Appeal of the President of the Republic of Bashkortostan
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СONTENTS Appeal of the President of the Republic of Bashkortostan. 1 Introductory remarks of General Director 2 I. SHARE CAPITAL 3 Issue of Shares 3 Dynamics of dividend payments on equity issues 3 Data on Investment in other companies of the JSC Firm "BashInformSvyaz" 3 Share Capital and Securities 4 II. CORPORATE ACTIONS 5 Data on Board of Directors activities 5 Board of Directors 6 Managerial Board 7 Data on the activities of Executive Bodies of the Company 8 Data on the activities of Auditing Committee 9 IIII. DATA ON THE COMPANY 10 General Data on the Company 10 Finance Indicators and Production Figures 12 Map of Interregional Centres of Electric Communication 13 Branch Subsidiaries of the JSC Firm "BashInformSvyaz" 14 Main Events of 2002 year 15 IV. LINES OF THE COMPANY'S ACTIVITY 16 Intercity and International Communication 16 Local Communication 17 Marketing 18 Information Technologies 19 Tariff Policy 20 Social & Personnel Policy 21 Communication Networks Development 22 V. PERSPECTIVES OF SOCIAL DEVELOPMENT 23 VI. FINANCIAL AND ECONOMIC ACTIVITIES OF THE COMPANY 24 Financial and Economic Indicators of Activities 24 Consolidated Balance-sheet 25 Profits and Losses for 2002 25 VII. RESULTS OF THE COMPANY'S ACTIVITY 26 Conclusion of the Revisory Commission 27 Conclusion of the Auditing Committee 27 28 29 Dear Friends! Glad to congratulate You with the 10th Anniversary of the Joint-Stock Company Firm "BashInformSvyaz"! For this short period of time You together with the Republic have taken a considerable step in your development . Being one of the most important sector of the production and social infrastructure of our society the communication industry has made an appreciable contribution to all achievements of Bashkortostan. "BashInformSvyaz", the main communication provider in Bashkortostan, plays the leading role in realization of the programme "People's Telephone". Today 80% of the families living in the cities and towns have their own telephone. We are planning sizeable changes in establishment of telephone communication in the rural ares. The telephone communication is becoming up-to- date - there appear new types of communication - paging, mobile and others. That is the result of intensive introduction of the latest hightech equipment - digital Automatic Telephone Stations, radio relay and optical communication lines. Under the conditions of the world wide information revolution Your Company plays an active role in creation of the common information space in our country. The developed market of telecommunication and information technologies is being created nowadays. Number of PCs, and local networks is constantly increasing as well as the number of Internet users. Taking part in equipping of the organs of state administration, production, science and education sectors You contribute to valuable integration of Bashkortostan into world economy. The programme of development of the JSC "BashInformSvyaz" for 2001 - 2010 years, elaborated in accordance with the Concept of Russian telecommunication services market development, makes it possible to rise to the level of Eastern Europe. You are to complete the establishment of telephone communication in the urban and rural ares, to create high-capacity telecommunication network in Bashkortostan on the base of available digital technologies. I am sure that Your highly qualified and united collective is up to these great tasks. I wish you every happiness, health to You and your families, success in all your affairs in favour of native Bashkortostan and Russia! President of the Republic of Bashkortostan������������������������������������������������������������������������������Rakhimov M. 1 Ladies and Gentlemen! I am glad to greet you on behalf of all workers of the Joint-Stock Company "BashInformSvyaz". The modern society is developing thanks to high-tech telecommunication services. Under the conditions of the 21st century the economics is based first of all on the high technologies and the latest communication facilities. We realize all the possibilities and do all the best to provide the population of our Republic, enterprises, bodies of administration and management with reliable and up-to-date communication. Our Joint-Stock Company is considered to be the main provider of electric communication on the territory of the Republic of Bashkortostan, providing all the categories of users with wide range of services. JSC "BashInformSvyaz" is developing in accordance with spirit of the times, fantastic capacities of modern technique. New generation does not imagine its future without Internet, data transfer, mobile communication, IP-telephony. To make all the above services more moderate is one of our tasks. For the last several years the Joint-Stock Company has been considerably changed, crux of these changes is to restructure the Company into a highly profitable and investment attractive enterprise. In 2002 we celebrate the 10th anniversary of the Company. That was the year of creation and internal restructuring aimed at improvement of management efficiency and competitiveness ofthe Company. As a result of the positive restructuring we have established powerful and profitable Company. We associate our future and long-term perspectives with great growth of economy and infrastructure development in our Republic. Submitting the annual report of the JSC "BashInformSvyaz" for 2002 year for approval of the general shareholders' meeting I want to say that I am satisfied with the results of the Company's managers, specialists and other employees work. Thanks to their efforts the Company gains the opportunity to pay dividends to its shareholders for 2002. I hope that all plans of social and economic development will be realized with great success and the Company will gain new impulse for its development. S.M.Gaysin General Director of the JSC "BashInformSvyaz" 2 I. SHARE CAPITAL AND SECURITIES Share issue Date and Ordinary Preference Preference Issue number Registration body number of issue shares, shares of A type, shares of B type, registration pcs. pcs. pcs. Ministry of Finance st 1 issue of the Republic April 9, 1993 1 369 613 84 895 785 294 of Bashkortostan 01-1-62 Ministry of Finance 2nd issue Nov. 3, 1995 of the Republic 01-1-1048 126 462 989 5 942 650 of Bashkortostan 29 552 744 rd Ministry of Finance 3 issue Nov. 11, 1995 (not placed and of the Republic 10 000 000 - - therefore annuled) of Bashkortostan 01-1-1050 Federal Security April 05, 1999 4th issue Commission 1-04-00011-А 639 163 010 30 137 725 151 690 190 of Russia 2-04-00011-А TOTAL 766 995 612 36 165 270 182 028 228 Dynamics of dividend payments on equity issues Ordinary shares Preference shares of A type Preference shares of B type Year of Total Dividend % % % dividend amount rate for 1 Total amount Dividend rate Dividend rate Total amount Dividend rate Dividend rate payment Dividend rate of dividend, share, for 1 share, of dividend, for 1 share, for 1 share, of dividend, for 1 share, for 1 share, rubles rubles rubles rubles rubles rubles rubles rubles rubles 1993 1 023 100 0,747 74,7 63 416 0,747 74,7 586 614 0,747 74,7 1994 1 131 300 0,826 82,6 152 386 1,795 179,5 1 409 602 1,795 179,5 1995 - - - - - - - - - 1996 - - - 6 027 545 1,00 100,0 3 033 803 0,10 10,0 1997 - - - 2 350 742 0,39 39,0 3 033 803 0,10 10,0 1998 - - - 361 652 0,06 6,0 3 033 803 0,10 10,0 1999 7 669 956 0,01 1,0 3 616 527 0,10 10,0 5 460 846 0,03 3,0 2000 7 669 956 0,01 1,0 3 616 527 0,10 10,0 5 460 846 0,04 4,0 2001 8 694 097 0,01 1,0 6 509 749 0,18 18,0 3 184 564 0,04 4,0 Data on Investment in other companies of JSC Firm "BashInformSvyaz" (as of January 1, 2003) Legal Address Amount of investments, Amount of investments, Name of the Company rubles % LLC ICC "Express" TIN 0274022246 28 Lenin Str., Ufa 450000 118 047 858 49,00 JSC "Mobile Communication of Bashkortostan" 2 Rabkorov Str., Ufa 450106 3 493 300 35,70 JSC "Alfa-Bank-Bashkortostan" TIN 0274061157 28 Lenin Str., Ufa 450000 20 468 644 11,16 JSC "Concern BETO" TIN 0274043528 3 K.Marx Str., Ufa 450025 20 450 0,13 JSC "Bashkir Investment House" TIN 0274029001 2 Rabkorov Str., Ufa 450106 31 250 2,55 LLC CAPB "Bashkiriya" TIN 0274004952 70 Lenin Str., Ufa 450025 8 020 0 LLC "Yumaguzino Reservoir" TIN 0274062584 28 St.Khalturin Str., Ufa 450077 29 873 583 1,20 LLC "Sattelite Telecommunications of Bashkortostan" TIN 0278077510 20/1 50 Let Oktyabrya Str., Ufa 450005 35 000 000 18,75 Association "SDO-Iskra" 40 Leninsky Prospekt, Moscow 117334 116 720 0 "Tovarishestvo" without legal entity organization 32/1 Lenin Str., Ufa 450000 778 462 113 0 LLC "BashTeleComLeasing" TIN 0274079725 32/1 Lenin Str., Ufa 450000 95 000 19,00 TOTAL 985 616 938 3 I. SHARE CAPITAL AND SECURITIES Share Capital and Securities Share capital of the JSC Firm "BashInformSvyaz" comes to 985 189 110 rubles that is placed into 985 189 110 shares at nominal value of 1 ruble for each share. 46,08% of shares is passed into the public ownership, including 28,24% - federal ownership and 17,84% - ownership of the Republic of Bashkortostan. Total number of shareholders makes more than 14 thousand, including 90% of natural persons. Register of shareholders is being kept by the JSC "Central Registry" (License No. 10-0001-00283 issued by the Federal Security Commission of Russia on the 4th of February 2003). The corporation stock is circulating on the RTS stock exchange since 1997 and appears on the share list for RTS index calculation which is considered to be an important indicator of the Russian securities market behaviour.The RTS index is being calculated on the basis of the on-line data on purchase and sale transactions effected with the most realizable stock on the Russian Commodity Exchange.