Mobile TeleSystems  |
|
| Compilation Date: | 16 May 08 |
Company Overview
 General Info | |
| Full Company Name | JSC "Mobile TeleSystems" |
| Industrial Group | Telecommunications |
| Number of Employees | 20,468 |
| Registration Date | 01 Mar 00 |
| Registered Address | 4, Marksistskaya St., Moscow, 109147 |
| Main Office | 4, Marksistskaya St., Moscow, 109147 |
| Telephone / Fax | (495) 911-6553, 911-6565, 911-6552 / (495) 911-6588, 911-6599 |
| e-mail | info@mts.ru ir@mts.ru |
| Internet Home Page | www.mts.ru |
| Registrar | JSC "NIKoil Registrar Company" |
| Auditor | Deloitte & Touche |
| Financial Adviser | n. a. |
| Legal Adviser | n. a. |
|
| Corporate Management |
| Chairman of the Board | Alexey Buyanov | | President | Leonid Melamed |
| Price Highlights | |
| Price per Common Share, USD | 12.00506 |
| YTD Price Change, % | -21.44 |
| P/E Ratio | 14.7054 |
| Market Capitalization, USD | 23,837,063,048 |
| Common Shares in Free Float, % | 47.20 |
| Operations Summary | |
Mobile TeleSystems (MTS) is Russia’s leading provider of GSM-900/1800-based mobile cellular communications services. MTS’s predecessor, Closed JSC “Mobile TeleSystems,” was formed in 1993 by four Russian telecommunications organizations, including the Moscow City Telephone Network and two German companies, Siemens AG and DeTeMobil GmbH (an affiliate of Deutsche Telekom AG). MTS was created on March 1, 2000, through the merger of Closed JSC “Mobile TeleSystems” and Closed JSC “RTC,” which held mobile GSM cellular licenses in six regional license areas. As of July 31, 2005, MTS’s total number of subscribers was 46.37 million, including UMC of Ukraine (10.14 million subscribers) and MTS Belarus (1.69 million subscribers). As of December 31, 2004, MTS had licenses to operate in 87 regions of Russia, with a population of approximately 142.6 million people, or approximately 98% of the country's total population. MTS also holds licenses for the entire territory of Ukraine, with a population of approximately 47.5 million people, and for the entire territory of Uzbekistan, with a population of approximately 26.5 million people. MTS operates over 300 specialist sales centers in Russia, Ukraine, and Belarus. The company has also signed agreements with selected dealers, enabling its subscribers to sign up to MTS’s services in over 27,000 outlets. In November 2004, shareholders approved a reorganization of MTS OJSC in the form of a merger with Telecom XXI, Kuban-GSM, UDN-900, Dontelecom, MTS Barnaul, MTS-NN, and Telecom-900. In 2005 and 2006, capital expenditures were USD2.181 billion and USD1.722 billion, respectively. The MTS’s investment program for 2007 through 2011, as approved by the Board of Directors, is for RUR38 billion. |
Shares Information
| Charter Capital Structure |
| Type of Share | Shares Outstanding | Nominal Value |
|---|
| Common Share | 1,993,326,138 | 0.10 RUR |
| Major Shareholders |
| Name | % of Voting Stock | % of Charter Capital |
|---|
| ING Bank | 40.57 | 40.57 | | Sistema Joint Stock Financial Corporation | 31.92 | 31.92 | | Deutsche Bank | 9.77 | 9.77 | | Closed JSC "Invest-Svyaz" | 8.04 | 8.04 |
| Equity Positions in Other Companies |
| Name | % of Charter Capital |
|---|
| MTS Republic Komi Ltd. | 100.00 | | Barash Communications Technologies Inc. | 100.00 | | Mobile TeleSystems Finance S.A. | 100.00 | | Mobile TeleSystems-T Ltd. | 100.00 | | Mobile TeleSystems - Kostroma Ltd. | 100.00 | | Vostok Mobile B. V. | 100.00 | | Uzdunrobita Ltd. | 100.00 | | Closed JSC "Primtelephone" | 100.00 | | JSC "Mobile Communications Systems" | 100.00 | | JSC "Novitel Firm" | 100.00 | | Mobile TeleSystems Bermuda Ltd. | 100.00 | | Mobile TeleSystems B.V. | 100.00 | | Bastion Ltd. | 100.00 | | Vostok Mobile South B.V. | 100.00 | | Mobile Telesystems Ltd. | 100.00 | | Mobile Telesystems- Capital Ltd. | 100.00 | | Closed JSC "Volgograd Mobile" | 100.00 | | TC-Service Ltd. | 100.00 | | Closed JSC "Bashcell" | 100.00 | | Close JSC "Russian Telephone Company" | 99.00 | | Close JSC "Ukrainian Mobile Svyaz" | 99.00 | | International Cell Holding Ltd. | 80.00 | | Dagtelecom Ltd. | 74.99 | | Closed JSC "Uraltel-plus" | 50.00 | | TC Riteil Ltd. | 25.00 | | Closed JSC "Sibintertelecom" | 6.47 |
| Dividends History |
| Period | Payment
per Share,
USD | Number
of Shares | Ex-Date | Payment
Date | Payout
Ratio, % | Dividend
Yield, % |
|---|
| 1998 / com | 0.006548 | 1,634,527,440 | n. a. | 31 Dec 99 | 32.517215 | n. a. | | 1999 / com | 0.007055 | 1,634,527,440 | n. a. | 31 Dec 00 | 11.139454 | n. a. | | 2000 / com | 0.007963 | 1,993,326,138 | 23 May 01 | 31 Dec 01 | 17.627017 | 0.006648 | | 2001 / com | n. p. | 1,993,326,138 | - | - | - | - | | 2002 / com | 0.058157 | 1,993,326,138 | 04 May 03 | 31 Dec 03 | 41.831919 | 0.031337 | | 2003 / com | 0.115438 | 1,993,326,138 | 07 May 04 | 31 Dec 04 | 44.487439 | 0.029784 | | 2004 / com | 0.199765 | 1,993,326,138 | 29 Apr 05 | 31 Dec 05 | 40.308359 | 0.028759 | | 2005 / com | 0.288116 | 1,993,326,138 | 05 May 06 | 31 Dec 06 | 50.986027 | 0.042873 | | 2006 / com | 0.394053 | 1,993,326,138 | 11 May 07 | 31 Dec 07 | 63.052997 | 0.045592 |
Stock Market
| Instruments on Exchanges |
| Type of Instrument | Ticker | ISIN | Market |
|---|
| Mobile TeleSystems | MTSI | RU0007775219 | MICEX | | Mobile TeleSystems | MTSS | RU0007775219 | RTS Classic | | Mobile TeleSystems | MTSSG | RU0007775219 | RTS T+0 | | Mobile TeleSystems ADR | MKY | US6074091090 | Berlin Stock Ex | | Mobile TeleSystems ADR | MKY | US6074091090 | Frankfurt SE | | Mobile TeleSystems ADR | MBLD | US6074091090 | London SE | | Mobile TeleSystems ADR | MBT | US6074091090 | NYSE | | Mobile TeleSystems ADR | MKY | US6074091090 | XETRA | | Mobile TeleSystems GDR | MBL | US6074093070 | London SE | | Mobile TeleSystems GDR | MT144A | US6074092080 | US OTC |
| Price Chart |
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|
| Participation in DR Programs |
| Level | Effective
Date | Underlying
Share Ratio | CUSIP | Depositary Bank |
|---|
| Level 3 ADR | 06 Jul 00 | 1: 5 | 607409109 | J. P. Morgan | | GDR Reg S | 22 Apr 03 | 1: 5 | 607409307 | Bank of New York | | GDR 144 A | 22 Apr 03 | 1: 5 | 607409208 | Bank of New York |
| Weightings in Indices |
| Name | Weight | Inclusion Date | Notes |
|---|
| MT-RusIndex | 1.87 | 01 Jun 04 | | | RusIndex 100 | 1.73 | 01 Jun 04 | | | RusIndex Services | 9.75 | 01 Jun 04 | | | RusIndex Telecommunications | 27.10 | 01 Jun 04 | |
Fixed Income Instruments
| Issue Parameters |
Issue #/
Tranche # | Registration
Number | Registration
Date | Period | Par
Value,
RUR | Issue
Volume,
RUR thnd | Number
of
Coupons | Coupon
Period | Guarantee |
|---|
| No bonds issued. |
| Coupons |
Issue #/
Tranche # | Coupon # | Start
Coupon Period | End
Coupon Period | Coupon, % |
|---|
| No bonds issued. |
| Primary Market |
Issue #/
Tranche # | Start
Placement
Date | End
Placement
Date | Placement
Price, % | Volume
Placed,
RUR thnd | Maturity
date | Offer
Date | Offer
price, % | Status | Issue
Placement
Registration
Date |
|---|
| No bonds issued. |
Key Financial Characteristics
| Balance Sheet |
| | 31 Dec 05 | 31 Dec 06 | 31 Dec 07 | 31 Dec 05 | 31 Dec 06 | 31 Dec 07 |
|---|
| | RUR mn | RUR mn | RUR mn | USD mn | USD mn | USD mn |
| RUR/USD Exchange rate | 28.79 | 26.35 | 24.54 |
| ASSETS, of which | 217,269.8 | 225,927.4 | 269,120.66 | 7,545.78 | 8,573.95 | 10,966.67 |
|---|
| Fixed Assets and Other Non-current Assets, of which | 180,090.04 | 182,999.37 | 221,349.94 | 6,254.53 | 6,944.83 | 9,020.01 |
|---|
| | Fixed Assets | 129,072.24 | 139,596.02 | 162,142.7 | 4,482.68 | 5,297.67 | 6,607.32 |
| | Intangible Assets | 41,444.34 | 37,071.83 | 51,422.53 | 1,439.36 | 1,406.88 | 2,095.47 |
| | Other Assets | 9,573.45 | 6,331.52 | 7,784.71 | 332.49 | 240.28 | 317.23 |
| Current Assets, of which | 37,179.76 | 42,928.04 | 47,770.72 | 1,291.25 | 1,629.12 | 1,946.66 |
|---|
| | Inventories | 4,510.8 | 5,171.67 | 3,458.45 | 156.66 | 196.27 | 140.93 |
| | Accounts Receivable | 17,708.09 | 17,036.28 | 17,721.72 | 615 | 646.53 | 722.16 |
| | Cash | 2,254.07 | 5,796.81 | 15,570.5 | 78.28 | 219.99 | 634.5 |
| | Other Current Assets | 12,706.8 | 14,923.27 | 11,020.05 | 441.31 | 566.34 | 449.07 |
| OWNER'S EQUITY, of which | 95,733.75 | 104,521.4 | 134,060.88 | 3,324.83 | 3,966.59 | 5,462.98 |
|---|
| | Charter Capital | 1,455.74 | 1,332.23 | 1,240.69 | 50.56 | 50.56 | 50.56 |
| | Reserves | 18,299.34 | 15,590.57 | 22,954.8 | 635.54 | 591.66 | 935.41 |
| | Retained Earnings | 75,978.66 | 87,598.6 | 109,865.4 | 2,638.74 | 3,324.37 | 4,477.02 |
| LIABILITIES, of which | 121,536.05 | 121,406.01 | 135,059.78 | 4,220.95 | 4,607.36 | 5,503.69 |
|---|
| | Long-Term Debt | 59,860.5 | 77,062.95 | 65,926.6 | 2,078.96 | 2,924.54 | 2,686.51 |
| | Short-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 |
| | Accounts Payable | 11,648.49 | 8,161.05 | 11,942.72 | 404.55 | 309.71 | 486.67 |
| | Other Liabilities | 50,027.07 | 36,182 | 57,190.45 | 1,737.44 | 1,373.11 | 2,330.51 |
| Financial data standard | GAAP | GAAP | GAAP | GAAP | GAAP | GAAP |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited |
| Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| P&L Account |
| | 31 Dec 05 | 31 Dec 06 | 31 Dec 07 | 31 Dec 05 | 31 Dec 06 | 31 Dec 07 |
|---|
| | RUR mn | RUR mn | RUR mn | USD mn | USD mn | USD mn |
| Average RUR/USD Exchange rate | 28.30 | 27.16 | 25.58 |
| Sales | 141,758.71 | 173,336.81 | 210,966.79 | 5,011.02 | 6,384.25 | 8,252.38 |
| Production Costs | 95,589.53 | 115,404.44 | 141,077.76 | 3,378.99 | 4,250.52 | 5,518.53 |
| Operating Profit | 46,169.18 | 57,932.37 | 69,889.03 | 1,632.03 | 2,133.74 | 2,733.85 |
| Other Income | -1,928.69 | -8,087.34 | 2,434.8 | -68.18 | -297.87 | 95.24 |
| Income Before Taxes | 44,240.5 | 49,845.03 | 72,323.83 | 1,563.85 | 1,835.87 | 2,829.09 |
| Net Income | 31,865.33 | 33,822.63 | 52,956.68 | 1,126.41 | 1,245.74 | 2,071.5 |
| Financial data standard | GAAP | GAAP | GAAP | GAAP | GAAP | GAAP |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited |
| Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
| Key Ratios |
| | 31 Dec 05 | 31 Dec 06 | 31 Dec 07 |
|---|
| Company Valuation Coefficients | |
|---|
| P/BV | 4.03 | 4.34 | 5.58 |
| P/S | 2.67 | 2.70 | 3.69 |
| P/E | 11.89 | 13.83 | 14.71 |
| Company Efficiency Coefficients | |
|---|
| Sales/Employee, USD thnd | 480.95 | 327.05 | 403.18 |
| Net Profit Margin, % | 22.48 | 19.51 | 25.10 |
| ROA, % | 17.16 | 15.46 | 21.20 |
| ROE, % | 38.52 | 34.31 | 44.96 |
| Turnover Coefficients | |
|---|
| Receivables Turnover | 9.39 | 10.12 | 12.06 |
| Assets Turnover | 0.76 | 0.79 | 0.84 |
| Inventory Turnover | 40.71 | 36.18 | 48.95 |
| Liabilities Turnover | 1.39 | 1.43 | 1.61 |
| Capital Structure Coefficients | |
|---|
| Equity Ratio | 0.44 | 0.46 | 0.50 |
| Debt Ratio | 0.56 | 0.54 | 0.50 |
| Equity/Debt | 0.79 | 0.86 | 0.99 |
| Current Liquidity | 0.67 | 1.05 | 0.75 |
| Quick Liquidity | 0.59 | 0.92 | 0.69 |
Production Overview
| Production |
| Product | Measure | 2006 | 2007 | 1Q08 | Units |
|---|
| Subscribers | 1,000,000 | 72.86 | 81.97 | 84.94 | subscriber |
| Capacity |
| Product | Measure | Capacity | Units |
|---|
| Information is not available yet. |
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