02. PRISA, A GLOBAL GROUP ANNUAL REPORT 2011 offering the appropriate services and products to our customers, are continuously monitored by the Group’s Sales Management Department, by a content committee, by a committee specialized in promotional policy and by a publicity monitoring committee. It is worth noting that the Group’s revenues are less dependent than those of other companies in this sector on the ups and downs of the advertising cycle. This is due to the input from the publishing arm, Santillana, and, above all, on the revenues acquired by the pay-per-view audiovisual businesses. Subscription revenues, derived from pay-per-view digital television, made up 32.35% of the Group’s operating revenues in 2010. Meanwhile, the Group’s other business units frequently coordinate to evaluate and participate in new business opportunities, through the Transversal Business Committee. c. Risk control related to financial management Finance Risks The Group’s financial obligations as of December 31, 2010, are detailed in “Financial Debt” in PRISA’s annual consolidated report for 2010. This Group’s debt as of December 31 was 3,342 million euros. The Group’s level of debt brings with it certain financial obligations such as servicing the interests and principal, as well as operational limitations as laid out in the financing contracts signed. In order to meet these obligations, in 2010 the Group finalized its debt restructuring and reached a financing agreement with its banks that imply certain modifications in the terms and conditions of loans, such as a deal to extend maturity on the Group’s bridging loan and several bilateral credit lines till May 19, 2013. The Group also restructured its debt through a capital increase which has led to an injection of 650 million euros. Both moves have reduced the financial leverage of the Group and given the Group more room for manoeuvre. The management of short-term debt follows a detailed calendar of maturity dates as well as the maintenance of lines of credit and other financial instruments that enable the Group to meet all foreseen financial commitments, in the short, medium and long term. The Group has set up a centralized treasury management system and a Cash, Debt and Capex Committee and carries out weekly assessments and projections, in this regard, which enable us to optimize our available resources in order to service the debt. Exposure to Interest Rate Risks The Group is exposed to interest rate fluctuations, since all of its debt with financial entities is at variable interest rates. PRISA therefore takes out interest rate cover, basically by means of contracts that limit exposure to the maximum rates of interest. Exposure to exchange rate risks The Group is exposed to exchange rate fluctuations mostly through the financial investments it has made in Latin American companies and the returns on those investments. In 2010 the revenues and consolidated results from the International area and Latin America made up 28.07% and 20.21% respectively of the Group’s overall figures. PRISA is also exposed to exchange rate fluctuations since it maintains debts with financial entities in different countries. As of December 31, 2010, the weight of currencies other than the euro in the Group’s debt was 1.36%. The objective is always to reduce this risk, and the Group, in line with its forecasts and budget, follows the practice of taking out exchange rate cover (chiefly by insurance, by buying a forward contract in order to hedge against exchange rate variability). Exposure to Risks Related to the Cost of Paper The Group is exposed to the possibility of variations in its results due to fluctuations in the price of paper, the essential raw material in some of its production processes. The Group has set up a strategic coverage program through which, by means of long-term contracts, it can cover the price of a given percentage of the volume of paper to be consumed over a certain period of time. In 2010 paper consumption made up 9.51% of the group’s purchases. 29