Financial results for the fourth quarter and preliminary results for 2005

1
Financial results for the fourth quarter and
preliminary results for 2005
2
Financial results in brief. Q4
3
Preliminary results for 2005
4
Dynamics of net sales

• Majority of the growth (in absolute terms)
  resulted from mobile communications.
• Net sales of wholesale and retail trade had the
  fastest growth.
• Net sales of fixed voice communications were
  declining. Still, there was strong growth from
  Internet, IT and data communications.

5
Financial history. Eesti Telekom
Group(Discontinued operations excluded in 2004)

• 
  Acceleration of both revenue and OPEX
  growth resulted from two circumstances
• Acquisition of AS MicroLink and AS MicroLink
  Eesti in November 2005.
• Seasonal factors high sales of retail chains
  during the Christmas season.

6
Financial history. Eesti Telekom Group
(Discontinued operations excluded in 2004)

• Negative EBITDA growth of the first half of 2005
  turned into positive again during the second half
  of the year.
• The fourth quarter had traditionally weak
  margins.
• Annual EBITDA margin maintained its 2004 level.

7
Financial results in brief. Investments and
depreciation

• EMT Group invested less than usual in 2005
• Commercial launch of 3G in Tallinn was an
  important investment project
• All main towns are covered by EDGE-network.

• Majority of investments of the Elion Group went
  into development of their DSL-network
• In 2005 Elion started TV-transmission and made
  preparations for mass-market product in the area.
• IT-services was another important investment area.

8
Financial results in brief. Cash flow
Net debt of the Eesti Telekom Group fell down
from -1465 mEEK to -1667 mEEK during
2005 Almost 100 mEEK went into acquisition of
AS MicroLink, the largest IT-service provider in
Estonia In 2005 the Group had the highest ever
dividend payment
9
EPS and DPS

• Eesti Telekom does not have an official dividend
  policy.
• Dividends for 2005 will be decided by the AGM in
  May 2006

10
Results by business segments
11
Financial history. Elion Group(Excl.
discontinued operations in 2004)

• Starting with 1 November 2005, AS MicroLink and
  AS MicroLink Eesti belong to the Elion Group and
  have been fully consolidated.
• Strong growth of Internet revenues and increasing
  volumes of retail sales also contributed to the
  Q4 growth ratios.
• Year 2005 in total ended with small positive
  revenue growth for the fixed segment

12
Financial history. Elion Group (Excl.
discontinued operations in 2004)

• Despite the fact that additional revenues come
  from lower-margin areas, the Elion Group
  succeeded to maintain its margins in 2005

13
Fixed voice communications. Market shares
Market shares by call minutes have been stable
14
Elion Group. Customers

• The number of permanent Internet connections
  was up by 40 (Y-to-Y).
• Elion estimates its market share by number of
  permanent connections to be 53 among private
  individuals.
• Stable decline in number of main lines
  continued. The number of lines in use was down by
  17 thousand in 2005.

15
Elion Group. Revenues

• Decline of voice revenues continues. The share of
  voice into total revenues of the Elion Group has
  fallen from 45 in Q4 2004 to 35 in Q4 2005.
• Additional revenues from new business lines have
  compensated decline from the traditional ones.

16
Financial history. EMT Group

• Slow revenue growth of the first half of 2005
  accelerated again toward the end of the year.
• Acceleration has been supported by many factors
• Higher usage of traditional services
• Increasing popularity of mobile data services
• Good economic situation encouraging consumption
  (retail sales of equipment)

17
Financial history. EMT Group

• EMT Group has maintained its high EBITDA margins.
• Some decline in margins in Q4 was caused by
  seasonal factors.

18
Mobile communications. Market shares

Mobile penetration in Estonia exceeded 100 in
2005.

• EMT has continuously 47 market share by number
  of active SIM-cards.

19
AS EMT. Customers and ARPU

• Cumulative results of the mobile number
  portability were positive for AS EMT in 2005
• AS EMT has a strong position in the discount
  segment
• Decline in ARPU slowed down during 2005

20
AS EMT. Revenue

• EMT continues with very stable revenue
  structure
• The share of the mobile data revenues is up a
  bit on account of diminishing revenues from
  monthly fees.

21
Share price

• 23 December 2004 TeliaSonera increased its
  holding over 50.
• 4 February 2005 Preliminary results for 2004
  released.
• 22 April 2005 Q1 2005 results released.
• 22 April 2005 Proposal for 2004 profit
  distribution
• 2 June 2005 Dividend list was closed
• 15 July 2005 Q2 2005 results released
• 20 October 2005 Q3 2005 results released