24.02.2004 Moscow
Svyazinvest (hereinafter referred to as the Company) held a Board of Director’s meeting on February 19, 2004, which was attended by:
L.D. Reiman – Minister of Communications of the Russian Federation;
B.D. Antonyuk – first deputy Communications Minister of the Russian Federation;
A.V. Anoshkin – assistant to the presidential administration;
David J. Geovanis – representative of Mustcom Limited;
S.V. Mitrofanov – deputy general director of FAPSI – head of the main administrative department;
Stewart J. Paperin – executive vice president of the Soros Charity Fund;
V.P. Fatikov – deputy chairman of the Russian Property Fund.
The main items on the agenda included an examination of issues associated with the annual general shareholders meeting, approval of the company’s financial and business targets for 2004 and an analysis of key performance indicators of North West Telecom.
The Board of Directors passed the following resolutions at the end of the meeting:
1. To include the following issues on the agenda of the upcoming AGM, as proposed by shareholders:
- to approve the Company’s annual financial statement;
- to approve the annual accounting reports, including the P&L statement;
- allocation of the Company’s 2003 profits;
- the size, schedule and form of 2003 dividend payouts;
- to elect the board of directors (monitoring council) of the Company;
- to elect the audit committee (auditor) of the Company;
- to approve the Company’s auditor;
- to approve the new version of the Company’s charter.
2. To approve the list of nominees proposed by shareholders for the board of directors of Svyazinvest.
1. Alexander Vasilyevich Anoshkin
2. Boris Dmitrievich Antonyuk
3. Sergei Yurevich Vyazalov
4. Andrei Stepanovich Kigim
5. Leonid Dodozhovich Reiman
6. Vadim Alexeievich Stepanov
7. Gennady Gavrilovich Tolulenko
8. Valery Pavlovich
9. Andrei Vladimirovich Sharonov
10. StewartJ. Paperin
11. David Geovanis
12. Grigory Moiseyevich Finger
3. To nominate the following candidates for voting as members of the Audit Committee of Svyazinvest:
1. SergeiAlexandrovichGribov
2. OlgaNikolayevaKurnosova
3. LyubovStepanovaTimoshenko
4. To approve the following financial and business targets for the company’s 2004 activity*:
· revenues from core activity – Rub 166.4 bln (a 24.7% rise against 2003);
· gross revenue – Rub 171.6 bln (a 24.3% rise against 2003);
· expenses incurred on core activity within Rub 126 bln (a 28% rise against 2003).
· sales revenue of Rub 45.7 bln (a 28% rise against 2003).
For the record
Svyazinvest holding includes seven super-regional telecom companies – Center Telecom, North West Telecom, Volga Telecom, Southern Telecom, Uralsvyazinform, Siberia Telecom, Far East Telecom and Siberia Telecom, as well as national LD and ILD operator Rostelecom, and six telecom operators which did not take part in the nationwide merger process, plus industry research institute Giprosvyaz. The holding’s companies hold licenses and provide local, LD and ILD telephone services, data transmission, Internet access, ISDN, wireless subscriber access and mobile communication in GSM, NMT-450, AMPS and DAMPS standards. The staff of Svyazinvest numbers over 350,000.
The 2003 results of Svyazinvest can be summarized as follows (estimated figures) *:
- revenues from core activity – Rub 133.4 bln (a 25.8% rise against 2002);
- gross revenue – Rub 138 bln (a25.3% rise);
- expenses incurred on core activity – Rub 102.4 bln (a 29.3% rise)
- sales profit Rub 35.7 bln (a 22.9% rise).
