185000000 IT Holding Finance SA

Contractual obligations
The following table summarizes, on a pro forma basis after giving effect to the satisfaction and discharge of our
2005 Notes, as of December 31, 2004, our contractual obligations and commercial commitments (including
principal payments we were obligated to make) under our debt instruments, capital and operating leases and other
agreements.
47
Total
Payments Due by Period
Less than Between
1 year 1-5 years
(€ in millions)
More than
5 years
Long-term debt................................................................................................ €237.4 €11.3 76.1 €150.0
Other debt obligations ............................................................................................ 40.0 40.0 — —
Lease and rental obligations ................................................................................... 118.4 17.3 66.8 34.3
Agent’s termination benefits .................................................................................. 5.7 5.7 — —
Severance pay fund ................................................................................................ 13.7 13.7 — —
Amounts due to suppliers ....................................................................................... 229.6 229.1 0.5 —
Other contractual obligations (1) .............................................................................. 233.2 220.9 12.3 —
Total contractual obligations............................................................................... €878.0 €538.0 €155.7 €184.3
(1) Other contractual obligations primarily include securitization, fair value of trading and hedging derivatives, and remuneration to be paid
to employees, the Board of Directors and our statutory auditors.
Qualtitative and Quanitative Disclosure About Market Risk
Currency Risk
Our reporting currency is the euro. We conduct, and will continue to conduct, transactions in currencies other than
euro, particularly U.S. dollars, British pounds, Swiss francs, Canadian dollars and Hong Kong dollars. As a result,
we are vulnerable to foreign exchange rate fluctuations because most of our manufacturing costs are incurred in
euro while a portion of our revenues is generated in other currencies. For example, a strengthening of the euro
relative to such other currencies in which we receive revenues could negatively impact our operating margins and
cash flows.
In 2004, approximately 6.7% of our consolidated operating revenues were denominated in U.S. dollars, while
approximately 84.5% of our consolidated operating expenses were denominated in euro. Our remaining operating
expenses were dominated primarily in Canadian dollars and Hong Kong dollars.
Our policy is to hedge at least 60% of all trade receivables denominated in a foreign currency and to hedge 80% of
our estimated foreign currency exposure in respect of sales forecasted for the next 12 months. We use forward
exchange contracts and currency options to hedge our foreign currency risk. Most of the forward exchange
contracts have maturities of less than one year after the balance sheet date. Where necessary, the forward exchange
contracts are rolled over at maturity. We do not enter into derivative transactions for trading or speculative
purposes.
Interest Rate Risk
We are exposed to interest rate risk, as a certain number of our borrowing facilities are subject to floating interest
rates. As of December 31, 2004, borrowing under facilities subject to floating interest rates amounted to €174.4
million. We have no cash flow interest rate exposure due to rate changes on our outstanding 2005 Notes because
they bear interest at a fixed rate. We do have cash flow interest rate risk exposure on our €85 million New Credit
Agreement because it is based on a variable rate of interest. A 100 basis point change in EURIBOR/LIBOR will
result in interest expense fluctuating approximately €1.7 million per year.