,0% - Phono-mechanical reproduction on ‘case-by-case’ licence 10,0% 10,0%

- Use online (streaming, webcasting, etc.) 10,0% 10,0% - Use abroad 3,0% 3,0%

- Performance or representation of original works 8,0% 8,0% - Performance or representation of original works 12,0% 12,0%

- Performance or execution of elaborated works 22,0% 22,0% - Performance or execution of elaborated works 22% 22,0%

- Use and recording by radio/TV broadcasters 14,0% 14,0% - Use and recording by radio/TV broadcasters 14,0% 12,0%

- Use in public events with radio, TV and PA music 22,0% 22,0% - Use in public events with radio, TV and PA music 22,0% 22,0%

- Use online (streaming, webcasting, etc.) 10,0% 10,0% - Use online (streaming, webcasting, etc.) 10,0% 10,0%

- Use abroad 3,0% 3,0% - Use abroad 3,0% 3,0%

- Audio reproduction 10,0% 10,0% - Audio reproduction 10,0% 10,0%

- Video reproduction 18,0% 18,0% - Video reproduction 18,0% 18,0%

- Use by TV/Radio broadcasters 14,0% 14,0% - Use by TV/Radio broadcasters 14,0% 14,0%

- Use in public events with radio, TV and PA systems 22,0% 22,0% - Use in public events with radio, TV and PA systems 22% 22,0%

- Reading and reciting of literary works in public (PDL) 8,0% 8,0% - Reproduction of figurative artworks (paintings, sculptures,

graphic and photographic works) 12,5% 12,5%

- Lending by public libraries 7,5% 7,5% - Right to resale (sales, subsequent to the first, of works) 19,0% 19,0%

- Reprography (reproduction, of up to 15% of the

contents for personal use) 20,0% 20,0% - Use online (streaming, webcasting, etc.) 14,0% 14,0%

- Use online (streaming, webcasting, etc.) 14,0% 14,0% - Use abroad 3,0% 3,0%

- Use abroad 3,0% 3,0% - Video reproduction 18,0% 18,0%

- Audio reproduction 10,0% 10,0%

- Video reproduction 18,0% 18,0%

- Publishing rights 3,0% 3,0%

- Fair payment for televisual use of audio-visual works 14,0% 14,0%

- Fair payment for video reproduction of audio-visual

works 18,0% 18,0%

- Use online (streaming, webcasting, etc.) 10,0% 10,0%

- Use abroad 3,0% 3,0%

SIAE RATES

MUSIC

Rights to musical performance Rights to mechanical reproduction

D.O.R. - LYRICSOpera - Ballet Theatre

O.L.A.FLiterary Works Graphic Arts

CINEMA Audio-visual Works

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Cost trends

The year saw an increase in production costs (from €182.1m in 2014 to €184.5m in 2015) equal to + 1%. This figure summarizes the costs associated with SIAE and the two separate managements (Solidarity Fund management and endorsement management). The chart below displays the results for each management.

The above mentioned increase is in fact the direct consequence of the investments (which are included in the SIAE Statement), in support of the Strategic Plan. Without this item (12.7 million), which will return in the coming years, the cost of production would have shown a significant downturn in line with last year's performance.

The breakdown of items relating to separate managements is shown in their respective budgets.

PRODUCTION COSTS (€/m) 2015 2014 Delta Delta %Operation and management costs 78,1 78,8 (0,7) -1%

Personnel (net Fs e G.V.) 84,0 86,3 (2,3) -3%

Other expenses 3,5 5,7 (2,2) -39%

Ordinary management costs: 165,7 170,8 (5,1) -3%

Strategic Plan 12,7 5,0 7,7 154%

Social and cultural activities 1,5 1,6 (0,1) -6%

Strategic management costs: 14,2 6,6 7,6 115%

Endorsement Management Costs 3,2 3,1 0,1 2%

Solidarity Fund Costs 1,5 1,6 (0,1) -6%

Separate management costs 4,7 4,7 (0,0) -1%

TOTAL COSTS OF PRODUCTION 184,5 182,1 2,4 1%

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The ordinary operating costs show a considerable decrease (- €5.5m, equal to -3% on 2014) seen in the cost of managing and operating items, personnel and other operating expenses.

These savings made it possible to support investments and strategic costs in terms of:

- communication (SIAE.it, under 31, etc.);

- conclusion of the Strategic Plan 2013-2015;

- start up of the new 2015-2016 Plan based on the digitization of the "core" processes;

- support for social and cultural activities.

Expenses related to strategic management amounted to €14.2m (+ €7.6m on 2014).

Ordinary operations costs comprise several items, articulated as follows.

Management and operating costs amounted to €78.1m (-€0.7m of -1% on 2014). Specifically:

- purchases, amounting to €1.4m, recorded, compared to the previous year, a decrease of €0.1m attributable to the efficiency of stock stamps policy and anti-counterfeiting labels implemented during 2014;

- agents show an increase (+€0.9m equal to +2% on 2014) related to a total increase of receipts;

0,00

20,00

40,00

60,00

80,00

100,00

120,00

140,00

160,00

180,00

Ordinary management costs Strategic management costs Separate management costs

2015 2014

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- external assessors show a further decrease (equal to €0.3m, -14% compared to 2014) due to the reduction in the number of assessors and different contractual statuses, the costs of which are recognized in personnel - such as intermittent workers;

- working with third parties, amounting to €2.9m, registered a decrease of 12% compared to 2014, in relation to the conclusion of some extraordinary activities carried out in previous years;

- professional and technical services increased to €1.3m (+39%). This increase is to be due to the advocacy item, supported by expenses for the recovery of authorial credits (from €0.5m to € 1.3m) and for Arbitration (+€0.4m) relating to the award between SIAE and Confindustria concerning fair pay.

- different services refer to utilities, maintenance, etc. that overall declined by €0.4m. - IT services (excluding evolutionary design) amounted to €4.4m and relate to maintenance fees, ICT

services (data network), computer assistance, etc. - corporate bodies, totaling €1.1 million, is in line with the previous year. From a cost containment

perspective, the Statute defines the parameters on the basis of counting fees and reimbursement expenses, making them consistent with the size of the production value.

Although at SIAE the new code in the field of PA salaries is not applicable, the company has chosen to prioritise ethical issues, focusing on the remuneration of member authors and publishers rather than serving the relevant fees to the person who borrowed your work.

- leased and rented assets amounted to €11.4m, unchanged from 2014 and refers mainly to the rental and operating expenses of real estate (for the most part conferred to the Norma Fund). The increase in operating expenses, amounting to approximately € 0.2 million, was due to the start of renovations and energy efficiency improvements of the Head Office (the intervention will develop in 2016).Given this significant intervention the landlord has allowed a reduction in rent.

- amortization and write-downs amounting to €2m (excluding the share of €0.8m related to investments in the Strategic Plan), is fairly constant compared to the previous year (-€0.2m, or - 5%) . The item relating to current asset write-downs relate to credit to customers (mainly from the music section and rental income).

Personnel costs amounted to €85.5m; a decrease of €2.3m (-3% on 2014) due to the combined effect of: - savings achieved through the consensual termination of employment relationships (amounts related

to resolutions of labour relations have been covered by the company restructuring fund created in 2012);

- higher staff costs (executive and non-executive) during the year; - savings (equal to +€0.4m on 2014) made in the leave not taken item; - reductions in social fees (-€1.1m) due to the deductible INPS contribution of amounts related to the

use of permits referred to in Article 33, co. 3, Law no.104/1992 for personnel; prudently, a provision of the same amount was made for at-risk funds connected to management activities

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Other costs include bonuses in accordance with contracts, for managers (€1m) and for employees of €3.4m (including an integration of €1m approved by Management Board 18/12/2015). This item includes employee health insurance, amounting to €1m.

Other operating expenses amounted to 3.5 million include provisions and other operating expenses (excluding the Solidarity Fund). This item has decreased compared to 2014 to €2.2m, due to lower provisions for risks and expenses. The cost for provisions, in fact, amounted to €1,000,000 of which €0.9m related to the aforementioned INPS contributions in the area of personnel costs.

The item includes withdrawal surplus expenses of Private Copy that arose upon the final accounting of SIAE costs incurred for its management. The amount was repaid in 2016 to the sectional accounting.

Strategic management costs relate to the expenses of the Strategic Plan for a total of €12.7m (+€7m on 2014, amounting to +154%). This item includes:

- computer design: €7.2m (included under computer services) for the implementation of some applications such as online music programs, the Private Parties portal, the Professional User portal, etc.) and the evolutionary maintenance of SUN management systems, SAP and SIADA. 2015 saw the conclusion of the projects referred to in the Strategic Plan 2013-2015 and initialisation of the Digital Agenda (referred to in the 2015-2016 Strategic Plan), which is why the cost has increased by € 4.5 million;

- cyber amortization of €0.8m relating to investments in software (€1.3m) and hardware (€ 1.8 million) planned in the Strategic Plans 2013-2015 and 2015-2016 (purchase of data storage disks , online music programs, portals, etc.);;

- communication services (€1.2m) and advertising expenses (€0.7m) for the implementation of an institutional communications campaign (SIAE card, abolition of under 31 membership fees, etc.) and the promotion of the SIAE brand on social media and related services (success fees, Facebook fees, Twitter fees, etc.) and to support fees (€ 2.8 million) of the Strategic Plan (that of 2013-2015 and the Digital Agenda 2015-2016).

Expenditure on social and cultural activities amounted to €1.5m and include sponsorships, contributions to initiatives organized by third parties and charity donations. The initiatives are described in the relevant section.

Financial management

In 2015 we have seen a stabilization in medium and long-term interest rates, whilst short-term interest rates continued their decline, already noted from the second half of 2012. At the beginning of 2014 the Italian government bonds with a maturity of one year had rates of 0.35%; at the end of the year, for the first time in the history of the Italian public debt, the rates had become negative (-0.04%).

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In this context, the difficulty of research is ever more clearly underlined, especially for bank liquidity, the use of which would combine performing well with the solidity and reliability of the depositary.

Overall financial management has generated:

- pfinancial income (investment coupons and short-term liquidity investments interests) amounting to €18.7m;

- financial fees of €0.3m - capital gains from the sale of securities amounting to €21.5m; - write-downs on securities included in current assets in the 2015 financial year amounting to €7.07m,

earmarked for the Pentagram Financial Fund (described below); - losses on sale of securities amounting to €9.7m; - separate management of the Solidarity Fund has generated a revenue of € 1.8 million.

The total average assets fell from €838.30m in 2014 to €834.48m with a 1.64% rate of return in 2015 compared with 3.03% for 2014

The overall SIAE portfolio yield (interest on deposits, coupons on securities) - excluding the Solidarity Fund was 2.18%, against 3.56% in 2014, making a financial income of €10.3m against €19.4m in 2014.

This result is better appreciated when considering that it was achieved in a year in which the European Central Bank's monetary policy have been highly expansionary turning negative short-term rates (2015 average overnight rate of -0.3% and average 2015 Euribor 3month rate of -0.02%).

Interest yielded by postal current accounts, free and regulated banking (time deposits) were €3.3 million, equal to a 1.39% yield. Said item decreased by €2.5 million compared to 2014 (-50.54%) due to the reduction in the interest rate paid by Italian banks as a risk premium for deposit in c/c.

In 2015 Italian government bonds were bought, bond notes guaranteed capital and yield of government securities and capitalization policies for €220m against sales and liquidations to €503.36m.

The latter figure reflects €355m, of which €60m Fs, merged into a financial fund called Pentagram. The fund is intended to accept gradually the financial resources permanently present in SIAE. These resources are managed in a portfolio logic, with the help of a professional manager to optimize returns and minimise the risk inherent in financial management, especially at a time of market turmoil such as that experienced in recent years. The resources invested are always available to meet all the commitments made by SIAE.

The fund's performance is constantly monitored by SIAE, including through an evaluations (NAV) that are available on a monthly basis for the financial market.

Financial income-expenses 18,4 27,1

Devaluations, capital gains 4,7 5,5

SIAE Total 23,1 32,5

Solidarity Fund 1,8 2,0

Balance 24,9 34,5

Final Balance 2014Financial Management Final Balance 2015

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Extraordinary Items

Extraordinary items showed a balance of +8 million and is summarised by strategic transactions carried out in 2015:

- proceeds of capital gains disclosures (€22.4m) - fees, amounting to €14m, that comprise, €9.6m of losses on securities sales and a €4.4m increase in

the fund for corporate restructuring risks that reaches €20m; this amount is intended to support the implementation of the Strategic Plan.

Income Taxes

Income taxes relate to IRAP and IRES, adjusted by deferred taxes. Please note that SIAE has benefited, for IRAP purposes, of the reimbursements allowed by law (tax wedge) and the deduction of the residual cost for permanent staff, as provided for by the 2016 Stability Law and thus has been able to deduct €82m , cancelling out the tax base.

Deferred tax assets of €1.1m, refer to: - the reabsorption of certain deferred tax assets in prior years (accelerated depreciation, corporate

restructuring fees and tax losses, etc.), - the inclusion of the relevant provision in 2015 for the corporate restructuring tax burden, for

employee bonuses (executives and non-executives) and related to the effect of securities evaluation included in current assets.

When calculating taxes on 31/12/2015, the effect of taxes resulting from the IRES rate reduction from 27.5% to 24%, (provided by the Stability Law 2016, beginning in 2017) was taken into consideration.

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Health and Safety

In 2015, the Prevention and Protection against Risks Service implemented the following requirements, summarised below, which were adopted in compliance with the safety regulations at work. Following the acquirement, in 2013, of the Certification attesting that the SIAE Safety Management and Occupational Health System complies with BS OHSAS 18001:2007, audits were carried out (also in territorial offices) to check the progress of objectives and goals of the three years and the implementation of corrective actions. The certification body has confirmed the adequacy of the management system implemented by highlighting a number of improvements. Thanks to the adoption of SGSL and meaningful interventions for the improvement of security, conditions and hygiene in the workplace, it was accepted, even by 2015, the petition presented to INAIL for the reduction of contributory tax rates. Through visits to places of work - both at HQ and at regional offices - the verification of facilities’ compliance with the good practice and safety rules were carried out. Specifically, inspections were carried out at the offices of Cagliari, Florence and Palermo, and at the branches of Perugia and Sassari. During the year, it began the process of revision of the risk assessment for both peripheral and central offices. Through ENEA the radon risk assessment has been modernised in the basement areas of HQ, while among territorial offices a census was carried out among those using underground rooms, in order to proceed with changes only if more than 10 hours per month were spent in them, as provided for by the "Guidelines for the measurement of radon concentration in the air in the underground workplaces' approved in 2003 by the State-Regions Conference. In 2015 the educational activities of the Prevention Service focused on:

- New-recruits/trainees at HQ and territorial offices. - The update of first aid training for employees in emergency teams of the offices of Lecce, Parma,

Rimini, Ancona, Viareggio, Milan, Brescia, Catanzaro, Palermo and Catania. The course, which lasts four hours, was carried out by local Red Cross committees based on content provided by the Ministerial Decree 388/2003.

- The update of persons responsible for fire safety and evacuation of HQ. - The update of those responsible for fire safety in the territorial offices. This training module was

conducted via distance learning. - LTraining on telework in n. 4 workers between HQ (classroom) and regional offices

(videoconferencing). - The update of safety training for Workers' Representatives. - The update of training for SPPR employees.

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**** The draft management report 31/12/2015 is therefore approved and proposes to allocate the surplus of

€315,583 for an increase of 50% of the permanent reserve, to one-twentieth for payments provided for in

Article 2, paragraph 2 of the Statute and, for the remainder, to the extraordinary reserve.

The statements relating to the separate management referred to in Article. 29 of the Statute, are detailed

in the related section.

The sectional analytical reports will be available in time for approval by the Supervisory Board and shall

constitute an annex to this report.

President

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Financial Statements Management Report 2015

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BALANCE SHEET 2015 2014ACTIVEB) FIXED ASSETS

I) Intangible Assets

3) Industrial patents and use of intellectual rights 970.248 926.857

6) Assets under development and advances 0 0

Total Intangible assets (I) 970.248 926.857

II) Tangible assets

1) Land and buildings 31.882.347 31.882.347

- Accumulated depreciation of land and buildings (8.627.079) (8.039.577)

23.255.268 23.842.770

2) Plant and machinery 5.892.761 5.906.108

- Accumulated depreciation of plant and machinery (5.483.762) (5.465.727)

408.999 440.381

3) Industrial and commercial equipment 16.917.988 15.726.031

-Accumulated depreciation of Industrial and commercial equipment (14.975.188) (14.759.100)

1.942.800 966.931

5) Assets under development and advances 0 0

Total Tangible Assets (II) 25.607.067 25.250.082

III) Financial Assets

1) Investments in:

d) other companies 3.657 3.732

3.657 3.732

2) Credits

d) receivables from others

- installments due within one year 92.489 69.691

- installments due after one year 84.304.312 84.187.189

84.396.801 84.256.880

3) Other securities

a) S.I.A.E. securities 203.306.079 586.666.079

a) Fs securities 0 60.000.000

c) "Real Estate Fund" Securities 164.609.996 164.609.996

c) "Real Estate Fund" Securities /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:Calibri; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-GB;} d) “Real Estate Fund” Fs securities Normal 0 false false false EN-GB X-NONE X-NONE 31.200.000 31.200.000

c) "Financial Fund" Securities 355.000.000 0

754.116.075 842.476.075

Totale Immobilizzazioni finanziarie (III) 838.516.533 926.736.687

Assets Total (B) 865.093.848 952.913.626

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C) Current Assets 2015 2014

II) Receivables

1) From Clients

a) from associates and principals

1) from associates and principals for corporate contributions and annual fees 979.108 1.386.419

-Allowance for company shares (343.007) (981.405)

636.101 405.014

2) From associates and principals for advances 67.950.411 67.777.834

2) other receivables from associates and principals for advances 44.431 98.738

- Allowance for advances (389.571) (482.640)

67.605.271 67.393.932

68.241.372 67.798.946

b) compensation for private copying 2.110.943 967.180

c) from other principals 1.365.061 1.999.709

d) from consumers 31.553.939 31.822.000

e) from others 184.746 235.521

Total Receivables from Customers 103.456.061 102.823.356

4.2) Taxes Receivable

1) from tax authorities 20.222.147 18.864.440

Total tax credits 20.222.147 18.864.440

4.3) Deferred tax 10.973.397 12.118.972

5) due to others

a) due to employees 341.659 287.097

b) due to banks 29.048 153.276

c) other receivables 2.547.768 4.602.094

- Provision for impairment of receivables (487.330) (632.942)

2.060.438 3.969.152

Total receivables from others 2.431.145 4.409.525

Total Receivables (II) 137.082.750 138.216.293

III) Financial assets not held as fixed assets

3) Other securities 112.930.000 20.296.000

Total Financial assets not held as fixed assets (III) 112.930.000 20.296.000

IV) Cash availability

1) Banking and postal deposits 267.582.504 216.480.845

3) Cash and cash equivalents 12.395 11.847

Total Cash (IV) 267.594.899 216.492.692

TOTAL CURRENT ASSETS (C) 517.607.649 375.004.985

D) PREPAYMENTS AND ACCRUED INCOME

a) Prepayments and accrued income 6.763.111 8.038.651

TOTAL PREPAYMENTS AND ACCRUED INCOME (D) 6.763.111 8.038.651

ACTIVE TOTAL 1.389.464.608 1.335.957.262

BALANCE SHEETS

a) Merchant Guarantees on deposit 3.650.972 3.795.049

b) Performance guarantee, pension fund 11.179.340 11.849.340

c) Lien on loan from Fondo Norma 77.427.805 77.427.805

e) Penalty imposed pursuant to article 10 332.007 124.997

TOTAL BALANCE SHEET ITEMS 92.590.124 93.197.191

TOTAL 1.482.054.732 1.429.154.453

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PASSIVE 2015 2014A) EQUITY

III) Revaluation Reserves

1) Revaluation ex. L 21/11/00 n. 342 39.150.070 39.150.070

2) revaluation ex. L. 24/12/03 n. 350 41.007.241 41.007.241

3) revaluation ex. L. 28/01/2009 n. 2 11.564.615 11.564.615

Total revaluation reserves (III) 91.721.926 91.721.926

V) Statutory reserves

1) permanent reserve 15.387.268 13.655.285

2) extraordinary reserve 11.211.063 9.652.278

Total Statutory Reserves (V) 26.598.331 23.307.563

VII) OTHER RESERVES

1) Lira/Euro conversion reserve 237 237

Total other reserves (VII) 237 237

VII) ONGOING SURPLUS/DEFICIT 0 0

IX) Result of excercise 315.583 3.463.966

TOTAL EQUITY (A) 118.636.077 118.493.692

B) FUND FOR RISKS AND CHARGES

1) for pensions and similar obligations

a) severance benefits 29.698.674 30.869.945

b) additional fees for employee verification 19.626 30.580

Total for pensions and similar obligations 29.718.300 30.900.525

2) For taxes, including deferred tax 0 0

3) Other

a) Solidarity fund

1) Benefits payment fund 3.202.241 3.202.241

2) Equity fund 6.108.180 6.108.180

3) future solidaristic benefits restricted fund 80.837.864 80.698.270


93.014.309 92.874.715

b) for risks associated with management activities 8.696.570 8.263.838

b) for risks associated with management of the pension fund 11.179.340 11.849.340

d) for risks around company reorganization 20.000.000 21.000.000

e) adjustments for private copy reimbursements 0 0

f) for employee incentives 3.600.000 3.600.000

g) provision for welfare contributions 18.500 152.900

Total for other 136.508.719 137.740.793

TOTAL FUND FOR RISKS AND CHARGES (B) 166.227.019 168.641.318

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C) TRF for EMPLOYEE WORK 2015 2014

TOTAL TRF for EMPLOYEE WORK (C) 23.714.632 25.241.011

D) PAYABLES

4) Payables to the bank

a) Withholding tax to be deducted 274.217 307.798

b) other payables 22.024 19.349

Total payables to banks 296.241 327.147

7) Accounts payable 17.485.789 16.967.611

12) taxes payable 9.161.062 13.861.208

13) Contributions to pension and social security institutions 3.269.116 3.890.690

14) Other payables

a) to members, principals and successors 819.681.352 764.805.047

b) to others for "private copy payments" 151.711.352 147.469.790

c) to other agents (various organizations) 1.231.544 1.028.252

d) to operators and others for provisional and security deposits 21.510.646 22.044.026

e) to bodies and various corporate entities 473.223 305.173

a) to employees 9.934.096 9.275.209

g) other payables

1) other payables 11.422.679 11.449.333

2) royalties due 34.506.771 32.100.383

45.929.450 43.549.716

Other payables total 1.050.471.663 988.477.213

TOTAL PAYABLES (D) 1.080.683.871 1.023.523.869

E) ACCRUED EXPENSES AND DEFERRED INCOME

a) Accrued expenses and deferred income 203.009 57.371

TOTAL ACCRUED EXPENSES AND DEFERRED INCOME (E) 203.009 57.371

PASSIVE TOTAL 1.389.464.608 1.335.957.261

BALANCE SHEETS

a) Merchant Guarantees on deposit 3.650.972 3.795.049

b) Performance guarantee, pension fund 11.179.340 11.849.340

c) Lien on loan from Fondo Norma 77.427.805 77.427.805

e) Penalty imposed pursuant to article 10 332.007 124.997

TOTAL BALANCE SHEET ITEMS 92.590.124 93.197.191

TOTAL 1.482.054.732 1.429.154.452

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INCOME STATEMENT 2015 2014A) PRODUCTION VALUE

1) Revenues from sales and services

a) company shares and related services 9.366.379 11.714.299

b) commissions on businesses for:

1) copyrights and institutional services 97.100.786 89.196.956

2) public film registry 41.739 41.447

3) special public registry for computer programs 71.666 33.765

Total Business from Commission 97.214.191 89.272.168

c) reimbursement from "private copy payments" 3.540.292 4.633.976

d) fees for services and premiums on businesses for services delegated by the

Revenue Agency and the Region of Sicily

1) fees from services by the Revenue Agency convention 27.925.500 29.300.608

27.925.500 29.300.608

e) fees and premiums for services delegated by various organizations

1) premiums for services delegated by various organizations 2.137.647 2.093.191

2) fees for the AAMS convention 2.000.000 1.981.010

3) fees for the Liutai convention 677 7.670

4) rental fees 1.003.886 830.300

5) fees for the Production Music D.R.F. convention 1.066 3.379

6) fees for the F.I.G.C. conventioin 50.000 50.000

7) statistical services 226.064 226.079

Total fees and premiums for services delegated by various organizations 5.419.340 5.191.629

f) other revenues and income from sales and services

1) income from ticket sales and files/records 930.024 931.795

2) administrative fees 5.633.579 5.725.102

3) punching tickets 57.785 61.728

4) endorsement rights 3.980.228 3.499.958

5) Burcardo library revenues 1.654 2.857

6) additional copyright income 6.184.827 6.618.171

7) proceeds from AGCOM convention 65.574 0

Total other revenues and income from sales and services 16.853.671 16.839.611

Total Revenues from sales and services (1) 160.319.373 156.952.291

5) other revenues and income

a) rental income 220.516 254.425

b) other income 4.748.903 4.644.675

Total other revenues and income (5) 4.969.419 4.899.100

PRODUCTION VALUE TOTAL (A) 165.288.792 161.851.391

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B) PRODUCTION COSTS 2015 2014

6) for purchases

a) goods for sale 621.308 724.360

b) goods and materials for various consumers 756.260 774.638

Total purchases (6) 1.377.568 1.498.998

7) For services

a) agents

1) compensation and pension fund contributions 41.673.933 40.770.377

2) provision for severance allowances 1.416.541 1.379.330

43.090.474 42.149.707

b) external assessors 327.013 381.326

c) third party processing 2.974.425 3.396.426

d) professional and technical services

1) administrative, technical and legal services 4.362.645 3.045.829

2) consulting 2.784.833 1.777.725

3) hiring and training personnel 175.503 223.329

7.322.981 5.046.883

e) other services

- various operating services 9.148.684 8.810.794

- IT services 11.640.057 7.343.637

- travel expenses, external food and lodging 987.259 1.160.735

21.776.000 17.315.166

f) corporate bodies and other entities 1.110.442 1.135.180

Total for services (7) 76.601.335 69.424.688

8) for use of third party assets

a) leasehold 11.228.729 11.085.623

b) rental and leasing goods and various equipment 180.142 162.537

Total for use of third party assets (8) 11.408.871 11.248.160

9) for personnel

a) fixed compensation

1) fixed compensation 56.491.125 57.201.606

2) fees for inspections, additional jobs and various other things 3.762.120 3.839.117

60.253.245 61.040.723

b) pension fund 15.149.509 16.315.250

c) T.F.R. 4.559.415 4.717.676

d) for retirement benefits and similar obligations: supplementary fees for severance activities 0 11.189

e) other costs 5.527.696 5.762.347

Total for personnel (9) 85.489.865 87.847.185

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10) Depreciation and Devaluations

a) amortization of intangible assets 1.235.875 1.211.765

a) amortization of fixed assets 1.538.325 1.235.011

c) other devaluations of fixed assets 0 495.300

d) devaluations of receivables included in current assets and cash equivalents 20.423 6.682

Total depreciation and devaluation (10) 2.794.623 2.948.758

12) Provisions for Risks and Charges

a) provisions for future chares 1.019.931 2.996.952

b) provisions for "private copy payment" fund adjustments 0 0

Total Provisions for Risks and Charges (12) 1.019.931 2.996.952

14) other operating expenses

a) Solidarity fund

1) Benefits 1.014.025 936.600

2) provisions for performances bonuses 139.594 308.597

1.153.619 1.245.197

c) entertainment costs 48.247 50.524

d) SIAE international activities, copyright promotion, studies and initiatives related to the promotion, development and differentiation of the Italian literary and artistic heritage1.342.475 742.854

e) various taxes and fees 1.464.167 1.315.954

f) other expenses

1) operating costs and maintenance of building lease 70.121 72.607

2) other expenses 340.028 1.096.032

3) various operating expenses 1.215.679 1.366.281

4) surplus "private copy payment" withdrawal 178.057 228.733

1.803.885 2.763.653

Total other operating expenses (14) 5.812.393 6.118.182

PRODUCTION COST TOTAL (B) 184.504.586 182.082.923

DIFFERENCE (A-B) (19.215.794) (20.231.532)

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C) FINANCIAL INCOME AND CHARGES 2015 2014

16) Other financial income

a) long-term receivables 15.142 16.189

b) securities held as fixed assets

1) dividends 2.500.000 0

2) Interest income on securities:

- Interest income on securities: 10.256.592 19.403.411

- Interest income on FS securities: 1.755.887 1.084.709

12.012.479 20.488.120

3) Various income from securities:

- various income from securities: 12.395 12.395

- various income from Fs securities: 0 0

12.395 12.395

14.524.874 20.500.515

c) from securities among current assets

- from securities among current assets 139.564 154.508

139.564 154.508

d) other financial income

1) interest income on current bank and postal

- interest income on current bank and postal 3.310.283 5.870.707

-interest income on current Fs bank and postal 35.577 947.080

3.345.860 6.817.787

2) interest on tax 55.000 220.000

3) interest and other financial 2.445.622 3.021.581

5) private copy default interest and penalties 1.085 814

5.847.567 10.060.182

Other financial income total (16) 20.527.147 30.731.394

17) interest and Other financial income

a) interest and Other financial income (336.754) (1.732.635)

Total interest and Other financial income (336.754) (1.732.635)

17.2) Gains and losses on Foreign

a) exchanged (156) (1.640)

17.2) Gains and losses on Foreign exchange total (17.2) (156) (1.640)

FINANCIAL INCOME AND CHARGES TOTAL (C) 20.190.237 28.997.119

D) VALUE AND ADJUSTMENTS TO FINANCIAL ACTIVITIES

18) Re-evaluation 0 518.000

18)Devaluation (7.070.000) 0

D) VALUE AND ADJUSTMENTS TO FINANCIAL ACTIVITIES (7.070.000) 518.000

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E) EXTRAORDINARY INCOME AND EXPENSES 2015 2014

20) extraordinary income

20) various extraordinary income 9.241 4.425

b) gains on sale of securities 21.469.921 4.958.604

c) other contingent 918.740 518.277

d) capital gains from real estate 0 0

Extraordinary income total (20) 22.397.902 5.481.306

21) Extraordinary Charges

a) pension fund restructuring 0 0

b) losses/write-offs on securities (9.666.188) 0

c) corporate reorganization (4.419.821) (9.416.947)

d) various extraordinary expenses (263.112) (330.121)

Extraordinary expenses total (21) (14.349.121) (9.747.068)

EXTRAORDINARY INCOME AND EXPENSES TOTAL (E) 8.048.781 (4.265.762)

BALANCE BEFORE TAXES 1.953.224 5.017.825

22) INCOME TAXES

a) Current taxes

- Ires 492.066 206.860

- Irap 0 1.634.482

492.066 1.841.342

b) Deferred taxes

- Active 1.145.575 (287.483)

-Passive 0 0

1.145.575 (287.483)

INCOME TAXES TOTAL 1.637.641 1.553.859

23) PROFITS FOR THE YEAR 315.583 3.463.966

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Supplementary Notes

Explanatory notes

2015 Management Report

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Introduction

The Italian Society of Authors and Publishers (SIAE) is, under the law of 9th January 2008, n. 2, "a public economic body and membership organization" and performs the duties specified in the Act of 22 April 1941 n. 633, as amended. The SIAE may also perform the management of assessment services and collection of taxes, fees and charges, in agreement with public authorities, local authorities and other public or private entities. The institutional structure of the SIAE has unique characteristics related to the associative relationship with its members; the holders of income for copyright.

New rules introduced by the law of 18th August 2000 n. 248, firstly, extended the protection of areas of copyright and, second, enabled the SIAE to operate more efficiently and effectively to prevent the abuse of intellectual property.

Under Article. 1, paragraph 3 of Law no. 2 of 2008, the Minister of Heritage and Culture, together with the Chairman of the Council of Ministers, is responsible for the supervision of the SIAE. Supervisory activities are also carried out by the Minister of Economy and Finance, for the specific expertise in those fields.

Explanatory notes to the Management Report

SIAE, for the sake of greater transparency and clarity, has reported its finances every fiscal year since 1993 and, consistent with rules or cases related to this organization, the company referred to the civil code for actions and to accounting standards issued by the Italian Accounting Board (OIC), updated during 2015.

As of 1st January 2005, the SIAE has also submitted to audit in accordance with art. 2409-ter of the Civil Code (now Article 37 of Legislative Decree no. 27.1.2010, n.39). The Management Report ending 31st December 2015 is made up of the Balance Sheet, Income Statement and Notes. The Balance Sheet and Income Statement adopted are consistent with those set out in articles.2424, 2424 bis, 2425 and 2425 bis of the Civil Code and the content of the notes is in accordance per arts. 2427 and 2427 bis of the Civil Code. The President has set up, in addition, the report provided by article. 2428 of the Civil Code accompanying this Report. With regard to investment funds, given their legal and managerial autonomy, as well as the entity's associative nature, the SIAE does not prepare consolidated financial statements. During the year there were no exceptional circumstances that would have required recourse to the derogations provided for in Article. 2423, paragraph 4, of the Civil Code. The cash flow statement is an integral part of the Notes as stipulated by OIC principles.

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The Management Report of the SIAE of 31st December 2015 has been audited by PricewaterhouseCoopers SpA, which was tasked with an audit for the 2014-2016 three-year period pursuant to Art. 13 of the law. of 27.01.2010, n. 39. The Financial Report, expressed in EUR, shows for comparative purposes the figures from the previous year, in accordance with the rules of the Civil Code. It should be stressed that the difference between the "value of production" and "production costs" (A - B) has little or no significance for SIAE as regards financial income, despite being classified in a different section, because as a component it is generally "typical" of management. In fact, the inflows arising from the collection of copyright go before outgoing flows in favour of members which will organically generate financial income. This time lag is due to the time needed for allocation of rights. The SIAE Statute (Article 24 second paragraph), has introduced the requirement of separate accounts for the "resources from verification services and the detecting of taxes, duties, fees and charges on behalf of the State as well as from the compulsory anti-piracy service".

The General Regulations, in articles. 87 and 88, define the flow diagrams for separate accounts. The Solidarity Fund (Fs) is governed by Article 31 of the Statute and in the Regulations. The SIAE Management Report "consolidates" and summarizes the overall results for the year, generated by the Company, from the Solidarity Fund and the management of mandatory anti-piracy. The statements are described in a separate section.

Accounting standards and policies

The criteria applied in the valuation of balance sheet items, which are described below, are made in reference to provisions of art. 2426 of the Civil Code, interpreted and integrated by the accounting principles of the OIC, which do not conflict with standards or specific cases related to this organization and, unless otherwise indicated, are consistent with those of the previous year. Under the provisions of art. 2423- bis Civil Code, the valuation of items is carried out in accordance with prudence and on an ongoing basis. Profits recognised are only those made by the date of the balance sheet.

a) Intangible assets

Intangible assets, comprising costs that will bring benefits in future periods, are recognized at cost of acquisition or production (including directly attributable incidental expenses) and depreciated on a straight line, bearing in mind their remaining useful life.

The rate of amortization applied, referring to ownership and software use on a permanent licence, is as follows:

Intangible assets Rate Industrial patents and intellectual property rights of creative works 33.0%

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b) Tangible assets

Tangible assets are stated at acquisition cost, including additional and extraordinary maintenance expenses which increase the value of the related assets. The "Land and buildings value" of property includes inflation adjustments made in previous years under the laws of 19th March 1983, n. 72, 30th December 1991, n. 413, 21st November 2000, n. 342, 24th December 2003, n. 350, and that carried out in 2008 on properties not used in accordance with the law of 28th January 2009 n. 2. The cost is adjusted for amortisation calculated systematically on the basis of amortisation schedules that take into account the technical economic prognosis of the asset’s remaining useful life in relation to individual homogeneous categories, as well as the sector in which the company operates, except for the category of civil buildings for residential use. . The amortization starts from the year in which the asset is available and ready for use. In that year, given that the goods purchased are in the production process for an average six months, depreciation is calculated at a reduced rate of 50% with the exception of "incremental costs" capitalised by increasing the asset to which they refer and depreciated with the full rate as early as the year in which they are made. If, regardless of depreciation already recorded, there is a permanent loss, the asset is written down. If in subsequent years the reasons for the write-down cease to be applicable, it is reinstated at a value less depreciation.

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The annual depreciation rates used are as follows:

Ordinary maintenance costs (but not of an incremental nature) are expensed in the year they are incurred. Gains and losses realised on sales contribute to the economic result of the year of their sale.

The balance value of individual revalued assets, consistent with the provisions of art. 11, paragraph 2, of Law no. 342/2000 and art. 6 of the Ministry of Finance Decree No. 162 of 13th April 2001, does not exceed in any case, their consistency, production capacity and the actual possibility of economic use, as well as current market values.

c) Financial assets

The securities are recorded at purchase and cost adjusted, where necessary, for permanent losses of value. These assets are related to purposes that ordinarily do not lead to their sale before their natural end-of-use. Premiums or subscription charges relating to securities, as well as trading margins and financial incomes, are part of the end of year results for economic competence through membership in accruals and prepayments. The receivables booked under financial assets are stated at their nominal value which corresponds to their estimated realisable value.

d) Receivables

Receivables are stated at their nominal value and adjusted to their estimated realisable value through the recording of a "bad debt provision" that includes provisions allocated against default risks.

Tangible assets Rate

Buildings 3,0%

Incremental property management costs 6,0%

Civil buildings for residential use 0,0%

Plants and equipment

Plants and lifting equipment 7,5%

Machinery, appliances and equipment 15,0%

Photographic, cinematographic and televisual equipment 30,0%

Special internal communication and remote signaling equipment 25,0%

Industrial and commercial facilities

Scutching 10,0%

Furnishing 15,0%

Armoured counters 20,0%

Furniture and ordinary office equipment 12,0%

Electrical and electronic office machines 40,0%

Transport vehicles 20,0%

Vehicles, motorcycles and similar 25,0%

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e) Financial activity not itemised as assets

Financial assets not held as assets are stated at the lower of either cost or realisable value based on market trends.

f) Cash availability

Cash and cash equivalents consist of cash and valuables effectively and immediately available denominated in national currency. Cash on hand, checks and postal and bank deposits are recorded at face value.

g) Accruals and deferred income

Accruals and deferred income are determined based on the accrual basis..

h) Payables

Payables are stated at nominal value.

Rights remitted from international "sisters", expressed in foreign currency, are reported using the exchange rate in effect at the time of writing.

i) Severance indemnities

Following the reform of supplementary pensions provided for in the Finance Act of 2007 and subsequent decrees, the accounting policies applied to TFR (severance indemnity) comply with those defined by the relevant technical bodies. As a result of this reform, the TFR accrued before 31st December 2006 will continue to remain in the company, while that accrued from January 1, 2007, based on the implicit or explicit choice of the employee, will go to the same supplementary pension funds or be transferred by the company to the Treasury Fund at INPS.

Therefore, the TFR in financial statements represents the existing debt at the yearend in respect of employees, in compliance with current laws and agreements between both employers and labour.

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l) Provisions for risks and changes

Provisions for risks and charges are set aside to cover losses or liabilities of a determinate nature and of a certain or probable existence, for which the amount and/or time of occurrence at yearend cannot be determined with certainty. The provisions reflect the best possible estimate on the basis of the knowledge available. This chapter of the budget includes funds for pensions and similar obligations to agents and internal supervisors, accrued at the end of the fiscal year and allocated in accordance with existing contractual agreements. "Provisions for risks and charges - Others" are shown separately on funds relating to the management of the Solidarity Fund (the Fund paid benefits, the asset Fund, the restricted future Solidarity benefits Fund and the permanent reserve).

m) Foreign currency transactions

Receivables and payables in foreign currencies are recorded using the exchange rates prevailing at the date of the related transactions. These payables and receivables are stated at year end exchange rates and exchange differences on conversion are recognized in the income statement under financial items.

n) Costs and revenues

Costs and revenues are recognized in the income statement in accordance with principles of economic competence and prudence, still not in conflict with the correct representation of operating events..

In particular, intermediation income resulting from authorial activity, is recorded at the time of the completion of the collection service. The fees for services provided under agreements are recognized on an accrual even if, on the basis of the agreed conditions, the activities carried out during the year can be subject to subsequent verification by the competent bodies and can give rise to adjustments which are recorded when finally ascertained.

The volatility of the Solidarity Fund is included, with separate indication, under "other income", "other operating expenses", "other financial income" and "Interest and other financial charges". The recognition of these positive and negative components of income related to the Solidarity Fund does not affect the profit before tax of SIAE, as the positive or negative imbalance between contributions and benefits of management on the one hand, and the benefits granted and the cost of managing, on the other, respectively, is set aside or deducted from the aforementioned Solidarity Fund recorded under other risks’ Funds

o) Annual income taxes

The charge for income tax is recorded based on the best estimate of taxable income, determined in accordance with current rules. It also takes into account what was held by the accounting standards relating to deferred and prepaid taxes; therefore, deferred and prepaid taxes are calculated on temporary differences between the carrying amounts of assets and liabilities determined according to statutory criteria and the corresponding tax

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values. Deferred tax assets, as well as the tax benefit arising from loss-making carryforwards are recognized if there is reasonable certainty of their future recovery and deferred tax liabilities are not recognized when there is little chance that the liability will arise.

p) Memorandum accounts

Commitments and guarantees are recorded in the memorandum accounts at the normal value. The securities and sureties deposited in favour of the company are listed in the memorandum accounts for an amount equal to the amount of the guarantee. The memorandum accounts show the overall SIAE guarantee to the pension fund for "the payment of pensions or allowances paid" in the Statute of the Fund.

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Management Report 2015

Balance Sheet

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ACTIVE

B) ASSETS

I) Intangible Assets

The table below indicates the items’ fluctuations.

3) Industrial patent rights and rights to use intellectual property (software and licenses):

The item refers to the costs incurred (in the current year and previous years) for licensing of electronic programs; software developed in the company with the help of external consultants, the licenses for which are granted when purchases of machines for electronic processing and programs consist of "packaged applications" that undergo continuous updates. The values are shown net of amortization, as determined in point a) of the evaluation criteria. The increase for the year 2015, amounting to € 1,279,468, is mainly attributable to the strong investments made in the purchase of software aimed at the digitization of IT processes.

Historic cost Amortisation Residual value

Value on 31.12.2014 24.496.700 23.569.843 926.857

Gains 1.279.468 0 1.279.468

Losses (832) (630) (202)

Annual amortisation 0 1.235.875 (1.235.875)

Value on 31.12.2015 25.775.336 24.805.088 970.248

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II) Tangible assets

1) Land and buildings

The item "Land and buildings" during 2015 has only moved in a downward trajectory. The change is attributable to amortisation during the year, as determined in step b) of the evaluation criteria..

2) Plants and machinery

Changes during the year show an increase of €85,585, mainly due to the replacement and upgrading of the alarm system (€ 54,473).

The decrease (€ 98,932) is in relation to ordinary disposals of almost fully depreciated and equipment, for the most part replaced with more technologically efficient equipment. Depreciation amounted to €114,147, determined in accordance with point b) of the evaluation criteria.


Historic costs of buildings 8.576.295

Revaluation pursuant to Law 72/1983 262.525

Revaluation pursuant to Law 413/1991 3.883.200

Revaluation pursuant to Law 342/2000 3.867.652

Revaluation pursuant to Law 350/2003 art.2 4.062.179

Revaluation pursuant to Law 2/2009 art. 15 11.230.496

Value on 31/12/2014 31.882.347 8.039.577 23.842.770

Annual amortisation 2.079 (2.079)

Value on 31/12/2015 31.882.347 8.041.656 23.840.691


Value on 31/12/2014 5.906.108 5.465.727 440.381

Gains 85.585 85.585

Losses (98.932) (96.111) (2.821)


Value on 31/12/2015 5.892.761 5.483.763 408.998

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3) Industrial and commercial equipment

Gains amount to €1,816,829, mainly due to the purchase of computer equipment (€1,764,929) such as hardware, printers, etc. In particular: disks for data storage system, server and active network equipment. Losses in the year, amounting to €627,609, relate to the disposal of equipment, mainly computers (PC and printer) that are obsolete or no longer usable and almost fully amortized. Depreciation amounted to €836,676, determined in accordance with point b) of the evaluation criteria

III) Financial assets

1) Investments

d) Other companies

The company has an investment in Fast Track 'The digital Copyright Network' Société par Actions Simplifiée equal to 9.84% of the share capital (€37,000). This asset was recorded in the financial statements on the basis of the purchase cost. Fast Track has operated a redistribution of shares for participating companies on the basis of the investments made and actual contributions to projects; SIAE sold 1,301 shares (€1,301) and therefore the value stood at € 3,642.

SIAE has a stake (€15.24) of the share capital (€396) of the BIEM (Bureau International des societes gerant les droits d'Enregistrement et de Mecanique reproduction). It is worth noting that during 2015 SIAE’s investment, equal to 9% of the share capital (€1,000), in GRD Design SaS Société par Actions Simplifiée was liquidated. On 30/01/2015 GRD has repaid the capital shares in connection with the liquidation. On 31/12/2014 this investment was recorded in the accounts as an asset on the basis of the purchase price amounting to €90.


Value on 31/12/2014 15.726.031 14.759.100 966.931

Gains 1.816.829 1.816.829

Losses (627.609) (623.325) (4.284)


Value on 31/12/2015 16.915.251 14.972.451 1.942.800

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2) Receivables

d) to others

The decrease amounted to €586,539, which is attributable to the repayment of instalments received during 2015 for loans to employees and agents.

The item shows:

- receivables from employees and agents for consideration for loans, granted according to internal regulations, amounting to a total of €1,810,925. These loans are secured, respectively, with the severance pay and the end of service allowance. It is noted that, as part of the loans, those with maturations within one year amounted to €88,489, while instalments due beyond this period amounted to €1,722,436, of which €488,530 have a maturity of over five years;;

- advances to the pension fund (€5,154,071) represent the amounts paid by SIAE in 2011 and 2012;

- the right to buy regarding ISAN Italia for an amount of €4,000;

- the amount payable by the Norma Fund on a standard loan of €77,427,805 - secured by an interest-bearing pledge - granted by SIAE on the basis of a contract signed on 19th December 2012 with Sorgente SGR SpA (manager of the Fund Norma). This funding has enabled the purchase by the Fund Norma of 100% of the units of the Fund held by the Aida Pension Fund.

Receivables from others

Value on 31/12/2014 84.256.880

Gains 726.460

Losses (586.539)

Value on 31/12/2015 84.396.801

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3) Other securities

The description of these securities, the nominal value and the balance value are shown in the table in Annex 2..

The net change for the year of about 10.5% (€88.36m) is attributable to the changes highlighted below:

- purchase of bonds or government bonds with a carrying value of approximately €220m;

- transferring of the Solidarity Fund bonds of €60m and €295m SIAE securities to the financial investment fund "Pentagram Fund";

- The sale of bonds with a carrying value equal to €483,360,000;

- Transfer of securities within current assets amounting to €120m; of which €80m relating to bond notes acquired during 2015.

The Norma Fund and the Nabucco Fund remain unchanged compared to 31/12/2014 and amounted to €164,609,996 and €31,200,000.

The transactions described above fall within the policy adopted by SIAE for best prospective remuneration.

Description Value on 31/12/2014 Gains Losses Value on 31/12/2015

SIAE securities 586.666.079 220.000.000 603.360.000 203.306.079

Fs securities 60.000.000 60.000.000 0

“Financial Fund” securities 295.000.000 295.000.000

“Financial Fund” Fs securities 60.000.000 60.000.000

“Real estate fund” Fs securities 31.200.000 31.200.000

“Real estate fund” securities 164.609.996 164.609.996

Total 842.476.075 575.000.000 663.360.000 754.116.075

Descrizione Banca d'Italia Code ISIN carrierCommon Real Estate Investment Norma Fund ITF0459900 IT0004787526

Common Real Estate Investment Nabucco Fund ITF0468700 IT0005027849

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C) CURRENT ASSETS

II) Receivables

1) From trade (members, agents and others)

a) from members and agents

1. from members and principals for social contributions and annual fees: the item records the amount of fees and contributions payable to SIAE for 2015 and for prior years not yet received, amounting to €979,108, adjusted by appropriate provisions for doubtful accounts (€343,007). The provision amounted to €981,405 at the end of 2014. In 2015 we proceeded, using this fund, to erase claims relating to members defaulting on 31/12/2014, despite the actions taken to promote recovery, and the elimination of positions relating to the shares of young people under 30 years. The latter use has become necessary following the decision of the Management Board, which approved free membership for members under thirty.

II) Receivables Value on 31/12/2015 Value on 31/12/2014 Difference

1) From trade

a) from members and agents

1) from members and agents for annual contributions and membership fees 979.108 1.386.419 (407.311)

- Provisions for doubtful membership fees accounts A9 (343.007) (981.405) 638.398

636.101 405.014 231.087

2) from members and agents 67.950.411 67.777.833 172.578

other receivables from members and agents 44.431 98.738 (54.307)

- Provisions for doubtful advances accounts (389.571) (482.640) 93.069

67.605.271 67.393.931 211.340

68.241.372 67.798.945 442.427

b) payments for private copy 2.110.943 967.180 1.143.763

c) from other agents 1.365.061 1.999.709 (634.648)

d) from users 31.553.939 31.822.000 (268.061)

e) from other 184.746 235.521 (50.775)

103.456.061 102.823.355 632.706

4-bis) Tax credits

1) from tax authorities 20.222.147 18.864.440 1.357.707

20.222.147 18.864.440 1.357.707

4-ter) Deferred tax 10.973.397 12.118.972 (1.145.575)

5) From other

a) from employees 341.659 287.097 54.562

b) from banks 29.048 153.276 (124.228)

c) other receivables 2.547.768 4.602.094 (2.054.326)

- Provisions for doubtful other receivables (487.330) (632.942) 145.612

2.060.438 3.969.152 (1.908.714)

2.431.145 4.409.525 (1.978.380)

Receivables total (II) 137.082.750 138.216.292 - 1.133.542

Value on 31/12/2014 Uses Gains Value on 31/12/2015

981.405 638.398 - 343.007

PROVISIONS FOR DOUBTFUL MEMBERSHIP FEES

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2. from members and agents for advances and other receivables: this item mainly represents the amount of advances granted in accordance with the General Regulations to members and agents, to value the rights collected whilst waiting for them to be distributed at regular intervals. The sum amounted to €67,950,411, is reduced by €389,571; relating to the provision for doubtful accounts specifically created to deal with debts of some members of the Music Section possible recovery actions were unsuccessful. The devaluation also includes advance payments, in evidence for many years, to members whose position was subject to cancellation due to overt arrears in the payment of membership fees. Mail is consistent compared to the previous year.

b) for "private copying payment": this item, amounting to €2,110,943, includes receivables as of 31/12/2015 for bills issued. There was an increase of €1,143,763 compared to 2014, primarily due to an invoice (of high-value) issued in December and paid in the first days of January.

c) others from agents: essentially receivables for invoices issued or to be issued, to various organizations with which the SIAE has agreements or arrangements for the supply of services. As part of the item the following receivables are noteworthy: - A.A.M.S. (€ 496.830); - Agenzia delle Entrate (Tax Revenue Agency) (€ 400.000); - AGCOM (National Regulatory Agency) (€ 32.787); - Società di distribuzione cinematografica per il servizio di noleggio (Film rental distribition service company) (€ 419.592).

d) to users: this item shows receivables (for invoices issued and to be issued as of 31/12/2015) from SIAE repertoire users and includes those which have been issued since 1995 Credit Certifications pursuant to art. 164, n. 3 of Law no. 633/1941 and subsequent amendments, as well as any following transaction integrations. For the recovery of these receivables legal action was pursued.

The amounts recorded are made up mostly of copyright and, in some cases, from legal fees, interest and VAT; refer to the following loan categories:

Value on 31/12/2014 Uses Gains Value on 31/12/2015

482.640 93.069 - 389.571

PROVISIONS FOR DOUBTFUL ADVANCE ACCOUNTS

Receivables from users Value on 31/12/2015 Value on 31/12/2014 Difference- various broadcasters 987.510 1.174.345 (186.835)

- various operators 6.182.626 6.577.729 (395.103)

- receivables from clients in litigation 8.984.858 6.367.667 2.617.191

- international ‘sisters’ 289.344 11.026 278.317

- various users 6.389.924 6.798.407 (408.483)

- users for bills issued 8.719.677 10.892.826 (2.173.148)

Total 31.553.939 31.822.000 (268.060)

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The item "receivables for invoices issued," shows a decrease of €2,173,148. This change is due to a significant collection from March 2015 of invoices issued in previous years to a major private broadcaster and invoices issued to the Public Administration in the last year.

"Disputed receivables" shows an increase of €2,617,191 related to the issue of credit certificates to various customers.

e) from other: this item mainly includes the credit for music performing rights related to the agreement with the Lazio Region (€50,000 in 2015 and €61,000 in 2014).

There are no claims of more than five years, and none due next year.

4-bis) Taxes receivable

The item shows receivables from the State for:

The IRES receivable, amounting to €18,714,239, comprises:

- €11m related to credits applied for in declaration of the 2012 income tax return submitted for the tax year 2011 (€7.5m) and in the declaration 2013 for the tax year 2012 (€3.5m)

- €535,000 for accrued interest on the claim application referred to above;

- €3,560,822 for excess taxes withheld in respect to the tax liability, amounting to €492,066; withholdings on c/cs in 2015 amounting to €1,519,602;

- €3,618,417 for receivables due to the SIAE as a result of legislation introduced by art. 2, paragraph 1, of the Dl. No 201/2011 which refers to income tax deductability (IRES), and IRAP on the taxable portion of personnel costs.

The receivable for IRAP 2014, during 2015, was used completely for tax compensation. During 2015 tax payments were not paid because, by virtue of regulatory updates in this area, it was reasonable to assume the lack of tax base.

4-ter) Deferred tax

Tax Receivables Value on 31/12/2015 Value on 31/12/2014 Difference

- IRAP receivable - 430.005 (430.005)

- IRES receivable 18.714.239 17.900.466 813.773

- receivables from tax authorities for IVA (VAT) 1.304.057 334.662 969.395

- other receivables from tax authorities 203.851 199.307 4.544

Total 20.222.147 18.864.440 1.357.707

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Deferred tax as of 31st December 2015 amounted to €10,973,397 (see table "deferred tax" in point 22 of the income statement) and due to:

- the re-absorption of part of the resources allocated in previous years (use of taxed provisions, etc.);

- the tax registration of further provisions (for reorganization, for the result of wage employees, etc);

- the tax registration of write-down securities included in current assets.

Deferred tax is based on the reasonable certainty of being able to recover receivables with the taxable income that the Company will be able to generate.

It is also considering the IRES rate reduction from 27.5% to 24% from the tax year following the 31/12/2016 (Stability Law 2016 article 1 paragraph 1).

5) from other

a) from employees: this item shows various receivables (€341,659): for example, expense allowances to be documented, advances on wages, and various credits.

b) from banks and postal administration: this item shows a balance equal to €29,048, mainly composed of inventories of postal franking by 31/12/2015.

c) altri crediti: these receivables of various provenance amount to €2,060,438, down by €1,908,714 compared to 2014..

“Other receivables” mainly includes:

- €698,530 for advances €449,908 of which being made to the subsidiary Fast Track SaS and €248,622 for trade payments; - €251,323 for uncashed checks written down by €208,934; - €84,332 for advances paid to GESAC by way of contribution to operational costs. The amount will be finalised at the close of the Entity Financial Statements; - €52,735 for deposits for utilities and leases payable; - €248,073 for receivables from tenants for rents and utilities arrears, written down by €93,396; - €727,027 for other receivables partially cashed in early next year. There are no claims of more than five years, and none due next year.

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III) FINANCIAL ASSETS NOT HELD AS FIXED ASSETS

This item, for a value of €112,930,000 (summarized in Annex 2 – securities in current assets), refers to the valuation of the following titles:

- Credit Suisse China New Balance Bonds, maturation 16/09/2026;

- Credit Suisse Dynamic Allocator Bonds, maturation 22/09/2026;

- Goldman Sachs Asset Cross RP Bonds, maturation 15/09/2026;

- Nomura European Real Estate Bonds, maturation 15/09/2026;

- JPM Dax Bonds, maturation 15/09/2026;

- Citigroup Commodities Congestion Bonds, maturation 09/17/2026

On the basis of market valuations a write-down was recorded amounting to €7.07m on the nominal value (see the item D / 18).

The difference in this item amounted to €92,634,000 mainly because of:

- The sale of the Bank of America Bofa Master Bonds 20/09/2011 - 20/09/2016 amounting to €20.296m (depreciation €19,400);

- The reclassification of the securities described above (€112.93 million) from Assets to Current Assets, to continue to pursue the goal of increasing the Pentagram Fund;

IV) CASH AVAILABILITY

The liquidity situation as of 31/12/2015, representing an increase of 23% compared to that of 2014, attributable to a reduced use of resources in securities and other financial products. The final value of deposits (€267,582,504) is divided as follows:

Description Value on 31/12/2015 Value on 31/12/2014 Difference

Bank and postal SIAE deposits 264.585.328 214.979.837 49.605.491

Bank and postal Fs deposits 2.997.175 1.501.008 1.496.167

Cash and cash equivalents 12.395 11.847 548

Total 267.594.899 216.492.692 51.102.207

on bank current accounts (c/a) 228.826.774

on postal c/a 754.836

on timed bank c/a 35.000.000

on Fs banking c/a 2.997.175

on PayPal web receipt c/a 3.718

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D) ACRRUED INCOME AND PREPAID EXPENSES

“Various accrued income" essentially comprises:

- €4,664,311 for interest earned in 2015 on SIAE's securities, classified as "financial assets";

- €1,054,682 for interest accrued as of 31/12/2015 on timed deposits.

The change in SIAE accrued income of €1,799,182 over the previous year is primarily due to the investment made in 2015 in the Pentagram Fund.

"Various SIAE prepayments" (€1,018,887) mainly includes recognition of anticipated costs relating to employees health insurance.

.

Description Value on 31/12/2015 Value on 31/12/2014 DifferenceSIAE accrued income 5.744.224 7.543.405 (1.799.182)

Fs accrued income - 484.110 (484.110)

SIAE prepayments 1.018.887 11.136 1.007.752

Total 6.763.111 8.038.651 (1.275.539)

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PASSIVE

A) NET ASSETS

The following are the fluctuations that occurred during the year:

Movements in net assets are due to:

- The allocation of the 2014 profit, amounting to €3,463,966, to:

- The increase of the permanent reserve by €1,731,983;

- The increase in the extraordinary reserve by €1,558,785;

- The purposes mentioned in art. 2, paragraph 2, of the Statute (Resolution of the Supervisory Board June 19, 2013) for €173,198;

- The results for 31/12/2015 amounting to €315,583

Description Value on 31/12/2014 Gains Losses Value on 31/12/2015

III) Revaluation reserves

Revaluation reserves

pursuant to L. 413/1991 - - - -


pursuant to L. 342/2000 39.150.070 - - 39.150.070


pursuant to L. 350/2003 41.007.241 - - 41.007.241


pursuant to L. 2/2009 11.564.615 - - 11.564.615

91.721.926 - - 91.721.926

V) Statutory reserves

1) Permanent reserve 13.655.285 1.731.983 - 15.387.268

2) Extraordinary reserve 9.652.278 1.558.785 - 11.211.063

23.307.563 3.290.768 - 26.598.331

VII) Lira/Euro conversion reserve 237 - - 237

VIII) Annual deficit/surplus carried over - - - -

IX) Year result 3.463.966 315.583 (3.463.966) 315.583

Net assets total 118.493.692 3.606.351 (3.463.966) 118.636.077

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The table shows that in 2015 the company's reserves were not used.

In accordance with the provisions of art. 2427-bis of the Civil Code, summarised statements relating to the movement of the net asset items in prior years and the availability of the equity reserves are published below. Table of net asset reserves availability:

DescriptionRevaluation

reserves

Statutory

reserves

Other

reserves

Deficit

carried overYear result Total

01.01.2014 91.721.926 21.805.167 237 - 1.581.470 115.108.800

Year result destination:

- Attribution and Reserves - 1.502.396 - - (1.502.396) -

- Payments under art.2

para. 2, SIAE Statute- - - - (79.074) (79.074)

Previous year result - - - - 3.463.966 3.463.966

31.12.2014 91.721.926 23.307.563 237 - 3.463.966 118.493.692

Year result destination:

- Attribution and Reserves - 3.290.768 - - (3.290.768) -

- Payments under art.2

para. 2, SIAE Statute- - - - (173.198) (173.198)

Current year result - - - - 315.583 315.583

31.12.2015 91.721.926 26.598.331 237 - 315.583 118.636.077

Description AmountUtilisation

possibilities

Quota

available

Capital reserves:

Revaluation reserve pursuant to L. 21/11/2000 n.342 39.150.070 B 39.150.070



Revenue reserves:

Permanent reserve 15.387.268 B 15.387.268

Extraordinary reserve 11.211.063 B 11.211.063

Other Reserves 237 B 237

Total 118.320.494 118.320.494

118.320.494

B: to cover losses

Non-distributable quota

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B) PROVISIONS FOR LIABILITIES AND CHARGES

The table shows the fluctuations that occurred during the year. The following notes provide additional detail about the most significant changes in the composition of the Provisions for risks and charges

1) Reserve for pensions and similar obligations

a) Agent severance indemnity: this item includes provisions (€1,416,541) made to cover the charges of severance provided for by agreements in force on 31/12/2015. Decreases relate to the allowances paid to agents terminated during the year.

b) Supplementary fees for severance of employees’ assessment activities: the amount of the provision refers to the residual amounts referred to in previous years. The salary for assessment activity has been modified as a result of the new employee contracts signed in 2012.

3) Other

a) Solidarity (Fs) Fund, "bonus fund" and "equity fund", under Art. 5 of the existing regulation "Solidarity Fund among SIAE members" indicate the provisions made in prior years and now form the capital base of the Fund, together with other funds described below.

Value on

31.12.2014Gains Losses

Value on

31.12.2015

1)

a) agent severance indemnity 30.869.945 1.416.541 (2.587.812) 29.698.674

b) supplementary fees for severance of

employees’ assessment activities30.580 (10.954) 19.626

30.900.525 1.416.541 (2.598.766) 29.718.300

3)

a) Solidarity Fund

- "services payment" fund 3.202.242 3.202.242

- "equity" fund 6.108.180 6.108.180

- "future solidarity benefits restricted” fund 80.698.270 139.594 80.837.864

- permanent reserve 2.866.024 2.866.024

92.874.716 139.594 - 93.014.309

b) risks and charges related to management 8.263.838 1.360.872 (928.140) 8.696.570

c) Pension fund restructuring charges 11.849.340 (670.000) 11.179.340

d) risks of corporate restructuring 21.000.000 4.419.821 (5.419.821) 20.000.000

e) employee bonuses 3.600.000 3.403.449 (3.403.449) 3.600.000

f) charges for insurance contributions 152.900 (134.400) 18.500

137.740.794 9.323.735 (10.555.809) 136.508.719

168.641.319 10.740.276 (13.154.575) 166.227.019Total

Description

For pensions and similar obligations

Total 1)

Other

Total 3)

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In 2015 they have not been subject to changes

The "“future solidarity benefits restricted fund" was, however, established in 1995, and reports revenue in excess of operating outputs. The "permanent reserve" is, like the "performance pay fund" and "equity fund," an internal capacity facility. The fruits of this endowment are for the delivery of periodic contributions, additional benefits, scholarships, etc. in favour of Member Creators who make a special application and meet certain age requirements, income, etc,. The rules are defined in the commissioner resolution of 21th February 2013 (effective February 28th 2013), which updated the rules of the SIAE Solidarity Fund which came into force from 1st January 2012. For further analysis of items related to the Solidarity Fund, please refer to the specific section of this document.

b) Management risks and expenses: The Fund recorded decreases of €928,140, mainly related to the settlement of disputes with staff. The increases amounted to €1,360,872 due to expenses accrued against agents and trade. INPS contributions have been prudently set aside for which there is an ongoing assessment procedure to ascertain SIAE’s payment obligation.

c) Pension Fund restructuring charges: The Fund consists of charges (€11,179,340) payable by the SIAE to meet commitments associated with pension fund restructuring, defined on the basis of the protocol of understanding signed between SIAE and the Fund on 22nd December 2011. The fund has decreased by €670,000 to meet the requirements necessary for the incentivised liquidation of matured positions enrolled in the pension fund and any administrative expenses. The Fund also includes the write-down of a loan granted by the SIAE of about €5.1m

d) Business reorganisation risk charges: the Fund, as of 31/12/2015 amounts to €20m and represents the necessary resources for the company's reorganization in the course of the implementation of the Strategic Plan. The increase of €4.4m is related to the updating of the Strategic Plan 2015-2016 which provides a greater number of resources to esodare (about 100), on a voluntary basis, than originally planned and a mix between the age of employees and the amount to be paid to esodabili employees.

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C) PROVISION FOR EMPLOYEE SEVERANCE

Please note that the forecasts were implemented according to rules set down by the Finance Act 2007 and implementing decrees.

Among the most significant decreases, the following are highlighted:

- The amounts paid to employees who ceased service during the year (€1,360,256),

- Advances granted (€471,728), out of the TFR, at the request of the parties concerned (in accordance with Law no. 297/1982)

- Payments made in favour of integrative supplementary pension schemes based on choices made by employees (€2,076,869),

- Allocation, from the bottom, of the substitute tax on the revaluation of 2015, according to art. 11, paragraph 3, of Legislative Decree. N. 47/2000 (€ 60,347),

- The Fund for the INPS (€ 1,786,284).

The increases relate to provisions accrued in the year in favour of personnel (€4,559,415).

.

DescriptionValue on

31.12.2014Gains Losses

Value on

31.12.2015Employee termination indemnity 25.241.011 4.559.415 (6.085.794) 23.714.632

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D) ACCOUNTS PAYABLE

4) Due to banks: this item includes withheld taxes on time deposits outstanding, expenses payables, commissions and fees for the estate of the bank/postal c/a

7) Due to trade: represents the debt balance to trade for goods and services purchases made by 31/12/2015. The increase of €518,178 compared to 2014 is attributable to expenses incurred in the last months of 2015.

12) Taxes payable: this item (equal to €9,161,062) refers mainly to payables for substitute tax on capital gains of €3,959,947, and the payables due to tax authorities for income tax, withheld tax and VAT, related to December, paid the first months of 2016.

13) Payables due to pension and social security institutions: This item includes the for:

- Byblos Fund and other pension funds for €1,555,817;

- The Pension Fund, amounting to €403,778, relating to contributions on the early liquidation of a number of positions;

- Social security contributions from salaries for the month of December 2015 (€1,295,002), paid with monthly salaries in January 2016, for employees and managers.


4) 296.241 327.147 (30.906)

7) 17.485.789 16.967.611 518.178

12) 9.161.062 13.861.208 (4.700.146)

13) 3.269.116 3.890.690 (621.574)

14)

a) to members, agents and their dependents 819.681.352 764.805.047 54.876.305

b) to various for “private copy payments" 151.711.352 147.469.790 4.241.562

c) to other agents 1.231.544 1.028.252 203.292

d) to components of various corporate organs and bodies 21.510.646 22.044.026 (533.380)

e) to components of various corporate organs and bodies 473.223 305.173 168.050

f) to employees 9.934.096 9.275.209 658.887

g) other payables 45.929.450 43.549.716 2.379.734

Total 14) 1.050.471.663 988.477.213 61.994.450

1.080.683.871 1.023.523.869 57.160.002Accounts payable total

Due to banks

Due to trade

Taxes payable

Payables due to pension and social security institutions

Other payables

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14) Other payables

a) to members, agents and their dependents: this item represents the net proceeds of the royalties to be distributed, in accordance with the regulation procedures and time limits; i.e. amounts not yet attributed for different reasons (disputes, deposit irregularities, registration, unidentified, etc.). This shows an increase compared to 2014 (+ 7%) related to the increase, amounting to €56,813,655, of rights yet to be distributed. For more details, see the table below, which also shows the net debt as of 31/12/2015:

b) to various for "Private Copy payments". This item amounts to €151,711,352 and includes the amounts received, net of SIAE entitlements, awaiting allocation and distribution to stakeholders (€104,181,950). The difference, equal to €4,241,562, is related to the significant increase in receipts (€51,643,781), and is consistent with the allocation of rights during the year.

c) to other agents: this item (€1,231,544) shows the proceeds, net of premiums payable to SIAE, for membership fees, related rights, insurance premiums, and Production Music rights paid to agents in the first months of 2016.

d) to operators and others for provisional and security deposits: this item (€21,510,646) relates almost entirely to deposits made by operators to guarantee the payment of royalties.

e) to components of various corporate organs and bodies: these are amounts that were still to be paid as of 31/12/2015 (€473,223).

f) to employees: debt at year end mainly includes charges for holidays matured by employees as of 31/12/2015 (€701,693) and debts for wages (€8,096,279). The latter recognised the salaries for the month of December, exits and performance executive bonuses forecast by CCNL

g) other payables: this item mainly includes payables for "copyright awaiting receipt" (equal to €33,427,980), against which invoices or credit certificates are issued. The counterpart, (net of VAT for billing) is among the receivables from users. The category also includes the "interest earned on copyright in dispute", for €389,275, calculated in accordance with art. 84 of the General Regulations.

The remaining €12,112,194 relates largely to several copyright debts of private copy to be given to sections.

There are no claims of more than five years, and none due next year.

Description 2015 2014 Difference

Copyright receipts 570.881.131 520.996.075 49.885.056

Private Copy (Q. Authors) 54.589.831 39.802.462 14.787.369

Commissions (95.581.446) (87.722.676) (7.858.770)

Rights to be distributed 529.889.516 473.075.861 56.813.655

Net payables as of 31/12 751.470.176 696.929.557 54.540.619

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E) ACCRUED EXPENSES AND DEFERRED INCOME

"Miscellaneous accrued expenses" includes the portion of accrued costs related to the purchase, at a premium, of the BTP 5.5% (matures 1/11/2022).


Various accrued SIAE expenses 197.480 51.846 145.634

Various accrued Fs expenses - -

Various deferred incomes 5.528 5.525 3

Total 203.008 57.371 145.637

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MEMORANDUM

In item a) the securities accounted for are: guarantees, warranties, booklets and policies deposited by operators and other users to guarantee the payment of dues.

This item includes the amount of:

- The SIAE funding pledge to the Pension Fund to meet the obligations under the Statute of the Pension Fund;

- The pledge from the Fund Norma on the loan granted by SIAE, on the basis of the contract signed on 19th December 2012 for the purchase of the AIDA Fund shares (€77,427,805);

- The amount of penalties and fines imposed by the Music Section ex art. 10 of the SIAE General Regulations. These resources, once the procedure laid down by the General Regulations is completed, will become available for distribution.


a) guarantees of operator securities 3.650.972 3.795.049 (144.077)

b) Pension Fund benefits guarantee 11.179.340 11.849.340 (670.000)

c) Norma Fund financing pledge 77.427.805 77.427.805 0

d) Penalties imposed pursuant to art. 10 332.007 124.997 207.010

Total 92.590.124 93.197.191 (607.067)

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Income Statement

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INCOME STATEMENT

The items that make up the "income statement" are on display in a vertical format in compliance with art. 2425 Civil Code. With reference to this mode of representation, it is evident that the difference between "value of production" and "production costs" (A - B) is "historically" and "physiologically" negative in relation to the unique nature of the company, that is visible in the contribution to financial income (which ordinarily constitutes a large share of total income) a substantial component of ultimately breaking even.

Like in the past, the inflows arising from the collection of copyright precede outgoing flows in favour of the Members. This is due to the time needed to allocate rights and more importantly to the complexity brought by the distribution rules laid down each year by orders approved by the Section Boards. During 2015, therefore, the Company has to conduct financial management of the sums collected. The results of such activities form the main part of financial income and are recorded in the financial statements in a different section from that of the production value. The above results contribute in no small measure to containing the operating deficit from operations.

It is also worth highlighting that the sums received by the company arising from collection services are not considered an item of income in the income statement, as they are to be shared between the Members. The commissions paid to SIAE for the collection service, carried out mainly in the authorial sector, are recognised in the revenue reported in the "production value"

The activities are conducted entirely within Italy.

Illustrated below is the information required by law and other, still useful, information for the purpose of easier understanding of the "income" for 2015.

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A) PRODUCTION VALUE

1) Revenues from sales and services

Below is a breakdown of revenues and income from sales and services:

It should be noted that the revenue and income of "commissions" on copyrights are viewed as falling in the period of completion of collection. The following table shows the receipts and the related income (in principle consisting of "commissions") relating to copyright and to the institutional facilities, "Private Copying", and relations with certain institutions (SCF, AFI , Fipe, etc.).

Revenues from sales and servicesValue on

31/12/2015

Value on

31/12/2014Difference Diff. (%)

Shares and related services 9.366.379 11.714.299 (2.347.920) -20,0%

Copyrights and institutional services on commission 97.214.191 89.272.168 7.942.023 8,9%

of which: institutional services with remuneration of 100%

- DOR Sector 14.250 15.375 (1.125) -7,3%

- OLAF Sector 442.056 505.296 (63.240) -12,5%

- Cinema Sector 160.521 161.719 (1.198) -0,7%

- PRSW 71.666 33.765 37.901 112,2%

- PRC 41.739 41.447 292 0,7%

Total 730.232 757.602 (27.370) -3,6%

Refunded Private Copy expenses 3.540.292 4.633.976 (1.093.684) -23,6%

Cooperation for a-b) from the Financial Administration

agreement 27.925.500 29.300.608 (1.375.108) -4,7%

Various delegated services to institutions 2.138.713 2.096.571 42.142 2,0%

of which: Production Music DRF Agreement 1.066 3.380 (2.314) -68,5%

State Monopoly agreement 2.000.000 1.981.010 18.990 1,0%

Liutai agreement 677 7.670 (6.993) -91,2%

Rental service 1.003.886 830.300 173.586 20,9%

of which: Medusa Film Srl rental service 15 195 (180) -92,3%

FIGC agreement 50.000 50.000 0 0,0%

Statistical Office data supply service 226.064 226.079 (15) 0,0%

Ticket sales, records and registries revenue 930.024 931.795 (1.771) -0,2%

Administration fees 5.633.579 5.725.102 (91.523) -1,6%

Ticket stamping 57.785 61.728 (3.943) -6,4%

Endorsement rights 3.980.228 3.499.958 480.270 13,7%

Burcardo library proceeds 1.654 2.856 (1.202) -42,1%

Complementary copyrights 6.184.828 6.618.172 (433.344) -6,5%

AGCOM agreement proceeds 65.574 0 65.574 -

Total 160.319.373 156.952.291 3.367.082 2,1%

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In the area of intermediation services there was an increase in receipts compared to the previous year of 9.5%. Adding the proceeds related to Private Copy this change increased to 16.8%. For more details about this item, please refer to the description in the Management Report. In terms of income, related to collections, we see an increase of Copyright of 8.9% compared to last year. Including the proceeds from Private Copy, the overall increase was 7.3%. Revenues derived from "various delegated services to institutions" totalled €2,138,713 and also include related rights (SCF) and Production Music (€1,066).

As part of the contract drafting services, the proceeds related to the agreement with the tax authorities for cooperation in ascertaining VAT, amounted to €27,925,500 (-4.7% compared to 2014) and include:

- the anticipation of co-operation in 2015 (€27m);

- the adjustment for 2014 (€400,000);

- the incentive fee for the work done in 2014 (€100,000);

- fees (€ 425,500) for verbalization activities of 2014.

Film rental-related activity resulted in revenue of €1,003,886, an increase of €173,586 (+21% compared to 2014), resulting from the overall good performance of films from the affiliated rental companies. The collaboration agreement with the Autonomous Administration of State Monopolies (AAMS) generated revenues of €2m (+1% compared to 2014) in relation to the number of accesses made during the year.

Revenues from the sale of tickets, records and registers recorded income of €930,024, in line with the previous year.

2015 2014 Delta % 2015 2014 Delta %

Lyrics 7.981 8.851 -9,8% 1.101 1.177 -6,4%

DEM Music 292.774 283.922 3,1% 57.314 55.439 3,4%

Music Broadcasting 113.208 104.098 8,8% 14.320 13.121 9,1%

Music DRM 17.671 17.124 3,2% 1.687 1.617 4,3%

Multimedia 16.298 10.912 49,4% 1.630 1.091 49,4%

Music total 439.951 416.056 5,7% 74.951 71.268 5,2%

DOR 53.099 54.614 -2,8% 8.284 8.801 -5,9%

OLAF (including PRSW) 17.802 15.785 12,8% 3.882 3.493 11,1%

Cinema (including PRC) 55.238 29.013 90,4% 8.995 4.533 98,4%

Copyright Total 574.071 524.319 9,5% 97.214 89.272 8,9%

"Private Copy” payments 129.630 77.987 66,2% 3.540 4.634 -23,6%

Copyright and Private Copy total 703.701 602.306 16,8% 100.754 93.906 7,3%

Various agreements 20.454 19.982 2,4% 2.124 2.081 2,1%

Total 724.155 622.288 16,4% 102.878 95.987 7,2%

Intermediation and institutional services (€/000)Income Proceeds

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The proceeds for endorsement services totalled €3,980,228, an increase of 13.7% compared to 2014 considered in line with the recovery of the videographic phono market. In this context receipts related to countersigns issued to companies of general contract holders increased.

The administrative fees for €5,633,579 are in line with the previous year and mainly consist of commissions on administrative rights.

Note also that in the year 2015 complementary receipts were reclassified into production value, amounting to €6,184,828 as a result of the change. The amounts collected by way of sanctions and penalties prevail, in 2015, on those relating to default interest.

5) Other revenues and income

"Other revenues and income" amounted to €4,969,419, showing an increase of 1% compared to 2014. As part of "other income", the "rental income" amounted to €220,516 (-13% compared to 2014). This item includes, most significantly:

- €1,212,909, the "turning point"in separate accounts (Solidarity Fund and Endorsement Management);

- €1,438,799, related to amounts withdrawn from sectional accounts (Cinema and OLAF) in support of cultural activities and individual IT projects of the Cinema section

- €244,060, legal expense reimbursement;

- €166,398, the reimbursement of educational expenses financed by public funds (FORTE and FONDIR);

- €292,883, the reimbursement, out of the sectional DOR account, from reducing commissions (14% to 12%) on receipts from the "broadcasting" sector.

B) COSTS OF PRODUCTION

Production costs amounted to €184,504,586, representing an increase of 1.3% over the previous year.

6) For purchases: €1,377,568, a decrease of €121,430 (8.1% less than 2014) due to the efficiency of the policy on stocks stamps and anti-counterfeiting labels implemented during 2014.

7) For services: this amounted to €76,601,335, an increase of €7,176,647 from the previous year (+10.3%), distributed between the different items that compose the second articulation of the income statement.

In particular:

- Remuneration for work done by the agents (€43,090,474), rose by €940,767, as a result of the increase in receipts on copyright;

- The "external assessors," item, amounting to €327,013, evidenced a decrease of 14.2% compared to 2014, confirming the downward trend already demonstrated in previous years. In this context it is emphasized

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that the majority of external assessors are currently managed with a specific "intermittent" contract, the costs of which are recognised in personnel costs.

- Third party processing (€2,974,425), a decrease of €422,001 due to the conclusion of some extraordinary activities carried out in previous years; - Costs related to administrative, technical and legal services (€4,362,645) recorded an increase of about €1,316,815 mainly due to legal counsel. In this context we note the credit recovery activities and expenses related to the arbitration awarded between the SIAE and Confindustria on the subject of fair pay for cinematography;

- Various professional services, amounting to €1,078,796, mainly refer to expenses related to analysis of organizational processes (€223,880), health and tax (€142,333) and to the different benefits for the remainder;

- Consultations, amounting to €2,784,833, relate to legal advice and assistance on institutional issues for the conclusion of the Strategic Plan 2013-2015 and the definition of the Plan 2015-2016;

- "selection and personnel training" amounted to €175,503. For training activities SIAE has activated forms of public funding for employee training (Forte Fund) and managers (Fondir Fund);

- In the area of "other services" for various operating services (€9,148,684), primarily the expenses recognised are:

- "advertising" (€710,528); connected to the communication plan (+€679,951 on 2014);

- “sponsorship" (€813,100); functional implementation of cultural activities and social support (+€74,100 on 2014).

- €1,212,909, the "turning point" on separate accounts (Solidarity Fund and Endorsement Management);

The remaining cost items refer to utilities, maintenance, etc. which overall showed a decrease of €416,160.

- IT services show an increase of €4,296,421; the item includes computer design for the implementation of some applications (online music programs, private parties portal, professional users portal, etc.) and evolutionary maintenance of the SUN management systems, SAP and SIADA.

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The following is a breakdown of the items related to professional and technical services and the various services.

The costs for "other corporate organs and bodies" amounted to €1,110,442 and are largely in line with the previous year.

The following is the statement showing the amount of remuneration paid to the President, the Management Board, the Board of Auditors and the independent audit, in accordance with Article 2427, n. 16 of the Civil Code and art. 16-bis of Decree 39/2010.

Professional and technical servicesValue on

31/12/2015

Value on

31/12/2014Difference

Administrative, technical and legal services

Professionals under contract 351.581 355.972 (4.391)

Real estate technical services 123.312 12.607 110.705

Legal assistance 2.698.300 1.308.701 1.389.599

Various publication collaborations 15.995 23.093 (7.098)

Various professional services 1.078.797 1.242.868 (164.071)

Payment for translations 4.210 6.440 (2.230)

Certified accounting 90.450 96.148 (5.698)

Administrative, technical and legal services total 4.362.645 3.045.829 1.316.816

Consulting

Consulting 2.784.833 1.777.725 1.007.108

Consulting total 2.784.833 1.777.725 1.007.108

Recruitment and staff training

Training courses and professional development 0 0 0

Recruitment and staff training total 175.503 223.329 (47.826)

Professional and technical services total 175.503 223.329 (47.826)

Various services 7.322.981 5.046.884 2.276.097

UtilitiesValori al

31.12.2015

Valori al

31.12.2014Variazione

Maintenance and maintenance fees 2.857.918 3.135.280 (277.362)

Insurance 2.226.367 2.226.135 232

Sponsors 384.076 388.730 (4.654)

Travel, room and board expenses 813.100 739.000 74.100

Computer design and support 987.259 1.160.735 (173.476)

Systems Support 7.236.752 1.689.650 5.547.102

Other computer services 1.346.862 2.734.420 (1.387.558)

Other services 1.426.848 1.297.569 129.279

Total 4.496.818 3.943.645 553.173

Totale 21.776.000 17.315.164 4.460.836

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8) “Use of third party assets” amounted to €11,408,871 and includes the costs relating to leaseholds (equal to €11,228,729) and those for the lease of property and various equipment (amounting to €180,142).

Leaseholds include rental expenses and related management and maintenance expenses. The increase, equal to about €160,711, is attributable to the start-up costs (the intervention will happen in 2016) of renovations and energy efficiency improvements of the Directorate General.

9) Personnel: amounts to € 85,489,865 and contains split charges for leave accrued but not taken by staff as of 31st December 2015, employee health insurance, supplementary pensions, compensation in lieu of notice and the reward system for employees and managers.

The item shows a decrease equal to €2,357,320 (-2.68%) compared to 2014.

For fixed compensation it fell by €787,478, mainly attributable to the policy implemented in recent years on management of holidays accrued.

Social expenses decreased by €1,165,741 due to the deductibility of contributions from INPS of the amounts related to use of permits pursuant to art.33, co. 3, Law no.104/1992 for staff; for regulatory purposes, a provision of the same amount was actioned for risks associated with asset management.

The following sets out the data on the breakdown of personnel:

Payments 2015

President 56.279

Management Board 230.242

Board of Auditors 129.708

Independent Auditing Firm 90.450

Total 506.679

Title

Annual average No. on 31/12 Annual average No. on 31/12

Directors 46 45 46 48

Officials 102 98 108 103

Employees 1.041 1.068 1.076 1.051

Temporary employees 24 20 6 12

1.213 1.231 1.237 1.214

Intermittent contract 52 51 21 56

Total 1.265 1.282 1.257 1.270

2015 2014

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10) Depreciation, amortization and write-downs:

Depreciation, amounting to €2,794,623, is divided between different groups of assets according to the articulation shown in the income statement. The review of these items has been provided with reference to "Assets", and “Receivables” of active assets.

12) Provisions for risks and charges: this item includes, for €1,019,931, provisions for risks and charges related to management. For more details, please refer to items B/3 of "Liabilities".

14) Other operating costs: are recognized at €5,812,393, a decrease amounting to €305,790 (-5%) compared to 2014

The item in question includes:

- solidarity benefits (€1,014,025) and the provision for the solidarity benefits restricted Fund (€139,594)

- entertainment expenses, equal to €48,247, in line with the previous year::

- SIAE activities in the international arena; promoting copyright etc., amounting to a total of €1,342,475 and representing an increase of 81% compared to 2014 due mainly to the promotion of cultural activities (including particular support of "music and mathematics” projects, "Da Libriamoci to scriviamoci" and the promotion of cultural activities in film) as well as membership fees for other international bodies operating in the authorial sphere; it is noted that some cultural projects have been funded by sectional accounts (see "other income").

-various taxes and fees, which amounted to €1,464,167 (+11.3% compared to 2014); The increase relates to "non-deductible VAT" (+€211,109 compared to 2014) in which the non-deductibility parameter is deteriorated as a result of the increase in revenue that is exempt (e.g. Endorsement);

DescriptionValue on

31/12/2015

Value on

31/12/2014Difference

a) Amortisation of intangible assets:

1) Industrial patent rights and rights to use intellectual property

(software and licences) 1.235.875 1.211.765 24.110

Amortisation of intangible assets total 1.235.875 1.211.765 24.110

b) Amortisation of tangible assets:

1) various buildings 587.502 587.502 0

2) plants and machinery 114.147 114.870 (723)

3) industrial and commercial facilities 836.676 532.639 304.037

Amortisation of tangible assets total 1.538.325 1.235.011 303.314

Total amortisation = a) + b) 2.774.200 2.446.776 327.424

c) other asset write-downs

- write-down of tangible assets 0 495.300 (495.300)

d) write-downs of current receivables

- write-down of receivables, current assets, and cash availability 20.423 6.682 13.741

Write-downs total 20.423 501.982 (481.559)

Amortisation and write-downs total 2.794.623 2.948.758 (154.135)

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-Miscellaneous expenditure amounted to €1,803,885, down from the previous year which was marked by significant social support and communication costs; this item also includes "surplus private copy fees reimbursement expenses", which highlights an adjustment of the cost amounting to €50,676; a result of a positive adjustment due to final accounting of costs incurred by SIAE for private copying management.

C) FINANCIAL INCOME AND CHARGES

16) Other financial income: €20,527,147, divided between the various components shown in the income statement, showing a reduction of € 10,204,247 (-33%) compared to the previous year. Interest and income earned on securities (included in fixed assets and current assets) amounted to €14,664,438, of which: €2.5m related to Source (Sorgente) dividends , €10,408,551 to interest on SIAE property titles and €1,755,887 to interest on securities owned by the Solidarity Fund. The interest on SIAE bank and post office accounts increased from €5,870,707 in 2014 to €3,310,283 in 2015, a decrease of approximately 43.61%. The average interest rate of bank and postal current accounts stood at 1.39% compared to 2.25% for the year 2014, a decrease of - 0.86% contributing to a decrease in the average balance of €14,942,045. Interest and other financial income amounted to €2,445,622, relating to interest accrued on the Sorgente SGR loan

17) Interest and other financial charges : "Interest and other financial charges" amount to €336,754, with a decrease of €1,395,881 compared to 2014. The decrease refers to repayment of the loan received by IMI that took place in September 2014.

17-bis) Foreign exchange gains and losses: the year’s fluctuations generated a negative balance of €156.

D) ADJUSTMENTS TO THE VALUE OF FINANCIAL ASSETS

19) Write-downs

During the year it was decided to adjust the balance value of the bonds as per the table below.

SecurityNominal

value

Valuation on

31/12Write-down

JPM DAX 20 €/m 95,37% 926.000

CITYGROUP CITI COMMODITIES CONGE 20 €/m 93,77% 1.246.000

NOMURA EUROPEAN REAL ESTATE 20 €/m 95,23% 954.000

CREDIT SUISSE CHINA NBO 20 €/m 97,42% 516.000

CREDIT SUISSE DYNAMIC ALLOCATOR 20 €/m 91,56% 1.688.000

GOLDMAN SACHS CROSS ASSET RP 20 €/m 91,30% 1.740.000

Total 7.070.000

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E) EXTRAORDINARY INCOME AND CHARGES

20) Extraordinary income

This item totalled €22,397,902, up by €5,481,306 compared to €16,916,596 of the previous year (+32%) This amount consists primarily gains on sales of securities amounting to €21,469,921. 21) Extraordinary charges

The total for this item was €14,349,121, compared to € 9,747,068 in 2014.

The item consists of:

- Losses on sales of securities previously held as fixed assets for €9,666,188;

- Corporate reorganisation costs, amounting to €4,419,821 in support of the Strategic Plan;

- Various extraordinary expenses, for €263,112

22) Taxes

The company's taxes amounted to €1,637,641 and relate to:

- IRES (€492,066);

- release of deferred tax (€1,145,575), resulting from the combined effect of resorption and increases arising from temporary changes. For more details please see the table of fluctuations b) Deferred tax.

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a) Current taxes

SIAE has withheld taxes during 2015 amounting to €1,519,602 which generated a total credit amount of €18,714,239 (see the section on tax credits). As shown schematically in the table below, among the different increases (totalling €19,396,317) the following are especially relevant:

- The total amount of write-downs (of which €7.07m were securities held as current assets);

- Total provisions made during the year (of which employee incentives amount to €3,403,449, risk management activities to €1,360,872 and the Solidarity Fund for €139,594);

- Provisions for corporate reorganization (€4,419,821);

Notable amongst decreases (totalling €12,402,885) are: uses of funds €10,421,409 (of which €5,419,820 of the Fund was used for corporate reorganisation, € 3,403,449 for employee incentives and €1,598,140 for other funds).

SIAE determined the IRAP for the year 2015, taking as the taxable amount the difference between the value and cost of production referred to in subparagraphs a) and b) of Art. 2425 of the Civil Code, excluding the items referred to in points 10), c) and d), 12), and 13), as reported in the income statement acknowledging the legislative amendments made to Legislative Decree. n.446/1997, establishing the Regional Tax on Productive Activities.

In the following table, the calculation of the value of net production for IRAP purposes is briefly summarised, appropriately adjusted for increases and decreases made, in line with the regulations laid down by tax legislation.

It is worth highlighting, among reported increases, the amounts taken by Municipal Tax on Property, taxes on extraordinary income, on charitable donations and on provisions for the Solidarity Fund.

Fiscal year 2015

Positive components of the Income Statement 165.288.792

Negative components of the Income Statement 97.974.367

Increases 4.107.041

Decreases 908.143

Gross production value 70.513.323

Deductions 28.879.950

Deduction of employee personnel residual cost 53.150.959

Net production value (11.517.586)

IRAP -

Fiscal year 2015

Pre-taxes result: 1.953.224

Increases: 19.396.317

Provisions 4.903.914

Corporate reorganisation charges 4.419.821

Write-downs 7.090.423

Other 2.982.158

Decreases: (12.402.885)

Uses of funds (10.421.409)

Already taxed proceeds (1.304)

IRAP deduction 0

Other (1.980.172)

IRES taxable income 8.946.656

IRES 492.066

TAX LOSS DEDUCTION 7.157.324

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Among the decreases it is important to recognise recoveries of some tax deductible costs in 2015. It should be emphasized that the company has taken advantage of deductions from the IRAP tax base, introduced in the 2007 Budget, aimed at reducing the "tax wedge" against companies, and the deduction provided for by the 2016 Stability Law regarding the full deductibility of permanent employee personnel costs. The aforementioned deductions, amounting to €82,030,909, relate to permanent employees (of which €28,879,950 is related to Cuneo tax deductions and €53,150,959 as residue deductible cost), and led to the elimination of basic tax and the resulting IRAP zero balance for the year under review.

b) Deffered taxes

As of 31/12/2015 there are deductible temporary differences amounting to €42,929,449 for which the related deferred tax is €10,973,397, expected with reasonable certainty to be recoverable in future years and also taking into account the effect of taxes deriving from the IRES reduction to 24,% provided for in the 2016 stability Law from 2017.

The principal elements of the deferred taxes are:

- charges related to corporate reorganization, amounting to €20m, which led to a deferred tax effect amounting to €5.01m;

- tax losses determined from the calculation of income tax, amounting to €12,255,635, which resulted in a deferred tax effect amounting to €3,023,698;

- the write-down of securities held as current assets, amounting to €7,070,000, from which arose deferred taxes amounting to €1,944,250.

***********

DESCRIPTION

2014

DEFERRED

TAXES

2015

RESORPTIONS

2015

INCREASES

2015

DEFERRED

TAXES

Temporary IRES

differencesTax base Tax impact (27.5%) Tax base Tax base

2015 DEFERRED

TAXES

Tax impact

(27.5%)

Tax impact

(24%)Total

Administrator’s fees 71.913 19.776 - 57.634 129.547 35.625 - 35.625

Electronic equipment

depreciation- - - - - - - -

Impact assessment of

current security assets- - - 7.070.000 7.070.000 1.944.250 - 1.944.250

Employee incentives fund 3.600.000 990.001 3.403.000 3.403.000 3.600.000 990.000 - 990.000

Executive performance-

based rewards risk fund - - - - - - - -

Corporate reorganisation

charges21.000.000 5.775.001 5.419.821 4.419.821 20.000.000 1.650.000 3.360.000 5.010.000

Current tax losses 19.397.071 5.334.195 7.157.324 15.888 12.255.635 647.000 2.376.698 3.023.698

Max. tax amortisation

(different Passive)- - - (125.733) (125.733) - (30.176) (30.176)

IRES Total 44.068.984 12.118.972 15.980.145 14.840.610 42.929.449 5.266.875 5.706.522 10.973.397

2015 DEFERRED TAXES

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This statement is true, authentic and corresponds to the accounting results. There were no significant events

after the balance sheet date which were not taken into account.

It is reminded that it is operating via the SIAE Supervisory Board pursuant to Law 231/2001, whose activity

is summarized in periodic reports held in the company's records.

President

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Separate Accounting pursuant to art. 24 e 29 of the SIAE Statute

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Introduction

Paragraph 2 of Article 24 of the SIAE Statute, provides that "resources from investigation services and the detection of taxes, duties, fees and charges due on behalf of the State as well as the stock-stamping and mandatory anti-piracy services, respectively provided for in Articles. 181, paragraph 2, and 181-bis of the Law 22nd April 1941 n.633 and subsequent amendments and additions, are the subject of separate accounts with respect to the Management Report” of the SIAE.

Article. 31 defines Solidarity activities for creators implemented through the Solidarity Fund, subject to separate accounting. Article. 29 stipulates that separate accounts are subject to the approval of the Supervisory Board. The General Regulations, in articles. 87 and 88, define the Management statements for separate accounts. The SIAE Management Report "consolidates" and summarizes the overall results for the year, generated by the company, from the Solidarity Fund and the management of stock-marks and the mandatory anti-piracy service.

Explanatory notes

Separate accounts reveal the results of operations, below asset appearances and/or incomes, originating from specific activities. The Solidarity Fund also represents the equity component, as it has dedicated assets. Stock marking and mandatory anti-piracy service management, which will be defined as Endorsement Management generates mostly positive and negative elements of income, while the balance sheet only expresses the debtor or creditor part relating to SIAE, synthesized in the operating result. The recognition of services that SIAE pays for in favour of separate accounting, under the item "Costs of Management and Operations", are awarded on a parametric basis, with criteria set for sectional analytical accounts (art. 86 of the General Regulations).

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Separate Accounting Solidarity Fund

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Solidarity Fund

The SIAE has adopted a new regulation, which entered into force on 1st January 2012, implemented by Article. 31 of the new Statute, and updated 21st February 2013.

The new provisions provide for the payment of contributions, strictly personal and non-reversible, nor transferable in favour of anyone. In particular:

- a Periodic Contribution every three years, up to four times that may not exceed, for each beneficiary, the annual amount of €3000, combined with the Additional Contribution. Requirements: 65 years of age, 35 years of membership to SIAE, income from sources other than copyright less than €10,500 (extendable to €13,200 including copyrights), and received at least ten nonconsecutive years of royalties income of no less than an annual average of €2,000;

- an Additional Contribution that may not exceed €4,500, payable to the same recipient only once, combined with the Periodic Contribution. Requirements: in addition to the provisions above, it is necessary to have received royalties, for at least five years, of no less than €10,000, or who are disabled or have a disabling condition for the performance of creative activities;;

- aSubsidy that can not exceed €14,400, assigned annually to no more than five beneficiary entities. The Fund may recognize the Subsidy to the National Assistance Fund for Composers, Authors and Librettists of Popular Music by the decree of the President of the Republic,28th October 1970 n. 888 or in favour of other bodies, organizations or institutions that have similar characteristics and purposes or who are permanently engaged in the study, dissemination and training of creative culture and artistic creativity;

- a Scholarship of no more than €7,200, annually assignable to no more than five recipients, payable to the beneficiary once. Requirements: no older than 35 years, that are deserving in connection with activities or creative activities, with income not exceeding €10,500 (extendable to € 13,200 including copyrights). One or more scholarships may be requested on behalf of beneficiaries, by organizations or public or private institutions with educational purposes;;

- a Extraordinary Contribution that must not exceed € 10,800, assigned annually to no more than five recipients, payable to the beneficiary once. Requirements: those required for periodic and/or additional contributions, even without the income requirement, but distinguished by specific and well-known creative merits.

The Solidarity Fund is supported mainly by the interest that accrues from financial stocks pertaining to the separate management of the Fund. The following reports are included below:

- a statement summarizing the balance sheet items pertaining to the Solidarity Fund;

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- a statement summarizing "income" and "expenses" for the year 2015 resulting from the management of the Fund.

Each report is compared with the previous year.

It was considered useful, also, to provide some comments on the main variations observed over the previous year to income and expenses.

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Financial statements Solidarity Fund

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BALANCE SHEET - FS 2015 2014ACTIVEB) ASSETS

III) Financial assets

3) Other securities:

b) Fs securities 0 60.000.000

d) “Real Estate Fund” Fs securities 31.200.000 31.200.000

e) “Financial Fund” securities 60.000.000 0

Financial assets Total (III) 91.200.000 91.200.000

ASSETS TOTAL (B) 91.200.000 91.200.000

C) CURRENT ASSETS

II) Receivables

- Receivables from others 50.882 172.614

Receivables Total (II) 50.882 172.614

IV) Cash availability

1) Banking and postal deposits 2.997.175 1.501.008

Cash availability Total (IV) 2.997.175 1.501.008

CURRENT ASSETS TOTAL (C) 3.048.057 1.673.622

D) PREPAYMENTS AND ACCRUED INCOME

a) Prepayments and accrued income 0 484.110

PREPAYMENTS AND ACCRUED INCOME TOTAL (D) 0 484.110

ACTIVE TOTAL 94.248.057 93.357.732

PASSIVEB) FUND FOR RISKS AND CHARGES

3) Other

a) Solidarity Fund

1) benefits payment fund 3.202.241 3.202.241

2) equity fund 6.108.180 6.108.180

3) future solidaristic benefits restricted fund 80.837.864 80.698.270


Fund for risks and charges Total 93.014.309 92.874.715

FUND FOR RISKS AND CHARGES TOTAL 93.014.309 92.874.715

C) PAYABLES

g) various payables

1) various payables 100.654 97.448

2) parties payable from the SIAE 1.133.094 385.569

PAYABLES TOTAL 1.233.748 483.017

PASSIVE TOTAL 94.248.057 93.357.732

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INCOME AND EXPENSES 2015 2014B) PRODUCTION VALUE

PRODUCTION VALUE TOTAL (A) 0 0

B) PRODUCTION COSTS

Management and operational costs 265.501 272.142

Personnel 76.906 105.527

Various management charges

- ordinary member subsidies 1.014.025 936.600

- provision for solidaristic benefits restricted fund 139.594 308.597

Various management charges total 1.153.619 1.245.197

PRODUCTION COSTS TOTAL (B) 1.496.026 1.622.867

DIFFERENCE (A-B) (1.496.026) (1.622.867)

FINANCIAL INCOME AND CHARGES

Other financial incomes

- interests on securities 1.755.887 1.084.709

- interests on bank c/a 35.573 947.080

Other financial incomes total 1.791.460 2.031.789

Interests and other financial charges

- interests and other financial charges 0 81.000

Interests and other financial charges total 0 81.000

FINANCIAL INCOME AND CHARGES TOTAL (C) 1.791.460 1.950.789

EXTRAORDINARY INCOME AND CHARGES

EXTRAORDINARY INCOME AND CHARGES TOTAL 142.145 144.394

RESULT BEFORE TAXES 437.580 472.316

Current taxes

- Ires 437.580 472.316

- Irap 0 0

Income tax total 437.580 472.316

YEAR RESULT 0 0

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INCOME

FINANCIAL INCOME

Interests on banking c/a

The amount of this item changed from €947,080 on 31/12/2014 to €35,573, as a result of the investment in bond notes of May 2014.

Interests on securities

This item, amounting to €1,755,887, related to coupons and nominal accruals of €60,000,000 in bond notes until the transfer of the latter to the Pentagram Fund, which occurred in late 2015.

EXPENSES

Ordinary subsidies to members amounted to €1,014,025, an increase of €77,425 (+8.3%) from the 2014 figure.

Provision for the solidaristic benefits restricted fund: the amount of €139,594, generated by the difference between total income and expenses pertaining to the Fund, increased capital funds.

For services

Management and operational costs

The amount of €265,501 relates to operating costs incurred for acitivities relevant to the Fund.

Personnel

This item amounts to €76,906 and consists of the costs relating to the structure of the Solidarity Fund.

Income tax

The amount, equal to € 437,580, refers to IRES due on income generated from the separate management.

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Separate Accounting Endorsement Management (Ge.Vi)

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Endorsement Management

The Law on copyright, n. 633/1941, establishes (art. 181 bis) that on all formats of computer programs or multimedia and on any media (CD, audio and video cassettes, CD Rom, DVD, etc.) containing sounds, voices or moving images, works or parts of works protected by copyright law (art. 1, first paragraph of law no.633/1941) destined for trade or any for-profit use must bear a stamp.

The task of applying the mark, that is, of "endorsing" the media, is entrusted to the SIAE. The rules for issuing and the use of the mark are governed by the Prime Ministerial Decree of 23 February 2009, n.31 (OJ No.80 of 6th April 2009).

The SIAE is an authentication tool and safeguard, for both law enforcement and the consumer, who can thus distinguish legitimate products from pirated copies, and allows individuals to identify who produced or sold it.

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Financial Statements Endorsement Management (Ge.Vi)

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2015 2014- Receivable/(payable) part to SIAE 216.205 (379.506)

INCOME AND EXPENSES – ENDORSEMENT MANAGEMENT 2015 2014PRODUCTION VALUE

Revenues of sales and services

- Endorsement rights 3.980.228 3.499.958

PRODUCTION VALUE TOTAL (A) 3.980.228 3.499.958

PRODUCTION COSTS

Management and operational costs 1.570.073 1.620.659

Personnel 1.392.382 1.366.092

Various management expenses

- provision for risks and expenses 0 0

- other management expenses 196.104 128.052

Various management expenses total 196.104 128.052

PRODUCTION COSTS TOTAL (B) 3.158.558 3.114.803

DIFFERENCE (A-B) 821.670 385.155

FINANCIAL INCOME AND EXPENSES 0 0

EXTRAORDINARY INCOME AND EXPENSES 0 0

RESULT BEFORE TAXES 821.670 385.155

Current taxes

- Ires 225.959 98.122

- Irap 0 45.872

Income tax total 225.959 143.994

YEAR RESULT 595.710 241.161

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INCOME

REVENUES FROM SALES AND SERVICES

Other incomes

The amount of €3,980,228, expresses the proceeds from the release of anti-counterfeiting stamps. This item shows a considerable increase, amounting to €480,270 (+13.7%) compared to 2014, resulting from the resumption of videographic phono market.

EXPENSES

Management and operation costs: amounting to € 1,570,073, this includes all purchases, services, depreciation, rental expenses related to authentication and anti-piracy activities.

Personnel: the cost, amounting to €1,392,382, relates to the resources devoted to management (about 20 units) and includes fixed salaries, social security costs, TFR, daily allowances, overtime and other costs (health insurance, bonuses, etc.).

Other operating expenses: these costs, amounting to €196,104, have increased by €68,052.

Income tax

The amount, equal to €225,959, refers to IRES due on income generated from the separate management.

YEAR RESULT

Operations generated a surplus of €595,710 offsetting the debts from last year and generating a partial credit against the SIAE of €216,205.

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Financial Statement

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2015 2014FUNDING SOURCES

Year result 315.583 3.463.966

Tangible assets amortisation 1.538.325 1.235.011

Intangible assets amortisation 1.235.875 1.211.765

Decrease/(increase) of receivables (347.836) (1.051.639)

Decrease/(increase) of prepayments and accrued income 2.282.245 1.503.925

(Decrease)/increase of trade payables 616.513 3.795.923

(Decrease)/increase of accrued liabilities 145.637 (416.438)

Increases of risks and expenses funds 10.740.276 17.480.945

Use of risk and expenses funds (13.154.575) (21.056.036)

Increase of employee severance funds 4.559.415 4.717.676

Use of employee severance funds (6.085.794) (7.515.551)

(Decrease)/increase other payables and advances 56.415.353 (73.004.708)

Liquidity generated by operations 58.261.017 (69.635.161)

Net balance value of decommissioned assets 7.306 496.053

58.268.323 (69.139.108)

CASH DEPLOYMENTS

Tangible asset acquisitions (1.902.414) (652.690)

Intangible asset acquisitions (1.279.468) (350.170)

Financial activity not held as assets (other securities) (92.634.000) 35.847.825

Net difference in financial receivables 88.220.154 (213.325.628)

Previous year profit distribution (173.198) (79.074)

(7.768.926) (178.559.737)

Liquidity difference 50.499.397 (247.698.845)

INITIAL CASH AVAILABILITY 216.492.692 464.191.537

FINAL CASH AVAILABILITY 266.992.089 216.492.692

FINANCIAL REPORT

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Report on Available Financial Resources

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- Lyrics Section 6,831,309 8,326,165 7,974,370 7,183,104 - Music Section 397.173.804 534,173,166 368,331,302 563,015,668 - DOR Section 44.828.960 52,615,313 45,692,995 51,751,278 - OLAF Section 15.836.997 32,842,319 12,728,950 35,950,366 - Cinema Section 65.218.446 68,972,594 40,621,280 93,569,760 TOTAL COPYRIGHTS 529,889,516 696,929,557 475,348,897 751,470,176 FINANCIAL RESOURCES ON 31/12/2015 (net of Solidarity Fund) 1,050,801,770 AVAILABILITY OF RIGHTS TO BE DISTRIBUTED ON 31/12/2015 751,470,176 OTHER AVAILABLE FINANCIAL RESOURCES 299,331,594

The above table shows the fluctuations in the consistency of credit reports and debt towards rights-holders, generating financial resources and articulates for individual revenue

streams per Section The highlighted fluctuations is the result of the dynamics of receipts and distributors processes governed by special ordinances of the Chamber of Commissions. Individual items (receipts, payables, receivables) are illustrated in the Notes and the Management Report. Of the funds available, 64% are used in investment securities, 11% in working capital securities (see Annex 2 of the report) and 25% in bank and postal deposits.

REPORT ON AVAILABLE FINANCIAL RESOURCES

AS PER ART. 28 OF THE STATUTE

2015 net receipts

to be disitributed Net payables

as of 31/12/2014 Net equity

liquidated in 2015 Net payables

as of 31/12/2015

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ANNEXES

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Annex 1

N° REGION ADDRESS

1 ANCONA VIA GIANNELLI ,22 07.07.1949 61.653 96 26.307 199.944 288.000

2 BARI C.SO V.EMANUELE,10-20 24.06.1955 85.471 6.381 85.038 41.071 50.485 198.066 466.512

3 BERGAMO VIA TARAMELLI, 50 03.06.1988 215.158 68.620 126.249 410.027

4 BOLOGNA VIA ORFEO,33 18.04.1986 1.975.524 683.629 706.497 3.365.650

5 BOLOGNA VIA MISA,34 21.09.1982 154.834 212.366 367.200

6 CAGLIARI VIA ANCONA,3 21.02.1984 169.878 14.017 53.705 237.600

7 CATANIA VIA PUCCINI,25 12.10.1961 36.686 25.681 277.349 821.679 576.795 1.738.190

8 CATANZARO DISCESA POERIO,3 04.04.1953 70.287 11.981 70.211 490.521 643.000

9 COMO VIA A. VOLTA,1 (V.GARIBALDI,27) 22.12.1975 55.294 32.898 15.151 200.775 115.328 419.446

10 FLORENCE VIA RICASOLI,24/26 27.04.1949 996.313 180.612 1.126 185.244 1.055.325 693.383 3.112.004

11 FLORENCE VIA A. DEL CASTAGNO ,42 29.11.1982 198.668 260.332 459.000

12 GENOVA VIA BOSELLI ,17/7 29.11.1982 301.598 102.052 403.650

13 LUCCA PIAZZA DEL GIGLIO,4 26.09.1989 73.872 32.910 148.071 111.251 366.104

14 MANTOVA VIA S. EGIDIO,14 12.05.1983 82.475 3.743 80.322 71.696 238.236

15 MESTRE VIA MANIN,111 24.02.1975 14.461 10.123 19.433 70.329 44.470 158.815

16 MESTRE VIA MANIN,113/115/117 28.10.1974 39.251 27.476 88.817 142.662 110.845 409.050

17 NAPLES VIA CERVANTES,52 28.01.1983 156.202 2.771 66.475 90.632 156.420 472.500

18 NAPLES VIA S.TOMMASO D'AQUINO,13 28.09.1950 1.118.538 7.246 932.844 24.653 932.607 3.015.887

19 PALERMO VIA PRINCIPE BELMONTE ,96 14.01.1950 7.155 5.009 47.071 321.015 380.250

20 PESCARA VIA VENEZIA,25 05.07.1951 15 10 4.282 17.648 10.651 32.606

21 PISA VIA CORTE S.DOMENICO,6 05.02.1993 426.551 68.593 495.144

22 ROME VIA PO, 10 20.07.1983 217.115 163.184 567.298 947.597

23 TURIN CORSO RE UMBERTO,29 24.07.1991 14.127 9.889 389.387 413.403

24 TRENTO VIA BRIGATA ACQUI,9 30.11.1962 8.720 6.104 22.186 214.990 252.000

26 TRIESTE VIA FABIO FILZI , 21/1 16.01.1956 7.709 5.397 60.297 331.597 405.000

27 VARAZZE VIA MARCONI 8-11 10.08.1981 129.072 62.708 21.098 21.442 615.039 849.359

28 VENICE RIVA DE BIASIO , 1206 D 20.07.1961 228.242 18.998 230.373 1.647.287 2.124.900

29 VERONA VIA DELLA VALVERDE, 32 18.01.1956 6.511 4.558 92.667 544.264 648.000

30 VERONA VIA DON CARLO STEEB,1 29.01.1958 388 272 6.856 31.872 19.004 58.392

31 VICENZA VIA ASTICHELLO,10 16.02.1993 225.443 90.613 316.057

32 VICENZA VIA DEL QUARTIERE,8 25.01.1980 35.554 7.111 17.418 128.917 189.000

996.313 6.297.062 180.355 2.460.876 3.474.228 3.840.542 6.433.201 23.682.578

33 MILAN VIA CARDUCCI, 23 (FAIL) 19.02.1959 1.282.919 82.170 1.422.324 393.424 221.636 4.797.295 8.199.768

1.282.919 82.170 1.422.324 393.424 221.636 4.797.295 8.199.768

BALANCE

TOTAL ON

31/12/2015

TANGIBLE ASSETS (LAND AND BUILDINGS) AS OF 31ST DECEMBER 2015PROPERTY LOCATION

ACQUISITION

DATE

HISTORIC

COST OF

NON-

REVALUED

GOODS

HISTORIC

COST OF

REVALUED

GOODS

REVALUATION PURSUANT TO

L.72/83 (FOR BUILDINGS

REGISTERED BY 31/12/83)

REVALUATION

PURSUANT TO L.413/91

(FOR BUILDINGS

REGISTERED BY

31/12/90)

REVALUATION PURSUANT

TO L.342/00 (FOR

INSTRUMENTAL BUILDINGS

REGISTERED BY 31/12/99)

REVALUATION PURSUANT TO

L.350/03 (FOR INSTRUMENTAL

BUILDINGS REGISTERED ON

31/12/2002)

REVALUATION PURSUANT

TO L.02/09 (FOR

INSTRUMENTAL BUILDINGS

REGISTERED ON 31/12/2008)

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SITUATION ON 31/12/2015BANK

DEPOSIT

NOMINAL

VALUE IN EURO

BALANCE

VALUE IN EURO

RAI ACTIONS C/O RAI 1.071.100 130.887

MEDIASET ACTIONS MPS 3.615 3.615

1.074.715 134.502

POLIZZA ALLIANZ N. 2.037.361 28/12/2011- 01/01/2017 1.500.000 1.500.000

BERICA NEW POWER 30/01/2014-30/01/2019 5.000.000 5.000.000

CARDIF VITA 24/01/2014-24/01/2019 10.000.000 10.000.000

WIENER STADTISCHE ASSICUR. 1/5/2014-01/05/2019 15.000.000 15.000.000

GENERALI ASSICURAZIONI 19/6/2014-2019 5.000.000 5.000.000

UNIPOL VITATTIVA U30005R- FREE FIDELITY 04-08-2014/2019 5.000.000 5.000.000

REPUBBLICA ITALIANA 27/12/2013-15/06/2020 SANTANDER 2.000.000 1.919.518

BTP 1/11/2022 - 5,5% - 15/02/2013 -01/01/2022 MPS 8.810.000 9.546.182

BTP 1/11/2022 - 5,5% - 15/02/2013 -01/01/2022 UBS 190.000 205.877

REALE MUTUA 23/01/2014 -23/01/2024 10.000.000 10.000.000

GOLDMAN SACHS USD 15/01/2015 -15/01/2025 MPS 20.000.000 20.000.000

JP MORGAN NIKKEI 18/06/2015 -15/09/2026 BNL 20.000.000 20.000.000

JP MORDAN EURO STOXX600 18/06/2015 - 15/09/2026 BNL 20.000.000 20.000.000

JP MORDAN CROSS ASSET MOMENTUM 24/06/2015 - 15/09/2026 BNL 20.000.000 20.000.000

CREDIT SUISSE RUSSIA 29/10/2014 - 16/09/2026 MPS 20.000.000 20.000.000

NOMURA FTSEMIB 11/02/2015 - 20/03/2027 MPS 20.000.000 20.000.000

GOLDM SACHS 18/02/2015 - 20/03/2027 MPS 20.000.000 20.000.000

202.500.000 203.171.577

FONDO NORMA 24/12/2012- 31/12/2024 BNP PARIBAS 162.829.996 164.609.996

FONDO NABUCCO FSA 30/05/2014 31.200.000 31.200.000

FONDO PENTAGRAMMA 03/08/2015 BANCA PROFILO 295.000.000 295.000.000

FONDO PENTAGRAMMA FSA 29/12/2015 BANCA PROFILO 60.000.000 60.000.000

549.029.996 550.809.996

FINANCIAL ASSETS (SIAE-FSA) TOTAL 752.604.711 754.116.075

SITUATION ON 31/12/2015BANK

DEPOSIT

NOMINAL

VALUE IN EURO

BALANCE

VALUE IN EURO

CREDIT SUISSE CHINA NEW BALANCE 06/11/2014 -16/09/2026 MPS 20.000.000 19.484.000

NOMURA EUROPEAN REAL ESTATE 29/10/2014 - 15/09/2026 MPS 20.000.000 19.046.000

CREDIT SUISSE DYNAMIC ALLOCATOR 24/06/2015- 22/09/2026 BNL 20.000.000 18.312.000

GOLDMAN SACHS CROSS ASSET RISK PREMIA 17/07/2015 -15/09/2026 BNL 20.000.000 18.260.000

CITIGROUP COMMODITIES CONGESTION 17/06/2015 - 17/09/2026 BNL 20.000.000 18.754.000

JP MORGAN DAX 18/06/2015 -15/09/2026 BNL 20.000.000 19.074.000

SECURITIES HELD IN CURRENT ASSETS TOTAL 120.000.000 112.930.000

Annex 2

FINANCIAL ASSETS (OTHER SECURITIES)

OTHER FINANCIAL PRODUCTS

SECURITIES HELD IN CURRENT ASSETS

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Receipts Framework

(Annex 3)

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156

SIAE

Payables

SIAE

Receivables

Copyrights 570.881.131 54.589.831 95.581.446 529.889.516 ######### 67.393.931

- Lyrics Sector 7.494.991 405.110 1.068.792 6.831.309 8.348.145 21.980

- Music Sector 439.950.954 32.174.333 74.951.483 397.173.804 ######### 65.620.905

- DOR Sector 53.098.968 0 8.270.008 44.828.960 54.212.476 1.597.163

- OLAF Sector 16.990.876 1.477.640 2.631.519 15.836.997 32.873.050 30.731

Copyrights 5.518.977 545.917 4.973.060

Reprographics 2.609.048 521.809 2.087.239

Right to resale 7.818.090 1.485.436 6.332.654

Right to lend 1.044.761 78.357 966.404

- Cinema Sector 53.345.342 20.532.748 8.659.644 65.218.446 69.095.746 123.152

Institutional services 3.189.882 902.512 2.287.370 548.160

- Lyrics Sector – equipment hire 267.357 21.389 245.968 132.298

- Lyrics Sector – critical publications 218.928 10.946 207.982 116.029

- OLAF Sector – frontispiece stamping 811.277 736.639 74.638 139.245

- Cinema Sector – Zurigo insurance 1.892.320 133.538 1.758.782 160.588

Private copy fees (D.M. 30/12/2009) 129.630.286 3.540.292 126.089.994 ######### 0

Various agreements 20.453.533 2.123.541 18.329.992 1.038.222Rental fees for CONI and other municipalities’

areas8.403 452

Various membership fees (SCF, AFI and AGIS) 18.511.556 1.927.429

FIPE membership fees 1.933.574 195.660

TOTAL 724.154.832 54.589.831 102.147.791 676.596.872 ######### 67.393.931

730.232

- DOR Sector – income from various services 14.250

- OLAF Sector 513.722

Income from various services 442.056

Public registry software 71.666

- Cinema Sector 202.260

Income from various services 160.521

Cinematographic public registry 41.739

Institutional services with 100% remuneration

FRAMEWORK SUMMARY OF RECEIPTS FOR INTERMEDIATION SERVICES

Collection

services

(gross)

Private Copy

rights allocated

in 2015

Commissions,

premiums and fees

from Agreements

Net amount to

distribute or

accredit

Situation on 31/12/2014

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157

SIAE PayablesSIAE

Receivables

Copyrights 475.348.897 819.075.446 (1) 67.605.270 (2)

- Lyrics Sector 7.974.370 7.204.828 21.724

- Music Sector 368.331.302 629.072.418 66.056.750

- DOR Sector 45.692.995 53.158.130 1.406.852

- OLAF Sector 12.728.950 35.981.260 30.894

Copyrights

Reprographics

Right to resale

Right to lend

- Cinema Sector 40.621.280 93.658.810 89.050

Institutional services 2.342.866 492.664

- Lyrics Sector – equipment hire 301.877 76.389

- Lyrics Sector – critical publications 256.524 67.487

- OLAF Sector – frontispiece stamping 25.882 188.001

- Cinema Sector – Zurigo insurance 1.758.583 160.787

Private copy fees (D.M. 30/12/2009) 121.848.432 151.711.352 (3) 0

Various agreements 18.136.814 1.231.400

Rental fees for CONI and other municipalities’ areas

Various membership fees (SCF, AFI and AGIS)

FIPE membership fees

TOTAL 617.677.009 972.510.862 67.605.270

(1) The amount is included in item D-14-a of the passive

(2) The amount refers to item C-II-1-a2) “receivables from members and agents for advances” of the active

The amount is included in item D-14-b “payables to various for private copy payments” of the passive

FRAMEWORK SUMMARY OF RECEIPTS FOR INTERMEDIATION SERVICES

Net copyrights

liquidated in

2015

Situation on 31/12/2015

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Reports

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Auditing Firm Report

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161

REPORT OF THE INDEPENDENT AUDITING COMPANY IN ACCORDANCE WITH

ARTICLE 14 OF LEGISLATIVE DECREE 27 JANUARY 2010, NO. 39

To Members of SIAE

Report on the management report

We have audited the annual fund report of the attached SIAE Management Report, comprising

the balance sheet at 31 December 2015, the income statement for the year then ended and notes.

Responsibility of the Management Board for the Management Report

The Management Board Members are responsible for the preparation of management accounts

that give a true and fair view in accordance with the Italian regulations governing their

preparation.

Responsibility of the auditing company

And our responsibility is to express an opinion on the management report on the basis of the

accounting audit. We conducted our audit in accordance with the International Standards on

Auditing (ISA Italy) established pursuant to Article 11, paragraph 2, of Legislative Decree

39/2010. Those standards require that we comply with ethical principles as well as the planning

and conduct of the audit in order to obtain reasonable assurance that the management report is

not materially misstated.

The audit involves performing procedures to acquire evidence supporting the amounts and

disclosures in the annual fund report. The procedures selected depend on the auditor's

judgment, including the assessment of risks of material misstatement in the management report

due to fraud, misconduct or unintentional events. In producing those risk assessments, the

auditor considers internal control relevant to the preparation of the management accounts that

give a true and fair view in order to design audit procedures appropriate to the circumstances,

and not to express an opinion on effectiveness of the entity's internal control. The audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of

accounting estimates made by the Management Board Members as well as the evaluation of the

presentation of the administration’s existing accounts as a whole.

PricewaterhouseCoopers SpA

Legal and administrative headquarters: 20149 Milano, Via Monte Rosa 91 Tel. 0277851 Fax 027 785 240 Cap. Soc. Euro

6,890,000.00 Tax Code, Vat Number and Milan Business Registry Number 1297988015 Registered No. 119644 of the Legal

Auditors Registry - Other Offices: etc.

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162

We believe we have acquired sufficient appropriate audit evidence on which to base our

judgment.

Judgment

In our opinion, the management report provides a true and fair view of the financial position of

SIAE as of December 31, 2015 and the net income for that year ending on that date, in

accordance with the Italian rules governing their preparation.

Report on other legal and regulatory conduct

Opinion on the consistency of the management report with the management statement.

We have performed the procedures required by ISA audit principle No. 720B in order to express,

as is required now by law, an opinion on the consistency of the management report, whose

responsibility lies with the directors of SIAE Management, with the financial report of the SIAE

as of 31 December 2015. In our opinion, the management report is consistent with the finanicial

report of the SIAE on 31 December 2015

Rome, June 8, 2016

PricewaterhouseCoopers SpA

signature

Luciano Festa

(Statutory Auditor)

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Board of Auditors Report

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164

SIAE

Board of Auditors

“REPORT OF THE BOARD OF AUDITORS TO THE STATEMENT

December 31, 2015 PURSUANT TO ART. 2429, PARAGRAPH 2 OF

THE CIVIL CODE

Gentlemen Associates,

in the course of the year ending 31/12/2015 we carried out our supervisory

activities in accordance with the law and “Rules of conduct for the Board of

Auditors” issued by the National Council of Certified Public Accountants.

Primarily, it is useful to remember the facts and the most significant events

affecting the Company during the year under review, recalled the report on

management and of which we were informed in the jurisdiction of

supervisory activity:

the reduction of the levy paid by Members as part of music stock

was confirmed, to which the DOR repertoire was added

(Broadcasting item);;

the work of the Strategic Plan 2013-2015 planned for 2015 was

completed, as was defined the Strategic Plan 2015-2016;

developed in around key “core” digitizing processes ";

staff reductions and efficiency improvements of business structures

both continued to be made;

concrete support was provided, through targeted actions, to Italian

cultural and artistic heritage.

As noted, Directive 2014/26/EU of 26th February 2014 has not yet been

transposed into national legislation, however the company has published

the report on transparency in 2014 and is about to publish the report on

transparency in 2015.

We also report that on the 19th March 2015, the SIAE Supervisory Board,

chaired by Maestro Franco Micalizzi, has appointed Filippo Sugar as

Chairman of the Company Management Board. The appointment, as

required by law, was formalized by decree of the President of the Republic

on 12 October 2015.

***

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165

In respect of supervision in the year 2015, we point out the following.

SIAE

Board of Auditors

We monitored the observance of the law and bylaws and observance

of the principles of proper administration.

We attended meetings of the Management Board and the Supervisory

Board, which were held in compliance with statutory regulations and for

which, based on information available to us, we can reasonably assure

that actions and transactions approved comply with the law and they

were not manifestly imprudent, risky, in potential conflict of interest or

compromising of the integrity of corporate assets.

We received from the General Manager and management, with

continuity, information on the general performance and its outlook as

well as on the most significant transactions in terms of size and/or

characteristics, and, based on the information acquired, we do not

specific observations to make.

We have not heard of atypical and/or unusual transactions.

We examined and monitored, within the scope of our responsibility, the

adequacy of the internal control system and the organizational

structure, including through meetings with the Office of Internal

Auditing and the Supervisory Board, for the necessary exchange of

information. In this regard, we observe that the activities of the Office of

Internal Auditing intensified during the year, with continued operations

and educational project aimed at providing the company with an Office

coordinated by the Head of Internal Auditing, that will have to assume

the role of a real Internal Audit, functionally independent from

the "top" functions, in line with the evolution of the governance of the

company.

We evaluated and monitored the adequacy of the administrative-

accounting system, not least on its reliability to represent correctly the

results of operations, through the' obtaining information from the head

of the company’s administrative functions, the examination of company

documents and the exchange information with the auditing company

PriceWaterhouse Coopers SpA and in this regard we have no particular

observations to make.

We confirm, finally, that, in the context of our overall supervisory

activities, as described above, other significant facts did not arise that

would require mention in this report.

***

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166

SIAE

Board of Auditors

With regards to examination of the management reporting project ended

31/12/2015, approved by the Management Board by resolution of 19th May

2016 and transmitted to the Board of Auditors, pursuant to art. 28, paragraph

5, with a note from the General Director n. 271/2016 of 20th May 2015, we

report as follows.

We recall that the tasks of reviewing and auditing, within the meaning

of art. 21 of the Statute, were carried out by the auditing firm

PriceWaterhouse Coopers SpA, whose report is attached to the report

file. In particular, the report prepared by their auditors, bearing today's

date, ends with a positive auditory opinion.

Therefore, not having been requested to audit accounting, we

monitored the general approach of the budget as well as its conformity

to the law with regard to formation and structure.

In this regard, we point out that the budget is composed of the balance

sheet, income statement and explanatory notes and accompanied by

the management report. It is completed by a series of statements

between which crucially: i) the separate account regarding the

management report 2015 of the Solidarity Fund (art. 29 of the Statute)

and the management report in 2015 of endorsement management of

activities (Article. 24 of the Statute); ii) cash flow statement; iii) other

attachments concerning tangible assets, financial reports and receipts

frameworks.

We acknowledge that the budget was prepared in accordance with the

relevant legal provisions and national accounting standards applicable

in the present, as well as modified from 'Body of Italian Accounting’

during 2014. In this regard, we cannot fault anything within the

evaluation criteria of individual budget items which have appeared

altogether consistent with those used in the previous financial year.

We report that, to the best of our knowledge, the Management Board

has not departed from legal rules relating to the valuation criteria within

the meaning of 'art. 2423, paragraph 4, of the Civil Code.

Below the numeric aspect, we point out that the draft budget shows a

surplus of €1,953,224 and a net result of €315,583. The attached table

shows the summary of data, compared to that of the previous financial

year:

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167

SIAE

Board of Auditors

BALANCE SHEET

ACTIVE 2015 2014

Active Total 1,389,464,608 1,335,957,261

B – Assets 865,093,848 952,913,626

C – Current assets 517,607,649 375,004,984

D – prepayments and accrued income 6,763,111 8,038,651

PASSIVE

Passive Total 1,389,464,408 1,335,957,261

III Revaluation reserves 91,712,926 91,721,926

VI Statutory reserves 26,598,331 23,307,563

VII Other reserves 237 237

VIII Surplus/deficit carried over 0

IX Year result 315,583 3,463,966

A – Net assets total 118,836,077 118,493,892

B – Funds for risks and charges 166,227,019 168,641,319

C – Pensions 23,715,632 25,241,011

D – Payables 1,080,683,871 1,023,523,868

E – Accrued liabilities 203,009 57,371

INCOME STATEMENT

2015 2014

A – Production value 165,288,792 161,851,391

B – Production costs (184,504,586) (182,082,923)

C – Financial income 20,190,237 28,997,119

D – Financial activities value adjustments (7,070,000) 518,000

E – Extraordinary income and expenses 8,048,781 (4,265,762)

Result before tax 1,953,224 5,017,825

Income tax (IRES, IRAP, deferred) (1,637,641) (1,553,859)

Year result 315,583 3,463,966

The increase in the production value amounted to €3.4m, and correlated to

the increase in revenues despite average commissions decreasing by 0.3

percentage points.

Financial revenues have declined, by €8.8m, related to the deterioration in

financial market conditions.

Among the costs of production, based on the directors’ 'report on

management’, we note the company's commitment to financial support of the

Strategic Plan for 2015-2016, of which €12.7m has been used, an increase of

7.7m compared to 2014. Other ordinary operating costs are down by €5.1m

(-3%); much of this reduction is attributable to personnel costs that have been

cut by a further € 2.3m.

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168

SIAE

Board of Auditors

Extraordinary operations detect a clear improvement, amounting to

€12.3m, mainly as a result of the positive balance between capital gains

losses realised in the sale of part of the securities portfolio. The sale is

linked to the decision of the Management Board to establish an

investment fund - Pentagram Fund - which will gradually carry the

company’s financial resources in order to produce better management

and greater diversification of the securities portfolio. The positive

balance, amounting to €11.8, fully compensates for writedowns prudently

stationed in the budget (amounting to €7m) related to securities included

in current assets.

Extraordinary operations also includes provisions (totalling €4.4m) to

fund corporate reorganization in support of the Strategic Plan. Net

payables due to agents increased by €54.4m in line with an increase in

the amounts to be distributed (generated mainly by the increase in

business for copyright) to € 56.8m.

Payables for "private copy" fees increased by €4.2m, compared with an

increase in related receipts, amounting to €51.6m, reflecting the

consistency of allocations made during the year.

In conclusion, given the findings of the activities conducted by the person

in charge of the audit, summarized in the report of the budget review, and

taking into account the results of the supervisory work we do, we believe

that the management report related to the year ending 31st December

2015, together with the management report, the statements of the

separate management of the Solidarity Fund (art. 29 of the Statute) and

Endorsement Management (article 24 of the Statute), can be approved

by the Supervisory Board. We agree also with the proposed allocation of

the profit made by the Management Board, which is consistent with the

statutory provisions.

Rome, June 7, 2016.

The Board of Auditors,

Dr. Laura BELMOTE (signed)

Prof. Giovanni FIORI

Prof.Massimiliano NOVA

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Sectional Analytical Accounting


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171

Introduction

Article 30 of the new SIAE Statute provides that, attached to the Management Report will be analytical accounting results from Music, Cinema, D.O.R., Lyric, and O.L.A.F Sections.

General Regulation art. 86 establishes the criteria and methodologies adopted in analytical accounting. In particular:

1. "Analytical accounting reflects the criteria and methodologies adopted in this Regulation for the elaboration of Sectional income statements.

2. The Section includes the set of activities and processes aimed at the administration of the specific repertoire (Music, Movies, Dor, Lyric, Olaf).

3. The sectional income statement includes direct costs and revenues related to the conduct of "business services" and indirect costs related to the provision of "support services" (by way of example: administration, information technology, legal, coordination, direction).

4. The sectional income statement, as exemplified below shows the operating results in scalar format, highlighting:

a) ithe Direct Margin which expresses the capacity of the resources generated to remunerate costs relating to the delivery of business services attributable to specific management;;

b) the Operating Margin, understood as the difference between the Direct Margin and the costs linked to the provision of support services allocated indirectly, according to the following portrayal:

Revenues of services provided

Ancillary revenues (for example, secretarial services)

Financial income and extraordinary costs

Agents fees (commissions, grants and awards accepted at end of term)

External assessors

Direct personnel costs (central and local)

Professional services (technical, legal, miscellaneous)

Operational direct structure facilities

Depreciation of operating direct facilities goods

Other management charges

Direct Margin =

Costs for capital services (for example: human resources, purchasing,

administration, coordination and guidance, information systems, legal

assistance-

Operating Margin =

Sectional analytical accounting

+

-

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172

5. The balance of ancillary operations, financial and capital (by way of example: the rental income), is not in the sectional income statement and is used to cover general corporate expenses consisting of costs related to corporate bodies/revenues and support structures, to the Fund and Private Pensions, to extraordinary operations, taxes, other income and non-recurring expenses.

6. The components of business-related income in the analytical accounting model are:

a) revenue and expenses associated uniquely to specific management and, as such, do not require any allocation process;

b) costs of corporate structures, in relation to usage by human resources directly employed in the "sectional" processes, periodically allocated to the respective income statements, based on reports signed by heads of department

7. Parameters used for allocating not directly allocable costs/revenues:

a) the square meters used for the allocation of management and operating costs such as: security guards, cleaning, maintenance facilities, real estate, rental costs;

b) the number of people present in each structure for the attribution of costs such as: telephone services, maintenance, office equipment, cleaning;

c) specific statistical (for example: the number of machines, personal computers and servers) and quantitative (for example: scope of turnover, number of invoices, number of MAV, the number of licenses of use) parameters for allocation of activities, for example: ITC , front office, administration;

d) the cost of personnel resources for the allocation of common staff costs (for example: provisions, accident insurance);

e) the incidence of revenues related to the item of allocation, for the attribution of accessories to the income (for example: procedural administrative rights);

f) the incidence of revenues related to the item of allocation, for the attribution of charges generated by a specific activity (for example: VAT pro-rata, attributed in relation to exempt revenues

g) the incidence of direct costs (cost to cost) used for the'allocation of costs such as: those of coordination and addressing of the Territorial Network, the “ancillary” costs of agents (for example: social security contributions and expense reimbursements)

8. For the purposes of the provisions of art. 12, paragraph 9 of the Statute, we consider the results of analytical accounting arising from the final financial report approved by the Supervisory Board. .”


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Overall economic performance

The analytical accounting process tries to draw up the economic accounts of the various services and detect operating margins.

The elaboration of economic data for the year 2015 highlights the results achieved by the Author management, Services and Endorsement Management, under the terms described in the chart. The analysis excludes items of the Solidarity Fund in that, physiologically, the balance of the management is always equal to "zero."

The operating margin of Author management shows a positive figure of €1.1; reversing the deficit of 2014 (- €9.7 million). Author management includes 4 sections and some services related to Copyright (private copying, public records, ticketing, agreements on related rights, etc.)

Overall also the direct margin shows a significant improvement over the previous year, to €10.1m. This difference is due more to an increase in income from the Cinema (+ €4.5m), Broadcasting (+€1.2m) and DEM Music (+€1.9m) Sections than to a decrease in costs. In particular, the improvement of Cinema revenues is due to the conclusion, after long negotiations, of new agreements with Sky.

Indirect costs were largely stable leading to a positive operating margin of +€1.1m.

22.9

6.1

21.8

5.1 1.1 1.0 0.6

0

5

10

15

20

25

Authors Services in agreement Endorsement Management

Direct margin Indirect costs EBITDA

Operating Margin 2015 ( € /m)

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174

The operating margin of the Services management indicates a positive value of €1m reversing, like author management, the deficit of 2014 (- €0.1m). The negative trend in revenues (- €1.2m) was more than offset by the decrease (approximately €2m) of all costs (especially personnel).

***

The operating margin of each management (Authors and Services in agreement), together with the results of ancillary operations (balance sheet and financial) and the separate management of "mandatory anti-piracy stock stamping", have contributed to the coverage of general income/expenses and to the determination of an operating surplus.


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175

Sectional analytical accounting

The income statements, compiled for each Section, show a positive margin for the repertoires Music and Cinema.

Dor-Opera and Olaf Sections continued to post negative margins, although improving.

Music Section

The direct margin of the repertoire administered by the Music Section has undergone an improvement of +€4.3m due to:

An increase in revenues, of €2.3m, mainly due to the DEM (+€1.9m), Multimedia (+ €0.5m) and Broadcasting (+€1.2m);

A reduction in costs of €2m, mainly related to personnel, due to the rationalization and reorganization of resources.

Indirect costs are largely unchanged from the previous year, generating a positive operating margin of €0.1m.

Music section 2015 2014

Revenues of services provided 92.164.767 85.199.301

Ancillary revenues (for example, secretarial services) 436.647 710.359

Financial income and extraordinary costs 120.453 4.480.984

Total revenues 92.721.867 90.390.644

Agents fees (commissions, grants and awards accepted at end of term) 25.546.637 24.503.933

External assessors 327.013 381.312

Direct personnel costs (central and local) 33.896.417 36.305.155

Professional services (technical, legal, miscellaneous) 847.055 1.744.288

Operational direct structure facilities 14.066.662 13.514.114

Depreciation of operating direct facilities goods 838.300 777.646

Other management charges 1.309.804 1.565.089

Total costs 76.831.888 78.791.537

Direct Margin 15.889.979 11.599.107



assistance15.814.647 15.486.997

Operating Margin 75.332 (3.887.890)

Reduction of commission 4.735.932

Extraordinary bonus to employees 550.000

Operating Margin net of Management Board measures 1.398.041

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176

Cinema Section

Cinema Section shows a positive operating margin of approximately €4.6m. This result also reflects the effect of the definition of agreements with Sky, previously cited.

Costs for professional services identify the costs of the Confindustria arbitration award of €0.4m. The costs for IT processes and cultural activities, included in operating services, find a perfect match in the item ancillary revenues, for about €0.7m.

Cinema section 2015 2014



Financial income and extraordinary costs 40 0

Total revenues 10.175.640 4.887.338

Agents fees (commissions, grants and awards accepted at end of term) 57.107 47.208

External assessors


Professional services (technical, legal, miscellaneous) 637.012 145.165

Operational direct structure facilities 1.556.180 909.696


Other management charges 195.954 91.472

Total costs 4.793.623 4.334.241

Direct Margin 5.382.017 553.097



assistance793.214 1.144.902

Operating Margin 4.588.803 (591.805)


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177

DOR and Opera Section

DOR and opera shows a negative operating margin, in line with the previous year. The decrease in revenues (-€2m) was ultimately set off in cost containment.

Dor and Opera section 2015 2014



Financial income and extraordinary costs 292 2.265.083

Total revenues 12.758.867 14.734.736

Agents fees (commissions, grants and awards accepted at end of term) 4.032.424 4.287.980

External assessors 0 3






Total costs 13.522.339 15.197.336

Direct Margin (763.472) (462.600)



assistance3.185.994 3.577.049

Operating Margin (3.949.466) (4.039.649)

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178

OLAF Section.

OLAF recorded a negative operating margin of -€1.5m, a significant improvement compared to

2014, in relation to the overall reduction of costs and the strong performance of the receipts

relating to the right of resale.

The costs of cultural activities, included in operating services, perfectly correspond to the item

ancillary revenues, for about €0.2m.

Olaf section 2015 2014



Financial income and extraordinary costs 213 132.364

Total revenues 4.971.293 4.489.055

Agents fees (commissions, grants and awards accepted at end of term) 392.644 386.341

External assessors 0 1






Total costs 5.247.030 5.520.543

Direct Margin (275.737) (1.031.488)



assistance1.195.520 1.362.201

Operating Margin (1.471.257) (2.393.690)

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SIAE IN ITALY AND THE WORLD

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SEDI DELLA S.I.A.E. IN ITALIA

BARI Corso Vittorio Emanuele, 20/A – 70122

080.5246089

NAPOLI Via S. Tommaso d’Aquino, 13 - 80133 tel. 080.5210415 – fax tel. 081.4201911 – fax 081.4201965

BOLOGNA Via Orfeo, 33/A - 40124

tel. 051.4290311 – fax 051.307280

PALERMO Via Guardione, 3 - 90139 tel. 091.7439311 – fax 091.588885

CAGLIARI Via Satta, 13 - 09127

tel. 070.6613601 - fax 070.662288

ROMA

Via Po, 8/B - 00198 tel. 06.852671 – fax 06.8542616

FIRENZE Via Ricasoli, 26 - 50122

tel. 055.652811 – fax 055.6528122

TORINO

Corso Stati Uniti, 20 - 10128 tel. 011.516561 – fax 011.533303

MILANO

Via Arco, 3 - 20121 tel. 02.864961 – fax 02.8900578

VENEZIA Riva de Biasio, 1206/D - 30135 tel. 041.2201411 – fax 041.715551

Cagliari

Palermo

Bari

Naples

Rome

Florence

Bologna

Venice Milan

Turin 4/53

2/49

3/60

3/53

2/41

2/41

2/62 7/59

2/37

2/17

Peripheral organisation

The distribution of regional offices are shown thus:

The Headquarters The number of branches/agent companies of its constitutency


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REPRESENTATIVES ORGANISED IN FOREIGN COUNTRIES IN 2015

Under Article 180 of Law 22.4.1941, n. 633, and Art. 58 of the relevant regulation approved by RD 18/05/1942, n. 1369, we give below the list of countries in which the SIAE carries out its activities through the organization of the agencies and sister companies. The company's offices are available to provide any details as to the object and the limits of representation in individual countries. Contact details and sites of author societies that adhere to CISAC (International Society Confederation of Authors and Composers), are available on the website www.cisac.org.

Algeria

Music Section (rights to perform and rights to mechanical reproduction): Office National du Droit d'Auteur (ONDA), 49 rue Abderrazak, Hamla, Bologhine, Alger. Tel. +213 21 95 09 06 Fax +213 21 95 17 53; e-mail: [email protected] - www.onda.dz

Andora

Music Section (rights to perform): French SACEM

Music Section (rights to mechanical reproduction): French SDRM

Argentina

Music Section (rights to perform and rights to mechanical reproduction) : Sociedad Argentina de Autores y Compositores de Musica (SADAIC), Lavalle 1547 (C1048AAK), Apartado especial n. 11 - Sucursal 44 Buenos Aires 1444.

Tel. +54 1143798600 Fax+ 54 1143798633; e-mail: [email protected] - www.sadaic.org.ar

Lyrics, DOR, Cinema Section. Sociedad General de Autores de la Argentina (ARGENTORES), José Andrés Pacheco de Melo 1820 1126 Buenos Aires. Tel. +54 11 48112582 Fax +54 11 48126954; e-mail: [email protected] - www.argentores.org.ar

Cinema Section (directors): Directores Argentinos Cinematograficos (DAC), Maipù 42 – Planta Baja – Of.: 103 (C1084ABB), Ciudad Autonoma de Buenos Aires. Tel. + 54 11 4331 1490, Fax +54 11 4393 0457; e-mail [email protected] - www.dacdirectoresdecine.org.ar

OLAF Section (reprographics): CADRA, Av. Belgrano 1735 1° A, Ciudad Autonoma de Buenos Aires C1093AAF. Tel. +54 11 4381-8933 Fax: +54 11 4381-8933; e-mail: [email protected] - www.cadra.org.ar

OLAF Section (figurative arts): SAVA – Mariano Acha 1757 (1430) CABA, Argentina. Tel/fax +5411 45247649; e-mail: [email protected] - www.sava.org.ar

Armenia

Music Section (rights to perform): ARMAUTHOR, 19 a Koriun Street, 375009 Yerevan, Tel. +374 1 527350 Fax +374 1 529492; email: [email protected] – www.hayastan.com/armauthor

mailto:[email protected]

http://www.onda.dz/


http://www.sadaic.org.arg/


http://www.argentores.org.ar/



http://www.cadra.org.ar/

http://www.sava.org.ar/

http://armauthor.com/

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Australia

Music Section (rights to perform): Australasian Performing Right Association Ltd. (APRA), 16 Mountain Street – ULTIMO NSW 2007 Indirizzo per corrispondenza Locked Bag 5000 Strawberry Hills NSW 2012. Tel +61 2 99357900 Fax +61 2 99357999; e-mail: [email protected] - www.apra.com.au

Music Section (rights to mechanical reproduction): Australasian Mechanical Copyright Owners Society Ltd. (AMCOS), 16 Mountain Street – ULTIMO NSW 2007 Indirizzo per corrispondenza Locked Bag 5000 Strawberry Hills NSW 2012. Tel. +61 2 99357900 Fax +61 2 99357709; e-mail: [email protected] – www.amcos.com.au

Cinema Section (writers): Australasian Writers' Guild Authorship Collecting Society (AWGACS), 5 Blackfriars Street – Chippendale NSW 2008. Tel. +61 2 9281 1554 Fax +61 2 9281 4321; e-mail: [email protected] - www.awg.com.au

OLAF Section (figurative arts): VISCOPY- Level 11, 66 Goulburn Street, Sydney NSW 2000. Tel. +61 2 9394 7600 Fax + 61 2 9394 7601; e-mail: [email protected], www.copyright.com.au

OLAF Section (reprographics and right to resale): CAL (Copyright Agency Limited) – Level 15 233 Castlereagh Street NSW 2000 Sidney. Tel.+612 9394 7600 Fax +612 9394 7601; e-mail: [email protected] – www.copyright.com.au

Austria

Music Section (rights to perform): Staatlich Genehmigte Gesellschaft der Autoren, Komponisten und Musikverleger (AKM), Baumanstrasse 8-10 Postfach 259,1031 Wien. Tel. +43 1 717140. Fax +43 1 71714107; e-mail: [email protected] - www.akm.co.at

Music Section (rights to mechanical reproduction): Gesellschaft zur Wahrnehmung mechanisch-musikalischer Urheberrechte Gmbh (AUSTRO-MECHANA), Baumannstrasse 10 Postfach 55 A1031 Vienna. Tel. +43 1 717 87 631 Fax +43 1 712 71 36; e-mail: [email protected] – www.aume.at

OLAF Section (figurative arts): BILDRECHT, Burggasse 7-9/6, 1070 Wien. Tel. +43 1 8152691 Fax +43 1 8137835; e-mail: [email protected] – www.bildrecht.at

DOR, Lyircs Section (rights to mechanical reproduction) OLAF (literary works), Cinema (writers): Wahrnehmunggesellschaft für Urheberrechte (LITERAR-MECHANA), Linke Wienzeile 18 A1060 Wien 6. Tel. +43 1 587 21 61 Fax +43 587 21 69; e-mail: [email protected] – www.literar.at

Cinema Section (directors): Verwertungsgesellschaft Dachverband Filmschaffender (VDFS), Bösendorferstrasse A-1010 Vienna. Tel. +43 1 5047620 Fax +43 1 5047971; e-mail: [email protected] - www.vdfs.at

Belgium

Lyrics, DOR and Music Sections (rights to perform and rights to mechanical reproduction), OLAF (figurative arts, literary works), Cinema Section : Société Belge des Auteurs, Compositeurs et Editeurs (SABAM), Rue d'Arlon, 75-77 B-1040 Bruxelles. Tel. +32 2 2868211 Fax +32 2 2306942; e-mail: [email protected] - www.sabam.be

Lyrics, DOR sections (for uses in French): French SACD, sede di Bruxelles - Rue du Prince Royal, 87. Tel: +32 2 551 03 20 Fax: +32 2 551 03 25; e-mail: [email protected] - www.sacd.be


http://www.apra.com.au/



http://www.copyright.com.au/


http://www.akm.co.at/




http://www.vdfs.at/


http://www.sabam.be/


http://www.sacd.be/


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OLAF Section (reprographics) REPROBEL – Square de Meeus 23 boite 3 – B-1000. – Bruxelles Tel. +32 2 70233278 Fax +32 2 5510885; e-mail: [email protected] - www.reprobel.be;

Benin



Bielorussia

Lyrics, DOR and Music Sections (rights to perform): National Center of Intellectual Property (NCIP), 20 Kozlova Str. Minsk 220034. Tel. +375 17 294 25 68 Fax +375 17 285 26 05; e-mail: [email protected] – www.belgospatent.org.by

Bolivia

Music Section (rights to mechanical reproduction): Spanish SGAE

Bosnia and Herzegovina

Music Section (rights to perform): Sine Qua Non Copyright Agency (SQN), Branilaca Sarajeva 21, 71000 Sarajevo. Tel. +387 33 251 600 Fax +387 33 251 601; e-mail: [email protected] – www.sqn.ba

Botswana

DOR Section: South-African DALRO

Brasil

Music Section (rights to perform and rights to mechanical reproduction): União Brasileira de Compositores (UBC), Rua Visconde de Inhauma, 107 Centro –RJ CEP 20091-007 Rio de Janeiro. Tel. +55 21 22233233 Fax: +55 21 2516 8291; e-mail: [email protected] - www.ubc.org.ar

For a specific repertoire: Sociedade Indipendente de Compositores e Autores Musicais (SICAM), Largo Paissandu 51 - CEP 01034-010 São Paulo. Tel. +55 11 221 46 56 Fax +55 11 2224357; e-mail: [email protected]

Lyrics, DOR Sections: Associaçao Brasileira de Música (ABRAMUS), Avenida das Americas, 500/bloco 18/sala 104 Barra da Tijuca – Rio de Janeiro – RJ CEP 22640-100 Tel +55 21 3078-1391 Fax +55 21 3078-1392; e-mail: [email protected] – www.abramus.org.br

OLAF Section (figurative arts): Associação Brasileira Dos Direitos de Autores Visuais (AUTVIS) – Rua Boa Vista, 186 – 4° andar – 01014-000-Centro- Sao Paulo. Tel. +55 11 31013161; e-mail: [email protected] - www.autvis.org.br

Bulgaria

Music Section (rights to perform and rights to mechanical reproduction apart from online): Bulgarian Society of Composers and Authors for Performing and Mechanical Rights (MUSICAUTOR), 17 Budapeshta Str., 4th floor, 1000 Sofia. Tel. +359 2 9801035 Fax +35 92 9800253; e-mail: [email protected] – www.musicautor.org


http://www.reprobel.be/


http://www.belgospatent.org.by/





http://www.musicautor.org/

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Cinema Section: FILMAUTOR - 2 Louis Leger Street 1000 Sofia. Tel. +359 2 9873234; e-mail: [email protected] - www.filmautor.org

Burkina Faso

Music Section (rights to perform): Bureau Burkinabé du Droit d'Auteur (BBDA), BP. 3926 Ougadougou 01. Tel. +226 50 30 22 23 Fax +226 50 30 06 82; e-mail: [email protected]

Rights to mechanical reproduction: French SDRM

Burundi

Lyrics, DOR and Music Sections (rights to perform and rights to mechanical reproduction): Belgian SABAM

Cameroon



Canada

Music Section (rights to perform): Society of Composers, Authors and Publishers of Canada (SOCAN), 1 Valleybrook Drive, Toronto, Ontario, M3B 2S6 Canada. Tel. +1 416 445 8700 Fax +1 416 4457108; e-mail: [email protected] - www.socan.ca

Music Section (Music Section (rights to mechanical reproduction, private copy), OLAF (figurative arts): Société du Droit de Reproduction des Auteurs, Compositeurs et Editeurs (SODRAC), Tour B, bureau 1010 1470 rue Peel Montréal H3A 1T1 Québec. Tel. +1 514 8453268 Fax +1 514 8453401; e-mail: [email protected] - www.sodrac.com

OLAF Section (reprographics – only in Quebec): Société Québecoise de gestion collective des droits de reproduction (COPIBEC), 606 Cathcart Street Suite 810 Montréal (Québec) H3B 1K9. Tel. +1 514 2881664 Fax +1 514 2881699; e-mail: [email protected] - www.copibec.qc.ca

(Reprographics- for Canada apart from Quebec) ACCESS Copyright (The Canadian Copyright Licensing Agency) – 1 Yonge Street, Suite 800 – M5E 1E5 Toronto Ontario. Tel +1 416-868-1620; Fax +1 416-868-1621; e-mail: [email protected] - www.accesscopyright.ca

Chad



Chile

Music Section (rights to perform and rights to mechanical reproduction): Sociedad Chilena del Derecho de Autor (SCD), Condell 346 Providencia Casilla 51270-Correo Central Santiago. Tel. +56 2 370 8000 Fax +56 2 370 8030; e-mail: [email protected] - www.scd.cl




http://www.sodrac.com/


http://www.copibec.qc.ca/


http://www.scd.cl/


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DOR Lyrics Section: Sociedad de Autores Nacionales de Teatro, Cine y Audiovisuales (ATN) Terranova 315, Providencia, Santiago. Tel +56 2 370 8794 Fax +56 2 370 8070; email: [email protected] –www.an.cl

China

Music Section (rights to perform): Music Copyright Society of China (MCSC), 5/F Jing Fang Building, n° 33 Dong Dan San Tiao - Beijng 100005. Tel. +86 10 6523 26 56 Fax +86 10 6523 26 57; e-mail: [email protected] - www.mcsc.com.cn

Cyprus

Music Section (rights to perform): English PRS

Music Section (rights to mechanical reproduction): English MCPS

Colombia

Music Section (rights to perform): Sociedad de Autores y Compositores de Colombia (SAYCO), Calle 95 n° 11-31, PO Box 6482, Bogota. Tel. +57 1 592 52 00 Fax +57 1 520 12 07; e-mail: [email protected] - www.sayco.org


British Commonwealth

Limited to associated and dependent territories and the following listed countries:


- Anguilla, Antigua and Barbuda, Ascension Island, Bahamas, Barbados, Belize, Bermuda, Brunei, Cyprus, Diego Garcia, Dominica, Falkland Islands, Gibraltar, Grenada, Jamaica, Kenya, Isle of Man, Cayman Islands, Channel Islands, Pitcairn Islands, South Sandwich Islands, Turks and Caicos Islands, British Virgin Islands, Malta, Montserrat, Nigeria, Seychelles Embassy, South Georgia, St. Helena, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Tanzania, British Antarctic Territory , British Indian Ocean Territory, Tristan da Cunha, Uganda, Zambia, Zimbabwe.


- Anguilla, Antigua and Barbuda, Ascension Island, Bahamas, Bangladesh, Barbados, Belize, Bermuda, Brunei, Cyprus, Dominica, Falkland Islands, Gibraltar, Grenada, Guyana, India, Ireland, Jamaica, Kenya, Isle of Man, Cayman Islands, Islands channel, Pitcairn Islands, South Sandwich Islands, Turks and Caicos Islands, British Virgin Islands, Malaysia, Malawi, Malta, Montserrat, Nigeria, Pakistan, Seychelles Embassy, Sierra Leone, Singapore, South Georgia, Sri Lanka, St. Helena, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Tanzania, British Antarctic Territory, British Indian Ocean Territory, Tonga, Trinidad and Tobago, Tristan da Cunha, Uganda, Zambia, Zimbabwe.

South Korea

Music Section (rights to perform): Korea Music Copyright Association (KOMCA), KOMCA Building Ujangsan-Dong 649 Gangseo-Gu Seoul 157-824. Tel. +822 2660 0430 Fax +822 2660 0429; e-mail: [email protected] - www.komca.or.kr





http://www.komca.or.kr/

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OLAF Section (figurative arts): Imprima Korea Agency (SACK), 1F, Mijin Bldg, 464-41, Seokyo-Dong,Mapo-Ku SEOUL 121841. Tel. +822 597 15 28 Fax +822 597 30 49; e-mail: [email protected]

Ivory Coast



Costa Rica

Music Section (rights to perform): Asociación de Compositores y Autores Musicales de Costa Rica (ACAM), Av. 11, Calle 31 y 33 Casa 3162 Apartado 2499 Costa Rica. Tel. +506 8008002226 Fax +506 25240680: e-mail: [email protected] - www.acam.cr


Croatia

Music Section (rights to perform): Croatian Composers Association (HDS-ZAMP), Heinzelova 62a 10000 Zagreb. Tel. +38 51 6387000 Fax +38 51 6387001; e-mail: [email protected] - www.hds.hr

Cuba

Music Section (rights to perform): Agencia Cubana del Derecho de Autor Musical (ACDAM) Calle 6 - 313, E/13 y 15 Vedado, CP 10400, La Habana. Tel. +537 302818 Fax +537 334347; e-mail: [email protected] - www.acdam.cu

Denmark

Music Section (rights to perform and private copy): Seiskabet til Forvaltning af Internationale Komponistrettigheder i Danmark (KODA) -Landemaerket, 23-25 – PO BOX 2154 1016 Copenhagen. Tel. +45 33 306300; Fax +45 33 306330; e-mail: [email protected] - www.koda.dk

Music Section (rights to mechanical reproduction): Nordisk Copyright Bureau (NCB), Niels Juels Gade 9-11, 3rd 1059 Copenhagen V. Tel.+45 33 368700. Fax +45 33 364690; e-mail: [email protected] - www.ncb.dk

OLAF Section (figurative arts): COPYDAN-BILLEDER Bryggervangen 8 (2nd floor) 2100 Copenhagen. Tel.+4535441491;e-mail:[email protected] -www.copydanbilleder.dk

OLAF Section (reprographics): COPYDAN WRITING Bryggervangen 8 (2nd floor) 2100 Copenhagen.Tel.+4535441402; e-mail:[email protected] -www.teskognode.dk/en

Ecuador

Music Section (rights to perform): Sociedad de Autores y Compositores Ecuatorianos (SAYCE), Finlandia 192 y Suecia Edificio Escandinavia Loft, Tercer Piso, Quito. Tel. +593 2 3330127; e-mail: [email protected] – www.sayce.com.ec


http://www.acam.cr/




http://www.ncb.dk/





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OLAF Section (figurative arts): ARTEGESTION, Veintimilla E8-115 y Av. 6 de Dicembre, Quito; Tel. +593 22547813; e-mail: [email protected]

Egypt



El Salvador


Estonia

Music Section (rights to perform), Lyrics, DOR, OLAF (figurative arts): Estonian Authors' Agency (EAU), Lille 13 - Tallinn 10614. Tel. +37 2 66 84 360 Fax +37 2 6684361; e-mail: [email protected] - www.eau.org

Music Section (rights to mechanical reproduction): Danish NCB

Fiji

Music Section (rights to perform): Australian APRA

Music Section (rights to mechanical reproduction): Australain AMCOS

The Phillipines

Music Section (rights to perform): Filipino Society of Composers, Authors and Publishers (FILSCAP), 140 Scout Rallos Street, Diliman, Quezon City, Manila 1103. Tel. +63 2 990 19 58 Fax +632 928 98 52; e-mail: [email protected]

Finland

Music Section (rights to perform): Säveltäjäin Tekijänoikeustoimisto teosto r.y. (TEOSTO), Lauttasaarentie,1 - SF 00200 Helsinki. Tel. +358 9 681011 Fax +358 9 677134; e-mail: [email protected] - www.teosto.fi


OLAF Section (figurative arts): KUVASTO - Iso Roobertinkatu 3-5 A 22 00120 Helsinki Tel. + 358 9 272 40 22 Fax + 358 9 272 40 06; e-mail: [email protected] -www.kuvasto.fi

Cinema Section: KOPIOSTO - Hietaniemenkatu 2, 00100 Helsinki. Tel. +358 9 431 521 Fax +358 9 4315 2377; e- mail: [email protected] - www.kopiosto.fi

France

Music Section (rights to perform): Société des Auteurs, Compositeurs et Editeurs de Musique (SACEM), 225, Avenue Charles de Gaulle - F-92521 Neuilly sur Seine, Cédex. Tel. +33 1 47 15 47 15 Fax +33 1 47451294 - www.sacem.fr






http://www.sacem.fr/

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Music Section (rights to mechanical reproduction): Société pour l'Administration du Droit de Reproduction Mécanique des Auteurs, Compositeurs et Editeurs (SDRM), 225 avenue Charles de Gaulle - 92528 Neuilly sur Seine Cedex. Tel. +33 1 47 15 47 15. Fax +33 1 47 15 49 75; e-mail: [email protected]

Lyrics, DOR, Cinema Sections: Société des Auteurs et Compositeurs Dramatiques (SACD), 9 rue Ballu 75009 Paris. Tel. +33 1 40 23 44 55 Fax +33 1 40 23 47 08; e-mail: [email protected] - www.sacd.fr

Cinema Section: SCAM (documentaries and docu-fiction) – 5, av. Vélasquez – 75008 Paris. Tel. +33 1 56695858 Fa +33 1 56695859; e-mail: [email protected] – www.scam.fr

OLAF Section (figurative arts): Société des Auteurs des Arts Graphiques et Plastiques (ADAGP), 11, rue Berryer - 75008 Paris. Tel. +33 1 43 59 09 79 Fax +33 1 45634489; e-mail: [email protected] - www.adagp.fr

OLAF Section (reprographics) Centre Française d’exploitation du droit de Copie (CFC) 20, rue des Grands-Augustins, 75006 – Paris - Tel.+33 1 44074770 – fax +33 1 46346719 - www.cfcopies.com

OLAF Section (literary works): SCAM 5, av. Vélasquez – 75008 Paris. Tel. +33 1 56695858 Fa +33 1 56695859; e-mail: [email protected] – www.scam.fr

Gabon



Gambia



Georgia

Music Section (rights to perform): Georgian Copyright Association (GCA), 63 Merab Kostava str. 63, 0171 Tblisi. Tel.+995 32 223 78 87; e-mail: [email protected] – www.gca.ge

Germany

Music Section (rights to perform and rights to mechanical reproduction): Gesellschaft für musikalische Aufführungs - und mechanische Vervielfältigungsrechte (GEMA), Rosenheimerstrasse 11 - 81667 Postfach 800767 München. Tel.+49 89 4800300 Fax +49 89 480 03 620; e-mail: [email protected] www.gema.de

OLAF Section (figurative arts) e Cinema Section (directors): VG BILD-KUNST, Weberstrasse, 61 - 53113 Bonn. Tel. +49 22 8915340 Fax +49 22 89153439; e-mail: [email protected] - www.bildkunst.de

Cinema Section (writers), OLAF (reprographics): VG WORT - Untere Weidenstraße 5 81543 München. Tel. +49 89 51 41 20 Fax +49 89 51 41 258; e-mail: [email protected] - www.vgwort.de

http://www.sacd.fr/



http://www.adagp.fr/

http://www.cfcopies.com/




http://www.bildkunst.de/


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189

Jamaica

see British Commonwealth

Japan

Music Section (rights to perform and rights to mechanical reproduction): The Japanese Society of Rights of Authors, Composers and Publishers (JASRAC), 3-6-12, Uehara,Shibuya-Ku Tokyo 1518540. Tel. +81 3 3481 2144 Fax +81 3 3481 2154; e-mail: [email protected] - www.jasrac.or.jp

OLAF Section (figurative arts): JASPAR (Japanese Society for Protecting Artists’ Rights) – 604, Bijutsuka Kaikan, 3-10-19 Ginza, Chuo-ku, Tokyo 104-0061. Tel. +81 3 6226 5951 Fax +81 3 6226 5952; e-mail: [email protected]

(Both SPDA and APG companies have been incorporated into JASPAR)

Djibouti



Greece

Music Section (rights to perform and rights to mechanical reproduction): Société Anonyme Hellénique pour la Protection de la Propriété lntellectuelle (AEPI), Fragoklissias Samou 51 Street 151 25 Amarousio Athens. Tel. +30 21 068 57 408 Fax +30 21 068 51 576; e-mail: [email protected] - www.aepi.org

DOR, Lyrics, OLAF (literary works) Sections : SOPE (Copyright Protection Society c. Samaras – 51, Samou Str.15125 Marousi, Athens. Tel. +210 6857 481 Fax +210 68 53 174 ; e-mail: [email protected]

Guatemala


Haiti


Honduras


Hong Kong

Music Section (rights to perform and rights to mechanical reproduction): Composers and Authors Society of Hong Kong Ltd. (CASH) 18/F, Universal Trade Centre, 3 Arbuthnot Road, Central. Tel. +852 2 8463268 Fax +852 2 8463261; e-mail: [email protected] - www.cash.org.hk

OLAF Section (reprographics): The Hong Kong Reprographic Rights Licensing Society Limited (HKRRLS), Unit Nos. 909-910, 9/F, Prosperity Millennia Plaza , 663 King's Road, North Point , Hong Kong. Tel. +852 2516-6268 Fax: +852 3105-1468; e-mail: [email protected] -www.hkrrls.org





http://www.cash.org.hk/


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India

Music Section: see British Commonwealth

OLAF Section (reprographics): Indian Reprographic Right Organisation (IRRO) 18/1-C, Institutional Area, Aruna Asaf Ali Marg New Delhi 110067. Tel. +91 11 26852263 Fax +91 11 26864054; e-mail; [email protected] -www.irro.org.in

Ireland

Music Section (rights to perform): Irish Music Rights Organization (IMRO), Copyright House, Pembroke Row, Lower Baggot St., Dublin 2. Tel. +353 1 6614844 Fax +353 1 6763125; e-mail: [email protected] - www.imro.ie

Music Section (rights to mechanical reproduction): EnglishMCPS

OLAF Section (figurative arts): IVARO (Irish Visual Artists’Rights Organisation) – Ground Floor Central Hotel Chambers 7-9 Dame Court Dublin 2. Tel: +353 1 672 94 88 Fax + 353 1 672 94 82; e-mail: [email protected] - www.ivaro.ie

Iceland

Music Section (rights to perform): Samband Tonskalda og Eigenda Flutningsréttar (STEF) Laufasvegur 40 - 101 Reykjavik. Tel. +35 4 5616173 Fax +35 4 5626273; e-mail: [email protected] - www.stef.is


Israel

Music Section (rights to perform and rights to mechanical reproduction): Société d'Auteurs, Compositeurs et Editeurs de Musique en lsraël (ACUM) 9, Tuval Street POB 1704 Ramat Gan 52117. Tel. +972 3 611 34 14 Fax +972 3 6122629; e-mail: [email protected] www.acum.org.il

Khazakstan

Music Section (rights to perform): Kazakh Authors’ Society (KazAK), 29 Zheltoksan Street batyra Str., 050004 -Almaty. Tel. +7 727 233 22 70 Fax +7 727 233 2270; e-mail: [email protected] - www.kazak.kz

Lesotho

Sez. DOR: South-African DALRO

Latvia

Lyrics, DOR, Music (rights to perform) Sections, OLAF Section (figurative arts): Copyright and Consultation Agency (AKKA/LAA), 97 A. Caka Street Riga LV-1011. Tel. +371 7506131 Fax +371 7315620; e-mail: [email protected] – www.akka-laa.lv


Libya




http://www.imro.ie/







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Liechtenstein

Lyrics, DOR Sections: Swiss SSA

Music Section (rights to perform and rights to mechanical reproduction): Swiss SUISA

OLAF Section (literary works): Swiss PROLITTERIS

Cinema Section: Swiss SUISSIMAGE

Lithuania

Lyrics, DOR, Music (rights to perform) Sections, OLAF Section (figurative arts)), Cinema: Lietuvos Autoriu Teisiu Gynimo Asociacijos Agentura (LATGA-A) J. Basanavičiaus str. 4B, 01118 Vilnius. Tel. +370 5 2651600 Fax +370 5 2651377; e-mail: [email protected] - www.latga.lt


Luxembourg

Lyrics, DOR Section: French SACD



OLAF Section (figurative arts): French ADAGP

Macau

Music Section (rights to perform): Macau Association of Composers, Authors and Publishers (MACA); Alameda Dr.Carlos D’Assumpcao No.258, Praca Kin Heng Long C10, Macau. Tel. +853 28882380 Fax +853 28882597: e-mail: [email protected] - www.maca.org.mo

Macedonia

Music Section (rights to perform): Musical Copyright Society (ZAMP), Metropolit Teodosij Gologanov 28, 91000 Skopje. Tel. +389 2 316 49 53 Fax +389 2 323 90 95; e-mail: [email protected] – www.zamp.com.mk

Madagascar



mailto:latga@latga

http://www.latga.lt/


http://www.maca.org.mo/


http://www.zamp.com.mk/

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Malawi

Music Section (rights to perform): Copyright Society of Malawi (COSOMA), Cosoma House Off Paul Kagame Road Next to Malaxi Rural Finance Company Head Office - Lilongwe 3. Tel. +265 1 751 148 Fax +265 1 740073; e-mail: [email protected] - www.cosoma.org


Malaysia

Music Section (rights to perform): Music Authors’ Copyright Protection (MACP), UNIT 8, Level U2, Block D4 (U2-4-8), Solaris Dutamas 1 Jalan Dutamas 1, 50480 Kuala Lumpur. Tel. +603 620786


Mali



Malta



Morocco

DOR, Lyrics Sections: French SACD



Mauritania



Mauritius

Music Section (rights to perform and rights to mechanical reproduction): Mauritius Society of Authors (MASA), MASA HOUSE, Artists’ Avenue, Beau Bassin, 0230 Republic of Mauritius. Tel. +230 467 22 19 Fax +230 454 05 78; e-mail: [email protected] - www.masa.mu


http://www.cosoma.org/

http://www.masa.mu/


www.siae.it

193

Mexico

Music Section (rights to perform): Sociedad de Autores y Compositores de Musica, S. de A. (SACM), Mayorazgo, 129 - Col. Xoco - 03330 México D.F. Tel. +52 55 56047733 Fax +52 55 56047923; e-mail: [email protected] - www.sacm.org.mx


OLAF Section (figurative arts) Sociedad Mexicana de las Artes Plàsticas (SOMAAP) Manuel Maria Contreras n° 96, 3rd floor, Colonia San Rafael Delegacion Cuauhtémoc CP 06470 Mexico D.F. Tel. +52 5531 2082 Fax +52 55 56 05 68; e-mail: [email protected] - www.somaap.com

Sez. Lirica, DOR: Sociedad General de Escritores de México (SOGEM), J.M. Velasco, 59 - San José Insurgentes Del. Benito Juarez, C.P. 03900. Tel. +52 53370230 Fax +52 55 55 93 60 17; e-mail : [email protected] - www.sogem.org.mx -

Monaco

Lyrics, DOR Sections: French SACD


OLAF Section (figurative arts): French ADAGP


Nauru



Nicaragua


Nepal

Music Section (rights to perform): MRCSN (Music Royalty Collection Society Nepal) – P.O. Box 26517 House n°21 Sangam Galli, Anamnagar Ward n°32 Kathmandu. Tel. +977 1 4770289 Fax +977 1 4770506; e-mail: [email protected] - www.mrcsn.com

Niger







http://www.mrcsn.com/

www.siae.it

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Norway

Music Section (rights to perform): Norsk Komponistforenings Internasjonale Musikkbyra (TONO) - Töyenbekken 21 Postboks 9171 Grönland 0134 Oslo. Tel. +47 2 2057200 Fax +47 2 2057250; e-mail: [email protected] - www.tono.no


OLAF Section (figurative arts): Norwegian Visual Artists Copyright Society (BONO), Kjeld Stubsgt. 3 0160 Oslo. Tel. +47 23 100350 Fax +47 23 100359; e-mail: [email protected]; www.bono.no

Sez. Olaf (reprografia): KOPINOR – P. O. Box 1663 Vika Oslo N-0120. Tel. +47 23 10 7400 Fax +47 23 10 74 10; e-mail: [email protected] - www.kopinor.no/

Sez. Cinema: NORWACO, Møllergata 8, NO-0179 Oslo. Tel. +47 23 31 68 00 Fax +47 23 31 68 01; e-mail: [email protected] – www.norwaco.no

New Zealand

Music Section (rights to perform): Società australiana APRA

Music Section (rights to mechanical reproduction): Società australiana AMCOS

OLAF Section (figurative arts): Società australiana VISCOPY

OLAF Section (reprographics): Copyright Licensing Ltd. (CLL) – P.O. Box 331488 – Takapuna, Auckland 0740. Tel. +64 9 4866250 Fax +64 9 4866260; e-mail: [email protected] - www.copyright.co.nz

Netherlands (and Netherlands Antilles)

Music Section (rights to perform): Het Bureau voor MuxiekAuteursrecht (BUMA) Siriusdreef 22-28 Postbus 3080 2130 KB Hoofddorp. Tel. +31 23 7997999 Fax +31 23 7997777; e-mail: [email protected] - www.bumastemra.nl

Music Section (rights to mechanical reproduction): Stichting tot Exploitatie van mechanische Reproductierechten der Auteurs (STEMRA), Siriusdreef 22-28, 2132 WT Hoofddorp. Tel. +31 23 7997999 Fax +31 23 7997777; e-mail: [email protected] - www.bumastemra.nl

Cinema Section (writers): Literarie Rechten Auteurs (LIRA), Postbus 3060, 2130 KB Hoofddorp. Tel. +31 23 8700202. Fax +31 23 8700210; e-mail: [email protected] - www.lira.nl

OLAF Section (figurative arts): PICTORIGHT – Sarphatistraat 606-608 1018 AV Amsterdam. Tel. +31 20 589 18 40 Fax +31 20 412 42 69; e-mail: [email protected] - www.pictoright.nl

Cinema Section (directors): VEVAM, PO Box 3060 2130 KB Hoofddorp. Tel. +31 238700211; e-mail: [email protected] - www.vevam.org

Panama

Music Section (rights to perform): Sociedad Panameña de Autores y Compositores (SPAC): Bethania, Villa de Las Fuentes, Calle C, Edificio E-10 Apartado Postal 23-1400, Panama. Tel. +507 236 55 83 Fax +507 223 29 93; e-mail: [email protected]


http://www.bono.no/




http://www.copyright.co.nz/


http://www.bumastemra.nl/



http://www.lira.nl/

http://pictoright/


http://www.pictoright.nl/

http://www.vevam.org/



www.siae.it

195


Papua New Guinea


Music Section (rights to mechanical reproduction): Australian AMCOS

Paraguay

Music Section (rights to perform): Autores Paraguayos Asociados (APA), Av. Chile, 850 - Asunción. Tel. +595 21 497 711 Fax +595 21 492750; e-mail: [email protected] - www.apa.org.py

Perù

Music Section (rights to perform): Asociación Peruana de Autores y Compositores (APDAYC), Av. Petit Thouars 5038, Miraflores, Ap.do postal 18-0718, Lima 18. Tel. +51 2423553 Fax +51 2423248; e-mail: [email protected] - www.apdayc.org.pe


OLAF Section (figurative arts): Asociacion Peruana de Artistas Visuales (APSAV), Los Frailes 181 Urb. Santa Felicia – La Molina, Lima 12. Tel. + 51 1 3488590 Fax +51 1 349 0593; e-mail: [email protected] - www.apsav.org.pe

Poland

Lyrics, DOR, Music (rights to perform and rights to mechanical reproduction) Sections: Stozarzyszenie Autoròw (ZAIKS), ul. Hipoteczna 2 Boîte postale P-16 00092 Warsaw. Tel. +48 22 828 17 05 Fax +48 22 828 92 04; e-mail: [email protected] - www.zaiks.org.pl

Sez. Cinema: Polish Filmmakers Association-Union of Audiovisual Authors and Producers (SFP-ZAPA), ul.Zelazna 28/30, 00832 Warszawa. Tel. +48 22 581 4360 Fax +48 22 581 4361; e-mail: [email protected] - www.zapa.org.pl

Portugal

Lyrics, DOR, Music (rights to perform and rights to mechanical reproduction) Sections, OLAF (literary works and figurative arts): Sociedad Portuguesa de Autores (SPA), Avenida Duque de Loulé, 31- 1069 153 Lisbon. Tel. +35 1 213594400 Fax +35 1 213530257; e-mail: [email protected] - www.spautores.pt

UK

Music Section (rights to perform): The Performing Right Society Ltd. (PRS), 2 Pancras Square, London N1C 4AG. Tel. + 44 20 7580 5544 Fax +44 20 3741 4455; e-mail: [email protected] – www.prsformusic.com

Music Section (rights to mechanical reproduction): Mechanical Copyright Protection Society Ltd. (MCPS), 2 Pancras Square, London N1C 4AG. Tel. + 44 20 7580 5544 Fax +44 20 3741 4455; e-mail: [email protected] - – www.prsformusic.com


http://www.apa.org.py/


http://www.apdayc.org.pe/


http://www.apsav.org.pe/


http://www.zapa.org.pl/




www.siae.it

196

OLAF Section (literary works - only secondary uses, reprographics for a specific repertoire), Cinema Section (writers): The Authors' Licensing and Collecting Society Ltd. (ALCS) Authors’ Licensing and Collecting Society Ltd (ALCS) - The Writers' House 13 Haydon Street London EC3N 1DB Tel. +44 20 7264 5700; Fax +44 20 7264 5755; e-mail: [email protected] -www.alcs.co.uk

Cinema Section (directors): DIRECTORS UK Limited, 3rd&4th floor – 8/10 Dryden Street – London WC2E 9NA. Tel + 44 20 72400009; e-mail: [email protected] – www.directors.uk.com

OLAF Section (reprographics): The Copyright Licensing Agency Limited (CLA), Saffron House, 6-10 Kirby Street Londra EC 1N8TS. Tel. +44 20 7400 3100 Fax: +44 20 7400 3101; e-mail [email protected] - www.cla.co.uk

OLAF Section (visual arts): Design and Artist Copyright Society Ltd (DACS), 33 Old Bethnal Green Road, London, E2 6AA, Tel. +44 20 7336 8811; Fax +44 (0)20 7336 8822; e-mail [email protected] – www dacs.org.uk

Czech Republic

Music Section (rights to perform and rights to mechanical reproduction): Ochranny Svaz Autorsky (OSA), Trida Cs. Armady 20 - 160 56 Praha 6. Tel. +420 2 203 151 11 Fax +420 2 333 43 073; e-mail: [email protected] - www.osa.cz

Lyrics, DOR, OLAF (literary works), Cinema Sections: Divadelni a Literární Agentura (DILIA), Kratkeho 1 -190 003 Praha 9. Tel. +420 2 83 89 3 603; Fax: +420 2 83 89 3 599 e-mail: [email protected] - www.dilia.cz

OLAF Section (rights to resales): Union for the Protection of Authorship (GESTOR), Šitkova 1/233, 110 00, Praha 1. Tel. +420 224 934 819 Fax +420 224 934 742; e-mail: [email protected] - www.gestor.cz

Central African Republic



Republic of Congo



Dominican Republic


Republic of Moldova

Sez. Musica (rights to public performance): AsDAC – 24° N. Zelinski Street MD2038 – Chisinau. Tel. +37322 505049 Fax +37322 505017; email: [email protected] - www.asdac.md



http://www.directors.uk.com/


http://www.cla.co.uk/




http://www.dilia.cz/


http://www.gestor.cz/


http://www.asdac.md/


www.siae.it

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Republic of South Africa

Music Section (rights to perform): South African Music Rights Organization Ltd. (SAMRO), SAMRO Place, 20 De Korte Street, Braamfontein, 2001 - indirizzo postale P.O. Box 31609, Braamfontein, Johannesburg 2017. Tel. +27 11 489 5000 Fax +27 11 403 1934; e-mail: [email protected] - www.samro.org.za

DOR, OLAF (figurative arts) Sections: The Dramatic Artistic and Literary Rights Organisation (DALRO), P.O. Box 31627 2017 Braamfontein Johannesburg Tel. +27 011 489 5000 Fax +27 011 403 9094; e-mail: [email protected] - www.dalro.co.za

Romania

Music Section (rights to perform and rights to mechanical reproduction): Uniunea Compozitorilor si Muzicologilor Din Romania (UCMR-ADA), Ostasilor Street nr 12 – Sector 1 71102 Bucuresti. Tel. +40 213167960 Fax +40 213165880; e-mail: [email protected] - www.ucmr-ada.ro

Cinema Section: DACIN-SARA, Str. Dem. I. Dobrescu 4-6, intr.B, et 3, cam 50, sector 1, Bucarest – 010026 OP1 – Romania Tel +40 21 3145731 Fax +40 21 3158483; e-mail: [email protected], www.dacinsara.ro

Rwanda

DOR, Music (rights to perform and rights to mechanical reproduction) Sections: Belgian SABAM

Russia

Lyrics, DOR, Music (rights to perform and rights to mechanical reproduction excluding online use), OLAF (figurative arts): Russian Authors' Society (RAO), B. Bronnaia, 6a - GSP-5, Moscow 123995 Moscow. Tel. +7495 697 45 99 Fax +7495 609 93 63; e-mail: [email protected] - www.rao.ru

OLAF Section (rights to resales): UPRAVIS Stoleshnikov Lane 11/1 –Office 353 – 103031 Moscow. Tel. +7495 925 52 15 Fax +7495 721 73 13; e-mail [email protected] – www.upravis.ru

OLAF Section (reprographics): Russian Rightholders’ Society on Collective Management of Reprographic Reproduction Rights (CopyRus) 7 st. 12, Malaya Pereyaslavskaya street, 2 Floor, NP "COPYRUS", Moscow 129110. Tel. +7495 9212231 Fax +7495 9212231; e-mail: [email protected] – www.copyrus.org

Private Copy: Russian Union of Right-Holders (RUR): bld. 73/1, Novoslobodskaya, Moscow, Russia, 127055 Tel +7 (499) 418-00-22. Fax +7 (495) 685-48-18; e-mail: [email protected].

Solomon Islands


Samoa


Music Section (rights to mechanical reproduction): Australian AMCOS


http://www.samro.org.za/




http://www.dacinsara.ro/


http://www.rao.ru/


http://www.upravis/


http://www.copyrus.org/


www.siae.it

198

San Marino

SIAE- Agente per la Repubblica di San Marino: Dott. Andrea Lombardi - Via 3 Settembre, 99 - 47891 Dogana, San Marino - Telefono e fax 0549 909630.

Senegal



Serbia

Music Section (rights to perform and rights to mechanical reproduction), OLAF (literary works): Drustvo za zastitu autorskih prava (SOKOJ), Misarska 12-14P.O. Box 213 11000 Beograd. Tel. +381 11 32 38 761 Fax +381 11 32 36 168; e-mail: [email protected] - www.sokoj.rs

Singapore

Music Section (rights to perform): Composers and Authors Society of Singapore Ltd. (COMPASS), 60 Paya Lebar Road, #12-48 Singapore 409051. Tel +65 6 3236630 Fax +65 6 3236639; e-mail: [email protected] - www.compass.org.sg


Slovakia

Music Section (rights to perform and rights to mechanical reproduction): Slovensky ochranny Zväz Autorsky (SOZA), Ratislavova 3, 821 08 Bratislava 2. Tel. +42 12 5556 9362 Fax +42 12 5669409; e-mail: [email protected] - www.soza.sk

Lyrics, DOR, OLAF (literary works and figurative arts) Sections: Slovenská Literárna Agentúra (LITA), Mozartova 9 P.O. Box 28 810 01 Bratislava 11. Tel. +421 2 6720 9301 Fax +421 2 6280 2246; e-mail: [email protected] - www.lita.sk

Slovenia

Music Section (rights to perform and rights to mechanical reproduction): Société des Compositeurs, Auteurs et Editeurs de Slovénie (SAZAS/DSS), Spruha 19 – 1236 Trzin. Tel. +386 1 423 81 10 Fax. +386 1 401 45 48; e-mail: [email protected] - www.sazas.org

Spain

Lyrics, DOR, Music (rights to perform and rights to mechanical reproduction), Cinema Sections: Sociedad General de Autores de España (SGAE), Fernando VI, 4 28004 Madrid. Tel + 34 91 349 95 50 Fax + 34 91 310 21 20; e-mail: [email protected] - www.sgae.es

OLAF Section (figurative arts): VEGAP, Nunez de Balboa 25 228001 Madrid. Tel +34 91 5326632 Fax +34 91 5315398; e-mail: [email protected] - www.vegap.es


http://www.sokoj.rs/


http://www.compass.org.sg/





http://www.vegap.es/


www.siae.it

199

OLAF Section (reprographics): CEDRO, calle Miguel Angel 23, 4° planta, 28010 Madrid. Tel. +34 91 308 6330 Fax +34 91 308 6327; e-mail: [email protected] – www.cedro.org

United States of America (and Puerto Rico and Virgin Islands)

Music Section (rights to perform): American Society of Composers Authors and Publishers (ASCAP), One Lincoln Plaza - New York, N.Y. 10023. Tel. +1 212 621-6000 Fax +1 212 724-9064; e-mail: [email protected] -www.ascap.com

For a specific repertoire: Broadcast Music lnc. (BMI), 7 World Trade Center, 250 Greenwich Street – New York,10007-0030. Tel. +1 212 220-3000 Fax +1 212 2463694; e-mail: [email protected] - www.bmi.com

For a specific repertoire:

SESAC lnc. - 55, Music Square East, Nashville, TN 37203. Tel. +1 615 3200055 Fax +1 615 3299627; www.sesac.com

Music Section (rights of mechanical reproduction - with the exception of musical works on DVD and video media): Harry Fox Agency (HFA), 40 Wall Street, 6th floor, New York NY 10005-1344. Tel. +1 212 834-0100 Fax +1 646 487-6779, e-mail: [email protected] - www.harryfox.com

OLAF Section (works of figurative arts, strictly for the USA): Artists Rights Society (ARS) 536 Broadway, 5th Floor New York N.Y. 10012. Tel. +1 212 4209160 Fax +1 212 4209286; e-mail: [email protected] - www.arsny.com

Sweden

Music Section (rights to perform): Foreningen Svenska Tonsättares lnternationella Musikbyra (STIM), P.O. Box 170 92 - SE 104 - 62 Stockholm. Tel. +46 8 7838845 Fax +46 8 783 95 95; e-mail: [email protected] - www.stim.se


OLAF Section (figurative arts): Bildkonst Upphovsratt I Sverige (BUS), Homsgatan 103, etage 11 S-117 28 Stockholm. Tel. +46 8 54553380 Fax +46 8 54553398; e-mail: [email protected] - www.bus.se

Switzerland

Music Section (rights to perform and rights to mechanical reproduction): Société Suisse pour les Droits des Auteurs d’Oeuvres Musicales (SUISA) - Bellariastrasse 82 - Postfach 782 CH 8038 Zurich. Tel. +41 44 485 66 66 Fax +41 44 482 43 33; e-mail: [email protected] - www.suisa.ch

Lyrics, DOR, Cinema (for French repertoire) Sections: Société Suisse des Auteurs (SSA), Rue Centrale 12/14 1003 Lausanne. Tel. +41 21 313 44 55 Fax +41 21 313 44 56; e-mail: [email protected] - www.ssa.ch

OLAF Section (literary works, figurative arts and reprographics): PROLITTERIS, Indirizzo postale: Universitatsstr. 100 Postfach 8006 Zurich. Tel. +41 43 3006615 Fax +41 43 300 66 68; e-mail: [email protected] - www.prolitteris.ch

Cinema Section (for non-French repertoires and private copy): Société Suisse pour la Gestion des Droits d'Auteurs d'Oeuvres Audiovisuelles (SUISSIMAGE), Neuengasse, 23, P.O. Box Suissimage CH-3001 Bern. Tel. +41 31 313 36 36 Fax +41 31 313 36 37; e-mail: [email protected] - www.suissimage.ch\


http://www.cedro.org/






http://www.bus.se/


http://www.suisa.ch/


http://www.ssa.ch/



www.siae.it

200

Swaziland

Sez. DOR: South African DALRO

Taiwan

Music Section (rights to perform): Music Copyright Intermediary Society of Chinese Taipei (MÜST), 4F, no. 71 Nanjing East Road, Section 2 Taipei Taiwan 104 R.O.C.. Tel. +886 2 25110869 Fax +886 2 25110759; e-mail: [email protected] - www.must.org.tw

Thailand

Music Section (rights to perform): Music Copyright Ltd. (MCT), 23/17-18 Soi Soonvijai Rama 9th Road Bangkapi Sub-District, Huaykwang District Bankgok 10320. Tel. +66 2 203 10 49 Fax +66 2 2031051; e-mail: [email protected]

Togo

Music Section (rights to perform): Bureau Togolais du Droit d'Auteur (BUTODRA), c/o Ministère de la Communication et de la Culturee 161, rue des Echis B.P. 1405, Lomé. Tel. +9 228 2221839 Fax +9 228 2226900; e-mail: [email protected]


Tonga


Trinidad and Tobago

Music Section (rights to perform): Copyright Organization of Trinidad and Tobago (COTT), 139-141 Abercromby Street Port of Spain. Tel. +1 868 623 6101 Fax +1 868 623 47 55; e-mail: [email protected] - www.cott.org.tt


Tunisia



Turkey

Music Section (rights to perform and rights to mechanical reproduction): MESAM, Siracevizler Cad. Esen Sok. Saruhan Plaza N. 6 Bomonti, Sisli 34381 Istanbul. Tel. + 90 212 296 99 10 Fax +90 212 296 99 24; email: [email protected] - www.mesam.org.tr

Ukraine

Lyrics, DOR, Music (rights to perform): Ukrainian Agency of Copyright and Related Rights (UACRR), 34 B. Khmelnytskyi st., 01030 Kyiv. Tel. +38 44 234 22 38 Fax +38 44 234 22 38; e-mail: [email protected] - www.uacrr.kiev.ua


http://www.must.org.tw/





http://www.mesam.org.tr/



www.siae.it

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Hungary

Music Section (rights to perform and rights to mechanical reproduction), OLAF (literary works): Bureau Hongrois pour la Protection des Droits d'Auteur (ARTISJUS), 1016 Budapest, Mészáros u. 15-17 - 1539 Budapest 114. P.O.B. 593. Tel. +36 1 488 2600 Fax +36 1 212 1544; e-mail: [email protected] - www.artisjus.com

Lyrics, DOR Sections: Agence Théatrale HOFRA (Theatrical and Literary Agency) , H-1053 Budapest, Papnövelde u. 10. I/3A. Tel. +36 1 4620880 Fax +36 1 462 0881; e-mail: [email protected] - http://en.hofra.hu/

OLAF Section (figurative arts): Collecting Society of Hungarian Creative Artists' Association (HUNGART): Falk Miksa u. 30., H-1055 Budapest. Tel. +36 1 3024386 Fax +36 1 3023810; e-mail: [email protected] - www.hungart.org

Cinema Section: FILMJUS – Brody Sandor u. 14 1088 – Budapest. Tel. +36 1 2666588 Fax +36 1 2664543; e-mail [email protected] - www.filmjus.hu

Uruguay

Sez. Lirica, DOR, Musica (diritti di esecuzione e diritti di riproduzione meccanica): Asociación General de Autores del Uruguay (AGADU), Calle Canelones 1122 – C.P. 11100 -Montevideo. Tel. +5982 900 31 88 Fax +5982 901 39 51; e-mail: [email protected] - www.agadu.com

Venezuela

Music Section (rights to perform): Sociedad de Autores y Compositores de Venezuela (SACVEN), Avenida Andrés Bello, Edificio Vam, Torre Oeste, piso 9 y 10 - Caracas 5190-1050 Caracas. Tel. +58 212 5077211 Fax +58 212 5077287; e-mail: [email protected] - www.sacven.org


Vietnam

Sez. Musica (rights to perform): Vietnam Center for Protection of Music Copyright (VCPMC); Floor 7/8, 66 Nguyen Van Huyen Street, Cau Giay District, Hanoi. Tel +84 4 37624718 \ Fax +84 4 37624717; e-mail: [email protected] - www.vcpmc.org

Zimbabwe





http://www.hungart.org/





http://www.vcpmc.org/

Management Report - SIAE · Gramitto Ricci Alfredo ... Galletti Anna Lavezzi Mario Minellono...

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Transcript of Management Report - SIAE · Gramitto Ricci Alfredo ... Galletti Anna Lavezzi Mario Minellono...