iesy Repository GmbH - Irish Stock Exchange

2004. This decrease was primarily due to cost reductions implemented as part of the strategy adopted by iesy after the iesy
Acquisition and which took full effect in 2004. This includes a reduction in the leased car fleet, a reduction in rental fees for
various facilities which were identified as being surplus in 2003, and the renegotiation of various service provider costs,
including MSG.
Other Interest and Similar Income
Other interest and similar income remained constant at €1.3 million between the year ended December 31, 2003 and
the year ended December 31, 2004.
Interest and Similar Expenses
Interest and similar expenses include interest and fees paid with respect to iesy’s senior credit facilities.
Other interest and similar expenses decreased by €5.3 million, or 48.3%, from €11.0 million in the year ended
December 31, 2003 to €5.7 million in the year ended December 31, 2004. This decrease was primarily due to improved
operating performance which enabled iesy to benefit from more favorable margins and lower interest rates under its senior
credit facilities and also result from a lower amount of total debt outstanding following the prepayment of €50.0 million of
our Senior Credit Facilities in August 2004.
Extraordinary Income
In the year ended December 31, 2003, extraordinary income was €1.2 million, primarily due to a reversal of 2002
accruals related to the restructuring of iesy’s operations and a change in strategic direction following the iesy Acquisition.
Extraordinary Expenses
Extraordinary expenses include expenses incurred as a result of the iesy Acquisition and the operational restructuring,
which took place immediately following the implementation of the iesy Acquisition. Extraordinary expenses in 2003
included refinancing and operational restructuring expenses in relation with the iesy Acquisition (€21.7 million), costs
relating to staff reduction such as severance payments (€3.8 million), and the termination of the cable network expansion
(€3.1 million). Extraordinary expenses amounted to €28.7 million in the year ended 2003. iesy had no extraordinary expenses
in the year ended December 31, 2004.
Taxes on Income
iesy incurred no taxes on income in the year ended December 31, 2003 and incurred €3.7 million in the year ended
December 31, 2004. This increase was primarily due to the fact that iesy had improved operating performance for the year
ended December 31, 2004 which resulted in a positive net profit before tax. As a result, iesy accrued taxes on income in 2004
which will be payable in future periods.
Net Profit and Loss
Net loss was €5.5 million in the year ended December 31, 2003 compared to a net profit of €6.0 million in the year
ended December 31, 2004. This change was caused by the factors indicated above.
Liquidity and Capital Resources as of and for the years ended December 31, 2003 and 2004
Cash Flow
iesy’s primary sources of liquidity are cash flows from operating activities and bank borrowings.
The table below summarizes iesy’s cash flow for the two-year period ended December 31, 2003 and 2004.
100
Year ended December 31,
2003 2004
(€’000s)
Cash flow from operating activities 26,830 48,198
Cash flow from investing activities 21,112 (6,678)
Cash flow from financing activities 9,980 (56,213)