From a collaboration
with "Società Quotate"

The comparison over homogeneous values with 1997 results highlights a reduction of incomes by 25.322 billions lire equal to the 6,50 % facing the greater incomes coming from the sale of more advertising spaces for 57.000 billions lire equal to 13% nearly. The whole "incomes" (including many items) better with respect to 1997 by 33.000 billions lire (+ 3,97%). A result surely not satisfying whom expected from the Group a more 'brilliant" consumptive. The edition of the weekly "l'Espresso" did not stand, even if showing a minor decrease with respect to 1997, and even less it stood the edition of "la Repubblica" (-6%). Explanations given by administrators do not change the consumptive data that is the one that matters. In 1998 it did not lack important acquisitions as the control of the mastheads "Il Piccolo" of Trieste and the "Messaggero Veneto" of Udine, for 125 billions. About the radio field the editing company Italia Radio has entered the group, achieving this way three radio concession within national territory: Radio Deejay, Radio Capital and the new acquisition Italia Radio. The three broadcasting stations are concentrated into the Elemedia S.p.A., company of new establishment. In the Group, it seems to notice the lack of a vision bringing again to unity. The editing activity articulates into autonomous activities, while the "Centro", deals with the opportunities presented by market to get other 'territory' spaces even when they do not offer satisfying margins of profitability. The promotion activity is organized by supplying cassettes, compact disks, root maps, etc., by which it is attempted to "gain " occasional readers, that are normally lost if ceasing promotions. If it is true that just that makes competition but it is not sure that the "trouble shared " is a " trouble halved ". The ROE has increased from the 7,6% to 9,3% level and so it is not yet satisfying. The ROE underlines the need to go on with projects concerning reorganisation, but mainly to make more profitable the editing activity leaving traditional schematisation. Marco Marcello - Managing Director - has stated to whom has made him notice that profitability is low: if a ROE less than 10% would have been unsatisfying the shareholders must have sold their own shares! Maybe Marco Marcello must remember that in April 1999 the shareholders registered in the book of partners were more than 1.600 and by now they are less than 700 ! In 1994 the Espresso' s shareholders were 1.744 and those of "La Repubblica" 1.823. Today, after 5 years, the number has reduced to a sixth. Marco Marcello is maybe too busy with the "quotidian" to be interested to the shareholders' "liking". Evidently it's enough the approval of the majority shareholders that are Carlo Caracciolo and Carlo De Benedetti. But the "Ingegnere" is "only" one of the 16 administrators composing the Board of Directors. In the executive committee there are his son Rodolfo and Franco Girard who has earlier resigned from the Board of Directors of the Olivetti for the charges due to the omnipresence of De Benedetti in the companies. Another pluri-present in the Group (and so in the Espresso) is the advocate Vittorio Ripa di Meana who benefits - rightly - from adequate compensations for the professional practise he carries on. At the meeting on 22nd , 7 (seven) shareholders attended: there were not De Benedetti (father and son) and Girard among the administrators. An absence that cannot be without motivation. At the meeting the De Benedetti were not present, but it weren't too and at all the representatives of the controlled companies editing the local mastheads: reporters, shareholders, managers. Carlo Caracciolo explained he deemed these absences normal at all. What could he say? That the absence of the "owners" and that of the "controlled" pointed out a "substantial" detachment? Representing a merely economic relationship lacking of "spirit" of the Group? The day after the meeting the press office of the Editoriale must have collected the "reviews" of the 19 mastheads of the Group and submit them to Carlo Caracciolo and Marco Marcello: maybe they would have something to reflect upon!

GIM S.p.A.

I piatti di carta

The Stock Exchange listed companies have 'discovered' the press conferences, that is the "presentation" to analysts. Even the administrators, well-know for being "hopeless" at "communication" have become aware that they must "show themselves" and face what is "external" to their "conclave". Luigi Orlando - President of the GIM since ever- was one of the more " discreet " personages. He was discreet as influential and attended to component within the boards of directors leading the so-called "finance salons", he was discreet in presiding the meetings of the "Gruppo Orlando". Times have passed (and they were very high times!) so Luigi Orlando and the Managing Director Giorgio Cefis have called the press to state, as Sergio Bocconi has written on the "Corsera" "in a climate of <> we have eliminated the indebtedness ballast. The Group has carried out the restructuring, it has reached a target and so now it can to go away again ". These statements - the day after they were given- have covered all the newspaper economical pages with the GIM headlines. But ... is it just so? More than "statements " indeed the analysis of a management must keep to the results in the Income Account and the Financial Statement. As regards to the indebtedness the consolidated balance highlights that the "fixed assets" amount to L. 1.356,7 billions, the "Invested Capital" to L. 1.810,0 billions - and that the coverage proceeds from the "Net Assets" by L. 348,2 billions, from "Third party assets " by L. 667,8 billions, and from "Financial Indebtedness " by L. 794 billions. So deeming the problem as "solved" is an interpretation rather "personal " and "optimistic". So it is a fact that, after having sold all what it was possible (really the historical seat on Borgo Pinti is still on market and haven't yet found the connoisseur) the indebtedness has been only halved. Carlo Cefis - as a prove of efficiency - has adopted a cost containment policy bordering on the ludicrous - for example to convene a meeting of the shareholders he has made it published on a regional edition newspaper and with microscopic types so to save. Carlo Cefis cashes one billion and 367 millions as remuneration from the Orlando Group. Maybe anybody in place of him would have given up to a little handful of millions (maybe ten?) but would have prevented a choice surely not contributing to safeguard the image of that "emblem" formerly featuring the Orlando Group, starting from the chief office in an historical palace to the acknowledged prestige of an industrial dynasty already got to the sixth generation. Applying for the microscopic save to communicate to one's own shareholders the meeting to present the balance, is as giving an image of a company being reduced to the paper dishes to avoid the detergent expenditure: a penalizing choice for the Group, neither suiting a Managing Director paid far more than a billion. Controlling costs is surely a sage policy if started from the top and then right balanced. Nevertheless, to get back to numbers, the ROE of the "balanced conduct " is less than 4%. Only Cefis can define as "balanced " an industrial "Participation Holding " with this profitability level. The GIM has introduced the 1998 consumptive extolling the increase of profits passed from 2.047 billions in 1997 to 12.838 billions in 1998. But reading well the "accounts" it is to notice that to form this profit it concurred "appreciation" regarding paper securities sale for L. 7.653 billions (+ 4,937 respect with 1997) It is also to be noticed that the GIM, with a staff composed by 1 (one) manager and 3 (three) employees, is paid by the controlled companies 4.831 millions ( 800 millions more than in 1997 ) for "for financial, fiscal and insurance consulting ". From the Europa Metalli SpA in 1998 it has received 2.700 millions while what collected from SMI SpA and Parva SpA goes from 100 to 500 millions. All the more a disconcerting overcharge so as Giorgio Cefis receives rich compensations from the controlled. On conclusion the 1998 GIM balance points out only that the path is long and that, notwithstanding all the sales, the indebtedness is on remarkable levels and that in the Aggregate a staff of 8.321 units has produced a billing of 3.764 billions with an income of 42 billions. To balance a Group from the indebtedness and to increase profitability it's evident it's not enough the "paper dishes ".  Leadership Medica^®  
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