Other information

45. Other information

Compensation to directors and statutory auditors

Compensation to directors and statutory auditors of Pirelli & C. S.p.A. to carry out these functions also in other companies included in the scope of consolidation is as follows:

(in thousands of Euros)

12/31/2007

12/31/2006

Directors

13,620

11,784

Statutory auditors

266

368

Total

13,886

12,152

Employees

The average number of employees of the companies included in consolidation, by category, is the following:

2007

2006

Executives and staff

8,396

7,579

Blue-collar

18,426

16,871

Temporary workers

3,958

3,713

Total

30,780

28,163

Compensation to audit firms

The following schedule, prepared in accordance with art. 149 – duodecies of the Consob Regulation of Issuers, presents the fees paid for the year 2007 for the audit services and services other than audit rendered by the audit firm of PricewaterhouseCoopers S.p.A. and by the entities belonging to its network:

(in thousands of Euros)

Audit services

Pirelli & C. S.p.A.

373

   
 

Subsidiaries

3,765

4,138

86%

Certification services

Pirelli & C. S.p.A.

-

 

Subsidiaries

178

178

4%

Tax consulting services

Pirelli & C. S.p.A.

-

   
 

Subsidiaries

351

351

7%

Services other than audit

Pirelli & C. S.p.A.

-

   
 

Subsidiaries

128

128

3%

 

Total

4,795

100%

Exchange rates

The main exchange rates used for consolidation purposes are as follows:

(local currency against Euros)

Period-end

Change in

Average

Change in

12/31/2007

12/31/2006

%

2007

2006

%

British Pound

0.7334

0.6715

9.22%

0.6843

0.6818

0.37%

Swiss Franc

1.6547

1.6069

2.97%

1.6426

1.5729

4.43%

Slovakian Koruna

33.5830

34.4350

(2.47%)

33.7717

37.2336

(9.30%)

American Dollar

1.4721

1.3170

11.78%

1.3702

1.2555

9.13%

Canadian Dollar

1.4449

1.5281

(5.44%)

1.4686

1.4236

3.16%

Brazilian Real

2.6075

2.8158

(7.40%)

2.6695

2.7334

(2.34%)

Venezuela Bolivar

3,165.0150

2,831.5500

11.78%

2,945.8870

2,699.3680

9.13%

Argentinean Peso

4.6356

4.0327

14.95%

4.2693

3.8601

10.60%

Australian Dollar

1.6757

1.6691

0.40%

1.6348

1.6670

(1.93%)

Chinese Renminbi

10.7516

10.2812

4.58%

10.4227

10.0089

4.13%

Singapore Dollar

2.1163

2.0202

4.76%

2.0632

1.9939

3.48%

Egyptian Pound

8.1039

7.5135

7.86%

7.7220

7.7220

7.26%

Net financial position

(non-GAAP measure)

(in millions of Euros)

12/31/2007

12/31/2006

of which
related parties

of which
related parties

Borrowings from banks and other financial institutions - current

854

3

1,522

 

Financial accrued liabilities and deferred income - current

46

 

60

 

Cash and cash equivalents

(2,058)

 

(270)

 

Securities held for trading

(114)

 

(119)

 

Financial receivables - current

(19)

(16)

(27)

 

Financial accrued income and prepaid expenses - current

(18)

 

(7)

 

Borrowings from banks and other financial institutions - non-current

795

 

1,382

 

Payables to shareholders for capital reduction

826

 

 

Net financial debt

312

 

2,541

 

Financial receivables - non-current

(609)

(520)

(553)

(333)

Financial accrued income and prepaid expenses - non-current

(5)

 

(8)

 

Total net financial (liquidity)/debt position

(302)

 

1,980

 

The main nonrecurring events which had an impact on the net financial position are the following:

  • proceeds, net of transaction costs, of Euros 3,323 million on the sale of the entire investment in Olimpia S.p.A.;
  • reduction in share capital (Euros 826.3 million) which led to the recognition of a payable to shareholders;
  • investments in funds and Baubecon by Pirelli & C. Real Estate (Euros 110.3 million);
  • purchase of Pirelli & C. Real Estate S.p.A. shares (Euros 54.3 million);
  • sale of Prysmian warrants to Goldman Sachs International (Euros 91 million).