Experience. Responsibility. Courage to explore. Annual ReportAnnual 2004 Annual Report 2004 Slovak Telecom, a. s. Námestie slobody 6 817 62 Bratislava 15 tel.: +421 (0)2 – 5881 1111 fax: +421 (0)2 – 5249 1767 http://www.telecom.sk We have matured. e-mail: corporate.offi [email protected] We respect our past. Today new goals and challenges customer services centre: +421 – (0)800 123 456 lie ahead of us. We are ready to resolve them to the utmost satisfaction of our clients and partners. Annual Report 2004 ©2005, issued by Slovak Telecom, a. s. Obalka 904,5x280 celok 1 31/3/05, 9:25:49 AM Revenues SKK million SKK million EBITDA/ EBITDA Margin EBITDA Revenues EBITDA Margin SKK million Net Income/ SKK million CAPEX Net Income Margin CAPEX Net Income Net Income Margin Net Income Net Debt SKK million Employees/ Lines per Employees Employees Net Debt Lines per Employees Net Debt = Cash and Cash Equivalents + Marketable Securities – Liabilities to Banks Lines = Main Telephone Lines, ISDN B-channels and Public Payphones Employees = end of the year without Rádiokomunikácie branch Obalka 904,5x280 celok 2 31/3/05, 9:25:50 AM blok AJ217x280 1 Proposal for profit distribution for the year 2004 theyear distributionfor profit for Proposal a.s. Telecom, Report ofSlovak totheShareholders Auditor‘s Independent 2004 ended31December theyear for financialstatements Consolidated Finance 73 helpthemost we helping, enjoy we When 45 ofchange notafraid are becausewe progress We progress. changetomake We more toachieve alotandstillwant achieved have We 74 heading are we know where –we clearstrategy 34 Clear objectives, Structure Organisational Bodies Corporate Board Management Members oftheExecutive President/CEO Majoroš, ofMiroslav Address 20 40 ChairmanoftheBoard ofDirectors ofHorstHermann, Address 24 Identity Corporate Profile Company 2004 Milestones 8 13 18 10 1 Contents 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 Contents 65 67 69 16 6 4 2 71 73 31/3/05, 10:41:29 AM 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 2004 Milestones 2004 Milestones January 2004 May 2004 • The company was re-branded from Sloven- • Broadband DSL technology was rolled out to ské telekomunikácie, a. s. to Slovak Telecom, the mass market, the transmission rate was in- a. s. and a new corporate identity was intro- creased and new ST DSL products launched. duced. • The eTablo 2004 online internet contest for • The PCs for Schools project was officially secondary school graduates was announced launched, making it possible to equip each as part of the PCs for Schools project. primary and secondary school with a new computer classroom thanks to a SKK 1bn June 2004 donation by Deutsche Telekom AG. • The company is one of the first accreditation centres to be given accreditation to grant the February 2004 ECDL (so-called European PC “driving” license) • Shareholders adopted the decision to imple- certificate. ment the NGN (Next Generation Network) • New ST Pohoda and ST Extra calling plans technology. were introduced to the market. • Slovak Telecom’s CEO, Miroslav Majoroš, was March 2004 the only representative of Central and Eastern • The ST DSL customer base surpassed 10,000 Europe to meet His Royal Highness Prince • The Slovak Youth Chamber honoured Slovak Charles as part of the Seeing is Believing pro- Telecom with the ‘Most Successful Company of gramme. 2003’ award in the Internet services provider category. July 2004 • Slovak Telecom supported the Infovek Summer April 2004 Schools project, focusing on teachers’ educa- • Launch of the implementation of NGN techno- tion and PC literacy. logy to our network. • The company’s internet portal www.telecom.sk • Prices for calls abroad were cut on the occasion won the prestigious Microsoft Industry Awards. of Slovakia’s accession to the European Union • Implementation of the PCs for Schools project August 2004 was started, representing one of the largest • Family Internet – the new flat-rate dial-up- informatisation projects in Slovakia. based product designed for residential cus- • Launch of max club – the loyalty programme tomers was launched. for Slovak Telecom’s customers. • The first migration of customers from analogue • The company was granted the top award in exchanges to NGN technology was carried out. the nationwide Corporate Medium 2003 contest for its intranet site. September 2004 • The visuals of the price communication cam- • The range of services offered via the 1181 paign “Bench, Tram, Glass” won the Strieborný and 12149 enquiry services was extended by klinec award in the contest of “Most Creative services such as call completion and delivery Advertisement“. of a found number by fax or e-mail. blok AJ 217x280 2 31/3/05, 10:41:30 AM 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 2004 Milestones • The eČasopis 2004 and Žiacka knižka 2004 November 2004 online internet competitions were announced • The company became one of the founding as part of the PCs for Schools project. members of the Business Leaders Forum (BLF) • Slovak Telecom publicly announced its interest and signed the Memorandum on Corporate in acquiring a 49% share in EuroTel Bratislava, Social Responsibility. The CEO was appointed a. s. from the American Atlantic West B.V. con- president of the BLF for 2005. sortium. • Slovak Telecom was honoured with the Best Annual Report 2003 Award in the printed and October 2004 electronic version categories. • As one of the organisers and partners of the • Pavol Kukura, a representative of the company, international conference “Will Slovakia become was elected vice-chairman of ETNO (European a part of information Europe?“, the company Telecommunications Network Operators prepared proposals for the Government Association at the EU) for 2005. suggesting how to proceed with the systematic development of an information society in December 2004 Slovakia. • Digitalisation of the public telecommunica- • Slovak Telecom completed the PCs for Schools tions network was finished. project in a record-breaking 6 months, during • Slovak Telecom completed the acquisition of which time all Slovak primary and secondary EuroTel Bratislava, a. s., after its approval by schools were equipped with a new computer the European Commission. • The company was granted the ISO 9002 cer- classroom, with more than 90% of them be- tificate for business segment sales processes ing connected to the internet thanks to the • ST DSL was made available to 2.9 million support of the company. citizens in 119 municipalities throughout • The “SMS over fixed lines“ service was intro- Slovakia. duced. blok AJ 217x280 3 31/3/05, 10:41:31 AM 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 Company profile Company Profile We are a leader in the field of telecommunications ration and performance of tasks in emergency services provided in Slovakia with an extensive situations and during a state of military alert in history. We provide national and international tele- line with the orders of competent authorities, phone services and a wide range of data services • preparation and updating of information and Internet services, including broadband access. databases for information systems in the We also provide for the distribution and broad- telecommunications sector, casting of radio and television signals and offer • publishing, distribution and sale of directories a broad range of value added services. We form of subscribers of individual telecommunications part of Deutsche Telekom Group – a multinational services (on various media), group of companies. • connection of a specific part of the PTN (public telecommunications network) to the Registered office: international telecommunications network, Nám. slobody 6, 817 62 Bratislava concluding of international agreements in telecommunications related to the business Legal form: activities of Slovak Telecom, proposing prices joint-stock company and tariffs for domestic and international serv- ices, including billing and clearing thereof. Date of incorporation: 1 April 1999 Shareholders The majority shareholder of Slovak Telecom is As per the Excerpt from the Companies Register Deutsche Telekom AG with 51% of shares, followed our business activities include: by the Ministry of Transport, Postal Services and • transmission, broadcasting and reception of Telecommunications of the Slovak Republic with radio, television and other communication 34% of shares, and the National Property Fund signals for statutory operators and operators (FNM) with 15% of shares. holding relevant licences, • provision of telecommunication and radio- Subsidiaries communication services against payment On 31 December 2004 Slovak Telecom became (transmission, processing, creation and me- the sole owner of EuroTel Bratislava, a. s. which diation of information) for individuals and provides mobile communication services and legal entities, operates data networks. EuroTel Bratislava, a. s. • establishment, operation, construction, main- operates the following three networks: GSM (900 tenance, and servicing of telecommunications and 1,800 MHz) digital network, public data net- facilities, networks, and information technolo- work and NMT analogue network. Slovak Telecom gies owned by other entities under concluded purchased the remaining 49% of shares in EuroTel contracts, Bratislava from the Atlantic West B.V. consortium. • performance of activities related to the prepa- With the completion of the transaction EuroTel blok AJ 217x280 4 31/3/05, 10:41:31 AM 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 Company profile Bratislava, a.