The capitalized expenses for the start-up and expansion of business occurred with regard to the implementation and upgrading of existing cable networks for Highspeed-Data, an internet technology via cable. All receivables and other assets are due within one year except for € 1.0 Mio receivables from security deposits, which are due within more than one year. The movements in consolidated equity are as follows: Subscribed capital iesyRepositoryGmbH, Hamburg Capital reserves Loss carried forward 330 Profit/loss for the year Equity Minorities Consolidated equity T€ T€ T€ T€ T€ T€ T€ As of 12/31/2003/ 1/1/2004 10,351 93,819 -2 -4,952 99,216 16,233 115,449 Increase of equity by acquisition of minority shares at New iesy 2,331 85,299 0 0 87,630 -18,157 69,473 Appropriation of result 0 0 -4,952 4,952 0 0 0 Profit for the year 0 0 4,084 4,084 1,924 6,008 As of 12/31/2004 12,682 179,118 -4,954 4,084 190,930 0 190,930 Due to the capitalization of expenses for the start-up and expansion of business a distribution ban of T€ 246 exists. Provisions and accruals have been primarily accrued for remaining days of holiday, variable and performance related compensation payments and outstanding vendor invoices. The maturity of liabilities is as follows: Due within one year Due within five years Due in more than five years T€ T€ T€ Liabilities to banks 9,869 83,892 0 Trade payables 3,474 0 0 Liabilities to affiliated companies 87 0 0 Other liabilities 6,624 0 0 20,054 83,892 0 Liabilities to banks of € 93.8 Mio are secured by an assignment of a bank deposit, by account receivables and by a passing of title for the remaining other assets. Revenues were solely made in Germany. Other operating income comprises income from prior periods of € 1.4 mill. due to the clearing up of time-barred liabilities. Other operating expenses of € 31.6 million mainly consist of management fees, license and concession fees, rental and leasing fees as well as consulting fees. Also included are expenses of prior periods in the amount of € 1.3 mill. due to the write-off of bad debt. The profit attributable to minority interest includes the proportionate profit for the period January to November 2004 of the minority shareholders. The consolidated profit is financially burdened by taxes of T€ 3,653. Thereof T€ 1,435 are related to the extraordinary result due to the write up of the customer list recorded in the stand-alone financials of iesy Hessen. Other Information Other Financial Obligations The other financial commitments result essentially from purchase obligations for network infrastructure services of Deutsche Telekom AG, Bonn as well as from rental and leasing obligations.
Network infrastructure, rental, leasing and other commitments: 2005 30,679 2006 29,250 2007 25,083 2008 25,151 2009 24,492 2010 and thereafter (annually) 24,841 Shareholdings of iesyRepositoryGmbH, Hamburg Shareholdings of iesyRepositoryGmbH as of December 31, 2004 are as follows: Name of the company Registered office Country 331 Shareholding in % Equity T€ 159,496 Subsidiaries included in the consolidated financial statements New iesyGmbH Hamburg Germany 100.00 113,411 -1,954 iesy Hessen Finanz GmbH & Co. KG Frankfurt am Main Germany 100.00 257,952 163,942 iesy Hessen Finanz Management GmbH Frankfurt am Main Germany 100.00 18 -2 iesy Hessen Verwaltungs-GmbH Frankfurt am Main Germany 100.00 17 -4 iesy Services GmbH Frankfurt am Main Germany 100.00 117 13 DeTe Kabelservice Hessen Beteiligungs- GmbH Bonn Germany 100.00 26 0 The average number of employees in 2004 amounted to 302 (prior year: 369). Members of the Advisory Board and Compensation Members of the advisory board are: • Marc Rowan, Senior Partner, Apollo Management, L.P., New York, • Robert Falk, Senior Partner, Apollo Management, L.P., New York, • Eric Zinterhofer, Vice President, Apollo Management, L.P., New York, • Robert Webster, Principal, Pequot Capital Management Inc., Santa Monica, • Steven A. Tananbaum, President—Chief Investment Officer, Golden Tree Asset Management, L.P., New York, • Peter F. Duerr, Senior Managing Director, BFD Capital, Inc., New York, • Brooks Newmark, Managing Director, Apollo Management (UK), L.L.C., London. In 2004 the advisory board did not receive any compensation payments Members of the Management • Michael Block, Managing Director Hamburg, April 5, 2005 iesyRepositoryGmbH, Hamburg Michael Block Result 2004