28th Jun 2006 07:01
Telecom Egypt S.A.E28 June 2006 Review Report To The Board of Directors of Telecom Egypt We have reviewed the accompanying consolidated balance sheets of Telecom Egyptas of 31 March, 2006 and the related consolidatedstatements of income, changes in the shareholders' equity and cash flows for theperiod then ended. These financial statements are the responsibility of theCompany's management. Our responsibility is to issue a report on theseconsolidated financial statements based on our review. We conducted our review in accordance with International Standards on ReviewEngagements 2400. This standard requires that we plan and perform the review toobtain moderate assurance as to whether the financial statements are free ofmaterial misstatement. A review is limited primarily to inquiries of companypersonal and analytical procedures applied to financial data and thus providesless assurance than an audit. We have not performed an audit and, accordingly,we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believethat the accompanying financial statements are not presented fairly, in allmaterial respects in accordance with International Financial ReportingStandards. KPMG Hazem Hassan Cairo, EgyptJune 24, 2006 Telecom Egypt Consolidated balance sheets As at 31 March 2006 In thousands of Egyptian Pound Note 31/3/2006 31/12/2005 Assets Property, plant and equipment (13) 22 038 440 22 344 238 Intangible assets (14) 146 846 126 769 Investment in associates (15) 1 495 585 1 540 721 Available for sale investments (16) 88 491 88 382 Long-term receivable (17) 1 192 973 1 525 773 Deferred tax assets (18) 112 015 109 130Total non-current assets 25 074 350 25 735 013 Inventories (19) 464 542 494 776 Trade and other receivables (20) 4 506 719 4 164 708 Investments held for trading 1 003 - Cash and cash equivalents (21) 1 219 402 768 016Total current assets 6 191 666 5 427 500Total assets 31 266 016 31 162 513 Equity Issued capital (22) 17 070 716 17 070 716 Reserves (22) 4 152 894 3 409 882 Retained earnings 576 929 1 666 803Total equity attributable to equity holders of the parent 21 800 539 22 147 401 Minority interest 31 807 22 031 Total equity 21 832 346 22 169 432 Liabilities Interest-bearing loans and borrowings (24) 1 694 975 1 786 167 Bonds payable (25) 2 000 000 2 000 000 Deferred income 257 327 266 254 Other payables 56 806 56 459 Deferred tax liabilities (18) 174 307 170 402Total non-current liabilities 4 183 415 4 279 282 Bank overdraft (21) 23 735 158 474 Interest-bearing loans and borrowings (24) 672 233 919 473 Trade and other payables (26) 3 813 797 2 900 489 Provisions (27) 740 490 735 363Total current liabilities 5 250 255 4 713 799Total liabilities 9 433 670 8 993 081Total equity and liabilities 31 266 016 31 162 513 Chairman Deputy Chairman for Head of the Financial & Commercial Financial Sector Eng. / Akil Beshir Acc./ Ali Salama Acc./ Ali Barakat Auditor's limited review report "attached" Telecom Egypt Consolidated income statements For the financial period ended 31 March 2006 For The Period From 1/1/2006 From 1/1/2005 To 31/3/2006 To 31/3/2005 In thousands of Egyptian Pound Note Revenue (3) 2 180 163 2 013 040Operating expenses (4) (1 315 596) (1 333 704)Gross profit 864 567 679 336 Other income (5) 21 031 39 474Selling and distribution expenses (6) (58 035) (34 093)Administrative expenses (7) (219 559) (184 770)Other expenses (8) (38 522) (14 252)Operating profit before financing costs 569 482 485 695 Financial income (10) 67 708 288 899Financial expenses (10) (106 117) (109 437)Net financing (costs) income (10) (38 409) 179 462 Share of profit in associates 107 865 39 525Profit before tax 638 938 704 682 Income tax expense (11) (131 923) (211 201) Profit for the period 507 015 493 481 Attributable to: Equity holders of the parent 506 407 492 703 Minority interest 608 778Profit for the period 507 015 493 481 Earnings per share (LE) (23) 0.30 0.29 Telecom Egypt Consolidated statement of cash flows For the financial period ended 31 March 2006 For The PeriodIn thousands of Egyptian Pound Note From 1/1/2006 From 1/1/2005 To 31/3/2006 To 31/3/2005 Cash flows from operating activitiesCash receipts from customers 1 710 673 1 818 649Cash paid to suppliers (212 373) (247 765)Cash paid to employees (305 349) (331 869)Cash proceeds (paid) in operations (net) 92 655 (398 436)Interest paid (96 937) (173 335)Income taxes paid - (2 790)Net cash from operating activities 1 188 669 664 454 Cash flows from investing activitiesProceeds from sale of investments - 88 294Interest received 8 662 2 391Dividends received 154 207 76 801Acquisition of property, plant and equipment and intangible assets (346 231) (401 052)Acquisition of investments (1 000) (627 548)Net cash (used in) investing activities (184 362) (861 114) Cash flows from financing activitiesRepayment of borrowings & facilities relating to acquisition of (174 240) (264 895)property, plant and equipment and intangible assetsRepayment of borrowings & facilities relating to others - (1 414 608)Repayment of borrowings & bank facilities (201 832) (529 773)Proceeds from bonds - 2 000 000Proceeds from loans - 29 531Proceeds from issuance of capital-subscribed into by minority 9 615 -Repayment of financial lease obligations (11 358) (6 001)Dividends paid (39 935) -Repayment of long-term liabilities (346) -Net cash (used in) financing activities (418 096) (429 502) Net movement in cash and cash equivalents 586 211 (626 162)Cash and cash equivalents at 1 January 609 542 1 104 558Translation difference adjustments (86) (180)Cash and cash equivalents at 31 March (21) 1 195 667 478 216 Telecom Egypt Consolidated statement of changes in equity For the financial period ended 31 March 2006 Total equity attributable Fair to equity Note Share Statutory Other Translation value Retained holders of Minority Total No capital reserve reserve reserve reserve earnings the parent interest equity In thousands of Egyptian Pound Balance at 1 17 112 149 322 347 2 595 983 (34) 398 645 578 801 21 007 891 17 940 21 025 831January 2005 Net profit for - - - - - 1 929 985 1 929 985 2 754 1 932 739the year Transfer to reserves - 51 390 410 014 - - (461 404) - - - Reversal of reserve - - - - (398 645) - (398 645) - (398 645) Effect of the (22) (41 433) - 30 197 - - - (11 236) - (11 236)resolution of the Extraordinarygeneral assembly held on September 21, 2005 Exchange - - - (44) - 62 18 (6) 12differences arising on translation offoreign operation Transfer from - 29 - - - 455 484 (484) -minority interest Minority interest - - - - - - - 2 661 2 661share in capital Dividends to - - - - - (381 000) (381 000) - (381 000)shareholders Employees & members - - - - - (96) (96) (92) (188)Board bonus insubsidiaries Minority interest - - - - - - - (742) (742) Balance at 31 17 070 716 373 766 3 036 194 (78) - 1 666 803 22 147 401 22 031 22 169 432December 2005 Net profit for - - - - - 506 407 506 407 608 507 015the period Transfer to - 93 064 650 000 - - (743 064) - - -reserves Exchange differences - - - (24) - - (24) (1) (25)arising on translationof foreign operation Minority interest - - - - - - - 9 615 9 615share incapital increase ofsubsidiary company Dividends to - - - - - (853 536) (853 536) - (853 536)shareholders Adjustments to - - - - - (79) (79) (76) (155)retained earnings Transferred to - - - (28) - 28 - - -retained earnings Minority interest - - - - - 370 370 (370) - Balance at 31 17 070 716 466 830 3 686 194 (130) - 576 929 21 800 539 31 807 21 832 346March 2006 To access the accompanying notes to these financial statements from No. (1) toNo. (33) please copy and paste the following link into your web browser: http://www.rns-pdf.londonstockexchange.com/rns/2566f_-2006-6-27.pdf END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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