Annual report 2008 - Advanced Inflight Alliance AG

Finance income
Finance income dropped to EUR 348 thousand during the reporting period, down from EUR 929 thousand
the previous year, owing mainly to the outflow of EUR 17.5 million in cash, which had been invested at
interest, in connection with the payment of the purchase price for the two corporate acquisitions in 2008.
Cash and cash equivalents from income were built back up to a level of EUR 17.5 million as of the balance
sheet date, thus almost reaching the previous year‘s level of EUR 19.0 million.
Finance costs
Finance costs climbed during the reporting period to EUR 1,011 thousand, up from EUR 574 thousand the
previous year, due, among other things, to borrowings of EUR 10 million in 2008.
Income taxes
Income taxes were EUR 2,460 thousand, compared to EUR 458 thousand the previous year, owing to the
change in deferred income taxes.
Tax loss carryforwards
As of December 31, 2008, Advanced Inflight Alliance AG had tax loss carryforwards of EUR 63.8 million from
both corporate income taxes and municipal trade taxes. Comprehensive tax audits of the company through
the 2005 financial year have confirmed these tax loss carryforwards.
2. Financial position and net assets
Assets and liabilities
The acquisition of both DTI and Fairdeal impacted the company‘s economic base in the 2008 financial year.
A total of EUR 17.5 million in cash and cash equivalents was used in 2008 alone to finance the acquisitions.
Initial consolidation of the new subsidiaries caused a substantial increase in total assets to EUR 83.9 million,
up from EUR 59.6 million the previous year. As a result, equity of EUR 26.8 million fell to 31.9% of total
assets, compared to 45.4% the previous year.
Assets
Intangible assets:
The film assets remained largely intact in terms of the inventory of several hundred film titles even though
amortization and impairment losses caused them to decline to EUR 2,050 thousand from EUR 3,174 thousand
the previous year.
Goodwill rose substantially from EUR 10,565 thousand the previous year to EUR 21,446 thousand due to the
acquisition of DTI and Fairdeal.
The acquisition of DTI and Fairdeal caused the other intangible assets to increase from EUR 4,077 thousand
the previous year to EUR 15,572 thousand.
The changes in property, plant, and equipment were insignificant.
Deferred tax assets declined slightly to EUR 1,649 thousand, down from EUR 1,832 thousand the previous
year.
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