iesy Repository GmbH - Irish Stock Exchange

decreased to 10.5% in the three months ended March 31, 2005 compared to 13.5% in the three months ended March 31,
2004.
Personnel Expenses
Personnel expenses include fixed and variable salaries and wages, social security, and other pension costs of ish’s
permanent staff. It also includes other forms of variable compensation enjoyed by non-tariff employees in accordance with a
scheme that closely links this variable compensation to ish’s overall performance, historically measured by revenues and
EBITDA. Employees whose compensation is covered by collective bargaining agreements also receive variable
compensation; however, this generally makes up a smaller proportion of their total compensation when compared to nontariff
employees. Further, personnel expenses include other forms of compensation such as overtime, stand-by pay and
similar payments, but do not include temporary staff expenses, which are included as other operating expenses.
Wages and salaries. Wages and salaries decreased by €0.4 million, or 3.1%, from €12.4 million in the three months
ended March 31, 2004 to €12.0 million in the three months ended March 31, 2005. This decrease was primarily due to the
lower average number of employees. ish’s wages and salaries as a percentage of total revenues decreased to 11.6% in the
three months ended March 31, 2005 compared to 12.1% in the three months ended March 31, 2004.
Social security, and other pension costs. Social security and other pension costs decreased by €0.02 million, or 0.8%,
from €2.45 million in the three months ended March 31, 2004 to €2.43 million in the three months ended March 31, 2005.
This decrease was primarily due to the factor described above in “Wages and salaries.” ish’s social security and other pension
costs as a percentage of total revenues decreased to 2.3% in the three months ended March 31, 2005 compared to 2.4% in the
three months ended March 31, 2004.
Depreciation and Amortization
Depreciation and amortization expenses relate to property, plant and equipment, intangible assets and business
expansion expenses.
Depreciation and amortization decreased by €1.4 million, or 2.9%, from €49.3 million in the three months ended March
31, 2004 to €47.9 million in the three months ended March 31, 2005. This decrease was due to certain office equipment
reaching the end of its depreciable life during the period. ish’s depreciation and amortization expenses as a percentage of total
revenues decreased to 46.3% in the three months ended March 31, 2005 compared to 47.9% in the three months ended March
31, 2004.
Other Operating Expenses
Other operating expenses mainly include GEMA and VG Media fees, rent and leasing expenses, advertising expenses,
IT expenses and legal expenses and consulting fees. Sales commissions related to acquisitions of new subscribers are also
included in other operating expenses.
Other operating expenses decreased by €2.0 million, or 9.4%, from €21.7 million in the three months ended March 31,
2004 to €19.7 million in the three months ended March 31, 2005. This decrease was primarily due to the implementation of
cost-saving measures which reduced ish’s consulting fees and rental and leasing fees.
Other Interest and Similar Income
Other interest and similar income decreased by €0.2 million, or 27.3%, from €0.7 million for the three months ended
March 31, 2004 to €0.5 million for the three months ended March 31, 2005.
Interest and Similar Expenses
Interest and similar expenses include interest and fees paid with respect to ish’s senior credit facilities.
Other interest and similar expenses decreased by €4.6 million, or 21.7%, from €21.2 million in the three months ended
March 31, 2004 to €16.6 million in the three months ended March 31, 2005. This decrease was primarily due to the
repayment of approximately €116.2 million of debt in 2004 and fluctuation in the valuation of certain related hedging
arrangements.
Income Taxes
ish had a de minimis amount of income tax in the three months ended March 31, 2005 and in the three months ended
March 31, 2004 relating to the business of KSG.
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