iesy Repository GmbH - Irish Stock Exchange

In 2002 extraordinary depreciation and amortization on non-current assets in the amount of € 436 Mio (prior year €
237 Mio) have been recorded. Thereof € 9 Mio (prior year € 0 Mio) relate to tangible assets, € 246 Mio (prior year € 236
Mio) relate to goodwill, and € 181 Mio to the customer base. Furthermore new business development costs in the amount of
€ 33 Mio (prior year € 0 Mio) have been written off extraordinarily.
Basis for the extraordinary write off of goodwill and customer base was an evaluation of the business.
The value has been derived based on the following factors:
• In 2003, the indirect shareholder of the iesy Group has changed, furthermore distribution of ownership of the
indirect shareholder took place based on a capital increase made in May 2003.
• A possible market price of the business operation was determined based on the expected EBITDA 2003/2004,
using the multiplier method. The existing net indebtedness was deducted. The multiplier of 5.25 which was
applied was based on transactions with comparable companies which took place in Germany in 2003.
As a result, an attributable value of the company of € 217.3 Mio was determined.
Receivables
All receivables are due within one year.
Equity
The net loss for 2002 (€ 556,6 mill.) was debited to the capital reserve in compliance with the Company’s articles of
association.
Accruals
Accruals have been essentially set up for bonuses, vacation not taken, onerous contracts (rent contracts), outstanding
supplier invoices and long term purchase commitments.
Liabilities are falling due as follows:
312
Due in up to
one year
Due in one to
five years
Due in more than
five years
T€ T€ T€
Liabilities to banks 0 26,250 23,750
Trade payable—third parties 13,149 0 0
Liabilities to affiliates 4,102 0 0
Liabilities to companies with share relationship 19,787 0 0
Other liabilities 1,337 0 0
Payables to companies in which the Company has a participating interest result from trade.
Deferred Income
38,375 26,250 23,750
This item comprises revenues before the closing date due to receivables for which services will not be rendered before
the following business year.
Sales
Total sales
Cable television revenues 103,696
Program revenues 5,995
Sales reductions -1,098
T €
108,593
During the business year extraordinary expenses amounting to € 16,1 Mio have been incurred, due to the financial
restructuring, discontinuation of the cable network expansion and personnel cuts related to this. The expenses related to the
discontinuation of the cable network result essentially from compensation payments for cancellation of long-term contracts.