185000000 IT Holding Finance SA

IT HOLDING S.p.A. Notes to the consolidated financial statements for the year ended December 31, 2004
(4) Outside expenses
Outside expenses are comprised as follows:
(In thousands of Euros) 2004 2003
Outsourcing 85,920
83,547
Royalties 66,829
60,252
Advertising 36,289
45,718
Commissions 22,797
21,449
Transport 23,868
21,237
Other services 61,515
59,761
Total 297,218 291,964
(5) Personnel
Personnel expenses are comprised as follows:
(In thousands of Euros) 2004 2003
Wages and salaries 63,340 67,532
Social security contributions 14,363 14,435
Severance pay fund 4,570 3,940
Other costs 1,874 849
Total personnel expenses 84,147
Employee numbers were as follows:
Workers 451
Office staff 1,226
Executives 43
Total 1,720
(6) Financial income (charges)
Financial income and charges are comprised as follows:
F- 24
2004 Average
number 2004
2003
613
1,427
49
2,089
657
1,376
54
2,087
86,756
Average
number 2003
(In thousands of Euros) 2004 2003
Interest expense (28,903) (27,491)
Interest income 982 1,331
Financial income (expense) from hedging transaction (439) 183
Net foreign exchange (gain) loss 860 (1,190)
Other income 1,861 10
Other charges (3,717) (7,611)
Total (29,356) (34,768)
Interest expense primarily is composed of interest on bonds of Euro 15,953 thousand (2003: Euro 14,710
thousand), bank interest of Euro 9,419 thousand (2003: Euro 7,827 thousand) and factoring without recourse
interest of Euro 3,073 thousand (2003: Euro 2,109 thousand).
Other income for the year 2004, includes the gain of Euro 1,805 thousand realized following the repurchase of
Euro 25 million of the “Ferré Finance 7% 05/05” bond.
Other charges for the year 2004, include Euro 1,336 being the loss arising upon the write down of a loan receivable
664
1,386
59
2,109