iesy Repository GmbH - Irish Stock Exchange

3. Scope of Consolidation
The consolidated financial statements include the direct investment in New iesy GmbH and the indirect stakes in iesy
Hessen Finanz GmbH & Co. KG, iesy Hessen Verwaltungs-GmbH, iesy Services GmbH and iesy Hessen Beteiligungs
GmbH (former DeTeKS Hessen Beteiligungs-GmbH). These participations have been acquired during the financial year;
consolidated financial statements have been prepared for the first time.
4. Consolidation Principles
The book value method is used for the capital consolidation by setting off the acquisition costs for shares in the
subsidiaries at the time of acquisition against the equity portion related to these companies. As much as their current value
differs from their book value the emerging difference increases assets and liabilities. Remaining active differences have been
disclosed as goodwill and are amortised using the straight-line method over the anticipated useful life of 15 years.
The acquisition of New iesy GmbH took place in two separate tranches on January 14 and July 23, 2003. Furthermore,
the capital was increased effective May 16, 2003 by minority shareholders of New iesy GmbH. In principle, the annual
results have been considered on a pro rata temporis basis to determine the equity on the respective dates of acquisition.
Moreover, net income and expenses relating to other periods (€4,4 mill.) and all extraordinary items in relation to the
acquisition of the shares and the financial restructuring (-€21,7 mill.) have been allocated to the period from 1 January to 14
January 2003.
In consideration of these principles a pro rata result for the period from January 1 through January 14, 2003 was
calculated:
Changed presentation
318
Presentation
prior to
changes
T€
Total revenues 4,935
Cost of Materials -1,082
Personnel Expenses -869
Depreciation -1,579
Other Operating Income and Expenses 3,425
Finance Result -378
extraordinary income and expenses -21,963
Income Taxes 2
Adjustment item -17,509
The balance of minority interest reflects equity share in consolidated companies held by shareholders not belonging to
the Group.
Intercompany payables and receivables are eliminated within the framework of debt consolidation.
Other income and expenses from intercompany transactions are eliminated within the framework of income and
expense consolidation.
Intercompany profits are eliminated.
5. Accounting and Valuation Principles
The financial statements of consolidated companies are prepared in compliance with uniform accounting and valuation
principles.
Intangible assets acquired are valued at acquisition costs, reduced by ordinary amortization. The company applies
straight-line depreciation based on the anticipated useful life of intangible assets. The useful life of software is 2 to 4 years, of
the customer base it is 10 years (indirect customer base and customer base of former DeTeKabelService GmbH & Co. KG)
respectively 20 years (direct customer base) and of goodwill it is 15 years. While there is a straight contractual relationship
between the group and end customers for the direct customer base indirect customers have a contractual relationship with one
single network provider. The calculation of the anticipated useful life of the customer base considered the contractual
relationship with the client and therefore the possibility to influence the relationship with the end customer. Net book value