vladimir rybakin genreal director december 2002
DESCRIPTION
Prospects and objectives. Vladimir Rybakin Genreal Director December 2002. Moscow. Consolidated company of Urals region. Territory 1 949 ,5 thous. sq. km Population 15 44 3,9 thosand Natural resources 65% of Russian oil , 90% of gas , gold , diamonds - PowerPoint PPT PresentationTRANSCRIPT
1
Prospects and objectives
Vladimir RybakinGenreal Director
December 2002
2
Moscow
Consolidated company of Urals region
Territory 1 949,5 thous. sq. kmPopulation 15 443,9 thosandNatural resources 65% of Russian oil, 90% of gas, gold, diamonds
Industrial output in 2001 USD37,4 bln. (18,5% of industrial output of RF)
Average annual USD rate of exchange as of 2001 - RUR29,2
September 30, 2002 highlights the completion of merger of Urals region telecoms and
JSC UralsvyazinformPerm regionSverdlovsk regionChelyabinsk region Kurgan regionTyumen regionKhanty-Mansi Autonomous DistrictYamalo-Nenetski Autonomous District
As of September 1, 2002 • Lines – 3,167 mln• Subscribers – 2,931 mln• Emloyees – 35.7 thous.
Perm
Khanty-Mansyisk
Yamal
EkaterinburgTyumen
Chelyabinsk Kurgan
Kazakhstan
Kara Sea
3
• Joint Shareholders Meeting (December 17, 2002);
• Registration of changes to Articles of Association (January 2003);
• Disclosure of consolidated financial report under Russian accounting standards (April 2003);
• Auditor’s opinion under Russian and international accounting standards (June 2003).
Merger completion schedule
4
Shaping and meeting customers’ needs in telecommunication and information
services, integration into the Global Information Community of 21st century
Mission
5
Shareholder’s equityas of December 1, 2002
USD Rate of exchange – RUR 31,84
Book Capital USD 151 mln Number of shares 40 134 723 306 Share of preferred stock 19,5%Number of stockholders 23 379Market capitalization USD 460 mln
Svyazinvest41,38%
(51,42% of voting shares)
Individual shareholders49,95%
(38,91% of voting shares)
ADR4,03%
(3,91% of voting shares)
Federal Property Fund4,64%
(5,76% of voting shares)
6
2001 9M2002.
Population Businesses Population Businesses
International/Domestic Long-Distance telephony
92 % 89 % 92 % 89%
Local Telephony 86 % 57 % 86 % 57 %
Internet 57 % 56 % 57 % 57 %
Mobile Telephony GSM900/1800
30 % 30 % 57 % 57 %
Paging 29 % 31 % 31 % 30 %
Market position of consolidated Uralsvyazinformin Urals region
7
Installed capacity by regional branchesas of 01.01.2002
655
871
716
273
326
97
173
585
803
649
242
293
85
160
0
100
200
300
400
500
600
700
800
900
1000
Perm Ekaterinburg Chelyabinsk Tyumen Khanty-mansyisk Salekhard Kurgan
Th
ou
sa
nd
lin
es
Installed capacity In use
Overall capacity:• Installed – 3 112 thous. lines• Equipped – 2 817 thous. lines
8
Digitalizationas of December 1, 2002
54
34,6
43,7
20,2
52,6
93,9
70
60
18
4,6
18,5
68
95,06
0
10
20
30
40
50
60
70
80
90
100
Perm Ekaterinburg Chelyabinsk Kurgan Tyumen Khanty-Mansyisk Salekhard
%
Switching systems Intrazone lines
9
Fixed-line penetration(lines per 100 inhabitants)
26,7
19,8621,6
26,12
19,5
34,31
17,8
9,2 8,6
11,9
6,38,6
12,410,1
0
5
10
15
20
25
30
35
40
Perm Ekaterinburg Chelyabinsk Tyumen Khanty-Mansyisk
Salekhard Kurgan
URBAN RURAL
Total:
• Urban – 21,66
• Rural – 10,24
Waiting list (as of december 1, 2002) – 581 645
95 387 209 722 129 108 58 059 49 288 7 399 32 682
10
Overall CAPEX
2584
5509
74417702
4876
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2001 2002E 2003E 2004E 2005E
RU
R m
ln
11
Investment Sources
47%
36%
42%
35%
51%
53%
3%
15%
15%
53%
33%
49%
7%
11%
1%
13%
36%
2001
2002E
2003E
2004E
2005E
Depreciation Profit Credits Bonds Shares
12
Investment Priorities
• Capacity extension and network upgrade:– digital switches;– optical access netwoks;– intrazone digital transport networks;– wireless loop;
• Mobile telephony of GSM-900/1800 standard;• Packet switching network:
– multiservice network build-up;– Internet;
• Intelligent network;• Cable TV.
13
Capital investment schedule
Capacity extension 2001
Introduced 2002E 2003E 2004E 2005E Introduced in 2002 – 2005
Fixed-line network, thous. lines 3 112 330 360 380 360 1 430
Mobile network, thous. lines 261 172 270 280 276 998
Intrazone/trunk fiber optical links, thous. km
1,4 1,0 1,8 2,5 2,1 7,4
Intrazone/trunk radio microwave links, thous. km
2,0 0,5 1,3 1,8 1,3 4,9
14
Domestic and international long-distance traffic
1,3
1,6
1,9
2,3
2,7
0
1
2
3
2001 2002E 2003E 2004E 2005E
bln
. m
inu
tes
15
Financial results
14,6
18,9
27,0
30,8
10,8 10,9
13,1
16,8
19,1
3,6 3,7
5,6
10,211,7
14,4
0
5
10
15
20
25
30
35
2002 plan 2002E 2003E 2004E 2005E 2006E
RU
R b
ln
Revenues
Expenses
Operating profit
16
31%
31%
32%
33%
35% 30%
35%
41%
50%
53%
24%
23%
16%
9%
6%
6%
5%
4%
3%
1%
5%
4%
7%
7%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2001
2002E
2003E
2004E
2005E
Urban Telephone Network МТС Mobile Telephony New Services (DSL Network, IN) Other (Data transmission)
Revenue structure
17
Expenditure structure
42%
45%
35%
40%
44%
30%
30%
24%
28%
30%
16%
11%
13%
17%
14%
12%
12%
13%
28%
16%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1999
2000
2001
2002E
2003E
Operating expenses Wages Depreciation Taxes & deductions
18
EBITDA and Net Profit
0,61,1
1,6
5,5
6,8
2,53,2
5,8
11,3
14,1
0
2
4
6
8
10
12
14
16
2002 plan 2002E 2003E 2004E 2005E
RU
R b
ln
Net profit EBITDA
19
Debt
192201
166
124
5341 37
28 24
214
0
50
100
150
200
250
01.01.2002 01.01.03E 01.01.04E 01.01.05E 01.01.06E
US
D, m
ln
Liability as of beginning of the year in foreign currency
USD exchange rate as of 01.01.02 - RUR30,14 ; 01.01.03 - RUR32,86; 01.01.04 - RUR33,54; 01.01.05 - RUR37,06; 01.01.06 - RUR37,34
20
Number of lines per 1 employee
74,283,6
93,0
149,6
83,8
125,0
0
20
40
60
80
100
120
140
160
2001 2002E 2003E 2004E 2005E
Lin
es
Plan Estimated
21
Digitalization
49%
62%66%
70%
19%
90%
57% 55%
37%
27%
0%
20%
40%
60%
80%
100%
2001 2002E 2003E 2004E 2005E
Switching Systems Intrazone Lines
22
Wire-line penetration(telephones per 100 inhabitants)
18,219,3
20,9
23,2
25,3
0
5
10
15
20
25
30
2001 2002E 2003E 2004E 2005E
• Waiting list as of January 1, 2002 – 581 645• Number of locations not covered with wire-line services – 2 916 • Including those with population under 50 – 1 760
23
TBB introduction plan for 2002 - 2003
• Sverdlovsk region
• Chelyabinsk region
• Kurgan region
• Khanty-Mansyisky autonomous district
• Yamalo-Nenetski autonomous district
Time-based billing
TBB is introduced in:
• Perm region - 87,5% of installed capacity
• Tyumen region - 75,0% of installed capacity
24
Multi-Service Network General Structure
Optical AccessNetwork
Content-Providers
PSTN
InternetManagementSub-Systems
ServiceSelectionGateway
IP Backbone
Corportion AOffice 1 Corportion B
Office 2
Corportion BOffice 2
Corportion AOffice 1
Corporate VirtualPrivate Networks
High- speedInternetAccess
Small office
InternetAccess Virtual
PrivateNetwork
OLT
Exchange
25
2,4 - 64 kbpsnx64 kbps
Optical access network
ОПТС
10/100 ВТ
ADSL
COAX
POTS /ISDN
OLT
ONU 6ONU 4
ONU 3
ONU 2
ONU 5
ONU 1
PC
TV
ISDN
IPnetwok
VODServer
Cable TV
Cable TV/Internet
УПАТС
Е1
VPN
STB
Video ondemand
ADSL
Optical access network build-up
26
max 1000N
ОК
С №
7
V5.2, EDSS1
EDSS1, CAS
ОПТС
SSP
ST
M-1
/4
Local RTN
Local RTN
LocalRTN
City boundaries
Intrazone Network
Local ATS
ONU
ONU ONU
ONU
Accessnetwork
BS
Local hub configuration
27
Digital transport network development
Salekhard
Perm
Khanty-Mansyisk
Chelyabinsk
Kurgan
Tyumen
Ekaterinburg
Existing lines
Planned lines
28
Thousand subscribers as
of 01.12.02
«Uralsvyazinform» 131,4
«South-Urals Cellular Phone» 128,5
«Eramk RMS» 71,5
TOTAL 331,4
Екатеринбург
Perm
Khanty-Mansyisk
Chelyabinsk
Kurgan
Salekhard
Ekaterinburg
Tyumen
GSM-900/1800 NetworkAs of 01.12.2002
29
GSM900/1800 Network Development
261
433
703
983
1259
2022
2325
31
0
200
400
600
800
1000
1200
1400
2001 2002E 2003E 2004E 2005E
0
5
10
15
20
25
30
35
installed capacity ARPU
30
Subscribers
«Uralsvyazinform» Perm Division 14 354
«UralWestCom» 20 889
«Kurgan Cellular Phone» 400
Total 35 643
Екатеринбург
Tyumen
Perm
Ekaterinburg
Khanty-Mansyisk
ChelyabinskKurgan
Salekhard
NMT – 450 Networkas of 01.12.2002
Prospects – transition to digital standard
31
Intelligent Network setup in Urals Region
Max. Virtual network capacity is 12 mln. numbers
PSTN PSTN PSTN PSTN PSTNPSTNEkaterinburg Tumen Chelyabinsk Kurgan Yamal Khanty-Mansiysk
Perm SMP
SCPSSPToll Exchange
INAP - RSSP
Toll Exch.
SSP
Toll Exch.
SSP
Toll Exch.
SSP
Toll
Exch.
SSP
Toll
Exch.
SSP
Toll Exch.
Uralsvyazinform
Services
Freephone; Premium access; Account card access; Pre-paid card access; Televote; Pre-paid access to Internet; Pre-paid access to mobile network; Personal number service; Virtual private networks.
INAP - R INAP - R INAP - R INAP - R INAP - R
32
Market capitalization of Uralsvyazinform
0%
50%
100%
150%
200%
250%
300%
350%
07.0
1.20
01
22.0
1.20
01
06.0
2.20
01
21.0
2.20
01
08.0
3.20
01
23.0
3.20
01
07.0
4.20
01
22.0
4.20
01
07.0
5.20
01
22.0
5.20
01
06.0
6.20
01
21.0
6.20
01
06.0
7.20
01
21.0
7.20
01
05.0
8.20
01
20.0
8.20
01
04.0
9.20
01
19.0
9.20
01
04.1
0.20
01
19.1
0.20
01
03.1
1.20
01
18.1
1.20
01
03.1
2.20
01
18.1
2.20
01
02.0
1.20
02
17.0
1.20
02
01.0
2.20
02
16.0
2.20
02
03.0
3.20
02
18.0
3.20
02
02.0
4.20
02
17.0
4.20
02
02.0
5.20
02
17.0
5.20
02
01.0
6.20
02
16.0
6.20
02
01.0
7.20
02
16.0
7.20
02
31.0
7.20
02
15.0
8.20
02
30.0
8.20
02
14.0
9.20
02
29.0
9.20
02
14.1
0.20
02
29.1
0.20
02
13.1
1.20
02
Market Cap RTS Index АКМ Telecoms Index
MAP affirms reorganization
Shares of merging companies are swapped
33
• IAS accounting since 1995
• Annual international audit since 1995
• Level 1 ADR Program
• Fitch credit rating at “B”
• Standard & Poor’s credit rating at “B-”
• Corporate governance score of Standard & Poor’s at «6,0»Prospects
• Additional share issuance
• Level 3 ADR program
• Shares are traded at:
- RTS, MICEX
- Berlin, Frankfurt Stock Exchange
- USA Over-the-counter market
Investor Relations
34
2003 Objectives
• Relationship Agreement between regional authorities and Uralsvyazinform
• Streamlinig the budgeting process and investment planning;
• Implementation of ISO 9000 quality standards;• Realization of “Electronic Russia” fedreal project• Introduction of new services;• Implementation of time-bases billing;• Optimization of management structure and personnel
quantity
35
Uralsvyazinform has a solid potential to accomplish the national objective to
develop up-to-date telecommunications infrastructure within Urals federal district
36
Contacts:
ph.: +7 3422 341 200
fax: +7 3422 343 336
e-mail: [email protected]
www.uralsviazinform.ru
www.uralsviazinform.com
Ticker symbols:
Russian Trading System - URSI
ADR - UVYZY