business in the first half-year

MME MOVIEMENT KEY FIGURES
06/30/2005
12/31/2004
06/30/2004
34,8 Mio. €
37,9 Mio. €
3,0 Mio. €
1,3 Mio. €
0,6 Mio. €
0,06 €
80,9 Mio. €
83,8 Mio. €
7,6 Mio. €
5,1 Mio. €
3,2 Mio. €
0,31 €
9,8 Mio. €
10,7 Mio. €
0,8 Mio. €
0,7 Mio. €
0,7 Mio. €
0,10 €
54,6 Mio. €
45,1%
3,9 Mio. €
12,3 Mio. €
55,5 Mio. €
36,9%
6,0 Mio. €
13,9 Mio. €
13,5 Mio. €
68,6%
9,4 Mio. €
-
6,92 €
3,93 €
5,62 €
11.090.000
5,10 €
1,62 €
3,90 €
11.090.000
3,32 €
1,62 €
3,18 €
7.650.000
675
388
89
Income Stmt (12/31/2004: pro forma)
Revenues
Aggregate operating performance
EBITDA
EBIT
Net income for the year
Earnings per share (undiluted)
Balance Sheet
Total assets
Equity ratio
Cash and cash equivalents
Liabilities due to banks
Share
Annual high1)
Annual low1)
Last closing price1)
Share capital
Staff
Number of employees as of stmt date
1)
closing price in XETRA trading
Preliminary note: limited comparability to half-year
financial statement
The numbers reported for the first half-year offer only limited comparability with
those reported 30 June 2004. With the acquisition of moviement GmbH in August
2004, MME MOVIEMENT entered a new dimension both in terms of content and
volume. Consolidated revenue for the first six months of 2005 was three times last
year's corresponding figure, while total assets quadrupled. For this reason, a
meaningful comparison with the figures published in last year's half-year financial
report is not possible. Accordingly, reference was made to the 2004 pro forma consolidated income statement in the interim report dated 30 June 2005 and to the
audited consolidated balance sheet dated 31 December 2004 in line with IAS/IFRS.
The pro forma figures include moviement GmbH as of 1 January 2004.
2
SUMMARY
1. MME MOVIEMENT successful with new programmes in
the first half-year; revenues of EUR 34.8 million, EBITDA EUR 3.0 million
•
The first half-year saw a slight decline in net advertising income within a
stagnating market environment
•
Germany's largest TV producer unaffiliated with any broadcasting firm or outside corporation posts consolidated revenues of EUR 34.8 million and EBITDA
of EUR 3.0 million
•
Equity ratio up from 37 percent (31 December 2004) to 45 percent
•
Non-current liabilities due to banks down by 25%
•
New primetime programming slots occupied, customer portfolio expanded
•
Change of name into MME MOVIEMENT AG registered
•
Outlook for 2005: revenue rising as high as EUR 84 million; EBITDA margin of
nine to ten percent obtainable
MME MOVIEMENT, Germany's largest TV producer unaffiliated with any broadcasting firm or outside corporation, implemented innovative programme ideas
successfully in the first half-year 2005. Consolidated revenue came in at EUR 34.8
million, with EBITDA of EUR 3.0 million. The equity ratio increased from 37 percent (31
December 2004) up to 45 percent. Non-current liabilities due to banks fell by 25
percent comparing the 31 December 2004 and 30 June 2005 statement dates down
to EUR 6.0 million. MME MOVIEMENT is thus well capitalised, enjoying a solid base
for further growth. Based on the revenues obtained in the first half-year and revised
estimates, MME MOVIEMENT projects revenues for full year 2005 of up to EUR 84
million. In view of the continuing difficult conditions facing broadcasters, EBITDA
margin is estimated at nine to ten percent. This prognosis presupposes in particular
the continuation of all of the Group's serial programs on an unchanged basis.
3
BUSINESS IN THE FIRST HALF-YEAR
2. Business in the first half-year
a. Television advertising market restrained
Business was restrained in the German television advertising market during the first
half-year of 2005. Private German television broadcasters in particular are suffering
from a renewed decline in television advertising expenditures as a result of a negative consumer climate. Both the ProSiebenSat.1 Group and RTL are expecting a slight
decline in net television advertising revenue for the first half of the year.
Conditions in the television production business did not improve given the
continued malaise in the German TV advertising market. The strength of the German
television market and television advertising revenues have a key influence on incoming orders for MME MOVIEMENT.
b. Revenues of EUR 34.8 million, EBITDA EUR 3.0 million
With its three established producer brands filmpool, MME Entertainment and
AllMedia, MME MOVIEMENT is well-positioned in the German producer market. In a
stagnating environment the MME MOVIEMENT Group managed to obtain consolidated revenues of EUR 34.8 million for the first half of the year. Total revenues for
fiscal year 2004 came to EUR 80.9 million on a pro forma basis. The revenue and
earnings figures for the first half-year should not be used to extrapolate estimates
for the full year in a linear fashion. In accordance with the broadcasters' demand
MME MOVIEMENT expects a distinct stronger second half of the year. MME MOVIEMENT has broadly diversified risks in its portfolio of TV production contracts. Again
in the first half of 2005, no single production accounted for substantially more than
ten percent of consolidated revenues. EBITDA was EUR 3.0 million (pro forma 2004:
EUR 7.6 million). EBIT for the first six months of 2005 came to EUR 1.3 million, coming
after EUR 5.1 million for full year 2004 (pro forma). For the first half-year of 2005 MME
MOVIEMENT posted net income of EUR 0.6 million (pro forma 2004: EUR 3.2 million),
for earnings per share of EUR 0.06.
Significant expense items:
In the first half of 2005 the product portfolio encompassed approx. 30 productions
for both public and private sector television broadcasters in Germany. Material
expenditures for these productions amounted to EUR 29.9 million in the first half of
2005, including all internal and external expenses incurred in connection with movie
production. At the end of 2004 this figure was EUR 66.8 million on a pro forma basis.
Personnel expenses for the first six months of the current fiscal year totalled EUR 3.1
million (pro forma 31 December 2004: EUR 5.9 million). As of 30 June 2005 the corporation had a staff of 675 employees. This corresponds to an increase of 74 percent
4
BUSINESS IN THE FIRST HALF-YEAR
versus 31 December 2004. This increase per statement date is largely due to staff
members in projects which went into production in the first half-year 2005. Other
operating expenses totalled EUR 2.0 million (pro forma 31 December 2004: EUR 3.5
million). This figure includes one-time charges for integration and reorganisation of
EUR 0.2 million.
Depreciation and amortisation came to EUR 1.6 million. This figure was EUR 2.4 million in 2004. Nearly EUR 1.5 million of depreciation and amortisation for the first halfyear were a result of acquisitions, as all contractually-secured future income from the
acquired firms was capitalised as of the acquisition date of moviement GmbH in
August 2004, and is now fully depreciated. The financial result of a negative EUR 0.4
million (pro forma 31 December 2005: negative EUR 0.007 million) is the product of
EUR 0.3 million in interest expense connected to loans for financing the moviement
GmbH acquisition. Expenses of EUR 0.1 million were recorded for interest rate
hedging transactions and other one-time financing expenses.
c. A multifaceted programming portfolio in the first half-year
MME MOVIEMENT is one of Germany's leading movie and television producers, with
all major TV broadcasters as customers of its entertainment productions. The expansion of the programming portfolio through new productions occupying additional
programming slots is one of MME MOVIEMENT's highest priority strategic objectives, alongside the expansion of its portfolio of customers. These objectives were
systematically pursued and executed over the course of the reporting period.
5
BUSINESS IN THE FIRST HALF-YEAR
Production overview HY1 2005:
Grimme Award for “Polizeiruf 110”
In the Fiction programming category MME MOVIEMENT focuses primarily on high
quality TV movies and series. Production starts during the reporting period included
the filmpool crime series Die Sitte (Community Standards) (3rd season- RTL), the
Degeto TV movie Das Glück klopft an die Tür (Happiness Comes Knocking; working
title: Rein ins Leben - Start Living), another episode of the Grimme prize-winning
Polizeiruf 110 ('Police Line'- ARD/NDR) from Schwerin produced by AllMedia and the
6
BUSINESS IN THE FIRST HALF-YEAR
start of shooting of ten new episodes for the second season of the series Typisch
Sophie (Typically Sophie). In collaboration with Constantin Entertainment, this production project is scheduled for broadcast on Sat.1 in the spring of 2006. The twopart event Eine Liebe in Saigon (Love in Saigon) likewise produced for Sat.1 is
scheduled to be aired September 2005. The first half of 2005 also saw the shooting
of the cinematic co-production Der Liebeswunsch (The Love Wish).
“Sarah & Marc in Love” - the new celebrity docu-soap with strong ratings and big
media coverage
In the “Non-Fiction” programming category, MME MOVIEMENT has been successful
throughout the last few years in systematically establishing new series programming with high viewer recognition.
For ProSieben-Prime-Time MME Entertainment produced German TV's first celebrity
docu-soap, Sarah & Marc in Love, a nine-episode series following dream couple Sarah
Connor and Marc Terenzi as they get ready for their wedding. The show registered
market share of up to 23.7 percent in the advertising-relevant target group of 14 to
49 year olds while generating major cross-media attention as well. “Sarah & Marc in
Love” is ProSieben's most successful production made to order in the prime time for
the current year.
The daily Einsatz in 4 Wänden (Mission in 4 Walls - RTL) has been quite a hit. In the
first half-year the show garnered a viewer market share of 19.5 percent on average
among 14 to 49 year-olds. Building upon this success, MME Entertainment developed
an “extreme” primetime version called Einsatz in 4 Wänden - Extrem for RTL. On the
strength of the pilot broadcast ratings (23.5% in the target group) this version is now
to be made into a weekly series hosted by Tine Wittler in the second half-year, with
the daily show being continued with host Almut Kook.
Starting 5 September, Das Jugendgericht (Juvenile Court) on RTL will be featuring a
new cast and a more modern and expanded studio set. Judge Kirsten Erl from the
city of Essen will be replacing Dr. Ruth Herz on the bench of the TV court. The roles of
public prosecutor and solicitor are also being recast.
MME MOVIEMENT expanded its public-channel business, adding on the two productions Alle zusammen (All Together - filmpool) and Fun Factory (MME Entertainment)
for the children's channel KiKa and ZDF respectively, now addressing the young
viewer market of children and youths.
7
BUSINESS IN THE FIRST HALF-YEAR
The first half of 2005 saw the start of production of the eight-episode docu-soap
Bauer sucht Frau (Farmer Seeks Maid - MME Entertainment) for RTL Prime-Time,
scheduled to be aired this autumn.
MME Entertainment's docu-soap Big in America, following the creation of boygroup
US5, was shown on Viva and RTL II. The Viva broadcast lived up to expectations, and
Maria, the current top ten hit on both the American and German charts demonstrates the effectiveness of this innovative concept. The programme is now to be rebroadcast on Viva. The band US5 has also been the cover feature of the leading youth
magazine “BRAVO”.
MME Entertainment's reality expedition show Peking Express (RTL) has not quite
fulfilled expectations in the age 14 to 49-year viewer category, with a market share
of 12.2 percent on average.
In the Documentary programming category, MME Entertainment produced two additional episodes of the celebrity portrait series 100% for RTL, featuring German stars
Boris Becker and Katharina Witt.
MME Entertainment has extensive programming and production experience in the
Show/Music programming category and knows the tastes of the young 13-29 year-old
age group, as proven by such shows as Top of the Pops, The Dome, and the BRAVO
Supershow. The event show Alive and Swinging was MME Entertainment's first
primetime production for broadcaster ProSieben.
Ratings for Top of the Pops fell below last year's levels over the course of the first halfyear. The show is to undergo a comprehensive relaunch in the second half-year to
reverse this trend. Production for the “MTV2POP” channel for MTV will cease in
September 2005 according to plan, as the MTV is completely restructuring the
channel, to be continued as the kid's channel “Nick”.
8
BUSINESS IN THE FIRST HALF-YEAR
Daily and weekly programming: average ratings for HY1 2005:
Average
Channel
ratings*
ratings*
January - June 2005
Target group 14-49 years
19,5%
12,2%
18,7%
12,2%
Format
Genre
Production
company
Channel Time slot
Zwei bei Kallwass
Richterin Barbara
Salesch
Das Familiengericht
Das Jugendgericht
Niedrig & Kuhnt
Einsatz in 4 Wänden
Psychology Show
Court Show
filmpool
filmpool
Sat.1
Sat.1
daily
2:00 p.m.
3:00 p.m.
Court Show
Court Show
Docu Crime Show
Home improvement
show
Cooking show
filmpool
filmpool
filmpool
MME
Entertainment
MME
Entertainment
MME
Entertainment
RTL
RTL
Sat.1
RTL
3:00 p.m.
4:00 p.m.
5:00 p.m.
5:00 p.m.
20,1%
17,3%
19,4%
19,5%
16,0%
16,0%
12,2%
16,0%
Vox
6:45 p.m.
8,1%
6,4%
RTL
Sat, 5:45 p.m.
10,3%
16,0%
Schmeckt nicht,
gibt’s nicht
Top Of The Pops
Music chart show
* GfK TV research
d. Internationalisation moving ahead
Marketing successes were logged through internal sales efforts and in collaboration
with the Sparks Network for the “Niedrig & Kuhnt” show during the period, with
licensing agreements being concluded in Spain and Poland. In addition, an exclusive
option was granted in France.
e. Balance sheet: equity ratio up to 45 percent from 37 percent
Total Group assets as of 30 June 2005 amounted to EUR 54.6 million, just under the
31 December 2004 level of EUR 55.5 million. At EUR 33.7 million, goodwill represents
the largest balance sheet item, up slightly from the 31 December 2004 figure of EUR
33.5 million. This rise is due to the increased equity stake in AllMedia Pictures GmbH,
purchased in May 2005, from 60 percent to 100 percent.
The decline in intangible assets from EUR 1.6 million (31 December 2004) to EUR 0.2
million is primarily the result of income realised from projects connected with the
acquisition of moviement GmbH. Last year's figure included moviement GmbH
project income not yet fully recognised as of the 31 December 2004 statement date.
9
BUSINESS IN THE FIRST HALF-YEAR
Current assets totalled EUR 16.6 million as of 30 June 2005 (31 December 2004: EUR
17.8 million). While cash and cash equivalents decreased from EUR 6.0 million as of 31
December 2004 to EUR 3.9 million, inventories rose from EUR 2.7 million up to EUR
5.0 million.
Shareholders' equity increased from EUR 20.5 million (31 December 2004) to EUR 24.6
million (30 June 2005), boosting the equity ratio up to 45 percent from a previous 37
percent. MME MOVIEMENT thus has a solid balance sheet with which it will be able
to continue on its course of growth and expansion. The main driver behind the rise
in shareholders' equity was a stock offering placed with institutional investors. In
April MME MOVIEMENT AG placed 620,000 treasury shares priced at EUR 5.80, generating gross proceeds of EUR 3.6 million and EUR 3.4 million net. After deduction of
of the purchase price of the treasury shares the offering generated EUR 2.9 million of
tax-free income, which appears only on the balance sheet and not the income statement in line with IFRS.
One third of acquisition-related loans repaid
Liabilities due to banks continued to decline, representing acquisition-related loans
for financing the moviement GmbH buyout. In less than one year's time, one third of
the original EUR 15.0 million in acquisition-related loan volume has been paid off,
EUR 3.0 million of which in 2004 and EUR 2.0 million in the first half of 2005. Another
EUR 2.0 million is to be retired in the second half of 2005 as well as EUR 4.0 million
per year in the two years following, 2006 and 2007. Debt retirement reduced noncurrent liabilities due to banks by 25 percent versus the 31 December 2004 statement
date to EUR 6.0 million.
Current liabilities totalled EUR 23.4 million at the end of the half year, lower than the
2004 yearend figure of EUR 25.8 million. This was due primarily to a decrease in
accounts payable from EUR 8.1 million (31 December 2004) to EUR 4.0 million.
Liabilities due to banks of EUR 6.3 million were above the 31 December 2004 figure
of EUR 5.9 million. This item includes current liabilities of EUR 4.0 million for acquisition financing in addition to short-term project financing.
10
BUSINESS IN THE FIRST HALF-YEAR
f. Cash flow statement
Cash flow from operating activities was a negative EUR 2.4 million for the period
(2004: EUR 5.1 million). This figure resulted mainly from declining accounts payable
and other liabilities totalling EUR 4.3 million, combined with a EUR 1.6 million
increase in inventories and other assets. Cash flow from investment activity came to
a negative EUR 1.3 million (2004: negative EUR 24.1 million). Outflows for investment
in property, plant and equipment of EUR 0.9 million consist mainly of expenditures
connected with the finishings of MME Me, Myself & Eye Entertainment GmbH's new
premises in Berlin. These investments are being refinanced through public subsidy
funding over a period of three years, with the first subsidy payment anticipated in
the fourth quarter of 2005. Cash flow from financing activities for HY1 2005 was EUR
1.5 million (2004: EUR 13.9 million). This figure reflects both inflows from equity
financing proceeds of EUR 3.4 million from the May 2005 stock offering and outflows
of EUR 2.4 million for the repayment of acquisition-related loans including interest.
g. The MME MOVIEMENT Share
MME MOVIEMENT shares have trended positively over the course of the year thus
far. Closing out the year 2004 at a price of EUR 3.90 in XETRA trading, the shares
again attained their previous high water mark of EUR 6.92 on 4 April. The shares were
trading at EUR 5.62 at the end of the reporting period, roughly 44 percent higher
than at the start of 2005.
Price chart of MME MOVIEMENT shares 01/01/2005 - 08/26/2005:
11
BUSINESS IN THE FIRST HALF-YEAR
Following the stock offering, approximately 56% of share capital is now free float,
with about 44% held directly or indirectly by members of the Management and
Supervisory Boards or other controlling shareholders.
Shareholder structure as of 30 June 2005:
Guehring Automation GmbH
Linus Unternehmensmanagment GmbH
Frontera GmbH 1)
Christoph Post Vermögensverwaltungs GmbH 2)
Stefan Eishold Vermögensverwaltungs GmbH 3)
Gisela Marx
Martin Hoffmann
MME AG
Free Float
Total:
Stück
2.513.000
813.000
723.839
700.132
408.000
100.000
50.000
642.895
5.139.134
11.090.000
Shareholding
22,66%
7,33%
5,81%
5,59%
1,06%
0,90%
0,45%
0,03%
56,17%
100,00%
1) including shares held directly by Jörg A. Hoppe
2) including shares held directly by Christoph Post
3) including shares held directly by Stefan Eishold
h. Annual shareholders meeting held 31 May 2005 in Berlin
The MME MOVIEMENT AG annual shareholders meeting was held 31 May 2005 in
Berlin, at which a broad majority voted to adopt management board proposals.
Among the resolutions passed was the renaming of the company to “MME MOVIEMENT AG” and the transfer of company headquarters from Hamburg to Berlin. The
corresponding entries into the Commercial Register were made effective 15 August
2005. Other resolutions included the appointment of Dr. Bernhard Heiss to the
Supervisory Board, approval of a control and profit transfer agreement between
MME Me, Myself & Eye Entertainment AG and moviement GmbH, the renewal of the
share buyback programme, and the revocation and reapportionment of authorised
capital. MME MOVIEMENT AG now has authorised a total of EUR 5.545 million in
additional capital through 30 May 2010. The company furthermore received approval
to repurchase shares up to a maximum 10 percent of share capital, valid through 30
November 2006. These resolutions and MME MOVIEMENT AG's high equity ratio give
the enterprise the necessary flexibility to make additional acquisitions whenever
appropriate.
12
BUSINESS IN THE FIRST HALF-YEAR
i. Further optimisation of Group structure
During the period, MME MOVIEMENT continued in its efforts to optimise the Group's
structure. In May the 60 percent stake held in AllMedia Pictures GmbH was increased up to 100 percent. filmpool GmbH & Co. KG was merged into moviement GmbH,
which in turn is being renamed into filmpool Film- and Fernsehproduktions GmbH.
Additionally, wholly-owned non-operating subsidiaries Eyeland GmbH and Pop 2000
GmbH were merged into Shownet GmbH, which itself is to be merged into MME
Entertainment GmbH at the conclusion of the fiscal year. These moves provide for a
simplified Group structure in which the three operating companies are directly held,
wholly-owned subsidiaries of MME MOVIEMENT AG. The structure allows for direct
management and control, simplified internal MME MOVIEMENT reporting and an
optimised tax situation.
Group structure (schematic):
13
OUTLOOK
3. Outlook
The advertising market shows few signs of a revival for the remainder of 2005.
According to a survey by the German Advertising Industry Association (ZAW), 68 percent of the advertising industry expects advertising expenditures to stagnate in
2005. The major TV corporations in the German television advertising market are not
anticipating a recovery in 2005. Coming after a 1.3 percent increase in German television broadcasters' net advertising revenues in 2004 according to ZAW data, both
the ProSiebenSat.1 Group and RTL are predicting a decline in television ad expenditures of around two percent for 2005.
In this type of environment, MME MOVIEMENT will continue its systematic efforts to
cultivate its existing programming slots and expand its portfolio by adding on new
customers and innovative productions. A further strategic objective is to make use of
the opportunities offered by the digitisation of the media markets. A production
order by Discovery Channel/Animal Planet, one of the leading digital niche channels,
marks a first achievement in this regard. Another focus will be looking out for acquisitions suitable for further consolidating the company's position in the market.
Based on the revenues obtained in the first half-year and revised estimates, MME
MOVIEMENT projects revenue for full year 2005 of up to EUR 84 million. In view of
the continuing difficult conditions facing broadcasters, EBITDA margin is estimated
at nine to ten percent. This prognosis presupposes in particular the continuation of
all of the Group's serial programs on an unchanged basis.
14
CONSOLIDATED BALANCE SHEET
(IN ACCORDANCE WITH IFRS)
ASSETS
06/30/2005
EUR 000’s
06/30/2004
EUR 000’s
Goodwill
Intangible assets
Property, plant and equipment
Financial assets
33.693
204
1.601
1
0
90
324
1
Deferred taxes
2.490
603
37.989
1.018
Inventories
5.031
725
Accounts receivable
Deferred items and other assets
Cash and cash equivalents
6.147
1.512
3.875
1.292
1.046
9.391
TOTAL CURRENT ASSETS
16.565
12.454
TOTAL ASSETS
54.554
13.472
NON-CURRENT ASSETS
TOTAL NON-CURRENT ASSETS
CURRENT ASSETS
15
CONSOLIDATED BALANCE SHEET
(IN ACCORDANCE WITH IFRS)
LIABILITIES
06/30/2005
EUR 000’s
06/30/2004
EUR 000’s
Subscribed capital
Capital reserves
Net profit/loss for the year
Minority interests
11.087
23.004
-9.524
59
7.007
13.279
-11.045
0
TOTAL SHAREHOLDERS' EQUITY
24.626
9.241
63
6.000
90
0
511
14
6.574
104
Liabilities due to banks
Advance payments received
Accounts payable
Other liabilities
Tax provisions
Provisions and deferred liabilities
6.337
2.585
4.031
2.994
3.487
3.919
0
0
1.348
2.240
1
538
TOTAL CURRENT LIABILITIES
23.353
4.127
TOTAL LIABILITIES
54.554
13.472
SHAREHOLDERS' EQUITY
NON-CURRENT LIABILITIES
Bonds, notes and debentures
Liabilities due to banks
Deferred taxes
TOTAL NON-CURRENT LIABILITIES
CURRENT LIABILITIES
16
CONSOLIDATED INCOME
STATEMENT
(IN ACCORDANCE WITH IFRS)
01/01/2005 06/30/2005
EUR 000’s
01/01/2004 06/30/2004
EUR 000’s
34.786
9.761
2.438
642
-29.863
-3.098
-1.951
-3
492
469
-6.890
-1.938
-1.066
0
2.951
828
Depreciation/amortisation
-1.643
-161
Earnings before interest and taxes (EBIT)
1.308
667
-397
91
911
758
-256
-36
Result before minority interests
655
722
Minority interests (Income Stmt)
-28
0
Group net income for the year
627
722
0,06
0,10
10.687.989
7.007.105
Revenues
Change in inventory of finished and unfinished productions
Other operating income
Expenses for materials procured
Personnel expenses
Other operating expenses
Other taxes
Earnings before taxes, depreciation and amortisation (EBITDA)
Financial result
Earnings before taxes and minority interests
Taxes on income and revenue
Earnings per share in EUR (undiluted)
Average number of shares outstanding (undiluted)
17
CONSOLIDATED CASH FLOW
STATEMENT
(IN ACCORDANCE WITH IFRS)
01/01/2005 06/30/2005
EUR 000’s
01/01/2004 06/30/2004
EUR 000’s
Earnings before interest and taxes (EBIT)
1.308
667
Earnings attributable to minority interests
Depreciation of fixed assets (+)
Increase (-)/decrease (+) in provisions
Other non-cash expenses /revenues
Profit/loss from the sale of non-current assets
Increase (-)/decrease (+) in inventories, accounts
receivable and other assets
Increase (+)/decrease (-) in inventories, accounts
payable and other liabilities
Financial result
Tax payments
0
1.643
1.034
-88
-17
0
99
21
0
0
-1.630
-873
-4.334
-32
-256
490
91
-36
Cash flow from operating activity
-2.372
459
-864
-73
-167
0
-315
0
-1.252
-167
3.433
-2.028
-365
457
0
0
0
0
0
30
Cash flow from financing activity
1.497
30
Net change in cash and cash equivalents
-2.127
322
Cash and cash equivalents at start of period
6.002
9.069
Cash and cash equivalents at end of period
3.875
9.391
Investment in property, plant and equipment
Investment in intangible assets
Investment from acquisition of consolidated enterprises
and other business units
Cash flow from investment activity
Payments from new equity injections (sales of shares)
Payback of bank loans
Interest payments in connection with (finance) credits
Change in current liabilities due to banks
Employee profit sharing plan contributions
18
NOTES TO CONSOLIDATED
ACCOUNTS
Selected explanatory notes in accordance with International Financial Reporting
Standards (IFRS) to the interim report for period from January 1 to June 30, 2005
General Information
These Group Financial Statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS) and the interpretations of the
International Reporting Interpretations Committee (IFRIC) thereto being in effect on
the date of statement. This unaudited and reduced interim report should be read in
conjunction with the audited annual report per December 31, 2004 and the notes
thereto. This unaudited and reduced interim report contains all information which is
deemed necessary by the management board to give a true and fair view on the
events within the reporting period.
General Principles of Accounting
The General Principles of Accounting applied to the audited Group Financial
Statement per December 2004, 31 have been applied largely to this unaudited
Intermim Report per June 30, 2005.
19
Gotzkowskystr. 20-21
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Tel: +49 (0) 30 • 52 00 76 - 0
Fax: +49 (0) 30 • 52 00 76 - 500
Munich Office
Residenzstr. 18
D-80333 München
Tel: +49 (0) 89 • 24 20 73 - 0
Fax: +49 (0) 89 • 24 20 73 - 25
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www.mmemoviement.de
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Mathias Bothor /ProSieben
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