iesy Repository GmbH - Irish Stock Exchange

38
As of and for
the twelve
months ended
March 31, 2005
(€ ’000s,
except ratios
and percentage)
EBITDA (after duct lease charges) (1) 248,900
Adjusted EBITDA (2) 265,776
Adjusted EBITDA margin (3) 47.4%
Capital expenditures 47,406
Adjusted EBITDA less capital expenditures (4) 218,368
Senior Credit Facilities (5) 1,050,000
Total financial debt 1,625,145
Interest expense (6) 107,721
Senior Credit Facilities/Adjusted EBITDA 4.0x
Total financial debt/Adjusted EBITDA 6.1x
Adjusted EBITDA/Interest expense 2.5x
(1) We define EBITDA as consolidated net profit/loss plus net interest expense, taxes, depreciation and amortization,
extraordinary items and minority interest. EBITDA, a measure used by management to assess operating performance, is
not a recognized term under German GAAP and does not purport to be an alternative to operating income or cash flow
from operations, as an indicator of operating and financial performance. We believe that EBITDA is a relevant measure
for assessing operating performance because it eliminates variances caused by the effects of differences in taxation, the
amounts and types of capital employed, amortization policies, extraordinary items and the effect of minority interests
and is intended to help investors evaluate the performance of our underlying business. Because companies do not
calculate EBITDA identically, our presentation of EBITDA may not be comparable to similarly titled measures of other
companies. In addition, EBITDA is not calculated in the same way as “Consolidated EBITDA” will be calculated under
the Senior Credit Facilities or the indentures for the Notes or the Existing Notes.
We have decreased EBITDA by €36.7 million for ish’s duct leases with DTAG. ish capitalizes the costs of such leases,
whereas going forward following the ish Acquisition such costs will be accounted for as operating expenses in
accordance with iesy’s accounting policies.
(2) Adjusted EBITDA is not a recognized term under German GAAP and does not purport to be an alternative to operating
income or cash flows as an indicator of operating and financial performance. Because other companies do not calculate
Adjusted EBITDA on the same basis, the presentation of Adjusted EBITDA is not comparable to similarly titled
measures of other companies. For an explanation of the adjustments made to EBITDA, see note 5 to the iesy summary
financial and operating data and note 3 to the ish summary financial and operating data above.
(3) We define Adjusted EBITDA margin to mean Adjusted EBITDA as a percentage of total revenues.
(4) Adjusted EBITDA less capital expenditures is not a recognized measure under German GAAP and should not be used as
a replacement for other measures of financial performance such as operating income or cash flow from operations, in
assessing our operating and financial performance. We believe that it is a useful measure for monitoring the amount of
its Adjusted EBITDA when adjusted for expenditures that are not reflected in the expense line of its statement of
operations but are capitalized, particularly in industries such as ours where capital expenditures may form a large
proportion of expenditures.
(5) Excludes the €100.0 million revolving credit facility, which was undrawn upon completion of the ish Acquisition. As of
July 1, 2005, iesy has made requests to utilize €22.0 million of its revolving credit facility to fund normal working
capital needs.
(6) Reflects a weighted average effective interest rate on the Notes of 9.951% (adjusted to reflect the effect of the swap of
the gross proceeds of the Dollar Notes to euros pursuant to a hedging agreement).