Professional Documents
Culture Documents
31/12/01
31/12/00
Uncalled capital
B) FIXED ASSETS
I - INTANGIBLES
1) Establishment and enlargement costs
2) Research and development, advertising costs
705
2.660
19.555
13.935
3) Patent rights
3.274
4.148
82.402
87.959
5) Goodwill
18.352
20.564
1.100
1.242
225
1.540
6.387
8.618
132.000
140.666
24.974
25.707
11.651
10.039
10.677
9.307
4) Other property
4.841
3.541
2.433
2.516
54.576
51.110
TOTAL...........................................................................................................................
II - PLANT AND EQUIPMENT
TOTAL ..........................................................................................................................
III - FIXED FINANCIAL ASSETS
1) Shareholdings in:
a) controlled companies
b) related companies
83
c) parent companies
d) other companies
610
605
15.000
2) Amounts receivable:
d) other
3) other securities
4) company's own shares
TOTAL ..........................................................................................................................
TOTAL FIXED ASSETS
15.611
689
202.187
31/12/01
192.465
31/12/00
C) WORKING CAPITAL
I - STOCK ON HAND
1) raw materials, ancillary materials and consumable commodities
21.621
18.079
15.377
20.569
60.638
50.367
5) prepayments
97.636
89.015
98.027
80.488
5) other
a ) affiliated companies
b) other
9.370
2.355
TOTAL ..........................................................................................................................
II - AMOUNTS RECEIVABLE:
1) trade debtors
payable within the next year
receivable later than the next year
9.964
107.397
92.807
4) other shareholdings
32
29
TOTAL ..........................................................................................................................
III - FINANCIAL ASSETS OTHER THAN FIXED ASSETS :
32
29
23.652
13.691
IV - CASH
1) bank and post deposits
2) cheques
3) till money and cash at hand
TOTAL ..........................................................................................................................
TOTAL WORKING CAPITAL
15
36
23.673
13.735
228.738
195.586
410
255
366
1.079
1.156
1.744
1.522
432.669
389.573
31/12/01
31/12/00
A) SHAREHOLDERS' EQUITY:
GROUP:
I - Capital stock
82.420
81.741
21.316
23.566
24.238
24.238
188
83
IV - Legal reserve
V - Reserve for group's own shares
VI - Statutory reserve
VI - Other reserves
- Consolidation reserve
146
146
3.296
2.456
- Appropriated surplus
2.820
1.008
- Accumulated profits
9.620
0
(681)
10.553
10.483
154.597
143.039
154.597
143.039
2)
for taxes
3)
4)
other
1.031
35
12.453
13.383
13.484
13.419
5.719
4.775
31/12/01
31/12/00
91.000
100.000
2) convertible debentures
3) bank loans
38.870
11.129
2.270
86
19.485
170
2.957
929
86.749
83.704
7) paper titles
3.732
12.838
2.347
1.998
6) trade creditors
13) other
- other within next year
6.722
11.508
254.132
222.363
4.336
1.297
401
4.681
4.737
5.978
432.669
389.573
224
224
116.536
138.233
2.834
Consolidato Consolidato
31/12/01
31/12/00
A) VALUE OF PRODUCTION
1)
2)
3)
4)
5)
sundries
current-year contributions
407.815
379.534
5.096
13.953
5.439
4.669
14.648
12.814
14.648
12.814
432.998
410.970
B) MANUFACTURING COSTS
6)
189.913
190.646
7)
services..................................................................................
118.565
102.382
8)
leasing...............................................................
3.354
2.837
9)
personnel:
a) wagesand salaries
35.418
33.584
b) social contributions
9.389
8.721
c) retirement allowances
1.954
1.758
1.353
1.957
48.114
46.020
22.862
20.254
9.998
7.446
1.720
1.894
1.077
528
35.657
30.122
(1.963)
8.642
9.879
(3.543)
0
748
648
401.450
380.570
31.548
31/12/01
30.400
31/12/00
114
d) other revenues
- interest earned
156
669
195
481
3.282
12.095
5.278
13.359
8.911
776
447
6.146
2.569
7.092
10.416
11.418
14.908
25.432
28.340
(12.073)
(19.429)
a) of shareholdings
19) depreciation
TOTAL ADJUSTMENTS
E) ABNORMAL REVENUE AND EXPENSES
20) revenue
- surplus from assignments other than no. 5
151
6.851
151
6.851
46
26
106
150
178
150
- non-operating profits
Total revenues (20)....................................................................
21) expenses
- non-operating loss
Total expenses (21)....................................................................
31/12/01
TOTAL ABNORMAL ITEMS
RESULT BEFORE TAXES (A-B+-C+-D+-E)
31/12/00
(27)
6.701
19.448
17.672
3.197
3.847
5.698
3.341
10.553
10.484
10.553
10.484
DUCATI GROUP
DUCATI GROUP
3 1 d ic e m b r e
2000
3 0 .0 6 6
(4 .5 8 6 )
2 9 .2 7 7
(3 .5 7 0 )
2 5 .4 8 0
2 5 .7 0 7
2 1 .7 7 0
(1 0 .1 1 9 )
1 5 .6 7 1
(5 .6 3 2 )
1 1 .6 5 1
1 0 .0 3 9
2 7 .5 2 8
(1 6 .8 5 1 )
2 1 .1 3 5
(1 1 .8 2 8 )
1 0 .6 7 7
9 .3 0 7
7 .8 4 1
(3 .5 0 6 )
5 .7 8 2
(2 .2 4 1 )
4 .3 3 5
3 .5 4 1
T e r r e n i e fa b b r ic a ti
C o sto
F o n d o a m m o rta m e n to
V a lo r e n e tto
Im p ia n ti e m a c c h in a r i
C o sto
A m m o rta m e n to
V a lo r e n e tto
A ttr e z z a tu re in d u stria li e c o m m e r c ia li
C o sto
F o n d o a m m o rta m e n to
V a lo r e n e tto
A ltr i b e n i
C o sto
F o n d o a m m o rta m e n to
V a lo r e n e tto
Im m o b iliz z a z io n i in c o r so e a c c o n ti
T o ta le im m o b iliz z a z io n i m a te r ia li n e tte
2 .4 3 3
2 .5 1 6
5 4 .5 7 6
5 1 .1 1 0
The share capital of the foreign subsidiaries Ducati Japan K.K., Ducati North America Inc.
and Ducati UK Limited is converted into Euro using period-end exchange rates.
As of 31 December 2001 the area of consolidation shows the following changes versus 31
December 2000:
-
Gio.Ca Moto International S.r.l. has merged with Ducati Motor Holding S.p.A. on
31/12/01 with legal effect as of 01/01/2001;
Consolidation principles
The consolidation principles used in preparing the consolidated financial statements as of
31 December 2001, are consistent with those used for the financial statements as of 31
December 2000, as follows:
x The carrying value of consolidated companies held as equity investments by the Parent
Company and by companies included within the area of consolidation, is eliminated
against the related shareholders' equity, by consolidating the assets and liabilities of
these companies using the line-by-line method of consolidation Any difference
between the carrying value and share of shareholders' equity, as calculated with
reference to the situation at the date of acquisition, is treated as follows:
-
if positive, it is allocated to the individual asset and liability captions to which the
difference refers. Any remaining amount, provided it is considered to benefit future
2
DUCATI GROUP
Dollaro U.S.A.
Yen giapponese
Sterlina inglese
31/12/2001
fine periodo
medio
0,8813
115,33
0,6085
31/12/2000
fine periodo medio
0,8909
108,74
0,6192
0,9305
106,92
0,6241
0,9174
99,27
0,6075
DUCATI GROUP
A reconciliation of the shareholders' equity and results for the period of the Parent
Company and the corresponding amounts reported in the consolidated financial statements
is set out below (in thousands of Euro):
Net profit
(loss) for the
year ended
31 december
2001
Ducati
Motor Holding S.p.A.
Shareholders'
equity as of
31 december
2001
Net profit
(loss) for the
year ended
31 december
2000
Shareholders'
equity as of
31 december
2000
1.973
135.116
2.111
131.656
645
814
(343)
154
Elimination of
tax-driven items
14.929
43.247
14.716
28.318
Elimination of
unrealised intercompany
profits
(2.388)
(10.943)
(2.561)
(8.564)
Lower value of
consolidated investments
with respect to their
carrying value
(772)
(878)
(3.852)
399
Other
2.126
169
(2.349)
(1.956)
(5.960)
(12.928)
2.761
(6.968)
8.580
19.481
8.372
11.383
10.553
154.597
10.483
143.039
Adjustments to conform
with Group accounting
principles
The other changes mainly refer to the treatment foreign currency intercompany items in the
consolidated financial statements.
The increase in deferred taxes is due to adjustments made for tax purposes to the statutory
accounts of individual Group companies which are reversed in the consolidation, booking
the related deferred taxes.
4
DUCATI GROUP
ACCOUNTING POLICIES
The consolidated financial statements of Ducati Motor Holding S.p.A. and its subsidiaries
(the Ducati Group) for the period ended 31 December 2001, expressed in thousands of
Euros, have been prepared in accordance with the principles required by current statutory
regulations on annual consolidated financial statements, as interpreted and supplemented
by the accounting principles issued by the Italian Accounting Profession and, in the
absence thereof, by the International Accounting Standards Committee (I.A.S.C.).
The more significant accounting policies used in preparing the consolidated financial
statements are set out below. They are consistent with those used for the consolidated
financial statements as of 31 December 2000, which are also provided for comparison
purposes, except for the method of accounting for leases which will be explained below.
In the interest of greater comparability, certain prior year items of the balance sheet and
statement of operations have been reclassified to bring them into line with the way they
were shown as of 31 December 2001.
Intangible fixed assets
Intangible fixed assets are booked at purchase or conferral cost; those deriving from Italian
Group companies are also revalued, where applicable, on the basis of specific revaluation
laws. Intangible fixed assets are directly amortised on a straight-line basis over their
estimated economic useful life. Costs incurred in obtaining long-term finance ("debt
capacity") are amortised over the life of the related loan, according to the residual balance
method. Intangible fixed assets are fully written down if they no longer have any future
economic benefit.
Research and development costs are capitalised if applicable to specific projects, where
these are reasonably identifiable and quantifiable, and if there is a reasonable certainty that
they will be recoverable by means of the revenues generated by such projects. The costs
capitalised comprise the utilisation of internal resources, as well as accessory charges.
The amortisation rates used are set out below in the notes on intangible fixed assets.
Property, plant and equipment
Property, plant and equipment are booked at purchase or conferral cost, including any
directly related charges. Ordinary maintenance and repair expenditure that does not
increase the value of the assets concerned is expensed as incurred. Extraordinary
maintenance and repair expenses that increase the useful life of property, plant and
equipment are capitalised and depreciated over the residual life of the assets concerned.
Property, plant and equipment are systematically depreciated on a straight-line basis, using
the ordinary rates indicated by current tax legislation, which are considered to reflect the
useful lives of the related assets. The annual rates used are set out below in the note on
depreciation
As required by International Accounting Standards, starting from this year, fixed assets
acquired under finance leasing contracts, if significant, are booked according to the finance
lease accounting method. This requires capitalisation of the original value of the asset and
the booking of the outstanding principal amount due, while depreciation based on the
5
DUCATI GROUP
estimated useful life of the asset is charged to the statement of operations. Lease
instalments for the year, which include repayments of both principal and interest, are
charged to the statement of operations. Given that lease contracts were of little importance
in the past, up until 31 December 2000 they were accounted for by debiting the statement
of operations with the lease instalments on an accruals basis and disclosing the
commitment for future instalments in the memorandum accounts; mention was also made
of the effect that there would have been if the current method of accounting for leases had
been adopted. The comment on this item includes an explanation of the effect of this
change in accounting principle on the consolidated financial statements .
DUCATI GROUP
DUCATI GROUP
timing differences between statutory and taxable income and on carried forward tax losses,
whose recovery is considered to be reasonably certain, based on predictions of the
particular companys current and expected results.
Deferred taxes have been accounted for in accordance with Accounting Principle no. 25,
issued in March 1999 by the Italian Accounting Profession.
Deferred tax assets and liabilities are calculated using current tax rates applying at the
respective accounting reference dates in the countries where Group companies are based.
These taxes are reviewed every year to reflect changes in tax rates and in the financial and
economic situation of the companies concerned.
Other provisions for risks and charges
This item includes provisions against reasonably foreseeable charges and losses, which are
not connected to specific asset items.
Employees leaving entitlements
This is provided at the accounting date, in accordance with current legislation and labour
contracts.
Bonds
Payables arising from financing operations are booked at nominal value which reflects the
estimated repayment value.
As for the Bond Loan, this has been booked for the amount actually subscribed. The related
issue discount is given by the difference between the par value and the purchase cost and is
booked to the statement of operations on an accruals basis, as are the financial elements.
Costs and revenues
These are recorded in the financial statements according to the accounting principles of
prudence and matching, with appropriate accruals and deferrals being made. Revenues and
other income, costs and charges are booked net of returns, discounts, rebates and bonuses.
Revenues are recognised at the date of shipment, which normally coincides with when
ownership of the goods passes. Costs for services are recognised as and when the service is
received. Costs relating to remuneration for drivers and the racing teams are recognised
according to the length of their respective contracts.
DUCATI GROUP
(2,363)
(7)
705
31/12/00
5,528
124
(2,984)
(8)
2,660
The reclassifications refer to the difference arising on the retranslation of opening balances
of historic cost and related accumulated amortisation at the exchange rate ruling at 31
December 2001. This specifically relates to the balances expressed in foreign currency
held by the following subsidiaries. These costs are amortised on a straight-line basis over
five years from when incurred.
Research, development and advertising costs, for the most part capitalised by the Parent
Company, Ducati Motor Holding S.p.A., mainly relate to studies and research into the
development of new models or improvements for existing ones. They are amortised on a
straight-line basis over five years from when incurred.
Movements in such costs during the years are as follows:
31/12/01
31/12/00
13,935
13,307
(7,673)
(14)
19,555
10,270
8,626
(4,987)
26
13,935
DUCATI GROUP
This item also includes costs incurred for the development of the Ducati image which as of
31 December 2001 have a net book value of 185 thousand Since these costs will benefit
future years, they are being amortised over periods of 5-7 years.
Capitalised R&D costs essentially relate to projects concerning the development of engines
and new models of motorcycle. The research project aims to seek solutions for:
1. reducing motorcycle weight by using innovative materials, while at the same time
increasing safety standards, allowing the reduction of fuel consumption and therefore
lower polluting emissions;
2. improving motorcycle aerodynamics, in order to reduce fuel consumption and hence
lower polluting emissions, and in keeping with the Ducati brands distinctive style;
3. optimising engine performance, while reducing the noise of the intake and exhaust
systems, partly through the use of advanced simulation software.
Reclassifications derive from the adjustment to year-end exchange rates of opening
balances of historic cost and accumulated amortisation expressed in foreign currency.
Industrial patents and intellectual property rights amounting to 3,274 thousand essentially
comprise:
x Software purchased by Ducati North America Inc. and Ducati Motor Holding S.p.A.
x Capitalised costs for maintaining industrial patents.
These costs are amortised on a straight-line basis over three or five years, from when
incurred.
As at 31 December 2001, this item includes a writedown of 1,720 thousand of
Ducati.Com S.p.A.'s e-commerce software. This software, which was developed during the
start-up phase, reflected an architecture suitable for on-line sales. This distribution channel
was not doing enough business to support the costs of the site and its organisation. For this
reason, having also performed a critical analysis of the site's utilisation and level of
obsolescence, the Group prudently carried out an extraordinary writedown of the net book
value based on a permanent impairment of value, also considering the change in
Ducati.Com's business purpose. This writedown has been booked to line B 10) c) of the
consolidated statement of operations under other write-offs of fixed assets.
Concessions, licences, trademarks and similar rights almost exclusively consist of costs
incurred for the Ducati trademark, purchased on the basis established at the time the
business division was acquired by Ducati Motorcycles S.p.A.
Movements in this position during the years are as follows:
31/12/01
31/12/00
87,959
19
(5,576)
82,402
93,533
(5,574)
87,959
DUCATI GROUP
During 2000, the Parent Company Ducati Motor Holding S.p.A. took advantage of Law
no. 342 of 21.11.2000 on the revaluation of assets. This voluntary revaluation has been
adopted in the statutory financial statements and only applied to the historical cost of the
trademark, as permitted by the Treasury in its circular of 6 November 2000, which allows
companies to revalue only the historical cost without any adjustment to accumulated
amortisation.
The balance of the revaluation, net of the related substitute tax, has been booked to a
special reserve that refers to the law in question, excluding any alternative use.
The amount of the revaluation, 29,924 thousand, is confirmed by the expert opinion
issued by Mr. Paolo Penzo (accountant) on 13 February 2001. This amount has been
applied in the statutory financial statements of Ducati Motor Holding SpA. Amortisation
has been calculated in the consolidated financial statements over a period of 20 years. This
is the maximum period currently allowed under Italian accounting principles for the
amortisation of intangible fixed assets such as trademarks, as it is difficult to estimate
exactly what a trademark's useful life will be, though being linked to the expected duration
and development of the business, it can presumably last for a very long time.
Goodwill mainly reflects that arising from the acquisition in 1996 of the business from
Motori Italia S.p.A., taking account of market trends and forecasts of life and development
of the business at that time. Given that goodwill is expected to benefit over a protracted
period which is difficult to determine since it depends on the forecast life and development
of the business, even though these are expected to span over a long period of time,
amortisation in the consolidated financial statements is charged over 20 years. This period
represents the maximum currently consented under the accounting principles established
by the Italian Accounting Profession and those issued by the International Accounting
Standards Committee (IASC). The purchased goodwill relating to the reorganisation of the
French and German distribution networks acquired in 1998 for a total cost of 1,291
thousand is being amortised over a period of fifteen years, determined on the basis of its
estimated economic useful life. The increase of 152 thousand during the year ended
31 December 2000 relates to the goodwill paid for the reorganisation of the UK sales
network, to be amortised over 3 years .
Movements in this position during the years are as follows:
31/12/01
31/12/00
20,564
(2,214)
2
18,352
18,236
152
(2,215)
4,391
20,564
DUCATI GROUP
12
DUCATI GROUP
31 dicembre
2001
31 dicembre
2000
Terreni e fabbricati
Costo
Fondo ammortamento
30.066
(4.586)
29.277
(3.570)
Valore netto
25.480
25.707
21.770
(10.119)
15.671
(5.632)
11.651
10.039
27.528
(16.851)
21.135
(11.828)
Valore netto
10.677
9.307
Altri beni
Costo
Fondo ammortamento
7.841
(3.506)
5.782
(2.241)
Valore netto
4.335
3.541
2.433
2.516
54.576
51.110
Impianti e macchinari
Costo
Ammortamento
Valore netto
Attrezzature industriali e commerciali
Costo
Fondo ammortamento
The depreciation rates applied are set out in the relevant section of the notes on the
consolidated statement of operations.
Leasing
As of 31 December 2001, the Group has entered into lease contracts relating to.
- machinery and work stations;
- an industrial building for 23,622 thousand.
These assets have been recorded in the statutory financial statements of the Parent
Company, Ducati Motor Holding S.p.A. according to current Italian legislation, by which
lease instalments are charged to the statement of operations as incurred with the
commitment for residual instalments appearing in the "commitments and contingent
liabilities". The related assets are recorded among property, plant and equipment only
when they are redeemed. This practice is in line with current fiscal legislation
As of 29 June 2001, the Parent Company Ducati Motor Holding S.p.A. completed a "sale
and lease-back" operation involving an industrial building. This refers to a part of a
building complex used for production purposes located in Via A. Cavalieri Ducati 3,
Bologna.
13
DUCATI GROUP
The operation involved selling the building at around book value to Locafit Locazione
Macchinari Industriali S.p.A., a leasing company, for 20,710 thousand, with a sale
contract notarised by Iacopo Bersani (notary public) on 29 June 2001, repertory no.
24473/4192, and signing a lease contract with the same company.
This contract has a duration of 8 years from the date it was signed.
By way of consideration for the finance lease on the building, Ducati Motor Holding
S.p.A. will pay Locafit SpA 24,767 thousand plus VAT in 32 quarterly instalments, as
established in the contract.
As indicated in the accounting policies, up to the consolidated financial statements for the
year ended 31 December 2000, minor leases involving machinery and work stations were
accounted for in the same way as in the statutory financial statements, given that they were
in any case immaterial.
As from the financial statements for the period ended 31 December 2001, the Group has
chosen to use the recommended financial method for the consolidated financial statements,
considering the importance of the sale and lease-back operation.
This method involves booking the leased assets and charging depreciation over their useful
life in the same way as property, plant and equipment, at the same time booking the
liability to the leasing company, and charging the financial expenses in the statement of
operations on an accruals basis.
Following the adoption of this method, minor lease contracts have also been accounted for
in the same way.
Had the same method also been used in the prior period financial statements shown here
for comparative purposes, the effect on the balance sheet and statement of operations
would have been the following:
Shareholders'
equity
31/12/00
Statement of
operations
31/12/00
(1,952)
(2,309)
(463)
(26)
235
(2)
142
(61)
81
14
(254)
102
(152)
DUCATI GROUP
31/12/00
Associated companies :
High Performance
Engineering S.r.l.
83
1
1
1
84
The equity investment in the associated company, High Performance Engineering S.r.L,
40% owned, was sold at book value on 20 December 2001 as notarised by Cesare Ferrari
Amoretti with deed no. 90649/14239.
Other amounts - receivables
31/12/01
31/12/00
260
328
350
610
277
605
Credit Link
31/12/01
31/12/00
15,000
During 2001, the Parent Company Ducati Motor Holding S.p.A. initiated a financial
operation called Credit Link for 15.0 million which is strictly connected to the issue of
the Bond Loan and in particular, to the risk of default on this loan. The risk of default
refers to the non performance by Ducati Motor Holding S.p.A. of financial obligations
related to the loan up to a maximum of 15.0 million.
15
DUCATI GROUP
This operation, the purpose of which is to maximise the benefit of liquid funds generated
during the year, was formalised by acquiring a bond issued by the Dutch subsidiary of
Banca Nazionale del Lavoro, which yields an annual deferred coupon of 5.89%. It was
issued on 31 July 2001 with expiry on 31 May 2005. Maturities of the Credit Link and
related interest instalments are tied to those of the Bond Loan.
Current assets
Inventories
Closing inventories, shown net of the allowance for obsolete and slow-moving inventory,
total 97,636 thousand and comprise:
31/12/2001
31/12/2000
23.789
(2.168)
21.621
19.638
(1.559)
18.079
15.722
(345)
15.377
20.859
(290)
20.569
Prodotti finiti
F.do svalutazione
62.412
(1.774)
60.638
51.673
(1.306)
50.367
Totale
97.636
89.015
The allowance mostly relates to spare parts, because the Group is obliged to maintain
sufficient spare parts to service bikes sold in previous years for at least ten years. This
means that in many cases the quantity of spare parts held in inventory is greater than the
Group's actual requirements and, therefore, not readily recoverable.
Movements in the allowance between periods are as follows:
31/12/01
31/12/00
Opening balance
Increases
Utilisations
Exchange differences emerging from the
translation of foreign subsidiary balances
3,155
1,670
(571)
3,105
599
(625)
33
76
Closing balance
4,287
3,155
16
DUCATI GROUP
Receivables
Trade receivables
Domestic customers
Notes portfolio
Factoring companies
Foreign customers
Gross total
Allowance for doubtful accounts
Net total
31/12/01
31/12/00
21,586
81
1,330
79,352
102,349
(4,322)
98,027
2,107
4,821
11,828
64,936
83,692
(3,204)
80,488
Amounts due from factoring companies reflect the total of receivables transferred without
recourse to factoring companies as of 31 December 2001, not yet collected. Even though
these receivables were transferred without recourse, the corresponding receivables due
from the factoring company have been classified under trade receivables, both for a clearer
comparison with the prior year and because the receivables transferred were trade-related.
The significant decrease with respect to the previous year is due to the termination of the
contract with Ifitalia S.p.A. to which Ducati Motor Holding S.p.A. transferred its Italian
trade receivables until 31/07/01.
Movements in the allowance for doubtful accounts during the periods under review are as
follows:
31/12/01
31/12/00
Opening balance
3,204
3,343
1,037
240
135
(54)
4,322
(2)
(377)
3,204
Additions to the allowance were provided in accordance with the prudence principle to
cover positions of doubtful collectibility that arose during the respective periods.
The increase in 2001 refers to receivables of doubtful collectibility mainly concerning
foreign subsidiaries.
Utilisations during the year booked to the consolidated statement of operations under
Other operating revenues are mainly due to the writedown of a receivable from an Italian
customer. The corresponding writedown amounts to 40 thousand and has been booked
under Writedowns of doubtful amounts included among current assets in the
consolidated statement of operations.
Utilisations also include a 14 thousand writedown of a receivable due to the German
subsidiary Ducati G.m.b.H.
17
DUCATI GROUP
Other receivables
These amount to 9,370 thousand and are detailed below:
31/12/01
VAT recoverable from the
provincial VAT office
Scrapping subsidy
Due from employees
Tax authorities withholdings on
interest receivable
Deferred tax assets - Italian
companies
Deferred tax assets - foreign
companies
Other tax credits
Tax authorities corporate/local
income tax
Due from social security
institutions
Due from suppliers
Due from insurance companies
Miscellaneous receivables
Total
31/12/00
2,763
3,441
16
88
415
53
82
-
44
6,383
3,076
1,327
169
929
160
19
67
31
1,839
76
265
9,370
257
130
59
12,319
The decrease in the VAT credit with respect to the previous year is mainly due to the
receivable accrued as at 31/12/2000 by Gio.Ca Moto International S.r.l. (merged with
Ducati Motor Holding S.p.A. on 31/12/2001) which was used during 2001 to offset other
tax liabilities.
The scrapping subsidy refers to the receivable accrued as of 31 December 2001 based on
Law 140 of 11 May 1999 allowing motorcycle manufacturers a fixed tax credit of 258.23
for each motorcycle sold at a discount to encourage the scrapping of older vehicles.
Other tax credits refer to amounts due to our subsidiaries, Ducati Japan K.K., Ducati
GmbH and Ducati Benelux B.V. from the tax authorities of the respective countries.
The deferred tax assets relating to foreign companies refer to the subsidiaries, Ducati Japan
K.K., Ducati UK Ltd, Ducati France S.A . and Ducati North America Inc. Ltd.
For further details relating to changes in deferred tax assets, refer to the comment on
taxation provisions.
An analysis of deferred tax assets and liabilities is also given in Attachment 6.
Amounts due from tax authorities for corporate income tax relate to excess payments on
account during the period and refer for 910 thousand to Gio.Ca Moto International S.r.l.,
which merged with Ducati Motor Holding S.p.A. on 31 December 2001. This sum is
expected to be recovered during the current year.
18
DUCATI GROUP
Amounts due from suppliers mostly derive from advance payments for supplies abroad.
The increase is linked to a rise in supplies abroad for suppliers who are paid in advance.
The receivables discussed above are all due within five years.
Current financial assets
The balance recorded in the consolidated financial statements comprises:
31/12/01
Securities
Total
31/12/00
32
32
29
29
15 thousand
Cheques
6 thousand
23,652 thousand
31/12/00
255
366
This prepayment reflects the discount on the bond loan issued, as explained in the
appropriate item.
19
DUCATI GROUP
31/12/00
170
319
424
113
410
484
1,488
724
1,156
20
DUCATI GROUP
convert the par value of each share previously equal to Lire 1,000 into euros, applying
the official conversion rate of 1 to Lire 1,936.27;
x
round up the amount obtained, namely 0.5164569, to 0.52 per share, thus
increasing the par value of each share;
x
multiply the new nominal value of each share ( 0.52 each) by the number of shares
(158,271,963) to reach a total of 82,301,420.76;
x
convert and increase the share capital from 81,740,647.2238 (Lire 158,271,963,000)
to the new value of 82,301,420.76, with an increase in share capital of
560,773.5362, to be carried out free of charge by transferring this amount from the
share premium reserve, reducing the value of the reserve;
On 14 May 2001, a further capital increase took place by issuing 229,000 new shares at a
par value of 0.52, each with a share premium of 0.203, as partial subscription and
payment of the capital increase resolved by the extraordinary meeting of 7 September 1998
for the stock option reserved for the Company's directors, employees and consultants.
This increase brought the Company a total of 165,567 of which 119,080 as share
capital and 46,487 as the share premium reserve.
After the above operations, the Company's new share capital as of 30 December 2001
amounts to 82,420,500.76, represented by 158,500,963 ordinary shares of par value
0.52 each, with normal dividend rights from 1 January 2001.
The increases in share capital carried out during 2001 can be analysed as follows:
21
DUCATI GROUP
UNIT
VALUE
No. of shares
Par value
229,000
0.52
0.203
0.723
Share premium
119,080.000
46,487.000
Total in Euro
165,567.000
Share premium
8,393
386
38,737
1,457
47,130
1,843
498
9,277
199
40,393
697
49,670
(16,891)
(16,891)
64
23,566
224
33,003
(1,735)
(1,735)
02/05/00
Absorption of losses
accumulated as at 31.12.99
16/05/00
Shares for Stock Option plan
Total
160
9,437
24/04/01
Allocation to accelerated
depreciation reserve
14/05/01
Conversion of share capital
into euro
561
(561)
119
46
165
21,316
31,433
Total
10,117
22
DUCATI GROUP
x
x decrease of 561 thousand due to rounding up after the conversion of the share capital
from Lire into euro;
x decrease of 1,735 thousand for the booking of accelerated depreciation for 2000
using the so-called "recommended method", relating to the part in excess with respect
to the net profit for the year to be allocated to reserves.
The last two operations were carried out on 24 April 2001 as a result of the shareholders'
resolution that approved the financial statements as of 31 December 2000.
23
DUCATI GROUP
Deferred
income taxes
Italian
companies
Deferred tax
assets - Italian
companies
Total
Balance as of 31/12/00
(12,728)
19,111
6,383
Allowance (utilisation)
(7,364)
(15)
(7,379)
Balance as of 31/12/01
(20,092)
19,096
(996)
This item refers to net deferred tax liabilities, mainly calculated on the consolidation
adjustments and on the timing differences between the results reported in the financial
statements and the corresponding amounts recognised for fiscal purposes; In particular, it
relates to the elimination on consolidation of items recorded solely for fiscal purposes in
Group company financial statements in order to obtain tax benefits not otherwise available
(primarily relating to the amortisation of intangible fixed assets), to other consolidation
adjustments, to costs deductible in future accounting periods and the effect on corporate
income taxes of losses carried forward.
The offsetting of deferred tax assets and liabilities took place with reference to the timing
differences relating to Ducati Motor Holding S.p.A. and the other Italian subsidiaries,
because the Directors consider it reasonably certain that they will be realised on the basis
of current forecasts.
The net increase in the reserve for deferred taxes for 2000 is principally due the absorption
of tax losses carried forward for tax purposes by certain Group companies up to
31 December 2000.
The tax years still open for direct and indirect taxation purposes are the following:
from 1996 for Ducati Motor Holding S.p.A. (including Ducati Motor S.p.A., now merged
with it) and Ducati North America Inc.; from 1997 for Ducati G.m.b.H., Gio.ca Moto
International S.r.l. and Ducati France S.A.; from 1998 for Ducati Japan Ltd. and Ducati
Corse S.r.l.; from 1999 for Ducati Benelux B.V.; from 2000 for Ducati.Com S.p.A. and
Ducati UK Ltd.
As of 31 December 2001, the Group has no disputes outstanding with the tax authorities,
except as mentioned under Significant Events in the report on operations.
Other provisions for risks and charges
These provisions, estimated to cover known or likely losses, the timing and extent of which
cannot be determined, total 12,453 thousand as of 31 December 2001, of which 3,305
thousand long-term. Movements in the reserves during the period are detailed in
Attachment 3.
24
DUCATI GROUP
DUCATI GROUP
initials, both of which belong to Hailwood's estate. Mrs Hailwood has asked for
compensation for the damages resulting from this alleged violation, together with an
injunction to prevent the Company using Mike Hailwood's name and initials any more.
The Company believes Mrs Hailwood's claims to be without foundation and intends to
oppose them.
31/12/00
4,775
1,954
(10)
3,783
1,758
4
(1,000)
5,719
(770)
4,775
The 10 thousand effect of foreign exchange translations is related to the translation of the
financial statements of foreign subsidiaries.
Payables
Bonds
On 31 May 2000 Ducati Motor Holding S.p.A. issued bearer bonds for Euro 100 million
(Lire 193,627,000,000). The bonds, which mature on 31 May 2005, accrue interest at a
fixed rate of 6.5% per annum, payable at the end of each 12 month period from the date of
issue, with the principle redeemable on maturity.
The net proceeds received by Ducati Motor Holding S.p.A. from the placement of these
bonds amounted to Euro 99,186,000 (Lire 192,050,876,220), net of the discount on the
issue price of 414,000 and bank commissions of 400,000. This liquidity has been used
to repay in advance the rest of the medium/long-term loan taken out in 1998 by Ducati
Motor S.p.A. for an original amount of Lire 325 billion (of which Lire 60 billion in the
form of a revolving multicurrency line of credit).
The terms and conditions of the bond loan do not provide for any financial coverage index
or performance parameter, but they do lay does a limit on the issuer's capacity to grant real
guarantees as security for any further debt represented by bonds of other financial
instruments.
If the terms and conditions of the bond loan are not respected, this automatically gives the
bond-holders a right to immediate redemption. This might include, by way of example,
failure to pay interest or principle when due, a lack of compliance with the obligations
related to issuance of the bonds, failure to pay other liabilities when due, early repayment
26
DUCATI GROUP
2,270
19,485
31/12/00
86
170
The significant increase as of 31 December 2001 is due to the lease of the industrial
building, booked for the first time, together with existing minor leases, using the finance
lease method (as recommended).
This item includes payables maturing beyond 31/12/2006 of 7,120 thousand.
Advances from customers
This payable reflects advances from foreign customers from whom payment is required in
advance.
27
DUCATI GROUP
31/12/01
31/12/00
2,957
929
The increase is due to the rise in advances from customers of the Parent Company, Ducati
Motor Holding S.p.A. and the foreign subsidiary, Ducati Japan S.A.
Trade accounts payable
These are detailed as follows:
31/12/01
Domestic suppliers
Foreign suppliers
Invoices to be received
Total
24,171
15,482
47,096
86,749
31/12/00
43,178
10,799
29,727
83,704
Trade accounts payable entirely represent payables to suppliers of goods and consultancy
services. The increase in this balance is primarily due to the expansion of activities.
Due to tax authorities
These amounts are detailed below:
31/12/01
VAT payable
Registration and other local taxes
Taxes withheld - employees
Taxes withheld free-lance
personnel
IRPEG-IRAP payable
Taxes payable by foreign companies
19% substitute tax for the trademark
revaluation
Total
31/12/00
2,137
3,872
904
79
88
1,264
101
417
195
-
1,365
462
5,686
3,732
12,838
Amounts due to the tax authorities mainly comprise direct and indirect taxes payable by
individual Group companies, net of taxes paid in advance, as well as taxes withheld at
source by Group companies on remuneration due to employees and free-lance personnel,
and the substitute tax. Taxes payable are determined on the basis of the best interpretation
of current tax law, as analysed in the commentary to the caption Income taxes in the
statement of operations.
Amounts payable to the VAT office show a decrease principally due to the utilisation of
the VAT credit accumulated as at 31/12/2000 by Gio.ca Moto International S.r.l. (now
merged with Ducati Motor Holding S.p.A.) to offset other tax liabilities.
IRPEG / IRAP payable (Corporate income tax and regional tax on business activities) have
decreased sharply compared with the same period last year, mainly as regards IRPEG.
This is due to a reduction in tax rates and taxable income.
28
DUCATI GROUP
31/12/00
1,514
147
1,280
131
33
423
4
420
211
19
2,347
159
4
1998
This item mainly consists of routine payables to social security institutions for
contributions on current and deferred remuneration
Other payables
These amounts are detailed below:
31/12/01
Amounts payable to employees
Payables for MH and 996R
Miscellaneous payables
Total
5,871
468
383
6,722
31/12/00
7,432
3,053
1,023
11,508
Other payables consist of payroll items due to employees at the balance sheet date, but not
yet paid (wages and salaries, bonuses, holidays still to be taken).
The payables for MH and 996R relate to the advances paid by way of an option on future
purchases of the MH 900 and 996R motorcycles. These advance bookings were taken
through the Company's website. The considerable decrease is almost totally due to
reimbursement of these advances on completion of the sales. Miscellaneous payables are
mainly due to insurance brokers, 334 thousand.
The decrease with respect to the previous year is due to premiums paid in advance in 2001.
Accrued expenses and deferred income
These amount to 4,737 thousand and mainly include accrued interest expense on the
bond loan.
29
DUCATI GROUP
As of 31 December 2001, accrued expenses also include net interest of 3,451 thousand (
3,791 thousand al 31/12/2000) on the bearer bonds issued on 31 May 2000, as explained
more fully in the note on bonds.
The interest accrual has been calculated in accordance with the loan's terms and conditions,
namely a coupon rate of 6.5% per annum accounted for on a time-related basis for the
period 31 May 2001 - 31 December 2001.
Accrued expenses also take account of extraordinary remuneration authorised by the
Compensation Committee and confirmed by the Board of Directors in favour of the
Chairman and the Managing Director of the Company. This remuneration is to be paid in a
lump-sum on 15 March 2002, It therefore accrues from 15 March 2001 to 15 March 2002,
with 886 thousand being the accrual for the period.
This balance also includes deferred income for the grant received by the former subsidiary
Ducati Motor S.p.A., now merged with Ducati Motor Holding S.p.A., from the Ministry of
Industry under Law 140 by way of automatic incentives for innovation. The full amount of
the grant, 421 thousand, has been booked as other income for 2000, with deferral of the
portion relating to subsequent years.
This item comprises 57 thousand related to contributions recognised to Ducati Corse
S.r.l. by the Ministries of Education, University and Research and relates to contracts
between Ducati Corse S.r.l. and the universities of Padua, Bologna and Perugia. These
contributions represent 60% of costs incurred and are shown under "other income and
revenues" and deferred for the portion pertaining to the amortisation period.
31/12/00
224
224
116,536
138,233
2,834
116,760
141,291
DUCATI GROUP
31
DUCATI GROUP
STATEMENT OF OPERATIONS
Value of production
Net sales
Total net sales amount to:
31/12/01
Net sales
407,815
31/12/00
379,534
A breakdown of net sales by business line and principal geographical area is presented in a
statement attached to these notes (attachment 5). .
Change in work in progress, semi-finished and finished products
The total increase in this item amounts to 5,096 thousand.
Changes in inventories reflect movements in the respective asset categories.
More specifically, with the respect to movements in the respective assets categories, these
changes do not include the effects of conversion between the exchange rate used for
translating the balance sheet and that used for translating the statement of operations.
Capitalisation of internal costs
These amount to 5,439 thousand and mainly derive from the employment of internal
resources and materials for the research and development of programmed new models and
improvements to the current model range.
Other operating revenues
Amount as of
31/12/01
Cost recoveries on invoices
Miscellaneous revenues
Total
3,833
10,815
14,648
Amount as of
31/12/00
2,148
10,666
12,814
The increase shown above derives from the general rise in all of these items making up the
balance, in particular costs recharged to customers and sponsorships as a result of new
contracts signed by Ducati Corse S.r.l.
32
DUCATI GROUP
Manufacturing costs
Purchase of raw materials
31/12/01
31/12/00
184,658
600
4,655
187,188
520
2,938
189,913
190,646
The increase in transport charges on purchases is mainly due to the growth in shipments of
materials to subcontractors, as well as to higher volumes.
Services
The cost of services is detailed below :
31/12/01
Power, natural gas, water
Other industrial services
Subcontracted work
Temping agencies
Commission and related charges
Transport on sales
Customer incentives
Advertising and public relations
Promotion expenses, hospitality and
sundry other costs of sales
Other commercial costs
Racing programme
Technical, legal and administrative
advice
Insurance premiums
Other administrative costs
Total
31/12/00
1,169
15,033
31,655
1,386
569
4,720
16,436
4,364
1,073
12,662
25,261
2,418
120
4,264
15,940
4,725
6,549
9,903
5,625
7,352
6,287
4,738
5,296
2,781
11,023
118,565
5,406
2,115
12,077
102,382
Other industrial services and subcontracted work increased dramatically with respect to
2000 following a higher recourse to outsourcing of the production of pieces which are part
of the core business and of other services also related to the industrial sector.
The cost of temping agencies decreased with respect to 2000 after a change in the
Company's policy related to personnel. During 2001 in fact, thanks to the stabilisation of
volumes and higher recourse to outsourcing, above all the Parent Company Ducati Motor
Holding S.p.A., which represents the manufacturing company of the Ducati Group,
decreased its recourse to temping agencies. The use of this form of recruitment has been
almost entirely eliminated in the last quarter of 2001.
33
DUCATI GROUP
The increase in customer incentives, which involve granting bonuses to dealers when they
achieve certain sales targets, and related costs is mainly the result of the increase in
volumes.
Promotion expenses, hospitality and sundry other costs of sales, substantially in line with
the previous year, also refer to costs incurred for presents to non-employees, 479
thousand.
Other commercial costs, which show a remarkable increase with respect to 2000 and
concern advertising and promotions in connection with trade fairs, exhibitions, price lists
and catalogues. The change mainly concerns the subsidiaries Ducati Japan K.K. , Ducati
France S.A. and Ducati North America Inc. Ltd. for initiatives carried out in 2001 such as:
- The D.R.A. (world motorcyclists' rally) organised in the United States;
- le Monde 2 Route: an important fair of motorcycles in which Ducati France S.A. took
part.
Other marketing costs concern advertising and promotions in connection with trade fairs,
exhibitions, price lists and catalogues.
Costs incurred for the racing programme relate to racing drivers, the cost of specific
materials, as well as travel expenses involved in testing and taking part in competitions.
Technical, legal and administrative advice mainly concern 538 thousand for technical
advice, 132 thousand of costs incurred in relation to the Board of Statutory Auditors,
1,810 thousand for administrative, legal and notarial fees, 514 thousand for auditing
costs.
The increase in insurance costs is mainly due to a policy covering additional after sales
services, which is linked to the number of motorcycles registered; the fees for this policy
suffered a hike in the European market, where it was applied from 2000, while in 2001 it
was introduced into the American market. The increase is also related to the new policy on
the credit issuance in force in the last quarter of 2001 and to the adjustment of volumes for
the third-party liability policy for Products and Transport.
Use of thirdparty assets
This amount comprises:
31/12/01
31/12/00
165
1,244
1,945
456
711
1,670
3,354
2,837
The decrease in leasing of machinery and plant is due to the different accounting method
for leasing contracts, as explained in the specific note.
The increase in software rent is mainly due to the higher recourse to this type of rent by the
Parent Company Ducati Motor Holding S.p.A.
34
DUCATI GROUP
Year ended
31/12/01
Year ended
31/12/00
35.418
9.389
1.954
33.584
8.721
1.758
783
59
168
343
600
43
144
312
858
46.020
48.114
The increase in labour costs is linked to company development involving the research for
new activities as well as the strengthening of existing structures. The item "Other
provisions" as at 31 December 2000 included an estimate of the cost for the incentive to
leave stipulated with a manager of the Company.
Changes in the Ducati Group workforce during the periods were as follows:
31/12/01
1
Managers
Office staff
Foremen
Workmen
Total
31/12/00
1
47
488
21
586
48
463
21
591
50
424
18
577
50
411
19
578
1,142
1,123
1,069
1,058
DUCATI GROUP
Annual rate
Industrial buildings
Temporary constructions
Improvements on third parties
property
Non-automated general plant
Automated operating plant and
machinery
Furnaces
Robotised work stations
Equipment
Testing instruments
Ordinary office furniture and
machines
Electromechanical and electronic
office machines
Cars and motorised equipment
Transport vehicles
Total
Amount
for 2001
3%
10%
3%
871
6
504
10%
829
17.5%
15%
22%
25%
30%
1,973
19
36
4,371
690
12%
391
20%
25%
20%
428
194
156
9,998
x Intangible fixed assets: this balance amounts to 22,896 thousand as indicated in the
note on the relevant balance sheet item and in Attachment 1. Amortisation on
intangible fixed assets depends on the reasons for their acquisition, as discussed in the
note on the relevant balance sheet item.
x Other writedowns of fixed assets total 1,720 thousand and refer to software belonging
to Ducati.Com S.p.A.. The reason for this writedown for permanent impairment of
value is given in the commentary on the balance sheet item concerned.
31/12/00
1,024
240
53
288
1,077
528
The increase in the reserve as at 31 December 2001 is due to charges for the period allocated
by foreign subsidiaries.
Changes in raw, ancillary and consumable materials and goods for resale
As of 31 December 2001 there has been a decrease of 3,543 thousand.
36
DUCATI GROUP
31/12/00
Product warranty
Legal disputes
8,504
138
9,664
189
French taxation
Total
8,642
26
9,879
31/12/01
31/12/00
182
564
2
748
79
564
5
648
31/12/01
31/12/00
114
156
669
12,095
8
473
13,359
195
5,278
3,282
8,911
The exchange gains are principally due to income booked during the period in connection
with exchange risk hedging transactions, in expectation of the euro strengthening against
the Yen. The remainder relates to the year-end adjustment of trade receivable and payable
balances expressed in foreign currency.
37
DUCATI GROUP
Financial charges
In detail:
31/12/01
Interest expense on short-term
borrowings
Interest expense and charges on longterm borrowings
Interest expense on use of revolving
credit facility
Other financial charges
Foreign exchange differences
Interest expense on bond loan
31/12/00
776
Total
2,569
447
7,092
11,418
6,625
14,908
6,146
25,432
3,792
28,340
Interest expense on short-term financing and long-term loans reflects amounts accrued in
relation to the loan agreement with a pool of banks, as discussed previously in the note on
"Due to banks", completely repaid as of 31 December 2000. Interest expense on short-term
borrowings represents the financial cost of using short-term loans.
Other financial charges mainly reflect charges and commission on ordinary current
accounts, export/import-related charges and commission, and discounts for immediate
payment as well as the cost of discounts on the bond.
Exchange losses essentially reflect the losses registered during the period linked to
exchange hedging contracts entered into during the latter months of 2000 and in 2001, in
line with the Group's policy of hedging exchange risks at the time the budget is prepared.
The interest expense on the bond, booked to accrued expenses is shown net of the interest
income linked to the repurchase of two tranches of the bond loan as explained in the note
on "Bonds payable".
Non-operating income and expense
This item is detailed below:
Non-operating income
Out-of-period income
Total
31/12/01
31/12/00
151
151
6,851
6,851
The figure for the year ended 31 December 2000, on the other hand, included 6,657 of
lower taxes paid compared with the provision made in the consolidated financial
statements as of 31 December 1999, as a result of revaluing the trademark in 2000.
38
DUCATI GROUP
Non-operating expense
31/12/01
31/12/00
26
106
46
178
150
150
The amounts of out-of-period income and expense derive from over- or under-provisions
for foreign tax at the time the previous year's financial statements were prepared, as well as
from fines.
Income taxes for the year
Current and deferred income taxes are detailed below:
31/12/01
31/12/00
578
1,220
2,496
2,587
123
3,197
7,379
(1,681)
5,698
8,895
40
3,847
4,037
(696)
3,341
7,188
Current taxes
When calculating the current taxes of the subsidiary Ducati Corse S.r.l., these companies
took advantage of the Dual Income Tax (D.I.T.) mechanism, which was introduced into the
Italian tax system by Decree Law no. 466 of 18 December 1997 to help boost companies'
capitalisation. The benefit of D.I.T. lies in the possibility of applying a reduced rate of
corporation tax (IRPEG at 19% instead of the standard rate which for 2001 was reduced
from 37% to 36%) to earnings corresponding to the ordinary return on any increase in
capital invested in the business compared with the capital existing at the end of the year in
progress at 30 September 1996. In any case, up to the year ended 31.12.2000, application
of the D.I.T. mechanism could not entail taxation at an average rate of less than 27%.
From 2001 (article 6 of the Budget Law 2000), the part of the ordinary return on capital
subject to tax at 19% (7% for newly-quoted companies) that exceeds the total net profit
declared is to be added to the earnings subject to tax at the reduced rate in subsequent tax
years, though not beyond the fifth. This effectively gets rid of the previous restriction
whereby the application of DIT could not lead to an average tax rate of less than 27%
(DIT) or 19% (SuperDIT). It will therefore no longer be necessary to carry forward
portions of earnings taxable at the lower rate due to the fact that the average rate of 27%
has been exceeded. On the other hand, carry-forward remains in the case where total
taxable income is insufficient compared with that taxable at the lower rate
39
DUCATI GROUP
The most recent ordinary rate of return determined by the Treasury and the Ministry of
Finance for 2001 is 7%. With the coming into effect of art. 6.14 of Law 488 of 23/12/99
(Budget Law 2001), the legislator intended to reinforce the DIT mechanism by means of a
multiplier of 1.20 to be applied to the 7%, increasing the effective amount of the income
subject to the lower rate. The rate of return to be applied in 2000 is therefore 8.4%. This
20% increase in the amount of year 2000 earnings taxed at special low rates will be raised
to 40% in subsequent years.
This multiplier is also applicable to the SuperDIT mechanism which is explained below.
It is worth mentioning that for the companies listed on Italian regulated markets from 21
January 1998, as in the case of Ducati Motor Holding S.p.A., a special income tax rate of
7% (the so-called "SuperDIT") is to be applied to that part of income equal to the ordinary
remuneration of the increase in capital employed compared with the end of the period in
progress at 30 September 1996. This rate is applicable in the year after the listing and the
two subsequent years.
As mentioned previously, the Parent Company Ducati Motor Holding S.p.A. has calculated
its current tax liability using the carry-forward tax losses accumulated up to
31 December 1999; as a result it did not take any benefit from the DIT system as it did not
have enough taxable income. On the other hand, up to 31 December 2000, it accounted for
the DIT and SuperDIT benefit as a deferred tax asset as the Company is reasonably sure of
being able to use it in future years.
Important reforms to the Italian tax system were also introduced by the Government's
decree law concerning its initial measures to relaunch the economy (the so-called "First
100 Days' Law"), as follows:
x Exemption from taxation of part of the profits reinvested in fixed assets used in the
business (Tremonti-bis).This benefit is applicable in the tax period during which the law
came into effect, after 30 June, and in the subsequent period, excluding from taxable
income 50% of the net capital investments made during the said periods that are over and
above the average investments made during the previous five years, with the chance to
exclude from this calculation the highest period of investment.
x With reference to the DIT system, the "First 100 Days' Law" introduced the possibility of
choosing between this and the exemption of reinvested profits, offering the chance for
businesses that have already carried out sizeable increases in capital that are relevant for
DIT purposes can continue to take advantage of this benefit. The D.I.T. would be
cancelled as far as the provision is concerned but would not be completely cancelled
from an operating point of view. In fact, the provision in question lays down the
following:
x the capital increases which remain relevant for DIT purposes are those "carried out" as
of 30 June 2001;
x the businesses that carried them out will continue to enjoy the related benefits.
x Extension of the category of tax-deductible investments to staff training and education
expenses.The benefit involves 50% of the entire amount of the expenses incurred without
having to make any comparison with the average amount spent in previous years.
As regards the Tremonti-bis law and there deductibility of investments in fixed assets, no
Italian Group company took advantage of this benefit during the year ended 31 December
2001. As already mentioned in the note on "Current taxes", the subsidiary Ducati Corse
S.r.l. took advantage of the DIT system, while the Parent Company Ducati Motor Holding
S.p.A. has provided for this benefit in its deferred tax assets.
40
DUCATI GROUP
(Carlo di Biagio)
41
DUCATI GROUP
Consolidated Financial Statements as of December 31, 2001 - Attachment 1 - first part
Movements in intangible fixed assets are detailed in the table below
( Euro/1000)
Historical
ReclassificaAsset category/financial statement
Cost
tions
Increases
caption
31/12/2000
*
Decreases/
writedowns
Historical
Net book Net book
cost
value
value
31/12/2001 31/12/2000 31/12/2001
14.917
(48)
415
15.284
2.660
705
14.917
(48)
415
15.284
2.660
705
23.791
562
24.353
1.754
27
1.781
11.528
(7)
11.528
(7)
37.066
589
37.655
13.644
290
13.935
19.370
185
19.555
437
7.046
0
133
42
2.611
0
(1.733)
479
8.057
41
4.107
32
3.242
7.483
133
2.653
(1.733)
8.536
4.148
3.274
Trademark
141.436
19
141.455
87.959
82.402
Trademark
141.436
19
141.455
87.959
82.402
Goodwill
29.668
92
29.760
20.564
18.352
Goodwill
29.668
92
29.760
20.564
18.352
1.481
1.481
1.242
1.100
1.481
1.481
1.242
1.100
Advances to suppliers
Advances to suppliers - R.&D.
Advances to suppliers third parties property
70
1.470
0
(70)
(1.753)
0
115
283
110
0
0
0
115
0
110
70
1.470
0
115
0
110
1.540
(1.823)
508
225
1.540
225
2.507
395
9.419
3.029
0
1.214
3.404
84
20.052
73
0
0
0
0
0
0
0
73
752
0
0
0
0
0
0
0
752
(17)
0
0
0
0
0
0
0
(17)
3.315
395
9.419
3.029
0
1.214
3.404
84
20.860
1.175
0
6.080
0
0
809
523
31
8.618
1.372
0
4.195
0
0
405
403
12
6.387
240.930
208
15.875
(1.757)
255.256
140.665
132.000
Joint ventures
Marketing expenses
IPO costs
Banking expense
Bond expenses
Non competition agreement
Original debt capacity
Reproduction plant
Other
TOTAL
DUCATI GROUP
Consolidated Financial Statements as of December 31, 2001 - Attachment 1 - second part
( Euro/1000)
Asset category/financial statement
caption
Accumulated
amortisation
31/12/2000
Reclassifications
*
Increases
Exchange
adjustment
Decreases/
writedowns
Accumulated
amortisation
31/12/2001
12.257
(41)
2.363
14.579
12.257
(41)
2.363
14.579
10.147
272
10.419
0
12
12
7.556
117
7.673
0
3
3
(7)
0
(7)
17.696
404
18.100
396
2.939
0
70
51
1.801
0
5
0
0
447
4.815
3.335
70
1.852
5.262
Trademark
53.477
5.576
59.053
Trademark
53.477
5.576
59.053
Goodwill
9.104
88
2.214
Goodwill
9.104
88
2.214
11.408
0
11.408
239
144
(2)
381
239
144
(2)
381
1.332
395
3.339
3.028
0
404
2.882
53
11.433
5
0
1
1
0
0
0
1
8
614
0
1.884
0
0
405
119
18
3.040
(2)
0
0
0
0
0
0
0
(2)
(6)
0
0
0
0
0
0
0
(6)
1.943
395
5.224
3.029
0
809
3.001
72
14.473
100.264
137
22.862
(15)
123.256
Joint ventures
Marketing expenses
IPO costs
Banking expense
Bond expenses
Non competition agreement
Original debt capacity
Reproduction plant
Other
TOTAL
DUCATI GROUP
Consolidated financial statements as of December 31, 2001 - Attachment 2 - first part
Movements in property, plant and equipment are detailed in the table below
(Euro/1000)
Historical
cost
31/12/2000
Reclassifications
Increases Decreases
Historical
cost
31/12/2001
Net book
value
31/12/2000
Net book
value
31/12/2001
Buildings
Temporary constructions
29.130
147
281
2
458
48
160
(160)
30.029
37
25.588
119
25.453
27
29.277
283
506
30.066
25.707
25.480
5.615
9.724
130
202
2.320
2.614
253
722
320
46
75
(53)
(199)
0
0
8.604
12.459
176
530
4.379
5.517
68
75
6.442
5.000
95
115
15.671
5.187
1.163
(252)
21.769
10.039
11.651
Miscellaneous equipment
Testing instruments
18.734
2.400
396
14
5.669
383
(65)
(3)
24.734
2.794
7.737
1.570
9.405
1.272
21.134
410
6.052
(68)
27.528
9.307
10.677
1.968
1.681
1.010
231
891
56
469
4
0
18
325
506
210
976
607
(40)
(333)
(648)
(26)
(64)
2.309
2.323
576
1.181
1.452
1.184
821
748
98
690
1.271
843
168
898
1.155
Other assets
5.781
547
2.624
(1.111)
7.841
3.541
4.335
Construction in progress
Advances to suppliers of fixed assets
1.212
1.304
(1.129)
(701)
945
802
0
0
1.028
1.405
1.212
1.304
1.028
1.405
2.516
(1.830)
1.747
2.433
2.516
2.433
74.379
4.597
12.092
(1.431)
89.637
51.110
54.576
General plant
Specifi plant
Furnaces
Robotised work stations
TOTAL
DUCATI GROUP
Consolidated financial statements as of December 31, 2001 - Attachment 2- second part
(Euro/1000)
Accumulated
amortisation
31/12/2000
Reclassifica-
Buildings
Temporary constructions
3.542
28
3.570
General plant
Specifi plant
Furnaces
Robotised work stations
1.236
4.207
62
127
Increases
Decreases
Accumulated
amortisation
31/12/2001
tions
97
6
905
7
1
0
31
(31)
4.576
10
103
912
4.586
111
1.433
0
253
829
1.973
19
35
0
0
0
0
(14)
(154)
0
0
2.162
7.459
81
415
5.632
1.797
2.856
(168)
10.117
Miscellaneous equipment
Testing instruments
10.997
830
22
3
4.371
689
0
0
(61)
0
15.329
1.522
11.827
25
5.060
(61)
16.851
784
860
262
133
201
20
192
75
0
11
251
428
194
157
140
0
0
0
0
2
(17)
0
(123)
(7)
(57)
1.038
1.480
408
283
297
2.240
298
1.170
(204)
3.506
0
0
0
0
0
0
23.269
2.223
9.998
(433)
35.060
Other assets
Construction in progress
Advances to suppliers of fixed assets
0
0
DUCATI GROUP
Consolidated Financial statements as of December 31, 2001 - Attachment 3
( Euro/1000)
OTHER PROVISIONS FOR RISKS AND CHARGES
Balance as of
01/01/2001
9.437
Increases
Exchange
adjustments
8.505
Uses
(29)
8.825
3.305
469
27
172
110
13
13.383
8.642
(9.088)
3.305
Ohter provisions
Balance as of
31/12/2001
(354)
142
(114)
181
(16)
(9.556)
12.453
DUCATI GROUP
Consolidated financial statements as of December 31, 2001 - Attachment 4
( Euro/1000 )
Summary of movements in group share of consolidated shareholders' equity
Balance as of
31/12/1999
Share capital
81.741
23.566
Revaluation reserve
24.238
Legal reserve
Statutory reserve
82
Allocation of
prior period
profit (loss)
Reclassifications
(1.736)
Profit
for
period
Balance as
of
30/06/00
119
82.420
(560)
46
21.316
24.238
106
188
146
146
2.456
Extraordinary reserve
1.008
1.812
(681)
10.301
10.483
(10.483)
143.039
Capital
increases
560
Foreign currency
translation account
Movements in
the translation
reserve
840
3.296
0
2.820
9.620
840
10.553
10.553
165
10.553
154.597
DUCATI GROUP
Consolidated Financial Statements as of December 31, 2001 - Attachment 5
(Euro/1000)
Analysis of motorcycles sold in the principal geographic areas, by value and quantity
31/12/2001
%
Valori
31/12/2000
%
Quantit
Valori
Quantit
Italy
22,7%
29,1%
23,4%
31,0%
Germany
11,7%
11,2%
12,6%
12,4%
United Kingdom
8,1%
7,0%
6,0%
5,2%
France
8,2%
9,5%
7,8%
9,0%
Rest of Europe
11,2%
12,7%
11,4%
12,1%
USA
23,3%
17,0%
26,9%
19,6%
Japan
10,3%
8,3%
6,8%
4,9%
Australia
2,5%
2,8%
3,0%
3,3%
2,1%
2,3%
2,1%
2,5%
100,0%
100,0%
100,0%
100,0%
Total
DUCATI GROUP
Euro/1000
CONSOLIDATED FINANCIAL STATEMENTS AS OF December 31, 20001 - Attachment 6
(Euro/1000)
Movements relating to the deferred tax provision and tax credits for deferred tax assets of Italian and foreign companies
Opening balanceIncrementi
Other
Deferred tax Decrementi
C/E
Deferred tax
C/E
movements provision
provision
Increases
on
France
Decreases
01/01/2001
shareholder'equity
Tax rate
adjustment
C/E
Deferred taxes
Accelerated amortisation
intangible fixed assets
Total deferred taxes
(12.728)
(12.728)
(7.364)
(7.364)
(20.092) L/T
(20.092)
3.626
7.395
5.648
1.220
1.239
948
1.203
19.111
946
(2.133)
141
(141)
3.114
4.572
S/T
5.262
S/T
7.009
S-M/T
2.187
L/T
(996)
66
(3.129)
19.096
-
6.383
(4.250)
(3.129)
Opening balanceIncrementi
Other
Deferred tax Decrementi
C/E
Deferred tax
C/E
movements provision
provision
Increases
on
France
Decreases
1.01.01
shareholder'equity
Stautory provisions
reversed for DNA purposes
1.011
1.380
Tax rate
adjustment
Closing balance
Tax credits for
deferred tax assets
30.06.01
C/E
71
2.462
270
(79)
(8)
(333)
126
(27)
(996)
(20)
250
(420) S-M/T
102
S/T
682
S/T
681
1.328
2.061
67
(380)
3.076
7.711
(2.189)
67
(3.509)
2.080
S/T
DUCATI GROUP
CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2001 - Attchment 7
Reconciliation between tax charge deriving from the financial statements and theorical tax charge
(Euro/1000)
IRPEG
36%
Total
7.001
(15.764)
3.684
13.315
Total
16.999
(9.988)
1.374
Total
8.385
1.718
10.103
(5.970)
Taxable income
Theorical current taxes
4.133
(1.488)
DIT Benefit
(965)
(178)
Deferred taxes
Deferred tax assets
Total
tax
19.448
IRAP
701
2.496
3.197
15.466
922
16.388
(10.349)
(341)
(10.690)
5.818
3.077
8.895