iesy Repository GmbH - Irish Stock Exchange

Aggregate financial obligations
The table below summarizes the financial payments that iesy will be obligated to make under our debt instruments as
of March 31, 2005. The information presented in the table below reflects management’s estimates of the contractual
maturities of iesy’s obligations. These maturities may differ significantly from the actual maturity of these obligations. In
particular, debt under the Senior Credit Facilities may be retired earlier due to mandatory prepayments, such as from excess
cash flow. This table does not reflect additional long-term debt obligations incurred in connection with the ish Acquisition.
96
Payments due by period (1)
(€’000s)
Less than
1 Year 1-3 years 4-5 years
Office rental 1,795 3,032 2,709
Other rental 930 907 0
Network infrastructure 21,355 43,903 45,631
MSG and copyright fees 6,081 5,466 1,226
Other contractual obligations 475 0 0
Subtotal 30,637 53,308 49,566
Long-term debt obligations (2) 2,000 3,940 3,862
Total 32,637 57,249 53,428
(1) We have not included our obligations beyond five years, including with respect to network infrastructure, the Senior
Credit Facilities and the Existing Notes.
(2) Reflects iesy’s previous senior credit facilities which were repaid as part of the Refinancing and iesy entering into the
Senior Credit Facilities.
Leasing and rental obligations. iesy has entered into several long term SLAs with DTAG and its affiliates. These
include usage and access agreements for underground cable ducts space, the use of fiber optic transmission systems, tower
and facility space. In general, these agreements primarily impose fixed prices for a limited period of time, which may then be
raised to reflect increased costs, subject to index-linked limitations. Some agreements impose prices based on the cost to
DTAG of services that are passed through to us. iesy has the ability to terminate these agreements with notice periods of
between 12 and 24 months. Furthermore, iesy has entered into the long term BRN-iesy agreement under which iesy leases
additional fiber optic lines. See “Business—Business of iesy—Supply—SLAs with DTAG.” iesy has also entered into
various other license, rental and operating lease agreements, all of which are expensed as services are provided. iesy treats
these leases as operating rather than capital leases. See “Risk Factors—Risks Relating to Our Indebtedness and Our
Structure—Our high leverage and debt service obligations could materially adversely affect our business, financial condition
or results of operations” and “—Risks Relating to the Notes, the Subsidiary Guarantees and the Security—We have not
included IFRS or U.S. GAAP financial information in this Prospectus, and there may be certain significant differences
between our financial position and results of operations under German GAAP, IFRS or U.S. GAAP.”
Copyright agreements. iesy is required under German law to pay royalties to the holders of copyrights and related
rights for the re-transmission of radio and television programs that include, among other things, literary, scientific or artistic
works protected by copyright law. iesy pays these fees pursuant to a collective agreement (Kabelglobalvertrag) between
members of the cable television industry and GEMA, representing collecting societies, public broadcasters, and a few private
broadcasters in television and radio. The agreement with GEMA covers analog and digital transmission and will remain in
force until December 31, 2006.
Furthermore, on March 22, 2005, as part of settling arbitration proceedings, iesy acceded and became a party to the VG
Media agreement, which had been entered into by the other Level 3 operators, VG Media and DTAG regarding the retransmission
of a number of the remaining German private radio and television programs through the telecommunications
cable networks of the regional cable companies. This agreement came into force on January 1, 2003 and may be terminated
by each party on December 31, 2005, at the earliest. As a result, iesy’s accruals increased and a payment was made to cover
the periods from January 1, 2003. After the agreements with GEMA and VG Media expire, new agreements with new royalty
arrangements may be concluded. See “Operational and Financial Review and Prospects—Factors Affecting Our Results of
Operations – Other operating expenses—Copyright license fees,” “Risk Factors—Risks Relating to Our Business—
Uncertainties as to copyright laws may adversely affect our ability to conduct our business,” and “Business—Business of
iesy—Legal Proceedings.”