Auditor's report on financial statements of Kazakhtelecom JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, April 5, 05/ - Kazakhtelecom JSC (Astana), whose securities are circulating in Kazakhstan stock exchange's (KASE) "А" listing category, has presented KASE auditor's report prepared by Deloitte (Almaty) on the company's financial statements for 2004 reported in compliance with Kazakhstan Accounting Standards (KAS). Following describes company's results and financial position for the period that ended December 31, 2004 (in KZT th. unless otherwise stated) --------------------------------------------------------------------------- Indicator 2003 2004 ------------------------------------------------- ----------- ----------- Authorized capital (paid minus withdrawn) 9,483,669 9,483,669 Shareholders' equity 62,962,214 86,614,350 Total assets 106,789,175 127,195,609 Net working capital 2,304,477 9,433,910 Accounts receivable (net) 14,431,976 17,524,206 Liabilities, total 43,826,961 40,581,259 Borrowed loans (excl bonds) 25,345,120 26,936,261 Floated bonds 3,605,500 - Accounts payable 9,720,846 7,284,484 Service fees 65,880,642 80,096,397 Cost of rendered services 37,940,746 45,567,321 Net profit 17,827,279 26,917,572 ------------------------------------------------- ----------- ----------- It's been calculated according to auditor's data: ------------------------------------------------- ----------- ----------- Return on sales (ROS), % 42.41 43.11 Return on equity (ROE), % 28.31 31.08 Return on assets (ROA), % 16.69 21.16 Book value of one share, KZT 5,559.05 7,647.34 Earnings per share (EPS), KZT 1,621.03 2,453.26 Price earnings ratio (Р/Е) 2.20 2.80 --------------------------------------------------------------------------- Audit was preformed by Deloitte in compliance with International and Kazakhstan Standards on Auditing. The company has no significant in regards to financial statements daughter enterprises in which it maintained controlling stake. Long-term investments where Kazakhtelecom's stake exceeded 20% (GSM Kazakhstan LLP, Almaty, 49.0% of paid in chartered capital, Altel JSC, 50.0% of voting shares, Nursat CJSC 41.25% of voting shares) were accounted for by equity mehod. In the auditor's opinion the financial statements exactly in all essential aspects reflect financial position of Kazakhtelecom as of December 31 of 2004, results of its of financial and economic activity and cash flow for the year, which ended by the same mentioned date, in compliance with KAS. Company's primary activities - telephone, telegraph, TV and radio communication of all types. [2005-04-05]