185000000 IT Holding Finance SA

Our business may be adversely impacted as a result of our substantial indebtedness, the servicing of which
requires the use of a significant portion of our cash flow. Our ability to generate sufficient cash or access
additional capital in the future depends on many factors, some of which are beyond our control.
We are highly leveraged and have significant debt obligations. As of December 31, 2004, after giving effect to our
offering of Notes in March 2005 and the satisfaction and discharge of our 2005 Notes we would have had total net
third party debt of €325.6 million, of which €185.0 million would have been represented by the Notes,
€85.0 million would have been represented by the New Credit Agreement, €76.1 million would have been
represented by our securitization facilities and factoring and €38.1 million would have been represented by our
Uncommitted Bilateral Loan Facilities and other debt, net of €58.6 million of cash and cash equivalents and junior
notes received under our securitization program.
Our substantial indebtedness could have important consequences. For example, it is likely to:
• require us to dedicate a significant portion of our cash flow from operations to service our debt, thereby
reducing the availability of cash flow to make dividend payments and to fund our working capital needs,
capital expenditures, investments in collection development and other general corporate purposes;
• increase our vulnerability to general adverse economic and industry conditions;
• limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we
operate;
• limit our ability to make strategic acquisitions or pursue other business opportunities that may arise;
• place us at a competitive disadvantage compared to competitors who have less indebtedness than we do; and
• limit our ability to borrow additional funds and increase the cost of any such borrowings, particularly because
of the financial and other restrictive covenants contained in the indenture governing the Notes.
Our ability to make payments on and repay or refinance our debt and to fund our working capital requirements,
capital expenditures, investments in collection development or business opportunities that may arise, such as
acquisitions of other businesses, will depend on our future operating performance and ability to generate cash. This
will depend, to some extent, on general economic, financial, competitive, market and other factors, many of which
are beyond our control.
We believe that our expected cash flows, together with available borrowings, will be adequate to meet our
anticipated needs. However, we cannot assure you that our business will generate sufficient cash flow from
operations or that future borrowings will be available to us in amounts sufficient to enable us to pay our debts when
due or to fund our other liquidity needs. If our future cash flows from operations and other capital resources are
insufficient to pay our obligations as they mature or to fund our liquidity needs, we may be forced to:
• reduce or delay our business activities and capital expenditures;
• sell assets;
• obtain additional debt or equity capital; or
• restructure or refinance all or a portion of our debt on or before maturity.
We cannot assure you that we would be able to accomplish any of these alternatives on a timely basis or on
satisfactory terms, if at all. In addition, the terms of our existing and future debt may limit our ability to pursue any
of these alternatives.
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