Pallet-Management-Services - AFM

Financial reporting
Management’s discussion and analysis
Basis of presentation
The Management’s Discussion and Analysis that follows sets the context for the year ended
December 31, 2006 with a summary of highlights for the year and in comparison to 2005. We
also discuss important operational topics including cash flows, liquidity and capital resources,
and risk management. The discussion concludes with our outlook for 2007.
Beginning 2005, our separate financial statements have been prepared in accordance with
IFRS.
Within this report we only present the separate financial statements of IFCO SYSTEMS N.V..
These statements do not reflect the development of our group. Therefore we refer to our
consolidated financial statements within our annual report.
Operations
> Management charge income increased significantly (by EUR 0.9 million) compared to prior
year, because the chargeable expenses related to management and holding activities had
grown.
> General and administrative expenses (G&A) increased slightly due to an increase of external
services for legal and tax advisory. Stock compensation expenses decreased by EUR 0.8
million.
> Net loss decreased by 37% or EUR 5.7 million to EUR - 9.6 million in 2006. This decrease is
caused by the above mentioned increase of management charge income, decrease of stock
compensation expenses and by foreign currency gains of EUR 2.2 million. The foreign currency
gains resulted with EUR 1.6 million from a restructuring and summation of liabilities with a
subsidiary.
> Basic result per ordinary share increased by 47% to EUR - 0.18 in 2006 from EUR - 0.34 in
2005.
Liquidity and Cash Flows
> Cash at year end amounts to EUR 5.7 million , which was the same level as prior year. That
cash amount consists mainly of the deposited interest payment to bondholders at year end. The
balance sheet includes a corresponding current liability in the same amount.
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