Highlights – First Half of 2004 <ul><li>On 1 April 2004 a new management structure of Lietuvos Telekomas was implemented. </li></ul><ul><li>On 1 April 2004 UAB Comliet, a subsidiary of Lietuvos Telekomas, transferred its telecommunication service implementation and maintenance activities to Lietuvos Telekomas. 844 employees were transferred from Comliet to Lietuvos Telekomas. </li></ul><ul><li>During January – June 2004 the total number of Group’s employees was reduced by 379 down to 3,207. </li></ul><ul><li>UAB Comliet considers to sell off of its construction business as well as its shareholding in Latvian company Datu Tikli SIA. </li></ul><ul><li>UAB Verslo Portalas, joint venture of Lietuvos Telekomas and Verslo Zinios, will terminate its activities and will be liquidated. </li></ul><ul><li>UAB Lintkom and UAB Lintel were reorganised by merger of UAB Lintkom into UAB Lintel. Lintkom terminated its activities and Lintel took over the management of Lietuvos Telekomas’ shares (treasury stocks) from Lintkom. </li></ul>
AB Lietuvos Telekomas’ Shareholders <ul><li>Amber Teleholding A/S is a wholly-owned subsidiary of TeliaSonera AB. </li></ul><ul><li>During January – June 2004 State of Lithuania reduced its shareholding from 8.12% to 7.93% by giving shares of the Company to the citizens of Lithuania as a compensation for realty redeemable by the State of Lithuania. </li></ul><ul><li>As on 30 June 2004 112,803,890 shares of the Company (13.84% of the total share capital) were represented by 11,280,389 GDRs of AB Lietuvos Telekomas. </li></ul><ul><li>UAB Lintel (before reorganisation - UAB Lintkom), a member of Lietuvos Telekomas’ Group, holds treasury stocks. </li></ul>(as of 30 June 2004)
Structure of Lietuvos Telekomas’ Group AB Lietuvos Telekomas (fixed-line telephony, data communication, fixed-line network, wholesales and Internet-related services) UAB Voicecom (VoIP services) UAB Lintel (directory inquiry, telemarketing and contact center services, treasury stocks) UAB Lietuvos Telekomo Verslo Sprendimai (‘business solutions’ to largest customers) UAB Comliet (telecommunications and low voltage network’s construction services) UAB TietoEnator Consulting (IT-related consultancy services) UAB Verslo Portalas ** (B2B portal) UAB Baltijos Informaciniu Duomenu Valdymo Centras (IT infrastructure services) 100 % Baltic Data Center SIA 55% Telegrupp AS 75 % Datu Tikli SIA* 95 % Comliet-Kaliningrad 100 % UAB Sonex Komunikacijos VsI Lietuvos Telekomo Sporto Klubas (sports club) 100% 100% 100% 100% 60% 60% 30% 26% * company under sales process; ** company under liquidation 5 %
Organisational Structure of AB Lietuvos Telekomas General Manager Marketing Division Technology Division Finance Division Corporate and Legal Affairs Unit Personnel Unit Risk Management Unit Internal Audit unit Press Officer Public Relations and Communication Unit Planning and Analysis Unit Administration Unit Wholesales Department Marketing Department Sales Department IT and Process Department Service Installation and Maintenance Department Network Department System Development Unit Economics Department Accounting Department Treasury and Investor Relations Unit
Fixed-line Telephony Services N umber of main lines in service <ul><li>During January – June 2004, 30.4 thousand new lines were connected and 35.2 thousand lines were disconnected. Net decrease of number of main lines in services was 4.8 thousand. </li></ul><ul><li>Compared with H1 2003, local calls’ traffic in H1 2004 was up by 12%, long-distance up by 18%, fixed to mobile up by 34%, international up by 9%. </li></ul><ul><li>The Company improved its Local and Country payment plans by providing subscribers with additional 30 hours of free-of-charge calls during off-peak time. </li></ul><ul><li>Tariffs for long-distance calls during peak time reduced by 35% to 0.26 litas and for subscribers to the new payment plan Miestai (Cities) even down to 0.12 litas. </li></ul>
Internet-related Services Number of ADSL access points <ul><li>The most popular ADSL internet access payment plan, Takas iD2, offers 60 hours of data download at 256 kbps/upload at 128 kbps or download/upload of 1 ,200 MB per month for just 39 litas. </li></ul><ul><li>New dial-up Internet access payment plan, Internet, offers 30 hours per month for just 10 litas. </li></ul><ul><li>At the end of June total number of dial-up Internet access service users was 40 thousand (33 thousand a year ago) </li></ul>
Key Financial Figures – First Half of 200 4 Group, according to IFRS, unaudited <ul><li>Revenue amounted to 365 million litas , a decrease by 10.6%, year–on-year . </li></ul><ul><li>Operating expenses , including additional employee redundancy costs of 9 million litas , were cut down by 8. 5 % to 192 million litas , y-o-y . </li></ul><ul><li>EBITDA amounted to 172 million litas and EBITDA margin was 47.2%. </li></ul><ul><li>Profit before profit tax was 17 million litas and net profit was 13 million litas. </li></ul><ul><li>During six months net cash flow from operating activities was 123 million litas. </li></ul><ul><li>Due to repayment of loans and payout of dividends cash and cash equivalents decreased by 53 million litas. </li></ul><ul><li>Investments amounted to 22 million litas. </li></ul>
Profit (Loss) Statement (in million of l itas) Group, according to IFRS, unaudited 1 € = 3.4528 litas, 1 US dollar = 2.8375 litas (30 June 2004)
Reclassified Breakdown of Revenue (in million of l itas) Group, according to IFRS, unaudited <ul><li>In the fourth quarter of 2003, Lietuvos Telekomas has adjusted its revenue grouping following the latest standard used by TeliaSonera AB. Major changes in the grouping of revenue were made in the first quarter of 2003, when services of the Group were divided into the following three main groups: Fixed-line Telephony Services (including the former Interconnection Services Group), Internet and Data Communication Services (including the former Leased Lines group ) and Other Services. </li></ul>
Revenue, EBITDA and EBITDA margin (in million of l itas) Group, according to IFRS, unaudited Revenue by quarters EBITDA & EBITDA margin <ul><li>In first half of 2004, the Company had additional employee redundancy costs of 9 million litas. </li></ul>
Cash Flow and Net Debt (in million of l itas) Group, according to IFRS, unaudited Cash Flow Net Debt/Equity Net Debt <ul><li>In March 2004, the Company redeemed its 150 million litas Eurobond issue. </li></ul><ul><li>During the second quarter the Company paid out dividends for the year 2003, in total 46.6 million litas. </li></ul>
Investments and Network Digitalisation Network Digitalisation, in total Group’s Investments in million of l itas <ul><li>On 30 June 2004, total number of ISDN channels was 42 thousand, total number of ADSL access points was 34 thousand and number of MPLS VPN access points was 848. </li></ul><ul><li>The Company plans not to exceed 90 million litas in investments in 2004. </li></ul>
Employees Number of Lietuvos Telekomas’ Group employees at the end of the period Main lines per employee in the core business at the end of the period
More information about Lietuvos Telekomas’ Group is available on the web page: www.telecom.lt
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