SITRONICS  Corporate Presentation October, 2009 Some of the information in this presentation may contain projections or ot...
Table of Contents SITRONICS at a glance 3 About company 4 Growth drivers 9 SITRONICS Telecommunications Solutions 15 SITRO...
SITRONICS at a Glance - countries  which SITRONICS provides with its solutions <ul><li>One of the largest multinational hi...
ABOUT COMPANY
Business Model  <ul><li>Leading Russian semiconductor manufacturer based in Zelenograd </li></ul><ul><li>Key products: mic...
Sales Structure By Geography, H1 2009 By Vertical Segment, H1 2009 By Customer, H1 2009 <ul><li>Focus on fast growing vert...
Broad Customer Base <ul><li>More than  US$ 500 million of new contracts secured since the beginning of 2009 </li></ul><ul>...
Interesting Facts <ul><li>More than 9 million people daily use RFID tickets made by SITRONICS </li></ul><ul><li>More than ...
GROWTH DRIVERS
Key Growth Drivers Joint Venture with RUSNANO (90 nanometre microchip production) Partnership with Russian Government  Exp...
Partnership with Russian Government  Education - MIOS  Housing/Utilities - UTILIS  Telematica – NIKA Healthcare – Angiosca...
Joint Venture with RUSNANO  “ The launch of the 90 nanometre microchip production project is of considerable strategic imp...
Geographical and Vertical Expansion  <ul><li>Head office in New Delhi </li></ul><ul><ul><ul><li>Focus on Telecommunication...
Product Expansion  <ul><li>The joint venture with Paravan and  acquisition a controlling stake in  Network Systems  will e...
SITRONICS TELECOMMUNICATION SOLUTIONS
SITRONICS Telecommunication Solutions Syria Syria Egypt U.A.E. Malaysia Kuwait,Bahrain Pakistan Customer Base Key Products...
SITRONICS Telecommunication Solutions  Revenue ($ millions) OIBDA  ($ millions) Revenue & OIBDA Contribution (2Q 2009) <ul...
Telecommunication Solutions Market OSS/BSS: EE&MEA market, $ mln Wireless Transmission: EE&MEA market. Eur mln WiMAX: EE&M...
SITRONICS INFORMATION TECHNOLOGIES
SITRONICS Information Technologies Customer Base Key Products Правительство Украины <ul><li>Next generation Mobile Data Ce...
SITRONICS Information Technologies  Revenues ($ millions) OIBDA ($ millions) Revenue & OIBDA Contribution (2Q 2009) <ul><l...
Information Technologies Market Russian IT  Market Size ($ millions) Ukrainian IT  Market Size ($ millions) Source: IDC <u...
SITRONICS MICROELECTRONICS
SITRONICS Microelectronics Customer Base Key Products <ul><li>Joint venture with Giesecke & Devrient to produce and person...
SITRONICS Microelectronics  Revenues ($ millions) OIBDA ($ millions) Revenue & OIBDA Contribution (2Q 2009) <ul><li>Revenu...
Microelectronics Market Russian RFID Market ($ millions) Russian Bank Card Market  ($millions) Russian SIM Card Market ($ ...
FINANCIAL PERFORMANCE
Financial Highlights H1 2009 Revenue ($mln) & Gross Margin OIBDA ($ mln) Telecommunication   solutions <ul><li>Revenue   o...
Debt Management <ul><li>We have  successfully repaid, refinanced or extended  approximately  $300 mln  of our short term d...
Successful Cost  Optimization Program SG&A cost reduction CAPEX reduction  <ul><li>We have substantially  reduced our cash...
SUMMARY <ul><li>Long term scale relationships with public & private sector clients in growing industries </li></ul><ul><li...
 
Contact us: Investor Relations +7 (495)  225-00-30 [email_address] www.sitronics.com
APPENDIX
Comprehensive product expertise for vertical market segments <ul><li>OSS/BSS </li></ul><ul><li>Wireline & Wireless network...
Shareholder Structure <ul><li>Share capital : 9 547 087 190  rubles  (9 547 087 190  of ordinary shares  with par value of...
Group History 2002 2003 2004 2005 2006 2007 2008 Establishment of Concern Scientific Center (CSC) Acquisition of Strom Tel...
Management Sergey Aslanian President and Chief Executive Officer  Since October 2007 – President of JSC SITRONICS.  2006-2...
P&L statement Group statement of operations ,  ‘000 USD  Six months ended 30 Jun, 2009 30 Jun, 2008 % change Revenues 404 ...
Cash Flow Group cash flow statement ,  ‘000 USD Six months ended 30 Jun, 2009 30 Jun, 2008 % change Net cash provided by o...
Balance Sheet Group balance sheet ,  ‘000 USD 30 Jun, 2009 31 Dec, 2008 % change Total assets 1 844 788  2 034 982  -9,3% ...
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Презентация для инвесторов, Октябрь 2009

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  • Презентация для инвесторов, Октябрь 2009

    1. 1. SITRONICS Corporate Presentation October, 2009 Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of SITRONICS. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia and other CIS countries, rapid technological and market change in our industries, as well as many other risks specifically related to SITRONICS and its operations.
    2. 2. Table of Contents SITRONICS at a glance 3 About company 4 Growth drivers 9 SITRONICS Telecommunications Solutions 15 SITRONICS Information Technologies 19 SITRONICS Microelectronics 23 Financial performance 27 Summary 31 Contacts 33 Appendix 34
    3. 3. SITRONICS at a Glance - countries which SITRONICS provides with its solutions <ul><li>One of the largest multinational hi-tech companies in Eastern Europe and CIS </li></ul><ul><li>The major partner of Russian Government to develop microelectronics industry </li></ul><ul><li>Included in the list of Russia’s strategically important companies </li></ul><ul><li>Headquarters in Moscow, Russia </li></ul><ul><li>R&D centers in Russia, Ukraine, Czech Republic, Greece </li></ul><ul><li>Manufacturing facilities in Russia, Czech Republic, Greece, Romania </li></ul><ul><li>9500 emploees </li></ul><ul><li>6m 2009 Sales in excess of $404 mln </li></ul>
    4. 4. ABOUT COMPANY
    5. 5. Business Model <ul><li>Leading Russian semiconductor manufacturer based in Zelenograd </li></ul><ul><li>Key products: microchips, chip modules, smart cards, RFID cards and tags, IC design </li></ul><ul><li>The reliable partner of major global telecom providers. Modern R&D infrastructure in the Czech Republic and Greece </li></ul><ul><li>Key products: next generation networks (NGN), OSS/BSS, IPTV, wireless broadband access solutions and data transmission systems </li></ul><ul><li>The leading provider of IT services and one of the largest system integrator in Russia and CIS </li></ul><ul><li>Key services and products: ERP&CRM systems implementation, IT-outsourcing, IT systems integration, Mobile Data Centers, Telematic solutions </li></ul>Sales Structure, H1 2009 <ul><li>Three business directions provide complex projects to B2B and B2G </li></ul>
    6. 6. Sales Structure By Geography, H1 2009 By Vertical Segment, H1 2009 By Customer, H1 2009 <ul><li>Focus on fast growing vertical market segments: Telecom, Financial Services, Industrial and Public </li></ul><ul><li>Wide geographic diversity of sales </li></ul><ul><li>Strong holdings with sister companies in the Sistema Group provide SITRONICS with greater confidence in the current market environment </li></ul>
    7. 7. Broad Customer Base <ul><li>More than US$ 500 million of new contracts secured since the beginning of 2009 </li></ul><ul><li>End-to-end solutions to over 3,500 clients in 62 countries around the world </li></ul>
    8. 8. Interesting Facts <ul><li>More than 9 million people daily use RFID tickets made by SITRONICS </li></ul><ul><li>More than 3,500 companies around the world develop and manage their activities using SITRONICS solutions and technologies </li></ul><ul><li>SITRONICS solutions support more than 115 million of mobile and fixed line telecom subscribers around the world </li></ul><ul><li>More than 500 schools across Russia use SITRONICS technologies to drive improvements in education </li></ul>
    9. 9. GROWTH DRIVERS
    10. 10. Key Growth Drivers Joint Venture with RUSNANO (90 nanometre microchip production) Partnership with Russian Government Expansion into Oil & gas vertical Banking cards market Monitoring & safety market Expansion into fast growing markets
    11. 11. Partnership with Russian Government Education - MIOS Housing/Utilities - UTILIS Telematica – NIKA Healthcare – Angioscan Multiservice Informational-Communicational Educational Environment is an innovative solution for the education system based on interactive technologies. It embraces all basic educational processes and is installed in various configurations in over 500 schools and 10 higher educational institutions of Russia. End-to-end solution for utility providers consisting of UTILIS Metering Suite, UTILIS Billing Suite and UTILIS CRM Suite, which together provide full support to utility providers business processes. Each suite can operate and be sold and integrated separately within an existing IS infrastructure. GLONASS/GPS-based solution providing supervision and positioning of transport and other objects. bio and medical technology device for measurement of human blood vessel status. <ul><li>High technologies are a high priority for Russian Government </li></ul><ul><li>SITRONICS has own products to participate in Russian nationwide projects: </li></ul><ul><li>Domestic market requires local/domestic product </li></ul><ul><li>Financial support from Russian Government (Vnesheconombank) </li></ul><ul><li>Fundamentally more defensive profile as provider of long term state-sponsored infrastructural projects </li></ul>
    12. 12. Joint Venture with RUSNANO “ The launch of the 90 nanometre microchip production project is of considerable strategic importance for Russia. Nanoelectronic production in Russia plays an invaluable role in the development of the Russian high-tech sector and the country’s overall technological security.” Anatoly Chubais, Chief Executive Officer of RUSNANO <ul><li>October 2009 - I nvestment agreement with RUSNANO to construct 90 nanometre microchip production facilities </li></ul><ul><li>The most advanced technology in Russia </li></ul><ul><li>Key products to be produced at the facility will target a number of developing industrial sectors including </li></ul><ul><li>Digital TV </li></ul><ul><li>GLONASS/ GPS navigation systems </li></ul><ul><li>industrial automation systems </li></ul><ul><li>automative electronics </li></ul><ul><li>high security smart cards </li></ul><ul><li>Revenue of Microelectronics business division is expected to rise 3x </li></ul><ul><li>SITRONICS to become the centre of Russian industrial ecosystem in microelectronics sector </li></ul>
    13. 13. Geographical and Vertical Expansion <ul><li>Head office in New Delhi </li></ul><ul><ul><ul><li>Focus on Telecommunications sector, Transport industry, Educational system, State organizations & Financial institutions </li></ul></ul></ul><ul><li>Contracts for Point-to-Point Microwave equipment services, radio relay equipment, CRM and Billing Systems for Sistema Shyam TeleServices (MTS India) </li></ul><ul><li>Head office in Ufa </li></ul><ul><ul><ul><li>End-to end solutions to Power generation and distribution companies , Transport industry, Educational system, State organizations </li></ul></ul></ul><ul><ul><ul><li>3-year agreement to provide IT support for government organizations </li></ul></ul></ul>India Bashkortostan
    14. 14. Product Expansion <ul><li>The joint venture with Paravan and acquisition a controlling stake in Network Systems will enable SITRONICS to enter a promising new market segment at low cost and to enhance product portfolio. </li></ul><ul><li>Paravan - engineering company specializing in the creation of engineering systems, industrial automation systems and security solutions. </li></ul><ul><li>Network Systems - developer of information security and encryption-based data protection programmes and software. </li></ul>Monitoring & safety Banking cards SITRONICS won tenders to provide banking cards for Sberbank of Russia and VTB24 <ul><li>“ We already have a successful track record of implementing projects with SITRONICS, and we are happy to continue our mutually beneficial cooperation.” Viktor Orlovsky, Senior Vice-President of Sberbank of Russia </li></ul><ul><li>“ S olutions offered by SITRONICS meet our quality requirements. I am sure that joint cooperation will be successful and mutually beneficial.” Head of plastic card Department of VTB24 Elena Guseva </li></ul>
    15. 15. SITRONICS TELECOMMUNICATION SOLUTIONS
    16. 16. SITRONICS Telecommunication Solutions Syria Syria Egypt U.A.E. Malaysia Kuwait,Bahrain Pakistan Customer Base Key Products <ul><li>Family of Digital Radio Relay System products designed to offer cost-effective solutions for long/short haul links in wireless & fixed line telephony networks for public & private organizations </li></ul><ul><li>Customers: MTS India (Sistema Shyam Teleservices), MTS Russia, OTE </li></ul><ul><li>A vendor-independent, modular solution suitable for residential, commercial and industrial customers and covers the full range of functional areas demanded by evolving municipal & provincial providers of electricity, gas, water, heat and other utilities. </li></ul><ul><li>Customers: Stadwerke Feldkirch (Austria), pilot projects in Thailand </li></ul><ul><li>Fully convergent, scalable and flexible next generation charging and billing solution designed to cover OSS/BSS operations of market leading telecom providers, challengers and greenfield start-ups </li></ul><ul><li>Customers: MTS, Vodafone CZ, MGTS </li></ul>Russia Asia Western and Eastern Europe FORIS Charging & Billing INTRALINK UTILIS <ul><li>Partnerships with Cisco Systems, Oracle, Alcatel, Motorola, Ericsson, Agilent & HP  </li></ul>
    17. 17. SITRONICS Telecommunication Solutions Revenue ($ millions) OIBDA ($ millions) Revenue & OIBDA Contribution (2Q 2009) <ul><li>Revenues down 14% y-o-y in Q2 &16% in H1 at constant exchange rates </li></ul><ul><li>Q2 2009: 57% of Group revenues, H1 2009: 61% </li></ul><ul><li>Total volume of contracts secured since the beginning of 2009: $380 million </li></ul><ul><li>April 2009 – won 2 contracts to deliver, deploy and support a CRM and Billing System for Sistema Shyam TeleServices </li></ul><ul><li>April 2009 – won contract to supply radio relay equipment to Sistema Shyam TeleServices </li></ul><ul><li>June 2009 - framework agreement signed with the Bashenergo power generation and distribution company to provide UTILIS billing system software </li></ul><ul><li>June 2009 - new contract secured to provide Point-to-Point Microwave equipment services for Sistema Shyam TeleServices </li></ul>
    18. 18. Telecommunication Solutions Market OSS/BSS: EE&MEA market, $ mln Wireless Transmission: EE&MEA market. Eur mln WiMAX: EE&MEA market. Eur mln Source: Gartner Source: Heavy Reading 2008, EJL Research Data 2008 & Intracom Telecom data Source: Maravedis WiMAX, LTE and Broadband Wireless Market Trends 2008-2013 <ul><li>The target markets for SITRONICS are Russia and other CIS, Central and Eastern Europe, India , the Middle East, Africa , North America , Canada </li></ul><ul><li>The growth in targeted markets is expected to remain high </li></ul><ul><li>Growth points : VAS- solutions , broadband link and equipment , alternative wireless technologies ( WiMAX ) , integrated NGN , solutions for 3 G, convergent billing </li></ul>
    19. 19. SITRONICS INFORMATION TECHNOLOGIES
    20. 20. SITRONICS Information Technologies Customer Base Key Products Правительство Украины <ul><li>Next generation Mobile Data Center (MDC) - a highly customised ISO container-based turn-key solution delivering a unique combination of technical characteristics </li></ul><ul><li>Customers: MTS Russia, Bashtek </li></ul><ul><li>GLONASS/GPS-based fleet management solution to monitor and control transport and other objects </li></ul><ul><li>Сustomers: Moscow Underground, UniMilk, Tatarstan Transport Ministry </li></ul><ul><li>Implementation and integration of business applications from major vendors. A strong experience and great team. </li></ul><ul><li>Customers: MTS , Comstar-UTS, Detskiy Mir, Eurochem </li></ul>Russia Ukraine SITRONICS Daterium SITRONICS NIKA ERP & CRM systems implementation <ul><li>Partners: IBM, Cisco, Sun, SAS, HP, R&M </li></ul>
    21. 21. SITRONICS Information Technologies Revenues ($ millions) OIBDA ($ millions) Revenue & OIBDA Contribution (2Q 2009) <ul><li>Revenues up 64% y-o-y in Q2 and up 6% in H1 at constant exchange rates </li></ul><ul><li>Q2 2009: 19% of Group revenues, H1 2009: 16% </li></ul><ul><li>Total volume of contracts secured since the beginning of 2009: $97 million </li></ul><ul><li>March 2009 - completed the modernization of the IT infrastructure of 39 regional outlets of the First Ukrainian International Bank </li></ul><ul><li>March 2009 - completed the creation of a new unified information infrastructure for the Ukrainian State Statistics organization </li></ul><ul><li>May 2009 – won contract to provide support to Mobile TeleSystems’ data processing centre in Siberia </li></ul><ul><li>June 2009 – signed agreement to supply IT infrastructure to the Government of Bashkortostan </li></ul>
    22. 22. Information Technologies Market Russian IT Market Size ($ millions) Ukrainian IT Market Size ($ millions) Source: IDC <ul><li>The target markets for SITRONICS are Russia, Ukraine, other CIS, Central & Eastern Europe </li></ul><ul><li>Key markets are expected to start to recover in 2010 </li></ul><ul><li>Focus on projects with fast and measurable returns </li></ul><ul><li>Growth points by segments: government orders , banking industry , oil&gas complex, utilities </li></ul><ul><li>Key technologies : IT outsourcing , business analysis , CRM, x aa S </li></ul>
    23. 23. SITRONICS MICROELECTRONICS
    24. 24. SITRONICS Microelectronics Customer Base Key Products <ul><li>Joint venture with Giesecke & Devrient to produce and personalize smart cards launched in 2006 - 30% market share in Russia & CIS </li></ul><ul><li>Supplying units to Russia, Ukraine, Belarus, Uzbekistan, Kazakhstan & India </li></ul><ul><li>Key customers: MTS, Sistema Shyam Teleservices, Megafon, Skylink </li></ul><ul><li>Eurocard/Mastercard/Visa certification in 2008 </li></ul><ul><li>Key customers: Sberbank of Russia, VTB 24 </li></ul><ul><li>SITRONICS is the sole R&D contractor of the Moscow Government </li></ul><ul><li>Supplying RFID tickets for the Moscow Metro, Russian Railways, and a number of transportation companies in large Russian cities with populations exceeding 1 million people, including Kazan and Nizhny Novgorod. </li></ul>Russia and Asia SIM & RUIM telecom cards Banking cards Social cards <ul><li>Partners: STMicroelectronics, Infineon, Giesecke & Devrient, UPM </li></ul><ul><li>RUSNANO has approved investment of RUR 6.5 billion into SITRONICS’ project to build 90 nanometre microchip production facilities on existing “Micron” site </li></ul>Transport cards
    25. 25. SITRONICS Microelectronics Revenues ($ millions) OIBDA ($ millions) Revenue & OIBDA Contribution (2Q 2009) <ul><li>Revenues down 15% y/y in Q2 & down 27% in H1 at constant exchange rates </li></ul><ul><li>Q2 2009: 23% of Group revenues, H1 2009: 21% </li></ul><ul><li>Total volume of contracts secured since the beginning of 2009: $ 23 million </li></ul><ul><li>June 2009 – won contract to deliver RUIM cards to Altel in Kazakhstan </li></ul><ul><li>July 2009 - won contract to provide VISA Classic and VISA Platinum banking cards for VTB24 </li></ul><ul><li>July 2009 – won contract to deliver 10 million SIM cards to Mobile TeleSystems in Russia & 5 million cards in Ukraine </li></ul><ul><li>September 2009 - won tenders by Sberbank of Russia to supply chip banking cards during 3 years </li></ul>
    26. 26. Microelectronics Market Russian RFID Market ($ millions) Russian Bank Card Market ($millions) Russian SIM Card Market ($ millions) Source: PH Electronics, SITRONICS <ul><li>The target markets for SITRONICS are Russia and CIS , India & SEA, Africa </li></ul><ul><li>Banking and SIM cards market has a strong growth potential in 2010-2011 </li></ul><ul><li>Key drivers of growth: shift from cards with magnetic strip to smart-cards with chip; provision of additional VAS by telecom operators using SIM cards; start of the frozen 3G projects </li></ul>
    27. 27. FINANCIAL PERFORMANCE
    28. 28. Financial Highlights H1 2009 Revenue ($mln) & Gross Margin OIBDA ($ mln) Telecommunication solutions <ul><li>Revenue of $ 404 . 0 million </li></ul><ul><li>Gross margin of 27 . 8 % </li></ul><ul><li>OIBDA profit of $ 14 . 1 mln </li></ul><ul><li>Cash flow from operations of $ 39 . 2 million </li></ul>
    29. 29. Debt Management <ul><li>We have successfully repaid, refinanced or extended approximately $300 mln of our short term debt originally falling due in 2009 since the beginning of the year </li></ul><ul><li>Total debt of $743 mln (non-GAAP) , weighted average interest rate of 9% as of September 30 </li></ul><ul><li>3 billion rubles of outstanding bonds have been included in the Bank of Russia’s Lombard List </li></ul>
    30. 30. Successful Cost Optimization Program SG&A cost reduction CAPEX reduction <ul><li>We have substantially reduced our cash operating expenses , and Selling, General and Administrative expenses (SG&A) in particular. </li></ul><ul><li>Staff optimization program resulted in headcount reduction by 20% over the last twelve months. </li></ul><ul><li>We have decreased capital expenditure levels by postponing less urgent projects to 2010 and 2011. </li></ul>
    31. 31. SUMMARY <ul><li>Long term scale relationships with public & private sector clients in growing industries </li></ul><ul><li>Expansion into new market segments </li></ul><ul><li>Strengthening positions in quickly developing geographical markets </li></ul><ul><li>Cost cutting measures improved effectiveness </li></ul><ul><li>Successful refinancing of debt </li></ul>
    32. 33. Contact us: Investor Relations +7 (495) 225-00-30 [email_address] www.sitronics.com
    33. 34. APPENDIX
    34. 35. Comprehensive product expertise for vertical market segments <ul><li>OSS/BSS </li></ul><ul><li>Wireline & Wireless networks </li></ul><ul><li>FS CDN (IPTV) </li></ul><ul><li>UTILIS </li></ul><ul><li>Wireless </li></ul>Telecom Industries Financial Services Public Sector <ul><li>SIM & RUIM cards </li></ul><ul><li>ERP, CRM </li></ul><ul><li>IT-outsourcing </li></ul><ul><li>Infrastructure solutions </li></ul><ul><li>NIKA </li></ul><ul><li>Mobile data centers </li></ul><ul><li>RFID solutions </li></ul><ul><li>Integrated circuits </li></ul><ul><li>RFID solutions </li></ul><ul><li>Smart cards </li></ul><ul><li>RFID solutions </li></ul><ul><li>Smart cards </li></ul><ul><li>ERP, CRM </li></ul><ul><li>IT-outsourcing </li></ul><ul><li>Infrastructure solutions </li></ul><ul><li>NIKA </li></ul><ul><li>Mobile data centers </li></ul><ul><li>ERP, CRM </li></ul><ul><li>IT-outsourcing </li></ul><ul><li>Infrastructure solutions </li></ul><ul><li>NIKA </li></ul><ul><li>Mobile data centers </li></ul><ul><li>ERP, CRM </li></ul><ul><li>IT-outsourcing </li></ul><ul><li>Infrastructure solutions </li></ul><ul><li>NIKA </li></ul><ul><li>Mobile data centers </li></ul><ul><li>UTILIS </li></ul><ul><li>Wireline & Wireless networks for state needs </li></ul>B2B B2G Telecom Solutions Microelectronic Solutions Information Technologies
    35. 36. Shareholder Structure <ul><li>Share capital : 9 547 087 190 rubles (9 547 087 190 of ordinary shares with par value of RUR 1.00) </li></ul><ul><li>GDRs are listed on London Stock Exchange ( IPO – Feb 2007), </li></ul><ul><li>1 GDR = 50 ordinary shares </li></ul><ul><li>Ordinary shares are listed on Russian Trading System (RTS) and Moscow Stock Exchange (MSE) </li></ul>
    36. 37. Group History 2002 2003 2004 2005 2006 2007 2008 Establishment of Concern Scientific Center (CSC) Acquisition of Strom Telecom Launch of Sitronics brand in consumer electronics market Restructuring of CSC Acquisition of 51% of Kvazar-Micro 2009 Consolidatoin of Strom Telecom (100%) Consolidation of Kvant (78%) CSC renamed SITRONICS Deployment of FORIS billing solution for MTS Acquisition of Intracom Telecom (51%) Launch of RFID card production SITRONICS IPO Launch of IC production using 0.18 mkm technology JV w. Geisecke & Devrient to produce smart-cards (65%) Consolidation of 100% of Kvazar-Micro Establishment of SITRONICS INDIA subsidiary JV with RUSNANO to build microchip production facilities <ul><li>1964 – Micron factory opened in Zelenograd </li></ul><ul><li>1977 – Intracom Telecom established in Greece </li></ul><ul><li>1990 – Kvazar-Micro established in Ukraine </li></ul><ul><li>1993 – Strom Telecom established in Czech Republic </li></ul>
    37. 38. Management Sergey Aslanian President and Chief Executive Officer Since October 2007 – President of JSC SITRONICS. 2006-2007 - Vice-President of JSC Mobile TeleSystems, Engineering and Information Technologies. 2003 -2006 - Vice-President of JSC Mobile TeleSystems, Information Technologies. 2001-2003 - a Deputy Head of IT unit at JSC TNK-BP Management. 1997-2001 - a manger of consulting department at PricewaterhouseCoopers. Marina Zabolotneva Chief Financial Officer Since June 2008 - Vice-President of JSC SITRONICS, Finances and Investments. 2006 - 2008 – Vice-President of All-Russian JSC Inturist, Finances and Investments. 2003 - 2006 – Director of Treasury of JSC MTS. 2001- 2003 - the treasurer of JSC Coca Cola HBC Eurasia. Pavel Pavlovsky Head of SITRONICS Telecommunications Solutions Since February 2008 – Head of SITRONICS Telecommunications Solutions. 2007–Vice President, Director of MTS Ukraine, MTS. 2005–2007 – Vice President, Director of Foreign Subsidiary Companies of MTS. 2003-2005 – Director of Corporate Development at MTS. 2000–2003 – independent consultant, Senior consultant at Mercer Management Consulting (London). Gennady Krasnikov Head of SITRONICS Microelectronic Solutions Since September 2005 - Head of SITRONICS Microelectronics Solutions. 2003-2005 - a Chief Designer-Scientific Advisor of JSC SITRONICS. 1981- 2003 he has risen from an engineer of the Institute of Scientific Research in Molecular Electronics to General Director of Micron Plant. Vladimir Yasinsky Head of SITRONICS Information Technologies Since February 2008 – Head of SITRONICS Information Technologies. 2006-2007 – First Vice-President of JSC SITRONICS, member of Administration of Kvazar-Micro Company. 1994-2006 – held a number of positions at Kvazar-Micro, including Vice-President for finance from 2004-2006. Alexandros Stergios Manos Director of INTRACOM TELECOM Since January 2006 - Director of INTRACOM TELECOM. 2005-2006 - Executive Director for Telecommunications systems. 2004-2005 - Director for Corporate Marketing and international division for operators service. 2002-2004 General Director of CONKLIN CORPORATION, subsidiary of INTRACOM, located in Atlanta, USA.
    38. 39. P&L statement Group statement of operations , ‘000 USD Six months ended 30 Jun, 2009 30 Jun, 2008 % change Revenues 404 043 625 629 -35,4% COGS (291 653) (471 800) -38,2% Operating expenses (123 673) (157 238) -21,3% <ul><ul><li>- R&D </li></ul></ul>(11 243) (21 144) -46,8% <ul><ul><li>- SG&A </li></ul></ul>(88 030) (108 128) -18,6% <ul><ul><li>- Depreciation and amortization </li></ul></ul>(25 401) (33 765) -24,8% Operating (loss) / income (11 283) (3 409) 231,0% OIBDA 14 118 30 356 -53,5% Loss before income tax (41 300) (14 231) 190,2% (Loss)/ Income from discontinued operations (26 154) 14 255 -283,5% Net loss (68 488) (13 699) 399,9% Net loss / (income) attributable to the noncontrolling interest 1 579 (6 472) -124,4% NET LOSS ATTRIBUTABLE TO SITRONICS (66 909) (20 171) 231,7%
    39. 40. Cash Flow Group cash flow statement , ‘000 USD Six months ended 30 Jun, 2009 30 Jun, 2008 % change Net cash provided by operating activities 39 158 103 - <ul><ul><li>Net cash used in investing activities </li></ul></ul>(69 230) (226 291) - <ul><ul><li>Net cash provided by financing activities </li></ul></ul>79 073 136 683 -42,2% <ul><ul><li>Effects of exchange rate changes on cash and cash equivalents </li></ul></ul>253 7 727 -96,7% <ul><ul><li>Increase / (Decrease) in cash and cash equivalents </li></ul></ul>49 254 (81 778) - <ul><ul><li>Cash and cash equivalents at the beginning of the period </li></ul></ul>125 695 185 486 -32,2% <ul><ul><li>Cash and cash equivalents at the end of the period </li></ul></ul>174 949 103 708 68,7%
    40. 41. Balance Sheet Group balance sheet , ‘000 USD 30 Jun, 2009 31 Dec, 2008 % change Total assets 1 844 788 2 034 982 -9,3% <ul><ul><li>- Cash and cash equivalents </li></ul></ul>174 949 116 720 49,9% <ul><ul><li>- Accounts receivable, net </li></ul></ul>450 414 566 326 -20,5% <ul><ul><li>- Inventories, net </li></ul></ul>176 351 181 763 -3,0% Total debt 809 945 726 209 11.5 % <ul><ul><li>- Short-term debt </li></ul></ul>612 139 526 493 16,3 % <ul><ul><li>- Long-term debt </li></ul></ul>197 806 199 716 - 1.0 % Net debt 634 996 609 489 4.2 % Shareholders' equity 572 423 654 877 -12,6%

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