185000000 IT Holding Finance SA

collection of the receivables assigned. A backup credit line is also provided by Credit Lyonnais in connection with
the securitization program to be used for the financing of purchases of senior notes in the event they cannot be sold,
or to reimburse any purchasers if the program is cancelled.
Following the sale of ITF S.p.A. as part of the disposal of our fragrance business, we reached an agreement with
Credit Lyonnais for the termination of the securitization program with respect to such company. Under the
agreement, Credit Lyonnais granted to ITF S.p.A. the right to continue to act as servicer of the trade receivables
assigned to the Purchasers up to the date of the closing of the sale. On the other hand, we guaranteed to the
Purchasers the performance by ITF S.p.A. of its obligations as servicer. Under a separate agreement, ITF S.p.A.
agreed to indemnify us with respect to any cost, expense damage or liability which we may incur as a consequence
of a breach by ITF S.p.A. of its obligations to service the trade receivables and to pay the amounts collected by it to
Credit Lyonnais.
We are in the process of finalizing similar arrangements with respect to the termination of the securitization
program for Allison S.p.A. following its sale and exit from the Group.
Bilateral Loan Facilities and Overdraft Facilities
As of December 31, 2004, our Uncommitted Bilateral Loan Facilities provided for total borrowings of up to €133.4
million. As of December 31, 2004, approximately €90.1 million was available and €43.2 million was outstanding
under the Uncommitted Bilateral Loan Facilities (including €5.5 million of factoring). Borrowings under these
facilities may be denominated in a number of different currencies.
These Uncommitted Bilateral Loan Facilities and overdraft facilities are uncommitted and short term in nature and
are subject to termination by the bilateral lender at any time. Any termination or withdrawal of these facilities
could lead to, or further exacerbate any existing liquidity problems and could decrease our stability.
Off-balance sheet arrangements
The following table summarizes our off-balance sheet items for the periods presented.
Year Ended December 31,
2002 2003 2004
(€ in millions)
Personal guarantees provided:
Guarantees and warrants to grant credit provided on
behalf of third parties ..................................... €45.1 €44.5 €89.4
Total guarantees provided........................... 45.1 44.5 89.4
Purchase commitments................................... 0.9 — —
Total off-balance sheet items....................... €46.0 €44.5 €89.4
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