UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 20-F

[ ]	REGISTRATION STATEMENT PURSUANT TO SECTION 12 (b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2006

OR

[ ] 	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from N/A to N/A

OR

[ ] 	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report

Commission file number: 1 - 10230

BENETTON GROUP S.p.A.

(Exact name of Registrant as specified in its charter)

ITALY

(Jurisdiction of incorporation or organization)

VIA VILLA MINELLI 1, 31050 PONZANO VENETO (TV), ITALY

(Address of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class 						 Name of each exchange on which registered
American Depositary Shares					 The New York Stock Exchange

each representing two ordinary shares 

of Euro 1.30 par value each

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report

Ordinary Shares 182,675,492 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.	

	Yes [X] No []

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.	Yes [ ] No [X]

Note-Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.		 Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [X] Accelerated filer [ ]	 Non-accelerated filer [ ]

Indicate by check mark which financial statement item the registrant has elected to follow.	 Item 17 [X] Item 18 [ ]

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).	 Yes [ ] No [X]
**Table of contents

PAGE	ITEM

3	Forward-Looking Statements

	References

4	Part I

5	1. 	Identity of Directors, Senior Management and Advisers

	2. 	Offer Statistics and Expected Timetable

	3. 	Key Information

11	4. 	Information on the Company

20	4A. 	Unresolved Staff Comments

	5. 	Operating and Financial Review and Prospects

39	6. 	Directors, Senior Management and Employees

53	7. 	Major Shareholders and Related Party Transactions

55	8. 	Financial Information

	9. 	The Offer and Listing

56	10. 	Additional Information

69	11. 	Quantitative and Qualitative Disclosures About Market Risk

73	12. 	Description of Securities Other than Equity Securities

74	Part II

75	13. 	Defaults, Dividend Arrearages and Delinquencies

	14. 	Material Modifications to the Rights of Security Holders and Use of Proceeds

	15. 	Controls and Procedures

76	16A. 	Audit Committee Financial Expert

	16B. 	Code of Ethics

	16C. 	Principal Accountant Fees and Services

77	16D. 	Exemptions from the Listing Standards for Audit Committee

	16E. 	Purchases of Equity Securities by the Issuer and Affiliated Purchasers

79	Part III

80	17. 	Financial Statements

168	18. 	Financial Statements

	19. 	Exhibits
** 

				

Forward-Looking Statements**
Certain statements contained in this Form 20-F, including those statements contained under the captions "Information on the Company" and "Operating and Financial Review and Prospects" that are not statements of historical fact, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements can be generally identified by the use of terms such as "believes", "expects", "may", "will", "would", "could", "plans", or "anticipates", the negatives of such terms, or comparable terms. 

In addition to the statements contained in this Form 20-F, the Company (or directors or executive officers of the Company authorized to speak on behalf of the Company) from time to time may make forward-looking statements, orally or in writing, regarding the Company and its business, including press releases, oral presentations, filings under the Securities Act, the Exchange Act or securities laws of other countries, and filings with other stock exchanges.

Such forward-looking statements represent the Company's judgment or expectations regarding the future, and are subject to risks and uncertainties that may cause actual events and the Company's future results to be materially different than expected by the Company or indicated by such statements. Accordingly, no assurance can be given that the results anticipated by the Company, or indicated by any such forward-looking statements, will be achieved.
**References**
Unless the context otherwise requires, the term the "Company" refers to Benetton Group S.p.A. (the Parent Company), and the terms the "Group" and "Benetton" refer to Benetton Group S.p.A. and its consolidated subsidiaries.
** 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART**I

 

 

Item 1: Identity of Directors, Senior Management and Advisers. Not applicable.
** 

Item 2: Offer Statistics and Expected Timetable. Not applicable.
** 

Item 3: Key Information

A. Selected financial data**
The Company publishes its consolidated financial statements in Euro. 

The summary consolidated financial information detailed below for each of the years ended December 31, 2004, 2005 and 2006 has been derived from the Group's audited consolidated financial statements included in Item 17 of this annual report on Form 20-F. The financial information included in this section should be read in conjunction with these audited consolidated financial statements and the notes thereto.

The audited consolidated financial statements from which the summary consolidated financial information has been derived were prepared in accordance with International Financial Reporting Standardsas adopted by the European Commission for use in the European Union (IFRS). In all material respects, they are also in compliance with full IFRS as published by IASB. Accordingly, application of full IFRS as published by the IASB would not result in any changes to Benetton's financial statements. See Note 30 to the audited consolidated financial statements for details of the transition to IFRS.
In 2005 the Group prepared, for the first time, its financial statements under IFRS and the comparative financial statements have been restated from Italian GAAP. 

IFRS differ in some respects to U.S. GAAP. Consolidated net income attributable to the Group and total shareholders equity has been reconciled to U.S. GAAP. For a discussion of the principal differences between IFRS and U.S. GAAP see Note 31 to the Group's audited consolidated financial statements. 
**> Amounts in accordance with IFRS***				 	Year ended December 31,*Key operating data (millions of Euro) *2004*%*2005*%*2006*%
Revenues
1,704
100.0 
1,765
100.0 
1,911
100.0
Gross operating profit
775 
45.5 
770
	43.6 
806
42.2
Contribution margin 
654
38.4 
643 
36.4 
669
35.0
Adjusted EBITDA(1)
312 
18.3 
285 
16.2 
276
14.4
Operating profit
158 
9.3 
157
8.9 
180
9.4
Net income of Shareholders of the Group
109
6.4 
112 
6.3 
125
6.5
Basic earnings per share (Euro) 
0.60 
0.62 
0.69
Diluted earnings per share (Euro)
0.60
0.62
0.68
 

 
*						Year ended December 31,*Key financial data (millions of Euro)*2004*2005*2006
Total assets
2,601 
2,407 
2.561
Net working capital (2)
711 
688 
623
Net financial indebtedness (3)
441 
351 
369
Shareholders' equity attributable to the Group
1.206
1.262
1.319
Minority interests
7
13
22
Share capital
236 
236 
237
Weighted average number of shares outstanding
181,558,811 
181,558,811 
181,868,467
(1) 	Adjusted EBITDA consists of net income before income taxes, financial income, financial expenses and exchange differences, depreciation and amortization, impairment of property plant and equipment and intangible assets, and stock option cost. Adjusted EBITDA in 2004 included the effect of a provision for the closure of a number of stores in France, which, however, continued to operate throughout 2005, thus eliminating the need for the related provision. Adjusted EBITDA is not a measurement of performance under IFRS or U.S. GAAP and Adjusted EBITDA should not be considered an alternative to (a) operating profit or net income (as determined in accordance with generally accepted accounting principles) as a measure of the Group's operating performance, (b) cash flows from operating, investing and financing activities (as determined in accordance with generally accepted accounting principles) as a measure of the Group's ability to meet cash needs or (c) any other measures of performance under IFRS or U.S. GAAP. Adjusted EBITDA is a measure commonly reported and widely used by investors and other interested parties as a measure of a company's operating performance and debt servicing ability because it assists in comparing performance on a consistent basis without regard to depreciation, amortization and impairment charges, which can vary significantly depending upon accounting methods (particularly when acquisitions are involved) or non-operating factors (such as historical cost). Accordingly, this information has been disclosed in this annual report to permit a more complete and comprehensive analysis of the Group's operating performance relative to other companies and of the Group's debt servicing ability. Because not all companies calculate Adjusted EBITDA in the same manner, the presentation of Adjusted EBITDA may not be comparable to the Adjusted EBITDA of other companies.

The following is a reconciliation of net income for the year to Adjusted EBITDA:
*(millions of Euro)*2004*2005*2006
Net income for the year
108
114
128
Income taxes
28
20
31
Financial income
(22)
(24)
(38)
Financial expenses
44
47
56
Foreign currency hedging gains/(losses) and exchange differences
-
-
3
Depreciation and amortization
95
85
84
Impairment of property, plant and equipment and intangible assets
49
50
10
Stock option cost
1
(A)
2
(A)
2
(A)
Provisions for closure of stores/(Release of provisions for closure of stores)
9
(B)
(9) 
(B)
-**Adjusted EBITDA	**312 **285 **276
(A)	Stock option cost is included in "Payroll and related costs" of financial statements in Item 17.

(B) 	Provisions for closure of stores/(Release of provisions for closure of stores) are included respectively in "Other expenses" and "Other income" of financial statements included in Item 17.

(2) 	Net working capital includes trade receivables net of allowances for doubtful accounts, inventories, trade payables, and other non-financial receivables and payables (i.e. VAT receivable and payable, other receivables and payables, company receivables and payables, taxes payable, deferred tax assets, accruals and prepayments, social security and employee payables, receivables and payables for the purchase of non-current assets). 

(3) 	A reconciliation of net financial indebtedness is included in Item 5.B "Liquidity and capital resources".
** 

> Amounts in accordance with U.S. GAAP
*(thousands of Euro except per share amounts and weighted average number of shares outstanding)*Year ended December 31,*2002*2003*2004*2005*2006
Net income
65,513
126,542
106,972
95,981
99,806
Weighted average number of 

shares outstanding 
181,341,018
181,558,811
181,558,811
181,558,811
181,868,467
Earnings per share (1):
Basic and diluted
0.36
0.70
0.59
0.53
0.55
Cash dividend per share (1)
paid in each year
0.41
0.35
0.38
0.34
0.34
Shareholders' equity 
1,096,791
1,150,513
1,191,420
1,231,428
1,276,486
(1) 	Since each ADS represents two ordinary shares, the financial data as it relates to an ADS may be calculated by multiplying the per share data by two.**> Dividends declared and paid
*Year*Dividend per ordinary share (Euro)
2007(1)
0.37
2006 
0.34
2005 
0.34
2004 
0.38
2003 
0.35
2002 
0.41
(1) 	Dividend paid on May 4, 2007.
**> Exchange rates 

The following table sets forth, for each of the years indicated, the high, low, average and year-end exchange rate for converting United States Dollars into Euro based on the Noon Buying Rate in New York City for cable transfers in Euro as certified for customs purposes by the Federal Reserve Bank of New York. The Noon Buying Rates are expressed in USD per Euro 1.00.

 
*Year ended December 31,*High*Low*Average *End of Year
2002
1.05
0.86
0.95
1.05
2003
1.26
1.04
1.13
1.26
2004
1.36
1.18
1.24
1.35
2005
1.35
1.17
1.24
1.18
2006
1.33
1.19
1.26
1.32
 

 

The following table sets forth, for each month during the previous six months, the high and low exchange rate for United States Dollars into Euro based on the Noon Buying Rate in New York City for cable transfers in Euro as certified for customs purposes by the Federal Reserve Bank of New York. The Noon Buying Rates are expressed in USD per Euro 1.00.
*High*Low
December 2006
1.33
1.31
January 2007
1.33
1.29
February 2007
1.32
1.29
March 2007
1.34
1.31
April 2007
1.37
1.34
May 2007
1.36
1.34** 

B. Risk factors

Benetton's business is subject to the following risks:
**> Benetton may not be able to continue to successfully implement its business strategy. Benetton seeks to employ a business strategy that (i) takes advantage of business opportunities that may develop in new geographical areas or business segments; (ii) correctly evaluates market potential; (iii) allocates resources generated from profitable markets to markets with growth potential; (iv) invests globally in specific skills and industries to ensure quality products and processes; (v) protects Benetton's brands, which are essential for successfully competing in the market; and (vi) integrates business models that are best suited to each local market (e.g. license vs. partnership, wholesale vs. retail) in which the Group operates. Failure to continue to successfully implement these elements of its business strategy could have a material adverse effect on the Group's business and results of operations.
**> Benetton's business is subject to competitive pressure. The Group operates in the apparel segment, which is highly competitive in the production, sales and distribution areas. The number of competitors has grown considerably in the last few years as the number of companies manufacturing in countries with a low cost base has increased. To respond to this, the Group maintains a strategic focus on production and organizational efficiency policies related to production decentralization, completion of production cycles in overseas units, and organizational cost reduction. Competition could increase, in particular, in distribution because there are few barriers to entry. Benetton competes with local, national and global department stores, specialty retailers, independent retailers and manufacturing companies, as well as with mail order companies, which use catalogues to target customers. Increased competition could lead to pricing pressure and loss of market share, which would have a material adverse effect on the Group's financial condition and performance. **> Benetton's business is sensitive to changes in customer spending habits. Benetton's business is sensitive to changes in consumer spending patterns and may be affected by, amongst other things, business outlook, interest rates, taxation, local economic conditions, uncertainty over future economic prospects and a shift in discretionary spending towards other goods and services. Consumer preferences and economic conditions may change from time to time in each and every market in which the Group operates. Benetton's future performance will be subject to such factors, which are beyond its control, and there can be no assurance that such factors would not have a material adverse effect on the Group's results of operations.
**> Benetton' business is to some extent sensitive to the weather.For example, an excessively mild winter, may lead to lower sales of higher margin winter products, which may have an adverse effect on the Group's financial condition and results of operations.** > The real estate market for commercial sites is very competitive. The ability of Benetton and its partners to find locations for new stores depends on the availability of adequate buildings and the ability to negotiate terms that are in line with established financial targets. Moreover, the Group must ensure that existing lease agreements can be renegotiated effectively. Failure by the Group to identify and acquire locations for new stores and renew existing lease agreements may have a material adverse effect on the Company's business and results of operations.**> The success of Benetton's strategies is influenced by the response of the sales network. In line with the Group's current business model, there is an incentive scheme in place for Benetton's network of commercial partners. The objective of this policy is to encourage partners to increase their investment capacity in order to open new stores, renew existing ones, and increase their ability to compete on price to the final consumer. The success of this strategy depends on the ability to motivate and incentivize the network by setting specific objectives and monitoring progress on a regular basis. If Benetton's sales partners are not incentivized to increase their investments, this could result in a loss of market share, which could have a material adverse effect on the Group's financial condition and results of operations. Furthermore, linked to the present model of business, there could be significant risks of delayed payments from customers or difficulties in the collection of receivables. 
**> Benetton is exposed to risks linked with its strategies. The Group strives to develop its existing commercial network and strengthen its brand. However, this growth is subject to Benetton being able to: (i) identify suitable markets and locations for new stores; (ii) maintain the service levels expected by customers by organizing and coordinating integrated production/logistics and commercial processes in order to meet the needs of an increasingly complex commercial calendar; (iii) avoid sales and profit margin decrease at third-party managed stores selling Benetton-branded goods when directly-managed megastores are opened in the same areas or shopping districts; (iv) manage inventories effectively; and (v) deliver goods on time. In addition, the Group's systems, procedures, controls, and resources need to be aligned to support its expansion plans. Moreover, there can be no assurance that this strategy will be successful or that the Group's overall net revenues will increase as a result. If the Group is unable to manage its expansion effectively and increase sales, this may have a material adverse effect on the Group's business, financial condition and results of operations. 
**> Benetton's success depends on its ability to anticipate and respond to changing trends. Sales and profitability levels also depend on the ability to anticipate and react immediately to changes in fashion trends and consumer tastes. If Benetton's collections do not meet with customers' approval, the Group will have lower than expected sales, a higher level of discounts, and reduced margins on goods sold. Although Benetton is constantly reviewing emerging consumer preferences, any failure by Benetton to identify and respond to such trends in a timely manner could have a material adverse effect on the Group's business and results of operations.
**> The Group's growth and expansion strategy has led to an increase in fixed and operating costs. To strengthen Benetton's image and market share, Benetton has in recent years invested in directly owned retail stores, although the Group has traditionally distributed its products through a network of independent stores. At the end of 2006, the Group managed around 350 wholly-owned shops in strategic demographic and commercial locations. These retail stores have, however, led to an increase in fixed costs and operating expenses. These investments expose the Group to the additional risk that some of the chosen locations may turn out to be inadequate because of changes in the area's demographic profile or the location of shopping districts. Failure or changes in any areas in which the Group has stores could have a material adverse effect on the Group's business and results of operations.
**> Benetton's future performance depends on its ability to develop its business in emerging markets. The Group is implementing new commercial strategies to develop business, especially in emerging markets. Special emphasis is being placed on certain emerging markets, such as China and India, including through agreements with large-scale retailers for the opening of "stores in stores" in big department stores in the main cities. The Group's initiatives include the creation of new partnerships to manage and develop commercial activities. If Benetton fails to implement its strategy for emerging market growth, it could have a material adverse effect on the Group's financial condition and results of operation.
**> The protection of Benetton's intellectual property rights is subject to risks. To safeguard the rights on the Group's core products that are instrumental in the Group's success and competitiveness, including design, proprietary technologies and manufacturing processes, product and concept research, acknowledged trademarks, Benetton relies on the laws on business secrecy, unfair competition, trade dress, trademarks, patents, and copyrights. Nonetheless, trademark registration requests may not result in effective registrations, and even if registrations are granted, they may be ineffective and could be subsequently invalidated. Moreover, the actions undertaken to protect intellectual property rights may turn out to be ineffective against counterfeiting.~~~~In addition, the Group's know-how may become known to competitors, and Benetton may not be able to fully protect its intellectual property rights. Other companies may also develop products independently which are substantially similar or better to Benetton's, without infringing the Group's intellectual property rights. In addition, in some countries there is no legislation protecting proprietary rights. The already substantial amount of resources allocated to the protection of proprietary rights could be significantly increased should the level of infringement by third parties increase. Furthermore, judgments against Benetton in disputes relating to the Group's proprietary rights may (i) impose the granting of licenses to third parties or the requesting for licenses from third parties; (ii) prevent the production or sale of the Group's products; and (iii) lead to substantial losses. 
United Colors of Benetton, Undercolors, Sisley, Playlife, Killer Loop, and other commercial and service trademarks have been registered or are subject to registration requests with the trademarks and patent offices of many foreign countries and are protected by ordinary legislation. The infringement by others on the Group's trademarks, patents, proprietary technology and other intellectual property could have a material adverse effect on the Company's business and results of operations.
**> The Group is implementing a number of changes to its information technology systems which entail the risk of inaccurate transfer of data, as well as temporary downtime. In accordance with its strategic development plans, Benetton has begun changing and replacing its information technology systems. The changes primarily involve upgrading current business systems, developing system modifications, and purchasing systems with new features. Upgrades and modifications include risks, such as the inaccurate transfer of data and possible system downtime. If the Group is unable to implement the changes to its information technology system or if in the course of such implementation, data is not transferred accurately or if the system downtime cannot be minimized, its business and results of operations could be adversely affected.
**> Benetton's sales and operating income may be influenced by foreign exchange rate and interest rate fluctuations. The Group's sales and operating income will continue to be influenced by foreign exchange rate fluctuations in the sale currencies, which in turn impact the prices of products sold, the cost of sales, and operating income. Foreign currency exchange rate fluctuations relative to the Euro may have an adverse effect on sales, operating income, and the international competitiveness of the production facilities of the various business units. Even an appreciation of the Euro could have an adverse effect on the Group's sales and operating income. While Benetton engages in foreign currency hedging in order to manage its foreign currency exposure, the strategies adopted may not be sufficient to protect operating income from the effects of future exchange rate fluctuations. 

Benetton holds assets and liabilities which are necessary in managing liquidity and financial needs, but are sensitive to interest rate variations. These assets and liabilities are exposed to interest rate risk, which is, at times, managed, to some extent, through the use of derivative financial instruments. Such derivative financial instruments may not be adequate to protect against the negative effects of interest rate fluctuations, which may have an adverse effect on the Group's financial condition and results of operations.
**> Benetton is exposed to risks associated with the international aspects of its business activities. Benetton's business is subject to risks associated with the international aspects of its business, including risks relating to late payments in some countries or, in general, to credit collection difficulties. The business is also exposed to political and economic instability in the countries in which Benetton operates, as well as to changes in legislation, to linguistic and cultural barriers, tariffs or trade barriers, and price or exchange rate controls. If the Group's international operations were not successful, its business and results of operations would be adversely affected.
**> Benetton is exposed to legal and compliance risks. Benetton's business should be operated in a manner that ensures the principal laws of Italy and the other countries in which the Group conducts business are observed, including those governing the activities of listed companies and their related groups (e.g. Italy's Securities Act, the US Securities Exchange Act, Italy's Issuers' Regulations, Regulations of Borsa Italiana S.p.A.) and those governing security, anti-trust and privacy. An unexpected event could interfere with the process of adopting section 404 of the Sarbanes-Oxley Act, forcing management to revise its priorities to ensure prompt compliance. The Group's international presence requires it to keep abreast of developments in various accounting standards and tax regimes to which it is exposed. Any difficulties in prompt compliance with these reporting and other requirements could have a material adverse effect on the Group's share price, financial condition or results of operations.
**> Benetton's ADS holders may face disadvantages compared to an ordinary shareholder when attempting to exercise voting rights.**Holders of American Depositary Shares ("ADS") may instruct the depositary to vote the ordinary shares underlying the ADSs. For the depositary to follow the voting instructions, it must receive them on or before the date specified in the voting materials. The depositary must try, as far as practical, subject to Italian law and the Group's Articles of Association, to vote the ordinary shares as instructed. The depositary is not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that ADS holders may not be able to successfully exercise their right to vote and they may have no recourse if their ordinary shares or other deposited securities are not voted as requested.
**Item 4: Information on the Company

A. History and development of the Company**
Benetton Group S.p.A. is a limited liability company (Società per Azioni) organized and operating under the laws of Italy. It was established on March 2, 1965 as a partnership by the Benetton family in Ponzano Veneto, Italy. It was reorganized as a limited liability company in 1978. The Company then, in a corporate reorganization effective in December 1985, adopted the name Benetton Group S.p.A. and the type of joint stock company. Prior to June 1986, the Company was wholly-owned by the Benetton family. In June 1986, shareholders affiliated with the Benetton family sold shares representing approximately 11% of the ordinary shares to the public in Europe. (The Company received no proceeds from such offering). The Benetton family initiated the public offering of such ordinary shares in order to establish a liquid public market for the Company's ordinary shares and to facilitate the Company's access to the international capital markets. 

In June 1989, the Company made a public offering of 7,000,000 American Depositary Shares ("ADS"), each representing the right to receive two ordinary shares and listed the ADSs on the New York Stock Exchange. A public offer of 11,000,000 newly issued shares was made in a 1994 global offering.

The present term of the Company expires on December 31, 2050, unless extended by the shareholders in a general meeting.**The Company's principal place of business is located at Via Villa Minelli 1, 31050 Ponzano Veneto - TV, Italy. 

Its telephone number is +39-0422-519111.
** 

> Capital expenditures***Year ended December 31,*(thousands of Euro)*2004*2005*2006
Property, plant and equipment:
- commercial network and real estate
96,295
46,203
117,125
- production facilities
21,866
18,697
25,321
- other investment
5,438
7,417
9,676**Total property, plant and equipment**123,599**72,317**152,122
Intangible assets:
- commercial network
19,129
40,320
36,307
- other investment
9,033
11,137
15,112**Total intangible assets**28,162**************************************************************************************************************