185000000 IT Holding Finance SA

IT HOLDING S.p.A. Notes to the consolidated financial statements for the year ended December 31, 2004
The focusing on core business, aimed at developing the businesses of the Ferré, Extē and Malo brands, mainly
comprised the sale of the companies active in the fragrance and eyewear sectors, the sale of GIGLI S.p.A., the
indirect owner of the Romeo Gigli brand and the sale of the Gentryportofino business unit and brand.
(3) Segment information
Primary reporting format – business segments
For the year ended December 31, 2003 the Group was organized on a worldwide basis, into three main business
segments each of which designed, manufactured and distributed in the following distinct sectors of the luxury
goods market:
• apparel and accessories;
• eyewear; and
• fragrances.
On March 25, 2004 the Group finalized the sale of its 90% share holding in IBEX 2001 S.p.A. thereby disposing of
its fragrance business. Control was effectively transferred as from the January 1, 2004 and therefore from this date
IBEX 2001 S.p.A and the companies it controls have no longer been consolidated. As a consequence the fragrance
segment has been eliminated for the year ended 31 December 2004 (see note 7 Discontinued operations).
On October 5, 2004 the Group sold its investment in Allison S.p.A. thereby disposing of its eyewear business. As a
consequence segment results for the year 2004 show the results of the eyewear business up to the date of sale,
whereas at the December 31, 2004 there are no segment assets or liabilities for the eyewear business (see note 7
Discontinued operations).
The following tables show the financial position and the income statement by business segment:
December 31, 2004
Apparel and
accessories
Eyewear Fragrances Unallocated
Eliminations Total
(In thousands of Euros)
Sales 662,439 56,724 (9,284) 709,879
Of which intersegment sales 9,173 111 (9,284) 0
Of which royalty income 7,677 0 7,677
Change in inventory 8,993 6,668 15,661
Other operating income 8,862 915 (102) 9,675
Cost of materials (174,788) (22,826) 71 (197,543)
Outside services (276,027) (30,506) 9,315 (297,218)
Personnel expenses (75,508) (8,639) (84,147)
Other operating expenses (49,054) (1,286) (50,340)
Depreciation/amortization (95,828) (2,683) (98,511)
Operating result 9,090 (1,634) -
-
0 7,456
Financial income (charges) (29,356) (29,356)
Gain on disposal of discontinuing operation 25,751 25,751
Loss on disposal of discontinued operation (1,276) (1,276)
Income (loss) before taxes 2,575
Income taxes (13,809) (13,809)
Net income (loss) before minority interest (11,234)
Minority interest 1,347 1,347
Net income (loss) for the year (12,581)
F- 21