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North-West Telecom  |
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| Compilation Date: | 16 May 08 |
Company Overview
General Info | |
| Full Company Name | JSC "North-West Telecom" |
| Industrial Group | Telecommunications |
| Number of Employees | 24,846 |
| Registration Date | 06 May 93 |
| Registered Address | 14/26 Gorokhovaya St. (26, Bolshaya Morskaya St.), St. Petersburg, 191186 |
| Main Office | 14/26 Gorokhovaya St. (26, Bolshaya Morskaya St.), St. Petersburg, 191186 |
| Telephone / Fax | (812) 315-4706, 312-5289, 719-9233 / (812) 710-6277, 719-9247, 719-9494 |
| e-mail | office@nwtelecom.ru D.Pirs@nwtelecom.ru |
| Internet Home Page | www.nwtelecom.ru |
| Registrar | JSC "United Registration Company" |
| Auditor | Ernst &Young |
| Financial Adviser | Closed JSC "Russian Industrial Bank", Closed JSC "AVK Investment Company" |
| Legal Adviser | n. a. |
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Corporate Management |
| Deputy Director, Economics and Finance | Venera Khusnutdinova | | Chairman of the Board | Alexandr Kiselev | | General Director | Vladimir Akulich |
Price Highlights | |
| Price per Common Share, USD | 1.261975 |
| YTD Price Change, % | -26.81 |
| P/E Ratio | 21.0598 |
| Market Capitalization, USD | 1,104,942,249 |
| Common Shares in Free Float, % | 49.16 |
Operations Summary | |
North-West Telecom (formerly, St. Petersburg Telephone Network) is a provider of local public telephone services within the northwestern region of Russia, an area of 1.8 million sq. kilometers with a population of 13.7 million. On October 31, 2002, eight telecommunications operators of the northwestern region of Russia were merged with North-West Telecom within the framework of Svyazinvest’s restructuring program. On October 1, 2004, North-West Telecom completed the merger of another two regional fixed-line operators, Lensvyaz and Svyaz of the Komi Republic. After the merger, all regional operators became branches of North-West Telecom. The reorganized company has an installed capacity of about 4.8 million lines and provides traditional telecom services, including local, intra-zonal, access to LD and ILD services of LD operators; local television and radio broadcasting; and, Internet and ISDN. At the end of 2005, the digitalization of the company’s network was 54%. North-West Telecom plans to reach a level of digitalization of the local network to 90% and to increase its installed capacity by 13% to 5.3 million lines by 2010. In 2007, the company invested USD396 million. In 2008 North-West Telecom plans to invest about USD630 million into infrastructure and Internet communications development. The company plans to invest USD417million in 2009. The company has ratings by Standard & Poor's (BB-) and Fitch Rating (BB-). The Corporate Governance Score of North-West Telecom by Standard & Poor's is 5.4. |
Shares Information
Charter Capital Structure |
| Type of Share | Shares Outstanding | Nominal Value |
| Common Share | 881,045,433 | 1.00 RUR | | Preferred Share | 250,369,337 | 1.00 RUR |
Major Shareholders |
| Name | % of Voting Stock | % of Charter Capital |
| Telecommunication Investment Joint-Stock Company (Svyazinvest) | 50.76 | 39.53 | | Closed JSC "Depository-Clearing Company" | 10.91 | 14.79 | | Brunswick Warburg Nominees | 12.46 | 11.72 | | The National Depository Center | 10.29 | 10.59 | | ING Bank | 9.28 | 10.55 |
Equity Positions in Other Companies |
| Name | % of Charter Capital |
| Novgorod Datacom Ltd. | 100.00 | | NWT-Finance Ltd. | 100.00 | | Close JSC "Peterburg Tranzit Telecom" | 100.00 | | Closed JSC "AMT" | 100.00 | | Parma-Inform Ltd. | 100.00 | | RPK-Svyazist Ltd. | 100.00 | | Close JSC "Sankt-Peterburg Information Company" | 60.00 | | JSC "Kolatelecom" | 50.00 | | Closed JSC "WestBalt Telecom" | 28.00 | | Closed JSC "Rostelegraph" | 11.76 | | JSC "Svyazintek" | 11.00 |
Dividends History |
| Period | Payment per Share, USD | Number of Shares | Ex-Date | Payment Date | Payout Ratio, % | Dividend Yield, % |
| 1993 / com | 0.014476 | 12,742,960 | 18 Mar 94 | 31 Dec 94 | n. a. | n. a. | | 1993 / pref | 0.04748 | 2,806,200 | 18 Mar 94 | 31 Dec 94 | n. a. | n. a. | | 1994 / com | n. p. | 12,742,960 | - | - | - | - | | 1994 / pref | 0.165012 | 2,806,200 | 14 Mar 95 | 31 Dec 95 | n. a. | n. a. | | 1995 / com | n. p. | 12,742,960 | - | - | - | - | | 1995 / pref | 0.698439 | 2,806,200 | 15 Mar 96 | 31 Dec 96 | n. a. | n. a. | | 1996 / com | 0.002609 | 382,288,800 | 18 Mar 97 | 31 Dec 97 | 2.583023 | 0.071154 | | 1996 / pref | 0.028523 | 84,186,000 | 18 Mar 97 | 31 Dec 97 | 6.218635 | 0.036105 | | 1997 / com | 0.000001 | 382,288,800 | 27 Mar 98 | 31 Dec 98 | 0.001169 | 0.000021 | | 1997 / pref | 0.000008 | 84,186,000 | 27 Mar 98 | 31 Dec 98 | 0.002059 | 0.000009 | | 1998 / com | n. p. | 382,288,800 | - | - | - | - | | 1998 / pref | 0.00037 | 84,186,000 | 26 Apr 99 | 31 Dec 99 | 0.00 | 0.002849 | | 1999 / com | 0.000426 | 382,288,800 | 19 Apr 00 | 31 Dec 00 | 4.372538 | 0.038739 | | 1999 / pref | 0.002805 | 84,186,000 | 19 Apr 00 | 31 Dec 00 | 6.339102 | 0.035067 | | 2000 / com | 0.003948 | 473,056,966 | 30 Mar 01 | 31 Dec 01 | 13.932121 | 0.320133 | | 2000 / pref | 0.008527 | 114,440,851 | 30 Mar 01 | 31 Dec 01 | 7.278989 | 0.051679 | | 2001 / com | 0.002412 | 473,056,966 | 07 May 02 | 31 Dec 02 | 9.141191 | 0.172304 | | 2001 / pref | 0.007769 | 114,440,851 | 07 May 02 | 31 Dec 02 | 7.122482 | 0.040891 | | 2002 / com | 0.002307 | 735,917,222 | 02 May 03 | 31 Dec 04 | 11.027945 | 0.179782 | | 2002 / pref | 0.004789 | 202,022,788 | 02 May 03 | 31 Dec 03 | 6.284372 | 0.025207 | | 2003 / com | 0.002992 | 735,917,222 | 13 May 04 | 31 Dec 04 | 17.093769 | 0.227252 | | 2003 / pref | 0.01287 | 202,022,788 | 13 May 04 | 31 Dec 04 | 20.183633 | 0.042196 | | 2004 / com | 0.008653 | 881,045,433 | 09 May 05 | 15 Dec 05 | 31.126565 | 0.493501 | | 2004 / pref | 0.016363 | 250,369,337 | 09 May 05 | 15 Dec 05 | 16.72766 | 0.041743 | | 2005 / com | 0.010089 | 881,045,433 | 12 May 06 | 15 Dec 06 | 17.825974 | 0.336285 | | 2005 / pref | 0.024822 | 250,369,337 | 12 May 06 | 15 Dec 06 | 12.463437 | 0.032236 | | 2006 / com | 0.014616 | 881,045,433 | 03 May 07 | 15 Dec 07 | 27.530976 | 0.009265 | | 2006 / pref | 0.035127 | 250,369,337 | 03 May 07 | 15 Dec 07 | 18.802843 | 0.029321 |
Stock Market
Instruments on Exchanges |
| Type of Instrument | Ticker | ISIN | Market |
| North-West Telecom | SPTL | RU0009046585 | MICEX | | North-West Telecom | SPTL | RU0009046585 | RTS Classic | | North-West Telecom | SPTLG | RU0009046585 | RTS T+0 | | North-West Telecom ADR | SQ4 | US6633161079 | Berlin Stock Ex | | North-West Telecom ADR | SQ4 | US6633161079 | Frankfurt SE | | North-West Telecom ADR | NWTEY | US6633161079 | US OTC | | North-West Telecom ADR | SQ4 | US6633161079 | XETRA | | North-West Telecom pref | SPTLP | RU0009107338 | MICEX | | North-West Telecom pref | SPTLP | RU0009107338 | RTS Classic | | North-West Telecom pref | SPTLPG | RU0009107338 | RTS T+0 |
Price Chart |
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Participation in DR Programs |
| Level | Effective Date | Underlying Share Ratio | CUSIP | Depositary Bank |
| Level 1 ADR | 04 Sep 01 | 1: 50 | 663316107 | J. P. Morgan |
Weightings in Indices |
| Name | Weight | Inclusion Date | Notes |
| RusIndex 100 | 0.08 | 01 Sep 97 | | | RusIndex Services | 0.45 | 10 Feb 99 | | | RusIndex Telecommunications | 1.26 | 01 Sep 97 | | | SPT-RusIndex | 19.13 | 01 Sep 97 | |
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 |
| 1 | 4-01-00119-À | 05 Mar 01 | 730 | 1,000 | 300,000 | 5 | 91 | Trubsnab | | 2 | 4-02-00119-À | 08 Jul 03 | 1,456 | 1,000 | 1,500,000 | 16 | 91 | North-west telecom Finance | | 3 | 4-03-00119-À | 28 Dec 04 | 2,184 | 1,000 | 3,000,000 | 24 | 91 | SZT Finance | | 4 | 4-04-00119-À | 31 Oct 06 | 1,820 | 1,000 | 2,000,000 | 20 | 91 | SZT Finance |
Coupons |
Issue #/ Tranche # | Coupon # | Start Coupon Period | End Coupon Period | Coupon, % |
| 1 | 1 | 10 Apr 02 | 10 Jul 02 | 20.00 | | 1 | 2 | 10 Jul 02 | 09 Oct 02 | 19.00 | | 1 | 3 | 09 Oct 02 | 10 Apr 03 | 18.00 | | 1 | 4 | 10 Apr 03 | 09 Oct 03 | 16.00 | | 1 | 5 | 09 Oct 03 | 09 Apr 04 | 16.00 | | 2 | 1 | 08 Oct 03 | 07 Jan 04 | 14.20 | | 2 | 2 | 07 Jan 04 | 07 Apr 04 | 14.20 | | 2 | 3 | 07 Apr 04 | 07 Jul 04 | 14.20 | | 2 | 4 | 07 Jul 04 | 06 Oct 04 | 14.20 | | 2 | 5 | 06 Oct 04 | 05 Jan 05 | 13.20 | | 2 | 6 | 05 Jan 05 | 06 Apr 05 | 13.20 | | 2 | 7 | 06 Apr 05 | 06 Jul 05 | 13.20 | | 2 | 8 | 06 Jul 05 | 05 Oct 05 | 13.20 | | 2 | 9 | 05 Oct 05 | 04 Jan 06 | 13.20 | | 2 | 10 | 04 Jan 06 | 05 Apr 06 | 7.50 | | 2 | 11 | 05 Apr 06 | 05 Jul 06 | 7.50 | | 2 | 12 | 05 Jul 06 | 04 Oct 06 | 7.50 | | 2 | 13 | 04 Oct 06 | 03 Jan 07 | 7.50 | | 2 | 14 | 03 Jan 07 | 04 Apr 07 | 7.50 | | 2 | 15 | 04 Apr 07 | 04 Jul 07 | 7.50 | | 2 | 16 | 04 Jul 07 | 03 Oct 07 | 7.50 | | 3 | 1 | 03 Mar 05 | 02 Jun 05 | 9.25 | | 3 | 2 | 02 Jun 05 | 01 Sep 05 | 9.25 | | 3 | 3 | 01 Sep 05 | 01 Dec 05 | 9.25 | | 3 | 4 | 01 Dec 05 | 02 Mar 06 | 9.25 | | 3 | 5 | 02 Mar 06 | 01 Jun 06 | 9.25 | | 3 | 6 | 01 Jun 06 | 31 Aug 06 | 9.25 | | 3 | 7 | 31 Aug 06 | 30 Nov 06 | 9.25 | | 3 | 8 | 30 Nov 06 | 01 Mar 07 | 9.25 | | 3 | 9 | 01 Mar 07 | 31 May 07 | 9.25 | | 3 | 10 | 31 May 07 | 30 Aug 07 | 9.25 | | 3 | 11 | 30 Aug 07 | 29 Nov 07 | 9.25 | | 3 | 12 | 29 Nov 07 | 28 Feb 08 | 9.25 | | 3 | 13 | 28 Feb 08 | 29 May 08 | 8.60 | | 3 | 14 | 29 May 08 | 28 Aug 08 | 8.60 | | 3 | 15 | 28 Aug 08 | 27 Nov 08 | 8.60 | | 3 | 16 | 27 Nov 08 | 26 Feb 09 | 8.60 | | 3 | 17 | 26 Feb 09 | 28 May 09 | 8.60 | | 3 | 18 | 28 May 09 | 27 Aug 09 | 8.60 | | 3 | 19 | 27 Aug 09 | 26 Nov 09 | 8.60 | | 3 | 20 | 26 Nov 09 | 25 Feb 10 | 8.60 | | 3 | 21 | 25 Feb 10 | 27 May 10 | 8.60 | | 3 | 22 | 27 May 10 | 26 Aug 10 | 8.60 | | 3 | 23 | 26 Aug 10 | 25 Nov 10 | 8.60 | | 3 | 24 | 25 Nov 10 | 24 Feb 11 | 8.60 | | 4 | 1 | 14 Dec 06 | 15 Mar 07 | 8.10 | | 4 | 2 | 15 Mar 07 | 14 Jun 07 | 8.10 | | 4 | 3 | 14 Jun 07 | 13 Sep 07 | 8.10 | | 4 | 4 | 13 Sep 07 | 13 Dec 07 | 8.10 | | 4 | 5 | 13 Dec 07 | 13 Mar 08 | 8.10 | | 4 | 6 | 13 Mar 08 | 12 Jun 08 | 8.10 | | 4 | 7 | 12 Jun 08 | 11 Sep 08 | 8.10 | | 4 | 8 | 11 Sep 08 | 11 Dec 08 | 8.10 | | 4 | 9 | 11 Dec 08 | 12 Mar 09 | 8.10 | | 4 | 10 | 12 Mar 09 | 11 Jun 09 | 8.10 | | 4 | 11 | 11 Jun 09 | 10 Sep 09 | 8.10 | | 4 | 12 | 10 Sep 09 | 10 Dec 09 | 8.10 | | 4 | 13 | 10 Dec 09 | 11 Mar 10 | 8.10 | | 4 | 14 | 11 Mar 10 | 10 Jun 10 | 8.10 | | 4 | 15 | 10 Jun 10 | 09 Sep 10 | 8.10 | | 4 | 16 | 09 Sep 10 | 09 Dec 10 | 8.10 | | 4 | 17 | 09 Dec 10 | 10 Mar 11 | 8.10 | | 4 | 18 | 10 Mar 11 | 09 Jun 11 | 8.10 | | 4 | 19 | 09 Jun 11 | 08 Sep 11 | 8.10 | | 4 | 20 | 08 Sep 11 | 08 Dec 11 | 8.10 |
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 |
| 1 | 10 Apr 02 | 10 Apr 02 | 96.50 | 300,000 | 09 Apr 04 | 10 Apr 03 | 96.78 | redeemed | 15 May 02 | | 2 | 08 Oct 03 | 08 Oct 03 | 100.00 | 1,500,000 | 03 Oct 07 | 05 Oct 05 | 100.00 | redeemed | 14 Nov 03 | | 3 | 03 Mar 05 | 03 Mar 05 | 100.00 | 3,000,000 | 24 Feb 11 | 06 Mar 08 | 100.00 | outstanding | 29 Mar 05 | | 4 | 14 Dec 06 | 14 Dec 06 | 100.00 | 2,000,000 | 08 Dec 11 | 11 Dec 08 | | outstanding | 11 Jan 07 |
Key Financial Characteristics
Balance Sheet |
| | 31 Dec 05 | 31 Dec 06 | 30 Jun 07 | 31 Dec 05 | 31 Dec 06 | 30 Jun 07 |
| | RUR mn | RUR mn | RUR mn | USD mn | USD mn | USD mn |
| RUR/USD Exchange rate | 28.79 | 26.35 | 25.80 |
| ASSETS, of which | 40,882.87 | 44,960.92 | 49,171.49 | 1,419.86 | 1,706.27 | 1,905.89 |
| Fixed Assets and Other Non-current Assets, of which | 36,789.49 | 42,041.77 | 46,058 | 1,277.7 | 1,595.49 | 1,785.21 |
| | Fixed Assets | 26,642.87 | 28,009.69 | 30,396.14 | 925.31 | 1,062.97 | 1,178.15 |
| | Intangible Assets | 1,832.43 | 2,863.95 | 4,446.19 | 63.64 | 108.69 | 172.33 |
| | Other Assets | 8,314.19 | 11,168.13 | 11,215.68 | 288.75 | 423.83 | 434.72 |
| Current Assets, of which | 4,093.38 | 2,919.15 | 3,113.49 | 142.16 | 110.78 | 120.68 |
| | Inventories | 300.09 | 308.25 | 377.18 | 10.42 | 11.7 | 14.62 |
| | Accounts Receivable | 1,181.81 | 1,336.91 | 1,469.19 | 41.04 | 50.74 | 56.95 |
| | Cash | 152.09 | 244.49 | 250.42 | 5.28 | 9.28 | 9.71 |
| | Other Current Assets | 2,459.39 | 1,029.5 | 1,016.7 | 85.41 | 39.07 | 39.41 |
| OWNER'S EQUITY, of which | 23,676.21 | 26,418.42 | 27,527.91 | 822.27 | 1,002.58 | 1,066.98 |
| | Charter Capital | 2,855.5 | 0 | 0 | 99.17 | 0 | 0 |
| | Reserves | 20,820.7 | 26,418.42 | 27,527.91 | 723.1 | 1,002.58 | 1,066.98 |
| | Retained Earnings | 0 | 0 | 0 | 0 | 0 | 0 |
| LIABILITIES, of which | 17,206.67 | 18,542.5 | 21,643.58 | 597.59 | 703.69 | 838.91 |
| | Long-Term Debt | 8,177.44 | 7,577.61 | 4,871.53 | 284 | 287.57 | 188.82 |
| | Short-Term Debt | 595.68 | 81.53 | 399.32 | 20.69 | 3.09 | 15.48 |
| | Accounts Payable | 1,760.74 | 2,588.73 | 4,214.63 | 61.15 | 98.24 | 163.36 |
| | Other Liabilities | 6,672.81 | 8,294.63 | 12,158.1 | 231.75 | 314.78 | 471.25 |
| Financial data standard | IAS | IAS | IAS | IAS | IAS | IAS |
| Audited | Audited | Unaudited | Audited | Audited | Unaudited |
| Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
P&L Account |
| | 31 Dec 05 | 31 Dec 06 | 30 Jun 07 | 31 Dec 05 | 31 Dec 06 | 30 Jun 07 |
| | RUR mn | RUR mn | RUR mn | USD mn | USD mn | USD mn |
| Average RUR/USD Exchange rate | 28.30 | 27.16 | 26.09 |
| Sales | 20,541.91 | 20,649.83 | 11,952.14 | 725.99 | 760.16 | 458.1 |
| Production Costs | 17,955.29 | 17,765.71 | 9,204.77 | 634.57 | 653.99 | 352.8 |
| Operating Profit | 2,586.63 | 2,884.12 | 2,747.37 | 91.42 | 106.17 | 105.3 |
| Other Income | -597.96 | -710.92 | -351.18 | -21.13 | -26.17 | -13.46 |
| Income Before Taxes | 1,988.67 | 2,173.2 | 2,396.19 | 70.28 | 80 | 91.84 |
| Net Income | 1,410.87 | 1,270.58 | 1,635 | 49.86 | 46.77 | 62.67 |
| Financial data standard | IAS | IAS | IAS | IAS | IAS | IAS |
| Audited | Audited | Unaudited | Audited | Audited | Unaudited |
| Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated |
Key Ratios |
| | 31 Dec 05 | 31 Dec 06 | 30 Jun 07 |
| Company Valuation Coefficients | |
| P/BV | 0.03 | 1.39 | 1.42 |
| P/S | 0.04 | 1.83 | 1.76 |
| P/E | 0.53 | 29.70 | 21.06 |
| Company Efficiency Coefficients | |
| Sales/Employee, USD thnd | 25.80 | 28.60 | 33.73 |
| Net Profit Margin, % | 6.87 | 6.15 | 8.36 |
| ROA, % | 3.72 | 2.99 | 4.16 |
| ROE, % | 6.33 | 5.12 | 7.27 |
| Turnover Coefficients | |
| Receivables Turnover | 17.43 | 16.57 | 16.70 |
| Assets Turnover | 0.54 | 0.49 | 0.50 |
| Inventory Turnover | 65.82 | 68.77 | 68.16 |
| Liabilities Turnover | 1.40 | 1.17 | 1.20 |
| Capital Structure Coefficients | |
| Equity Ratio | 0.58 | 0.59 | 0.56 |
| Debt Ratio | 0.42 | 0.41 | 0.44 |
| Equity/Debt | 1.38 | 1.42 | 1.27 |
| Current Liquidity | 1.01 | 0.57 | 0.29 |
| Quick Liquidity | 0.94 | 0.51 | 0.26 |
Production Overview
Production |
| Product | Measure | 2005 | 2006 | 1H07 | Units |
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| Access lines in use | 1 | 4,390,391 | 4,457,478 | n. a. | lines | | Rural telephone network | 1 | 369,221 | 372,785 | n. a. | lines | | Urban telephone network | 1 | 4,021,170 | 4,084,693 | n. a. | lines | | Access lines installed | 1 | 4,809,649 | 4,735,785 | n. a. | lines | | Rural telephone network | 1 | 421,068 | 429,306 | n. a. | lines | | Urban telephone network | 1 | 4,388,581 | 4,306,479 | n. a. | lines | | Digitalisation rate (Rural telephone network) | 1 | 24 | 27 | n. a. | % | | Digitalisation rate (Urban telephone network) | 1 | 57 | 60 | n. a. | % | | Telephones | 1 | 4,338,880 | 4,407,350 | 4,417,217 | units |
Capacity |
| Product | Measure | Capacity | Units |
| Access lines installed | 1 | 4,700,000 | lines | | Urban telephone network | 1 | 4,313.25 | lines | | Rural telephone network | 1 | 421.99 | lines |
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