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FINANCIAL STATEMENTS AND EXPLANATORY NOTES
332
| 2012 annual report prysmian group
Details about Other expenses are as follows:
Professional services mainly refer to outsourcing costs
(particularly for IT and personnel administration services)
of Euro 8,769 thousand (Euro 12,796 thousand in 2011),
costs for the use of personnel seconded from other Group
companies of Euro 7,546 thousand (Euro 3,492 thousand
in 2011), costs incurred to manage the patents portfolio of
Euro 2,567 thousand (Euro 2,274 thousand in 2011), research
and development costs of Euro 3,420 thousand (Euro 3,662
thousand in 2011) and costs relating to the receivables
securitization programme of Euro 983 thousand (Euro 952
thousand in 2011).
Professional services also include the compensation of
the directors and statutory auditors of Prysmian S.p.A.,
respectively of Euro 430 thousand (Euro 350 thousand in 2011)
and Euro 47 thousand (unchanged on 2011), and the fees of
the independent auditors of Euro 772 thousand (Euro 1,600
thousand in 2011).
IT costs report a significant increase mainly due to the
centralisation of costs previously incurred by the former Draka
Group’s parent company.
Maintenance services mainly refer to software, electronic
equipment and motor vehicles.
Operating and other costs mainly refer to costs incurred for
promotional activities and attendance at exhibitions and trade
fairs. The decrease is mainly attributable to the costs of Euro
5,289 thousand, incurred and recharged in 2011, in connection
with a project started up by the Finnish subsidiary.
Rental costs primarily refer to rent of Euro 2,007 thousand
for the Company’s office building (Euro 1,958 thousand
in 2011) and rent of Euro 2,056 thousand for the premises
and laboratories used by the Company’s Research and
Development department (Euro 1,945 thousand in 2011).
Non-recurring other expenses mostly relate to the addition
of Euro 589 thousand to the estimated provision for the
Antitrust investigation started by the European Commission
and to Euro 1,373 thousand in costs incurred in the year for the
Draka Group’s integration.
Finance costs are detailed as follows:
18. FINANCE INCOME AND COSTS
(in thousands of Euro)
2012
2011
Interest on borrowings
15,595
11,597
Interest on bond
21,000
21,000
Amortisation of bank and financial fees and other expenses
6,989
6,303
Interest costs on employee benefits
240
227
Other bank interest
39
31
Costs for undrawn credit lines
3,444
2,633
Sundry bank fees
3,726
9,861
Other
7
127
Finance costs
51,040
51,779
Foreign currency exchange losses
213
204
Total finance costs
51,253
51,983
