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EXHIBIT 2.5
Execution copy
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Contribution Agreement
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CONTRIBUTION AGREEMENT
by and among
ADVERTISING ANTWERPEN B.V.
CALLE ARCOS, S.L.
CANTABRO CATALANA DE INVERSIONES, S.A.
COMPANIA DE CARTERA E INVERSIONES, S.A.
DEYA, S.A.
HAVAS ADVERTISING, S.A.
MARTINEZ-ROVIRA
INVERMARO, S.L.
and
INVERSIONES Y SERVICIOS PUBLICITARIOS, S.A.
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TABLE OF CONTENTS
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Page
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1.- OBJECT OF THIS AGREEMENT.................................................... 4
2.- DETERMINATION OF NEW MP..................................................... 4
3.- MEDIA BUSINESS CONTRIBUTIONS................................................ 4
3.1.- Media Business Contributions by MP Shareholders....................... 4
3.2.- Media Business Contributions by HA.................................... 5
3.3.- Transfer consideration................................................ 7
3.4.- Description of Media Business Contributions........................... 7
3.5.- Representations and warranties........................................ 8
3.5.1.- With respect to the Media Business Contributions and New MP... 8
3.5.2.- Obligation to indemnify....................................... 8
3.5.3.- Representations and warranties time bar....................... 9
3.5.4.- Claim procedure............................................... 9
3.5.5.- Minimum claim and recovery.................................... 11
3.5.6.- Access to New MP.............................................. 11
4.- CLOSING..................................................................... 11
5.- MIGRATION................................................................... 12
Portugal......................................................................... 12
Spain............................................................................ 12
6.- OTHER ISSUES................................................................ 13
6.1.- Non-competition exception............................................. 13
6.2.- Fulfilment of conditions precedent.................................... 14
6.3.- Latin American subsidiaries agreement................................. 14
6.4.- Press release......................................................... 14
6.5.- Approvals............................................................. 14
7.- REGULATORY ISSUES........................................................... 14
8.- NOTICES..................................................................... 14
9.- GOVERNING LAW............................................................... 16
10.- ASSIGNABILITY............................................................... 16
11.- JURISDICTION................................................................ 16
12.- ANNEXES..................................................................... 17
13.- INTEGRATION WITH MERGER AGREEMENT AND IMPLEMENTATION AGREEMENTS............. 17
14.- NEW MP AS A PARTY........................................................... 17
List of Annexes............................................................. 19
Annex A - Definitions....................................................... 20
Annex 3.4 - Description of the Media Business Contribution.................. 21
Annex 3.5.1 - Representations and warrants.................................. 37
Annex 3.5.2 - Proportional liability MP Shareholders........................ 38
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THIS AGREEMENT is executed on this 22nd day of March 1999
BY AND AMONG
ADVERTISING ANTWERPEN B.V., a "besloten vennootschap met beperkte
aansprakelijkheid" (private company with limited liability) duly incorporated
and legally existing under the laws of The Netherlands with corporate seat in
Amsterdam, The Netherlands, and registered office at World Trade Center, Tower
B, 17th floor, Strawinskylaan 1725, 1077 XX Amsterdam, The Netherlands,
registered with the Trade Register in Amsterdam under number 33.250.361, duly
represented by Mr. Leopoldo Rodes Castane, of Spanish nationality, of legal age,
and with passport number 36210822, by virtue of a power of attorney granted by
the Managing Director, formalized before the Notary Public Dr. Gerard Strang of
Amsterdam, The Netherlands, on January 26,1999 ("Advertising Antwerpen"),
CALLE ARCOS, S.L., a limited liability company duly incorporated and legally
existing under the laws of Spain, with registered office in Madrid (Spain),
calle Alberto Alcocer 10, 3B, registered with the Trade Register in Madrid,
volume 8,495, folio 8, page number M-136.882, with Tax Identification Number B-
60458163, duly represented by Mr. Fernando Rodes Vila, of Spanish nationality,
of legal age, and with Identification Number 46219948-E, by virtue of the power
of attorney granted by the Sole Administrator (Administrador Solidario), before
the Notary Public of Barcelona, Mr. Javier Garcia Ruiz, with number 1.228 of his
protocol, on March 18, 1999 ("Calle Arcos"),
CANTABRO CATALANA DE INVERSIONES, S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Santander (Spain), Paseo de Pereda n 9, registered with the Trade
Register in Cantabria, volume 643, folio 97, page number S-8744, second
inscription, with Tax Identification Number A-08007478, duly represented by Mr.
Francisco Gonzalez-Robatto Fernandez, of Spanish nationality, of legal age, with
Identification Number 50.792.382X, by virtue of the power of attorney granted by
the Board of Directors on January 20, 1999 and formalized before the Notary
Public of Santander Mr. Jose Maria Prada Diez on January 25, 1999, with number
193 of his protocol ("Cantabro Catalana"),
COMPANIA DE CARTERA E INVERSIONES, S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Madrid (Spain), Paseo de la Castellana 81, registered at the Trade
Register in Madrid volume 5129, 4279 of the third section, folio 24, page number
40669, with Tax Identification Number A-48027890, duly represented by Mr. Manuel
Esteve Claramun, of Spanish nationality, of legal age, and with Identification
Number 39000910-V, or Mr. Pastor Sampedro Lago, of Spanish
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nationality, of legal age, and with Identification Number 14377641-L; by virtue
of the power of attorney granted by the Sole Administrator (Administrador
Solidario) and formalized before the Notary Public of Bilbao Mr. Jose Maria
Arriola Arana with number 294 of his protocol, on January 26, 1999 ("Compania de
Cartera e Inversiones"),
DEYA, S.A., a limited liability company duly incorporated and legally existing
under the laws of Luxembourg, with registered office at 19-21 Boulevard du
Prince Henri, L-1724 Luxembourg, R.C 26285, registered with the Trade Register
in Luxembourg under number 26.285, Section B, with Tax Identification Number A-
J7500040, duly represented by Mr. Enrique Pinel Lopez, of Spanish nationality,
of legal age, and with Identification Number 2.011.846-K in his capacity as
Administrator of the company specially empowered by virtue of the resolution
passed by the Board of Directors on January 19, 1999, legalised before the
Notary Public of Luxembourg, Mr. Paul Bettingen, on January 25, 1999 ("Deya"),
Mr. JOSE MARTINEZ-ROVIRA VIDAL, of Spanish nationality, of legal age and with
Identification Number 37.604.987-X, on his own behalf and name, and duly
representing:
- Mrs. MARIA LUISA MUNOZ ALVAREZ, of Spanish nationality, of legal age and with
Identification Number 37.749.687-V;
- Mrs. CRISTINA MARTINEZ-ROVIRA MUNOZ, of Spanish nationality, of legal age and
with Identification Number 46.133.906-T; and
- Mrs. SANDRA MARTINEZ-ROVIRA MUNOZ, of Spanish nationality, of legal age and
with Identification Number 38.135.202-Y,
by virtue of a power of attorney granted in his favour by the above-mentioned
persons, formalized before the Notary Public of Barcelona, Mr. Amador Lopez
Balina, with number 361 of his protocol,(together "Martinez-Rovira")
INVERMARO, S.L., a limited liability company duly incorporated and legally
existing under the laws of Spain, with registered office in Barcelona (Spain),
called Dr. Fleming, 17, registered with the Trade Register in Barcelona, volume
10,952, folio 99, page number B-11,967, third inscription, with Tax
Identification Number A-58846858, duly represented by Mr. Jose Martinez-Rovira
Vidal, of Spanish nationality, of legal age, and with Identification Number
37.604.987-X, by virtue of the power of attorney granted by the Sole
Administrator (Administrador Unico) on April 22, 1997 and formalized before the
Notary Public of Barcelona, Mr. Armador Lopez Balina, with number 2,051 of his
protocol ("Invermaro"), (the "MP Shareholders")
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HAVAS ADVERTISING S.A., a limited liability company duly incorporated and
legally existing under the laws of France, with registered office at 84, rue de
Villiers, 92683 Levallois-Perret (France), registered with the Trade Register
inNanterre under number B335480265, duly represented by Alain de Pouzilhac, of
French nationality, of legal age, married, with address in 75008 Paris, 21 Rue
de Miromesnil, and with passport number 753197031529 ("HA"), in his capacity as
President of the Board of Directors. (collectively the "Parties") and
INVERSIONES Y SERVICIOS PUBLICITARIOS S.A., a limited liability company duly
incorporated and legally existing under the laws of Spain, with registered
office in Madrid (Spain), calle Alberto Alcocer n 10, Apt. 3 B, registered with
the Trade Register in Madrid, volume 8661 general, 7529 of the third section of
the Company register, folio 95, page number 82483-2, with Tax Identification
Number A-78809662, duly represented by Mr. Alfonso Rodes Vila, of Spanish
nationality, of legal age and with Identification Number 46 117.271-V, by virtue
of the power of attorney granted by the Sole Administrator (Administrador
Unico), before the Notary Public of Barcelona, Mr. Javier Garcia Ruiz, with
number 1.229 of his protocol, on March 18,1999 ("New MP").
WHEREAS
I. On November 29th, 1998, the Parties executed an agreement (the "Merger
Agreement"), amended by a letter agreement dated January 21st, 1999 and a
supplemental and amendment agreement executed on the date hereof (the
"`Supplemental Agreement"), establishing the terms and conditions pursuant
to which they would combine their Media Business.
II. Clause 2.1 of the Merger Agreement provided for the execution of a
contribution agreement describing in detail the Media Business to be
contributed (the "Media Business Contributions"), determining therein the
assets, rights and contractual obligations to be transferred, as well as
the inclusion of certain other matters.
III. Having all conditions precedent been fulfilled, the Parties wish to proceed
with the obligations established in the Merger Agreement, and execute this
Contribution Agreement, which should be understood and construed as an
implementation of the Merger Agreement.
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IV. HA is a party to this Agreement acting for itself and for its group
companies, to the extent such group companies own any of the Media Business
to be contributed pursuant to this Agreement.
NOW THEREFORE the Parties hereby agree as follows:
Definitions:
------------
Capitalized terms shall have the meaning ascribed to them in this Agreement, if
defined herein, or the meaning ascribed to them in the Merger Agreement, if
defined therein. Terms are defined in the text of the Agreement where most
appropriate. For ease of reference, all capitalized terms are indexed in Annex
A.
1.- OBJECT OF THIS AGREEMENT
The object of this Contribution Agreement is to (i) determine in detail as far
as possible the Media Business Contributions to be transferred on the Merger
Date, and establish representations and warranties thereto; and (ii) reflect
certain issues required under the Merger Agreement.
2.- DETERMINATION OF NEW MP
The Parties agree that New MP shall be Inversiones y Servicios Publicitarios,
S.A., which name will be amended, as provided in the Merger Agreement.
3.- MEDIA BUSINESS CONTRIBUTIONS
3.1.- Media Business Contributions by MP Shareholders
-----------------------------------------------------
MP shareholders shall contribute to New MP by contribution in kind, with effect
as of January 1st, 1999, the MP shares described below:
Deya:
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40,000 shares in the share capital of MP, with a nominal value of one thousand
pesetas (1,000 ptas.) each, numbers 638 to 2.250 inclusive, numbers 2.514 to
7.025 inclusive, numbers 11.776 to 15.000 inclusive, numbers 42.476 to 50.000
inclusive, numbers 68.226 to 78.500 inclusive, numbers 80.567 to 88.166
inclusive and numbers 89.251 to 94.500 inclusive.
Compania de Cartera e Inversiones:
----------------------------------
20,000 shares in the share capital of MP, with a nominal value of one thousand
pesetas (1,000 ptas.) each, numbers 126 to 250 inclusive, numbers 7.751 to
10.850
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inclusive, numbers 19.901 to 27.425 inclusive, numbers 67.001 to 67.750
inclusive, numbers 99.501 to 100.000 inclusive, numbers 27.426 to 31.425
inclusive, numbers 31.426 to 34.950 inclusive and numbers 67.751 to 68.225
inclusive.
Cantabro Catalana:
------------------
5,000 shares in the share capital of MP, with a nominal value of one thousand
pesetas (1,000 ptas.) each, numbers 39.783 to 41.282 inclusive, numbers 59.501
to 62.000 inclusive and numbers 79.567 to 80.566 inclusive.
Invermaro:
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2,999 shares in the share capital of MP, with a nominal value of one thousand
pesetas (1,000 ptas.) each, numbers 41.283 to 41.716 inclusive, numbers 65.502
to 67.000 inclusive and numbers 78.501 to 79.566 inclusive; Invermaro will enter
into a split off process after the date of this Agreement, whereby the shares
that it owns in MP as well as the shares that it owns in Calle Arcos will be
transferred to New MP in exchange for shares of New MP to be issued to its
shareholders, Martinez-Rovira. Due to the split off process, transfer of the
shares of MP that Invermaro owns may occur after the Merger Date. This shall not
affect completion of the Merger,
Calle Arcos:
3,002 shares in the share capital of MP, with a nominal value of one thousand
pesetas (1,000 ptas.) each, numbers 64.001 to 65.501 inclusive and numbers
58.000 to 59.500 inclusive; Calle Arcos will be merged ("cesion global de
activos y pasivos") into New MP prior to the Merger Date. As a result, on or
subsequent to the Merger Date Calle Arcos shall cease to exist and the shares of
MP held by Calle Arcos, as of the date hereof, will have been transferred to New
MP.
Advertising Antwerpen is not required to contribute the shares that it owns in
----------------------
MP since they are all held through New MP; New MP presently holds 28,999 shares
in the share capital of MP, with a nominal value of one thousand pesetas (1,000
ptas.) each, numbered 7.426 to 7.750 inclusive; 41.717 to 42.475 inclusive;
88.167 to 89.250 inclusive; 34.951 to 39.782 inclusive; 94.501 to 99.500
inclusive; 57.001 to 57.999 inclusive; 1 to 125 inclusive; 251 to 637 inclusive;
2.251 to 2.513 inclusive; 7.026 to 7.425 inclusive; 10.851 to 11.775 inclusive;
15.001 to 19.900 inclusive; 50.001 to 57.000 inclusive; 62.001 to 64.000
inclusive.
3.2.- Media Business Contributions by HA
----------------------------------------
HA shall contribute to New MP by contribution in kind with effect as of January
1st, 1999;
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a) all the shares (except for the minimum shares held by directors for the
purpose of their appointment as required by law and/or the by-laws) of
Mediapolis Worldwide, S.A. which shall own, in addition to its own business
activity, all the shares (except for the minimum shares held by directors for
the purpose of their appointment as required by law and/or the by-laws),
whether directly or indirectly, of the following companies:
- AFFI Conseil S.A.
- Concerto Media S.A.
- HCA SNC (which name may be changed by HA prior to Merger Date)
- MCBB S.A.
- Mediapolis S.A.
- Societe d'Expertise Media SNC, which will include the division
identified as CCA
b) all the shares (except for the minimum shares held by directors for the
purpose of their appointment as required by law and/or the by-laws) of
Mediapolis UK Limited, a company which shall exclusively own all the Media
Business developed by HA Group in England.
c) all the shares (except for the minimum shares held by directors for the
purpose of their appointment as required by law and/or the by-laws) of
Mediamaatwerk B.V.
d) all the shares (except for the minimum shares held by directors for the
purpose of their appointment as required by law and/or the by-laws) of
Mediapolis Mediapressing S.r.l.
e) all the shares (except for the minimum shares held by directors for the
purpose of their appointment as required by law and/or the by-laws) of SFM
Media LLC (or all the shares (except for the minimum shares held by directors
for the purpose of their appointment as required by law and/or the by-laws)
of Havas North America, Inc., (which name may be changed by HA prior to
Merger Date) which only owns SFM Media LLC, if approved by the Interim
Committee by majority vote as defined in the Supplemental Agreement), unless
they have been previously transferred to Mediapolis Worldwide S.A. referred
to in a) above.
f) all the shares (except for the minimum shares held by directors for the
purpose of their appointment as required by law and/or the by-laws) of
Mediapolis - Prestcao de Servicios Publicitarios, Lda.
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g) all contributions to be made pursuant to migration, such as contracts,
personnel and any assets, rights and contractual obligations necessary to
carry out the Media Business.
Pursuant to clause 1.2.3.- of the Merger Agreement, New MP shall purchase from
HA all shares of Mediapolis Espana, S.A. for the price of 1 peseta on the Merger
Date.
3.3.- Transfer consideration
----------------------------
The share capital of New MP shall be increased on the Merger Date for the
relevant amount of the Media Business Contributions to be made to New MP. The
determination of such capital increase (par value and share premium) shall be
determined on the Merger Date, taking into account the following percentages:
Advertising Antwerpen 16.775%
Deya: 22.000%
Compania de Cartera e Inversiones: 11.000%
Cantabro Catalana: 2.750%
Invermaro/ Martinez-Rovira: 2.475%
HA: 45%
3.4.- Description of Media Business Contributions
-------------------------------------------------
Detailed descriptions of each of the Media Business Contributions pursuant to
clause 3.1 and clause 3.2 are annexed to this Contribution Agreement. Said
descriptions include:
Companies:
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- Description of the companies and the shares
- 1998 Financial Accounts (balance sheet and profit and loss accounts) for each
of the companies transferred, except for Mediapolis UK Limited for which
analytical profit and loss accounting for 1998 and a balance sheet as per
January 1st, 1999 will be presented and for Mediapolis - Prestacao de
Servicios Publicitarios, Lda. for which 1998 Financial Accounts will be
presented including all Media Business revenues of local HA advertising
agencies on a proforma basis.
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Migration, including CCA:
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- list of all personnel, including their remuneration and any special
conditions that do not conform to market practice
- list of all clients to be migrated
- EBITDA, billing, gross income and expenses (compensation and other expenses)
all per country.
The name "HAVAS" and the corresponding logo are not included in the Media
Business Contributions of HA, which the MP Shareholders expressly accept.
3.5.- Representations and warranties
------------------------------------
All representations and warranties are given by HA with respect to the Media
Business Contributions made by HA only and are given by the MP Shareholders with
respect to the Media Business Contributions made by the MP Shareholders only.
3.5.1.- With respect to the Media Business Contributions and New MP
-------------------------------------------------------------------
HA and the MP Shareholders hereby mutually represent and warrant for the benefit
of New MP that the representations and warranties as set forth in Annex 3.5.1.
with respect to their respective Media Business Contributions are at the date
hereof and will be at the Merger Date true, correct and accurate as stated in
such Annex.
The MP Shareholders hereby represent and warrant for the benefit of HA that the
representations and warranties as set forth in Annex 3.5.1.- with respect to New
MP are true, correct and accurate as stated in such Annex.
3.5.2.- Obligation to indemnify
-------------------------------
Each of HA and the MP Shareholders, as the case may be, agrees to indemnify and
hold New MP harmless against any loss, whether direct or indirect, caused to or
sustained by New MP arising from:
(i) the inaccuracy or breach of any representation set forth in Annex 3.5.1.-
with respect to the Media Business Contributions;
(ii) any costs and expenses, including reasonable legal fees, incurred in
connection with the judicial enforcement by New MP of its rights under this
clause, provided that the final court decision awards such cost to New MP.
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Similarly, the MP Shareholders agree to indemnify and hold HA harmless against
any loss, whether direct or indirect, caused to or sustained by HA arising from:
(i) the inaccuracy or breach of any representation set forth in Annex 3.5.1.-
(paragraphs 19 to 23) with respect to New MP;
(ii) any costs and expenses, including reasonable legal fees, incurred in
connection with the judicial enforcement by HA of its rights under this
clause, provided that the final court decision awards such cost to HA.
The liability of the MP Shareholders to New MP and HA hereunder is joint
("mancomunada") and not several, and therefore each of the MP Shareholders shall
only be liable for the proportions set forth in Annex 3.5.2 to this Agreement.
The Parties agree that the sole remedy for any claim, whatsoever under this
Contribution Agreement shall be as provided in clause 3.5.- herein.
3.5.3.- Representations and warranties time bar
-----------------------------------------------
The Parties shall be responsible for any breach or inaccuracy of the
representations and warranties provided that any claim made by any Party in
connection with said representations and warranties is made in the manner
provided for in clause 3.5.4. before June 30th, 2000, with the exception of (i)
any claim arising from any tax or social security audit by the relevant public
authority covering any period prior to December 31st, 1998, with regard to which
the Parties shall remain liable until expiration of the legal statute of
limitations applicable plus one month, and (ii) any representations and
warranties made in Annex 3.5.1 by HA with respect to the United Kingdom
(paragraph 24) and with respect to Havas North America, Inc. (paragraph 25),
should the Interim Committee approve it, and any representations and warranties
made in Annex 3.5.1 by the MP Shareholders with respect to New MP (paragraphs 19
through 23), which shall be limited by the relevant statute of limitations.
3.5.4.- Claim procedure
-----------------------
a) By New MP
If New MP is notified by HA or any of the MP Shareholders of any facts which
give rise to any obligation to indemnify New MP pursuant to this Agreement
(hereinafter referred to as the "Event Subject to Indemnification"), New MP
shall send written claim for indemnification (hereinafter referred to as the
"Notification") to the party against whom the claim for indemnification is
asserted (hereinafter the "Party in Question"), with a copy to the other party,
promptly after being notified of the Event Subject to Indemnification disclosing
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the details thereof, and the Party in Question shall respond within seven (7)
days as of the receipt of the Notification to this effect:
(i) if the Event Subject to Indemnification does not involve any third party,
then, the Party in Question shall respond as to its intention to (a) pay
the amount involved in the Event Subject to Indemnification, as disclosed
by New MP; (b) refuse to accept the event as an Event Subject to
Indemnification; or (c) discuss the subject matter. In the event the option
elected is (a), the Party in Question will pay the amount involved within
fifteen (15) days as of the date of its response; if the option elected is
(b), New MP shall be free to start, if it so considers appropriate, any
legal action or proceeding in pursuance of its rights within a maximum
period of four (4) months as of the Notification after which time no
further claim for the indemnification of the specific event in question may
be asserted by New MP; if the option selected is (c), then the parties
shall discuss the issues involved during a period of fifteen (15) days as
of the receipt of the Notification and if they reach an agreement, any
payment required thereby shall be made by the Party in Question to New MP
as and when agreed. If they do not reach an agreement within such fifteen
(15) day period, New MP shall be free to start, if it so considers it
appropriate, any legal action or proceeding in pursuance of its rights
within a maximum period of four (4) months as of the Notification after
which time no further claim for the indemnification of the specific event
in question may be asserted by New MP.
(ii) If the Event Subject to Indemnification involves any third party (whether
public or private, natural or judicial, court, investigation agency,
governmental, autonomous or municipal institution or otherwise) and
notwithstanding the above mentioned seven (7) days for the Party in
Question to respond to the Notification, the Party in Question may be
requested, if the Event Subject to Indemnification requires so, to reply
within less than seven (7) days.
Any Party may request New MP to exercise its rights for indemnification under
this Agreement by serving notice upon New MP. If New MP does not exercise its
rights under this clause 3.5 within thirty (30) days from the moment of receipt
of notice, the Party which has requested New MP to exercise its rights hereunder
has the right to pursue the claim concerned on behalf of New MP.
b) By HA
Should HA consider that a breach of' the representations made by the MP
Shareholders concerning New MP (paragraphs 19 to 23 of Annex 3.5.1.-) has
occurred, HA shall notify the MP Shareholders providing all details of the
claim. HA (i.e. not New MP) may initiate
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legal action against the MP Shareholders on the basis of such claim as and when
HA shall determine, unless an agreement is reached for the settlement of such
claim.
3.5.5.- Minimum claim and recovery
----------------------------------
No claim may be made pursuant to clause 3.5.4. in respect of any individual loss
which is less than 50,000 Euros and which in the aggregate (adding only losses
above 50,000 Euros individually) is less than 1,500,000 Euros for losses
indemnifyable by HA or less than 1,833,000 Euros for losses indemnifyable by the
MP Shareholders. These thresholds shall not apply to claims regarding the United
Kingdom (paragraph 24) of Annex 3.5.1.-) nor to claims regarding Havas North
America, Inc. (paragraph 25 of Annex 3.5.1.-) nor to claims regarding New MP
(paragraphs 19 to 23 of Annex 3.5.1.-).
If the Party in Question has paid any amount in respect of a claim under this
clause 3.5.-, and New MP subsequently receives or recovers from a third party a
sum which is referable to such claim, New MP shall forthwith repay the Party in
Question the amount so received or recovered, net of any taxes for which New MP
is liable to be assessed or accountable in respect thereof, up to the amount
which has been paid by the Party in Question in respect of such claim.
3.5.6.- Access to New MP
------------------------
New MP shall provide to HA and the MP Shareholders access to any relevant
information required for the performance of this Contribution Agreement,
including to its managers, books and records upon reasonable notice.
4.- CLOSING
On the Merger Date, the then shareholders of New MP shall hold a general
shareholders meeting and approve the relevant increase in share capital as
referred to in clause 3.3. The general shareholders meeting of New MP shall be
effected in Madrid, Spain, through the intervention of a notary public.
As soon as the increase in share capital is registered at the Mercantile
Register, New MP shall issue and deliver to the MP Shareholders and HA:
- The share certificates, if any, for the newly issued shares;
- Certificate of ownership registration in the register book of New MP;
- Evidence of registration of the increase of capital at the Mercantile
Register.
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5.- MIGRATION
The Media Business performed in HA Group advertising agencies shall be
transferred to New MP. In consequence, HA shall provide its best efforts to
achieve that on or prior to the Merger Date the clients of the respective HA
Group advertising agencies requiring Media Business services shall have
contracted directly with the respective New MP Subsidiaries, either by entering
into agreements or by the assignment of the existing agreements to the following
companies:
France
Mediapolis S.A., MCBB S.A., Concerto Media S.A., Affi Conseil S.A.
United Kingdom
Mediapolis UK Limited
The Netherlands
Mediamaatwerk B.V.
Italy
Mediapolis Mediapressing S.r.l.
Portugal
Mediapolis - Prestacao de Servicios Publicitarios, Lda.
Spain
Mediaplanning, S.A.
USA
SFM Media, LLC (in accordance with clause 1.3.1 of the Merger Agreement)
Argentina
Media Planning Argentina S.A.
(the "New MP Subsidiaries")
On or prior to the Merger Date the following documents shall be provided by HA
to New MP:
(i) Copies of the agreements entered into by the respective New MP Subsidiaries
and the clients concerned; or
(ii) Copies of the confirmation letters from the clients accepting the
assignments of their agreements to the respective New MP Subsidiaries
simultaneously with the assignments,
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unless the clients have refused to enter into agreements or accept said
assignments, as applicable, in which case - on or prior to the Merger Date -
subcontracting agreements shall have been executed between the relevant New MP
Subsidiaries and the HA Group advertising agencies to ensure that the Media
Business services are actually provided to such clients by the New MP
Subsidiaries, though direct invoicing to the clients is not made by the New MP
Subsidiaries.
Furthermore, on or prior to the Merger Date:
(i) agreements concerning the services relationship between the respective HA
Group advertising agencies and the respective New MP Subsidiaries,
existing prior to the transfer of the Media Business and necessary after
such date, such as legal, accountancy, computer and leasing services, will
have been executed, ensuring the continuance of such services at the
existing rates and standards, which must conform to market rates and
standards;
(ii) all assets, rights and contractual obligations related to the Media
Business of the HA Group shall have been transferred; and
(iii) such employees related to the Media Business of the HA Group, linked to
the Media Business and necessary to carry out the Media Business in the
ordinary course of business, shall have been transferred.
All contracts to be executed between the New MP Subsidiaries and the HA Group
advertising agencies pursuant to this clause 5 will maintain the conditions
determining the figures used for EBITDA calculations (subject to agreed index
clauses, provided they are at ordinary market rates,) until the relevant clients
cease to be HA Advertising agency clients.
6.- OTHER ISSUES
6.1.- Non-competition exception
-------------------------------
The information to be delivered by HA pursuant to clause 1.2.2.-a) (iii) of the
Merger Agreement has not been delivered; HA undertakes to provide such
information within thirty (30) days as of the date hereof for review and, if
appropriate, approval by the MP Shareholders.
13
<PAGE>
6.2.- Fulfilment of conditions precedent
----------------------------------------
The Parties acknowledge that all conditions precedent to be fulfilled prior to
Implementation Date and as established in clause 1.2.2 of the Merger Agreement
have been fulfilled, except for Portugal.
6.3.- Latin American subsidiaries agreement
-------------------------------------------
MP has agreed with Banco Bilbao Vizcaya ("BBV") and Banco Santander ("BS") the
execution of an agreement providing BBV and BS the right to acquire upto ten
percent (10%) each of any MP Latin American subsidiary, which HA accepts.
6.4.- Press release
-------------------
Pursuant to clause 7.1.2. of the Merger Agreement, the Parties agree to disclose
the existence of the Merger Agreement through a joint press release according to
the text which shall be jointly agreed.
6.5.- Approvals
---------------
Pursuant to clause 12 of the Merger Agreement, the Parties expressly confirm and
represent that their respective board of directors or person with sufficient
legal power have approved the Merger Agreement.
7.- REGULATORY ISSUES
This Agreement is subject to the European Commission not opposing the Merger.
The Parties hereby confirm that they shall notify the proposed Merger to the
European Commission under Rule 1310/97 on European concentrations in compliance
with applicable regulations, forthwith upon execution of this Contribution
Agreement.
8.- NOTICES
Any notice, request, demand or other communication given with reference to this
Agreement shall be delivered by hand, by notarial letter or by telefax,
(provided that confirmation of receipt is made by the recipient).
If to the MP Shareholders:
General Peron 38
28020 Madrid, Spain
Telefax: 91.555.91.23
To the attention of Mr. Fernando Rodes Vila
14
<PAGE>
All notifications shall necessarily be made to or by Mr. Fernando Rodes (at the
address or fax number provided above) or any person appointed by the MP
Shareholders and such notifications shall bind all the MP shareholders.
With a copy to:
Cuatrecasas
Velazquez 63,
28001 Madrid, Spain
Attn. : Antonio Sanchez Pedreno
Telefax: 34 91 524 7164
If to HA:
84 Rue de Villiers
92663 Levallois Perret, France
Telefax: 33.1.41.34.30.06
To the attention of
Mr. Alain de Pouzilhac and
Mr. Jacques Herail
With a copy to:
Bredin, Prat & Associes
130, rue du Faubourg Saint-Honore
75008 Paris, France
Attn.: Dominique Bompoint and Jean Reynaud
Telefax: 33 1 45 63 1407
If to New MP:
General Peron 38
28020 Madrid, Spain
Telefax: 91.555.91.23
To the attention of Mr. Fernando Rodes Vila
With a copy to:
Cuatrecasas
Velazquez 63,
28001 Madrid, Spain
Attn. : Antonio Sanchez Pedreno
Telefax: 34 91 524 7164
15
<PAGE>
Any Party hereto may from time to time by notice in writing served as set forth
above designate a different address or a different or additional person to whom
such notices, communications or payments are hereafter to be sent.
Receipt of any notice shall be understood to occur in the case of delivery by
hand on the same date, in the case of delivery by notarial letter seven (7) days
from the day the letter is presented to the post office for registered delivery,
and if by fax, on the date confirmation of receipt is made by the recipient.
9.- GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the
substantive laws of Spain.
10.- ASSIGNABILITY
This Agreement will bind any successors of the Parties, but no rights or
obligations may be assigned to any third party, except in the event of a
transfer of the shares of New MP in accordance with the terms and conditions of
the Shareholders Agreement.
11.- JURISDICTION
Any controversy or claim arising out of or relating to this Agreement (including
without limitation a breach hereof or the rights or liabilities of the Parties
hereunder as well as all matter related to the signature, interpretation,
validity and termination of this Agreement) shall be exclusively referred to and
finally settled by binding arbitration under the then Arbitration Rules of the
Chamber of Commerce and Industry of Geneva (the "Court"). The arbitration
tribunal shall be composed of three members.
The Parties to any controversy or claim will jointly appoint three arbitrators
and, if within 30 days from the request of one Party (whether as plaintiff or
defendant), the Parties fail to do so, then the Court will appoint such three
arbitrators, one of whom shall be neither a Spanish nor a French national or
resident.
The arbitration shall be held in Geneva, Switzerland. The written submissions
and the proceedings shall be made and conducted in the English language.
The arbitration award shall be based on law and not on equity ("equidad" or
"amiable composition") and shall not be subject to appeal.
16
<PAGE>
Judgement upon the award rendered may be entered in any court having
jurisdiction or application may be made to such court for judicial acceptance of
the award and an order of enforcement, as the case may be.
12.- ANNEXES
The annexes to this Agreement contain contractual arrangements between the
Parties and, as such, are completely and integral part hereof, and should be
read and construed with the same effects and consequences as if they had been
fully inserted in the main text of the Agreement.
13.- INTEGRATION WITH MERGER AGREEMENT AND IMPLEMENTATION AGREEMENTS.
This Contribution Agreement shall form an integral part of the Merger Agreement,
and should be understood and construed as such. In the event of any
contradiction between this Contribution Agreement and the Merger Agreement, this
Contribution Agreement shall prevail.
14.- NEW MP AS A PARTY
New MP executes this Contribution Agreement exclusively for the purpose of
acknowledging and accepting the contents of clause 3.5.- and the rights and
obligations derived for New MP pursuant to said clause 3.5.-
IN WITNESS WHEREOF, this Agreement is executed at the place and on the date
first mentioned above.
This Agreement shall be executed in seven copies, one for each of the Parties,
except Invermaro and Calle Arcos, and one copy for Martinez-Rovira.
For the purposes of identifying the executed copies of this Agreement, the
Parties have requested Mr. Jean Reynaud or Mr. Richard Pace for HA and Mr.
Sanchez-Pedreno or Mrs. Jacqueline Bulder for the MP Shareholders and New MP to
initial the final versions of this Agreement as a consequence whereof the
Parties have only executed the execution page of this Agreement.
ADVERTISING ANTWERPEN B.V.
/s/ Leopoldo Rodes Castane
--------------------------
by authorised signatory
17
<PAGE>
CALLE ARCOS, S.L.
/s/ Fernando Rodes Vila
-----------------------
by authorised signatory
CANTABRO CATALANA DE INVERSIONES, S.A.
/s/ Francisco Gonzalez-Robatto Fernandez
----------------------------------------
by authorised signatory
COMPANIA DE CARTERA E INVERSIONES, S.A.
/s/ Manuel Esteve Claramun
--------------------------
by authorised signatory
DEYA, S.A.
/s/ Enrique Pinel Lopez
-----------------------
by authorised signatory
HAVAS ADVERTISING. S.A.
/s/ Alain de Pouzilhac
----------------------
by authorised signatory
MARTINEZ-ROVIRA
/s/ Jose Martinez-Rovira Vidal
------------------------------
by authorised signatory
INVERMARO, S.L.
/s/ Jose Martinez-Rovira Vidal
------------------------------
by authorised signatory
INVERSIONES Y SERVICIOS PUBLICITARIOS, S.A.
/s/ Alfonso Rodes Vila
----------------------
by authorised signatory
18
<PAGE>
List of Annexes:
----------------
Annex A Definitions.
Annex 3.4 Descriptions of the Media Business Contributions, including
Migration.
Annex 3.5.1 Representations and Warranties
Annex 3.5.2 Proportional liability MP Shareholders.
19
<PAGE>
Annex A
-------
Definitions
-----------
Definition Clause Page
Advertising Antwerpen Identification 1
Calle Arcos Identification 1
Cantabro Catalana Identification 1
Compania de Cartera e Inversiones Identification 1
Court 11 16
Deya Identification 2
Event Subject to Indemnification 3.5.4 9
HA Identification 3
Invermaro Identification 2
Martinez-Rovira Identification 2
Media Business Whereas 3
Media Business Contributions Whereas 3
Merger Agreement Whereas 3
MP Shareholders Identification 2
New MP Identification 3
New MP Subsidiaries 5 12
Notification 3.5.4 9
Parties Identification 3
Party in Question 3.5.4 9
Supplemental Agreement Whereas 3
20
<PAGE>
Annex 3.4
---------
Description of the Media Business Contributions
-----------------------------------------------
Full name of the company: Mediapolis Worlwide S.A.
------------------------
Governing law: France.
-------------
Type: Societe anonyme ("limited liability company").
----
Office address: 11 Square Leon Blum, 92800 Puteaux, France.
--------------
Registration: The Nanterre Trade Register under the number
------------
403.201.767.
Shares: 8,000 shares with a nominal value of 100FF each.
------
Fiscal number: None.
-------------
21
<PAGE>
Full name of the company: Affi Conseil S.A.
------------------------
Governing law: France.
-------------
Type: Societe anonyme ("limited liability company").
----
Office address: 11 Square Leon Blum, 92800 Puteaux, France.
--------------
Registration: The Nanterre Trade register under the number
------------
380.188.953.
Shares: 2,510 shares with a nominal value of 100FF each.
------
Fiscal number: None
-------------
22
<PAGE>
Full name of the company: Concerto Media S.A.
------------------------
Governing law: France.
-------------
Type: Societe anonyme ("limited liability company").
----
Office address: 40 Quai de Dion Bouton, 92800 Puteaux, France.
--------------
Registration: The Nanterre Trade Register under the number
------------
326.557.857.
Shares: 5,000 shares with a nominal value of 100FF each.
------
Fiscal number: None.
-------------
23
<PAGE>
Full name of the company: HCA S.N.C.
------------------------
Governing law: France.
-------------
Type: Societe en nom collectif ("general partnership").
----
Office address: 40 Quai de Dion Bouton, 92800 Puteaux, France.
--------------
Shares: 1,230 shares with a nominal value of 100FF each.
------
Fiscal number: None.
-------------
24
<PAGE>
Full name of the company: MCBB S.A.
------------------------
Governing law: France.
-------------
Office address: 40 Quai de Dion Bouton, 92800 Puteaux, France.
--------------
Type: Societe anonyme ("limited liability company").
----
Registration: The Nanterre Trade Register under the number
------------
351.917.174.
Shares: 5,000 shares with a nominal value of 100FF each.
------
Fiscal number: None.
-------------
25
<PAGE>
Full name of the company: Mediapolis S.A.
------------------------
Governing law: France.
-------------
Type: Societe anonyme ("limited liability company").
----
Office address: 11 Square Leon Blum, 92800 Puteaux, France.
--------------
Registration: The Nanterre Trade Register under the number
------------
353.912.124.
Shares: 2,500 shares with a nominal value of 100FF each.
------
Fiscal number: None.
-------------
26
<PAGE>
Full name of the company: Societe d'Expertise Media S.N.C.
------------------------
Governing law: France.
-------------
Type: Societe en nom collectif ("general partnership").
----
Office address: 40 Quai de Dion Bouton, 92800 Puteaux, France.
--------------
Registration: The Nanterre Trade Register under the number
------------
351.887.245.
Shares: 19,500 shares with a nominal value of 100FF each.
------
Fiscal number: None.
-------------
27
<PAGE>
Full name of the company: Mediapolis UK Limited.
------------------------
Governing law: United Kingdom
-------------
Type: Private company limited by shares.
----
Office address: 4th Floor, Commonwealth House, 1-19
-----------------
New Oxford Street, London, WC1A
1NQ, United Kingdom.
Registration: The company is incorporated in England with registed
------------
number 2.103.123.
Shares: 10 million ordinary shares of 10p each.
------
Fiscal number: 150/36420/04012
-------------
28
<PAGE>
Full name of the company: Mediamaatwerk B.V.
------------------------
Governing law: The Netherlands.
-------------
Type: Besloten vennootschap met beperkte aansprakelijkheid
----
("private company with limited liability").
Office address: Maassluisstraat 2, Amsterdam, The Netherlands.
--------------
Registation: The Amsterdam Trade Register under the number
-----------
33257203.
Shares: 50,000 shares, numbers 1 through 50,000 including,
------
with a nominal value of NTIG 1.
Fiscal number: Mediamaatwerk has not been issued with a fiscal
-------------
number as it is consolidated with Lernmer Holding
B.V. The fiscal number of Lemmer Holding B.V. is
8020.50.724.
29
<PAGE>
Full name of the company: Mediapolis Mediapressing S.r.l.
------------------------
Governing law: Italy.
-------------
Type: Societa a responsabilita limitata ("limited
----
liability company").
Office address: Via del `Orso, 20, Milan, Italy.
--------------
Registration: The Register of Entreprises of Milan under the
------------
number 229580.
Shares: A "quota" with a nominal value of Lit.
------
20,000,000 (equal to the entire amount of the
capital).
Fiscal number: 10496500157.
-------------
30
<PAGE>
Full name of the company: SFM Media, LLC.
------------------------
Governing law: The United States of America.
-------------
Type: Corporation.
----
Office address: 1180 Avenue of the Americas, New York, N.Y. 10036,
--------------
USA.
Registration: 13-3977-932 (U.S. Employee Identification Number).
------------
Shares: One membership interest.
------
Fiscal number: 13-3977-932.
-------------
If the Interim Committee should approve the contribution of Havas North America
Inc., similar information will be provided for such company on the Merger Date.
31
<PAGE>
Full name of the company: Mediapolis-Prestacao de Servicos
------------------------
Publicitarios, Lda.
Governing law: Portugal.
-------------
Type: Limitada ("limited liability company").
----
Office address: Rua Castilho, n degrees20, 2 degrees, parish of
--------------
Corracao de Jesus, Lisbon, Portugal.
Registration: Lisbon Commercial Registration
------------
Department under number
04487 / 950626.
Shares: Two "quotas" with a nominal value of (PTE)
------
1,000,000.00 each.
Company's Fiscal number: 503451096.
-----------------------
32
<PAGE>
Full name of the company: Mediapolis Espana, S.A.
------------------------
Governing law: Spain.
-------------
Type: Sociedad anonima ("limited liability company").
----
Office address: Plaza de Manuel Gomez Moreno,
--------------
s/n Edificio Bronce, 3rd Floor
Madrid, Spain.
Registration: The Madrid Trade Register in Volume
------------
5861, Section 8, Page M-95912.
Shares: 10,000 shares numbered 1 to 10,000
------
including, with a nominal value of
10,000 pesetas each.
Fiscal number: A-80537327.
-------------
33
<PAGE>
Full name of the company: Media Planning, S.A.
------------------------
Governing Law: Spain.
-------------
Type: Sociedad anonima ("limited liability company").
----
Office address: General Peron 38, 36th floor
--------------
28020 Madrid, Spain.
Registration: The Madrid Trade Register in Volume
------------
4027, Folio 102, Section 8, Page M-67106.
Shares: 100,000 shares, numbers 1 to 100,000 inclusive,
------
with a nominal value of 1,000 pesetas each.
Fiscal number: A-28-537637
-------------
34
<PAGE>
1998 Financial Accounts contributed companies
35
<PAGE>
MEDIA PLANNING
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 98
(Pesetas)
<TABLE>
<CAPTION>
------------------------------------------------------------------------
M. P. MEDIA M. P. M. P. M. P. M. P. CONSOLIDATED
SPAIN CONTACTS PORTUGAL MEXICO COLUMBIA ARGENTINA ASSETS
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED ASSETS:
------------------------------------------------------------------------
Establishment Costs: [*] [*] 759.697
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Intangible Assets:
Rights in leased assets [*] [*] 1.577.005.115
Computer applications [*]
Potential for intangible assets [*] [*] [*] 539.952.348
Amortization [*] [*]
[*] [*] [*] [*] -413.662.016
------------------------------------------------------------------------
[*] [*] [*] [*] [*] 1.703.295.447
------------------------------------------------------------------------
Tangible Assets:
Land and construction [*] 388.693.601
Installations [*] [*] [*] [*] [*] [*] 800.223.555
Furniture [*] [*] [*] [*] [*] [*] 305.287.348
Data processing equipment [*] [*] [*] [*] [*] [*] 1.109.222.989
Tangible assets in progress [*] 7.425.111
Transport equipment [*] [*] [*] [*] [*] 158.404.728
Amortization [*] [*] [*] [*] [*] [*] -1.281.244.021
------------------------------------------------------------------------
[*] [*] [*] [*] [*] 1.497.013.309
------------------------------------------------------------------------
------------------------------------------------------------------------
Financial Investments:
Stakes consolidated by the equity method
Stakes in associated companies [*] 150.936.000
Long-term credits to group companies [*] 5.000.000
Other credits [*] [*] 8.556.420
Long-term guarantees and deposits [*] [*] [*] [*] 30.616.752
Reserves [*]
------------------------------------------------------------------------
Total Fixed Assets [*] [*] [*] [*] [*] [*] 3.396.176.625
------------------------------------------------------------------------
CONSOLIDATED GOODWILL
------------------------------------------------------------------------
Of Companies Consolidated by Global Integration
------------------------------------------------------------------------
------------------------------------------------------------------------
EXPENSES DISTRIBUTED OVER SEVERAL PERIODS [*] 184.757.800
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
CURRENT ASSETS:
------------------------------------------------------------------------
Debtors:
------------------------------------------------------------------------
Clients [*] [*] [*] [*] [*] 35.737.931.101
------------------------------------------------------------------------
Advances to suppliers [*] [*] [*] [*] [*] 358.452.191
------------------------------------------------------------------------
Debtors for back payments [*] [*] [*] [*] 6.651.201.258
------------------------------------------------------------------------
Public administrations [*] [*] [*] [*] [*] [*] 837.758.062
------------------------------------------------------------------------
Short-term credits group companies [*] [*] [*] 2.000.000
------------------------------------------------------------------------
Other debtors [*] [*] [*] [*] [*] 118.055.722
------------------------------------------------------------------------
Estimated billing [*] [*] [*] [*] 111.813.344
------------------------------------------------------------------------
Reserves [*] [*] 83.804.470
------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] 43.755.405.208
------------------------------------------------------------------------
Short-term consolidated deposits and guarantees
------------------------------------------------------------------------
Cash [*] [*] [*] [*] [*] [*] 498.124.140
------------------------------------------------------------------------
Period Adjustment
------------------------------------------------------------------------
Total Current Assets [*] [*] [*] [*] [*] [*] 44.253.529.348
------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS [*] [*] [*] [*] [*] [*] 47.834.465.773
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
MEDIA PLANNING
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 98
(Pesetas)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
M. P. MEDIA M. P. M. P. MEXICO M. P. M. P. CONSOLIDATED
SPAIN CONTACTS PORTUGAL COLOMBIA ARGENTINA LIABILITIES
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
STOCKHOLDERS' EQUITY:
Subscribed capital [*] [*] [*] [*] [*] [*] 100.000.000
Revaluation reserve [*] [*] 90.331.913
Legal reserve [*] [*] 20.000.000
Voluntary reserve [*] [*] 3.180.784.689
Reserves of companies consolidated
by Global Integration [*] 398.874.028
Reserves of companies consolidated
by the equity method
Conversion difference [*] [*] [*] [*] -153.979.908
Profit from prior periods [*] [*] [*]
Dividend on account of distributed
during the period
Profit of the parent company [*] [*] [*] [*] [*] [*] 2.226.084.815
"B" of the period/Consolidated 2.378.572.014
"B" of outside partners -152.487.199
------------------------------------------------------------------------------------------------
Total Stockholders' Equity [*] [*] [*] [*] [*] [*] 5.862.095.539
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
OUTSIDE PARTNERS 455.464.061
------------------------------------------------------------------------------------------------
NEGATIVE CONSOLIDATION DIFFERENCE
------------------------------------------------------------------------------------------------
INCOME DISTRIBUTABLE OVER
SEVERAL PERIODS
------------------------------------------------------------------------------------------------
Deferred income
------------------------------------------------------------------------------------------------
RESERVE FOR RISKS AND EXPENSES
------------------------------------------------------------------------------------------------
Reserve for deferred tax [*] 139.442.508
------------------------------------------------------------------------------------------------
LONG-TERM CREDITORS:
Long-term debts, group companies
Creditors [*] [*] 1.220.964.163
Deposits and guarantees
------------------------------------------------------------------------------------------------
Total Long-Term Creditors [*] [*] 1.220.964.163
------------------------------------------------------------------------------------------------
CURRENT LIABILITIES:
Debts to credit institutions [*] [*] 5.640.969.509
Commercial creditors [*] [*] [*] [*] [*] [*] 21.125.090.377
Client down payments [*] 192.258.495
Discounted commercial papers [*] 374.454.325
Creditors for back payments [*] [*] [*] 1.281.104.866
Dividends paid
Public administrations [*] [*] [*] [*] [*] [*] 2.255.583.100
Outstanding salaries [*] [*] [*] [*] [*] [*] 546.155.042
Other debts [*] [*] [*] [*] 665.881.139
Estimated costs [*] [*] [*] [*] 8.066.002.649
Short-term debts, group companies [*] [*] [*] [*]
------------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] 40.156.499.502
------------------------------------------------------------------------------------------------
Period adjustments
------------------------------------------------------------------------------------------------
Total Current Liabilities [*] [*] [*] [*] [*] [*] 40.156.499.502
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES [*] [*] [*] [*] [*] [*] 47.834.465.773
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
MEDIA PLANNING
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 98
(Pesetas)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
M. P. MEDIA M. P. M. P. M. P. M. P. CONSOLIDATED
SPAIN CONTACTS PORTUGAL MEXICO COLOMBIA ARGENTINA DEBT
-----------------------------------------------------------------------------------------------------------------------------------
DEBIT
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
EXPENSES:
Billing costs [*] [*] [*] [*] 107.361.744.178
Back payment on purchases [*] [*] [*] [*] -8.362.891.774
Personal expenses [*] [*] [*] [*] [*] [*] 3.793.435.237
Allocation to amortization [*] [*] [*] [*] [*] [*] 401.999.501
Variation in estimated traffic
Other operating expenses
- Outside services [*] [*] [*] [*] [*] [*] 2.130.851.863
- Taxes [*] [*] [*] [*] [*] 67.339.424
- Other operating expenses
-----------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] 105.302.478.428
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Operating Profit [*] [*] [*] [*] [*] [*] 2.767.166.605
Financial expenses and equivalent [*] [*] [*] [*] [*] [*] 337.682.452
Variation in reserves for financial
investments
-----------------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] 337.682.452
-----------------------------------------------------------------------------------------------
Positive financial results [*] [*] [*] [*] [*] [*] 333.885.219
-----------------------------------------------------------------------------------------------
Allocation to consolidated
goodwill amortization
Consolidation result
-----------------------------------------------------------------------------------------------------------------------------------
Profit from Regular Activities [*] [*] [*] [*] [*] [*] 3.101.051.824
Capital loss from sales of
intangible assets, equipment [*] 398.042
and control portfolio [*] [*] 33.182.782
-----------------------------------------------------------------------------------------------
Extraordinary loss [*] [*] 33.580.824
-----------------------------------------------------------------------------------------------
Windfall results [*] [*] [*] [*] 401.881.991
------------------------------------- -----------------------------------------------------------------------------
Profit Before Tax [*] [*] [*] [*] [*] [*] 3.502.933.815
Corporate tax [*] [*] [*] [*] [*] 1.124.361.801
------------------------------------- -----------------------------------------------------------------------------
Profit of the Period [*] [*] [*] [*] [*] [*] 2.378.572.014
- Distribution result,
parent company 2.226.084.815
- Distribution result,
outside partners 152.487.199
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
MEDIA PLANNING
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 98
(Pesetas)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
M. P. MEDIA M. P. M. P. M. P. M. P. CONSOLIDATED
SPAIN CONTACTS PORTUGAL MEXICO COLOMBIA ARGENTINA CREDIT
---------------------------------------------------------------------------------------------------------------------------------
CREDIT
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Sales [*] [*] [*] [*] [*] 111.953.660.247
(Back Payments on Sales) [*] [*] [*] [*] 3.035.427.200
Other operating income [*] 141.412.567
Work done by the group its fixed assets [*] [*]
-------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] 108.159.845.033
-------------------------------------------------------------------------------------
Income from services to affiliates
Capital stake income [*] 74.959.209
Other interest and equivalent income [*] [*] [*] [*] [*] [*] 580.590.392
Positive exchange difference [*] [*] [*] 16.018.069
-------------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] 671.567.671
-------------------------------------------------------------------------------------
Profit sharing in companies consolidated by
equity method
Reversed negative consolidation difference
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Capital gain from sales of tangible
assets and financial investments [*]
Windfall income [*] [*] [*] 435.462.815
-------------------------------------------------------------------------------------
[*] [*] [*] 435.462.815
-------------------------------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
Gross margin, consolidated turnover presented to HA (QP Media Gross Margin, consolidated turnover with QP Media taken at 100%
taken at 10 or 15%)
------------------------------------------------------------------ --------------------------------------------------------------
Turnover Gross Margin Turnover Gross Margin
------------------------------------------------------------------ --------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*]
--------------------------- -----------------------------
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
-------------------------- -----------------------------
[*] [*] [*] [*] [*] [*]
-------------------------------------------------- ------------------------------------------------
[*] [*] [*] [*] [*] [*]
-------------------------------------------------- ------------------------------------------------
------------------------------------------------------------------ --------------------------------------------------------------
[*] [*] [*] [*]
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
Pool
<TABLE>
<CAPTION>
1998 1999
<S> <C> <C> <C>
[*] Annual monthly [*] [*] Initial
Premium [*] [*]
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
[*] Annual monthly [*] [*]
Premium [*] [*] Estimated
[*] [*]
Total Salaries [*] [*]
[*] [*] Estimated
[*] [*]
[*]
[*] fixed [*] [*]
Profit Sharing [*] [*] Estimated
[*] [*]
[*] [*] [*] Estimated
[*] [*] [*] Estimated
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
Page 1
<PAGE>
ARGENTINA
---------
(EURO RSCG SA + ICONOS COMUNICACIONES SA)
(IN THOUSAND ARS)
<TABLE>
<CAPTION>
BILLINGS CLIENT MEDIA TOTAL EBITDA EBITDA
-------- ------ ----- ----- ------
FEES INCOME % Adjusted
---- ------
<S> <C> <C> <C> <C> <C> <C>
GROUP 1
-------
[*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*] [*] [*]
---------------------------------------------------------- -----------
[*] [*] [*] [*] [*] [*]
GROUP 2
-------
[*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*]
---------------------------------------------------------- -----------
[*] [*] [*] [*] [*] [*]
GROUP 3
-------
[*] [*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*] [*]
---------------------------------------------------------- -----------
[*] [*] [*] [*] [*] [*]
----------------------------------------------------------------------------------------------- -----------
GRAND-TOTAL (1+2+3) [*] [*] [*] [*] [*]
----------------------------------------------------------------------------------------------- -----------
Exchange Rate: 5.62
------------- -----------
In 000. FF [*]
------------- -----------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
ARGENTINA
in thousand ARS Billings Client fee Media income
EURORSCG
[*] [*] [*]
[*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*]
[*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*]
[*] [*] [*]
[*] [*] [*]
[*]
[*] [*] [*] [*]
[*] [*] [*]
[*] [*] [*] [*]
[*]
[*]
[*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*]
Total [*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
Migration
- list of all personnel, including their remuneration and any special conditions
that do not conform to market practice.
- list of all clients to be migrated
- EBIDTA, billing, gross income and expenses (compensations and other expenses).
All per country
<PAGE>
FRANCE MIGRATION LIST
(in Million French francs)
-----------------------------------------------
BETC GBHR TOTAL
-----------------------------------------------
CLIENT FEES [*] [*] [*]
MEDIA INCOME [*]
OTHER INCOME [*]
-----------------------------------------------
TOTAL GROSS INCOME [*] [*] [*]
-----------------------------------------------
COMPENSATION [*] [*] [*]
OTHER EXPENSES [*] [*] [*]
-----------------------------------------------
TOTAL OPERATING EXPENSES [*] [*] [*]
-----------------------------------------------
-----------------------------------------------
EBIT [*] [*] [*]
-----------------------------------------------
EBITDA HA France % [*]
ADJUSTED VALUE [*]
Note: lost clients in 1998 has not been taken into account in the Gross
Income
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
<TABLE>
<CAPTION>
France
----------------------------------------------------------------- -------------------------------------------------------
BETC BILLINGS STRATEGY PLANNING OTHERS FEES GBHR BILLINGS STRATEGY PLANNING FEES
0.75% 1% 0.75% 1%
----------------------------------------------------------------- -------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*]
[*] [*] [*] [*]
[*] [*]
[*] [*] [*] [*] [*]
[*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*]
----------------------------------------------------------------- -------------------------------------------------------
TOTAL BETC [*] [*] [*] [*] TOTAL GBHR [*] [*] [*] [*]
----------------------------------------------------------------- -------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
France
<TABLE>
<CAPTION>
--------------- -------------
BETC GBHR
--------------- -------------
----------------------------------------------------------------- ------------------------------------------------------
NAME POSITION ANNUAL SALARY CAR NAME POSITION ANNUAL SALARY CAR
(company cost) (company cost)
----------------------------------------------------------------- ------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*]
[*]
[*]
[*] [*] [*] [*]
[*] [*] [*]
[*] [*]
-------------------------------------------------- --------------------------------------------
TOTAL [*] TOTAL [*]
-------------------------------------------------- --------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
ITALY MIGRATION LIST
(in Million French Francs)
Exhange rate used : 1.000.Liras = 3,4 FF
----------------------------------------
TOTAL
-----
CLIENT FEES [*]
MEDIA INCOME [*]
OTHER INCOME [*]
---------------------------------------------- ---------
TOTAL GROSS INCOME [*]
---------------------------------------------- ---------
COMPENSATION [*]
OTHER EXPENSES [*]
---------------------------------------------- ---------
TOTAL OPERATING EXPENSES [*]
---------------------------------------------- ---------
---------------------------------------------- ---------
EBIT [*]
---------------------------------------------- ---------
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
ITALY
-----
3,4
<TABLE>
<CAPTION>
------------------------------------------------------------------- ------------------------------------------------------------
ATA TONIC BILLINGS GI EURO RSCG BILLINGS GI
------------------------------------------------------------------- ------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*] [*] [*]
[*] [*] [*] [*]
FEES MEDIA [*] [*] FEES MEDIA [*] [*]
MEDIA INCOME [*] MEDIA INCOME [*]
------------------------------------------------------------------- ------------------------------------------------------------
TOTAL GI [*] TOTAL GI [*]
------------------------------------------------------------------- ------------------------------------------------------------
-----------------------------------------------------------------
Strategy Strategy Strategy
& tactical planning & Implementation Planning Planning Buying
[*] [*] [*]
-----------------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
ITALY
3,4
<TABLE>
<CAPTION>
------------------ -------------------
ATA TONIC EURO RSCG
------------------ -------------------
----------------------------------------------------------------- -----------------------------------------------------------
NAME POSITION ANNUAL SALARY NAME POSITION ANNUAL SALARY
(company cost) (company cost)
----------------------------------------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*] [*]
[*] [*] [*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
----------------------------------------------------------------- -----------------------------------------------------------
TOTAL [*] TOTAL [*]
----------------------------------------------------------------- -----------------------------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
HAVAS ADVERTISING MEDIA
-----------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
1998
----------------------------------------------------------------------------
Breakdown:
Financial Proforma EBITDA Billings
Statements P/L Calculation Gross Income
(P&L and B/S) Statement Compensation
------------------------------------------ ------------------ ---------------- ---------------------
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. COMPANIES
SEM x
HCA (Snc) x
MEDIAPRESSING x
AFFI-CONSEIL x
CONCERTO MEDIA x
MEDIAPOLIS WW x
MEDIAPOLIS France x
MCBB x
MEDIAPOLIS Spain x
MEDIAMAATWERK x
HAVAS NORTH AMERICA Inc x
SFM llc x
MEDIAPOLIS Portugal x x
MEDIAPOLIS UK (1) x
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
2. MIGRATION
CCA x x x
ARGENTINA x x
FRANCE x x
ITALY x x
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) only B/S as of January 1/st/, 1999
<PAGE>
<TABLE>
<CAPTION>
P 1
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
F287 - STE D'EXPERTISE MEDIA SOCIAL
BALANCE SHEET - ASSETS KFF
----------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses 422 287 135 111
. Goodwill (statutory accounts)
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment
. Other tangible assets 433 132 301 25
. Intangible assets in progress 102 102
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares) 1 700 1 700 1 700
. Loans to subsidiaries 2 112 2 112 1 659
. Other long term investments
. Other loans 7 7
. Other financial assets 1 1 1
Shares consolidated under equity method
----------------------------------------------------------------------------------------------------------------------
. TOTAL I.............. 4 777 419 4 358 3 496
----------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 13 722 13 722 19 767
. Other external trade debtors 852 852 2 353
External sundry debtors non-operating
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 845 845 168
Prepaid expenses 124 124 259
----------------------------------------------------------------------------------------------------------------------
. TOTAL II............. 15 593 15 593 22 288
----------------------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
----------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 20 370 419 19 951 26 043
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98
F287 - STE D'EXPERTISE MEDIA SOCIAL
BALANCE SHEET - LIABILITIES KFF
---------------------------------------------------------------------------------------------------------------------
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 1 950 1 950
Premiums
Reevaluation reserve
Legal reserve
Other reserves
Retained earnings 245 245
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 8 287 9 035
---------------------------------------------------------------------------------------------------------------------
. TOTAL I................................... 10 482 11 230
---------------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
. TOTAL II.....................................
Other stockholders' equity III
Provisions for risks
Provisions for charges 80 33
Deferred tax allowance
Provisions due to goodwills
---------------------------------------------------------------------------------------------------------------------
. TOTAL IV..................................... 80 33
---------------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions 7
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 4 633 9 990
. Fiscal & social liabilities 4 601 4 775
. Other liabilities & accruals 26 15
Other debts Non Group
. Assets suppliers 117
. Income tax - corporation tax
. Other non-operating debts
Payables & Others debts Group
Deferred income 5
---------------------------------------------------------------------------------------------------------------------
. TOTAL V...................................... 9 389 14 780
---------------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
---------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 19 951 26 043
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
F287 - STE D'EXPERTISE MEDIA SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) KFF
---------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Turnover per book 7070 14 656 21 168
---------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070
---------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
---------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040 691 474
---------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
---------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ////////////////////// /////////////////////
---------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 13 965 20 694
---------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ////////////////////// /////////////////////
---------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810
---------------------------------------------------------------------------------------------------------------------
Other operating Income 7500 17 797
---------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 18 062 274
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 5 471 2 758
Social charges 6450 2 777 1 351
LTIP 6819
---------------------------------------------------------------------------------------------------------------------
External Staff 6210 2 1
---------------------------------------------------------------------------------------------------------------------
Supplies 6060 98 36
---------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
---------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
---------------------------------------------------------------------------------------------------------------------
Other External Services 6100 16 525 9 232
(including management fees expenses)
---------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 366 122
---------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 311 108
---------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
---------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
---------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 47
---------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 1
---------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 25 597 13 609
---------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 6 430 7 359
---------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
F287 - STE D'EXPERTISE MEDIA SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
----------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
---------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
---------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620 3 1
---------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 56 21
---------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
---------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
---------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
---------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
---------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 59 22
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
---------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
---------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 2 5
---------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
---------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
---------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).........................VIII 2 5
---------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 57 17
(PER BOOK)
---------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710
---------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
---------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
---------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
---------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
---------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
---------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the current 7770 ////////////////////// /////////////////////
year's profit
---------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
---------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
F287 - STE D'EXPERTISE MEDIA SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
---------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710
---------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib. Assets sold 6751
---------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
---------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
---------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780 312
---------------------------------------------------------------------------------------------------------------------
Provisions provid. by fiscal regulations 6870
---------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
---------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 312
---------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -312
---------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED 6 175 7 376
OPERATIONS VI+IX+XII= XIII
---------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550 2 112 1 659
---------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
---------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950
---------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
---------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 8 287 9 035
(XIII+XV-XVI-XVII-XVIII)
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F280 - HCA SNC (Ex EEM) SOCIAL
BALANCE SHEET - ASSETS KFF
---------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses 2 038 2 004 34 39
. Goodwill (statutory accounts)
. Adv. Payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 301 134 167 68
. Other tangible assets 6 498 4 017 2 481 828
. Intangible assets in progress
. Adv. Payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares) 2 560 2 560 2 560
. Loans to subsidiaries
. Other long term investments
. Other loans 1 470 1 470 1 504
. Other financial assets 3 3 3
Shares consolidated under equity method
---------------------------------------------------------------------------------------------
. TOTAL I.............................. 12 870 6 155 6 715 5 002
---------------------------------------------------------------------------------------------
Inventories & work in progress
. Raw materials
. Work in progress : goods
. Work in progress : services
. Semi-finished & finished goods
. Others
Adv. Payments on orders
Operating receivables non-group
. External trade debtors - clients only 106 053 586 105 467 130 764
. Other external trade debtors 31 267 31 267 27 645
External sundry debtors non-operating 1 025 722 1 025 722 1 011 544
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank & in hand 418 674 418 674 340 749
Prepaid expenses 2 243 2 243 2 471
---------------------------------------------------------------------------------------------
. TOTAL II............................. 1 583 959 586 1 583 373 1 510 702
---------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums\bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
---------------------------------------------------------------------------------------------
. GRAND TOTAL (I TO VII) 1 596 829 6 741 1 590 088 1 518 175
---------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F280 -HCA SNC (Ex EEM) SOCIAL
BALANCE SHEET - LIABILITIES KFF
----------------------------------------------------------------------------------------------
N N - 1
----------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 123 123
Premiums
Reevaluation reserve
Legal reserve
Other reserves
Retained earnings
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 7 642 6 003
----------------------------------------------------------------------------------------------
. TOTAL I.......................................... 7 765 6 126
----------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
----------------------------------------------------------------------------------------------
. TOTAL II..........................................
----------------------------------------------------------------------------------------------
Other stockholders' equity III
----------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges 1 221 1 030
Deferred tax allowance
Provisions due to goodwills
----------------------------------------------------------------------------------------------
. TOTAL IV.......................................... 1 221 1 030
----------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 126 572 101 871
. Fiscal & social liabilities 31 822 26 651
. Other liabilities & accruals 6 203 580
Other debts Non Group
. Assets suppliers 201 112
. Income tax - corporation tax
. Other non-operating debts 1 416 303 1 381 805
Payables & Others debts Group
Deferred income 1
----------------------------------------------------------------------------------------------
. TOTAL V........................................... 1 581 102 1 511 019
----------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
----------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 1 590 088 1 518 175
----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F280 - HCA SNC (Ex EEM) SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) KFF
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 326 007 229 065
-----------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 322 901 189 905
-----------------------------------------------------------------------------------------------------------------------------------
Cost of other supplies (a) 6010
-----------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
-----------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
-----------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ////////////////////// //////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 3 106 39 160
-----------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ////////////////////// //////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810 48
-----------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500 25 826 2 525
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 28 866 4 316
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 8 121 8 932
Social charges 6450 4 032 4 200
LTIP 6819
-----------------------------------------------------------------------------------------------------------------------------------
External Staff 6210 1 193 175
-----------------------------------------------------------------------------------------------------------------------------------
Supplies 6060 646 548
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
-----------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100 15 889 29 193
(including management fees expenses)
-----------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 1 821 1 422
-----------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 788 700
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
-----------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 191 75
-----------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 617 51
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 33 298 45 296
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI -1 326 -1 820
-----------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F280 - HCA SNC (Ex EEM) SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
-----------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
-----------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
-----------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620 3 1
-----------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 8 807 6 792
-----------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
. related to Group Investments 7862
-----------------------------------------------------------------------------------------------------------------------------
. other financial provisions 7863
-----------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660 3158 3867
-----------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
-----------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 11 968 10 660
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
-----------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
-----------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 14 60
-----------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660 2 803 2 011
-----------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
-----------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).................... VIII 2 817 2 071
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 9 151 8 589
(PER BOOK)
-----------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710 32
-----------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
-----------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752 30 42
-----------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
-----------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
-----------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
-----------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the 7770 ////////////////////// //////////////////////
current year's profit
-----------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870 200
-----------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 62 242
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F280 - HCA SNC (Ex EEM) SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 223 939
------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib. Assets sold 6751
------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752 22 69
------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
------------------------------------------------------------------------------------------------------------
Provisions provid. by fiscal regulations 6870
------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 245 1 008
------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -183 -766
------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND 7 642 6 003
COMBINED OPERATIONS VI+IX+XII= XIII
------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950
------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 7 642 6 003
(XIII+XV-XVI-XVII-XVIII)
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ITA08 - MEDIAPRESSING ITALIE SOCIAL
BALANCE SHEET - ASSETS ITL
-------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses
. Goodwill (statutory accounts)
. Adv. payments to int. assets suppliers
. Other intangible assets 13 10 3 6
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 145 -145
. Other tangible assets 151 151 12
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares)
. Loans to subsidiaries
. Other long term investments
. Other loans
. Other financial assets
Shares consolidated under equity method
-------------------------------------------------------------------------------------
. TOTAL I .......................... 164 155 9 18
-------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 29 546 423 29 123 28 159
. Other external trade debtors 1 892 1 892 1 004
External sundry debtors non-operating
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 1 241 1 241 3 085
Prepaid expenses 6 6 2
-------------------------------------------------------------------------------------
. TOTAL II ......................... 32 685 423 32 262 32 248
-------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
-------------------------------------------------------------------------------------
. GRAND TOTAL (I to VIII) 32 849 578 32 271 32 268
-------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ITA08-MEDIAPRESSING ITALIE SOCIAL
BALANCE SHEET - LIABILITIES ITL
----------------------------------------------------------------------------------------
N N - 1
----------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 20 20
Premiums
Reevaluation reserve
Legal reserve 20 20
Other reserves 433 268
Retained earnings
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 605 207
----------------------------------------------------------------------------------------
. TOTAL I............................................ 1 078 515
----------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
----------------------------------------------------------------------------------------
. TOTAL II...........................................
----------------------------------------------------------------------------------------
Other stockholders' equity III
----------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges 96 77
Deferred tax allowance
Provisions due to goodwills
----------------------------------------------------------------------------------------
. TOTAL IV........................................... 96 77
----------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 30 569 31 455
. Fiscal & social liabilities 35 33
. Other liabilities & accruals 38 49
Other debts Non Group
. Assets suppliers
. Income tax - corporation tax 456 139
. Other non-operating debts
Payables & Others debts Group
Deferred income
----------------------------------------------------------------------------------------
. TOTAL V............................................ 31 098 31 676
----------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
----------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 32 272 32 268
----------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ITA08 -MEDIAPRESSING ITALIE SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) ITL
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 118 458 95 571
-----------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 114 538 92 771
-----------------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
-----------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040 557 527
-----------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
-----------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 /////////////////////////////// ///////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 3 363 2 273
-----------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 /////////////////////////////// ///////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810 3 133
-----------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 3 133
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 261 192
Social charges 6450 86 83
LTIP 6819
-----------------------------------------------------------------------------------------------------------------------------------
External Staff 6210
-----------------------------------------------------------------------------------------------------------------------------------
Supplies 6060 19 11
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
-----------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100 1 742 1 361
(including Management fees expenses)
-----------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 64 8
-----------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 3 100
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816 6 17
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817 147 142
-----------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 22 18
-----------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 101 100
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 2 451 2 032
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 915 374
-----------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ITA08 -MEDIAPRESSING ITALIE SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) ITL
-----------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
-----------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
-----------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
-----------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 89 114
-----------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
-----------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
-----------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
-----------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
-----------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 89 114
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
-----------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
-----------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 2
-----------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
-----------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
-----------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE)................. VIII 2
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 87 114
(PER BOOK)
-----------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710 5
-----------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
-----------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
-----------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
-----------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
-----------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
-----------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the 7770 //////////////////////////// ////////////////////////////
current year's profit
-----------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
-----------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 5
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ITA08 -MEDIAPRESSING ITALIE SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) ITL
----------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 4 147
----------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
----------------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
----------------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
----------------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
----------------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
----------------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
----------------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 4 147
----------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -4 -142
----------------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERTATIONS 998 346
VI+IX+XII= XIII
----------------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
----------------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
----------------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 393 139
----------------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
----------------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 605 207
(XIII+XV-XVI-XVII-XVIII)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F281 - AFFI CONSEIL SOCIAL
BALANCE SHEET - ASSETS KFF
----------------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses 564 416 148 3
. Goodwill (statutory accounts) 1 1 1
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 3 2 1 2
. Other tangible assets 1 404 1 080 324 328
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares)
. Loans to subsidiaries
. Other long term investments
. Other loans 13 13
. Other financial assets
Shares consolidated under equity method
----------------------------------------------------------------------------------------------------------------------------
. TOTAL I ................ 1 985 1 498 487 334
----------------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 3 253 73 3 180 2 592
. Other external trade debtors 1 055 1 055 1 059
External sundry debtors non-operating 303 303 44
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 185 185 1 556
Prepaid expenses 46 46 34
----------------------------------------------------------------------------------------------------------------------------
. TOTAL II ............... 4 842 73 4 769 5 251
----------------------------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
----------------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 6 827 1 571 5 256 5 619
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F281 - AFFI CONSEIL SOCIAL
BALANCE SHEET - LIABILITIES KFF
----------------------------------------------------------------------------------------------------------------------------
N N - 1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 251 251
Premiums
Reevaluation reserve
Legal reserve 25 25
Other reserves
Retained earnings 28 588
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group -188 243
----------------------------------------------------------------------------------------------------------------------------
. TOTAL I................................................ 116 1 107
----------------------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
----------------------------------------------------------------------------------------------------------------------------
. TOTAL II...............................................
----------------------------------------------------------------------------------------------------------------------------
Other stockholders' equity III
----------------------------------------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges 514 925
Deferred tax allowance
Provisions due to goodwills
----------------------------------------------------------------------------------------------------------------------------
. TOTAL IV................................................ 514 925
----------------------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 2 545 1 442
. Fiscal & social liabilities 2 033 2 018
. Other liabilities & accruals 46 123
Other debts Non Group
. Assets suppliers 4
. Income tax - corporation tax
. Other non-operating debts
Payables & Others debts Group
Deferred income 2
----------------------------------------------------------------------------------------------------------------------------
. TOTAL V................................................. 4 626 3 587
----------------------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
----------------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 5 256 5 619
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F281 - AFFI CONSEIL SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) KFF
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 12 138 10 725
-----------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070
-----------------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
-----------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
-----------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
-----------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 /////////////////////////////// ///////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 12 138 10 725
-----------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 /////////////////////////////// ///////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810 411
-----------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500 1 012 228
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 1 423 228
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 5 683 4 467
Social charges 6450 2 273 1 981
LTIP 6819
-----------------------------------------------------------------------------------------------------------------------------------
External Staff 6210
-----------------------------------------------------------------------------------------------------------------------------------
Supplies 6060 86 102
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
-----------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100 3 544 3 188
(including management fees expenses)
-----------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 567 500
-----------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 468 223
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
-----------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 64
-----------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 6 6
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 12 627 10 531
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 934 422
-----------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F281 - AFFI CONSEIL SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
-----------------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
-----------------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620 3
-----------------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 22 41
-----------------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
-----------------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
-----------------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
-----------------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
-----------------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 25 41
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
-----------------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
-----------------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 4
-----------------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
-----------------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE) VIII 4
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 21 41
(PER BOOK)
-----------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710 19
-----------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
-----------------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752 24
-----------------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
-----------------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
-----------------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
-----------------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the 7770 //////////////////////////// ////////////////////////////
current year's profit
-----------------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 43
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F281 - AFFI CONSEIL SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 1 143
-----------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
-----------------------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
-----------------------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
-----------------------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
-----------------------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
-----------------------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 1 143
-----------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -1 143 43
-----------------------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERATIONS -188 506
VI+IX+XII= XIII
-----------------------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
-----------------------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
-----------------------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 263
-----------------------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
-----------------------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 -188 243
(XIII+XV-XVI-XVII-XVIII)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F282 - CONCERTO MEDIA SOCIAL
BALANCE SHEET - ASSETS KFF
--------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses 219 219 89
. Goodwill (statutory accounts) 200 200 200
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 260 254 6 9
. Other tangible assets 4 095 2 870 1 225 984
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares)
. Loans to subsidiaries
. Other long term investments
. Other loans 72 72 15
. Other financial assets
Shares consolidated under equity method
-------------------------------------------------------------------------------------
. TOTAL I.................... 4 846 3 543 1 303 1 297
-------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 25 714 9 353 16 361 12 959
. Other external trade debtors 5 331 5 331 8 631
External sundry debtors non-operating 20 499 20 499 21 162
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 18 285 18 285 27 403
Prepaid expenses 131 131 91
-------------------------------------------------------------------------------------
. TOTAL II................... 69 960 9 353 60 607 70 155
-------------------------------------------------------------------------------------
Deferred changes III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
-------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 74 806 12 896 61 910 71 543
-------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F282 - CONCERTO MEDIA SOCIAL
BALANCE SHEET - LIABILITIES KFF
--------------------------------------------------------------------------------------
N N - 1
--------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 500 500
Premiums
Reevaluation reserve
Legal reserve 50 50
Other reserves
Retained earnings 8 416 3 365
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 2 794 5 551
-------------------------------------------------------------------------------------
. TOTAL I................................................ 11 760 9 466
-------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
-------------------------------------------------------------------------------------
. TOTAL II...............................................
-------------------------------------------------------------------------------------
Other stockholders' equity III
-------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges 813 832
Deferred tax allowance
Provisions due to goodwills
-------------------------------------------------------------------------------------
. TOTAL IV............................................... 813 832
-------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 3 973 20 158
. Fiscal & social liabilities 9 312 7 250
. Other liabilities & accruals 1 038 1 006
Other debts Non Group
. Assets suppliers 13 22
. Income tax - corporation tax 1 107
. Other non-operating debts 33 890 32 801
Payables & Others debts Group
Deferred income 4 8
-------------------------------------------------------------------------------------
. TOTAL V................................................ 49 337 61 237
-------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
-------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 61 910 71 543
-------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F282 - CONCERTO MEDIA SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) KFF
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 37 213 34 662
-----------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070
-----------------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
-----------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040 451 1 831
-----------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
-----------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 /////////////////////////////// ///////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 36 762 32 831
-----------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 /////////////////////////////// ///////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810 140
-----------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500 6
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 284 138
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 11 675 9 763
Social charges 6450 6 015 5 031
LTIP 6819
-----------------------------------------------------------------------------------------------------------------------------------
External Staff 6210 62 37
-----------------------------------------------------------------------------------------------------------------------------------
Supplies 6060 357 260
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
-----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
-----------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100 13 143 10 676
(including management fees expenses)
-----------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 1 220 1 125
-----------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 416 427
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
-----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817 4 10
-----------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 111 149
-----------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 53 829
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 33 056 28 307
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 3 990 4 662
-----------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F282 - CONCERTO MEDIA SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
--------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
--------------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
--------------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
--------------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 361 437
--------------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
--------------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
--------------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
--------------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
--------------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 361 437
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
--------------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
--------------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610
--------------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
--------------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
--------------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE)....................VIII
--------------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 361 437
(PER BOOK)
--------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710 4 95
--------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
--------------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752 25
--------------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
--------------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
--------------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
--------------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the current 7770 /////////////////////////// ///////////////////////////
year's profit
-------------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870 500 700
-------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 504 820
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F282 - CONCERTO MEDIA SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
----------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 640 338
----------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
----------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752 5
----------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
----------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
----------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
----------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875 289
----------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 929 343
----------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -425 477
----------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERATIONS 3 926 5 576
VI+IX+XII= XIII
----------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
----------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
----------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 1 132 25
----------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
----------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 2 794 5 551
(XIII+XV-XVI-XVII-XVIII)
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F286 - MEDIAPOLIS WORLDWIDE SOCIAL
BALANCE SHEET - ASSETS KFF
----------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses 266 49 217
. Goodwill (statutory accounts)
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment
. Other tangible assets 486 322 164 277
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares) 779 779 779
. Loans to subsidiaries
. Other long term investments
. Other loans
. Other financial assets
Shares consolidated under equity method
----------------------------------------------------------------------------------------------------------------------
. TOTAL I.............. 1 531 371 1 160 1 056
----------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 29 895 29 895 37 704
. Other external trade debtors 13 742 13 742 9 689
External sundry debtors non-operating 6 621 6 621 3 698
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 1 861 1 861 9
Prepaid expenses 3 3
----------------------------------------------------------------------------------------------------------------------
. TOTAL II............ 52 122 52 122 51 100
----------------------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
----------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 53 653 371 53 282 52 156
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F286 - MEDIAPOLIS WORLDWIDE SOCIAL
BALANCE SHEET - LIABILITIES KFF
----------------------------------------------------------------------------------------------------------------------
N N - 1
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 800 800
Premiums
Reevaluation reserve
Legal reserve
Other reserves
Retained earnings - 9031 -5 361
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group -2 897 -3 670
----------------------------------------------------------------------------------------------------------------------
. TOTAL I...................................... -11 128 -8 231
----------------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
----------------------------------------------------------------------------------------------------------------------
. TOTAL II.....................................
----------------------------------------------------------------------------------------------------------------------
Other stockholders' equity III
----------------------------------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges 270
Deferred tax allowance
Provisions due to goodwills
----------------------------------------------------------------------------------------------------------------------
. TOTAL IV..................................... 270
----------------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions 3 719
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 54 397 46 242
. Fiscal & social liabilities 7 167 6 481
. Other liabilities & accruals 585 1 070
Other debts Non Group
. Assets suppliers 314
. Income tax - corporation tax 205
. Other non-operating debts 1 431 2 875
Payables & Others debts Group
Deferred income 41
----------------------------------------------------------------------------------------------------------------------
. TOTAL V...................................... 64 140 60 387
----------------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
----------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 53 282 52 156
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F286 - MEDIAPOLIS WORLDWIDE SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) KFF
----------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Turnover per book 7070 89 595 106 189
----------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 83 559 97 840
----------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
----------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
----------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
----------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ////////////////////////////// ///////////////////////////////
----------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 6 036 8 349
----------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ////////////////////////////// ///////////////////////////////
----------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810
----------------------------------------------------------------------------------------------------------------------
Other operating Income 7500 195
----------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 2955 653
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 5 085 4 452
Social charges 6450 1 639 1 644
LTIP 6819
----------------------------------------------------------------------------------------------------------------------
External Staff 6210 1 970 2 553
----------------------------------------------------------------------------------------------------------------------
Supplies 6060 18 44
----------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
----------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
----------------------------------------------------------------------------------------------------------------------
Other External Services 6100 15 554 10 595
(including management fees expenses)
----------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 147 101
----------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 156 107
----------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
----------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
----------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 270
----------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500
----------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 24 839 19 496
----------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI -15 848 -10 494
----------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F286 - MEDIAPOLIS WORLDWIDE SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
-----------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (fi)
Dividends received (gross) 7610 6 380 3 569
-----------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
----------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
----------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 1 1
----------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
----------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
----------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660 90 126
----------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
----------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 6 471 3 696
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
----------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
----------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 75 78
----------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660 630 546
----------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
----------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).........................VIII 705 624
----------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 5 766 3 072
(PER BOOK)
----------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710
----------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
----------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
----------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
----------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
----------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
----------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the current 7770 //////////////////////////// ////////////////////////
year's profit
----------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
----------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F286 - MEDIAPOLIS WORLDWIDE SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
----------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 590
----------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
----------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
----------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
----------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
----------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
----------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
----------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI
----------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -590
----------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERATIONS -10 672 -7 422
VI+IX+XII= XIII
----------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
----------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
----------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 -7 775 3 752
----------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
----------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 -2 897 -3 670
(XIII+XV-XVI-XVII-XVIII)
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F283 - MEDIAPOLIS SOCIAL
BALANCE SHEET - ASSETS KFF
------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses
. Goodwill (statutory accounts)
. Adv. payments to int. assets
suppliers
. Other intangible assets 291 291 8
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 174 121 53 52
. Other tangible assets 7 661 5 398 2 263 1 764
. Intangible assets in progress
. Adv. payments to tang. assets
suppl.
Financial assets
. Investment in subsidiaries (shares) 396 396
. Loans to subsidiaries 706 706
. Other long term investments
. Other loans 17 17 42
. Other financial assets 10 10 12
Shares consolidated under equity method
------------------------------------------------------------------------------------------------------------------
. TOTAL I................ 9 255 5 810 3 445 1 878
------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients 61 114 61 114 78 843
only
. Other external trade debtors 12 529 12 529 20 925
External sundry debtors non-operating 294 764 294 764 291 993
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 53 786 53 786 30 844
Prepaid expenses 118 118 1 141
------------------------------------------------------------------------------------------------------------------
. TOTAL II............... 422 311 422 311 422 605
------------------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
--------------------------------------------------------------------
. GRAND TOTAL (I to VII) 431 566 5 810 425 756 425 624
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F283 - MEDIAPOLIS SOCIAL
BALANCE SHEET - LIABILITIES KFF
--------------------------------------------------------------------------------------------------------------
N N - 1
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 250 250
Premiums
Reevaluation reserve
Legal reserve 25 25
Other reserves
Retained earnings 21 7
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 10 622 6 414
--------------------------------------------------------------------------------------------------------------
. TOTAL I..................................... 10 918 6 696
--------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
--------------------------------------------------------------------------------------------------------------
. TOTAL II.......................................
--------------------------------------------------------------------------------------------------------------
Other stockholders' equity III
Provisions for risks
Provisions for charges 1 981 1 399
Deferred tax allowance
Provisions due to goodwills
--------------------------------------------------------------------------------------------------------------
. TOTAL IV....................................... 1 981 1 399
--------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 35 636 74 882
. Fiscal & social liabilities 23 444 24 275
. Other liabilities & accruals 22 122 14 815
Other debts Non Group
. Assets suppliers 224 143
. Income tax - corporation tax
. Other non-operating debts 331 214 302 424
Payables & Others debts Group
Deferred income 217 990
--------------------------------------------------------------------------------------------------------------
. TOTAL V........................................ 412 857 416 539
--------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
--------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 425 756 425 624
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F283 - MEDIAPOLIS SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) KFF
---------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 214 138 172 445
---------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 97 250 78 057
---------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
---------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040 1 598 4 280
---------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
---------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ////////////////////// //////////////////////
---------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 115 290 90 108
---------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ////////////////////// //////////////////////
---------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810 724
---------------------------------------------------------------------------------------------------------------------
Other operating Income 7500 680
---------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 2 984 1 899
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 31 152 23 665
Social charges 6450 13 122 10 432
LTIP 6819
---------------------------------------------------------------------------------------------------------------------
External Staff 6210 560 4 796
---------------------------------------------------------------------------------------------------------------------
Supplies 6060 1 226 699
---------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
---------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
---------------------------------------------------------------------------------------------------------------------
Other External Services 6100 50 512 39 944
(including management fees expenses)
---------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 2 355 1 850
---------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 828 683
---------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
---------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
---------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 582 26
---------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 13 1
---------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 100 350 82 096
---------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 17 924 9 911
---------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P 1
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F283 - MEDIAPOLIS SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
---------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
---------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
---------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620 3 4
---------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 539 577
---------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
---------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
---------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660 1 143
---------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
---------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 543 724
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
---------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
---------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 7
---------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660 268 570
---------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
---------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).......................VIII 275 570
---------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 268 154
(PER BOOK)
---------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710 1 512
---------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
---------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752 226
---------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
---------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
---------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
---------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the current 7770 ////////////////////// //////////////////////
year's profit
---------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
---------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 226 1 512
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P 2
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:51
F283 - MEDIAPOLIS SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (22) KFF
---------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 82 733
---------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
---------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752 213
---------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
---------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
---------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
---------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
---------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 295 733
---------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -69 779
---------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERATIONS 18 123 10 844
VI+IX+XII= XIII
---------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550 706
---------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
---------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 8 207 4 430
---------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
---------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 10 622 6 414
(XIII+XV-XVI-XVII-XVIII)
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P 1
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F284 - MCBB
SOCIAL
BALANCE SHEET - ASSETS KFF
---------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses 87 87
. Goodwill (statutory accounts) 150 150 150
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 11 3 8 6
. Other tangible assets 1 605 1 164 441 352
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares)
. Loans to subsidiaries
. Other long term investments
. Other loans 45 45 15
. Other financial assets
Shares consolidated under equity method
---------------------------------------------------------------------------------------------------------------------
. TOTAL I......................... 1 898 1 254 644 523
---------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 18 224 233 17 991 5 794
. Other external trade debtors 4 931 4 931 2 482
External sundry debtors non-operating 119 485 119 485 99 163
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 17 545 17 545 25 779
Prepaid expenses 34 34 4
---------------------------------------------------------------------------------------------------------------------
. TOTAL II........................ 160 219 233 159 986 133 218
---------------------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
---------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 162 117 1 487 160 630 133 745
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
P 1
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F284 - MCBB
SOCIAL
BALANCE SHEET - LIABILITIES KFF
---------------------------------------------------------------------------------------------------------------------
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 500 500
Premiums
Reevaluation reserve
Legal reserve 50 50
Other reserves
Retained earnings 395 1 906
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 1 936 1 489
---------------------------------------------------------------------------------------------------------------------
. TOTAL I........................................ 2 881 3 945
---------------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
---------------------------------------------------------------------------------------------------------------------
. TOTAL II.......................................
---------------------------------------------------------------------------------------------------------------------
Other stockholders' equity III
Provisions for risks
Provisions for charges 106 85
Deferred tax allowance
Provisions due to goodwills
---------------------------------------------------------------------------------------------------------------------
. TOTAL IV....................................... 106 85
---------------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions
. Other financial liabilities
Advance payments from customers 58
Payables from operations Non Group
. Trade suppliers non-group 18 321 2 531
. Fiscal & social liabilities 6 004 3 405
. Other liabilities & accruals 242 191
Other debts Non Group
. Assets suppliers 2
. Income tax - corporation tax 330 1 126
. Other non-operating debts 132 742 122 404
Payables & Others debts Group
Deferred income 2
---------------------------------------------------------------------------------------------------------------------
. TOTAL V........................................ 157 643 129 715
---------------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
---------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 160 630 133 745
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F284 - MCBB SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) KFF
------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 51 880 16 148
------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 32 540 182
------------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 //////////////////////////// ////////////////////////////
------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 19 340 15 966
------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 //////////////////////////// ////////////////////////////
------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810 232
------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500
------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV 875 667
------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 6 040 5 240
Social charges 6450 2 705 2 427
LTIP 6819
------------------------------------------------------------------------------------------------------------------------------
External Staff 6210 477 37
------------------------------------------------------------------------------------------------------------------------------
Supplies 6060 139 117
------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100 6 945 5 409
(including management fees expenses)
------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 438 353
------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 166 152
------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817 2
------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815 21 81
------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 24 154
------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 16 957 13 970
------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 3 258 2 663
------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F284 - MCBB SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (2/2) KFF
------------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
------------------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
------------------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
------------------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 115 95
------------------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
------------------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
------------------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
------------------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
------------------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 115 95
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
------------------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
------------------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 8
------------------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660 1
------------------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
------------------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).......................VII 9
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 106 95
(PER BOOK)
------------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710 2 51
------------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
------------------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
------------------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
------------------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
------------------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
------------------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the
current year's profit 7770 /////////////////////////////// //////////////////////////////
------------------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
------------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 2 51
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:52
F284 - MCBB SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) KFF
------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 194
------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
------------------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
------------------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
------------------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
------------------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
------------------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 194
------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII 2 -143
------------------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERATIONS
VI+IX+XII= XIII 3 366 2 615
------------------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
------------------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
------------------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 1 430 1 126
------------------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
------------------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 1 936 1 489
(XIII+XV-XVI-XVII-XVIII)
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ESP13 - MEDIAPOLIS ESPAGNE SOCIAL
BALANCE SHEET - ASSETS ESB
-----------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses
. Goodwill (statutory accounts)
. Adv. payments to int. assets suppliers
. Other intangible assets 1 761 1 385 376 385
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment
. Other tangible assets 58 521 21 137 37 384 339 671
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares)
. Loans to subsidiaries
. Other long term investments
. Other loans
. Other financial assets 4 308 4 308 4 720
Shares consolidated under equity method
-----------------------------------------------------------------------------------------------------
. TOTAL I ......................... 64 590 22 522 42 068 44 776
-----------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 907 877 907 877 973 044
. Other external trade debtors 43 605 43 605 220 320
External sundry debtors non-operating
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 50 891 50 891 55 986
Prepaid expenses
-----------------------------------------------------------------------------------------------------
. TOTAL II ........................ 1 002 373 1 002 373 1 249 350
-----------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
-----------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 1 066 963 22 522 1 044 441 1 294 126
-----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ESP13 - MEDIAPOLIS ESPAGNE SOCIAL
BALANCE SHEET - ASSETS ESB
-----------------------------------------------------------------------------------------------------
N N - 1
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 100 000 100 000
Premiums
Reevaluation reserve
Legal reserve 2 350 2 350
Other reserves
Retained earnings 16 182 16 180
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group -186 782 2
-----------------------------------------------------------------------------------------------------
. TOTAL I............................................. -68 250 118 532
-----------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
-----------------------------------------------------------------------------------------------------
. TOTAL II...............................................
-----------------------------------------------------------------------------------------------------
Other stockholders' equity III
-----------------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges
Deferred tax allowance
Provisions due to goodwills
-----------------------------------------------------------------------------------------------------
. TOTAL IV...............................................
-----------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions 429 619 562 563
. Other financial liabilities 700 1 200
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 613 200 399 792
. Fiscal & social liabilities 60 455 194 378
. Other liabilities & accruals 6 185 8 579
Other debts Non Group
. Assets suppliers
. Income tax - corporation tax
. Other non-operating debts
Payables & Others debts Group
Deferred income 2 532 9 082
-----------------------------------------------------------------------------------------------------
. TOTAL V................................................ 1 112 691 1 166 512
-----------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
-----------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 1 044 441 1 294 126
-----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ESP13 - MEDIAPOLIS ESPAGNE SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) ESB
----------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Turnover per book 7070 3 354 923 3 653 231
----------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 3 207 692 3 416 547
----------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
----------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
----------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
----------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ////////////////////// /////////////////
----------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 147 231 236 684
----------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ////////////////////// /////////////////
----------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810
----------------------------------------------------------------------------------------------------------------------
Other operating Income 7500
----------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 107 080 131 293
Social charges 6450 20 616 28 162
LTIP 6819
----------------------------------------------------------------------------------------------------------------------
External Staff 6210 41 240 51 564
----------------------------------------------------------------------------------------------------------------------
Supplies 6060
----------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122 291
----------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
----------------------------------------------------------------------------------------------------------------------
Other External Services 6100
(including management fees expenses)
----------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310
----------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 4 718 6 587
----------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
----------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
----------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815
----------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 49 210 62 309
----------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 222 864 280 206
----------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI -75 633 -43 522
----------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ESP13 - MEDIAPOLIS ESPAGNE SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) ESB
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
-----------------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612 13 253 43 855
-----------------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
-----------------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 18 175 23 059
-----------------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
-----------------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
-----------------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
-----------------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
-----------------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 31 428 66 914
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
-----------------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
-----------------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 30 709 46 624
-----------------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
-----------------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE) ................... VIII 30 709 46 624
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 719 20 290
(PER BOOK)
-----------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710
-----------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
-----------------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752 734
-----------------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
-----------------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780 1 175 23 234
-----------------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
-----------------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the
current year's profit 7770 /////////////////////////////// ///////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
-----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 1 909 23 234
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
ESP13 - MEDIAPOLIS ESPAGNE SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) ESB
---------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 112 648
---------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
---------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752 1 129
---------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
---------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
---------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
---------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
---------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 113 777
---------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -111 868 23 234
---------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERATIONS -186 782 2
VI+IX+XII= XIII
---------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
---------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
---------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950
---------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
---------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 -186 782 2
(XIII+XV-XVI-XVII-XVIII)
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
PB07 - MEDIAMATWERK PAYS BAS SOCIAL
BALANCE SHEET - ASSETS NLG
---------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses
. Goodwill (statutory accounts)
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 495 118 377 128
. Other tangible assets
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares) 20 20
. Loans to subsidiaries
. Other long term investments
. Other loans
. Other financial assets
Shares consolidated under equity method
---------------------------------------------------------------------------------------------------------------------
. TOTAL I ......................... 515 118 397 128
---------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 11 714 14 11 700 10 012
. Other external trade debtors 231 231 481
External sundry debtors non-operating 233 233 2 196
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 3 006 3 006
Prepaid expenses 23 23 115
---------------------------------------------------------------------------------------------------------------------
. TOTAL II ........................ 15 207 14 15 193 12 689
---------------------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
---------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 15 722 132 15 590 12 932
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
PB07 - MEDIAMATWERK PAYS BAS SOCIAL
BALANCE SHEET - LIABILITIES NLG
---------------------------------------------------------------------------------------------------------------------
N N - 1
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 40 40
Premiums
Reevaluation reserve
Legal reserve
Other reserves
Retained earnings 1 152 310
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 893 842
---------------------------------------------------------------------------------------------------------------------
. TOTAL I............................................... 2 085 1 192
---------------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
---------------------------------------------------------------------------------------------------------------------
. TOTAL II.................................................
---------------------------------------------------------------------------------------------------------------------
Other stockholders' equity III
---------------------------------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges
Deferred tax allowance
Provisions due to goodwills
---------------------------------------------------------------------------------------------------------------------
. TOTAL IV.................................................
---------------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions 2 502
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 10 413 7 739
. Fiscal & social liabilities -50 -21
. Other liabilities & accruals 2 751 1 486
Other debts Non Group
. Assets suppliers
. Income tax - corporation tax 391 34
. Other non-operating debts
Payables & Others debts Group
Deferred income
---------------------------------------------------------------------------------------------------------------------
. TOTAL V.................................................. 13 505 11 740
---------------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
---------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 15 590 12 932
---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
PB07 - MEDIAMATWERK PAYS BAS SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) NLG
---------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 112 483 91 250
---------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 108 136 87 908
---------------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
---------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
---------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
---------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ////////////////////////////// //////////////////////////////
---------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 4 347 3 342
---------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ////////////////////////////// //////////////////////////////
---------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810
---------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500
---------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 1 540 985
Social charges 6450 135 101
LTIP 6819
---------------------------------------------------------------------------------------------------------------------------------
External Staff 6210 311 341
---------------------------------------------------------------------------------------------------------------------------------
Supplies 6060
---------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122 97
---------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125 125 125
---------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100 833 1 150
(including management fees expenses)
---------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310
---------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 4
---------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816 130 174
---------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
---------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815
---------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500
---------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 3 171 2 880
---------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 1 176 462
---------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
PB07 - MEDIAMATWERK PAYS BAS SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) NLG
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
----------------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612 120
----------------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
----------------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 40 474
----------------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
----------------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
----------------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
----------------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
----------------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 160 474
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
----------------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
----------------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 83 60
----------------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
----------------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).......................VII 83 60
----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 77 414
(PER BOOK)
----------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710
----------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
----------------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
----------------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
----------------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
----------------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
----------------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the
current year's profit 7770 /////////////////////////////// //////////////////////////////
----------------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:53
PB07 - MEDIAMATWERK PAYS BAS SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) NLG
----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710
----------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
----------------------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752 4
----------------------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
----------------------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
----------------------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
----------------------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 4
----------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -4
----------------------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND COMBINED OPERATIONS 1 249 876
VI+IX+XII= XIII
----------------------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
----------------------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
----------------------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 356 34
----------------------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
----------------------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 893 842
(XIII+XV-XVI-XVII-XVIII)
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:55
US19 - HAVAS NOTH AMERICA SOCIAL
BALANCE SHEET - ASSETS USD
----------------------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses
. Goodwill (statutory accounts) 9 865 226 9 639
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment
. Other tangible assets
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares) 860 860
. Loans to subsidiaries
. Other long term investments
. Other loans
. Other financial assets 124
Shares consolidated under equity method
------------------------------------------------------------------------------------------------------------------------------------
. TOTAL I ......................... 10 725 226 10 499 124
------------------------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only
. Other external trade debtors
External sundry debtors non-operating
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand
Prepaid expenses
------------------------------------------------------------------------------------------------------------------------------------
. TOTAL II ........................
------------------------------------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
------------------------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 10 725 226 10 499 124
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:55
US19 - HAVAS NOTH AMERICA SOCIAL
BALANCE SHEET - LIABILITIES USD
-----------------------------------------------------------------------------------------------------------------------------------
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 1 1
Premiums
Reevaluation reserve
Legal reserve
Other reserves
Retained earnings -1 -845
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group -767 844
-----------------------------------------------------------------------------------------------------------------------------------
. TOTAL I ....................................................... -767
-----------------------------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
-----------------------------------------------------------------------------------------------------------------------------------
. TOTAL II..........................................................
Other stockholders' equity III
-----------------------------------------------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges
Deferred tax allowance
Provisions due to goodwills
-----------------------------------------------------------------------------------------------------------------------------------
. TOTAL IV..........................................................
-----------------------------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions 10 000
. Other financial liabilities 964
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 302 124
. Fiscal & social liabilities
. Other liabilities & accruals
Other debts Non Group
. Assets suppliers
. Income tax - corporation tax
. Other non-operating debts
Payables & Others debts Group
Deferred income
-----------------------------------------------------------------------------------------------------------------------------------
. TOTAL V........................................................... 11 266 124
-----------------------------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
-----------------------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 10 499 124
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:55
US19 - HAVAS NORTH AMERICA SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) USD
------------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070
---------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070
---------------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
---------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
---------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
---------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ////////////////////////////// /////////////////////////////
---------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB
---------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ////////////////////////////// //////////////////////////////
---------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810
---------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500
---------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410
Social charges 6450
LTIP 6819
---------------------------------------------------------------------------------------------------------------------------------
External Staff 6210
---------------------------------------------------------------------------------------------------------------------------------
Supplies 6060
---------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122
---------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
---------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100
(including management fees expenses)
---------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310
---------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811 226
---------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816
---------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
---------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815
---------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 -844
---------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 226 -844
---------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI -226 844
---------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:55
US19 - HAVAS NORTH AMERICA SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) USD
---------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
---------------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
---------------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
---------------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680
---------------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
---------------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
---------------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
---------------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
---------------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
---------------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
---------------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 541
---------------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
---------------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
---------------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).................. VIII 541
---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX -541
(PER BOOK)
---------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710
---------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
---------------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
---------------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
---------------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
---------------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
---------------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the
current year's profit 7770 ///////////////////////////// /////////////////////////////
---------------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
---------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:55
US19 - HAVAS NORTH AMERICA SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) USD
-----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710
------------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
------------------------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
------------------------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
------------------------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
------------------------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
------------------------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
------------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI
------------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII
------------------------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND -767 844
COMBINED OPERATIONS VI+IX+XII= XIII
------------------------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
------------------------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
------------------------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950
------------------------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
------------------------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 -767 844
(XIII+XV-XVI-XVII-XVIII)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 17:01
US20 - SFM MEDIA CORPORATION SOCIAL
BALANCE SHEET - ASSETS USD
------------------------------------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses
. Goodwill (statutory accounts)
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 3 173 2 644 529 517
. Other tangible assets
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares)
. Loans to subsidiaries 20 976 20 976
. Other long term investments
. Other loans
. Other financial assets
Shares consolidated under equity method
------------------------------------------------------------------------------------------------------------------------------------
. TOTAL I ......................... 24 149 2 644 21 505 517
------------------------------------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 26 960 103 26 857 20 950
. Other external trade debtors
External sundry debtors non-operating 816 816 1 073
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 13 736
Prepaid expenses 10 10 13
---------------------------------------------------------------------------------------------------------------------------------
. TOTAL II ........................ 27 786 103 27 683 35 759
---------------------------------------------------------------------------------------------------------------------------------
Deferred charges III 72 72 158
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
---------------------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 52 007 2 747 49 260 36 447
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 17:01
US20 - SFM MEDIA CORPORATION SOCIAL
BALANCE SHEET - LIABILITIES USD
------------------------------------------------------------------------------------------------------------------------------------
N N - 1
<S> <C> <C>
Share capital 861 861
Premiums
Reevaluation reserve
Legal reserve
Other reserves
Retained earnings
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 2 039
------------------------------------------------------------------------------------------------------------------------------------
. TOTAL I...................................................... 2 900 861
------------------------------------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
------------------------------------------------------------------------------------------------------------------------------------
. TOTAL II........................................................
------------------------------------------------------------------------------------------------------------------------------------
Other stockholders' equity III
------------------------------------------------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges
Deferred tax allowance
Provisions due to goodwills
------------------------------------------------------------------------------------------------------------------------------------
. TOTAL IV........................................................
------------------------------------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions 6 403
. Other financial liabilities
Advance payments from customers
Payables from operations Non Group
. Trade suppliers non-group 39 006 35 586
. Fiscal & social liabilities
. Other liabilities & accruals 951
Other debts Non Group
. Assets suppliers
. Income tax - corporation tax
. Other non-operating debts
Payables & Others debts Group
Deferred income
------------------------------------------------------------------------------------------------------------------------------------
. TOTAL V......................................................... 46 360 35 586
------------------------------------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
------------------------------------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 49 260 36 447
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 17:01
US20 - SFM MEDIA CORPORATION SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) USD
----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 16 223
----------------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070
----------------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
----------------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
----------------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
----------------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 ///////////////////////////// ////////////////////////////
----------------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 16 223
----------------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 ///////////////////////////// ////////////////////////////
----------------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810
----------------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500
----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 7 773
Social charges 6450 1 264
LTIP 6819
----------------------------------------------------------------------------------------------------------------------------------
External Staff 6210 80
----------------------------------------------------------------------------------------------------------------------------------
Supplies 6060 119
----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122 187
----------------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125 915
----------------------------------------------------------------------------------------------------------------------------------
Other External Services 6100 2 916
(including management fees expenses)
----------------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 3
----------------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811
----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816 207
----------------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
----------------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815
----------------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 1 845
----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 15 309
----------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 914
----------------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 17:01
US20 - SFM MEDIA CORPORATION SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) USD
----------------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
----------------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
----------------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
----------------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 1 125
----------------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
----------------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
----------------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660
----------------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
----------------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 1 125
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
----------------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
----------------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610
----------------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660
----------------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE).....................VIII
----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 1 125
(PER BOOK)
----------------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710
----------------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751
----------------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
----------------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
----------------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
----------------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
----------------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the current
year's profit 7770 //////////////////////////// ////////////////////////////
----------------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
----------------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 17:01
US20 - SFM MEDIA CORPORATION SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) USD
----------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710
----------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751
----------------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
----------------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
----------------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
----------------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
----------------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875
----------------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI
EXTRAORDINARY NET RESULT X-XI = XII
----------------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND 2 039
COMBINED OPERATIONS VI+IX+XII= XIII
----------------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
----------------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
----------------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950
----------------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
----------------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 2 039
(XIII+XV-XVI-XVII-XVIII)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
PORO2 - MEDIAPOLIS PORTUGAL SOCIAL
BALANCE SHEET - ASSETS PTE
------------------------------------------------------------------------------------------------------
Brut Amort & Prov Net Net
N N N N - 1
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Uncalled subscribed capital
Intangible assets
. Start-up costs
. Research & development costs
. Concessions, patents & licenses
. Goodwill (statutory accounts)
. Adv. payments to int. assets suppliers
. Other intangible assets
Goodwill arising on consolidation
Tangible assets
. Lands
. Buildings
. Plant, machinery, tools & equipment 32 477 25 410 7 067 19 014
. Other tangible assets
. Intangible assets in progress
. Adv. payments to tang. assets suppl.
Financial assets
. Investment in subsidiaries (shares) 1 500 1 500 1 500
. Loans to subsidiaries
. Other long term investments
. Other loans
. Other financial assets
Shares consolidated under equity method
------------------------------------------------------------------------------------------------------
. TOTAL I................................ 33 977 25 410 8 567 20 514
------------------------------------------------------------------------------------------------------
Inventories and work in progress
. Raw materials
. Work in progress: goods
. Work in progress: services
. Semi-finished & finished goods
. Others
Adv. payments on orders
Operating receivables non group
. External trade debtors - clients only 1 516 894 1 516 894 2 162 268
. Other external trade debtors
External sundry debtors non-operating 479 930 479 930 431 613
Subscribed capital, called, unpaid
Receivables Group
Securities
. Own shares
. Marketable securities
Cash at bank and in hand 295 926 295 926 101 372
Prepaid expenses
------------------------------------------------------------------------------------------------------
. TOTAL II............................... 2 292 750 2 292 750 2 695 253
------------------------------------------------------------------------------------------------------
Deferred charges III
Deferred taxes IV
Refund premiums / bonds V
Exchange adjustment - debit VI
Eliminations counterparts VII
------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 2 326 727 25 410 2 301 317 2 715 767
------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
PORO2 - MEDIAPOLIS PORTUGAL SOCIAL
BALANCE SHEET - LIABILITIES PTE
-------------------------------------------------------------------------------------------------------
N N - 1
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
Share capital 2 000 2 000
Premiums
Reevaluation reserve
Legal reserve 400 400
Other reserves
Retained earnings 13 791 8 457
Provisions provided by fiscal regul.
Investment grants - government
Consolidated reserves / group
Translation adjustment
Result / group 1 016 5 137
-------------------------------------------------------------------------------------------------------
. TOTAL I................................................. 17 207 15 994
-------------------------------------------------------------------------------------------------------
Minority interest/consolidation reserve
Minority interest/translation reserve
Minority interest/result
-------------------------------------------------------------------------------------------------------
. TOTAL II.................................................
-------------------------------------------------------------------------------------------------------
Other stockholders' equity III
-------------------------------------------------------------------------------------------------------
Provisions for risks
Provisions for charges
Deferred tax allowance
Provisions due to goodwills
-------------------------------------------------------------------------------------------------------
. TOTAL IV.................................................
-------------------------------------------------------------------------------------------------------
Financial liabilities
. Convertible debenture loans
. Other debenture loans
. Due to banks & credit institutions 116 658 302 875
. Other financial liabilities
Advance payments from customers 1 554 469
Payables from operations Non Group
. Trade suppliers non-group 1 477 344
. Fiscal & social liabilities 4 043 122 091
. Other liabilities & accruals 682 590 714 782
Other debts Non Group
. Assets suppliers
. Income tax - corporation tax 3 475 4 977
. Other non-operating debts 579
Payables & Others debts Group
Deferred income
-------------------------------------------------------------------------------------------------------
. TOTAL V.................................................. 2 284 110 2 699 773
-------------------------------------------------------------------------------------------------------
Exchange adjustment - credit VI
Eliminations counterparts VII
-------------------------------------------------------------------------------------------------------
. GRAND TOTAL (I to VII) 2 301 317 2 715 767
-------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
PORO2 - MEDIAPOLIS PORTUGAL SOCIAL
G1.5 - PROFIT & LOSS ACCOUNT (1/2) PTE
----------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TURNOVER PER BOOK 7070 8 750 299 9 841 834
----------------------------------------------------------------------------------------------------------------------------
Cost of purchased merchandise (a) 6070 8 563 079 9 663 991
----------------------------------------------------------------------------------------------------------------------------
Cost of other suppliers (a) 6010
----------------------------------------------------------------------------------------------------------------------------
External Services Purchases 6040
----------------------------------------------------------------------------------------------------------------------------
Change in Work in Progress 7133
(production, services, finished goods)
----------------------------------------------------------------------------------------------------------------------------
Fixed Assets built by the Company 7200 /////////////////////////// ///////////////////////////
----------------------------------------------------------------------------------------------------------------------------
TOTAL GROSS INCOME PER BOOK I GIPB 187 220 177 843
----------------------------------------------------------------------------------------------------------------------------
OTHER OPERATING INCOME (OOI)
Subsidies from Government 7400 /////////////////////////// ///////////////////////////
----------------------------------------------------------------------------------------------------------------------------
Write back of Provisions & Depreciation 7810
----------------------------------------------------------------------------------------------------------------------------
Other operating Income 7500
----------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOI) IV
OTHER OPERATING EXPENSES (OOE)
Salaries & wages 6410 83 990 87 934
Social charges 6450 23 721 25 383
LTIP 6819
----------------------------------------------------------------------------------------------------------------------------
External Staff 6210 341
----------------------------------------------------------------------------------------------------------------------------
Supplies 6060 1 618 2 470
----------------------------------------------------------------------------------------------------------------------------
Operating lease charges (equipment, cars) 6122 1 263 1 263
----------------------------------------------------------------------------------------------------------------------------
Operating lease charges (buildings) 6125
----------------------------------------------------------------------------------------------------------------------------
Other External Services 6100
(including management fees expenses)
----------------------------------------------------------------------------------------------------------------------------
Taxation (excluding Corporation Tax) 6310 72 281
----------------------------------------------------------------------------------------------------------------------------
Amortization of Fixed Assets 6811
----------------------------------------------------------------------------------------------------------------------------
Depreciation of Fixed Assets 6816 9 307 10 997
----------------------------------------------------------------------------------------------------------------------------
Depreciation of Current Assets 6817
----------------------------------------------------------------------------------------------------------------------------
Provisions for Risks & Charges 6815
----------------------------------------------------------------------------------------------------------------------------
Other Operating Expenses 6500 55 189 63 488
----------------------------------------------------------------------------------------------------------------------------
. Sub Total (OOE) V 175 160 192 157
----------------------------------------------------------------------------------------------------------------------------
OPERATING RESULT PER BOOK I+IV-V = VI 12 060 -14 314
----------------------------------------------------------------------------------------------------------------------------
(a) including Changes in Inventories
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
PORO2 - MEDIAPOLIS PORTUGAL SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) PTE
----------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL INCOME (FI)
Dividends received (gross) 7610
-----------------------------------------------------------------------------------------------------------------------------
Interest receivable on Inter Comp.Loans 7612
-----------------------------------------------------------------------------------------------------------------------------
Income from other Investments & Loans 7620
-----------------------------------------------------------------------------------------------------------------------------
Other interest Income 7680 166 714 190 590
-----------------------------------------------------------------------------------------------------------------------------
Write back of financial provisions:
- related to Group Investments 7862
-----------------------------------------------------------------------------------------------------------------------------
- other financial provisions 7863
-----------------------------------------------------------------------------------------------------------------------------
Exchange rate gains 7660 37 10
-----------------------------------------------------------------------------------------------------------------------------
New Profit on Sales of market.securities 7670
-----------------------------------------------------------------------------------------------------------------------------
. Sub total (FI) VII 166 751 190 600
FINANCIAL EXPENSES (FE)
Amort. & Deprec. Of Group Investments 6862
-----------------------------------------------------------------------------------------------------------------------------
Other Financial Depreciation 6863
-----------------------------------------------------------------------------------------------------------------------------
Interest Expenses 6610 143 631 164 820
-----------------------------------------------------------------------------------------------------------------------------
Exchange rate losses 6660 2 776 1 347
-----------------------------------------------------------------------------------------------------------------------------
Net loss on Sales of market.securities 6670
-----------------------------------------------------------------------------------------------------------------------------
. Sub Total (FE)....................VIII 146 407 166 167
-----------------------------------------------------------------------------------------------------------------------------
FINANCIAL NET RESULT VII-VIII = IX 20 344 24 433
(PER BOOK)
-----------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY INCOME (EI)
General 7710
-----------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Intangible Assets Selling Price 7751 1 375
-----------------------------------------------------------------------------------------------------------------------------
- Tangible Assets Selling Price 7752
-----------------------------------------------------------------------------------------------------------------------------
- Financial Investments Selling Price 7755
-----------------------------------------------------------------------------------------------------------------------------
- Other Extraordinary Income 7780
-----------------------------------------------------------------------------------------------------------------------------
Reversal of Revaluation accounts 7788
-----------------------------------------------------------------------------------------------------------------------------
Share of Investment grants transferred to the
current year's profit 7770 /////////////////////////// /////////////////////////////
-----------------------------------------------------------------------------------------------------------------------------
Reversal of Extraordinary Provisions 7870
-----------------------------------------------------------------------------------------------------------------------------
. Sub Total (EI) X 1 375
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P 2
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATION 12/98 18-03-99 16:54
PORO2 - MEDIAPOLIS PORTUGAL SOCIAL
G1.6 - PROFIT & LOSS ACCOUNT (2/2) PTE
----------------------------------------------------------------------------------------------------------------------------
Head YEAR YEAR
N N - 1
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EXTRAORDINARY EXPENSES (EE)
GENERAL 6710 3 5
----------------------------------------------------------------------------------------------------------------------------
On Sale of Assets:
- Net Book Value of Intangib.Assets sold 6751 220
----------------------------------------------------------------------------------------------------------------------------
- Net Book Value of Tangible Assets sold 6752
----------------------------------------------------------------------------------------------------------------------------
- Gross Value of Shares sold 6755
----------------------------------------------------------------------------------------------------------------------------
- Losses on other Disposals 6780
----------------------------------------------------------------------------------------------------------------------------
Provisions provid.by fiscal regulations 6870
----------------------------------------------------------------------------------------------------------------------------
Other Extraordinary Allowances 6875 29 065
----------------------------------------------------------------------------------------------------------------------------
. Sub Total (EE) XI 29 288 5
----------------------------------------------------------------------------------------------------------------------------
EXTRAORDINARY NET RESULT X-XI = XII -27 913 -5
----------------------------------------------------------------------------------------------------------------------------
PROFIT PER BOOK BEFORE TAX AND 4 491 10 114
COMBINED OPERATIONS VI+IX+XII= XIII
----------------------------------------------------------------------------------------------------------------------------
COMBINED OPERATIONS
Allocated Profit/Transferred Loss XV 7550
----------------------------------------------------------------------------------------------------------------------------
Allocated Loss/Transferred Profit XVI 6550
----------------------------------------------------------------------------------------------------------------------------
CORPORATION TAX - INCOME TAX 6950 3 475 4 977
----------------------------------------------------------------------------------------------------------------------------
Provision for Deferred Tax 6957
----------------------------------------------------------------------------------------------------------------------------
NET PROFIT (or LOSS) 8800 1 016 5 137
(XIII+XV-XVI-XVII-XVIII)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
P&L Proforma
------------
Country: PORTUGAL
------------------
Currency: ESCUDOS
------------------
<TABLE>
<CAPTION>
Column A Column B Column C Column D = A - B + C Column E Column F
-----------------------------------------------------------------------------------------------
Local books Ale's and reclassification Havas advertising Ale's and reclassifications
group
-----------------------------------------------------------------------------------------------
Total Mediapolis - Y&R + Euro RSCG Media Mediapolis + Euro RSCG Media
-----------------------------------------------------------------------------------------------
1998 1998
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
BILLINGS [*] [*] [*] [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
CLIENT FEES [*] [*] [*] [*] [*]
-----------------------------------------------------------------------------------------------
MEDIA INCOME [*] [*] [*] [*] [*] [*]
-----------------------------------------------------------------------------------------------
OTHER INCOME [*] [*] [*] [*] [*]
-----------------------------------------------------------------------------------------------
---------------------------------- -----------------------------------------------------------------------------------------------
TOTAL GROSS INCOME [*] [*] [*] [*] [*] [*]
---------------------------------- -----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
COMPENSATION [*] [*] [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Rent & occupancy [*] [*] [*]
Fees and subscriptions [*] [*] [*]
Leasings [*] [*]
Depreciation [*] [*] [*]
Management fees [*] [*]
Travel - entertainment [*] [*] [*]
Public relations [*] [*]
New Business expenses [*] [*] [*]
Telephone, mail [*] [*] [*]
Tax (other than income tax) [*] [*]
Computers [*] [*] [*]
Insurance [*] [*] [*]
Stationery and supply [*] [*] [*]
Research [*] [*]
Miscellaneous [*] [*] [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
TOTAL OTHER EXPENSES [*] [*] [*] [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
OPERATING EXPENSES RECHARGED TO
SUBSIDIARIES
-----------------------------------------------------------------------------------------------
---------------------------------- -----------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES
---------------------------------- -----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
---------------------------------- -----------------------------------------------------------------------------------------------
DEBIT [*] [*] [*] [*] [*] [*]
---------------------------------- -----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
NON OPERATING (Loss) [*] [*] [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
FINANCIAL Income (exp) [*] [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
PBT [*] [*] [*] [*] [*] [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
TAX [*]
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
NET PROFIT [*]
-----------------------------------------------------------------------------------------------
<CAPTION>
Column G = D + E + F
------------------------------------------
Accounting principles in accordance
with Standard valuation method
-----------------------------------------
1998
-----------------------------------------
<S> <C>
-----------------------------------------
BILLINGS 5,224,432.0
-----------------------------------------
-----------------------------------------
CLIENT FEES [*]
-----------------------------------------
MEDIA INCOME [*]
-----------------------------------------
OTHER INCOME [*]
-----------------------------------------
---------------------------------- -----------------------------------------
TOTAL GROSS INCOME 704,439.2
---------------------------------- -----------------------------------------
-----------------------------------------
COMPENSATION 216,120.0
-----------------------------------------
-----------------------------------------
Rent & occupancy 23,714.0
Fees and subscriptions 24,808.0
Leasings 1,346.0
Depreciation 10,878.0
Management fees 1,715.2
Travel - entertainment 7,149.0
Public relations 3,525.0
New Business expenses 652.0
Telephone, mail 7,794.0
Tax (other than income tax) 72.0
Computers 3,624.0
Insurance 1,567.0
Stationery and supply 3,284.0
Research 5,353.0
Miscellaneous 4,233.0
---------------------------------------
---------------------------------------
TOTAL OTHER EXPENSES 99,714.2
---------------------------------------
---------------------------------------
OPERATING EXPENSES RECHARGED TO
SUBSIDIARIES
---------------------------------------
---------------------------------- ---------------------------------------
TOTAL OPERATING EXPENSES
---------------------------------- ---------------------------------------
---------------------------------------
---------------------------------- ---------------------------------------
DEBIT 388,605.0
---------------------------------- ---------------------------------------
---------------------------------------
---------------------------------------
NON OPERATING (Loss) -1,621.0
---------------------------------------
---------------------------------------
FINANCIAL Income (exp) -8,158.0
---------------------------------------
---------------------------------------
PBT 378,826.0
---------------------------------------
---------------------------------------
TAX
---------------------------------------
---------------------------------------
NET PROFIT
---------------------------------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
MEDIAPOLIS UK
BALANCE SHEET AS OF 01.01.99
<TABLE>
<CAPTION>
(Pound)'000
<S> <C>
Fixed assets
Investments 0
Tangible assets 260
Current assets
Debtors 0
Cash 250
----------------
Net current assets 250
----------------
Total assets less current liabilities 510
Creditors after one year 0
----------------
Net assets / (liabilities) 510
================
Capital and reserves
Called up share capital 510
Share premium 0
Merger reserve 0
Profit and loss account 0
----------------
Total capital employed 510
================
</TABLE>
<PAGE>
MEDIAPOLIS UK
-------------
CONSOLIDATED PROFIT AND LOSS - DECEMBER 1998
--------------------------------------------
SUMMARY OF RESULTS
------------------
The December 1998 results are measured against the fourth 1998 budget reforecast
of October 1998.
The main variance lines - month only and year to date are as follows : -
<TABLE>
<CAPTION>
MONTH YTD 04
----- --- --
DECEMBER 1998 DECEMBER 1998 FULL YEAR
------------- ------------- ---------
ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE BUDGET
------ ------ -------- ------ ------ -------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
---------------
-------------------------- -------------------------------------------------------------------------------------
BILLINGS [*] [*] [*] [*] [*] [*] [*]
--------------------------
[*]
TOTAL INCOME [*] [*] [*] [*] [*] [*]
--------------------------------------
Income/Billings % [*] [*] [*] [*] [*]
--------------------------------------
TOTAL EXPENSES [*] [*] [*] [*] [*] [*] [*]
-------------------------------------------------------------------------------------
OPERATING PROFIT [*] [*] [*] [*] [*] [*] [*]
OPERATING PROFIT % [*] [*] [*] [*] [*]
Interest Expenses [*] [*] [*] [*] [*] [*] [*]
Interest Income [*] [*] [*] [*] [*] [*] [*]
WCRS Interest [*] [*] [*] [*] [*] [*] [*]
Exchange Differences [*] [*] [*] [*] [*] [*] [*]
-------------------------------------------------------------------------------------
OPERATING PROFIT BEFORE TAX [*] [*] [*] [*] [*] [*] [*]
Non-Operating Costs [*] [*] [*] [*] [*] [*] [*]
-------------------------------------------------------------------------------------
NET PROFIT / (LOSS) [*] [*] [*] [*] [*] [*] [*]
---------------------------------------- ---------------
NET PROFIT / (LOSS) % [*] [*] [*] [*] [*] [*]
---------------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
IPOLE
-----
CONSOLIDATED PROFIT & LOSS STATEMENT
------------------------------------
12 MONTHS TO DECEMBER 1998
--------------------------
<TABLE>
<CAPTION>
MONTH YEAR-TO-DATE
----- ------------
DECEMBER 1998 12 MONTHS TO DECEMBER 1998
ACTUAL 4th Revised VARIANCE ACTUAL 4th Revised VARIANCE
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BILLINGS [*] [*] [*] [*] [*] [*]
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME
Media Commission [*] [*] [*] [*] [*] [*]
Other Income [*] [*] [*] [*] [*] [*]
WCRS Other Income [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
TOTAL OPERATING INCOME [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
OPERATING EXPENSES
Compensation [*] [*] [*] [*] [*] [*]
Management Recharges [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
Total Compensation [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
Rent & occupancy [*] [*] [*] [*] [*] [*]
Fees & subscriptions [*] [*] [*] [*] [*] [*]
Computer Costs [*] [*] [*] [*] [*] [*]
Office Costs [*] [*] [*] [*] [*] [*]
Motor Expenses [*] [*] [*] [*] [*] [*]
Compensation Reclassification [*] [*] [*] [*] [*] [*]
Travel & Entertainment [*] [*] [*] [*] [*] [*]
Own Advertising/Promotions [*] [*] [*] [*] [*] [*]
Financial Costs [*] [*] [*] [*] [*] [*]
EURO RSCG Management Fees [*] [*] [*] [*] [*] [*]
Client unbillable [*] [*] [*] [*] [*] [*]
Bad Debt Provision [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
Total Other Expenses [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
OPERATING PROFIT [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
Interest Expenses
Interest Income [*] [*] [*] [*] [*] [*]
VCRS interest earnings [*] [*] [*] [*] [*] [*]
Exchange Differences [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
OPERATING PROFIT BEFORE TAX [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
Non Operating Costs [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
NET PROFIT / (LOSS) [*] [*] [*] [*] [*] [*]
---------------------------------------------------------------------------------------------
<CAPTION>
FULL YEAR FULL YEAR FULL YEAR FULL YEAR FULL YEAR
4th Revised 3rd Revised 2nd Revised 1st Revised Original
Forecast Forecast Forecast Forecast Budget
---------------- ----------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C>
BILLINGS [*] [*] [*] [*] [*]
------------------------------------------------------ ----------- ------------ ----------- ----------
OPERATING INCOME
Media Commission [*] [*] [*] [*] [*]
Other Income [*] [*] [*] [*] [*]
WCRS Other Income [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
TOTAL OPERATING INCOME [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
OPERATING EXPENSES
Compensation [*] [*] [*] [*] [*]
Management Recharges [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
Total Compensation [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
Rent & occupancy [*] [*] [*] [*] [*]
Fees & subscriptions [*] [*] [*] [*] [*]
Computer Costs [*] [*] [*] [*] [*]
Office Costs [*] [*] [*] [*] [*]
Motor Expenses [*] [*] [*] [*] [*]
Compensation Reclassification [*] [*] [*] [*] [*]
Travel & Entertainment [*] [*] [*] [*] [*]
Own Advertising/Promotions [*] [*] [*] [*] [*]
Financial Costs [*] [*] [*] [*] [*]
EURO RSCG Management Fees [*] [*] [*] [*] [*]
Client unbillable [*] [*] [*] [*] [*]
Bad Debt Provision [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
Total Other Expenses [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
----------
TOTAL OPERATING EXPENSES [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
----------
OPERATING PROFIT [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
Interest Expenses [*]
Interest Income [*] [*] [*] [*] [*]
VCRS interest earnings [*] [*] [*] [*] [*]
Exchange Differences [*] [*] [*] [*] 0
---------------- ----------- ------------ ----------- ----------
OPERATING PROFIT BEFORE TAX [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
Non Operating Costs [*] [*] [*] [*] 0
---------------- ----------- ------------ ----------- ----------
NET PROFIT / (LOSS) [*] [*] [*] [*] [*]
---------------- ----------- ------------ ----------- ----------
</TABLE>
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
<PAGE>
CCA
---
<TABLE>
<CAPTION>
----------------------------------------------------------------- ----------------------------------------------
Gross Income (100% Media) 12,662 Compensation
-----------------------------------------------------------------
<S> <C> <C> <C>
-----------
Compensation 6,790 Management 4,611
-----------
Account management
Rent and occupancy 488 Planners and Buyers
Depreciation 67 Back office 2,179
------------
Travel - entertainment 34 6,790
------------
Public relations 86
Telephone mail 86 Comments:
Tax 170 Management: 3 salaries
Computers 148 1 honoraire
Insurance 34 Etude et secreariat 5 salaries
Stationery and supply 30 1 honoraire
Miscellaneous 333 1 cacataire
----------------------------------------------
-----------
Total Other expenses 1,476
-----------
----------------------------------------------
Rent and Occupancy
----------------------------------------------------------------- ----------------------------------------------
TOTAL OPERATING EXPENSES 8,266
-----------------------------------------------------------------
Rent 488
-----------------------------------------------------------------
EBIT 4,396 Square meter occupied 156
-----------------------------------------------------------------
ADJUSTMENTS (Mediapolis WW) 421 Comments:
156 m/2/ facture
-----------------------------------------------------------------
RESULTATS en Compta CCA 4,817 180 m/2/ utilise hors salle de reunion
----------------------------------------------------------------- ----------------------------------------------
</TABLE>
<PAGE>
Annex 3.5.1.
------------
Representations and warranties
------------------------------
(pages 1 through 17)
--------------------
37
<PAGE>
Annex 3.5.1.
------------
REPRESENTATIONS AND WARRANTIES
------------------------------
Corporate matters
-----------------
1.- Due authorisation. Each of HA and the MP Shareholders has full power and
-----------------
authority to enter into this Contribution Agreement, with all its Annexes
and Schedules, as well as each of the other Implementation Agreements
executed on the date hereof. The present Contribution Agreement, with all
its Annexes and Schedules, as well as each of the other Implementation
Agreements executed on the date hereof, have been duly executed by HA and
the MP Shareholders, respectively.
2.- Consent and absence of conflicts. Except as set forth in clause 3.1 of the
--------------------------------
Merger Agreement, the execution of this Contribution Agreement does not
require the approval of any third party, entity, authority or institution,
either public or private.
3.- Due incorporation. The Acquired Companies as described in Schedule A have
-----------------
been duly incorporated, are validly existing, have been duly registered,
and have full legal personality under the laws of their jurisdiction and
their shares may be the object of the present Contribution Agreement. No
resolution has been adopted to amend the by-laws of the Acquired Companies
nor to request a suspension of payment or the bankruptcy of the Acquired
Companies.
4.- Business conducted. The Acquired Companies fulfil all the material legal
------------------
requisites to own, lease and operate all of their Company Assets (as
defined below). Regarding their ability to act, the Acquired Companies
have all the material permits, licences, approvals and authorisations; to
conduct their activity. The Acquired Companies are entitled to conduct the
Media Business, in accordance with their by-laws.
5.- Investment in other companies. Except as set forth in Schedule B (the
----------------------------- -----------
"Subsidiaries"), the Acquired Companies do not hold any investment in other
companies, whether these be private or public companies, nor in any
partnership any kind of association ("joint venture"), economic interest
grouping, or temporary union of businesses.
6.- Composition of the share capital. The share capital of the Acquired
--------------------------------
Companies has been described in Annex 3.4 to the Contribution Agreement and
all shares are validly issued, fully subscribed and paid up, and not
subject to any pledges, liens, charges or other encumbrances
1
<PAGE>
or any limitation which could affect the transfer thereof. Except as set
forth in Schedule C, there are no:
----------
(a) options, subscription rights, warrants or other rights allowing
subscription or acquisition of shares in the Acquired Companies,
(b) securities which are convertible or exchangeable for shares in the
Acquired Companies,
(c) shareholders or third parties that have a right to acquire shares in
the Acquired Companies or rights thereto,
(d) authorisations to issue share capital.
HA represent and warrants to the MP Shareholders that it has the right to
purchase any shares to be sold upon exercise of the stock options granted
to management mentioned in Schedule C and these rights are freely
----------
transferable to New MP and will be transferred to New MP on or prior to
Merger Date. The costs of purchase of the stock option shares from the
Mediapolis France management in July 1999 shall be borne by HA through an
increase in capital in cash of Mediapolis Worldwide S.A. prior to Merger
Date.
7.- Ownership of the Shares. HA and the MP Shareholders hold, directly or
-----------------------
indirectly, just and legitimate title to full ownership of the Acquired
Companies and their Subsidiaries (economic and political rights).
8.- Proof of ownership. Ownership of the shares in the share capital of the
------------------
Acquired Companies is recorded (clear of all and any pledges, liens,
charges or other encumbrances or any limitation which could affect the
transfer thereof) in the Acquired Companies' registered shares books or
equivalent thereof and is accredited by the public deeds and/or such other
documents as required by applicable law.
Company Assets
--------------
9.- Title to Company Assets. The Acquired Companies own or have the right to
-----------------------
use all tangible assets required for the operation of their business (the
"Company Assets"). Those of these Company Assets which are owned by the
Acquired Companies can be freely and legally assigned to third parties
without limitation, and are clear and free of any pledges, liens, charges
or other encumbrances, except when encumbered in the ordinary course of
business, e.g. for the purposes of obtaining bank financing.
2
<PAGE>
10.- Agreements entered into by the Acquired Companies. The Acquired
-------------------------------------------------
Companies have not entered into any material agreement unrelated to the
operation of their business. All material agreements were entered into in
all material respects according to market terms as they existed at the
time of execution of such agreements, taking into account specific
advantages that may have been granted to the third party for reasonable
commercial reasons.
11.- Leases. To the extent offices not leased or sub-leased by the
------
Acquired Companies, are presently used by the Acquired Companies, HA and
the MP Shareholders represent and warrant that the Acquired Companies
shall be able to use such office space as if it were the lessee or the
sub-lessee thereof, including the right to negotiate a reasonable market-
rate rent to be paid, if necessary.
Computer System
---------------
12.- Computer System. (a) All computer hardware and software, as well as the
---------------
programs necessary to run them (here collectively referred to as "Computer
System"), are in reasonable working order and have been adequately looked
after and maintained to ensure the reasonable performance of the Computer
System.
(b) Arthur Andersen has reviewed the Computer Systems of the Acquired
Companies regarding compliance with year 2000 requirements. Both Parties
have exchanged said Arthur Andersen reports detailing potential non-
compliance issues. HA and/or, the MP Shareholders, as the case may be,
will indemnify New MP for any costs incurred by New MP in the excess of FF
4 million as a result of non-compliance issues that have not been
disclosed in the Arthur Andersen report provided by such Party.
(c) The use of the Computer System (especially the software) by the
Acquired Companies does not depend on contracts or legal relations with
third parties, except any user licenses.
Financial Accounts; Undisclosed Liabilities
-------------------------------------------
13.- Each of HA (in respect of the HA Acquired Companies) and the MP
Shareholders (in respect of Media Planning) represents and warrants as
follows:
(i) that the financial accounts of the Acquired Companies (the "1998
Financial Accounts"), which exclude assets that are not to be
contributed pursuant to the Merger Agreement and are attached to the
Contribution Agreement pursuant to
3
<PAGE>
Clause 3.4, have been prepared in accordance with the accounting
principles and practices generally applied in the relevant
jurisdictions,
(ii) that, on the basis of such accounting principles, the 1998 Financial
Accounts give a true and fair view of the financial condition of the
Acquired Companies as at 31st December 1998 and the results of their
operations and changes in financial condition for the period then
ended.
14.- Undisclosed liabilities. HA shall be solely responsible for and
-----------------------
undertakes to New MP to indemnify and hold New MP harmless and to keep New
MP fully indemnified on demand against any decrease in assets or increase
in liabilities of the HA Acquired Companies as compared to the values and
amounts of the assets and liabilities of such Acquired Companies as set
forth in the relevant 1998 Financial Accounts, provided only that any such
decrease or increase is based upon facts or circumstances having their
origin prior to 31st December 1998.
Similarly, the MP Shareholders shall be solely responsible for and
undertake to New MP to indemnify and hold New MP harmless and to keep New
MP fully indemnified on demand against any decrease in assets or increase
in liabilities of Media Planning as compared to the values and amounts of
the assets and liabilities of Media Planning as set forth in the 1998
Financial Accounts of Media Planning, provided only that any such decrease
or increase is based upon facts or circumstances having their origin prior
to 31st December 1998.
15.- Ongoing activity. Except for reorganizations made pursuant to the Merger
----------------
Agreement, from January 1st, 1999 (i) until the Merger Date the activity of
the Acquired Companies has been and will be carried out in the ordinary
course of business, and (ii) until the date hereof no material adverse
change or event has occurred which could significantly affect negatively
the business activity of the Acquired Companies taken as a whole.
Employment and Labour Matters
-----------------------------
16.- Aspects of labour and employment. (a) The staff of the Acquired Companies
--------------------------------
and the personnel transferred pursuant to migration are exclusively those
included in the compensation cost established in the EBITDA used for the
valuation of all Media Business Contributions (the "Personnel").
(b) Except for the managers listed in Schedule D, the labour agreements, or
----------
similar agreements, of the Personnel follow market practice in all material
respects. Except for the aforementioned managers, there are no termination
compensations other than
4
<PAGE>
those provided for by applicable regulations, and there are no pension
arrangements or similar obligations which are not reflected in 1998
Financial Accounts.
(c) The Acquired Companies are up-to-date with payment of all their
obligations to the Personnel, except salary and expenses. HA and the MP
Shareholders declare that there is no significant labour unrest by the
Personnel.
(d) The Acquired Companies materially fulfil all applicable occupational
health and safety and occupational hazard regulations.
Migration
---------
17.- HA represents and warrants that all assets transferred to New MP pursuant
to migration are all and only the necessary assets (other than the shares
of Euro RSCG Limited) to carry out the business transferred pursuant to
migration as it was carried out in 1998.
18.- No liabilities or obligations of any kind shall be transferred to New MP
pursuant to migration, except those derived from the labour relationships
of the personnel effectively transferred and contractual obligations
deriving out of contracts effectively transferred pursuant to migration.
New MP will not be subject to any additional liability or obligation
derived from migration as defined in the Contribution Agreement.
Representation and warranties by the MP Shareholders with respect to New MP
---------------------------------------------------------------------------
19.- Due incorporation. New MP has been duly incorporated, is validly existing,
-----------------
has been duly registered, and has full legal personality under the laws of
the Kingdom of Spain, and the information with respect to New MP as
described in Schedule E hereto is true and correct. No resolution has been
adopted to amend the by-laws and no request has been made for a suspension
of payment or the bankruptcy of New MP.
20.- Business conducted. New MP fulfils all the material requisites to own,
------------------
lease and operate all of its company assets, which at the Merger Date only
consist of the shares in MP. Regarding its ability to act, New MP has all
the requisite material permits, licences, approvals and authorisations to
conduct its activity and New MP will be entitled on the Merger Date to
conduct, whether directly or indirectly, the Media Business, in accordance
with its by-laws.
21.- Investment in other companies. Except for the shares in MP, New MP does
-----------------------------
not hold an investment in other companies, whether these be private or
public limited
5
<PAGE>
companies, nor in any partnership, any kind of association ("joint
venture"), economic interest grouping, temporary union of businesses.
22.- Share capital. The shares in the share capital of New MP as per the
-------------
date hereof has been correctly described in Schedule F and furthermore
----------
there are no:
(a) options, subscription rights, warrants or other rights allowing
subscription or acquisition of shares in New MP,
(b) securities which are convertible or exchangeable for shares in New MP,
(c) shareholders or third parties that have a right to acquire shares in
New MP,
(d) authorisations to issue share capital.
On the Merger Date the shares to be issued to HA pursuant to this
Contribution Agreement will be validly issued, fully subscribed and paid
up, and not subject to any pledges, hens, charges or other encumbrances or
any, limitation which could affect the transfer thereof and furthermore
there will be no:
(a) options, subscription rights, warrants or other rights allowing
subscription or acquisition of shares in New MP,
(b) securities which are convertible or exchangeable for shares in New MP,
(c) shareholders or third parties that have a right to acquire shares in
New MP,
(d) authorisations to issue share capital.
23.- General indemnity with respect to liabilities of New MP. The MP
-------------------------------------------------------
Shareholders represent and warrant that New MP will not on Merger Date hold
any assets, except for the shares in MP, nor will have any liabilities,
other than its share capital. The MP Shareholders undertake to indemnify
and keep indemnified HA from and against all claims, liabilities (whether
civil or criminal), losses, costs and expenses howsoever incurred or
suffered by HA which may at any time arise out of or in connection with the
activities or business carried out by New MP at any date prior to the
Merger Date.
6
<PAGE>
Representations made by HA with respect to reorganisation issues
----------------------------------------------------------------
24.- United Kingdom. (a) HA undertakes to indemnify and keep indemnified New MP
--------------
from and against all claims, liabilities (whether civil, criminal or tax),
losses, costs and expenses howsoever incurred or suffered by any of New MP,
Mediapolis UK Limited or Euro RSCG Limited which may at any time arise out
of or in connection with the activities or business carried out by
Mediapolis UK Limited or Euro RSCG Limited at any date prior to the date
hereof and HA warrants that as of the date hereof Euro RSCG Limited is a
shell company which does not hold any assets nor have any liabilities.
(b) HA undertakes to indemnify and keep indemnified New MP from and
against all claims, liabilities (whether civil, criminal or tax), losses,
costs and expenses howsoever incurred or suffered by any of New MP,
Mediapolis UK Limited or Euro RSCG Limited which may at any time arise out
of or in connection with the pre-sale reorganisation of the UK business of
HA.
(c) For the purposes of this paragraph 24 New MP shall be deemed to
include its respective affiliates, successors, permitted assigns as well as
its directors, officers, employees and agents.
(d) Prior to Merger Date HA will provide 1998 audited Accounts for both
Mediapolis UK Limited (if incorporated prior to January 1st, 1999) and Euro
RSCG Limited, with no qualifications from the auditors.
25.- Havas North America, Inc. If the Interim Committee (as the defined in the
------------------------
Shareholders Agreement) should approve the contribution of Havas North
America, Inc., Havas will make the following representations and warranties
with respect to said company:
(i) Due incorporation. Havas North America, Inc. has been duly
----------------------
incorporated, is validly existing, has been duly registered, and has full
legal personality under the laws of the relevant State of the United States
of America. No resolution has been adopted to amend the by-laws and no
request has been made for a suspension of payment or the bankruptcy of
Havas North America, Inc.
(ii) Business conducted. Havas North America, Inc. fulfils all the material
-----------------------
requisites to own, lease and operate all of its company assets, which only
consist of the shares in SFM Media LLC. Regarding its ability to act, Havas
North America, Inc. has all the requisite material permits, licences,
approvals and authorisations to conduct its activity and Havas North
7
<PAGE>
America, Inc. will be entitled on the Merger Date to conduct, whether
directly or indirectly, its Media Business, in accordance with its by-laws.
(iii) Investment in other companies. Except for the shares in SFM Media
-----------------------------------
LLC, Havas North America, Inc. does not hold an investment in other
companies, whether these be private or public limited companies, nor in any
partnership, any kind of association ("joint venture"), economic interest
grouping, temporary union of businesses.
(iv) Share capital. The shares in the share capital of Havas North America,
------------------
Inc. are validly issued, fully subscribed and paid up, and not subject to
any pledges, charges or other encumbrances or any limitation which could
affect the transfer thereof and furthermore there are no:
(a) options, subscription rights, warrants or other rights allowing
subscription or acquisition of shares in Havas North America, Inc.,
(b) securities which are convertible or exchangeable for shares in Havas
North America, Inc.,
(c) shareholders or third parties that have a right to acquire shares in
Havas North America, Inc.,
(d) authorisations to issue share capital.
(v) Financial accounts. The 1998 financial accounts of Havas North American
----------------------
Inc. have been prepared in accordance with the accounting principles and
practices generally applied in the United States of America and on the
basis of such accounting principles, the 1998 financial accounts give a
true and fair view of the financial condition of Havas North America Inc.
as 31st December 1998.
(vi) General indemnity with respect to liabilities of Havas North America,
--------------------------------------------------------------------------
Inc. HA undertakes to indemnify and keep indemnified the MP Shareholders
----
from and against all claims, liabilities (whether civil or criminal),
losses, costs and expenses howsoever incurred or suffered by the MP
Shareholders which may at any time arise out of or in connection with the
activities or business carried out by Havas North America, Inc. at any date
prior to the Merger Date.
Miscellaneous
-------------
26.- Extension. The representations and warranties given by HA and the MP
---------
Shareholders in the present Contribution Agreement and its Annexes and Schedules
with respect to the Acquired Companies shall include each and every Acquired
Company as well as its Subsidiaries.
8
<PAGE>
List of Schedules
-----------------
Schedule A - Acquired Companies
Schedule B - Subsidiaries
Schedule C - Option rights
Schedule D - List of managers with special labour arrangements
Schedule E - Description of New MP
Schedule F - Description of the share capital New MP
9
<PAGE>
Schedule A
----------
Acquired Companies
------------------
HA Acquired Companies:
----------------------
1. Mediapolis Worldwide, S.A.
2. Mediapolis UK Limited
3. Mediamaatwerk B.V.
4. Mediapolis Mediapressing S.r.l.
5. SFM Media LLC or Havas North America, Inc., if approved by the Interim
Cornmittee
6. Mediapolis Espana, S.A. (to be purchased)
7. Mediapolis Prestacao de Servicios Publicitarios, Lda.
MP Shareholders Acquired Companies:
-----------------------------------
1. Media Planning, S.A.
10
<PAGE>
[CHART APPEARS HERE]
*COMPANIES OUT OF THE AGREEMENT
<PAGE>
STRUCTURE OF CONTRIBUTION TO NEW MP
[CHART APPEARS HERE]
12
<PAGE>
Structure of Contribution to New MP
MP Subsidiaries
[CHART APPEARS HERE]
Note: Percentages include shares held by directors for the purpose of their
appointment as required by law and for the by-laws.
<PAGE>
Schedule C
Option rights
COMPANY BENEFICIARIES NUMBER OF EXERCISE
SHARES DATE
-------------------------------------------------------------------------------
MEDIAPOLISSA M. GRANDJEAN 270 Between July 1/st/
and July 31, 1999
B. de LESTAPIS 161 "
E. Curtil 88 "
J.L. MESPOULET 124 "
C. DARDELET 88 "
MCBB P. DORE 750 Between December
24/th/, 2001 and
January 23/rd/, 2002
MEDIAMAATWERK H. de RIJK 910 December 2003
M. GOTTMER 910 December 2003
14
<PAGE>
Schedule D
List of HA managers with special labour arrangements
Position Name
CEO Media Operations Didler Colmet Daage
CEO Mediapolis WW Michel Grandjean
CFO Media Operations Richard Pace
CEO Medipolis France Betrand de Lestapis
CEO Concerto Laurent Le Merle
CEO MCBB Pierre Dore
CEO Mediapolis UK Bob Offen
CEO Mediapolis Spain Miguel Jorques
CEO SFM Bob Frank
Marc Mendoza
The special labour arrangements have been disclosed to the MP Shareholders prior
to the execution of this agreement.
15
<PAGE>
Schedule E
----------
Description of New MP
---------------------
Full name of the company: Inversiones y Servicios Publicitarios,
------------------------ S.A.
Governing law: Spain.
-------------
Type: Sociedad anonima. ("limited liability
---- company").
Office address: Madrid (Spain), calle Alberto Alcocer
-------------- n degree 10, Apt. 3 B.
Registration: Trade Register in Madrid, volume 8661
------------ general, 7529 of the third section of the
Company register, folio 95, page number
82483-2
Shares: 63,000,000 ptas., numbers 1 - 63,000 of
------ 1,000 ptas.
Company's Fiscal number: A-78809662
-----------------------
16
<PAGE>
Schedule F
----------
Description of the share capital New MP as per the date hereof
--------------------------------------------------------------
Presently held by Advertising Antwerpen:
62,998 shares in the share capital of MP, with a nominal value of one thousand
pesetas (1,000 ptas.) each, numbers 1 to 62,998 inclusive
2 shares are "autocartera" (held by New MP in its own share capital).
17
<PAGE>
Annex 3.5.2.
------------
Proportional Liability MP Shareholders
--------------------------------------
(subject to changes in shareholdings of New MP)
Deya 40%
Advertising Antwerpen 30.5%
Compania de Cartera e Inversiones 20%
Cantabro Catalana 5%
Martinez-Rovira 4.5%
("solidario" among themselves)
38
<PAGE>
ACCOUNTING PRINCIPLES
In accordance with clause 1.5.1.2. of the 29 November 1998 Merger Agreement, the
purpose of these instructions is to define the various sections of the profit &
loss media package whose format was used by the Parties in the Merger Agreement
(see Appendices C and D) and will be the basis for MP and HA Media Business
Valuation.
Words and expressions used in these instructions shall have the meanings
attributed thereto in the Merger Agreement and in the media package.
I. Definitions of accounting principles for Standard Valuation Method
A. Profit & Loss - EBITDA
Important preliminary notice:
The EBITDA defines as Earnings before Interest, income Tax,
Depreciation and Amortization. As the media package shows, it clearly
excludes as well the non-operating items.
A precise definition for each of these lines is developed below.
However, the International Accounting Standards (IAS) define the
Extraordinary Items as:
those income expenses arising from events or transactions that are
clearly distinct from the ordinary activities of the enterprise and
these are not expected to recur frequently or regularly.
Based on this definition, the Parties agree that the three critical
principles for a revenue or an expense to be included in Earnings are:
- clear connection with the media business,
- consistency with the accounting principles applied in the
statutory accounts of Media Planning and Havas Media,
respectively, except for Mexico in which case will apply
Spanish accounting principles.
By exception to this rule, material one-time non-recurring
items are to be excluded from EBITDA.
- comparability: certain operating incomes or expenses may be
structured so that they are excluded from the above definition
and create a lack for comparability.
The items that must be restated for comparability are the
following:
- rental building on one side, ownership of building on the
other. The companies which own the building, will include
in the EBITDA the
1
<PAGE>
estimate cost of its rental, based on a independent valuation.
The building value, which will be determined by an independent
expert, will be a positive adjustment in the computation of
the average cash position.
- depreciation of hardware and software on one side, invoicing
from a third party on the other.
- top management cars in rental expense on one side, and in
depreciation on the other.
Lack of comparability may also come from differences in
accounting principles. The main accounting principles to be
followed are set forth below. They may result in adjustments
to statutory accounts which will be reported to the parties
when identified by AA in the course of their work.
- The incomes and expenses of the companies not included in the
merger agreement will be restated in the EBITDA computation.
Another key accounting principle driving these instructions deals with
cut-off : revenues and expenses included in the EBITDA clearly must
relate to 1998.
The exchange rate to be used for the consolidation of all entities is
the average exchange rate of 1998, for both the EBITDA and the average
cash computation.
1. Billings
Billings are deemed to relate to net production, net of agency
discount, managed by the Company, whether this production be billed to
the client by the Company or whether it be billed directly by the
medium.
2. Gross Income:
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
2
<PAGE>
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
3
<PAGE>
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
4
<PAGE>
[*]
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
5
<PAGE>
[*]
3. Compensation:
Operating employees appearing on other company's payroll but fully
dedicated to the media business must be taken into account.
- the total salary (fixed and variable component) social charges
included will appear in the Salaries lines,
- the Profit Sharing shall include contractual and legal profit
sharing plan.
- the Others remuneration will comprise all the fringe benefits
(corporate car, health insurance policy, ...).
* Confidential treatment has been requested for certain portions of this
document pursuant to an application for confidential treatment sent to the
Securities and Exchange Commission. Such portions are omitted from this filing
and filed separately with the Securities and Exchange Commission.
6
<PAGE>
- Stock Option Plans and Long-Term Incentive Plans granted to
Media employees:
Expenses related to Stock Option Plan must be recorded in the
Profit&Loss account for the period provision.
Expenses related to Long-Term Incentive Plan and management bonuses
will also be recorded in the Profit&Loss account for the period
provision. That provision will be reduced by an extraordinary amount,
equivalent to 383.000 Sterling Pounds for HA UK, 1.330.000 French
Francs for HA France and 125.000.000 Pesetas for MP Spain. These
extraordinary amounts will be deducted from the EBITDA computation and
will only be reduced for MP Spain from the net average cash position,
because in the case of HA, those extraordinary amounts will be
directly paid by HA in 1999. The LTIP computation will be based on the
P/L restated to take into account the accounting principles defined in
this document.
Retirement Indemnities and Pension Plans
After retirement, salaried employees receive pensions through
retirement programs which comply with the laws and customs of the
various countries. The commitments must be provided for as reserves or
appropriate contributions paid to independent retirement funds and to
government agencies which take care of pensions.
The present value (past and future service cost) of the future
probable cash flows arising from retirement legal applicable and
expected cash flows will be deducted from the average net cash, and
will be a market value determined by an actuarial method.
This calculation will be prepared by Havas Advertising, and reviewed
by AA Paris' department specialized in actuarial computations or any
other independent expert agreed by the parties.
This calculation will be made available for a review by AA Madrid's
actuarial department if required by MP.
The expenses recorded in the 1998 statutory accounts in this respect
will be excluded for the purpose of the proforma accounts.
4. Other Expenses:
- Rent and Occupancy: expenses arising from the office premises. HA
group fully rents its buildings (rent recorded in other
expenses), whereas MP group operates its buildings partly through
direct ownership (amortization charge), and partly through
finance lease (restated in amortization charge and interest
expense). In order to have a consistent approach, a rental value
of MP group buildings will be determined based
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- on an expert appraisal report, and this rental expense will be
recorded, after cancellation of the amortization charge and
interest expense existing in the books.
- Research: relating computer costs (hardware, software,
maintenance), subscription to specific databases (coverage
measurement, ...) and other industry-specific expenses. In the
case of HA group, which currently records in Other Expense the
whole invoice from Havas Advertising computer subsidiary
(Informatique & Communication), the amortization part of this
cost (mentioned on each invoice) will be restated in the
Amorization line.
- Management fees paid to a group headquarters. Their nature, basis
for calculation and rate will have to be detailed separately. All
the fees paid in relation to recurrent services will be included
in the EBITDA computation.
- The write-off of 1998 receivables generated in 1998 will be
included in the EBITDA computation.
5. Non-Operating Expenses
Should include any other extraordinary or unusual items i.e. not relating
to the normal operation of the company and non-recurring items such as:
- the capital gains or losses on sales of assets,
- the severance payments for dismissed employees, only in case of
collective redundancy plan and redundancy of a member of the top
management. Ordinary payment for dismissed employees must be
included in the EBITDA computation.
- the write-off of receivables generated in previous years.
- any other movement in provision for risks or charges, except the
ones which have been referred to above.
6. Financial Income:
All the components of the accounting Financial Income section must be
included in this line, except the discounts obtained from media for early
payment (restated in EBITDA according to the Merger Agreement) net of the
discounts granted to clients for down payments and the late payment
interests paid by clients:
- financial income arising from the difference between the clients
and the suppliers payment dates (media float),
- dividends received,
- others (capital gains/losses on sales of securities, allowance
for unrealized losses on investments),
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- foreign exchange gains & losses corresponding to the difference
between the foreign exchange rates at invoice date and the rates
at payment date.
7. Other important items
The fees relating to this Merger must be detailed on a separate table
mentioning the nature, amount and consultant. These fees will be excluded
from EBITDA computation, and will be subject to a separate arrangement.
The remuneration scheme of each manager must be reported on a separate
memorandum showing the variance from 1997 for each of its components.
B. Net Cash
- The net cash comprises the following:
- cash at hand, cash in bank and marketable securities,
- bank debt of any kind and maturity date (including therefore bank
overdrafts),
- loans and borrowings with intercompany entities (not balances
related to trade operations), providing that these intercompany
amounts do not eliminate with another entity for which a media
package is prepared (e.g.: intercompany loan to Havas
Advertising),
- debt corresponding to finance lease restated,
- adjustments and restatements made to EBITDA, with impact on the
net cash,
- for trade receivables discounted at bank, the discount fee must
be restated from interest expense to other expenses, but the
average balance of those trade receivables discounted at bank
will not be considered in the net average cash position.
- All items deemed to be part of net cash in the definitions set
forth in the paragraphs above must be added to or deducted from
the average net cash.
- All assets whose rental and renting were restated in the EBITDA
computation for comparability reasons, will be adjusted in the
average net cash position.
- the average cash is calculated as follows:
- average of daily balances over the month,
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- then, average of monthly averages obtained, over the year.
- the net cash item balance to be used is the balance per bank (where
applicable, not per the accounting books), and taking into account the
actual day of record of each transaction for the bank (in France, a 1
to 3-day difference, called "Jours de valeurs" exists). In other
words, the daily positions to be used are those corresponding to the
basis for the calculation of interests.
As a matter of fact, a reconciliation between the average net cash and
the net interests expense (or revenue) over 1998 must be prepared in
the following format (to be more detailed if required):
average net cash obtained x average interest rate applicable
= net interest revenue (or expense) of 1998.
The companies will provide a full detailed computation of the average
net cash position together the corresponding balance sheet that
supports the figures, except for HA UK where an opening balance as of
01/01/99 will be provided.
Cash HA UK and HA Portugal will be determined in accordance with the
agreement between both parties as detailed in the Supplemental
Agreement.
An AA team will review and will submit an opinion about the Project
Cost value calculated for the valuation of the following companies:
MP Argentina, MP Colombia and HA Italy.
For the purposes of identifying the executed copies of this Agreement, the
Parties have requested Mr. Jean Reynaud or Mr. Richard Pace for HA and Mr.
Sanchez-Pedreno or Mrs. Jacqueline Bulder for the MP Shareholders and New
MP to initial the final versions of this Agreement as a consequence whereof
the Parties have only executed the execution page of this Agreement.
Barcelona March 22/nd/, 1999.
ADVERTISING ANTWERPEN B.V.
/s/ Leopoldo Rodes Castane
--------------------------
by authorised signatory
CALLE ARCOS, S.L.
/s/ Fernando Rodes Vila
-----------------------
by authorised signatory
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CANTABRO CATALANA DE INVERSIONES, S.A.
/s/ Francisco Gonzalez-Robatto Fernandez
----------------------------------------
by authorised signatory
COMPANIA DE CARTERA E INVERSIONES, S.A.
/s/ Manuel Esteve Claramun
--------------------------
by authorised signatory
DEYA, S.A.
/s/ Enrique Pinel Lopez
--------------------------
by authorised signatory
HAVAS ADVERTISING, S.A.
/s/ Alain de Pouzilhac
---------------------------
by authorised signatory
MARTINEZ-ROVIRA
/s/ Jose Martinez-Rovira Vidal
------------------------------
by authorised signatory
INVERMARO, S.L.
/s/ Jose Martinez-Rovira Vidal
------------------------------
by authorised signatory
