Panafon Hellenic Telecom Co S.A.
31 May 2000
PART 2
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors
of Panafon Hellenic Telecommunications Company S.A. and Subsidiaries
We have audited the accompanying consolidated balance sheets of
Panafon Hellenic Telecommunications Company S.A. and subsidiaries
(hereinafter called 'the Company') as of 31 March 2000 and 31 March
1999 and the related consolidated statements of income,
shareholders' equity and cash flows the year ended 31 March 2000 and
for the fifteen month period ended 31 March 1999. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with International Standards
on Auditing. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statements presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of the
Company as of 31 March 2000 and 31 March 1999 and of the results of
its operations and its cash flows for the year ended 31 March 2000
and for the fifteen month period ended 31 March 1999 in accordance
with International Accounting Standards.
May 26, 2000
Athens, Greece
DELOITTE & TOUCHE
PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2000
AND 31 MARCH 1999 (IAS)
31 March
1999
(In thousands of Greek Drachma)
ASSETS
Non-Current Assets
Network infrastructure, net 146,725,405 115,558,898
Cellular license, net 19,637,564 21,204,022
Fixed and other assets, net 16,406,547 8,979,132
Goodwill 4,484,550 4,932,861
Trademark 3,154,945 -
Investments in associates 7,693,047 1,211,462
Investments 1,200,000 1,200,000
Deferred income taxes 967,397 475,192
-------- -------
Total Non-Current Assets 200,269,455 153,561,567
------- -------
Current Assets
Inventories 3,065,524 3,302,641
Prepaid rent and other current 4,986,664 2,557,278
assets
Related companies 331,766 1,704,417
Accounts receivable, net 42,093,137 40,548,864
Cash and cash equivalents 1,044,013 578,690
------- -------
Total Current Assets 51,521,104 48,691,890
------- -------
TOTAL ASSETS 251,790,559 202,253,457
======= =======
PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2000
AND 31 MARCH 1999 (IAS)
31 March 31 March
2000 1999
(In thousands of Greek Drachma)
LIABILITIES & SHAREHOLDERS'
EQUITY
Shareholders' Equity
Share capital 51,250,000 25,625,000
Reserves 12,492,592 5,076,081
Retained earnings 38,297,581 29,581,889
------- -------
Total Shareholders' Equity 102,040,173 60,282,970
------- -------
Commitments and Contingencies - -
Long-Term Liabilities
Deferred income taxes - 428,804
Provision for retirement benefits 697,584 508,578
------- -------
Total long-term liabilities 697,584 937,382
------- -------
Current Liabilities
Accounts payable 28,987,046 13,476,948
Short-term borrowings from related 63,900,000 79,700,000
company
Related companies - 377,852
Taxes other than income 1,972,284 2,804,255
Income taxes payable 20,422,271 18,347,234
Dividends payable 19,013,892 16,912,500
Deferred revenue 8,125,289 3,146,638
Other current liabilities 6,632,020 6,267,678
------- -------
Total Current Liabilities 149,052,802 141,033,105
------- -------
Total Liabilities 149,750,386 141,970,487
------- -------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY 251,790,559 202,253,457
======= =======
PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEAR ENDED 31 MARCH 2000
AND FOR THE FIFTEEN MONTH PERIOD ENDED 31 MARCH 1999 (IAS)
Year Fifteen months
ended(*) ended(*)
31 March 31 March
2000 1999
(In thousands of Greek Drachma
except share numbers and per share
data)
Revenues 270,086,646 259,136,104
Cost of sales (122,663,799) (123,754,023)
------- -------
Gross profit 147,422,847 135,382,081
Selling, general and administrative (53,119,236) (48,713,208)
expenses
------- -------
Operating income 94,303,611 86,668,873
Interest Income/(Expense)
Interest income 88,799 375,101
Interest expense (7,616,192) (10,766,853)
------- -------
Net interest expense (7,527,393) (10,391,752)
------- -------
Equity in earnings of associated
companies 729,623 109,896
------- -------
Income before income taxes 87,505,841 76,387,017
Income tax expense (31,343,227) (26,887,845)
------- -------
Net income 56,162,614 49,499,172
======= =======
Earnings per share (GRD) 109.59 96.58
======= =======
Dividends per share (GRD) 37.00 33.00
======= =======
Common shares outstanding 512,500,000 512,500,000
======= =======
(*) During 1998, the Company changed its statutory year end from
December 31 to March 31. The 31 March 1999 figures therefore
represent a fifteen month period while the 31 March 2000
figures represent a twelve month period.
PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH
2000 AND FOR THE FIFTEEN MONTH PERIOD ENDED 31 MARCH 1999 (IAS)
Year ended(*) Fifteen months
ended(*)
(In thousands of Greek Drachma) 31 March 31 March 1999
2000
Cash flows from operating activities:
Net income 56,162,614 49,499,172
Adjustments to reconcile to net cash provided
by operating activities 21,533,419 20,958,732
Changes in operating assets and liabilities:
Total changes in operating assets and 18,199,003 (18,926,167)
liabilities
------- -------
Net cash provided by operating activities 95,895,036 51,531,737
------- -------
Cash flows from investing activities:
Capital expenditures (57,708,056) (55,092,379)
Investment (3,300,000) (1,200,000)
Investment in associates (1,856,578) (6,644,721)
Dividends received 96,029 178,682
------- -------
Net cash utilized in investing activities (62,768,605) (62,758,418)
------- -------
Cash flows from financing activities:
Proceeds /(repayments) from short-term
borrowings (15,800,000) 57,864,649
Repayment of long-term debt - (33,500,000)
Dividends paid (16,861,108) (22,378,400)
------- -------
Net cash provided by/(utilized in) financing
activities (32,661,108) 1,986,249
------- -------
Net (decrease)/increase in cash and cash
equivalents 465,323 (9,240,432)
Cash and cash equivalents at beginning of 578,690 9,819,122
period
------- -------
Cash and cash equivalents at end of period 1,044,013 578,690
======= =======
(*) During 1998, the Company changed its statutory year end from
December 31 to March 31. The 31 March 1999 figures therefore
represent a fifteen month period while the 31 March 2000 figures
represent a twelve month period.
MORE TO FOLLOW
FRCIIFLDEFILVII