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Joint-Stock Central Telecommunication Company Code of the Issuer

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Joint-Stock Central Telecommunication Company Code of the Issuer QUARTERLY REPORT Joint-Stock Central Telecommunication Company Code of the Issuer: 00194-A for the 2nd quarter of 2004 Domicile: 23 Proletarskaya Street, Khimki, the Moscow region, 141400, Russia Mailing address: 6 Degtiarny Pereulok, Building 2, GSP-3, Moscow, 125993, Russia The information in this quarterly report is disclosed pursuant to applicable law of the Russian Federation on securities. (signed by) R. Amaryan General Director JSC CenterTelecom Date: August 13, 2004 R. Konstantinova Chief Accountant Date: August 13, 2004 (seal) Contact person: Ms. Natalia Sudareva, Deputy Director, Department of Securities and Corporate Management, Head of Securities Issues Tel.: (+7 095) 209-38-49 Fax: (+7 095) 209-28-29 e-mail: [email protected] The information disclosed in this quarterly report is posted at: http://www.centertelecom.ru/index.html?d=63 1 TABLE OF CONTENTS Introduction ......................................................................................................................................................................5 I. Background of persons-members of the Issuer’s governing bodies, information on bank accounts, the auditor, appraiser, and financial consultant of the Issuer, and other persons who signed the quarterly report .................29 1.1 Members of the governing bodies of the Issuer ...........................................................................................................29 1.2 Information on bank accounts of the issuer .................................................................................................................30 1.3 Auditor of the Company ............................................................................................................................................128 1.4. Appraisor of the Issuer..............................................................................................................................................128 1.5 Consultants of the issuer ............................................................................................................................................129 1.6 Information on other persons who signed the quarterly report ..................................................................................129 II. Basic information regarding the financial position and economic state of the issuer. ......................................130 2.1 Financial and business performance of the issuer ......................................................................................................130 2.2 Market capitalization of the issuer .............................................................................................................................130 2.3.2. Credit history of the issuer.................................................................................................................................132 2.3.3. The issuer liabilities arising from securities provided to third parties..............................................................132 2.3.4 Other liabilities of the issuer ..............................................................................................................................132 2.4 The objectives of securities issues and channeling the proceeds from placement of issued securities ......................132 2.5.1. Risks in the telecommunications industry ..........................................................................................................132 2.5.2 Sovereign and regional risks. .............................................................................................................................133 2.5.3 Financial risks ....................................................................................................................................................134 2.5.4. Legal risks..........................................................................................................................................................135 2.5.5. Risks inherent to the activities of the issuer.......................................................................................................136 III. Detailed profile of the issuer .................................................................................................................................136 3.1. Background and history of the Issuer........................................................................................................................136 3.1.1. Registered corporate name of the issuer............................................................................................................136 3.1.2 Information about registration of the issuer with state authorities ....................................................................136 3.1.3. Evolvement and development of the issuer ........................................................................................................136 3.1.4. Contact information...........................................................................................................................................137 3.1.5. Taxpayer Identification Number (INN)..............................................................................................................138 3.1.6. Subsidiaries and representative offices of the issuer. ........................................................................................138 3.2 Core business activities of the issuer..........................................................................................................................139 3.2.1 Industrial designations of the issuer...................................................................................................................139 3.2.2 Core business activities of the issuer..................................................................................................................139 3.2.3 Principal types of products (services, works) .....................................................................................................141 3.2.4 Suppliers of the issuer accounting for at least 10% of all supplies of tangible materials, and their shares in the total value of supplies. .................................................................................................................................................142 3.2.5 Markets for sales of the issuer’s products (works, services) ..............................................................................142 3.2.6 Policies of using current assets and inventories.................................................................................................146 3.2.7 Raw materials.....................................................................................................................................................146 3.2.8 Major competition ..............................................................................................................................................146 3.2.9 Licenses granted to the issuer.............................................................................................................................148 3.2.10 Joint activities in partnership ...........................................................................................................................158 3.2.11 Additional requirements to be met by issuers for which telecom service provision is the core activities.........159 3.4 Plans of future activities of the issuer ........................................................................................................................164 3.5 The issuer's participation in industrial, banking and financial groups, holdings, concerns and associations.............165 3.6 Daughter and affiliated businesses/companies of the issuer ......................................................................................169 3.7 Composition, structure and value of the issuer’s fixed assets, plans on acquisition, replacement and retirement of fixed assets, and instances of encumbrances of the issuer’s fixed assets. ........................................................................177 3.7.1 Fixed assets.........................................................................................................................................................177 3.7.2 Value of immovable property of the issuer .........................................................................................................179 IV. Financial and business performance of the issuer...............................................................................................180 4.1 Results of the financial and business operations of the issuer....................................................................................180 4.1.1 Profit and losses .................................................................................................................................................180 4.1.2. Causes of changes in the issuer’s revenues from sales of goods, products, works, services and profit (losses) from recurrent operations............................................................................................................................................180 4.2. Liquidity of the issuer ...............................................................................................................................................180 4.3 Amount, structure and sufficiency of the issuer’s capital and current assets .............................................................181
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