SCHEDULE 14A INFORMATION
þ | Preliminary Proxy Statement | |
o | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |
o | Definitive Proxy Statement | |
o | Definitive Additional Materials | |
o | Soliciting Material Under Rule 14a-12 |
þ | No fee required. (See explanatory note below) | |
o | Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. |
1. | Title of each class of securities to which transaction applies: | ||
2. | Aggregate number of securities to which transaction applies: | ||
3. | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): | ||
4. | Proposed maximum aggregate value of transaction: | ||
5. | Total fee paid: |
o | Fee paid previously with preliminary materials. | |
o | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, of the Form or Schedule and the date of its filing. |
1. | Amount Previously Paid: | ||
2. | Form, Schedule or Registration Statement No.: | ||
3. | Filing Party: | ||
4. | Date Filed: |
The information in this proxy statement/prospectus is not complete and may be changed. Prisa may not issue these securities until the registration statement filed with the Securities and Exchange Commission is effective. The proxy statement/prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. |
• | the possibility that Liberty might not be the surviving parent corporation in the business combination was not contemplated by or disclosed in Liberty’s IPO prospectus; |
• | the possibility that Liberty’s warrantholders would be required to approve an amendment to Liberty’s warrants, including an amendment to provide for a fixed payment to warrantholders, as a condition to the consummation of a business combination was not contemplated by or disclosed in Liberty’s IPO prospectus; |
• | the availability of the $10.00 cash alternative was not contemplated by or disclosed in Liberty’s IPO prospectus; and |
• | the waiver of the obligations of the sponsors to consummate a $50 million co-investment was not contemplated by or disclosed in Liberty’s IPO prospectus. |
Liberty Acquisition Holdings Corp.’s Special Meeting of Warrantholders and Special Meeting of
Stockholders on , 2010
www.dfking.com/liberty and www.sec.gov.
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F-1 | ||
Annexes | ||
Annex A | ||
A-66 | ||
Annex B | ||
Annex C | ||
Annex D | ||
Annex E | ||
Annex G | ||
Annex H | ||
Annex I | ||
Annex J | ||
Annex K | ||
Annex L | ||
Annex M | ||
Annex N | ||
Annex O |
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• | in negotiated transactions, or in trading markets for Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares; | |
• | in the trading markets for the Prisa ADS-As and Prisa ADS-NVs representing the Prisa shares; | |
• | in the over-the-counter market or on any national securities exchange on which shares of Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares may be listed or quoted at the time of sale; | |
• | in transactions otherwise than on such exchanges or in the over-the-counter market; | |
• | through a combination of any such methods; or | |
• | through any other method permitted under applicable law. |
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• | ‘‘$,” “US$” and “U.S. dollar” each refer to the United States dollar; and | |
• | ‘‘€,” “EUR” and “euro” each refer to the euro, the single currency established for members of the European Economic and Monetary Union since January 1, 1999. |
• | does not represent funds available for dividends, reinvestment or other discretionary uses; | |
• | does not reflect cash outlays for capital expenditures or contractual commitments; | |
• | does not reflect changes in, or cash requirements for, working capital; | |
• | does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on indebtedness; | |
• | does not reflect income tax expense or the cash necessary to pay income taxes; | |
• | excludes depreciation and amortization and, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future; | |
• | does not reflect cash requirements for such replacements; and | |
• | may be calculated differently by other companies, including other companies in Prisa’s industry, limiting its usefulness as a comparative measure. |
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Q. | Why am I receiving this proxy statement/prospectus? | |
A. | Liberty has entered into the business combination agreement to effect a business combination with Prisa on the terms and subject to the conditions of the business combination agreement, which are described in this proxy statement/prospectus. We encourage you to read the entire business combination agreement carefully. | |
Liberty stockholders are also being asked to approve a change in Liberty’s state of incorporation from Delaware to Virginia by means of a merger of Liberty into Liberty Virginia, a wholly owned Virginia subsidiary. The reincorporation merger is the first step in the business combination, and the approval of the business combination proposal includes approval of the reincorporation merger. However, Liberty is asking its stockholders to vote separately for this step of the business combination in light of guidance previously provided by the Staff of the SEC’s Division of Corporation Finance on unbundling proposals in proxy statements. The form of amended and restated articles of incorporation of Liberty Virginia, which will become the amended and restated articles of incorporation of the surviving corporation upon completion of the reincorporation merger, is included as Annex E to this proxy statement/prospectus and incorporated into this proxy statement/prospectus. |
In order to complete the business combination, (1) at least a majority of the shares of Liberty common stock issued and outstanding as of , 2010, the record date for the special meeting of Liberty stockholders called to consider the business combination proposal, must be voted “FOR” both the reincorporation proposal and the business combination proposal, and (2) holders of less than 30% of the shares of Liberty common stock issued in Liberty’s initial public offering, or IPO, must vote such shares “AGAINST” the business combination proposal and validly elect redemption of their shares. In addition, the warrant amendment proposal must be approved as described elsewhere in this proxy statement/prospectus. |
This document constitutes a prospectus of Prisa with respect to the Prisa shares that it will issue in the proposed business combination. This document also constitutes a proxy statement of Liberty by which |
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Liberty is soliciting proxies for use at the special meetings of its common stockholders and warrantholders discussed in this document. | ||
Q. | What matters will warrantholders act on at the special meeting of warrantholders? | |
A. | At the special meeting of Liberty’s warrantholders, Liberty warrantholders will be asked to approve and consent to a proposal to amend the warrant agreement which governs the terms of all of Liberty’s outstanding warrants (consisting, as of the record date, of 51,750,000 publicly held warrants, 12,000,000 warrants held by Berggruen Acquisition Holdings Ltd. and Marlin Equities II, LLC, referred to as the sponsors’ warrants, and 12,937,500 warrants held by the sponsors and Liberty’s three independent directors, referred to as the founders’ warrants). Under such amendments, in connection with the consummation of the transactions contemplated by the business combination agreement, each of Liberty’s then outstanding warrants would be exchanged for (i) cash in the amount of $0.90 to be paid by or at the direction of Liberty Virginia and (ii) 0.45 newly created Prisa Class A ordinary shares, with cash paid in lieu of any fractional shares. The Prisa Class A ordinary shares will be represented by Prisa ADS-As. | |
The mix of cash and Prisa shares deliverable for each Liberty warrant had a value of approximately $2.26 on August 4, 2010 (based on the closing price of Prisa ordinary shares on the Spanish Continuous Market Exchange (Sistema de Interconexión Bursátil-Mercado Continuo) on August 3, 2010 (€2.29) and a dollar to euro exchange rate on that date of 1.323) and approximately $[ • ] on [ • ], 2010 (based on the closing price of Prisa ordinary shares of €[ • ] and a dollar to euro exchange rate on such date of [ • ]). The actual value in U.S. dollars of the consideration to be received per warrant will depend on the exchange rate and the market price of Prisa ordinary shares on the closing date of the proposed business combination. The aggregate cash consideration deliverable to Liberty’s warrantholders (after giving effect to the sale by the sponsors of all of their warrants to Liberty for nominal consideration pursuant to the sponsor surrender agreement) is approximately $46.7 million, of which $149,040 is attributable to the remaining founders’ warrants. | ||
Liberty’s sponsors have agreed to sell, immediately prior to the closing of the proposed business combination, all of their Liberty warrants and a total of between approximately 3.3 million and 6.4 million of their shares of Liberty common stock to Liberty for nominal consideration. As a result, those warrants (approximately 24.8 million) will not participate in the warrant exchange. However, those warrants will be outstanding on the record date for the special meeting of Liberty warrantholders and the sponsors will be entitled to vote those warrants on the warrant amendment proposal. Liberty’s sponsors have agreed, with respect to all of their warrants, to consent to the warrant amendment proposal. |
The possibility that Liberty’s warrantholders would be required to approve an amendment to Liberty’s warrants, including an amendment to provide for a fixed payment to warrantholders, as a condition to the consummation of a business combination was not contemplated by or disclosed in Liberty’s IPO prospectus. Liberty’s board of directors believes that the requirement that warrantholders approve the warrant agreement amendment as a condition to the consummation of the business combination is not inconsistent with the disclosure contained in Liberty’s IPO prospectus because it does not alter or modify the stockholder approval requirements applicable to a business combination contained in Liberty’s restated certificate of incorporation and is, in Liberty’s view, comparable to other conditions to the consummation of a typical business combination, such as the receipt of third-party consents. In connection with this proxy statement/prospectus, Liberty has obtained an opinion from its special Delaware counsel, which opinion is to be issued prior to the effectiveness of the registration statement of which this proxy statement/prospectus forms a part, to the effect that, while the matter has not been settled as a matter of Delaware law and, accordingly, is not entirely free of doubt, the conditioning of the consummation of the business combination on the approval of Liberty’s warrantholders of the warrant agreement amendment does not require an amendment to Liberty’s restated certificate of incorporation. Notwithstanding Liberty’s board’s belief, however, it is possible that stockholders of Liberty who purchased their shares in Liberty’s IPO and who have not exercised their redemption rights could attempt to bring claims against Liberty on the basis that Liberty’s IPO prospectus did not disclose that Liberty’s business combination might be conditioned upon the approval of Liberty’s warrantholders of an amendment to the warrant agreement, which amendment provides for a cash payment to Liberty’s |
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warrantholders upon consummation of the business combination. Even if you do not pursue such claims, others may do so. Liberty and Prisa cannot predict whether stockholders will bring such claims or whether such claims would be successful. |
The approval of the warrant amendment proposal is a condition to consummate the transactions contemplated by the business combination agreement.However, if the parties do not complete the business combination, they will not enter into the warrant agreement amendment, even if warrantholders have previously approved the amendment. | ||
Q. | What matters will stockholders consider at the special meeting of stockholders? | |
A. | At the Liberty special meeting of stockholders, Liberty will ask its common stockholders to vote in favor of the following proposals: | |
• The Reincorporation Proposal — a proposal to change Liberty’s state of incorporation from Delaware to Virginia by means of the merger of Liberty into Liberty Virginia, a Virginia corporation and wholly owned subsidiary of Liberty, whose articles of incorporation and bylaws will become the articles of incorporation and bylaws of the surviving corporation upon completion of the reincorporation merger (included in this proxy statement/prospectus as Annexes E and G, respectively), pursuant to the agreement and plan of merger included in this proxy statement/prospectus as Annex H. | ||
• The Business Combination Proposal—a proposal to approve a business combination by the approval and adoption of the business combination agreement pursuant to which each outstanding share of Liberty common stock will be exchanged for either, at the option of the stockholder, $10.00 in cash or the following consideration (referred to as the mixed consideration): (i) 1.5 Prisa Class A ordinary shares, (ii) 3.0 Prisa Class B convertible non-voting shares and (iii) $0.50 in cash, as well as cash in lieu of any fractional shares. A holder may make a cash election or a mixed consideration election with respect to any or all of its shares. The Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares will be represented by Prisa ADSs, with each Prisa ADS-A representing 4 Prisa Class A ordinary shares and each Prisa ADS-NV representing 4 Prisa Class B convertible non-voting shares. The vote to approve the business combination proposal will include approval and adoption of (i) the business combination agreement, (ii) the agreement and plan of merger included in this proxy statement/prospectus as Annex H, providing for the reincorporation merger and (iii) the plan of share exchange included as Annex I to this proxy statement/prospectus, providing for the share exchange pursuant to which Liberty Virginia, the surviving corporation in the reincorporation merger, will become a wholly owned subsidiary of Prisa and the shareholders of Liberty Virginia will receive Prisa Class A ordinary shares, Class B convertible non-voting sharesand/or cash in exchange for their shares in Liberty Virginia. |
• The Liquidation Proposal—a proposal to dissolve Liberty in accordance with Delaware law and approve the proposed plan of distribution in, or substantially in, the form of Annex O to this proxy statement/prospectus, which proposal may be abandoned by Liberty’s board of directors, notwithstanding approval of such proposal by Liberty’s stockholders, as described in this proxy statement/prospectus. |
• The Stockholder Adjournment Proposal—a proposal to authorize the adjournment of the special meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies in the event there are insufficient votes at the time of the special meeting to adopt the reincorporation proposal, the business combination proposal and/or the liquidation proposal. |
Liberty’s board of directors may abandon the liquidation proposal, notwithstanding approval of the liquidation proposal by Liberty’s stockholders, without further action by Liberty’s stockholders in accordance with Section 275 of the Delaware General Corporation Law. Liberty’s board of directors intends to abandon the liquidation proposal if the business combination is consummated. |
Liberty’s sponsors have agreed to sell, immediately prior to the closing of the proposed business combination, all of their Liberty warrants and a total of between approximately 3.3 million and 6.4 million of their shares of Liberty common stock to Liberty for nominal consideration. The exact number of shares to be sold by Liberty’s sponsors will be determined based upon the number of shares of Liberty common stock as to which the holders elect to receive the $10.00 per share cash alternative or exercise the redemption rights provided for |
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in Liberty’s restated certificate of incorporation. As a result, those warrants and shares will not participate in the warrant exchange or the share exchange. The shares to be sold to Liberty by Liberty’s sponsors will be outstanding on the record date for the special meeting of stockholders and the sponsors will be entitled to vote those shares on the reincorporation merger, the business combination proposal, the liquidation proposal and the stockholder adjournment proposal. Liberty’s sponsors have agreed with Liberty and the underwriters of Liberty’s IPO to vote all of their shares (including the shares to be sold to Liberty) of Liberty common stock acquired prior to the IPO in accordance with the vote of the majority of the shares of common stock issued in Liberty’s IPO voted at the stockholders meeting on the business combination proposal. All of the founders have also agreed with Liberty and the underwriters of Liberty’s IPO to vote all of their shares of Liberty common stock in favor of the liquidation proposal. |
Q. | Why is Liberty selling shares of preferred stock prior to the consummation of the business combination? | |
A: | In connection with the business combination, Liberty has separately negotiated and entered into preferred stock purchase agreements with its sponsors and certain third party investors, pursuant to which the sponsors and investors agreed to purchase shares of specified newly created series of Liberty non-voting preferred stock, for an aggregate purchase price of $500 million. The purpose of these sales is to provide additional funds that may be used to make the required payments to those Liberty stockholders who elect to receive the $10.00 per share cash alternative in the business combination. All shares of preferred stock to be issued by Liberty under the preferred stock purchase agreements will be exchanged in the business combination for a combination of cash and/or Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares. The relative amounts of cash and Prisa shares to be received by the preferred stockholders in the business combination will vary depending upon the total number of shares of Liberty common stock as to which the holder elects the $10.00 per share cash alternative or validly exercises their redemption rights, as described in this proxy statement/prospectus. Liberty and Prisa expect that the availability of the cash alternative will significantly reduce, or eliminate, the number of Liberty common stockholders who elect to exercise their redemption rights and vote against the transaction, thus increasing the likelihood that the business combination will be approved. The sale of the preferred stock allows Liberty and Prisa to make the cash alternative available to Liberty stockholders in the business combination for up to $800 million of cash consideration without any material increase in the number of Prisa shares issuable in connection with the business combination. |
The availability of the cash alternative was not contemplated by or disclosed in Liberty’s IPO prospectus. Liberty’s board of directors believes that neither the availability of the cash alternative nor any resulting reduction or elimination of the number of Liberty common stockholders who elect to exercise their redemption rights and vote against the transaction is inconsistent with the disclosure contained in the prospectus from Liberty’s IPO because it does not eliminate or otherwise affect the redemption rights available to Liberty’s common stockholders, as described in this proxy statement/prospectus. Liberty’s board believes that the cash alternative is beneficial to Liberty’s public stockholders, in that it makes it possible for more Liberty stockholders to receive cash in lieu of participating in the business combination than the 30% maximum that would be applicable absent the cash alternative (and allows these stockholders to receive a greater amount of cash than they would be entitled to receive if they exercised redemption rights), while also increasing the likelihood that the business combination will be approved, thereby benefiting those Liberty stockholder who are in favor of the business combination. Notwithstanding Liberty’s board’s belief, however, it is possible that stockholders of Liberty who purchased their shares in Liberty’s IPO and who have not exercised their redemption rights could attempt to bring claims against Liberty on the basis that Liberty’s IPO prospectus did not disclose that Liberty might seek to reduce the likelihood that Liberty stockholders would exercise their redemption rights. Even if you do not pursue such claims, others may do so. Liberty and Prisa cannot predict whether stockholders will bring such claims or whether such claims would be successful. |
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Q: | How do I make either an election for the $10.00 per share cash alternative or a mixed consideration election? | |
A: | A form of election for use by holders of Liberty common stock as of the record date for the Liberty stockholder meeting is included with this proxy statement/prospectus. You should carefully review and follow the instructions in the form of election. To make either an election to receive the $10.00 per share cash alternative or a mixed consideration election, Liberty common stockholders must properly complete, sign and send the form of election and the stock certificates representing the shares of Liberty common stock to which the form of election relates, properly endorsed for transfer, or effect a book-entry delivery of shares as described on the form of election to Citibank, N.A., the exchange agent, at one of the following addresses: |
By Regular Mail: | By Overnight Courier: | |
Citibank, N.A. Corporate Actions P.O. Box 43011 Providence, RI02940-3011 | Citibank, N.A. Corporate Actions 250 Royall Street Attn.: Suite V Canton, MA 02021 |
The exchange agent must actually receive the form of election and the stock certificates representing the shares of Liberty common stock to which the form of election relates or a book-entry delivery of shares as described in the form of election by the election deadline.The election deadline is [ • ], New York City time, on [ • ], 2010, the date and time which is immediately prior to the Liberty stockholder meeting. | ||
If you own shares of Liberty common stock in “street name” through a bank, broker or other financial institution and you wish to submit a form of election, you should seek instructions from the financial institution holding your shares concerning how to make your election. | ||
Q: | What happens if I do not submit a form of election with respect to any or all of the shares of Liberty common stock that I hold, or if my form of election is deemed to be invalid? | |
A: | If the exchange agent does not receive a properly completed form of election from you before the election deadline, together with the stock certificates you wish to exchange, properly endorsed for transfer, or a book-entry delivery of shares as described in the form of election, then your shares of Liberty common stock will be deemed to be “non-electing shares” and these shares will be exchanged for the right to receive the mixed consideration in the share exchange.You bear the risk of delivery and should send any form of election by courier to the appropriate address shown in the form of election.Neither Prisa nor the exchange agent has any obligation to notify holders of Liberty common stock of any defect in a form of election submitted to the exchange agent. | |
Q: | Do I have to make the same election with respect to all of the shares of Liberty common stock I hold? | |
A: | No. You may make an election for the $10.00 per share cash alternative or a mixed consideration election with respect to any or all of the shares of Liberty common stock that you hold. | |
Q: | Can I change my election after the form of election has been submitted? | |
A: | Yes. You may revoke any election for the $10.00 per share cash alternative or any mixed consideration election made with respect to any or all of the shares of Liberty common stock that you hold by submitting a written notice to the exchange agent, which notice must be received by the exchange agent no later than the election deadline. After you have made a valid election for the $10.00 per share cash alternative or a valid mixed consideration election with respect to your shares, no further registration of transfers of those shares will be made on the stock transfer books of Liberty unless and until you properly revoke your election. |
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Q. | What percentage of Prisa will Liberty’s security holders own as a result of the business combination? | |
A. | Ownership of Fully Diluted Prisa Equity: Prisa and Liberty estimate that Prisa will issue up to approximately 225 million Prisa Class A ordinary shares and up to approximately 403 million Prisa Class B convertible non-voting shares in the business combination. Prisa and Liberty anticipate that the Prisa ADSs to be issued to Liberty’s stockholders and warrantholders will represent between 51.6% and 57.7% of the outstanding capital stock of Prisa on a fully diluted basis assuming conversion of all Class B convertible non-voting shares into Class A ordinary shares (depending upon the number of shares of Liberty common stock validly redeemed in connection with the business combination or electing the $10.00 per share cash alternative and assuming that the expected Prisa warrant issuance occurs as described in this proxy statement/prospectus and all warrants are exercised). The Prisa Class B convertible non-voting shares are convertible into Class A ordinary shares at the option of the holder at any time after issuance. | |
Ownership of Outstanding Prisa Class A ordinary shares: At the closing of the business combination, Liberty’s former stockholders and warrantholders would own between approximately 45.0% and 50.6% of the outstanding Class A ordinary shares of Prisa, without giving effect to the potential conversion of the Class B convertible non-voting shares of Prisa (depending upon the number of shares of Liberty common stock validly redeemed in connection with the business combination or electing the $10.00 per share cash alternative). The expected Prisa warrant issuance would not occur prior to the closing of business combination, therefore the above percentages do not take into account the potential dilutive effect of the Prisa warrants. | ||
Minimum Ownership of Prisa Voting Securities: Since the Prisa Class B convertible non-voting shares do not have voting rights, former Liberty stockholders will hold a minimum of approximately 24.5% of the total voting power held by all Prisa shareholders immediately following the consummation of the business combination considering all variables that could reduce their percentage of total voting power. The circumstances under which this minimum percentage would occur are if (i) the cash amount required to cover redeemed shares and those electing the $10.00 per share cash alternative in the business combination is at least $525 million, (ii) no Prisa Class B convertible non-voting shares have been converted into Prisa Class A ordinary shares, and (iii) all Prisa shareholders exercise all warrants received in the Prisa warrant issuance. Approximately 14.4 percentage points of the foregoing percentage represents Prisa Class A ordinary shares that would be issued in the business combination in exchange for shares of Liberty preferred stock, with the balance being shares issued in exchange for shares of Liberty common stock held by Liberty’s stockholders. | ||
Prisa Shares Issued in Exchange for Liberty Preferred Stock: The Prisa shares issued in exchange for shares of Liberty preferred stock would represent between approximately 1.8% (in the case of no redemptions or cash elections, no conversion of the Prisa Class B convertible non-voting shares issued in exchange for Liberty preferred stock and full exercise of all warrants received by Prisa shareholders in the Prisa warrant issuance) and 47.4% (in the case of maximum redemptions and cash elections, conversion of all Prisa Class B convertible non-voting shares issued in exchange for Liberty preferred stock and no exercise of any warrants received by Prisa shareholders in the Prisa warrant issuance) of the total voting power held by all Prisa shareholders. On a fully diluted basis assuming conversion of all Prisa Class B convertiblenon-voting shares into Prisa Class A ordinary shares and exercise of all Prisa warrants, purchasers of shares of Liberty preferred stock would receive in exchange for those shares between approximately 3.4% and 29.0% of the total equity held by all Prisa shareholders following the consummation of the business combination. |
Article Fifth of Liberty’s restated certificate of incorporation provides that a “Business Combination” means the “acquisition” by Liberty of one or more operating businesses through a “merger, stock exchange, asset acquisition, reorganization or similar business combination.” Liberty’s IPO prospectus stated that Liberty was formed to acquire a then currently unidentified operating business through a merger, stock exchange, asset acquisition, reorganization or similar business combination, that Liberty would not become a holding company for a minority interest in a target business, and that if Liberty were |
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to acquire less than 100% of a target business Liberty would only do so if it acquired greater than 50% of the outstanding equity interests or voting power of one or more target businesses. The business combination with Prisa is structured such that Liberty will not be the surviving parent corporation in the business combination, and former Liberty security holders may hold less than 50% of the total voting power of Prisa immediately following the business combination (and Liberty itself will not acquire any Prisa securities). Liberty’s board of directors believes that the transactions contemplated by the business combination agreement satisfy the definition of a “Business Combination” contained in Liberty’s restated certificate of incorporation and as described in Liberty’s IPO prospectus because (i) the definition, by its terms, does not require that Liberty be the surviving or resulting entity in a “Business Combination,” (ii) “acquisitions” are frequently structured in a way that the “acquiring” entity is not technically the surviving entity, often for tax or regulatory reasons and (iii) former Liberty security holders will own at least 50% of the total equity securities of Prisa outstanding immediately following the consummation of the business combination. Liberty’s board has always believed, based on advice from its counsel, that it had broad discretion in the types of business combinations that could be presented to its stockholders. As described in this proxy statement/prospectus, Liberty and Prisa believe that the Virginia share exchange was the most beneficial structure that was available to effect the business combination. In connection with this proxy statement/prospectus, Liberty has confirmed its belief that the contemplated transactions constitute a valid business combination by obtaining an opinion from its special Delaware counsel, which opinion is to be issued prior to the effectiveness of the registration statement of which this proxy statement/prospectus forms a part, that while the matter has not been settled as a matter of Delaware law and, accordingly, is not entirely free of doubt, the proposed business combination with Prisa satisfies the definition of a “Business Combination” contained in Article Fifth of Liberty’s restated certificate of incorporation. Notwithstanding Liberty’s board’s belief, however, it is possible that stockholders of Liberty who purchased their shares in Liberty’s IPO and who have not exercised their redemption rights could attempt to bring claims against Liberty on the basis that the structure of the proposed business combination was not contemplated by or disclosed in Liberty’s IPO prospectus. Even if you do not pursue such claims, others may do so. Liberty and Prisa cannot predict whether stockholders will bring such claims or whether such claims would be successful. |
Q. | What is the value of the mixed consideration I will receive if the business combination is completed? | |
A. | The 1.5 Prisa Class A ordinary shares and cash deliverable as part of the mixed consideration for each share of Liberty common stock had a value of approximately $5.04 on August 4, 2010 (based on the closing price of Prisa ordinary shares on the Spanish Continuous Market Exchange on August 3, 2010 (€2.29) and a dollar to euro exchange rate on that date of 1.323) and approximately $[ • ] on [ • ], 2010 (based on the closing price of Prisa ordinary shares of €[ • ] and the dollar to euro exchange rate on such date of [ • ]). The mixed consideration also includes 3.0 Prisa Class B convertible non-voting shares for each share of Liberty common stock; however, there is currently no public trading market for Prisa Class B convertible non-voting shares. The actual value in U.S. dollars of the mixed consideration to be received per share of Liberty common stock for holders receiving the mixed consideration will depend on the exchange rate, and the market price of Prisa ordinary shares and market value of the Prisa Class B convertible non-voting shares on the closing date of the proposed business combination. | |
Q. | Are any of the proposals conditioned on one another? | |
A. | Yes. Unless the warrant amendment proposal is approved, none of the stockholder proposals (other than the liquidation proposal) will be presented to the stockholders of Liberty. However, if Liberty’s stockholders do not approve the business combination proposal or if the parties do not complete the business combination, the parties will not enter into the warrant agreement amendment, even if warrantholders have previously approved the amendment. In addition, unless the reincorporation proposal is approved at the special meeting of stockholders, the business combination proposal will not be presented to the stockholders of Liberty. |
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Q. | Why is Liberty proposing the warrant amendment proposal? | |
A. | The approval of the warrant amendment proposal is a condition to consummate the transactions contemplated by the business combination agreement. Prisa and Liberty agreed to effect the warrant exchange in connection with the consummation of the business combination in order to reduce the dilutive effect of the presently issued and outstanding warrants to purchase shares of Liberty’s common stock, as these warrants would otherwise represent the right to purchase Prisa shares following the business combination. | |
Q. | What will happen upon the consummation of the business combination? | |
A. | Upon the consummation of the business combination, Liberty will merge with and into Liberty Virginia, with Liberty Virginia surviving the merger and the stockholders and warrantholders of Liberty becoming stockholders and warrantholders of Liberty Virginia. Immediately following this reincorporation merger, Liberty Virginia will effect a statutory share exchange with Prisa under the Virginia Stock Corporation Act and the Spanish Companies Law of 2010 which, as of September 1, 2010, replaced the Spanish Corporation Law of 1989 (Texto Refundido de la Ley de Sociedades Anónimas aprobado por el Real Decreto Legislativo 1564/1989), as amended (as applicable, referred to as the Spanish Companies Law), as a result of which: | |
• Liberty Virginia will become a wholly owned subsidiary of Prisa; | ||
• each then outstanding share of Liberty Virginia common stock and Liberty Virginia preferred stock, which will not include shares of common stock as to which the holder has validly exercised its redemption rights, will be exchanged for cash and/or Prisa shares, to be represented by Prisa ADSs, as described above; and | ||
• each of Liberty Virginia’s then outstanding warrants will be exchanged in connection with the consummation of the business combination for a combination of cash and Prisa shares to be represented by Prisa ADSs, as described above. | ||
If Liberty Virginia and Prisa complete the business combination but you have voted your shares against the business combination proposal and have validly exercised your right to cause Liberty to redeem your shares of Liberty common stock, you will receive an equal number of shares of Liberty Virginia common stock pursuant to the reincorporation merger, which will be redeemed by Liberty Virginia for cash equal to apro rataportion of Liberty’s trust account which, as of June 30, 2010, without taking into account any interest accrued after that date, was equal to approximately $9.87 per Liberty share. | ||
If Liberty Virginia and Prisa complete the business combination, all of your warrants will be automatically exchanged in the warrant exchange for the combination of cash and Prisa ADSs, as described above, even if you did not give your consent to the warrant amendment proposal, and you will no longer hold any warrants. |
If the business combination is consummated, Liberty’s board of directors intends to abandon the liquidation proposal. |
Q. | What are the terms of the Prisa Class B convertible non-voting shares? | |
A. | The Prisa Class B convertible non-voting shares will have no right to vote on matters submitted to shareholders generally. The Prisa Class B convertible non-voting shares will have a nominal value of €0.10 and a stated value that will be established at the time of consummation of the business combination. The stated value per Prisa Class B convertiblenon-voting share will be calculated as the market value of Liberty at that time (based on the average closing prices of Liberty’s common stock and warrants during the last fullthree-month period ending prior to the closing date) divided by the aggregate number of Prisa Class A ordinary shares and Prisa Class B convertiblenon-voting shares issued to Liberty stockholders and warrantholders in the business combination. The stated value is used, among other things, for purposes of calculating the premium reserve created upon issuance of the Prisa Class B convertible non-voting shares (as described below) and for liquidation preference purposes, and is not intended to be indicative of the market value of the Prisa Class B convertible non-voting shares. |
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Each Prisa Class B convertible non-voting share will receive a minimum annual dividend, so long as there is no legal restriction against such payment, in an amount equal to €0.175, except in respect of fiscal year 2010, for which period the amount of the minimum dividend payable in respect of each Prisa Class B convertible non-voting share will be calculated by multiplying €0.175 by the fraction of the fiscal year during which the Prisa Class B convertible non-voting shares will have been outstanding (the number of days from issuance through and including December 31, 2010, divided by 365). Prisa may pay the minimum annual dividend from two sources: distributable profits, as defined by Section 273 of the Spanish Companies Law of 2010, and from the premium reserve created in connection with the issuance of the Prisa Class B convertible non-voting shares. Assuming the maximum number of Prisa Class B convertible non-voting shares are issued in the business combination (approximately 403 million shares), an aggregate annual minimum dividend of €70.5 million would have been payable on the Prisa Class B convertible non-voting shares for each of 2007, 2008 and 2009. For 2008, Prisa would have been obligated to pay €37.2 million of this amount from available distributable profits and the remaining €33.3 million out of a charge against the premium reserve that would have been created at the time of issuance; for 2009, since Prisa did not have distributable profits for the year, Prisa would have been obligated to pay the entire €70.5 million out of a charge against the premium reserve. | ||
The premium reserve will be non-distributable for so long as any Prisa Class B convertible non-voting shares remain outstanding, other than for the payment of the minimum dividend on the Prisa Class B convertible non-voting shares in the event that there are insufficient distributable profits to pay the full amount of such dividend. The premium reserve may also be distributed in connection with conversion of the Prisa Class B convertible non-voting shares, as described below. If, in a given financial year, Prisa earns sufficient distributable profits to cover the full amount of the minimum dividend due to the holders of Prisa Class B convertible non-voting shares, then Prisa must submit this payment out of distributable profits to shareholders for approval. If distributable profits in a given financial year are insufficient to cover the full amount of the minimum dividend due to the holders of the Prisa Class B convertible non-voting shares, then any shortfall would be payable from the premium reserve in respect of the Prisa Class B convertible non-voting shares. If the minimum dividend in respect of a given financial year exceeds the sum of distributable profits in that year and the then-existing balance of the premium reserve in respect of the Prisa Class B convertible non-voting shares, then Prisa would be obligated to pay only a partial dividend for such year, up to the amount of such distributable profits plus the then-existing balance of the premium reserve in respect of the Prisa Class B convertible non-voting shares, pro rata in respect of the Prisa Class B convertible non-voting shares. Any remaining shortfall would be added to the annual minimum dividend payable in respect of the Prisa Class B convertible non-voting shares in the following year. | ||
In the event of conversion, the holder of Prisa Class B convertible non-voting shares will be entitled to receive in cash, on or before the date the Prisa Class A ordinary shares are delivered in exchange for the converted Prisa Class B convertible non-voting shares, any minimum dividend not paid before such date (including (i) the proportionate minimum dividend corresponding to the number of days elapsed from the beginning of the year in which the conversion takes place and the non declared nor paid minimum dividend corresponding to the previous year, to the extent there are distributable profits for the previous or current year or premium reserve and (ii) any accumulated dividend not paid from previous years, to the extent there are distributable profits for the previous or current year). | ||
Any portion of the minimum annual dividend for a given year that Prisa does not become obligated to pay due to a lack of sufficient distributable profits for that year or lack of available premium reserve will accumulate until it becomes payable out of distributable profits for a subsequent year(s). Any remaining accumulated dividends at the time of conversion (whether voluntary or automatic) will be paid on or before the date on which Prisa Class A ordinary shares are delivered in exchange for the converted Prisa Class B convertible non-voting shares to the extent there are distributable profits for the year of conversion or the previous year (if the minimum dividend for such year has not been declared) that are permitted by applicable law to be paid out. At that time, Prisa will determine and pay both the amount of the annual dividend payable for the portion of the year of conversion during which the shares subject to conversion remained outstanding and the amount of dividend that remained accrued at the time of conversion. Any |
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such dividends (whether for the portion of the year of, or accrued at the time of conversion) that do not become payable at that time due to the lack of sufficient distributable profits for that year or lack of available premium reserve will not thereafter become payable or be paid. | ||
Assuming distributable profits or Class B share premium reserves are available, the minimum dividend would be paid as soon as possible following the ordinary shareholders’ meeting at which the shareholders approve Prisa’s annual accounts, and in no event later than September 30 of each year. Prisa Class B convertible non-voting shares will also participate in any dividend paid in respect of the Prisa Class A ordinary shares, provided, however, that no such dividend shall be paid until the minimum dividend due to the Prisa Class B convertible non-voting shares has been paid in full, including any unpaid amounts accumulated from prior years. All minimum dividends in respect of the Prisa Class B convertible non-voting shares will be paid in cash. | ||
Holders of Prisa Class B convertible non-voting shares may at any time give Prisa notice of their election to convert the shares into one Prisa Class A ordinary share for each Prisa Class B convertible non-voting share. Prisa’s board (or a duly authorized committee) will, within five business days following the end of each month, issue Prisa Class A ordinary shares in respect of the Prisa Class B convertible non-voting shares whose holders have elected conversion during that prior month. Prisa will register with the Mercantile Register all Prisa Class A ordinary shares issued upon conversion as soon as practicably possible before the end of the month in which the Prisa Class A ordinary shares are issued. | ||
Any Prisa Class B convertible non-voting share still outstanding on the date that is 42 months after its issue date will automatically convert into one Prisa Class A ordinary share, without any action by the holder. In the event of automatic conversion, if the volume-weighted average price of Prisa Class A ordinary shares on the Spanish Continuous Market Exchange (Sistema de Interconexión Bursátil-Mercado Continuo) during the 20 consecutive trading days immediately preceding the conversion date, or thetwenty-day trailing average, is below €2.00, then the conversion rate will be modified. In this event, the number of Prisa Class A ordinary shares into which each Prisa Class B convertible non-voting share will convert will be equal to a fraction (expressed as a decimal), the numerator of which will be €2.00 and the denominator of which will be thetwenty-day trailing average, subject to a maximum conversion rate of 1.33 Prisa Class A ordinary shares per Prisa Class B convertible non-voting share. If thetwenty-day trailing average is less than €2.00, Prisa may also choose to retain the 1:1 conversion ratio, in which case Prisa would pay a per share amount of cash equal to the difference between €2.00 and thetwenty-day trailing average, subject to a maximum of €0.50 per Prisa Class B convertible non-voting share. The balance of the premium reserve in respect of the Prisa Class B convertible non-voting shares, if any, will be made available to pay the nominal value of the Prisa Class A ordinary shares to be issued in excess of the Prisa Class B convertible non-voting shares to be converted. | ||
Prisa will not effect any reorganization, recapitalization, reclassification, stock split, reverse stock split or other similar changes in capitalization relating to the Prisa Class A ordinary shares unless an appropriate adjustment to the conversion rate is provided for. | ||
In a liquidation of Prisa, the Prisa Class B convertible non-voting shares would be entitled to receive, on a preferential basis according to applicable law, their stated value per share, before any distribution is made to the holders of Prisa Class A ordinary shares. In the event that Prisa has, immediately prior to any liquidation, distributable profits or share premium reserves in respect of the Prisa Class B convertible non-voting shares, the holders of the Prisa Class B convertible non-voting shares would receive any unpaid minimum dividend, including any accumulated unpaid dividends from prior years, in respect of the prior and then current fiscal year. | ||
The Prisa Class B convertible non-voting shares will be represented by Prisa ADS-NVs, with each Prisa ADS-NV representing 4 Prisa Class B convertible non-voting shares. The amended and restated bylaws of Prisa to be in effect when Prisa and Liberty complete the business combination, the Prisa Shareholder resolution establishing the class and the Spanish Companies Law will govern the rights of the Prisa Class B convertible non-voting shares of Prisa. A copy of an English translation of the proposed amended bylaws of Prisa is included in this proxy statement/prospectus as Annex J. |
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Q. | Why is Liberty proposing the business combination? | |
A. | Liberty is a blank check company formed specifically as a vehicle for the acquisition of, or merger with, a business whose fair market value is equal to at least 80% of the assets of Liberty’s trust account in which a substantial portion of the proceeds of the IPO have been deposited (excluding deferred underwriting discounts and commissions) plus the proceeds of the co-investment required of Liberty’s sponsors in connection with a business combination, which Liberty has waived in connection with, and subject to completion of, the proposed business combination with Prisa. Liberty has been in search of a business combination partner since completing its IPO in December 2007. Liberty’s board of directors believes that Prisa presents a unique opportunity for Liberty because Prisa is an established company with leading market positions in several businesses and geographic markets, including audiovisual, publishing, newspapers and magazines and radio, a portfolio of premium brands, diversified revenue streams and robust growth potential in its existing markets and geographic markets in Latin America, the United States and other dynamical global markets, among other factors. As a result, Liberty’s board of directors believes that the business combination with Prisa will provide Liberty stockholders and warrantholders with an opportunity to acquire Prisa shares at an attractive valuation and to participate in a well-established company with significant growth potential. | |
Q. | Why is Liberty proposing the reincorporation proposal? | |
A. | Liberty is proposing the reincorporation proposal to approve the reincorporation of Liberty from Delaware to Virginia, by means of the merger of Liberty into Liberty Virginia. The reincorporation merger is the first step of the business combination and must be completed in order to effect the second step share exchange, insofar as the Delaware General Corporation Law does not contain a share exchange provision comparable to that contained in the Virginia Stock Corporation Act. | |
Q. | Why is Liberty proposing the liquidation proposal? |
A. | Liberty’s IPO prospectus contemplates that, if within 90 days prior to December 12, 2010, Liberty seeks approval from its stockholders to consummate a business combination, the proxy statement related to such business combination will also seek stockholder approval for Liberty’s dissolution and its board’s recommended plan of distribution in the event Liberty’s stockholders do not approve such business combination or if such business combination is not consummated for other reasons. Therefore, if either (or both) the reincorporation proposal or the business combination proposal is not approved or Liberty does not otherwise consummate the business combination, Liberty will not be able to consummate a business combination on or before December 12, 2010 and is therefore seeking stockholder approval of Liberty’s dissolution and a plan of distribution, as is required by Liberty’s restated certificate of incorporation. Accordingly, Liberty will present the liquidation proposal for a vote at the special meeting to seek stockholder approval of its dissolution and the proposed plan of distribution in, or substantially in, the form of Annex O to this proxy statement/prospectus. Liberty’s board of directors unanimously recommends that you vote “FOR” the liquidation proposal. Liberty’s board of directors may abandon the liquidation proposal, notwithstanding approval of the liquidation proposal by Liberty’s stockholders, without further action by Liberty’s stockholders in accordance with Section 275 of the Delaware General Corporation Law. Liberty’s board of directors intends to abandon the liquidation proposal if the business combination is consummated. |
It is important for you to note that in the event the liquidation proposal does not receive the necessary vote of Liberty’s stockholders to approve such proposal, Liberty will not be authorized to distribute the funds held in Liberty’s trust account to holders. Consequently, holders of a majority of Liberty’s outstanding common stock must approve Liberty’s dissolution in order to receive the funds held in its trust account. In the event Liberty does not obtain such approval, it will nonetheless continue to pursue stockholder approval for Liberty’s dissolution and a plan of distribution. |
In addition to the amounts held in Liberty’s trust account, as of June 30, 2010 there was approximately $7.3 million in current assets, subject to outstanding current liabilities of approximately $5.9 million as of that date. Liberty’s net assets would be available to be distributed on a pro rata basis to its holders of common stock if the liquidation proposal is approved. Liberty expects, however, that after giving effect to |
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additional expenses accrued and to be accrued through the liquidation date, no additional amounts would be available for distribution to its common stockholders in liquidation. If the business combination is not completed and the liquidation proposal is approved by Liberty’s stockholders, Liberty expects that Liberty stockholders will receive approximately $9.87 per share upon liquidation of Liberty. | ||
Q. | What vote is required to approve the warrant amendment proposal to be presented at the special meeting of warrantholders? | |
A. | Approval of the warrant amendment proposal requires the written consent of the registered holders of at least a majority of Liberty’s warrants issued and outstanding as of the record date. As of the record date, Liberty’s sponsors beneficially owned an aggregate of approximately 32.3% of the outstanding warrants of Liberty. Under a sponsor support agreement entered into among Liberty’s sponsors and Prisa in connection with the execution of the business combination agreement, Liberty’s sponsors have agreed, with respect all of their warrants, to consent to the warrant amendment proposal. | |
Under the sponsor surrender agreement, Liberty’s sponsors have agreed to sell, immediately prior to the closing of the proposed business combination, all of their Liberty warrants and a total of between approximately 3.3 million and 6.4 million of their shares of Liberty common stock to Liberty for nominal consideration. As a result, those warrants (approximately 24.8 million) will not participate in the warrant exchange. However, those warrants will be outstanding on the record date for the special meeting of Liberty warrantholders and the sponsors will be entitled to vote those warrants on the warrant amendment proposal. | ||
Abstentions and broker non-votes will have the same effect as a vote “AGAINST” the warrant amendment proposal. | ||
Q. | If the warrant amendment proposal is approved, but I don’t vote “FOR” it, will the proposed amendments be binding on me and will my warrants be subject to the warrant exchange? | |
A. | Yes. If the warrant amendment proposal is approved, assuming the business combination is consummated, the proposed amendments to the warrant agreement will be binding on all warrantholders, and all of your warrants will be automatically exchanged in the warrant exchange, whether or not you voted “FOR” the warrant amendment proposal. | |
Q. | What vote is required to approve the proposals to be presented at the special meeting of stockholders? | |
A. | The approval and adoption of each of the reincorporation proposal, the business combination proposal and the liquidation proposal requires the affirmative vote of at least a majority of the shares of Liberty common stock outstanding as of the record date. In addition, each Liberty stockholder who holds shares of common stock issued in Liberty’s IPO (including all publicly-traded shares, whether such shares were acquired in the IPO or afterwards) and votes all of its shares “AGAINST” the business combination proposal has the right to elect that Liberty redeem such stockholder’s shares, which shares as to which a valid election is made are referred to as the redemption election shares, for cash equal to apro rataportion of the trust account, including interest, in which a substantial portion of the proceeds of Liberty’s IPO have been deposited. The business combination will not be completed if the holders of 31,050,000 or more shares of common stock issued in Liberty’s IPO, an amount equal to 30% or more of such shares, vote their shares against the business combination proposal and validly exercise their redemption rights, regardless of whether at least a majority of the outstanding shares of Liberty common stock vote in favor of the business combination proposal. | |
The approval of the stockholder adjournment proposal requires the affirmative vote of at least a majority of the shares of Liberty common stock represented in person or by proxy and entitled to vote on the proposal at the special meeting of stockholders. | ||
Abstentions will have the same effect as a vote “AGAINST” the reincorporation proposal, the business combination proposal, the liquidation proposal and the stockholder adjournment proposal. A broker non-vote will have the effect of a vote “AGAINST” the reincorporation proposal, the business combination |
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proposal and the liquidation proposal. Broker non-votes, while considered present for the purposes of establishing a quorum, will have no effect on the stockholder adjournment proposal. | ||
Q. | What are the interests of Liberty’s directors and executive officer in the business combination? | |
A. | When you consider the recommendation of Liberty’s board of directors to vote in favor of the approval of the reincorporation proposal, the business combination proposal and the warrant amendment proposal, you should keep in mind that Liberty’s directors and executive officer have interests in the business combination that are different from, or in addition to, your interests as a stockholder and/or warrantholder. These interests include: | |
• Liberty’s restated certificate of incorporation provides that in the event a letter of intent, an agreement in principle or a definitive agreement to consummate a business combination has been executed but no business combination is consummated by December 12, 2010, Liberty is required to begin the dissolution process provided for in Liberty’s restated certificate of incorporation. In the event of a dissolution, |
• the 25,875,000 shares included as part of the founders’ units that Liberty’s founders purchased prior to Liberty’s IPO for an aggregate purchase price of approximately $25,000 would become worthless, as the Liberty founders have waived any right to receive liquidation distributions with respect to their shares. Such shares had an aggregate market value of approximately $[ • ] million, based upon the closing price of $[ • ] on the NYSE Amex on , 2010, the record date for the special meeting of stockholders. |
• all of (i) the 12,000,000 sponsors’ warrants purchased by Liberty’s sponsors at a price of $1.00 per warrant for an aggregate purchase price of $12,000,000 and (ii) the 12,937,500 founders’ warrants included as part of the founders’ units that Liberty’s founders (which includes the sponsors) purchased prior to Liberty’s IPO would expire and become worthless. Such warrants had an aggregate market value of approximately $[ • ] million, based upon the closing price of the Liberty warrants of $[ • ] on the NYSE Amex on , 2010, the record date for the special meeting of warrantholders. |
• Prisa expects that Mr. Martin Franklin and Mr. Nicolas Berggruen will join Prisa’s board of directors in connection with the business combination. | ||
• Mr. Nicolas Berggruen and Mr. Martin Franklin, each of whom controls one of Liberty’s sponsors and is a member of Liberty’s board of directors, have agreed that, if Liberty dissolves prior to the consummation of a business combination, they will personally jointly and severally indemnify Liberty for any and all loss, liability, claim, damage and expense which it may become subject to as a result of a claim by any vendor, prospective target business or other entity that is owed money by Liberty for services rendered or products sold to the extent necessary to ensure that such loss, liability, claim, damage or expense does not reduce the amount of funds held in Liberty’s trust account. Based on Liberty’s estimated debts and obligations, Liberty does not currently expect that Messrs. Berggruen and Franklin will have any exposure under this arrangement in the event of a dissolution. | ||
• Mr. Nicolas Berggruen and Mr. Martin Franklin have agreed that they will personally, jointly and severally indemnify Prisa for any and all loss, liability, obligation, damage, cost, expense, fine or penalty, interest, tax, assessment, judgment or deficiency of any nature whatsoever (which we refer to collectively as damages) which Prisa may become subject to as a result of or in connection with the business combination regardless of whether the damages arise at, before or after the closing and are based on circumstances existing on or before the closing related to any liabilities of Liberty, excluding claims arising from, as a result of or in connection with Liberty entering into the business combination. Messrs. Berggruen’s and Franklin’s indemnification obligations are subject to certain thresholds for individual claims, a deductible and a limit on their total liability, and they are limited to claims for indemnification made by Prisa prior to March 5, 2015. | ||
• Each of the sponsors has agreed to purchase $25 million of shares of Series A preferred stock of Liberty, as part of the sales of preferred stock to be effected by Liberty to provide funds that may be used to make the required payments to those Liberty stockholders who elect to receive the $10.00 per |
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share cash alternative in the business combination. If the business combination is consummated, the sponsors will receive a combination of cash and Prisa shares on account of their shares of Liberty Series A preferred stock, depending upon the total number of holders of Liberty common stock who elect the $10.00 per share cash alternative or validly exercise their redemption rights. If the business combination is not consummated, Liberty will be required to redeem the shares of Liberty Series A preferred stock purchased by the sponsors for the amount of the original purchase price. | ||
Q. | How will Liberty’s founders vote? | |
A. | Liberty’s founders purchased shares of Liberty common stock prior to Liberty’s IPO, and beneficially own an aggregate of 20% of the outstanding shares of Liberty common stock as of the date of this proxy statement/prospectus. Each of the founders has agreed with Liberty and the underwriters of Liberty’s IPO (i) to vote all of these shares which were acquired prior to the IPO in accordance with the vote of the majority in interest of all other Liberty stockholders voted at the stockholders meeting on the business combination proposal and (ii) that if he or it acquires shares of Liberty common stock in or following Liberty’s IPO, he or it will vote all such acquired shares in favor of the business combination proposal. In addition, Liberty’s sponsors own an aggregate of 32.3% of the Liberty warrants outstanding as of the date of this proxy statement/prospectus and, pursuant to a sponsor support agreement entered into among Liberty’s sponsors and Prisa in connection with the execution of the business combination agreement, have agreed, in respect of all of their warrants, to consent to the warrant agreement amendment. As of the date of this proxy statement/prospectus, none of the founders have acquired any shares or warrants since the date of Liberty’s IPO. | |
Under the sponsor surrender agreement, Liberty’s sponsors have agreed to sell, immediately prior to the closing of the proposed business combination, all of their Liberty warrants and a total of between approximately 3.3 million and 6.4 million of their shares of Liberty common stock to Liberty for nominal consideration. The exact number of shares to be sold by Liberty’s sponsors will be determined based upon the number of shares of Liberty common stock as to which the holders elect to receive the $10.00 per share cash alternative or exercise the redemption rights provided for in Liberty’s restated certificate of incorporation. As a result, those warrants and shares will not participate in the warrant exchange or the share exchange. These warrants and shares will be outstanding on the record date for the special meetings of Liberty’s warrantholders and stockholders and the sponsors will be entitled to vote those warrants and shares on the warrant amendment proposal, the reincorporation proposal, the business combination proposal, the liquidation proposal and the stockholder adjournment proposal, as applicable. Liberty’s sponsors’ obligation to sell the shares to Liberty will automatically terminate if the business combination agreement is terminated without the business combination having been consummated. | ||
In addition, each of Liberty’s founders has advised Liberty that he or it intends to vote all of his or its Liberty common stock in favor of the reincorporation proposal and the stockholder adjournment proposal. |
All of the founders have agreed with Liberty and the underwriters of Liberty’s IPO to vote all of their shares of Liberty common stock in favor of the liquidation proposal. |
Q. | Do I have redemption rights in connection with the business combination? | |
A. | If on the record date for the Liberty stockholder meeting you hold shares of common stock issued in Liberty’s IPO (which include all publicly-traded shares, whether such shares were acquired pursuant to such IPO or afterwards), then you have the right to vote against the business combination proposal and, by complying with the requirements described in this proxy statement/prospectus, to validly exercise your right to require Liberty to redeem your shares of common stock if the business combination is completed, for apro rataportion of the trust account in which a substantial portion of the proceeds of Liberty’s IPO are held. We refer to these rights to vote against the business combination proposal and to require the redemption of your shares for apro rataportion of the trust account in this proxy statement/prospectus as redemption rights. | |
The Liberty warrants do not have any redemption rights in connection with the proposed business combination. |
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Q. | How does the $10.00 per share cash alternative affect my right to redeem my shares of Liberty common stock? Why should I elect the $10.00 per share cash alternative instead of exercising my redemption rights? | |
A. | It does not. Holders of shares of Liberty common stock issued in Liberty’s IPO continue to have the right to vote against the business combination proposal and to redeem their shares for apro rataportion of Liberty’s trust account. However, if the business combination is completed and you exercised redemption rights with respect to your shares, you will receive approximately $9.87 in respect of each share of Liberty Virginia common stock you held, whereas if you had elected the $10.00 per share cash alternative, you would have received $10.00 in respect of each share of Liberty Virginia common stock you held in the share exchange for which you made a cash election. If you wish to exercise your redemption rights, you must do so with respect to all of your shares of Liberty common stock, whereas you may make a cash election with respect to any or all of your shares of Liberty common stock. Cash owed to Liberty Virginia stockholders in respect of shares validly redeemed and in respect of shares for which a valid election for the $10.00 per share cash alternative was made will be paid at the same time and on the same terms to Liberty Virginia stockholders. Prisa and Liberty are not aware of any benefit to holders of Liberty common stock who exercise redemption rights with respect to their shares instead of electing to receive the $10.00 per share cash alternative with respect to those shares. |
The Liberty board was aware that the $10.00 cash alternative feature of the proposed business combination may have the effect of creating an economic incentive for those stockholders who might otherwise demand redemption for approximately $9.87 per share, or seek Liberty’s liquidation and receive approximately $9.87 per share, to instead elect to receive the $10.00 per share cash alternative in the business combination, and of the sponsors’ belief that stockholders making this election would be more likely to vote for the business combination. |
Q. | What happens if I vote my shares against the business combination proposal and exercise my redemption rights? | |
A. | Prisa and Liberty will not complete the business combination if the holders of 31,050,000 or more shares of common stock issued in Liberty’s IPO, an amount equal to 30% or more of such shares, vote their shares against the business combination proposal and validly exercise their redemption rights, regardless of whether at least a majority of the outstanding shares of Liberty common stock vote in favor of the business combination proposal. If Prisa and Liberty do not complete the business combination, then your shares will not be redeemed for cash in connection with the business combination, even if you validly exercised your redemption rights. | |
If you vote your shares against the business combination proposal, validly exercise your redemption rights and Prisa and Liberty complete the business combination, your shares will be redeemed and you will be entitled to receive cash for such shares as described below. | ||
Q. | What happens if I vote my shares against the business combination proposal and do not exercise my redemption rights or elect the $10.00 per share cash alternative? | |
A. | If Prisa and Liberty complete the business combination, and if you are a stockholder and do not validly exercise your redemption rights or elect the $10.00 per share cash alternative, your Liberty shares will be exchanged for the right to receive the mixed consideration in the business combination, regardless of how or whether you voted on the business combination proposal. | |
Q. | What happens if holders of more than 80 million shares of Liberty common stock make valid elections for the $10.00 per share cash alternative or exercise redemption rights? | |
A. | Prisa will not be required to complete the business combination and each of Prisa and Liberty has the right to terminate the business combination agreement if holders of Liberty common stock elect to receive the $10.00 per share cash alternative or exercise the redemption rights provided for in Liberty’s restated certificate of incorporation for a total of more than 80 million shares of Liberty common stock. The Liberty sponsors have indicated that they will not elect to receive the $10.00 per share cash alternative with respect to any of the shares of Liberty common stock that they hold. |
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Q. | If I have redemption rights, how do I exercise them and what will I receive? | |
A. | If you are a stockholder of record on the record date for the special meeting of Liberty stockholders and wish to exercise your redemption rights, you must, with respect to all of your shares: (i) vote against the business combination proposal, (ii) give (and not subsequently withdraw) written notice to Liberty of your election to require Liberty to redeem your shares for cash by marking the appropriate box on your proxy card or delivering the required notice to Liberty at its executive offices and (iii) tender your shares of Liberty common stock in the manner provided below, no later than immediately prior to the vote on the business combination proposal at the special meeting of stockholders (or any adjournment or postponement of the meeting). If you validly exercise your redemption rights and Prisa and Liberty complete the business combination then (1) you will be entitled to receive apro rata portion of the trust account in which a substantial portion of the proceeds of Liberty’s IPO are held, including any interest earned thereon through the date that is two days prior to the date of completion of the business combination and (2) you will be exchanging your shares for cash and will no longer own these shares. However, if you elect to have your shares redeemed and you own Liberty warrants, you will still participate in the warrant exchange with respect to any warrants you hold if Prisa and Liberty complete the business combination. | |
Based on the amount of cash held in the trust account as of June 30, 2010, without taking into account any interest accrued after that date, you will be entitled to elect to have each share that you hold redeemed for approximately $9.87 per share. In order to validly exercise your redemption rights, you must make the election with respect to all of your shares. If you validly exercise your redemption rights, you will be entitled to receive the redemption payment only if Prisa and Liberty complete the business combination. If Prisa and Liberty do not complete the business combination, then no shares will be redeemed for cash at this time. Liberty will have sufficient funds in the trust account to pay the redemption price for the redemption election shares, even if it must redeem up to 30% of the shares of common stock issued in Liberty’s IPO. | ||
Prisa and Liberty will not complete the business combination if the holders of 31,050,000 or more shares of common stock issued in Liberty’s IPO, an amount equal to 30% or more of such shares, vote their shares against the business combination proposal and validly exercise their redemption rights, regardless of whether at least a majority of the outstanding shares of Liberty common stock vote in favor of the business combination proposal. If Prisa and Liberty do not complete the business combination, then your shares will not be redeemed for cash at this time, even if you have validly exercised your redemption rights. | ||
You will be required, whether you are a record holder or hold your shares in “street name” through your broker, either to tender certificates representing your shares to Liberty’s transfer agent at any time before the vote on the business combination proposal or to deliver your shares to Liberty’s transfer agent electronically using the Depository Trust Company’s DWAC (Deposit/Withdrawal At Custodian) System, at your option. There is a cost associated with this tendering process and the act of certificating the shares or delivering them through the DWAC system. The transfer agent will typically charge the tendering broker $35 per position, and the broker may or may not pass this cost on to you. | ||
As the certificate delivery process can be accomplished by you, whether or not you are a record holder or your shares are held in “street name,” generally within a day by simply contacting the transfer agent (if you are the record holder) or your broker and requesting delivery of your shares through the DWAC System, we believe this time period is sufficient for an average investor. | ||
Any valid exercise of redemption rights, once made, may be withdrawn at any time up to immediately prior to the vote on the business combination proposal at the special meeting of Liberty stockholders (or any adjournment or postponement thereof). Furthermore, if you deliver a stock certificate for redemption and subsequently decide prior to the vote on the business combination proposal at the special meeting not to elect redemption, you may simply request that the transfer agent return the shares (in certificated form or electronically) to you. |
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Please note, however, that once the vote on the business combination proposal is taken at the special meeting of Liberty stockholders, you may not withdraw your request for redemption and request the return of your stock (either in certificated form or electronically). If Prisa and Liberty do not complete the business combination, Liberty will promptly return your tendered shares to you. | ||
Q. | What if I object to the proposed business combination? Do I have appraisal or dissenters’ rights? | |
A. | No appraisal or dissenters’ rights are available for the stockholders or warrantholders of Liberty in connection with the proposals described in this proxy statement/prospectus. | |
Q. | What happens to the funds deposited in the trust account after consummation of the business combination? | |
A. | Upon consummation of the business combination, any funds remaining in the trust account after payment of Liberty’s transaction fees and expenses, the cash portions of the warrant consideration and the mixed consideration, deferred underwriting discounts and commissions and up to $300 million to fund the cash payable to stockholders that validly exercised their redemption rights or elected the $10.00 per share cash alternative, will be delivered by the trustee to Liberty Virginia, which upon the share exchange will be a wholly owned subsidiary of Prisa, and available for use by Prisa as described in this proxy statement/prospectus. | |
Q. | What happens if the business combination agreement is terminated or the business combination with Prisa is otherwise abandoned? | |
A. | If the business combination agreement is terminated or the proposed business combination is otherwise abandoned, depending on timing of the termination or abandonment, Liberty will redeem all of the shares of Liberty preferred stock for an amount equal to the purchase price paid for such shares plus all interest accrued on the funds in the preferred shares escrow account and continue to search for a business combination. However, Liberty will begin the dissolution process provided for in Liberty’s restated certificate of incorporation if it does not consummate a business combination by December 12, 2010. Specifically, Liberty’s restated certificate of incorporation provides that in the event a letter of intent, an agreement in principle or a definitive agreement to consummate a business combination has been executed but no business combination is consummated by December 12, 2010, Liberty is required to begin the dissolution process provided for in Liberty’s restated certificate of incorporation. If Liberty is unable to conclude a business combination and is dissolved and it expends all of the net proceeds of its IPO, other than the proceeds deposited in the trust account (taking into account interest earned on the trust account through June 30, 2010 net of income taxes payable on interest earned on the trust account and net of $10.35 million in interest income on the trust account balance released through such date to Liberty to fund working capital requirements), the per-share liquidation price would be approximately $9.87. However, the actual per-share liquidation price could be less than $9.87 if the amount in the trust account is reduced below $1,021,545,000 as a result of successful third party claims against the trust account and/or income taxes payable on the interest income of the trust account. As of June 30, 2010, the trust account balance was approximately $1,022 million, Liberty had an income tax receivable of approximately $328,000 and the total billed and unbilled fees owed to Liberty’s independent registered public accounting firm were approximately $1,000. As of the date hereof, Liberty is not aware of any third party claims against the trust account. Furthermore, the outstanding warrants are not entitled to participate in a liquidating distribution, and the warrants would therefore expire and become worthless if Liberty dissolves and liquidates before completing a business combination. | |
Q. | When do you expect Liberty and Prisa to complete the proposed business combination? | |
A. | Liberty and Prisa expect to complete the proposed business combination as promptly as practicable following the special meetings of Liberty warrantholders and Liberty stockholders scheduled to be held on , 2010 and the Prisa shareholders’ meeting scheduled to be held on , 2010. However, Liberty or Prisa may terminate the business combination agreement in certain circumstances even if warrantholders previously have approved the warrant amendment proposal or stockholders previously have approved the business combination proposal. The business combination may not be effected legally absent approval by the Prisa shareholders of the amendments to Prisa’s bylaws (described elsewhere in this proxy |
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statement/prospectus) providing for the capital increase in-kind necessary for effecting the business combination and establishing the rights of the Prisa Class B convertible non-voting shares; therefore, receipt of Prisa shareholder approval is a condition to both Prisa’s and Liberty’s obligations under the business combination agreement to complete the business combination. | ||
Q. | Are Liberty’s sponsors completing their co-investment obligations? | |
A. | No. At Prisa’s request, subject to the consummation of the business combination, Liberty has waived the co-investment obligations of Liberty’s sponsors, so as to reduce the potential dilution to Prisa’s shareholders upon the consummation of the business combination. If the co-investment obligations were to be completed, Liberty’s sponsors would be required to purchase a total of six million Liberty units, consisting of six million shares of Liberty common stock and three million Liberty warrants on the same terms as the warrants sold to the public in the IPO, which shares and warrants would be exchanged in the business combination for cash and a total of 10.35 million Prisa Class A ordinary shares and 18 million Prisa Class B convertible non-voting shares. In order to avoid the dilution to Prisa’s shareholders that would arise from the issuance of those additional shares in the business combination, and because the proposed business combination with Prisa does not require the additional equity capital that would be provided by the co-investment, the waiver of the sponsors’ co-investment obligations was provided at Prisa’s request. |
Liberty’s IPO prospectus stated that the proceeds from the sale of the co-investment units would provide Liberty with additional equity capital to fund a business combination, and stated Liberty’s belief that the co-investment demonstrated the sponsors’ commitment of significant capital on the same terms as Liberty’s public stockholders, which helps differentiate Liberty’s sponsors from the sponsors of other similar blank check companies. In the proposed business combination with Prisa, since the maximum number of Prisa securities that could be issued was a constant, the mixed consideration would have to have been changed to increase the cash component and decrease the securities component if the co-investment had been made. In addition, the Liberty sponsors have agreed to purchase $50 million of Liberty’s preferred stock, which, to the extent that holders of Liberty common stock exercise their redemption rights or elect to receive the $10.00 cash alternative in the business combination, would be exchanged in the business combination for Prisa securities through a mechanism resulting in less dilution to Liberty’s public stockholders than the resulting dilution if the co-investment were to have been required. Liberty’s independent directors determined, in the exercise of their fiduciary duties, that the waiver of the co-investment was more beneficial to Liberty’s public stockholders than requiring the co-investment. The IPO prospectus was silent on the consequences of a waiver of the co-investment obligation by Liberty. Therefore, Liberty’s board of directors believes that the waiver of the sponsor’s co-investment obligation is not inconsistent with the disclosure contained in the IPO prospectus. In addition, Liberty has obtained an opinion from its special Delaware counsel, which opinion is to be issued prior to the effectiveness of the registration statement of which this proxy statement/prospectus forms a part, that while the matter has not been settled as a matter of Delaware law and, accordingly, is not entirely free of doubt, the waiver of the co-investment does not require an amendment to Liberty’s restated certificate of incorporation. Notwithstanding Liberty’s board’s belief, however, it is possible that stockholders of Liberty who purchased their shares in Liberty’s IPO and who have not exercised their redemption rights could attempt to bring claims against Liberty on the basis of the waiver of the sponsors’ co-investment obligations. Even if you do not pursue such claims, others may do so. Liberty and Prisa cannot predict whether stockholders will bring such claims or whether such claims would be successful. |
Q. | Will Liberty’s founders be subject to any transfer restrictions on Prisa shares received in the business combination? |
A. | Yes. Although the representatives for the underwriters of Liberty’s IPO have agreed, effective upon the consummation of the business combination, to release Liberty’s founders from the transfer restrictions that the founders agreed to in connection with the IPO, Liberty’s founders have committed, subject to certain exceptions, that they will not, without the prior written consent of Liberty, sell, assign, transfer, pledge or otherwise dispose any of their Prisa ADSs or shares received in the business combination in exchange for |
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their Liberty common stock owned prior to Liberty’s initial public offering until the date that is one year from the date of the consummation of the business combination. | ||
In addition, Liberty’s sponsors are expected to be affiliates of Prisa following the consummation of the business combination, and for so long as they remain affiliates would thus be subject to volume limitations on the public resale of the Prisa shares they receive in the business combination in order to sell in reliance on Rule 145 promulgated under the Securities Act of 1933. | ||
Q. | Did Liberty’s board of directors make a determination as to the value of Prisa? | |
A. | While Liberty’s board of directors did not identify a specific value for Prisa, based upon reported Prisa financial statements and the price of Prisa shares at the time of execution of the business combination agreement, Liberty’s board of directors determined the enterprise value of Prisa prior to the contemplated business combination to be approximately $8 billion, which satisfies the test for a permissible business combination under Liberty’s restated certificate of incorporation. | |
Q. | Did Liberty’s board of directors obtain a fairness opinion in connection with its approval of the business combination agreement? | |
A. | No. Liberty’s board of directors determined not to obtain a fairness opinion for the following reasons: (i) the board of directors’ internal ability to value Prisa against publicly traded companies that it viewed as comparable to Prisa and other market index measures; (ii) the board of directors’ general exercise of its business judgment; and (iii) the board of directors’ knowledge that the value of the proposed business combination to Liberty stockholders would be tested by the market and factors that Liberty’s public stockholders deem relevant, and that stockholders holding 30% of Liberty’s publicly held shares could effectively veto the proposed business combination by validly exercising their redemption rights. | |
Q. | What do I need to do now? | |
A. | Liberty and Prisa urge you to read carefully and consider the information contained in this proxy statement/prospectus, including the annexes, and to consider how the business combination proposal will affect you as a Liberty stockholder and/or how the warrant amendment proposal will affect you as a Liberty warrantholder.YOU SHOULD CAREFULLY CONSIDER THOSE FACTORS DESCRIBED IN “RISK FACTORS.”You should then vote/consent as soon as possible in accordance with the instructions provided in this proxy statement/prospectus and on the enclosed proxy card(s) or, if you hold your shares or warrants through a brokerage firm, bank or other nominee, on the voting instruction form provided by the broker, bank or nominee and submit your form of election and follow the instructions provided therein. If you do not submit a form of election and do not validly exercise your redemption rights, your shares will be considered “non-electing” shares, and will be exchanged for the right to receive the mixed consideration upon the consummation of the business combination. | |
Q. | How do I vote? | |
A. | If you were a holder of record of Liberty common stock or warrants on the record date, you may vote/consent with respect to the applicable proposals in person at the special meeting of stockholders or the special meeting of warrantholders, as the case may be, or by submitting a proxy. You may submit your proxy by signing, dating and returning the enclosed proxy card(s) in the pre-addressed postage paid envelope. In addition to voting by submitting your proxy card by mail, many stockholders and warrantholders who hold their shares or warrants through a broker, bank or other nominee will have the option to submit their proxy cards or voting instruction cards electronically through the Internet. If you hold your shares or warrants through a broker, bank or other holder of record, you should check your proxy card or voting instruction card forwarded by your broker, bank or other nominee of record to see which options are available. If you hold your shares or warrants in an account at a brokerage firm or bank, you must instruct your broker or bank on how to vote your shares and/or warrants, or if you wish to attend the special meeting of stockholders or the special meeting of warrantholders and vote/consent in person, you must obtain a “Legal Proxy” from your broker or bank. Your vote, or your giving of a proxy to vote, in favor of the warrant amendment proposal will be deemed to be your written consent to the proposed amendments to the warrant agreement. |
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Q. | Do I need to attend the special meeting of stockholders to vote my shares or the special meeting of warrantholders to vote my warrants? | |
A. | No. You are invited to attend the applicable special meeting(s) to vote on the proposals described in this proxy statement/prospectus. However, you do not need to attend the special meeting of stockholders to vote your shares or the special meeting of warrantholders to vote your warrants. Instead, you may submit your proxy by signing, dating and returning the applicable enclosed proxy card(s) in the pre-addressed postage paid envelope. Your vote is important. Liberty encourages you to vote as soon as possible after carefully reading this proxy statement/prospectus. | |
Q. | If I am not going to attend the special meeting of stockholders in person, should I return my proxy card instead? | |
A. | Yes. After carefully reading and considering the information contained in this proxy statement/prospectus, please complete and sign the applicable proxy card. Then return the proxy card in the return envelope provided as soon as possible, so that your shares may be represented at the special meeting. | |
Q. | If I am also a warrantholder and I am not going to attend the special meeting of warrantholders in person, should I participate in the warrant amendment? | |
A. | Yes. An abstention, since it is not an affirmative vote in favor of the warrant amendment proposal, will have the same effect as a vote against the warrant amendment proposal. After carefully reading and considering the information contained in this proxy statement/prospectus, please complete and sign the applicable proxy card. Then return the proxy card in the return envelope provided as soon as possible, so that your warrants may be represented at the special meeting. | |
Q. | What do I do if I want to change my vote? | |
A. | If you wish to change your vote, please send a later-dated, signed proxy card to D.F. King & Co., Inc. at 48 Wall Street, New York, NY, 10005 prior to the vote at the special meeting of stockholders or warrantholders, as applicable, or attend such special meeting and vote in person. You also may revoke your proxy by sending a notice of revocation to D.F. King & Co., Inc., provided such revocation is received prior to the vote at the applicable special meeting. If your shares or warrants are held in street name by a broker or other nominee, you must contact the broker or nominee to change your vote. | |
Q. | If my shares or warrants are held in “street name” by my broker, will my broker vote my shares or warrants for me if I don’t provide instructions? | |
A. | No. If your broker holds your shares or warrants in its name and you do not give the broker voting instructions, under the applicable stock exchange rules, your broker may not vote your shares on the reincorporation proposal, the business combination proposal, the liquidation proposal or the stockholder adjournment proposal or your warrants on the warrant amendment proposal. If you do not give your broker voting instructions and the broker does not vote your shares or warrants, this is referred to as a “broker non-vote.” Broker non-votes will be counted for purposes of determining the presence of a quorum at the special meeting of Liberty stockholders, and will have the same effect as a vote “AGAINST” the reincorporation proposal, the business combination proposal and the liquidation proposal and a vote “AGAINST” the warrant amendment proposal, but will not be counted towards the vote total for the stockholder adjournment proposal.However, in no event will a “broker non-vote” that has the effect of voting against the business combination proposal also have the effect of exercising your redemption rights for apro rataportion of the trust account, and therefore no shares as to which a “broker non-vote” occurs will be redeemed in connection with the proposed business combination. | |
Q. | What is the quorum requirement for the special meeting of Liberty stockholders? | |
A. | A quorum of stockholders is necessary to hold a valid meeting of Liberty stockholders at which action can be taken. A quorum will be present if at least a majority of the outstanding shares of Liberty common stock are represented by stockholders present at the meeting in person or by proxy. On the record date for the special meeting of Liberty stockholders, there were 129,375,000 shares of Liberty common stock outstanding and entitled to vote. |
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Your shares will be counted towards the quorum only if you submit a valid proxy (or your broker, bank or other nominee submits one on your behalf) or if you vote in person at the special meeting of Liberty stockholders. Abstentions and broker non-votes will be counted towards the quorum requirement. If there is no quorum, a majority of the shares represented by stockholders present at the special meeting or by proxy, or the presiding officer of the special meeting of stockholders, may authorize adjournment of the special meeting to another date, subject to the written consent of Prisa. | ||
Q. | What happens to Liberty warrants I hold if I vote my Liberty shares against approval of the business combination proposal and validly exercise my redemption rights? | |
A. | Properly exercising your redemption rights as a Liberty stockholder does not result in either a vote “FOR” or “AGAINST” the warrant amendment proposal. If Prisa and Liberty complete the business combination, all of your warrants will be exchanged for cash and Prisa ADSs as described above and you will no longer hold any warrants. If Prisa and Liberty do not complete the business combination, the warrant amendment proposal will not be effected and you will continue to hold your warrants. | |
Q. | What happens if the reincorporation proposal, business combination proposal or warrant amendment proposal does not receive the necessary votes/consents for approval? | |
A. | If the warrant amendment proposal does not receive the necessary votes/consents for approval, then Liberty may adjourn or postpone the warrantholder meeting to permit further solicitation and vote of proxies; however, under the business combination agreement Liberty may adjourn or postpone the meeting only with Prisa’s written consent. If the warrant amendment proposal is adopted but either the reincorporation proposal or the business combination proposal does not receive the necessary votes for approval, then the stockholder adjournment proposal will be presented at the special meeting for approval, and if such proposal is approved the special meeting may be adjourned or postponed to a later date or dates to permit further solicitation and vote of proxies; however, as with the meeting of Liberty warrantholders, Liberty may adjourn or postpone the stockholder meeting only with Prisa’s written consent. If, after any such adjournments or postponements, any of the warrant amendment proposal, the reincorporation proposal or the business combination proposal is not approved, then the business combination will not be consummated and Liberty will be required to redeem all of the shares of Liberty preferred stock for an amount equal to the purchase price paid for such shares plus all interest accrued on the funds in the preferred shares escrow account. In addition, Liberty will present the liquidation proposal for a vote at the special meeting to seek stockholder approval of Liberty’s dissolution and the proposed plan of distribution. | |
Q. | How is this proxy solicitation being conducted and who is paying for it? | |
A. | Liberty will pay its costs for preparing and assembling these proxy materials, and Prisa has agreed in the business combination agreement to pay for the costs of printing and mailing this proxy statement/prospectus. In addition to Liberty’s mailing out proxy materials, Liberty’s directors and officers may solicit proxies in person, by telephone or fax, each without receiving any additional compensation for his services. Liberty has requested brokers, banks and other fiduciaries to forward proxy materials to the beneficial owners of its common stock and warrants. Liberty has engaged D.F. King & Co., Inc. to solicit proxies for the special meetings. Liberty is paying its proxy solicitor approximately $25,000 for solicitation services, which amount includes a $20,000 fixed solicitation fee and a per call fee estimated in the aggregate to be approximately $5,000. Citigroup Global Markets, Inc., or Citigroup, and Barclays Capital Inc., or Barclays, may also solicit proxies on Liberty’s behalf for no additional consideration. Citibank, N.A., an affiliate of Citigroup, has agreed to act as depositary bank for the Prisa ADSs. | |
Q. | Must I pay an exercise price in connection with the warrant exchange? | |
A. | No. Warrantholders will not be required to pay an exercise price in connection with the warrant exchange or otherwise in connection with the warrant amendment proposal. | |
Q. | How will I receive my Prisa ADSs issued in connection with the business combination? | |
A. | Promptly following the completion of the business combination, the exchange agent to be retained by Prisa will provide you with instructions regarding the surrender of your Liberty shares (if you have not |
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already surrendered them in connection with your submission of a form of election) and warrants. You should then follow the instructions provided by the exchange agent. | ||
Q. | Will U.S. taxpayers be taxed on the Prisa ADSs and cash received in the business combination? | |
A. | In general, a U.S. holder (as defined in “Material U.S. Federal Income Tax Consequences”) whose (i) shares of Liberty common stock are exchanged in the business combination for cash, and, if applicable, Prisa ADS-As and Prisa ADS-NVs representing ordinary shares and convertible non-voting shares, respectively, and (ii) Liberty warrants are exchanged in the business combination for cash and Prisa ADS-As , should recognize capital gain or loss for U.S. federal income tax purposes in an amount equal to the difference, if any, between the cash, and, if applicable, the fair market value of the Prisa ADSs on the date of the exchange received with respect to such Liberty common stock or warrants and the U.S. holder’s adjusted tax basis in such Liberty common stock or warrants. U.S. holders who are Qualifying Shareholders (as defined in “Material Spanish Tax Considerations”) should not be subject to the imposition of Spanish tax, including value added tax, as a result of the reincorporation merger, the share exchange or the receipt by such Qualifying Shareholders of Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares. | |
For more information, please see “Material U.S. Federal Income Tax Consequences” and “Material Spanish Tax Considerations.” | ||
We urge you to contact your own tax advisor to determine the particular tax consequences to you as a result of the business combination. | ||
Q. | Who can help answer my questions? | |
A. | If you have questions about the proposals or if you need additional copies of this proxy statement/prospectus, the form of election or the proxy cards you should contact Liberty’s proxy solicitor: |
You may also contact Liberty at: |
You may also obtain additional information about Liberty from documents filed with the SEC, by following the instructions in “Where You Can Find More Information.” | ||
If you intend to vote against the business combination proposal and exercise your redemption rights, you will need to deliver your stock (either in certificated form or electronically) to Liberty’s transfer agent prior to the vote on the business combination proposal at the special meeting of stockholders. If you have questions regarding the certification of your position or delivery of your stock, please contact: |
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• | Audiovisual, which includes pay television,free-to-air television and television and film production; | |
• | Education, which includes the publishing and sale of general books, educational material and training materials; | |
• | Radio, which includes the sale of advertising on Prisa’s networks; and | |
• | Press, which includes the publishing of newspapers and magazines and the sale of advertising in such publications. |
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• | The industries in which Prisa operates are highly competitive and Prisa may not successfully react to competitors’ actions. | |
• | Prisa operates in highly regulated industries and is therefore exposed to legislative, administrative and regulatory risks that could adversely impact its businesses. |
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• | Prisa’s operations outside of Spain subject Prisa to risks typical to investments in countries with emerging economies. | |
• | Prisa’s financial position will be significantly and adversely affected if Prisa is unable to successfully complete the restructuring of its indebtedness. | |
• | Fluctuations in foreign exchange rates could have an adverse effect on Prisa’s results of operations. |
• | Liberty’s current directors either directly or beneficially own shares of Liberty common stock and warrants and have other interests in the business combination that are different from, or in addition to, yours. If the proposed business combination is not approved, the securities held by them will likely become worthless. | |
• | Because the market price of Prisa ordinary shares will fluctuate and because there is currently no trading market for Prisa Class B convertible non-voting shares, Liberty’s securityholders cannot be sure of the value of the consideration they will receive when the business combination is completed, and the value may be less than what you originally paid for your Liberty securities. | |
• | Supermajority and other voting provisions in Prisa’s bylaws, along with the existence of a controlling shareholder group, may have the effect of discouraging potentially interested parties from seeking to acquire Prisa or otherwise influence the outcome of significant matters affecting Prisa’s shareholders. | |
• | As a “foreign private issuer” under the rules and regulations of the SEC, Prisa is exempt from a number of rules under the Exchange Act and may be permitted to file less or different information with the SEC than a company incorporated in the United States or otherwise subject to these rules. | |
• | Prisa may fail to realize all of the anticipated benefits of the business combination. |
• | Liberty may have insufficient time or funds to complete an alternate business combination if the business combination proposal is not approved by Liberty’s stockholders or the business combination is otherwise not completed. | |
• | If Liberty is unable to consummate a business combination within the prescribed time frame and is forced to dissolve and distribute its assets, you will receive less than $10.00 per share on distribution of the trust account funds and your warrants will expire and become worthless. |
• | Prisa’s leading market positions across several businesses and geographic markets, including audiovisual, publishing, newspapers and magazines and radio; | |
• | the belief by Liberty’s board of directors that Prisa’s diversity of businesses and growth prospects and the quality and strength of Prisa’s management team will provide Liberty’s stockholders with a unique opportunity to acquire, and participate in, an established company with not only leading market positions across several business segments and geographic markets, but with significant growth potential, particularly in Latin America, the United States and other dynamic global markets; | |
• | the fact that it is a condition to the obligations of the parties to effect the business combination that Prisa has successfully restructured its existing debt obligations of approximately €4.84 billion as of June 30, 2010. In connection with such debt restructuring, Prisa will need to complete the proposed asset dispositions described elsewhere in this proxy statement/prospectus. In connection with reaching |
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its conclusion regarding this factor, Liberty’s board reviewed pro forma financial information that gave effect to the debt restructuring, asset dispositions and the consummation of the business combination upon the terms described herein. Based upon its review of such pro forma financial information, Liberty’s board believes that if Prisa is able to successfully restructure its existing debt and complete the proposed asset dispositions, then following the consummation of the business combination, Prisa will be significantly deleveraged and have more favorable debt terms, which should, among other things, allow management to focus on growth strategy and enhance the capital and liquidity available to support such strategy. Prisa has entered into various agreements regarding such asset dispositions and anticipates closing such transactions prior to the end of 2010. However, there can be no assurances that all of such transactions will be completed; |
• | the possibility that the benefits anticipated from the business combination, including the proposed debt restructuring and the asset dispositions, might not be achieved or might not occur as rapidly or to the extent or on the same terms as currently anticipated; and | |
• | the Liberty board’s belief that the business combination with Prisa is preferable to any other transaction available to Liberty to enhance stockholder value. |
• | that the business combination is a major step in Prisa’s plan to substantially restructure and strengthen its capital structure, as Prisa plans to use the cash proceeds from the business combination and the proceeds from previously announced asset dispositions to complete the restructuring of Prisa’s significant debt and to provide for working capital requirements; | |
• | its determination that the proposed business combination with Liberty provides the most attractive alternative for raising a significant amount of capital on acceptable terms and its belief that the business combination has a greater likelihood of completion in the current economic environment and is on more favorable terms than other alternatives to raising capital available to Prisa in the capital markets; | |
• | the fact that Prisa’s controlling shareholder group supported the transaction and that Prisa is required to complete the business combination only if, among other things, Prisa’s controlling shareholder group will hold at least 30% of the share capital of Prisa on a fully diluted basis; | |
• | the personal indemnities being provided by the individuals controlling Liberty’s sponsors, which should limit the exposure of Prisa to potential liabilities of Liberty; | |
• | the fact that the exchange ratios are fixed and will not fluctuate based upon changes in the market price of Prisa ordinary shares between the date of the business combination agreement and the date the parties complete the business combination; and |
• | that the precise amount of cash that Liberty will contribute to Prisa will be determinable only after the number of redemptions and the number of elections for the $10.00 per share cash alternative of Liberty common stock are known, and that the business combination cannot be consummated if Liberty stockholders exercise their redemption rights with respect to 30% or more of Liberty’s publicly-held shares. |
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• | approval by Prisa’s shareholders of the amendments to Prisa’s bylaws and the capital increase in-kind necessary for effecting the business combination, and the approval and adoption of the business combination agreement by Liberty stockholders and the approval of the warrant agreement amendment by Liberty warrantholders; | |
• | effectiveness of the registration statements under the Securities Act and Exchange Act with respect to the Prisa Class A ordinary shares and Class B convertible non-voting shares to be issued in the business combination; | |
• | the CNMV having verified and registered a prospectus relating to the issuance of the Prisa Class A ordinary shares, the Prisa Class B convertible non-voting shares and the Prisa warrants; | |
• | completion of the restructuring of Prisa’s outstanding indebtedness occurring substantially simultaneously with the closing of the business combination; | |
• | approval of the listing of the Prisa ADSs on the New York Stock Exchange, subject to official notice of issuance; | |
• | entry by Prisa into deposit agreements with a U.S. financial institution authorized to act as a depositary for the Prisa ADSs; | |
• | the absence of any legal restraint on completion of the business combination; and | |
• | receipt by Prisa from HSBC, as representative of the lenders under a refinancing master agreement among Prisa, the lenders and HSBC, as administrative agent, of a notice stating that the requisite lenders have consented to and approved the amendments contained in the amended and restated business combination agreement dated as of August 4, 2010. |
• | Liberty having not less than approximately $936.7 million in cash in its trust and operating accounts at the closing of the business combination (including cash to be paid to Liberty stockholders who validly |
7
exercise their redemption rights or make cash elections), after the deferred underwriting discounts payable to the underwriters of Liberty’s IPO, Liberty’s payment of transaction expenses and other liabilities, and the approximately $46.7 million in cash payable as part of the warrant consideration; |
• | Liberty’s transaction expenses, excluding deferred underwriting discounts and the cash payable as part of the warrant consideration, not exceeding $24 million; | |
• | the directors and officers of Liberty Virginia having tendered their resignations, effective upon the effective time of the share exchange; | |
• | Prisa’s existing controlling shareholder group continuing to control not less than 30% of Prisa’s outstanding ordinary shares (after giving pro forma effect to the transactions contemplated by the warrant agreement amendment, the full conversion of the Prisa Class B convertible non-voting shares to Prisa Class A ordinary shares, any required redemptions of shares of Liberty common stock, the purchase of Liberty warrants and Liberty common stock pursuant to the sponsor surrender agreement and the issuance and exercise of the Prisa warrants); | |
• | the amount of cash held by Liberty and available to Prisa following consummation of the business combination, after payment of (1) any amounts payable to stockholders of Liberty who validly exercise their redemption rights, (2) any amounts payable to stockholders of Liberty who have elected to receive the $10.00 per share cash alternative in excess of the amounts deposited into and remaining in the Liberty preferred shares escrow account and (3) the aggregate amount of cash payable to Liberty stockholders receiving mixed consideration in the business combination and a portion of the cash payable to the holders of Liberty preferred stock, being greater than €450 million (converted from dollars to euros using an agreed exchange rate); | |
• | the total number of shares of Liberty common stock as to which Liberty stockholders validly exercise their redemption rights or elect to receive the $10.00 per share cash alternative not exceeding 80 million shares in the aggregate; | |
• | the accuracy of the representations and warranties of Liberty in the business combination agreement, subject to the materiality standard set forth in the business combination agreement, and performance by Liberty of its obligations under the business combination agreement; | |
• | there not having occurred since the date of the business combination agreement a material adverse effect on Liberty; and | |
• | Liberty having purchased from its sponsors a total of approximately 24.8 million Liberty warrants (constituting all of the Liberty warrants held by them, but excluding the 165,600 Liberty warrants held by the other founders) and approximately 3.3 million shares of Liberty common stock for a total purchase price of $825, and, if the total amount of cash payable to Liberty common stockholders who have exercised redemption rights or elected to receive the $10.00 per share cash alternative is greater than $525 million, Liberty having purchased an additional 2.6 million shares of Liberty common stock from the Liberty sponsors for a total purchase price of $260 and, if the total amount of cash payable to Liberty common stockholders who have exercised redemption rights or elected to receive the $10.00 per share cash alternative is greater than $750 million, Liberty having purchased an additional 500,000 shares from the Liberty sponsors for a total purchase price of $50. |
• | entry by Prisa into an employment agreement with Juan Luis Cebrián providing for an employment term of at least three years and such other terms as are mutually acceptable to Prisa and Mr. Cebrián; | |
• | issuance and delivery by Prisa of the number of Prisa shares equaling the number of Prisa shares required by the share exchange and the warrant agreement amendment; | |
• | the accuracy of the representations and warranties of Prisa in the business combination agreement, subject to the materiality standard set forth in the business combination agreement, and performance by Prisa of its obligations under the business combination agreement; and |
8
• | there not having occurred since the date of the business combination agreement a material adverse effect on Prisa. |
• | if the business combination has been enjoined, prohibited or made illegal by a governmental entity or law (and the prohibition or illegality is final and nonappealable); | |
• | if the Prisa shareholders fail to approve the capital increase in-kind and the bylaw amendments required for the business combination, if Liberty’s stockholders fail to approve and adopt the business combination agreement or if the Liberty warrantholders fail to consent to the warrant agreement amendment (except a party may not terminate on this basis if it has not fulfilled its obligations to call and conduct its meetings or if it has breached any of its obligations under the business combination agreement causing failure of a closing condition); | |
• | if the business combination has not been completed by December 6, 2010, unless the failure to complete the business combination by that date is due to a breach of the business combination agreement by the party seeking to terminate the agreement; | |
• | if there is a breach by the other party that would cause the failure of a closing condition unless the breach is capable of being, and is, cured within 15 days of notice of the breach; or | |
• | if, as of the date of the Liberty stockholder meeting, the total number of shares of Liberty common stock as to which Liberty stockholders validly exercised their redemption rights or made elections to receive the $10.00 per share cash alternative exceeds 80 million shares in the aggregate. |
• | cash in the amount of $0.90, to be paid by or at the direction of Liberty Virginia; and | |
• | 0.45 newly created Prisa Class A ordinary shares. |
9
10
• | Liberty’s restated certificate of incorporation provides that in the event a letter of intent, an agreement in principle or a definitive agreement to consummate a business combination has been executed but no business combination is consummated by December 12, 2010, Liberty is required to begin the dissolution process provided for in Liberty’s restated certificate of incorporation. In the event of a dissolution: |
• | the 25,875,000 shares included as part of the founders’ units that Liberty’s founders purchased prior to Liberty’s IPO for an aggregate purchase price of approximately $25,000 would become worthless, as the Liberty founders have waived any right to receive liquidation distributions with respect to their shares. Such shares had an aggregate market value of approximately $[ • ] million, based upon the closing price of $[ • ] on the NYSE Amex on , 2010, the record date for the special meeting of stockholders. |
• | all of (i) the 12,000,000 sponsors’ warrants purchased by Liberty’s sponsors at a price of $1.00 per warrant for an aggregate purchase price of $12,000,000 and (ii) the 12,937,500 founders’ warrants included as part of the founders’ units that Liberty’s founders (which includes the sponsors) purchased prior to Liberty’s IPO would expire and become worthless. Such warrants had an aggregate value of approximately $[ • ] million, based on the closing price of Liberty warrants of $[ • ] on the NYSE Amex on , 2010, the record date for the special meeting of warrantholders. |
11
• | Prisa expects that Mr. Martin Franklin and Mr. Nicolas Berggruen will join Prisa’s board of directors in connection with the business combination. | |
• | Mr. Nicolas Berggruen and Mr. Martin Franklin, each of whom controls one of Liberty’s sponsors and is a member of Liberty’s board of directors, have agreed that, if Liberty dissolves prior to the consummation of a business combination, they will personally jointly and severally indemnify Liberty for any and all loss, liability, claim, damage and expense which it may become subject to as a result of a claim by any vendor, prospective target business or other entity that is owed money by Liberty for services rendered or products sold to the extent necessary to ensure that such loss, liability, claim, damage or expense does not reduce the amount of funds held in Liberty’s trust account. Based on Liberty’s estimated debts and obligations, Liberty does not currently expect that Messrs. Berggruen and Franklin will have any exposure under this arrangement in the event of a dissolution. | |
• | Mr. Nicolas Berggruen and Mr. Martin Franklin have agreed that they will personally, jointly and severally indemnify Prisa for any and all loss, liability, obligation, damage, cost, expense, fine or penalty, interest, tax, assessment, judgment or deficiency of any nature whatsoever (which we refer to collectively as damages) which Prisa may become subject to as a result of or in connection with the business combination regardless of whether the damages arise at, before or after the closing and are based on circumstances existing on or before the closing related to any liabilities of Liberty, excluding claims arising from, as a result of or in connection with Liberty entering into the business combination. Messrs. Berggruen’s and Franklin’s indemnification obligations are subject to certain thresholds for individual claims, a deductible and a limit on their total liability, and they are limited to claims for indemnification made by Prisa prior to March 5, 2015. | |
• | Each of the Liberty sponsors has agreed to purchase $25 million of shares of Series A preferred stock of Liberty, as part of the sales of preferred stock to be effected by Liberty to provide funds that may be used to make the required payments to those Liberty stockholders who elect to receive the $10.00 per share cash alternative in the business combination. If the business combination is consummated, the sponsors will receive a combination of cash and Prisa shares on account of their shares of Liberty Series A preferred stock, depending upon the total number of holders of Liberty common stock who elect the $10.00 per share cash alternative or validly exercise their redemption rights. If the business combination is not consummated, Liberty will be required to redeem the shares of Liberty Series A preferred stock purchased by the sponsors for the amount of the original purchase price. |
12
13
• | file a certificate of dissolution with the Delaware Secretary of State; |
14
• | give the trustee of the trust account notice to commence turning over all trust account funds to Liberty’s transfer agent for distribution according to the plan of distribution; | |
• | as provided in the plan of distribution, pay or adequately provide for the payment of its known liabilities, including (i) existing liabilities for taxes, (ii) unpaid liabilities to service providers and other creditors, including expenses of the dissolution and liquidation, and (iii) its obligations to Liberty’s stockholders in accordance with its restated certificate of incorporation; | |
• | wind up its remaining business activities; | |
• | comply with U.S. Securities and Exchange Commission filing requirements, for so long as it is required to do so; and | |
• | make any tax and other regulatory filings. |
15
16
17
18
19
• | Sogecable: In April 2006, Sogecable started to be fully consolidated by Prisa as a result of the takeover bid launched by Prisa as of November 2005 for 20% of Sogecable’s share capital. Prisa’s ownership interest in the company rose to 44.5%, which enabled it to appoint one-half of the board members and to govern the financial and operating policies of Sogecable. This change in the scope of consolidation explains the main differences in the results for the year ended December 31, 2006 as compared to the previous year. | |
• | Media Capital: In 2005, Prisa purchased all the shares of Vertix, SPGS, S.A., or Vertix, which held 33% of Media Capital and which was accounted for by Prisa using the equity method. Media Capital ceased to be accounted for by the equity method and started to be fully consolidated by Prisa from February 2007 onwards as Prisa increased its stake in the company to reach 94.7%, as a consequence of the results of the voluntary and mandatory takeover bids launched for 100% of the company. This change in the scope of consolidation explains the main differences in the results for the year ended December 31, 2007 as compared to the previous year. |
20
Audited | ||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(thousands of euros, except per share data) | ||||||||||||||||||||
Consolidated Statements of Operations Data: | ||||||||||||||||||||
Operating Income | 3,208,584 | 4,001,348 | 3,696,028 | 2,811,758 | 1,483,091 | |||||||||||||||
Operating Expenses | (2,839,602 | ) | (3,303,157 | ) | (3,176,097 | ) | (2,525,810 | ) | (1,264,389 | ) | ||||||||||
Profit from Operations | 368,982 | 698,191 | 519,931 | 285,948 | 218,702 | |||||||||||||||
Financial Loss | (214,269 | ) | (397,068 | ) | (195,263 | ) | (110,795 | ) | (22,804 | ) | ||||||||||
Result of companies accounted for using the equity method | (20,158 | ) | (7,592 | ) | (32,056 | ) | (6,025 | ) | (29,160 | ) | ||||||||||
Loss from other investments | (4,256 | ) | (1,350 | ) | (3,612 | ) | (2,709 | ) | (458 | ) | ||||||||||
Profit Before Tax From Continuing Operations | 130,299 | 292,181 | 289,000 | 166,419 | 166,280 | |||||||||||||||
Income Tax | (63,045 | ) | (90,435 | ) | (26,919 | ) | 64,357 | 2,944 | ||||||||||||
Profit From Continuing Operations | 67,254 | 201,746 | 262,081 | 230,776 | 169,224 | |||||||||||||||
Loss after tax from discontinued operations | (2,429 | ) | (75,346 | ) | — | (449 | ) | (9,724 | ) | |||||||||||
Consolidated Profit for the Year | 64,825 | 126,400 | 262,081 | 230,327 | 159,500 | |||||||||||||||
Profit attributable to minority interests | (14,346 | ) | (43,404 | ) | (70,108 | ) | (1,418 | ) | (6,691 | ) | ||||||||||
Profit Attributable to the Parent | 50,479 | 82,996 | 191,973 | 228,909 | 152,809 | |||||||||||||||
Earnings (loss) per share from continuing operations | € 0.24 | € 0.72 | € 0.92 | € 1.10 | € 0.78 | |||||||||||||||
Basic earnings per share | € 0.23 | € 0.38 | € 0.92 | € 1.10 | € 0.74 | |||||||||||||||
Cash dividend per share | € — | € — | € 0.18 | € 0.16 | € 0.14 |
21
Unaudited | ||||||||
Six Months Ended June 30, | ||||||||
2010 | 2009 | |||||||
(thousands of euros, except per share data) | ||||||||
Consolidated Statements of Operations Data: | ||||||||
Operating Income | 1,577,298 | 1,677,681 | ||||||
Operating Expenses | (1,381,261 | ) | (1,495,162 | ) | ||||
Profit from Operations | 196,037 | 182,519 | ||||||
Financial Loss | (86,008 | ) | (114,053 | ) | ||||
Result of companies accounted for using the equity method | (461 | ) | (4,607 | ) | ||||
Loss from other investments | (2,966 | ) | (3,064 | ) | ||||
Profit Before Tax From Continuing Operations | 106,602 | 60,795 | ||||||
Income Tax | (28,580 | ) | (27,634 | ) | ||||
Profit From Continuing Operations | 78,022 | 33,161 | ||||||
Loss after tax from discontinued operations | (87 | ) | (1,974 | ) | ||||
Consolidated Profit for the Year | 77,935 | 31,187 | ||||||
Profit attributable to minority interests | (17,053 | ) | (3,961 | ) | ||||
Profit Attributable to the Parent | 60,882 | 27,226 | ||||||
Earnings (loss) per share from continuing operations | € 0.28 | € 0.13 | ||||||
Basic earnings per share | € 0.28 | € 0.12 | ||||||
Cash dividend per share | € — | € — |
22
Audited | ||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(thousands of euros, except for per share data) | ||||||||||||||||||||
Consolidated Balance Sheet Data: | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Non-Current Assets | 6,420,766 | 6,512,270 | 4,832,055 | 4,174,445 | 1,518,508 | |||||||||||||||
Property, Plant & Equipment | 345,754 | 397,932 | 423,163 | 475,885 | 324,285 | |||||||||||||||
Investment Property | 1 | 28 | 85 | 12,331 | 12,314 | |||||||||||||||
Goodwill | 4,319,603 | 4,302,739 | 2,420,078 | 1,547,561 | 225,732 | |||||||||||||||
Intangible Assets | 365,670 | 400,084 | 444,337 | 400,723 | 91,716 | |||||||||||||||
Non-Current Financial Assets | 57,218 | 93,344 | 157,166 | 86,837 | 78,697 | |||||||||||||||
Investments Accounted for Using the Equity Method | 13,644 | 12,936 | 13,248 | 280,744 | 644,842 | |||||||||||||||
Deferred Tax Assets | 1,313,820 | 1,298,475 | 1,364,975 | 1,359,081 | 140,922 | |||||||||||||||
Other Non-Current Assets | 5,056 | 6,732 | 9,003 | 11,283 | — | |||||||||||||||
Current Assets | 1,514,898 | 1,594,297 | 1,621,418 | 1,756,105 | 626,197 | |||||||||||||||
Inventories | 218,066 | 306,079 | 325,160 | 270,322 | 104,273 | |||||||||||||||
Trade and Other Receivables | 1,207,204 | 1,237,723 | 1,215,684 | 945,858 | 492,952 | |||||||||||||||
Current Financial Assets | 6,593 | 838 | 7,456 | 5,162 | 5,130 | |||||||||||||||
Cash and Cash Equivalents | 82,810 | 49,432 | 72,827 | 534,538 | 23,242 | |||||||||||||||
Other Current Assets | 225 | 225 | 291 | 225 | 600 | |||||||||||||||
Assets Held for Sale | 257,388 | 519 | 72,887 | 93,971 | 2,448 | |||||||||||||||
Total Assets | 8,193,052 | 8,107,086 | 6,526,360 | 6,024,521 | 2,147,153 | |||||||||||||||
EQUITY AND LIABILITIES | ||||||||||||||||||||
Equity | 1,373,019 | 1,258,236 | 1,353,547 | 1,157,234 | 865,255 | |||||||||||||||
Share Capital | 21,914 | 21,914 | 22,036 | 21,881 | 21,881 | |||||||||||||||
Other Reserves | 833,697 | 779,225 | 721,503 | 610,997 | 530,102 | |||||||||||||||
Accumulated Profit | 403,478 | 398,975 | 440,972 | 400,282 | 316,503 | |||||||||||||||
From prior years | 352,999 | 315,979 | 248,999 | 171,373 | 163,694 | |||||||||||||||
For the year; profit attributable to the Parent | 50,479 | 82,996 | 191,973 | 228,909 | 152,809 | |||||||||||||||
Treasury Shares | (3,044 | ) | (24,726 | ) | (39,101 | ) | (38,881 | ) | (32,766 | ) | ||||||||||
Exchange Differences | (1,561 | ) | (18,422 | ) | (3,475 | ) | 1,497 | 10,639 | ||||||||||||
Minority Interests | 118,535 | 101,270 | 211,612 | 161,458 | 18,896 | |||||||||||||||
Non-Current Liabilities | 2,351,466 | 2,751,369 | 3,124,842 | 2,803,180 | 545,444 | |||||||||||||||
Exchangeable Bond in Issue | — | — | 158,408 | 154,674 | 151,093 | |||||||||||||||
Non-Current Bank Borrowings | 1,917,963 | 2,348,078 | 2,558,372 | 2,252,004 | 311,095 | |||||||||||||||
Non-Current Financial Liabilities | 249,538 | 232,565 | 202,378 | 202,875 | — | |||||||||||||||
Deferred Tax Liabilities | 72,799 | 79,278 | 112,931 | 116,204 | 42,996 | |||||||||||||||
Long-Term Provisions | 90,150 | 74,807 | 67,346 | 50,906 | 22,186 | |||||||||||||||
Other Non-Current Liabilities | 21,016 | 16,641 | 25,407 | 26,517 | 18,074 | |||||||||||||||
Current Liabilities | 4,263,133 | 4,097,481 | 2,047,971 | 1,996,942 | 736,454 | |||||||||||||||
Trade Payables | 1,181,437 | 1,257,945 | 1,233,136 | 970,309 | 211,425 | |||||||||||||||
Payables to Associates | 10,955 | 27,296 | 25,913 | 12,377 | 35,371 | |||||||||||||||
Other Non-Trade Payables | 107,693 | 142,568 | 137,863 | 96,905 | 119,657 | |||||||||||||||
Current Bank Borrowings | 2,796,362 | 2,532,091 | 536,046 | 843,410 | 320,172 | |||||||||||||||
Current Financial Liabilities | 3,295 | 21,676 | — | — | — | |||||||||||||||
Payable to Public Authorities | 124,288 | 79,972 | 73,245 | 43,106 | 37,538 | |||||||||||||||
Provisions for Returns | 9,417 | 9,369 | 8,457 | 5,127 | 5,444 | |||||||||||||||
Other Current Liabilities | 29,686 | 26,564 | 33,311 | 25,708 | 6,847 | |||||||||||||||
Liabilities Held For Sale | 205,434 | — | — | 67,165 | — | |||||||||||||||
Total Equity and Liabilities | 8,193,052 | 8,107,086 | 6,526,360 | 6,024,521 | 2,147,153 | |||||||||||||||
Book Value Per Share | € 5.74 | € 5.39 | € 5.36 | € 4.73 | € 4.02 | |||||||||||||||
23
Unaudited | Audited | |||||||
As of June 30, 2010 | As of December 31, 2009 | |||||||
(thousands of euros, except for per share data) | ||||||||
Consolidated Balance Sheet Data: | ||||||||
ASSETS | ||||||||
Non-Current Assets | 6,434,052 | 6,420,766 | ||||||
Property, Plant & Equipment | 341,048 | 345,754 | ||||||
Investment Property | 1 | 1 | ||||||
Goodwill | 4,325,147 | 4,319,603 | ||||||
Intangible Assets | 358,398 | 365,670 | ||||||
Non-Current Financial Assets | 58,191 | 57,218 | ||||||
Investments Accounted for Using the Equity Method | 29,202 | 13,644 | ||||||
Deferred Tax Assets | 1,317,841 | 1,313,820 | ||||||
Other Non-Current Assets | 4,224 | 5,056 | ||||||
Current Assets | 1,659,906 | 1,514,898 | ||||||
Inventories | 223,057 | 218,066 | ||||||
Trade and Other Receivables | 1,342,684 | 1,207,204 | ||||||
Current Financial Assets | 3,068 | 6,593 | ||||||
Cash and Cash Equivalents | 90,872 | 82,810 | ||||||
Other Current Assets | 225 | 225 | ||||||
Assets Held for Sale | 250,812 | 257,388 | ||||||
Total Assets | 8,344,770 | 8,193,052 | ||||||
EQUITY AND LIABILITIES | ||||||||
Equity | 1,568,283 | 1,373,019 | ||||||
Share Capital | 21,914 | 21,914 | ||||||
Other Reserves | 825,536 | 833,697 | ||||||
Accumulated Profit | 488,548 | 403,478 | ||||||
From prior years | 427,666 | 352,999 | ||||||
For the year; profit attributable to the Parent | 60,882 | 50,479 | ||||||
Treasury Shares | — | (3,044 | ) | |||||
Exchange Differences | 29,361 | (1,561 | ) | |||||
Minority Interests | 202,924 | 118,535 | ||||||
Non-Current Liabilities | 2,259,010 | 2,351,466 | ||||||
Exchangeable Bond in Issue | — | — | ||||||
Non-Current Bank Borrowings | 1,743,582 | 1,917,963 | ||||||
Non-Current Financial Liabilities | 359,831 | 249,538 | ||||||
Deferred Tax Liabilities | 45,458 | 72,799 | ||||||
Long-Term Provisions | 93,524 | 90,150 | ||||||
Other Non-Current Liabilities | 16,615 | 21,016 | ||||||
Current Liabilities | 4,321,788 | 4,263,133 | ||||||
Trade Payables | 1,127,246 | 1,181,437 | ||||||
Payables to Associates | 15,998 | 10,955 | ||||||
Other Non-Trade Payables | 102,109 | 107,693 | ||||||
Current Bank Borrowings | 2,752,330 | 2,796,362 | ||||||
Current Financial Liabilities | 3,708 | 3,295 | ||||||
Payable to Public Authorities | 283,986 | 124,288 | ||||||
Provisions for Returns | 6,815 | 9,417 | ||||||
Other Current Liabilities | 29,596 | 29,686 | ||||||
Liabilities Held For Sale | 195,689 | 205,434 | ||||||
Total Equity and Liabilities | 8,344,770 | 8,193,052 | ||||||
Book Value Per Share | € 6.23 | € 5.74 | ||||||
24
As of | As of | As of | ||||||||||
June 30, | December 31, | December 31, | ||||||||||
Balance Sheet Data: | 2010 | 2009 | 2008 | |||||||||
Working capital (deficiency) | $ | 1,438,543 | $ | 9,560,411 | $ | 10,947,952 | ||||||
Total assets | $ | 1,029,639,857 | $ | 1,032,127,150 | $ | 1,031,648,244 | ||||||
Total liabilities | $ | 30,296,529 | $ | 27,461,101 | $ | 27,543,110 | ||||||
Value of common stock which may be redeemed for cash (approximately $9.82 per share)(1) | $ | 304,910,990 | $ | 304,910,990 | $ | 304,910,990 | ||||||
Value of deferred interest income related to common stock subject to possible redemption, net of tax | $ | 2,241,525 | $ | 2,205,468 | $ | 1,568,300 | ||||||
Stockholders’ equity | $ | 692,190,813 | $ | 697,549,591 | $ | 697,625,844 |
(1) | The estimated redemption price per share of approximately $9.82 was as of the date of Liberty’s IPO. On June 30, 2010, the estimated redemption price per share would be approximately $9.87. |
25
For the six months | For the year ended | |||||||||||||||||||||||||||||||||||
Pro Forma(1) | ended June 30, | December 31, | ||||||||||||||||||||||||||||||||||
Six months | Year ended | |||||||||||||||||||||||||||||||||||
ended | December 31, | |||||||||||||||||||||||||||||||||||
June 30, 2010 | 2009 | 2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Interest expense inclusive of amortized premiums, discounts and capitalized expenses related to indebtedness | (170,923 | ) | (323,962 | ) | (129,102 | ) | (190,850 | ) | (270,404 | ) | (363,682 | ) | (237,222 | ) | (139,251 | ) | (17,412 | ) | ||||||||||||||||||
Interest capitalized | (2,813 | ) | (4,800 | ) | (2,813 | ) | (6,604 | ) | (4,800 | ) | (11,796 | ) | (5,138 | ) | (10,383 | ) | (2,385 | ) | ||||||||||||||||||
(173,736 | ) | (328,762 | ) | (131,915 | ) | (197,454 | ) | (275,204 | ) | (375,478 | ) | (242,360 | ) | (149,634 | ) | (19,797 | ) | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||||||||||||||
Pretax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income (loss) from equity investees | 99,290 | 136,273 | 110,029 | 68,466 | 154,713 | 301,123 | 324,668 | 175,153 | 195,898 | |||||||||||||||||||||||||||
Fixed charges | 173,736 | 328,762 | 131,915 | 197,454 | 275,204 | 375,478 | 242,360 | 149,634 | 19,797 | |||||||||||||||||||||||||||
Amortization of capitalized interest | 11,468 | 24,894 | 11,468 | 11,852 | 24,894 | 8,426 | 8,144 | 7,201 | 6,223 | |||||||||||||||||||||||||||
Distributed income of equity investees | 1,307 | 393 | 1,307 | — | 393 | 1,109 | 8,360 | 2,009 | 10,619 | |||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||
Interest capitalized | 2,813 | 4,800 | 2,813 | 6,604 | 4,800 | 11,796 | 5,138 | 10,383 | 2,385 | |||||||||||||||||||||||||||
282,988 | 485,522 | 251,906 | 271,168 | 450,404 | 674,340 | 578,394 | 323,614 | 230,152 | ||||||||||||||||||||||||||||
Preference security dividend (Gross up)(2) | 50,373 | 128,647 | ||||||||||||||||||||||||||||||||||
Ratio of earnings to fixed charges and preference dividends | 1.92 | 1.87 | 1.91 | 1.37 | 1.64 | 1.80 | 2.39 | 2.16 | 11.63 |
(1) | The pro forma financial information shows the pro-forma effect of the consummation of the transaction between Prisa and Liberty for purposes of the statements of operations for the year ended December 31, 2009 and for the six months ended June 30, 2010 as if it had occurred on January 1, 2009, and for balance sheet purposes as if it had occurred on June 30, 2010. Additionally, the pro forma statement of operations for the year ended December 31, 2009 reflects the effects of the sale of a minority interest in Santillana by Prisa, which was completed on April 29, 2010, as if the sale had occurred on January 1, 2009. |
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(2) | Represents the maximum aggregate amount of the preferred dividend that would have been payable for the six months ended June 30, 2010 and the year ended December 31, 2009 to holders of the Prisa Class B convertible non-voting shares and Santillana Class B convertible non-voting shares, grossed up assuming a net tax rate of 30%. |
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As of | ||||||||
June 30, 2010 | ||||||||
Minimum | Maximum | |||||||
Cash Elections | Cash Elections | |||||||
Balance Sheet Data (in thousands of euros): | ||||||||
Total assets | 8,549,068 | 8,548,660 | ||||||
Total liabilities | 6,520,979 | 6,718,892 | ||||||
Stockholders’ equity | 2,028,089 | 1,829,768 |
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For the six months ended | For the year ended | |||||||||||||||
June 30, 2010 | December 31, 2009 | |||||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||
Cash Elections | Cash Elections | Cash Elections | Cash Elections | |||||||||||||
Income Statement Data (in thousands of euros): | ||||||||||||||||
Profit from operations | 189,240 | 188,240 | 366,530 | 366,530 | ||||||||||||
Profit from continuing operations | 66,991 | 66,699 | 60,523 | 61,067 | ||||||||||||
Profit from continuing operations attributable to the parent | 49,938 | 49,646 | 26,647 | 27,191 | ||||||||||||
Basic earnings per share from continuing operations (euros) | 0.017 | 0.032 | (0.052 | ) | (0.038 | ) | ||||||||||
Diluted earnings per share from continuing operations (euros) | 0.016 | 0.029 | (0.047 | ) | (0.034 | ) |
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As of and for the | ||||||||||||
year ended | ||||||||||||
December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Prisa — Historical: | ||||||||||||
Income (loss) per ordinary share from continuing operations | € | 0.24 | € | 0.72 | € | 0.92 | ||||||
Income (loss) per ordinary share (basic) | € | 0.23 | € | 0.38 | € | 0.92 | ||||||
Cash dividends declared per ordinary share | — | — | € | 0.18 | ||||||||
Book value per ordinary share | € | 5.74 | € | 5.39 | € | 5.36 |
As of and for the | ||||||||
six months ended | ||||||||
June 30, | ||||||||
2010 | 2009 | |||||||
Prisa — Historical: | ||||||||
Income (loss) per ordinary share from continuing operations | € | 0.28 | € | 0.13 | ||||
Income (loss) per ordinary share (basic) | € | 0.28 | € | 0.12 | ||||
Cash dividends declared per ordinary share | — | — | ||||||
Book value per ordinary share | € | 6.23 | € | 5.74 |
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As of and for the | As of and for the | |||||||||||||||
six months ended | year ended | |||||||||||||||
June 30, 2010 | December 31, 2009 | |||||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||
Cash Elections | Cash Elections | Cash Elections | Cash Elections | |||||||||||||
Prisa — Pro Forma Combined: | ||||||||||||||||
Income (loss) per ordinary share from continuing operations (basic) | € | 0.017 | € | 0.032 | € | (0.052 | ) | € | (0.038 | ) | ||||||
Income (loss) per ordinary share from continuing operations (diluted) | € | 0.016 | € | 0.029 | € | (0.047 | ) | € | (0.034 | ) | ||||||
Cash dividends declared per ordinary share | — | — | — | — | ||||||||||||
Book value per ordinary share | € | 2.15 | € | 2.28 | € | 1.93 | € | 2.33 |
As of and for the | ||||||||
year ended | ||||||||
December 31, | ||||||||
2009 | 2008 | |||||||
Liberty — Historical: | ||||||||
Income per common share subject to possible redemption, basic and diluted | $ | 0.02 | $ | 0.03 | ||||
Income (loss) per common share not subject to possible redemption, basic | $ | 0.01 | $ | 0.12 | ||||
Income (loss) per common share not subject to possible redemption, diluted | $ | 0.01 | $ | 0.10 | ||||
Cash dividends declared per common share | — | — | ||||||
Book value per common share | $ | 5.39 | $ | 5.39 |
As of and for the | As of and for the | |||||||||||||||
six months ended | year ended | |||||||||||||||
June 30, 2010 | December 31, 2009 | |||||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||
Cash Elections | Cash Elections | Cash Elections | Cash Elections | |||||||||||||
Liberty — Pro Forma Per Share Equivalent(1): | ||||||||||||||||
Income (loss) per Liberty share from continuing operations (basic) | € | 0.026 | € | 0.048 | € | (0.078 | ) | € | (0.057 | ) | ||||||
Income (loss) per Liberty share from continuing operations (diluted) | € | 0.024 | € | 0.044 | € | (0.047 | ) | € | (0.051 | ) | ||||||
Cash dividends declared per ordinary share | — | — | — | — | ||||||||||||
Book value per ordinary share | € | 3.23 | € | 3.42 | € | 2.90 | € | 3.50 |
(1) | Amounts are calculated by multiplying unaudited Prisa pro forma combined per share amounts by 1.5, the Prisa Class A ordinary share exchange ratio in the transaction. |
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Prisa | ||||||||||||||||||||||||
Ordinary Shares | Liberty | |||||||||||||||||||||||
Euros per | Exchange | U.S. Dollars | Common | |||||||||||||||||||||
Date | Share | Rate ($/€) | per Share | Units | Stock | Warrants | ||||||||||||||||||
(U.S. dollars per security) | ||||||||||||||||||||||||
February 24, 2010 | € | 3.38 | 1.35 | $ | 4.58 | $ | 10.39 | (1) | $ | 9.73 | $ | 0.61 | (2) | |||||||||||
March 4, 2010 | € | 3.26 | 1.36 | $ | 4.43 | $ | 10.37 | $ | 9.79 | $ | 0.62 | |||||||||||||
May 6, 2010 | € | 2.54 | 1.26 | $ | 3.20 | $ | 10.70 | (3) | $ | 9.98 | $ | 1.25 | ||||||||||||
August 3, 2010 | € | 2.29 | 1.32 | $ | 3.03 | $ | 10.40 | (4) | $ | 9.95 | $ | 1.22 | ||||||||||||
[ l ], 2010 | € | [ l ] | [ l ] | $ | [ l ] | $ | [ l ] | $ | [ l ] | $ | [ l ] |
(1) | The closing sales price on February 19, 2010 was used as no trades occurred on February 23 or 24, 2010. | |
(2) | The closing sales price for warrants on February 23, 2010. | |
(3) | The closing sales price on May 5, 2010 was used as no trades occurred on May 6, 2010. | |
(4) | The closing sales price on August 2, 2010 was used as no trades occurred on August 3, 2010. |
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High | Low | Average(1) | Period End | |||||||||||||
(U.S. dollars per euro) | ||||||||||||||||
Annual Data (Year Ended December 31) | ||||||||||||||||
2005 | 1.347 | 1.167 | 1.244 | 1.184 | ||||||||||||
2006 | 1.334 | 1.182 | 1.257 | 1.319 | ||||||||||||
2007 | 1.487 | 1.289 | 1.371 | 1.459 | ||||||||||||
2008 | 1.599 | 1.245 | 1.471 | 1.397 | ||||||||||||
2009 | 1.513 | 1.253 | 1.395 | 1.433 |
High | Low | Average(1) | Period End | |||||||||||||
(U.S. dollars per euro) | ||||||||||||||||
Interim Data (Six Months Ended June 30) | ||||||||||||||||
2010 | 1.451 | 1.192 | 1.314 | 1.224 |
(1) | The average rates for the interim and annual periods were calculated by taking the simple average of the exchange rates on the last business day of each month during the relevant period. |
High | Low | |||||||
(U.S. dollars per euro) | ||||||||
Recent Monthly Data | ||||||||
January 2010 | 1.451 | 1.386 | ||||||
February 2010 | 1.396 | 1.351 | ||||||
March 2010 | 1.377 | 1.327 | ||||||
April 2010 | 1.369 | 1.312 | ||||||
May 2010 | 1.320 | 1.218 | ||||||
June 2010 | 1.239 | 1.192 | ||||||
July 2010 | 1.308 | 1.253 | ||||||
August 2010 | 1.328 | 1.263 | ||||||
September 2010 | 1.364 | 1.268 |
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• | the occurrence of any event, change or other circumstances that could give rise to the termination of the business combination agreement; | |
• | the outcome of any legal proceedings that may be instituted against Prisa, Liberty and others following announcement of the business combination agreement and transactions contemplated therein; | |
• | the inability to complete the transactions contemplated by the business combination agreement due to the failure to obtain Liberty stockholder approval, Liberty warrantholder approval or Prisa shareholder approval; | |
• | delays in obtaining, adverse conditions contained in, or the inability to obtain necessary regulatory approvals required to complete the transactions contemplated by the business combination agreement; | |
• | the risk that the proposed business combination disrupts current plans and operations of Prisa as a result of the announcement and consummation of the transactions contemplated by the business combination agreement; | |
• | the ability to recognize the anticipated benefits of the combination of Prisa and Liberty; | |
• | costs related to the proposed business combination; | |
• | the fluctuation of the market value of ordinary shares of Prisa; | |
• | the limited liquidity and trading of Liberty’s securities; | |
• | geopolitical risk and changes in applicable laws or regulations; | |
• | the possibility that Prisaand/or Liberty may be adversely affected by other economic, business,and/or competitive factors; | |
• | Liberty’s ability to complete a business combination with one or more target businesses, including the business combination with Prisa; | |
• | Liberty’s limited pool of prospective target businesses, including if the proposed business combination fails to close; | |
• | financial performance; | |
• | operational risk; |
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• | litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on Prisa’s resources; | |
• | fluctuations in exchange rates in the various countries in which Prisa operates and in the exchange rate used to convert U.S. dollars to euros, in particular; | |
• | foreign currency risk as a result of fluctuations in the various currencies in which Prisa’s bank borrowings and debts to third parties are denominated; and | |
• | the risks that the closing of the business combination is substantially delayed or does not occur. |
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• | increasing Prisa’s vulnerability to general economic downturns and adverse industry conditions; | |
• | requiring a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on the indebtedness, therefore reducing Prisa’s ability to use its cash flow to fund its operations, capital expenditures and future business operations; | |
• | exposing Prisa to the risk of increased interest rates as most of the borrowings are at variable rates of interest; and | |
• | limiting Prisa’s ability to adjust to changing market conditions and placing Prisa at a disadvantage compared to competitors who have less debt. |
• | apply the proceeds from the Santillana transaction (which was completed on April 29, 2010) in accordance with the terms of the refinancing master agreement; | |
• | provide evidence that Prisa has completed the disposal of a minority interest in Media Capital; | |
• | consummate the business combination and receive proceeds therefrom of not less than €450.0 million at an agreed euro to dollar exchange rate of 1.364 ($613.8 million); and | |
• | to the extent that a new pledge of shares of Digital+ and Telecinco has been granted, provide evidence that such pledge agreements have been executed. |
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• | the possible devaluation of foreign currencies or introduction of exchange restrictions, or other restrictions imposed on the free flow of capital across borders; | |
• | the potential effects of inflationand/or the possible devaluation of local currencies, which could lead to equity deficits at Prisa subsidiaries operating in these countries and require Prisa either to recapitalize the affected subsidiaries orwind-up the operations of any such affected subsidiary; | |
• | the potential for foreign government expropriation or nationalization of Prisa’s foreign assets; | |
• | the potential for substantial changes in applicable foreign tax levels or the introduction of new foreign taxes or levies; | |
• | the possibility of changes in policiesand/or regulations affecting the economic climate or business conditions of the foreign markets in which Prisa operates; and | |
• | the possibility of economic crises, economic instability or public unrest, which could have an adverse effect on Prisa’s operations in those countries. |
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• | Prisa’s ability to stimulate pay television consumption, win new subscribers and increase the rate of penetration of pay television among homes with televisions; and | |
• | Prisa’s ability to ensure the future continuity of the supply of television programming produced by third parties. |
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• | a limited availability for market quotations for Prisa’s securities; | |
• | reduced liquidity with respect to Prisa’s securities; | |
• | a determination that Prisa’s ADSs are a “penny stock” which will require brokers trading in Prisa ADSs to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for Prisa ADSs; | |
• | limited amount of news and analyst coverage for Prisa in the United States; and | |
• | a decreased ability to issue additional securities or obtain additional financing in the future. |
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• | as contemplated by Liberty’s IPO prospectus, since Liberty is seeking approval from its stockholders to consummate the business combination within 90 days of December 12, 2010, this proxy statement/prospectus also seeks stockholder approval for Liberty’s dissolution and its board’s recommended plan of distribution; |
• | Liberty’s board of directors has, consistent with its obligations described in Liberty’s restated certificate of incorporation, adopted a resolution for Liberty to dissolve and adopted a plan of distribution which it has determined to recommend to its stockholders; and |
• | you are also being asked to consider the liquidation proposal to dissolve Liberty in accordance with Delaware law and approve the proposed plan of distribution in, or substantially in, the form of Annex O to this proxy statement/prospectus; |
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• | delays in the payment, or arrangement for payment or compromise, of remaining Liberty liabilities or obligations; | |
• | lawsuits or other claims asserted against Liberty; and | |
• | unanticipated legal, regulatory or administrative requirements. |
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SPECIAL MEETING OF LIBERTY STOCKHOLDERS
• | The Reincorporation Proposal—a proposal to change Liberty’s state of incorporation from Delaware to Virginia by means of the merger of Liberty into Liberty Virginia, a Virginia corporation and wholly owned subsidiary of Liberty, whose articles of incorporation and bylaws will become the articles of incorporation and bylaws of the surviving corporation upon completion of the reincorporation merger |
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(included in this proxy statement/prospectus as Annexes E and G, respectively), pursuant to the agreement and plan of merger included in this proxy statement/prospectus as Annex H. |
• | The Business Combination Proposal—a proposal to approve a business combination by the approval and adoption of the business combination agreement pursuant to which each outstanding share of Liberty common stock will be exchanged for either, at the option of the stockholder, $10.00 in cash or the following mixed consideration: (i) 1.5 newly created Prisa Class A ordinary shares, (ii) 3.0 newly created Prisa Class B convertible non-voting shares and (iii) $0.50 in cash, as well as cash in lieu of any fractional shares. A holder may make a cash election or a mixed consideration election with respect to any or all of its shares. The Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares will be represented by Prisa ADSs, with each Prisa ADS-A representing 4 Prisa Class A ordinary shares and each Prisa ADS-NV representing 4 Prisa Class B convertible non-voting shares. Prisa will not be required to complete the business combination if holders of Liberty common stock elect to receive the $10 per share cash alternative or exercise the redemption rights provided for in Liberty’s restated certificate of incorporation for a total of more than 80 million shares of Liberty common stock. The vote to approve the business combination proposal will include approval and adoption of (i) the business combination agreement, (ii) the agreement and plan of merger included in this proxy statement/prospectus as Annex H, providing for the reincorporation merger and (iii) the plan of share exchange included as Annex I to this proxy statement/prospectus, providing for the share exchange pursuant to which Liberty Virginia, the surviving corporation in the reincorporation merger, will become a wholly owned subsidiary of Prisa and the shareholders of Liberty Virginia will receive Prisa Class A ordinary shares, convertible Class B non-voting shares and/or cash in exchange for their shares in Liberty Virginia. Unless the reincorporation proposal is approved at the special meeting of stockholders, the business combination proposal will not be presented to stockholders of Liberty. |
• | The Liquidation Proposal—a proposal to dissolve Liberty in accordance with Delaware law and approve the proposed plan of distribution in, or substantially in, the form of Annex O to this proxy statement/prospectus, which proposal may be abandoned by Liberty’s board of directors, notwithstanding approval of such proposal by Liberty’s stockholders, as described in this proxystatement/prospectus. |
• | The Stockholder Adjournment Proposal—a proposal to authorize the adjournment or postponement of the special meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies in the event there are insufficient votes at the time of the special meeting of stockholders to adopt the reincorporation proposals, the business combination proposal and/or the liquidation proposal. |
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• | the warrant agreement amendment is in the best interests of Liberty and its warrantholders and unanimously approved the warrant agreement amendment and unanimously recommends that Liberty warrantholders vote or instruct that their vote be cast “FOR” the warrant amendment proposal; | |
• | each of the reincorporation merger and the business combination agreement is advisable and is fair to and in the best interests of Liberty and its stockholders and unanimously recommends that Liberty stockholders vote or instruct that their vote be cast “FOR” the reincorporation proposal, “FOR” the business combination proposal and “FOR” the stockholder adjournment proposal; | |
• | the business combination is a permitted “Business Combination” under Liberty’s restated certificate of incorporation; and |
• | the liquidation proposal is in the best interests of Liberty and its stockholders and unanimously recommends that stockholders vote or instruct that their vote be cast “FOR” the approval of the liquidation proposal. |
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• | you can vote by signing and returning the enclosed proxy card. If you vote by proxy card, your “proxy,” whose name is listed on the proxy card, will vote your warrants as you instruct on the proxy card. If you sign and return the proxy card, but do not give instructions on how to vote your warrants, your warrants will be voted, as recommended by Liberty’s board, “FOR” the approval of the warrant amendment proposal; or | |
• | you can attend the special meeting and vote in person. Liberty will give you a ballot when you arrive. However, if your warrants are held in the name of your broker, bank or another nominee, you must get a proxy from the broker, bank or other nominee. That is the only way Liberty can be sure that the broker, bank or nominee has not already voted your warrants. |
By Regular Mail: | By Overnight Courier: | |
Citibank, N.A. Corporate Actions P.O. Box 43011 Providence, RI 02940-3011 | Citibank, N.A. Corporate Actions 250 Royall Street Attn.: Suite V Canton, MA 02021 |
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• | you can vote by signing and returning the enclosed proxy card. If you vote by proxy card, your “proxy,” whose name is listed on the proxy card, will vote your shares as you instruct on the proxy card. If you sign and return the proxy card, but do not give instructions on how to vote your shares, your shares will be voted, as recommended by Liberty’s board, “FOR” the approval of the reincorporation proposal, the business combination proposal and the stockholder adjournment proposal; or | |
• | you can attend the special meeting and vote in person. Liberty will give you a ballot when you arrive. However, if your shares are held in the name of your broker, bank or another nominee, you must get a proxy from the broker, bank or other nominee. That is the only way Liberty can be sure that the broker, bank or nominee has not already voted your shares. |
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• | cash in the amount of $0.90 to be paid by or at the direction of Liberty Virginia; and | |
• | 0.45 newly created Prisa Class A ordinary shares. |
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By Regular Mail: | By Overnight Courier: | |
Citibank, N.A. Corporate Actions P.O. Box 43011 Providence, RI 02940-3011 | Citibank, N.A. Corporate Actions 250 Royall Street Attn.: Suite V Canton, MA 02021 |
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Delaware | Virginia | |
CORPORATE GOVERNANCE | ||
Liberty’s restated certificate of incorporation, its bylaws and Delaware law, including the DGCL, govern the rights of holders of Liberty common stock. | Liberty Virginia’s amended and restated articles of incorporation, its bylaws and Virginia law, including the VSCA, will govern the rights of holders of Liberty Virginia common stock. | |
ACTION BY WRITTEN CONSENT | ||
Unless the certificate of incorporation of a Delaware corporation otherwise provides, the DGCL permits the stockholders of a Delaware corporation to act by written consent in lieu of annual or special meeting of stockholders, provided that the holders of the outstanding stock having not less than the minimum number of votes that would be necessary to authorize such action at a meeting at which all shares entitled to vote thereon were present in person and voted. | The VSCA provides that shareholders may act by written consent if all shareholders entitled to vote on the action deliver such consents, provided, however, that the articles of incorporation of a corporation that is not a public corporation at the time of the corporate action may provide that shareholders may act by written consent if holders of outstanding shares having not less than the minimum number of votes that would be required to adopt or take action at a meeting at which all shares entitled to vote on the action were present and voted deliver such consents. | |
Liberty’s restated certificate of incorporation prohibits its stockholders from acting by written consent in lieu of a meeting of stockholders from and after the consummation of its IPO. | Liberty Virginia’s post-reincorporation merger articles of incorporation provide that prior to the consummation of a “business combination” as defined in Liberty Virginia’s articles of incorporation, any action that is required or permitted to be adopted or taken at a shareholders’ meeting may be taken by all | |
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Delaware | Virginia | |
the shareholders entitled to vote on the action by written consent. From and after the consummation of a “business combination,” any action that is required or permitted to be adopted or taken at a shareholders’ meeting may be adopted or taken without a meeting, and without prior notice by written consents signed by holders of outstanding shares having not less than the minimum number of votes that would be required to adopt or take the action at a meeting at which all shares entitled to vote on the action were present and voted. | ||
SPECIAL MEETINGS OF STOCKHOLDERS | ||
Liberty’s bylaws provide that special meetings of Liberty stockholders may be called only in the following ways: • by a majority of the entire board of directions; • by the chief executive officer; • by the secretary following the request in writing of Liberty stockholders owning a majority in amount of the entire capital stock of Liberty issued and outstanding and entitled to vote, which request must state the purpose or purposes of the proposed meeting. | Liberty Virginia’s bylaws provide that special meetings of the stockholders may be called only in the following ways: • by a majority of the entire board of directions; • by the chairman of the board, the vice-chairman of the board or the chief executive officer; • by shareholders together holding a least a majority of the number of shares of Liberty Virginia at the time outstanding and entitled to vote with respect to the business to be transacted at such meeting. The notice of the special meeting must state the purpose or purposes of the special meeting. | |
STOCKHOLDER PROPOSALS AND NOMINATIONS | ||
Liberty’s bylaws provide that business may be transacted at an annual meeting of stockholders only if such business is (i) specified in the notice of the special meeting given by or at the direction of the board of directors or a committee of the board of directors, (ii) otherwise brought before the annual meeting by or at the direction of the board of directors or a committee of the board of directors, or (iii) brought before the meeting by a Liberty stockholder who is a stockholder of record on the date of the giving of notice of the annual meeting to Liberty stockholders and on the record date for the determination of Liberty stockholders entitled to vote at such annual meeting and who complies with the procedures described below. Liberty’s bylaws provide that a stockholder submitting proposed business to be considered at an annual meeting of Liberty’s stockholders must deliver a written notice to Liberty’s secretary no later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the | Liberty Virginia’s bylaws do not provide for the submission of stockholder proposals for the transaction of business at meetings of Liberty Virginia’s stockholders. |
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Delaware | Virginia | |
preceding year’s annual meeting of stockholders. The notice must set forth as to each matter such stockholder proposes to bring before the annual meeting: | ||
• a brief description of the business the stockholder desires to bring before the annual meeting and the reasons for conducting such business at the annual meeting; | ||
• the name and record address of such stockholder; | ||
• the class or series and number of shares of capital stock of Liberty which such stockholder owns, beneficially or of record; | ||
• a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by the proposing stockholder and any material interest of such stockholder in such business; and | ||
• a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting. | ||
Liberty’s bylaws provide that persons may be nominated for election as directors of Liberty at an annual meeting of stockholders or a special meeting of stockholders called for the purpose of electing directors only (i) by or at the direction of the board of directors or any committee of the board of directors or (ii) by a Liberty stockholder who is a stockholder of record on the date of the giving of notice of the meeting to Liberty stockholders and on the record date for the determination of Liberty stockholders entitled to vote at such meeting and who complies with the procedures described below. Liberty’s bylaws provide that a stockholder making a nomination of a person for election to the board of directors at an annual meeting of stockholders or a special meeting of stockholders called for the purpose of elected directors must deliver written notice to Liberty’s secretary no later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year’s annual meeting of stockholders, in the case of an annual meeting of stockholders, and not later than the 10th day following the day on which notice of the date of the special meeting of stockholders was mailed or public disclosure of the date of special meeting of stockholders was made, whichever occurs first, in the case of a special |
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Delaware | Virginia | |
meeting of stockholders called for the purpose of electing directors. In addition, any stockholder desiring to nominate any person for election as director must deliver a notice that sets forth (a) as to each person whom the stockholder proposes to nominate for election as a director: | ||
• the name, age, business address and residence address of the person; | ||
• the person’s principal occupation or employment; | ||
• the class or series and number of shares of capital stock of Liberty which such the person owns beneficially or of record; and | ||
• any other information relating to the person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder; | ||
and (b) as to the stockholder giving notice of the proposed nomination of a director: | ||
• the name and record address of the stockholder; | ||
• the class or series and number of shares of Liberty’s capital stock which are beneficially owned or owned of record by the stockholder; | ||
• a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder; | ||
• a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice; and | ||
• any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder. | ||
The stockholder’s notice must be accompanied by a written consent of each proposed nominee to being named as a nominee and to serve as a director if elected. |
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Delaware | Virginia | |
DIRECTOR LIABILITY AND INDEMNIFICATION | ||
Liberty’s restated certificate of incorporation provides that a director of Liberty shall not be personally liable to Liberty or its stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted by the DGCL as the same exists or may hereafter be amended. Liberty’s restated certificate of incorporation provides that any amendment, repeal or modification of this provision by the stockholders of Liberty or otherwise shall not adversely affect any right or protection of a director of Liberty with respect to any act or omission occurring prior to the time of such amendment, repeal or modification. Liberty’s restated certificate of incorporation further provides that, to the fullest extent permitted by the DGCL, Liberty must indemnify and hold harmless, any person, such person referred to as a “covered person”, who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “proceeding”), by reason of the fact that he or she is a legal representative, is or was a director or officer of Liberty, or, while serving as an officer or director of Liberty is or was serving at the request of Liberty as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, other enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys’ fees) reasonably incurred by such covered person. Nonetheless, Liberty is required to indemnify a covered person in connection with a proceeding (or part thereof) that such covered person commences only if Liberty’s board of directors, in the specific case, has authorized the commencement of such proceedings. Liberty’s restated certificate of incorporation provides that to the fullest extent permitted by the DGCL, as the same exists or may hereafter be amended, Liberty must pay all expenses that a covered person incurs (including attorneys’ fees) in defending any proceeding. Liberty must do so in advance of the final disposition of such proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount if it shall ultimately be determined that he or she is not entitled to be indemnified by Liberty as authorized by Liberty’s restated certificate of incorporation. | The VSCA provides that a corporation may indemnify an individual made a party to a proceeding because he is or was a director against liability incurred in the proceeding if the director conducted himself in good faith and believed (i) in the case of conduct in his official capacity with the corporation, that his conduct was in its best interests; and (ii) in all other cases, that his conduct was at least not opposed to its best interests. In the case of any criminal proceeding, the director must have had no reasonable cause to believe his conduct was unlawful. The VSCA further provides that a corporation may not indemnify a director in connection with a proceeding by or in the right of the corporation (except for reasonable expenses incurred in connection with the proceeding if it is determined that the director has met the relevant standard of conduct) or in connection with any other proceeding charging improper personal benefit to the director, whether or not involving action in his official capacity, in which he was adjudged liable on the basis that personal benefit was improperly received by him. The VSCA further provides that unless limited by its articles of incorporation, a corporation shall indemnify a director who entirely prevails in the defense of any proceeding to which he was a party because he is or was a director of the corporation against reasonable expenses incurred by him in connection with the proceeding. A corporation may pay for or reimburse the reasonable expenses incurred by a director who is a party to a proceeding in advance of final disposition of the proceeding if the director certifies to the corporation his good faith belief he has met the relevant standard of conduct and if the director furnished the corporation a signed written general undertaking to repay any funds advanced if the director is not entitled to mandatory indemnification and it is ultimately determined that the director has not made a relevant standard of conduct. A director may also apply to a court for an order directing the corporation to make advances or reimbursement for expenses or to provide indemnification. The court shall order the corporation to make advances and/or reimbursement for expenses or to provide indemnification if it determined that the director is entitled to such payments. The VSCA gives corporations the right to provide for authorization of indemnification or advances or |
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Delaware | Virginia | |
reimbursement of expenses in its articles of incorporation or bylaws; however, Liberty Virginia’s post- reincorporation merger articles of incorporation or bylaws do not contain any provisions relating to indemnification of an advancement or reimbursement of expenses to its directors. | ||
LIMITATIONS ON DIRECTOR LIABILITY | ||
The DGCL does not permit the elimination of liability of a director or officer for the following: (1) breach of duty of loyalty, (2) acts not in good faith or which involve intentional misconduct or a knowing violation of the law, (3) unlawful payment of dividends or unlawful stock repurchases or (4) transactions involving improper personal benefit. | The VSCA provides that directors and officers are not generally liable for their actions in their capacities as officers and directors except for (1) willful misconduct, (2) knowing violation of criminal or securities laws, including any claim of unlawful insider trading or manipulation of the market for any security and (3) unlawful distributions. | |
TRANSACTIONS WITH INTERESTED STOCKHOLDERS | ||
Liberty is governed by the provisions of Section 203 of the DGCL, which generally has an anti-takeover effect for transactions not approved in advance by its board of directors. This may discourage takeover attempts that might result in payment of a premium over the market price for the shares of common stock held by stockholders. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the time that such stockholder becomes an interested stockholder, unless certain conditions are met as described below. A “business combination” includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within three years prior to the determination of interested stockholder status, 15% or more of the corporation’s voting stock. | Under the VSCA, a Virginia corporation may not enter into an “affiliated transaction” with a shareholder who acquires beneficial ownership of more than 10% of a corporation’s outstanding voting shares (such person an “interested shareholder”) for a period of three years after the person becomes an interested shareholder unless (i) the transaction is approved by a majority vote of disinterested directors and bytwo-thirds of the disinterested shareholders or (ii) it meets certain exceptions. These exceptions include, among others, that the affiliated transaction is with an interested shareholder whose acquisition of voting shares making such person an interested shareholder was approved by a majority of the disinterested directors prior to date on which an interested shareholder became an interested shareholder. The amended and restated articles of incorporation of Liberty Virginia contain an election to not be governed by this provision. | |
Under Section 203 of the DGCL, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions: | ||
• the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder before the stockholder became an interested stockholder; | ||
• upon consummation of the business combination which resulted in the stockholder becoming an |
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interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are both directors and officers, and employee stock plans (in certain instances); or | ||
• at or after the time the stockholder became an interested stockholder: (1) the board of directors of the corporation approved the business combination and (2) the stockholders, at an annual or special meeting (and not by written consent), approved the business combination by an affirmative vote of at leasttwo-thirds of the outstanding voting stock which is not owned by the interested stockholder. | ||
LIMITATION OF VOTING RIGHTS | ||
Delaware has no provision similar to the Virginia control share acquisition provision. | The VSCA has a control share acquisition provision which limits the voting rights of stockholders who hold 20%, 331/3, 50% or more of the corporation’s voting stock, subject to certain exceptions, including if the corporation elects in its articles of incorporation to not be governed by this provision of the VSCA. The amended and restated articles of incorporation of Liberty Virginia contain an election to not be governed by this provision. |
STOCKHOLDERS VOTE “FOR” THE APPROVAL OF THE REINCORPORATION
PROPOSAL.
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Assumed market | ||||
Prisa ordinary | value of mixed | |||
share price | consideration | |||
€1.98 | $ | 12.09 | ||
€2.00 | $ | 12.12 | ||
€1.75 | $ | 11.64 | ||
€1.50 | $ | 11.16 | ||
€1.25 | $ | 9.38 | ||
€1.00 | $ | 7.60 |
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• | Prisa’s leading market positions across several businesses and geographic markets, including audiovisual, publishing, newspapers and magazines and radio; | |
• | the belief by Liberty’s board of directors that Prisa’s diversity of businesses and growth prospects and the quality and strength of Prisa’s management team will provide Liberty’s stockholders with a unique opportunity to acquire, and participate in, an established company with not only leading market positions across several business segments and geographic markets, but with significant growth potential, particularly in Latin America, the United States and other dynamic global markets; | |
• | information with respect to the financial condition, results of operations and businesses of Prisa, on both an historical and prospective basis. Liberty’s board of directors believes that Prisa has strong brands, providing it with a leading market position in several businesses and geographies, and a proven ability to grow its operations, including the infrastructure necessary for additional growth; | |
• | its view of the ability of Prisa to expand its business both in existing and new markets. Prisa’s management believes that there are significant opportunities for Prisa to expand its businesses geographically into Latin America, the United States and other dynamic global markets, as well as opportunities to expand Prisa’s business in its existing markets; | |
• | the fact that it is a condition to the obligations of the parties to effect the business combination that Prisa has successfully restructured its existing debt obligations of approximately €4.84 billion. In connection with such debt restructuring, Prisa will need to complete the proposed asset dispositions described elsewhere in this proxy statement/prospectus. In connection with reaching its conclusion regarding this factor, Liberty’s board reviewed pro forma financial information that gave effect to the debt restructuring, asset dispositions and the consummation of the business combination upon the terms described herein. Based upon its review of such pro forma financial information, Liberty’s board believes that if Prisa is able to successfully restructure its existing debt and complete the proposed asset dispositions, then following the consummation of the business combination, Prisa will be significantly deleveraged and have more favorable debt terms, which should, among other things, allow management to focus on growth strategy and enhance the capital and liquidity available to support such strategy. Prisa has entered into various agreements regarding such asset dispositions and anticipates closing such transactions prior to the end of 2010. However, there can be no assurances that all of such transactions will be completed. Liberty’s board of directors was aware of this, which is why the business combination agreement contains a condition that the debt restructuring occur substantially simultaneously with the closing of the business combination; | |
• | the significant increase in the market float and market capitalization of Prisa as a result of the business combination, including diversifying Prisa’s investor base towards the U.S. market, which Liberty’s board of directors believes will attract a new investor base for Prisa; | |
• | the attractive valuation at which the stockholders of Liberty will be acquiring Prisa shares, including the fact that when the original business combination agreement was entered into on March 5, 2010, the price was at a five percent discount to the30-day trading high of Prisa’s ordinary shares, a 21% discount to the 52-week trading high of Prisa’s ordinary shares and an 80% discount to the three-year trading high of Prisa’s ordinary shares. Liberty’s board of directors took note of the fact that the exchange ratio was fixed and would not fluctuate based upon changes in the price of Prisa’s ordinary shares between the date of the signing of the original business combination agreement and the closing |
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date of the proposed business combination. To that end, Liberty’s board of directors and Prisa renegotiated the exchange ratio two times to, among other things, take into account changes in the exchange rate and the market price of Prisa’s ordinary shares following the signing of the original business combination agreement. Liberty’s board believes that the current exchange ratio and other terms of the consideration to be received by Liberty’s stockholders are attractive because they provide even more Prisa shares to Liberty’s stockholders and the revised terms of the Prisa Class B convertible non-voting shares provide that they will (i) be immediately convertible by the holders thereof, (ii) have protection against reductions in the market price of Prisa’s ordinary shares in the case of automatic conversion 42 months after the consummation of the business combination (by increasing the conversion ratio of such shares in the event the volume weighted average price of the Prisa Class A ordinary shares during the twenty trading days preceding conversion falls below €2.00 per share) and (iii) provide for greater likelihood of payment of dividends on such shares; and |
• | the Liberty board’s belief that the business combination with Prisa was preferable to any other transaction available to Liberty at the time the original business combination agreement was entered into to enhance stockholder value. At the time that Liberty’s board approved the original business combination agreement any other transactions that may have been available to Liberty were at a very preliminary stage, and at the time Liberty’s board approved the amended and restated business combination agreement no other transactions were available to Liberty. Specifically, prior to the time that Liberty’s board approved the original business combination agreement, Liberty had not made any meaningful progress in negotiating a business combination with any other party, but rather, had only entered into non-disclosure agreements with four companies: aU.S.-based securities and investment banking firm, aU.K.-based investment management company, an international fashion company and an entertainment production and distribution company. Prior to the time that Liberty’s board approved the original business combination agreement, Liberty had only proceeded as far as delivering an indicative term sheet to one such company (the fashion company) and discussions with such company had terminated. In considering the original proposed business combination with Prisa, Liberty’s board considered that, although Liberty had a limited amount of time to conduct its investigation, Prisa had provided Liberty and its advisors with access to Prisa’s books, records and management so as to permit Liberty and its advisors to conduct a satisfactory due diligence investigation of Prisa in light of its being a public company. Over the course of time leading up to the amended and restated business combination agreement, Liberty and its advisors had substantial and additional time and continued access to Prisa’s books, records and management so as to permit Liberty and its advisors to continue and update their due diligence review. Accordingly, Liberty believes that its due diligence investigation was consistent with the disclosure in Liberty’s IPO prospectus that Liberty’s sponsors would use the same disciplined approach in acquiring target businesses on Liberty’s behalf as they use in connection with their private equity investing, and would engage in extensive due diligence from the perspective of a long-term investor. |
• | the regulatory environment for Prisa and its businesses in Spain, Europe, Latin America and the United States, including compliance and internal auditing requirements, business codes of conduct, restrictions on changes of control, consumer complaints and compensation and anti-money laundering regulations and procedures; | |
• | the terms and conditions of the original business combination agreement, the amended and restated business combination agreement and related transaction documents; and | |
• | the results of Liberty’s and its advisors legal, financial and accounting due diligence review of Prisa, including on aspects of Prisa’s operations and corporate structure, regulatory oversight, banking and |
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finance relationships, employment matters, intellectual property, information technology and data protection, litigation, real estate, pensions and tax issues. |
• | the competitive nature of the media business in general, and in the markets in which Prisa operates, including the likelihood of industry consolidation and increased competition, and the fact that Prisa may not be able to achieve the anticipated growth in the markets in which it currently operates, the United States and other markets; | |
• | the possibility that the benefits anticipated from the business combination, including the proposed debt restructuring and the asset dispositions, might not be achieved or might not occur as rapidly or to the extent or on the same terms as currently anticipated; | |
• | the risk that Prisa might not perform on a prospective basis as well as it has performed historically; | |
• | the risk that the current public stockholders of Liberty would either elect to receive cash for their shares of Liberty common stock pursuant to the cash election alternative or vote against the business combination and exercise their redemption rights in connection with the business combination, thereby reducing the amount of cash available to Prisa from Liberty’s trust fund following the business combination if in excess of $225 million is required to satisfy these requirements (which amount up to $225 million would come from the sale of Liberty’s preferred stock); | |
• | as described under “Proposals to be Considered by the Liberty Stockholders — The Business Combination Proposal — Interests of Liberty’s Directors and Executive Officer in the Business Combination,” the interests of Liberty’s directors and executive officer in the business combination, which interests are different from, or in addition to, the interests of Liberty’s stockholders and warrantholders, including: |
• | Liberty’s restated certificate of incorporation provides that if no business combination is consummated by December 12, 2010, Liberty is required to begin the dissolution process provided for in Liberty’s restated certificate of incorporation and, in the event of a dissolution, the Liberty shares and warrants held by Liberty’s founders and Liberty’s sponsors will become worthless; | |
• | Prisa expects that Mr. Martin Franklin and Mr. Nicolas Berggruen will join Prisa’s board of directors in connection with the business combination; | |
• | Mr. Nicolas Berggruen and Mr. Martin Franklin, each of whom controls one of Liberty’s sponsors and is a member of Liberty’s board of directors, have agreed that, if Liberty dissolves prior to the consummation of a business combination, they will personally jointly and severally indemnify Liberty for any and all loss, liability, claim, damage and expense which it may become subject to as a result of a claim by any vendor, prospective target business or other entity that is owed money by Liberty for services rendered or products sold to the extent necessary to ensure that such loss, liability, claim, damage or expense does not reduce the amount of funds held in Liberty’s trust account; | |
• | Mr. Nicolas Berggruen and Mr. Martin Franklin have agreed that they will personally, jointly and severally indemnify Prisa for any and all loss, liability, obligation, damage, cost, expense, fine or penalty, interest, tax, assessment, judgment or deficiency of any nature whatsoever (which we refer to collectively as damages) which Prisa may become subject to as a result of or in connection with the business combination regardless of whether the damages arise at, before or after the closing and are based on circumstances existing on or before the closing related to any liabilities of Liberty, excluding claims arising from, as a result of or in connection with Liberty entering into the business combination. Messrs. Berggruen’s and Franklin’s indemnification obligations are subject to certain thresholds for individual claims, a deductible and a limit on their total liability, and they are limited to claims for indemnification made by Prisa prior to March 5, 2015. |
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• | the fact that, consistent with other comparable transactions involving publicly traded companies, there are no post closing indemnification obligations set forth in the business combination agreement. |
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• | Mr. Franklin has served as chairman and chief executive officer of Jarden Corporation, a broad-based consumer products company, since 2001, where he has presided over numerous acquisitions as well as being actively involved in operational management. Mr. Franklin also serves on the board of directors of GLG Partners, Inc., a leading alternative asset manager, and Kenneth Cole Productions, Inc. and served as chairman of Liberty Acquisition Holdings (International) Company, another blank check company, from January 2008 until its acquisition of the Pearl Group in September 2009. | |
• | Mr. Berggruen founded what became Berggruen Holdings, Inc. in 1984 to act as investment advisor to a Berggruen family trust that has made over 50 control and non-control direct investments in operating businesses since 1984. Mr. Berggruen has served as the president of Berggruen Holdings, Inc. since its inception. In 1984 he also co-founded Alpha Investment Management, a multi-billion dollar hedge fund management company that was sold to Safra Bank in 2004. Mr. Berggruen also served on the board of directors of Liberty Acquisition Holdings (International) Company, another blank check company, from January 2008 until its acquisition of the Pearl Group in September 2009. | |
• | Mr. Hauslein has served as President of Hauslein & Company, a private equity firm, since May 1991. From July 1991 to April 2001, he served as Chairman of Sunglass Hut International, Inc., where he presided over numerous acquisitions and was actively involved in operational management. Mr. Hauslein has also served as a director of two other blank check companies formed to complete business combinations with operating businesses, and currently serves as a director of GLG Partners, a leading alternative asset manager, and Promethean India plc, a listed private equity and investment management business. | |
• | Mr. Gantcher has served as a Managing Member of EXOP Capital LLC, a private investment firm, since 2005. From 2002 to 2004, he served as Co-chairman and CEO of Alpha Investment Management LLC until it was sold to Safra National Bank. From 1997 to 2002, Mr. Gantcher served as the Vice Chairman of CIBC World Markets Corporation, the U.S. Section broker/dealer of Canadian Imperial Bank of Commerce (CIBC). CIBC acquired Oppenheimer & Company in November 1997. He is a director of Mack-Cali Realty Corporation, a real estate investment trust, and Liquidnet Holdings, an electronic marketplace for institutional investors. | |
• | Mr. Guenther served as President of PaineWebber Group, Inc. from January 1994 until his retirement in April 1995. Mr. Guenther served as President of PaineWebber Incorporated from December 1988 until January 1994. Mr. Guenther also currently chairs the Investment Committee of the board of directors of The Guardian Life Insurance Company, is the Chairman of Community & Southern Holding, Inc., a regional bank located in Georgia, and is a member of the board of directors of RS Investments, an investment management firm. |
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Business Combination Provision | IPO Prospectus Disclosure | |
Liberty will not be the surviving parent corporation in the business combination; rather, the outstanding securities of Liberty will be exchanged for cash and securities of Prisa and Liberty will become a wholly-owned subsidiary of an existing public company with operating businesses. | The prospectus stated that Liberty was formed to acquire a then currently unidentified operating business through a merger, stock exchange, asset acquisition, reorganization or similar business combination, and that Liberty would not become a holding company for a minority interest in a target business. | |
Although holders of Liberty securities prior to the business combination will in all cases own more than 50% of the equity interests of Prisa upon consummation of the business combination, the former Liberty security holders may hold less than 50% of the total voting power of Prisa immediately following the business combination (and Liberty itself will not acquire any Prisa securities). | The prospectus stated that if Liberty were to acquire less than 100% of a target business Liberty would only do so if it acquired greater than 50% of the outstanding equity interests or voting power of one or more target businesses. | |
Liberty’s sponsors’ co- investment obligations to acquire a total of 6 million Liberty units at $10.00 per unit has been waived in connection with the business combination as the conditions to the proposed business combination limited the amount of securities that Prisa was willing to issue to Liberty’s security holders as a whole. The Liberty sponsors have agreed to purchase $50 million of Liberty’s preferred stock, which, to the extent that holders of Liberty common stock exercise their redemption rights or elect to receive the $10.00 cash alternative in the business combination, would be exchanged in the business combination for Prisa securities through a mechanism resulting in less dilution to Liberty’s public stockholders than the resulting dilution if the co-investment were to have been required. | The prospectus stated that the proceeds from the sale of the co-investment units would provide Liberty with additional equity capital to fund a business combination, and stated Liberty’s belief that the co-investment demonstrated the sponsors’ commitment of significant capital on the same terms as Liberty’s public stockholders, which helps differentiate Liberty’s sponsors from the sponsors of other similar blank check companies. | |
Consummation of the business combination is conditioned upon the approval of Liberty’s warrantholders of an amendment to the warrant agreement, which amendment provides for a payment to Liberty’s warrantholders upon consummation of the business combination. | The possibility of an amendment to Liberty’s warrants, including an amendment to provide for a fixed payment to warrantholders, was not contemplated in the prospectus. | |
Liberty stockholders may elect to receive $10 in cash in exchange for any or all of their shares of Liberty common stock in the business combination, up to a maximum (collectively with any shares redeemed for cash pursuant to Liberty’s restated certificate of | The prospectus did not contemplate that Liberty might propose a transaction with a cash election feature. |
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Business Combination Provision | IPO Prospectus Disclosure | |
incorporation) of 80 million outstanding shares (approximately 61.8% of Liberty’s outstanding shares). |
• | that the business combination is a major step in Prisa’s plan to substantially restructure and strengthen its capital structure, as Prisa plans to use the cash proceeds from the business combination and the proceeds from previously announced asset dispositions to complete the restructuring of Prisa’s |
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significant debt and to provide for working capital requirements. The Prisa board of directors believes that the restructuring will help bring debt service costs and maturities in line with operational cash flows as a result, thereby strengthening Prisa’s financial position and allowing Prisa’s management to focus its efforts on executing Prisa’s business strategy; |
• | its determination that the proposed business combination with Liberty provides the most attractive alternative for raising a significant amount of capital on acceptable terms and belief that the business combination has a greater likelihood of completion in the current economic environment and is on more favorable terms than other alternatives to raising capital available to Prisa in the capital markets; | |
• | its view that the business combination will provide Prisa’s current management greater ability to execute and expand on its strategic vision for Prisa, freed from a constant focus on debt service obligations; and | |
• | that the business combination will provide access to an expanded investor base; Prisa will have a significantly larger public float with a substantial number of holders in the United States after completing the business combination and therefore the Prisa board of directors believes that the business combination will increase investor interest in Prisa through greater exposure to United States investors and expanded analyst coverage, and afford Prisa better access to a much larger potential investor base for future capital needs. |
• | the fact that the exchange ratios are fixed and will not fluctuate based upon changes in the market price of Prisa ordinary shares between the date of the business combination agreement and the date the parties complete the business combination; | |
• | that existing Prisa shareholders will have an opportunity to participate in Prisa’s capital raising efforts; | |
• | that the business combination will not preclude possible future business combination transactions; | |
• | the fact that Prisa’s controlling shareholder group supported the transaction and that Prisa is required to complete the business combination only if, among other things, the controlling shareholder group will hold at least 30% of the share capital of Prisa on a fully diluted basis; | |
• | the personal indemnities being provided by the individuals controlling Liberty’s sponsors, which should limit the exposure of Prisa to potential liabilities of Liberty; | |
• | that the sponsors agreed to consent to the warrant amendment proposal; and | |
• | the terms of the business combination agreement, which the Prisa board generally viewed as favorable to Prisa given that the contract is governed by Spanish law. |
• | the dilution to existing Prisa shareholders as a result of the issuance of shares to Liberty stockholders and warrantholders in the business combination; | |
• | the risk that Liberty’s stockholdersand/or warrantholders may not desire to hold securities in a foreign corporation; | |
• | Prisa’s undertaking to make cash dividend payments to the holders of the Prisa convertible non-voting shares; |
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• | the potential increase in regulatory compliance costs and possible diversion of management efforts from other activities as a result of Prisa’s becoming subject to new regulatory requirements under the U.S. securities laws and the listing requirements of a U.S. national securities exchange; | |
• | that the precise amount of cash that Liberty will contribute to Prisa will be determinable only after the number of redemptions of Liberty common stock and cash elections is known, and that the business combination cannot be consummated if Liberty stockholders exercise their redemption rights with respect to 30% or more of Liberty’s publicly-held shares; | |
• | that the business combination agreement does not provide Prisa with a termination fee in any circumstances of termination, including in the event that Liberty’s stockholders or warrantholders do not give their required approvals; | |
• | the possible effect of any failure to complete the business combination on Prisa’s negotiations with its lenders; | |
• | the restrictions on the conduct of Prisa’s business pending completion of the business combination, which could have the effect of delaying or preventing Prisa from pursuing business opportunities that may arise; | |
• | the interests described under “— Interests of Prisa’s Directors or Executive Officers in the Business Combination”; | |
• | the possibility that the business combination might not be consummated despite the parties’ efforts or that the closing of the business combination may be unduly delayed; and | |
• | the risks of the type and nature described under “Risk Factors,” and the matters described under “Cautionary Statement Regarding Forward-Looking Statements.” |
• | Liberty’s restated certificate of incorporation provides that in the event a letter of intent, an agreement in principle or a definitive agreement to consummate a business combination has been executed but no business combination is consummated by December 12, 2010, Liberty is required to begin the dissolution process provided for in Liberty’s restated certificate of incorporation. In the event of a dissolution, |
• | the 25,875,000 shares included as part of the founders’ units that Liberty’s founders purchased prior to Liberty’s IPO for an aggregate purchase price of approximately $25,000 would become worthless, |
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• | all of (i) the 12,000,000 sponsors’ warrants purchased by Liberty’s sponsors at a price of $1.00 per warrant for an aggregate purchase price of $12,000,000 and (ii) the 12,937,500 founders’ warrants included as part of the founders’ units and acquired by Liberty’s founders (which includes the sponsors) prior to Liberty’s IPO would expire and become worthless. Such warrants had an aggregate value of approximately $[ • ] million, based on the closing price of the Liberty warrants of $[ • ] on the NYSE Amex on , 2010, the record date for the special meeting of warrantholders. |
• | Prisa expects that Mr. Martin Franklin and Mr. Nicolas Berggruen will join Prisa’s board of directors in connection with the business combination. | |
• | Mr. Nicolas Berggruen and Mr. Martin Franklin, each of whom controls one of Liberty’s sponsors and is a member of Liberty’s board of directors, have agreed that, if Liberty dissolves prior to the consummation of a business combination, they will personally jointly and severally indemnify Liberty for any and all loss, liability, claim, damage and expense which it may become subject to as a result of a claim by any vendor, prospective target business or other entity that is owed money by Liberty for services rendered or products sold to the extent necessary to ensure that such loss, liability, claim, damage or expense does not reduce the amount of funds held in Liberty’s trust account. Based on Liberty’s estimated debts and obligations, Liberty does not currently expect that Messrs. Berggruen and Franklin will have any exposure under this arrangement in the event of a dissolution. | |
• | Mr. Nicolas Berggruen and Mr. Martin Franklin have agreed that they will personally, jointly and severally indemnify Prisa for any and all loss, liability, obligation, damage, cost, expense, fine or penalty, interest, tax, assessment, judgment or deficiency of any nature whatsoever (which we refer to collectively as damages) which Prisa may become subject to as a result of or in connection with the business combination regardless of whether the damages arise at, before or after the closing and are based on circumstances existing on or before the closing related to any liabilities of Liberty, excluding claims arising from, as a result of or in connection with Liberty entering into the business combination. Messrs. Berggruen’s and Franklin’s indemnification obligations are subject to certain thresholds for individual claims, a deductible and a limit on their total liability, and they are limited to claims for indemnification made by Prisa prior to March 5, 2015. | |
• | Each of the sponsors has agreed to purchase $25 million of shares of Series A preferred stock of Liberty, as part of the sales of preferred stock to be effected by Liberty to provide funds that may be used to make the required payments to those Liberty stockholders who elect to receive the $10.00 per share cash alternative in the business combination. If the business combination is consummated, the sponsors will receive a combination of cash and Prisa shares on account of their shares of Liberty Series A preferred stock, depending upon the total number of holders of Liberty common stock who elect the $10.00 per share cash alternative or validly exercise their redemption rights. If the business combination is not consummated, Liberty will be required to redeem the shares of Liberty Series A preferred stock purchased by the sponsors, for the amount of the original purchase price. |
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• | A resolution from Prisa’s board of directors (i) drafting the resolutions to be adopted by the Prisa general shareholders’ meeting and the reports to be submitted to Prisa shareholders in connection with the proposed resolutions and (ii) calling the Prisa shareholders meeting. | |
• | Prisa’s board of directors then requests that the Spanish Commercial Registry appoint an independent expert to value the Liberty shares and warrants to be contributed by the Liberty stockholders and warrantholders in exchange for the Prisa shares. Such a report is usually available to the shareholders beginning on the date the shareholders meeting is called or before the meeting is held. | |
• | The Prisa shareholders meeting must be called by means of an advertisement published in the Official Companies Registry Gazette (known as theBORME) and in one Spanish daily newspaper, at least one month before the date fixed for the meeting to be held. | |
• | After the resolution on the increase of capital is adopted by the Prisa shareholders meeting, the resolution must be recorded in a public deed before a notary, where evidence of the transfer of the Liberty shares and warrants is provided to the notary. | |
• | For listed companies issuing shares, or in the event of a public tender offer, a prospectus must be filed with the CNMV. This prospectus must generally be approved prior to granting the public deed mentioned above. | |
• | The public deed must then be registered with the Spanish Commercial Registry, after paying the applicable taxes. | |
• | After the registration of the public deed with the Spanish Commercial Registry, the new shares are issued upon their registration as book entries. This requires that the public deed, registered with the Spanish Commercial Registry, be registered withIberclear, which, in coordination with its participants, will create the book entry records evidencing the new shares which are then deemed delivered to the new shareholders. | |
• | In the case of ADSs, the newly issued shares will be registered in the name of the depositary who will then issue ADSs to the former Liberty stockholders and warrantholders. |
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• | Election for $10.00 Per Share Cash Alternative: Each share of Liberty common stock for which an election to receive the $10.00 per share cash alternative has been validly made and not revoked shall be converted into the right to receive $10.00 in cash without interest. | |
• | Mixed Consideration Election: Each share of Liberty common stock for which a mixed consideration election has been validly made and not revoked shall be exchanged for the right to receive 1.5 Prisa Class A ordinary shares, 3.0 Prisa Class B convertible non-voting shares, $0.50 in cash and cash in lieu of fractional shares. | |
• | No Election: Each share of Liberty common stock for which the holder has made neither a valid cash election nor a mixed consideration election (referred to as a non-electing share) shall be exchanged for the right to receive the mixed consideration. |
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Number of Prisa Class A | Number of Prisa Class B | |||||||||||
Investor | Ordinary Shares | Convertible Non-Voting Shares | Cash | |||||||||
Tyrus | 5,625,000 | 11,250,000 | $ | 1,875,000 | ||||||||
HSBC | 4,875,000 | 9,750,000 | $ | 1,625,000 | ||||||||
Centaurus | 1,500,000 | 3,000,000 | $ | 500,000 | ||||||||
Banco Santander | 187,500 | 375,000 | $ | 62,500 | ||||||||
Pentwater | 187,500 | 375,000 | $ | 62,500 |
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Number of Prisa | ||||||||||||
Number of Prisa | Class B | |||||||||||
Class A | Convertible | |||||||||||
Investor | Ordinary Shares | Non-Voting Shares | Cash | |||||||||
Tyrus | 1,875,000 | 3,750,000 | $ | 625,000 | ||||||||
HSBC | 1,875,000 | 3,750,000 | $ | 625,000 | ||||||||
Centaurus | 150,000 | 300,000 | $ | 50,000 |
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Number of Prisa | Number of Prisa | |||||||||||
Class A Ordinary | Class B Convertible | |||||||||||
Investor | Shares | Non-Voting Shares | Cash | |||||||||
HSBC | 375,000 | 750,000 | $ | 125,000 | ||||||||
Banco Santander | 187,500 | 375,000 | $ | 62,500 | ||||||||
Pentwater | 187,500 | 375,000 | $ | 62,500 | ||||||||
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• | have been qualified by information that Prisa and Liberty set forth in confidential disclosure schedules that the parties exchanged in connection with signing the business combination agreement—the information contained in these schedules modifies, qualifies and creates exceptions to the representations and warranties in the business combination agreement; | |
• | have been qualified by information that Prisa and Liberty set forth in the reports that it has filed with the CNMV or SEC, as applicable; | |
• | have been qualified by Prisa’s and Liberty’s actual or constructive knowledge, including knowledge gained from materials each party made available to the other during the parties’ due diligence investigations; | |
• | will not survive consummation of the business combination; | |
• | may be intended not as statements of fact, but rather as a way of allocating the risk to one of the parties to the business combination agreement if those statements turn out to be inaccurate; and | |
• | are subject to the materiality and material adverse effect standards described in the business combination agreement, which may differ from what may be viewed as material by you. |
• | corporate matters, including due organization and qualification; | |
• | capitalization; | |
• | authority relative to each party’s execution and delivery of the business combination agreement and the absence of conflicts with, or violations of, organizational documents or other obligations as a result of the business combination; | |
• | governmental and third-party filings and consents necessary to complete the business combination; | |
• | financial statements and the absence of undisclosed liabilities; | |
• | brokers’ fees the parties may have to pay in connection with the business combination; | |
• | the absence of certain changes or events; | |
• | legal proceedings; | |
• | tax matters; | |
• | compliance with applicable laws; | |
• | matters relating to certain contracts; | |
• | intellectual property; | |
• | employee matters and benefit plans; | |
• | insurance; |
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• | the absence of related party transactions; and | |
• | the accuracy of information supplied in public filings, and for inclusion in this proxy statement/prospectus and other similar documents. |
• | environmental matters; | |
• | permits and licenses; | |
• | compliance with anti-corruption and export control laws; | |
• | the absence of restrictive agreements with governmental entities; and | |
• | its properties and assets. |
• | amend, adopt or propose any amendment to its organizational documents (other than as required by the business combination agreement and, in the case of Liberty, as may be required to create the Liberty preferred stock or as expressly contemplated by the preferred stock purchase agreements); | |
• | create any subsidiary (other than Liberty Virginia), or acquire any securities or interests in any other entity, in the case of Prisa that could reasonably be expected to materially adversely affect the ability of Prisa to consummate the business combination; | |
• | except as necessary to complete the business combination or, in the case of Liberty, as expressly contemplated by the preferred stock purchase agreements, issue shares except pursuant to the exercise of Prisa convertible securities outstanding as of the date of the business combination agreement and in accordance with the terms of the applicable convertible securities, grant any stock options or other equity-based awards (other than grants by Prisa pursuant to its stock option or similar plans), amend, waive or otherwise modify the terms of any warrants, options or equity plans, or adopt or implement any stockholder rights plan; | |
• | make, declare or pay any dividends or other distributions on any shares of its capital stock or beneficial interests (except that Prisa and its subsidiaries may pay dividends to each other and Prisa may make distributions if necessary to effect the Prisa warrant issuance or to conduct a rights offering); | |
• | split, combine, subdivide or reclassify any of its capital stock, or redeem, repurchase or otherwise acquire, or propose to redeem, repurchase or otherwise acquire (other than in connection with the cashless exercise of Prisa options or similar rights) any of its capital stock, interests or other securities; | |
• | lease, license, transfer, exchange or swap, mortgage or otherwise dispose of any material portion of its assets, other than, in the case of Liberty, as expressly disclosed to Prisa, and in the case of Prisa, (i) the asset dispositions as discussed below under “—Asset Dispositions,” (ii) dispositions of assets with a fair market value of less than €250 million, (iii) transactions between any subsidiary of Prisa and Prisa or another of its subsidiaries and (iv) dispositions of excess inventory, property, leases, licenses, equipment or other assets that Prisa considers obsolete or unnecessary; |
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• | adopt or effect a plan or complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization; | |
• | incur or assume (or, in the case of Liberty, pre-pay) any indebtedness (in the case of Prisa, in excess of €250 million) or enter into any “keep well” or other agreement to maintain the financial condition of another entity, other than, in the case of Prisa, (i) as required pursuant to the terms of agreements in effect as of the date of the business combination agreement or (ii) to the extent in the ordinary course of business consistent with past practice, or consistent with the asset dispositions discussed below under “— Asset Disposition,” related to any vendor financing arrangement or existing proprietary charge card arrangements in amounts that do not exceed €100 million in the aggregate; | |
• | make or change any material tax election, materially amend any material tax returns, or settle any material tax claim, audit or assessment or, in the case of Liberty, adopt or change any method of material tax accounting or file any income tax return that claims a deduction for or otherwise uses a net operating loss; | |
• | fail to maintain its existing insurance coverage, or to procure substantially similar substitute insurance policies; | |
• | materially change its accounting methods other than as required by certain applicable regulatory guidelines or authorities; | |
• | enter into certain specified types of contracts, or amend, terminate or extend any such contract or otherwise waive, release, assign or fail to enforce any material rights or claims, in the case of Prisa if the applicable contract or action or failure to act would reasonably be expected to impair in any material respect the ability of Prisa to perform its obligations under the business combination agreement or prevent or delay the consummation of the business combination, except, in the case of Liberty, pursuant to the amended and restated deferred underwriting discount reduction letter with Citigroup and Barclays; | |
• | take, or agree to commit to take, any action that is intended to result in any of the conditions to the business combination not being satisfied; | |
• | engage in or enter into any new material related party transaction other than, in the case of Prisa, in the ordinary course of business and, in the case of Liberty, pursuant to the sponsor surrender agreement or as may be required to create the Liberty preferred stock or as expressly contemplated by the preferred stock purchase agreements; | |
• | commence or settle any litigation or arbitration proceedings (i) relating to the business combination agreement or the business combination or (ii) involving payments by it or any of its subsidiaries in excess of, in the case of Liberty, $250,000 per litigation or arbitration, or $500,000 in the aggregate, and, in the case of Prisa, €25 million per litigation or arbitration, or €100 million in the aggregate; or | |
• | agree to do any of the actions prohibited by the preceding bullet points. |
• | increase the compensation or benefits payable or to become payable, or pay any amounts or benefits (including severance), or increase any amounts payable to, any of its current or former directors, officers, consultants or other service providers, or hire, retain or appoint any employees, officers, directors, consultants or other service providers; | |
• | assume, guarantee or otherwise become responsible for the indebtedness of another person, or acquire any other business or entity or make or acquire any loans or investments any other person or entity; | |
• | pay or commit to pay any expenses other than expenses related to the business combination or otherwise not exceeding $100,000 individually or $500,000 in the aggregate; | |
• | permit Liberty Virginia to engage in any activity or business other than as contemplated by the business combination agreement or incident to its formation; or |
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• | after delivery of a certificate to be delivered by Liberty to Prisa prior to closing, setting forth the amount of cash to be held by Liberty at closing, take any action that would cause Liberty’s cash at closing to differ in any material respect from the amount specified in the certificate. |
• | except (i) as required by applicable law or the terms of a Prisa employee benefit plan in effect on the date of the business combination agreement, (ii) in the ordinary course of business consistent with past practice or (iii) otherwise in an amount not material to Prisa, with respect to any current or former director, officer or employee, (1) increase the compensation or benefits payable or to become payable to such person, or pay or increase any amounts or benefits to any such person not required by any existing employee benefit plan, (2) establish, adopt or materially amend any collective bargaining or other benefit plan, (3) provide any funding for a rabbi trust or similar arrangement or otherwise secure the payment of compensation or benefits under any existing employee benefit plan, (4) accelerate the vesting of or lapsing of restrictions with respect to any stock-based or other long-term incentive compensation plan or (5) materially change any actuarial or other assumptions used to calculate funding obligations under any employee benefit plan or change the manner or basis for making or determining those contributions; or | |
• | assume, guarantee or otherwise become responsible for the indebtedness of another person (other than a subsidiary). |
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• | the approval by the Prisa shareholders of the amendment to Prisa’s by-laws and the capital increase in-kind necessary for effecting the business combination, the approval and adoption of the business combination agreement and the transactions contemplated thereby by Liberty stockholders and the approval of the warrant agreement amendment by Liberty warrantholders; | |
• | Prisa having registered its increase in share capital pursuant to a deed of in-kind capital increase, and having filed certain required reports relating to the business combination; | |
• | the effectiveness of the registration statements under the Securities Act and Exchange Act with respect to the Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares and Prisa ADSs to be issued in connection with the business combination (including the registration statement of which this proxy statement/prospectus is a part) and the absence of any stop order or proceedings initiated or threatened by the SEC for that purpose; | |
• | the absence of any order, injunction or decree having been issued by any court or agency of competent jurisdiction or other legal restraint or prohibition making the business combination illegal or otherwise preventing the consummation of the business combination, and the absence of any statute, rule, regulation, order, injunction or decree having been enacted, entered, promulgated or enforced by any governmental entity that prohibits or makes illegal the consummation of the business combination; | |
• | the CNMV having verified and registered a prospectus relating to the issuance of the Prisa Class A ordinary shares, Prisa Class B convertible non-voting shares and Prisa warrants in the business combination; | |
• | the completion of the restructuring of Prisa’s outstanding indebtedness occurring substantially simultaneously with the closing of the business combination, and Prisa not being in default under any definitive documentation providing for the Prisa debt restructuring; | |
• | the New York Stock Exchange having approved the listing of Prisa ADSs to be issued in the business combination, subject to official notice of issuance and the absence of any event that may preclude the listing of the Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares on the Spanish Continuous Market Exchange once it has been authorized by the CNMV and the managing companies of the Spanish stock exchanges; | |
• | Prisa having entered into deposit agreements with a U.S. financial institution authorized to act as depositary for the Prisa ADSs (selected by Prisa after consultation with Liberty); and | |
• | receipt by Prisa from HSBC, as representative of the lenders under a refinancing master agreement among Prisa, the lenders and HSBC, as administrative agent, of a notice stating that the requisite lenders have consented to and approved the amendments contained in the amended and restated business combination agreement dated as of August 4, 2010. |
• | the other party’s representations and warranties in the business combination agreement being true and correct, except (in the case of most of the representations and warranties) where the failure to be true and correct would not have a material adverse effect on such other party; | |
• | the other party’s performance in all material respects of its obligations under the business combination agreement; and |
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• | there not having occurred, since the date of the business combination agreement, a material adverse effect on the other party. |
• | Prisa having entered into an employment agreement with Mr. Juan Luis Cebrián providing for an employment term of at least three years and such other terms as are mutually acceptable to Prisa and Mr. Cebrián; and | |
• | the issuance and delivery by Prisa of the number of shares in the business combination equaling the number of Prisa shares required by the share exchange and the warrant agreement amendment. |
• | the directors and officers of Liberty Virginia having tendered their resignations, effective upon the effective time of the share exchange; | |
• | Liberty having not less than approximately $936.7 million in cash in its trust and operating accounts at the closing of the business combination (including cash to be paid to Liberty stockholders who validly exercise their redemption rights or make cash elections), after payment of the deferred underwriting discounts payable to the underwriters of Liberty’s IPO, Liberty’s transaction expenses and other liabilities, and the approximately $46.7 million in cash payable as part of the warrant consideration; | |
• | Liberty’s transaction expenses, excluding deferred underwriting discounts and the cash payable as part of the warrant consideration, not exceeding $24 million; | |
• | Prisa’s existing controlling shareholder group continuing to control not less than 30% of Prisa’s outstanding ordinary shares (after giving pro forma effect to the transactions contemplated by the warrant agreement amendment, the full conversion of the Prisa Class B convertible non-voting shares to Prisa Class A ordinary shares, any required redemptions of shares of Liberty common stock, the purchase of Liberty warrants and Liberty common stock pursuant to the sponsor surrender agreement and the issuance and exercise of the Prisa warrants); | |
• | the amount of cash held by Liberty and available to Prisa following consummation of the business combination, after payment of (1) any amounts payable to stockholders of Liberty who validly exercise their redemption rights, (2) any amounts payable to stockholders of Liberty who have elected to receive the $10.00 per share cash alternative in excess of the amounts deposited into and remaining in the Liberty preferred shares escrow account and (3) the aggregate amount of cash payable to Liberty stockholders receiving mixed consideration in the business combination and a portion of the cash payable to the holders of Liberty preferred stock, being greater than €450 million (converted from dollars to euros using an agreed exchange rate); | |
• | Liberty having purchased from its sponsors a total of approximately 24.8 million Liberty warrants (constituting all of the Liberty warrants held by them, but excluding the 165,600 Liberty warrants held by the other founders) and approximately 3.3 million shares of Liberty common stock for a total purchase price of $825, and, if the total amount of cash payable to Liberty common stockholders who have exercised redemption rights or elected to receive the $10.00 per share cash alternative is greater than $525 million, Liberty having purchased an additional 2.6 million shares of Liberty common stock from the Liberty sponsors for a total purchase price of $260 and, if the total amount of cash payable to Liberty common stockholders who have exercised redemption rights or elected to receive the $10.00 per share cash alternative is greater than $750 million, Liberty having purchased an additional 500,000 shares from the Liberty sponsors for a total purchase price of $50; and | |
• | the total number of shares of Liberty common stock as to which Liberty stockholders validly exercise their redemption rights or elect to receive the $10.00 per share cash alternative not exceeding 80 million shares in the aggregate. |
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• | any order, injunction or decree is issued by any court or agency of competent jurisdiction or other legal restraint or prohibition making the business combination illegal or preventing the consummation of the business combination, or any statute, rule, regulation, order, injunction or decree has been enacted, entered, promulgated or enforced by any governmental entity that prohibits or makes illegal the consummation of the business combination, and such action has become final and non-appealable; | |
• | Prisa’s shareholders fail to approve the capital increase in-kind and the bylaw amendments required by the business combination agreement, Liberty’s stockholders fail to approve and adopt the business combination agreement or the transactions contemplated by it, or Liberty’s warrantholders fail to approve the warrant agreement amendment (except that a party may not terminate the business combination agreement for this reason if it has not fulfilled its obligations under the business combination agreement to call and conduct its meeting or meetings, or if it has breached any obligation of the business combination agreement such that it has failed to satisfy the closing conditions); | |
• | Liberty and Prisa have not completed the business combination by December 6, 2010 (other than because of a breach of the business combination agreement that the party seeking termination caused); | |
• | the other party breaches the business combination agreement in a way that would entitle the party seeking to terminate the agreement not to consummate the business combination, subject to the right of the breaching party to cure the breach within 15 days following written notice (unless it is not possible due to the nature or timing for the breach for the breaching party to cure the breach); and | |
• | if, as of the date of the Liberty stockholder meeting, the total number of shares of Liberty common stock as to which Liberty stockholders validly exercised their redemption rights or made elections to receive the $10.00 per share cash alternative exceeds 80 million shares in the aggregate. |
• | both Prisa and Liberty will remain liable for any breach of the business combination agreement; and | |
• | designated provisions of the business combination agreement, including those regarding the payment of fees and expenses and those that provide for governing law, jurisdiction and specific enforcement will survive the termination. |
• | extend the time for performance of any of the obligations or other acts of the other party under the business combination agreement; |
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• | waive any inaccuracies in the other party’s representations and warranties contained in the business combination agreement; and | |
• | waive the other party’s compliance with any of the agreements or conditions contained in the business combination agreement. |
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• | An aggregate of 50,000 shares of a new series of preferred stock to be designated as Series A preferred stock for an aggregate purchase price of $50 million, all of which will be purchased by the Liberty sponsors (each of which will purchase 25,000 shares of Series A preferred stock); |
• | An aggregate of 300,000 shares of a new series of preferred stock to be designated as Series B preferred stock for an aggregate purchase price of $300 million, of which 150,000 shares will be purchased by Tyrus Capital Event Master Fund Ltd. and 150,000 shares will be purchased by HSBC Bank plc; |
• | An aggregate of ten shares of a new series of preferred stock to be designated as Series C preferred stock for an aggregate purchase price of $10, all of which will be purchased by Tyrus; | |
• | An aggregate of 50,000 shares of a new series of preferred stock to be designated as Series D preferred stock, for an aggregate purchase price of $50 million, all of which will be purchased by Centaurus Capital Limited, on behalf of certain of its affiliates; and | |
• | An aggregate of 100,000 shares of a new series of preferred stock to be designated as Series E preferred stock (the Series A preferred stock, the Series B preferred stock, the Series C preferred stock, the Series D preferred stock and the Series E preferred stock are referred to collectively as the Liberty preferred stock), for an aggregate purchase price of $100 million, of which 50,000 shares will be purchased by HSBC Bank plc, 25,000 shares will be purchased by a wholly owned affiliate of Banco Santander to which Banco Santander has assigned its interest and 25,000 shares will be purchased by Pentwater Growth Fund Ltd., and two related funds. |
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• | the closing of the sale of Liberty preferred stock pursuant to such preferred stock purchase agreement has not occurred by November 15, 2010, or the closing of the business combination has not occurred by December 6, 2010; | |
• | the business combination agreement is terminated; | |
• | any order, injunction or decree is issued by any court or agency of competent jurisdiction or other legal restraint or prohibition making the transactions contemplated by the preferred stock purchase agreement illegal or preventing the consummation of the transactions contemplated by the preferred stock purchase agreement, or any statute, rule, regulation, order, injunction or decree has been enacted, entered, promulgated or enforced by any governmental entity that prohibits or makes illegal the consummation of the transactions contemplated by the preferred stock purchase agreement; | |
• | the business combination agreement is amended, or any waiver is given by Liberty under the business combination, in either case without the prior written consent of the sponsor or investor, as applicable, and which decreases the consideration due such sponsor or investor, as applicable, pursuant to the terms of the Liberty preferred stock or otherwise materially and adversely affects such sponsor or investor, as applicable (or, in the case of certain specified provisions, which adversely affects such sponsor or investor, as applicable), or the escrow agreement is amended without the consent of such sponsor or investor, as applicable; |
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• | Any person other than Liberty or the investors shall have entered into an agreement to purchase, or shall have purchased, from Liberty or the Liberty sponsors any Liberty preferred stock or other securities of Liberty, or the terms of the preferred stock purchase agreement to which any other purchaser is party shall have been (or shall have been amended to become) more favorable to the other purchaser than the terms of the applicable preferred stock purchase agreement, in each case without the prior written consent of such sponsor or investor, as applicable; | |
• | Liberty shall have declared or paid any dividend or distribution of any kind with a record date prior to the second day after the Liberty stockholder meeting; | |
• | the requisite approval of Liberty’s common stockholders or of Liberty’s warrantholders to approve the business combination or warrant agreement amendment, respectively, is not obtained at the meeting of Liberty’s stockholders to be held pursuant to the business combination agreement; or | |
• | in the case of HSBC and Tyrus, the registration statement of which this proxy statement/prospectus form a part, after mailing to holders of Liberty common stock and Liberty warrants, shall fail to be effective for the registration of the resale by such investor of the Prisa ADSs to be issued in exchange for the shares of Liberty preferred stock purchased by such investor. |
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AS OF JUNE 30, 2010
Pro Forma | ||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | non-convertible | Pro Forma | ||||||||||||||||||||||||
06/30/2010 | 06/30/2010 | Adjustments | Notes | shares | Notes | 06/30/2010 | ||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
A) NON-CURRENT ASSETS | 6,434,051 | 573 | — | — | 6,434,624 | |||||||||||||||||||||||
I. PROPERTY, PLANT AND EQUIPMENT | 341,048 | 341,048 | ||||||||||||||||||||||||||
II. GOODWILL | 4,325,147 | 4,325,147 | ||||||||||||||||||||||||||
III. INTANGIBLE ASSETS | 358,398 | 358,398 | ||||||||||||||||||||||||||
IV. NON-CURRENT FINANCIAL ASSETS | 58,191 | 58,191 | ||||||||||||||||||||||||||
V. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 29,202 | 29,202 | ||||||||||||||||||||||||||
VI. DEFERRED TAX ASSETS | 1,317,841 | 573 | 1,318,414 | |||||||||||||||||||||||||
VII. OTHER NON-CURRENT ASSETS | 4,224 | 4,224 | ||||||||||||||||||||||||||
B) CURRENT ASSETS | 1,659,908 | 843,396 | (631,172 | ) | (8,500 | ) | 1,863,632 | |||||||||||||||||||||
I. INVENTORIES | 223,057 | 223,057 | ||||||||||||||||||||||||||
II. TRADE AND OTHER RECEIVABLES | ||||||||||||||||||||||||||||
1. Trade receivables for sales and services | 1,060,756 | 1,060,756 | ||||||||||||||||||||||||||
2. Receivable from associates | 16,853 | 16,853 | ||||||||||||||||||||||||||
3. Receivable from public authorities | 86,080 | 269 | 7,950 | (6 | ) | 94,299 | ||||||||||||||||||||||
4. Other receivables | 257,905 | 123 | 258,028 | |||||||||||||||||||||||||
5. Allowances | (78,908 | ) | (78,908 | ) | ||||||||||||||||||||||||
1,342,686 | 392 | 7,950 | 1,351,028 | |||||||||||||||||||||||||
III. CURRENT FINANCIAL ASSETS | 3,068 | 3,068 | ||||||||||||||||||||||||||
IV. CASH AND CASH EQUIVALENTS | 90,872 | 843,004 | (639,122 | ) | (1 | ) | (8,500 | ) | (1 | )(7) | 286,254 | |||||||||||||||||
V. OTHER CURRENT ASSETS | 225 | 225 | ||||||||||||||||||||||||||
C) ASSETS HELD FOR SALE | 250,812 | 250,812 | ||||||||||||||||||||||||||
TOTAL ASSETS | 8,344,771 | 843,969 | (631,172 | ) | (8,500 | ) | 8,549,068 | |||||||||||||||||||||
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Pro Forma | ||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | non-convertible | Pro Forma | ||||||||||||||||||||||||
06/30/2010 | 06/30/2010 | Adjustments | Notes | shares | Notes | 06/30/2010 | ||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||
EQUITY AND LIABILITIES | ||||||||||||||||||||||||||||
A) EQUITY | 1,568,283 | 567,367 | 123,352 | (230,913 | ) | 2,028,089 | ||||||||||||||||||||||
I. SHARE CAPITAL | 21,914 | 598,423 | (575,937 | ) | (2 | ) | 44,400 | |||||||||||||||||||||
II. PREFERRED SHARES | 40,299 | (2 | ) | 40,299 | ||||||||||||||||||||||||
III. SHARE PREMIUM | 112,665 | 649,955 | (2 | ) | (230,913 | ) | (2 | )(7) | 531,707 | |||||||||||||||||||
IV. OTHER RESERVES | 712,871 | (32,995 | ) | 9,035 | (3 | ) | 688,911 | |||||||||||||||||||||
V. ACCUMULATED PROFIT | 488,548 | 2,503 | 491,051 | |||||||||||||||||||||||||
— From prior years | 427,666 | 8,760 | 436,426 | |||||||||||||||||||||||||
— For the year: Profit attributable to the Parent | 60,882 | (6,257 | ) | 54,625 | ||||||||||||||||||||||||
VII. EXCHANGE DIFFERENCES | 29,361 | (564 | ) | 28,797 | ||||||||||||||||||||||||
VIII. MINORITY INTERESTS | 202,924 | 202,924 | ||||||||||||||||||||||||||
B) NON-CURRENT LIABILITIES | 2,259,010 | 271,791 | (367,923 | ) | 192,531 | 2,355,409 | ||||||||||||||||||||||
I. NON-CURRENT BANK BORROWINGS | 1,743,582 | (96,132 | ) | (1 | ) | 1,647,450 | ||||||||||||||||||||||
II. NON-CURRENT FINANCIAL LIABILITIES | 359,831 | 251,765 | (251,765 | ) | (4 | ) | 192,531 | (7 | ) | 552,362 | ||||||||||||||||||
III. DEFERRED TAX LIABILITIES | 45,458 | 45,458 | ||||||||||||||||||||||||||
IV. LONG-TERM PROVISIONS | 93,524 | 93,524 | ||||||||||||||||||||||||||
V. OTHER NON-CURRENT LIABILITIES | 16,615 | 20,026 | (20,026 | ) | (5 | ) | 16,615 | |||||||||||||||||||||
C) CURRENT LIABILITIES | 4,321,789 | 4,811 | (386,601 | ) | 29,882 | 3,969,881 | ||||||||||||||||||||||
I. TRADE PAYABLES | 1,127,247 | 4,811 | 1,132,058 | |||||||||||||||||||||||||
II. PAYABLE TO ASSOCIATES | 15,998 | 15,998 | ||||||||||||||||||||||||||
III. OTHER NON-TRADE PAYABLES | 102,109 | 102,109 | ||||||||||||||||||||||||||
IV. CURRENT BANK BORROWINGS | 2,752,330 | (386,601 | ) | (1 | ) | 2,365,729 | ||||||||||||||||||||||
V. CURRENT FINANCIAL LIABILITIES | 3,708 | 29,882 | (7 | ) | 33,590 | |||||||||||||||||||||||
VI. PAYABLE TO PUBLIC AUTHORITIES | 283,986 | — | 283,986 | |||||||||||||||||||||||||
VII. PROVISIONS FOR RETURNS | 6,815 | 6,815 | ||||||||||||||||||||||||||
VIII. OTHER CURRENT LIABILITIES | 29,596 | 29,596 | ||||||||||||||||||||||||||
D) LIABILITIES HELD FOR SALE | 195,689 | 195,689 | ||||||||||||||||||||||||||
TOTAL EQUITY AND LIABILITIES | 8,344,771 | 843,969 | (631,172 | ) | (8,500 | ) | 8,549,068 | |||||||||||||||||||||
125
126
AS OF JUNE 30, 2010 — (Continued)
Number of | Value per | Equity | ||||||||||
shares | share | |||||||||||
(thousands of | ||||||||||||
euros) | ||||||||||||
Share capital 06/30/10 pre-transaction | 219,135,500 | 0.10 | 21,914 | |||||||||
Share premium 06/30/10 pre-transaction | 219,135,500 | 0.51 | 112,665 | |||||||||
Capital increase | ||||||||||||
Class A ordinary shares | 224,855,520 | 0.10 | 22,486 | |||||||||
Class B convertible non-voting shares | 402,987,000 | 0.10 | 40,299 | |||||||||
627,842,520 | 62,785 | |||||||||||
Share premium Class A ordinary shares | 224,855,520 | 1.04 | 232,775 | |||||||||
Share premium Class B convertible non-voting shares | 402,987,000 | 1.04 | 417,180 | |||||||||
627,842,520 | 649,955 | |||||||||||
Net capital increase | 627,842,520 | 712,740 | ||||||||||
Share capital 06/30/10 post-transaction | 846,978,020 | 0.10 | 84,698 | |||||||||
Share premium 06/30/10 post-transaction | 846,978,020 | 0.90 | 762,619 | |||||||||
Reclassification from equity to liability for the obligation of dividends (*) | (173,092 | ) | ||||||||||
Reclassification from equity to liability for the warranty of stock price at conversion (**) | (57,820 | ) | ||||||||||
Share premium 06/30/10 post-transaction after reclassification | 531,707 |
(*) | Reflects the cumulative obligation to pay annual dividends to holders of Prisa Class B convertible non-voting shares. | |
(**) | Reflects the obligation to deliver to Prisa Class B shareholders at the mandatory conversion date in excess of one Prisa Class A ordinary shares for each Prisa Class B convertible non-voting share if the volume-weighted average stock price for the Prisa Class A ordinary shares over the preceding 20 trading days is below €2.00. |
• | Dividends: Holders of Prisa Class B convertible non-voting shares will have the right to receive a minimum annual dividend of 0.175 euros from the date of issuance, as long as distributable profits exits or as long as a premium reserve exists, according to the terms and limitations contemplated in Article 273 of the Spanish Companies Law, and so long as there is no legal restriction against such payment. In order to facilitate the payment of the minimum dividend, Prisa will create a premium reserve as a consequence of the issuance of the Prisa Class B convertible non-voting shares to be considered a distributable reserve to pay the minimum dividend when there are no distributable profits. If Prisa has distributable profits, it will be obligated to approve the distribution of the minimum dividend described above. If distributable profits in a given financial year are insufficient to cover the full amount of the minimum dividend due to the holders of the Prisa Class B convertible non-voting shares, then any shortfall would be payable from the premium reserve in respect of the Prisa Class B convertible non-voting shares. If the minimum dividend in respect of a given financial year exceeds the |
127
AS OF JUNE 30, 2010 — (Continued)
sum of distributable profits in that year and the then-existing balance of the premium reserve in respect of the Prisa Class B convertible non-voting shares, then Prisa would be only obligated to pay a partial dividend for such year, up to the amount of such distributable profits plus the then-existing balance of the premium reserve in respect of the Prisa Class B convertible non-voting shares, pro rata in respect of the Prisa Class B convertible non-voting shares. Any remaining shortfall would be added to the annual minimum dividend payable in respect of the Prisa Class B convertible non-voting shares in the following year. Once the minimum dividend has been approved, holders of Prisa Class B shares will have the right to receive the same dividend as is paid in respect of the Prisa Class A ordinary shares. |
• | Conversion at the option of the holder: at the option of the holder of Prisa Class B convertible non-voting shares, each share may be converted into one Prisa Class A ordinary share at any time after issuance during monthly conversion periods. | |
• | Mandatory conversion: the Prisa Class B convertible non-voting shares will be mandatorily converted into Prisa Class A ordinary shares upon the three and a half year anniversary of their issuance on aone-for-one basis. However, if the volume weighted average trading price of the Prisa Class A shares on the Spanish Market (Mercado Continuo) during the twenty consecutive trading days immediately prior to the mandatory conversion date (referred to as the 20 trading day volume-weighted average price) is less than €2.00, the conversion rate will be modified as follows: the number of Prisa Class A ordinary shares to be issued upon conversion of each Prisa Class B convertible non-voting share will be equal to a fraction (expressed as a decimal), the numerator of which is €2.00 and the denominator of which is the 20 trading day volume-weighted average price of the Prisa Class A ordinary shares, subject to a maximum conversion rate of 1.33 Prisa Class A ordinary shares for each Prisa Class B convertible non-voting share. Prisa may elect to pay in cash the difference between €2.00 and the referenced volume weighted average trading price, with the maximum amount of €0.5 payable per Prisa Class B convertible non-voting share, and thereby retain theone-for-one conversion ratio. |
• | An equity component representing the delivery of equity in the future (each convertible security will be convertible into 1 ordinary share of Prisa at the option of the holder at any time following the issuance date or mandatorily converted at the conversion date). | |
• | A financial liability of €173 million representing the obligation to pay annual dividends until conversion. The liability has been determined as the present value of the payments discounted at the rate that would have been applicable if Prisa had issued a debt instrument with similar features and of similar credit standing but without the conversion features (see Note 7). | |
• | A derivative financial liability amounting to €57.8 million for the potential additional shares or cash to be delivered upon mandatory conversion if the 20 trading day volume-weighted average price of the Prisa Class A ordinary shares is below €2.00. In order to determine the fair value of this derivative, Prisa has used a market value methodology (Black-Scholes) (see Note 7). |
128
AS OF JUNE 30, 2010 — (Continued)
Thousands of Euros | See Notes | |||||||
Expenses associated with Prisa’s capital increase | (26,500 | ) | 1,7 | |||||
Tax effect of the expenses of Prisa associated with the capital increase | 7,950 | 6 | ||||||
Liberty’s other transaction expenses | (19,672 | ) | 1 | |||||
Cash paid by or at the direction of Liberty Virginia to holders of Liberty warrants | (38,298 | ) | 1 | |||||
Liability recorded on Liberty’s balance sheet reclassified as an increase to stockholders’ equity | 251,765 | 4 | ||||||
Share capital pro forma adjustments reclassification | 575,937 | 2 | ||||||
Preferred shares pro forma adjustments reclassification | (40,299 | ) | 2 | |||||
Share premium pro forma adjustments reclassification | (649,955 | ) | 2 | |||||
Reduction of underwriter’s fees | 3,160 | 5 | ||||||
Cash paid to Liberty’s shareholders | (55,053 | ) | 1 | |||||
Total other reserves pro forma adjustments | 9,035 |
As of | ||||
June 30, | ||||
2010 | ||||
Balance Sheet Data (in thousands of euros): | ||||
Total assets | 8,548,660 | |||
Total liabilities | 6,718,892 | |||
Stockholders’ equity | 1,829,768 |
129
AS OF JUNE 30, 2010 — (Continued)
130
FOR THE SIX MONTHS ENDED JUNE 30, 2010
Pro Forma | ||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||||||||||
Non | ||||||||||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | Convertible | Pro Forma | ||||||||||||||||||||||||
06/30/2010 | 06/30/2010 | Adjustments | Notes | shares | Notes | 06/30/2010 | ||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||
Revenue | 1,436,868 | 1,436,868 | ||||||||||||||||||||||||||
Other income | 140,430 | 140,430 | ||||||||||||||||||||||||||
OPERATING INCOME | 1,577,298 | 1,577,298 | ||||||||||||||||||||||||||
Cost of materials used | (568,707 | ) | �� | (568,707 | ) | |||||||||||||||||||||||
Staff costs | (306,229 | ) | (306,229 | ) | ||||||||||||||||||||||||
Depreciation and amortization charge | (86,670 | ) | (86,670 | ) | ||||||||||||||||||||||||
Outside services | (409,759 | ) | (6,798 | ) | (416,557 | ) | ||||||||||||||||||||||
Variation in operating allowances | (9,895 | ) | (9,895 | ) | ||||||||||||||||||||||||
OPERATING EXPENSES | (1,381,260 | ) | (6,798 | ) | — | — | (1,388,058 | ) | ||||||||||||||||||||
PROFIT FROM OPERATIONS | 196,038 | (6,798 | ) | — | — | 189,240 | ||||||||||||||||||||||
Finance income | 4,451 | 139 | 4,590 | |||||||||||||||||||||||||
Finance costs | (89,552 | ) | 6,047 | (9 | ) | (12,868 | ) | (10 | ) | (96,373 | ) | |||||||||||||||||
Changes in value of financial instruments | 2,834 | 2,834 | ||||||||||||||||||||||||||
Exchange differences (net) | (3,741 | ) | (3,741 | ) | ||||||||||||||||||||||||
FINANCIAL LOSS | (86,008 | ) | 139 | 6,047 | (12,868 | ) | (92,690 | ) | ||||||||||||||||||||
Result of companies accounted for using the equity method | (461 | ) | (461 | ) | ||||||||||||||||||||||||
Loss from other investments | (2,966 | ) | (2,966 | ) | ||||||||||||||||||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 106,603 | (6,659 | ) | 6,047 | (12,868 | ) | 93,123 | |||||||||||||||||||||
Income tax | (28,580 | ) | 402 | (1,814 | ) | (9 | ) | 3,860 | (10 | ) | (26,132 | ) | ||||||||||||||||
PROFIT FROM CONTINUING OPERATIONS | 78,023 | (6,257 | ) | 4,233 | (9,008 | ) | 66,991 | |||||||||||||||||||||
Profit attributable to minority interests | (17,053 | ) | (17,053 | ) | ||||||||||||||||||||||||
PROFIT FROM CONTINUING OPERATIONS ATTRIBUTABLE TO THE PARENT | 60,970 | (6,257 | ) | 4,233 | (9,008 | ) | 49,938 | |||||||||||||||||||||
BASIC EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros)(*) | 0.278 | (0.05 | ) | 0.017 | ||||||||||||||||||||||||
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros)(*) | 0.016 | |||||||||||||||||||||||||||
(*) | For information regarding basic earnings per share calculations, see “Unaudited Pro Forma Combined Per Share Information”. |
131
FOR THE SIX MONTHS ENDED JUNE 30, 2010
For the Six Months | ||||
Ended June 30, | ||||
2010 | ||||
Statement of Operations Data (in thousands of euros): | ||||
Profit from operations | 189,240 | |||
Profit from continuing operations | 66,699 | |||
Profit from continuing operations attributable to the parent | 49,646 |
132
FOR THE SIX MONTHS ENDED JUNE 30, 2010
06/30/2010 | ||||
Pro-forma profit for the six months from continuing operations attributable to the Parent (thousands of euros)(*) | 14,677 | |||
Weighted average number of ordinary shares used in calculating basic earnings per share (thousands of shares) | 846,978 | |||
Effect of dilution: | ||||
Shares issued with dilutive effect under option (warrants) | 76,043 | |||
Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share | 923,021 | |||
Basic earnings per share from continuing operations (euros) | 0.017 | |||
Diluted earnings per share from continuing operations (euros) | 0.016 |
(*) | For the purpose of calculating basic earnings per share, the profit from continuing operations attributable to the parent entity (€49 million) has been adjusted for the preference dividends (€35 million) for the six month period. |
Prisa has calculated Profit for the year attributable to the Parent as follows: | Thousands of Euros | |||
Adjusted pro-forma profit for the year from continuing operations attributable to the Parent | 49,938 | |||
Half of the annual dividend related to Class B convertible non-voting shares | (35,261 | ) | ||
Pro-forma Profit for the year attributable to the Parent | 14,677 |
The assumptions used by Prisa in calculating basic earnings per share are as follows: | Thousands of Shares | |||
Prisa’s ordinary shares pre transaction | 219,135 | |||
Capital increase, Class A ordinary shares | 224,856 | |||
Capital increase, Class B preferred shares (**) | 402,987 | |||
Weighted average number of ordinary shares used in calculating basic earnings per share (thousands of shares) | 846,978 |
(**) | Holders of Class B convertible non-voting shares participate in any ordinary dividend to be received by the holders of Class A ordinary shares. |
133
The assumptions used by Prisa in calculating diluted earnings per share are as follows: | Thousands of Shares | |||
Weighted average number of ordinary shares under Prisa’s current shareholders warrant option | 241,049 | |||
Weighted average number of ordinary shares that would have been issued at average market price (241.049 shares x €2/€2.92) | (165,006 | ) | ||
Shares with dilutive effect under Prisa’s current shareholders warrant option | 76,043 |
134
Pro Forma | ||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||||||||||||||||||
Non | Pro Forma | |||||||||||||||||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | Convertible | Adjustments | Pro Forma | |||||||||||||||||||||||||||||||
12/31/2009 | 12/31/2009 | Adjustments | Notes | shares | Notes | Santillana Sale | Notes | 12/31/2009 | ||||||||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||||||||||
Revenue | 3,155,105 | 3,155,105 | ||||||||||||||||||||||||||||||||||
Other income | 53,479 | 53,479 | ||||||||||||||||||||||||||||||||||
OPERATING INCOME | 3,208,584 | 3,208,584 | ||||||||||||||||||||||||||||||||||
Cost of materials used | (1,125,648 | ) | (1,125,648 | ) | ||||||||||||||||||||||||||||||||
Staff costs | (619,972 | ) | (619,972 | ) | ||||||||||||||||||||||||||||||||
Depreciation and amortization charge | (196,657 | ) | (196,657 | ) | ||||||||||||||||||||||||||||||||
Outside services | (835,672 | ) | (2,452 | ) | (838,124 | ) | ||||||||||||||||||||||||||||||
Variation in operating allowances | (55,547 | ) | (55,547 | ) | ||||||||||||||||||||||||||||||||
Other expenses | (6,106 | ) | (6,106 | ) | ||||||||||||||||||||||||||||||||
OPERATING EXPENSES | (2,839,602 | ) | (2,452 | ) | — | — | — | (2,842,054 | ) | |||||||||||||||||||||||||||
PROFIT FROM OPERATIONS | 368,982 | (2,452 | ) | — | — | — | 366,530 | |||||||||||||||||||||||||||||
Finance income | 15,758 | 2,749 | 18,507 | |||||||||||||||||||||||||||||||||
Finance costs | (252,107 | ) | 10,294 | (1 | ) | (34,144 | ) | (2 | ) | 5,292 | (3 | ) | (270,665 | ) | ||||||||||||||||||||||
Changes in value of financial instruments | 22,185 | 22,185 | ||||||||||||||||||||||||||||||||||
Exchange differences (net) | (105 | ) | (105 | ) | ||||||||||||||||||||||||||||||||
FINANCIAL LOSS | (214,269 | ) | 2,749 | 10,294 | (34,144 | ) | 5,292 | (230,078 | ) | |||||||||||||||||||||||||||
Result of companies accounted for using the equity method | (20,158 | ) | (20,158 | ) | ||||||||||||||||||||||||||||||||
Loss from other investments | (4,256 | ) | (4,256 | ) | ||||||||||||||||||||||||||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 130,299 | 297 | 10,294 | (34,144 | ) | 5,292 | 112,038 | |||||||||||||||||||||||||||||
Income tax | (63,045 | ) | 104 | (3,088 | ) | (1 | ) | 10,243 | (2 | ) | 4,271 | (3 | ) | (51,515 | ) | |||||||||||||||||||||
PROFIT FROM CONTINUING OPERATIONS | 67,254 | 401 | 7,206 | (23,901 | ) | 9,563 | 60,523 | |||||||||||||||||||||||||||||
Profit attributable to minority interests | (14,346 | ) | (19,530 | ) | (3 | ) | (33,876 | ) | ||||||||||||||||||||||||||||
PROFIT FROM CONTINUING OPERATIONS ATTRIBUTABLE TO THE PARENT | 52,908 | 401 | 7,206 | (23,901 | ) | (9,967 | ) | 26,647 | ||||||||||||||||||||||||||||
BASIC EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros)(*) | 0.241 | 0.010 | (0.052 | ) | ||||||||||||||||||||||||||||||||
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros)(*) | (0.047 | ) | ||||||||||||||||||||||||||||||||||
(*) | For information regarding basic earnings per share calculations, see “Unaudited Pro Forma Combined Per Share Information”. |
135
FOR THE YEAR ENDED DECEMBER 31, 2009
• | The preferred dividends to be paid to DLJSAP amounting to €19 million. | |
• | The tax effect of the preferred annual dividend to be paid amounting to €6 million. | |
• | A decrease in interest expenses amounting to €5 million due to the repayment of €218 million of debt obligations. | |
• | The tax effect of the aforementioned decrease in interest expenses amounting to €2 million. |
136
FOR THE YEAR ENDED DECEMBER 31, 2009 — (Continued)
For The Year Ended | ||||
December 31, 2009 | ||||
Statement of Operations Data (in thousands of euros): | ||||
Profit from operations | 366,530 | |||
Profit from continuing operations | 61,067 | |||
Profit from continuing operations attributable to the parent | 27,191 |
137
FOR THE YEAR ENDED DECEMBER 31, 2009
12/31/2009 | ||||
Pro-forma profit for the year from continuing operations attributable to the Parent (thousands of euros)(*) | (43,876 | ) | ||
Weighted average number of ordinary shares used in calculating basic earnings per share (thousands of shares) | 846,978 | |||
Effect of dilution: | ||||
Shares issued with dilutive effect under option (warrants) | 80,492 | |||
Adjusted weighted average number of ordinary shares used in calculating diluted earnings per share | 927,470 | |||
Basic earnings per share from continuing operations (euros) | (0.052 | ) | ||
Diluted earnings per share from continuing operations (euros) | (0.047 | ) |
(*) | For the purpose of calculating basic earnings per share, the profit from continuing operations attributable to the parent entity (€26 million) has been adjusted for the preference dividends (€67 million). |
Prisa has calculated Profit for the year attributable to the Parent as follows: | Thousands of Euros | |||
Adjusted pro-forma profit for the year from continuing operations attributable to the Parent (thousand of euros) | 26,647 | |||
Annual dividend related to Class B convertible non-voting shares | (70,523 | ) | ||
Pro-forma Profit for the year attributable to the Parent | (43,876 | ) |
The assumptions used by Prisa in calculating basic earnings per share are as follows: | Thousands of Shares | |||
Prisa’s ordinary shares pre transaction | 219,135 | |||
Capital increase, Class A ordinary shares | 224,856 | |||
Capital increase, Class B preferred shares (**) | 402,987 | |||
Weighted average number of ordinary shares used in calculating basic earnings per share | 846,978 |
(**) | Holders of Class B convertible non-voting shares participate in any ordinary dividend to be received by the holders of Class A ordinary shares. |
138
FOR THE YEAR ENDED DECEMBER 31, 2009 — (Continued)
The assumptions used by Prisa in calculating diluted earnings per share are as follows: | Thousands of Shares | |||
Weighted average number of ordinary shares under Prisa’s current shareholders warrant option | 241,049 | |||
Weighted average number of ordinary shares that have been issued at average market price (241.049 shares x €2/€3.002) | (160,557 | ) | ||
Shares with dilutive effect under Prisa’s current shareholders warrant option | 80,492 |
139
As of June 30,2010 | ||||
Cash received (Thousands of euros): | ||||
Cash received by Prisa from Liberty (base case) | 712,738 | |||
Cash payment to Liberty’s stockholders (base case) | 55,053 | |||
Cash payment to Liberty’s stockholders electing mixed consideration (sensitivity analysis) | (42,557 | ) | ||
Cash payment to Liberty’s stockholders electing cash (sensitivity analysis) | (251,765 | ) | ||
Net cash to received by Prisa (maximum redemptions/cash election) | 473,469 |
Thousands of Euros | ||||
Expenses associated with Prisa’s capital increase | (35,000 | ) | ||
Liberty’s other transaction expenses | (36,534 | ) | ||
Cash paid by or at the direction of Liberty Virginia to holders of Liberty warrants | (38,298 | ) | ||
Cash payment to Liberty’s stockholders electing cash | (251,765 | ) | ||
Cash payment to Liberty’s stockholders electing mixed consideration | (42,557 | ) | ||
Repayment debt obligations with cash received from Liberty | (243,475 | ) | ||
Total of pro forma adjustments to cash | (647,629 | ) |
140
Pro Forma | ||||||||||||||||||||
Adjustments | ||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | non-convertible | Pro Forma | ||||||||||||||||
06/30/2010 | 06/30/2010 | Adjustments | Shares | 06/30/2010 | ||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
A) NON-CURRENT ASSETS | 6,434,051 | 573 | — | — | 6,434,624 | |||||||||||||||
I. PROPERTY, PLANT AND EQUIPMENT | 341,048 | 341,048 | ||||||||||||||||||
II. GOODWILL | 4,325,147 | 4,325,147 | ||||||||||||||||||
III. INTANGIBLE ASSETS | 358,398 | 358,398 | ||||||||||||||||||
IV. NON-CURRENT FINANCIAL ASSETS | 58,191 | 58,191 | ||||||||||||||||||
VI. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 29,202 | 29,202 | ||||||||||||||||||
VII. DEFERRED TAX ASSETS | 1,317,841 | 573 | 1,318,414 | |||||||||||||||||
VIII. OTHER NON-CURRENT ASSETS | 4,224 | 4,224 | ||||||||||||||||||
B) CURRENT ASSETS | 1,659,908 | 843,396 | (630,242 | ) | (9,838 | ) | 1,863,224 | |||||||||||||
I. INVENTORIES | 223,057 | 223,057 | ||||||||||||||||||
II. TRADE AND OTHER RECEIVABLES | ||||||||||||||||||||
1. Trade receivables for sales and services | 1,060,756 | 1,060,756 | ||||||||||||||||||
2. Receivable from associates | 16,853 | 16,853 | ||||||||||||||||||
3. Receivable from public authorities | 86,080 | 269 | 7,549 | 93,898 | ||||||||||||||||
4. Other receivables | 257,905 | 123 | 258,028 | |||||||||||||||||
5. Allowances | (78,908 | ) | (78,908 | ) | ||||||||||||||||
1,342,686 | 392 | 7,549 | — | 1,350,627 | ||||||||||||||||
III. CURRENT FINANCIAL ASSETS | 3,068 | 3,068 | ||||||||||||||||||
IV. CASH AND CASH EQUIVALENTS | 90,872 | 843,004 | (637,791 | ) | (9,838 | ) | 286,247 | |||||||||||||
V. OTHER CURRENT ASSETS | 225 | 225 | ||||||||||||||||||
C) ASSETS HELD FOR SALE | 250,812 | — | — | 250,812 | ||||||||||||||||
TOTAL ASSETS | 8,344,771 | 843,969 | (630,242 | ) | (9,838 | ) | 8,548,660 | |||||||||||||
EQUITY AND LIABILITIES | ||||||||||||||||||||
A) EQUITY | 1,568,283 | 567,367 | (114,979 | ) | (190,903 | ) | 1,829,768 | |||||||||||||
I. SHARE CAPITAL | 21,914 | 598,423 | (580,511 | ) | 39,826 | |||||||||||||||
II. PREFERRED SHARES | 31,151 | 31,151 | ||||||||||||||||||
III. SHARE PREMIUM | 112,665 | 424,407 | (190,903 | ) | 346,169 | |||||||||||||||
IV. OTHER RESERVES | 712,871 | (32,995 | ) | 9,974 | 689,850 | |||||||||||||||
V. ACCUMULATED PROFIT | 488,548 | 2,503 | 491,051 | |||||||||||||||||
— From prior years | 427,666 | 8,760 | 436,426 | |||||||||||||||||
— For the year: Profit attributable to the Parent | 60,882 | (6,257 | ) | 54,625 | ||||||||||||||||
VI. TREASURY SHARES | — | — | ||||||||||||||||||
VII. EXCHANGE DIFFERENCES | 29,361 | (564 | ) | 28,797 | ||||||||||||||||
VIII. MINORITY INTERESTS | 202,924 | 202,924 | ||||||||||||||||||
B) NON-CURRENT LIABILITIES | 2,259,010 | 271,791 | (393,526 | ) | 158,095 | 2,295,370 | ||||||||||||||
I. NON-CURRENT BANK BORROWINGS | 1,743,582 | (121,735 | ) | 1,621,847 | ||||||||||||||||
II. NON-CURRENT FINANCIAL LIABILITIES | 359,831 | 251,765 | (251,765 | ) | 158,095 | 517,926 | ||||||||||||||
III. DEFERRED TAX LIABILITIES | 45,458 | 45,458 | ||||||||||||||||||
IV. LONG-TERM PROVISIONS | 93,524 | 93,524 | ||||||||||||||||||
V. OTHER NON-CURRENT LIABILITIES | 16,615 | 20,026 | (20,026 | ) | 16,615 |
141
Pro Forma | ||||||||||||||||||||
Adjustments | ||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | non-convertible | Pro Forma | ||||||||||||||||
06/30/2010 | 06/30/2010 | Adjustments | Shares | 06/30/2010 | ||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||
C) CURRENT LIABILITIES | 4,321,789 | 4,811 | (121,737 | ) | 22,970 | 4,227,833 | ||||||||||||||
I. TRADE PAYABLES | 1,127,247 | 4,811 | 1,132,058 | |||||||||||||||||
II. PAYABLE TO ASSOCIATES | 15,998 | 15,998 | ||||||||||||||||||
III. OTHER NON-TRADE PAYABLES | 102,109 | 102,109 | ||||||||||||||||||
IV. CURRENT BANK BORROWINGS | 2,752,330 | (121,737 | ) | 2,630,593 | ||||||||||||||||
V. CURRENT FINANCIAL LIABILITIES | 3,708 | 22,970 | 26,678 | |||||||||||||||||
VI. PAYABLE TO PUBLIC AUTHORITIES | 283,986 | 283,986 | ||||||||||||||||||
VII. PROVISIONS FOR RETURNS | 6,815 | 6,815 | ||||||||||||||||||
VIII. OTHER CURRENT LIABILITIES | 29,596 | 29,596 | ||||||||||||||||||
D)LIABILITIES HELD FOR SALE | 195,689 | — | — | — | 195,689 | |||||||||||||||
TOTAL EQUITY AND LIABILITIES | 8,344,771 | 843,969 | (630,242 | ) | (9,838 | ) | 8,548,660 | |||||||||||||
142
Pro Forma | ||||||||||||||||||||
Adjustments | ||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | non-convertible | Pro Forma | ||||||||||||||||
06/30/2010 | 12/31/2009 | Adjustments | Shares | 06/30/2010 | ||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||
Revenue | 1,436,868 | 1,436,868 | ||||||||||||||||||
Other income | 140,430 | 140,430 | ||||||||||||||||||
OPERATING INCOME | 1,577,298 | — | — | — | 1,577,298 | |||||||||||||||
Cost of materials used | (568,707 | ) | (568,707 | ) | ||||||||||||||||
Staff costs | (306,229 | ) | (306,229 | ) | ||||||||||||||||
Depreciation and amortization charge | (86,670 | ) | (86,670 | ) | ||||||||||||||||
Outside services | (409,759 | ) | (6,798 | ) | (416,557 | ) | ||||||||||||||
Variation in operating allowances | (9,895 | ) | (9,895 | ) | ||||||||||||||||
OPERATING EXPENSES | (1,381,260 | ) | (6,798 | ) | — | — | (1,388,058 | ) | ||||||||||||
PROFIT FROM OPERATIONS | 196,038 | (6,798 | ) | — | — | 189,240 | ||||||||||||||
Finance income | 4,451 | 139 | 4,590 | |||||||||||||||||
Finance costs | (89,552 | ) | 3,170 | (10,409 | ) | (96,791 | ) | |||||||||||||
Changes in value of financial instruments | 2,834 | 2,834 | ||||||||||||||||||
Exchange differences (net) | (3,741 | ) | (3,741 | ) | ||||||||||||||||
FINANCIAL LOSS | (86,008 | ) | 139 | 3,170 | (10,409 | ) | (93,108 | ) | ||||||||||||
Result of companies accounted for using the equity method | (461 | ) | (461 | ) | ||||||||||||||||
Loss from other investments | (2,966 | ) | (2,966 | ) | ||||||||||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 106,603 | (6,659 | ) | 3,170 | (10,409 | ) | 92,705 | |||||||||||||
Income tax | (28,580 | ) | 402 | (951 | ) | 3,123 | (26,006 | ) | ||||||||||||
PROFIT FROM CONTINUING OPERATIONS | 78,023 | (6,257 | ) | 2,219 | (7,286 | ) | 66,699 | |||||||||||||
Profit attributable to minority interests | (17,053 | ) | — | (17,053 | ) | |||||||||||||||
PROFIT FROM CONTINUING OPERATIONS ATTRIBUTABLE TO THE PARENT | 60,970 | (6,257 | ) | 2,219 | (7,286 | ) | 49,646 | |||||||||||||
BASIC EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros) | 0.278 | (0.05 | ) | 0.032 | ||||||||||||||||
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros) | 0.029 | |||||||||||||||||||
143
Pro Forma | ||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||
Prisa Class B | ||||||||||||||||||||||||
non- | Pro Forma | |||||||||||||||||||||||
PRISA | LIBERTY | Pro Forma | convertible | Adjustments | Pro Forma | |||||||||||||||||||
12/31/2009 | 12/31/2009 | Adjustments | Shares | Santillana Sale | 12/31/2009 | |||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||
Revenue | 3,155,105 | 3,155,105 | ||||||||||||||||||||||
Other income | 53,479 | 53,479 | ||||||||||||||||||||||
OPERATING INCOME | 3,208,584 | — | — | — | — | 3,208,584 | ||||||||||||||||||
Cost of materials used | (1,125,648 | ) | (1,125,648 | ) | ||||||||||||||||||||
Staff costs | (619,972 | ) | (619,972 | ) | ||||||||||||||||||||
Depreciation and amortization charge | (196,657 | ) | (196,657 | ) | ||||||||||||||||||||
Outside services | (835,672 | ) | (2,452 | ) | (838,124 | ) | ||||||||||||||||||
Variation in operating allowances | (55,547 | ) | (55,547 | ) | ||||||||||||||||||||
Other expenses | (6,106 | ) | (6,106 | ) | ||||||||||||||||||||
OPERATING EXPENSES | (2,839,602 | ) | (2,452 | ) | — | — | — | (2,842,054 | ) | |||||||||||||||
PROFIT FROM OPERATIONS | 368,982 | (2,452 | ) | — | — | — | 366,530 | |||||||||||||||||
Finance income | 15,758 | 2,749 | 18,507 | |||||||||||||||||||||
Finance costs | (252,107 | ) | 4,505 | (27,578 | ) | 5,292 | (269,888 | ) | ||||||||||||||||
Changes in value of financial instruments | 22,185 | 22,185 | ||||||||||||||||||||||
Exchange differences (net) | (105 | ) | (105 | ) | ||||||||||||||||||||
FINANCIAL LOSS | (214,269 | ) | 2,749 | 4,505 | (27,578 | ) | 5,292 | (229,301 | ) | |||||||||||||||
Result of companies accounted for using the equity method | (20,158 | ) | (20,158 | ) | ||||||||||||||||||||
Loss from other investments | (4,256 | ) | (4,256 | ) | ||||||||||||||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 130,299 | 297 | 4,505 | (27,578 | ) | 5,292 | 112,815 | |||||||||||||||||
Income tax | (63,045 | ) | 104 | (1,352 | ) | 8,274 | 4,271 | (51,748 | ) | |||||||||||||||
PROFIT FROM CONTINUING OPERATIONS | 67,254 | 401 | 3,153 | (19,304 | ) | 9,563 | 61,067 | |||||||||||||||||
Profit attributable to minority interests | (14,346 | ) | (19,530 | ) | (33,876 | ) | ||||||||||||||||||
PROFIT FROM CONTINUING OPERATIONS ATTRIBUTABLE TO THE PARENT | 52,908 | 401 | 3,153 | (19,304 | ) | (9,967 | ) | 27,191 | ||||||||||||||||
BASIC EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros) | 0.241 | 0.01 | (0.038 | ) | ||||||||||||||||||||
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS (in euros) | (0.034 | ) | ||||||||||||||||||||||
144
145
146
147
148
149
150
151
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• | file a certificate of dissolution with the Delaware Secretary of State; | |
• | give the trustee of the trust account notice to commence turning over all trust account funds to Liberty’s transfer agent for distribution according to the plan of distribution; | |
• | as provided in the plan of distribution, pay or adequately provide for the payment of its known liabilities, including (i) existing liabilities for taxes, (ii) unpaid liabilities to service providers and other creditors, including expenses of the dissolution and liquidation, and (iii) its obligations to Liberty’s stockholders in accordance with its restated certificate of incorporation; | |
• | wind up its remaining business activities; | |
• | comply with U.S. Securities and Exchange Commission filing requirements, for so long as it is required to do so; and | |
• | make any tax and other regulatory filings. |
153
154
155
156
• | Audiovisual, which includes pay television,free-to-air television and television and film production; | |
• | Education, which includes the publishing and sale of general books, educational material and training materials; | |
• | Radio, which includes the sale of advertising on Prisa’s networks; and | |
• | Press, which includes the publishing of newspapers and magazines and the sale of advertising in such publications. |
• | Prisa founded, but does not begin operations. |
• | First issue ofEl Paíspublished. |
• | Prisa acquires Cadena SER. | |
• | Prisa acquiresCinco Días. |
• | Sogecable, 25.0% owned by Prisa, is awarded a television license to operate Canal+, the first pay television business to operate in Spain. |
• | Prisa acquires a controlling equity interest inASand launches websites forEl País, Digital+,ASand Cadena SER. |
157
• | Sogecable launches Canal Satélite Digital, Spain’s leading multi-channel digitaldirect-to-home platform. |
• | Prisa expands its activities into the music market by founding Gran Vía Musical. | |
• | Prisa acquires an equity interest in Caracol, S.A., or Radio Caracol—the largest radio group in Colombia—and creates Participaciones de Radio Latinoamericana S.L., or PRL, through which Prisa carries out its radio operations in Chile, Costa Rica, Panama, the United States and France. |
• | Prisa launches its initial public offering and begins trading through the Spanish stock market interconnection system. | |
• | Prisa expands its activities to media advertising sales through the acquisition of GDM. | |
• | Prisa expands its activities to book publishing and printing through Santillana and Dédalo, respectively. |
• | Prisa establishes audiovisual producer Plural Entertainment, to develop and produce audiovisual content. | |
• | Prisa enters the radio market in Mexico through an agreement with Grupo Televisa S.A.B., or Televisa, to develop the radio market in Mexico, which involves the acquisition of a 50.0% equity interest in Sistema Radiópolis, S.A. de C.V., which is referred to as Radiópolis. Radiópolis is managed by Prisa. | |
• | Prisa acquires Editora Moderna Ltda., or Editora Moderna, in Brazil. |
• | Prisa organizes Grupo Latino de Radio S.A., or GLR, as a holding company to restructure its radio businesses in Latin America, and Prisa’s equity interest in PRL, Radiópolis and Radio Caracol are transferred to GLR. |
• | Prisa enters the Portuguese media market through the acquisition of 100.0% of the equity of Vertix, which owns 33.0% of the equity of Media Capital. |
• | Prisa increases its ownership interest in Sogecable to 42.9%. | |
• | Prisa combines its radio activities in Latin America and Spain into Unión Radio. |
• | Prisa acquires all of the shares of Iberoamericana Radio Chile, S.A. through GLR Chile, Ltda. | |
• | Prisa increases its ownership interest in Media Capital to 94.7% |
• | Prisa acquires the remaining outstanding share capital of Sogecable, increasing its ownership interest to 100%. |
158
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160
Audiovisual | Education | Radio | Press | |||
Pay Television | Education Publishing | Radio in Spain | El País | |||
Free-to-air Television | General Publishing | International Radio | AS | |||
Audiovisual Production | Training | Music Events | Cinco Dias | |||
Magazines |
Audiovisual | Education | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | 1,770,743 | 2,169,095 | 2,105,729 | 616,885 | 607,650 | 560,000 | ||||||||||||||||||
Adjusted EBITDA(1) | 343,054 | 381,838 | 398,291 | 152,115 | 134,348 | 119,920 | ||||||||||||||||||
Profit from operations | 204,752 | 226,745 | 219,193 | 90,004 | 77,008 | 75,056 | ||||||||||||||||||
Adjusted EBITDA margin | 19.4 | % | 17.6 | % | 18.9 | % | 24.7 | % | 22.1 | % | 21.4 | % | ||||||||||||
Profit from operations margin | 11.6 | % | 10.5 | % | 10.4 | % | 14.6 | % | 12.7 | % | 13.4 | % |
Radio | Press | |||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||
Revenue | 377,166 | 415,260 | 422,755 | 415,788 | 503,938 | 572,277 | ||||||||||||||||||||||||
Adjusted EBITDA(1) | 100,026 | 102,448 | 115,595 | 52,598 | 66,931 | 136,730 | ||||||||||||||||||||||||
Profit from operations | 82,027 | 86,679 | 101,786 | 29,321 | 51,565 | 121,508 | ||||||||||||||||||||||||
Adjusted EBITDA margin | 26.5 | % | 24.7 | % | 27.3 | % | 12.7 | % | 13.3 | % | 23.9 | % | ||||||||||||||||||
Profit from operations margin | 21.7 | % | 20.9 | % | 24.1 | % | 7.1 | % | 10.2 | % | 21.2 | % |
Other(2) | Total | ||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||
Revenue | 28,001 | 305,405 | 35,267 | 3,208,584 | 4,001,348 | 3,696,028 | |||||||||||||||||||||||
Adjusted EBITDA(1) | (24,042) | 262,779 | 9,087 | 623,751 | 948,344 | 779,623 | |||||||||||||||||||||||
Profit from operations | (37,122) | 256,194 | 2,388 | 368,982 | 698,191 | 519,931 | |||||||||||||||||||||||
Adjusted EBITDA margin | (85.9) | % | 86.0 | % | 25.8 | % | 19.4 | % | 23.7 | % | 21.1 | % | |||||||||||||||||
Profit from operations margin | (132.6) | % | 83.9 | % | 6.8 | % | 11.5 | % | 17.4 | % | 14.1 | % |
Audiovisual | Education | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 860,134 | 986,703 | 300,063 | 278,382 | ||||||||||||
Adjusted EBITDA(l) | 139,662 | 164,562 | 73,223 | 65,235 | ||||||||||||
Profit from operations | 83,120 | 94,930 | 50,336 | 37,117 | ||||||||||||
Adjusted EBITDA margin | 16.2 | % | 16.7 | % | 24.4 | % | 23.4 | % | ||||||||
Profit from operations margin | 9.7 | % | 9.6 | % | 16.8 | % | 13.3 | % |
161
Radio | Press | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 197,470 | 182,648 | 206,187 | 212,950 | ||||||||||||
Adjusted EBITDA(l) | 51,431 | 43,096 | 24,529 | 24,424 | ||||||||||||
Profit from operations | 43,160 | 35,135 | 17,966 | 18,291 | ||||||||||||
Adjusted EBITDA margin | 26.0 | % | 23.6 | % | 11.9 | % | 11.5 | % | ||||||||
Profit from operations margin | 21.9 | % | 19.2 | % | 8.7 | % | 8.6 | % |
Other | Total | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 13,444 | 16,998 | 1,577,298 | 1,677,681 | ||||||||||||
Adjusted EBITDA(1) | 3,642 | 1,412 | 292,487 | 298,729 | ||||||||||||
Profit from operations | 1,455 | (2,952 | ) | 196,037 | 182,521 | |||||||||||
Adjusted EBITDA margin | 27.1 | % | 8.3 | % | 18.5 | % | 17.8 | % | ||||||||
Profit from operations margin | 10.8 | % | (17.4 | )% | 12.4 | % | 10.9 | % |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. Prisa defines “Adjusted EBITDA” as profit from operations, as shown on Prisa’s financial statements, plus asset depreciation expense, plus changes in operating allowances, plus impairment of assets and plus goodwill deterioration. Prisa uses Adjusted EBITDA as a financial measure to assess the performance of its businesses. Prisa presents Adjusted EBITDA because it believes Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in evaluating similar issuers, a significant number of which present Adjusted EBITDA (or a similar measure) when reporting their results. | |
Although Prisa uses Adjusted EBITDA as a financial measure to assess the performance of its businesses, it is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “— Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. | ||
(2) | “Other” includes Prisa’s digital platform and Prisa’s distribution, advertising, real estate and corporate activities, and the eliminations and adjustments on consolidation. “Other” does not include Dédalo, which is accounted for under the equity method. 2008 figures include the impact of the sale of three of Prisa’s real estate holdings in Madrid and Barcelona. See discussion in “— Operating and Financial Review.” |
Audiovisual | Education | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | 55.2% | 54.2% | 57.0% | 19.2% | 15.2% | 15.2% | ||||||||||||||||||
Adjusted EBITDA(1) | 55.0% | 40.3% | 51.1% | 24.4% | 14.2% | 15.4% | ||||||||||||||||||
Profit from operations | 55.5% | 32.5% | 42.2% | 24.4% | 11.0% | 14.4% |
162
Radio | Press | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | 11.8% | 10.4% | 11.4% | 13.0% | 12.6% | 15.5% | ||||||||||||||||||
Adjusted EBITDA | 16.0% | 10.8% | 14.8% | 8.4% | 7.1% | 17.5% | ||||||||||||||||||
Profit from operations | 22.2% | 12.4% | 19.6% | 7.9% | 7.4% | 23.4% |
Other(2) | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Revenue | 0.8% | 7.6% | 0.9% | |||||||||
Adjusted EBITDA | (3.9)% | 27.7% | 1.2% | |||||||||
Profit from operations | (10.1)% | 36.7% | 0.5% |
Audiovisual | Education | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 54.5% | 58.8% | 19.0% | 16.6% | ||||||||||||
Adjusted EBITDA(1) | 47.7% | 55.1% | 25.0% | 21.8% | ||||||||||||
Profit from operations | 42.4% | 52.0% | 25.7% | 20.3% | ||||||||||||
Radio | Press | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 12.5% | 10.9% | 13.1% | 12.7% | ||||||||||||
Adjusted EBITDA(1) | 17.6% | 14.4% | 8.4% | 8.2% | ||||||||||||
Profit from operations | 22.0% | 19.2% | 9.2% | 10.0% | ||||||||||||
Other | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Revenue | 0.9% | 1.0% | ||||||||||||||
Adjusted EBITDA(1) | 1.3% | 0.5% | ||||||||||||||
Profit from operations | 0.7% | (1.5)% |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “— Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. | |
(2) | “Other” includes Prisa’s digital platform and Prisa’s distribution, advertising, real estate and corporate activities, and the eliminations and adjustments on consolidation. “Other” does not include Dédalo, which is accounted for under the equity method. 2008 figures include the impact of the sale of three of Prisa’s real estate holdings in Madrid and Barcelona. See discussion in “— Operating and Financial Review.” |
163
Sogecable | Media Capital(2) | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | 1,525,915 | 1,872,872 | 1,809,651 | 267,708 | 309,470 | 292,927 | ||||||||||||||||||
Adjusted EBITDA(1) | 290,277 | 320,832 | 336,608 | 52,484 | 61,221 | 75,216 | ||||||||||||||||||
Profit from operations | 167,021 | 187,311 | 176,893 | 37,438 | 39,649 | 57,842 | ||||||||||||||||||
Adjusted EBITDA margin | 19.0 | % | 17.1 | % | 18.6 | % | 19.6 | % | 19.8 | % | 25.7 | % | ||||||||||||
Profit from operations margin | 10.9 | % | 10.0 | % | 9.8 | % | 14.0 | % | 12.8 | % | 19.7 | % |
Other(3) | Total | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | (22,880) | (13,247) | 3,151 | 1,770,743 | 2,169,095 | 2,105,729 | ||||||||||||||||||
Adjusted EBITDA | 293 | (215) | (13,533) | 343,054 | 381,838 | 398,291 | ||||||||||||||||||
Profit from operations | 293 | (215) | (15,542) | 204,752 | 226,745 | 219,193 | ||||||||||||||||||
Adjusted EBITDA margin | — | — | — | 19.4 | % | 17.6 | % | 18.9 | % | |||||||||||||||
Profit from operations margin | — | — | — | 11.6 | % | 10.5 | % | 10.4 | % |
164
Sogecable | Media Capital | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 751,046 | 866,253 | 120,453 | 134,703 | ||||||||||||
Adjusted EBITDA(1) | 118,785 | 140,125 | 20,871 | 24,256 | ||||||||||||
Profit from operations | 68,435 | 76,852 | 14,679 | 17,897 | ||||||||||||
Adjusted EBITDA margin | 15.8 | % | 16.2 | % | 17.3 | % | 18.0 | % | ||||||||
Profit from operations margin | 9.1 | % | 8.9 | % | 12.2 | % | 13.3 | % |
Other | Total | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | (11,365) | (14,253) | 860,134 | 986,703 | ||||||||||||
Adjusted EBITDA(1) | 6 | 181 | 139,662 | 164,562 | ||||||||||||
Profit from operations | 6 | 181 | 83,120 | 94,930 | ||||||||||||
Adjusted EBITDA margin | — | — | 16.2 | % | 16.7 | % | ||||||||||
Profit from operations margin | — | — | 9.7 | % | 9.6 | % |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “— Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. | |
(2) | For comparison purposes, Media Capital includes the data for Plural Entertainment España, although this business line was transferred to Media Capital in April 2008. | |
(3) | “Other” includes Localia, the local television business line, classified since 2008 as a discontinued operation, and the adjustments and eliminations on consolidation. |
Sogecable | Media Capital(1) | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | 86.2% | 86.3% | 85.9% | 15.1% | 14.3% | 13.9% | ||||||||||||||||||
Adjusted EBITDA | 84.6% | 84.0% | 84.5% | 15.3% | 16.0% | 18.9% | ||||||||||||||||||
Profit from operations | 81.6% | 82.6% | 80.7% | 18.3% | 17.5% | 26.4% |
Other(2) | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Revenue | (1.3)% | (0.6)% | 0.2% | |||||||||
Adjusted EBITDA | 0.1% | (0.0)% | (3.4)% | |||||||||
Profit from operations | 0.1% | (0.1)% | (7.1)% |
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Sogecable | Media Capital | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 87.3 | % | 87.8 | % | 14.0 | % | 13.7 | % | ||||||||
Adjusted EBITDA(1) | 85.1 | % | 85.2 | % | 14.9 | % | 14.7 | % | ||||||||
Profit from operations | 82.3 | % | 81.0 | % | 17.7 | % | 18.9 | % | ||||||||
Other | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Revenue | (1.3) | % | (1.4) | % | ||||||||||||
Adjusted EBITDA(1) | 0.0 | % | 0.1 | % | ||||||||||||
Profit from operations | 0.0 | % | 0.2 | % |
(1) | For comparison purposes, Media Capital includes the data for Plural Entertainment España, although this business line was transferred to Media Capital in April 2008. | |
(2) | “Other” includes Localia, the local television business line, classified since 2008 as a discontinued operation, and the adjustments and eliminations on consolidation. |
166
Sogecable | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(Thousands of euros) | ||||||||||||
Revenue | 1,525,915 | 1,872,872 | 1,809,651 | |||||||||
Digital+(1) | 1,251,563 | 1,546,119 | 1,522,160 | |||||||||
Cuatro | 274,352 | 326,753 | 287,491 | |||||||||
Adjusted EBITDA(2) | 290,277 | 320,832 | 336,608 | |||||||||
Digital+ | 307,179 | 367,336 | 332,653 | |||||||||
Cuatro | (16,902 | ) | (46,504 | ) | 3,955 | |||||||
Profit from operations | 167,021 | 187,311 | 176,893 | |||||||||
Digital+ | 187,282 | 237,826 | 176,729 | |||||||||
Cuatro | (20,261 | ) | (50,515 | ) | 164 | |||||||
Adjusted EBITDA margin | 19.0 | % | 17.1 | % | 18.6 | % | ||||||
Digital+ | 24.5 | % | 23.8 | % | 21.9 | % | ||||||
Cuatro | (6.2 | )% | (14.2 | )% | 1.4 | % | ||||||
Profit from operations margin | 10.9 | % | 10.0 | % | 9.8 | % | ||||||
Digital+ | 15.0 | % | 15.4 | % | 11.6 | % | ||||||
Cuatro | (7.4 | )% | (15.5 | )% | 0.1 | % |
Six Months Ended June 30, | ||||||||
2010 | 2009 | |||||||
Revenue | 751,046 | 866,253 | ||||||
Digital+(1) | 567,238 | 733,488 | ||||||
Cuatro | 222,724 | 146,142 | ||||||
Consolidated adjustments | (38,916 | ) | (13,377 | ) | ||||
Adjusted EBITDA(2) | 118,785 | 140,125 | ||||||
Digital+ | 131,905 | 154,209 | ||||||
Cuatro | (13,120 | ) | (14,084 | ) | ||||
Profit from operations | 68,435 | 76,852 | ||||||
Digital+ | 82,176 | 91,384 | ||||||
Cuatro | (13,741 | ) | (14,532 | ) | ||||
Adjusted EBITDA margin | 15.8 | % | 16.2 | % | ||||
Digital+ | 23.3 | % | 21.0 | % | ||||
Cuatro | (5.9 | )% | (9.6 | )% | ||||
Profit from operations margin | 9.1 | % | 9.0 | % | ||||
Digital+ | 14.5 | % | 12.5 | % | ||||
Cuatro | (6.2 | )% | (9.9 | )% |
(1) | Digital+ includes the pay television business and other related activities. | |
(2) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “— Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a |
167
reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. |
Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
Number of subscribers (in thousands) | 1,785 | 1,931 | 1,846 | 2,035 | 2,065 | |||||||||||||||
ARPU (in euros) | 42.0 | 42.9 | 41.5 | 44.6 | 45.1 |
168
• | New iPlus pricing model launched in May 2010 (offering set-top unit leases, for €5 or €10 per month, instead of buying the unit for more than €150) has driven more than 110,000 new iPlus users during the first eight months of 2010. | |
• | Enhanced HD offering with 14 channels offered as of August 2010. Prisa was first to bring HD broadcasts to Spain in early 2008 with Canal+HD. Prisa believes that its pay television platform is the only platform in Spain capable of bringing HD TV to all of its customers. New marketing efforts are underway with the goal of increasing customer loyalty and satisfaction, and thereby increasing penetration in the Spanish market. | |
• | Spain’s first 3-D broadcasts in June 2010, with programming including 8 live FIFA World Cup matches as well as concerts and other events. | |
• | Video-on-Demand offering expected to launch during early 2011. |
• | PVR: Digital+ (5%, FY2009; 12% July 2010) compared to 67% at Sky (FY2009). |
– | The number of Digital+ iPlus subscribers has shown significant growth, from approximately 92,000 subscribers as of December 31, 2009, to 169,000 subscribers as of March 31, 2010, 176,000 subscribers as of June 30, 2010 and 203,000 subscribers as of August 31, 2010. |
• | HD Service: Digital+ (5%, FY2009; 12% July 2010) compared to 47% at Sky (FY2009). |
– | The number of Digital+ HD channels has also shown some growth, from 6 channels as of December 31, 2009, to 10 channels as of March 31, 2010, and 14 channels as of June 30, 2010 and August 31, 2010. |
• | MultiRoom: Digital+ (2%, FY2009; 4% July 2010) compared to 21% at Sky (FY2009). |
– | number of Digital+ Multiroom subscribers has also grown, from approximately 39,000 subscribers as of December 31, 2009, to 43,000 subscribers as of March 31, 2010, 56,000 subscribers as of June 30, 2010 and 72,000 susbcribers as of August 31, 2010. |
• | Out of 5.84 million ADSL subscribers in Spain, only 14% subscribe to pay television (although nearly 40% of ADSL subscribers do not have access to pay television services), as of March 31, 2010. | |
• | Out of 1.8 million cable subscribers, only approximately 72% subscribe to pay television, as of March 31, 2010. | |
• | Other pay television markets that Prisa believes show potential for growth are the direct-to-home (DTH) and pay digital terrestrial television (pay DTT) markets, with only 1.8 million and 0.19 million subscribers in Spain, respectively, as of March 31, 2010. |
169
• | Expansion of media content sales to international markets, including Brazil and Angola. | |
• | Streamlining production operations with a “one-stop-shop” consolidated audiovisual production facility in Lisbon. |
170
Six Months Ended June 30, | Localia | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||
Revenue | 9 | 9 | 122 | 19 | 27.120 | |||||||||||||||
Adjusted EBITDA(1) | 6 | 181 | 293 | (215 | ) | (13,530 | ) | |||||||||||||
Profit from operations | 6 | 181 | 293 | (215 | ) | (15,542 | ) | |||||||||||||
Adjusted EBITDA margin | — | — | — | — | (49.9 | )% | ||||||||||||||
Profit from operations margin | — | — | — | — | (57.3 | )% |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “— Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. |
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Radio in Spain | International Radio | |||||||||||||||||||||||||||||||||||||||
Six Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2010 | 2009 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||
Revenue | 129,821 | 129,900 | 254,206 | 295,473 | 307,831 | 53,277 | 39,235 | 92,442 | 94,803 | 88,604 | ||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | 37,814 | 38,791 | 76,055 | 88,107 | 102,813 | 11,450 | 2,730 | 18,789 | 12,240 | 11,262 | ||||||||||||||||||||||||||||||
Profit from operations | 33,301 | 33,943 | 64,983 | 78,567 | 94,343 | 8,449 | (149) | 12,808 | 6,235 | 6,192 | ||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 29.1 | % | 29.9 | % | 29.9 | % | 29.8 | % | 33.4 | % | 21.5 | % | 7.0 | % | 20.3 | % | 12.9 | % | 12.7 | % | ||||||||||||||||||||
Profit from operations margin | 25.7 | % | 26.1 | % | 25.6 | % | 26.6 | % | 30.6 | % | 15.9 | % | (0.4) | % | 13.9 | % | 6.6 | % | 7.0 | % |
Other(2) | Total | |||||||||||||||||||||||||||||||||||||||
Six Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2010 | 2009 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||
Revenue | 14,372 | 13,513 | 30,518 | 24,984 | 26,320 | 197,470 | 182,648 | 377,166 | 415,260 | 422,755 | ||||||||||||||||||||||||||||||
Adjusted EBITDA | 2,167 | 1,575 | 5,182 | 2,101 | 1,520 | 51,431 | 43,096 | 100,026 | 102,448 | 115,595 | ||||||||||||||||||||||||||||||
Profit from operations | 1,410 | 1,341 | 4,236 | 1,877 | 1,251 | 43,160 | 35,135 | 82,027 | 86,679 | 101,786 | ||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 15.1% | 11.7% | 17.0% | 8.4% | 5.8% | 26.0% | 23.6% | 26.5% | 24.7% | 27.3% | ||||||||||||||||||||||||||||||
Profit from operations margin | 9.8% | 9.9% | 13.9% | 7.5% | 4.8% | 21.9% | 19.2% | 21.7% | 20.9% | 24.1% |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “— Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. | |
(2) | “Other” includes the activities of Gran Vía Musical and the eliminations and adjustments on consolidation. |
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Radio in Spain | International Radio | |||||||||||||||||||||||||||||||||||||||
Six Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2010 | 2009 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||
Revenue | 65.7% | 71.1% | 67.4% | 71.2% | 72.8% | 27.0% | 21.5% | 24.5% | 22.8% | 21.0% | ||||||||||||||||||||||||||||||
Adjusted EBITDA | 73.5% | 90.0% | 76.0% | 86.0% | 88.9% | 22.3% | 6.3% | 18.8% | 11.9% | 9.7% | ||||||||||||||||||||||||||||||
Profit from operations | 77.2% | 96.6% | 79.2% | 90.6% | 92.7% | 19.6% | (0.4)% | 15.6% | 7.2% | 6.1% |
Other(1) | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
Revenue | 7.3% | 7.4% | 8.1% | 6.0% | 6.2% | |||||||||||||||
Adjusted EBITDA | 4.2% | 3.7% | 5.2% | 2.1% | 1.4% | |||||||||||||||
Profit from operations | 3.3% | 3.8% | 5.2% | 2.2% | 1.2% |
(1) | “Other” includes the activities of Gran Vía Musical and the eliminations and adjustments on consolidation. |
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2010 | 2009 | |||||||
Cadena SER, general interest | 4,688 | 4,819 | ||||||
40 Principales | 4,122 | 3,654 | ||||||
Dial | 2,073 | 1,964 | ||||||
M80 | 591 | 550 | ||||||
Radiolé | 452 | 496 | ||||||
Máxima FM | 656 | 568 | ||||||
Total | 12,582 | 12,051 | ||||||
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El País | AS | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | 285,095 | 353,662 | 411,904 | 72,574 | 82,660 | 87,498 | ||||||||||||||||||
Advertising | 128,257 | 169,997 | 218,222 | 15,234 | 19,882 | 21,674 | ||||||||||||||||||
Circulation | 123,384 | 131,236 | 126,236 | 51,867 | 56,325 | 57,565 | ||||||||||||||||||
Other | 33,454 | 52,429 | 67,446 | 5,473 | 6,453 | 8,259 | ||||||||||||||||||
Adjusted EBITDA(1) | 39,341 | 52,759 | 113,310 | 10,718 | 10,760 | 15,370 | ||||||||||||||||||
Profit from operations | 19,580 | 39,561 | 100,403 | 9,773 | 10,389 | 14,799 | ||||||||||||||||||
Adjusted EBITDA margin | 13.8 | % | 14.9 | % | 27.5 | % | 14.8 | % | 13.0 | % | 17.6 | % | ||||||||||||
Profit from operations margin | 6.9 | % | 11.2 | % | 24.4 | % | 13.5 | % | 12.6 | % | 16.9 | % |
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Cinco Días | Other(2) | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenue | 15,165 | 19,339 | 20,048 | 42,954 | 48,277 | 52,827 | ||||||||||||||||||
Advertising | 8,141 | 10,876 | 11,726 | |||||||||||||||||||||
Circulation | 6,570 | 8,054 | 7,663 | |||||||||||||||||||||
Other | 454 | 409 | 659 | |||||||||||||||||||||
Adjusted EBITDA | (640) | 383 | 880 | 3,179 | 3,029 | 7,170 | ||||||||||||||||||
Profit from operations | (1,282) | 115 | 706 | 1,250 | 1,500 | 5,600 | ||||||||||||||||||
Adjusted EBITDA margin | (4.2) | % | 2.0 | % | 4.4 | % | 7.4 | % | 6.3 | % | 13.6 | % | ||||||||||||
Profit from operations margin | (8.5) | % | 0.6 | % | 3.5 | % | 2.9 | % | 3.1 | % | 10.6 | % |
Total | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Revenue | 415,788 | 503,938 | 572,277 | |||||||||
Adjusted EBITDA | 52,598 | 66,931 | 136,730 | |||||||||
Profit from operations | 29,321 | 51,565 | 121,508 | |||||||||
Adjusted EBITDA margin | 12.7 | % | 13.3 | % | 23.9 | % | ||||||
Profit from operations margin | 7.1 | % | 10.2 | % | 21.2 | % |
El País | AS | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 143,701 | 146,679 | 39,727 | 34,771 | ||||||||||||
Advertising | 67,376 | 66,626 | 12,019 | 7,442 | ||||||||||||
Circulation | 59,561 | 62,303 | 24,243 | 25,262 | ||||||||||||
Other | 16,764 | 17,750 | 3,465 | 2,067 | ||||||||||||
Adjusted EBITDA(1) | 18,915 | 20,608 | 5,218 | 3,347 | ||||||||||||
Profit from operations | 14,487 | 15,488 | 4,752 | 3,151 | ||||||||||||
Adjusted EBITDA margin | 13.2 | % | 14.0 | % | 13.1 | % | 9.6 | % | ||||||||
Profit from operations margin | 10.1 | % | 10.6 | % | 12.0 | % | 9.1 | % |
Cinco Días | Other | |||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 8,229 | 8,559 | 14,530 | 22,941 | ||||||||||||
Advertising | 4,819 | 4,746 | ||||||||||||||
Circulation | 3,121 | 3,512 | ||||||||||||||
Other | 289 | 301 | ||||||||||||||
Adjusted EBITDA(1) | 151 | (197 | ) | 245 | 666 | |||||||||||
Profit from operations | 35 | (276 | ) | (1,308 | ) | (72 | ) | |||||||||
Adjusted EBITDA margin | 1.8 | % | (2.3 | )% | 1.7 | % | (2.9 | )% | ||||||||
Profit from operations margin | 0.4 | % | (3.2 | )% | (9.0 | )% | (0.3 | )% |
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Total | ||||||||
Six Months Ended June 30, | ||||||||
2010 | 2009 | |||||||
Revenue | 206,187 | 212,950 | ||||||
Adjusted EBITDA(1) | 24,529 | 24,424 | ||||||
Profit from operations | 17,966 | 18,291 | ||||||
Adjusted EBITDA margin | 11.9 | % | 11.5 | % | ||||
Profit from operations margin | 8.7 | % | 8.6 | % |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “—Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. | |
(2) | “Other” includes the regional press activities until July 2007, international press until September 2009, magazines and the eliminations and adjustments on consolidation. |
El País | AS | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenues | 68.6% | 70.2% | 72.0% | 17.5% | 16.4% | 15.3% | ||||||||||||||||||
Adjusted EBITDA | 74.8% | 78.8% | 82.9% | 20.4% | 16.1% | 11.2% | ||||||||||||||||||
Profit from operations | 66.8% | 76.7% | 82.6% | 33.3% | 20.1% | 12.2% |
Cinco Días | Other(1) | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenues | 3.6% | 3.8% | 3.5% | 10.3% | 9.6% | 9.2% | ||||||||||||||||||
Adjusted EBITDA | (1.2)% | 0.6% | 0.6% | 6.0% | 4.5% | 5.3% | ||||||||||||||||||
Profit from operations | (4.4)% | 0.2% | 0.6% | 4.3% | 3.0% | 4.6% |
El País | AS | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 69.7% | 68.9% | 19.3% | 16.3% | ||||||||||||
Adjusted EBITDA | 77.1% | 84.4% | 21.3% | 13.7% | ||||||||||||
Profit from operations | 80.6% | 84.7% | 26.4% | 17.2% |
Cinco Días | Other(1) | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | 4.0% | 4.0% | 7.0% | 10.8% | ||||||||||||
Adjusted EBITDA | 0.6% | (0.8)% | 1.0% | 2.7% | ||||||||||||
Profit from operations | 0.2% | (1.5)% | (7.3)% | (0.4)% |
(1) | “Other” includes the regional press activities until July 2007, international press until September 2009, magazines and the eliminations and adjustments on consolidation. |
177
178
Magazines | ||||||||||||||||||||
Six Months Ended June 30, | Magazines | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||
Revenue | 16,896 | 19,177 | 38,170 | 41,254 | 28,400 | |||||||||||||||
Adjusted EBITDA(1) | 143 | (550) | 2,156 | 2,877 | 1,963 | |||||||||||||||
Profit from operations | (39) | (785) | 1,121 | 2,175 | 1,516 | |||||||||||||||
Adjusted EBITDA margin | 0.8 | % | (2.9) | % | 5.6 | % | 7.0 | % | 6.9 | % | ||||||||||
Profit from operations margin | (0.2) | % | (4.1) | % | 2.9 | % | 5.3 | % | 5.3 | % |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See |
179
“— Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” at the end of this section for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. |
Six Months Ended June 30, | Geographical Source of Revenue | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||
Spain | 1,188,622 | 1,320,073 | 2,469,384 | 3,251,466 | 2,968,509 | |||||||||||||||
International | 388,676 | 357,608 | 739,199 | 749,882 | 727,519 | |||||||||||||||
Total revenues | 1,577,298 | 1,677,681 | 3,208,583 | 4,001,348 | 3,696,028 | |||||||||||||||
% Spain | 75 | % | 79 | % | 77 | % | 81 | % | 80 | % | ||||||||||
% International | 25 | % | 21 | % | 23 | % | 19 | % | 20 | % |
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181
Santillana | ||||||||||||
Market Share | ||||||||||||
Country | Market Total | Target Market | (of Target Market) | |||||||||
Spain | 6,330 | 6,330 | 21.5 | % | ||||||||
Portugal | 1,408 | 1,325 | 7.5 | % | ||||||||
Mexico | 27,626 | 2,343 | 14.2 | % | ||||||||
Argentina | 8,763 | 2,082 | 25.3 | % | ||||||||
Chile | 3,735 | 325 | 35.8 | % | ||||||||
Colombia | 11,111 | 1,364 | 27.6 | % | ||||||||
Peru | 7,320 | 877 | 28.4 | % | ||||||||
Dominican Republic | 2,402 | 449 | 57.9 | % | ||||||||
Ecuador | 3,537 | 719 | 16.4 | % | ||||||||
Costa Rica | 926 | 97 | 46.3 | % | ||||||||
Panama | 815 | 111 | 39.9 | % | ||||||||
Guatemala | 3,416 | 551 | 21.5 | % | ||||||||
El Salvador | 1,814 | 199 | 44.7 | % | ||||||||
Honduras | 1,918 | 193 | 35.7 | % | ||||||||
Bolivia | 2,801 | 199 | 23.1 | % | ||||||||
Paraguay | 1,581 | 198 | 23.3 | % | ||||||||
Puerto Rico | 715 | 147 | 21.5 | % | ||||||||
Uruguay | 463 | 65 | 35.6 | % | ||||||||
Venezuela | 6,861 | 1,296 | 31.3 | % | ||||||||
Brazil | 49,795 | 5,476 | 14.3 | % | ||||||||
TOTAL | 143,337 | 24,346 | ||||||||||
182
Advertising Expenditure in Spain | Annual Change | |||||||||||||||||||
Change | Change | |||||||||||||||||||
2009 | 2008 | 2007 | 09/08 | 08/07 | ||||||||||||||||
Press | 1,243,000 | 1,611,800 | 2,027,900 | (22.9)% | (20.5)% | |||||||||||||||
Magazines | 401,900 | 617,300 | 721,800 | (34.9)% | (14.5)% | |||||||||||||||
Television | 2,368,200 | 3,082,400 | 3,468,600 | (23.2)% | (11.1)% | |||||||||||||||
Radio | 537,300 | 641,900 | 678,100 | (16.3)% | (5.3)% | |||||||||||||||
Cinema | 15,400 | 21,000 | 38,400 | (26.7)% | (45.3)% | |||||||||||||||
Outside | 401,400 | 518,300 | 568,000 | (22.6)% | (8.8)% | |||||||||||||||
Internet | 654,100 | 610,000 | 482,400 | 7.2% | 26.5% | |||||||||||||||
Total | 5,621,300 | 7,102,700 | 7,985,200 | (20.9)% | (11.1)% | |||||||||||||||
183
Advertising Expenditure in Portugal | Annual Change | |||||||||||||||||||
Change | Change | |||||||||||||||||||
2009 | 2008 | 2007 | 09/08 | 08/07 | ||||||||||||||||
Press | 50,816 | 65,995 | 67,000 | (23.0)% | (1.5)% | |||||||||||||||
Magazines | 114,228 | 142,785 | 150,300 | (20.0)% | (5.0)% | |||||||||||||||
Television | 465,677 | 529,178 | 532,600 | (12.0)% | (0.6)% | |||||||||||||||
Radio | 45,556 | 46,965 | 50,500 | (3.0)% | (7.0)% | |||||||||||||||
Cinema | 4,023 | 5,225 | 5,500 | (23.0)% | (5.0)% | |||||||||||||||
Outside | 104,544 | 118,800 | 120,000 | (12.0)% | (1.0)% | |||||||||||||||
Internet | 21,373 | 19,430 | 12,950 | 10.0% | 50.0% | |||||||||||||||
Total | 806,217 | 928,378 | 938,850 | (13.2)% | (1.1)% | |||||||||||||||
Advertising Expenditure in Latin America | Annual Change | |||||||||||||||||||
Change | Change | |||||||||||||||||||
2009 | 2008 | 2007 | 09/08 | 08/07 | ||||||||||||||||
Press | 3,373,519 | 3,667,134 | 3,073,161 | (8.0)% | 19.3% | |||||||||||||||
Magazines | 1,281,092 | 1,400,841 | 1,169,078 | (8.5)% | 19.8% | |||||||||||||||
Television | 11,288,713 | 12,177,996 | 10,431,357 | (7.3)% | 16.7% | |||||||||||||||
Radio | 1,609,506 | 1,688,858 | 1,209,836 | (4.7)% | 39.6% | |||||||||||||||
Cinema | 106,700 | 107,919 | 48,910 | (1.1)% | 120.6% | |||||||||||||||
Outside | 843,899 | 829,713 | 728,211 | 1.7% | 13.9% | |||||||||||||||
Internet | 478,764 | 402,242 | 268,324 | 19.0% | 49.9% | |||||||||||||||
18,982,193 | 20,274,703 | 16,928,877 | (6.4)% | 19.8% |
184
Circulation of National Newspapers | ||||||||||||||||||||||||
Number of Daily Copies | Market Share (%) | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
El País | 391,816 | 431,034 | 435,083 | 25.5% | 27.2% | 28.2% | ||||||||||||||||||
Mundo | 300,174 | 323,378 | 336,286 | 19.5% | 20.4% | 21.8% | ||||||||||||||||||
ABC | 256,650 | 251,642 | 228,158 | 16.7% | 15.9% | 14.8% | ||||||||||||||||||
La Razón | 123,988 | 154,184 | 153,024 | 8.1% | 9.7% | 9.9% | ||||||||||||||||||
La Vanguardia | 200,332 | 201,858 | 213,413 | 13.0% | 12.8% | 13.9% | ||||||||||||||||||
El Periódico(1) | 141,859 | 152,116 | 174,649 | 9.2% | 9.6% | 11.3% | ||||||||||||||||||
Público | 74,116 | 68,454 | — | 4.8% | 4.3% | — | ||||||||||||||||||
La Gaceta(2) | 48,301 | — | — | 3.1% | — | — | ||||||||||||||||||
Total | 1,537,236 | 1,582,666 | 1,540,613 | 100.0% | 100.0% | 100.0% |
Circulation of National Newspapers | ||||||||||||||||
Number of Daily Copies | Market Share (%) | |||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
El País | 383,655 | 400,434 | 25.1 | % | 28.7 | % | ||||||||||
Mundo | 298,241 | 313,191 | 19.5 | % | 22.5 | % | ||||||||||
ABC | 256,733 | 267,359 | 16.8 | % | 19.2 | % | ||||||||||
La Razón | 125,290 | 135,674 | 8.2 | % | 9.7 | % | ||||||||||
La Vanguardia | 198,367 | 203,942 | 13.0 | % | 14.6 | % | ||||||||||
El Periódico(1) | 135,110 | — | 8.8 | % | — | |||||||||||
Público | 91,331 | 73,003 | 6.0 | % | 5.2 | % | ||||||||||
La Gaceta(2) | 41,134 | — | 2.7 | % | — | |||||||||||
Total | 1,529,861 | 1,393,603 | 100.0 | % | 100.0 | % |
(1) | In July 2009, El Periódico de Catalunya and El Periódico de Aragón merged into El Periódico. | |
(2) | In October 2009, La Gaceta de los Negocios was reclassified from the financial press segment and included in the general news segment. |
Circulation of Sports Newspapers | ||||||||||||||||||||||||
Number of Daily Copies | Market Share (%) | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Marca | 284,273 | 296,353 | 315,278 | 40.3% | 41.1% | 42.0% | ||||||||||||||||||
As | 215,297 | 230,492 | 233,529 | 30.5% | 31.9% | 31.1% | ||||||||||||||||||
Sport | 103,250 | 95,572 | 101,633 | 14.6% | 13.2% | 13.6% | ||||||||||||||||||
Mundo Deportivo | 102,791 | 99,170 | 99,368 | 14.6% | 13.7% | 13.3% | ||||||||||||||||||
Total | 705,611 | 721,587 | 749,808 | 100.0% | 100.0% | 100.0% |
185
Circulation of National Newspapers | ||||||||||||||||
Number of Daily Copies | Market Share (%) | |||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Marca | 268,221 | 278,264 | 39.9 | % | 40.3 | % | ||||||||||
As | 204,792 | 212,702 | 30.5 | % | 30.8 | % | ||||||||||
Sport | 98,847 | 98,800 | 14.7 | % | 14.3 | % | ||||||||||
Mundo Deportivo | 99,944 | 101,193 | 14.9 | % | 14.6 | % | ||||||||||
Total | 671,804 | 690,959 | 100.0 | % | 100.0 | % |
Circulation of Financial Newspapers | ||||||||||||||||||||||||
Number of Daily Copies | Market Share (%) | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Expansión | 44,100 | 51,292 | 50,127 | 42.6% | 32.9% | 32.7% | ||||||||||||||||||
Cinco Días | 33,300 | 40,077 | 40,552 | 32.2% | 25.7% | 26.5% | ||||||||||||||||||
El Economista | 26,152 | 29,320 | 25,110 | 25.3% | 18.8% | 16.4% | ||||||||||||||||||
La Gaceta(1) | — | 35,083 | 37,375 | — | 22.5% | 24.4% | ||||||||||||||||||
Total | 103,552 | 155,772 | 153,164 | 100.0% | 100.0% | 100.0% |
Circulation of National Newspapers | ||||||||||||||||
Number of Daily Copies | Market Share (%) | |||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Expansión | 41,202 | 46,303 | 40.9 | % | 41.6 | % | ||||||||||
Cinco Días | 32,220 | 35,086 | 32.0 | % | 31.5 | % | ||||||||||
El Economista | 27,351 | 30,026 | 27.1 | % | 26.9 | % | ||||||||||
Total | 100,773 | 111,415 | 100.0 | % | 100.0 | % |
(1) | In October 2009, La Gaceta de los Negocios was reclassified from the financial press segment and included in the general news segment. |
• | General press: -6.25%. | |
• | Sports press: -2.18%. | |
• | Financial press (paid): -13.96%. | |
• | Total press: -5.94%. |
• | General press: -3.97%. | |
• | Sports press: -2.40% |
186
• | Financial press (paid): -12.64% | |
• | Total press: -4.90% |
Audiovisual | Education | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 343,054 | 381,838 | 398,291 | 152,115 | 134,348 | 119,920 | ||||||||||||||||||
Asset depreciation expense | (124,995 | ) | (129,275 | ) | (165,625 | ) | (40,964 | ) | (36,026 | ) | (33,945 | ) | ||||||||||||
Changes in operating allowances | (18,030 | ) | (21,742 | ) | (13,068 | ) | (17,087 | ) | (19,237 | ) | (9,868 | ) | ||||||||||||
Impairment of assets | 4,723 | 676 | 650 | (4,059 | ) | (2,077 | ) | (1,051 | ) | |||||||||||||||
Goodwill deterioration | 0 | (4,751 | ) | (1,056 | ) | 0 | 0 | 0 | ||||||||||||||||
Profit from operations | 204,752 | 226,745 | 219,193 | 90,004 | 77,008 | 75,056 |
Radio | Press | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 100,026 | 102,448 | 115,595 | 52,598 | 66,931 | 136,730 | ||||||||||||||||||
Asset depreciation expense | (13,966 | ) | (12,986 | ) | (11,117 | ) | (10,775 | ) | (14,245 | ) | (14,215 | ) | ||||||||||||
Changes in operating allowances | (4,033 | ) | (2,783 | ) | (2,473 | ) | (12,503 | ) | (1,120 | ) | (1,008 | ) | ||||||||||||
Impairment of assets | 0 | 0 | (219 | ) | 0 | 0 | 0 | |||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | 82,027 | 86,679 | 101,786 | 29,321 | 51,565 | 121,508 |
Other | Total Prisa | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | (24,042 | ) | 262,779 | 9,087 | 623,751 | 948,344 | 779,623 | |||||||||||||||||
Asset depreciation expense | (5,959 | ) | (6,402 | ) | (6,538 | ) | (196,658 | ) | (198,936 | ) | (231,438 | ) | ||||||||||||
Changes in operating allowances | (3,893 | ) | (256 | ) | (142 | ) | (55,547 | ) | (45,139 | ) | (26,558 | ) | ||||||||||||
Impairment of assets | (0 | ) | 75 | (19 | ) | 663 | (1,326 | ) | (640 | ) | ||||||||||||||
Goodwill deterioration | (3,228 | ) | 0 | 0 | (3,228 | ) | (4,751 | ) | (1,056 | ) | ||||||||||||||
Profit from operations | (37,122 | ) | 256,194 | 2,388 | 368,982 | 698,191 | 519,931 |
Sogecable | Media Capital | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 290,277 | 320,832 | 336,608 | 52,484 | 61,221 | 75,216 | ||||||||||||||||||
Asset depreciation expense | (109,101 | ) | (113,543 | ) | (147,771 | ) | (15,894 | ) | (15,732 | ) | (15,616 | ) | ||||||||||||
Changes in operating allowances | (15,511 | ) | (20,654 | ) | (12,555 | ) | (2,519 | ) | (1,088 | ) | (702 | ) | ||||||||||||
Impairment of assets | 1,356 | 676 | 611 | 3,367 | 0 | 0 | ||||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | (4,751 | ) | (1,056 | ) | ||||||||||||||||
Profit from operations | 167,021 | 187,311 | 176,893 | 37,438 | 39,649 | 57,842 |
187
Other | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(Thousands of euros) | ||||||||||||
Adjusted EBITDA | 293 | (215 | ) | (13,533 | ) | |||||||
Asset depreciation expense | 0 | 0 | (2,236 | ) | ||||||||
Changes in operating allowances | 0 | 0 | 189 | |||||||||
Impairment of assets | 0 | 0 | 39 | |||||||||
Goodwill deterioration | 0 | 0 | 0 | |||||||||
Profit from operations | 293 | (215 | ) | (15,542 | ) |
Radio in Spain | International Radio | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 76,055 | 88,107 | 102,813 | 18,789 | 12,240 | 11,262 | ||||||||||||||||||
Asset depreciation expense | (8,205 | ) | (7,997 | ) | (6,900 | ) | (4,877 | ) | (4,763 | ) | (4,044 | ) | ||||||||||||
Changes in operating allowances | (2,867 | ) | (1,542 | ) | (1,570 | ) | (1,103 | ) | (1,241 | ) | (903 | ) | ||||||||||||
Impairment of assets | 0 | 0 | 0 | (0 | ) | (0 | ) | (122 | ) | |||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | 64,983 | 78,567 | 94,343 | 12,808 | 6,235 | 6,192 |
Other | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(Thousands of euros) | ||||||||||||
Adjusted EBITDA | 5,182 | 2,101 | 1,520 | |||||||||
Asset depreciation expense | (882 | ) | (224 | ) | (172 | ) | ||||||
Changes in operating allowances | (64 | ) | (0 | ) | 0 | |||||||
Impairment of assets | 0 | 0 | (97 | ) | ||||||||
Goodwill deterioration | 0 | 0 | 0 | |||||||||
Profit from operations | 4,236 | 1,877 | 1,251 |
El País | AS | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 39,341 | 52,759 | 113,310 | 10,718 | 10,760 | 15,370 | ||||||||||||||||||
Asset depreciation expense | (9,207 | ) | (12,850 | ) | (12,591 | ) | (280 | ) | (319 | ) | (464 | ) | ||||||||||||
Changes in operating allowances | (10,554 | ) | (349 | ) | (315 | ) | (664 | ) | (51 | ) | (107 | ) | ||||||||||||
Impairment of assets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | 19,580 | 39,561 | 100,403 | 9,773 | 10,389 | 14,799 |
188
Cinco Días | Other (Including Magazines | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | (640 | ) | 383 | 880 | 3,179 | 3,029 | 7,170 | |||||||||||||||||
Asset depreciation expense | (120 | ) | (133 | ) | (138 | ) | (1,167 | ) | (943 | ) | (1,021 | ) | ||||||||||||
Changes in operating allowances | (522 | ) | (135 | ) | (36 | ) | (762 | ) | (585 | ) | (550 | ) | ||||||||||||
Impairment of assets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | (1,282 | ) | 115 | 706 | 1,250 | 1,500 | 5,600 |
Audiovisual | Education | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 139,662 | 164,562 | 168,990 | 73,223 | 65,235 | 51,106 | ||||||||||||||||||
Asset depreciation expense | (50,738 | ) | (60,777 | ) | (66,205 | ) | (18,357 | ) | (16,030 | ) | (16,629 | ) | ||||||||||||
Changes in operating allowances | (5,642 | ) | (8,694 | ) | (10,238 | ) | (2,433 | ) | (8,917 | ) | (5,998 | ) | ||||||||||||
Impairment of assets | (162 | ) | (162 | ) | 857 | (2,097 | ) | (3,172 | ) | (2,108 | ) | |||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | 83,120 | 94,930 | 93,405 | 50,336 | 37,117 | 26,372 |
Radio | Press | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 51,431 | 43,096 | 57,081 | 24,529 | 24,424 | 52,911 | ||||||||||||||||||
Asset depreciation expense | (7,219 | ) | (6,935 | ) | (6,394 | ) | (4,619 | ) | (5,857 | ) | (6,924 | ) | ||||||||||||
Changes in operating allowances | (1,052 | ) | (1,026 | ) | (1,300 | ) | (593 | ) | (276 | ) | (300 | ) | ||||||||||||
Impairment of assets | 0 | 0 | 16 | 0 | 0 | 0 | ||||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | (1,351 | ) | 0 | 0 | |||||||||||||||||
Profit from operations | 43,160 | 35,135 | 49,403 | 17,966 | 18,291 | 45,687 |
Other | Total Prisa | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 3,642 | 1,412 | 75,586 | 292,487 | 298,729 | 405,674 | ||||||||||||||||||
Asset depreciation expense | (2,185 | ) | (3,027 | ) | (2,925 | ) | (83,118 | ) | (92,626 | ) | (99,077 | ) | ||||||||||||
Changes in operating allowances | (175 | ) | (1,336 | ) | (165 | ) | (9,895 | ) | (20,249 | ) | (18,001 | ) | ||||||||||||
Impairment of assets | 0 | 0 | (1 | ) | (2,259 | ) | (3,334 | ) | (1,236 | ) | ||||||||||||||
Goodwill deterioration | 174 | 0 | 0 | (1,177 | ) | 0 | 0 | |||||||||||||||||
Profit from operations | 1,455 | (2,952 | ) | 72,493 | 196,037 | 182,521 | 287,360 |
189
Sogecable | Media Capital | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 118,785 | 140,125 | 147,397 | 20,871 | 24,256 | 29,780 | ||||||||||||||||||
Asset depreciation expense | (44,775 | ) | (54,715 | ) | (57,387 | ) | (5,963 | ) | (6,062 | ) | (7,735 | ) | ||||||||||||
Changes in operating allowances | (5,413 | ) | (8,396 | ) | (9,726 | ) | (229 | ) | (298 | ) | (153 | ) | ||||||||||||
Impairment of assets | (162 | ) | (162 | ) | 838 | 0 | 0 | 0 | ||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | 68,435 | 76,852 | 81,122 | 14,679 | 17,897 | 21,893 |
Other | ||||||||||||
Six Months Ended June 30, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands of euros) | ||||||||||||
Adjusted EBITDA | 6 | 181 | (8,187 | ) | ||||||||
Asset depreciation expense | 0 | 0 | (1,083 | ) | ||||||||
Changes in operating allowances | 0 | 0 | (359 | ) | ||||||||
Impairment of assets | 0 | 0 | 19 | |||||||||
Goodwill deterioration | 0 | 0 | 0 | |||||||||
Profit from operations | 6 | 181 | (9,610 | ) |
Radio in Spain | International Radio | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 37,814 | 38,791 | 53,047 | 11,450 | 2,730 | 2,949 | ||||||||||||||||||
Asset depreciation expense | (4,066 | ) | (4,098 | ) | (3,951 | ) | (2,402 | ) | (2,471 | ) | (2,342 | ) | ||||||||||||
Changes in operating allowances | (448 | ) | (751 | ) | (755 | ) | (600 | ) | (408 | ) | (545 | ) | ||||||||||||
Impairment of assets | 0 | 0 | 0 | 0 | 0 | 16 | ||||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | 33,301 | 33,943 | 48,341 | 8,449 | (149 | ) | 79 |
Other | ||||||||||||
Six Months Ended June 30, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Thousands of euros) | ||||||||||||
Adjusted EBITDA | 2,167 | 1,575 | 1,085 | |||||||||
Asset depreciation expense | (751 | ) | (366 | ) | (101 | ) | ||||||
Changes in operating allowances | (4 | ) | 133 | 0 | ||||||||
Impairment of assets | 0 | 0 | 0 | |||||||||
Goodwill deterioration | 0 | 0 | 0 | |||||||||
Profit from operations | 1,410 | 1,341 | 983 |
190
El País | AS | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 18,915 | 20,608 | 42,876 | 5,218 | 3,347 | 6,818 | ||||||||||||||||||
Asset depreciation expense | (4,190 | ) | (5,001 | ) | (6,308 | ) | (186 | ) | (146 | ) | (167 | ) | ||||||||||||
Changes in operating allowances | (238 | ) | (119 | ) | (89 | ) | (280 | ) | (50 | ) | (50 | ) | ||||||||||||
Impairment of assets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Profit from operations | 14,487 | 15,488 | 36,480 | 4,752 | 3,151 | 6,601 |
Cinco Días | Other (Including Magazines | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||||||||||
Adjusted EBITDA | 151 | (197 | ) | 1,064 | 245 | 666 | 2,153 | |||||||||||||||||
Asset depreciation expense | (104 | ) | (62 | ) | (67 | ) | (139 | ) | (648 | ) | (382 | ) | ||||||||||||
Changes in operating allowances | (12 | ) | (17 | ) | (18 | ) | (63 | ) | (90 | ) | (143 | ) | ||||||||||||
Impairment of assets | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Goodwill deterioration | 0 | 0 | 0 | (1,351 | ) | 0 | 0 | |||||||||||||||||
Profit from operations | 35 | (276 | ) | 980 | (1,308 | ) | (72 | ) | 1,626 |
191
192
193
194
195
196
197
198
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200
• | Delegate to the board of directors the power to increase, on one or more occasions, Prisa’s share capital up to €10,956,775, with or without a share premium–and with the power to withhold pre-emptive subscription rights, if any–under the terms and conditions provided in Article 153.1(b) of the Spanish Companies Law. | |
• | Revoke, as to any unused portion, the authorization granted by the shareholders at the ordinary general shareholders’ meeting of March 17, 2005, for the issuance of shares pursuant to item six of that meeting’s agenda. | |
• | Authorize the board of directors to issue up to €2.0 billion non-convertible fixed-income securities, or fixed-income securities convertible into newly-issued sharesand/or exchangeable for outstanding shares of Prisa or other companies, warrants (options to subscribe new shares or to acquire outstanding shares of Prisa or other companies), promissory notes and preference shares. In the case of convertibleand/or exchangeable securities or warrants, the board is authorized to establish criteria used to determine the parameters of conversion, exchange or exercise, to increase capital by the amount required to cover the requests to convert debentures or to exercise warrants, and to elect that holders of convertible debentures or warrants on any newly issued shares shall not have pre-emptive rights with respect to those shares. | |
• | Revoke, as to any unused portion, the delegation of the power to issue convertibleand/or exchangeable debentures, adopted by the shareholders at the annual general shareholders’ meeting of March 17, 2005 pursuant to item seven of that meeting’s agenda. |
201
202
• | Editorial Santillana, S.A. (Dominican Republic), for which local legislation limits the number of votes of any one shareholder, regardless of the number of shares it owns, to a minimum of one vote and a maximum of 10 votes per shareholder. | |
• | Sistema Radiópolis, S.A. de C.V. (Mexico), for which, being a radio broadcasting concession holder and due to regulatory requirements, the shares are neutral and therefore confer limited voting power on their holder. |
203
Six Months Ended | ||||||||||||||||
June 30, | For the Years Ended December 31, | |||||||||||||||
2010 | 2009 | 2008 | 2007 | |||||||||||||
(thousands of euros) | ||||||||||||||||
Property, plant and equipment | 341,048 | 345,754 | 397,932 | 423,163 | ||||||||||||
Land and buildings | 161,592 | 152,551 | 153,412 | 155,573 | ||||||||||||
Plant and machinery | 484,735 | 467,271 | 483,815 | 452,039 | ||||||||||||
Digital set-top boxes and cards | 368,033 | 359,775 | 375,167 | 446,553 | ||||||||||||
Other items of property, plant and equipment | 159,659 | 179,045 | 182,106 | 180,311 | ||||||||||||
Advances and property, plant and equipment in the course of construction | 20,729 | 19,699 | 16,459 | 13,063 | ||||||||||||
Accumulated depreciation | (840,028 | ) | (818,630 | ) | (797,275 | ) | (805,074 | ) | ||||||||
Impairment losses | (13,672 | ) | (13,957 | ) | (15,752 | ) | (19,302 | ) |
204
205
• | it requires Prisa to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time Prisa was making its estimate; and | |
• | changes in the estimate or different estimates that Prisa could have selected may have had a material impact on its financial condition or results of operations. |
• | goodwill; | |
• | deferred taxes; | |
• | inventories; and | |
• | revenue recognition. |
• | If the excess is attributable to specific assets and liabilities of the companies acquired, increasing the value of the assets whose market values were higher than the carrying amounts at which they had been recognized in their balance sheets and whose accounting treatment was similar to that of the same assets of Prisa. | |
• | If the excess is attributable to non-contingent liabilities, recognizing it in the consolidated balance sheet if it is probable that the outflow of resources to settle the obligation embodies economic benefits and the fair value can be measured reliably. | |
• | If the excess is attributable to specific intangible assets, recognizing it explicitly in the consolidated balance sheet provided that the fair value at the date of acquisition can be measured reliably. |
206
• | Audiovisual, which derives revenue mainly from the subscribers to the Digital+ platform, the broadcasting of advertising and audiovisual production; | |
• | Education, which includes primarily the sale of general publishing and educational books and the sale of training; | |
• | Radio, which includes primarily the broadcasting of advertising and the organization and management of events and the provision of other supplementary services; and | |
• | Press, which groups together mainly the activities relating to the sale of newspapers and magazines, advertising and promotions. |
Changes in the | ||||||||||||||||||||||||
Scope of | ||||||||||||||||||||||||
Balance at | Translation | Consolidation/ | Balance at | |||||||||||||||||||||
12/31/08 | Adjustment | Additions | Impairment | Transfers | 12/31/09 | |||||||||||||||||||
Press | 4,407 | — | — | (3,228 | ) | — | 1,179 | |||||||||||||||||
Radio | 135,906 | 9,381 | — | — | 5,935 | 151,222 | ||||||||||||||||||
Education | 69,252 | 2,606 | 1,390 | — | — | 73,248 | ||||||||||||||||||
Audiovisual(1) | 4,054,116 | — | 780 | — | — | 4,054,896 | ||||||||||||||||||
Other | 39,058 | — | — | — | — | 39,058 | ||||||||||||||||||
Total | 4,302,739 | 11,987 | 2,170 | (3,228 | ) | 5,935 | 4,319,603 | |||||||||||||||||
(1) | Includes the goodwill of Sogecable and Media Capital. |
207
• | The “Radio” operating segment includes the following cash-generating units/entities: GLR Chile Ltda. and subsidiaries (this entity has a number of cash-generating units that have been grouped for impairment test purposes), Sistema Radiópolis, S.A. de C.V. and subsidiaries (this entity has a number of cash-generating units that have been grouped for impairment test purposes) and Sociedad Española de Radiodifusión, S.L. (this entity has a number of subsidiaries that include Antena 3 de Radio S.A. and subsidiaries, Propulsora Montañesa S.A. and others cash-generating units that have been tested for impairment individually). | |
• | The “Education” operating segment includes the following cash-generating units/entities: Editora Moderna, Ltda. and Editora Objetiva, Ltda. |
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209
• | increase of 1% in the discount rate; | |
• | decrease of 5% in the advertising share; | |
• | decrease of 5% in the ARPU; and | |
• | decrease of 5% in the number of subscribers. |
• | increase of 1% in the discount rate; | |
• | decrease of 1% in the projected growth rate from the fifth year onwards; and | |
• | decrease of 2% in the advertising share. |
210
Deferred Tax Assets Arising from: | ||||||||||||||||||||
12/31/09 | Additions | Disposals | 12/31/08 | 12/31/07 | ||||||||||||||||
Provisions | 5,995 | 1,991 | (2,314 | ) | 6,318 | 10,286 | ||||||||||||||
Non-capitalizable assets | 37 | — | (208 | ) | 245 | 9,753 | ||||||||||||||
Tax loss carryforwards | 1,003,561 | 3,920 | (7,947 | ) | 1,007,588 | 1,061,918 | ||||||||||||||
Unused tax credits recognised | 282,169 | 14,987 | (3,545 | ) | 270,727 | 271,946 | ||||||||||||||
Others | 22,058 | 11,248 | (2,787 | ) | 13,597 | 11,072 | ||||||||||||||
Total | 1,313,820 | 32,146 | (16,801 | ) | 1,298,475 | 1,364,975 | ||||||||||||||
211
Deferred Tax Liabilities Arising from: | ||||||||||||||||||||
12/31/09 | Additions | Disposals | 12/31/08 | 12/31/07 | ||||||||||||||||
Investment valuation provisions and amortizations of goodwill | 64,366 | 129 | (5,896 | ) | 70,133 | 96,713 | ||||||||||||||
Deferral for reinvestment of extraordinary income | 6,347 | 85 | (240 | ) | 6,502 | 6,674 | ||||||||||||||
Accelerated depreciation and amortisation | 522 | — | (21 | ) | 543 | 762 | ||||||||||||||
Exchange differences | — | — | (47 | ) | 47 | 168 | ||||||||||||||
Other | 1,564 | 232 | (721 | ) | 2,053 | 8,614 | ||||||||||||||
Total | 72,799 | 446 | (6,925 | ) | 79,278 | 112,931 | ||||||||||||||
• | Film broadcasting rights acquired from third parties (outside productions): the cost of these rights is recognized in the income statement on a straight-line basis from the date of the first showing or commercial release until the expiration of the broadcasting rights. | |
• | Sporting event broadcasting rights: these rights are taken to income in full at the date of the first showing. | |
• | Acquired series broadcasting rights: the cost of these rights is charged to income on a straight-line basis over the various showings. | |
• | Other rights: these relate basically to documentaries, in-house productions and introductory program slots, and are amortized when they are broadcast. |
• | Film, series and cartoon broadcasting rights acquired from third parties (outside productions): these rights are taken to income at the date of the showing. If rights are acquired to broadcast more than one showing, 75% of the cost is charged to income at the date of the first showing and 25% at the date of the second showing. | |
• | Broadcasting rights for in-house or commissioned production programs and series: the cost of these rights is charged to income in full at the date of the first showing. | |
• | Other rights: these are recognized as a period expense at the date of the related showing. |
212
• | Audiovisual rights. If the broadcasting rights have expired or Prisa considers the broadcasting of that right unlikely, according to its experience and market knowledge, 100% of the cost of inventories is registered as expenditure. Prisa’s content and programming management establishes the programming strategy according to the audience and target objectives. The financial management team periodically reviews Prisa’s inventory of broadcasting rights and together with the content and programming management decides if the broadcasting of any right is unlikely in order to write it down. | |
• | Book inventories. Prisa records a write-down when it determines there are market/selling problems according to the following rules: |
• | Discontinued books: the whole cost is provisioned when the book is discontinued. | |
• | Current catalogue: the most significant item is the stock of textbooks. The group estimates future copy sales considering the net sales for the year and the remaining useful life of the book, and any amount exceeding these estimates are registered as expenditure. The average useful life of textbooks amounts to three years. |
• | Revenue from subscribersarising from the pay television business is recognized when the subscribers are registered in the system. Subscription revenue is recognized on a monthly basis. Pay per viewrevenueis recognized when the program purchased by the subscriber is screened. | |
• | Advertising revenueis recognized when the advertisement appears in the media, less the amount of volume rebates offered to the media agencies. | |
• | Revenue from book salesis recognized on the effective delivery thereof. Where the sales of the copies are subject to sales returns, the actual sales returns and the amount of the provisions estimated at the balance sheet date are deducted from the revenue recognized. Also, the amounts corresponding to rebates or trade discounts that are not of a financial nature are deducted from revenue. | |
• | Revenue from the sale of newspapers and magazinesare recognized on the effective delivery thereof, net of the related estimated provision for sales returns. Also, the amounts relating to distributors’ fees are deducted from revenue. | |
• | Therevenueand the costs associated withaudiovisual productionagreements are recognized in the income statement by reference to the stage of completion of the contract activity at the balance sheet date, using the percentage of completion method. The stage of completion is determined by reference to the proportion of contract costs incurred for work performed to date over the estimated total contract costs, considering the initial margin estimated for the overall project. Estimates of contract revenue and costs and of the outcome of a contract are reviewed at each balance sheet date, and the changed estimates are used in the determination of the amount of revenue and expenses recognized in income in |
213
the period in which the change is made and in subsequent periods. When the final outcome of the agreement cannot be estimated reliably, the revenue must only be recognized to the extent that it is probable that the costs incurred will be recovered, whereas the costs are recognized as an expense for the year in which they are incurred. In any case, the expected future losses would be recognized immediately in the income statement. |
• | The revenue related tointermediation services,which refers to fees obtained for the commercialization of advertising spots in the different media platforms of the Group and of third parties, as well as to services for the distribution of press and magazines, is recognized at the amount of the fees received when the goods or services under the transaction are supplied. | |
• | Other income: this item includes broadcasting services, sales of add-ons and collections, telephone hotline services, music sales, organization and management of events,e-commerce, Internet services, leases and other income. |
• | Amendments to IFRS 2, Share-based Payment; | |
• | Amendments to IFRS 7, Financial Instruments–Disclosures; | |
• | Revision of IAS 23, Borrowing Costs; | |
• | Amendments to IAS 32 and IAS 1, Puttable Financial Instruments and Obligations Arising on Liquidation. |
214
• | Amendments to IAS 39 and IFRIC 9, Reassessment of Embedded Derivatives; | |
• | IFRIC 13, Customer Loyalty Programs; | |
• | IFRIC 14, IAS 19–The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction; and, | |
• | IFRIC 16, Hedges of a Net Investment in a Foreign Operation. |
Obligatory Application in the | ||||
Standards, Amendments and Interpretations | Years Beginning on or After | |||
IFRS 9 | Financial Instruments: Classification and Measurement | January 1, 2013 | ||
Revision of IAS 24 | Related Party Disclosures | January 1, 2011 | ||
Amendments to IFRIC 14 | Prepayments of a Minimum Funding Requirement | January 1, 2011 | ||
IFRIC 19 | Extinguishing Financial Liabilities with Equity Instruments | July 1, 2010 | ||
IFRS 1 | First-time Adoption of International Reporting Standards—Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters | July 1, 2010 |
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Six Months Ended | % | % | % | |||||||||||||||||||||||||||||
June 30, | Change, | Change, | Change, | |||||||||||||||||||||||||||||
2010 | 2009 | 1H ‘09 to ‘10 | FY 2009 | FY 2008 | FY ‘08 to ‘09 | FY 2007 | FY ‘07 to ‘08 | |||||||||||||||||||||||||
(thousands of euros) | ||||||||||||||||||||||||||||||||
Revenue from subscribers | 465,442 | 529,827 | (12.2)% | 1,002,043 | 1,141,101 | (12.2)% | 1,136,322 | 0.4% | ||||||||||||||||||||||||
Advertising sales and sponsorship | 494,291 | 450,107 | 9.8% | 898,618 | 1,067,070 | (15.8)% | 1,122,268 | (4.9)% | ||||||||||||||||||||||||
Sales of books and training | 293,241 | 271,551 | 8.0% | 600,466 | 579,743 | 3.6% | 536,468 | 8.1% | ||||||||||||||||||||||||
Newspaper and magazine sales | 90,258 | 97,299 | (7.2)% | 193,248 | 209,860 | (7.9)% | 210,519 | (0.3)% | ||||||||||||||||||||||||
Sales of add-ons and collections | 17,955 | 23,636 | (24.0)% | 44,395 | 73,101 | (39.3)% | 88,089 | (17.0)% | ||||||||||||||||||||||||
Sale of audiovisual rights and programs | 75,439 | 190,620 | (60.4)% | 231,722 | 347,789 | (33.4)% | 313,712 | 10.9% | ||||||||||||||||||||||||
Intermediation services | 12,289 | 16,045 | (23.4)% | 32,146 | 27,577 | 16.6% | 29,607 | (6.9)% | ||||||||||||||||||||||||
Broadcasting services | 10,111 | 12,400 | (18.5)% | 24,072 | 36,335 | (33.7)% | 34,830 | 4.3% | ||||||||||||||||||||||||
Other services | 57,461 | 63,925 | (10.1)% | 128,395 | 160,706 | (20.1)% | 147,695 | 8.8% | ||||||||||||||||||||||||
Income from fixed assets | 243 | 3,882 | (93.7)% | 6,072 | 297,104 | (98.0)% | 22,380 | — | ||||||||||||||||||||||||
Other income | 60,568 | 18,389 | — | 47,407 | 60,962 | (22.2)% | 54,138 | 12.6% | ||||||||||||||||||||||||
Operating income (revenues) | 1,577,298 | 1,677,681 | (6.0)% | 3,208,584 | 4,001,348 | (19.8)% | 3,696,028 | 8.3% | ||||||||||||||||||||||||
Cost of materials used | (568,707 | ) | (653,873 | ) | (13.0)% | (1,125,648 | ) | (1,435,750 | ) | 21.6% | (1,380,568 | ) | (4.0)% | |||||||||||||||||||
Staff costs | (306,229 | ) | (310,315 | ) | (1.3)% | (619,972 | ) | (666,682 | ) | 7.0% | (623,875 | ) | (6.9)% | |||||||||||||||||||
Depreciation and amortization charge | (83,118 | ) | (92,626 | ) | (10.3)% | (196,657 | ) | (198,935 | ) | 1.1% | (231,438 | ) | 14.0% | |||||||||||||||||||
Outside services | (409,759 | ) | (414,650 | ) | (1.2)% | (835,672 | ) | (950,043 | ) | 12.0% | (910,617 | ) | (4.3)% | |||||||||||||||||||
Changes in allowances, write-downs and provisions | (9,895 | ) | (20,249 | ) | (51.1)% | (55,547 | ) | (45,139 | ) | (23.1)% | (26,558 | ) | (70.0)% | |||||||||||||||||||
Other expenses | (3,552 | ) | (3,448 | ) | 3.0% | (6,106 | ) | (6,608 | ) | 7.6% | (3,041 | ) | (117.3)% | |||||||||||||||||||
Operating expenses | (1,381,260 | ) | (1,495,161 | ) | (7.6)% | (2,839,602 | ) | (3,303,157 | ) | 14.0% | (3,176,097 | ) | (4.0)% | |||||||||||||||||||
Adjusted EBITDA(1) | 292,487 | 298,729 | (2.1)% | 623,751 | 948,344 | (34.2)% | 779,623 | 21.6% | ||||||||||||||||||||||||
Profit from operations | 196,038 | 182,520 | 7.4% | 368,982 | 698,191 | (47.2)% | 519,931 | 34.3% | ||||||||||||||||||||||||
Adjusted EBITDA margin(%) | 18.5 | % | 17.8 | % | 19.4 | % | 23.7 | % | 21.1 | % | ||||||||||||||||||||||
PROFIT from operations margin | 12.4 | % | 10.9 | % | 11.5 | % | 17.4 | % | 14.1 | % |
(1) | Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with IFRS. It is not a measurement of financial performance under IFRS and should not be considered as (i) an alternative to operating or net income or cash flows from operating activities, in each case determined in accordance with IFRS, (ii) an indicator of cash flow or (iii) a measure of liquidity. See “—Prisa’s Business—Adjustments to Reconcile Adjusted EBITDA to Profit from Operations” for a reconciliation of Adjusted EBITDA to profit from operations, the most comparable financial measure calculated and presented in accordance with IFRS. |
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• | Prior to January 31, 2007, Prisa accounted for Media Capital using the equity method. Beginning on February 1, 2007, the income statement of Media Capital has been fully consolidated into Prisa’s. | |
• | On July 1, 2007, Prisa acquired 100% of Iberoamericana Radio Chile and, as a result, started fully consolidating revenue and expenses Iberoamericana Radio Chile on that date. | |
• | Beginning on July 1, 2007, the regional press business was sold so it ceased to contribute to Prisa’s consolidated statement of income. | |
• | In 2008, Prisa resolved to discontinue its activity in Localia TV, so the revenue and expenses of Localia TV were included in the consolidated income statements for 2009 and 2008 as a discontinued operation. In 2007, the income and expenses of this line of business were consolidated in Prisa’s operating results. | |
• | Beginning on August 1, 2008, the Magazines line of business includes the results of the Media Capital magazine publishing business, which had previously been included in the Audiovisual segment. | |
• | In 2009, the shares of the Bolivian press business were exchanged for a 12% stake in the Spanish language television network V-me. The Bolivian press business was fully consolidated until September 2009. The investment in V-me was included in 2009 as “Loss from other investments.” As of June 30, 2010, the investment in V-me was accounted for with the equity method, as Prisa’s stake in the company reached 30.9%. |
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Six Months Ended | % | % | % | |||||||||||||||||||||||||||||
June 30, | Change | Change | Change | |||||||||||||||||||||||||||||
2010 | 2009 | 1H ‘09 to ‘10 | FY 2009 | FY 2008 | FY ‘08 to ‘09 | FY 2007 | FY ‘07 to ‘08 | |||||||||||||||||||||||||
Audiovisual | 236,900 | 206,890 | 14.5% | 415,507 | 491,900 | (15.5)% | 491,699 | 0.0% | ||||||||||||||||||||||||
Sogecable | 163,594 | 134,487 | 21.6% | 266,184 | 319,110 | (16.6)% | 301,194 | 5.9% | ||||||||||||||||||||||||
Cuatro | 163,771 | 133,984 | 22.2% | 249,162 | 292,915 | (14.9)% | 272,701 | 7.4% | ||||||||||||||||||||||||
Digital+ | 9,109 | 8,147 | 11.8% | 17,022 | 26,195 | (35.0)% | 28,493 | (8.1)% | ||||||||||||||||||||||||
Consolidation adjustments | (9,286 | ) | (7,644 | ) | (21.5)% | — | — | — | — | — | ||||||||||||||||||||||
Media Capital | 73,306 | 72,403 | 1.2% | 149,323 | 172,790 | (13.6)% | 170,455 | 1.4% | ||||||||||||||||||||||||
Localia TV | — | — | — | — | — | — | 20,050 | (100.0)% | ||||||||||||||||||||||||
Radio | 171,941 | 154,686 | 11.2% | 317,259 | 348,268 | (8.9)% | 353,848 | (1.6)% | ||||||||||||||||||||||||
Spanish Radio | 118,642 | 116,015 | 2.3% | 228,253 | 259,204 | (11.9)% | 270,554 | (4.2)% | ||||||||||||||||||||||||
International radio | 51,503 | 36,837 | 39.8% | 85,208 | 89,253 | (4.5)% | 82,816 | 7.8% | ||||||||||||||||||||||||
Music | 1,861 | 1,843 | 1.0% | 3,950 | — | — | 500 | — | ||||||||||||||||||||||||
Consolidation adjustments | (65 | ) | (9 | ) | — | (152 | ) | (189 | ) | 20.0% | (22 | ) | — | |||||||||||||||||||
Press | 90,852 | 86,590 | 4.9% | 168,420 | 219,501 | (23.3)% | 272,490 | (19.4)% | ||||||||||||||||||||||||
El País | 67,376 | 66,626 | 1.1% | 128,257 | 169,997 | (24.6)% | 218,222 | (22.1)% | ||||||||||||||||||||||||
AS | 12,019 | 7,442 | 61.5% | 15,234 | 19,882 | (23.4)% | 21,674 | (8.3)% | ||||||||||||||||||||||||
Cinco Días | 4,819 | 4,746 | 1.5% | 8,141 | 10,876 | (25.1)% | 11,726 | (7.2)% | ||||||||||||||||||||||||
Other | 6,736 | 8,823 | (23.7)% | 17,766 | 20,123 | (11.7)% | 22,396 | (10.2)% | ||||||||||||||||||||||||
Consolidation adjustments | (98 | ) | (1,047 | ) | 90.6% | (978 | ) | (1,377 | ) | 29.0% | (1,527 | ) | 9.8% | |||||||||||||||||||
Digital | 390 | 5,212 | (92.5)% | 9,086 | 19,348 | (53.0)% | 15,804 | 22.4% | ||||||||||||||||||||||||
Other | 371 | 139 | 166.9% | 206 | 293 | (29.7)% | 107 | 172.7% | ||||||||||||||||||||||||
Consolidation adjustments | (6,163 | ) | (3,410 | ) | (80.7)% | (11,860 | ) | (12,240 | ) | 3.1% | (11,680 | ) | (4.8)% | |||||||||||||||||||
TOTAL | 494,291 | 450,107 | 9.8% | 898,618 | 1,067,070 | (15.8)% | 1,122,268 | (4.9)% | ||||||||||||||||||||||||
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Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, | % Change, | % Change, | % Change, | |||||||||||||||||||||||||||||
2010 | 2009 | 1H ‘09 to ‘10 | FY 2009 | FY 2008 | FY ‘08 to ‘09 | FY 2007 | FY ‘07 to ‘08 | |||||||||||||||||||||||||
El País | 383,655 | 400,434 | (4.2 | )% | 391,816 | 431,034 | (9.1 | )% | 435,083 | (0.9 | )% | |||||||||||||||||||||
AS | 204,792 | 212,702 | (3.7 | )% | 215,297 | 230,492 | (6.6 | )% | 233,529 | (1.3 | )% | |||||||||||||||||||||
Cinco Días | 32,220 | 35,086 | (8.2 | )% | 33,300 | 40,077 | (16.9 | )% | 40,552 | (1.2 | )% |
220
• | Sale and leaseback of three of Prisa’s real estate holdings in Madrid and Barcelona to Longshore for €300 million (€226.8 million in gain recognized); | |
• | Sale of a 5.2% ownership interest in Unión Radio by Prisa to 3i Group (€59.7 million); | |
• | Sale of 50% of Jetix España (€3.9 million); and | |
• | Sale of a 10% ownership interest in Radio Zaragoza (€3.2 million). |
• | Sale of Media Capital’s outdoor advertising business (€16.9 million); and | |
• | Sale of the regional press business (€3.5 million). |
221
For the Six Months Ended June 30, | For the Years Ended December 31, | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
(thousands of euros) | ||||||||||||||||||||
Wages and salaries | 242,936 | 242,842 | 489,768 | 520,385 | 493,690 | |||||||||||||||
Employee benefit costs | 50,331 | 49,805 | 99,064 | 103,202 | 98,091 | |||||||||||||||
Termination benefits | 3,087 | 5,757 | 11,654 | 19,554 | 10,762 | |||||||||||||||
Share-based payment costs | — | 1,023 | 694 | — | 1,023 | |||||||||||||||
Other employee benefit costs | 9,875 | 10,888 | 18,792 | 23,541 | 20,309 | |||||||||||||||
Total | 306,229 | 310,315 | 619,972 | 666,682 | 623,875 | |||||||||||||||
For the Six Months Ended June 30, | For the Years Ended December 31, | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
(thousands of euros) | ||||||||||||||||||||
Independent professional services | 95,684 | 95,110 | 192,848 | 225,896 | 223,820 | |||||||||||||||
Leases and fees | 79,700 | 74,722 | 158,886 | 139,665 | 127,056 | |||||||||||||||
Advertising | 56,334 | 48,775 | 99,547 | 147,591 | 144,089 | |||||||||||||||
Intellectual property | 16,879 | 44,403 | 90,968 | 89,618 | 77,611 | |||||||||||||||
Transport | 33,931 | 37,772 | 74,485 | 81,566 | 78,885 | |||||||||||||||
Other outside services | 127,231 | 113,868 | 218,938 | 265,707 | 259,156 | |||||||||||||||
Total | 409,759 | 414,650 | 835,672 | 950,043 | 910,617 | |||||||||||||||
222
223
224
Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
(thousands of euros) | ||||||||||||||||||||
Cash flows from operating activities | 103,869 | 150,983 | 468,496 | 590,673 | 703,300 | |||||||||||||||
Cash flows from investing activities | 78,289 | (21,379 | ) | (122,598 | ) | 68,924 | (526,780 | ) | ||||||||||||
Cash flows from financing activities | (22,857 | ) | (144,917 | ) | (322,993 | ) | (671,931 | ) | (633,388 | ) |
Six Months Ended June 30, | For the Year Ended December 31, | |||||||||||||||||||
Investments in Non-Current Financial Assets | 2010 | 2009 | 2009 | 2008 | 2007 | |||||||||||||||
(thousands of euros) | ||||||||||||||||||||
Sogecable | — | 176 | 176 | 2,056,894 | 152,300 | |||||||||||||||
Media Capital | — | — | — | — | 403,085 | |||||||||||||||
Iberoamericana Radio Chile | — | — | — | — | 57,814 | |||||||||||||||
V-me | 11,913 | — | — | — | — | |||||||||||||||
Other | 262 | 942 | 942 | 14,699 | 42,420 | |||||||||||||||
Total | 12,175 | 1,118 | 1,118 | 2,071,593 | 655,619 |
(1) | Although Prisa made an initial investment in V-me in 2009, the investment included no cash consideration by Prisa. In 2010, Prisa increased its interest in V-me to 30.9%, and as a result now accounts for the investment using the equity method. See “Recent Developments—Recent Developments of Prisa” for a discussion of this investment. |
225
226
Six Months Ended June 30, | For the Year Ended December 31, | |||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | ||||||||||||||||
(thousands of euros) | ||||||||||||||||||||
Changes in working capital | (169,374 | ) | (110,187 | ) | (84,109 | ) | (2,344 | ) | (31,458 | ) | ||||||||||
Inventories | (2,369 | ) | (1,818 | ) | 17,265 | 20,276 | (46,870 | ) | ||||||||||||
Accounts receivable | (125,188 | ) | (170,523 | ) | (198,932 | ) | (57,114 | ) | (218,508 | ) | ||||||||||
Accounts payable | (48,807 | ) | 64,584 | 101,676 | 27,876 | 236,214 | ||||||||||||||
Other current assets | 6,990 | (2,430 | ) | (4,118 | ) | 6,618 | (2,294 | ) |
227
• | Current and non-current debts to financial institutions, plus the principal amount outstanding and accrued interest on the issuance of convertible bonds and the principal amount of subordinate debt and accrued interest attributable to Sogecable, less |
228
• | Cash and cash equivalents, short-term financial investments and treasury shares calculated according to the average share prices over the last three months. |
Thousands of | Floating | |||||||
Maturity | Euros | Euribor Rates | ||||||
Within 3 months(1) | 2,044,273 | 0.5 | % | |||||
From 3 to 6 months | 202,214 | 0.6 | % | |||||
From 6 to 9 months | 18,379 | 0.9 | % | |||||
From 9 to 12 months | 342,922 | 1.3 | % | |||||
From 1 to 2 years | 934,204 | 2.0 | % | |||||
From 2 to 3 years | 483,981 | 2.5 | % | |||||
After 3 years | 962,984 | 3.2 | % | |||||
Total | 4,988,957 | |||||||
(1) | Under the terms of the refinancing master agreement which was effective as of April 19, 2010, the bridge loan payment reflected in the table as due on March 31, 2010 was to be due on July 30, 2010. As of July 29, 2010, Prisa has obtained a bank extension for the maturity of the bridge loan until November 30, 2010. This maturity will, however, automatically be extended to May 19, 2013 upon the satisfaction of the conditions contained in the refinancing master agreement, as discussed in “— Refinancing Master Agreement” below. |
229
Thousands of | ||||||||
Maturity | Euros | Floating Euribor Rates | ||||||
Within 3 months(1)(2) | 1,861,871 | 0.5 | % | |||||
From 3 to 6 months(2) | 298,226 | 1.0 | % | |||||
From 6 to 9 months | 70,738 | 1.1 | % | |||||
From 9 to 12 months | 303,863 | 1.2 | % | |||||
From 1 to 2 years | 813,728 | 1.3 | % | |||||
From 2 to 3 years | 1,325,688 | 1.8 | % | |||||
After 3 years | 279 | 2.2 | % | |||||
Total | 4,674,393 | |||||||
(1) | As of July 29, 2010 Prisa has obtained a bank extension for the maturity of the bridge loan (which amounts to €1.76 billion) until November 30, 2010, as discussed above. | |
(2) | The liquidity requirements in June, 2010 reflect the €217.4 million decrease in the debt situation as a consequence of the sale of a 25% stake in Santillana. |
Six Months Ended | For the Years Ended December 31, | |||||||||||||||
June 30, 2010 | 2009 | 2008 | 2007 | |||||||||||||
(thousands of euros) | ||||||||||||||||
Syndicated loan and credit facility to Prisa | 1,571,206 | 1,739,910 | 1,760,745 | 1,875,470 | ||||||||||||
Bridge loan to Prisa | 1,712,777 | 1,791,608 | 1,786,375 | — | ||||||||||||
Syndicated loan and credit facility to Sogecable | 740,666 | 707,554 | 801,331 | 805,108 | ||||||||||||
Subordinated loan to Prisa | 134,000 | 134,000 | 134,000 | 50,000 | ||||||||||||
Loans | 21,640 | 20,480 | 29,892 | 93,453 | ||||||||||||
Credit facilities | 304,457 | 305,067 | 340,652 | 246,222 | ||||||||||||
Finance leases and other | 11,166 | 15,706 | 27,174 | 24,165 | ||||||||||||
Total | 4,495,912 | 4,714,325 | 4,880,169 | 3,094,418 | ||||||||||||
230
Drawn-Down | Drawn-Down | |||||||||||||||
Amount | Amount | |||||||||||||||
Maturing at | Maturing at | |||||||||||||||
Maturity | Limit | Short Term | Long Term | |||||||||||||
(thousands of euros) | ||||||||||||||||
Syndicated loan and credit facility to Prisa | 2013 | 1,747,305 | 305,307 | 1,441,998 | ||||||||||||
Bridge loan to Prisa | 2010 | 1,835,837 | 1,835,837 | — | ||||||||||||
Subordinated loan to Prisa | 2013 | 134,000 | — | 134,000 | ||||||||||||
Syndicated loan and credit facility to Sogecable | 2011 | 750,000 | 495,000 | 225,000 | ||||||||||||
Credit facilities | 2010-2012 | 418,912 | 193,650 | 111,500 | ||||||||||||
Loans | 2010-2023 | 20,480 | 8,166 | 12,314 | ||||||||||||
Finance leases, interest and others | 2010-2023 | 15,705 | 8,852 | 6,851 | ||||||||||||
Loan arrangement costs | 2010-2013 | — | (50,450 | ) | (13,700 | ) | ||||||||||
Total | 4,922,239 | 2,796,362 | 1,917,963 | |||||||||||||
Drawn-Down | Drawn-Down | |||||||||||||||
Amount | Amount | |||||||||||||||
Maturing at | Maturing at | |||||||||||||||
Maturity | Limit | Short Term | Long Term | |||||||||||||
Syndicated loan and credit facility to Prisa | 2013 | 1,577,520 | 135,522 | 1,441,998 | ||||||||||||
Bridge loan to Prisa | 2010 | 1,758,188 | 1,758,188 | — | ||||||||||||
Subordinated loan to Prisa | 2013 | 134,000 | — | 134,000 | ||||||||||||
Syndicated loan and credit facility to Sogecable | 2011 | 750,000 | 637,500 | 112,500 | ||||||||||||
Credit facilities | 2010-2012 | 403,561 | 247,585 | 57,030 | ||||||||||||
Loans | 2010-2023 | 21,640 | 19,397 | 2,243 | ||||||||||||
Finance leases, interest and others | 2010-2023 | 11,166 | 5,929 | 5,235 | ||||||||||||
Loan arrangement costs | 2010-2013 | — | (51,790 | ) | (9,425 | ) | ||||||||||
Total | 4,656,075 | 2,752,331 | 1,743,581 | |||||||||||||
231
(thousands of euros) | ||||||||
Maturity | As of June 30, 2010 | As of December 31, 2009 | ||||||
2010 | 135,522 | 205,192 | ||||||
2011 | 305,685 | 305,685 | ||||||
2012 | 350,929 | 350,929 | ||||||
2013 | 410,384 | 410,384 | ||||||
1,202,520 | 1,272,190 | |||||||
• | Tranche A: €2,034.0 million, the proceeds of which were used to (i) acquire the remaining outstanding public shares of Sogecable, as part of Prisa’s takeover bid for Sogecable; (ii) meet the counter-guarantee obligations under the guarantee provided in relation to this takeover bid; and (iii) to cover the related costs and expenses of the takeover. | |
• | Tranche B: €2,052.0 million, the purpose of which was to refinance the syndicated loan and credit facility and the subordinated credit facility, in the event that the agent of the syndicated loan and credit facility, under of the majority of the syndicate’s lenders, notified Prisa of the early maturity of the syndicated financing due to noncompliance with certain obligations. | |
• | Tranche C: €144.0 million, the proceeds of which were used to finance the purchase of Sogecable shares, at a purchase price not exceeding the takeover bid price, during the period between the announcement of the bid and the end of the offering. |
232
(i) | Extension of the maturity of the loan until March 31, 2009; and | |
(ii) | Full cancellation of Tranche C of the loan in the amount of €142.0 million, and the reduction of the principal amount under Tranche A of the loan by €87.1 million. Accordingly, the principal amount of the borrowings under the bridge loan agreement was established as €1,948.9 million. |
233
Maturity | ||||
(thousands of euros) | ||||
2010 | 225,000 | |||
2011 | 225,000 | |||
450,000 | ||||
• | guarantees and financing that Sogecable may provide to non-significant subsidiaries and third parties; | |
• | change in control of the shareholdings in Sogecable; | |
• | the sale or disposal of its shares or ownership interests in significant Sogecable subsidiaries; | |
• | the distribution of dividends, except in certain cases; and | |
• | the sale or disposal of significant assets of significant Sogecable subsidiaries. |
234
• | application of the proceeds from the Santillana transaction (which was completed on April 29, 2010) in accordance with the terms of the refinancing master agreement; | |
• | provision of evidence that Prisa has completed the disposal of a minority interest in Media Capital; | |
• | receipt of not less than €450 million ($613.8 million based on an agreed euro to dollar exchange rate of 1.364) from the proceeds of the business combination transaction; and | |
• | to the extent that a new pledge of shares of Digital+ and Telecinco have been granted, provision of evidence that such pledge agreements have been executed. |
235
• | on the date of the execution of the refinancing master agreement, Prisa shall grant to the lender group a pledge over the shares of Unión Radio held by Prisa; | |
• | on or prior to November 30, 2010, (i) the Media Capital transaction shall have been consummated and (ii) Prisa shall have repaid,pro ratato the lenders under each of the syndicated loan and credit facility and the bridge loan agreement, the proceeds of such Media Capital transaction (other than €30.0 million thereof retained for working capital purposes); | |
• | within one month of the application of the proceeds from the Digital+ dispositions to Telefónica and to Telecinco have been applied, and the Sogecable syndicated loan and credit agreement shall have been repaid in full, Prisa shall grant to the lender group a pledge of the shared representing 56% of the shares of DTS; and | |
• | Prisa shall pledge the shares held by Prisa in Telecinco, within one month after Prisa subscribes for the shares in the capital increase in Telecinco as contemplated by the Telecinco transaction. |
236
237
• | implementation of cost-cutting programs, including restructuring of printed media, use of cross-selling models and multimedia advertising sales. | |
• | fostering and development of the digital business. | |
• | expansion outside of Spain. |
• | Implementation of an online and multichannel strategy at each of the various business units, through a variety of initiatives, which has resulted in, according to Omniture, over 40 million users per month for Prisa’s websites across all of its business segments. Also according to Omniture, at present El País.com has 17 million unique users, with nearly 30% of these from outside Spain. | |
• | El Paíshas launchedEl País Plus, a mobile phone service, and was the first Spanish daily to launch a native application for the iPhone and to sign an agreement with Amazon to offer a Kindle edition. | |
• | Radio content is streamed through Prisa’s internet-based digital supports and mobility platforms, via over 40 different websites in ten countries and over ten million unique users per month. |
238
• | Santillana is increasing its digital content catalogue and has created what Prisa believes to be a new educational system in which content is provided by digital media (text, videos, audio, etc.). Through its integrated learning systems Santillana provides students, teachers and households with multimedia services and resources, in addition to textbooks. In 2010, Santillana launched, in partnership with six other publishers, Libranda, the biggest Spanish distribution platform for books. | |
• | Santillana has also developed digital media to complement some of its literary offerings, including interactive online games and online common-interest communities, such as fan pages on Facebook.com for books published by Santillana. | |
• | In pay television, Sogecable creates products for mobile phones and the internet and has pioneered the introduction of high-definition and interactive services in Spain. | |
• | Prisa believes it is the leading provider of audiovisual content over the internet in Spain and as of the date of this proxy statement/prospectus has more than 1,300 published videos and 6.2 million streams per month on Cuatro and 6.1 million streams per month on youtube.com/cuatro and more than 200,000 premium videos streamed monthly from digitalplus, es. |
239
240
Less than | More than | |||||||||||||||||||
Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | ||||||||||||||||
(thousands of euros) | ||||||||||||||||||||
Financial debt | 4,714,325 | 2,796,362 | 998,420 | 919,299 | 244 | |||||||||||||||
Cash interest obligations on financial debt(1) | 273,917 | 79,959 | 143,961 | 49,936 | 61 | |||||||||||||||
Cash receipts/payments on derivative financial instruments(2) | 18,351 | 13,052 | 5,299 | — | — | |||||||||||||||
Operating leases(3) | 618,151 | 73,574 | 139,448 | 141,847 | 263,282 | |||||||||||||||
Future commitments(4) | 1,325,443 | 570,782 | 590,354 | 85,811 | 78,496 | |||||||||||||||
Guarantees(5) | 392,822 | 9,846 | 79,123 | 66,300 | 237,553 | |||||||||||||||
Other long-term liabilities(6) | 16,958 | — | — | — | 16,958 | |||||||||||||||
TOTAL | 7,359,967 | 3,543,575 | 1,956,605 | 1,263,193 | 596,594 | |||||||||||||||
(1) | Interest obligations on long-term debt represent an estimate of future cash interest expenses based on current interest rates, current debt levels and scheduled debt repayments. | |
(2) | Cash receipts and payments on derivative financial instruments represent an estimate of future cash receipts and payments based on current expectations of interest rate levels and foreign exchange rates. | |
(3) | Operating leases includes the minimum lease payments arising from several assets and services used by Prisa. The most significant ones are the buildings in Gran Vía 32, Miguel Yuste and Caspe, the provision of analog, digital terrestrial and satellite broadcasting services and radio broadcasting services (the most significant lease relates to Media Latina). | |
(4) | Future commitments represents an estimate of contractual commitments of Sogecable and Media Capital with various suppliers and consumers for future program broadcasting rights and the exploitation of image rights and sports rights. In addition, it includes the payments required under the agreement between Prisa and Indra for provision of global IT services by Indra for seven years as of December 31, 2009. | |
(5) | Guarantees with undetermined expiration are included in the more than five years due period. | |
(6) | Other long-term liabilities includes long-term provisions for taxes related to the estimated amount of tax debts arising from tax audits of various Prisa companies in process as of December 31, 2009. As the expiration date is undetermined, this amount is included in the more than five years due period. |
Less than | More than | |||||||||||||||||||
Total | 1 year | 1-3 Years | 3-5 Years | 5 Years | ||||||||||||||||
(thousands of euros) | ||||||||||||||||||||
Financial debt | 4,495,912 | 2,452,330 | 2,043,317 | 62 | 203 | |||||||||||||||
Cash interest obligations on financial debt(1) | 178,481 | 82,368 | 96,099 | 5 | 9 |
241
• | Executive Directors: Executive directors include the chairman of the board, the chief executive officer, or CEO, of Prisa and any other director who serves in any other capacity where he or she assumes managerial responsibilities within Prisa or any of its subsidiaries; | |
• | Proprietary Directors: Proprietary directors are directors proposed by significant, stable shareholders of Prisa; and | |
• | Independent Directors: Independent directors are professionals of recognized prestige who do not have any relationships to the executive team of Prisa or to significant shareholders of Prisa that would compromise their independence. |
Date of Initial | Date Current | |||||||||
Name | Age | Position on the Board | Appointment | Term Ends(1) | ||||||
Ignacio Polanco Moreno(4) | 55 | Chairman (executive) | March 18, 1993 | March 13, 2013 | ||||||
Juan Luis Cebrián Echarri(5) | 65 | Chief Executive Officer (executive) | June 15, 1983 | June 18, 2014 | ||||||
Alfonso López Casas | 54 | Director (executive) | April 17, 2008 | December 5, 2013 | ||||||
Emiliano Martinez Rodriguez | 69 | Director (executive) | June 15, 1989 | June 18, 2014 | ||||||
Manuel Polanco Moreno(4)(5) | 49 | Director (executive) | April 19, 2001 | March 23, 2011 | ||||||
Matías Cortés Domínguez(5) | 72 | Director (independent) | March 25, 1977 | June 18, 2014 | ||||||
Gregorio Marañón Bertrán De Lis(5)(7) | 67 | Director (independent) | June 15, 1983 | June 18, 2014 | ||||||
José Buenaventura Terceiro Lomba(5)(6)(7) | 66 | Director (independent) | November 15, 1990 | March 23, 2011 | ||||||
Diego Hidalgo Schnur(5)(7) | 67 | Director (proprietary)(3) | June 17, 1982 | March 13, 2013 | ||||||
Ramón Mendoza Solano(6) | 56 | Director (proprietary)(3) | April 19, 2001 | March 23, 2011 | ||||||
Ágnes Noguera Borel(5)(6) | 46 | Director (proprietary)(3) | April 20, 2006 | March 22, 2012 | ||||||
Borja Jesús Pérez Arauna(6) | 40 | Director (proprietary)(2) | May 18, 2000 | June 30, 2015 | ||||||
Adolfo Valero Cascante(5)(7) | 68 | Director (proprietary)(2) | October 20, 1988 | June 18, 2014 | ||||||
Iñigo Dago Elorza | 46 | Non-Director Secretary |
(1) | Pursuant to Article 18 of Prisa’s by-laws, Prisa directors serve five year terms, or until their earlier resignation. However, pursuant to Article 145.1 of the Spanish Commercial Registry Regulations, a director’s board membership lapses when, subsequent to the expiration of the director’s term, the first of the following events occurs: (i) the general shareholders’ meeting is held, or (ii) when the statutory period for holding the general shareholders’ meeting for the appointment of directors has passed, which is six months following the end of Prisa’s fiscal year. |
242
(2) | Nominated by Timón, S.A., a controlled entity of Rucandio, which, in turn, is a family company controlled by Ignacio, María Jesús and Manuel Polanco Moreno, by their mother, Isabel Moreno Puncel, and by the children of Isabel Polanco Moreno,i.e., Jaime, Lucía, Isabel and Marta López Polanco. | |
(3) | Nominated by Promotora de Publicaciones, S.L., a controlled entity of Rucandio, which, in turn, is a family company controlled by Ignacio, María Jesús and Manuel Polanco Moreno, by their mother, Isabel Moreno Puncel, and by the children of Isabel Polanco Moreno, i.e., Jaime, Lucía, Isabel and Marta López Polanco. | |
(4) | Ignacio and Manuel Polanco Moreno are related to certain other Prisa directors and officers, as discussed below in “— Family Relationships.” | |
(5) | Member of the executive committee. | |
(6) | Member of the audit committee. | |
(7) | Member of the corporate governance, nomination and remuneration committee. |
243
244
245
Name | Age | Position | Position Since | |||||||
Ignacio Santillana del Barrio(1) | 62 | General Manager and Chief Operating Officer | January 2009 | |||||||
Fernando Martinez Albacete(1) | 39 | General Secretary | March 2009 | |||||||
Augusto Delkader Teig(1) | 60 | Chief Executive Officer — Unión Radio | December 1998 | |||||||
Jesús Ceberio Galardi(1) | 63 | General Press Manager and General Director of Diario El País | May 2006 | |||||||
Miguel Ángel Cayuela(1) | 49 | Chief Executive Officer — Santillana | April 2008 | |||||||
Pedro García Guillén(1) | 46 | Chief Executive Officer — Sogecable | March 2009 | |||||||
Matilde Casado Moreno | 48 | Chief Financial Officer | October 2001 | |||||||
Iñigo Dago Elorza | 46 | Chief Legal Officer and Secretary of the Board of Directors | February 2009 | |||||||
Kamal M. Bherwani(1) | 40 | Chief Digital Officer | January 2010 | |||||||
Andrés Cardó | 48 | Director of Corporate Development and Marketing | January 2010 | |||||||
Oscar Gómez | 48 | Manager of Organization, Resources and Technology | February 2009 | |||||||
Bárbara Manrique | 34 | Communications Manager | October 2007 | |||||||
Virginia Fernández Iribarnegaray | 40 | Internal Audit Manager | May 2007 |
(1) | Member of the business and management committee. |
246
247
• | convicted of fraud; | |
• | related, in his or her capacity as a member of the board of directors of Prisa, to bankruptcy, administration, arrangements with creditors or any liquidation of a business; or | |
• | convicted under criminal proceedings or has been the subject of administrative disciplinary measures by state or regulatory authorities or disqualified by a court from acting as a member of the administrative, management or supervisory bodies of an issuer or from acting in the management conduct of the affairs of any issuer. |
248
• | Ignacio Polanco Moreno and Manuel Polanco Moreno are brothers. | |
• | Alfonso López Casas is thebrother-in-law of Ignacio Polanco Moreno and Manuel Polanco Moreno. | |
• | Emiliano Martinez Rodriguez is Fernando Martinez Albacete’s father. |
249
Name of Director | Description of the Conflict of Interest | |
Ignacio Polanco Moreno | Approval of contracts for services with Timón | |
Francisco Javier Díez de Polanco | Approval of contracts for services with Timón | |
Emiliano Martínez Rodríguez | Approval of contracts for services with Timón | |
Francisco Pérez González | Approval of contracts for services with Timón | |
Borja Pérez Arauna | Approval of contracts for services with Timón | |
Isabel Polanco Moreno | Approval of contracts for services with Timón | |
Manuel Polanco Moreno | Approval of contracts for services with Timón | |
Adolfo Valero Cascante | Approval of contracts for services with Timón | |
Francisco Javier Díez de Polanco | Launch of a takeover bid for Sogecable |
Name of Director | Description of the Conflict of Interest | |
Ignacio Polanco Moreno | Re-election of Ignacio Polanco Moreno as chairman of the executive committee | |
Diego Hidalgo Schnur | Re-election of Diego Hidalgo Schnur as a member of the executive committee |
Name of Individual or Corporate Director | Description of the Conflict of Interest | |
Ignacio Polanco Moreno | The board of directors’ approval of compensation for executive directors | |
Juan Luis Cebrián Echarri | The board of directors’ approval of: i) submitting him for re-election as director at the shareholders meeting and ii) his appointment as chief executive officer and, as a result and pursuant to the board of directors Regulation, his assuming the post of chairman of the executive committee | |
Matías Cortés Dominguez | The board of directors’ approval of: i) submitting him for re-election as director at the shareholders meeting, ii) his re-election as member of the executive committee and iii) the proposal of professional agreements with this director | |
Francisco Javier Díez de Polanco | The board of directors’ approval of compensation for executive directors |
250
Name of Individual or Corporate Director | Description of the Conflict of Interest | |
Alfonso López Casas | The board of directors’ approval of compensation for executive directors | |
Emiliano Martinez Rodriguez | The board of directors’ approval of: i) compensation for executive directors and ii) submitting him for re-election as director at the shareholders meeting | |
Gregorio Marañón y Bertrán de Lis | The board of directors’ approval of: i) submitting him for re-election as director at the shareholders meeting, ii) his re-election as member of the executive committee and iii) the proposal of professional agreements with this director | |
Manuel Polanco Moreno | The board of directors’ approval of compensation for executive directors | |
José Buenaventura Terceiro Lomba | The board of directors’ approval of: i) submitting him for re-election as director at the shareholders meeting and ii) his appointment as chairman of the audit committee | |
Adolfo Valero Cascante | The board of directors’ approval of: i) submitting him for re-election as director at the shareholders meeting and ii) his re-election as member of the executive committee |
Director’s Name | Significant Shareholder’s Name | Description of the Relationship | ||
Ignacio Polanco Moreno | Rucandio | The director beneficially owns 13.55% and is the naked owner(nudo propietaro) of 11.45% of the share capital of Rucandio | ||
Juan Luis Cebrián Echarri | Promotora de Publicaciones | The director has 0.03% direct and 0.25% indirect holdings in the share capital of Promotora de Publicaciones | ||
Adolfo Valero Cascante | Promotora de Publicaciones | The director has 0.0048% direct holdings in the share capital of Promotora de Publicaciones | ||
Adolfo Valero Cascante | Timón | The director has a 0.59% indirect holding in the share capital of Timón |
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Director’s Name | Significant Shareholder’s Name | Description of the Relationship | ||
Agnes Noguera Borel | Promotora de Publicaciones | The director is the chief executive officer of Libertas 7, S.A., a party to the shareholders’ agreement in Promotora de Publicaciones. Libertas 7, S.A. has direct holdings of 10.75% in the share capital of Promotora de Publicaciones | ||
Borja Jesús Pérez Arauna | Promotora de Publicaciones | The director has 0.0048% direct holdings in the share capital of Promotora de Publicaciones | ||
Diego Hidalgo Schnur | Promotora de Publicaciones | The director has 11.5632% indirect holdings in the share capital of Promotora de Publicaciones | ||
Diego Hidalgo Schnur | Promotora de Publicaciones | The director controls Eviend Sarl, a party to the shareholders agreement in Promotora de Publicaciones | ||
Emiliano Martínez Rodriguez | Promotora de Publicaciones | The director has 0.084% direct and 0.31% indirect holdings in the share capital of Promotora de Publicaciones | ||
Emiliano Martínez Rodriguez | Timón | The director has 6.12% indirect holdings in the share capital of Timón | ||
Gregorio Marañón Bertrán De Lis | Promotora de Publicaciones | The director has 0.44% indirect holdings in the share capital of Promotora de Publicaciones | ||
José Buenaventura Terceiro Lomba | Promotora de Publicaciones | The director has 0.25% direct holdings in the share capital of Promotora de Publicaciones | ||
Manuel Polanco Moreno | Rucandio | The director beneficially owns 13.55% and is the naked owner (nudo proprietaro) of 11.45% of the share capital of Rucandio | ||
Matías Cortés Dominguez | Promotora de Publicaciones | The director has 0.06% direct holdings in the share capital of Promotora de Publicaciones |
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Director’s Name | Significant Shareholder’s Name | Description of the Relationship | ||
Ramón Mendoza Solano | Promotora de Publicaciones | The director is the chairman of Inversiones Mendoza Solano, S.L., a company bound by the shareholder’s agreement in Promotora de Publicaciones. Inversiones Mendoza Solano, S.L. has 5.49% direct shareholdings in the share capital of Promotora de Publicaciones |
• | Juan Luis Cebrián Echarri is a director of Le Monde, S.A. and member of the board of directors of Lambrakis Press, S.A.; | |
• | Gregorio Marañón Bertrán de Lis is chairman of Universal Music Spain, S.L.; and | |
• | Borja Pérez Arauna is a director of Tuenti Technologies, S.L. (as representative of Qualitas Venture Capital, S.A. de SRC de regimen simplificado). |
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Six Months Ended | ||||||||||||
June 30, | ||||||||||||
Compensation | 2010 | 2009 | 2008 | |||||||||
Fixed salaries | 1,320 | 1,839 | 1,892 | |||||||||
Variable salaries | 1,070 | 1,539 | 5,689 | |||||||||
Allowances | 1,019 | 1,395 | 1,200 | |||||||||
Compensation stipulated in the bylaws | 180 | 217 | 1,806 | |||||||||
Options and/or options on other financial instruments | 74 | 0 | 0 | |||||||||
Other | 15 | 3,588 | 128 | |||||||||
TOTAL | 3,678 | 8,578 | 10,715 | |||||||||
Other Benefits | ||||||||||||
Advances | ||||||||||||
Loans | ||||||||||||
Pension funds and plans: contributions | ||||||||||||
Pension funds and plans: obligations assumed | ||||||||||||
Life insurance premiums | 8 | 9 | 12 | |||||||||
Guarantees assumed by Prisa for the benefit of directors |
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Compensation | 2009 | 2008 | 2007 | |||||||||
Fixed salaries | 2,010 | 1,700 | 1,749 | |||||||||
Variable salaries | 1,588 | 3,490 | 1,945 | |||||||||
Allowances | 1,811 | 2,176 | 912 | |||||||||
Compensation stipulated in the bylaws | — | 1,386 | 1,322 | |||||||||
Options and/or options on other financial instruments | — | — | — | |||||||||
Other | 1,886 | 83 | 69 | |||||||||
TOTAL: | 7,295 | 8,835 | 5,997 | |||||||||
Other Benefits | 2009 | 2008 | 2007 | |||||||||
Advances | — | — | — | |||||||||
Loans | — | — | — | |||||||||
Pension funds and plans: contributions | — | — | — | |||||||||
Pension funds and plans: obligations assumed | — | — | — | |||||||||
Life insurance premiums | 24 | 20 | 21 | |||||||||
Guarantees assumed by Prisa for the benefit of directors | — | — | — |
Compensation | 2009 | 2008 | 2007 | |||||||||
Fixed salaries | 1,058 | 1,962 | 2,040 | |||||||||
Variable salaries | 972 | 2,199 | 1,270 | |||||||||
Allowances | 530 | 661 | 533 | |||||||||
Compensation stipulated in the bylaws | 398 | 420 | 392 | |||||||||
Stock options and/or options on other financial instruments | — | — | — | |||||||||
Other | 3,444 | 70 | 46 | |||||||||
TOTAL: | 6,402 | 5,312 | 4,281 | |||||||||
Other Benefits | 2009 | 2008 | 2007 | |||||||||
Advances | — | — | — | |||||||||
Loans | — | — | — | |||||||||
Pension funds and plans: contributions | — | — | — | |||||||||
Pension funds and plans: obligations assumed | — | — | — | |||||||||
Life insurance premiums | 11 | 12 | 14 | |||||||||
Guarantees assumed by the Company for the benefit of directors | — | — | — |
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2009 | 2008 | 2007 | ||||||||||||||||||||||
Category | By Prisa | By Group | By Prisa | By Group | By Prisa | By Group | ||||||||||||||||||
Executive directors | 5,556 | 6,044 | 6,754 | 4,869 | 4,691 | 3.922 | ||||||||||||||||||
Proprietary directors | 1,025 | 275 | 1,197 | 336 | 754 | 255 | ||||||||||||||||||
Independent non-executive directors | 714 | 83 | 884 | 107 | 552 | 104 | ||||||||||||||||||
Total | 7,295 | 6,402 | 8,835 | 5,312 | 5,997 | 4,281 | ||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||
Total directors’ compensation | 13,697 | 14,147 | 10,278 | |||||||||
Total directors’ compensation as a percent of profit attributed to Prisa (as a %) | 27.13 | 17.0 | 5.392 |
Name | Position | |
Ignacio Santillana del Barrio | General Manager and Chief Operating Officer | |
Matilde Casado Moreno | Chief Financial Officer | |
Augusto Delkader Teig | Chief Executive Officer of Unión Radio | |
Pedro Garcia Guillén | Chief Executive Officer of Sogecable | |
Jesús Ceberio Galardi | General Press Director and General Director of El País | |
Miguel Ángel Cayuela | Chief Executive Officer of Grupo Santillana | |
Virginia Fernández Iribarnegaray | Internal Audit Director | |
Oscar Gómez Barbero | Chief Organization, Technology and Logistics Officer | |
Fernando Martinez Albacete | General Secretary | |
Iñigo Dago Elorza | Secretary of the Board of Directors and Chief Legal Officer | |
Total Compensation (thousands of euros) | €5,325 |
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Name | Position | |
Ignacio Santillana del Barrio | General Manager and Chief Operating Officer | |
Miguel Satrústegui Gil-Delgado | General Secretary and Secretary of the Board of Directors | |
Matilde Casado Moreno | Chief Financial Officer | |
Jaime de Polanco Soutullo | Managing Director of Strategy Planning and Corporate Development | |
Augusto Delkader Teig | Chief Executive Officer of Unión Radio | |
Pedro Garcia Guillén | General Director of Diario El País | |
Jose Luis Sainz Diaz | Chief Executive Officer of Pretesa and Plural | |
José Carlos Herreros Diaz-Berrio | Commercial Manager | |
Jesús Ceberio Galardi | General Press Director and General Director of Diario El País | |
Manuel Mirat Santiago | Chief Executive Officer of Prisacom | |
Miguel Ángel Cayuela | Chief Executive Officer of Grupo Santillana | |
Virginia Fernández Iribarnegaray | Internal Audit Director | |
Total Compensation (thousands of euros) | €11,111 |
Name | Position | |
Ignacio Santillana del Barrio | General Manager and Chief Operating Officer | |
Miguel Satrústegui Gil-Delgado | General Secretary and Secretary of the Board of Directors | |
Matilde Casado Moreno | Chief Financial Officer | |
Jaime de Polanco Soutullo | Managing Director of Strategy Planning and Corporate Development | |
Augusto Delkader Teig | Chief Executive Officer of Unión Radio | |
Pedro Garcia Guillén | General Director of Diario El País | |
Jose Luis Sainz Diaz | Chief Executive Officer of Pretesa and Plural | |
José Carlos Herreros Diaz-Berrio | Commercial Manager | |
Jesús Ceberio Galardi | General Press Director and General Director of Diario El País | |
Manuel Mirat Santiago | Chief Executive Officer of Prisacom | |
Miguel Ángel Cayuela | Chief Executive Officer of Grupo Santillana | |
Virginia Fernández Iribarnegaray | Internal Audit Director | |
Total Compensation (thousands of euros) | €6,525 |
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• | obtain information and prepare in an adequate manner for meetings of the board of directors and for meeting of the board committees to which he or she may belong (including, if applicable, the executive committee); | |
• | attend the meetings of the board committees to which he or she may belong (including, if applicable, the executive committee) and take an active part in the discussions so that his or her input contributes effectively to the taking of board actions; | |
• | perform any specific tasks charged by the board of directors reasonably within the scope of his or her duties; | |
• | foster the investigation of any irregularity in the management of Prisa of which he or she may be apprised and monitor any situation of risk; | |
• | comply with the internal code of conduct and Board of Directors Regulations; and | |
• | comply with his or her statutory duties and obligations. |
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• | when he or she is subject to any conflict or prohibition provided for by law; | |
• | when he or she has been indicted for an intentional offense in ordinary proceedings for serious offenses (proceedings for offenses punishable by imprisonment for a term in excess of nine years) or has been found guilty in “abbreviated” proceedings (proceedings for offenses punishable by imprisonment for a term not exceeding nine years); | |
• | when he or she receives a serious warning from the board of directors for failing to comply with his or her fiduciary obligations; | |
• | when the reasons for his or her appointment cease to exist and, in particular, when an independent or proprietary director loses his or her status as such; and | |
• | when, in the course of a one-year period, her or she fails to attend more than three board meetings without just cause. |
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• | to report to the shareholders at the general shareholders’ meeting on issues raised by the shareholders on matters within its scope, in accordance with Spanish law and Prisa’s General Meeting Regulations; | |
• | to propose to the board of directors, for submission to the shareholders at the general shareholders’ meeting, the appointment of the external auditors, pursuant to Article 204 of the Spanish Companies Law; | |
• | to oversee Prisa’s internal audit function; | |
• | to supervise Prisa’s financial reporting process and internal controls; and | |
• | to maintain a relationship with Prisa’s external auditors in order to remain informed of any matters which might jeopardize their independence and any other matters related to the financial audit process, as well as any other communications prescribed by audit legislation and the applicable accounting and audit standards. |
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• | reports and proposes to the board of directors the terms of engagement for Prisa’s independent external auditors, sets the scope of their services and, if appropriate, terminates or elects not to renew the engagement; the audit committee also supervises the auditor’s compliance with the auditing contract; | |
• | proposes the selection, appointment, re-appointment and removal of the head of Prisa’s internal audit function; | |
• | reviews Prisa’s financial statements, monitors Prisa’s compliance with legal requirements and the application of generally accepted accounting principles, and informs the board of directors of any proposals for changes to accounting policies or methodology that management may recommend; | |
• | reviews Prisa’s regulatory filings and any information in the quarterly and semi-annual financial statements, which the board of directors has to disclose to the markets and to their regulatory bodies; | |
• | analyzes and reports on any investment transactions not in the ordinary course, when so requested by the board of directors due to their significance; | |
• | reports on the creation or acquisition of ownership interests in entities incorporated in countries or territories considered to be tax havens; and | |
• | discharges any other function that Prisa’s Board of Directors Regulations delegate to the audit committee. |
• | reports to the board on the nominations by the directors for the positions of executive director, proprietary director and honorary director, and proposes the appointment of independent directors; | |
• | reports to the board on nominations for secretary of the board of directors; | |
• | proposes to the board: (i) the compensation policy for directors and senior executives, (ii) the individual compensation and other contractual conditions applicable to executive directors, and (iii) individual compensation of honorary directors; | |
• | oversees compliance with Prisa’s compensation policy; | |
• | approves the form of senior executive employment contract; | |
• | reports to the board regarding nominees for other board committees and the executive committee; | |
• | reports to the board regarding nominees for the managing bodies of Prisa’s subsidiaries; |
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• | submits the Annual Corporate Governance Report to the board of directors; | |
• | submits to the board a report evaluating the functioning and composition of the board; | |
• | examines compliance with the Internal Code of Conduct for securities markets, Board of Directors Regulations and Prisa’s corporate governance rules in general; | |
• | submits any proposals necessary for the improvement of corporate governance and is responsible for investigating questionable actions of senior executives, and where appropriate, issuing a report on disciplinary measures against such executives; and | |
• | discharges any other function that Prisa’s Board of Directors Regulations delegate to the committee. |
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Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||
Number of Employees(1) | 2009 | 2008 | 2007 | 2006 | ||||||||||||
By category: | ||||||||||||||||
Executives | 541 | 552 | 604 | 454 | ||||||||||||
Middle management | 1,600 | 1,716 | 7,314 | 6,141 | ||||||||||||
Other employees | 12,846 | 12,927 | 5,514 | 5,412 | ||||||||||||
Total | 14,987 | 15,195 | 13,432 | 12,007 | ||||||||||||
By geographical origin: | ||||||||||||||||
Spain | 8,044 | 8,404 | 7,112 | 7,403 | ||||||||||||
International | 6,943 | 6,791 | 6,320 | 4,604 | ||||||||||||
Total | 14,987 | 15,195 | 13,432 | 12,007 |
(1) | The changes between December 31, 2007 and December 31, 2008 in the number of employees classified as “Middle Management” and “Other Employees” is due to an internal reorganization of categories consisting of the elimination of line personnel from “Middle Management” and their inclusion in “Other Employees,” which was considered to be more in line with the composition of Prisa’s workforce. |
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Price Range of Prisa Ordinary Shares | ||||||||
High | Low | |||||||
(Euros per share) | ||||||||
Annual Data (Year Ended December 31) | ||||||||
2005 | 16.57 | 14.21 | ||||||
2006 | 16.06 | 11.41 | ||||||
2007 | 17.66 | 11.24 | ||||||
2008 | 13.10 | 2.11 | ||||||
2009 | 4.62 | 0.94 | ||||||
Quarterly Data | ||||||||
1Q 2008 | 13.10 | 8.05 | ||||||
2Q 2008 | 11.85 | 6.63 | ||||||
3Q 2008 | 7.26 | 4.47 | ||||||
4Q 2008 | 4.99 | 2.11 | ||||||
1Q 2009 | 2.72 | 0.94 | ||||||
2Q 2009 | 4.47 | 1.81 | ||||||
3Q 2009 | 4.62 | 3.15 | ||||||
4Q 2009 | 4.07 | 2.98 | ||||||
1Q 2010 | 4.32 | 2.46 | ||||||
2Q 2010 | 3.68 | 1.66 | ||||||
3Q 2010 | 2.52 | 1.51 | ||||||
Monthly Data | ||||||||
November 2009 | 3.55 | 2.98 | ||||||
December 2009 | 4.07 | 3.10 | ||||||
January 2010 | 4.02 | 3.35 | ||||||
February 2010 | 4.32 | 3.20 | ||||||
March 2010 | 3.44 | 2.46 | ||||||
April 2010 | 3.68 | 2.69 | ||||||
May 2010 | 3.22 | 1.96 | ||||||
June 2010 | 2.35 | 1.66 | ||||||
July 2010 | 2.35 | 1.85 | ||||||
August 2010 | 2.52 | 1.51 | ||||||
September 2010 | 1.88 | 1.60 |
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• | June 14, 2007, due to comments made by Prisa’s CEO to the Bloomberg news service regarding Sogecable and Unión Radio. Prisa clarified these statements with the CNMV, explaining that no decision had been made to sell those assets, consistent with the declaration made by the CEO; | |
• | December 20, 2007, due to the pending announcements of Prisa’s tender offer for the acquisition of Sogecable shares, discussed in “Information About Prisa—Liquidity and Capital Resources;” | |
• | December 18, 2009, due to the pending announcement of the acquisition by Telecinco of Cuatro and a 22% interest in DTS from Prisa, discussed in “Recent Developments—Recent Developments of Prisa;” and | |
• | February 23, 2010, due to reports in various news outlets concerning the proposed business combination between Prisa and Liberty. |
Dividends Paid to Prisa Ordinary Shares | ||||||||||||||||||||||
Fiscal Year | €/$ Exchange Rate | |||||||||||||||||||||
(In respect of) | Date Declared | Date Paid | Euros per share | on Date Paid | Dollars Per Share | |||||||||||||||||
2005 | March 23, 2006 | March 28, 2006 | 0.140 | 1.200 | 0.168 | |||||||||||||||||
2006 | Feb. 23, 2007 | March 27, 2007 | 0.160 | 1.335 | 0.214 | |||||||||||||||||
2007 | Feb. 11, 2008 | March 19, 2008 | 0.184 | 1.563 | 0.288 | |||||||||||||||||
2008 | — | — | — | — | — | |||||||||||||||||
2009 | — | — | — | — | — |
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• | For options: contract amounts and rate caps and floors. | |
• | For swaps: notional amounts and characteristics of payments made and received. | |
• | For debt obligations: principle amounts and characteristics of the interest payments. |
Fair Value | ||||||||||||||||||||||||||
2013 and | (thousands of euros)(€) | |||||||||||||||||||||||||
As of December 31, 2009 | 2010 | 2011 | 2012 | Thereafter | Total | 12/31/09 | ||||||||||||||||||||
Interest rate options | ||||||||||||||||||||||||||
COLLAR in EUROS(1) | — | — | 50,000 | — | 50,000 | (2,330 | ) | |||||||||||||||||||
Buy CAP—ref. Euribor | Weighted Average rate Cap | 4.99 | % | 4.99 | % | 4.99 | % | |||||||||||||||||||
Sell Floor—ref. Euribor | Weighted Average rate Floor | 3.25 | % | 3.25 | % | 3.25 | % | |||||||||||||||||||
Complex Instruments | ||||||||||||||||||||||||||
“Leónidas” Collar(2) | 78,000 | 306,152 | — | — | 384,152 | (10,769 | ) | |||||||||||||||||||
Buy CAP—ref. Euribor | Weighted Average rate Cap | 4.41 | % | 4.41 | % | |||||||||||||||||||||
Sell Floor—ref. Euribor | Weighted Average rate Floor | 3.30 | % | 3.30 | % | |||||||||||||||||||||
“Leónidas” Swap(3) | 30,000 | 117,751 | — | — | 147,751 | (5,677 | ) | |||||||||||||||||||
TOTAL | 581,903 | (18,776 | ) | |||||||||||||||||||||||
(1) | Pursuant to the collar contract, Media Capital pays each month, the current 1-month Euribor floating rate on the notional amount of the collar, subject to a maximum (the cap in the case that floating rate is higher than 4.99%) and minimum (the floor, in the case that the floating rate is lower than 3.25%). In exchange, Media Capital receives, each month the current 1-month Euribor floating rate. | |
(2) | Pursuant to the Leónidas collar contract, Prisa pays, in a given period, the current3-month Euribor floating rate on the notional amount of the collar, subject to a maximum and minimum amount payable per period. In exchange, Prisa receives, in a given period, a payment equal to the lesser of (i) the current3-month Euribor floating rate on the notional amount and (ii) the3-month Euribor floating rate for the prior period plus a spread of 0.35% on the notional amount. | |
(3) | Pursuant to the Leónidas swap contract, Prisa currently pays a fixed rate of 3.95% on the notional amount of the swap. In exchange, Prisa receives, in a given period, a payment equal to the lesser of (i) the current3-month Euribor floating rate on the notional amount and (ii) the3-month Euribor floating rate for the prior period plus a spread of 0.35% of the notional amount. |
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Sensitivity (before tax) | 12/31/09 | |||
(thousands of euros) | ||||
+ 0.5% (increase in interest rate curve) | 3,709 | |||
−0.5% (decrease in interest rate curve) | (4,207 | ) |
Principle Amounts and Applicable Interest Rates of Outstanding | Fair Value | |||||||||||||||||||||||||||
Liabilities Maturing During Fiscal Year | As of | |||||||||||||||||||||||||||
2014 and | December 31, | |||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | Thereafter | Total | 2009 | ||||||||||||||||||||||
(thousands of euros except for percents) | ||||||||||||||||||||||||||||
Liabilities long term | ||||||||||||||||||||||||||||
Prisa Syndicated Loan and Credit Facility (EUR) | 305,307 | 305,685 | 350,929 | 777,988 | — | 1,739,910 | 1,719,054 | |||||||||||||||||||||
Interest rate—Euribor 1m+spread | Eur lm+ 2 | % | Eur lm+ 2 | % | Eur lm+ 2 | % | Eur lm+ 2 | % | ||||||||||||||||||||
Prisa Subordinated Loan (EUR) | — | — | — | 134,000 | — | 134,000 | 131,681 | |||||||||||||||||||||
Interest rate—Euribor 1m+spread | Eur lm+ 4 | % | Eur lm+ 4 | % | Eur lm+ 4 | % | Eur lm+ 4 | % | ||||||||||||||||||||
Sogecable Syndicated Loan and Credit Facility (EUR)(2) | 218,777 | 488,777 | — | — | — | 707,554 | 703,364 | |||||||||||||||||||||
Interest rate—Euribor 1m+spread | Eur lm+ 0.6 | % | Eur lm+ 0.6 | % | Eur lm+ 0.6 | % | Eur lm+ 0.6 | % | ||||||||||||||||||||
Bilateral Loans (EUR) | 23,440 | 30,500 | 68,418 | — | — | 122,358 | 121,224 | |||||||||||||||||||||
Average Interest rate—ref. Euribor | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||
Leasing (USD) | 704 | 17 | 14 | 6 | — | 740 | 738 | |||||||||||||||||||||
Leasing (Unidad de fomento, Chilean Central Bank) | 68 | 63 | — | — | — | 131 | 130 | |||||||||||||||||||||
Other Debt | 16,596 | 14,874 | 2,447 | 810 | 243 | 34,970 | 34,761 | |||||||||||||||||||||
Liabilities short term | ||||||||||||||||||||||||||||
Bridge Loan Agreement (EUR) | 1,791,608 | — | — | — | — | 1,791,608 | 1,787,140 | |||||||||||||||||||||
Interest rate—Euribor 1m+spread | Eur lm+ 2.5 | % | ||||||||||||||||||||||||||
Other Variable Rate Loan (EUR) | 132,230 | — | — | — | — | 132,230 | 131,900 | |||||||||||||||||||||
Interest rate—Euribor 3m+spread | Eur 3m+ 2 | % | ||||||||||||||||||||||||||
Other Variable Rate Loan (EUR) | 17,630 | — | — | — | — | 17,630 | 17,586 | |||||||||||||||||||||
Interest rate—Euribor 1m+spread | ||||||||||||||||||||||||||||
Other Variable Rate Loan (USD) | 28,289 | — | — | — | — | 28,289 | 28,218 | |||||||||||||||||||||
Interest rate | ||||||||||||||||||||||||||||
Other Variable Rate Loan (Chilean peso) | 2,110 | — | — | — | — | 2,110 | 2,105 | |||||||||||||||||||||
Interest rate | ||||||||||||||||||||||||||||
Other Variable Rate Loan (Mexican peso) | 114 | — | — | — | — | 114 | 111 | |||||||||||||||||||||
Interest rate | ||||||||||||||||||||||||||||
Other Variable Rate Loan (Colombian peso) | 2,681 | — | — | — | — | 2,681 | 2,674 | |||||||||||||||||||||
Interest rate | ||||||||||||||||||||||||||||
TOTAL | 2,539,554 | 839,916 | 421,808 | 912,804 | 243 | 4,714,325 | 4,680,687 | |||||||||||||||||||||
(1) | “Eur 1m” refers to the one-month Euribor rate. “Eur 3m” refers to the three-month Euribor rate. The rates provided in this table are the reference rates at which Prisa pays interest under each of its respective lending arrangements. |
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(2) | €257 million is included as a long term risk as it corresponds to bank credits which are automatically renewed each year up to 2011, although this amount is classified as short term bank debt in the balance sheet as of December 31, 2009. |
Notional Value of Contracts | Fair | |||||||||||||||||
Maturing During Fiscal Year | Value | |||||||||||||||||
As of December 31, 2009 | 2010 | Thereafter | Total | 12/31/09 | ||||||||||||||
(thousands of | (thousands of | |||||||||||||||||
dollars) | euros) | |||||||||||||||||
Forward | ||||||||||||||||||
Forward with Barrier(1) | EUR/USD | |||||||||||||||||
sell EUR/buy USD | Contract amount (USD) | 60,000 | — | 60,000 | 1,045 | |||||||||||||
Weighted Avg. Exchange Rate | 1.45 | |||||||||||||||||
Forward | Brazilian Real/USD | |||||||||||||||||
sell BRL/buy USD | Contract amount (USD) | 2,616 | — | 2,616 | (564 | ) | ||||||||||||
TOTAL | 62,616 | 481 |
(1) | Prisa has the right but not the obligation to buy USD / sell EUR at a dollar to euro exchange rate of 1.45 subject to the dollar to euro exchange rate remaining below 1.6820. If the exchange rate reaches 1.6820, Prisa will have the obligation to purchase dollars at an exchange rate equal to $1.45 per euro, on certain specified dates. |
Sensitivity (before tax) | 12/31/09 | |||
+10% (increase in EUR/USD exchange rate) | 5,034 | |||
−10% (decrease in EUR/USD exchange rate) | (1,879 | ) |
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• | the possibility of unpredictable adverse changes in the policiesand/or the existing regulation which have a negative effect on the economic or business conditions of the market in which it operates and, therefore, on the interests of Prisa in these countries; | |
• | the possible devaluation of local currencies or the imposition of restrictions on the exchange regime or any other types of restrictions on capital movements; | |
• | the effects of the inflationand/or the possible devaluation of local currencies can cause subsidiaries of Prisa located in these countries to experience negative equity, requiring the recapitalization or the initiation of liquidation procedures; | |
• | the possibility of public expropriations, nationalizations of assets or the increase of the government involvement in the economy and the companies; and | |
• | the possible imposition of taxes or excessive rates. |
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• | as contemplated by Liberty’s IPO prospectus, since Liberty is seeking approval from its stockholders to consummate the business combination within 90 days of December 12, 2010, this proxy statement/prospectus also seeks stockholder approval for Liberty’s dissolution and its board’s recommended plan of distribution; |
• | Liberty’s board of directors has, consistent with its obligations described in Liberty’s restated certificate of incorporation, adopted a resolution for Liberty to dissolve and adopted a plan of distribution which it has determined to recommend to its stockholders; and |
• | you are also being asked to consider the liquidation proposal to dissolve Liberty in accordance with Delaware law and approve the proposed plan of distribution in, or substantially in, the form of Annex O to this proxy statement/prospectus. |
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As of | As of | As of | ||||||||||
June 30, | December 31, | December 31, | ||||||||||
Balance Sheet Data: | 2010 | 2009 | 2008 | |||||||||
Working capital (deficiency) | $ | 1,438,543 | $ | 9,560,411 | $ | 10,947,952 | ||||||
Total assets | $ | 1,029,639,857 | $ | 1,032,127,150 | $ | 1,031,648,244 | ||||||
Total liabilities | $ | 30,296,529 | $ | 27,461,101 | $ | 27,543,110 | ||||||
Value of common stock which may be redeemed for cash (approximately $9.82 per share)(1) | $ | 304,910,990 | $ | 304,910,990 | $ | 304,910,990 | ||||||
Value of deferred interest income related to common stock subject to possible redemption, net of tax | $ | 2,241,525 | $ | 2,205,468 | $ | 1,568,300 | ||||||
Stockholders’ equity | $ | 692,190,813 | $ | 697,549,591 | $ | 697,625,844 |
(1) | The estimated redemption price per share of approximately $9.82 was as of the date of Liberty’s IPO. On June 30, 2010, the estimated redemption price per share would be approximately $9.87. |
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• | Liberty Virginia will become a wholly owned subsidiary of Prisa; | |
• | each outstanding share of Liberty Virginia common stock, other than shares as to which the holder has validly exercised its redemption rights, will be exchanged for Prisa shares, to be represented by Prisa ADSs, as described elsewhere in this proxy statement/prospectus; and | |
• | each of Liberty Virginia’s outstanding warrants will be exchanged in connection with the consummation of the business combination for a combination of cash and Prisa shares to be represented by Prisa ADSs, as described elsewhere in this proxy statement/prospectus. |
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• | J.P. Morgan Investment Management Inc. serves as investment adviser to the JPMorgan U.S. Government Money Market Fund, which under normal conditions, invests its assets exclusively in debt securities issued or guaranteed by the U.S. government, or by U.S. government agencies or instrumentalities and repurchase agreements fully collateralized by U.S. Treasury and U.S. government securities; | |
• | Goldman Sachs Asset Management, L.P. serves as investment adviser to the Goldman Sachs Financial Square Federal Fund, which limits its investments only to certain U.S. Treasury obligations and U.S. government securities; and | |
• | Federated Investment Management Company serves as investment adviser to the Federated Government Obligation Class Fund, which invests in short-term U.S. Treasury obligations and U.S. government obligations, including repurchase agreements collateralized by U.S. Treasury and government agency securities. |
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Price Range of | Price Range of | Price Range of | ||||||||||||||||||||||
Units | Common stock | Warrants | ||||||||||||||||||||||
High | Low | High | Low | High | Low | |||||||||||||||||||
2007 | ||||||||||||||||||||||||
Fourth Quarter (from December 12, 2007) | $ | 10.90 | $ | 10.00 | $ | 9.75 | $ | 9.03 | $ | 2.90 | $ | 2.55 | ||||||||||||
2008 | ||||||||||||||||||||||||
First Quarter | $ | 10.95 | $ | 10.01 | $ | 9.57 | $ | 9.00 | $ | 2.90 | $ | 2.09 | ||||||||||||
Second Quarter | $ | 10.79 | $ | 8.97 | $ | 9.60 | $ | 9.05 | $ | 2.49 | $ | 1.80 | ||||||||||||
Third Quarter | $ | 10.54 | $ | 8.90 | $ | 9.34 | $ | 8.56 | $ | 2.27 | $ | 0.61 | ||||||||||||
Fourth Quarter | $ | 9.00 | $ | 7.95 | $ | 8.80 | $ | 7.85 | $ | 0.80 | $ | 0.30 | ||||||||||||
2009 | ||||||||||||||||||||||||
First Quarter | $ | 9.12 | $ | 8.50 | $ | 8.90 | $ | 8.29 | $ | 0.56 | $ | 0.22 | ||||||||||||
Second Quarter | $ | 9.30 | $ | 8.88 | $ | 9.10 | $ | 8.75 | $ | 0.45 | $ | 0.25 | ||||||||||||
Third Quarter | $ | 9.84 | $ | 9.28 | $ | 9.50 | $ | 9.05 | $ | 0.90 | $ | 0.33 | ||||||||||||
Fourth Quarter | $ | 10.24 | $ | 9.77 | $ | 9.69 | $ | 9.40 | $ | 0.76 | $ | 0.50 | ||||||||||||
2010 | ||||||||||||||||||||||||
First Quarter | $ | 10.50 | $ | 10.00 | $ | 10.08 | $ | 9.65 | $ | 1.32 | $ | 0.48 | ||||||||||||
Second Quarter | $ | 11.15 | $ | 10.00 | $ | 10.26 | $ | 9.75 | $ | 1.70 | $ | 0.55 | ||||||||||||
Third Quarter | $ | 11.45 | $ | 9.76 | $ | 10.50 | $ | 9.75 | $ | 1.74 | $ | 0.93 |
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Name | Age | Position | ||||
Nicolas Berggruen | 48 | President, Chief Executive Officer and Director | ||||
Martin E. Franklin | 45 | Chairman of the Board | ||||
James N. Hauslein | 51 | Director | ||||
Nathan Gantcher | 69 | Director | ||||
Paul B. Guenther | 70 | Director |
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• | each of the founders has agreed to vote its founders’ common stock in the same manner as a majority of the public stockholders who vote at the special or annual meeting called for the purpose of approving the initial business combination. As a result, they will not be able to exercise redemption rights with respect to the founders’ common stock if the initial business combination is approved by a majority of the Liberty public stockholders; | |
• | the warrants underlying such units become exercisable after Liberty’s consummation of a business combination if and when the last sales price of the common stock equals or exceeds $15.00 per share for any 20 trading days within a 30 trading day period beginning 90 days after such business combination; and | |
• | the warrants underlying such units are non-redeemable for so long as they are held by the founders or their permitted transferees. |
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• | An increase of capital, in accordance with Articles 297.1(a) and 300 of the Spanish Companies Law, against a contribution in kind (aumento con aportaciones no dinerarias) consisting of Liberty Virginia common stock; | |
• | An increase of capital, in accordance with Articles 297.1(a) and 300 of the Spanish Companies Law, against a contribution in kind (aumento con aportaciones no dinerarias) consisting of Liberty Virginia preferred stock; | |
• | An increase of capital, in accordance with Articles 297.1(a) and 300 of the Spanish Companies Law, against a contribution in kind (aumento con aportaciones no dinerarias) consisting of Liberty Virginia warrants; and | |
• | If Prisa conducts a rights offer to its existing shareholders, an increase of capital, in accordance with Articles 297.1(a) and 299 of the Spanish Companies Law, against a contribution of cash (aumento con aportaciones dinerarias) relating to the Prisa rights offering. |
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• | amendments to Prisa’s bylaws, including any change to Prisa’s corporate purpose, and any increase or decrease in the share capital of Prisa that is not mandated by law, among others; | |
• | any merger, consolidation or similar extraordinary transaction involving Prisa; | |
• | the winding up, liquidation or dissolution of Prisa; | |
• | elimination of shareholders’ preemptive rights to subscribe for share capital in connection with any increase in capital for cash; |
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• | change in the management structure of Prisa from a board of directors to a one- or two-person management structure (in the case Prisa were to cease to be a public company); and | |
• | the election by shareholders of any director other than those proposed by the board of directors. |
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• | International transfers of capital to or from Spain in excess of €6,000; and | |
• | Transfers of capital within Spain in excess of €80,500. |
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COMMON SHARES AND YOUR RIGHTS AS A POTENTIAL HOLDER OF
PRISA CLASS A ORDINARY SHARES OR PRISA ADSs
Liberty | Prisa | |
CORPORATE GOVERNANCE | ||
Liberty’s restated certificate of incorporation, its bylaws and Delaware law, including the DGCL, govern the rights of holders of Liberty common stock. | Prisa’s bylaws, Prisa’s rules and regulations for the general shareholders’ meeting and the Spanish Corporation Law, as amended from time to time, govern the rights of holders of Prisa Class A ordinary shares. | |
AUTHORIZED CAPITAL STOCK | ||
Authorized Shares. Liberty’s authorized capital stock currently consists of 215,062,500 shares of common stock, par value $0.0001 per share, and 1,000,000 shares of undesignated preferred stock, par value $0.0001 per share. As of the record date, there were 129,375,000 shares of common stock issued and outstanding and no shares of preferred stock issued and outstanding. | Issued Shares. As of the date of this proxy statement/prospectus, Prisa’s share capital totals €21,913,550.00, represented by a single class of 219,135,500 ordinary shares with a nominal value of €0.10 each. All of Prisa’s ordinary shares are fully paid and nonassessable. In December 2008, Prisa’s shareholders authorized the board of directors to approve an increase in capital of €10,956,775.00, or half of the then- existing share capital, which generally permits the Prisa board of directors to approve the issuance of capital stock of the company up to the authorized amount without the additional shareholder approval otherwise required by Prisa’s bylaws. This authorization is valid through December 31, 2013. | |
Prior to the completion of the business combination, Prisa will submit to its shareholders for their approval | ||
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Liberty | Prisa | |
the following additional increases to Prisa’s share capital: | ||
• An increase of capital, in accordance with Articles 297.1(a) and 300 of the Spanish Companies Law, against a contribution in kind (aumento con aportaciones no dinerarias) consisting of Liberty Virginia Common Stock; | ||
• An increase of capital, in accordance with Articles 297.1(a) and 300 of the Spanish Companies Law, against a contribution in kind (aumento con aportaciones no dinerarias) consisting of Liberty Virginia preferred stock; | ||
• An increase of capital, in accordance with Articles 297.1(a) and 300 of the Spanish Companies Law, against a contribution in kind (aumento con aportaciones no dinerarias) consisting of Liberty Virginia Warrants; and | ||
• If Prisa will conduct a rights offer to its existing shareholders, an increase of capital, in accordance with Articles 297.1(a) and 299 of the Spanish Companies Law, against a contribution of cash (aumento con aportaciones dinerarias) related to the Prisa rights offering. | ||
In addition, in connection with the increases in share capital in-kind described above, Prisa’s shareholders will vote on amendments to its bylaws providing for, among other amendments, the ability for Prisa to issue the Prisa Class B convertible non-voting shares and the reclassification of the existing Prisa ordinary shares as Prisa Class A ordinary shares. This comparison gives effect to the amendments to Prisa’s current bylaws to be effective at the time Prisa and Liberty complete the business combination. | ||
VOTING RIGHTS. ACTION BY WRITTEN CONSENT. QUORUM | ||
Quorum. The DGCL and Liberty’s bylaws require that a quorum of stockholders be present in person or by proxy for the purpose of transacting business at any meeting of Liberty stockholders. Liberty’s bylaws provide that the holders of a majority of Liberty capital stock issued and outstanding and entitled to vote must be present in person or by proxy to constitute a quorum. Accordingly, the holders of at least a majority of Liberty common stock issued and outstanding must be present in person or by proxy for the transaction of business at any meeting of Liberty stockholders. | Quorum. The published notice of a general shareholders’ meeting of Prisa may contain two proposed dates and times for the meeting, known as the initial call and the second call. The quorum thresholds differ between the first and second call, and depending on the content of the proposals submitted to the shareholders. On the initial call, quorum is generally satisfied if shareholders representing at least 25% of the subscribed share capital entitled to vote at the meeting are present or represented by proxy. On the second call, quorum is satisfied regardless of the share of Prisa’s capital present or represented. At both |
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Liberty | Prisa | |
the initial and second call, the affirmative vote of the majority of the shares entitled to vote and present or represented at the meeting is sufficient to authorize shareholder action, unless the matter being considered requires a 75% vote, as discussed in “Description of Prisa Class A Ordinary Shares—Supermajority Voting Rights.” | ||
A higher standard for quorum applies at any general shareholders’ meeting where the following issues are to be considered: the issuance of debt securities (obligaciones), the elimination of pre-emptive rights, transfer of domestic domicile to any jurisdiction outside of Spain, any increase or reduction of Prisa’s share capital, any transformation, merger, spin-off, or dissolution or any amendment to Prisa’s bylaws. At the initial call of such a meeting, quorum requires the presence (in person or by proxy) of shareholders representing 50% of Prisa’s share capital entitled to vote at the meeting, and the affirmative vote of the majority of the shares entitled to vote and present or represented at the meeting is sufficient to pass a resolution by the shareholders, unless the matter being considered requires a 75% vote, as discussed in “Description of Prisa Class A Ordinary Shares—Supermajority Voting Rights.” At the second call, quorum is satisfied by the presence of shareholders representing 25% of Prisa’s share capital entitled to vote at the meeting; however, if less than 50% of the share capital entitled to vote is represented in person or by proxy, the affirmative vote of 2/3rds of the shares entitled to vote and present or represented at the meeting is required to pass a resolution by the shareholders, unless the matter being considered requires a 75% vote, as discussed in “Description of Prisa Class A Ordinary Shares—Supermajority Voting Rights.” | ||
Voting Rights. Pursuant to the DGCL and Liberty’s restated certificate of incorporation, holders of common stock are entitled to one vote per share on all matters to be voted on by stockholders. | Voting Rights. Under Prisa’s bylaws, holders of Prisa Class A ordinary shares are entitled to one vote per share on all matters to be voted upon by shareholders. | |
Action by Written Consent. Unless the certificate of incorporation of a Delaware corporation otherwise provides, the DGCL permits the stockholders of a Delaware corporation to act by written consent in lieu of an annual or special meeting of stockholders, provided that the holders of the outstanding stock having not less than the minimum number of votes that would be necessary to authorize such action at a meeting at which all shares entitled to vote thereon were present in person and voted. Liberty’s restated | Action by Written Consent. Spanish Companies Law does not permit actions reserved for approval at a shareholders meeting to be taken by the shareholders without a meeting. |
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Liberty | Prisa | |
certificate of incorporation prohibits its stockholders from acting by written consent in lieu of a meeting of stockholders from and after the consummation of its IPO. | ||
AMENDMENT TO THE CERTIFICATE OF INCORPORATION | ||
Generally, under the DGCL, an amendment or amendment and restatement of Liberty’s restated certificate of incorporation requires (i) the board of directors to adopt a resolution setting forth the proposed amendment and declaring its advisability and (ii) the holders of at least a majority of Liberty’s common stock outstanding and entitled to vote thereon to adopt such amendment. | Pursuant to the Spanish Companies Law, Prisa’s bylaws reflect the portions of Prisa’s articles of incorporation that are operative subsequent to incorporation. Under the Spanish Companies Law, once a certificate of incorporation is filed, it is generally not amended. Any amendment concerning the organization and/or operation of Prisa is effected by amending its bylaws. See the discussion, below in “—Amendment to the Bylaws.” | |
Liberty’s restated certificate of incorporation further requires the affirmative vote of at least 80% of the voting power of the then outstanding shares of Liberty capital stock entitled to vote generally (currently, solely Liberty’s common stock), voting together as a single class, to amend Paragraph F of Article SEVENTH, which prohibits Liberty’s stockholders from acting by written consent in lieu of a meeting of stockholders from and after the consummation of Liberty’s initial public offering. | ||
In addition, Liberty’s restated certificate of incorporation requires the affirmative vote of at least 80% of the voting power of the then outstanding shares of Liberty capital stock entitled to vote generally (currently, solely Liberty’s common stock), voting together as a single class, to amend the following provisions during the period from the effectiveness of the registration statement in Liberty’s initial public offering until the first to occur of a “business combination” as defined in Liberty’s restated certificate of incorporation or Liberty’s “termination date” as defined in Liberty’s restated certificate of incorporation: | ||
• Paragraph B of Article FOURTH of Liberty’s restated certificate of incorporation, which provides the holders of shares of Liberty’s common stock the right to exercise such holders’ option to cause Liberty to redeem all of such holders’ shares in the event that a “business combination” as defined in Liberty’s restated certificate of incorporation is approved in the manner required by Article FIFTH of Liberty’s restated certificate of incorporation and is consummated, provided such holder voted against such “business combination” and has taken certain |
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additional actions described in Paragraph B of Article FOURTH; and | ||
• Article FIFTH of Liberty’s restated certificate of incorporation, which governs the management of the business and the conduct of the affairs of | ||
Liberty, and creates, defines, limits and regulates the powers of Liberty, its directors and its stockholders from the filing of Liberty’s restated certificate of incorporation until the consummation of a “business combination” as defined in Liberty’s restated certificate of incorporation, and contains many of Liberty’s blank check company provisions. | ||
AMENDMENT TO THE BYLAWS | ||
As permitted by the DGCL, Liberty’s restated certificate of incorporation authorizes the Liberty board to make, alter and repeal the Liberty bylaws, subject to the power of the Liberty stockholders to alter or repeal any bylaw whether adopted by them or otherwise. Liberty’s stockholders therefore also have the power to adopt, amend or repeal Liberty’s bylaws. | Under the Spanish Companies Law, Prisa’s shareholders have the power to amend any provision of a company’s bylaws. The board of directors of a Spanish company is not authorized to amend the company’s bylaws (except for minor amendments, such as the change of the corporate domicile within the same municipality). See “—Voting Rights. Action by Written Consent. Quorum,” for a discussion of the standard for establishing a quorum at a meeting where a vote will be held to amend the bylaws. | |
Upon completion of the business combination, Prisa’s bylaws will require the affirmative vote of at least 75% of the total voting power of Prisa’s issued shares, present or represented at a shareholders meeting, to approve any amendments to Prisa’s bylaws. | ||
Any bylaw amendment that imposes or purports to impose a new affirmative undertaking on the part of shareholders will not apply to any shareholder that did not vote for or otherwise consent to the amendment. | ||
A bylaw amendment that directly or indirectly negatively affects the rights of a class of shares (including a class of non-voting shares) requires the affirmative vote of holders of a majority of the shares of the affected class. | ||
Upon the approval of any replacement of Prisa’s stated corporate purpose, any change of Prisa’s legal domicile to a location outside Spain or an international merger resulting in such a change of domicile, any shareholder that has voted against the applicable proposal has the right to cause Prisa to redeem his or her shares. | ||
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Liberty | Prisa | |
RIGHT TO DIVIDENDS AND TRUST ACCOUNT DISTRIBUTIONS | ||
Dividends. The DGCL permits a Delaware corporation, by action of its board of directors, subject to any restrictions contained in the corporation’s certificate of incorporation, to declare and pay dividends out of “surplus” or, if there is no “surplus,” out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. The DGCL defines “surplus” as the excess of the net assets of the corporation over the amount determined to be the capital of the corporation by the board of directors. The “capital” of the corporation is typically calculated to be (and cannot be less than) the aggregate par value of all issued shares of capital stock. “Net assets” means, under the DGCL, total assets minus total liabilities. The DGCL also provides that if the capital of a Delaware corporation shall have been diminished by depreciation in the value of its property, or by losses, or otherwise, to an amount less than the aggregate amount of capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets, the directors of such corporation shall not declare and pay out of net profits any dividends upon any shares of any classes of its capital stock until the deficiency in the amount of capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets shall have been repaired. | Under the Spanish Companies Law, shareholders at the general shareholders’ meeting approve the general accounts of the company and the allocation of profits or losses in accordance with these accounts. Once all payments and allocations for reserves or other accounts required by the bylaws and applicable law have been made, general dividends may be paid from the profits of the company for the fiscal year in respect of which the dividend is made or against appropriate reserves, but only to the extent of the excess of the book value of the company’s net assets over the total share capital. Before any dividends may be paid out of the company’s profits, profits must be allocated to offset any accumulated losses from prior fiscal years to the extent such losses had the effect of reducing the book value of net assets below the total share capital. Following the issuance of the Prisa Class B convertible non- voting shares, if approved, any dividends paid to the Prisa Class A ordinary shares will be subordinated to the rights of the holders of the Prisa Class B convertible non-voting shares to receive a per annum dividend of €0.175. | |
The Liberty bylaws provide that dividends upon the capital stock of Liberty may be declared by the board of directors at any regular or special meeting, subject to the provisions of Liberty’s restated certificate of incorporation. Liberty’s restated certificate of incorporation contains no limitation on the declaration and payment of dividends. Liberty’s bylaws provide that dividends may be paid in cash, in property, or in shares of the capital stock, subject to the provisions of the certificate of incorporation. | ||
Trust Account. Pursuant to Liberty’s restated certificate of incorporation and the trust agreement between Liberty and Continental Stock Transfer and Trust Company, the holders of shares of Liberty common stock are entitled to receive distributions from the trust account established in connection with Liberty’s IPO only in the event of a dissolution of Liberty and a liquidation of the trust account in accordance with the terms of such trust agreement, or in the event such stockholder exercises its redemption rights through the procedure described in this proxy |
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Liberty | Prisa | |
statement/prospectus. In no other circumstances will any stockholder have any right or interest of any kind in or to the trust account. Each of Liberty’s founders has waived his or its right to receive liquidating distributions from the trust account with request to his or its founders’ shares. | ||
REDEMPTION RIGHTS | ||
Pursuant to Liberty’s restated certificate of incorporation, at any time after Liberty mails a proxy statement to its stockholders in connection with seeking their approval of a proposed business combination, and no later than immediately prior to such stockholder vote, each holder of shares of Liberty common stock who votes against such business combination and validly elects to exercise such stockholder’s redemption rights will have the right, if such business combination is approved and consummated to cause the redemption of all (but not less than all) of such holder’s shares of common stock in exchange for payment of a cash amount per share (calculated two business days prior to the proposed completion of such business combination) equal to the quotient determined by dividing(i) the aggregate amount then on deposit in the trust account established by Liberty in connection with the IPO (including deferred underwriting discounts and commissions incurred in connection with the IPO being held in the trust account and including interest income earned on the trust account, net of income taxes previously paid on such interest income and net of interest income previously released to Liberty to fund its working capital and general corporate requirements) by (ii) the total number of shares of common stock issued in the IPO. Payment of the amounts necessary to satisfy the redemption rights of the holders of all shares who have duly exercised such rights shall be made as promptly as practicable following the completion of the business combination. Each of Liberty’s founders has waived his or its right to cause the redemption of his or its founders’ shares. | In addition to the redemption rights referenced above, in “—Amendment to the Bylaws,” the Structural Modifications in Spanish Companies Law provides that any shareholder that votes against a cross-border merger in which the surviving company would be domiciled in any jurisdiction other than Spain, or votes against any proposal to change the domicile of Prisa to any jurisdiction other than Spain, has the right to require Prisa to redeem its shares in connection with such merger or change in domicile for a price prescribed by law based on then- prevailing market prices. | |
APPRAISAL RIGHTS | ||
The DGCL provides that the stockholders of a Delaware corporation involved in a merger, other than the merger of a wholly owned subsidiary of the corporation with and into the corporation or a holding company merger pursuant to Section 251(g) of the DGCL, and other than a merger involving a corporation that is listed on a national securities exchange or held of record by more than 2,000 | Not applicable. |
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Liberty | Prisa | |
stockholders, whose stockholders receive in such merger (i) shares of the resulting or surviving corporation or depository receipts in respect thereof, (ii) shares of any other corporation or depository receipts in respect thereof, which shares or depository receipts are listed on a national securities exchange or held of record by more than 2,000 stockholders, (iii) cash in lieu of fractional shares or (iv) a combination of shares of stock, depository receipts and cash described in clauses(i) through (iii), have the right to seek a judicial determination of the fair value of their shares, taking in all relevant factors, but exclusive of any element of value arising from the accomplishment or expectation of such merger, together with interest, if any, to be paid on the amount determined to be fair value. A stockholder seeking to exercise its rights to a judicial determine of the fair value of its shares in such a merger must follow the procedures set forth in Section 262 of the DGCL. | ||
PREEMPTIVE RIGHTS | ||
Under the DGCL, “preemptive” rights to subscribe to an additional issue of capital stock or to any security convertible into such capital stock must be expressly granted by the certificate of incorporation to a stockholder. Liberty’s restated certificate of incorporation does not expressly grant any of its stockholders “preemptive” rights. | Each holder of Prisa Class A ordinary shares is entitled to new preemptive rights in proportion to its shareholding with respect to each new issuance of (i) Prisa Class A ordinary shares pursuant to an increase in capital for cash (aumento con aportaciones dinerarias) and (ii) convertible debt. However, preemptive rights of shareholders may be excluded under certain circumstances by specific approval at the general shareholders’ meeting (or upon board action pursuant to authorization from the general shareholders’ meeting) and preemptive rights are deemed excluded by operation of law in respect of certain issuances. | |
ATTENDANCE AND VOTING AT MEETINGS OF STOCKHOLDERS | ||
Every stockholder of record as of the applicable record date has the right to notice of and to vote, in person or by proxy, at any stockholders’ meeting. | Any record shareholder that owns a minimum of 60 shares of Prisa capital stock, irrespective of class, on the date that is five days prior to the date of a shareholder meeting, and that has obtained the corresponding attendance card, may attend a general shareholders’ meeting, in person or by proxy. |
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Liberty | Prisa | |
SPECIAL MEETINGS OF STOCKHOLDERS | ||
Liberty’s bylaws provide that special meetings of Liberty stockholders may be called only in the following ways: | An extraordinary general shareholders’ meeting may be held at the direction of Prisa’s board of directors or at the written request of shareholders holding at least 5% of Prisa’s share capital, which request must state the matters to be considered at the meeting. If the shareholders properly request a meeting, Prisa must hold the meeting within one month after the requesting shareholder(s) has submitted a notarized request for the meeting to Prisa’s board of directors. | |
STOCKHOLDER PROPOSALS AND NOMINATIONS | ||
Liberty’s bylaws provide that business may be transacted at an annual meeting of stockholders only if such business is (i) specified in the notice of the special meeting given by or at the direction of the board of directors or a committee of the board of directors, (ii) otherwise brought before the annual meeting by or at the direction of the board of directors or a committee of the board of directors, or (iii) brought before the meeting by a Liberty stockholder who is a stockholder of record on the date of the giving of notice of the annual meeting to Liberty stockholders and on the record date for the determination of Liberty stockholders entitled to vote at such annual meeting and who complies with the procedures described below. Liberty’s bylaws provide that a stockholder submitting proposed business to be considered at an annual meeting of Liberty’s stockholders must deliver a written notice to Liberty’s secretary no later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year’s annual meeting of stockholders. The notice must set forth as to each matter such stockholder proposes to bring before the annual meeting: | Prisa’s bylaws provide that shareholders holding at least 5% of Prisa’s share capital may submit a proposal, including for the nomination of directors, for a vote by the shareholders, as long as the proposal is received by Prisa at its registered offices within 5 days of the initial publication of the notice of the meeting. Prisa must then provide notice of the proposal to the shareholders at least 15 days prior to the meeting. | |
• the name and record address of such stockholder; | ||
• the class or series and number of shares of capital stock of Liberty which such stockholder owns, beneficially or of record; |
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Liberty | Prisa | |
• a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by the proposing stockholder and any material interest of such stockholder in such business; and | ||
• a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting. | ||
Liberty’s bylaws provide that persons may be nominated for election as directors of Liberty at an annual meeting of stockholders or a special meeting of stockholders called for the purpose of electing directors only (i) by or at the direction of the board of directors or any committee of the board of directors or (ii) by a Liberty stockholder who is a stockholder of record on the date of the giving of notice of the meeting to Liberty stockholders and on the record date for the determination of Liberty stockholders entitled to vote at such meeting and who complies with the procedures described below. Liberty’s bylaws provide that a stockholder making a nomination of a person for election to the board of directors at an annual meeting of stockholders or a special meeting of stockholders called for the purpose of elected directors must deliver written notice to Liberty’s secretary no later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year’s annual meeting of stockholders, in the case of an annual meeting of stockholders, and not later than the 10th day following the day on which notice of the date of the special meeting of stockholders was mailed or public disclosure of the date of special meeting of stockholders was made, whichever occurs first, in the case of a special meeting of stockholders called for the purpose of electing directors. In addition, any stockholder desiring to nominate any person for election as director must deliver a notice that sets forth(a) as to each person whom the stockholder proposes to nominate for election as a director: | ||
• the name, age, business address and residence address of the person; | ||
• the person’s principal occupation or employment; | ||
• the class or series and number of shares of capital stock of Liberty which such the person owns beneficially or of record; and |
314
Liberty | Prisa | |
• any other information relating to the person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder; | ||
and (b) as to the stockholder giving notice of the proposed nomination of a director: | ||
• the name and record address of the stockholder; | ||
• the class or series and number of shares of Liberty’s capital stock which are beneficially owned or owned of record by the stockholder; | ||
• a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder; | ||
• a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice; and | ||
• any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder. | ||
The stockholder’s notice must be accompanied by a written consent of each proposed nominee to being named as a nominee and to serve as a director if elected. | ||
STOCKHOLDER SUITS | ||
Under Delaware law, stockholders may bring derivative actions on behalf of the corporation to enforce certain rights of the corporation. Prior to bringing an action, a stockholder plaintiff must make a demand on the directors of the corporation to assert the claim, and may only bring an action if the stockholder’s demand is wrongfully refused, unless the stockholder plaintiff is able to show, and alleges in the complaint, that making such a demand would be futile. In order to maintain a derivative suit, a person must have been a stockholder at the time of the transaction that is the subject of the suit and must also generally maintain its status as a stockholder throughout the duration of the suit. | Under the Spanish Companies Law, a resolution adopted by a corporation may be challenged by its shareholders (acción de impugnación de acuerdos sociales). Under the Spanish Companies Law, a company is entitled to bring an action for liability (acción social de responsabilidad) against its directors following a resolution passed at the company’s general shareholders’ meeting. Such a resolution may be presented and voted on at any general shareholders’ meeting even if it is not on the agenda for the meeting. |
315
Liberty | Prisa | |
In certain circumstances, class action lawsuits are available to stockholders. | Under the Spanish Companies Law, however, shareholders representing at least 5% of the share capital of the company may also jointly initiate such action in any of the following circumstances: | |
• if the company has not called a general shareholders’ meeting to vote on such action following a request of shareholders representing at least 5% of the share capital of the company; | ||
• if the company has not received, within one month of the action, the approval of the shareholders at a shareholders meeting to initiate the action for liability; or | ||
• the general shareholders’ meeting has passed a resolution prohibiting the corporate action for liability. | ||
The corporate action for liability can only be directed towards remedying or restoring the damage caused by the director(s) to the company and not towards compensating individual damages that might have been caused to shareholders. | ||
Under Spanish law, class action suits are not available for shareholders’ claims. Under the Spanish Companies Law, each shareholder whose interests have been directly harmed by the acts or resolutions passed by the directors may only initiate individual proceedings against the directors seeking remedy or compensation for such direct individual damages (acción individual de responsabilidad). | ||
316
Liberty | Prisa | |
RIGHTS OF INSPECTION | ||
Under the DGCL, stockholders have the right to inspect during normal business hours the corporation’s stock ledger, a list of the corporation’s stockholders, and other books and records of the corporation, after making a written demand complying with the form and manner requirements of Section 220 of the DGCL for a proper purpose reasonably related to the person’s interest as a stockholder. | Under Spanish law, a shareholder has the right to: | |
• inspect the reports and information that the board of directors of the company must prepare prior to taking certain corporate actions (such as the merger or de-merger of the company, or share capital increases). | ||
Apart from the general information right described above, the shareholders of a Spanish public company may not inspect the company’s documents, contracts, books or information. | ||
Notwithstanding the above, Prisa’s bylaws give its shareholders the right to inspect the attendance list of the general shareholders’ meeting during the meeting. | ||
BOARD OF DIRECTORS | ||
Size and Classification of Board of Directors | ||
Liberty’s bylaws provide that the number of directors of Liberty shall be not less than one nor more than nine, the exact number of which shall be fixed from time to time by Liberty’s board of directors. There | Subsequent to the adoption by the Prisa shareholders of the proposed amendment to Prisa’s bylaws, Prisa’s board of directors will consist of a minimum of three and a maximum of 19 members. Prisa’s shareholders may determine the number and may vote to appoint | |
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Liberty | Prisa | |
are currently five board members of the Liberty board of directors. | members to fill any vacancies or newly created seats. The shareholders may, by a resolution adopted at a general shareholders’ meeting, establish the number of directors either by express resolution or indirectly, by filling or choosing not to fill vacancies caused either by the expiration of an existing director’s term of office or by the creation of a new seat, within the bounds of the minimum and maximum numbers set forth in the bylaws. | |
Under the Spanish Companies Law, directors may also be appointed as “proprietary directors” by significant shareholders who satisfy specified ownership and procedural requirements. | ||
Election | ||
Liberty’s bylaws provide that a plurality of votes cast at a stockholders meeting on the election of directors shall suffice to elect directors. Each director so elected shall hold office until the next annual meeting of stockholders or until such director’s earlier resignation, removal from office, death or incapacity. | Prisa’s bylaws provide that directors are elected by the shareholders at any annual or any extraordinary general meeting. All directors are elected for a term of five years and are eligible for re-election for terms of equal duration. Board members hold office until the expiration of their term, or the earlier of their resignation, removal from office by the shareholders, or their death or incapacity. | |
Removal | ||
The DGCL and Liberty’s bylaws provide that the Liberty stockholders, acting by the majority vote of the holders of the outstanding shares then entitled to vote at an election of directors, may remove the entire board of directors or any individual director from office with or without cause. | Under Spanish law, shareholders may remove a director with or without cause at any time by passing a resolution to that effect at a general shareholders’ meeting. | |
Vacancies | ||
Liberty’s bylaws provide that a majority of the directors then in office, although less than a quorum, or a sole remaining director, may act to fill vacancies and newly created directorships resulting from any increase in the authorized number of directors or from any other cause. Each director so chosen shall hold office until the next annual meeting and until such director’s successor shall be duly elected and shall qualify, or until such director’s earlier resignation, removal from office, death or incapacity. | Prisa’s bylaws and the Spanish Companies Law provide that a majority of the directors then in office, provided that quorum exists, may act to fill vacancies with a person who is a Prisa shareholder. Each director so chosen shall hold office for the remainder of the term so filled, subject to ratification of the director’s appointment at the first shareholders meeting following such appointment. | |
Director Liability and Indemnification | ||
As permitted by the DGCL, Liberty’s restated certificate of incorporation provides that a director of Liberty shall not be personally liable to Liberty or its stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent such | Under the Spanish Companies Law, directors are liable to Prisa, its shareholders and any corporate creditor for any damage caused by any act or omission in violation of applicable law, in violation of Prisa’s bylaws or that resulted from action taken in | |
318
Liberty | Prisa | |
exemption from liability or limitation thereof is not permitted by the DGCL as the same exists or may hereafter be amended. Liberty’s restated certificate of incorporation provides that any amendment, repeal or modification of this provision by the stockholders of Liberty or otherwise shall not adversely affect any right or protection of a director of Liberty with respect to any act or omission occurring prior to the time of such amendment, repeal or modification. | breach of the directors’ duties of office. In the case of such liability, a member of the board of directors is jointly and severally liable whether or not he or she was the principal actor responsible for the damaging action or omission, unless an individual director can prove that (i) he or she did not participate in any discussion or debate of the action or did not know of the action, or (ii) if the director knew of it, that he or she took (a) all possible steps to avoid the damage or (b) expressly opposed and voted against the action and did not participate, following such vote, in implementing the action. | |
ANTI-TAKEOVER PROVISIONS | ||
Business Combinations | ||
Liberty is governed by the provisions of Section 203 of the DGCL, which generally has an anti-takeover effect for transactions not approved in advance by its | Under the Spanish Takeover Law, during the period that a general tender offer has been announced, the governing and management bodies of the target and |
319
Liberty | Prisa | |
board of directors. This may discourage takeover attempts that might result in payment of a premium over the market price for the shares of common stock held by stockholders. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the time that such stockholder becomes an interested stockholder, unless certain conditions are met as described below. A “business combination” includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within three years prior to the determination of interested stockholder status, 15% or more of the corporation’s voting stock. | those of its subsidiaries must obtain prior authorization from the shareholders at a general shareholders’ meeting before taking any action, other than seeking alternative bids, which may result in the frustration of the bid and in particular before the issuance any shares which may prevent the offeror from acquiring control of the target company. As regards decisions taken before the beginning of the period referred to in the preceding paragraph and not yet partly or fully implemented, the general shareholders’ meeting must approve or confirm any decision which does not form part of the normal course of the company’s business and whose implementation may result in the frustration of the bid. | |
Under Section 203 of the DGCL, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions: | ||
• the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder before the stockholder became an interested stockholder; | ||
• upon consummation of the business combination which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are both directors and officers, and employee stock plans (in certain instances); or | ||
• at or after the time the stockholder became an interested stockholder: (1) the board of directors of the corporation approved the business combination and (2) the stockholders, at an annual or special meeting (and not by written consent), approved the business combination by an affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder. | ||
Mandatory Tender Offer | ||
Not Applicable. | Under the Spanish Takeover Law, any person attaining control of a company listed on a Spanish stock exchange (with control for this purpose being 30% of the total voting rights of the company’s | |
320
Liberty | Prisa | |
securities) through any of the means listed below, must make a mandatory tender offer, at an equitable price, for all outstanding shares of the company and all other securities of the company having the right, directly or indirectly, to subscribe for or acquire shares. | ||
The means of attaining control that trigger a mandatory tender offer are (i) acquisitions of shares or other securities that have the right, directly or indirectly, to subscribe for or acquire voting shares in the company, and (ii) an agreement with other shareholders that causes them to be deemed to be acting in concert with respect to the acquisition of control. The mandatory tender offer requirement, as described above, is also triggered by the acquisition of less than 30% of the voting shares in the company if, within 24 months immediately prior to such acquisition, the acquiring party or group has caused the appointment of more than half of the target company’s board of directors. | ||
Under Spanish law, following a tender offer for the shares of a listed company that has been accepted by holders of 90% or more of the voting rights pertaining to the total shares to which the offer was addressed, if the offeror holds 90% or more of the voting capital of the target company, the holders of the outstanding ordinary shares may require the offeror to purchase all such outstanding shares, and the offeror may require all such holders to sell their shares to the offeror, at a regulated price set forth by Spanish law. | ||
321
Liberty | Prisa | |
DUTIES OF DIRECTORS | ||
Under Delaware law, the business and affairs of a Delaware corporation such as Liberty are managed by or under the direction of a board of directors. In managing the business and affairs of the corporation, the directors owe fiduciary duties, including the duties of care and loyalty (including good faith), to the corporation and its stockholders, and in certain circumstances, to the corporation’s creditors. The duty of care essentially requires directors to be attentive and inform themselves of all material facts regarding a decision before taking action. The duty of loyalty generally requires that the directors’ actions be motivated solely by the best interests of the corporation and its stockholders. In addition, under certain circumstances, directors owe a duty of full and fair disclosure. | Under Spanish law, the board of directors of a company is responsible for the management and representation of the company, although certain matters are reserved to the shareholders acting at a general shareholders’ meeting. In accordance with Prisa’s internal rules, the board of directors has a general duty of supervision. | |
The DGCL provides that no contract or transaction between a Delaware corporation and one or more of its directors, or between the corporation and any other corporation, partnership, association or other organization in which one or more of its directors are directors or officers or have a financial interest are void or voidable solely for this reason, or solely because such director is present at or participates in the meeting of the board of directors which authorizes the contract or transaction, or solely because any such director’s votes are counted for such purpose if: (i) the material facts as to the director’s relationship or interest and as to the contract or transaction are disclosed to or are known to the board of directors or a committee of the board of directors and the board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though less than a quorum; (ii) the material facts as to the director’s relationship or interest and as to the contract or transaction are disclosed to or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by a vote of the stockholders; or (iii) the contract or transaction is fair as to the corporation at the time it is authorized by the board of directors, a committee of the board of directors or the stockholders. |
322
Liberty | Prisa | |
In addition to duties prescribed by law, a director must comply with the company’s bylaws and its regulations for the general shareholders’ meeting and the board of directors. These duties include the following: | ||
• to act diligently in his or her management of the company. In particular, the Spanish Companies Law establishes that he or she must carry out his or her duties with the diligence of an “orderly entrepreneur (ordenado empresario) and a faithful representative (representante leal)” and must diligently inform himself or herself of the company’s business development; | ||
• to act in the company’s best interests; | ||
• to comply with duties of loyalty: (i) the directors shall not use the name of Prisa or invoke their capacity as directors in order to carry out transactions for their own account or for the account of persons related to them; (ii) no director may make, either for his own benefit or for the benefit of any persons related to him, investments or transactions of any kind related to the assets of Prisa which have come to the director’s attention during the performance of his duties as such, when the investment or transaction has been offered to Prisa or Prisa is interested in it, unless Prisa has turned down such an investment or transaction and the director has not influenced Prisa’s decision; (iii) the directors must notify the Prisa board of directors of any direct or indirect conflict of interests which they have with the interests of Prisa. If the conflict arises from a transaction with Prisa, the director shall be prohibited from conducting such a transaction unless the Prisa board of directors, following a report from the appointments and remuneration committee, approves the transaction. In the event of conflict, the director involved shall not participate in the deliberations and decisions in respect of the transaction in which the conflict arises; (iv) the directors must notify the Prisa board of directors, as soon as possible, of those circumstances affecting them which might prejudice the credit or reputation of Prisa, and particularly the criminal cases with which they may be charged; and (v) the directors must disclose any interest that they hold in the capital of a company engaged in a line of business which is the same as or analogous or complementary to the business of Prisa, as well as any offices held or duties performed therein and the conduct, for the |
323
Liberty | Prisa | |
director’s own account or for the account of another, of any kind of business that is the same as, analogous or complementary to the business that the corporate purpose of Prisa consists of; | ||
• to refrain from disclosing confidential information, even after his or her retirement or removal as director, subject to certain exceptions; and | ||
• not to conduct, or suggest to any person that they conduct, transactions involving securities of Prisa or any of its subsidiaries, affiliated or related companies in connection with which the directors have, by reason of their position, privileged or confidential information, so long as such information is not within the public domain. |
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325
326
• | Prisa requests that the rights not be distributed to holders of ADSs; | |
• | Prisa does not timely request that the rights be distributed to holders of ADSs; | |
• | Prisa fails to deliver satisfactory documents to the depositary bank; or | |
• | it is not reasonably practicable to distribute the rights. |
327
• | Prisa requests that the property not be distributed to holders of ADSs; | |
• | Prisa does not timely request that the property be distributed to holders of ADSs; | |
• | Prisa does not deliver satisfactory documents to the depositary bank; or | |
• | the depositary bank determines that all or a portion of the distribution to holders of ADSs is not reasonably practicable. |
328
• | The new underlying shares being deposited are duly authorized, validly issued, fully paid, non-assessable and legally obtained. | |
• | All preemptive (and similar) rights, if any, with respect to such underlying shares have been validly waived or exercised. | |
• | The depositor is duly authorized to deposit the new underlying shares. | |
• | The new underlying shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and are not, and the ADSs issuable upon such deposit will not be, “restricted securities” (as defined in the deposit agreements). | |
• | The new underlying shares presented for deposit have not been stripped of any rights or entitlements. |
• | ensure that the surrendered ADR certificate is properly endorsed or otherwise in proper form for transfer; | |
• | provide such proof of identity and genuineness of signatures as the depositary bank deems appropriate; | |
• | provide any transfer stamps required by the State of New York or the United States; and | |
• | pay all applicable fees, charges, expenses, taxes and other government charges payable by ADR holders pursuant to the terms of the applicable deposit agreement, upon the transfer of ADRs. |
329
• | Temporary delays that may arise because (i) the transfer books for the underlying shares or ADSs are closed, or (ii) underlying shares are immobilized on account of a shareholders’ meeting or a payment of dividends. | |
• | Restrictions imposed due to an outstanding obligation on the part of a holder of ADSs, to pay fees, taxes and similar charges. | |
• | Restrictions imposed because of laws or regulations applicable to ADSs or the withdrawal of securities on deposit. |
330
Service | Fees | |
• Issuance of ADSs (including issuances of ADS-As in connection with a conversion of Prisa Class B convertible non-voting shares) | Up to U.S. 5¢ per ADS issued | |
• Cancellation of ADSs (including cancellations of ADS-NVs in connection with a conversion of the underlying Prisa Class B convertible non-voting shares) | Up to U.S. 5¢ per ADS canceled | |
• Distribution of cash dividends or other cash distributions | Up to U.S. 5¢ per ADS held | |
• Distribution of ADSs pursuant to stock dividends, free stock distributions or exercise of rights. | Up to U.S. 5¢ per ADS held | |
• Distribution of securities other than ADSs or rights to purchase additional ADSs | Up to U.S. 5¢ per ADS held | |
• Depositary Services | Up to U.S. 5¢ per ADS held on the applicable record date(s) established by the depositary |
• | Fees for the transfer and registration of underlying shares charged by the registrar and transfer agent for the underlying shares in Spain (e.g., upon deposit and withdrawal of the underlying shares). | |
• | Expenses incurred for converting foreign currency into U.S. dollars. | |
• | Expenses for cable, telex and fax transmissions and for delivery of securities. | |
• | Taxes and duties upon the transfer of securities (e.g., when underlying shares are deposited or withdrawn from deposit). | |
• | Fees and expenses incurred in connection with the delivery or servicing of underlying shares on deposit. |
331
• | Prisa and the depositary bank are obligated only to take the actions specifically stated in the deposit agreements without negligence or bad faith. | |
• | The depositary bank disclaims any liability for any failure to carry out voting instructions, for any manner in which a vote is cast or for the effect of any vote, provided it acts in good faith and in accordance with the terms of the deposit agreements. |
332
• | The depositary bank disclaims any liability for any failure to determine the lawfulness or practicality of any action, for the content of any document forwarded to you on Prisa’s behalf or for the accuracy of any translation of such a document, for the investment risks associated with investing in underlying shares, for the validity or worth of the underlying shares, for any tax consequences that result from the ownership of ADSs, for the credit-worthiness of any third party, for allowing any rights to lapse under the terms of the applicable deposit agreement, for the timeliness of any of Prisa’s notices or for its failure to give notice. | |
• | Prisa and the depositary bank will not be obligated to perform any act that is inconsistent with the terms of the deposit agreements. | |
• | Prisa and the depositary bank disclaim any liability if Prisa or the depositary bank are prevented or forbidden from or subject to any civil or criminal penalty or restraint on account of, or delayed in, doing or performing any act or thing required by the terms of the deposit agreements, by reason of any provision, present or future of any law or regulation, or by reason of present or future provision of any provision of Prisa’s bylaws, or any provision of or governing the securities on deposit, or by reason of any act of God or war or other circumstances beyond Prisa’s or the depositary bank’s control. | |
• | Prisa and the depositary bank disclaim any liability by reason of any exercise of, or failure to exercise, any discretion provided for the deposit agreements or in Prisa’s bylaws or in any provisions of or governing the securities on deposit. | |
• | Prisa and the depositary bank further disclaim any liability for any action or inaction in reliance on the advice or information received from legal counsel, accountants, any person presenting shares for deposit, any holder of ADSs or authorized representatives thereof, or any other person believed by either of Prisa or the depositary bank in good faith to be competent to give such advice or information. | |
• | Prisa and the depositary bank also disclaim liability for the inability by a holder to benefit from any distribution, offering, right or other benefit that is made available to holders of underlying shares but is not, under the terms of the deposit agreements, made available to holders of ADSs. | |
• | Prisa and the depositary bank may rely without any liability upon any written notice, request or other document believed to be genuine and to have been signed or presented by the proper parties. | |
• | Prisa and the depositary bank also disclaim liability for any consequential or punitive damages for any breach of the terms of the deposit agreements. |
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• | Convert the foreign currency to the extent practical and lawful and distribute the U.S. dollars to the holders of ADSs for whom the conversion and distribution is lawful and practical. | |
• | Distribute the foreign currency to holders of ADSs for whom the distribution is lawful and practical. | |
• | Hold the foreign currency (without liability for interest) for the applicable holders. |
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• | 219,135,500 Prisa ordinary shares currently issued and outstanding; | |
• | 129,375,000 shares of Liberty common stock currently issued and outstanding; | |
• | the issuance of approximately 225 million Prisa Class A ordinary shares and approximately 403 million Prisa Class B convertible non-voting shares in the business combination (including Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares issued in the warrant exchange); | |
• | 443,991,020 Prisa Class A ordinary shares and 402,987,000 Prisa Class B convertible non-voting shares (convertible into 402,987,000 Prisa Class A ordinary shares) estimated to be outstanding immediately following the consummation of the business combination; | |
• | 846,978,020 Prisa Class A ordinary shares estimated to be outstanding upon the conversion of all Prisa Class B convertible non-voting shares; | |
• | no redemption of shares by Liberty stockholders, no cash elections by Liberty stockholders, the completion of the Prisa warrant issuance described elsewhere in this prospectus/proxy statement and no requirement from the CNMV that Prisa conduct a rights offering; | |
• | the sale of 24,771,900 Liberty warrants and 3,296,000 shares of Liberty common stock to Liberty pursuant to the sponsor surrender agreement in connection with the business combination; and | |
• | for purposes of calculating beneficial ownership on a fully diluted basis, the conversion of all shares of Prisa Class B convertible non-voting shares into Prisa Class A ordinary shares on a1-for-1 basis. |
• | each person who, to Prisa’s knowledge, is the beneficial owner of more than 5% of the outstanding ordinary shares of Prisa; | |
• | each of its present directors; | |
• | each of its current executive officers; and | |
• | all of the current directors and executive officers as a group. The table presents pro forma ownership information as of immediately after the completion of the business combination and upon full conversion of Prisa Class B convertible non-voting shares into Prisa Class A ordinary shares. |
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% of Prisa | ||||||||||||||||||||||||
% of Prisa | Class A | |||||||||||||||||||||||
Class A | Ordinary | |||||||||||||||||||||||
Ordinary | Shares | |||||||||||||||||||||||
Shares | Beneficially | |||||||||||||||||||||||
% of Prisa | Beneficially | Owned | ||||||||||||||||||||||
Number | Class A | Owned | on Full | |||||||||||||||||||||
of Prisa | % of Prisa | % of Prisa | Ordinary | on Full | Conversion | |||||||||||||||||||
Ordinary | Ordinary | Class A | Shares | Conversion | of Prisa | |||||||||||||||||||
Shares | Shares | Ordinary | Beneficially | of Prisa | Class B | |||||||||||||||||||
Beneficially | Beneficially | Shares | Owned | Class B | Shares | |||||||||||||||||||
Owned | Owned | Beneficially | After | Shares and | and Full | |||||||||||||||||||
Prior | Prior | Owned | Exercise of | Exercise | Exercise | |||||||||||||||||||
to the | to the | After the | Holder’s | of Holder’s | of All | |||||||||||||||||||
Business | Business | Business | Prisa | Prisa | Prisa | |||||||||||||||||||
Combination | Combination | Combination | Warrants | Warrants | Warrants | |||||||||||||||||||
Beneficial owner | ||||||||||||||||||||||||
Directors(1) | ||||||||||||||||||||||||
Ignacio Polanco Moreno(2)(3) | 155,661,747 | 71.03 | % | 35.1 | % | 53.1 | % | 32.1 | % | 30.0 | % | |||||||||||||
Manuel Polanco Moreno(2)(3) | 155,562,823 | 70.99 | % | 35.0 | % | 53.1 | % | 32.1 | % | 30.0 | % | |||||||||||||
Juan Luis Cebrián Echarri(4) | 1,259,305 | * | * | * | * | * | ||||||||||||||||||
Matías Cortés Domínguez(4) | 75 | * | * | * | * | * | ||||||||||||||||||
Diego Hidalgo Schnur(4) | 150 | * | * | * | * | * | ||||||||||||||||||
Gregorio Marañón Bertrán De Lis(4) | 118,300 | * | * | * | * | * | ||||||||||||||||||
Alfonso López Casas(4) | 40,334 | * | * | * | * | * | ||||||||||||||||||
Emiliano Martinez Rodriguez(4) | 41,781 | * | * | * | * | * | ||||||||||||||||||
Ramón Mendoza Solano(4) | 120 | * | * | * | * | * | ||||||||||||||||||
Agnès Noguera Borel(4) | 600 | * | * | * | * | * | ||||||||||||||||||
Borja Jesús Pérez Arauna(4) | 48,350 | * | * | * | * | * | ||||||||||||||||||
José Buenaventura Terceiro Lomba(4) | 300 | * | * | * | * | * | ||||||||||||||||||
Adolfo Valero Cascante(4) | 256,417 | * | * | * | * | * | ||||||||||||||||||
Non-director executive officers(1) | ||||||||||||||||||||||||
Matilde Casado Moreno | 17,168 | * | * | * | * | * | ||||||||||||||||||
Jesús Ceberio Galardi | 31,088 | * | * | * | * | * | ||||||||||||||||||
Augusto Delkader Teig | 26,808 | * | * | * | * | * | ||||||||||||||||||
Pedro García Guillén | 26,695 | * | * | * | * | * | ||||||||||||||||||
Ignacio Santillana del Barrio | 17,778 | * | * | * | * | * | ||||||||||||||||||
Kamal M. Bherwani | — | — | — | — | — | — | ||||||||||||||||||
Andrés Cardó | 826 | * | * | * | * | * | ||||||||||||||||||
Miguel Ángel Cayuela | — | — | — | — | — | — | ||||||||||||||||||
Fernando Martinez | — | — | — | — | — | — | ||||||||||||||||||
Iñigo Dago | — | — | — | — | — | — | ||||||||||||||||||
Oscar Gómez | — | — | — | — | — | — | ||||||||||||||||||
Bárbara Manrique | — | — | — | — | — | — | ||||||||||||||||||
Virginia Fernandez Iribarnegaray | — | — | — | — | — | — | ||||||||||||||||||
All executive officers, directors as a group (26 persons) | 157,614,163 | 71.93 | % | 35.5 | % | 53.6 | % | 32.4 | % | 30.4 | % | |||||||||||||
Other owners of more than 5% of outstanding shares: | ||||||||||||||||||||||||
Rucandio, S.A.(2) | 155,469,694 | 70.95 | % | 35.0 | % | 53.1 | % | 32.1 | % | 30.0 | % |
* | Less than 1% | |
(1) | The business address for each director and executive officer is Gran Vía, 32, 28013 Madrid, Spain. | |
(2) | Includes 155,469,694 Prisa ordinary shares held indirectly by Rucandio through the entities as indicated in the table below. Shares of Rucandio and Promotora de Publicaciones are subject to shareholders |
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agreements that are described in note (3). Messrs. Ignacio Polanco Moreno and Manuel Polanco Moreno do not have control of shares controlled by Rucandio for purposes of the Spanish Companies Law. |
% of Prisa | ||||||||||||||||||||||||
Class A | % of Prisa | |||||||||||||||||||||||
Ordinary Shares | Class A | |||||||||||||||||||||||
% of Prisa | Owned on Full | Ordinary Shares | ||||||||||||||||||||||
% of Prisa | Class A | Conversion of | Owned on Full | |||||||||||||||||||||
Number of Prisa | % of Prisa | Class A | Ordinary Shares | Prisa Class B | Conversion of | |||||||||||||||||||
Ordinary Shares | Ordinary Shares | Ordinary Shares | Owned | Shares and | Prisa Class B | |||||||||||||||||||
Owned Prior to | Owned Prior to | Owned After | After Exercise of | Exercise of | Shares and Full | |||||||||||||||||||
the Business | the Business | the Business | Holder’s Prisa | Holder’s Prisa | Exercise of All | |||||||||||||||||||
Combination | Combination | Combination | Warrants | Warrants | Prisa Warrants | |||||||||||||||||||
Promotora de Publicaciones | 91,005,876 | 41.53 | % | 20.5 | % | 35.1 | % | 20.2 | % | 17.6 | % | |||||||||||||
Asgard Inversiones, S.L.U. | 35,487,164 | 16.19 | % | 8.0 | % | 15.4 | % | 8.4 | % | 6.8 | % | |||||||||||||
Sabara Investment, S.L. | 20,709,420 | 9.45 | % | 4.7 | % | 9.3 | % | 5.0 | % | 4.0 | % | |||||||||||||
Timón | 7,928,140 | 3.62 | % | 1.8 | % | 3.7 | % | 1.9 | % | 1.5 | % | |||||||||||||
Others | 339,094 | * | * | * | * | * |
* | Less than 1% | |
(3) | Shareholder Agreement in Rucandio: On December 23, 2003, in a private document, Mr. Ignacio Polanco Moreno, Ms. Isabel Polanco Moreno (now deceased and succeeded by her position in this agreement), Mr. Manuel Polanco Moreno, Ms. Maria Jesús Polanco Moreno, their mother Ms. Isabel Moreno Puncel and their now deceased father Mr. Jesús de Polanco Gutiérrez, signed a family protocol, to which a shareholder syndicate agreement was annexed concerning shares in Rucandio and whose object is to preclude the entry of third parties outside the Polanco family as shareholders in Rucandio. The agreement has the following terms: (i) the syndicated shareholders and directors of Rucandio must meet prior to any general and/or extraordinary shareholder or board meeting of Rucandio to determine how they will vote their syndicated shares, and are obliged to vote together at shareholder meetings in the manner determined by all of the syndicated shareholders; (ii) if an express unanimous agreement is not achieved among the syndicated shareholders with respect to any of the proposals made at a shareholder meeting, it will be understood that sufficient agreement does not exist to bind the syndicate and each syndicated shareholder may freely cast his or her vote; (iii) members of the syndicate are obliged to attend syndicate meetings personally or to grant proxy to a person determined by the syndicate, unless the syndicate expressly agrees otherwise, and to vote in accordance with the instructions determined by the syndicate, as well as to refrain from exercising any rights individually unless they have been previously discussed and agreed at a meeting of the syndicate; and (iv) members of the syndicate are precluded from transferring or otherwise disposing of shares in Rucandio until 10 years following the death of Mr. Jesús de Polanco Gutiérrez, and then only with the consent of all other Rucandio shareholders for any type of transfer to a third party. An exception to the aforementioned terms can be made upon the unanimous agreement of the shareholders. This limitation likewise applies specifically to the shares that Rucandio holds directly or indirectly in Promotora de Publicaciones. | |
Shareholder Agreement in Promotora de Publicaciones: On May 21, 1992, and in a notarial document certified by Madrid Notary Public Mr. Jose Aristonico Sanchez, Timón and a group of shareholders of Prisa entered into an agreement to govern the contribution of their shares in that company to Promotora de Publicaciones and their participation therein. The principal undertakings set forth in the shareholders’ agreement are as follows: (i) each majority shareholder shall have at least one representative on the board of directors of Prisa and, to the extent possible, the governing body of Promotora de Publicaciones shall have the same composition as Prisa’s; (ii) the manner in which Promotora de Publicaciones shares shall be voted at Prisa’s general shareholders’ meetings will be previously determined by the majority members and Promotora de Publicaciones members who are likewise members of Prisa’s board of directors shall vote in the same manner, following instructions from the majority shareholders; (iii) in the event that Timón sells its holdings in Promotora de Publicaciones, the remaining majority shareholders shall have the right to sell their shares of Promotora de Publicaciones on the same terms and conditions to the proposed buyer, to the extent that the foregoing is possible. |
337
(4) | Does not include the director’s direct and/or indirect holdings in the share capital of Promotora de Publicaciones and Timón, through which the director has an indirect pecuniary interest in Prisa. See “Information About Prisa—Directors, Senior Management and Employees—Director and Executive Officer Conflicts of Interest.” |
• | each person known by Liberty (based solely on a review of Schedule 13Ds and Schedule 13Gs filed with the SEC) to beneficially own more than 5% of the outstanding shares of Liberty’s common stock immediately before the consummation of the business combination; | |
• | the individuals who are Liberty’s directors and executive officers, two of whom are expected to become Prisa directors following the consummation of the business combination; and | |
• | Liberty’s current directors and executive officers as a group. |
Total | ||||||||||||||||||||||||||||||||
Number of | ||||||||||||||||||||||||||||||||
Prisa | ||||||||||||||||||||||||||||||||
Number of | Class A | % of Prisa | ||||||||||||||||||||||||||||||
Prisa | % of Prisa | Ordinary | Class A | |||||||||||||||||||||||||||||
Number of | Convertible | Class B | Shares | Ordinary | ||||||||||||||||||||||||||||
Number of | % of Liberty | Prisa | % of Prisa | Class B | Convertible | Beneficially | Shares | |||||||||||||||||||||||||
Shares of | Common | Class A | Class A | Non-Voting | Non-Voting | Owned | Beneficially | |||||||||||||||||||||||||
Liberty | Stock | Ordinary | Ordinary | Shares | Shares | After the | Owned | |||||||||||||||||||||||||
Common Stock | Beneficially | Shares | Shares | Beneficially | Beneficially | Business | After the | |||||||||||||||||||||||||
Beneficially | Owned | Owned | Owned | Owned | Owned | Combination | Business | |||||||||||||||||||||||||
Owned Before | Before the | After the | After the | After the | After the | on a | Combination | |||||||||||||||||||||||||
Name and Address | the Business | Business | Business | Business | Business | Business | Fully Diluted | on a Fully | ||||||||||||||||||||||||
of Beneficial Owners(1) | Combination | Combination | Combination | Combination | Combination | Combination | Basis | Diluted Basis | ||||||||||||||||||||||||
Berggruen Acquisition Holdings Ltd.(2) | 12,771,900 | (3) | 9.9 | % | 16,685,850 | (4) | 3.8 | % | 33,371,700 | (5) | 8.3 | % | 50,057,550 | (6) | 5.9 | % | ||||||||||||||||
Marlin Equities II, LLC(7) | 12,771,900 | (3) | 9.9 | % | 16,685,850 | (4) | 3.8 | % | 33,371,700 | (5) | 8.3 | % | 50,057,550 | (6) | 5.9 | % | ||||||||||||||||
Nicolas Berggruen(2) | 12,771,900 | (3) | 9.9 | % | 16,685,850 | (4) | 3.8 | % | 33,371,700 | (5) | 8.3 | % | 50,057,550 | (6) | 5.9 | % | ||||||||||||||||
Martin E. Franklin(7) | 12,771,900 | (3) | 9.9 | % | 16,685,850 | (4) | 3.8 | % | 33,371,700 | (5) | 8.3 | % | 50,057,550 | (6) | 5.9 | % | ||||||||||||||||
James N. Hauslein | 110,400 | (8) | * | 190,440 | (9) | * | 331,200 | (10) | * | 521,640 | (11) | * | ||||||||||||||||||||
Nathan Gantcher | 110,400 | (8) | * | 190,440 | (9) | * | 331,200 | (10) | * | 521,640 | (11) | * | ||||||||||||||||||||
Paul B. Guenther | 110,400 | (8) | * | 190,440 | (9) | * | 331,200 | (10) | * | 521,640 | (11) | * | ||||||||||||||||||||
Parvus Asset Management (UK) LLLP(12) | 12,913,960 | 9.9 | % | 20,054,675 | (13) | 4.5 | % | 38,741,880 | (14) | 9.6 | % | 58,796,555 | (15) | 6.9 | % | |||||||||||||||||
All directors and executive officer as a group (5 individuals before the business combination) | 25,875,000 | 20.0 | % | 33,943,020 | 7.6 | % | 67,737,000 | 16.8 | % | 101,680,020 | 12.0 | % |
* | Less than 1% | |
(1) | The business address of Marlin Equities and Mr. Franklin is 555 Theodore Fremd Avenue, Suite B-302, Rye, New York 10580. The business address of Berggruen Holdings, Mr. Berggruen and each of the other individuals isc/o Liberty Acquisition Holdings Corp., 1114 Avenue of the Americas, 41st Floor, New York, New York 10036. | |
(2) | Liberty’s sponsor Berggruen Acquisition Holdings Ltd, a British Virgin Islands business company, is the direct subsidiary of Berggruen Holdings North America Ltd., a British Virgin Islands business company, or BHNA. BHNA is the managing and majority shareholder of Berggruen Acquisition Holdings Ltd., and a direct, wholly-owned subsidiary of Berggruen Holdings Ltd, a British Virgin Islands business company. All of the shares of Berggruen Holdings Ltd are owned by the Nicolas Berggruen Charitable Trust (formerly known as the Tarragona Trust), a British Virgin Islands trust. The trustee of the Nicolas Berggruen Charitable Trust is Maitland Trustees Limited, a British Virgin Islands corporation acting as an institutional trustee in the ordinary course of business without the purpose or effect of changing or influencing control of Liberty. Mr. Berggruen is a director of Berggruen Holdings Ltd and may be considered to have beneficial ownership of Berggruen Holdings’ interests in Liberty. Mr. Berggruen disclaims beneficial ownership of any shares in which he does not have a pecuniary interest. |
338
(3) | Excludes 6,385,950 founders’ warrants and 6,000,000 sponsors’ warrants that will be purchased by Liberty for nominal consideration immediately prior to the consummation of the business combination pursuant to the sponsor surrender agreement. | |
(4) | Consists of Prisa Class A ordinary shares to be received in exchange for its common stock, after giving effect to the sale of an assumed 1,648,000 shares of Liberty common stock to Liberty pursuant to the sponsor surrender agreement. Does not include Prisa Class A ordinary shares issuable upon conversion of Prisa Class B convertible non-voting shares. | |
(5) | Consists of Prisa Class B convertible non-voting shares to be received in exchange for its common stock, after giving effect to the sale of an assumed 1,648,000 shares of Liberty common stock to Liberty pursuant to the sponsor surrender agreement. | |
(6) | Includes 33,371,700 Prisa Class A ordinary shares issuable upon conversion of 33,371,700 Prisa Class B convertible non-voting shares. | |
(7) | Mr. Franklin is the majority owner and managing member of Marlin Equities and may be considered to have beneficial ownership of Marlin Equities’ interests in Liberty. Mr. Franklin disclaims beneficial ownership of any shares in which he does not have a pecuniary interest. | |
(8) | Excludes 55,200 founders’ warrants that will be exchanged in connection with the warrant exchange. | |
(9) | Consists of 165,600 Prisa Class A ordinary shares to be received in exchange for shares of common stock and 24,840 Prisa Class A ordinary shares to be received in connection with the warrant exchange. Does not include Prisa Class A ordinary shares issuable upon conversion of Prisa Class B convertible non-voting shares. | |
(10) | Consists of Prisa Class B convertible non-voting shares to be received in exchange for shares of common stock. | |
(11) | Includes 331,200 Prisa Class A ordinary shares issuable upon conversion of 331,200 Prisa Class B convertible non-voting shares. | |
(12) | Based solely on information in a Schedule 13D filed with the SEC on October 4, 2010 by Parvus Asset Management (UK) LLLP (“PAM UK”), Parvus Asset Management (Cayman) Limited (“PAM Cayman”) and Edoardo Mercadante (“Mr. Mercadante”). According to such Schedule 13D, PAM UK serves as the investment manager of each of certain specified investment funds which are under the management and control of PAM UK, PAM Cayman and Mr. Mercadante (collectively, the “Funds”), PAM Cayman serves as the manager of the Funds, and Mr. Mercadante is the managing member of PAM UK and the 80% owner of PAM Cayman. The address for each of PAM UK and Mr. Mercadante is 7 Clifford Street, London, W1S 2WE, United Kingdom, and the address for PAM Cayman is PO Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands. | |
(13) | Consists of 19,370,940 Prisa Class A ordinary shares to be received in exchange for shares of common stock, assuming that the mixed election is made with respect to all shares, and 683,735 Prisa Class A ordinary shares to be received in connection with the warrant exchange (based on 1,519,413 Liberty warrants held by the Funds, according to the Schedule 13D). Does not include Prisa Class A ordinary shares issuable upon conversion of Prisa Class B convertible non-voting shares. | |
(14) | Consists of Prisa Class B convertible non-voting shares to be received in exchange for shares of common stock, assuming that the mixed election is made with respect to all shares. | |
(15) | Includes 38,741,880 Prisa Class A ordinary shares issuable upon conversion of 38,741,880 Prisa Class B convertible non-voting shares. |
339
340
341
Held Prior to the Offering | Received in Share Exchange | Held After the Offering(1) | ||||||||||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||||||||||
number of | ||||||||||||||||||||||||||||||||||||
Prisa Class | ||||||||||||||||||||||||||||||||||||
Maximum | A ordinary shares | |||||||||||||||||||||||||||||||||||
Maximum | number of | held following the | ||||||||||||||||||||||||||||||||||
number of | Prisa Class B | share exchange | Number of | Percent of | ||||||||||||||||||||||||||||||||
Number of | Prisa Class A | convertible | (assuming | Number of | Percent of | Prisa Class B | Prisa Class B | |||||||||||||||||||||||||||||
Prisa ordinary | Percent of | ordinary shares | non-voting shares | conversion and | Prisa Class A | Prisa Class A | convertible | convertible | ||||||||||||||||||||||||||||
Name of Selling | shares beneficially | Prisa ordinary | received in share | received in share | including prior | ordinary shares | ordinary shares | non-voting shares | non-voting shares | |||||||||||||||||||||||||||
Stockholder | owned | shares outstanding | exchange | exchange | holdings)(2) | beneficially owned | outstanding | beneficially owned | outstanding | |||||||||||||||||||||||||||
Tyrus Capital Event Master Fund Ltd.(4) | 0 | * | 36,000,000 | (3) | 67,500,000 | (3) | 103,500,000 | 0 | ** | 0 | *** | |||||||||||||||||||||||||
HSBC Bank plc(5)(6)(7)(8)(9) | 33,000 | * | 37,195,350 | (10) | 74,390,700 | (10) | 111,655,350 | 69,300 | ** | 0 | *** |
* | Represents less than one percent of the total number of Prisa ordinary shares outstanding as of the date of this proxy statement/prospectus. | |
** | Represents less than one percent of the total number of Prisa Class A ordinary shares expected to be outstanding upon completion of the share exchange. | |
*** | Represents less than one percent of the total number of Prisa Class B convertible non-voting shares expected to be outstanding upon completion of the share exchange. | |
(1) | Assumes all Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares, the resale of which is being registered hereby, are sold by the selling stockholders. | |
(2) | Includes Prisa Class A ordinary shares issuable to the applicable selling stockholder (i) in the share exchange and (ii) upon the conversion of the Prisa Class B convertible non-voting shares issuable in the share exchange. | |
(3) | Includes 13.5 million Prisa Class A ordinary shares (i) issuable in the share exchange in respect of 2.5 million shares of Liberty common stock and 5 million Liberty warrants held by the selling stockholder as of the date hereof and (ii) issuable upon the conversion of the Prisa Class B convertible non-voting shares issuable in the share exchange in respect of such shares of Liberty common stock. | |
(4) | Tyrus Capital LLP, as investment manager for Tyrus, may upon the issuance of such shares be deemed to have beneficial ownership of the Prisa shares issuable to Tyrus in the share exchange, the resale of which is being registered hereunder. Tyrus Capital LLP is located at 11 Grosvenor Place, London SW1X 7HH, UK. The address for Tyrus Capital Event Master Fund Ltd is P.O. Box 309, Ugland House, Grand Cayman, KY-1104, Cayman Islands. | |
(5) | HSBC Bank plc is located at 8 Canada Square, London E14 5HQ, UK. | |
(6) | As the global coordinator and a financial adviser for the restructuring process of Prisa since September 2009, as financial adviser in connection with the financing for Prisa’s takeover bid for Sogecable in 2008 and as agent for the lending banks under various Prisa and Sogecable bank credit facilities, HSBC may be deemed to have a material relationship with Prisa. | |
(7) | In addition to the 33,000 Prisa ordinary shares beneficially owned by HSBC, HSBC and its affiliates hold, as of August 18, 2010, 2,832,118 Prisa ordinary shares on behalf of HSBC’s clients in asset management accounts. HSBC hereby disclaims beneficial ownership of all such shares. | |
(8) | HSBC Securities (USA) Inc. is a broker-dealer affiliate of HSBC. HSBC did not purchase the Liberty common or Liberty preferred stock or the Prisa ordinary shares outside the ordinary course of business nor did it, at the time of its acquisition of the Liberty common or Liberty preferred stock or the Prisa ordinary shares, have any arrangements, understandings or arrangements with any persons, directly or indirectly, to distribute the Prisa ordinary shares or the Prisa shares issuable in the share exchange in respect of such Liberty common or Liberty preferred stock, the resale of which is registered hereunder. | |
(9) | With respect to 50,000 shares of Series E Preferred Stock of Liberty, which may be exchanged in the share exchange for up to 8,250,000 Prisa Class A ordinary shares and up to 16,500,000 Prisa Class B convertible non-voting shares, HSBC has entered into derivative transactions in which the economic benefits and risks have been transferred to certain third parties. HSBC may enter into similar derivative transactions in the future, from time to time. | |
(10) | Includes 211,050 Prisa Class A ordinary shares (i) issuable in the share exchange in respect of 46,900 shares of Liberty common stock held by the selling stockholder as of the date hereof and (ii) issuable upon the conversion of the Prisa Class B convertible non-voting shares issuable in the share exchange in respect of such shares of Liberty common stock. |
342
• | in negotiated transactions, or in trading markets for Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares; | |
• | in the trading markets for the Prisa ADS-As and Prisa ADS-NVs representing the Prisa shares; | |
• | in theover-the-counter market or on any national securities exchange on which shares of Prisa Class A ordinary shares and Prisa Class B convertible non-voting shares may be listed or quoted at the time of sale; | |
• | in transactions otherwise than on such exchanges or in theover-the-counter market; | |
• | through a combination of any such methods; or | |
• | through any other method permitted under applicable law. |
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Page | ||||
Promotora de Informaciones, S.A. and Subsidiaries | ||||
Audited Financial Statements | ||||
F-2 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-10 | ||||
F-12 | ||||
F-83 | ||||
Unaudited Financial Statements | ||||
F-113 | ||||
F-114 | ||||
F-115 | ||||
F-116 | ||||
F-118 | ||||
F-120 | ||||
Dédalo Grupo Gráfico, S.L. and Subsidiaries — Financial Statements | ||||
F-129 | ||||
F-130 | ||||
F-132 | ||||
F-133 | ||||
F-134 | ||||
F-135 | ||||
F-136 | ||||
F-174 | ||||
Liberty Acquisition Holdings Corp. | ||||
Audited Financial Statements | ||||
F-176 | ||||
F-178 | ||||
F-179 | ||||
F-180 | ||||
F-181 | ||||
F-182 | ||||
Unaudited Financial Statements | ||||
F-191 | ||||
F-192 | ||||
F-193 | ||||
F-194 | ||||
F-195 |
F-1
F-2
Informaciones, S.A.
(Prisa) and
Subsidiaries
and consolidated statements of income and expenses and cash
flows for the years ended December 31, 2009, 2008 and 2007 together
with Auditors’ Report
F-3
F-4
Notes | 12/31/09 | 12/31/08 | ||||||||||
(Thousands of euros) | ||||||||||||
ASSETS | ||||||||||||
A) NON-CURRENT ASSETS | 6,420,766 | 6,512,270 | ||||||||||
I. PROPERTY, PLANT AND EQUIPMENT | 5 | 345,754 | 397,932 | |||||||||
III. GOODWILL | 6 | 4,319,603 | 4,302,739 | |||||||||
IV. INTANGIBLE ASSETS | 7 | 365,670 | 400,084 | |||||||||
V. NON-CURRENT FINANCIAL ASSETS | 8 | 57,218 | 93,344 | |||||||||
VI. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 9 | 13,644 | 12,936 | |||||||||
VII. DEFERRED TAX ASSETS | 21 | 1,313,820 | 1,298,475 | |||||||||
VIII. OTHER NON-CURRENT ASSETS | 5,057 | 6,760 | ||||||||||
B) CURRENT ASSETS | 1,514,898 | 1,594,297 | ||||||||||
I. INVENTORIES | 10 | 218,066 | 306,079 | |||||||||
II. TRADE AND OTHER RECEIVABLES | ||||||||||||
1. Trade receivables for sales and services | 991,723 | 1,047,541 | ||||||||||
2. Receivable from associates | 16,077 | 18,045 | ||||||||||
3. Receivable from public authorities | 21 | 56,463 | 70,718 | |||||||||
4. Other receivables | 221,645 | 183,254 | ||||||||||
6. Allowances | (78,704 | ) | (81,835 | ) | ||||||||
1,207,204 | 1,237,723 | |||||||||||
III. CURRENT FINANCIAL ASSETS | 6,593 | 838 | ||||||||||
IV. CASH AND CASH EQUIVALENTS | 82,810 | 49,432 | ||||||||||
V. OTHER CURRENT ASSETS | 225 | 225 | ||||||||||
C) ASSETS HELD FOR SALE | 15 | 257,388 | 519 | |||||||||
TOTAL ASSETS | 8,193,052 | 8,107,086 | ||||||||||
EQUITY AND LIABILITIES | ||||||||||||
A) EQUITY | 11 | 1,373,019 | 1,258,236 | |||||||||
I. SHARE CAPITAL | 21,914 | 21,914 | ||||||||||
II. OTHER RESERVES | 833,697 | 779,225 | ||||||||||
III. ACCUMULATED PROFIT | 403,478 | 398,975 | ||||||||||
— From prior years | 352,999 | 315,979 | ||||||||||
— For the year: Profit attributable to the Parent | 50,479 | 82,996 | ||||||||||
IV. TREASURY SHARES | (3,044 | ) | (24,726 | ) | ||||||||
V. EXCHANGE DIFFERENCES | (1,561 | ) | (18,422 | ) | ||||||||
VI. MINORITY INTERESTS | 118,535 | 101,270 | ||||||||||
B) NON-CURRENT LIABILITIES | 2,351,466 | 2,751,369 | ||||||||||
I. NON-CURRENT BANK BORROWINGS | 12 | 1,917,963 | 2,348,078 | |||||||||
II. NON-CURRENT FINANCIAL LIABILITIES | 12-13 | 249,538 | 232,565 | |||||||||
III. DEFERRED TAX LIABILITIES | 21 | 72,799 | 79,278 | |||||||||
IV. LONG-TERM PROVISIONS | 14 | 90,150 | 74,807 | |||||||||
V. OTHER NON-CURRENT LIABILITIES | 21,016 | 16,641 | ||||||||||
C) CURRENT LIABILITIES | 4,263,133 | 4,097,481 | ||||||||||
I. TRADE PAYABLES | 1,181,437 | 1,257,945 | ||||||||||
II. PAYABLE TO ASSOCIATES | 10,955 | 27,296 | ||||||||||
III. OTHER NON-TRADE PAYABLES | 107,693 | 142,568 | ||||||||||
IV. CURRENT BANK BORROWINGS | 12 | 2,796,362 | 2,532,091 | |||||||||
V. CURRENT FINANCIAL LIABILITIES | 3,295 | 21,676 | ||||||||||
VI. PAYABLE TO PUBLIC AUTHORITIES | 12 | 124,288 | 79,972 | |||||||||
VII. PROVISIONS FOR RETURNS | 21 | 9,417 | 9,369 | |||||||||
VIII. OTHER CURRENT LIABILITIES | 29,686 | 26,564 | ||||||||||
D)LIABILITIES HELD FOR SALE | 15 | 205,434 | — | |||||||||
TOTAL EQUITY AND LIABILITIES | 8,193,052 | 8,107,086 | ||||||||||
Consolidated Balance Sheets at 31 December 2009 and 2008.
F-5
Notes | 12/31/09 | 12/31/08 | 12/31/07 | |||||||||||||
(Thousands of euros) | ||||||||||||||||
Revenues | 16 | 3,155,105 | 3,643,282 | 3,619,510 | ||||||||||||
Other income | 16 | 53,479 | 358,066 | 76,518 | ||||||||||||
OPERATING INCOME | 3,208,584 | 4,001,348 | 3,696,028 | |||||||||||||
Cost of materials used | (1,125,648 | ) | (1,435,750 | ) | (1,380,568 | ) | ||||||||||
Staff costs | 17 | (619,972 | ) | (666,682 | ) | (623,875 | ) | |||||||||
Depreciation and amortisation charge | 5-7 | (196,657 | ) | (198,935 | ) | (231,438 | ) | |||||||||
Outside services | 17 | (835,672 | ) | (950,043 | ) | (910,617 | ) | |||||||||
Variation in operating allowances | 17 | (55,547 | ) | (45,139 | ) | (26,558 | ) | |||||||||
Other expenses | (6,106 | ) | (6,608 | ) | (3,041 | ) | ||||||||||
OPERATING EXPENSES | (2,839,602 | ) | (3,303,157 | ) | (3,176,097 | ) | ||||||||||
PROFIT FROM OPERATIONS | 368,982 | 698,191 | 519,931 | |||||||||||||
Finance income | 15,758 | 36,192 | 15,775 | |||||||||||||
Finance costs | (252,107 | ) | (313,426 | ) | (209,681 | ) | ||||||||||
Impairment of trade loans to associates | — | (88,309 | ) | (3,255 | ) | |||||||||||
Changes in value of financial instruments | 22,185 | (17,709 | ) | (34 | ) | |||||||||||
Exchange differences (net) | (105 | ) | (13,816 | ) | 1,932 | |||||||||||
FINANCIAL LOSS | 18 | (214,269 | ) | (397,068 | ) | (195,263 | ) | |||||||||
Result of companies accounted for using the equity method | 9 | (20,158 | ) | (7,592 | ) | (32,056 | ) | |||||||||
Loss from other investments | 8 | (4,256 | ) | (1,350 | ) | (3,612 | ) | |||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 130,299 | 292,181 | 289,000 | |||||||||||||
Income tax | 21 | (63,045 | ) | (90,435 | ) | (26,919 | ) | |||||||||
PROFIT FROM CONTINUING OPERATIONS | 67,254 | 201,746 | 262,081 | |||||||||||||
Loss after tax from discontinued operations | 19 | (2,429 | ) | (75,346 | ) | — | ||||||||||
CONSOLIDATED PROFIT FOR THE YEAR | 64,825 | 126,400 | 262,081 | |||||||||||||
Profit attributable to minority interests | (14,346 | ) | (43,404 | ) | (70,108 | ) | ||||||||||
PROFIT ATTRIBUTABLE TO THE PARENT | 50,479 | 82,996 | 191,973 | |||||||||||||
BASIC EARNINGS PER SHARE (in euros) | 23 | 0.23 | 0.38 | 0.92 | ||||||||||||
Consolidated Income Statements for 2009, 2008 and 2007.
F-6
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
(Thousands of euros) | ||||||||||||
PROFIT FOR THE YEAR | 64,825 | 126,400 | 262,081 | |||||||||
Net income recognized directly in equity | 33,150 | (35,073 | ) | (18,719 | ) | |||||||
Arising from translation differences | 33,510 | (35,073 | ) | (18,719 | ) | |||||||
TOTAL INCOME AND EXPENSE RECOGNISED IN THE YEAR | 97,975 | 91,327 | 243,362 | |||||||||
Attributable to the parent company | 77,282 | 57,503 | 175,579 | |||||||||
Attributable to minority interests | 20,693 | 33,824 | 67,783 |
directly in Equity Statements for 2009, 2008 and 2007.
F-7
CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY FOR 2009, 2008 AND 2007
Reserves for | ||||||||||||||||||||||||||||||||||||||||||||
First-Time | Prior Years’ | Accumulated | Equity | |||||||||||||||||||||||||||||||||||||||||
Share | Share | Application | Accumulated | Treasury | Exchange | Profit | Attributable to | Minority | ||||||||||||||||||||||||||||||||||||
Capital | Premium | Reserves | of IFRSs | Profit | Shares | Differences | for the Year | the Parent | Interests | Total Equity | ||||||||||||||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2006 | 21,881 | 108,369 | 575,163 | (72,535 | ) | 171,373 | (38,881 | ) | 1,497 | 228,909 | 995,776 | 161,458 | 1,157,234 | |||||||||||||||||||||||||||||||
Capital increase | 155 | 20,522 | 20,677 | 20,677 | ||||||||||||||||||||||||||||||||||||||||
Treasury share transactions | ||||||||||||||||||||||||||||||||||||||||||||
— Delivery of treasury shares | 63 | 63 | 63 | |||||||||||||||||||||||||||||||||||||||||
— Sale of treasury shares | ||||||||||||||||||||||||||||||||||||||||||||
— Purchase of treasury shares | (283 | ) | (283 | ) | (283 | ) | ||||||||||||||||||||||||||||||||||||||
Distribution of 2006 profit | ||||||||||||||||||||||||||||||||||||||||||||
— Directors’ remuneration | (1,322 | ) | (1,322 | ) | (1,322 | ) | ||||||||||||||||||||||||||||||||||||||
— Dividends | (33,705 | ) | (33,705 | ) | (33,705 | ) | ||||||||||||||||||||||||||||||||||||||
— Reserves | 106,294 | 87,588 | (193,882 | ) | — | — | ||||||||||||||||||||||||||||||||||||||
Income and expense recognised | ||||||||||||||||||||||||||||||||||||||||||||
— Translation differences | (11,422 | ) | (4,972 | ) | (16,394 | ) | (2,325 | ) | (18,719 | ) | ||||||||||||||||||||||||||||||||||
— Profit for 2007 | 191,973 | 191,973 | 70,108 | 262,081 | ||||||||||||||||||||||||||||||||||||||||
Other | (16,310 | ) | 1,460 | (14,850 | ) | 2,325 | (12,525 | ) | ||||||||||||||||||||||||||||||||||||
Changes in minority interests | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends paid during the year | (12,925 | ) | (12,925 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to changes in scope of consolidation | 32,013 | 32,013 | ||||||||||||||||||||||||||||||||||||||||||
— Due to changes in percentage of ownership | (40,729 | ) | (40,729 | ) | ||||||||||||||||||||||||||||||||||||||||
— Other | 1,687 | 1,687 | ||||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2007 | 22,036 | 128,891 | 665,147 | (72,535 | ) | 248,999 | (39,101 | ) | (3,475 | ) | 191,973 | 1,141,935 | 211,612 | 1,353,547 | ||||||||||||||||||||||||||||||
Capital reductions | (122 | ) | (16,226 | ) | (16,348 | ) | (16,348 | ) | ||||||||||||||||||||||||||||||||||||
Treasury share transactions | ||||||||||||||||||||||||||||||||||||||||||||
— Delivery of treasury shares | 146 | 146 | 146 | |||||||||||||||||||||||||||||||||||||||||
— Purchase of treasury shares | (347 | ) | (347 | ) | (347 | ) | ||||||||||||||||||||||||||||||||||||||
— Reserves for treasury shares | (14,576 | ) | 14,576 | — | — | |||||||||||||||||||||||||||||||||||||||
Distribution of 2007 profit | ||||||||||||||||||||||||||||||||||||||||||||
— Directors’ remuneration | (1,386 | ) | (1,386 | ) | (1,386 | ) | ||||||||||||||||||||||||||||||||||||||
— Dividends | (38,258 | ) | (38,258 | ) | (38,258 | ) | ||||||||||||||||||||||||||||||||||||||
— Reserves | 72,214 | 80,115 | (152,329 | ) | — | — |
F-8
Reserves for | ||||||||||||||||||||||||||||||||||||||||||||
First-Time | Prior Years’ | Accumulated | Equity | |||||||||||||||||||||||||||||||||||||||||
Share | Share | Application | Accumulated | Treasury | Exchange | Profit | Attributable to | Minority | ||||||||||||||||||||||||||||||||||||
Capital | Premium | Reserves | of IFRSs | Profit | Shares | Differences | for the Year | the Parent | Interests | Total Equity | ||||||||||||||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||||||||||||||||||
Income and expense recognised | ||||||||||||||||||||||||||||||||||||||||||||
— Translation differences (Note 11h) | (10,546 | ) | (14,947 | ) | (25,493 | ) | (9,580 | ) | (35,073 | ) | ||||||||||||||||||||||||||||||||||
— Profit for 2008 | 82,996 | 82,996 | 43,404 | 126,400 | ||||||||||||||||||||||||||||||||||||||||
Other | 16,139 | 171 | (2,589 | ) | 13,721 | 5,654 | 19,375 | |||||||||||||||||||||||||||||||||||||
Changes in minority interests | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends paid during the year | (10,246 | ) | (10,246 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to changes in scope of consolidation | 1,751 | 1,751 | ||||||||||||||||||||||||||||||||||||||||||
— Due to changes in percentage of ownership | (149,216 | ) | (149,216 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to capital increases | 7,891 | 7,891 | ||||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2008 | 21,914 | 112,665 | 738,924 | (72,364 | ) | 315,979 | (24,726 | ) | (18,422 | ) | 82,996 | 1,156,966 | 101,270 | 1,258,236 | ||||||||||||||||||||||||||||||
Treasury share transactions (Note 11f) | ||||||||||||||||||||||||||||||||||||||||||||
— Delivery of treasury shares | 290 | 290 | 290 | |||||||||||||||||||||||||||||||||||||||||
— Sale of treasury shares | 3,888 | 36,204 | 40,092 | 40,092 | ||||||||||||||||||||||||||||||||||||||||
— Purchase of treasury shares | (884 | ) | (884 | ) | (884 | ) | ||||||||||||||||||||||||||||||||||||||
— Reserves for treasury shares | 13,928 | (13,928 | ) | — | — | |||||||||||||||||||||||||||||||||||||||
Distribution of 2008 profit | ||||||||||||||||||||||||||||||||||||||||||||
— Directors’ remuneration | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends | ||||||||||||||||||||||||||||||||||||||||||||
— Reserves | 37,161 | 45,835 | (82,996 | ) | ||||||||||||||||||||||||||||||||||||||||
Income and expense recognised in equity | — | — | ||||||||||||||||||||||||||||||||||||||||||
— Translation differences (Note 11h) | 9,942 | 16,861 | 26,803 | 6,347 | 33,150 | |||||||||||||||||||||||||||||||||||||||
— Profit for 2009 | 50,479 | 50,479 | 14,346 | 64,825 | ||||||||||||||||||||||||||||||||||||||||
Other | (531 | ) | 26 | (18,757 | ) | (19,262 | ) | 1,173 | (18,089 | ) | ||||||||||||||||||||||||||||||||||
Changes in minority interests | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends paid during the year | (5,786 | ) | (5,786 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to changes in scope of consolidation | (193 | ) | (193 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to changes in percentage of ownership | 1,378 | 1,378 | ||||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2009 | 21,914 | 112,665 | 793,370 | (72,338 | ) | 352,999 | (3,044 | ) | (1,561 | ) | 50,479 | 1,254,484 | 118,535 | 1,373,019 | ||||||||||||||||||||||||||||||
F-9
31 DECEMBER 2009, 2008 AND 2007
12/31/09 | 12/31/08(1) | 12/31/07(1) | ||||||||||
(Thousands of euros) | ||||||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 130,299 | 292,181 | 289,000 | |||||||||
Depreciation and amortisation charge | 254,768 | 250,151 | 259,691 | |||||||||
Changes in working capital | (84,109 | ) | (2,344 | ) | (31,458 | ) | ||||||
Inventories | 17,265 | 20,276 | (46,870 | ) | ||||||||
Accounts receivable | (198,932 | ) | (57,114 | ) | (218,508 | ) | ||||||
Accounts payable | 101,676 | 27,876 | 236,214 | |||||||||
Other current assets | (4,118 | ) | 6,618 | (2,294 | ) | |||||||
Income tax recovered (paid) | (30,569 | ) | (31,764 | ) | 10,078 | |||||||
Other profit adjustments | 198,107 | 82,449 | 175,989 | |||||||||
Sale of assets | (2,453 | ) | (286,019 | ) | (20,344 | ) | ||||||
Financial results | 214,269 | 388,679 | 187,119 | |||||||||
Other adjustments | (13,709 | ) | (20,211 | ) | 9,214 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | 468,496 | 590,673 | 703,300 | |||||||||
Recurrent investments | (127,997 | ) | (190,492 | ) | (212,597 | ) | ||||||
Investments in intangible assets | (98,158 | ) | (124,483 | ) | (132,766 | ) | ||||||
Investments in property, plant and equipment | (29,839 | ) | (64,973 | ) | (79,831 | ) | ||||||
Investments in property | — | (1,036 | ) | — | ||||||||
Investments in non-current financial assets | (1,118 | ) | (13,236 | ) | (340,979 | ) | ||||||
Proceeds from disposals | 8,579 | 306,562 | 66,000 | |||||||||
Investments in non-current financial assets | (3,011 | ) | (33,910 | ) | (39,204 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | (123,547 | ) | 68,924 | (526,780 | ) | |||||||
Proceeds and payments relating to equity instruments | 33,325 | (1,046 | ) | (283 | ) | |||||||
Proceeds relating to financial liability instruments | 20,666 | 1,893,890 | 497,945 | |||||||||
Payments relating to financial liability instruments | (186,510 | ) | (270,438 | ) | (498,942 | ) | ||||||
Dividends and returns on other equity instruments paid | (4,969 | ) | (48,677 | ) | (47,354 | ) | ||||||
Interest paid | (158,685 | ) | (268,931 | ) | (180,047 | ) | ||||||
Other cash flow from financing activities | (25,871 | ) | (1,976,729 | ) | (404,707 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | (322,044 | ) | (671,931 | ) | (633,388 | ) | ||||||
Effect of foreign exchange rate changes | 10,473 | (11,061 | ) | (4,843 | ) | |||||||
CHANGE IN CASH FLOWS IN THE YEAR | 33,378 | (23,395 | ) | (461,711 | ) | |||||||
Cash and cash equivalents at beginning of year | 49,432 | 72,827 | 534,538 | |||||||||
Cash and cash equivalents at end of year | 82,810 | 49,432 | 72,827 | |||||||||
(1) | Cash flows for the years ended December 31, 2008 and 2007 have been restated in accordance with IAS 7, which came into effect on January 1, 2010, as described in Note 2-a to the financial statements. |
Cash Flow Statements for 2009, 2008 and 2007.
F-10
F-11
AND 2008 AND CONSOLIDATED STATEMENTS OF INCOME AND EXPENSES
AND CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007
(1) | GROUP ACTIVITIES AND PERFORMANCE |
a) | Group activities |
b) | Consolidated financial statements |
c) | Group performance |
F-12
(2) | BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS |
a) | Application of International Financial Reporting Standards (IFRSs) |
• | IFRSs are applied in the preparation of the consolidated financial information for the Group. The financial statements of the individual companies composing the Group are prepared and presented in accordance with the accounting principles and standards of each country. | |
• | In accordance with IFRSs, these consolidated financial statements include the following consolidated statements of the Group: |
• | Consolidated balance sheet. | |
• | Consolidated income statement. | |
• | Consolidated statement of recognized income and expense. | |
• | Consolidated statement of changes in equity. | |
• | Consolidated statement of cash flows. |
• | As required by IAS 8, uniform accounting policies and measurement bases were applied by the Group for like transactions, events and items in 2009, 2008 and 2007. |
F-13
• | Amendments to IFRS 2, Share-based Payment. | |
• | Amendments to IFRS 7, Financial Instruments — Disclosures. | |
• | Revision of IAS 23, Borrowing Costs. | |
• | Amendments to IAS 32 and IAS 1, Potable Financial Instruments and Obligations Arising on Liquidation. | |
• | Amendments to IAS 39 and IFRIC 9, Reassessment of Embedded Derivatives. | |
• | IFRIC 13, Customer Loyalty Programs. | |
• | IFRIC 14, IAS 19-The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. | |
• | IFRIC 16, Hedges of a Net Investment in a Foreign Operation. |
F-14
Standards, Amendments | Obligatory Application in the | |||
and Interpretations | Years Beginning on or After | |||
Revision of IFRS 3 | Business Combinations | July 1, 2009 | ||
Amendments to IAS 27 | Changes in Ownership Interests | July 1, 2009 | ||
Amendments to IAS 39 | Eligible Hedged Items | July 1, 2009 | ||
Amendments to IAS 32 | Classification of Rights Issues | February 1, 2010 | ||
IFRIC 12 | Service Concession Arrangements | April 1, 2009 | ||
IFRIC 15 | Agreements for the Construction of Real Estate | January 1, 2010 | ||
IFRIC 17 | Distributions of Non-cash Assets to Owners | November 1, 2009 | ||
IFRIC 18 | Transfers of Assets from Customers | November 1, 2009 | ||
IFRS 9 | Financial Instruments: Classification and Measurement | January 1, 2013 | ||
2009 Improvements to IFRS | Non-urgent amendments to IFRSs | Various (mainly January 1, 2010) | ||
Amendments to IFRS 2 | Share-based Payment Transactions among Group Entities | January 1, 2010 | ||
Revision of IAS 24 | Related Party Disclosures | January 1, 2011 | ||
Amendments to IFRIC 14 | Prepayments of a Minimum Funding Requirement | January 1, 2011 | ||
IFRIC 19 | Extinguishing Financial Liabilities with Equity Instruments | July 1, 2010 |
b) | Fair presentation and accounting principles |
F-15
c) | Use of estimates |
• | The measurement of assets and goodwill to determine the possible existence of impairment losses (see Note 4e). | |
• | The useful life of the property, plant and equipment and intangible assets (see Notes 4b and 4d). | |
• | The assumptions used in calculating the fair value of financial instruments(see Note 4f). | |
• | The assessment of the likelihood and amount of undetermined or contingent liabilities. | |
• | Estimated sales returns received subsequent to year-end. |
d) | Basis of consolidation |
F-16
(3) | CHANGES IN GROUP STRUCTURE |
F-17
F-18
F-19
F-20
(4) | ACCOUNTING POLICIES |
a) | Presentation of the consolidated financial statements |
b) | Property, plant and equipment |
Years of Estimated | ||
Useful Life | ||
Buildings and structures | 30 - 50 | |
Plant and machinery | 5 - 10 | |
Digital set-top boxes | 7 | |
Digital access cards | 3 | |
Other items of property, plant and equipment | 4 - 20 |
F-21
c) | Goodwill |
• | If it is attributable to specific assets and liabilities of the companies acquired, increasing the value of the assets whose market values were higher than the carrying amounts at which they had been recognised in their balance sheets and whose accounting treatment was similar to that of the same assets of the Group. | |
• | If it is attributable to non-contingent liabilities, recognising it in the consolidated balance sheet if it is probable that the outflow of resources to settle the obligation embody economic benefits and the fair value can be measured reliably. | |
• | If it is attributable to specific intangible assets, recognising it explicitly in the consolidated balance sheet provided that the fair value at the date of acquisition can be measured reliably. | |
• | The remaining amount is recognised as goodwill. |
d) | Intangible assets |
F-22
• | Advances on audiovisual productions: the balance of this item relates to the amounts advanced to producers to make films, series and other audiovisual productions. The Group starts to amortise these amounts from the date of commercial release of the related production, based on the projected revenues to be obtained therefrom. | |
• | Audiovisual productions: the balance of this item relates to the costs incurred in making and acquiring audiovisual productions and in the acquisition, where applicable, of certain rights to screen these productions. These assets are amortised on the basis of the projected income. |
• | Screening rights and negatives: negatives relate to the screening rights to which the Group holds perpetual title. The related acquisition cost is amortised by the declining-balance method over the term of the rights (ten years in the case of negatives). | |
• | Other rights: relate to the cost of various long-term audiovisual rights and rights of publicity (including both the cost of rights currently being exploited and the cost of the options to exploit these rights in the future). These rights are amortised, on the basis of the income obtained therefrom, over the term of the related contracts. At the date of preparation of these consolidated financial statements no decision had been taken not to exercise these options, which were recognised at their expected recoverable amount. |
F-23
e) | Impairment losses |
f) | Financial instruments |
• | Loans and receivables: these assets are recognised at amortised cost, i.e. cash delivered less principal repayments, plus accrued interest receivable, in the case of loans, and the present value of the related consideration in the case of receivables. The Group records the related allowance for the difference between the recoverable amount of the receivables and their carrying amount. | |
• | Held-to-maturity investments: investments that the Group has the positive intention and ability to hold to the date of maturity. They are carried at amortised cost. | |
• | Financial assets at fair value through profit or loss: this category includes theheld-for-trading financial assets and financial assets which are managed and valued using the fair value model. | |
• | Available-for-sale financial assets: this category includes the remaining assets not included in the three categories above, which relate substantially in full to equity investments. These investments are measured in the consolidated balance sheet at fair value when it can be determined reliably. If the |
F-24
market value of investments in unlisted companies cannot be determined reliably, these investments are measured at acquisition cost or at a lower amount if there is any indication of impairment. |
g) | Investments accounted for using the equity method |
h) | Inventories |
F-25
1. | Broadcasting rights for “Canal+”, premiumpay-TV channels: |
• | Film broadcasting rights acquired from third parties (outside productions): the cost of these rights is recognized in the income statement on a straight-line basis from the date of the first showing or commercial release until the expiry of the broadcasting rights. | |
• | Sporting event broadcasting rights: these rights are taken to income in full at the date of the first showing. | |
• | Acquired series broadcasting rights: the cost of these rights is charged to income on a straight-line basis over the various showings. | |
• | Other rights: these relate basically to documentaries, in-house productions and introductory programme slots, and are amortised when they are broadcasted. |
2. | Broadcasting rights forfree-to-air television channels: |
• | Film, series and cartoon broadcasting rights acquired from third parties (outside productions): these rights are taken to income at the date of the showing. If rights are acquired to broadcast more than one showing, 75% of the cost is charged to income at the date of the first showing and 25% at the date of the second showing. | |
• | Broadcasting rights for in-house or commissioned production programmes and series: the cost of these rights is charged to income in full at the date of the first showing. | |
• | Other rights: these are recognised as a period expense at the date of the related showing. |
i) | Assets and liabilities classified as held for sale |
j) | Long-term provisions |
F-26
k) | Revenue and expense recognition |
• | Revenue from subscribersarising from the pay TV business is recognized when the subscribers are registered in the system. Subscription revenue is recognized on a monthly basis. Pay per viewrevenueis recognized when the program acquired by the subscriber is screened. | |
• | Advertising revenueis recognized when the advertisement appears in the media, less the amount of volume rebates offered to the media agencies. | |
• | Revenue from book salesis recognized on the effective delivery thereof. Where the sales of the copies are subject to sales returns, the actual sales returns and the amount of the provisions estimated at the balance sheet date are deducted from the revenue recognized. Also, the amounts corresponding to rebates or trade discounts that are not of a financial nature are deducted from revenue. | |
• | Revenue from the sale of newspapers and magazinesare recognized on the effective delivery thereof, net of the related estimated provision for sales returns. Also, the amounts relating to distributors’ fees are deducted from revenue. | |
• | Therevenueand the costs associated withaudiovisual productionagreements are recognized in the income statement by reference to the stage of completion of the contract activity at the balance sheet date, using the percentage of completion method. The stage of completion is determined by reference to the ratio of contract costs incurred to date for work already performed to the estimated total contract costs, considering the initial margin estimated for the overall project. Estimates of contract revenue and costs and of the outcome of a contract are reviewed at each balance sheet date, and the revised estimates are used in the determination of the amount of revenue and expenses recognized in income for the period in which the change is made and in subsequent periods. When the final outcome of the agreement cannot be estimated reliably, the revenue must only be recognized to the extent that it is probable that the costs incurred will be recovered, whereas the costs are recognized as an expense for the year in which they are incurred. In any case, the expected future losses would be recognized immediately in the income statement. | |
• | The revenue related tointermediation servicesis recognized at the amount of the fees received when the goods or services under the transaction are supplied. |
F-27
• | Other income: this item includes broadcasting services, sales of add-ons and collections, telephone hotline services, music sales, organization and management of events,e-commerce, Internet services, leases and other income. |
l) | Offsetting |
m) | Tax matters |
n) | Profit/Loss from discontinued operations |
F-28
o) | Foreign currency transactions |
p) | Current/non-current classification |
q) | Share-based payment |
r) | Consolidated cash flow statements |
• | Changes in cash flows in the year: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value. | |
• | Operating activities: the principal revenue-producing activities of the Group and other activities that are not investing or financing activities. | |
• | Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents. | |
• | Financing activities: activities that result in changes in the size and composition of equity and borrowings. |
s) | Environmental impact |
F-29
(5) | PROPERTY, PLANT AND EQUIPMENT |
Changes | ||||||||||||||||||||||||||||||||
Balance at | Monetary | Translation | in Scope of | Balance at | ||||||||||||||||||||||||||||
12/31/08 | Adjustment | Adjustment | Consolidation | Additions | Disposals | Transfers | 12/31/09 | |||||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||||||
Land and buildings | 153,412 | 1,128 | 2,458 | (3,027 | ) | 320 | (2,069 | ) | 329 | 152,551 | ||||||||||||||||||||||
Plant and machinery | 483,815 | 1,051 | 3,924 | (4,840 | ) | 13,613 | (32,091 | ) | 1,799 | 467,271 | ||||||||||||||||||||||
Digital set-top boxes and cards | 375,167 | — | — | — | 1,825 | (17,217 | ) | — | 359,775 | |||||||||||||||||||||||
Other items of property, plant and equipment | 182,106 | 800 | 2,310 | (1,280 | ) | 6,084 | (12,209 | ) | 1,234 | 179,045 | ||||||||||||||||||||||
Advances and property, plant and equipment in the course of construction | 16,459 | 10 | (58 | ) | (55 | ) | 7,997 | (108 | ) | (4,546 | ) | 19,699 | ||||||||||||||||||||
Total cost | 1,210,959 | 2,989 | 8,634 | (9,202 | ) | 29,839 | (63,694 | ) | (1,184 | ) | 1,178,341 | |||||||||||||||||||||
Accumulated depreciation: | ||||||||||||||||||||||||||||||||
Buildings | (28,226 | ) | (336 | ) | (1,199 | ) | 305 | (2,878 | ) | 778 | 70 | (31,486 | ) | |||||||||||||||||||
Plant and machinery | (322,307 | ) | (1,174 | ) | (3,721 | ) | 2,401 | (29,244 | ) | 22,679 | (22 | ) | (331,388 | ) | ||||||||||||||||||
Digital set-top boxes and cards | (306,026 | ) | — | — | — | (19,979 | ) | 16,225 | — | (309,780 | ) | |||||||||||||||||||||
Other items of property, plant and equipment | (140,716 | ) | (509 | ) | (1,663 | ) | 1,183 | (15,765 | ) | 11,542 | (48 | ) | (145,976 | ) | ||||||||||||||||||
Total accumulated depreciation | (797,275 | ) | (2,019 | ) | (6,583 | ) | 3,889 | (67,866 | ) | 51,224 | — | (818,630 | ) | |||||||||||||||||||
Impairment losses: | ||||||||||||||||||||||||||||||||
Buildings | (85 | ) | — | — | — | — | — | (97 | ) | (182 | ) | |||||||||||||||||||||
Plant and machinery | (1,342 | ) | — | — | — | — | — | 827 | (515 | ) | ||||||||||||||||||||||
Digital set-top boxes and cards | (14,120 | ) | — | — | — | — | 992 | — | (13,128 | ) | ||||||||||||||||||||||
Other items of property, plant and equipment | (205 | ) | — | (13 | ) | — | — | — | 86 | (132 | ) | |||||||||||||||||||||
Total impairment losses | (15,752 | ) | — | (13 | ) | — | — | 992 | 816 | (13,957 | ) | |||||||||||||||||||||
Property, plant and equipment, net | 397,932 | 970 | 2,038 | (5,313 | ) | (38,027 | ) | (11,478 | ) | (368 | ) | 345,754 | ||||||||||||||||||||
• | “Plant and Machinery”, amounting to EUR 13,613 thousands, mainly as a result of the expansion and improvement of the production processes at the Madrid printing plant carried out by Pressprint, S.L.U. and the investments made by Sogecable, S.A.U. and Grupo Media Capital, SGPS, S.A. in plant and machinery to provide television services. |
F-30
• | “Advances and Property, Plant and Equipment in the Course of Construction”, amounting to EUR 7,997 thousands and relating mainly to the expansion of the sealing equipment of the rotary presses at the Madrid printing plant being carried out by Pressprint, S.L.U. and to the general and technical refurbishment being carried out on the floors occupied by Sociedad de Servicios Radiofónicos Unión Radio, S.L. in the building at Gran Vía 32, in Madrid. | |
• | “Other Items of Property, Plant and Equipment”, amounting to EUR 6,084 thousands and relating mainly to the investments in computer and communications equipment associated with the technological projects being implemented by the Group. |
Changes in | ||||||||||||||||||||||||||||||||
Balance at | Monetary | Translation | Scope of | Balance at | ||||||||||||||||||||||||||||
12/31/07 | Adjustment | Adjustment | Consolidation | Additions | Disposals | Transfers | 12/31/08 | |||||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||||||
Land and buildings | 155,573 | 1,202 | (5,145 | ) | 245 | 2,119 | (824 | ) | 242 | 153,412 | ||||||||||||||||||||||
Plant and machinery | 452,039 | 1,064 | (6,384 | ) | 5,038 | 32,980 | (5,490 | ) | 4,568 | 483,815 | ||||||||||||||||||||||
Digital set-top boxes and cards | 446,553 | — | — | — | 11,460 | (82,846 | ) | — | 375,167 | |||||||||||||||||||||||
Other items of property, plant and equipment | 180,311 | 884 | (3,452 | ) | 570 | 14,036 | (11,127 | ) | 884 | 182,106 | ||||||||||||||||||||||
Advances and property, plant and equipment in the course of construction | 13,063 | — | (127 | ) | 2 | 11,435 | (987 | ) | (6,927 | ) | 16,459 | |||||||||||||||||||||
Total cost | 1,247,539 | 3,150 | (15,108 | ) | 5,855 | 72,030 | (101,274 | ) | (1,233 | ) | 1,210,959 | |||||||||||||||||||||
Accumulated depreciation: | ||||||||||||||||||||||||||||||||
Buildings | (26,854 | ) | (507 | ) | 1,834 | (49 | ) | (2,754 | ) | 320 | (216 | ) | (28,226 | ) | ||||||||||||||||||
Plant and machinery | (286,414 | ) | (751 | ) | 5,443 | (3,167 | ) | (39,020 | ) | 3,430 | (1,828 | ) | (322,307 | ) | ||||||||||||||||||
Digital set-top boxes and cards | (356,846 | ) | — | — | — | (28,738 | ) | 79,558 | — | (306,026 | ) | |||||||||||||||||||||
Other items of property, plant and equipment | (134,960 | ) | (738 | ) | 2,807 | (392 | ) | (17,210 | ) | 10,332 | (555 | ) | (140,716 | ) | ||||||||||||||||||
Total accumulated depreciation | (805,074 | ) | (1,996 | ) | 10,084 | (3,608 | ) | (87,722 | ) | 93,640 | (2,599 | ) | (797,275 | ) | ||||||||||||||||||
F-31
Changes in | ||||||||||||||||||||||||||||||||
Balance at | Monetary | Translation | Scope of | Balance at | ||||||||||||||||||||||||||||
12/31/07 | Adjustment | Adjustment | Consolidation | Additions | Disposals | Transfers | 12/31/08 | |||||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||||||
Impairment losses: | ||||||||||||||||||||||||||||||||
Buildings | (85 | ) | — | — | — | — | — | — | (85 | ) | ||||||||||||||||||||||
Plant and machinery | (591 | ) | — | — | — | — | — | (751 | ) | (1,342 | ) | |||||||||||||||||||||
Digital set-top boxes and cards | (18,408 | ) | — | — | — | 997 | 3,291 | — | (14,120 | ) | ||||||||||||||||||||||
Other items of property, plant and equipment | (218 | ) | — | 13 | — | — | — | — | (205 | ) | ||||||||||||||||||||||
Total impairment losses | (19,302 | ) | — | 13 | — | 997 | 3,291 | (751 | ) | (15,752 | ) | |||||||||||||||||||||
Property, plant and equipment, net | 423,163 | 1,154 | (5,011 | ) | 2,247 | (14,695 | ) | (4,343 | ) | (4,583 | ) | 397,932 | ||||||||||||||||||||
• | “Digital Set-Top Boxes and Cards”, amounting to EUR 11,460 thousands relate to the acquisitions of digital set-top boxes and cards by CanalSatélite Digital, S.L. and DTS Distribuidora de Televisión Digital, S.A. | |
• | “Plant and Machinery”, amounting to EUR 32,980 thousands, mainly as a result of the expansion and improvement of the production processes at the Barcelona printing plant carried out by Diario El País, S.L. and the investments by Sogecable, S.A.U. to provide television services in the building located in Tres Cantos (Madrid). | |
• | “Advances and Property, Plant and Equipment in the Course of Construction” relate mainly to the general and technical refurbishment being carried out on the floors occupied by Sociedad de Servicios Radiofónicos Unión Radio, S.L. in the building at Gran Vía 32, in Madrid. | |
• | “Other Items of Property, Plant and Equipment” amounting to EUR 14,036 thousands, correspond mainly to the investments in computer and communications equipment associated with the technological projects being implemented by the Group. |
F-32
12/31/2009 | 12/31/2008 | |||||||||||||||||||||||
Accumulated | Carrying | Accumulated | Carrying | |||||||||||||||||||||
Cost | Depreciation | Amount | Cost | Depreciation | Amount | |||||||||||||||||||
Digital set-top boxes and cards | 14,924 | (8,327 | ) | 6,597 | 14,924 | (6,196 | ) | 8,728 | ||||||||||||||||
Plant and machinery | 4,497 | (1,504 | ) | 2,993 | 3,560 | (687 | ) | 2,873 | ||||||||||||||||
Other items of property, plant and equipment | 3,009 | (2,189 | ) | 820 | 4,076 | (2,472 | ) | 1,604 | ||||||||||||||||
Total | 22,430 | (12,020 | ) | 10,410 | 22,560 | (9,355 | ) | 13,205 | ||||||||||||||||
(6) | GOODWILL |
Changes in | ||||||||||||||||||||||||
Scope of | ||||||||||||||||||||||||
Balance at | Translation | Consolidation/ | Impairment | Balance at | ||||||||||||||||||||
12/31/08 | Adjustment | Additions | Losses | Transfers | 12/31/09 | |||||||||||||||||||
Antena 3 de Radio, S.A. | 6,115 | — | — | — | — | 6,115 | ||||||||||||||||||
Editora Moderna, Ltda. | 60,565 | — | — | — | — | 60,565 | ||||||||||||||||||
Editora Objetiva, Ltda. | 7,925 | 2,511 | 1,391 | — | — | 11,827 | ||||||||||||||||||
Gerencia de Medios, S.A. | 33,944 | — | — | — | — | 33,944 | ||||||||||||||||||
GLR Chile, Ltda. | 2,208 | 9,557 | — | — | 42,784 | 54,549 | ||||||||||||||||||
Grupo Latino de Radio, S.L. | 8,368 | — | — | — | (8,368 | ) | — | |||||||||||||||||
Grupo Media Capital, SPGS, S.A. | 688,560 | — | 603 | — | — | 689,163 | ||||||||||||||||||
Iberoamericana Radio Chile, S.A. | 36,849 | — | — | — | (36,849 | ) | — | |||||||||||||||||
Propulsora Montañesa, S.A. | 8,608 | — | — | — | — | 8,608 | ||||||||||||||||||
Sistema Radiópolis, S.A. de C.V. | 28,787 | — | — | — | — | 28,787 | ||||||||||||||||||
Sociedad Española de Radiodifusión, S.L. | 20,086 | — | — | — | 9,384 | 29,470 | ||||||||||||||||||
Sogecable, S.A.U. | 3,364,578 | — | 176 | — | — | 3,364,754 | ||||||||||||||||||
Other companies | 36,146 | (81 | ) | — | (3,228 | ) | (1,016 | ) | 31,821 | |||||||||||||||
Total | 4,302,739 | 11,987 | 2,170 | (3,228 | ) | 5,935 | 4,319,603 | |||||||||||||||||
F-33
Changes in the | ||||||||||||||||||||||||
Scope of | ||||||||||||||||||||||||
Balance at | Translation | Consolidation/ | Balance at | |||||||||||||||||||||
12/31/08 | Adjustment | Additions | Impairment | Transfers | 12/31/09 | |||||||||||||||||||
Press | 4,407 | — | — | (3,228 | ) | — | 1,179 | |||||||||||||||||
Radio | 135,906 | 9,381 | — | — | 5,935 | 151,222 | ||||||||||||||||||
Education | 69,252 | 2,606 | 1,390 | — | — | 73,248 | ||||||||||||||||||
Audiovisual(*) | 4,054,116 | — | 780 | — | — | 4,054,896 | ||||||||||||||||||
Others | 39,058 | — | — | — | — | 39,058 | ||||||||||||||||||
Total | 4,302,739 | 11,987 | 2,170 | (3,228 | ) | 5,935 | 4,319,603 | |||||||||||||||||
(*) | Includes the goodwill of Sogecable, S.A.U. and Media Capital, SGPS, S.A. |
F-34
Changes in | ||||||||||||||||||||||||||||
Scope of | ||||||||||||||||||||||||||||
Balance at | Translation | Consolidation/ | Impairment | Balance at | ||||||||||||||||||||||||
12/31/07 | Adjustment | Additions | Disposals | Losses | Transfers | 12/31/08 | ||||||||||||||||||||||
Antena 3 de Radio, S.A. | 6,859 | — | — | (744 | ) | — | — | 6,115 | ||||||||||||||||||||
Editora Moderna, Ltda. | 60,565 | — | — | — | — | — | 60,565 | |||||||||||||||||||||
Editora Objetiva, Ltda. | 9,006 | (1,910 | ) | 829 | — | — | — | 7,925 | ||||||||||||||||||||
Gerencia de Medios, S.A. | 33,944 | — | — | — | — | — | 33,944 | |||||||||||||||||||||
GLR Chile, Ltda. | 3,709 | (1,423 | ) | — | — | — | (78 | ) | 2,208 | |||||||||||||||||||
Grupo Latino de Radio, S.L. | 9,109 | — | — | — | — | (741 | ) | 8,368 | ||||||||||||||||||||
Grupo Media Capital, SPGS, S.A. | 693,444 | — | — | (133 | ) | (4,751 | ) | — | 688,560 | |||||||||||||||||||
Iberoamericana Radio Chile, S.A. | 44,025 | (5,289 | ) | — | — | — | (1,887 | ) | 36,849 | |||||||||||||||||||
Propulsora Montañesa, S.A. | 8,608 | — | — | — | — | — | 8,608 | |||||||||||||||||||||
Sistema Radiópolis, S.A. de C.V. | 31,338 | — | — | — | — | (2,551 | ) | 28,787 | ||||||||||||||||||||
Sociedad Española de Radiodifusión, S.L. | 20,086 | — | — | — | — | — | 20,086 | |||||||||||||||||||||
Sogecable, S.A.U. | 1,466,439 | — | 1,898,139 | — | — | — | 3,364,578 | |||||||||||||||||||||
Other companies | 32,946 | 138 | 10,491 | (132 | ) | (7,069 | ) | 228 | 36,146 | |||||||||||||||||||
Total | 2,420,078 | (8,484 | ) | 1,909,459 | (1,009 | ) | (11,820 | ) | (5,485 | ) | 4,302,739 | |||||||||||||||||
Changes in the | ||||||||||||||||||||||||||||
Scope of | ||||||||||||||||||||||||||||
Balance at | Translation | Consolidation/ | Balance at | |||||||||||||||||||||||||
12/31/07 | Adjustment | Additions | �� | Disposals | Impairment | Transfers | 12/31/08 | |||||||||||||||||||||
Press | 4,407 | — | — | — | — | — | 4,407 | |||||||||||||||||||||
Radio | 138,639 | (6,492 | ) | 10,120 | (876 | ) | (5,485 | ) | 135,906 | |||||||||||||||||||
Education | 70,415 | (1,992 | ) | 829 | — | — | — | 69,252 | ||||||||||||||||||||
Audiovisual(*) | 2,167,559 | — | 1,898,510 | (133 | ) | (11,820 | ) | — | 4,054,116 | |||||||||||||||||||
Others | 39,058 | — | — | — | — | — | 39,058 | |||||||||||||||||||||
Total | 2,420,078 | (8,484 | ) | 1,909,459 | (1,009 | ) | (11,820 | ) | (5,485 | ) | 4,302,739 | |||||||||||||||||
(*) | Includes the goodwill of Sogecable, S.A.U. and Media Capital, SGPS, S.A. |
F-35
F-36
F-37
• | Sogecable |
• | Increase of 1% in the discount rate | |
• | Decrease of 5% in the advertising share | |
• | Decrease of 5% in the ARPU | |
• | Decrease of 5% in the number of subscribers |
• | Media Capital |
• | Increase of 1% in the discount rate | |
• | Decrease of 1% in the projected growth rate from the fifth year onwards | |
• | Decrease of 2% in the advertising share |
F-38
(7) | INTANGIBLE ASSETS |
Changes in | ||||||||||||||||||||||||||||||||
Balance at | Monetary | Translation | Scope of | Balance at | ||||||||||||||||||||||||||||
12/31/08 | Adjustment | Adjustment | Consolidation | Additions | Disposals | Transfers | 12/31/09 | |||||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||||||
Computer software | 181,957 | 252 | 659 | (3,075 | ) | 16,204 | (5,501 | ) | (1,899 | ) | 188,597 | |||||||||||||||||||||
Prototypes | 130,335 | 443 | 9,405 | — | 31,246 | (25,789 | ) | 31,569 | 177,209 | |||||||||||||||||||||||
New subscribers — Installation and connection | 120,644 | — | — | — | 28,681 | (52,360 | ) | — | 96,965 | |||||||||||||||||||||||
Advances on copyrights | 60,426 | (16 | ) | 1,699 | — | 7,277 | (9,549 | ) | 43 | 59,880 | ||||||||||||||||||||||
Audiovisual rights | 389,456 | — | — | — | 10,321 | (7,271 | ) | (8,273 | ) | 384,233 | ||||||||||||||||||||||
Other intangible assets | 85,379 | (401 | ) | 3,604 | (249 | ) | 4,429 | (660 | ) | 3,100 | 95,202 | |||||||||||||||||||||
Total cost | 968,197 | 278 | 15,367 | (3,324 | ) | 98,158 | (101,130 | ) | 24,540 | 1,002,086 | ||||||||||||||||||||||
Accumulated amortisation: | ||||||||||||||||||||||||||||||||
Computer software | (127,096 | ) | (219 | ) | (451 | ) | 1,932 | (17,050 | ) | 5,993 | 394 | (136,497 | ) | |||||||||||||||||||
Prototypes | (90,538 | ) | 52 | (5,978 | ) | (1 | ) | (33,880 | ) | 25,617 | (17,496 | ) | (122,224 | ) | ||||||||||||||||||
Advances on copyrights | (36,846 | ) | 1 | (853 | ) | — | (3,738 | ) | 7,028 | (348 | ) | (34,756 | ) | |||||||||||||||||||
Audiovisual rights | (273,228 | ) | — | — | — | (16,937 | ) | 6,984 | — | (283,181 | ) | |||||||||||||||||||||
Other intangible assets | (25,347 | ) | 177 | (2,062 | ) | 276 | (57,186 | ) | 52,506 | (308 | ) | (31,944 | ) | |||||||||||||||||||
Total accumulated amortisation | (553,055 | ) | 11 | (9,344 | ) | 2,207 | (128,791 | ) | 98,128 | (17,758 | ) | (608,602 | ) | |||||||||||||||||||
Impairment losses: | ||||||||||||||||||||||||||||||||
Computer software | (57 | ) | — | — | — | — | 57 | — | — | |||||||||||||||||||||||
Prototypes | (3,075 | ) | — | — | — | 3,300 | — | (14,848 | ) | (14,623 | ) | |||||||||||||||||||||
Advances on copyrights | (11,084 | ) | — | (137 | ) | — | (3,993 | ) | 1,213 | 810 | (13,191 | ) | ||||||||||||||||||||
Other intangible assets | (842 | ) | — | — | — | 476 | 145 | 221 | — | |||||||||||||||||||||||
Total impairment losses | (15,058 | ) | — | (137 | ) | — | (217 | ) | 1,415 | (13,817 | ) | (27,814 | ) | |||||||||||||||||||
Intangible assets, net | 400,084 | 289 | 5,886 | (1,117 | ) | (30,850 | ) | (1,587 | ) | (7,035 | ) | 365,670 | ||||||||||||||||||||
• | “New Subscribers — Installation and Connection” amounting to EUR 28,681 thousands which included the costs incurred by the Sogecable Group in connection with the installation of equipment and the connection of new subscribers to digital satellite pay TV. | |
• | “Prototypes”, amounting to EUR 31,246 thousands, relating to new prototypes for the publication of books at Grupo Santillana de Ediciones, S.L. | |
• | “Computer Software”, amounting to EUR 16,204 thousands, relating to the computer software acquiredand/or developed by third parties for Group companies under the Group’s IT Plan. |
• | “Advances on Copyrights”,amounting to EUR 7,277 thousands, relating mainly to the amounts paid to authors by Grupo Santillana de Ediciones, S.L. for the acquisition of book publishing rights. |
F-39
• | “Audiovisual Rights”, amounting to EUR 10,321 thousands which includes mainly the advances paid for the exploitation of future audiovisual rights and the investments made in film production and audiovisual rights for their distribution. |
Changes in | ||||||||||||||||||||||||||||||||
Balance at | Monetary | Translation | Scope of | Balance at | ||||||||||||||||||||||||||||
12/31/07 | Adjustment | Adjustment | Consolidation | Additions | Disposals | Transfers | 12/31/08 | |||||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||||||
Computer software | 160,946 | 234 | (783 | ) | 170 | 24,032 | (3,126 | ) | 484 | 181,957 | ||||||||||||||||||||||
Prototypes | 139,301 | 361 | (9,419 | ) | — | 34,317 | (35,108 | ) | 883 | 130,335 | ||||||||||||||||||||||
New subscribers — Installation and connection | 133,747 | — | — | — | 38,622 | (51,725 | ) | — | 120,644 | |||||||||||||||||||||||
Advances on copyrights | 53,638 | — | (1,322 | ) | — | 11,667 | (4,137 | ) | 580 | 60,426 | ||||||||||||||||||||||
Audiovisual rights | 432,495 | — | — | — | 8,693 | (28,754 | ) | (22,978 | ) | 389,456 | ||||||||||||||||||||||
Other intangible assets | 86,627 | 1,133 | (3,420 | ) | 13 | 7,152 | (4,500 | ) | (1,626 | ) | 85,379 | |||||||||||||||||||||
Total cost | 1,006,754 | 1,728 | (14,944 | ) | 183 | 124,483 | (127,350 | ) | (22,657 | ) | 968,197 | |||||||||||||||||||||
Accumulated amortisation: | ||||||||||||||||||||||||||||||||
Computer software | (111,757 | ) | (237 | ) | 574 | (120 | ) | (15,921 | ) | 923 | (558 | ) | (127,096 | ) | ||||||||||||||||||
Prototypes | (89,007 | ) | (170 | ) | 8,047 | — | (28,904 | ) | 19,654 | (158 | ) | (90,538 | ) | |||||||||||||||||||
Advances on copyrights | (33,941 | ) | — | 621 | — | (4,559 | ) | 1,006 | 27 | (36,846 | ) | |||||||||||||||||||||
Audiovisual rights | (288,427 | ) | — | — | — | (13,544 | ) | 28,743 | — | (273,228 | ) | |||||||||||||||||||||
Other intangible assets | (26,560 | ) | (536 | ) | 1,994 | (261 | ) | (55,323 | ) | 55,093 | 246 | (25,347 | ) | |||||||||||||||||||
Total accumulated amortisation | (549,692 | ) | (943 | ) | 11,236 | (381 | ) | (118,251 | ) | 105,419 | (443 | ) | (553,055 | ) | ||||||||||||||||||
Impairment losses: | ||||||||||||||||||||||||||||||||
Computer software | (1 | ) | — | — | — | — | — | (56 | ) | (57 | ) | |||||||||||||||||||||
Prototypes | (2,480 | ) | — | (46 | ) | — | 6 | — | (555 | ) | (3,075 | ) | ||||||||||||||||||||
Advances on copyrights | (9,547 | ) | — | 106 | — | (2,083 | ) | 612 | (172 | ) | (11,084 | ) | ||||||||||||||||||||
Other intangible assets | (697 | ) | — | — | — | — | — | (145 | ) | (842 | ) | |||||||||||||||||||||
Total impairment losses | (12,725 | ) | — | 60 | — | (2,077 | ) | 612 | (928 | ) | (15,058 | ) | ||||||||||||||||||||
Intangible assets, net | 444,337 | 785 | (3,648 | ) | (198 | ) | 4,155 | (21,319 | ) | (24,028 | ) | 400,084 | ||||||||||||||||||||
F-40
• | “New Subscribers — Installation and Connection” amounting to EUR 38,622 thousands which included the costs incurred by the Sogecable Group in connection with the installation of equipment and the connection of new subscribers to digital satellite pay TV. | |
• | “Prototypes”, amounting to EUR 34,317 thousands, relating to new prototypes for the publication of books at Grupo Santillana de Ediciones, S.L. | |
• | “Computer Software”, amounting to EUR 24,032 thousands, relating to the computer software acquiredand/or developed by third parties for Group companies under the Group’s IT Plan. | |
• | “Advances on Copyrights”,amounting to EUR 11,667 thousands, relating mainly to the amounts paid to authors by Grupo Santillana de Ediciones, S.L. for the acquisition of book publishing rights. | |
• | “Audiovisual Rights”, amounting to EUR 8,693 thousands which includes mainly the advances paid for the exploitation of future audiovisual rights and the investments made in film production and audiovisual rights for their distribution. |
F-41
(8) | FINANCIAL ASSETS |
Additions/ | ||||||||||||||||||||
Balance at | Translation | Charge for | Disposals/ | Balance at | ||||||||||||||||
12/31/08 | Adjustment | the Year | Transfers | 12/31/09 | ||||||||||||||||
Thousands of Euros | ||||||||||||||||||||
Loans and receivables | 32,185 | 718 | 1,552 | (19,167 | ) | 15,288 | ||||||||||||||
Loans to associates | 108,457 | (8 | ) | 1,014 | (8,983 | ) | 100,480 | |||||||||||||
Long-term loans to third parties | 15,515 | (26 | ) | 538 | (12,354 | ) | 3,673 | |||||||||||||
Other non-current financial assets | 5,920 | 752 | — | — | 6,672 | |||||||||||||||
Allowance | (97,707 | ) | — | — | 2,170 | (95,537 | ) | |||||||||||||
Held-to-maturity investments | 7,670 | 42 | 6,884 | (741 | ) | 13,855 | ||||||||||||||
Financial assets at fair value through profit or loss | 17,826 | — | 8,765 | (26,591 | ) | — | ||||||||||||||
Available-for-sale financial assets | 35,663 | 12 | 467 | (8,067 | ) | 28,075 | ||||||||||||||
Minority equity interests | 86,745 | 55 | 4,723 | (189 | ) | 91,334 | ||||||||||||||
Other non-current financial assets | 8,864 | — | — | (8,864 | ) | — | ||||||||||||||
Allowance | (59,946 | ) | (43 | ) | (4,256 | ) | 986 | (63,259 | ) | |||||||||||
Total | 93,344 | 772 | 17,668 | (54,566 | ) | 57,218 | ||||||||||||||
F-42
Changes in | Additions/ | |||||||||||||||||||||||
Balance at | Translation | Scope of | Charge for | Disposals/ | Balance at | |||||||||||||||||||
12/31/07 | Adjustment | Consolidation | the Year | Transfers | 12/31/08 | |||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||
Loans and receivables | 102,047 | (317 | ) | 1 | (52,222 | ) | (17,324 | ) | 32,185 | |||||||||||||||
Loans to associates | 78,087 | 235 | — | 36,220 | (6,085 | ) | 108,457 | |||||||||||||||||
Long-term loans to third parties | 21,872 | 206 | 1 | 4,161 | (10,441 | ) | 15,515 | |||||||||||||||||
Other non-current financial assets | 6,617 | (747 | ) | — | 564 | (798 | ) | 5,920 | ||||||||||||||||
Allowance | (4,529 | ) | (11 | ) | — | (93,167 | ) | — | (97,707 | ) | ||||||||||||||
Held-to-maturity investments | 4,606 | (54 | ) | 28 | 4,578 | (1,488 | ) | 7,670 | ||||||||||||||||
Financial assets at fair value through profit or loss | 6,142 | — | — | 17,826 | (6,142 | ) | 17,826 | |||||||||||||||||
Available-for-sale financial assets | 44,371 | (27 | ) | — | (4,449 | ) | (4,232 | ) | 35,663 | |||||||||||||||
Minority equity interests | 45,678 | (54 | ) | — | 285 | 40,836 | 86,745 | |||||||||||||||||
Other non-current financial assets | 8,864 | — | — | — | — | 8,864 | ||||||||||||||||||
Allowance | (10,171 | ) | 27 | — | (4,734 | ) | (45,068 | ) | (59,946 | ) | ||||||||||||||
Total | 157,166 | (398 | ) | 29 | (34,267 | ) | (29,186 | ) | 93,344 | |||||||||||||||
F-43
(9) | INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD |
Share of | ||||||||||||||||||||||||
Results/ | ||||||||||||||||||||||||
Balance at | Impairment | Balance at | ||||||||||||||||||||||
12/31/08 | Additions | Losses | Transfers | Disposals | 12/31/09 | |||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||
Investments accounted for using the equity method: | ||||||||||||||||||||||||
Dédalo Grupo Gráfico, S.L. and subsidiaries | — | — | (21,751 | ) | 21,751 | — | — | |||||||||||||||||
Distributors(*) | 6,446 | 168 | 2,570 | (643 | ) | (393 | ) | 8,148 | ||||||||||||||||
Promotora de Emisoras de Televisión, S.A. | 427 | — | 340 | — | (363 | ) | 404 | |||||||||||||||||
Sogecable, S.A.U. (subsidiaries) | 543 | — | (134 | ) | 303 | (25 | ) | 687 | ||||||||||||||||
Other companies | 1,687 | — | (843 | ) | 60 | (249 | ) | 655 | ||||||||||||||||
Capital payments payable | (134 | ) | — | — | — | 134 | — | |||||||||||||||||
Total | 8,969 | 168 | (19,818 | ) | 21,471 | (896 | ) | 9,894 | ||||||||||||||||
Goodwill of companies accounted for using the equity method: | 3,967 | — | — | — | (217 | ) | 3,750 | |||||||||||||||||
Total investments accounted for using the equity method: | 12,936 | 13,644 | ||||||||||||||||||||||
(*) | Val Disme, S.L., Cirpress, S.L., Beralán, S.L., Dima Distribución Integral, S.L., Distrimedios, S.L., Distribuidora de Publicaciones Boreal, S.L., Marina Bcn Distribucions, S.L., Distribuciones Papiro S.L. and subsidiaries. |
F-44
Share of | ||||||||||||||||||||||||
Results/ | ||||||||||||||||||||||||
Balance at | Impairment | Balance at | ||||||||||||||||||||||
12/31/07 | Additions | Losses | Transfers | Disposals | 12/31/08 | |||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||
Investments accounted for using the equity method: | ||||||||||||||||||||||||
Dédalo Grupo Gráfico, S.L. and subsidiaries | — | — | (10,581 | ) | 10,581 | — | — | |||||||||||||||||
Distributors(*) | 4,358 | 459 | 3,053 | (17 | ) | (1,407 | ) | 6,446 | ||||||||||||||||
Grupo Media Capital, SPGS, S.A. (subsidiaries) | — | 631 | (565 | ) | (66 | ) | — | — | ||||||||||||||||
Promotora de Emisoras de Televisión, S.A. | 2,021 | 313 | (1,874 | ) | — | (33 | ) | 427 | ||||||||||||||||
Sogecable, S.A.U. (subsidiaries) | 2,038 | 450 | (180 | ) | — | (1,765 | ) | 543 | ||||||||||||||||
Other companies | 998 | — | 681 | 224 | (216 | ) | 1,687 | |||||||||||||||||
Capital payments payable | (134 | ) | — | — | — | — | (134 | ) | ||||||||||||||||
Total | 9,281 | 1,853 | (9,466 | ) | 10,722 | (3,421 | ) | 8,969 | ||||||||||||||||
Goodwill of companies accounted for using the equity method: | 3,967 | — | — | — | — | 3,967 | ||||||||||||||||||
Total investments accounted for using the equity method: | 13,248 | 12,936 | ||||||||||||||||||||||
(*) | Val Disme, S.L., Cirpress, S.L., Beralán, S.L., Dima Distribución Integral, S.L., Distrimedios, S.L., Distribuidora de Publicaciones Boreal, S.L., Marina Bcn Distribucions, S.L., Distribuciones Papiro S.L. and subsidiaries. |
(10) | INVENTORIES |
12/31/09 | 12/31/08 | |||||||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||||||
Cost | Writedowns | Amount | Cost | Writedowns | Amount | |||||||||||||||||||
Goods held for resale | 14,299 | (10,971 | ) | 3,328 | 8,229 | — | 8,229 | |||||||||||||||||
Finished goods | 229,626 | (38,866 | ) | 190,760 | 299,013 | (31,363 | ) | 267,650 | ||||||||||||||||
Work in progress | 1,047 | — | 1,047 | 2,482 | (92 | ) | 2,390 | |||||||||||||||||
Raw materials and other supplies | 23,050 | (119 | ) | 22,931 | 27,942 | (132 | ) | 27,810 | ||||||||||||||||
Total | 268,022 | (49,956 | ) | 218,066 | 337,666 | (31,587 | ) | 306,079 | ||||||||||||||||
F-45
(11) | EQUITY |
a) | Share capital |
• | Promotora de Publicaciones, S.L., holder of 91,005,876 shares, representing 41.529% of the subscribed share capital with voting rights. | |
• | Asgard Inversiones, S.L.U., holder of 35,487,164 shares, representing 16.194% of the subscribed share capital with voting rights. | |
• | Sabara Investment, S.L., holder of 20,709,420 shares, representing 9.451% of the subscribed share capital with voting rights. | |
• | Timon, S.A., holder of 7,928,140 shares, representing 3.618% of the subscribed share capital with voting rights. |
b) | Share premium |
c) | Reserves |
F-46
d) | Reserves for first-time application of IFRSs |
e) | Prior years’ accumulated profit |
12/31/09 | 12/31/08 | |||||||
Thousands of euros | ||||||||
Press | 14,853 | 31,209 | ||||||
País | 27,424 | 26,083 | ||||||
Spanish press | (11,436 | ) | 6,730 | |||||
International press | (1,135 | ) | (1,604 | ) | ||||
Radio | 154,667 | 58,962 | ||||||
Radio in Spain | 156,918 | 21,753 | ||||||
Radio abroad | (2,251 | ) | 37,209 | |||||
Education | 185,958 | 176,843 | ||||||
Audiovisual | (163,322 | ) | (103,116 | ) | ||||
Other | 207,306 | 193,706 | ||||||
Prisa | 289,268 | 208,322 | ||||||
Other | (81,962 | ) | (14,616 | ) | ||||
Total accumulated profit | 399,462 | 357,604 | ||||||
Press | — | (1,949 | ) | |||||
Radio | (2,912 | ) | (2,751 | ) | ||||
Radio abroad | (2,912 | ) | (2,751 | ) | ||||
Audiovisual | (31 | ) | (2,047 | ) | ||||
Other | (43,520 | ) | (34,878 | ) | ||||
Total accumulated profit of companies accounted for using the equity method | (46,463 | ) | (41,625 | ) | ||||
Total prior years’ accumulated profit | 352,999 | 315,979 | ||||||
F-47
f) | Treasury shares |
2009 | 2008 | |||||||||||||||
Number | Number | |||||||||||||||
of Shares | Amount | of Shares | Amount | |||||||||||||
Thousands of euros | ||||||||||||||||
At beginning of year | 10,940,625 | 24,726 | 10,940,625 | 39,101 | ||||||||||||
Purchases | 458,921 | 884 | 40,781 | 347 | ||||||||||||
Disposals | (10,273,319 | ) | (36,204 | ) | — | — | ||||||||||
Deliveries | (258,921 | ) | (290 | ) | (40,781 | ) | (146 | ) | ||||||||
Reserve for treasury shares | — | 13,928 | — | (14,576 | ) | |||||||||||
At end of year | 867,306 | 3,044 | 10,940,625 | 24,726 | ||||||||||||
g) | Exchange differences |
h) | Translation differences |
12/31/09 | 12/31/08 | |||||||
Thousands of Euros | ||||||||
GLR Chile, Ltda. | 11,064 | (9,910 | ) | |||||
Grupo Santillana de Ediciones, S.L. and subsidiaries | (1,205 | ) | (342 | ) | ||||
Other | 83 | (294 | ) | |||||
Total | 9,942 | (10,546 | ) | |||||
i) | Capital management policy |
F-48
(12) | FINANCIAL LIABILITIES |
Drawn-Down | Drawn-Down | |||||||||||||||
Amount | Amount | |||||||||||||||
Maturing at | Maturing at | |||||||||||||||
Maturity | Limit | Short Term | Long Term | |||||||||||||
Syndicated loan and credit facility to Prisa | 2013 | 1,747,305 | 305,307 | 1,441,998 | ||||||||||||
Bridge loan to Prisa | 2010 | 1,835,837 | 1,835,837 | — | ||||||||||||
Subordinated credit facility to Prisa | 2013 | 134,000 | — | 134,000 | ||||||||||||
Syndicated loan and credit facility to Sogecable | 2011 | 750,000 | 495,000 | 225,000 | ||||||||||||
Credit facilities | 2010-2012 | 418,912 | 193,650 | 111,500 | ||||||||||||
Bank loans | 2010-2023 | 20,480 | 8,166 | 12,314 | ||||||||||||
Finance leases, interest and other | 2010-2013 | 15,705 | 8,852 | 6,851 | ||||||||||||
Loan arrangement costs | 2010-2013 | — | (50,450 | ) | (13,700 | ) | ||||||||||
Total | 4,922,239 | 2,796,362 | 1,917,963 | |||||||||||||
Drawn-Down | Drawn-Down | |||||||||||||||
Amount | Amount | |||||||||||||||
Maturing at | Maturing at | |||||||||||||||
Maturity | Limit | Short Term | Long Term | |||||||||||||
Syndicated loan and credit facility to Prisa | 2013 | 1,770,305 | 123,115 | 1,647,190 | ||||||||||||
Bridge loan to Prisa | 2010 | 1,835,837 | 1,835,837 | — | ||||||||||||
Subordinated credit facility to Prisa | 2013 | 134,000 | — | 134,000 | ||||||||||||
Syndicated loan and credit facility to Sogecable | 2011 | 930,000 | 370,000 | 450,000 | ||||||||||||
Credit facilities | 2009-2012 | 415,571 | 233,592 | 107,288 | ||||||||||||
Bank loans | 2009-2023 | 29,892 | 7,165 | 22,727 | ||||||||||||
Finance leases, interest and other | 2009-2013 | 27,176 | 18,085 | 9,090 | ||||||||||||
Loan arrangement costs | 2009-2013 | — | (55,703 | ) | (22,217 | ) | ||||||||||
Total | 5,142,781 | 2,532,091 | 2,348,078 | |||||||||||||
F-49
Thousands | ||||
Maturity | of euros | |||
2010 | 205,192 | |||
2011 | 305,685 | |||
2012 | 350,929 | |||
2013 | 410,384 | |||
1,272,190 | ||||
F-50
Thousands | ||||
Maturity | of euros | |||
2010 | 225,000 | |||
2011 | 225,000 | |||
450,000 | ||||
F-51
F-52
Nominal Value | ||||||||||||||||||||||
2009 | Outstanding | Outstanding | ||||||||||||||||||||
Company | Instrument | Expiry | Nominal Value | Fair Value | at 2010 | at 2011 | ||||||||||||||||
Prisa | Swap “Leónidas” | 2011 | 195,000 | (5,677 | ) | 147,751 | 117,751 | |||||||||||||||
Prisa | collar “Leónidas” | 2011 | 507,000 | (10,769 | ) | 384,152 | 306,152 | |||||||||||||||
Media Global SGPS | Collar | 2012 | 50,000 | (2,330 | ) | 50,000 | 50,000 | |||||||||||||||
Total | 752,000 | (18,776 | ) | 581,903 | 473,903 | |||||||||||||||||
Nominal Value | ||||||||||||||||||||||
2008 | Outstanding | Outstanding | ||||||||||||||||||||
Company | Instrument | Expiry | Nominal Value | Fair Value | at 2009 | at 2010 | ||||||||||||||||
Prisa | Swap “Leónidas” | 2011 | 195,000 | (5,831 | ) | 170,250 | 147,750 | |||||||||||||||
Prisa | Swap “Leónidas” | 2011 | 195,000 | 5,831 | 170,250 | 147,750 | ||||||||||||||||
Prisa | Collar “Leonidas” | 2011 | 585,000 | (11,995 | ) | 510,750 | 443,250 | |||||||||||||||
Prisa | Collar “Leonidas” | 2011 | 585,000 | 11,995 | 510,750 | 443,250 | ||||||||||||||||
Prisa | Basis Swap | 2009 | 1,800,000 | (2,754 | ) | 1,800,000 | — | |||||||||||||||
Prisa | Swap | 2009 | 2,100,000 | (3,644 | ) | 2,100,000 | — | |||||||||||||||
Prisa | CAP | 2009 | 2,500,000 | — | 2,500,000 | — | ||||||||||||||||
Prisa | Collar | 2009 | 2,500,000 | (12,713 | ) | 2,500,000 | — | |||||||||||||||
Media Global SGPS | Collar | 2012 | 50,000 | (1,783 | ) | 50,000 | 50,000 | |||||||||||||||
Total | 10,510,000 | (20,894 | ) | 10,312,000 | 1,232,000 | |||||||||||||||||
Sensitivity (Before Tax) | 12/31/09 | 12/31/08 | ||||||
+0.5% (Increase in interest rate curve) | 3,709 | 2,038 | ||||||
-0.5% (Decrease in interest rate curve) | (4,207 | ) | (2,039 | ) |
F-53
Company | Instrument | Expiry | Nominal Value | Fair Value | ||||||||||||||
Thousands | Thousands | (Thousands of | ||||||||||||||||
of USD | of Euros | Euros) | ||||||||||||||||
CanalSatétite Digital, S.L | Forward Plus Up&In Barrier | 2010 | 60,000 | 41,376 | 1,045 | |||||||||||||
Editora Moderna Ltda | Forward USD/BRL | 2010 | 1,308 | 908 | (280 | ) | ||||||||||||
Editora Moderna Ltda | Forward USD/BRL | 2010 | 1,308 | 908 | (284 | ) | ||||||||||||
Total | 481 | |||||||||||||||||
Company | Instrument | Expiry | Nominal Value | Fair Value | ||||||||||||||
Thousands | Thousands | (Thousands of | ||||||||||||||||
of USD | of Euros | Euros) | ||||||||||||||||
CanalSatétite Digital, S.L. | Forward USD/EUR | 2009 | 60,000 | 42,046 | (771 | ) | ||||||||||||
Editora Moderna Ltda | Forward USD/BRL | 2009 | 24,200 | 17,499 | (1,346 | ) | ||||||||||||
Santillana del Pacífico, S.A. | Forward USD/CLP | 2009 | 5,797 | 4,063 | — | |||||||||||||
Editorial Santillan, S.A. | Forward USD/COP | 2009 | 660 | 463 | — | |||||||||||||
(Colombia) | ||||||||||||||||||
Total | (2.117 | ) | ||||||||||||||||
Sensitivity (Before Tax) | 12/31/09 | 12/31/08 | ||||||
+10% (increase in USD exchange rate) | 5,034 | 5,379 | ||||||
-10% (decrease in USD exchange rate) | (1,879 | ) | (6,187 | ) |
F-54
Interest Rate | Foreign Currency | |||||||
Expiry | Derivatives | Derivatives | ||||||
Less than 3 months | (3,947 | ) | (422 | ) | ||||
3-6 months | (3,576 | ) | 288 | |||||
6-9 months | (3,119 | ) | 284 | |||||
9-12 months | (2,833 | ) | 273 | |||||
1-2 years | (4,943 | ) | — | |||||
2-3 years | (356 | ) | — | |||||
+ 3 years | — | — |
Floating | ||||||||
Expiry | Thousands of Euros | Euro Rates | ||||||
Less than 3 months | 2,044,273 | 0.5 | % | |||||
3-6 months | 202,214 | 0.6 | % | |||||
6-9 months | 18,379 | 0.9 | % | |||||
9-12 months | 342,922 | 1.3 | % | |||||
1-2 years | 934,204 | 2.0 | % | |||||
2-3 years | 483,981 | 2.5 | % | |||||
+ 3 years | 962,984 | 3.2 | % | |||||
Total | 4,988,957 | |||||||
• | Level 1: those determinable on the basis of quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
• | Level 2: those determinable on the basis of other observable inputs (that are not the quoted prices included in level 1) for the asset or liability, either directly (i.e. prices) or indirectly (i.e. price derivatives). | |
• | Level 3: those determinable on the basis of valuation techniques, which include inputs for the asset and liability that are not based on observable market data (non-observable inputs). |
F-55
(13) | NON-CURRENT FINANCIAL LIABILITIES |
(14) | LONG-TERM PROVISIONS |
Changes in | ||||||||||||||||||||||||||||
Balance at | Translation | Scope of | Charge for | Amounts | Balance at | |||||||||||||||||||||||
12/31/08 | Adjustment | Consolidation | the Year | Used | Transfers | 12/31/09 | ||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||
For taxes | 18,141 | (142 | ) | — | 602 | (1,643 | ) | — | 16,958 | |||||||||||||||||||
For third-party liability and other | 56,666 | 337 | (1,287 | ) | 3,441 | (3,930 | ) | 17,965 | 73,192 | |||||||||||||||||||
Total | 74,807 | 195 | (1,287 | ) | 4,043 | (5,573 | ) | 17,965 | 90,150 | |||||||||||||||||||
F-56
Balance at | Translation | Charge for | Amounts | Balance at | ||||||||||||||||||||
12/31/07 | Adjustment | the Year | Used | Transfers | 12/31/08 | |||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||
For taxes | 16,985 | — | 1,299 | (143 | ) | — | 18,141 | |||||||||||||||||
For third-party liability and other | 50,361 | (492 | ) | 4,006 | (4,932 | ) | 7,723 | 56,666 | ||||||||||||||||
Total | 67,346 | (492 | ) | 5,305 | (5,075 | ) | 7,723 | 74,807 | ||||||||||||||||
2009 | 2008 | 2007 | ||||||||||
Thousands of euros | ||||||||||||
Termination benefits | 19 | 782 | 1,378 | |||||||||
Other staff costs | 473 | 1,118 | 244 | |||||||||
Taxes | 602 | 1,428 | 120 | |||||||||
Other | 2,949 | 1,977 | 1,876 | |||||||||
Total | 4,043 | 5,305 | 3,618 | |||||||||
2009 | 2008 | |||||||
Thousands of euros | ||||||||
WSUA Broadcasting Corporation | 918 | 832 | ||||||
Distrimedios, S.A. | 136 | 779 | ||||||
Green Emerald Business Inc. | 601 | 518 | ||||||
Dédalo Grupo Gráfico, S.L. and subsidiaries | 32,711 | 10,961 | ||||||
Other | 740 | 3,699 | ||||||
Total | 35,106 | 16,789 | ||||||
(15) | ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE |
F-57
12/31/09 | ||||
Non-current assets | 6,706 | |||
Current assets | 250,682 | |||
Total assets | 257,388 | |||
Non-current liabilities | 2,988 | |||
Current liabilities | 202,446 | |||
Total liabilities | 205,434 | |||
(16) | OPERATING INCOME |
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Thousands of euros | ||||||||||||
Revenue from subscribers | 1,002,043 | 1,141,101 | 1,136,322 | |||||||||
Advertising sales and sponsorship | 898,618 | 1,067,070 | 1,122,268 | |||||||||
Sales of books and training | 600,466 | 579,743 | 536,468 | |||||||||
Newspaper and magazine sales | 193,248 | 209,860 | 210,519 | |||||||||
Sales of add-ons and collections | 44,395 | 73,101 | 88,089 | |||||||||
Sales of audiovisual rights and programmes | 231,722 | 347,789 | 313,712 | |||||||||
Intermediation services | 32,146 | 27,577 | 29,607 | |||||||||
Broadcasting services | 24,072 | 36,335 | 34,830 | |||||||||
Other services | 128,395 | 160,706 | 147,695 | |||||||||
Revenue | 3,155,105 | 3,643,282 | 3,619,510 | |||||||||
Income from fixed assets | 6,072 | 297,104 | 22,380 | |||||||||
Other income | 47,407 | 60,962 | 54,138 | |||||||||
Other income | 53,479 | 358,066 | 76,518 | |||||||||
Total operating income | 3,208,584 | 4,001,348 | 3,696,028 | |||||||||
F-58
(17) | OPERATING EXPENSES |
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Thousands of euros | ||||||||||||
Wages and salaries | 489,768 | 520,385 | 493,690 | |||||||||
Employee benefit costs | 99,064 | 103,202 | 98,091 | |||||||||
Termination benefits | 11,654 | 19,554 | 10,762 | |||||||||
Share-based payment costs | 694 | — | 1,023 | |||||||||
Other employee benefit costs | 18,792 | 23,541 | 20,309 | |||||||||
Total | 619,972 | 666,682 | 623,875 | |||||||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Executives | 541 | 552 | 604 | |||||||||
Middle management | 1,600 | 1,716 | 1,786 | |||||||||
Other employees | 12,846 | 12,927 | 11,042 | |||||||||
Total | 14,987 | 15,195 | 13,432 | |||||||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||||||||||||||
Women | Men | Women | Men | Women | Men | |||||||||||||||||||
Executives | 143 | 398 | 187 | 365 | 145 | 459 | ||||||||||||||||||
Middle management | 598 | 1,003 | 614 | 1,102 | 660 | 1,126 | ||||||||||||||||||
Other employees | 6,447 | 6,398 | 6,517 | 6,410 | 4,955 | 6,087 | ||||||||||||||||||
Total | 7,188 | 7,799 | 7,318 | 7,877 | 5,760 | 7,672 | ||||||||||||||||||
F-59
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Thousands of euros | ||||||||||||
Independent professional services | 192,848 | 225,896 | 223,820 | |||||||||
Leases and fees | 158,886 | 139,665 | 127,056 | |||||||||
Advertising | 99,547 | 147,591 | 144,089 | |||||||||
Intellectual property | 90,968 | 89,618 | 77,611 | |||||||||
Transport | 74,485 | 81,566 | 78,885 | |||||||||
Other outside services | 218,938 | 265,707 | 259,156 | |||||||||
Total | 835,672 | 950,043 | 910,617 | |||||||||
F-60
Year | ||||
Thousands of euros | ||||
2010 | 73,574 | |||
2011 | 70,646 | |||
2012 | 68,802 | |||
2013 | 70,159 | |||
2014 | 71,688 | |||
2015 and subsequents years | 263,282 | |||
618,151 | ||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Thousands of euros | ||||||||||||
Provisions for bad debts | 30,270 | 29,248 | 19,379 | |||||||||
Change in inventory write-downs | 22,302 | 14,321 | 6,680 | |||||||||
Change in provision for sales returns | 2,975 | 1,570 | 499 | |||||||||
Total | 55,547 | 45,139 | 26,558 | |||||||||
F-61
(18) | FINANCIAL LOSS |
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Thousands of euros | ||||||||||||
Income from current financial assets | 437 | 1,480 | 1,008 | |||||||||
Finance income from hedging transactions | 454 | 20,199 | 2,155 | |||||||||
Income from equity investments | 262 | 537 | 645 | |||||||||
Other finance income | 14,605 | 13,976 | 11,967 | |||||||||
Finance income | 15,758 | 36,192 | 15,775 | |||||||||
Interest on debt | (173,146 | ) | (275,949 | ) | (185,958 | ) | ||||||
Finance costs on hedging transactions | (33,188 | ) | (14,988 | ) | — | |||||||
Adjustments for inflation | (1,243 | ) | (2,301 | ) | (3,371 | ) | ||||||
Impairment losses on long-term loans to related companies | — | (88,309 | ) | (3,255 | ) | |||||||
Other finance costs | (44,530 | ) | (20,189 | ) | (20,352 | ) | ||||||
Finance costs | (252,107 | ) | (401,735 | ) | (212,936 | ) | ||||||
Exchange gains | 18,456 | 17,206 | 12,454 | |||||||||
Exchange losses | (18,561 | ) | (31,022 | ) | (10,522 | ) | ||||||
Exchange differences (net) | (105 | ) | (13,816 | ) | 1,932 | |||||||
Changes in value of financial instruments | 22,185 | (17,709 | ) | (34 | ) | |||||||
Financial loss | (214,269 | ) | (397,068 | ) | (195,263 | ) | ||||||
(19) | DISCONTINUED OPERATIONS |
F-62
12/31/08 | ||||||||||||
Ordinary | Discontinuation of | |||||||||||
Total | Operations | Operations | ||||||||||
(Thousands of euros) | ||||||||||||
Operating income | 21,512 | 21,512 | — | |||||||||
Operating expenses | (82,261 | ) | (42,515 | ) | (39,746 | ) | ||||||
Loss from operations | (60,749 | ) | (21,003 | ) | (39,746 | ) | ||||||
Financial loss | (17,440 | ) | (5,640 | ) | (11,800 | ) | ||||||
Result of companies accounted for using the equity method | (1,874 | ) | (1,874 | ) | — | |||||||
Loss before tax from continued operations | (80,063 | ) | (28,517 | ) | (51,546 | ) | ||||||
Income tax | 3,671 | 7,993 | (4,322 | ) | ||||||||
Result attributable to minority interests | 1,046 | 1,046 | — | |||||||||
Loss after tax from discontinued operations | (75,346 | ) | (19,478 | ) | (55.868 | ) | ||||||
12/31/08 | ||||
(Thousands of euros) | ||||
Cash flows from operating activities | (2,196 | ) | ||
Cash flows from investing activities | (1,541 | ) | ||
Cash flows from financing activities | 3,526 | |||
Changes in cash flows in the year | (211 | ) | ||
Cash and cash equivalents at beginning of year | 825 | |||
Cash and cash equivalents at end of year | 614 | |||
F-63
(20) | BUSINESS SEGMENTS |
• | Press, which groups together mainly the activities relating to the sale of newspapers and magazines, advertising and promotions; | |
• | Radio, the main source of revenue from which is the broadcasting of advertising and, in addition, the organization and management of events and the provision of other supplementary services; | |
• | Education, which includes primarily the sale of general publishing and educational books and the sale of training; and | |
• | Audiovisual, which obtains revenue mainly from the subscribers to the Digital+ platform, the broadcasting of advertising and audiovisual production. |
F-64
Eliminations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Press | Radio | Education | Audiovisual | Other* | Adjustments | Prisa Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 415,788 | 503,938 | 572,277 | 377,166 | 415,260 | 422,755 | 616,885 | 607,650 | 560,000 | 1,770,743 | 2,169,095 | 2,105,729 | 127,326 | 470,438 | 164,523 | (99,324 | ) | (165,033 | ) | (129,256 | ) | 3,208,584 | 4,001,348 | 3,696,028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— External sales | 324,971 | 350,247 | 409,609 | 364,238 | 394,024 | 401,610 | 613,307 | 600,565 | 553,322 | 1,758,233 | 2,122,950 | 2,091,319 | 137,781 | 217,117 | 236,440 | 10,054 | 316,445 | 3,728 | 3,208,584 | 4,001,348 | 3,696,028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Inter-segment sales | 90,817 | 153,691 | 162,668 | 12,928 | 21,236 | 21,145 | 3,578 | 7,085 | 6,678 | 12,510 | 46,145 | 14,410 | (10,455 | ) | 253,321 | (71,917 | ) | (109,378 | ) | (481,478 | ) | (132,984 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | (386,467 | ) | (452,373 | ) | (450,769 | ) | (295,139 | ) | (328,581 | ) | (320,969 | ) | (526,881 | ) | (530,642 | ) | (484,944 | ) | (1,565,991 | ) | (1,942,350 | ) | (1,886,536 | ) | (159,335 | ) | (323,007 | ) | (167,485 | ) | 94,211 | 273,796 | 134,606 | (2,839,602 | ) | (3,303,157 | ) | (3,176,097 | ) | |||||||||||||||||||||||||||||||||||||||||||||
— Cost of materials used | (126,526 | ) | (164,438 | ) | (169,823 | ) | (3,297 | ) | (3,301 | ) | (2,423 | ) | (170,270 | ) | (166,380 | ) | (161,400 | ) | (817,640 | ) | (1,096,714 | ) | (1,042,989 | ) | (14,561 | ) | (17,631 | ) | (16,126 | ) | 6,646 | 12,714 | 12,193 | (1,125,648 | ) | (1,435,750 | ) | (1,380,568 | ) | |||||||||||||||||||||||||||||||||||||||||||||
— Staff costs | (106,029 | ) | (120,556 | ) | (112,485 | ) | (113,358 | ) | (119,939 | ) | (111,551 | ) | (143,013 | ) | (148,180 | ) | (131,176 | ) | (207,171 | ) | (217,369 | ) | (212,227 | ) | (50,422 | ) | (60,736 | ) | (56,512 | ) | 21 | 98 | 76 | (619,972 | ) | (666,682 | ) | (623,875 | ) | |||||||||||||||||||||||||||||||||||||||||||||
— Depreciations and amortisation charge | (10,775 | ) | (14,245 | ) | (14,215 | ) | (13,966 | ) | (12,986 | ) | (11,117 | ) | (40,964 | ) | (36,027 | ) | (33,944 | ) | (124,995 | ) | (129,275 | ) | (165,625 | ) | (6,140 | ) | (6,623 | ) | (6,535 | ) | 183 | 221 | (2 | ) | (196,657 | ) | (198,935 | ) | (231,438 | ) | ||||||||||||||||||||||||||||||||||||||||||||
— Outside services | (130,461 | ) | (151,814 | ) | (153,234 | ) | (160,462 | ) | (189,486 | ) | (193,026 | ) | (151,376 | ) | (158,587 | ) | (146,829 | ) | (402,774 | ) | (473,074 | ) | (451,719 | ) | (80,846 | ) | (101,456 | ) | (81,145 | ) | 90,247 | 124,374 | 115,336 | (835,672 | ) | (950,043 | ) | (910,617 | ) | |||||||||||||||||||||||||||||||||||||||||||||
— Change in operating provisions | (12,503 | ) | (1,120 | ) | (1,008 | ) | (4,033 | ) | (2,783 | ) | (2,473 | ) | (17,087 | ) | (19,237 | ) | (9,868 | ) | (18,030 | ) | (21,742 | ) | (13,068 | ) | (3,893 | ) | (257 | ) | 79 | (1 | ) | — | (220 | ) | (55,547 | ) | (45,139 | ) | (26,558 | ) | ||||||||||||||||||||||||||||||||||||||||||||
— Other expenses | (173 | ) | (200 | ) | (4 | ) | (23 | ) | (86 | ) | (379 | ) | (4,171 | ) | (2,231 | ) | (1,727 | ) | 4,619 | (4,176 | ) | (908 | ) | (3,473 | ) | (136,304 | ) | (7,246 | ) | (2,885 | ) | 136,389 | 7,223 | (6,106 | ) | (6,608 | ) | (3,041 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Profit from operations | 29,321 | 51,565 | 121,508 | 82,027 | 86,679 | 101,786 | 90,004 | 77,008 | 75,056 | 204,752 | 226,745 | 219,193 | (32,009 | ) | 147,431 | (2,962 | ) | (5,113 | ) | 108,763 | 5,350 | 368,982 | 698,191 | 519,931 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance income | 992 | 2,562 | 1,882 | 1,215 | 1,774 | 1,548 | 2,604 | 3,384 | 2,312 | 14,258 | 5,587 | 4,162 | 148,826 | 447,913 | 201,343 | (152,591 | ) | (405,767 | ) | (189,854 | ) | 15,304 | 55,453 | 21,393 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance costs | (459 | ) | (2,882 | ) | (1,051 | ) | (2,893 | ) | (7,117 | ) | (7,819 | ) | (10,489 | ) | (10,012 | ) | (8,441 | ) | (58,762 | ) | (72,661 | ) | (96,325 | ) | (173,799 | ) | (379,970 | ) | (128,806 | ) | 16,934 | 33,937 | 23,854 | (229,468 | ) | (438,705 | ) | (218,588 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Exchange differences (net) | (22 | ) | 210 | (175 | ) | (1,227 | ) | 1,495 | 523 | (3,372 | ) | (10,942 | ) | (33 | ) | 4,478 | (5,829 | ) | 4,070 | 38 | 1,248 | (2,452 | ) | — | 2 | (1 | ) | (105 | ) | (13,816 | ) | 1,932 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial profit (loss) | 511 | (110 | ) | 656 | (2,905 | ) | (3,848 | ) | (5,748 | ) | (11,257 | ) | (17,570 | ) | (6,162 | ) | (40,026 | ) | (72,903 | ) | (88,093 | ) | (24,935 | ) | 69,191 | 70,085 | (135,657 | ) | (371,828 | ) | (166,001 | ) | (214,269 | ) | (397,068 | ) | (195,263 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Result of companies accounted for using the equity method | — | (16 | ) | 406 | (169 | ) | 399 | 136 | — | — | — | (299 | ) | (242 | ) | (6,438 | ) | 2,567 | 2,702 | 3,111 | (22,257 | ) | (10,435 | ) | (29,271 | ) | (20,158 | ) | (7,592 | ) | (32,056 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from other investments | (3,195 | ) | (4,399 | ) | (2,929 | ) | (592 | ) | (20 | ) | (88 | ) | — | — | — | — | — | — | (22,152 | ) | (10,006 | ) | (34,144 | ) | 21,683 | 13,075 | 33,549 | (4,256 | ) | (1,350 | ) | (3,612 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Profit before tax from continuing operations | 26,637 | 47,040 | 119,641 | 78,361 | 83,210 | 96,086 | 78,747 | 59,438 | 68,894 | 164,427 | 153,600 | 124,662 | (76,529 | ) | 209,318 | 36,090 | (141,344 | ) | (260,425 | ) | (156,373 | ) | 130,299 | 292,181 | 289,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax | (7,944 | ) | (12,370 | ) | (33,977 | ) | (21,752 | ) | (13,902 | ) | (16,923 | ) | (27,753 | ) | (20,806 | ) | (20,675 | ) | (63,118 | ) | (51,216 | ) | (33,410 | ) | 47,813 | 49 | 82,018 | 9,709 | 7,810 | (3,952 | ) | (63,045 | ) | (90,435 | ) | (26,919 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Profit from continuing operations | 18,693 | 34,670 | 85,664 | 56,609 | 69,308 | 79,163 | 50,994 | 38,632 | 48,219 | 101,309 | 102,384 | 91,252 | (28,716 | ) | 209,367 | 118,108 | (131,635 | ) | (252,615 | ) | (160,325 | ) | 67,254 | 201,746 | 262,081 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit after tax from discontinued operations | (1,276 | ) | — | — | — | — | — | (1,654 | ) | — | — | 501 | (75,346 | ) | — | — | — | — | — | — | — | (2,429 | ) | (75,346 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated profit for the year | 17,417 | 34,670 | 85,664 | 56,609 | 69,308 | 79,163 | 49,340 | 38,632 | 48,219 | 101,810 | 27,038 | 91,252 | (28,716 | ) | 209,367 | 118,108 | (131,635 | ) | (252,615 | ) | (160,325 | ) | 64,825 | 126,400 | 262,081 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minority interests | (1,569 | ) | (1,928 | ) | (2,778 | ) | (2,504 | ) | (3,548 | ) | (3,844 | ) | (56 | ) | (15 | ) | (183 | ) | 13,981 | 6,983 | (37,312 | ) | (281 | ) | (514 | ) | (789 | ) | (23,917 | ) | (44,382 | ) | (25,202 | ) | (14,346 | ) | (43,404 | ) | (70,108 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Profit attributable to the Parent | 15,848 | 32,742 | 82,886 | 54,105 | 65,760 | 75,319 | 49,284 | 38,617 | 48,036 | 115,791 | 34,021 | 53,940 | (28,997 | ) | 208,853 | 117,319 | (155,552 | ) | (296,997 | ) | (185,527 | ) | 50,479 | 82,996 | 191,973 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | 305,286 | 344,149 | 331,596 | 535,977 | 533,226 | 557,127 | 515,522 | 490,233 | 498,150 | 2,983,319 | 2,893,124 | 2,885,905 | 6,217,779 | 6,299,994 | 4,532,454 | (2,364,831 | ) | (2,453,640 | ) | (2,278,872 | ) | 8,193,052 | 8,107,086 | 6,526,360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Non-current | 113,142 | 128,526 | 134,043 | 341,597 | 334,642 | 336,375 | 190,003 | 182,396 | 189,949 | 1,676,252 | 1,787,326 | 1,926,780 | 5,837,597 | 5,793,234 | 3,909,173 | (1,737,825 | ) | (1,713,854 | ) | (1,664,265 | ) | 6,420,766 | 6,512,270 | 4,832,055 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Current | 191,706 | 215,623 | 197,553 | 194,272 | 198,571 | 220,752 | 325,519 | 307,837 | 308,201 | 1,041,921 | 1,105,798 | 959,125 | 380,182 | 505,452 | 549,786 | (618,702 | ) | (738,984 | ) | (613,999 | ) | 1,514,898 | 1,594,297 | 1,621,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Assets classified as held for sale | 438 | — | — | 108 | 13 | — | — | — | — | 265,146 | — | — | — | 1,308 | 73,495 | (8,304 | ) | (802 | ) | (608 | ) | 257,388 | 519 | 72,887 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and liabilities | 305,286 | 344,149 | 331,596 | 535,977 | 533,226 | 557,127 | 515,522 | 490,233 | 498,150 | 2,983,319 | 2,893,124 | 2,885,905 | 6,217,779 | 6,299,994 | 4,532,454 | (2,364,831 | ) | (2,453,640 | ) | (2,278,872 | ) | 8,193,052 | 8,107,086 | 6,526,360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Equity | 126,208 | 138,506 | 140,621 | 369,825 | 309,492 | 250,699 | 247,215 | 226,418 | 225,695 | 515,328 | 485,619 | 416,371 | 1,516,989 | 1,528,111 | 1,595,562 | (1,402,546 | ) | (1,429,910 | ) | (1,275,401 | ) | 1,373,019 | 1,258,236 | 1,353,547 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Non-current | 1,052 | 3,807 | 3,057 | 15,110 | 15,122 | 43,118 | 24,566 | 27,504 | 31,579 | 735,775 | 926,743 | 1,120,879 | 1,908,037 | 2,069,136 | 2,325,912 | (333,074 | ) | (290,943 | ) | (399,703 | ) | 2,351,466 | 2,751,369 | 3,124,842 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Current | 178,026 | 201,836 | 187,918 | 151,042 | 208,612 | 263,310 | 243,741 | 236,311 | 240,876 | 1,524,393 | 1,480,762 | 1,348,655 | 2,792,753 | 2,702,747 | 610,980 | (626,822 | ) | (732,787 | ) | (603,768 | ) | 4,263,133 | 4,097,481 | 2,047,971 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— Liabilities classified as held for sale | — | — | — | — | — | — | — | — | — | 207,823 | — | — | — | — | — | (2,389 | ) | — | — | 205,434 | — | — |
* | “Other” include GDM Group, Digital, Distribution, Promotora de Informaciones, S.A., Prisaprint, S.L., Promotora de Actividades América 2010, S.L,, Prisa División Inmobiliaria, S.L., Prisa Inc., Prisa División Internacional, S.L., Prisa Finance (Netherlands) BV, GLP Colombia, Ltda., Vertix, SGPS, S.A. y Oficina del Autor, S.L. |
F-65
2009 | 2008 | 2007 | ||||||||||||||||||||||||||||||||||
Pay | Free-to-Air | Pay | Free-to-Air | Pay | Free-to-Air | |||||||||||||||||||||||||||||||
Television | Television | Other | Television | Television | Other | Television | Television | Other | ||||||||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||||||||||
Revenue | 1,244,633 | 422,035 | 91,565 | 1,524,908 | 479,177 | 118,475 | 1,507,681 | 470,609 | 89,009 | |||||||||||||||||||||||||||
Other income | 4,728 | 5,908 | 1,874 | 17,361 | 10,863 | 17,311 | 14,350 | 3,515 | 20,565 | |||||||||||||||||||||||||||
TOTAL OPERATING INCOME | 1,249,361 | 427,943 | 93,439 | 1,542,269 | 490,040 | 136,786 | 1,522,031 | 474,124 | 109,574 | |||||||||||||||||||||||||||
Cost of materials used | (628,826 | ) | (181,070 | ) | (7,744 | ) | (819,576 | ) | (277,123 | ) | (15 | ) | (837,004 | ) | (249,311 | ) | 43,326 | |||||||||||||||||||
Staff costs | (102,971 | ) | (53,996 | ) | (50,204 | ) | (108,328 | ) | (58,397 | ) | (50,644 | ) | (105,147 | ) | (63,850 | ) | (43,230 | ) | ||||||||||||||||||
Other operating expenses | (330,282 | ) | (118,143 | ) | (92,755 | ) | (376,539 | ) | (123,897 | ) | (127,831 | ) | (403,891 | ) | (136,124 | ) | (91,305 | ) | ||||||||||||||||||
TOTAL OPERATING EXPENSES | (1,062,079 | ) | (353,209 | ) | (150,703 | ) | (1,304,443 | ) | (459,417 | ) | (178,490 | ) | (1,346,042 | ) | (449,285 | ) | (91,209 | ) | ||||||||||||||||||
PROFIT/(LOSS) FROM OPERATIONS | 187,282 | 74,734 | (57,264 | ) | 237,826 | 30,623 | (41,704 | ) | 175,989 | 24,839 | 18,365 | |||||||||||||||||||||||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Non-current assets | 132,662 | 135,317 | 170,549 | |||||||||
Current assets | 123,393 | 304,316 | 410,924 | |||||||||
Current liabilities | (98,484 | ) | (246,146 | ) | (302,840 | ) |
Europe | America | Total | ||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||||||||||||||
Revenue | 2,647,693 | 3,151,014 | 3,146,257 | 507,412 | 492,268 | 473,253 | 3,155,105 | 3,643,282 | 3,619,510 | |||||||||||||||||||||||||||
Other income | 46,246 | 350,588 | 68,142 | 7,233 | 7,478 | 8,376 | 53,479 | 358,066 | 76,518 | |||||||||||||||||||||||||||
Profit before minority interests and tax | 64,793 | 242,723 | 234,446 | 65,506 | 49,458 | 54,554 | 130,299 | 292,181 | 289,000 | |||||||||||||||||||||||||||
Total assets | 7,707,598 | 7,689,065 | 6,050,410 | 485,455 | 418,021 | 475,950 | 8,193,052 | 8,107,086 | 6,526,360 | |||||||||||||||||||||||||||
F-66
(21) | TAX MATTERS |
F-67
a) | Reconciliation of the accounting profit to the taxable profit |
12/31/08 | ||||||||||||||||||||
Consolidated | ||||||||||||||||||||
12/31/09 | Income | 12/31/07 | ||||||||||||||||||
Total | Statement | Equity | Total | Total | ||||||||||||||||
CONSOLIDATED NET PROFIT UNDER IFRSs | 130,299 | 292,181 | — | 292,181 | 289,000 | |||||||||||||||
Tax charge at 30% | 39,090 | 87,654 | — | 87,654 | 86,700 | |||||||||||||||
Consolidation adjustments | 6,047 | 3,245 | — | 3,245 | 7,762 | |||||||||||||||
Permanent differences(1) | 15,461 | 44,287 | 8,754 | 53,041 | 2,279 | |||||||||||||||
Tax loss carryforwards | (1,610 | ) | (9,164 | ) | — | (9,164 | ) | (21,642 | ) | |||||||||||
Tax credits and tax relief(2) | (487 | ) | (30,495 | ) | — | (30,495 | ) | (11,775 | ) | |||||||||||
Effect of applying different tax rates(3) | (1,210 | ) | (8,964 | ) | — | (8,964 | ) | 3,937 | ||||||||||||
INCOME TAX FOR 2009 | 57,291 | 86,563 | 8,754 | 95,317 | 67,261 | |||||||||||||||
ADJUSTMENT OF PRIOR YEARS’ TAX(4) | 521 | (639 | ) | — | (639 | ) | (44,128 | ) | ||||||||||||
FOREIGN TAX EXPENSE(5) | 2,191 | 2,546 | — | 2,546 | 2,588 | |||||||||||||||
EMPLOYEE PROFIT SHARING(6) | 3,042 | 1,965 | — | 1,965 | 1,198 | |||||||||||||||
TOTAL INCOME TAX | 63,045 | 90,435 | 8,754 | 99,189 | 26,919 |
(1) | The permanent differences are mainly due to: (i) certain non-deductible costs and provisions; (ii) the exemption of foreign-source dividends; and (iii) foreign tax expenses arising from withholdings at source. | |
(2) | In calculating their respective income tax expense or income, the Spanish Prisa Group companies availed themselves of the tax benefits provided for in Chapter IV of Title VI of the Consolidated Corporation Tax Law, approved by Legislative Royal Decree 4/2004, of 5 March, which amounted to EUR 1,190 thousands, in calculating the income tax expense for the year. |
(3) | Relating to the effect of taxation of profits from American and European subsidiaries at different rates. | |
(4) | Including the impact on the income statement of the adjustment of income tax from prior years. | |
(5) | This relates to the expense for taxes paid abroad and arose from withholdings at source from the income from exports of services provided by the Group’s Spanish companies abroad. | |
(6) | This is an additional component of the income tax expense in countries such as Mexico. |
F-68
b) | Deferred tax assets and liabilities |
12/31/09 | Additions | Disposals | 12/31/08 | 12/31/07 | ||||||||||||||||
Provisions | 5,995 | 1,991 | (2,314 | ) | 6,318 | 10,286 | ||||||||||||||
Non-capitalisable assets | 37 | — | (208 | ) | 245 | 9,753 | ||||||||||||||
Tax loss carryforwards | 1,003,561 | 3,920 | (7,947 | ) | 1,007,588 | 1,061,918 | ||||||||||||||
Unused tax credits recognised | 282,169 | 14,987 | (3,545 | ) | 270,727 | 271,946 | ||||||||||||||
Others | 22,058 | 11,248 | (2,787 | ) | 13,597 | 11,072 | ||||||||||||||
Total | 1,313,820 | 32,146 | (16,801 | ) | 1,298,475 | 1,364,975 | ||||||||||||||
12/31/09 | Additions | Disposals | 12/31/08 | 12/31/07 | ||||||||||||||||
Investment valuation provisions and amortisations of goodwill | 64,366 | 129 | (5,896 | ) | 70,133 | 96,713 | ||||||||||||||
Deferral for reinvestment of extraordinary income | 6,347 | 85 | (240 | ) | 6,502 | 6,674 | ||||||||||||||
Accelerated depreciation and amortisation | 522 | — | (21 | ) | 543 | 762 | ||||||||||||||
Exchange differences | — | — | (47 | ) | 47 | 168 | ||||||||||||||
Other | 1,564 | 232 | (721 | ) | 2,053 | 8,614 | ||||||||||||||
Total | 72,799 | 446 | (6,925 | ) | 79,278 | 112,931 | ||||||||||||||
F-69
Last Year for | Not | |||||||||||||||
Year Incurred | Offset | Amount | Recognised | Recognised | ||||||||||||
1995 | 2010 | 163 | — | 163 | ||||||||||||
1996 | 2011 | 738 | — | 738 | ||||||||||||
1997 | 2012 | 78,347 | 77,185 | 1,162 | ||||||||||||
1998 | 2013 | 246,996 | 228,361 | 18,635 | ||||||||||||
1999 | 2014 | 447,543 | 372,031 | 75,512 | ||||||||||||
2000 | 2015 | 577,502 | 515,680 | 61,822 | ||||||||||||
2001 | 2016 | 483,310 | 424,676 | 58,634 | ||||||||||||
2002 | 2017 | 644,744 | 558,323 | 86,421 | ||||||||||||
2003 | 2018 | 973,925 | 897,809 | 76,116 | ||||||||||||
2004 | 2019 | 262,366 | 197,725 | 64,641 | ||||||||||||
2005 | 2020 | 9,593 | 895 | 8,698 | ||||||||||||
2006 | 2021 | 67,271 | 61,558 | 5,713 | ||||||||||||
2007 | 2022 | 3,932 | — | 3,932 | ||||||||||||
2008 | 2023 | 7,241 | 1,503 | 5,738 | ||||||||||||
2009 | 2024 | 8,312 | 7,568 | 744 | ||||||||||||
Total | 3,811,983 | 3,343,314 | 468,669 | |||||||||||||
F-70
Bolivia | Portugal | USA | Chile | Brazil | Argentina | Mexico | Total | |||||||||||||||||||||||||
1993 | — | — | 1,172 | — | — | — | — | 1,172 | ||||||||||||||||||||||||
1994 | — | — | 1,197 | — | — | — | — | 1,197 | ||||||||||||||||||||||||
1995 | — | — | 1,428 | — | — | — | — | 1,428 | ||||||||||||||||||||||||
1996 | — | — | 100 | — | — | — | — | 100 | ||||||||||||||||||||||||
1997 | — | — | 1,599 | — | — | — | — | 1,599 | ||||||||||||||||||||||||
1998 | — | — | 1,571 | — | — | — | — | 1,571 | ||||||||||||||||||||||||
1999 | — | — | 2,679 | — | — | — | — | 2,679 | ||||||||||||||||||||||||
2000 | — | — | 3,526 | — | — | — | — | 3,526 | ||||||||||||||||||||||||
2001 | — | — | 2,964 | — | — | — | 91 | 3,055 | ||||||||||||||||||||||||
2002 | — | — | 1,700 | — | — | — | 161 | 1,861 | ||||||||||||||||||||||||
2003 | — | — | 2,592 | — | — | — | 31 | 2,623 | ||||||||||||||||||||||||
2004 | — | 1,550 | 2,404 | — | — | — | 28 | 3,982 | ||||||||||||||||||||||||
2005 | — | 4,220 | 1,538 | — | — | 68 | — | 5,826 | ||||||||||||||||||||||||
2006 | — | 6,195 | 1,743 | — | — | 114 | 508 | 8,560 | ||||||||||||||||||||||||
2007 | — | 1,895 | 1,034 | — | 283 | 142 | 160 | 3,514 | ||||||||||||||||||||||||
2008 | 269 | 2,360 | 2,961 | 622 | 250 | 114 | 591 | 7,167 | ||||||||||||||||||||||||
2009 | — | 44 | 2,812 | 14,270 | 131 | 35 | 1,044 | 18,336 | ||||||||||||||||||||||||
TOTAL | 269 | 16,264 | 33,020 | 14,892 | 664 | 473 | 2,614 | 68,196 | ||||||||||||||||||||||||
Recognised | — | 3,700 | — | — | — | — | — | 3,700 | ||||||||||||||||||||||||
Not recognised | 269 | 12,564 | 33,020 | 14,892 | 664 | 473 | 2,614 | 64,496 | ||||||||||||||||||||||||
Carryforward period | Unlimited | 6 years | 20 years | Unlimited | Unlimited | 5 years | 10 years | — | ||||||||||||||||||||||||
Year Earned | Amount | Last Year for Use | ||||||
1999 | 1,424 | 2009 | ||||||
2000 | 3,297 | 2010 | ||||||
2001 | 5,666 | 2011 | ||||||
2002 | 2,218 | 2012 | ||||||
2003 | 1,637 | 2013 | ||||||
2004 | 101 | 2014 | ||||||
2005 | 107 | 2015 | ||||||
2006 | 88 | 2016 | ||||||
2007 | 36 | 2017 | ||||||
2008 | 8 | 2018 | ||||||
TOTAL | 14,582 |
F-71
c) | Years open for review by the tax authorities |
Company | Tax | Years | ||
Parent- | ||||
Promotora de Informaciones, S.A. | Consolidated income tax | 1992 to 1996 | ||
Subsidiaries- | ||||
Diario El País, S.L | Personal income tax withholdings | 1994 to 1996 | ||
Sociedad Española de Radiodifusión, S.L | Income tax | 1990 and 1992 | ||
Withholdings from income from | 1993 | |||
movable capital |
F-72
Company | Years | |
Parent- | ||
Promotora de Informaciones, S.A. | June 2000 to May 2004 | |
Subsidiaries- | ||
Diario El País, S.L | June 2000 to May 2004 | |
Sociedad Española de Radiodifusión, S.L | June 2000 to May 2004 | |
Gerencia de Medios, S.A. | January 2001 to December 2003 | |
Itaca, S.L | January 2001 to December 2002 | |
Mateu Cromo Artes Gráficas, S.A. | January 2001 to December 2002 | |
Promotora de Emisoras de Televisión, S.A. | January 2001 to December 2003 | |
Grupo Empresarial de Medios Impresos, S.L | January 2001 to December 2003 | |
Grupo Santillana de Ediciones, S.L | January 2001 to December 2003 | |
Santillana Educación, S.L | January 2001 to December 2003 | |
Santillana Ediciones Generales, S.L | January 2001 to December 2003 |
(22) | DISTRIBUTION OF PROFIT |
F-73
Amount | ||||
Distributable profit- Profit for the year | 110,281 | |||
Distribution- Dividends (EUR 0.184 per share) | 38,542 | |||
Directors’ remuneration | 1,386 | |||
To bylaw-stipulated reserve | 77 | |||
To legal reserve | 31 | |||
To voluntary reserves | Remainder |
(23) | EARNINGS PER SHARE |
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Profit for the year from continuing operations attributable to the Parent (thousands of euros) | 52,908 | 158,342 | 191,973 | |||||||||
Loss after tax from discontinued operations (thousands of euros) | (2,429 | ) | (75,346 | ) | — | |||||||
Profit for the year attributable to the Parent (thousands of euros) | 50,479 | 82,996 | 191,973 | |||||||||
Weighted average number of shares outstanding (thousands of shares) | 219,135 | 219,135 | 207,872 | |||||||||
Basic earnings per share of continuing operations (euros) | 0.24 | 0.72 | 0.92 | |||||||||
Basic loss per share of discontinued operations (euros) | (0.01 | ) | (0.34 | ) | — | |||||||
Basic earnings per share (euros) | 0.23 | 0.38 | 0.92 | |||||||||
(24) | EVENTS AFTER THE BALANCE SHEET DATE |
F-74
(25) | RELATED PARTY TRANSACTIONS |
12/31/09 | 12/31/08 | |||||||
Accounts receivable | ||||||||
Trade receivables | 10,890 | 13,479 | ||||||
Long-term loans | 100,473 | 108,454 | ||||||
Short-term loans | 4,083 | 2,308 | ||||||
Total | 115,446 | 124,241 | ||||||
Accounts payable | ||||||||
Trade payables | 9,633 | 26,757 | ||||||
Other payables | 167 | — | ||||||
Capital payments payable | — | 134 | ||||||
Total | 9,800 | 26,891 | ||||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||||||||||||||
Group | Group | Group | ||||||||||||||||||||||
Employees, | Employees, | Employees, | ||||||||||||||||||||||
Directors and | Companies or | Directors and | Companies or | Directors and | Companies or | |||||||||||||||||||
Executives | Entities | Executives | Entities | Executives | Entities | |||||||||||||||||||
Services received | 9,114 | 68,296 | 4,596 | 78,628 | 2,780 | 37,154 | ||||||||||||||||||
Other expenses | 19,023 | — | 21,016 | — | 16,803 | — | ||||||||||||||||||
Total expenses | 28,137 | 68,296 | 25,612 | 78,628 | 19,583 | 37,154 | ||||||||||||||||||
Finance income | — | 1,140 | — | 2,031 | — | — | ||||||||||||||||||
Services rendered | — | 17,215 | — | 17,446 | — | — | ||||||||||||||||||
Total income | — | 18,355 | — | 19,477 | — | — | ||||||||||||||||||
F-75
12/31/09 | 12/31/08 | |||||||||||||||||||||||
Group | Group | |||||||||||||||||||||||
Employees, | Employees, | |||||||||||||||||||||||
Significant | Companies | Other Related | Significant | Companies | Other Related | |||||||||||||||||||
Shareholders | or Entities | Parties | Shareholders | or Entities | Parties | |||||||||||||||||||
Financing agreements: loans | — | 99,864 | — | — | 97,192 | — | ||||||||||||||||||
Guarantees provided (see Note 27) | — | 130,000 | 28,763 | — | 74,765 | 35,688 | ||||||||||||||||||
Commitments/guarantees cancelled (see Note 27) | — | — | — | — | 15,000 | — | ||||||||||||||||||
Dividends and other distributed profit | — | — | — | 25,914 | — | — | ||||||||||||||||||
Other transactions | — | — | — | — | — | — |
(26) | REMUNERATION AND OTHER BENEFITS OF DIRECTORS |
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Thousands of euros | ||||||||||||
Fixed remuneration | 3,068 | 3,662 | 3,789 | |||||||||
Variable remuneration | 2,560 | 5,689 | 3,215 | |||||||||
Attendance fees | 2,341 | 2,837 | 1,445 | |||||||||
Bylaw-stipulated directors’ emoluments | 398 | 1,806 | 1,714 | |||||||||
Other | 5,330 | 153 | 115 | |||||||||
Total | 13,697 | 14,147 | 10,278 | |||||||||
F-76
Percentage of | ||||||
Owner | Investee | Ownership (%) | Functions | |||
Juan Luis Cebrián Echarri | Le Monde, S.A. | — | Director | |||
Juan Luis Cebrián Echarri | Lambrakis Press, S.A. | Member of the Board of Directors | ||||
Gregorio Marañón y Bertrán de Lis | Universal Music Spain, S.L. | — | Chairman | |||
Borja Pérez Arauna | Tuenti Technologies, S.L. | — | Representative of the director Qualitas Venture Capital, S.A., SCR de régimen simplificado. |
(27) | GUARANTEE COMMITMENTS TO THIRD PARTIES |
F-77
(28) | FUTURE COMMITMENTS |
Thousands | ||||
Year | of Euros | |||
2010 | 570,782 | |||
2011 | 427,645 | |||
2012 | 162,709 | |||
2013 | 46,019 | |||
2014 | 39,792 | |||
2015 and subsequent years | 78,496 | |||
1,325,443 | ||||
(29) | LEGAL MATTERS |
(30) | LITIGATION AND CLAIMS IN PROGRESS |
F-78
F-79
F-80
F-81
F-82
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Education | ||||||||||||||
Full consolidation | ||||||||||||||
Aguilar A.T.A., S.A. de Ediciones | Leandro N. Alem. 720. Buenos Aires. 1001. Argentina | Publishing | Ediciones Santillana, S.A. (Argentina) | 1 share | ||||||||||
Ítaca, S.L. | 5.00 | % | ||||||||||||
Santillana Ediciones Generales, S.L. | 95.00 | % | ||||||||||||
Aguilar Chilena de Ediciones, S.A. | Dr. Aníbal Ariztía 1444. Providencia. Santiago de Chile. Chile | Publishing | Ítaca, S.L. | 0.03 | % | |||||||||
Santillana Ediciones Generales, S.L. | 99.97 | % | ||||||||||||
Avalia Qualidade Educacional Ltda. | Avenida São Gabriel. 201 Andar 14 Cj.1408-1409. CEP 01435-0001. Sao Paulo. Brazil | Publishing | Santillana Educación, S.L. | 91.00 | % | |||||||||
Canal de Editoriales, S.A. | Juan Bravo, 38. Madrid | Retail sales | Grupo Santillana de Ediciones, S.L. | 99.14 | % | 2/91 | ||||||||
Constancia Editores, S.A. | Estrada da Outorela 118, 2795. Carnaxide Linda a Velha. Portugal | Publishing | Ítaca, S.L. | 0.00 | % | |||||||||
Santillana Educación, S.L. | 100.00 | % | ||||||||||||
Distribuidora y Editora Aguilar A.T.A, S.A. | Calle 80, N 10-23. Santa Fé de Bogotá. Colombia | Publishing | Ediciones Grazalema, S.L. | 0.01 | % | |||||||||
Edicions Obradoiro, S.L. | 0.01 | % | ||||||||||||
Edicions Voramar, S.A. | 0.01 | % | ||||||||||||
Ítaca, S.L. | 5.01 | % | ||||||||||||
Santillana Ediciones Generales, S.L. | 94.97 | % | ||||||||||||
Distribuidora y Editora Richmond, S.A. | Calle 80, N 10-23. Santa Fé de Bogotá. Colombia | Publishing | Ediciones Grazalema, S.L. | 0.10 | % | |||||||||
Edicions Obradoiro, S.L. | 0.10 | % | ||||||||||||
Edicions Voramar, S.A. | 0.10 | % | ||||||||||||
Ítaca, S.L. | 4.80 | % | ||||||||||||
Santillana Educación, S.L. | 94.90 | % | ||||||||||||
Ediciones Aguilar Venezolana, S.A. | Rómulo Gallegos. Edificio Zulia 1o. Caracas. Venezuela | Publishing | Editorial Santillana, S.A. (Venezuela) | 100.00 | % | |||||||||
Ediciones Grazalema, S.L. | Rafael Beca Mateos, 3. Seville | Publishing | Ítaca, S.L. | 0.02 | % | 2/91 | ||||||||
Santillana Educación, S.L. | 99.98 | % | ||||||||||||
Ediciones Santillana Inc. | 1506 Roosevelt Avenue. Guaynabo. Puerto Rico | Publishing | Santillana Educación, S.L. | 100.00 | % | |||||||||
Ediciones Santillana, S.A. (Argentina) | Leandro N. Alem. 720. Buenos Aires. 1001. Argentina | Publishing | Ítaca, S.L. | 5.00 | % | |||||||||
Santillana Educación, S.L. | 95.00 | % | ||||||||||||
Ediciones Santillana, S.A. (Uruguay) | Constitución, 1889 - 11800. Montevideo. Uruguay | Publishing | Santillana Educación, S.L. | 100.00 | % |
F-83
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Edicions Obradoiro, S.L. | Ruela de Entrecercos. 2 2o B. 15705. Santiago de Compostela | Publishing | Ítaca, S.L. | 0.01 | % | 2/91 | ||||||||
Santillana Educación, S.L. | 99.99 | % | ||||||||||||
Edicions Voramar, S.A. | Valencia, 44. 46210. Pincaya. Valencia | Publishing | Ítaca, S.L. | 0.01 | % | 2/91 | ||||||||
Santillana Educación, S.L. | 99.99 | % | ||||||||||||
Editora Fontanar, Ltda. | Rua Cosme Velho, 103. Bairro Cosme Velho. Municipio do Rio de Janeiro. Brazil | Publishing | Editora Moderna Ltda. | 3 shares | ||||||||||
Editora Objetiva, Ltda. | 99.96 | % | ||||||||||||
Editora Moderna Ltda. | Rua Padre Adelino, 758. Belezinho. Sao Paulo. Brazil | Publishing | Santillana Educación, S.L. | 100.00 | % | |||||||||
Editora Objetiva Ltda. | Rua Cosme Velho, 103. Bairro Cosme Velho. Municipio do Rio de Janeiro. Brazil | Publishing | Santillana Ediciones Generales, S.L. | 75.00 | % | |||||||||
Editorial Nuevo México, S.A. de C.V. | Tenayuca No 107. Col Vértiz Narvarte. Mexico City. Mexico | Publishing | Editorial Santillana, S.A. de C.V. (Mexico) | 0.00 | % | |||||||||
Lanza, S.A. de C.V. | 100.00 | % | ||||||||||||
Editorial Santillana, S.A. (Colombia) | Calle 80, N 10-23. Santa Fé de Bogotá. Colombia | Publishing | Ediciones Grazalema, S.L. | 0.00 | % | |||||||||
Edicions Obradoiro, S.L. | 0.00 | % | ||||||||||||
Edicions Voramar, S.A. | 0.00 | % | ||||||||||||
Ítaca, S.L. | 5.10 | % | ||||||||||||
Santillana Educación, S.L. | 94.90 | % | ||||||||||||
Editorial Santillana, S.A. (Guatemala) | 7a Avenida 11-11. Zona 9. Guatemala | Publishing | Ítaca, S.L. | 0.01 | % | |||||||||
Santillana Educación, S.L. | 99.99 | % | ||||||||||||
Editorial Santillana, S.A. (Honduras) | Colonia Lomas de Tepeyac. Casa No. 1626, contiguo al Autobanco Cuscatlan. | Publishing | Ítaca, S.L. | 1.00 | % | |||||||||
Boulevard Juan Pablo II. Tegucigalpa. Honduras | Santillana Educación, S.L. | 99.00 | % | |||||||||||
Editorial Santillana, S.A. (Dominican Republic) | Juan Sánchez Ramírez, 9. Gazcue. Santo Domingo. Dominican Republic | Publishing | Santillana Educación, S.L. | 99.95 | % | |||||||||
Other companies Grupo Santillana de Ediciones, S.L. | 0.05 | % | ||||||||||||
Editorial Santillana, S.A. (Venezuela) | Rómulo Gallegos. Edificio Zulia 1o. Caracas. Venezuela | Publishing | Santillana Educación, S.L. | 100.00 | % | |||||||||
Editorial Santillana, S.A. de C.V. (El Salvador) | Siemens, 48 Zona Industrial Santa Elena. La Libertad. El Salvador | Publishing | Ítaca, S.L. | 0.05 | % | |||||||||
Santillana Educación, S.L. | 99.95 | % |
F-84
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Editorial Santillana, S.A. de C.V. (Mexico) | Avenida Universidad 767. Colonia del Valle. Mexico City. Mexico | Publishing | Editorial Nuevo México, S.A. de C.V. | 1 share | ||||||||||
Lanza, S.A. de C.V. | 100.00 | % | ||||||||||||
Grup Promotor D’Ensenyement i Difussió en Catalá, S.L. | Frederic Mompou, 11. V. Olímpica. Barcelona | Publishing | Promotora de Informaciones, S.A. | 0.01 | % | 2/91 | ||||||||
Santillana Educación, S.L. | 99.99 | % | ||||||||||||
Grupo Santillana de Ediciones, S.L. | Torrelaguna, 60. Madrid | Publishing | Ítaca, S.L. | 0.00 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 100.00 | % | ||||||||||||
Instituto Universitario de Posgrado, S.A. | Torrelaguna, 60. Madrid | Complementary educational services | Santillana Formación, S.L. | 52.00 | % | |||||||||
Ítaca, S.L. | Torrelaguna, 60. Madrid | Book distribution | Grupo Santillana de Ediciones, S.L. | 99.98 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 0.02 | % | ||||||||||||
Lanza, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City. Mexico | Creation, development and management of companies | Editorial Santillana, S.A. de C.V. (Mexico) | 0.00 | % | |||||||||
Santillana Educación, S.L. | 100.00 | % | ||||||||||||
N. Editorial, S.L. | Torrelaguna, 60. Madrid | Publishing | Grupo Santillana de Ediciones, S.L. | 99.99 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 0.01 | % | ||||||||||||
Richmond Educaçâo, Ltda. | Rua Urbano Santos. 755. Sala 4. Bairro Cumbica. Cidade de Guarulhos. Sao Paulo. Brazil | Publishing | Editora Moderna, Ltda. | 100.00 | % | |||||||||
Ítaca, S.L. | 1 share | |||||||||||||
Richmond Publishing, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City. Mexico | Publishing | Editorial Santillana, S.A. de C.V. (Mexico) | 0.02 | % | |||||||||
Lanza, S.A. de C.V. | 99.98 | % | ||||||||||||
Salamandra Editorial, Ltda. | Rua Urbano Santos 160. Sao Paulo. Brazil | Publishing | Editora Moderna, Ltda. | 100.00 | % | |||||||||
Ítaca, S.L. | 1 share | |||||||||||||
Santillana, S.A. (Costa Rica) | La Uruca. 200 m Oeste de Aviación Civil. San José. Costa Rica | Publishing | Ítaca, S.L. | 0.01 | % | |||||||||
Santillana Educación, S.L. | 99.99 | % | ||||||||||||
Santillana, S.A. (Ecuador) | Avenida Eloy Alfaro. N33-347 y 6 de Diciembre. Quito. Ecuador | Publishing | Santillana Educación, S.L. | 100.00 | % | |||||||||
Santillana, S.A. (Paraguay) | Avenida Venezuela. 276. Asunción. Paraguay | Publishing | Ediciones Santillana, S.A. (Argentina) | 0.02 | % | |||||||||
Santillana Educación, S.L. | 99.98 | % | ||||||||||||
Santillana, S.A. (Peru) | Avenida Primavera 2160. Santiago de Surco. Lima. Peru | Publishing | Santillana Educación, S.L. | 95.00 | % | |||||||||
Santillana Canarias, S.L. | Urbanización El Mayorazgo. Parcela 14, 2-7B. Santa Cruz de Tenerife | Publishing | Ítaca, S.L. | 1.00 | % | 2/91 | ||||||||
Santillana Educación, S.L. | 99.00 | % |
F-85
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Santillana de Ediciones, S.A. | Avenida Arce. 2333. La Paz. Bolivia | Publishing | Ítaca, S.L. | 0.15 | % | |||||||||
Santillana Ediciones Generales, S.L. | 0.15 | % | ||||||||||||
Santillana Educación, S.L. | 99.70 | % | ||||||||||||
Santillana del Pacífico, S.A. de Ediciones | Dr. Aníbal Ariztía 1444. Providencia. Santiago de Chile. Chile | Publishing | Ítaca, S.L. | 1 share | ||||||||||
Santillana Educación, S.L. | 100.00 | % | ||||||||||||
Santillana Ediciones Generales, S.L. | Torrelaguna, 60. Madrid | Publishing | Grupo Santillana de Ediciones, S.L. | 100.00 | % | 2/91 | ||||||||
Ítaca, S.L. | 0.00 | % | ||||||||||||
Santillana Ediciones Generales, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City. Mexico | Publishing | Lanza, S.A. de C.V. | 4.78 | % | |||||||||
Santillana Ediciones Generales, S.L. | 95.22 | % | ||||||||||||
Santillana Educación, S.L. | Torrelaguna, 60. Madrid | Publishing | Grupo Santillana de Ediciones, S.L. | 100.00 | % | 2/91 | ||||||||
Ítaca, S.L. | 0.00 | % | ||||||||||||
Santillana Formación, S.L. | Torrelaguna, 60. Madrid | Complementary educational services | Grupo Santillana de Ediciones, S.L. | 100.00 | % | 2/91 | ||||||||
Ítaca, S.L. | 0.01 | % | ||||||||||||
Santillana Formación, S.L. (Colombia) | Calle 73. No 7-31. P8 TO B. Bogotá. Colombia | Consultancy services for the obtainment of quality certification by schools | Distribuidora y Editora Richmond S.A. | 1.00 | % | |||||||||
Santillana Educación, S.L. | 99.00 | % | ||||||||||||
Santillana USA Publishing Co. Inc. | 2105 NW 86th Avenue. Doral. Florida. US | Publishing | Grupo Santillana de Ediciones, S.L. | 100.00 | % | |||||||||
Uno Educaçâo, Ltda. | Rua Urbano Santos. 755. Sala 4. Bairro Cumbica. Cidade de Guarulhos. Sao Paulo. Brazil | Publishing | Editora Moderna, Ltda. | 100.00 | % | |||||||||
Ítaca, S.L. | 1 share | |||||||||||||
Zubia Editoriala, S.L. | Polígono Lezama Leguizamon. Calle 31. Etxebarri. Vizcaya | Publishing | Promotora de Informaciones, S.A. | 0.10 | % | 2/91 | ||||||||
Santillana Educación, S.L. | 99.90 | % | ||||||||||||
Proportionate consolidation | ||||||||||||||
Historia para Todos, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City. Mexico | Worldwide publishing in any language (mainly Spanish), of works preferably related to the history of Mexico and its main figures, particularly the Centenary of the Mexican Revolution and the Bicentenary of Independence, in any format or medium | Santillana Ediciones Generales, S.A. de C.V. | 50.00 | % |
F-86
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
PRESS | ||||||||||||||
EL PAÍS | ||||||||||||||
Full consolidation | ||||||||||||||
Agrupación de Servicios de Internet y Prensa, A.I.E. | Valentín Beato, 44. Madrid | Administrative, technological and legal services and the distribution of written and digital media | Diario El País, S.L. | 93.60 | % | |||||||||
Grupo Empresarial de Medios Impresos, S.L. | 5.90 | % | ||||||||||||
Prisacom, S.A. | 0.50 | % | ||||||||||||
Box News Publicidad, S.L. (formerly Box News Comunicación, S.L.) | Gran Vía, 32. Madrid | Advertising services and public relations | Diario El País, S.L. | 70.00 | % | 2/91 | ||||||||
Grupo Empresarial de Medios Impresos, S.L. | 30.00 | % | ||||||||||||
Diario El País, S.L. | Miguel Yuste, 40. Madrid | Publication and operation of El País newspaper | Promotora de Informaciones, S.A. | 100.00 | % | 2/91 | ||||||||
Diario El País Argentina, S.A. | Leandro N. Alem. 720. Buenos Aires. 1001. Argentina | Operation of El País newspaper in Argentina | Diario El País, S.L. | 88.81 | % | |||||||||
Diario El País México, S.A. de C.V. | 11.19 | % | ||||||||||||
Diario El País Do Brasil Distribuidora de Publicaçoes, LTDA | Rua Padre Adelino. 758 Belezinho. CEP 03303-904. Sao Paulo. Brazil | Operation of El País newspaper in Brazil | Diario El País, S.L. | 99.99 | % | |||||||||
Prisa División Internacional, S.L. | 0.01 | % | ||||||||||||
Diario El País México, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City. Mexico | Operation of El País newspaper in Mexico | Diario El País, S. L. | 88.82 | % | |||||||||
Lanza, S.A. de C.V. | 1 share | |||||||||||||
Promotora de Informaciones, S.A. | 11.18 | % | ||||||||||||
Ediciones El País, S.L. | Miguel Yuste, 40. Madrid | Publication, operation and sale of El País newspaper | Diario El País, S.L. | 99.99 | % | 2/91 | ||||||||
Pressprint, S.L.U. | Miguel Yuste, 40. Madrid | Production, printing, publication and distribution of publishing products in physical and digital format | Diario El País, S.L. | 100.00 | % | 2/91 | ||||||||
TRADE PRESS | ||||||||||||||
Full consolidation | ||||||||||||||
Diario As, S.L. | Albasanz, 14. Madrid | Publication and operation of As newspaper | Grupo Empresarial de Medios Impresos, S.L. | 75.00 | % | 2/91 | ||||||||
Espacio Editorial Andaluza Holding, S.L. | Gran Vía, 32. Madrid | Ownership of shares of publishing companies | Grupo Empresarial de Medios Impresos, S.L. | 100.00 | % | 2/91 |
F-87
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Estructura, Grupo de Estudios Económicos, S.A. | Gran Vía, 32. Madrid | Publication and operation of Cinco Días newspaper | Grupo Empresarial de Medios Impresos, S.L. | 100.00 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 0.00 | % | ||||||||||||
Grupo Empresarial de Medios Impresos, S.L. | Gran Vía, 32. Madrid | Ownership of shares of publishing companies | Promotora de Informaciones, S.A. | 100.00 | % | 2/91 | ||||||||
Gestión de Medios de Prensa, S.A. | Gran Vía, 32. Madrid | Provision of shared services for regional and local newspapers | Grupo Empresarial de Medios Impresos, S.L. | 50.82 | % | |||||||||
Promotora General de Revistas, S.A. | Julián Camarillo, 29B. Madrid | Publication production and operation of magazines | Grupo Empresarial de Medios Impresos, S.L. | 99.96 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 0.04 | % | ||||||||||||
Equity method | ||||||||||||||
Box News Publicidad, S.L.(formerly Box News Comunicación, S.L.) | Gran Vía, 32. Madrid | Advertising services and public relations | Diario El País, S.L. | 70.00 | % | 2/91 | ||||||||
Grupo Empresarial de Medios Impresos, S.L. | 30.00 | % |
F-88
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
RADIO | ||||||||||||||
RADIO IN SPAIN | ||||||||||||||
Full consolidation | ||||||||||||||
Algarra, S.A. | García Lovera, 3. Cordoba | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 100.00 | % | 194/09 | ||||||||
Antena 3 de Radio, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 64.64 | % | 194/09 | ||||||||
Unión Radio Servicios Corporativos, S.A. | 34.78 | % | ||||||||||||
Antena 3 de Radio de León, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Antena 3 de Radio, S.A. | 99.56 | % | 194/09 | ||||||||
Antena 3 de Radio de Melilla, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Antena 3 de Radio, S.A. | 100.00 | % | 194/09 | ||||||||
Avante Radio, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Radio Club Canarias, S.A. | 3.33 | % | 194/09 | ||||||||
Radio Murcia, S.A. | 3.33 | % | ||||||||||||
Sociedad Española de Radiodifusión, S.L. | 93.34 | % | ||||||||||||
Cantabria de Medios, S. A | Pasaje de Peña. No 2. Interior. 39008. Santander | Operation of radio broadcasting stations | Propulsora Montañesa, S. A. | 100.00 | % | 194/09 | ||||||||
Compañía Aragonesa de Radiodifusión, S.A. | Paseo de la Constitución, 21. Zaragoza | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 97.03 | % | 194/09 | ||||||||
Corporación Canaria de Información y Radio, S.A. | General Balmes s/n. Las Palmas de Gran Canaria | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 100.00 | % | 194/09 | ||||||||
Ediciones LM, S.L. | Plaza de Cervantes, 6. Ciudad Real | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 50.00 | % | |||||||||
Frecuencia del Principado, S.A. | Jovellanos 1, Gijón | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 100.00 | % | 194/09 | ||||||||
Gestión de Marcas Audiovisuales, S.A. | Gran Vía, 32. Madrid | Production and recording of sound media | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 100.00 | % | 194/09 | ||||||||
Gran Vía Musical de Ediciones, S.L. | Gran Vía, 32. Madrid | Provision of music services | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 100.00 | % | 194/09 | ||||||||
Iniciativas Radiofónicas, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 93.42 | % | 194/09 | ||||||||
Iniciativas Radiofónicas de Castilla La Mancha, S.A. | Carreteros, 1. Toledo | Operation of radio broadcasting stations | Ediciones LM, S.L. | 40.00 | % | |||||||||
Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 50.00 | % |
F-89
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
La Palma Difusión, S.A. | Almirante Díaz Pimienta, 10. Los Llanos de Aridane. Santa Cruz de Tenerife | Operation of radio broadcasting stations | Antena 3 de Radio, S.A. | 100.00 | % | 194/09 | ||||||||
Onda La Finojosa, S.A. | Limosna, 2. Hinojosa del Duque. Cordoba | Operation of radio broadcasting stations | Algarra, S.A. | 100.00 | % | 194/09 | ||||||||
Onda Musical, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Antena 3 de Radio, S.A. | 49.01 | % | 194/09 | ||||||||
Sociedad Española de Radiodifusión, S.L. | 16.68 | % | ||||||||||||
Unión Radio Servicios Corporativos, S.A. | 34.30 | % | ||||||||||||
Ondas Galicia, S.A. | San Pedro de Mezonzo, 3. Santiago de Compostela | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 46.25 | % | |||||||||
Propulsora Montañesa, S. A. | Pasaje de Peña. No 2. Interior. 39008. Santander | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 90.07 | % | 194/09 | ||||||||
Radio 30, S.A. | Radio Murcia, 4. Murcia | Operation of radio broadcasting stations | Radio Murcia, S.A. | 100.00 | % | 194/09 | ||||||||
Radio Club Canarias, S.A. | Avenida Anaga, 35. Santa Cruz de Tenerife | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 95.00 | % | 194/09 | ||||||||
Radio España de Barcelona, S.A. | Caspe, 6. Barcelona | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 99.32 | % | 194/09 | ||||||||
Radio Murcia, S.A. | Radio Murcia, 4. Murcia | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 83.33 | % | 194/09 | ||||||||
Radio Zaragoza, S.A. | Paseo de la Constitución, 21. Zaragoza | Operation of radio broadcasting stations | Compañía Aragonesa de Radiodifusión, S.A. | 66.00 | % | 194/09 | ||||||||
Sociedad Española de Radiodifusión, S.L. | 24.00 | % | ||||||||||||
Radiodifusora de Navarra, S.A. | Polígono Plazaola. Manzana F - 2oA. Pamplona | Operation of radio broadcasting stations | Antena 3 de Radio, S.A. | 100.00 | % | 194/09 | ||||||||
Sociedad de Servicios Radiofónicos Unión Radio, S.L. | Gran Vía, 32. Madrid | Provision of services to radio broadcasting companies | Promotora de Informaciones, S.A. | 73.49 | % | |||||||||
Sociedad Española de Radiodifusión, S.L. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 99.99 | % | 194/09 | ||||||||
Sociedad Independiente Comunicación Castilla La Mancha, S.A. | Avenida de la Estación, 5 Bajo. Albacete | Operation of radio broadcasting stations | Antena 3 de Radio, S.A. | 74.60 | % | |||||||||
Sociedad de Radiodifusión Aragonesa, S.A. | Paseo de la Constitución, 21. Zaragoza | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 50.00 | % | |||||||||
Societat de Comunicacio i Publicidat, S.L. | Parc. de la Mola, 10 Torre Caldea, 6o Escalde. Engordany. Andorra | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 100.00 | % |
F-90
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Sonido e Imagen de Canarias, S.A. | Caldera de Bandama, 5. Arrecife. Lanzarote | Operation of radio broadcasting stations | Antena 3 de Radio, S.A. | 50.00 | % | |||||||||
Talavera Visión, S.L. | Plaza Cervantes 6 4o. Ciudad Real | Operation of radio broadcasting stations | Valdepeñas Comunicación, S.L. | 100.00 | % | |||||||||
Teleser, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Algarra, S.A. | 0.95 | % | 194/09 | ||||||||
Compañía Aragonesa de Radiodifusión, S.A. | 4.14 | % | ||||||||||||
Propulsora Montañesa, S. A. | 0.95 | % | ||||||||||||
Radio España de Barcelona, S.A. | 1.58 | % | ||||||||||||
Sociedad Española de Radiodifusión, S.L. | 71.64 | % | ||||||||||||
Teleradio Pres, S.L. | Avenida de la Estación, 5 Bajo. Albacete | Media management | Antena 3 de Radio, S.A. | 75.10 | % | |||||||||
Unión Radio Digital, S.A. | Gran Vía, 32. Madrid | Operation of digital radio broadcasting concession | Antena 3 de Radio, S.A. | 40.00 | % | 194/09 | ||||||||
Sociedad Española de Radiodifusión, S.L. | 60.00 | % | ||||||||||||
Unión Radio Servicios Corporativos, S.A. | Gran Vía, 32. Madrid | Holdings in radio broadcasting companies | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 100.00 | % | 194/09 | ||||||||
Valdepeñas Comunicación, S.L. | Plaza de Cervantes, 6. Ciudad Real | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 50.00 | % | |||||||||
Equity method | ||||||||||||||
Radio Jaén, S.L. | Obispo Aguilar, 1. Jaén | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 35.99 | % | |||||||||
Unión Radio del Pirineu, S.A. | Carrer Prat del Creu, 32. Andorra | Operation of radio broadcasting stations | Sociedad de Servicios Radiofónicos Unión Radio, S.L. | 33.00 | % |
F-91
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group | |||||||||
INTERNATIONAL RADIO | ||||||||||||||
Full consolidation | ||||||||||||||
Abril, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Inactive | Comercializadora Iberoamericana Radio Chile, S.A. | 0.00 | % | |||||||||
Iberoamericana Radio Chile, S.A. | 100.00 | % | ||||||||||||
Aurora, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Inactive | Comercializadora Iberoamericana Radio Chile, S.A. | 0.02 | % | |||||||||
Iberoamerican Radio Holding Chile, S.A. | 99.98 | % | ||||||||||||
Blaya y Vega, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Advertising sales | Comercializadora Iberoamericana Radio Chile, S.A. | 0.00 | % | |||||||||
Radiodifusion Iberoamerican Chile S.A. | 100.00 | % | ||||||||||||
Caracol, S.A. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | Sociedad Española de Radiodifusión, S.L. | 77.05 | % | |||||||||
Caracol Broadcasting Inc. | 2100 Coral Way - Miami 33145 - Florida, US | Operation of radio broadcasting stations | GLR Broadcasting LLC | 100.00 | % | |||||||||
Caracol Estéreo, S.A. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | Sociedad Española de Radiodifusión, S.L. | 77.04 | % | |||||||||
CHR, Cadena Hispanoamericana de Radio, S.A. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | Caracol, S.A. | 48.15 | % | |||||||||
Caracol Estéreo, S.A. | 46.79 | % | ||||||||||||
Compañía de Comunicaciones C.C.C. Ltda. | 0.00 | % | ||||||||||||
Promotora de Publicidad Radial, S.A. | 5.06 | % | ||||||||||||
Radio Mercadeo, Ltda. | 0.00 | % | ||||||||||||
Comercializadora Iberoamericana Radio Chile, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | GLR Chile Ltda . | 99.84 | % | |||||||||
Sociedad Española de Radiodifusión, S.L. | 0.16 | % | ||||||||||||
Compañía de Comunicaciones C.C.C. Ltda. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | Caracol, S.A. | 43.45 | % | |||||||||
Caracol Estéreo, S.A. | 11.13 | % | ||||||||||||
Ecos de la Montaña Cadena Radial Andina, S.A. | 4.42 | % | ||||||||||||
Sociedad Española de Radiodifusión, S.L. | 16.72 | % | ||||||||||||
Promotora de Publicidad Radial, S.A. | 19.27 | % | ||||||||||||
Compañía de Radios, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Sale of advertising and rental of advertising space | Comercializadora Iberoamericana Radio Chile, S.A. | 0.08 | % | |||||||||
Iberoamerican Radio Holding Chile, S.A. | 99.92 | % | ||||||||||||
Comunicaciones del Pacífico, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation and management of TV channels and radio stations | Comercializadora Iberoamericana Radio Chile, S.A. | 66.66 | % | |||||||||
Iberoamericana Radio Chile, S.A. | 33.33 | % |
F-92
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group | |||||||||
Comunicaciones Santiago, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | Iberoamericana Radio Chile, S.A. | 25.00 | % | |||||||||
Sociedad Radiodifusora del Norte, Ltda. | 75.00 | % | ||||||||||||
Consorcio Radial de Panamá, S.A. | Urbanización Obarrio, Calle 54 Edificio Caracol. Panama | Advisory services and commercialisation of services and products in general, and in particular to Green Emerald Business Inc. | Sociedad Española de Radiodifusión, S.L. | 100.00 | % | |||||||||
Corporación Argentina de Radiodifusión, S.A. | Beazley 3860. Buenos Aires. Argentina | Operation of radio broadcasting stations | Ediciones Santillana, S.A. (Argentina) | 0.60 | % | |||||||||
GLR Services Inc. | 99.40 | % | ||||||||||||
Ecos de la Montaña Cadena Radial Andina, S.A. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | Sociedad Española de Radiodifusión, S.L. | 76.80 | % | |||||||||
Emisora Mil Veinte, S.A. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | Sociedad Española de Radiodifusión, S.L. | 75.72 | % | |||||||||
Fast Net Comunicaciones, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Telecommunications and radio broadcasting services | Comunicaciones Santiago, S.A. | 99.00 | % | |||||||||
Iberoamericana Radio Chile, S.A. | 1.00 | % | ||||||||||||
GLR Broadcasting, LLC | Baypoint Office Tower, 4770 Biscayne Blvd. Suite 700 Miami. FL 33137. US | Operation of radio broadcasting stations | GLR Services Inc. | 100.00 | % | |||||||||
GLR Chile Ltda | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | Caracol, S.A. | 0.00 | % | |||||||||
Sociedad Española de Radiodifusión, S.L. | 100.00 | % | ||||||||||||
GLR Colombia, Ltda. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Provision of services to radio broadcasting companies | Sociedad Española de Radiodifusión, S.L. | 99.00 | % | |||||||||
Prisa División Internacional, S.L. | 1.00 | % | ||||||||||||
GLR Midi France, S.A.R.L. | Immeuble Le Periscope, 83-87 Av. d’Italie. Paris. France | Radio broadcasting | Sociedad Española de Radiodifusión, S.L. | 40.00 | % | |||||||||
Prisa División Internacional, S.L. | 20.00 | % | ||||||||||||
GLR Networks, LLC | Baypoint Office Tower, 4770 Biscayne Blvd. Suite 700 Miami. FL 33137. US | Provision of services to radio broadcasting companies | GLR Services Inc. | 100.00 | % | |||||||||
GLR Services Inc. | Baypoint Office Tower, 4770 Biscayne Blvd. Suite 700 Miami. FL 33137. US | Provision of services to radio broadcasting companies | Sociedad Española de Radiodifusión, S.L. | 100.00 | % | |||||||||
GLR Southern California, LLC | 3500 Olive Avenue Suite 250 Burbank, CA 91505. US | Provision of services to radio broadcasting companies | GLR Broadcasting LLC | 100.00 | % | |||||||||
Iberoamericana Radio Chile, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Sale of advertising | Grupo Latino de Radiodifusion Chile Ltda. | 100.00 | % | |||||||||
Sociedad Española de Radiodifusión, S.L. | 0.00 | % |
F-93
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group | |||||||||
Iberoamerican Radio Holding Chile, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Holdings and sale of advertising space | Comercializadora Iberoamericana Radio Chile, S.A. | 0.00 | % | |||||||||
Iberoamericana Radio Chile, S.A. | 100.00 | % | ||||||||||||
La Voz de Colombia | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | Caracol, S.A. | 0.01 | % | |||||||||
Sociedad Española de Radiodifusión, S.L. | 75.64 | % | ||||||||||||
LS4 Radio Continental, S.A | Rivadavia 835. Ciudad Autónoma de Buenos Aires. Argentina | Radio broadcasting and advertising services | Corporación Argentina de Radiodifusión, S.A. | 30.00 | % | |||||||||
GLR Services Inc. | 70.00 | % | ||||||||||||
Promotora de Publicidad Radial, S.A. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | Sociedad Española de Radiodifusión, S.L. | 77.04 | % | |||||||||
Publicitaria y Difusora del Norte Ltda. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Radio broadcasting | Comercializadora Iberoamericana Radio Chile, S.A. | 99.00 | % | |||||||||
Iberoamericana Radio Chile, S.A. | 1.00 | % | ||||||||||||
Radiodifusion Iberoamerican Chile S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Holdings | Iberoamericana Radio Chile S.A. | 100.00 | % | |||||||||
Radio Estéreo, S.A | Rivadavia 835. Ciudad Autónoma de Buenos Aires. Argentina | Radio broadcasting and advertising services | Corporación Argentina de Radiodifusión, S.A. | 30.00 | % | |||||||||
GLR Services Inc. | 70.00 | % |
F-94
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Radio Mercadeo, Ltda. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | Caracol, S.A. | 29.85 | % | |||||||||
Caracol Estéreo, S.A. | 0.35 | % | ||||||||||||
Ecos de la Montaña Cadena Radial Andina, S.A. | 0.01 | % | ||||||||||||
Emisora Mil Veinte, S.A. | 0.35 | % | ||||||||||||
Sociedad Española de Radiodifusión, S.L. | 48.40 | % | ||||||||||||
Promotora de Publicidad Radial, S.A. | 0.35 | % | ||||||||||||
Sociedad Radiodifusora del Norte, Ltda. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | Comercializadora Iberoamericana Radio Chile, S.A. | 80.00 | % | |||||||||
Iberoamericana Radio Chile S.A | 20.00 | % | ||||||||||||
Sociedad de Radiodifusión El Litoral, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Rental of equipment and advertising sales | Comercializadora Iberoamericana Radio Chile, S.A. | 0.10 | % | |||||||||
Radiodifusion Iberoamerican Chile S.A. | 99.90 | % | ||||||||||||
W3 Comm Inmobiliaria, S.A. de C.V. | Carretera Libre Tijuana. Ensenada 3100. Rancho Altamira Blvd Popotla y Camino al FRACC Misión del Mar. Playas de Rosarito. Baja California. US | Real estate development services | Prisa División Internacional, S.L. | 1 share | ||||||||||
Sociedad Española de Radiodifusión, S.L. | 99.99 | % | ||||||||||||
Proportionate consolidation | ||||||||||||||
Cadena Radiodifusora Mexicana, S.A. de C.V. | Calzada de Tlalpan 3000 col Espartaco Mexico City 04870. Mexico | Operation of radio broadcasting stations | Radio Comerciales, S.A. de C.V. | 0.01 | % | |||||||||
Sistema Radiópolis, S.A. de C.V. | 99.99 | % | ||||||||||||
GLR Costa Rica, S.A. | Llorente de Tibás. Edifico La Nación. San José. Costa Rica | Radio broadcasting | Sociedad Española de Radiodifusión, S.L. | 50.00 | % | |||||||||
Radio Comerciales, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | Cadena Radiodifusora Mexicana, S.A. de C.V. | 0.03 | % | |||||||||
Sistema Radiópolis, S.A. de C.V. | 99.97 | % | ||||||||||||
Radio Melodía, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | Cadena Radiodifusora Mexicana, S.A. de C.V. | 99.00 | % | |||||||||
Radio Comerciales, S.A. de C.V. | 1.00 | % | ||||||||||||
Radio Tapatía, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | Cadena Radiodifusora Mexicana, S.A. de C.V. | 99.00 | % | |||||||||
Radio Comerciales, S.A. de C.V. | 1.00 | % | ||||||||||||
Radiotelevisora de Mexicali, S.A. de C.V. | Avenida Reforma 1270. Mexicali Baja California. Mexico | Operation of radio broadcasting stations | Radio Comerciales, S.A. de C.V. | 0.01 | % | |||||||||
Sistema Radiópolis, S.A. de C.V. | 99.99 | % |
F-95
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Servicios Radiópolis, S.A. de C.V. | Calzada de Tlalpan 3000 col Espartaco Mexico City 04870. Mexico | Operation of radio broadcasting stations | Radio Comerciales, S.A. de C.V. | 0.00 | % | |||||||||
Sistema Radiópolis, S.A. de C.V. | 100.00 | % | ||||||||||||
Servicios Xezz, S.A. de C.V. | Calzada de Tlalpan 3000 col Espartaco Mexico City 04870. Mexico | Operation of radio broadcasting stations | Radio Comerciales, S.A. de C.V. | 0.00 | % | |||||||||
Xezz, S.A. de C.V. | 100.00 | % | ||||||||||||
Sistema Radiópolis, S.A. de C.V. | Avenida Vasco de Quiroga 2000. Mexico City. Mexico | Operation of radio broadcasting stations | Sociedad Española de Radiodifusión, S.L. | 50.00 | % | |||||||||
Xezz, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | Cadena Radiodifusora Mexicana, S.A. de C.V. | 99.00 | % | |||||||||
Radio Comerciales, S.A. de C.V. | 1.00 | % | ||||||||||||
Equity method | ||||||||||||||
El Dorado Broadcasting Corporation | 2100 Coral Way. Miami. Florida. US | Development of the Latin radio market in the US | GLR Services INC. | 25.00 | % | |||||||||
Green Emerald Business Inc. | Calle 54. Obarrio No 4. Ciudad de Panamá. Panama | Development of the Latin radio market in Panama | Sociedad Española de Radiodifusión, S.L. | 34.95 | % | |||||||||
WSUA Broadcasting Corporation | 2100 Coral Way. Miami. Florida. US | Radio broadcasting | El Dorado Broadcasting Corporation | 100.00 | % | |||||||||
W3 Comm Concesionaria, S.A. de C.V. | Carretera Libre Tijuana. Ensenada 3100. Rancho Altamira Blvd Popotla y Camino al FRACC Misión del Mar. Playas de Rosarito. Baja California. US | Advisory services on business administration and organisation | Sociedad Española de Radiodifusión, S.L. | 48.98 | % | |||||||||
MUSIC | ||||||||||||||
Full consolidation | ||||||||||||||
Compañía Discográfica Muxxic Records, S.A. | Gran Vía, 32. Madrid | Production and recording of sound media | Gran Vía Musical de Ediciones, S.L. | 100.00 | % | 194/09 | ||||||||
Nova Ediciones Musicales, S.A. | 1 share | |||||||||||||
Gran Vía Musical, S.A.S. | Calle 67. No 7 - 37. Piso 7o. Bogotá. Colombia. | Provision of music services | Gran Vía Musical de Ediciones, S.L. | 100.00 | % | |||||||||
Lirics and Music, S.L. | Gran Vía, 32. Madrid | Music publishing | Gran Vía Musical de Ediciones, S.L. | 100.00 | % | 194/09 | ||||||||
Media Festivals, S.A. | Gran Vía, 32. Madrid | Production and organisation of shows and events | Gran Vía Musical de Ediciones, S.L. | 99.97 | % | 194/09 | ||||||||
Nova Ediciones Musicales, S.A. | 0.03 | % | ||||||||||||
Merchandising On Stage, S.L. | Ulises, 49. 28043. Madrid | Production and/or import of textile articles, jewellery, graphic materials, phonographic and/or audiovisual media and the related silkscreen printing, embossing or printing by any means or process | Gran Vía Musical de Ediciones, S.L. | 70.00 | % |
F-96
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Nova Ediciones Musicales, S.A. | Gran Vía, 32. Madrid | Music publishing | Gran Vía Musical de Ediciones, S.L. | 100.00 | % | 194/09 | ||||||||
Promotora de Informaciones, S.A. | 1 share | |||||||||||||
Planet Events, S.A. | Gran Vía, 32. Madrid | Production and organisation of shows | Gran Vía Musical de Ediciones, S.L. | 70.00 | % | |||||||||
and events | Nova Ediciones Musicales, S.A. | 0.01 | % | |||||||||||
RLM Colombia, S.A.S. | Calle 67. No 7 - 37. Piso 7o. Bogotá. Colombia. | Production and organisation of shows and events | RLM, S.A. | 100.00 | % | |||||||||
RLM, S.A. | Puerto de Santa María, 65. 28043. Madrid | Production and organisation of shows and events | Gran Vía Musical de Ediciones, S.L. | 70.00 | % | |||||||||
Sogecable Música, S.L. | Gran Vía, 32. Madrid | Creation, broadcasting, distribution and operation of thematic television channels | Gran Vía Musical de Ediciones, S.L. | 100.00 | % |
F-97
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
AUDIOVISUAL | ||||||||||||||
SOGECABLE | ||||||||||||||
Full consolidation | ||||||||||||||
Audiovisual Sport, S.L. | Calle Diagonal, 477. Barcelona | Management and distribution of audiovisual rights | Sogecable, S.A.U. | 80.00 | % | 2/91 | ||||||||
CanalSatélite Digital, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Television services | Compañía Independiente de Televisión, S.L. | 2 shares | 2/91 | |||||||||
Sogecable, S.A.U. | 100.00 | % | ||||||||||||
Centro de Asistencia Telefónica, S.A. | Campezo, 1. Madrid | Provision of services | Compañía Independiente de Televisión, S.L. | 0.39 | % | 2/91 | ||||||||
Sogecable, S.A.U. | 99.61 | % | ||||||||||||
Compañía Independiente de Televisión, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Management and exploitation of audiovisual rights | Sociedad General de Cine, S.A. | 0.05 | % | 2/91 | ||||||||
Sogecable, S.A.U. | 99.95 | % | ||||||||||||
Cinemanía, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Operation of thematic television channels | Compañía Independiente de Televisión, S.L. | 90.00 | % | 2/91 | ||||||||
Sogecable, S.A.U. | 10.00 | % | ||||||||||||
DTS, Distribuidora de Televisión Digital, S.A. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Television services | Compañía Independiente de Televisión, S.L. | 0.00 | % | 2/91 | ||||||||
Sogecable, S.A.U. | 100.00 | % | ||||||||||||
Promotora Audiovisual de Colombia PACSA, S.A. | Calle 70. No 4-60. 11001. Bogotá. Colombia | Audiovisual and communication activities | Grupo Latino de Publicidad Colombia, Ltda. | 1.00 | % | |||||||||
Promotora de Actividades Audiovisuales de Colombia, Ltda. | 1.00 | % | ||||||||||||
Sogecable, S.A.U. | 53.00 | % | ||||||||||||
Sociedad General de Cine, S.A. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Production and management of audiovisual rights | Compañía Independiente de Televisión, S.L. | 0.00 | % | 2/91 | ||||||||
Sogecable, S.A.U. | 100.00 | % | ||||||||||||
Sogecable, S.A.U | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Operation of TV activities | Promotora de Informaciones, S.A. | 100.00 | % | 2/91 | ||||||||
Sogecable Editorial, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Management of intellectual property rights | Compañía Independiente de Televisión, S.L. | 0.07 | % | 2/91 | ||||||||
Sogecable, S.A.U. | 99.93 | % | ||||||||||||
Sogecable Media, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Sale of advertising space | Sogecable, S.A.U. | 100.00 | % | 2/91 | ||||||||
Sogepaq, S.A. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Management and distribution of audiovisual rights | Sociedad General de Cine, S.A. | 0.00 | % | 2/91 | ||||||||
Sogecable, S.A.U. | 100.00 | % | ||||||||||||
Vía Atención Comunicación, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Provision of digital TV services | DTS, Distribuidora de Televisión Digital, S.A. | 100.00 | % | 2/91 |
F-98
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Equity method | ||||||||||||||
Canal Club de Distribución de Ocio y Cultura, S.A. | Calle Hermosilla, 112. Madrid | Catalogue sales | Sogecable, S.A.U. | 25.00 | % | |||||||||
Canal + Investment Inc. | Beverly Hills. California. US | Film production | Sogecable, S.A.U. | 60.00 | % | |||||||||
Compañía Independiente de Noticias de TV, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Television services | Sogecable, S.A.U. | 50.00 | % | |||||||||
LOCAL TELEVISION | ||||||||||||||
Full consolidation | ||||||||||||||
Axarquía Visión, S.A. | Paseo de Reding, 7. Malaga | Provision of local television services | Málaga Altavisión, S.A. | 80.00 | % | |||||||||
Canal 4 Navarra, S.L. | Avenida Sancho el Fuerte, 18. Pamplona | Production and broadcasting of videos and TV programmes | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Canal 4 Navarra Digital, S.A. | Polígono Industrial Cordovilla. Navarra | Provision of local television services | Canal 4 Navarra, S.L. | 100.00 | % | 2/91 | ||||||||
Collserola Audiovisual, S.L. | Plaza Narcis Oller. No 6 1o. 1a. 08006. Barcelona | Provision of local television services | Legal Affairs Consilium, S.L. | 92.00 | % | 2/91 | ||||||||
Promotora de Emisoras de Televisión, S.A. | 0.50 | % | ||||||||||||
Comunicación Radiofónica, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Comunicaciones y Medios Audiovisuales Tele Alcalá, S.L. | Encomienda, 33. Alcalá de Henares. Madrid | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Legal Affairs Consilium, S.L. | Plaza Narcis Oller. No 6 1o. 1a. 08006. Barcelona | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Localia TV Madrid, S.A. | Gran Vía, 32. Madrid | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Promotora de Emisoras, S.L | 1 share | |||||||||||||
Localia TV Valencia, S.A. | Don Juan de Austria 3. 46002. Valencia | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Málaga Altavisión, S.A. | Paseo de Reding, 7. Malaga | Production and broadcasting of videos and TV programmes | Promotora de Emisoras de Televisión, S.A. | 87.24 | % | 2/91 | ||||||||
Marbella Digital Televisión, S.A. | Paseo de Reding, 7. Malaga | Provision of local television services | Málaga Altavisión, S.A. | 100.00 | % | 2/91 | ||||||||
Productora Asturiana de Televisión, S.A. | Asturias, 19. Oviedo | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 59.99 | % | |||||||||
Productora Audiovisual de Badajoz, S.A. | Ramón Albarrán, 2. Badajoz | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 61.45 | % | |||||||||
Productora Audiovisual de Mallorca, S.A. | Puerto Rico, 15. Palma de Mallorca | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 99.84 | % | 2/91 |
F-99
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Productora de Comunicación Toledo, S.A. | Carreteros, 1. Toledo | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Productora de Televisión de Córdoba, S.A. | Amatista s/n. Polígono El Granadall. Cordoba | Provision of local television services | Localia TV Madrid, S.A. | 0.01 | % | 2/91 | ||||||||
Promotora de Emisoras de Televisión, S.A. | 99.99 | % | ||||||||||||
Productora Digital de Medios Audiovisuales, S.A. | Juan de la Cierva, 72. Polígono Industrial Prado Regordoño. Móstoles. Madrid | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Productora Extremeña de Televisión, S.A. | J. M. R. “Azorín”. Edificio Zeus. Polígono La Corchera. Mérida. Badajoz | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 66.00 | % | |||||||||
Promociones Audiovisuales Sevillanas, S.A. | Rafael González Abreu, 3. Seville | Production and broadcasting of videos and TV programmes | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | |||||||||
Promoción de Actividades Audiovisuales en Canarias, S.A. | Avenida Anaga, 35. Santa Cruz de Tenerife | TV communication activities in the Canary Islands | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
Promotora Audiovisual de Zaragoza, S.L. | Emilia Pardo Bazán, 18. Zaragoza | Provision of local television services | Localia TV Madrid, S.A. | 0.10 | % | 2/91 | ||||||||
Promotora de Emisoras de Televisión, S.A. | 99.90 | % | ||||||||||||
Promotora de Emisoras, S.L. | Gran Vía, 32. Madrid | Radio broadcasting services | Promotora de Informaciones, S.A. | 100.00 | % | 2/91 | ||||||||
Promotora de Emisoras de Televisión, S.A. | Gran Vía, 32. Madrid | Operation of TV channels | Promotora de Emisoras, S.L. | 75.00 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 25.00 | % | ||||||||||||
Telecomunicaciones Antequera, S.A. | Aguardenteros, 15. Antequera. Malaga | Provision of local television services | Málaga Altavisión, S.A. | 100.00 | % | 2/91 | ||||||||
Televisión Ciudad Real, S.L. | Ronda Carmen, 4. Ciudad Real | Production, broadcasting, publication and distribution of all manner of communication media and advertising activities | Promotora de Emisoras de Televisión, S.A. | 75.10 | % | 2/91 | ||||||||
Televisión, Medios y Publicidad, S.L. | Quitana, 38. Alicante | Provision of television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 | ||||||||
TV Local Eivissa, S.L. | Avenida San Jordi s/n. Edificio Residencial. Ibiza | Provision of television services | Promotora de Emisoras de Televisión, S.A. | 100.00 | % | 2/91 |
F-100
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Equity method | ||||||||||||||
Grupo de Comunicación y Televisión Castilla La Mancha, S.A. | Calle País Valenciano 5. Ciudad Real | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 33.33 | % | |||||||||
Riotedisa, S.A. | Avenida de Portugal, 12. Logroño | Audiovisual productions for TV | Promotora de Emisoras de Televisión, S.A. | 49.00 | % | |||||||||
Televisión Digital de Baleares, S.L. | Avenida Setze de Juliol, 53. Palma de Mallorca | Provision of local television services | Promotora de Emisoras de Televisión, S.A. | 0.09 | % | |||||||||
Televisión, Medios y Publicidad, S.L. | 39.91 | % | ||||||||||||
MEDIA CAPITAL | ||||||||||||||
Full consolidation | ||||||||||||||
Agenciamiento e Produçao de Espectáculos, Lda. (EVENTOS SPOT ) | Rua Mário Castelhano. No 40.2734-502. Barcarena. Portugal | Production and promotion of concerts and musical events in Portugal and abroad | Produçao de Eventos, Lda. (MEDIA CAPITAL ENTERTAINMENT) | 50.00 | % | |||||||||
Argumentos para Audiovisual, Lda. (CASA DA CRIAÇAO) | Avenida Liberdade. No 144/156 - 6o Dto. 1250-146. Lisbon. Portugal | Creation, development, translation and adaptation of texts and ideas for television programmes, films, entertainment, advertising and theatre | Plural Entertainment Portugal, S.A. | 100.00 | % | |||||||||
Chip Audiovisual, S.A. | Coso, 100. Planta 3a puerta 4-50001. Zaragoza | Audiovisual productions for TV | Factoría Plural, S.L. | 50.00 | % | |||||||||
Desenvolvimento de Sistemas de Comunicaçao, S.A. (MEDIA CAPITAL TECHNOLOGIES) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Development, maintenance and commercial operation of computer hardware and programs; management of multimedia content (images, sound, text and data) | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Editora Multimédia, S.A. (MULTIMEDIA) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, multimedia production, distribution, consultancy, sales (mail order, telephone and other) of goods and services as well as the acquisition, supply, preparation and dissemination of journalism by any means | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Emissoes de Radiodifusao, S.A. (REGIONAL RADIO OF LISBON) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting | Media Capital Rádios, S.A (MCR II) | 100.00 | % |
F-101
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Empresa de Meios Audiovisuais, Lda. (EMAV) | Quinta Do Olival Das Minas. Lote 9. Vialonga. 2625-577. Vialonga. Portugal | Purchase, sale and rental of audiovisual media (cameras, videos, special filming and lighting equipment, cranes, rails, etc.) | Plural Entertainment Portugal, S.A. | 100.00 | % | |||||||||
Empresa Portuguesa de Cenários, Lda. (EPC) | Quinta Do Olival Das Minas. Lote 9. Vialonga. 2625-577. Vialonga. Portugal | Design, construction and installation of decorating accessories | Plural Entertainment Portugal, S.A. | 100.00 | % | |||||||||
Factoría Plural, S.L. | Calle Biarritz, 2. 50017 Zaragoza | Production and distribution of audiovisual content | Plural Entertainment España, S.L. | 51.00 | % | |||||||||
Grupo Media Capital, SGPS, S.A. | Rua Mário Castelhano no 40. Queluz de Baixo. Portugal | Holdings | Vertix, SGPS, S.A | 94.69 | % | |||||||||
Kimberley Trading, S.A. (KIMBERLEY) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Performance of any TV-related activity such as the installation, management and operation of any TV channel or infrastructure | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Lúdicodrome Editora Unipessoal, Lda | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, multimedia production, distribution, consultancy, sale (mail order, telephone or other) of goods and services disseminated via catalogues, magazines, newspapers, printed or audiovisual media | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Media Capital Música e Entretenimento, S.A (MCME) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, graphic arts and the reproduction of recorded media: magazines, audio publication, video reproduction and the provision of services related to music, the radio, television, film, theatre and literary magazines | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Media Capital Produçoes, S.A. (MCP) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Design, development, production, promotion, sale, acquisition, exploitation rights, recording, distribution and dissemination of audiovisual media | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Media Capital Produçoes — Investimentos, SGPS, S.A. | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Holdings | Media Capital Produçoes, S.A. (MCP) | 100.00 | % |
F-102
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Media Capital Rádios, S.A (MCR II) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Provision of services in the areas of accounting and financial consultancy; performance of radio broadcasting activities in the areas of the production and transmission of radio programmes | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Media Global, SGPS, S.A. (MEGLO) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Holdings | Grupo Media Capital, SGPS, S. A. | 100.00 | % | |||||||||
Multimedia, S.A. (CLMC) | Rua de Santo Amaro à Estrela. No 17 A. 1249-028. Lisbon. Portugal | Distribution of film activities, video, radio, television, audiovisual and multimedia production and commercial exploitation thereof | Media Global, SGPS, S.A.(MEGLO) | 90.00 | % | |||||||||
NBP Brasil, S.A. | Rua Padre Adelino. No 758, 3o andar, Quarta Parada. CEP 03303-904. Brazil | Inactive | Media Capital Produçoes - Investimentos, SGPS, S.A. | 0.01 | % | |||||||||
Plural Entertainment Portugal, S.A. | 99.99 | % | ||||||||||||
Plural Entertainment Canarias, S.L. | Dársena Pesquera. Edificio Plató del Atlántico. San Andrés 38180. Santa Cruz de Tenerife | Production and distribution of audiovisual content | Plural Entertainment España, S.L. | 100.00 | % | |||||||||
Plural Entertainment España, S.L. | Gran Vía, 32. Madrid | Production and distribution of audiovisual content | Media Capital Produçoes - Investimentos, SGPS, S.A. | 100.00 | % | 2/91 | ||||||||
Plural Entertainment Inc. | 1680 Michigan Avenue. Suite 730. Miami Beach. US | Production and distribution of audiovisual content | Plural Entertainment España, S.L. | 100.00 | % | |||||||||
Plural Entertainment Portugal, S.A. | R. José Falcao. 57 - 3o Dt. 1000-184. Lisbon. Portugal | Production of video and film, organisation of shows, rental of sound and lighting, advertising, sales and representation of registered videos | Media Capital Produçoes - Investimentos, SGPS, S.A. | 100.00 | % | |||||||||
Produçao de Eventos, Lda. (MEDIA CAPITAL ENTERTAINMENT) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, graphic art and reproduction of recorded media: magazines, audio publication, video reproduction; and provision of services related to music, radio, television, film, theatre and literary magazines | Media Capital Música e Entretenimento, S.A (MCME) | 100.00 | % | |||||||||
Producciones Audiovisuales, S.A. (NBP IBÉRICA) | Almagro 13. 1o Izquierda. 28010. Madrid | Inactive | Plural Entertainment Portugal, S.A. | 100.00 | % | |||||||||
Productora Canaria de Programas, S.A. | Enrique Wolfson, 17. Santa Cruz de Tenerife | Development of a promotional TV channel for the Canary Islands | Plural Entertainment España, S.L. | 40.00 | % |
F-103
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Produçoes Audiovisuais, S.A. (RADIO CIDADE) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting, production of audio or video advertising spots Advertising, production and recording of discs. Development and production of radio programmes | Media Capital Rádios, S.A (MCR II) | 100.00 | % | |||||||||
Projectos de Media e Publicidade Unipessoal, Lda. (PUPLIPARTNER) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Design, preparation and performance of advertising projects (advisory services, promotion, supply, marketing and the distribution of media goods and services) | Serviços de Consultoria e Gestao, S.A. (MEDIA CAPITAL SERVIÇOS) | 100.00 | % | |||||||||
Promoçao de Projectos de Media, S.A. (UNIDIVISA) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Design, preparation and performance of advertising projects (advisory, promotion, supply, marketing and distribution of media goods and services) | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Radio Comercial, S.A. (COMERCIAL) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting in the areas of programme production and transmission | Media Capital Rádios, S.A (MCR II) | 100.00 | % | |||||||||
RADIO XXI, Lda. (XXI) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting in the areas of programme production and transmission | Radio Comercial, S.A. (COMERCIAL) | 100.00 | % | |||||||||
Rede Teledifusora Independente, S.A. (RETI) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Installation, management and operation of the telecommunication network or networks including transport, signal transmission for TV, radio, computer data, etc. | Televisao Independente, S.A. (TVI) | 100.00 | % | |||||||||
Serviços de Consultoria e Gestao, S.A. (MEDIA CAPITAL SERVIÇOS) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Advisory services, guidance services and operational assistance to public relations companies and organisations | Media Global, SGPS, S.A. (MEGLO) | 100.00 | % | |||||||||
Serviços de Internet, S.A. (IOL NEGÓCIOS) | Rua Tenente Valadim. No 181. 4100-479. Porto. Portugal | Services, publication and sale of electronic goods and services Media publication, production and distribution activities | Editora Multimédia, S.A. (MULTIMÉDIA) | 100.00 | % | |||||||||
Sociedad Canaria de Televisión Regional, S.A. | Avenida de Madrid s/n. Santa Cruz de Tenerife | Audiovisual productions for TV | Plural Entertainment España, S.L. | 40.00 | % |
F-104
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Sociedade de Produçao e Ediçao Audiovisual, Lda. (FAROL MÚSICA) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Production of multimedia, audiovisual and phonogram storage media | Media Capital Música e Entretenimento, S.A (MCME) | 100.00 | % | |||||||||
Televisao Independente, S.A. (TVI) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Performance of any TV-related activity such as the installation, management and operation of any TV channel or infrastructure | Kimberley Trading, S.A. (KIMBERLEY) | 100.00 | % | |||||||||
Tesela Producciones Cinematográficas, S.L. | Gran Vía, 32. Madrid | Production and distribution of audiovisual content | Plural Entertainment España, S.L. | 100.00 | % | 2/91 | ||||||||
Vertix, SGPS, S.A | Rua de las Amoreiras, 107. Lisbon. Portugal | Holdings | Promotora de Informaciones, S.A. | 100.00 | % | |||||||||
Equity method | ||||||||||||||
Empresa Europeia de Produçao de Documentários, Lda. (NANNOK) | Avenida Elias García 57 - 7o. 1000-148. Lisbon. Portugal | Advertising, production, sale and distribution of storage media and other multimedia content | Plural Entertainment Portugal, S.A. | 26.00 | % | |||||||||
Uniao de Leiria, SAD. (UNIAO DE LEIRIA) | Estádio Dr. Magalhaes Pessoa. 2400-000. Leiria. Portugal | Football team management | Media Global, SGPS, S.A. (MEGLO) | 20.16 | % | |||||||||
Proportionate consolidation | ||||||||||||||
Plural — Jempsa, S.L. | Gran Vía, 32. Madrid | Production and distribution of audiovisual content | Plural Entertainment España, S.L. | 50.00 | % | |||||||||
DIGITAL | ||||||||||||||
Full consolidation | ||||||||||||||
Infotecnia 11824, S.L. | Ronda de Poniente 7. Tres Cantos. Madrid | Provision of telecommunication services | Prisacom, S.L. | 60.00 | % | |||||||||
Prisacom, S.L. | Gran Vía, 32. Madrid | Provision of internet services | Oficina del Autor, S.L. | 1 share | 2/91 | |||||||||
Promotora de Informaciones, S.A. | 100.00 | % | ||||||||||||
PRINTING | ||||||||||||||
Full consolidation | ||||||||||||||
Prisaprint, S.L. | Gran Vía, 32. Madrid | Management of printing companies | Grupo Empresarial de Medios Impresos, S.L. | 0.00 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 100.00 | % | ||||||||||||
Equity method | ||||||||||||||
Altamira, S.A. | Carretera de Pinto a Fuenlabrada, Km. 20,8. Madrid | Printing of publishing products | Dédalo Heliocolor, S.A. | 100.00 | % | 225/04 | ||||||||
Bidasoa Press, S.L. | Calle Malilla No 134. 46026. Valencia | Printing of publishing products | Dédalo Grupo Gráfico, S.L. | 100.00 | % | 225/04 |
F-105
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Dédalo Grupo Gráfico, S.L. | Carretera de Pinto a Fuenlabrada, Km. 20,8. Madrid | Printing of publishing products | Prisaprint, S.L. | 40.00 | % | |||||||||
Dédalo Heliocolor, S.A. | Ctra. Nacional II. Km. 48, 500 Polígono Industrial No I. 19171. Cabanillas del Campo. Guadalajara | Printing of publishing products | Dédalo Grupo Gráfico, S.L. | 100.00 | % | 225/04 | ||||||||
Dédalo Offset, S.L. | Carretera de Pinto a Fuenlabrada, Km. 20,8. Madrid | Printing of publishing products | Dédalo Grupo Gráfico, S.L. | 100.00 | % | 225/04 | ||||||||
Distribuciones Aliadas, S.A. | Polígono Industrial La Isla. Parcela 53. 41700 Dos Hermanas. Seville | Printing of publishing products | Dédalo Grupo Gráfico, S.L. | 100.00 | % | 225/04 | ||||||||
Gráficas Integradas, S.A. | Calle Camino de los Afligidos S/N. Alcalá de Henares. Madrid | Printing of publishing products | Dédalo Heliocolor, S.A. | 100.00 | % | 225/04 | ||||||||
Norprensa, S.A. | Parque Empresarial IN-F. Calle Costureiras. s/n 27003. Lugo | Printing of publishing products | Dédalo Grupo Gráfico, S.L. | 100.00 | % | 225/04 | ||||||||
DISTRIBUTION | ||||||||||||||
Full consolidation | ||||||||||||||
Aldipren, S.L. | Polígono Campollano. Calle de Distribución. Número 34-38. 02006 Albacete | Storage and distribution of publishing products | Grupo Cronos Distribución Integral, S.L. | 65.00 | % | |||||||||
Cronodís Logística Integral, S.L. | Calle El Rayo. Parcela 2,4,2. Polígono Industrial La Quinta /R2. 19171. Cabanillas del Campo. Guadalajara | Storage and distribution of publishing products | Grupo Cronos Distribución Integral, S.L. | 95.00 | % | |||||||||
Districuen, S.L. | Polígono La Cerrajera. Parcela 36. Cuenca | Storage and distribution of publishing products | Grupo Cronos Distribución Integral, S.L. | 65.00 | % | |||||||||
Distritoledo, S.L. | Polígono Industrial de Toledo II Fase. Calle Arrollo Gadea, 9. 45007. Toledo | Distribution and sale of publishing products | Grupo Cronos Distribución Integral, S.L. | 79.50 | % | |||||||||
Gelesa Gestión Logística, S.L. | Almanaque No 5. Polígono Fin de Semana. 28022. Madrid | Distribution of publications | Grupo Cronos Distribución Integral, S.L. | 100.00 | % | |||||||||
Grupo Cronos Distribución Integral, S.L. | Almanaque No 5. Polígono Fin de Semana. 28022. Madrid | Distribution and sale of publishing products | Redprensa, S.L.U. | 50.00 | % | |||||||||
Redprensa, S.L.U. | Gran Vía, 32. Madrid | Holdings | Promotora de Informaciones, S.A. | 100.00 | % | 2/91 | ||||||||
Equity method | ||||||||||||||
Beralán, S.L. | Igarategi Industrialdea. No 58. 20130. Urnieta. Guipúzcoa | Distribution of publishing products | Redprensa, S.L.U. | 22.25 | % | |||||||||
Cirpress, S.L. | Polígono Tazaba II. Parcela 31. Logrezana -Carreño. 33438. Asturias | Distribution of publishing products | Redprensa, S.L.U. | 24.70 | % | |||||||||
Dima Distribución Integral, S.L. | Calle Confianza, 1. Polígono Industrial Los Olivos. 28065. Getafe. Madrid | Distribution of publishing products | Redprensa, S.L.U. | 33.66 | % |
F-106
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Diserpe, S.R.L.U. | Calle Dels Argenters 4. P.I. Vara de Quart. 46014. Valencia | Distribution of publishing products | Val Disme, S.L. | 100.00 | % | |||||||||
Distribuciones Papiro, S.L. | C/Pasteur 15. Polígono Industrial El Montalbo. 37008 Salamanca | Distribution of publishing products | Redprensa, S.L.U. | 25.14 | % | |||||||||
Distribuciones Ricardo Rodríguez, S.L. | Polígono Asegra. Calle Córdoba.18-20. 18210. Peligros. Granada | Distribution of publishing products | Distrimedios, S.L. | 70.00 | % | |||||||||
Distribuidora Almeriense de Publicaciones, S.L. | Sierra Cabrera, 1. Polígono Industrial La Juaida. Viator. Almeria | Distribution of publishing products | Distrimedios, S.L. | 70.00 | % | |||||||||
Distribuidora Cordobesa de Medios Editoriales, S.L. | Calle Prolongación Ingeniero Torres Quevedo s/n. Polígono Industrial de la Torrecilla. 14013. Cordoba | Distribution of publishing products | Distrimedios, S.L. | 70.00 | % | |||||||||
Distribuidora de Publicaciones Boreal, S.L. | Rua Alcalde Ramón Añón. Parcela79-81. 15199. Culleredo. A Coruña | Distribution of publishing products | Redprensa, S.L.U. | 29.00 | % | |||||||||
Distribuidora Extremeña de Publicaciones, S.L. | Polígono Industrial Prado. Calle Valencia 14. 06800 Mérida. Badajoz | Distribution of publishing products | Distrimedios, S.L. | 70.00 | % | |||||||||
Distribuidora Jienense de Publicaciones, S.L. | Polígono Industrial Los Olivares. Calle 5. Parcela 526. Jaén | Distribution of publishing products | Distrimedios, S.L. | 100.00 | % | |||||||||
Distrigalicia, S.L. | Carretera de Catabais Km. 3,300 de Ferrol. A Coruña | Storage and distribution of publishing products | Distribuidora de Publicaciones Boreal, S.L. | 100.00 | % | |||||||||
Distrimedios, S.L. | Agricultura. Parcela D-10 (P. Empresarial). Jeréz. Cadiz | Distribution of publishing products | Redprensa, S.L.U. | 29.00 | % | |||||||||
Marina BCN Distribucions, S.L.(fomerly Marina Press Distribuciones, S.L.) | Calle E. No 1. Esquina Calle 6 (Sector E). 08040. Barcelona | Distribution of publishing products | Redprensa, S.L.U. | 30.00 | % | |||||||||
Prensa Serviodiel, S.L. | Polígono Tartessos 309, Calle A. 21610. San Juan del Puerto. Huelva | Distribution of publishing products | Distrimedios, S.L. | 70.00 | % | |||||||||
Souto, S.L. | Polígono Industrial Oceao, Calle Da Industria, 107. 27003. Lugo | Distribution of publications | Distribuidora de Publicaciones Boreal, S.L. | 100.00 | % | |||||||||
Suscripciones de Medios Editoriales, S.L. | Calle de la Agricultura, Parque Empresarial Parcela D10. 11407. Jeréz de la Frontera. Cadiz | Distribution of publishing products | Distrimedios, S.L. | 100.00 | % |
F-107
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Trecedis, S.L. | Calle Avenida de Bruselas, 5. Arrollo de la Vega. 28108. Alcobendas. Madrid | Distribution of publications | Beralán, S.L. | 8.14 | % | |||||||||
Cirpress, S.L. | 8.14 | % | ||||||||||||
Distribuciones Papiro, S.L. | 8.14 | % | ||||||||||||
Distribuidora de Publicaciones Boreal, S.L. | 8.14 | % | ||||||||||||
Distrimedios, S.L. | 8.14 | % | ||||||||||||
Grupo Cronos Distribución Integral, S.L. | 8.14 | % | ||||||||||||
Marina Press Distribuciones, S.L. | 8.14 | % | ||||||||||||
Val Disme, S.L. | 8.14 | % | ||||||||||||
Val Disme, S.L. | Calle Dels Argenters 4. P.I. Vara de Quart. 46014. Valencia | Distribution of publishing products | Redprensa, S.L.U. | 23.75 | % | |||||||||
MEDIA ADVERTISING SALES | ||||||||||||||
Full consolidation | ||||||||||||||
Gerencia de Medios, S.A. | Gran Vía, 32. Madrid | Contracting of advertising exclusives | Promotora de Informaciones, S.A. | 100.00 | % | 2/91 | ||||||||
Redprensa, S.L.U. | 0.01 | % | ||||||||||||
Prisa Innova, S.L. | Gran Vía, 32. Madrid | Management of promotional products and services | Diario El País, S.L. | 0.05 | % | 2/91 | ||||||||
Gerencia de Medios, S.A. | 99.95 | % | ||||||||||||
Solomedios, S.A. | Gran Vía, 32. Madrid | Advertising management | Gerencia de Medios, S.A. | 99.97 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 0.03 | % | ||||||||||||
OTHER | ||||||||||||||
Full consolidation | ||||||||||||||
GLP Colombia, Ltda | Carrera 9, 9907 Oficina 1200. Bogotá. Colombia | Operation and sale of all manner of advertising | Prisa División Internacional, S.L. | 100.0 | % | |||||||||
Oficina del Autor, S.L. | Gran Vía, 32. Madrid | Management of publishing rights and author representation | Prisacom, S.A. | 1 share | 2/91 | |||||||||
Promotora de Informaciones, S.A. | 100.0 | % | ||||||||||||
Prisa División Inmobiliaria, S.L. | Gran Vía, 32. Madrid | Lease of commercial and industrial premises | Grupo Santillana de Ediciones, S.L. | 0.0 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 100.00 | % | ||||||||||||
Prisa División Internacional, S.L. | Gran Vía, 32. Madrid | Holdings in foreign companies | Grupo Empresarial de Medios Impresos, S.L. | 0.00 | % | 2/91 | ||||||||
Promotora de Informaciones, S.A. | 100.0 | % | ||||||||||||
Prisa Finance (Netherlands) BV | Gran Vía, 32. Madrid | Holdings in and financing of companies | Promotora de Informaciones, S.A. | 100.0 | % | |||||||||
Prisa Inc. | 5300 First Union Financial Centre. Miami. Florida. US | Management of companies in the US and North America | Prisa División Internacional, S.L. | 100.00 | % |
F-108
Appendix I | ||||||||||||||
Companies Included in the Scope of Consolidation: December 2009 | ||||||||||||||
December 2009 | ||||||||||||||
Company Holding the | Percentage of | Tax | ||||||||||||
Company | Registered Office | Line of Business | Ownership Interest | Ownership | Group (*) | |||||||||
Promotora de Actividades América 2010, S.L. | Gran Vía, 32. Madrid | Production and organisation of activities and projects marking the bicentenary of American Independence | Promotora de Informaciones, S.A. | 99.00 | % | 2/91 | ||||||||
Prisa División Internacional, S.L. | 1.00 | % | ||||||||||||
Promotora de Actividades América 2010 Colombia, Ltda. | Carrera 9. No 74-08. Oficina 504. Bogotá. Colombia | Development, co-ordination and management of all manner of international and national projects marking the bicentenary of American Independence | Promotora de Actividades América 2010, S.L. | 98.33 | % | |||||||||
Prisa División Internacional, S.L. | 1.67 | % | ||||||||||||
Promotora de Actividades América 2010 — México, S.A. de C.V. | Avenida Paseo de la Reforma 300. Piso 9. Col. Juárez. 06600. Mexico City. Mexico | Development, co-ordination and management of all manner of international and national projects marking the bicentenary of American Independence | Promotora de Actividades América 2010, S.L. | 100.00 | % | |||||||||
Prisa División Internacional, S.L. | 1 share | |||||||||||||
Promotora de Actividades Audiovisuales de Colombia, Ltda. | Calle 80, 10 23 . Bogotá. Colombia | Production and distribution of audiovisual content | Prisa División Internacional, S.L. | 99.00 | % | |||||||||
Promotora de Informaciones, S.A. | 1.00 | % |
F-109
ACCOUNTED FOR USING THE EQUITY METHOD
December 2009 | December 2008 | |||||||||||||||||||||||||||||||
Total | Operating | Net Profit | Total | Operating | Net Profit | |||||||||||||||||||||||||||
Investee | Assets | Equity | Income | (Loss) | Assets | Equity | Income | (Loss) | ||||||||||||||||||||||||
RADIO | ||||||||||||||||||||||||||||||||
RADIO IN SPAIN | ||||||||||||||||||||||||||||||||
Radio Jaén, S.L. | 1,671 | 1,437 | 1,376 | (94 | ) | 2,050 | 1,530 | 1,750 | 72 | |||||||||||||||||||||||
Unión Radio del Pirineu, S.A. | 588 | 417 | 469 | 84 | 541 | 334 | 524 | 105 | ||||||||||||||||||||||||
INTERNATIONAL RADIO | ||||||||||||||||||||||||||||||||
El Dorado Broadcasting Corporation | 416 | (1,184 | ) | — | — | 423 | (1,198 | ) | — | 7 | ||||||||||||||||||||||
Green Emerald Business Inc. | 1,034 | (1,718 | ) | 647 | (256 | ) | 1,202 | (1,484 | ) | 731 | (286 | ) | ||||||||||||||||||||
WSUA Broadcasting Corporation | 3,775 | (3,671 | ) | 312 | (381 | ) | 3,920 | (3,329 | ) | 290 | (173 | ) | ||||||||||||||||||||
W3 Comm Concesionaria, S.A. de C.V. | 1,009 | (694 | ) | 460 | 45 | 1,024 | (834 | ) | 463 | (435 | ) | |||||||||||||||||||||
AUDIOVISUAL | ||||||||||||||||||||||||||||||||
SOGECABLE | ||||||||||||||||||||||||||||||||
Canal Club de Distribución de Ocio y Cultura, S.A. | 5,845 | 5,446 | 14,139 | 788 | 5,795 | 4,909 | 18,097 | 279 | ||||||||||||||||||||||||
Canal + Investment Inc. | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
Compañía Independiente de Noticias de TV, S.L. | 12,398 | (5,673 | ) | 37,459 | (303 | ) | 10,845 | (5,371 | ) | 38,269 | (900 | ) | ||||||||||||||||||||
LOCAL TELEVISION | ||||||||||||||||||||||||||||||||
Grupo de Comunicación y Televisión Castilla La Mancha, S.A. | 1,455 | (130 | ) | n/a | (451 | ) | 1,607 | 322 | n/a | (93 | ) | |||||||||||||||||||||
Riotedisa, S.A. | 386 | (478 | ) | n/a | (84 | ) | 490 | (394 | ) | 61 | (173 | ) | ||||||||||||||||||||
Televisión Digital de Baleares, S.L. | n/a | 1,176 | n/a | (12 | ) | 1,202 | 1,176 | — | (5 | ) | ||||||||||||||||||||||
MEDIA CAPITAL | ||||||||||||||||||||||||||||||||
Empresa Europeia de Produçao de Documentários, Lda. (Nannok) | n/a | n/a | n/a | n/a | 442,500 | (123,868 | ) | n/a | n/a | |||||||||||||||||||||||
Uniao de Leiria, SAD. (UNIAO DE LEIRIA) | n/a | n/a | n/a | n/a | 8,726 | 3,357 | 4,552 | (1,966 | ) | |||||||||||||||||||||||
PRINTING | ||||||||||||||||||||||||||||||||
Dédalo Grupo Gráfico, S.L. y sociedades dependientes | 224,934 | (47,502 | ) | 97,680 | (34,047 | ) | 254,932 | (13,301 | ) | 118,097 | (26,320 | ) | ||||||||||||||||||||
DISTRIBUTION | ||||||||||||||||||||||||||||||||
Beralán, S.L. | 16,063 | 6,456 | 140,726 | 2,604 | 13,675 | 4,652 | 142,901 | 1,665 | ||||||||||||||||||||||||
Cirpress, S.L. | 6,223 | 1,845 | 30,336 | 609 | 5,608 | 1,543 | 31,037 | 751 | ||||||||||||||||||||||||
Dima Distribución Integral, S.L. | 500 | 500 | — | — | n/a | — | — | — | ||||||||||||||||||||||||
Diserpe, S.R.L.U. | 1,038 | 573 | 3,423 | 128 | 1,126 | 568 | 4,294 | 322 | ||||||||||||||||||||||||
Distribuciones Papiro, S.L. | 5,390 | 1,997 | 52,072 | 600 | 6,562 | 1,392 | 58,250 | 691 | ||||||||||||||||||||||||
Distribuciones Ricardo Rodríguez, S.L. | 3,466 | 175 | 26,934 | 295 | 4,436 | 246 | 30,962 | 596 | ||||||||||||||||||||||||
Distribuidora Almeriense de Publicaciones, S.L. | 2,606 | 418 | 14,808 | 138 | 3,126 | 427 | 16,606 | 299 | ||||||||||||||||||||||||
Distribuidora Cordobesa de Medios Editoriales, S.L. | 4,496 | 151 | 22,375 | 143 | 4,640 | 85 | 23,876 | 150 | ||||||||||||||||||||||||
Distribuidora de Publicaciones Boreal, S.L. | 17,275 | 7,931 | 39,917 | 566 | 16,876 | 7,461 | 43,070 | 746 | ||||||||||||||||||||||||
Distribuidora Extremeña de Publicaciones, S.L. | 10,252 | �� | 1,605 | 34,634 | 557 | 12,114 | 1,438 | 37,081 | 696 | |||||||||||||||||||||||
Distribuidora Jienense de Publicaciones, S.L. | 1,956 | 331 | 12,273 | 36 | 2,159 | 286 | 13,844 | 15 | ||||||||||||||||||||||||
Distrigalicia, S.L. | 6,547 | 2,314 | 27,874 | 475 | 6,499 | 1,808 | 30,311 | 336 | ||||||||||||||||||||||||
Distrimedios, S.L. | 36,492 | 3,053 | 99,960 | 2,077 | 22,506 | 2,607 | 111,080 | 2,731 | ||||||||||||||||||||||||
Marina BCN Distribucions, S.L.(formerly Marina Press Distribuciones, S.L.) | 28,727 | 5,727 | 140,235 | 1,161 | 17,581 | 4,566 | 141,899 | 1,493 | ||||||||||||||||||||||||
Prensa Serviodiel, S.L. | 1,779 | 277 | 11,863 | 275 | 2,079 | 122 | 12,206 | 302 | ||||||||||||||||||||||||
Souto, S.L. | 2,230 | 827 | 8,478 | 129 | 2,114 | 697 | 8,904 | 221 | ||||||||||||||||||||||||
Suscripciones de Medios Editoriales, S.L. | 2,014 | 440 | 5,861 | 90 | 4,771 | 316 | 7,164 | 174 | ||||||||||||||||||||||||
Trecedis, S.L. | 13,351 | 2,853 | 168,656 | 190 | 14,801 | 2,613 | 160,849 | 162 | ||||||||||||||||||||||||
Val Disme, S.L. | 25,019 | 6,188 | 154,426 | 1,102 | 24,222 | 5,139 | 168,456 | 1,900 |
F-110
F-111
F-112
Notes | 06/30/10 | 12/31/09 | ||||||||||
(Thousands of euros) | ||||||||||||
ASSETS | ||||||||||||
A) NON-CURRENT ASSETS | 6,434,052 | 6,420,766 | ||||||||||
I. PROPERTY, PLANT AND EQUIPMENT | 3 | 341,048 | 345,754 | |||||||||
III. GOODWILL | 4 | 4,325,147 | 4,319,603 | |||||||||
IV. INTANGIBLE ASSETS | 5 | 358,398 | 365,670 | |||||||||
V. NON-CURRENT FINANCIAL ASSETS | 6 | 58,191 | 57,218 | |||||||||
VI. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 29,202 | 13,644 | ||||||||||
VII. DEFERRED TAX ASSETS | 1,317,841 | 1,313,820 | ||||||||||
VIII. OTHER NON-CURRENT ASSETS | 4,225 | 5,057 | ||||||||||
B) CURRENT ASSETS | 1,659,906 | 1,514,898 | ||||||||||
I. INVENTORIES | 223,057 | 218,066 | ||||||||||
II. TRADE AND OTHER RECEIVABLES | ||||||||||||
1. Trade receivables for sales and services | 1,060,754 | 991,723 | ||||||||||
2. Receivable from associates | 16,853 | 16,077 | ||||||||||
3. Receivable from public authorities | 86,080 | 56,463 | ||||||||||
4. Other receivables | 257,905 | 221,645 | ||||||||||
6. Allowances | (78,908 | ) | (78,704 | ) | ||||||||
1,342,684 | 1,207,204 | |||||||||||
III. CURRENT FINANCIAL ASSETS | 3,068 | 6,593 | ||||||||||
IV. CASH AND CASH EQUIVALENTS | 90,872 | 82,810 | ||||||||||
V. OTHER CURRENT ASSETS | 225 | 225 | ||||||||||
C) ASSETS HELD FOR SALE | 250,812 | 257,388 | ||||||||||
TOTAL ASSETS | 8,344,770 | 8,193,052 | ||||||||||
EQUITY AND LIABILITIES | ||||||||||||
A) EQUITY | 1,568,283 | 1,373,019 | ||||||||||
I. SHARE CAPITAL | 21,914 | 21,914 | ||||||||||
II. OTHER RESERVES | 825,536 | 833,697 | ||||||||||
III. ACCUMULATED PROFIT | 488,548 | 403,478 | ||||||||||
— From prior years | 427,666 | 352,999 | ||||||||||
— For the year: Profit attributable to the Parent | 60,882 | 50,479 | ||||||||||
IV. TREASURY SHARES | — | (3,044 | ) | |||||||||
V. EXCHANGE DIFFERENCES | 29,361 | (1,561 | ) | |||||||||
VI. NON CONTROLLING INTEREST | 202,924 | 118,535 | ||||||||||
B) NON-CURRENT LIABILITIES | 2,259,010 | 2,351,466 | ||||||||||
I. NON-CURRENT BANK BORROWINGS | 7 | 1,743,582 | 1,917,963 | |||||||||
II. NON-CURRENT FINANCIAL LIABILITIES | 7 | 359,831 | 249,538 | |||||||||
III. DEFERRED TAX LIABILITIES | 45,458 | 72,799 | ||||||||||
IV. LONG-TERM PROVISIONS | 93,524 | 90,150 | ||||||||||
V. OTHER NON-CURRENT LIABILITIES | 16,615 | 21,016 | ||||||||||
C) CURRENT LIABILITIES | 4,321,788 | 4,263,133 | ||||||||||
I. TRADE PAYABLES | 1,127,246 | 1,181,437 | ||||||||||
II. PAYABLE TO ASSOCIATES | 15,998 | 10,955 | ||||||||||
III. OTHER NON-TRADE PAYABLES | 102,109 | 107,693 | ||||||||||
IV. CURRENT BANK BORROWINGS | 7 | 2,752,330 | 2,796,362 | |||||||||
V. CURRENT FINANCIAL LIABILITIES | 3,708 | 3,295 | ||||||||||
VI. PAYABLE TO PUBLIC AUTHORITIES | 283,986 | 124,288 | ||||||||||
VII. PROVISIONS FOR RETURNS | 6,815 | 9,417 | ||||||||||
VIII. OTHER CURRENT LIABILITIES | 29,596 | 29,686 | ||||||||||
D) LIABILITIES HELD FOR SALE | 195,689 | 205,434 | ||||||||||
TOTAL EQUITY AND LIABILITIES | 8,344,770 | 8,193,052 | ||||||||||
F-113
Notes | 06/30/10 | 06/30/09 | ||||||||||
(Thousands of euros) | ||||||||||||
Revenues | 1,516,487 | 1,655,411 | ||||||||||
Other income | 60,811 | 22,271 | ||||||||||
OPERATING INCOME | 1,577,298 | 1,677,682 | ||||||||||
Cost of materials used | (568,707 | ) | (653,873 | ) | ||||||||
Staff costs | 8 | (306,229 | ) | (310,315 | ) | |||||||
Depreciation and amortisation charge | (83,118 | ) | (92,626 | ) | ||||||||
Outside services | (409,760 | ) | (414,650 | ) | ||||||||
Variation in operating allowances | (9,895 | ) | (20,249 | ) | ||||||||
Other expenses | (3,552 | ) | (3,448 | ) | ||||||||
OPERATING EXPENSES | (1,381,261 | ) | (1,495,161 | ) | ||||||||
PROFIT FROM OPERATIONS | 196,037 | 182,521 | ||||||||||
Finance income | 4,451 | 9,708 | ||||||||||
Finance costs | (81,064 | ) | (117,411 | ) | ||||||||
Changes in value of financial instruments | (5,654 | ) | (3,728 | ) | ||||||||
Exchange differences (net) | (3,741 | ) | (2,625 | ) | ||||||||
FINANCIAL LOSS | (86,008 | ) | (114,056 | ) | ||||||||
Result of companies accounted for using the equity method | (461 | ) | (4,607 | ) | ||||||||
Loss from other investments | (2,966 | ) | (3,064 | ) | ||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 106,602 | 60,794 | ||||||||||
Income tax | (28,580 | ) | (27,634 | ) | ||||||||
PROFIT FROM CONTINUING OPERATIONS | 78,022 | 33,160 | ||||||||||
Loss after tax from discontinued operations | (87 | ) | (1,974 | ) | ||||||||
CONSOLIDATED PROFIT FOR THE YEAR | 77,935 | 31,186 | ||||||||||
Profit attributable to non controlling interests | (17,053 | ) | (3,961 | ) | ||||||||
PROFIT ATTRIBUTABLE TO THE PARENT | 60,882 | 27,225 | ||||||||||
BASIC EARNINGS PER SHARE (in euros) | 0.28 | 0.12 | ||||||||||
F-114
06/30/10 | 06/30/09 | |||||||
(Thousands of euros) | ||||||||
PROFIT FOR THE YEAR | 77,935 | 31,186 | ||||||
Net income recognized directly in equity | 52,386 | 26,067 | ||||||
Arising from translation differences | 52,386 | 26,067 | ||||||
TOTAL INCOME AND EXPENSE RECOGNISED IN THE YEAR | 130,321 | 57,253 | ||||||
Attributable to the parent company | 93,701 | 47,542 | ||||||
Attributable to non controlling interest | 36,620 | 9,711 |
F-115
Reserves for | ||||||||||||||||||||||||||||||||||||||||||||
First-Time | Prior Years’ | Accumulated | Equity | Non | ||||||||||||||||||||||||||||||||||||||||
Share | Share | Application | Accumulated | Treasury | Exchange | Profit | Attributable to | Controlling | ||||||||||||||||||||||||||||||||||||
Capital | Premium | Reserves | of IFRSs | Profit | Shares | Differences | for the Year | the Parent | Interests | Total Equity | ||||||||||||||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2008 | 21,914 | 112,665 | 738,924 | (72,364 | ) | 315,979 | (24,726 | ) | (18,422 | ) | 82,996 | 1,156,966 | 101,270 | 1,258,236 | ||||||||||||||||||||||||||||||
Treasury share transactions | ||||||||||||||||||||||||||||||||||||||||||||
— Delivery of treasury shares | 290 | 290 | 290 | |||||||||||||||||||||||||||||||||||||||||
— Sale of treasury shares | 40 | 40 | 40 | |||||||||||||||||||||||||||||||||||||||||
— Purchase of treasury shares | (383 | ) | (383 | ) | (383 | ) | ||||||||||||||||||||||||||||||||||||||
— Reserves for treasury shares | 14,284 | (13,936 | ) | 348 | 348 | |||||||||||||||||||||||||||||||||||||||
Distribution of 2008 profit | ||||||||||||||||||||||||||||||||||||||||||||
— Directors’ remuneration | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends | ||||||||||||||||||||||||||||||||||||||||||||
— Reserves | 37,161 | 45,835 | (82,996 | ) | ||||||||||||||||||||||||||||||||||||||||
Income and expense recognised in equity | ||||||||||||||||||||||||||||||||||||||||||||
— Translation differences | 9,343 | 10,974 | 20,317 | 5,750 | 26,067 | |||||||||||||||||||||||||||||||||||||||
— Profit for 2009 | 27,225 | 27,225 | 3,961 | 31,186 | ||||||||||||||||||||||||||||||||||||||||
Other | (3,370 | ) | (3,370 | ) | 2,443 | (927 | ) | |||||||||||||||||||||||||||||||||||||
Changes in non controlling interest | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends paid during the year | (5,093 | ) | (5,093 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to changes in scope of consolidation | (395 | ) | (395 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to changes in percentage of ownership | ||||||||||||||||||||||||||||||||||||||||||||
Balance at 30 June 2009 | 21,914 | 112,665 | 790,369 | (72,364 | ) | 367,787 | (38,715 | ) | (7,448 | ) | 27,225 | 1,201,433 | 107,936 | 1,309,369 | ||||||||||||||||||||||||||||||
F-116
Reserves for | ||||||||||||||||||||||||||||||||||||||||||||
First-Time | Prior Years’ | Accumulated | Equity | Non | ||||||||||||||||||||||||||||||||||||||||
Share | Share | Application | Accumulated | Treasury | Exchange | Profit | Attributable to | Controlling | ||||||||||||||||||||||||||||||||||||
Capital | Premium | Reserves | of IFRSs | Profit | Shares | Differences | for the Year | the Parent | Interests | Total Equity | ||||||||||||||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at 31 December 2009 | 21,914 | 112,665 | 793,370 | (72,338 | ) | 352,999 | (3,044 | ) | (1,561 | ) | 50,479 | 1,254,484 | 118,535 | 1,373,019 | ||||||||||||||||||||||||||||||
Treasury share transactions | ||||||||||||||||||||||||||||||||||||||||||||
— Delivery of treasury shares | 510 | 510 | 510 | |||||||||||||||||||||||||||||||||||||||||
— Sale of treasury shares | 2,542 | 2,542 | 2,542 | |||||||||||||||||||||||||||||||||||||||||
— Purchase of treasury shares | ||||||||||||||||||||||||||||||||||||||||||||
— Reserves for treasury shares | 8 | (8 | ) | |||||||||||||||||||||||||||||||||||||||||
Distribution of 2009 profit | ||||||||||||||||||||||||||||||||||||||||||||
— Directors’ remuneration | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends | ||||||||||||||||||||||||||||||||||||||||||||
— Reserves | (7,682 | ) | 58,161 | (50,479 | ) | |||||||||||||||||||||||||||||||||||||||
Income and expense recognised in equity | ||||||||||||||||||||||||||||||||||||||||||||
— Translation differences | 1,897 | 30,922 | 32,819 | 19,567 | 52,386 | |||||||||||||||||||||||||||||||||||||||
— Profit for 2010 | 60,882 | 60,882 | 17,053 | 77,935 | ||||||||||||||||||||||||||||||||||||||||
Changes in ownership interest in subsidiaries | 19,199 | 19,199 | 19,199 | |||||||||||||||||||||||||||||||||||||||||
Other | (163 | ) | (323 | ) | (4,591 | ) | (5,077 | ) | (15,298 | ) | (20,375 | ) | ||||||||||||||||||||||||||||||||
Changes in non controlling interest | ||||||||||||||||||||||||||||||||||||||||||||
— Dividends paid during the year | (9,623 | ) | (9,623 | ) | ||||||||||||||||||||||||||||||||||||||||
— Due to changes in scope of consolidation | ||||||||||||||||||||||||||||||||||||||||||||
— Due to changes in percentage of ownership | 72,690 | 72,690 | ||||||||||||||||||||||||||||||||||||||||||
Balance at 30 June 2010 | 21,914 | 112,665 | 785,533 | (72,661 | ) | 427,665 | 0 | 29,361 | 60,882 | 1,365,359 | 202,924 | 1,568,283 | ||||||||||||||||||||||||||||||||
F-117
06/30/10 | 06/30/09 | |||||||
(Thousands of euros) | ||||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 106,602 | 60,794 | ||||||
Depreciation and amortisation charge | 96,450 | 116,208 | ||||||
Changes in working capital | (169,374 | ) | (110,187 | ) | ||||
Inventories | (2,369 | ) | (1,818 | ) | ||||
Accounts receivable | (125,188 | ) | (170,523 | ) | ||||
Accounts payable | (48,807 | ) | 64,584 | |||||
Other current assets | 6,990 | (2,430 | ) | |||||
Income tax recovered (paid) | (14,905 | ) | (9,850 | ) | ||||
Other profit adjustments | 85,096 | 94,018 | ||||||
Sale of assets | 86,008 | 114,054 | ||||||
Financial results | — | (2,453 | ) | |||||
Other adjustments | (912 | ) | (17,583 | ) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | 103,869 | 150,983 | ||||||
Recurrent investments | (66,569 | ) | (55,431 | ) | ||||
Investments in intangible assets | (43,847 | ) | (43,583 | ) | ||||
Investments in property, plant and equipment | (22,722 | ) | (11,848 | ) | ||||
Investments in non-current financial assets | (12,175 | ) | (1,118 | ) | ||||
Proceeds from disposals | — | 8,579 | ||||||
Investments in non-current financial assets | 455 | 26,591 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | (78,289 | ) | (21,379 | ) | ||||
Proceeds and payments relating to equity instruments | 2,850 | (343 | ) | |||||
Proceeds relating to financial liability instruments | 68,336 | 101,426 | ||||||
Payments relating to financial liability instruments | (286,749 | ) | (137,840 | ) | ||||
Dividends and returns on other equity instruments paid | (1,834 | ) | (2,147 | ) | ||||
Interest paid | (61,192 | ) | (88,982 | ) | ||||
Other cash flow from financing activities | (22,887 | ) | (17,031 | ) | ||||
Proceeds from sales of minority interests | 278,619 | — | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | (22,857 | ) | (144,917 | ) | ||||
Effect of foreign exchange rate changes | 5,338 | 3,000 | ||||||
CHANGE IN CASH FLOWS IN THE YEAR | 8,062 | (12,314 | ) | |||||
Cash and cash equivalents at beginning of year | 82,810 | 49,432 | ||||||
Cash and cash equivalents at end of period | 90,872 | 37,118 | ||||||
F-118
F-119
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(1) | BASIS OF PRESENTATION OF THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2010 |
F-120
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(2) | CHANGES IN THE GROUP STRUCTURE |
(3) | PROPERTY, PLANT AND EQUIPMENT |
F-121
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(4) | GOODWILL |
(5) | INTANGIBLE ASSETS |
(6) | FINANCIAL ASSETS |
Thousands of euros | ||||||||||||||||||||||||
Non-current Financial | Current Financial | Total Financial | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||
06/30/10 | 12/31/09 | 06/30/10 | 12/31/09 | 06/30/10 | 12/31/09 | |||||||||||||||||||
Loans and receivables | 17,555 | 15,288 | — | — | 17,555 | 15,288 | ||||||||||||||||||
Held-to-maturity investments | 17,773 | 13,855 | 1,146 | 2,166 | 18,919 | 16,021 | ||||||||||||||||||
Available-for-sale financial assets | 22,863 | 28,075 | 1,922 | 4,427 | 24,785 | 32,502 | ||||||||||||||||||
Total | 58,191 | 57,218 | 3,068 | 6,593 | 61,259 | 63,811 | ||||||||||||||||||
(7) | FINANCIAL LIABILITIES |
Thousands of euros | ||||||||||||||||||||||||
Non-current Financial | Current Financial | Total Financial | ||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||
06/30/10 | 12/31/09 | 06/30/10 | 12/31/09 | 06/30/10 | 12/31/09 | |||||||||||||||||||
Bank borrowings | 1,743,582 | 1,917,963 | 2,752,330 | 2,796,362 | 4,495,912 | 4,714,325 | ||||||||||||||||||
Derivatives | 13,600 | 16,446 | 3,201 | 2,330 | 16,801 | 18,776 | ||||||||||||||||||
Other financial liabilities | 346,231 | 233,092 | 507 | 965 | 346,738 | 234,057 | ||||||||||||||||||
Total | 2,103,413 | 2,167,501 | 2,756,038 | 2,799,657 | 4,859,451 | 4,967,158 | ||||||||||||||||||
F-122
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Drawn-down amount | Drawn-down amount | |||||||
maturing at short | maturing at long | |||||||
term | term | |||||||
Syndicated loan and credit facility to Prisa | 135,522 | 1,441,998 | ||||||
Bridge loan to Prisa | 1,758,188 | — | ||||||
Subordinated credit facility to Prisa | — | 134,000 | ||||||
Syndicated loan and credit facility to Sogecable | 637,500 | 112,500 | ||||||
Other | 221,120 | 55,084 | ||||||
Total | 2,752,330 | 1,743,582 | ||||||
F-123
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(8) | OPERATING EXPENSES |
06/30/10 | 06/30/09 | |||||||
Men | 7,694 | 7,927 | ||||||
Women | 6,822 | 7,346 | ||||||
Total | 14,516 | 15,273 | ||||||
(9)�� | BUSINESS SEGMENTS |
Thousands of euros | ||||||||
06/30/10 | 06/30/09 | |||||||
Internal market | 1,131,583 | 1,303,567 | ||||||
Exports: | 384,904 | 351,844 | ||||||
a) European Union | 99,792 | 105,774 | ||||||
b) OECD countries | 57,359 | 51,468 | ||||||
c) Other countries | 227,753 | 194,602 | ||||||
Total | 1,516,487 | 1,655,411 | ||||||
• | Audiovisual, which obtains revenue mainly from the subscribers to the Digital+ platform, the broadcasting of advertising and audiovisual production. | |
• | Education, which includes primarily the sale of general publishing and educational books and the sale of training; and | |
• | Radio, the main source of revenue from which is the broadcasting of advertising and, in addition, the organization and management of events and the provision of other supplementary services; | |
• | Press, which groups together mainly the activities relating to the sale of newspapers and magazines, advertising and promotions; |
F-124
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Operating income | ||||||||||||||||||||||||
from external | Operating income | Total Operating | ||||||||||||||||||||||
customers | between segments | income | ||||||||||||||||||||||
06/30/10 | 06/30/09 | 06/30/10 | 06/30/09 | 06/30/10 | 06/30/09 | |||||||||||||||||||
Audiovisual | 853,716 | 980,899 | 6,418 | 5,804 | 860,134 | 986,703 | ||||||||||||||||||
Education | 299,118 | 276,221 | 945 | 2,161 | 300,063 | 278,382 | ||||||||||||||||||
Radio | 192,833 | 175,811 | 4,637 | 6,837 | 197,470 | 182,648 | ||||||||||||||||||
Press | 118,597 | 167,090 | 87,590 | 45,860 | 206,187 | 212,950 | ||||||||||||||||||
Other | 113,034 | 77,661 | (60,382 | ) | (10,141 | ) | 52,652 | 67,519 | ||||||||||||||||
(-) Adjustments and elimination of ordinary income between segments | — | — | (39,208 | ) | (50,521 | ) | (39,208 | ) | (50,521 | ) | ||||||||||||||
Total | 1,577,298 | 1,677,682 | — | — | 1,577,298 | 1,677,681 | ||||||||||||||||||
Profit before tax | ||||||||
from continuing | ||||||||
operations | ||||||||
06/30/10 | 06/30/09 | |||||||
Audiovisual | 50,427 | 42,412 | ||||||
Education | 32,277 | 20,299 | ||||||
Radio | 30,608 | 23,744 | ||||||
Press | 11,413 | 11,239 | ||||||
Other | 2,186 | 8,417 | ||||||
Total profit for the segments reported | 126,911 | 106,111 | ||||||
(+/-) Elimination of internal profits (between segments) | (48,976 | ) | (74,925 | ) | ||||
(+/-) Corporate taxes and/or profits from discontinued operations | 28,667 | 29,608 | ||||||
Total | 106,602 | 60,794 | ||||||
(10) | EVENTS AFTER THE BALANCE SHEET DATE |
F-125
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(11) | RELATED PARTY TRANSACTIONS |
06/30/10 | 06/30/09 | |||||||||||||||
Group employees, | Group employees, | |||||||||||||||
Directors and | companies or | Directors and | companies or | |||||||||||||
executives | entities | executives | entities | |||||||||||||
Services received | 7,183 | 23,433 | 4,516 | 35,851 | ||||||||||||
Other expenses | 7,182 | — | 12,031 | — | ||||||||||||
Total expenses | 14,365 | 23,433 | 16,547 | 35,851 | ||||||||||||
Finance income | — | 263 | — | 679 | ||||||||||||
Provision of services | — | 1,606 | — | 8,644 | ||||||||||||
Total income | — | 1,869 | — | 9,323 | ||||||||||||
F-126
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
06/30/10 | 06/30/09 | |||||||||||||||||||||||
Group employees, | Group employees, | |||||||||||||||||||||||
Significant | companies or | Other related | Significant | companies or | Other related | |||||||||||||||||||
shareholders | entities | parties | shareholders | entities | parties | |||||||||||||||||||
Financing agreements: loans | — | 99,743 | — | — | 97,396 | — | ||||||||||||||||||
Guarantees provided | — | 130,000 | 28,763 | — | 70,000 | 27,685 | ||||||||||||||||||
F-127
AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(12) | REMUNERATION AND OTHER BENEFITS OF DIRECTORS |
Thousands of euros | ||||||||
06/30/10 | 06/30/09 | |||||||
Fixed remuneration | 1,320 | 1,839 | ||||||
Variable remuneration | 1,070 | 1,539 | ||||||
Attendance fees | 1,019 | 1,395 | ||||||
Bylaw-stipulated directors’ emoluments | 180 | 217 | ||||||
Other | 89 | 3,588 | ||||||
Total | 3,678 | 8,578 | ||||||
(13) | ONGOING LITIGATIONS AND CLAIMS |
F-128
Dédalo Grupo Gráfico, S.L.
Madrid, Spain
F-129
Notes | 12/31/09(*) | 12/31/08 | 12/31/07(*) | |||||||||||||
(Thousands of euros) | ||||||||||||||||
ASSETS | ||||||||||||||||
A) NON-CURRENT ASSETS | 146,525 | 159,320 | 198,923 | |||||||||||||
I. INTANGIBLE ASSETS | Note 5 | |||||||||||||||
1. Industrial Property | 1 | 3 | 8 | |||||||||||||
2. Computer software | 488 | 514 | 806 | |||||||||||||
489 | 517 | 814 | ||||||||||||||
II. PROPERTY, PLANT AND EQUIPMENT | Note 6 | |||||||||||||||
1. Land | 5,345 | 5,345 | 2,958 | |||||||||||||
2. Buildings and structures | 28,401 | 29,125 | 25,439 | |||||||||||||
3. Plant | 11,446 | 12,400 | 10,587 | |||||||||||||
4. Machinery and tools | 77,528 | 81,719 | 90,238 | |||||||||||||
5. Other fixtures and furniture | 649 | 768 | 878 | |||||||||||||
6. Other items of property, plant and equipment | 1,482 | 1,505 | 1,052 | |||||||||||||
7. Advances and property, plant and equipment in the course of construction | 442 | 7,195 | 5,849 | |||||||||||||
125,293 | 138,057 | 137,001 | ||||||||||||||
III. NON-CURRENT FINANCIAL ASSETS | ||||||||||||||||
1. Other financial assets | Note 10 | 313 | 316 | 417 | ||||||||||||
313 | 316 | 417 | ||||||||||||||
IV. DEFERRED TAX ASSETS | Note 13 | 20,430 | 20,430 | 20,430 | ||||||||||||
V. GOODWILL ON CONSOLIDATION | Note 7 | — | — | 40,261 | ||||||||||||
B) CURRENT ASSETS | 37,736 | 54,939 | 47,019 | |||||||||||||
I. NON-CURRENT ASSETS HELD FOR SALE | 3,588 | 3,588 | — | |||||||||||||
II. INVENTORIES | Note 8 | 7,865 | 9,927 | 11,482 | ||||||||||||
III. TRADE AND OTHER RECEIVABLES | ||||||||||||||||
1. Trade receivables for sales and services | Note 10 | 17,645 | 17,894 | 21,733 | ||||||||||||
2. Receivable from related parties | Notes 10 and 15 | 6,703 | 11,715 | 10,757 | ||||||||||||
3. Loans to employees | Note 10 | 10 | 96 | 374 | ||||||||||||
4. Sundry accounts receivable | Note 10 | 79 | 10 | 19 | ||||||||||||
5. Other accounts receivable from public authorities | Note 13 | 390 | 2,485 | 1,764 | ||||||||||||
24,827 | 32,200 | 34,647 | ||||||||||||||
IV. CURRENT FINANCIAL ASSETS | ||||||||||||||||
1. Other financial assets | Note 10 | — | 151 | 154 | ||||||||||||
— | 151 | 154 | ||||||||||||||
V. CURRENT PREPAYMENTS AND ACCRUED INCOME | 42 | 125 | 125 | |||||||||||||
VI. CASH AND CASH EQUIVALENTS | ||||||||||||||||
1. Cash | 1,414 | 8,506 | 569 | |||||||||||||
2. Cash equivalents | — | 442 | 42 | |||||||||||||
1,414 | 8,948 | 611 | ||||||||||||||
TOTAL ASSETS | 184,261 | 214,259 | 245,942 | |||||||||||||
(*) | Unaudited figures |
F-130
Notes | 12/31/09(*) | 12/31/08 | 12/31/07(*) | |||||||||||||
(Thousands of euros) | ||||||||||||||||
EQUITY AND LIABILITIES | ||||||||||||||||
A) EQUITY | Note 11 | (88,006 | ) | (57,202 | ) | 11,877 | ||||||||||
A-1) SHAREHOLDERS’ EQUITY | (88,006 | ) | (57,202 | ) | 11,877 | |||||||||||
I. SHARE CAPITAL | 28,458 | 28,458 | 28,458 | |||||||||||||
II. SHARE PREMIUM | 91,085 | 91,085 | 91,085 | |||||||||||||
III. PRIOR YEARS’ LOSSES | (176,483 | ) | (119,302 | ) | (59,663 | ) | ||||||||||
IV. CONSOLIDATION RESERVES | 844 | 12,742 | 17,455 | |||||||||||||
V. RESERVES FOR FIRST-TIME APPLICATION OF IFRSs | (1,106 | ) | (1,106 | ) | (1,106 | ) | ||||||||||
VI. LOSS FOR THE YEAR | (30,804 | ) | (69,079 | ) | (64,352 | ) | ||||||||||
B) NON-CURRENT LIABILITIES | 222,032 | 210,378 | 115,153 | |||||||||||||
I. NON-CURRENT PAYABLES TO RELATED PARTIES | Notes 12 and 15 | 95,981 | 95,814 | 62,490 | ||||||||||||
II. NON-CURRENT PAYABLES | ||||||||||||||||
1. Bank borrowings | Note 12 | 113,982 | 104,567 | 43,040 | ||||||||||||
2. Obligations under finance leases | Note 9 | 72 | 449 | 2,267 | ||||||||||||
3. Derivatives | Note 12 | 5,600 | 3,094 | — | ||||||||||||
119,654 | 108,110 | 45,307 | ||||||||||||||
III. DEFERRED TAX LIABILITIES | Note 13 | 6,151 | 6,151 | 6,898 | ||||||||||||
IV. DEFERRED REVENUE | Note 12 | 246 | 303 | 405 | ||||||||||||
V. OTHER LIABILITIES | — | — | 53 | |||||||||||||
C) CURRENT LIABILITIES | 50,235 | 61,083 | 118,912 | |||||||||||||
I. CURRENT PAYABLES TO RELATED PARTIES | Notes 12 and 15 | 1,716 | 1,364 | 14,751 | ||||||||||||
II. CURRENT PAYABLES | ||||||||||||||||
1. Bank borrowings | Note 12 | 16,782 | 24,641 | 36,218 | ||||||||||||
2. Obligations under finance leases | Note 9 | 374 | 2,626 | 2,979 | ||||||||||||
3. Other financial liabilities | Note 12 | 632 | 3,206 | 2,628 | ||||||||||||
17,788 | 30,473 | 41,825 | ||||||||||||||
III. TRADE AND OTHER PAYABLES | ||||||||||||||||
1. Payable to suppliers and sundry accounts payable | Note 12 | 23,016 | 24,115 | 24,848 | ||||||||||||
2. Payable to suppliers — related parties | Notes 12 and 15 | 820 | 594 | 629 | ||||||||||||
3. Other accounts payable to public authorities | Note 13 | 3,279 | 2,339 | 2,792 | ||||||||||||
4. Remuneration payable | Note 12 | 3,616 | 2,198 | 4,324 | ||||||||||||
5. Provisions | Note 12 | — | — | 29,743 | ||||||||||||
30,731 | 29,246 | 62,336 | ||||||||||||||
TOTAL EQUITY AND LIABILITIES | 184,261 | 214,259 | 245,942 | |||||||||||||
(*) | Unaudited figures |
F-131
Notes | 2009(*) | 2008 | 2007(*) | |||||||||||||
(Thousands of euros) | ||||||||||||||||
A) CONTINUING OPERATIONS | ||||||||||||||||
1. Revenue | Note 14 | 97,455 | 117,431 | 146,445 | ||||||||||||
2. Cost and expenses | (37,389 | ) | (44,562 | ) | (62,466 | ) | ||||||||||
3. Other operating income | ||||||||||||||||
a) Non-core and other current operating income | 115 | 472 | 1,539 | |||||||||||||
115 | 472 | 1,539 | ||||||||||||||
4. Staff costs | ||||||||||||||||
a) Wages, salaries and similar expenses | (34,761 | ) | (37,810 | ) | (67,137 | ) | ||||||||||
b) Employee benefit costs | Note 14 | (9,636 | ) | (10,289 | ) | (13,092 | ) | |||||||||
(44,397 | ) | (48,099 | ) | (80,229 | ) | |||||||||||
5. Other operating expenses | ||||||||||||||||
a) Outside services, taxes other than income tax and other current operating expenses | Notes 9 and 14 | (20,198 | ) | (24,188 | ) | (38,290 | ) | |||||||||
b) Losses on, impairment of and change in allowances for trade receivables | (1,192 | ) | (55 | ) | (215 | ) | ||||||||||
(21,390 | ) | (24,243 | ) | (38,505 | ) | |||||||||||
6. Depreciation and amortization charge | ||||||||||||||||
a) Intangible assets | Note 5 | (263 | ) | (560 | ) | (741 | ) | |||||||||
b) Property, plant and equipment | Note 6 | (14,593 | ) | (14,489 | ) | (16,261 | ) | |||||||||
(14,856 | ) | (15,049 | ) | (17,002 | ) | |||||||||||
7. Impairment and gains or losses on disposals of non-current assets | Note 6 | (123 | ) | (3,087 | ) | (5,378 | ) | |||||||||
8. Impairment of goodwill on consolidation | Note 7 | — | (40,261 | ) | (278 | ) | ||||||||||
A.1) LOSS FROM OPERATIONS | (20,585 | ) | (57,398 | ) | (55,874 | ) | ||||||||||
8. Finance income | ||||||||||||||||
a) From marketable securities and other financial instruments | 54 | 336 | 39 | |||||||||||||
54 | 336 | 39 | ||||||||||||||
9. Finance costs | ||||||||||||||||
a) On debts to related parties | Note 15 | (1,020 | ) | (1,761 | ) | (1,240 | ) | |||||||||
b) On debts to third parties | (6,739 | ) | (7,900 | ) | (7,356 | ) | ||||||||||
c) Loss on derivatives | (2,506 | ) | (3,094 | ) | — | |||||||||||
(10,265 | ) | (12,755 | ) | (8,596 | ) | |||||||||||
10. Exchange differences | (8 | ) | (9 | ) | (7 | ) | ||||||||||
A.2) FINANCIAL LOSS | (10,219 | ) | (12,428 | ) | (8,564 | ) | ||||||||||
A.3) LOSS BEFORE TAX | (30,804 | ) | (69,826 | ) | (64,438 | ) | ||||||||||
11. Income tax | Note 13 | — | 747 | 86 | ||||||||||||
A.4) LOSS FOR THE YEAR | (30,804 | ) | (69,079 | ) | (64,352 | ) | ||||||||||
(*) | Unaudited figures |
F-132
2009(*) | 2008 | 2007(*) | ||||||||||
(Thousands of euros) | ||||||||||||
A) Consolidated loss per income statement | (30,804 | ) | (69,079 | ) | (64,352 | ) | ||||||
B) Total income and expense recognized directly in consolidated equity | — | — | — | |||||||||
C) Total transfers to profit or loss | — | — | — | |||||||||
TOTAL RECOGNIZED INCOME AND EXPENSE | (30,804 | ) | (69,079 | ) | (64,352 | ) | ||||||
(*) | Unaudited figures |
F-133
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR 2009, 2008 AND 2007
Reserves for | ||||||||||||||||||||||||||||
first-time | ||||||||||||||||||||||||||||
Share | Consolidation | application of | Prior years’ | Loss for | ||||||||||||||||||||||||
Share capital | premium | reserves | IFRSs | losses | the year | Total | ||||||||||||||||||||||
(Thousands of euros) | ||||||||||||||||||||||||||||
A. BALANCE AT DECEMBER 31, 2006 (**) | 28,458 | 91,085 | 8,328 | — | (25,055 | ) | (25,481 | ) | 77,335 | |||||||||||||||||||
I. Impact due to transition to IFRS | — | — | — | (1,106 | ) | — | — | (1,106 | ) | |||||||||||||||||||
B. ADJUSTED BALANCE AT DECEMBER 31, 2006 | 28,458 | 91,085 | 8,328 | (1,106 | ) | (25,055 | ) | (25,481 | ) | 76,229 | ||||||||||||||||||
I. Total recognized income and expense | — | — | — | — | — | (64,352 | ) | (64,352 | ) | |||||||||||||||||||
II. Other changes in equity | — | — | 9,127 | — | (34,608 | ) | 25,481 | — | ||||||||||||||||||||
C. BALANCE AT DECEMBER 31, 2007(*) | 28,458 | 91,085 | 17,455 | (1,106 | ) | (59,663 | ) | (64,352 | ) | 11,877 | ||||||||||||||||||
I. Total recognized income and expense | — | — | — | — | — | (69,079 | ) | (69,079 | ) | |||||||||||||||||||
II. Other changes in equity | — | — | (4,713 | ) | — | (59,639 | ) | 64,352 | — | |||||||||||||||||||
D. BALANCE AT DECEMBER 31, 2008 | 28,458 | 91,085 | 12,742 | (1,106 | ) | (119,302 | ) | (69,079 | ) | (57,202 | ) | |||||||||||||||||
I. Total recognized income and expense | — | — | — | — | — | (30,804 | ) | (30,804 | ) | |||||||||||||||||||
II. Other changes in equity | — | — | (11,898 | ) | — | (57,181 | ) | 69,079 | — | |||||||||||||||||||
E. BALANCE AT DECEMBER 31, 2009(*) | 28,458 | 91,085 | 844 | (1,106 | ) | (176,483 | ) | (30,804 | ) | (88,006 | ) | |||||||||||||||||
(*) | Unaudited figures | |
(**) | Obtained from the consolidated financial statements at December 31, 2006, prepared according to Spanish generally accepted accounting principles in force (Royal Decree 1643/1990 December, 20, 1990). |
F-134
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR 2009, 2008 AND 2007
2009(*) | 2008 | 2007(*) | ||||||||||
(Thousands of euros) | ||||||||||||
A) CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
1. Loss for the year before tax | (30,804 | ) | (69,826 | ) | (64,438 | ) | ||||||
2. Adjustments for: | ||||||||||||
a) Depreciation and amortization charge | 14,856 | 15,049 | 17,002 | |||||||||
b) Impairment losses on goodwill | — | 40,261 | 278 | |||||||||
c) Impairment losses | 1,192 | 55 | 215 | |||||||||
d) Changes in provisions | — | (29,796 | ) | 29,488 | ||||||||
e) Gains/Losses on derecognition and disposal of non-current assets | 123 | 3,087 | 5,378 | |||||||||
f) Finance income | (54 | ) | (336 | ) | (39 | ) | ||||||
g) Finance costs | 10,265 | 12,755 | 8,596 | |||||||||
h) Exchange differences | 8 | 9 | 7 | |||||||||
i) Recognition of grants in profit or loss | (57 | ) | (102 | ) | (97 | ) | ||||||
26,333 | 40,982 | 60,828 | ||||||||||
3. Changes in working capital | ||||||||||||
a) Inventories | 2,062 | 1,555 | 3,817 | |||||||||
b) Trade and other receivables | 6,173 | 2,392 | 7,409 | |||||||||
c) Trade and other payables | 1,381 | (3,786 | ) | (12,684 | ) | |||||||
d) Other non-current assets and liabilities | — | — | (849 | ) | ||||||||
9,616 | 161 | (2,307 | ) | |||||||||
4. Other cash flows from operating activities | ||||||||||||
a) Interest paid | (5,660 | ) | (7,490 | ) | (6,902 | ) | ||||||
b) Interest received | 54 | 336 | 39 | |||||||||
(5,606 | ) | (7,154 | ) | (6,863 | ) | |||||||
Cash flows from operating activities | (461 | ) | (35,837 | ) | (12,780 | ) | ||||||
B) CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
5. Payments due to investment | ||||||||||||
a) Intangible assets | (235 | ) | (263 | ) | (86 | ) | ||||||
b) Property, plant and equipment | (4,786 | ) | (20,417 | ) | (23,071 | ) | ||||||
c) Other financial assets | — | (183 | ) | (160 | ) | |||||||
(5,021 | ) | (20,863 | ) | (23,317 | ) | |||||||
6. Proceeds from disposal | ||||||||||||
a) Property, plant and equipment | 2 | 4 | 13 | |||||||||
b) Other financial assets | 154 | 287 | — | |||||||||
156 | 291 | 13 | ||||||||||
Cash flows from investing activities | (4,865 | ) | (20,572 | ) | (23,304 | ) | ||||||
C) CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
7. Proceeds and payments relating to financial liability instruments | ||||||||||||
a) Issue of | ||||||||||||
1. Bank borrowings | 560 | 130,143 | — | |||||||||
2. Borrowings from Group companies and associates | — | 32,000 | 52,062 | |||||||||
560 | 162,143 | 52,062 | ||||||||||
b) Repayment of | ||||||||||||
1. Bank borrowings | (2,768 | ) | (83,825 | ) | (15,755 | ) | ||||||
2. Borrowings from Group companies and associates | — | (13,572 | ) | — | ||||||||
(2,768 | ) | (97,397 | ) | (15,755 | ) | |||||||
Cash flows from financing activities | (2,208 | ) | 64,746 | 36,307 | ||||||||
D) NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS | (7,534 | ) | 8,337 | 223 | ||||||||
Cash and cash equivalents at beginning of year | 8,948 | 611 | 388 | |||||||||
Cash and cash equivalents at end of year | 1,414 | 8,948 | 611 |
(*) | Unaudited figures |
F-135
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2009 (UNAUDITED), 2008 (AUDITED) AND 2007 (UNAUDITED).
a) | Application of International Financial Reporting Standards (IFRSs) |
• | IFRSs are applied in the preparation of the consolidated financial information for the Group. In accordance with IFRSs, the consolidated financial statements of the Group include the following: |
• | Consolidated balance sheet. | |
• | Consolidated income statement. | |
• | Consolidated statement of recognized income and expense. | |
• | Consolidated statement of changes in equity. | |
• | Consolidated statement of cash flows. |
• | As required by IAS 8, uniform accounting policies and measurement bases were applied by the Group for like transactions, events and items in 2009, 2008 and 2007. |
F-136
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Standards, amendments | Obligatory application in the | |||
and interpretations | years beginning on or after (*) | |||
Approved for use in the EU | ||||
Revision of IFRS 3 | Business Combinations | July 1, 2009 | ||
Amendments to IAS 27 | Changes in Ownership Interests | July 1, 2009 | ||
Amendments to IAS 39 | Eligible Hedged Items | July 1, 2009 | ||
Amendments to IAS 32 | Classification of Rights Issues | February 1, 2010 | ||
IFRIC 17 | Distributions of Non-cash Assets to Owners | November 1, 2009 | ||
IFRIC 18 | Transfers of Assets from Customers | November 1, 2009 | ||
Not yet approved for use in the EU | ||||
IFRS 9 | Financial Instruments: Classification and Measurement | January 1, 2013 | ||
2009 Improvements to IFRS | Non-urgent amendments to IFRSs | Various (mainly January 1, 2010) | ||
Amendments to IFRS 2 | Share-based Payment Transactions among Group Entities | January 1, 2010 | ||
Revision of IAS 24 | Related Party Disclosures | January 1, 2011 | ||
Amendments to IFRIC 14 | Prepayments of a Minimum Funding Requirement | January 1, 2011 | ||
IFRIC 19 | Extinguishing Financial Liabilities with Equity Instruments | July 1, 2010 |
(*) | Effective date as adopted by European Union. |
b) | First-time application of IFRSs. |
F-137
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• | Both “Intangible Assets” and assets recognized under “Property, Plant and Equipment” and “Investment Property” may be measured at fair value. The Dédalo Group opted to recognize the aforementioned assets at cost, adjusted for any accumulated amortization or depreciation or any recognized impairment losses. | |
• | An associate which applies IFRSs for the first time subsequent to the company which exercises significant influence or joint control with others over it may measure the assets and liabilities by choosing the carrying amounts which may have been included in the Parent’s consolidated financial statements, at the date of the transition of the Parent to IFRSs. The Dédalo Group has opted to measure the assets and liabilities in its consolidated financial statements at the carrying amount required in accordance with its date of transition to IFRSs. | |
• | The Dédalo Group opted not to apply IFRS 3 retrospectively to the business combinations performed prior to the date of transition to IFRSs. | |
• | The alternatives for presenting the information are as follows: |
• | Presentation of the income statement by nature. | |
• | Calculation of the statement of cash flows using the indirect method. | |
• | Presentation of assets and liabilities in the consolidated balance sheet using the current/non-current classification. |
c) | Responsibility for the information and use of estimates |
F-138
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• | The measurement of assets and goodwill to determine the possible existence of impairment losses (seeNote 4-d and 4-e). | |
• | The useful life of the property, plant and equipment and intangible assets (seeNotes 4-c and 4-b). | |
• | The assumptions used in calculating the fair value of financial instruments (seeNote 4-h). | |
• | The assessment of the likelihood and amount of undetermined or contingent liabilities. | |
• | The calculation of provisions. |
d) | Comparative information |
e) | Grouping of items |
f) | Changes in accounting policies |
g) | Correction of errors |
h) | Going concern principle of accounting |
F-139
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
i) | Working capital |
j) | Basis of consolidation |
F-140
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
a) | Presentation of the consolidated financial statements |
b) | Intangible assets |
c) | Property, plant and equipment |
F-141
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Years of | ||
Estimated | ||
Useful Life | ||
Buildings and structures | 33 | |
Plant and machinery | 12 | |
Other fixtures and furniture | 8-12 | |
Computer hardware | 3-4 | |
Transport equipment | 6 |
d) | Goodwill |
• | If it is attributable to specific assets and liabilities of the companies acquired, increasing the value of the assets whose market values were higher than the carrying amounts at which they had been recognized in their balance sheets and whose accounting treatment was similar to that of the same assets of the Group. | |
• | If it is attributable to non-contingent liabilities, recognizing it in the consolidated balance sheet if it is probable that the outflow of resources to settle the obligation embody economic benefits and the fair value can be measured reliably. | |
• | If it is attributable to specific intangible assets, recognizing it explicitly in the consolidated balance sheet provided that the fair value at the date of acquisition can be measured reliably. | |
• | The remaining amount is recognized as goodwill. |
e) | Impairment losses |
F-142
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
f) | Leases |
F-143
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
g) | Assets classified as held for sale |
h) | Financial instruments |
• | If the risks and rewards associated with the asset are not substantially transferred or retained, the financial asset is derecognized if the control over it is transferred. | |
• | The contractual rights on the cash flows of the asset in question have expired. | |
• | The aforementioned rights have been transferred and substantially all the risks and rewards of ownership have been transferred. | |
• | The financial assets derecognized in the year are not exposed to any type of risk or benefit inherent to their ownership nor does the Group retain any ongoing involvement therein. Also, there were no transfers of financial assets that were not derecognized in the balance sheet. |
F-144
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
i) | Derivative financial instruments and hedge accounting |
j) | Inventories |
k) | Foreign currency transactions |
F-145
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
l) | Current / Non-current classification |
m) | Tax matters |
F-146
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
n) | Revenue and expense recognition |
o) | Government grants (Deferred income) |
p) | Provisions and contingencies |
• | Provisions: credit balances covering present obligations arising from past events, the settlement of which is likely to give rise to an outflow of resources, the amountand/or timing of which cannot be determined. | |
• | Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the Company’s control. |
F-147
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
q) | Related party transactions |
r) | Environmental impact |
s) | Factoring |
t) | Consolidated cash flow statements |
• | Changes in cash flows in the year: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value. | |
• | Operating activities: the principal revenue-producing activities of the Group and other activities that are not investing or financing activities. | |
• | Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents. | |
• | Financing activities: activities that result in changes in the size and composition of equity and borrowings. |
F-148
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
5. | INTANGIBLE ASSETS |
Balance at | Balance at | |||||||||||||||
12/31/08 | Additions | Disposals | 12/31/09 | |||||||||||||
Cost | ||||||||||||||||
Industrial property | 28 | — | — | 28 | ||||||||||||
Computer software | 3,470 | 235 | (851 | ) | 2,854 | |||||||||||
Total cost | 3,498 | 235 | (851 | ) | 2,882 | |||||||||||
Accumulated amortization | ||||||||||||||||
Industrial property | (25 | ) | (2 | ) | — | (27 | ) | |||||||||
Computer software | (2,956 | ) | (261 | ) | 851 | (2,366 | ) | |||||||||
Total accumulated amortization | (2,981 | ) | (263 | ) | 851 | (2,393 | ) | |||||||||
Intangible assets, net | 517 | (28 | ) | — | 489 | |||||||||||
Balance at | Balance at | |||||||||||||||
12/31/07 | Additions | Disposals | 12/31/08 | |||||||||||||
Cost | ||||||||||||||||
Industrial property | 29 | — | (1 | ) | 28 | |||||||||||
Computer software | 3,212 | 263 | (5 | ) | 3,470 | |||||||||||
Total cost | 3,241 | 263 | (6 | ) | 3,498 | |||||||||||
Accumulated amortization | ||||||||||||||||
Industrial property | (21 | ) | (5 | ) | 1 | (25 | ) | |||||||||
Computer software | (2,406 | ) | (555 | ) | 5 | (2,956 | ) | |||||||||
Total accumulated amortization | (2,427 | ) | (560 | ) | 6 | (2,981 | ) | |||||||||
Intangible assets, net | 814 | (297 | ) | — | 517 | |||||||||||
Balance at | Balance at | |||||||||||||||||||
01/01/07 | Additions | Disposals | Transfers | 12/31/07 | ||||||||||||||||
Cost | ||||||||||||||||||||
Industrial property | 62 | — | (33 | ) | — | 29 | ||||||||||||||
Computer Software | 4,905 | 86 | (1,795 | ) | 16 | 3,212 | ||||||||||||||
Total cost | 4,967 | 86 | (1,828 | ) | 16 | 3,241 | ||||||||||||||
Accumulated amortization | ||||||||||||||||||||
Industrial property | (45 | ) | (8 | ) | 32 | — | (21 | ) | ||||||||||||
Computer software | (3,451 | ) | (733 | ) | 1,778 | — | (2,406 | ) | ||||||||||||
Total Accumulated amortization | (3,496 | ) | (741 | ) | 1,810 | — | (2,427 | ) | ||||||||||||
Intangible assets, net | 1,471 | (655 | ) | (18 | ) | 16 | 814 | |||||||||||||
F-149
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
6. | PROPERTY, PLANT AND EQUIPMENT |
Balance at | Balance at | |||||||||||||||||||
12/31/08 | Additions | Disposals | Transfers | 12/31/09 | ||||||||||||||||
Cost | ||||||||||||||||||||
Land | 5,345 | — | — | — | 5,345 | |||||||||||||||
Buildings and structures | 34,343 | 176 | (12 | ) | — | 34,507 | ||||||||||||||
Plant | 29,245 | 55 | (131 | ) | 478 | 29,647 | ||||||||||||||
Machinery and tools | 208,180 | 654 | (3,952 | ) | 6,987 | 211,869 | ||||||||||||||
Other fixtures and furniture | 1,726 | 4 | (9 | ) | — | 1,721 | ||||||||||||||
Other items of property, plant and equipment | 5,449 | 46 | (1,315 | ) | 307 | 4,487 | ||||||||||||||
Property, plant and equipment in progress | 7,195 | 1,019 | — | (7,772 | ) | 442 | ||||||||||||||
Total cost | 291,483 | 1,954 | (5,419 | ) | — | 288,018 | ||||||||||||||
Accumulated depreciation | ||||||||||||||||||||
Buildings and structures | (5,218 | ) | (890 | ) | 2 | — | (6,106 | ) | ||||||||||||
Plant | (16,845 | ) | (1,487 | ) | 131 | — | (18,201 | ) | ||||||||||||
Machinery and tools | (126,461 | ) | (11,725 | ) | 3,845 | — | (134,341 | ) | ||||||||||||
Other fixtures and furniture | (958 | ) | (123 | ) | 9 | — | (1,072 | ) | ||||||||||||
Other items of property, plant and equipment | (3,944 | ) | (368 | ) | 1,307 | — | (3,005 | ) | ||||||||||||
Total accumulated depreciation | (153,426 | ) | (14,593 | ) | 5,294 | — | (162,725 | ) | ||||||||||||
Property, plant and equipment, net | 138,057 | (12,639 | ) | (125 | ) | — | 125,293 | |||||||||||||
F-150
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Balance at | Balance at | |||||||||||||||||||
12/31/07 | Additions | Disposals | Transfers | 12/31/08 | ||||||||||||||||
Cost | ||||||||||||||||||||
Land | 2,958 | 834 | — | 1,553 | 5,345 | |||||||||||||||
Buildings and structures | 30,659 | 3,417 | — | 267 | 34,343 | |||||||||||||||
Plant | 27,065 | 3,296 | (53 | ) | (1,063 | ) | 29,245 | |||||||||||||
Machinery and tools | 213,532 | 7,151 | (11,757 | ) | (746 | ) | 208,180 | |||||||||||||
Other fixtures and furniture | 1,801 | 22 | (97 | ) | — | 1,726 | ||||||||||||||
Other items of property, plant and equipment | 4,945 | 819 | (315 | ) | — | 5,449 | ||||||||||||||
Property, plant and equipment in progress | 5,849 | 6,792 | (55 | ) | (5,391 | ) | 7,195 | |||||||||||||
Total cost | 286,809 | 22,331 | (12,277 | ) | (5,380 | ) | 291,483 | |||||||||||||
Accumulated depreciation | ||||||||||||||||||||
Buildings and structures | (5,220 | ) | (772 | ) | — | 774 | (5,218 | ) | ||||||||||||
Plant | (16,478 | ) | (1,386 | ) | 1 | 1,018 | (16,845 | ) | ||||||||||||
Machinery and tools | (123,294 | ) | (11,833 | ) | 8,666 | — | (126,461 | ) | ||||||||||||
Other fixtures and furniture | (923 | ) | (132 | ) | 97 | — | (958 | ) | ||||||||||||
Other items of property, plant and equipment | (3,893 | ) | (366 | ) | 315 | — | (3,944 | ) | ||||||||||||
Total accumulated depreciation | (149,808 | ) | (14,489 | ) | 9,079 | 1,792 | (153,426 | ) | ||||||||||||
Property, plant and equipment, net | 137,001 | 7,842 | (3,198 | ) | (3,588 | ) | 138,057 | |||||||||||||
F-151
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Balance at | Balance at | |||||||||||||||||||
01/01/07 | Additions | Disposals | Transfers | 12/31/07 | ||||||||||||||||
Cost | ||||||||||||||||||||
Land | 2,958 | — | — | — | 2,958 | |||||||||||||||
Buildings and structures | 26,785 | 723 | — | 3,151 | 30,659 | |||||||||||||||
Plant | 30,263 | 1,433 | (5,083 | ) | 452 | 27,065 | ||||||||||||||
Machinery and tools | 223,995 | 3,719 | (24,385 | ) | 10,203 | 213,532 | ||||||||||||||
Other fixtures and furniture | 2,008 | 87 | (308 | ) | 14 | 1,801 | ||||||||||||||
Other items of property, plant and equipment | 5,402 | 631 | (1,088 | ) | — | 4,945 | ||||||||||||||
Property, plant and equipment in progress | 5,386 | 14,299 | — | (13,836 | ) | 5,849 | ||||||||||||||
Total cost | 296,797 | 20,892 | (30,864 | ) | (16 | ) | 286,809 | |||||||||||||
Accumulated depreciation | ||||||||||||||||||||
Buildings and structures | (4,504 | ) | (716 | ) | — | — | (5,220 | ) | ||||||||||||
Plant | (19,056 | ) | (1,443 | ) | 4,021 | — | (16,478 | ) | ||||||||||||
Machinery and tools | (129,881 | ) | (13,516 | ) | 20,103 | — | (123,294 | ) | ||||||||||||
Other fixtures and furniture | (1,069 | ) | (137 | ) | 283 | — | (923 | ) | ||||||||||||
Other items of property, plant and equipment | (4,303 | ) | (449 | ) | 859 | — | (3,893 | ) | ||||||||||||
Total accumulated depreciation | (158,813 | ) | (16,261 | ) | 25,266 | — | (149,808 | ) | ||||||||||||
Property, plant and equipment, net | 137,984 | 4,631 | (5,598 | ) | (16 | ) | 137,001 | |||||||||||||
F-152
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Amount | ||||||||||||||||||||||||
Balance at | Impairment | Balance at | Impairment | Balance at | Balance at | |||||||||||||||||||
01/01/07 | losses | 12/31/07 | losses | 12/31/08 | 12/31/09 | |||||||||||||||||||
Dédalo Heliocolor, S.A.U. | 40,261 | — | 40,261 | (40,261 | ) | — | — | |||||||||||||||||
Dédalo Altamira, S.A.U. | 278 | (278 | ) | — | — | — | — | |||||||||||||||||
Total | 40,539 | (278 | ) | 40,261 | (40,261 | ) | — | — | ||||||||||||||||
F-153
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-154
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||||||||||||||||||||||||||
Write- | Write- | Write- | ||||||||||||||||||||||||||||||||||
Cost | down | Net | Cost | down | Net | Cost | down | Net | ||||||||||||||||||||||||||||
Raw materials and supplies | 6,702 | (110 | ) | 6,592 | 8,417 | (200 | ) | 8,217 | 10,191 | (811 | ) | 9,380 | ||||||||||||||||||||||||
Goods and work in progress | 1,272 | — | 1,272 | 1,710 | — | 1,710 | 2,055 | — | 2,055 | |||||||||||||||||||||||||||
Advances to suppliers | 1 | — | 1 | — | — | — | 47 | — | 47 | |||||||||||||||||||||||||||
7,975 | (110 | ) | 7,865 | 10,127 | (200 | ) | 9,927 | 12,293 | (811 | ) | 11,482 | |||||||||||||||||||||||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Plant | — | 140 | 140 | |||||||||
Machinery and tools | 937 | 11,884 | 12,862 | |||||||||
937 | 12,024 | 13,002 | ||||||||||
Minimum Payments | 12/31/09 | 12/31/08 | 12/31/07 | |||||||||
Within one year | 374 | 2,626 | 2,979 | |||||||||
Between one and five years | 72 | 449 | 2,267 | |||||||||
446 | 3,075 | 5,246 | ||||||||||
F-155
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Thousands | ||||
Year | of Euros | |||
2010 | 2,535 | |||
2011 | 2,274 | |||
2012 | 2,274 | |||
2013 | 2,274 | |||
2014 | 2,274 | |||
2015 and subsequent years | 6,216 | |||
17,847 | ||||
Thousands | ||||
Year | of Euros | |||
2009 | �� | 2,486 | ||
2010 | 2,406 | |||
2011 | 2,406 | |||
2012 | 2,406 | |||
2013 | 2,407 | |||
2014 and subsequent years | 8,097 | |||
20,208 | ||||
Thousands | ||||
Year | of Euros | |||
2008 | 2,525 | |||
2009 | 2,486 | |||
2010 | 2,274 | |||
2011 | 2,274 | |||
2012 | 2,274 | |||
2013 and subsequent years | 10,746 | |||
22,579 | ||||
• | Dédalo Offset, S.L.U.: agreement entered into with Mathew Chrome, S.L., for the lease of an industrial building located in the industrial area “Mateu Cromo” (Pinto, Madrid). The initial term is until December 31, 2020. The agreed annual price will be increased by a percentage equal to the increase experienced in the consumer price index (CPI). |
F-156
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• | Gráficas Integradas, S.A.U.: agreement entered into with Ameyago, S.L. for the lease of an industrial building and six parking spaces located in Madrid. The initial term is until January 1, 2019, with a renewal option for two additional years and afterwards with a renewal option on a yearly basis. The agreed annual price will be increased by a percentage equal to the increase experienced in the consumer price index (CPI). |
Other Non-Current | Other Current | |||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Total | ||||||||||||||||||||||||||||||||||
Class Category | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||
Loans and receivables | 313 | 316 | 417 | 17,734 | 18,151 | 22,280 | 18,047 | 18,467 | 22,697 | |||||||||||||||||||||||||||
Loans and receivables from related parties | — | — | — | 6,703 | 11,715 | 10,757 | 6,703 | 11,715 | 10,757 | |||||||||||||||||||||||||||
Total | 313 | 316 | 417 | 24,437 | 29,866 | 33,037 | 24,750 | 30,182 | 33,454 | |||||||||||||||||||||||||||
Balance at | Balance at | Balance at | ||||||||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Current: | ||||||||||||
Trade receivables for sales and services | 17,645 | 17,894 | 21,733 | |||||||||
Loans to employees | 10 | 96 | 374 | |||||||||
Sundry accounts receivable | 79 | 10 | 19 | |||||||||
Other financial assets | — | 151 | 154 | |||||||||
Total current assets | 17,734 | 18,151 | 22,280 | |||||||||
F-157
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Thousands | ||||
of Euros | ||||
Balance at December 31, 2006 | (2,237 | ) | ||
Provisions | (382 | ) | ||
Amounts used | 803 | |||
Balance at December 31, 2007 | (1,816 | ) | ||
Provisions | (80 | ) | ||
Amounts used | 494 | |||
Balance at December 31, 2008 | (1,402 | ) | ||
Provisions | (1,051 | ) | ||
Amounts used | 683 | |||
Balance at December 31, 2009 | (1,770 | ) | ||
F-158
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2009 | ||||
Prisaprint, S.L. | 40.00% | |||
Viking Business, S.L. | 40.00% | |||
Cérmides, S.a.r.l. | 18.01% | |||
Other shareholders | 1.99% | |||
Total | 100.00% | |||
F-159
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2009 | 2008 | 2007 | ||||||||||
Mateu Cromo Artes Gráficas, S.A.U. | — | — | (19,901 | ) | ||||||||
Macrolibros, S.A. | — | — | 8,035 | |||||||||
Dédalo Altamira, S.A.U. | — | — | (20,237 | ) | ||||||||
Mateu Líber, S.L. | — | — | (709 | ) | ||||||||
Dédalo Offset, S.L.U. | (4,846 | ) | 7,769 | — | ||||||||
Distribuciones Aliadas, S.A.U. | 2,370 | 1,813 | 520 | |||||||||
Norprensa, S.A.U. | 1,309 | 736 | 76 | |||||||||
Bidasoa Press, S.L.U. | (2,414 | ) | 2,169 | 1,597 | ||||||||
Dédalo Heliocolor, S.A.U. | (22,473 | ) | (11,773 | ) | (4,331 | ) | ||||||
Gráficas Integradas. S.A.U. | 2,021 | 1,427 | 1,153 | |||||||||
Altamira, S.A.U. | (4,755 | ) | (4,854 | ) | (4,946 | ) | ||||||
Dédalo Grupo Gráfico, S.L. | 29,632 | 15,455 | 56,198 | |||||||||
844 | 12,742 | 17,455 | ||||||||||
F-160
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Non-Current Bank | Other Non-Current | Current Bank | Other Current | |||||||||||||||||
Class Category | Borrowings | Liabilities | Borrowings | Liabilities | Total | |||||||||||||||
Accounts payable | 113,982 | — | 16,782 | 27,264 | 158,028 | |||||||||||||||
Accounts payable to related parties | — | 95,981 | — | 2,536 | 98,517 | |||||||||||||||
Liabilities at fair value through profit or loss | 5,600 | — | — | — | 5,600 | |||||||||||||||
Deferred Revenue | — | — | — | 246 | 246 | |||||||||||||||
Provisions | — | — | — | — | — | |||||||||||||||
Total | 119,582 | 95,981 | 16,782 | 30,046 | 262,391 | |||||||||||||||
Non-Current Bank | Other Non-Current | Current Bank | Other Current | |||||||||||||||||
Class Category | Borrowings | Liabilities | Borrowings | Liabilities | Total | |||||||||||||||
Accounts payable | 104,567 | — | 24,641 | 29,519 | 158,727 | |||||||||||||||
Accounts payable to related parties | — | 95,814 | — | 1,958 | 97,772 | |||||||||||||||
Liabilities at fair value through profit or loss | 3,094 | — | — | — | 3,094 | |||||||||||||||
Deferred Revenue | — | — | — | 303 | 303 | |||||||||||||||
Provisions | — | — | — | — | — | |||||||||||||||
Total | 107,661 | 95,814 | 24,641 | 31,780 | 259,896 | |||||||||||||||
Non-Current Bank | Other Non-Current | Current Bank | Other Current | |||||||||||||||||
Class Category | Borrowings | Liabilities | Borrowings | Liabilities | Total | |||||||||||||||
Accounts payable | 43,040 | — | 36,218 | 31,800 | 111,058 | |||||||||||||||
Accounts payable to related parties | — | 62,490 | — | 15,380 | 77,870 | |||||||||||||||
Liabilities at fair value through profit or loss | — | — | — | — | — | |||||||||||||||
Deferred Revenue | — | — | — | 405 | 405 | |||||||||||||||
Provisions | — | — | — | 29,743 | 29,743 | |||||||||||||||
Total | 43,040 | 62,490 | 36,218 | 77,328 | 219,076 | |||||||||||||||
F-161
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• | An agreement entered into by Dédalo Grupo Gráfico, S.L. and a group of banks consisting of Banco Español de Crédito, S.A., Banco Santander Central Hispano, S.A., HSBC Bank Plc, Sucursal en España, Banco Bilbao Vizcaya Argentaria, S.A., Banco de Sabadell, S.A., Caja de Ahorros y Monte de Piedad de Madrid and La Caixa D’Estalvis y Pensions de Barcelona, with Banco Español de Crédito, S.A. acting as the agent bank, for an overall maximum amount of EUR 70 million tied to Euribor plus a spread of 1.525%, the main purpose of which is to refinance its investees’ debt. |
• | A multi-borrower credit agreement entered into by Distribuciones Aliadas, S.A.U., Company, Norprensa, S.A.U., Bidasoa Press, S.L.U., Dédalo Heliocolor, S.A.U., and Gráficas Integradas, S.A.U., the latter as guarantor, and a group of banks consisting of Banco Español de Crédito, S.A., Banco Santander Central Hispano, S.A., HSBC Bank Plc, Sucursal en España, Banco Bilbao Vizcaya Argentaria, S.A., Banco de Sabadell, S.A., Caja de Ahorros y Monte de Piedad de Madrid and La Caixa D’Estalvis y Pensions de Barcelona, in which Banco Español de Crédito, S.A. is the agent bank, for a maximum amount of EUR 60 million tied to Euribor plus a spread 1.875%. |
• | The following are noteworthy amendments to the agreement entered into by Dédalo Grupo Gráfico, S.L.: |
• | Exemption from the obligation to meet the financial ratios of Promotora de Informaciones, S.A. established for December 31, 2009. | |
• | Deferral of the principal repayment installments for 18 months from August 8, 2009, ending on February 8, 2013 in the case of the tranche relating to the revolving credit facility with a ceiling of EUR 10 million, and on February 8, 2015 in the case of the tranche relating to the credit with a ceiling of EUR 60 million. |
• | The following are noteworthy amendments to the multi-borrower credit agreement entered into by Distribuciones Aliadas, S.A.U., Norprensa, S.A.U, Bidasoa Press, S.L.U., Dédalo Heliocolor, S.A.U. and Gráficas Integradas, S.A.U.: |
• | Exemption from the obligation to meet the financial ratios established for December 31, 2009. | |
• | Deferral of the principal repayment installments for 18 months from August 8, 2009, ending on February 8, 2013 in the case in the tranche relating to the revolving credit facility with a ceiling of EUR 5 million, and on February 8, 2015 in the case of the tranche relating to the credit with a ceiling of EUR 55 million. | |
• | Granting of a guarantee by Promotora de Informaciones, S.A. | |
• | Compliance with the financial ratios established in the financing agreement of Promotora de Informaciones, S.A. |
F-162
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2014 and | ||||||||||||||||||||||||
Subsequent | ||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | Years | Total | |||||||||||||||||||
Thousands of euros | ||||||||||||||||||||||||
Syndicated loans | — | 24,800 | 24,800 | 24,800 | 40,600 | 115,000 | ||||||||||||||||||
Syndicated credit facilities(*) | 15,000 | — | — | — | — | 15,000 | ||||||||||||||||||
Syndicated interest | 1,328 | — | — | — | — | 1,328 | ||||||||||||||||||
Syndicated fees and commissions | (249 | ) | (250 | ) | (249 | ) | (250 | ) | (269 | ) | (1,267 | ) | ||||||||||||
Bill discounting | 703 | — | — | — | — | 703 | ||||||||||||||||||
Total | 16,782 | 24,550 | 24,551 | 24,550 | 40,331 | 130,764 | ||||||||||||||||||
(*) | The final maturity period of the Syndicated credit facilities is 2013. |
Balance at | Balance at | Balance at | ||||||||||
12/31/09 | 12/31/08 | 12/31/07 | ||||||||||
Current: | ||||||||||||
Payable to non-current asset suppliers | 632 | 3,206 | 2,628 | |||||||||
Payable to suppliers and sundry accounts payable | 23,016 | 24,115 | 24,848 | |||||||||
Remuneration payable | 3,616 | 2,198 | 4,324 | |||||||||
Total current liabilities | 27,264 | 29,519 | 31,800 | |||||||||
F-163
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Nominal Value | ||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||
Company | Instrument | Expiry | Nominal Value | Fair Value | at 2010 | at 2011 | ||||||||||||||||||
Dédalo Grupo Gráfico, S.L. | Collar | 2015 | 42,000 | (3,000 | ) | 42,000 | 34,320 | |||||||||||||||||
Dédalo Heliocolor, S.A.U. | Collar | 2015 | 36,000 | (2,600 | ) | 36,000 | 28,800 | |||||||||||||||||
Total | 78,000 | (5,600 | ) | 78,000 | 63,120 | |||||||||||||||||||
Sensitivity (Before Tax) | 12/31/09 | 12/31/08 | ||||||
+0.5% (INCREASE IN THE YIELD CURVE) | 1,064 | 1,107 | ||||||
−0.5% (DECREASE IN THE YIELD CURVE) | (1,116 | ) | (1,227 | ) |
F-164
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Maturity | Forecast Cash Flow | |||
(In thousands of euros) | ||||
Within 3 months | (1,243 | ) | ||
3 to 6 months | — | |||
6 to 9 months | (1,107 | ) | ||
9 to 12 months | — | |||
1 to 2 years | (1,483 | ) | ||
2 to 3 years | (784 | ) | ||
More than 3 years | (234 | ) |
Thousands | Euribor Curve | |||||||
Maturity | of Euros | Implicit Rate | ||||||
Within 3 months | 29,345 | 1.13 | % | |||||
3 to 6 months | — | — | ||||||
6 to 9 months | 2,239 | 1.43 | % | |||||
9 to 12 months | — | — | ||||||
1 to 2 years | 30,176 | 2.67 | % | |||||
2 to 3 years | 29,787 | 3.205 | % | |||||
More than 3 years | 86,483 | 3.75 | % | |||||
Total | 178,030 | |||||||
• | Level 1: those determinable on the basis of quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
• | Level 2: those determinable on the basis of other observable inputs (that are not the quoted prices included in level 1) for the asset or liability, either directly (i.e. prices) or indirectly (i.e. price derivatives). | |
• | Level 3: those determinable on the basis of valuation techniques, which include inputs for the asset and liability that are not based on observable market data (non-observable inputs). |
F-165
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2009 | 2008 | 2007 | ||||||||||
Tax assets arising from taxable temporary differences | 20,430 | 20,430 | 20,430 | |||||||||
Total non-current tax receivable | 20,430 | 20,430 | 20,430 | |||||||||
Tax withholdings and prepayments | 20 | 15 | — | |||||||||
VAT refundable | 370 | 2,470 | 1,433 | |||||||||
Others | — | — | 331 | |||||||||
Total current tax receivable | 390 | 2,485 | 1,764 | |||||||||
Liabilities due to taxable temporary differences | 6,151 | 6,151 | 6,898 | |||||||||
Total non-current tax payable | 6,151 | 6,151 | 6,898 | |||||||||
VAT payable | 41 | 53 | 85 | |||||||||
Tax withholdings payable | 1,704 | 1,335 | 1,467 | |||||||||
Accrued social security taxes payable | 1,534 | 951 | 1,240 | |||||||||
Total current tax payable | 3,279 | 2,339 | 2,792 | |||||||||
F-166
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Consolidated | ||||
Income Statement | ||||
Loss for the year | (30,804 | ) | ||
2009 income tax | — | |||
Permanent differences — | ||||
Penalties | 33 | |||
Application of new Spanish National Chart of Accounts | — | |||
Other permanent differences | 66 | |||
Temporary differences — | ||||
Finance lease transactions | 1,812 | |||
Short-term provisions | (1,253 | ) | ||
Allocation of reinvestment deferral relief | 62 | |||
Other temporary differences | — | |||
Tax loss | (30,084 | ) | ||
Consolidated | ||||
Income Statement | ||||
Loss for the year | (69,079 | ) | ||
2008 income tax | (747 | ) | ||
Permanent differences — | ||||
Impairment of goodwill on consolidation | 40,261 | |||
Penalties | 89 | |||
Application of new Spanish National Chart of Accounts | (547 | ) | ||
Other permanent differences | (56 | ) | ||
Temporary differences — | ||||
Finance lease transactions | 5,284 | |||
Short-term provisions | (28,022 | ) | ||
Allocation of reinvestment deferral relief | 68 | |||
Other temporary differences | (77 | ) | ||
Tax loss | (52,826 | ) | ||
F-167
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Consolidated | ||||
Income | ||||
Statement | ||||
Loss for the year | (64,352 | ) | ||
2007 income tax | (86 | ) | ||
Permanent differences — | ||||
Penalties | 53 | |||
Non-current allowances | (205 | ) | ||
Other permanent differences | 92 | |||
Temporary differences — | ||||
Finance lease transactions | 2,612 | |||
Inventories write-down | 750 | |||
Short-term provisions | 34,913 | |||
Allocation of reinvestment deferral relief | 68 | |||
Other temporary differences | (343 | ) | ||
Tax loss | (26,498 | ) | ||
13.3. | Tax assets arising from temporary differences |
Thousands | Last Year | |||||||||||
Company | Year | of Euros | for Offset | |||||||||
Dédalo Heliocolor, S.A.U. | 2003 | 6,784 | 2018 | |||||||||
Dédalo Grupo Gráfico and Subsidiaries | 2004 | 9,064 | 2019 | |||||||||
Dédalo Grupo Gráfico and Subsidiaries | 2005 | 20,110 | 2020 | |||||||||
Dédalo Grupo Gráfico and Subsidiaries | 2006 | 29,352 | 2021 | |||||||||
65,310 |
F-168
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Thousands | Last Year | |||||||||||
Company | Year | of Euros (*) | for Offset | |||||||||
Altamira, S.A.U. | 1995 | 814 | 2010 | |||||||||
Altamira, S.A.U. | 1997 | 5,541 | 2012 | |||||||||
Altamira, S.A.U. | 2003 | 844 | 2018 | |||||||||
Dédalo Offset, S.L.U. | 2000 | 2,139 | 2015 | |||||||||
Dédalo Offset, S.L.U. | 2003 | 8,028 | 2018 | |||||||||
Dédalo Grupo Gráfico, S.L. | 2003 | 2 | 2018 | |||||||||
Dédalo Grupo Gráfico, S.L. and Subsidiaries | 2007 | 26,498 | 2021 | |||||||||
Dédalo Grupo Gráfico, S.L. and Subsidiaries | 2008 | 52,826 | 2022 | |||||||||
Dédalo Grupo Gráfico, S.L. and Subsidiaries | 2009 | 30,084 | 2023 | |||||||||
126,776 |
(*) | The balance of tax loss carry forwards differs from the amount declared according to Spanish GAAP considering that it defers from IFRS. |
13.4. | Tax liabilities arising from temporary differences |
13.5. | Years open for review by the tax authorities |
F-169
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
14. | INCOME AND EXPENSES |
Line of | ||||||||||||||
Business | 2009 | 2008 | 2007 | |||||||||||
Dédalo Grupo Gráfico, S.L. | Corporate | (3,829 | ) | (42,257 | ) | (3,949 | ) | |||||||
Dédalo Offset, S.L.U. | Offset | (15,189 | ) | (12,615 | ) | — | ||||||||
Dédalo Altamira, S.A.U. | Offset | — | — | (19,485 | ) | |||||||||
Mateu Cromo Artes Gráficas, S.A.U. | Offset | — | — | (32,792 | ) | |||||||||
Macrolibros, S.A. | Offset | — | — | (1,630 | ) | |||||||||
Mateu Líber, S.L. | Offset | — | — | (1,941 | ) | |||||||||
Dédalo Helicolor, S.A.U. | Gravure | (9,757 | ) | (11,447 | ) | (7,444 | ) | |||||||
Gráficas Integradas, S.A.U. | Gravure | (909 | ) | 594 | 273 | |||||||||
Altamira, S.A.U. | Offset | 66 | 99 | 92 | ||||||||||
Distribuciones Aliadas, S.A.U. | Press | 248 | 557 | 1,292 | ||||||||||
Norprensa, S.A.U. | Press | 357 | 573 | 659 | ||||||||||
Bidasoa Press, S.L.U. | Press | (1,791 | ) | (4,583 | ) | 573 | ||||||||
Total | (30,804 | ) | (69,079 | ) | (64,352 | ) | ||||||||
2009 | 2008 | 2007 | ||||||||||
Domestic sales | 87,610 | 110,106 | 129,260 | |||||||||
Export sales | 9,845 | 7,325 | 17,185 | |||||||||
Total | 97,455 | 117,431 | 146,445 | |||||||||
2009 | 2008 | 2007 | ||||||||||
Employer social security costs | 8,940 | 9,509 | 12,235 | |||||||||
Other employee benefit costs | 696 | 780 | 857 | |||||||||
Total | 9,636 | 10,289 | 13,092 | |||||||||
F-170
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
2009 | 2008 | 2007 | ||||||||||
Managers | 12 | 18 | 19 | |||||||||
Supervisors | 89 | 105 | 118 | |||||||||
Other | 827 | 848 | 1,079 | |||||||||
Total | 928 | 971 | 1,216 | |||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Men | Women | Men | Women | Men | Women | |||||||||||||||||||
Managers | 12 | — | 18 | — | 18 | 1 | ||||||||||||||||||
Supervisors | 84 | 5 | 97 | 8 | 109 | 9 | ||||||||||||||||||
Other | 731 | 96 | 752 | 96 | 965 | 114 | ||||||||||||||||||
Total | 827 | 101 | 867 | 104 | 1,092 | 124 | ||||||||||||||||||
15. | RELATED PARTY TRANSACTIONS |
Balance Receivable | Non-Current Balance Payable | Current Balance Payable | ||||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||
Shareholders | — | — | — | 94,758 | 93,910 | 60,000 | 13 | 292 | 13,931 | |||||||||||||||||||||||||||
Related entities | 6,703 | 11,715 | 10,757 | 1,223 | 1,904 | 2,490 | 2,523 | 1,666 | 1,449 | |||||||||||||||||||||||||||
TOTAL | 6,703 | 11,715 | 10,757 | 95,981 | 95,814 | 62,490 | 2,536 | 1,958 | 15,380 | |||||||||||||||||||||||||||
Income | Expenses | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Shareholders | — | — | — | 982 | 1,597 | 798 | ||||||||||||||||||
Related entities | 31,388 | 34,272 | 37,197 | 420 | 575 | 2,280 | ||||||||||||||||||
TOTAL | 31,388 | 34,272 | 37,197 | 1,402 | 2,172 | 3,078 | ||||||||||||||||||
F-171
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
16. | EVENTS AFTER THE REPORTING PERIOD |
17. | TRANSITION FROM SPANISH GENERAL ACCEPTED ACCOUNTING PRINCIPLES TO INTERNATIONAL FINANCIAL REPORTING STANDARD |
Thousands of | ||||
euros | ||||
Equity at January 1, 2007, according to Spanish GAAP(*) | 77,335 | |||
Impact due to transition to IFRS | ||||
—Start-up expenses | (1,106 | )<1> | ||
Equity at January 1, 2007, according to IFRS | 76,229 | |||
(*) | Obtained from the consolidated financial statements at December 31, 2006, prepared according to Spanish generally accepted accounting principles in force (Royal Decree 1643/1990 December, 20, 1990). |
F-172
AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Thousands of | ||||
euros | ||||
Equity at December 31, 2009, according to Spanish GAAP (**) | (48,246 | ) | ||
Impact due to transition to IFRS | ||||
— Impairment loss on goodwill | (40,261 | )<2> | ||
— Grants and other | 501 | |||
Equity at December 31, 2009 according to IFRS | (88,006 | ) | ||
(**) | Obtained from the consolidated financial statements at December 31, 2009, prepared according to Spanish generally accepted accounting principles in force (Royal Decree 1514/2007). |
Thousands of | ||||
euros | ||||
Income at December 31, 2009 according to Spanish GAAP (**) | (33,898 | ) | ||
Impact due to transition to IFRS: | ||||
— Financial instruments | 3,094 | <3> | ||
Income at December 31, 2009 according to IFRS | (30,804 | ) | ||
(**) | Obtained from the consolidated financial statements at December 31, 2009, prepared according to Spanish generally accepted accounting principles in force (Royal Decree 1514/2007). |
F-173
Thousands of euros | ||||||||||||||||||||||||||||
LINE OF | CARRYING | % OF DIRECT | % OF INDIRECT | SHARE | ||||||||||||||||||||||||
INVESTEE | REGISTERED OFFICE | BUSINESS | AMOUNT | OWNERSHIP | OWNERSHIP | CAPITAL | RESERVES | PROFIT/LOSS | ||||||||||||||||||||
DÉDALO OFFSET, S.L.U. | CTRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | — | 100.00 | % | 0.00 | % | 1,000 | 1,699 | (15,189 | ) | |||||||||||||||||
DISTRIBUCIONES ALIADAS, S.A.U. | POL. LA ISLA, CALLE RIO VIEJO, PARCELA 53 - DOS HERMANAS (SEVILLE) | GRAPHIC ARTS | 5,848 | 100.00 | % | 0.00 | % | 2,100 | 6,117 | 248 | ||||||||||||||||||
NORPRENSA, S.A.U. | PARQUE EMPRESARIAL, I.N.-F. CALLE CALLE COSTURERA, S/N - LUGO | GRAPHIC ARTS | 3,349 | 100.00 | % | 0.00 | % | 1,800 | 2,858 | 357 | ||||||||||||||||||
BIDASOA PRESS, S.L.U. | POL. INDUSTRIAL LA COMA - PICASSENT (VALENCIA) | GRAPHIC ARTS | 3,319 | 100.00 | % | 0.00 | % | 2,047 | 3,063 | (1,791 | ) | |||||||||||||||||
DÉDALO HELIOCOLOR, S.A.U. | CTRA. NAC II, KM 48,500 POLIG-INDUSTRIAL-1, CABANILLAS DEL CAMPO | GRAPHIC ARTS | — | 100.00 | % | 0.00 | % | 8,456 | (21,678 | ) | (9,690 | ) | ||||||||||||||||
GRÁFICAS INTEGRADAS, S.A.U. | C/ SANTA LEONOR, 63 - MADRID | GRAPHIC ARTS | — | 0.00 | % | 100.00 | % | 601 | 2,215 | (909 | ) | |||||||||||||||||
ALTAMIRA, S.A.U. | CTRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | — | 0.00 | % | 100.00 | % | 5,384 | (4,755 | ) | 66 |
Thousands of euros | ||||||||||||||||||||||||||||
LINE OF | CARRYING | % OF DIRECT | % OF INDIRECT | SHARE | ||||||||||||||||||||||||
INVESTEE | REGISTERED OFFICE | BUSINESS | AMOUNT | OWNERSHIP | OWNERSHIP | CAPITAL | RESERVES | PROFIT/LOSS | ||||||||||||||||||||
DÉDALO OFFSET, S.L.U. | CTRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | 2,699 | 100.00 | % | 0.00 | % | 1,000 | 14,314 | (12,615 | ) | |||||||||||||||||
DISTRIBUCIONES ALIADAS, S.A.U. | POL. LA ISLA, CALLE RIO VIEJO, PARCELA 53 - DOS HERMANAS (SEVILLE) | GRAPHIC ARTS | 5,848 | 100.00 | % | 0.00 | % | 2,100 | 5,560 | 557 | ||||||||||||||||||
NORPRENSA, S.A.U. | PARQUE EMPRESARIAL, I.N.-F. CALLE CALLE COSTURERA, S/N - LUGO | GRAPHIC ARTS | 3,349 | 100.00 | % | 0.00 | % | 1,800 | 2,285 | 573 | ||||||||||||||||||
BIDASOA PRESS, S.L.U. | C/ MALILLA No 134 - 46026 VALENCIA | GRAPHIC ARTS | 5,111 | 100.00 | % | 0.00 | % | 2,047 | 7,646 | (4,583 | ) | |||||||||||||||||
DÉDALO HELIOCOLOR, S.A.U. | CTRA. NAC II, KM 48,500 POLIG-INDUSTRIAL-1, CABANILLAS DEL CAMPO | GRAPHIC ARTS | — | 100.00 | % | 0.00 | % | 8,456 | (10,330 | ) | (11,348 | ) | ||||||||||||||||
GRÁFICAS INTEGRADAS, S.A.U. | C/ SANTA LEONOR, 63 - MADRID | GRAPHIC ARTS | — | 0.00 | % | 100.00 | % | 601 | 1,621 | 594 | ||||||||||||||||||
ALTAMIRA, S.A.U. | CTRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | — | 0.00 | % | 100.00 | % | 5,384 | (4,854 | ) | 99 |
F-174
Thousands of euros | ||||||||||||||||||||||||||||
LINE OF | CARRYING | % OF DIRECT | % OF INDIRECT | SHARE | ||||||||||||||||||||||||
INVESTEE | REGISTERED OFFICE | BUSINESS | AMOUNT | OWNERSHIP | OWNERSHIP | CAPITAL | RESERVES | PROFIT/LOSS | ||||||||||||||||||||
MATEU CROMO ARTES GRAFICAS, S.A. | CRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | — | 100.00 | % | 0.00 | % | 4,000 | (11,127 | ) | (32,802 | ) | ||||||||||||||||
MACROLIBROS, S.A. | C/ VAZQUEZ DE MENCHACA, 9 Pol. Ind. Argales, Valladolid | GRAPHIC ARTS | — | 0.01 | % | 99.99 | % | 992 | 7,662 | (1,630 | ) | |||||||||||||||||
DÉDALO ALTAMIRA, S.A. | CRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | — | 100.00 | % | 0.00 | % | 6,000 | (3,324 | ) | (19,521 | ) | ||||||||||||||||
DÉDALO OFFSET, S.L. | CRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | 3 | 100.00 | % | 0.00 | % | 3 | — | — | ||||||||||||||||||
DISTRIBUCIONES ALIADAS, S.A. | POL. LA ISLA, CALLE RIO VIEJO, PARCELA 53 - DOS HERMANAS (SEVILLE) | GRAPHIC ARTS | 5,848 | 100.00 | % | 0.00 | % | 2,100 | 4,268 | 1,292 | ||||||||||||||||||
NORPRENSA, S.A. | PARQUE EMPRESARIAL, I.N.-F. CALLE CALLE COSTURERA, S/N - LUGO | GRAPHIC ARTS | 3,349 | 100.00 | % | 0.00 | % | 1,800 | 1,626 | 659 | ||||||||||||||||||
MATEU LIBER, S.L. | CRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | — | 99.50 | % | 0.50 | % | 1,003 | (641 | ) | (1,941 | ) | ||||||||||||||||
BIDASOA PRESS, S.L. | GRAN VIA, 32- MADRID | GRAPHIC ARTS | 7,592 | 100.00 | % | 0.00 | % | 2,047 | 7,142 | 504 | ||||||||||||||||||
DÉDALO HELIOCOLOR, S.A. | CTRA. NAC II, KM 48,500 POLIG-INDUSTRIAL-1, CABANILLAS DEL CAMPO | GRAPHIC ARTS | 30,597 | 100.00 | % | 0.00 | % | 8,456 | (2,851 | ) | (7,380 | ) | ||||||||||||||||
GRAFICAS INTEGRADAS, S.A. | CAMINO DE LOS AFLIGIDOS, S/N - ALCALA DE HENARES (MADRID) | GRAPHIC ARTS | — | 0.00 | % | 100.00 | % | 601 | 1,348 | 273 | ||||||||||||||||||
ALTAMIRA, S.A. | CRA. PINTO A FUENLABRADA, KM. 20,800- PINTO- MADRID | GRAPHIC ARTS | — | 0.00 | % | 100.00 | % | 5,384 | (4,946 | ) | 92 |
F-175
F-176
F-177
(a corporation in the development stage)
December 31, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 8,941,801 | $ | 9,689,737 | ||||
Prepaid income taxes | 550,576 | 1,281,352 | ||||||
Other prepaid expenses | 101,635 | 92,473 | ||||||
Total current assets | 9,594,012 | 11,063,562 | ||||||
Other assets | ||||||||
Deferred taxes | 492,000 | — | ||||||
Cash and cash equivalents held in Trust Account | 1,022,041,138 | 1,020,584,682 | ||||||
Total other assets | 1,022,533,138 | 1,020,584,682 | ||||||
Total assets | $ | 1,032,127,150 | $ | 1,031,648,244 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 2,027 | $ | 20,000 | ||||
Franchise taxes payable | 31,574 | 95,610 | ||||||
Total current liabilities | $ | 33,601 | $ | 115,610 | ||||
Long-term liabilities | ||||||||
Long-term liability, deferred underwriters’ fee | $ | 27,427,500 | $ | 27,427,500 | ||||
Common stock subject to redemption, 31,049,999 shares at redemption value, approximately $9.82 per share | 304,910,990 | 304,910,990 | ||||||
Deferred interest income related to common stock subject to possible redemption | 2,205,468 | 1,568,300 | ||||||
Commitments | ||||||||
Stockholders’ equity | ||||||||
Preferred stock, $.0001 par value; 1,000,000 shares authorized; none issued | ||||||||
Common stock, $.0001 par value, authorized 215,062,500 shares; 129,375,000 shares issued and outstanding as of December 31, 2009 and 2008, respectively (including 31,049,999 shares subject to possible redemption) | 12,938 | 12,938 | ||||||
Additional paid-in capital | 686,812,963 | 686,812,963 | ||||||
Earnings accumulated during the development stage | 10,723,690 | 10,799,943 | ||||||
Total stockholders’ equity | 697,549,591 | 697,625,844 | ||||||
Total liabilities and stockholders’ equity | $ | 1,032,127,150 | $ | 1,031,648,244 | ||||
F-178
(a corporation in the development stage)
Period from | Period from | |||||||||||||||
June 27, | June 27, | |||||||||||||||
2007 | 2007 | |||||||||||||||
For the Year | For the Year | (inception) | (inception) | |||||||||||||
Ended | Ended | to | to | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2009 | 2008 | 2007 | 2009 | |||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | ||||||||
Formation and administrative costs | 3,418,594 | 833,005 | 109,225 | 4,360,824 | ||||||||||||
Warrant modification charge (stock compensation expense) | — | — | 2,460,000 | 2,460,000 | ||||||||||||
Loss from operations | (3,418,594 | ) | (833,005 | ) | (2,569,225 | ) | (6,820,824 | ) | ||||||||
Interest income | 3,834,415 | 25,593,766 | 2,891,877 | 32,320,058 | ||||||||||||
Income before provision for income taxes | 415,821 | 24,760,761 | 322,652 | 25,499,234 | ||||||||||||
Provision for income taxes | (145,094 | ) | 11,432,538 | 1,282,632 | 12,570,076 | |||||||||||
Net income (loss) applicable to common stockholders | $ | 560,915 | $ | 13,328,223 | $ | (959,980 | ) | $ | 12,929,158 | |||||||
Maximum number of shares subject to possible redemption: | ||||||||||||||||
Approximate weighted average number of shares, basic and diluted | 31,049,999 | 31,049,999 | 3,138,032 | 25,340,043 | ||||||||||||
Income per share of common stock subject to possible redemption, basic and diluted | $ | 0.02 | $ | 0.03 | $ | — | $ | 0.09 | ||||||||
Approximate weighted average number of common shares outstanding (not subject to possible redemption), basic | 98,325,000 | 98,325,000 | 33,197,074 | 85,001,768 | ||||||||||||
Income (loss) per common share not subject to possible redemption, basic | $ | 0.01 | $ | 0.13 | $ | (0.03 | ) | $ | 0.14 | |||||||
Approximate weighted average number of common shares outstanding (not subject to possible redemption), diluted | 122,642,347 | 122,845,896 | 33,197,074 | 106,040,173 | ||||||||||||
Income (loss) per common share not subject to possible redemption, diluted | $ | 0.01 | $ | 0.10 | $ | (0.03 | ) | $ | 0.11 | |||||||
F-179
(a corporation in the development stage)
Earnings | ||||||||||||||||||||
(Deficit) | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Additional | During the | Total | ||||||||||||||||||
Common | Paid-in | Development | Stockholders’ | |||||||||||||||||
Shares | Amount | Capital | Stage | Equity | ||||||||||||||||
Sale of Units issued to founding stockholders on August 9, 2007 at approximately $0.00097 per unit (each unit consists one share of common stock and one half (1/2) of one warrant) | 25,875,000 | $ | 2,588 | $ | 22,412 | $ | — | $ | 25,000 | |||||||||||
Sale of 12,000,000 warrants at $1 per warrant on December 12, 2007 to Berggruen Holdings and Marlin Equities | — | — | 12,000,000 | — | 12,000,000 | |||||||||||||||
Sales of 103,500,000 units on December 12, 2007 at a price of $10 per unit in the public offering, including 13,500,000 Units sold to the underwriters | 103,500,000 | 10,350 | 1,034,989,650 | — | 1,035,000,000 | |||||||||||||||
Proceeds from public offering subject to possible redemption (31,049,999 shares common stock at redemption value) | — | — | (304,910,990 | ) | — | (304,910,990 | ) | |||||||||||||
Underwriters’ discount and offering costs related to public offering and over-allotment option (including $27,427,500 payable upon a Business Combination) | — | — | (57,748,109 | ) | — | (57,748,109 | ) | |||||||||||||
Warrants modification charge | — | — | 2,460,000 | — | 2,460,000 | |||||||||||||||
Accretion of Trust Account relating to common stock subject to possible redemption, net of tax of approximately $385,000 | — | — | — | (482,772 | ) | (482,772 | ) | |||||||||||||
Net loss | — | — | — | (959,980 | ) | (959,980 | ) | |||||||||||||
Balances, at December 31, 2007 | 129,375,000 | $ | 12,938 | $ | 686,812,963 | $ | (1,442,752 | ) | $ | 685,383,149 | ||||||||||
Accretion of Trust Account relating to common stock subject to possible redemption, net of tax of approximately $818,000 | — | — | — | (1,085,528 | ) | (1,085,528 | ) | |||||||||||||
Net income | — | — | — | 13,328,223 | 13,328,223 | |||||||||||||||
Balances, at December 31, 2008 | 129,375,000 | $ | 12,938 | $ | 686,812,963 | $ | 10,799,943 | $ | 697,625,844 | |||||||||||
Accretion of Trust Account relating to common stock subject to possible redemption, net of tax of approximately $521,000 | — | — | — | (637,168 | ) | (637,168 | ) | |||||||||||||
Net income | — | — | — | 560,915 | 560,915 | |||||||||||||||
Balances, at December 31, 2009 | 129,375,000 | $ | 12,938 | $ | 686,812,963 | $ | 10,723,690 | $ | 697,549,591 | |||||||||||
F-180
(a corporation in the development stage)
Period from | Period from | |||||||||||||||
June 27, | June 27, | |||||||||||||||
2007 | 2007 | |||||||||||||||
Year Ended | Year Ended | (inception) to | (inception) to | |||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2009 | 2008 | 2007 | 2009 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income (loss) | $ | 560,915 | $ | 13,328,223 | $ | (959,980 | ) | $ | 12,929,158 | |||||||
Adjustment to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Warrant modification charge (stock compensation expense) | 2,460,000 | 2,460,000 | ||||||||||||||
Deferred tax benefit | (492,000 | ) | (492,000 | ) | ||||||||||||
Increase (decrease) in cash attributable to changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses | (9,162 | ) | 107,500 | (199,973 | ) | (101,635 | ) | |||||||||
Prepaid income taxes | 730,776 | (1,281,352 | ) | — | (550,576 | ) | ||||||||||
Income taxes payable | — | (1,282,632 | ) | 1,282,632 | — | |||||||||||
Franchise taxes payable | (64,036 | ) | 10,624 | 84,986 | 31,574 | |||||||||||
Accrued expenses | (17,973 | ) | 13,621 | 6,379 | 2,027 | |||||||||||
Net cash provided by operating activities | 708,520 | 10,895,984 | 2,674,044 | 14,278,548 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Principal deposited in Trust Account | (1,017,502,800 | ) | (1,017,502,500 | ) | ||||||||||||
Interest reinvested in Trust Account | (3,801,622 | ) | (25,494,802 | ) | (2,888,279 | ) | (32,184,703 | ) | ||||||||
Redemptions from the Trust Account | 2,345,166 | 24,500,899 | 800,000 | 27,646,065 | ||||||||||||
Net cash used in investing activities | (1,456,456 | ) | (993,903 | ) | (1,019,590,779 | ) | (1,022,041,138 | ) | ||||||||
Cash flows from financing activities | ||||||||||||||||
Repayment of notes payable, founding stockholders | — | (250,000 | ) | — | (250,000 | ) | ||||||||||
Proceeds from notes payable, founding stockholders | — | — | 250,000 | 250,000 | ||||||||||||
Proceeds from issuance of units to founding stockholders | — | — | 25,000 | 25,000 | ||||||||||||
Gross proceeds from public offering | — | — | 1,035,000,000 | 1,035,000,000 | ||||||||||||
Proceeds from issuance of warrants in private placements | — | — | 12,000,000 | 12,000,000 | ||||||||||||
Payments for underwriters’ discounts and offering costs | — | (250,000 | ) | (30,070,609 | ) | (30,320,609 | ) | |||||||||
Net cash provided by (used in) financing activities | — | (500,000 | ) | 1,017,204,391 | 1,016,704,391 | |||||||||||
Net increase (decrease) in cash | (747,936 | ) | 9,402,081 | 287,656 | 8,941,801 | |||||||||||
Cash, beginning of period | 9,689,737 | 287,656 | — | — | ||||||||||||
Cash, end of period | $ | 8,941,801 | $ | 9,689,737 | $ | 287,656 | $ | 8,941,801 | ||||||||
Supplemental schedule of non-cash financing activities: | ||||||||||||||||
Deferred underwriters fee | $ | — | $ | — | $ | 27,427,500 | $ | 27,427,500 | ||||||||
Accrued offering costs | $ | — | $ | — | $ | 250,000 | $ | — | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid during the period for income taxes | $ | 2,116,131 | $ | 13,996,521 | $ | — | $ | 16,112,652 | ||||||||
F-181
(a corporation in the development stage)
F-182
(a corporation in the development stage)
F-183
(a corporation in the development stage)
F-184
(a corporation in the development stage)
F-185
(a corporation in the development stage)
F-186
(a corporation in the development stage)
F-187
(a corporation in the development stage)
F-188
(a corporation in the development stage)
Period from June 27, | Period from June 27, | |||||||||||||||
Year Ended | Year Ended | 2007 (inception) to | 2007 (inception) to | |||||||||||||
December 31, 2009 | December 31, 2008 | December 31, 2007 | December 31, 2009 | |||||||||||||
Current | ||||||||||||||||
Federal | $ | 346,906 | $ | 7,536,431 | $ | 829,005 | $ | 8,712,342 | ||||||||
State | — | 1,645,661 | 197,696 | 1,843,357 | ||||||||||||
City | — | 2,250,446 | 255,931 | 2,506,377 | ||||||||||||
Total current | $ | 346,906 | $ | 11,432,538 | $ | 1,282,632 | $ | 13,062,076 | ||||||||
Deferred | ||||||||||||||||
Federal | $ | (492,000 | ) | $ | — | $ | — | $ | (492,000 | ) | ||||||
State | (63,000 | ) | — | — | (63,000 | ) | ||||||||||
City | (84,000 | ) | — | — | (84,000 | ) | ||||||||||
(639,000 | ) | — | — | (639,000 | ) | |||||||||||
Valuation allowance | 147,000 | — | — | 147,000 | ||||||||||||
Total deferred | $ | (492,000 | ) | $ | — | $ | — | $ | (492,000 | ) | ||||||
Provision of income tax | $ | (145,094 | ) | $ | 11,432,538 | $ | 1,282,632 | $ | 12,570,076 | |||||||
F-189
(a corporation in the development stage)
Fair Value | Quoted Prices in | Significant Other | Significant | |||||||||||||
December 31, | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents held in trust | $ | 1,022,041,138 | $ | 1,022,041,138 | $ | — | $ | — | ||||||||
Total | $ | 1,022,041,138 | $ | 1,022,041,138 | $ | — | $ | — |
Fair Value | Quoted Prices in | Significant Other | Significant | |||||||||||||
December 31, | Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||
Description | 2008 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents held in trust | $ | 1,020,584,682 | $ | 1,020,584,682 | $ | — | $ | — | ||||||||
Total | $ | 1,020,584,682 | $ | 1,020,584,682 | $ | — | $ | — |
F-190
ITEM 1. | Financial Statements |
(a corporation in the development stage)
CONDENSED BALANCE SHEETS
June 30, 2010 | December 31, 2009 | |||||||
(Unaudited) | ||||||||
Current assets | ||||||||
Cash | $ | 6,832,539 | $ | 8,941,801 | ||||
Income tax receivable | 328,000 | — | ||||||
Prepaid income taxes | — | 550,576 | ||||||
Other prepaid expenses | 147,033 | 101,635 | ||||||
Total current assets | 7,307,572 | 9,594,012 | ||||||
Other assets | ||||||||
Deferred taxes | 699,000 | 492,000 | ||||||
Cash and cash equivalents held in Trust Account | 1,021,633,285 | 1,022,041,138 | ||||||
Total assets | $ | 1,029,639,857 | $ | 1,032,127,150 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 5,869,029 | $ | 2,027 | ||||
Franchise taxes payable | — | 31,574 | ||||||
Total current liabilities | 5,869,029 | 33,601 | ||||||
Long-term liabilities | ||||||||
Deferred underwriters’ fee | 24,427,500 | 27,427,500 | ||||||
Common stock subject to redemption, 31,049,999 shares at redemption value, approximately $9.81 per share | 304,910,990 | 304,910,990 | ||||||
Deferred interest income related to common stock subject to possible redemption | 2,241,525 | 2,205,468 | ||||||
Total long-term liabilities | 331,580,015 | 334,543,958 | ||||||
Stockholders’ equity | ||||||||
Preferred stock, $.0001 par value; 1,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $.0001 par value, authorized 215,062,500 shares; 129,375,000 shares issued and outstanding (including 31,049,999 shares subject to possible redemption) | 12,938 | 12,938 | ||||||
Additional paid-in capital | 689,812,963 | 686,812,963 | ||||||
Earnings accumulated during the development stage | 2,364,912 | 10,723,690 | ||||||
Total stockholders’ equity | 692,190,813 | 697,549,591 | ||||||
Total liabilities and stockholders’ equity | $ | 1,029,639,857 | $ | 1,032,127,150 | ||||
F-191
(a corporation in the development stage)
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Period from | ||||||||||||||||||||
For the Six | For the Six | For the Three | For the Three | June 27, 2007 | ||||||||||||||||
Months Ended | Months Ended | Months Ended | Months Ended | (inception) to | ||||||||||||||||
June 30, 2010 | June 30, 2009 | June 30, 2010 | June 30, 2009 | June 30, 2010 | ||||||||||||||||
Revenue | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Formation and administrative costs | 1,759,706 | 630,241 | 802,865 | 258,659 | 6,120,530 | |||||||||||||||
Warrant modification charge (stock compensation expense) | — | — | — | — | 2,460,000 | |||||||||||||||
Business combination fees and expenses | 7,282,870 | — | 2,482,870 | — | 7,282,870 | |||||||||||||||
Loss from operations | (9,042,576 | ) | (630,241 | ) | (3,285,735 | ) | (258,659 | ) | (15,863,400 | ) | ||||||||||
Interest income | 184,855 | 3,048,751 | 98,562 | 981,883 | 32,504,913 | |||||||||||||||
Income before provision for income taxes | (8,857,721 | ) | 2,418,510 | (3,187,173 | ) | 723,224 | 16,641,513 | |||||||||||||
Income tax expense (benefit) | (535,000 | ) | 1,068,598 | (240,000 | ) | 307,899 | 12,035,076 | |||||||||||||
Net income (loss) applicable to common stockholders | $ | (8,322,721 | ) | $ | 1,349,912 | $ | (2,947,173 | ) | $ | 415,325 | $ | 4,606,437 | ||||||||
Maximum number of shares subject to possible redemption: | ||||||||||||||||||||
Approximate weighted average number of shares, basic and diluted | 31,049,999 | 31,049,999 | 31,049,999 | 31,049,999 | 26,279,591 | |||||||||||||||
Income per share to common stock subject to possible redemption, basic and diluted | $ | 0.00 | $ | 0.02 | $ | 0.00 | $ | 0.01 | $ | 0.09 | ||||||||||
Approximate weighted average number of common shares outstanding (not subject to possible redemption), basic | 98,325,001 | 98,325,001 | 98,325,001 | 98,325,001 | 87,194,046 | |||||||||||||||
Net income (loss) per common share not subject to possible redemption, basic | $ | (0.09 | ) | $ | 0.01 | $ | (0.03 | ) | $ | 0.00 | $ | 0.05 | ||||||||
Approximate weighted average number of common shares outstanding (not subject to possible redemption), diluted | 98,325,001 | 121,447,836 | 98,325,001 | 121,959,253 | 109,259,394 | |||||||||||||||
Income (loss) per common share not subject to possible redemption, diluted | $ | (0.09 | ) | $ | 0.01 | $ | (0.03 | ) | $ | 0.00 | $ | 0.04 | ||||||||
F-192
(a corporation in the development stage)
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Earnings | ||||||||||||||||||||
(Deficit) | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
During the | Total | |||||||||||||||||||
Common | Additional | Development | Stockholders’ | |||||||||||||||||
Shares | Amount | Paid-in Capital | Stage | Equity | ||||||||||||||||
Sale of Units issued to founding stockholders on August 9, 2007 at approximately $0.00097 per unit (each unit consists one share of common stock and one half (1/2) of one warrant) | 25,875,000 | $ | 2,588 | $ | 22,412 | $ | — | $ | 25,000 | |||||||||||
Sale of 12,000,000 warrants at $1 per warrant on December 12, 2007 to Berggruen Holdings and Marlin Equities | — | — | 12,000,000 | — | 12,000,000 | |||||||||||||||
Sale of 103,500,000 units on December 12, 2007 at a price of $10 per unit in the public offering, including 13,500,000 Units sold to the underwriters | 103,500,000 | 10,350 | 1,034,989,650 | — | 1,035,000,000 | |||||||||||||||
Proceeds from public offering subject to possible redemption (31,049,999 shares common stock at redemption value) | — | — | (304,910,990 | ) | — | (304,910,990 | ) | |||||||||||||
Underwriters’ discount and offering costs related to public offering and over-allotment option (including $27,427,500 payable upon a Business Combination) | — | — | (57,748,109 | ) | — | (57,748,109 | ) | |||||||||||||
Warrants modification charge | — | — | 2,460,000 | — | 2,460,000 | |||||||||||||||
Accretion of Trust Account relating to common stock subject to possible redemption, net of tax of approximately $385,000 | — | — | — | (482,772 | ) | (482,772 | ) | |||||||||||||
Net loss | — | — | — | (959,980 | ) | (959,980 | ) | |||||||||||||
Balances, at December 31, 2007 | 129,375,000 | $ | 12,938 | $ | 686,812,963 | $ | (1,442,752 | ) | $ | 685,383,149 | ||||||||||
Accretion of Trust Account relating to common stock subject to possible redemption, net of tax of approximately $898,000 | — | — | — | (1,085,528 | ) | (1,085,528 | ) | |||||||||||||
Net income | — | — | — | 13,328,223 | 13,328,223 | |||||||||||||||
Balances, at December 31, 2008 | 129,375,000 | $ | 12,938 | $ | 686,812,963 | $ | 10,799,943 | $ | 697,625,844 | |||||||||||
Accretion of Trust Account relating to common stock subject to possible redemption, net of tax of approximately $521,000 | — | — | — | (637,168 | ) | (637,168 | ) | |||||||||||||
Net income | — | — | — | 560,915 | 560,915 | |||||||||||||||
Balances, at December 31, 2009 | 129,375,000 | $ | 12,938 | $ | 686,812,963 | $ | 10,723,690 | $ | 697,549,591 | |||||||||||
Adjustment to reflect reduction of underwriters’ discount | 3,000,000 | 3,000,000 | ||||||||||||||||||
Accretion of Trust Account relating to common stock subject to possible redemption, net of tax of approximately $84,000 (unaudited) | — | — | — | (36,057 | ) | (36,057 | ) | |||||||||||||
Net loss (unaudited) | — | — | — | (8,322,721 | ) | (8,322,721 | ) | |||||||||||||
Balances, at June 30, 2010 (unaudited) | 129,375,000 | $ | 12,938 | $ | 689,812,963 | $ | 2,364,912 | $ | 692,190,813 | |||||||||||
F-193
(a corporation in the development stage)
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Period from | ||||||||||||
For the Six | For the Six | June 27, 2007 | ||||||||||
Months Ended | Months Ended | (inception) to | ||||||||||
June 30, 2010 | June 30, 2009 | June 30, 2010 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net income (loss) | $ | (8,322,721 | ) | $ | 1,349,912 | $ | 4,606,437 | |||||
Adjustment to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Warrant modification charge (stock compensation expense) | — | — | 2,460,000 | |||||||||
Deferred tax benefit | (207,000 | ) | (265,000 | ) | (699,000 | ) | ||||||
Increase (decrease) in cash attributable to changes in operating assets and liabilities: | ||||||||||||
Income tax receivable | (328,000 | ) | (328,000 | ) | ||||||||
Prepaid income taxes | 550,576 | 53,750 | ||||||||||
Other prepaid expenses | (45,398 | ) | 122,468 | (147,033 | ) | |||||||
Accrued expenses | 5,867,002 | — | 5,869,029 | |||||||||
Income taxes payable | — | (80,536 | ) | — | ||||||||
Franchise taxes payable | (31,574 | ) | 46,620 | — | ||||||||
Net cash provided by (used in) operating activities | (2,517,115 | ) | 1,227,214 | 11,761,433 | ||||||||
Cash flows from investing activities | ||||||||||||
Principal deposited in Trust Account | — | — | (1,017,502,500 | ) | ||||||||
Interest reinvested in Trust Account | (182,197 | ) | (3,018,230 | ) | (32,366,900 | ) | ||||||
Redemptions from the Trust Account | 590,050 | 1,308,167 | 28,236,115 | |||||||||
Net cash provided by (used in) investing activities | 407,853 | (1,710,063 | ) | (1,021,633,285 | ) | |||||||
Cash flows from financing activities | ||||||||||||
Repayment of notes payable, founding stockholders | — | — | (250,000 | ) | ||||||||
Proceeds from notes payable, founding stockholders | — | — | 250,000 | |||||||||
Proceeds from issuance of units to founding stockholders | — | — | 25,000 | |||||||||
Gross proceeds from public offering | — | — | 1,035,000,000 | |||||||||
Proceeds from issuance of warrants in private placements | — | — | 12,000,000 | |||||||||
Payments for underwriters’ discounts and offering costs | — | — | (30,320,609 | ) | ||||||||
Net cash provided by (used in) financing activities | — | — | 1,016,704,391 | |||||||||
Net increase (decrease) in cash | (2,109,262 | ) | (482,849 | ) | 6,832,539 | |||||||
Cash, beginning of period | 8,941,801 | 9,689,737 | — | |||||||||
Cash, end of period | $ | 6,832,539 | $ | 9,206,888 | $ | 6,832,539 | ||||||
Supplemental schedule of non-cash financing activities: | ||||||||||||
Deferred underwriters’ fee | $ | (3,000,0000 | ) | $ | — | $ | 24,427,500 | |||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid (received) during the period for income taxes | $ | (537,150 | ) | $ | 786,131 | $ | 12,962,926 | |||||
F-194
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A — | DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS, BUSINESS OPERATIONS AND GOING CONCERN CONSIDERATION |
F-195
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
F-196
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
F-197
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
F-198
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
F-199
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
F-200
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
F-201
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
Period from | ||||||||||||||||||||
For the Three | For the Three | For the Six | For the Six | June 27, 2007 | ||||||||||||||||
Months Ended | Months Ended | Months Ended | Months Ended | (inception) to | ||||||||||||||||
June 30, 2010 | June 30, 2009 | June 30, 2010 | June 30, 2009 | June 30, 2010 | ||||||||||||||||
Current | ||||||||||||||||||||
Federal | $ | (168,000 | ) | $ | 278,779 | $ | (328,000 | ) | $ | 879,120 | $ | 8,384,342 | ||||||||
State | — | 60,874 | — | 191,965 | 1,843,357 | |||||||||||||||
City | — | 83,246 | — | 262,513 | 2,506,377 | |||||||||||||||
Total current | $ | (168,000 | ) | $ | 422,899 | $ | (328,000 | ) | $ | 1,333,598 | $ | 12,734,076 | ||||||||
Deferred | ||||||||||||||||||||
Federal | $ | (72,000 | ) | $ | (77,000 | ) | $ | (207,000 | ) | $ | (177,000 | ) | $ | (699,000 | ) | |||||
State | (9,000 | ) | (18,000 | ) | (26,000 | ) | (41,000 | ) | (89,000 | ) | ||||||||||
City | (12,000 | ) | (20,000 | ) | (35,000 | ) | (47,000 | ) | (119,000 | ) | ||||||||||
(93,000 | ) | (115,000 | ) | (268,000 | ) | (265,000 | ) | (907,000 | ) | |||||||||||
Valuation allowance | 21,000 | 61,000 | 208,000 | |||||||||||||||||
Total deferred | $ | (72,000 | ) | $ | (115,000 | ) | $ | (207,000 | ) | $ | (265,000 | ) | $ | (699,000 | ) | |||||
Provision of income tax | $ | (240,000 | ) | $ | 307,899 | $ | (535,000 | ) | $ | 1,068,598 | $ | 12,035,076 | ||||||||
F-202
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
Significant | ||||||||||||||||
Quoted Prices | Other | Significant | ||||||||||||||
in | Observable | Unobservable | ||||||||||||||
Fair Value | Active Markets | Inputs | Inputs | |||||||||||||
Description | June 30, 2010 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents held in trust account | $ | 1,021,633,285 | $ | 1,021,633,285 | $ | — | $ | — | ||||||||
Total | $ | 1,021,633,285 | $ | 1,021,633,285 | $ | — | $ | — | ||||||||
Significant | ||||||||||||||||
Quoted Prices | Other | Significant | ||||||||||||||
in | Observable | Unobservable | ||||||||||||||
Fair Value | Active Markets | Inputs | Inputs | |||||||||||||
Description | December 31, 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents held in trust account | $ | 1,022,041,138 | $ | 1,022,041,138 | $ | — | $ | — | ||||||||
Total | $ | 1,022,041,138 | $ | 1,022,041,138 | $ | — | $ | — | ||||||||
F-203
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
F-204
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
• | cash in the amount of $0.90 per outstanding warrant to be delivered by Liberty Virginia (for aggregate cash consideration to the Company’s warrant holders of approximately $46.7 million, after giving effect to the sale by the Sponsors of all of their warrants to Liberty for nominal consideration pursuant to the terms of the amended and restated Securities Surrender Agreement, as described below); and | |
• | Prisa American Depositary Shares representing 0.45 newly issued Prisa Class A ordinary shares per outstanding warrant. |
F-205
(a corporation in the development stage)
NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) — (Continued)
NOTE J — | SUBSEQUENT EVENTS |
F-206
BUSINESS COMBINATION AGREEMENT
by and among
PROMOTORA DE INFORMACIONES, S.A.,
LIBERTY ACQUISITION HOLDINGS CORP.
and
LIBERTY ACQUISITION HOLDINGS VIRGINIA, INC.
dated as of April 5, 2010; Amendment No. 3 dated as of May 7, 2010; and further amended and
restated as of August 4, 2010
Page | ||||||
BUSINESS COMBINATION AGREEMENT | ||||||
ARTICLE I DEFINITIONS | ||||||
1.1 | Defined Terms | A-2 | ||||
1.2 | Glossary of Other Defined Terms | A-10 | ||||
ARTICLE II THE REINCORPORATION MERGER | ||||||
2.1 | The Reincorporation Merger | A-13 | ||||
2.2 | Reincorporation Effective Time | A-13 | ||||
2.3 | Effects of the Reincorporation Merger | A-13 | ||||
2.4 | Conversion of Liberty Stock | A-13 | ||||
2.5 | Redemptions | A-14 | ||||
2.6 | Warrants | A-14 | ||||
2.7 | Articles of Incorporation | A-15 | ||||
2.8 | Bylaws | A-15 | ||||
2.9 | Tax and Accounting Consequences | A-15 | ||||
2.10 | Board of Directors; Management | A-15 | ||||
ARTICLE III THE INCREASE IN CAPITAL IN KIND OF PRISA AND THE SHARE EXCHANGE | ||||||
3.1 | The Increases in Capital of PRISA | A-15 | ||||
3.2 | The PRISA In-Kind Prospectus | A-15 | ||||
3.3 | Exchange Effective Time; Effect of the Share Exchange | A-15 | ||||
3.4 | Deed of Capital Increase | A-16 | ||||
3.5 | Exchange of Liberty Virginia Stock | A-16 | ||||
3.6 | PRISA Capital Stock | A-21 | ||||
3.7 | Warrants Exchange | A-21 | ||||
3.8 | Trust Arrangements | A-21 | ||||
3.9 | Disbursement of Funds | A-21 | ||||
3.10 | Closing | A-21 | ||||
ARTICLE IV PROCEDURE FOR THE DELIVERY OF PRISA ADRS AND PAYMENT OF WARRANTS | ||||||
4.1 | PRISA to Make Shares Available | A-22 | ||||
4.2 | Exchange of Shares and Warrants | A-22 | ||||
ARTICLE V AMENDMENT OF PRISA ORGANIZATIONAL DOCUMENTS | ||||||
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF LIBERTY | ||||||
6.1 | Organization and Qualification | A-24 | ||||
6.2 | Capitalization | A-25 | ||||
6.3 | Authority; Liberty Board Approvals No Violation | A-25 | ||||
6.4 | Consents and Approvals | A-26 | ||||
6.5 | SEC Reports and Financial Statements | A-26 |
A-i
Page | ||||||
6.6 | Broker’s Fees | A-27 | ||||
6.7 | Absence of Certain Changes or Events | A-27 | ||||
6.8 | Legal Proceedings | A-27 | ||||
6.9 | Taxes and Tax Returns | A-27 | ||||
6.10 | Compliance | A-28 | ||||
6.11 | Contracts | A-28 | ||||
6.12 | Intellectual Property | A-28 | ||||
6.13 | Labor Matters | A-28 | ||||
6.14 | Employee Benefit Plans | A-28 | ||||
6.15 | Insurance | A-28 | ||||
6.16 | Trust Account | A-29 | ||||
6.17 | Affiliate Transactions | A-29 | ||||
6.18 | No Additional Representations | A-29 | ||||
ARTICLE VII REPRESENTATIONS AND WARRANTIES OF PRISA | ||||||
7.1 | Corporate Organization | A-29 | ||||
7.2 | Capitalization | A-30 | ||||
7.3 | Authority; No Violation | A-30 | ||||
7.4 | Consents and Approvals | A-31 | ||||
7.5 | CNMV Reports and Financial Statements | A-32 | ||||
7.6 | Broker’s Fees | A-32 | ||||
7.7 | Absence of Certain Changes or Events | A-32 | ||||
7.8 | Legal Proceedings | A-33 | ||||
7.9 | Taxes and Tax Returns | A-33 | ||||
7.10 | Employees | A-33 | ||||
7.11 | Compliance with Applicable Law | A-34 | ||||
7.12 | Certain Contracts | A-34 | ||||
7.13 | Environmental Matters | A-35 | ||||
7.14 | Intellectual Property; Proprietary Rights; Employee Restrictions | A-35 | ||||
7.15 | Insurance | A-36 | ||||
7.16 | Permits and Licenses | A-36 | ||||
7.17 | Transactions with Affiliates | A-36 | ||||
7.18 | Anti-Corruption | A-36 | ||||
7.19 | Export Controls and Economic Sanctions | A-37 | ||||
7.20 | Agreements with Governmental Entities | A-37 | ||||
7.21 | Properties | A-37 | ||||
7.22 | No Additional Representations | A-37 | ||||
ARTICLE VIII COVENANTS RELATING TO CONDUCT OF BUSINESS | ||||||
8.1 | Conduct of Businesses Prior to the Effective Time | A-37 | ||||
8.2 | Liberty Forbearances | A-37 | ||||
8.3 | PRISA Forbearances | A-39 | ||||
8.4 | Taxes | A-41 |
A-ii
Page | ||||||
ARTICLE IX ADDITIONAL AGREEMENTS | ||||||
9.1 | Regulatory Matters | A-41 | ||||
9.2 | Access to Information; Investor Presentations | A-43 | ||||
9.3 | Shareholder and Board Approvals | A-44 | ||||
9.4 | Stock Exchange Listing | A-45 | ||||
9.5 | Directors’ and Officers’ Insurance | A-46 | ||||
9.6 | [Intentionally Omitted | A-46 | ||||
9.7 | Advice of Changes | A-46 | ||||
9.8 | Reasonable Best Efforts | A-46 | ||||
9.9 | PRISA Board of Directors | A-46 | ||||
9.10 | Liberty Virginia Board of Directors and Officers | A-46 | ||||
9.11 | Capital Increases | A-46 | ||||
9.12 | Transfer Taxes | A-46 | ||||
9.13 | Liberty Virginia | A-46 | ||||
9.14 | State Takeover Laws | A-46 | ||||
9.15 | Limitation on Required Efforts | A-47 | ||||
9.16 | Asset Dispositions | A-47 | ||||
9.17 | Ancillary Agreements | A-47 | ||||
9.18 | PRISA Rights Offer | A-47 | ||||
9.19 | Securities Purchase From Sponsors | A-47 | ||||
9.20 | Spanish Language Version | A-48 | ||||
9.21 | Liberty Preferred Stock Account Escrow Agreement and Related Matters | A-48 | ||||
9.22 | Amendment of Agreement for New Investors | A-48 | ||||
ARTICLE X CONDITIONS PRECEDENT | ||||||
10.1 | Conditions to Each Party’s Obligation to Effect the Reorganization | A-48 | ||||
10.2 | Conditions to Obligations of Liberty | A-49 | ||||
10.3 | Conditions to Obligations of PRISA | A-50 | ||||
ARTICLE XI TERMINATION AND AMENDMENT | ||||||
11.1 | Termination | A-51 | ||||
11.2 | Effect of Termination | A-52 | ||||
11.3 | Amendment | A-52 | ||||
11.4 | Extension; Waiver | A-52 | ||||
ARTICLE XII GENERAL PROVISIONS | ||||||
12.1 | Nonsurvival of Representations, Warranties and Agreements | A-53 | ||||
12.2 | Expenses | A-53 | ||||
12.3 | Notices | A-53 | ||||
12.4 | Interpretation | A-54 | ||||
12.5 | Counterparts | A-54 | ||||
12.6 | Entire Agreement; Severability | A-54 | ||||
12.7 | Governing Law | A-55 | ||||
12.8 | Publicity | A-55 |
A-iii
Page | ||||||
12.9 | Assignment; Third Party Beneficiaries | A-55 | ||||
12.10 | Submission to Jurisdiction; Waivers; Consent to Service of Process | A-55 | ||||
12.11 | Specific Performance | A-56 | ||||
12.12 | Disclosure Schedules; Knowledge | A-56 |
Schedule I | — | Terms of PRISA Class B Convertible Non-Voting Shares | A-58 | |||
Schedule II | — | Terms of PRISA Warrants | A-64 | |||
Schedule III | — | Form of Amendment No. 1 to Amended and Restated Business Combination Agreement | A-65 |
Exhibit A | — | Form of Warrant Amendment Agreement | ||
Exhibit B | — | Plan of Merger | ||
Exhibit C | — | Liberty Virginia Articles | ||
Exhibit D | — | Liberty Virginia Bylaws | ||
Exhibit E | — | Plan of Share Exchange | ||
Exhibit F | — | Form of Transaction Cash Certificate | ||
Exhibit G | — | PRISA Bylaw Amendments(estatutos sociales) | ||
Exhibit H | — | Plan of PRISA Debt Restructuring | ||
Exhibit J | — | Form of Certificate of Designations for Liberty Series A Preferred Stock | ||
Exhibit K | — | Form of Certificate of Designations for Liberty Series B Preferred Stock | ||
Exhibit L | — | Form of Certificate of Designations for Liberty Series C Preferred Stock | ||
Exhibit M | — | Form of Certificate of Designations for Liberty Series D Preferred Stock | ||
Exhibit N | — | Form of Certificate of Designations for Liberty Series E Preferred Stock |
Annex I | — | Transaction Summary |
A-iv
A-1
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
Term | Section | |
8-A12(b) | Definition of Registration Statements | |
Aggregate Mixed Consideration Election Cash | 3.5(a)(ii) | |
Aggregate Series A Consideration | 3.5(b) | |
Aggregate Series B Consideration | 3.5(c) | |
Aggregate Series C Consideration | 3.5(d) | |
Aggregate Series D Consideration | 3.5(e) | |
Agreement | Introduction | |
Alternate PRISA Warrant Issuance | Definition of PRISA Warrant Issuance | |
Asset Dispositions | 9.16 | |
Authorized Agent | 12.10(b) | |
Board Reports | 9.1(d) | |
Cash Electing Share | 3.5(a)(i) | |
Cash Election | 3.5(a)(i) | |
Closing | 3.10 | |
Commercial Registry | 3.4(a) | |
Confidentiality Agreement | 9.2(d) | |
Debt Restructuring | 10.1(f) | |
Deed of In-Kind Capital Increase | 3.4(a) | |
Deed of Subscription Capital Increase | 9.18 | |
DGCL | Recitals | |
EAR | 7.19 | |
Election | 3.5(i)(ii) | |
Election Date and Time | 3.5(i)(iii) | |
Escrow Account | 9.21 |
A-10
Term | Section | |
Exchange Agent | 4.1 | |
Exchange Agreement | 4.1 | |
Exchange Effective Time | 3.4(a) | |
Exchange Fund | 4.1 | |
F-4 | Definition of Registration Statements | |
F-6 | Definition of Registration Statements | |
FCPA | 7.18 | |
Form of Election | 3.5(i)(i) | |
Fractional Share Cash | 4.2(e) | |
IM Trust Agreement | 6.16(b) | |
Investor | Definition of Liberty Preferred Stock Purchase Agreements | |
ITAR | 7.19 | |
Lease | 7.21 | |
Liberty | Introduction | |
Liberty Board Recommendation | 9.3(a) | |
Liberty Capital Stock | 6.2(a) | |
Liberty Common Certificate | 2.4(b) | |
Liberty Common Stock | 2.4(a) | |
Liberty Disclosure Schedule | Article VI | |
Liberty Financial Statements | 6.5(b) | |
Liberty Preferred Certificate | 2.4(b) | |
Liberty Preferred Stock | 6.2(a) | |
Liberty Record Date | 3.5(i)(i) | |
Liberty SEC Reports | 6.5(a) | |
Liberty Stockholder Meeting | 9.3(a) | |
Liberty Virginia | Preamble | |
Liberty Virginia Articles | 2.7 | |
Liberty Virginia Bylaws | 2.8 | |
Liberty Virginia Common Certificates | 2.4(b) | |
Liberty Virginia Common Stock | 2.4(a) | |
Liberty Virginia Preferred Certificates | 2.4(b) | |
Liberty Virginia Preferred Stock | 2.4(a) | |
Liberty Virginia Redemption Shares | 2.5 | |
Liberty Virginia Series A Preferred Stock | 2.4(a) | |
Liberty Virginia Series B Preferred Stock | 2.4(a) | |
Liberty Virginia Series C Preferred Stock | 2.4(a) | |
Liberty Virginia Series D Preferred Stock | 2.4(a) | |
Liberty Virginia Stock | 2.4(a) | |
Liberty Virginia Stockholders | 3.4(b) | |
Liberty Warrantholder Meeting | 9.3I | |
Liberty Warrantholders | 4.1 | |
Maximum PRISA Class A Ordinary Shares | 9.3(d) | |
Maximum PRISA Class B Convertible Non-Voting Shares | 9.3(d) |
A-11
Term | Section | |
Mixed Consideration Electing Share | 3.5(a)(ii) | |
Mixed Consideration Election | 3.5(a)(ii) | |
Non-Electing Share | 3.5(a)(iii) | |
OECD | 7.18 | |
Original BCA | Recitals | |
Per Share Cash Election Consideration | 3.5(a)(i) | |
Per Share Mixed Election Consideration | 3.5(a)(ii) | |
Per Share Mixed Consideration Election Cash | 3.5(a)(ii) | |
Per Share Series A Consideration | 3.5(b)(ii) | |
Per Share Series B Consideration | 3.5(c) | |
Per Share Series C Consideration | 3.5(d) | |
Per Share Series D Consideration | 3.5(e) | |
Plan of Merger | 2.2 | |
Plan of Share Exchange | 3.3(a) | |
PRISA | Introduction | |
PRISA ADS-A | Definition of PRISA ADS | |
PRISA ADS-NV | Definition of PRISA ADS | |
PRISA Bylaw Amendments | 9.3(d) | |
PRISA Capital Stock | 7.2(a) | |
PRISA CNMV Reports | 7.5(a) | |
PRISA Disclosure Schedule | Article VII | |
PRISA Distribution | 4.2(b) | |
PRISA Financial Statements | 7.5(b) | |
PRISA In-Kind Prospectus | 3.2 | |
PRISA Licensed Intellectual Property | 7.14(c) | |
PRISA Material Contracts | 7.12(a) | |
PRISA Owned Intellectual Property | 7.14(b) | |
PRISA Permits | 7.17 | |
PRISA Prospectuses | 9.1(d) | |
PRISA Rights Offer | 9.18 | |
PRISA Rights Offer Approvals | 9.3(d) | |
PRISA Shareholder Approval | 9.3(d) | |
PRISA Shareholder Meeting | 9.3(d) | |
PRISA Significant Subsidiaries | 7.2(b) | |
PRISA Subscription Prospectus | 9.1(d) | |
PRISA Support Agreement | Recitals | |
PRISA Warrant Approvals | 9.3(d) | |
PRISA Warrant Prospectus | 9.1(d) | |
Proxy Statement | 6.4 | |
Regulatory Agreement | 7.20 | |
Reincorporation Effective Time | 2.2 | |
Reincorporation Merger | Recitals | |
Reorganization | Recitals | |
Restraints | 10.1(d) |
A-12
Term | Section | |
Schedules | 12.12 | |
SCL | Recitals | |
Share Exchange | Recitals | |
Shareholder Transfer Taxes | 9.12 | |
Spanish Pension Plan | 7.10(a) | |
Sponsor Indemnification Agreement | Recitals | |
Sponsor Surrender Agreement | Recitals | |
Sponsors Support Agreement | Recitals | |
SSML | Definition of Affiliate | |
Surviving Corporation | 2.1 | |
Termination Date | 11.1(d) | |
Transaction Cash Certificate | 3.8 | |
Transaction Expense | 12.2 | |
Trust Account | 6.16(a) | |
Trust Account Documents | 6.16(b) | |
Trustee | 6.16(a) | |
Voting Debt | 7.2(a) | |
VSCA | Recitals | |
Warrant Consideration | 3.7 |
A-13
A-14
A-15
A-16
A-17
A-18
A-19
A-20
A-21
A-22
A-23
A-24
A-25
A-26
A-27
A-28
A-29
A-30
A-31
A-32
A-33
A-34
A-35
A-36
A-37
A-38
A-39
A-40
A-41
A-42
A-43
A-44
A-45
A-46
A-47
A-48
A-49
A-50
A-51
A-52
41st Floor
New York, NY 10036
Facsimile No.: +1(212) 382-0120
Attention: Sr. Jared Bluestein
Email: jb@berggruenholdings.com
401 E. Las Olas Boulevard
Suite 2000
Ft. Lauderdale, FL 33301
Facsimile No.: +1(954) 765-1477
Attention: Donn Beloff, Esq.
Email: beloffd@gtlaw.com
A-53
Hermosilla, 3
28001 Madrid
Spain
Facsimile No.: +34-91-339-2408
Attention: Sr. Ángel Calleja
Email: angel.calleja@garrigues.com
Gran Via, 32
28013 Madrid
Spain
Facsimile No.: +34-913301070
Attention: Sr. Iñigo Dago Elorza
Email: idago@prisa.es
Hermanos Bécquer, 8
28006 Madrid
Spain
Facsimile No.: +34-91-562-7370
Attention: Sr. Matías Cortés
Email: pcalle@cortes-abogados.com
51 West 52nd Street
New York, NY 10019
Attention: Adam O. Emmerich, Esq.
Email: aoemmerich@wlrk.com
A-54
A-55
A-56
By: | /s/ Jared Bluestein |
Title: | Secretary |
By: | /s/ Martin Franklin |
Title: | Chairman |
By: | /s/ Juan Luis Cebrián |
Title: | Chief Executive Officer |
A-57
a) | Derecho al dividendo |
A-58
b) | Conversión |
A-59
A-60
A-61
A-62
A-63
• | Prior to its expiration date, a PRISA Warrant will be exercisable at any time by the holder for 1 PRISA Class A Ordinary Share at an exercise price of €2.00 per PRISA Warrant | |
• | All PRISA Warrants will expire 3.5 years from the date of issuance. In order to validly exercise a PRISA Warrant, the holder must give a valid notice of exercise and deliver the exercise price and any other required documents to PRISA or its agent prior to the 3.5 year anniversary of issuance in accordance with exercise procedures to be established by PRISA |
A-64
A-65
Term | Section | |||
“Aggregate Series E Consideration | 3.5(f | )” | ||
“Liberty Virginia Series E Preferred Stock | 2.4(a | )” | ||
“Per Share Series E Consideration | 3.5(f | )” |
A-66
A-67
A-68
A-69
A-70
by and among
PROMOTORA DE INFORMACIONES, S.A.,
BERGGRUEN ACQUISITION HOLDINGS LTD.,
and
MARLIN EQUITIES II, LLC
Dated as of March 5, 2010
B-1
B-2
B-3
By: | /s/ Juan Luis Cebrián |
Title: | Chief Executive Officer |
By: | /s/ Jared Bluestein |
Title: | Secretary |
By: | /s/ Ian Ashken |
Title: | Authorized Signatory |
B-4
1114 Avenue of the Americas
New York, New York 10036
555 Theodore Fremd Avenue
Suite B-302
Rye, New York 10580
C-1
C-2
By: | /s/ Jared Bluestein |
Title: | Secretary |
By: | /s/ Martin E. Franklin |
Title: | Managing Member |
By: | /s/ Jared Bluestein |
Title: | Secretary |
C-3
SECOND AMENDED AND RESTATED WARRANT AGREEMENT
D-1
D-2
D-3
D-4
By: |
By: |
By: |
By: |
D-5
ARTICLES OF INCORPORATION
OF
LIBERTY ACQUISITION HOLDINGS VIRGINIA, INC.
NAME
REGISTERED OFFICE AND AGENT
CORPORATE PURPOSE AND POWERS
CAPITAL STOCK
E-1
E-2
E-3
E-4
E-5
E-6
E-7
E-8
E-9
E-10
E-11
E-12
E-13
E-14
E-15
E-16
E-17
E-18
DURATION
E-19
PREEMPTIVE RIGHTS
E-20
BYLAWS
AMENDMENT LIMITATION
SHAREHOLDER ACTION WITHOUT A MEETING
SHAREHOLDER APPROVAL OF FUNDAMENTAL TRANSACTIONS
ELECTIONS UNDER VIRGINIA STOCK CORPORATION ACT
E-21
OF
LIBERTY ACQUISITION HOLDINGS VIRGINIA, INC.
G-1
G-2
G-3
G-4
G-5
G-6
G-7
MERGER BETWEEN
LIBERTY ACQUISITION HOLDINGS CORP. AND
LIBERTY ACQUISITION HOLDINGS VIRGINIA, INC.
H-1
H-2
H-3
By: |
By: |
H-4
BETWEEN
LIBERTY ACQUISITION HOLDINGS VIRGINIA, INC.
AND
PROMOTORA DE INFORMACIONES, S.A.
I-1
I-2
I-3
I-4
I-5
I-6
CORPORATE BYLAWS (PROPOSAL AMENDMENT)
CHAPTER I
GENERAL PROVISIONS
J-1
SHARE CAPITAL AND SHARES
J-2
J-3
J-4
J-5
J-6
J-7
J-8
J-9
J-10
J-11
FINANCIAL AND ADMINISTRATIVE PROCEDURES
J-12
DISSOLUTION AND LIQUIDATION
J-13
APPLICABLE LAW
J-14
Company | Registered Office | Line of Business | Effective Percent | |||||
EDUCATION(1) | ||||||||
Full consolidation | ||||||||
Aguilar A.T.A., S.A. de Ediciones | Leandro N. Alem. 720. Buenos Aires. 1001. Argentina | Publishing | 100.00 | % | ||||
Aguilar Chilena de Ediciones, S.A. | Dr. Aníbal Ariztía 1444. Providencia. Santiago de Chile. Chile | Publishing | 100.00 | % | ||||
Avalia Qualidade Educacional Ltda. | Avenida São Gabriel. 201 Andar 14 Cj. 1408-1409. CEP 01435-0001. Sao Paulo. Brazil | Publishing | 91.00 | % | ||||
Canal de Editoriales, S.A. | Juan Bravo, 38. Madrid | Retail sales | 99.14 | % | ||||
Constancia Editores, S.A. | Estrada da Outorela 118, 2795. Carnaxide Linda a Velha. Portugal | Publishing | 100.00 | % | ||||
Distribuidora y Editora Aguilar A.T.A, S.A. | Calle 80, N 10-23. Santa Fé de Bogotá. Colombia | Publishing | 100.00 | % | ||||
Distribuidora y Editora Richmond, S.A. | Calle 80, N 10-23. Santa Fé de Bogotá. Colombia | Publishing | 100.00 | % | ||||
Ediciones Aguilar Venezolana, S.A. | Rómulo Gallegos. Edificio Zulia 1o. Caracas. Venezuela | Publishing | 100.00 | % | ||||
Ediciones Grazalema, S.L. | Rafael Beca Mateos, 3. Seville | Publishing | 100.00 | % | ||||
Ediciones Santillana Inc. | 1506 Roosevelt Avenue. Guaynabo. Puerto Rico | Publishing | 100.00 | % | ||||
Ediciones Santillana, S.A. (Argentina) | Leandro N. Alem. 720. Buenos Aires. 1001. Argentina | Publishing | 100.00 | % | ||||
Ediciones Santillana, S.A. (Uruguay) | Constitución, 1889 — 11800. Montevideo. Uruguay | Publishing | 100.00 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Edicions Obradoiro, S.L. | Ruela de Entrecercos. 2 2o B. 15705. Santiago de Compostela | Publishing | 100.00 | % | ||||
Edicions Voramar, S.A. | Valencia, 44. 46210. Pincaya. Valencia | Publishing | 100.00 | % | ||||
Editora Fontanar, Ltda. | Rua Cosme Velho, 103. Bairro Cosme Velho. Rio de Janeiro. Brazil | Publishing | 75.00 | % | ||||
Editora Moderna Ltda. | Rua Padre Adelino, 758. Belezinho. Sao Paulo. Brazil | Publishing | 100.00 | % | ||||
Editora Objetiva Ltda. | Rua Cosme Velho, 103. Bairro Cosme Velho. Rio de Janeiro. Brazil | Publishing | 75.00 | % | ||||
Editorial Nuevo México, S.A. de C.V. | Tenayuca N° 107. Col Vértiz Narvarte. Mexico City, Mexico | Publishing | 100.00 | % | ||||
Editorial Santillana, S.A. (Colombia) | Calle 80, N 10-23. Santa Fé de Bogotá. Colombia | Publishing | 100.00 | % | ||||
Editorial Santillana, S.A. (Guatemala) | 7a Avenida 11-11. Zona 9. Guatemala | Publishing | 100.00 | % | ||||
Editorial Santillana, S.A. (Honduras) | Colonia Lomas de Tepeyac. Casa No. 1626, contiguo al Autobanco Cuscatlan. | Publishing | 100.00 | % | ||||
Editorial Santillana, S.A. (Dominican Republic) | Juan Sánchez Ramírez, 9. Gazcue. Santo Domingo. Dominican Republic | Publishing | 100.00 | % | ||||
Editorial Santillana, S.A. (Venezuela) | Rómulo Gallegos. Edificio Zulia 1o. Caracas. Venezuela | Publishing | 100.00 | % | ||||
Editorial Santillana, S.A. de C.V. (El Salvador) | Siemens, 48 Zona Industrial Santa Elena. La Libertad. El Salvador | Publishing | 100.00 | % | ||||
Editorial Santillana, S.A. de C.V. (Mexico) | Avenida Universidad 767. Colonia del Valle. Mexico City, Mexico | Publishing | 100.00 | % | ||||
Grup Promotor D’Ensenyement i Difussió en Catalá, S.L. | Frederic Mompou, 11. V. Olímpica. Barcelona | Publishing | 100.00 | % | ||||
Grupo Santillana de Ediciones, S.L. | Torrelaguna, 60. Madrid | Publishing | 100.00 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Instituto Universitario de Posgrado, S.A. | Torrelaguna, 60. Madrid | Complementary educational services | 52.00 | % | ||||
Ítaca, S.L. | Torrelaguna, 60. Madrid | Book distribution | 100.00 | % | ||||
Lanza, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City, Mexico | Creation, development and management of companies | 100.00 | % | ||||
N. Editorial, S.L. | Torrelaguna, 60. Madrid | Publishing | 100.00 | % | ||||
Richmond Educaçâo, Ltda. | Rua Urbano Santos. 755. Sala 4. Bairro Cumbica. Cidade de Guarulhos. Sao Paulo. Brazil | Publishing | 100.00 | % | ||||
Richmond Publishing, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City, Mexico | Publishing | 100.00 | % | ||||
Salamandra Editorial, Ltda. | Rua Urbano Santos 160. Sao Paulo. Brazil | Publishing | 100.00 | % | ||||
Santillana, S.A. (Costa Rica) | La Uruca. 200 m Oeste de Aviación Civil. San José. Costa Rica | Publishing | 100.00 | % | ||||
Santillana, S.A. (Ecuador) | Avenida Eloy Alfaro. N33-347 y 6 de Diciembre. Quito. Ecuador | Publishing | 100.00 | % | ||||
Santillana, S.A. (Paraguay) | Avenida Venezuela. 276. Asunción. Paraguay | Publishing | 100.00 | % | ||||
Santillana, S.A. (Peru) | Avenida Primavera 2160. Santiago de Surco. Lima. Peru | Publishing | 95.00 | % | ||||
Santillana Canarias, S.L. | Urbanización El Mayorazgo. Parcela 14,2-7B. Santa Cruz de Tenerife | Publishing | 100.00 | % | ||||
Santillana de Ediciones, S.A. | Avenida Arce. 2333. La Paz. Bolivia | Publishing | 100.00 | % | ||||
Santillana del Pacífico, S.A. de Ediciones | Dr. Aníbal Ariztía 1444. Providencia. Santiago de Chile. Chile | Publishing | 100.00 | % | ||||
Santillana Ediciones Generales, S.L. | Torrelaguna, 60. Madrid | Publishing | 100.00 | % | ||||
Santillana Ediciones Generales, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City, Mexico | Publishing | 100.00 | % | ||||
Santillana Educación, S.L. | Torrelaguna, 60. Madrid | Publishing | 100.00 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Santillana Formación, S.L. | Torrelaguna, 60. Madrid | Complementary educational services | 100.00 | % | ||||
Santillana Formación, S.L. (Colombia) | Calle 73. No 7-31. P8 TO B. Bogotá. Colombia | Consultancy services for the obtainment of quality certification by schools | 100.00 | % | ||||
Santillana USA Publishing Co. Inc. | 2105 NW 86th Avenue, Doral, FL 33122 U.S. | Publishing | 100.00 | % | ||||
Uno Educaçâo, Ltda. | Rua Urbano Santos. 755. Sala 4. Bairro Cumbica. Cidade de Guarulhos. Sao Paulo. Brazil | Publishing | 100.00 | % | ||||
Zubia Editoriala, S.L. | Polígono Lezama Leguizamon. Calle 31. Etxebarri. Vizcaya | Publishing | 100.00 | % | ||||
Proportionate consolidation | ||||||||
Historia para Todos, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City, Mexico | Worldwide publishing in any language (mainly Spanish), of works preferably related to the history of Mexico and its main figures, particularly the Centenary of the Mexican Revolution and the Bicentenary of Independence, in any format or medium | 50.00 | % | ||||
PRESS(2) | ||||||||
EL PAÍS | ||||||||
Full consolidation | ||||||||
Agrupación de Servicios de Internet y Prensa, A.I.E. | Valentín Beato, 44. Madrid | Administrative, technological and legal services and the distribution of written and digital media | 100.00 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Box News Publicidad, S.L. (formerly Box News Comunicación, S.L.) | Gran Vía, 32. Madrid | Advertising services and public relations | 100.00 | % | ||||
Diario El País, S.L. | Miguel Yuste, 40. Madrid | Publication and operation of El País newspaper | 100.00 | % | ||||
Diario El País Argentina, S.A. | Leandro N. Alem. 720. Buenos Aires. 1001. Argentina | Operation of El País newspaper in Argentina | 100.00 | % | ||||
Diario El País Do Brasil Distribuidora de Publicaçoes, LTDA. | Rua Padre Adelino. 758 Belezinho. CEP 03303-904. Sao Paulo. Brazil | Operation of El País newspaper in Brazil | 100.00 | % | ||||
Diario El País México, S.A. de C.V. | Avenida Universidad 767. Colonia del Valle. Mexico City, Mexico | Operation of El País newspaper in Mexico | 100.00 | % | ||||
Ediciones El País, S.L. | Miguel Yuste, 40. Madrid | Publication, operation and sale of El País newspaper | 100.00 | % | ||||
Pressprint, S.L.U. | Miguel Yuste, 40. Madrid | Production, printing, publication and distribution of publishing products in physical and digital format | 100.00 | % | ||||
TRADE PRESS | ||||||||
Full consolidation | ||||||||
Diario As, S.L. | Albasanz, 14. Madrid | Publication and operation of AS newspaper | 75.00 | % | ||||
Espacio Editorial Andaluza Holding, S.L. | Gran Vía, 32. Madrid | Ownership of shares of publishing companies | 100.00 | % | ||||
Estructura, Grupo de Estudios Económicos, S.A. | Gran Vía, 32. Madrid | Publication and operation of Cinco Días newspaper | 100.00 | % | ||||
Grupo Empresarial de Medios Impresos, S.L. | Gran Vía, 32. Madrid | Ownership of shares of publishing companies | 100.00 | % | ||||
Gestión de Medios de Prensa, S.A. | Gran Vía, 32. Madrid | Provision of shared services for regional and local newspapers | 50.82 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Promotora General de Revistas, S.A. | Julián Camarillo, 29B. Madrid | Publication production and operation of magazines | 100.00 | % | ||||
RADIO(3) | ||||||||
RADIO IN SPAIN | ||||||||
Full consolidation | ||||||||
Algarra, S.A. | García Lovera, 3. Córdoba | Operation of radio broadcasting stations | 73.49 | % | ||||
Antena 3 de Radio, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 73.06 | % | ||||
Antena 3 de Radio de León, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 72.74 | % | ||||
Antena 3 de Radio de Melilla, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 73.06 | % | ||||
Avante Radio, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 72.95 | % | ||||
Cantabria de Medios, S.A. | Pasaje de Peña. No 2. Interior. 39008. Santander | Operation of radio broadcasting stations | 66.19 | % | ||||
Compañía Aragonesa de Radiodifusión, S.A. | Paseo de la Constitución, 21. Zaragoza | Operation of radio broadcasting stations | 71.30 | % | ||||
Corporación Canaria de Información y Radio, S.A. | General Balmes s/n. Las Palmas de Gran Canaria | Operation of radio broadcasting stations | 73.49 | % | ||||
Ediciones LM, S.L. | Plaza de Cervantes, 6. Ciudad Real | Operation of radio broadcasting stations | 36.75 | % | ||||
Frecuencia del Principado, S.A. | Jovellanos 1, Gijón | Operation of radio broadcasting stations | 73.49 | % | ||||
Gestión de Marcas Audiovisuales, S.A. | Gran Vía, 32. Madrid | Production and recording of sound media | 73.49 | % | ||||
Gran Vía Musical de Ediciones, S.L | Gran Vía, 32. Madrid | Provision of music services | 73.49 | % | ||||
Iniciativas Radiofónicas, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 68.65 | % | ||||
Iniciativas Radiofónicas de Castilla La Mancha, S.A. | Carreteros, 1. Toledo | Operation of radio broadcasting stations | 51.54 | % | ||||
La Palma Difusión, S.A. | Almirante Díaz Pimienta, 10. Los Llanos de Aridane. Santa Cruz de Tenerife | Operation of radio broadcasting stations | 73.06 | % | ||||
Onda La Finojosa, S.A. | Limosna, 2. Hinojosa del Duque. Córdoba | Operation of radio broadcasting stations | 73.49 | % | ||||
Onda Musical, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 73.27 | % | ||||
Ondas Galicia, S.A. | San Pedro de Mezonzo, 3. Santiago de Compostela | Operation of radio broadcasting stations | 33.99 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Propulsora Montañesa, S. A. | Pasaje de Peña. No 2. Interior. 39008. Santander | Operation of radio broadcasting stations | 66.19 | % | ||||
Radio 30, S.A. | Radio Murcia, 4. Murcia | Operation of radio broadcasting stations | 61.23 | % | ||||
Radio Club Canarias, S.A. | Avenida Anaga, 35. Santa Cruz de Tenerife | Operation of radio broadcasting stations | 69.81 | % | ||||
Radio España de Barcelona, S.A. | Caspe, 6. Barcelona | Operation of radio broadcasting stations | 72.98 | % | ||||
Radio Murcia, S.A. | Radio Murcia, 4. Murcia | Operation of radio broadcasting stations | 61.23 | % | ||||
Radio Zaragoza, S.A. | Paseo de la Constitución, 21. Zaragoza | Operation of radio broadcasting stations | 64.69 | % | ||||
Radiodifusora de Navarra, S.A. | Polígono Plazaola. Manzana F - 2oA. Pamplona | Operation of radio broadcasting stations | 73.06 | % | ||||
Sociedad de Servicios Radiofónicos Unión Radio, S.L. | Gran Vía, 32. Madrid | Provision of services to radio broadcasting companies | 73.49 | % | ||||
Sociedad Española de Radiodifusión, S.L. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 73.48 | % | ||||
Sociedad Independiente Comunicación Castilla La Mancha, S.A. | Avenida de la Estación, 5 Bajo. Albacete | Operation of radio broadcasting stations | 54.50 | % | ||||
Sociedad de Radiodifusión Aragonesa, S.A. | Paseo de la Constitución, 21. Zaragoza | Operation of radio broadcasting stations | 36.74 | % | ||||
Societat de Comunicacio i Publicidat, S.L. | Parc. de la Mola, 10 Torre Caldea, 6o Escalde. Engordany. Andorra | Operation of radio broadcasting stations | 73.48 | % | ||||
Sonido e Imagen de Canarias, S.A. | Caldera de Bandama, 5. Arrecife. Lanzarote | Operation of radio broadcasting stations | 36.53 | % | ||||
Talavera Visión, S.L. | Plaza Cervantes 6 4o. Ciudad Real | Operation of radio broadcasting stations | 36.75 | % | ||||
Teleser, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 58.08 | % | ||||
Teleradio Pres, S.L. | Avenida de la Estación, 5 Bajo. Albacete | Media management | 54.87 | % | ||||
Unión Radio Digital, S.A. | Gran Vía, 32. Madrid | Operation of digital radio broadcasting concession | 73.32 | % | ||||
Unión Radio Servicios Corporativos, S.A. | Gran Vía, 32. Madrid | Holdings in radio broadcasting companies | 73.49 | % | ||||
Valdepeñas Comunicación, S.L. | Plaza de Cervantes, 6. Ciudad Real | Operation of radio broadcasting stations | 36.75 | % | ||||
Equity method |
Company | Registered Office | Line of Business | Effective Percent | |||||
Radio Jaén, S.L. | Obispo Aguilar, 1. Jaén | Operation of radio broadcasting stations | 26.45 | % | ||||
Unión Radio del Pirineu, S.A. | Carrer Prat del Creu, 32. Andorra | Operation of radio broadcasting stations | 24.25 | % | ||||
INTERNATIONAL RADIO | ||||||||
Full consolidation | ||||||||
Abril, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Inactive | 73.48 | % | ||||
Aurora, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Inactive | 73.48 | % | ||||
Blaya y Vega, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Advertising sales | 73.48 | % | ||||
Caracol, S.A. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | 56.62 | % | ||||
Caracol Broadcasting Inc. | 2100 Coral Way — Miami 33145 -Florida, US | Operation of radio broadcasting stations | 73.48 | % | ||||
Caracol Estéreo, S.A. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | 56.61 | % | ||||
CHR, Cadena Hispanoamericana de Radio, S.A. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | 56.61 | % | ||||
Comercializadora Iberoamericana Radio Chile, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | 73.48 | % | ||||
Compañía de Comunicaciones C.C.C. Ltda. | Calle 67 No 7-37 Piso 7 Bogotá. Colombia | Commercial radio broadcasting services | 56.59 | % | ||||
Compañía de Radios, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Sale of advertising and rental of advertising space | 73.48 | % | ||||
Comunicaciones del Pacífico, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation and management of television channels and radio stations | 73.48 | % | ||||
Comunicaciones Santiago, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | 73.48 | % | ||||
Consorcio Radial de Panamá, S.A. | Urbanización Obarrio, Calle 54 Edificio Caracol. Panamá | Advisory services and commercialization of services and products in general, and in particular to Green Emerald Business Inc. | 73.48 | % | ||||
Corporación Argentina de Radiodifusión, S.A. | Beazley 3860. Buenos Aires. Argentina | Operation of radio broadcasting stations | 73.64 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Ecos de la Montaña Cadena Radial Andina, S.A. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | 56.44 | % | ||||
Emisora Mil Veinte, S.A. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | 55.64 | % | ||||
Fast Net Comunicaciones, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Telecommunications and radio broadcasting services | 73.48 | % | ||||
GLR Broadcasting, LLC | Baypoint Office Tower, 4770 Biscayne Blvd. Suite 700 Miami. FL 33137. US | Operation of radio broadcasting stations | 73.48 | % | ||||
GLR Chile Ltda | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | 73.48 | % | ||||
GLR Colombia, Ltda. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Provision of services to radio broadcasting companies | 73.75 | % | ||||
GLR Midi France, S.A.R.L. | Immeuble Le Periscope, 83-87 Av. d’Italie. Paris. France | Radio broadcasting | 49.39 | % | ||||
GLR Networks, LLC | Baypoint Office Tower, 4770 Biscayne Blvd., Suite 700, Miami, FL 33137 U.S. | Provision of services to radio broadcasting companies | 73.48 | % | ||||
GLR Services Inc. | Baypoint Office Tower, 4770 Biscayne Blvd., Suite 700, Miami, FL 33137 U.S. | Provision of services to radio broadcasting companies | 73.48 | % | ||||
GLR Southern California, LLC | 3500 Olive Avenue Suite 250 Burbank, CA 91505. US | Provision of services to radio broadcasting companies | 73.48 | % | ||||
Iberoamericana Radio Chile, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Sale of advertising | 73.48 | % | ||||
Iberoamerican Radio Holding Chile, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Holdings and sale of advertising space | 73.48 | % | ||||
La Voz de Colombia | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | 55.59 | % | ||||
LS4 Radio Continental, S.A | Rivadavia 835. Ciudad Autónoma de Buenos Aires. Argentina | Radio broadcasting and advertising services | 73.53 | % | ||||
Promotora de Publicidad Radial, S.A. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | 56.61 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Publicitaria y Difusora del Norte Ltda. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Radio broadcasting | 73.48 | % | ||||
Radiodifusion Iberoamerican Chile S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Holdings | 73.48 | % | ||||
Radio Estéreo, S.A | Rivadavia 835. Ciudad Autónoma de Buenos Aires. Argentina | Radio broadcasting and advertising services | 73.53 | % | ||||
Radio Mercadeo, Ltda. | Calle 67. No 7-37. Piso 7. Bogotá. Colombia | Commercial radio broadcasting services | 53.06 | % | ||||
Sociedad Radiodifusora del Norte, Ltda. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Operation of radio broadcasting stations | 73.48 | % | ||||
Sociedad de Radiodifusión El Litoral, S.A. | Eliodoro Yañex. No 1783. Comuna Providencia Santiago. Chile | Rental of equipment and advertising sales | 73.48 | % | ||||
W3 Comm Inmobiliaria, S.A. de C.V. | Carretera Libre Tijuana. Ensenada 3100. Rancho Altamira Bld Popotla y Camino al FRACC Misión del Mar. Playas de Rosarito. Baja, California U.S. | Real estate development services | 73.48 | % | ||||
Proportionate consolidation | ||||||||
Cadena Radiodifusora Mexicana, S.A. de C.V. | Calzada de Tlalpan 3000 col Espartaco Mexico City 04870. Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
GLR Costa Rica, S.A. | Llorente de Tibás. Edifico La Nación. San José. Costa Rica | Radio broadcasting | 36.74 | % | ||||
Radio Comerciales, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
Radio Melodía, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
Radio Tapatía, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
Radiotelevisora de Mexicali, S.A. de C.V. | Avenida Reforma 1270. Mexicali Baja California. Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
Servicios Radiópolis, S.A. de C.V. | Calzada de Tlalpan 3000 col Espartaco Mexico City 04870. Mexico | Operation of radio broadcasting stations | 36.74 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Servicios Xezz, S.A. de C.V. | Calzada de Tlalpan 3000 col Espartaco Mexico City 04870. Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
Sistema Radiópolis, S.A. de C.V. | Avenida Vasco de Quiroga 2000. Mexico City, Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
Xezz, S.A. de C.V. | Rubén Darío no 158. Guadalajara. Mexico | Operation of radio broadcasting stations | 36.74 | % | ||||
Equity method | ||||||||
El Dorado Broadcasting Corporation | 2100 Coral Way, Miami, FL 33145 U.S. | Development of the Latin radio market in the USA | 18.37 | % | ||||
Green Emerald Business Inc. | Calle 54. Obarrio No 4. Ciudad de Panamá. Panamá | Development of the Latin radio market in Panama | 25.68 | % | ||||
WSUA Broadcasting Corporation | 2100 Coral Way. Miami. Florida. US | Radio broadcasting | 18.37 | % | ||||
W3 Comm Concesionaria, S.A. de C.V. | Carretera Libre Tijuana. Ensenada 3100. Rancho Altamira Bld Popotla | Advisory services on business administration and organization | 35.99 | % | ||||
y Camino al FRACC Misión del Mar. Playas de Rosarito. Baja, California U.S. | ||||||||
MUSIC | ||||||||
Full consolidation | ||||||||
Compañía Discográfica Muxxic Records, S.A. | Gran Vía, 32. Madrid | Production and recording of sound media | 73.49 | % | ||||
Gran Vía Musical, S.A.S. | Calle 67. No 7 - 37. Piso 7o. Bogotá. Colombia. | Provision of music services | 73.49 | % | ||||
Lirics and Music, S.L. | Gran Vía, 32. Madrid | Music publishing | 73.49 | % | ||||
Media Festivals, S.A. | Gran Vía, 32. Madrid | Production and organisation of shows and events | 73.49 | % | ||||
Merchandising On Stage, S.L. | Ulises, 49. 28043. Madrid | Production and/or import of textile articles, jewellery, graphic materials, phonographic and/or audiovisual media and the related silkscreen printing, embossing or printing by any means or process | 51.44 | % | ||||
Nova Ediciones Musicales, S.A. | Gran Vía, 32. Madrid | Music publishing | 73.49 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Planet Events, S.A. | Gran Vía, 32. Madrid | Production and organization of shows and events | 51.44 | % | ||||
RLM Colombia, S.A.S. | Calle 67. No 7 - 37. Piso 7o. Bogotá. Colombia. | Production and organization of shows and events | 51.44 | % | ||||
RLM, S.A. | Puerto de Santa María, 65. 28043. Madrid | Production and organization of shows and events | 51.44 | % | ||||
Sogecable Música, S.L. | Gran Vía, 32. Madrid | Creation, broadcasting, distribution and operation of thematic television channels | 73.49 | % | ||||
AUDIOVISUAL(4) | ||||||||
SOGECABLE | ||||||||
Full consolidation | ||||||||
Audiovisual Sport, S.L. | Calle Diagonal, 477. Barcelona | Management and distribution of audiovisual rights | 80.00 | % | ||||
CanalSatélite Digital, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Television services | 100.00 | % | ||||
Centro de Asistencia Telefónica, S.A. | Campezo,1. Madrid | Provision of services | 100.00 | % | ||||
Compañía Independiente de Televisión, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Management and exploitation of audiovisual rights | 100.00 | % | ||||
Cinemanía, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Operation of thematic television channels | 100.00 | % | ||||
DTS, Distribuidora de Televisión Digital, S.A. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Television services | 100.00 | % | ||||
Promotora Audiovisual de Colombia PACSA, S.A. | Calle 70. No 4-60. 11001. Bogotá. Colombia | Audiovisual and communication activities | 55.00 | % | ||||
Sociedad General de Cine, S.A. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Production and management of audiovisual rights | 100.00 | % | ||||
Sogecable, S.A.U. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Operation of television activities | 100.00 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Sogecable Editorial, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Management of intellectual property rights | 100.00 | % | ||||
Sogecable Media, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Sale of advertising space | 100.00 | % | ||||
Sogepaq, S.A. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Management and distribution of audiovisual rights | 100.00 | % | ||||
Vía Atención Comunicación, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Provision of digital television services | 100.00 | % | ||||
Equity method | ||||||||
Canal Club de Distribución de Ocio y Cultura, S.A. | Calle Hermosilla, 112. Madrid | Catalog sales | 25.00 | % | ||||
Canal + Investment Inc. | Beverly Hills, CA U.S. | Film production | 60.00 | % | ||||
Compañía Independiente de Noticias de TV, S.L. | Avenida de los Artesanos, 6. Tres Cantos. Madrid | Television services | 50.00 | % | ||||
LOCAL TELEVISION | ||||||||
Full consolidation | ||||||||
Axarquía Visión, S.A. | Paseo de Reding, 7. Malaga | Provision of local television services | 69.79 | % | ||||
Canal 4 Navarra, S.L. | Avenida Sancho el Fuerte, 18. Pamplona | Production and broadcasting of videos and television programs | 100.00 | % | ||||
Canal 4 Navarra Digital, S.A. | Polígono Industrial Cordovilla. Navarra | Provision of local television services | 100.00 | % | ||||
Collserola Audiovisual, S.L. | Plaza Narcis Oller. No 6 1o. 1a. 08006. Barcelona | Provision of local television services | 92.50 | % | ||||
Comunicación Radiofónica, S.A. | Gran Vía, 32. Madrid | Operation of radio broadcasting stations | 100.00 | % | ||||
Comunicaciones y Medios Audiovisuales Tele Alcalá, S.L. | Encomienda, 33. Alcalá de Henares. Madrid | Provision of local television services | 100.00 | % | ||||
Legal Affairs Consilium, S.L. | Plaza Narcis Oller. No 6 1o. 1a. 08006. Barcelona | Provision of local television services | 100.00 | % | ||||
Localia TV Madrid, S.A. | Gran Vía, 32. Madrid | Provision of local television services | 100.00 | % | ||||
Localia TV Valencia, S.A. | Don Juan de Austria 3. 46002. Valencia | Provision of local television services | 100.00 | % | ||||
Málaga Altavisión, S.A. | Paseo de Reding, 7. Malaga | Production and broadcasting of videos and | 87.24 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
television programs | ||||||||
Marbella Digital Televisión, S.A. | Paseo de Reding, 7. Malaga | Provision of local television services | 87.24 | % | ||||
Productora Asturiana de Televisión, S.A. | Asturias, 19. Oviedo | Provision of local television services | 59.99 | % | ||||
Productora Audiovisual de Badajoz, S.A. | Ramón Albarrán, 2. Badajoz | Provision of local television services | 61.45 | % | ||||
Productora Audiovisual de Mallorca, S.A. | Puerto Rico, 15. Palma de Mallorca | Provision of local television services | 99.84 | % | ||||
Productora de Comunicación Toledo, S.A. | Carreteros, 1. Toledo | Provision of local television services | 100.00 | % | ||||
Productora de Televisión de Córdoba, S.A. | Amatista s/n. Polígono El Granadall. Cordoba | Provision of local television services | 100.00 | % | ||||
Productora Digital de Medios Audiovisuales, S.A. | Juan de la Cierva, 72. Polígono Industrial Prado Regordoño. Móstoles. Madrid | Provision of local television services | 100.00 | % | ||||
Productora Extremeña de Televisión, S.A. | J. M. R. “Azorín”. Edificio Zeus. Polígono La Corchera. Mérida. Badajoz | Provision of local television services | 66.00 | % | ||||
Promociones Audiovisuales Sevillanas, S.A. | Rafael González Abreu, 3. Seville | Production and broadcasting of videos and television programs | 100.00 | % | ||||
Promoción de Actividades Audiovisuales en Canarias, S.A. | Avenida Anaga, 35. Santa Cruz de Tenerife | TV communication activities in the Canary Islands | 100.00 | % | ||||
Promotora Audiovisual de Zaragoza, S.L. | Emilia Pardo Bazán, 18. Zaragoza | Provision of local television services | 100.00 | % | ||||
Promotora de Emisoras, S.L. | Gran Vía, 32. Madrid | Radio broadcasting services | 100.00 | % | ||||
Promotora de Emisoras de Televisión, S.A. | Gran Vía, 32. Madrid | Operation of television channels | 100.00 | % | ||||
Telecomunicaciones Antequera, S.A. | Aguardenteros, 15. Antequera. Malaga | Provision of local television services | 87.24 | % | ||||
Televisión Ciudad Real, S.L. | Ronda Carmen, 4. Ciudad Real | Production, broadcasting, publication and | 75.10 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
distribution of all manner of communication media and advertising activities | ||||||||
Televisión, Medios y Publicidad, S.L. | Quitana, 38. Alicante | Provision of television services | 100.00 | % | ||||
TV Local Eivissa, S.L | Avenida San Jordi s/n. Edificio Residencial. Ibiza | Provision of television services | 100.00 | % | ||||
Equity method | ||||||||
Grupo de Comunicación y Televisión Castilla La Mancha, S.A. | Calle País Valenciano 5. Ciudad Real | Provision of local television services | 33.33 | % | ||||
Riotedisa, S.A. | Avenida de Portugal, 12. Logroño | Audiovisual productions for television | 54.88 | % | ||||
Televisión Digital de Baleares, S.L. | Avenida Setze de Juliol, 53. Palma de Mallorca | Provision of local television services | 40.00 | % | ||||
MEDIA CAPITAL | ||||||||
Full consolidation | ||||||||
Agenciamiento e Produçao de Espectáculos, Lda (EVENTOS SPOT) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Production and promotion of concerts and musical events in Portugal and abroad | 47.35 | % | ||||
Argumentos para Audiovisual, Lda. (CASA DA CRIAÇAO) | Avenida Liberdade. No 144/156 - 6o Dto. 1250-146. Lisbon. Portugal | Creation, development, translation and adaptation of texts and ideas for television programs, films, entertainment, advertising and theater | 94.69 | % | ||||
Chip Audiovisual, S.A. | Coso, 100 . Planta 3a puerta 4-50001. Zaragoza | Audiovisual productions for television | 24.15 | % | ||||
Desenvolvimento de Sistemas de Comunicaçao, S.A. (MEDIA CAPITAL TECHNOLOGIES) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Development, maintenance and commercial operation of computer hardware and programs; management of multimedia content (images, sound, text and data) | 94.69 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Editora Multimédia, S.A. (MULTIMÉDIA) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, multimedia production, distribution, consultancy, sales (mail order, telephone and other) of goods and services as well as the acquisition, supply, preparation and dissemination of journalism by any means | 94.69 | % | ||||
Emissoes de Radiodifusao, S.A. (REGIONAL RADIO OF LISBON) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting | 94.69 | % | ||||
Empresa de Meios Audiovisuais, Lda. (EMAV) | Quinta Do Olival Das Minas. Lote 9. Vialonga. 2625-577. Vialonga. Portugal | Purchase, sale and rental of audiovisual media (cameras, videos, special filming and lighting equipment, cranes, rails, etc. ) | 94.69 | % | ||||
Empresa Portuguesa de Cenários, Lda. (EPC) | Quinta Do Olival Das Minas. Lote 9. Vialonga. 2625-577. Vialonga. Portugal | Design, construction and installation of decorating accessories | 94.69 | % | ||||
Factoría Plural, S.L. | Calle Biarritz, 2. 50017 Zaragoza | Production and distribution of audiovisual content | 48.29 | % | ||||
Grupo Media Capital, SGPS, S.A. | Rua Mário Castlhano no 40. Queluz de Baixo. Portugal | Holdings | 94.69 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Kimberley Trading, S.A. (KIMBERLEY) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Performance of any television-related activity such as the installation, management and operation of any television channel or infrastructure | 94.69 | % | ||||
Lúdicodrome Editora Unipessoal, Lda. | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, multimedia production, distribution, consultancy, sale (mail order, telephone or other) of goods and services disseminated via catalogs, magazines, newspapers, printed or audiovisual media | 94.69 | % | ||||
Media Capital Música e Entretenimento, S.A. (MCME) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, graphic arts and the reproduction of recorded media: magazines, audio publication, video reproduction and the provision of services related to music, the radio, television, film, theatre and literary magazines | 94.69 | % | ||||
Media Capital Produçoes, S.A. (MCP) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Design, development, production, promotion, sale, acquisition, exploitation rights, recording, distribution and dissemination of audiovisual media | 94.69 | % | ||||
Media Capital Produçoes—Investimentos, SGPS, S.A. | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Holdings | 94.69 | % | ||||
Media Capital Rádios, S.A. (MCR II) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Provision of services in the areas of accounting and financial consultancy; performance of radio broadcasting activities in the areas of the production and transmission of radio programs | 94.69 | % | ||||
Media Global, SGPS, S.A. (MEGLO) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Holdings | 94.69 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Multimedia, S.A. (CLMC) | Rua de Santo Amaro à Estrela. No 17 A. 1249-028. Lisbon. Portugal | Distribution of film activities, video, radio, television, audiovisual and multimedia production and commercial exploitation thereof | 85.22 | % | ||||
NBP Brasil, S.A. | Rua Padre Adelino. No 758, 3o andar, Quarta Parada. CEP 03303-904. Brazil | Inactive | 94.69 | % | ||||
Plural Entertainment Canarias, S.L. | Dársena Pesquera. Edificio Plató del Atlántico. San Andrés 38180. Santa Cruz de Tenerife | Production and distribution of audiovisual content | 94.69 | % | ||||
Plural Entertainment España, S.L. | Gran Vía, 32. Madrid | Production and distribution of audiovisual content | 94.69 | % | ||||
Plural Entertainment Inc. | 1680 Michigan Avenue, Suite 730, Miami Beach, FL 33139 U.S. | Production and distribution of audiovisual content | 94.69 | % | ||||
Plural Entertainment Portugal, S.A. | R. José Falcao. 57 - 3o Dt. 1000-184. Lisbon. Portugal | Production of video and film, organization of shows, rental of sound and lighting, advertising, sales and representation of registered videos | 94.69 | % | ||||
Produçao de Eventos, Lda (MEDIA CAPITAL ENTERTAINMENT) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Publication, graphic art and reproduction of recorded media: magazines, audio publication, video reproduction; and provision of services related to music, radio, television, film, theater and literary magazines | 94.69 | % | ||||
Producciones Audiovisuales, S.A. (NBP IBÉRICA) | Almagro 13. 1o Izquierda. 28010. Madrid | Inactive | 94.69 | % | ||||
Productora Canaria de Programas, S.A. | Enrique Wolfson, 17. Santa Cruz de Tenerife | Development of a promotional television channel for the Canary Islands | 37.88 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Produçoes Audiovisuais, S.A. (RADIO CIDADE) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting, production of audio or video advertising spots. Advertising, production and recording of discs. Development and production of radio programs | 94.69 | % | ||||
Projectos de Media e Publicidade Unipessoal, Lda. (PUPLIPARTNER) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Design, preparation and performance of advertising projects (advisory services, promotion, supply, marketing and the distribution of media goods and services) | 94.69 | % | ||||
Promoçao de Projectos de Media, S.A. (UNIDIVISA) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Design, preparation and performance of advertising projects (advisory, promotion, supply, marketing and distribution of media goods and services) | 94.69 | % | ||||
Radio Comercial, S.A. (COMERCIAL) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting in the areas of program production and transmission | 94.69 | % | ||||
RADIO XXI, Lda. (XXI) | Rua Sampaio e Pina. 24/26. 1099-044. Lisbon. Portugal | Radio broadcasting in the areas of program production and transmission | 94.69 | % | ||||
Rede Teledifusora Independente, S.A. (RETI) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Installation, management and operation of the telecommunication network or networks including transport, signal transmission for television, radio, computer data, etc. | 94.69 | % | ||||
Serviços de Consultoria e Gestao, S.A. (MEDIA CAPITAL SERVIÇOS) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Advisory services, guidance services and operational assistance to public relations companies and organizations | 94.69 | % | ||||
Serviços de Internet, S.A. (IOL NEGÓCIOS) | Rua Tenente Valadim. No 181. 4100-479. Porto. Portugal | Services, publication and sale of electronic goods and services. Media publication, production and distribution activities | 94.69 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Sociedad Canaria de Televisión Regional, S.A. | Avenida de Madrid s/n. Santa Cruz de Tenerife | Audiovisual productions for television | 37.88 | % | ||||
Sociedade de Produçao e Ediçao Audiovisual, Lda (FAROL MÚSICA) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Production of multimedia, audiovisual and phonogram storage media | 94.69 | % | ||||
Televisao Independente, S.A. (TVI) | Rua Mário Castelhano. No 40. 2734-502. Barcarena. Portugal | Performance of any television-related activity such as the installation, management and operation of any television channel or infrastructure | 94.69 | % | ||||
Tesela Producciones Cinematográficas, S.L. | Gran Vía, 32. Madrid | Production and distribution of audiovisual content | 94.69 | % | ||||
Vertix, SGPS, S. A. | Rua de las Amoreiras, 107. Lisbon. Portugal | Holdings | 100.00 | % | ||||
Equity method | ||||||||
Empresa Europeia de Produçao de Documentários, Lda (NANNOK) | Avenida Elias García 57 - 7o. 1000-148. Lisbon. Portugal | Advertising, production, sale and distribution of storage media and other multimedia content | 24.62 | % | ||||
Uniao de Leiria, SAD. (UNIAO DE LEIRIA) | Estádio Dr. Magalhaes Pessoa. 2400-000. Leiria. Portugal | Soccer team management | 19.09 | % | ||||
Proportionate consolidation | ||||||||
Plural—Jempsa, S.L. | Gran Vía, 32. Madrid | Production and distribution of audiovisual content | 47.35 | % | ||||
DIGITAL(5) | ||||||||
Full consolidation | ||||||||
Infotecnia 11824, S.L. | Ronda de Poniente 7. Tres Cantos. Madrid | Provision of telecommunication services | 60.00 | % | ||||
Prisacom, S.L. | Gran Vía, 32. Madrid | Provision of internet services | 100.00 | % | ||||
PRINTING |
Company | Registered Office | Line of Business | Effective Percent | |||||
Full consolidation | ||||||||
Prisaprint, S.L. | Gran Vía, 32. Madrid | Management of printing companies | 100.00 | % | ||||
Equity method | ||||||||
Altamira, S.A. | Carretera de Pinto a Fuenlabrada, Km. 20,8. Madrid | Printing of publishing products | 40.00 | % | ||||
Bidasoa Press, S.L. | Calle Malilla No 134. 46026 Valencia | Printing of publishing products | 40.00 | % | ||||
Dédalo Grupo Gráfico, S.L. | Carretera de Pinto a Fuenlabrada, Km. 20,8. Madrid | Printing of publishing products | 40.00 | % | ||||
Dédalo Heliocolor, S.A. | Ctra. Nacional II. Km. 48, 500 Polígono Industrial No I. 19171. Cabanillas del Campo. Guadalajara | Printing of publishing products | 40.00 | % | ||||
Dédalo Offset, S.L. | Carretera de Pinto a Fuenlabrada, Km. 20,8. Madrid | Printing of publishing products | 40.00 | % | ||||
Distribuciones Aliadas, S.A. | Polígono Industrial La Isla. Parcela 53. 41700 Dos Hermanas. Seville | Printing of publishing products | 40.00 | % | ||||
Gráficas Integradas, S.A. | Calle Camino de los Afligidos S/N. Alcalá de Henares. Madrid | Printing of publishing products | 40.00 | % | ||||
Norprensa, S.A. | Parque Empresarial IN-F. Calle Costureiras. s/n 27003. Lugo | Printing of publishing products | 40.00 | % | ||||
MEDIA ADVERTISING SALES | ||||||||
Full consolidation | ||||||||
Gerencia de Medios, S.A. | Gran Vía, 32. Madrid | Contracting of advertising exclusives | 100.00 | % | ||||
Prisa Innova, S.L. | Gran Vía, 32. Madrid | Management of promotional products and services | 100.00 | % | ||||
Solomedios, S.A. | Gran Vía, 32. Madrid | Advertising management | 100.00 | % | ||||
DISTRIBUTION | ||||||||
Full consolidation | ||||||||
Aldipren, S.L. | Polígono Campollano. Calle de Distribución. Número 34-38. 02006 Albacete | Storage and distribution of publishing products | 32.50 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Cronodís Logística Integral, S.L. | Calle El Rayo. Parcela 2,4,2. Polígono Industrial La Quinta /R2. 19171. Cabanillas del Campo. Guadalajara | Storage and distribution of publishing products | 47.50 | % | ||||
Districuen, S.L. | Polígono La Cerrajera. Parcela 36. Cuenca | Storage and distribution of publishing products | 32.50 | % | ||||
Distritoledo, S.L. | Polígono Industrial de Toledo II Fase. Calle Arrollo Gadea, 9. | Distribution and sale of publishing products | 39.75 | % | ||||
45007. Toledo | ||||||||
Gelesa Gestión Logística, S.L. | Almanaque No 5. Polígono Fin de Semana. 28022. Madrid. | Distribution of publications | 50.00 | % | ||||
Grupo Cronos Distribución Integral, S.L. | Almanaque No 5. Polígono Fin de Semana. 28022. Madrid. | Distribution and sale of publishing products | 50.00 | % | ||||
Redprensa, S.L.U. | Gran Vía, 32. Madrid | Holdings | 100.00 | % | ||||
Equity method | ||||||||
Beralán, S.L. | Igarategi Industrialdea. No 58. 20130. Urnieta. Guipúzcoa | Distribution of publishing products | 22.25 | % | ||||
Cirpress, S.L. | Polígono Tazaba II. Parcela 31. Logrezana - Carreño. 33438. Asturias | Distribution of publishing products | 24.70 | % | ||||
Dima Distribución Integral, S.L. | Calle Confianza, 1. Polígono Industrial Los Olivos. 28065. Getafe. Madrid | Distribution of publishing products | 33.66 | % | ||||
Diserpe, S.R.L.U. | Calle Dels Argenters 4. P.I. Vara de Quart. 46014. Valencia | Distribution of publishing products | 23.75 | % | ||||
Distribuciones Papiro, S.L. | C/Pasteur 15. Polígono Industrial El Montalbo. 37008 Salamanca | Distribution of publishing products | 25.14 | % | ||||
Distribuciones Ricardo Rodríguez, S.L. | Polígono Asegra. Calle Córdoba. 18-20. 18210. Peligros. Granada | Distribution of publishing products | 20.30 | % | ||||
Distribuidora Almeriense de Publicaciones, S.L. | Sierra Cabrera, 1. Polígono Industrial La Juaida. Viator. Almeria | Distribution of publishing products | 20.30 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
Distribuidora Cordobesa de Medios Editoriales, S.L. | Calle Prolongación Ingeniero Torres Quevedo s/n. Polígono Industrial de la Torrecilla. 14013. Cordoba | Distribution of publishing products | 20.30 | % | ||||
Distribuidora de Publicaciones Boreal, S.L. | Rua Alcalde Ramón Añón. Parcela 79-81. 15199. Culleredo. A Coruña | Distribution of publishing products | 29.00 | % | ||||
Distribuidora Extremeña de Publicaciones, S.L | Polígono Industrial Prado. Calle Valencia 14. 06800 Mérida. Badajoz | Distribution of publishing products | 20.30 | % | ||||
Distribuidora Jienense de Publicaciones, S.L. | Polígono Industrial Los Olivares. Calle 5. Parcela 526. Jaen | Distribution of publishing products | 29.00 | % | ||||
Distrigalicia, S.L. | Carretera de Catabais Km. 3,300 de Ferrol. A Coruña | Storage and distribution of publishing products | 29.00 | % | ||||
Distrimedios, S.L. | Agricultura. Parcela D-10 (P. Empresarial). Jeréz. Cadiz | Distribution of publishing products | 29.00 | % | ||||
Marina BCN Distribucions, S.L. (fomerly Marina Press Distribuciones, S.L.) | Calle E. No 1. Esquina Calle 6 (Sector E). 08040. Barcelona | Distribution of publishing products | 30.00 | % | ||||
Prensa Serviodiel, S.L. | Polígono Tartessos 309, Calle A. 21610. San Juan del Puerto. Huelva | Distribution of publishing products | 20.30 | % | ||||
Souto, S.L. | Polígono Industrial Oceao, Calle Da Industria, 107. 27003. Lugo | Distribution of publications | 29.00 | % | ||||
Suscripciones de Medios Editoriales, S.L. | Calle de la Agricultura, Parque Empresarial Parcela D10. 11407. Jeréz de la Frontera. Cadiz | Distribution of publishing products | 29.00 | % | ||||
Trecedis, S.L. | Calle Avenida de Bruselas, 5. Arrollo de la Vega. 28108. | Distribution of publications | 19.03 | % | ||||
Alcobendas. Madrid | ||||||||
Val Disme, S.L. | Calle Dels Argenters 4. P.I. Vara de Quart. 46014. Valencia | Distribution of publishing products | 23.75 | % |
Company | Registered Office | Line of Business | Effective Percent | |||||
OTHER | ||||||||
Full consolidation | ||||||||
GLP Colombia, Ltda | Carrera 9, 9907 Oficina 1200. Bogotá. Colombia | Operation and sale of all manner of advertising | 100.00 | % | ||||
Oficina del Autor, S.L. | Gran Vía, 32. Madrid | Management of publishing rights and author representation | 100.00 | % | ||||
Prisa División Inmobiliaria, S.L. | Gran Vía, 32. Madrid | Lease of commercial and industrial premises | 100.00 | % | ||||
Prisa División Internacional, S.L. | Gran Vía, 32. Madrid | Holdings in foreign companies | 100.00 | % | ||||
Prisa Finance (Netherlands) BV. | Gran Vía, 32. Madrid | Holdings in and financing of companies | 100.00 | % | ||||
Prisa Inc. | 5300 First Union Financial Centre, Miami, FL 33131 U.S. | Management of companies in the U.S. and North America | 100.00 | % | ||||
Promotora de Actividades América 2010, S.L | Gran Vía, 32. Madrid | Production and organisation of activities and projects marking the bicentenary of American Independence | 100.00 | % | ||||
Promotora de Actividades América 2010 Colombia, Ltda. | Carrera 9. No 74-08. Oficina 504. Bogotá. Colombia | Development, co-ordination and management of all manner of projects, international and national projects marking the bicentenary of American Independence | 100.00 | % | ||||
Promotora de Actividades América 2010—México, S.A. de C.V. | Avenida Paseo de la Reforma 300. Piso 9. Col. Juárez. 06600. Mexico City, Mexico | Development, co-ordination and management of all manner of international and national projects marking the bicentenary of American Independence | 100.00 | % | ||||
Promotora de Actividades Audiovisuales de Colombia, Ltda. | Calle 80, 10 23. Bogotá. Colombia | Production and distribution of audiovisual content | 100.00 | % |
(1) | Prisa operates under the following brands within theEducationbusiness unit: | |
Education:Santillana, Moderna, UNO Sistema de Ensino, Avalía, Richmond Publishing, Santillana Français, Español Santillana. | ||
General Publishing:Alfaguara, Taurus, Aguilar, Aguilar Fontanar, El País Aguilar, Suma de Letras, Salamandra, Altea, Objetiva, Punto de Lectura, Manderley, Alamah. |
Training:Santillana Formación, IUP (Instituto Universitario de Posgrado). | ||
(2) | Prisa operates under the following brands within thePressbusiness unit: | |
General Press:El País. | ||
Sport Press:AS. | ||
Financial Press:Cinco Días. | ||
Magazines: | ||
Spain: Kiosks —Cinemanía, Gentleman, Revista 40, Claves, Car, Foreign Policy, Rolling Stone | ||
Corporate Magazines:Digital+, La Caja (Caja Madrid), Europa (Air Europa) Gente Carrefour- Su Periódico (Carrefour), Fundación VT, Club Gourmet, Cercha, AMA, En Punto (Renfe), Azul Marino (Acciona), Platinum, Caudal (Caja Duero), AC World (AC Hoteles), Viajeros Barceló (Barceló Travel Agency), Dialogo (Día supermarket), Global (Renault), En Compañía (Bilbao Insurance), H2O (Canal de Isabel II). | ||
Other products — to highlightEl País Yearbook, Wine Yearbook, El País Shopping Ortega Prizes. | ||
Portugal:Lux, Lux Woman, Maxmen, Vinhos de Portugal. | ||
Prisa also owns a minority stake inLe Monde. | ||
(3) | Prisa operates under the following brands within theRadiobusiness unit: | |
General interest networks: Spain:Cadena SER, Ona;Chile:ADN;Colombia:Radio Caracol, W Radio;México:W Radio, Estadio Radio;Argentina:Radio Continental;USA:Radio Caracol, W Radio. | ||
Music networks:40 Principales (global brand);Spain:Cadena Dial, M-80, Radiolé, Máxima FM; | ||
Chile:Corazón, Radioactiva, Radio Corazón, FMDos, Radio UNO, Rock&Pop, Pudahuel, Futuro, Radio Imagina, Concierto;Colombia:Tropicana, Oxígeno, Bésame, Radioacktiva, Vibra Bogotá, Radio Reloj, Radio Recuerdos, Candela Stereo;México:Bésame, Ke buena; Costa Rica:Bésame, Nueva 90.7. | ||
Music:Planet Events, Nova, RLM, On Stage. | ||
(4) | Prisa operates under the following brands within theAudiovisualbusiness unit: |
Pay TV: Digital+, Canal+, Canal+ Dos |
Free to air TV: TVI (Portugal), TVI24 (Portugal), Cuatro (Spain), CNN+ (Spain) |
Audiovisual Production: Plural Entertainment. | ||
Media Capital also operates the following radio brands:Radio Comercial, Radio Clube Portugués, Cidade FM, Best Rock FM, M80 and Romántica FM;film and video/DVD distribution brand:CastelloLopes Multimedia; music recording brand:Farol Músicaand internet portal brand:IOL. | ||
Prisa also owns a minority stake inV-me. | ||
(5) | Prisa operates the following web portals in theDigitalarea:Kalipedia, Clasificados, El Viajero, Lalistawip, Parasaber, Infometeo, Japy. |
• | Prisaachieved revenues of €2,064 million, reached an EBITDA of €420 million, EBIT of €285 million and net profit was €97 million. |
L-1
• | In the first eight months of 2010, 25% of the revenues came fromthe international area. By countries, it is worth highlighting the contribution of Brazil and Portugal (45% of the total). The whole international area in the group maintained an important growth rate increasing its revenues by 7.0%. | |
• | The Audiovisual arearevenues reached €1,083 million and obtained an EBITDA of €191 million (which included €44 million loss of the World Cup exploitation), with a margin of 17.6%. Digital+ obtained an EBITDA of €189 million and continued improving its cancellation rates. The month of August is the fifth consecutive month which shows a decline in cancellations in relation to the same period last year. During this period of 2010, several agreements have been signed with Jazztel, Telecable and Orange for the distribution of content and negotiations to close additional deals with other operators are in process. | |
• | Total subscriber base of Digital+as of August 31, 2010 was 1,760,320, compared to 1,886,694 subscribers as of August 31, 2009. The subscriber base decreased by 85 thousand subscribers in the first eight months of 2010 compared with a decrease of 148 thousand subscribers in the first eight months of 2009. The average revenue per user (ARPU) remained at €41.7 per subscriber and month and remained stable with respect to the last year. Canal+League reached 800,000 subscribers. | |
• | Cuatrocontinued with a positive performance during the first eight months of 2010, to finish August with an average audience of 7.2% in 24 hours and 7.5% in prime time. It also strengthened its position in the more interesting profiles to advertisers, to reach 9.4% and 10.2% of audience in the commercial and core target, respectively. Cuatro reached a negative EBITDA of 21 million of euros as of August 31, 2010, mainly as a consequence of the exploitation of the football World Cup.TVI,the free TV of Media Capital, maintained its leadership in Portugal, both in 24 hours and prime time audience. During the first eight months of 2010, TVI had an average audience of 33.9% and 39.2% in prime time. | |
• | The Education businesscontinued showing strong results. Santillana improved its revenues by 2.7% to €450 million and its EBITDA reached €149 million (€94 million from Latam and USA and €55 million from Spain and Portugal). It is worth highlighting, the growth achieved in Brazil (+37%), Peru (+22%), Mexico (+17%), Colombia (+14%), Chile (+8%) and Argentina (+3%). As of August 31, 2010, 33% of the Education business revenues came from Spain and Portugal, 21% from Brazil, 15% from Mexico, 6% from Argentina, 5% from Chile, 4% from Peru, 3% from Colombia and the remaining revenues were generated in other Latam countries. | |
• | The Radiobusiness increased its revenues by 7.6% to reach €253 million, with an increase of 16.3% of its EBITDA and showed a significant margin improvement (23.3% versus 21.5%). The international radio increased its revenues by 33.5% and its advertising revenues improved by 36.9%. | |
• | Pressreached revenues of €263 million and increased its EBITDA by 4.3% with a significant margin improvement (10.1% versus 9.4%).El Pais,reached €178 million of revenues, obtained an EBITDA of €18 million with a margin of 10% and its net profit was €8 million. El País is one of the few reference newspapers worldwide which continues to bring profits, renewed its leadership position among the general paid press and increased the distance with its main competitor, with an average daily circulation of 375,043 copies in the first eight months of 2010 (-4.3% year over year).AS,obtained €57 million of revenues (+22.6%), an EBITDA of €9 million (+55.8%), and increased it advertising revenues by 73.3%. AS average daily circulation in the first eight months of 2010 amounted to 219,582 copies (+0.1% year over year). | |
• | In the Digital area, advertising revenues increased by 38.1%. The group reached €45.95 million monthly unique users on average (+24.4%). It is worth highlighting the growth ofAs.com (+41.2%),El Pais.com (+10.5%) in which approximately 30% of its unique users are international,Los40.com (+21.6%),Cuatro.com(16.6%) and Media Capital (+14.8%). | |
• | The advertisingof the Group increased by 9.1% to reach €608 million (Audiovisual; €289 million; Radio: €218 million; Press: €108 million). It is worth mentioning the growth in the Audiovisual business (+14.9%), in the Radio (+9.7%) and in Press (+3.1%). |
L-2
• | Net debtreached €4,735 million as of August 31, 2010 (€4,986 million as of August 31, 2009) andinterest on debtdecreased by 34.8%. |
JANUARY - AUGUST | ||||||||||||
€ Million | 2010 | 2009 | Chg.% | |||||||||
Operating Revenues | 2,063.56 | 2,181.83 | (5.4 | ) | ||||||||
EBITDA | 420.22 | 455.17 | (7.7 | ) | ||||||||
EBIT | 285.48 | 294.05 | (2.9 | ) | ||||||||
Net profit | 97.12 | 63.07 | 54.0 | |||||||||
EBITDA Margin | 20.4 | % | 20.9 | % | ||||||||
EBIT Margin | 13.8 | % | 13.5 | % | ||||||||
JANUARY - AUGUST | ||||||||||||
€ Million | 2010 | 2009 | Chg.% | |||||||||
Advertising | 607.58 | 556.71 | 9.1 | |||||||||
Books and training | 440.95 | 427.78 | 3.1 | |||||||||
Newspapers and magazine sales | 122.36 | 130.01 | (5.9 | ) | ||||||||
Subscriber revenues | 613.62 | 681.38 | (9.9 | ) | ||||||||
Other revenues | 279.06 | 385.95 | (27.7 | ) | ||||||||
Total operating revenues | 2,063.56 | 2,181.83 | (5.4 | ) | ||||||||
Audiovisual | Education | |||||||||||||||
Eight Months Ended August 31, | Eight Months Ended August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||
Adjusted EBITDA | 190,987 | 236,662 | 148,819 | 151,856 | ||||||||||||
Asset depreciation expense | (66,549 | ) | (81,503 | ) | (29,315 | ) | (27,242 | ) | ||||||||
Changes in operating allowances | (7,243 | ) | (11,106 | ) | (5,298 | ) | (13,975 | ) | ||||||||
Impairment of assets | (216 | ) | (216 | ) | (2,215 | ) | (3,136 | ) | ||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | ||||||||||||
Profit from operations | 116,980 | 143,838 | 111,992 | 107,502 |
Radio | Press | |||||||||||||||
Eight Months Ended August 31, | Eight Months Ended August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||
Adjusted EBITDA | 58,829 | 50,577 | 26,589 | 25,501 | ||||||||||||
Asset depreciation expense | (9,459 | ) | (9,167 | ) | (6,213 | ) | (7,549 | ) | ||||||||
Changes in operating allowances | (1,805 | ) | (1,443 | ) | (853 | ) | (403 | ) | ||||||||
Impairment of assets | 0 | (5 | ) | 0 | 0 | |||||||||||
Goodwill deterioration | 0 | 0 | (1,351 | ) | 0 | |||||||||||
Profit from operations | 47,565 | 39,963 | 18,171 | 17,549 |
L-3
Other | Total Prisa | |||||||||||||||
Eight Months Ended August 31, | Eight Months Ended August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||
Adjusted EBITDA | (5,005 | ) | (9,424 | ) | 420,219 | 455,172 | ||||||||||
Asset depreciation expense | (2,940 | ) | (3,988 | ) | (114,476 | ) | (129,449 | ) | ||||||||
Changes in operating allowances | (1,460 | ) | (1,389 | ) | (16,659 | ) | (28,316 | ) | ||||||||
Impairment of assets | 0 | (1 | ) | (2,431 | ) | (3,358 | ) | |||||||||
Goodwill deterioration | 174 | 0 | (1,177 | ) | 0 | |||||||||||
Profit from operations | (9,232 | ) | (14,803 | ) | 285,476 | 294,049 |
Sogecable | Media Capital | |||||||||||||||
Eight Months Ended August 31, | Eight Months Ended August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||
Adjusted EBITDA | 167,887 | 207,735 | 23,091 | 28,859 | ||||||||||||
Asset depreciation expense | (58,534 | ) | (73,266 | ) | (8,015 | ) | (8,237 | ) | ||||||||
Changes in operating allowances | (6,967 | ) | (10,687 | ) | (276 | ) | (419 | ) | ||||||||
Impairment of assets | (216 | ) | (216 | ) | 0 | 0 | ||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | ||||||||||||
Profit from operations | 102,170 | 123,566 | 14,801 | 20,204 |
Audiovisual Other | ||||||||
Eight Months Ended August 31, | ||||||||
2010 | 2009 | |||||||
(Thousands of euros) | ||||||||
Adjusted EBITDA | 9 | 68 | ||||||
Asset depreciation expense | 0 | 0 | ||||||
Changes in operating allowances | 0 | 0 | ||||||
Impairment of assets | 0 | 0 | ||||||
Goodwill deterioration | 0 | 0 | ||||||
Profit from operations | 9 | 68 |
International Radio | ||||||||||||||||
Radio in Spain | Eight Months Ended | |||||||||||||||
Eight Months Ended August 31, | August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||
Adjusted EBITDA | 40,451 | 42,936 | 15,992 | 5,270 | ||||||||||||
Asset depreciation expense | (5,214 | ) | (5,471 | ) | (3,218 | ) | (3,221 | ) | ||||||||
Changes in operating allowances | (969 | ) | (1,000 | ) | (840 | ) | (575 | ) | ||||||||
Impairment of assets | 0 | 0 | 0 | (5 | ) | |||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | ||||||||||||
Profit from operations | 34,268 | 36,465 | 11,934 | 1,469 |
L-4
Radio Other | ||||||||
Eight Months Ended August 31, | ||||||||
2010 | 2009 | |||||||
(Thousands of euros) | ||||||||
Adjusted EBITDA | 2,386 | 2,371 | ||||||
Asset depreciation expense | (1,027 | ) | (475 | ) | ||||
Changes in operating allowances | 4 | 132 | ||||||
Impairment of assets | 0 | 0 | ||||||
Goodwill deterioration | 0 | 0 | ||||||
Profit from operations | 1,363 | 2,029 |
El País | AS | |||||||||||||||
Eight Months Ended August 31, | Eight Months Ended August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||
Adjusted EBITDA | 17,643 | 20,108 | 9,395 | 6,031 | ||||||||||||
Asset depreciation expense | (5,627 | ) | (6,404 | ) | (256 | ) | (193 | ) | ||||||||
Changes in operating allowances | (345 | ) | (178 | ) | (406 | ) | (67 | ) | ||||||||
Impairment of assets | 0 | 0 | 0 | 0 | ||||||||||||
Goodwill deterioration | 0 | 0 | 0 | 0 | ||||||||||||
Profit from operations | 11,670 | 13,526 | 8,734 | 5,771 |
Cinco Días | Press Other | |||||||||||||||
Eight Months Ended August 31, | Eight Months Ended August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Thousands of euros) | (Thousands of euros) | |||||||||||||||
Adjusted EBITDA | (465 | ) | (965 | ) | 16 | 327 | ||||||||||
Asset depreciation expense | (148 | ) | (82 | ) | (182 | ) | (870 | ) | ||||||||
Changes in operating allowances | (16 | ) | (22 | ) | (86 | ) | (136 | ) | ||||||||
Impairment of assets | 0 | 0 | 0 | 0 | ||||||||||||
Goodwill deterioration | 0 | 0 | (1,351 | ) | 0 | |||||||||||
Profit from operations | (628 | ) | (1,069 | ) | (1,605 | ) | (679 | ) |
L-5
M-1
M-2
M-3
M-4
M-5
M-6
M-7
M-8
N-1
N-2
N-3
I. | Whether the Proposed Transaction is a Business Combination within the meaning of Article FIFTH of the Certificate of Incorporation notwithstanding that the Company is not the surviving or resulting entity of the Proposed Transaction. |
N-4
II. | Whether the Co-Investment may be waived by the parties to the Co-Investment Agreements without an amendment to the Certificate of Incorporation. |
N-5
III. | Whether conditioning the Proposed Transaction on the receipt of the approval and consent of the Amendment by the Company’s Warrantholders conflicts with Article FIFTH, Paragraph A. of the Certificate of Incorporation or requires an amendment to the Certificate of Incorporation. |
N-6
N-7
OF
LIBERTY ACQUISITION HOLDINGS CORP.
O-1
O-2
O-3
OF LIBERTY ACQUISITION HOLDINGS CORP.
FOR THE SPECIAL MEETING OF STOCKHOLDERS ON [ ], 2010
1. | Reincorporation Proposal — a proposal to change Liberty’s state of incorporation from Delaware to Virginia by means of a merger, referred to as the reincorporation merger, of Liberty into Liberty Acquisition Holdings Virginia, Inc., or Liberty Virginia, a Virginia corporation and wholly owned subsidiary of Liberty, whose articles of incorporation and bylaws will become the articles of incorporation and bylaws of the surviving corporation upon completion of the reincorporation merger. The reincorporation merger would be the first step of the business combination contemplated by the Business Combination Proposal, below. | FOR o | AGAINST o | ABSTAIN o | ||||
2. | Business Combination Proposal — a proposal to approve a business combination by the approval and adoption of the amended and restated business combination agreement, dated as of August 4, 2010, and as amended by Amendment No. 1, dated August 13, 2010, by and among Liberty, Liberty Virginia and Promotora de Informaciones, S.A., or Prisa, pursuant to which Liberty would reincorporate as a Virginia corporation, upon the consummation of the reincorporation merger described above, and immediately thereafter each outstanding share of Liberty Virginia common stock would be exchanged for either, at the option of the stockholder, $10.00 in cash or the following consideration: (a) 1.5 newly created Prisa Class A ordinary shares, (b) 3.0 newly created Prisa Class B convertible non-voting shares and (c) $0.50 in cash, as well as cash in lieu of cash of any fractional shares. | FOR o | AGAINST o | ABSTAIN o | ||||
If you voted “AGAINST” the Business Combination Proposal, above, and you hold shares of Liberty common stock issued as part of the units issued in Liberty’s initial public offering, you may exercise your redemption rights and demand that Liberty redeem your shares of common stock for a pro rata portion of the trust account by marking the “Exercise Redemption Rights” box to the right. If you exercise your redemption rights, then Liberty will redeem your shares of Liberty common stock for cash and you will no longer own these shares. You will only be entitled to receive cash for these shares if you affirmatively vote against the Business Combination Proposal, continue to hold your shares through the effective time of the business combination and then tender your shares to Liberty’s transfer agent prior to the vote on the business combination at the special meeting. Failure to (a) vote against the Business Combination Proposal, (b) check the “Exercise Redemption Rights” box to the right, (c) tender your shares to Liberty’s transfer agent and (d) submit this proxy in a timely manner, will result in the loss of your redemption rights. | EXERCISE REDEMPTION RIGHTS o | |||||||
3. | The Liquidation Proposal — a proposal to dissolve Liberty in accordance with Delaware law and approve the proposed plan of distribution submitted to the stockholders at the special meeting, which proposal may be abandoned by Liberty’s Board of Directors, notwithstanding approval of such proposal by Liberty’s stockholders. | FOR o | AGAINST o | ABSTAIN o | ||||
4. | Adjournment Proposal — a proposal to authorize the adjournment of the special meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies in the event there are insufficient votes at the time of the special meeting of stockholders to adopt the business combination proposal. | FOR o | AGAINST o | ABSTAIN o |
and return it in the
enclosed postage-paid envelope.
please use this admission ticket.
[ ], 2010, [ ] (EASTERN TIME)
200 Park Avenue
New York, NY
1-212-801-9200
envelope even if you plan to attend the Special Meeting.
OF LIBERTY ACQUISITION HOLDINGS CORP.
FOR THE SPECIAL MEETING OF WARRANTHOLDERS ON [ ], 2010
1. | Warrant Amendment Proposal — a proposal to amend certain terms of the warrant agreement governing the warrants of Liberty in connection with the consummation of the transactions contemplated by the amended and restated business combination agreement, dated as of August 4, 2010, and as amended by Amendment No. 1, dated August 13, 2010, by and among Liberty, Liberty Acquisition Holdings Virginia, Inc., or Liberty Virginia, and Promotora de Informaciones, S.A., or Prisa, which would cause each of Liberty’s then outstanding warrants to be automatically converted into a warrant to purchase Liberty Virginia common stock and then exchanged in connection with the consummation of the business combination for (i) cash in the amount of $0.90 and (ii) 0.45 newly created Prisa Class A ordinary shares and cash in lieu of any fractional shares. | FOR o | AGAINST o | ABSTAIN o |
and return it in the
enclosed postage-paid envelope.
please use this admission ticket.
[ ], 2010, [ ] (EASTERN TIME)
200 Park Avenue
New York, NY
1-212-801-9200
envelope even if you plan to attend the Special Meeting.