Business Register on Enterprise Groups The new Italian Business Register on Enterprise Groups IT Project and realisation: Augusto Pallante (ISTAT) pallante@istat.it Franco Tulli (ISTAT) frtulli@istat.it Presented by: Enrica Morganti (ISTAT) enmorgan@istat.it 20° Roundtable on Business Survey Frames Wiesbaden 21 – 26 October 2007

Presentation: Why a new IT procedure Main elements Structure of the procedure Description of the first macro-phase Description of the second macro-phase Some results testing OLD/NEW

WHY A NEW IT PROCEDURE Need to register all foreign legal units (both foreign GH and foreign affiliates) Need to have the BG on EG as an integrated part of the BR SYSTEM Need to reduce processing time Need to reduce manual corrections to programs and standardise them Need to improve the overall quality

INPUTS: 3 ADMINISTRATIVE SOURCES BALANCE SHEETS QUOTED COMP. SHAREHOLDINGS OF NOT QUOTED

Record types used by the procedure are only two: BALANCE SHEETS 19 INPUT FILES – ASCI WITH FIXED RECORD LENGTH BY RECORD TYPES Record types used by the procedure are only two: type 1 containing registry information of companies (fiscal code, name, address, nationality, etc.) type 5 containing shareholdings betwwen couples of components

NATIONAL COMMITTEE FOR QUOTED COMPANIES 4 INPUT FILES IN EXCEL FORMAT: 2 CONTAINING CONTROL LINKS (QUANTITATIVE DIRECT AND QUALITATIVE) 2 CONTAINING REGISTRY INFORMATION ABOUT BOTH JURIDICAL PERSONS AND PHISICAL PERSONS

COMPANIES SHAREHOLDINGS LARGEST INPUT FILE 15 FILES – ASCI WITH VARIABLE STRUCTURE AND VARIABLE RECORDS TRACK ACCORDING TO TYPE RECORDS (9) EXTREMELY COMPLEX DESCRIPTIVE STRUCTURE OF THE FILE FOR EACH DECLARING COMPANY ALL INFORMATION REGISTRY INFORMATION, SHAREHOLDINGS AND SHAREHOLDERS, KIND OF PROPERTY RIGHTS, SELLING/BUYING OF SHARES AND PROPERTY RIGHTS AMONG SHAREHOLDERS ARE ALL RECORDED WITHIN THE SAME CLUSTER RELATED TO THE DECLARING COMPANY.

BASIC ELEMENTS COMPONENTS CONTROL LINKS

COMPONENTS RESIDENT NOT RESIDENT PHISICAL PERSON JURIDICAL PERSON (VERY RARE)

CONTROL LINKS QUANTITATIVE QUALITATIVE DIRECT (immediately available) INDIRECT (to be reconstructed) QUALITATIVE (to be decodified, since it could be either direct or indirect)

1° MACRO-PHASE: Loading registry information and assigning the unique ID_DB_CODE >>> DB_REGISTRY_COMPONENTS Loading all the BASIC LINKS >>> DB_GROUPS_LINKS Algorithm of indirect control and selection of ALL CONTROL LINKS >>> DB_GROUPS_CONTROL

N. OF INPUT RECORDS BY SOURCE AND BY KIND OF COMPONENT  Italian Foreign Total Comp. Comp. Comp. ______________________________________________ BALANCE SHEETS 705.226 33.241 738.467 STOCK EXCHANGE 6.156 7.443 13.599 SHAREHOLDINGS 2.157.299 11.241 2.168.540 _______________________________________________ TOTAL 2.868.681 51.925 2.920.606

1 – COMPONENTS IDENTIFICATION 1° MACRO-PHASE - Loading registry information and assigning the unique ID_DB_CODE >>> DB_REGISTRY_COMPONENTS 1 – COMPONENTS IDENTIFICATION RESIDENT NOT RESIDENT ASSIGNING THE UNIQUE ID_DB_CODE

2 – ASSIGNING ID CODE TO RESIDENT UNITS 1° MACRO-PHASE - Loading registry information and assigning the unique ID_DB_CODE >>> DB_REGISTRY_COMPONENTS 2 – ASSIGNING ID CODE TO RESIDENT UNITS FISCAL CODE CORRECT ? SEARCH ON THE ALREADY EXISTING ID_CODE IN THE DB YES NOT REJECTED NO YES SEARCH AS VAT CODE FOUND ? FOUND? YES NOT SEARCH ON DB ASSIGNING GENERATING A NEW ID_DB_CODE FOUND ? NOT UPDATING THE LIST OF ALL ID_DB_CODE YES

3 – ASSIGNING ID CODE TO NOT RESIDENT UNITS 1° MACRO-PHASE - Loading registry information and assigning the unique ID_DB_CODE >>> DB_REGISTRY_COMPONENTS 3 – ASSIGNING ID CODE TO NOT RESIDENT UNITS NAME AND NATIONALITY ASSIGNING SEARCH ON DB_WORDS_GROUPS FOUND? NOT GENARATING A NEW ID_DB_CODE UPDATING THE LIST OF ALL ID_DB_CODE SI

BASIC LINKS (NOT YET CONTROL LINKS) 1° MACRO-PHASE - Loading all the BASIC LINKS >>> DB_GROUPS_LINKS BASIC LINKS (NOT YET CONTROL LINKS) Component 1 Component 2 OWNS < 50% > 50% MINORITY SHAREHOLDINGS DIRECT CONTROL LINK

BASIC LINKS (Quantitative) X1 X2 A B C D 40% 30% 60% 70%

CONTROL LINKS (Qunatitative) X1 X2 A B C D 40% 30% 1

2° MACRO-PHASE: Selection of CONTROL LINKS Within each source Among sources (priority rules) Threatment of INCONCISTENCIES More than one control (XcB and YcB) Opposite control (XcY and YcX) Building up PROVISIONAL GROUPS Assigning HIERARCHICAL LEVEL Manual checks and recycling iterations of 2° MACRO-PHASE Graphic application Historical information kept for corrections >>>DB_GROUPS_CONTROLS>>>DB_GROUPS_CORRECTIONS >>>DB_GROUPS_CRRECTIONS>>>DB_GROUPS_CONTROLS END Loading CORRECT GROUPS >>> DB_GROUPS

MERGING OF CONTROL LINKS 2° MACRO-PHASE: Selection of CONTROL LINKS MERGING OF CONTROL LINKS 11,3% 0,9% 9,4% 0,4% 0,1% 75% 2,9%

From DB_GROUP_LINKS To DB_GROUPS_CONTROLS N. OF RECORDS BY SOURCE From DB_GROUP_LINKS To DB_GROUPS_CONTROLS DB_GROUP_LINKS DB_GROUPS_CONTROLS BALANCE SHEETS 366.711 93.157 STOCK EXCHANGE 23.755 18.290 SHAREHOLDINGS 2.120.130 358.393 __________________________________________________________ TOTAL 2.510.596 469.840

NUMBER OF GROUPS INITIAL TOTAL GROUPS 273.784 ____________________________________________________ IMPROPER GROUPS (EXCLUDED) 199.797 NON CORRECT GROUPS (A) 225 INCOMPLETE LEVEL GROUPS (B) 623 CORRECT GROUPS (C) 73.139 FINAL GROUPS (A+B+C) 73.987 ________________________________________________________________

DB_GROUPS_CORRECTIONS Manual checks and recycling iterations of 2° MACRO-PHASE Graphic application DB_GROUPS_CORRECTIONS TIP_COD_ PARTECIPATED NOT NULL VARCHAR2(3) ID_COD_PARTECIPATED NUMBER(9) TIP_COD_ PARTECIPANTING ID_COD_PARTECIPANTING YEAR NUMBER(4) FLAG_CHOICE VARCHAR2(1)

SVILUPPO PL/SQL - FORMS 8 Package 24 Procedure 3 Funzioni 6 Maschere grafiche principali 8 Maschere grafiche di supporto 7 Tabelle 4 Sequence

SVILUPPO PL/SQL - FORMS 8 Package 24 Procedure 3 Funzioni 6 Maschere grafiche principali 8 Maschere grafiche di supporto 7 Tabelle 4 Sequence

SVILUPPO PL/SQL - FORMS 8 Package 24 Procedure 3 Funzioni 6 Maschere grafiche principali 8 Maschere grafiche di supporto 7 Tabelle 4 Sequence

SVILUPPO PL/SQL - FORMS 8 Package 24 Procedure 3 Funzioni 6 Maschere grafiche principali 8 Maschere grafiche di supporto 7 Tabelle 4 Sequence

Groups, units and employees

OLD PROCEDURE Size class Groups Act. LU Employment n % 1-19 39,279   n % 1-19 39,279 63.7 67,502 47.1 247,017 4.9 20-99 16,070 26.0 37,978 26.5 712,253 14.0 100-499 5,066 8.2 19,302 13.5 1,021,982 20.1 500-4999 1,193 1.9 12,418 8.7 1,488,962 29.3 5000 e oltre 89 0.1 6,248 4.4 1,609,571 31.7 TOTALE 59,989 100.0 138,936 5,123,169

NEW PROCEDURE Size class Groups Act. LU Empl. n % 1-19 38,081 63.5   n % 1-19 38,081 63.5 65,228 46.9 239,838 4.7 20-99 15,575 26.0 36,344 26.2 691,750 13.5 100-499 5,029 8.4 18,802 1,023,556 20.0 500-4999 1,217 2.0 12,440 9.0 1,504,094 29.4 5000 e oltre 87 0.1 6,122 4.4 1,663,932 32.5 TOTALE 61,697 100.0 143,448 5,079,786

GROUP HEADS TOTAL UNITS

MERGE BETWEEN OLD NEW

PROCESSING TIME Loading sources: Balance Sheets 43’ Quoted companies 14’ Companies Sharehold. 2h45’ 1° MACROFASE (3 fasi) 9h 36’ ------------------------------------------------------------------------------- 2° MACROFASE (3 fasi) 2h 63’ 1° CICLO

PHISICAL SPACE DB_REGISTRY_COMPONENTS 478 MB DB_GROUPS_LINKS 109 MB DB_GROUPS_CONTROLS 52 MB DB_WORDS_GROUPS 20 MB DB_GROUPS 92 MB

DEVELOPMENT PL/SQL - FORMS 8 Packages 24 Procedures 3 Functions 6 Main graphical masks 8 Supporting graphical masks 7 Tables 4 Sequences

- END - THANK YOU!