iesy Repository GmbH - Irish Stock Exchange

Other operating expenses decreased by €25.1 million, or 23.3%, from €107.7 million in the year ended December 31,
2003 (€99.5 million in the audited year ended December 31, 2003 (including eleven months of operations)) to €82.6 million
in the year ended December 31, 2004. 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 30.6% at €3.6 million for the year ended December 31, 2003 (€3.3 million
in the audited year ended December 31, 2003 (including eleven months of operations)) to €2.5 million for the year ended
December 31, 2004.
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 €10.3 million, or 12.4%, from €82.9 million in the year ended
December 31, 2003 (€74.4 million in the audited year ended December 31, 2003 (including eleven months of operations)) to
€72.7 million in the year ended December 31, 2004. This decrease was primarily due to the repayment of approximately
€116.2 million of debt in 2004 and a decrease to the floating interest rates of ish’s senior bank debt.
Income Taxes
ish had a de minimis amount of income and trade tax in the year ended December 31, 2004 relating to the business of
KSG.
Net Loss
Net loss was €22.6 million in the year ended December 31, 2003 (€12.4 million in the audited eleven months ended
December 31, 2003) compared to a net loss of €72.7 million in the year ended December 31, 2004. This change was caused
by the factors indicated above and the difference of €58.5 million arising from the first-time consolidation of ish KG which
was released in full in the year ended December 31, 2003, as the loss situation anticipated at the time the 2003 ish
Acquisition occurred in 2003.
Liquidity and Capital Resources as of and for the years ended December 31, 2003 and 2004
Cash Flows
ish’s primary sources of liquidity are cash flows from operating activities and bank borrowings.
The table below summarizes ish’s cash flows for the year ended December 31, 2003 (including eleven months of
operations) and the year ended December 31, 2004 and the unaudited cash flow information for the year ended December 31,
2003 (including aggregated twelve months of operations):
130
Audited
year ended
December 31,
2003
(including
eleven months
of operations)
Unaudited
year ended
December 31,
2003
(including
aggregated
twelve months
of operations)
Audited
year ended
December 31,
2004
(€’000s)
Cash flow from operating activities 91,562 124,928 140,688
Cash flow from investing activities (19,983) (22,681) (31,865)
Cash flow from financing activities (95,596) (96,164) (131,750)
Year ended December 31, 2004 compared to the year ended December 31, 2003
Cash Flow from Operating Activities
ish’s cash flow provided from operating activities increased by €15.8 million from a cash inflow of €124.9 million in
the year ended December 31, 2003 (€91.6 million in the audited eleven months ended December 31, 2003) to a cash inflow
of €140.7 million in the year ended December 31, 2004. In 2003, cash flow was negatively impacted by settlement of