/Corrected/ Results of "Kazakhtelecom" in 1999

/KASE, March 6, 00, Galina Chudinova, Galina Tsalyuk/ - According to listing requirements, "Kazakhtelecom" (Almaty, official list of securities, category "A") provided Kazakhstan Stock Exchange (KASE) with its financial statements for the year 1999: balance sheet, income statement, and cash flow statement. Following are the results of the emitter in 1999 (in th. KZT): Indicator As of January 1'99 As of January 1'00 Change,% ------------------------- ------------------ ------------------ -------- Authorized capital (paid) 12,136,529 12,136,529 0 Shareholders equity 32,307,470 33,523,942 +3.8 Total assets 52,451,988 57,208,166 +9.1 Net working capital -2,327,252 427,787 +118.4 Accounts receivable 5,990,758 7,367,104 +23.0 Liabilities 20,144,518 23,684,224 +17.6 Sales (services offered) 23,528,306 29,843,043 +26.8 Cost of goods sold (services offered) 14,146,487 15,862,208 +12.1 Net income (loss) of the period 2,041,235 1,515,978 -25.7 ------------------------- ------------------ ------------------ -------- There were no changes in charter capital of "Kazakhtelecom" in 1999. KZT1,216.47 mln, or 3.8% increase in shareholders' equity to that of 1998 was caused by KZT2,716.28 mln (KZT2,574.37 mln of reporting period, KZT141.91 mln of previous years) increase in total amount of undistributed income with KZT1,499.81 mln (revaluation of fixed assets) decrease in additional unpaid capital. As a result of an increase in shareholders' equity while the number of outstanding shares was unchanged, book value of a share grew KZT100.23 relative to previous year, at KZT2,762.23. Assets of "Kazakhtelecom" rose KZT4,756.18 mln, or 9.1% against 1998. Most of the growth - KZT4,571.51 mln, or 56.8% came from current assets, as a result of increases in: - inventory - KZT1,091.86 mln; - short term investments - KZT1,628.27 mln; - accounts receivable - KZT1,376.35 mln; - cash - KZT479.74 mln; with KZT4.71 mln decrease in expenses of future periods. Growth in long term assets equaled KZT184.67 mln, or 0.4%, including: - residual value of fixed assets - KZT1,228.40 mln; - residual value of intangible assets - KZT184.53 mln; - volume of incomplete capital construction - KZT245.19 mln; - expenses of future periods - KZT1.49 mln; with KZT1,474.95 mln decrease in long term investments. Total amount of "Kazakhtelecom" liabilities rose KZT3,539.70 mln, or 17.6% relative to 1998. KZT1,723.23 mln, or 17.7% increase in long term liabilities was caused by and increase in long term loans. Current liabilities of the company rose KZT1.816.47 mln, or 17.5%, including: - short term loans - KZT2,073.00 mln; - long term loans due in one year - KZT243.53 mln; - income of future periods - KZT219.70 mln. with KZT719.76 mln decrease in accounts payable. Sales (services offered) rose KZT6,314.74 mln, or 26.8% relative to 1998, while cost of goods grew KZT1,715.72 mln, or 12.1%. Expenses of the period increased KZT305.13 mln, or 4.6%, of which: - interest expenses - KZT666.08 mln (111.8%); - sales expenses - KZT24.03 mln (21.6%); which was partially compensated by KZT384.97 mln, or 6.9% decrease in general and administrative expenses. However, as a result of more than 6 time increase (KZT3,479.11 mln) in losses from secondary activities, net income of "Kazakhtelecom" in 1999 reached KZT1,515.98 mln, KZT525.26 mln, or 25.7% decrease against 1998. Dynamics of sales and income of the company in 1999 are shown in the next table on quarterly non-accruing basis (in th. KZT): Indicator I-99 II-99 Change,% III-99 Change,% IV-99 Change,% ---------- ----- ------ -------- ------ -------- ----- -------- Sales 5,886 7,848 +33.3 7,596 -3.2 8,513 +12.1 Net income 1,265 -3,723 -394.3 1,068 +128.7 2,906 +172.0 ---------- ----- ------ -------- ------ -------- ----- --------