Heyrumst! Eiríkur S. Jóhannsson Árni Pétur Jónsson Gunnar Smári Egilsson Viðar Þorkelsson Interim financial statements of Og fjarskipti hf. Third quarter of 2005
Heyrumst! Agenda Consolidated financial overview Interim consolidated financial statements at September 30th, 2005 Analysis of each entity of the group by sector – telecommunication and media Principal tasks for Media - the media sector Principal tasks for Og Vodafone - the telecommuncation sector Dagsbrún Forecast for 2005 and the future
Heyrumst! Consolidated financial overview – Q1-Q Pretax-profit ISK 673 million Net profit ISK 554 million Consolidated EBITDA of ISK mill. or 21,3% of total revenues Sales ISK million Growth in sales of 115% from Q1-Q By including revenues from the media sector in Q1-Q then the growth in sales is ISK million or 21,3% Cash from operations excluding interest is ISK million Investments in fixed assets is ISK 828 million Financial outcome is in accordance with budget
Heyrumst! Consolidated Financial Statements September 30th, 2005
Heyrumst! Consolidated Income Statement Growth in Income Revenues increase by 115% between Q1-Q3 05 and Q1-Q ,3% increase when the media sector is taken into account in Q1-Q Cost of services sold An increase of 136% Contribution margin The contribution margin is 39% for the first 9 months of 2005 compared to 45% the first 9 months of Operating expenses An increase of 93% Associates Operating results improving in Q3 In thousands ISK9 months months 2004Variance Sales Cost of services sold Contribution margin Other operating revenues Operating expenses Operating income Net financial expense Share of loss of affiliated companies Pre-tax profit Income tax Net profit
Heyrumst! Consolidated Balance Sheet Total assets Increase because of investment in P/F Kall and growth in cash due to sale of treasury stock Accounts Receivable ISK 75 million increase due to investment in P/F Kall In thousands ISK Variance Assets Fixed assets Current assets Accounts receivable Non- entered services Total assets
Heyrumst! Consolidated Balance Sheet Stockholders´ equity Increases due to increase in retained earnings and sold treasury stock Current liablities Have decreased since the refinancing was concluded in the beginning of 2005 Interest bearing debt less cash and cash equivalent Amounts to ISK million Current Ratio 0,95 and has increased from year-end 2004 when it was 0,66 In thousands ISK Variance Liablilities and Stockholders´ Equity Stockholders´ equity Liabilities Long term liabilities Current liabilities Total Liabilities TOTAL LIABILITIES AND STOCKHOLDERS´ EQUITY
Heyrumst! Consolidated Cash Flow CASH PROVIDED FROM OPERATIONS Amounted to ISK million or an increase of ISK 436 mill between years INVESTMENT ACTIVITIES Investments in fixed assets of ISK 828 million Investments in intangibles are ISK 148 million of which ISK 109 million are due to software and licensing In thousands ISK9 months months 2004 Net earnings according to Income Statement Adjustments for non-cash items Depreciation / amortization Gain on the sale of fixed assets Changes in operating assets and liabilities CASH PROVIDED FROM OPERATION EXCLUDING FINANCIAL ITEMS Received interest revenues Paid interest expense NET CASH PROVIDED FROM OPERATION INVESTING ACTIVITIES FINANCING ACTIVITIES Cash and cash equivalent at the end of the period
Heyrumst! Sales itemized by services Q1-Q3 2005
Heyrumst! EBITDA - consolidated 528 Irregular revenues and cost are exempt in this presentation. EBITDA grows by 55% from Q to Q3 2005
Heyrumst! Net profits – development in million ISK
Heyrumst! Segment reporting – Q1-Q Og Vodafone P/F Kall365 MediaEliminationConsolidated Sales Cost of services sold Contribution margin Other operating revenue Operating expenses Operating profit before financing items and taxes (EBIT)
Og Vodafone Telecommunication sector
Heyrumst! Financial overview - Telecommunication Sales are recorded at ISK million in Q1-Q A 15% increase in sales from Q1-Q or ISK 771 million EBITDA in Q1-Q is ISK million and increases by 15% for the same period last year EBITDA ratio is 27% of total revenues in Q1-Q compared to 27,0% in Q1-Q Investments in fixed assets is ISK 541 million Sales are recorded at ISK million in Q A 16,7% increase in sales from Q or ISK 297 million EBITDA in Q is 554 million and increases by 23% from Q EBITDA ratio is 27% of total revenues in Q compared to 26,2% in Q3 2004
Heyrumst! Sales itemized by services – Q1-Q3 2005
Heyrumst! Mobile 15% increase Fixed line 9% increase Data transfer 50% increase Quarterly revenues itemized by services – Og Vodafone
Heyrumst! Cost of services sold – as percentage of sales
Heyrumst! Contribution margin – as percentage of sales
Heyrumst! Operating expenses – as percentage of sales
Heyrumst! * Irregular one-time expense is exluded in Q Salaries and related expenses* - as a percentage of sales
Heyrumst! Note Irregular revenues and costs are excluded in this presentation of EBITDA. EBITDA EBITDA decreases slightly between years or from 29,6% in Q to 26,8% in Q This is due to temporary increase in operation costs because of organisational changes and rising sales and marketing activities. EBITDA – as a percentage of total revenues Regular operations ISK 528 m. ISK 554 m.
Heyrumst! Sales revenue ISK 170 million in Q3 EBITDA in Q3 ISK 33 million EBITDA ratio 19,4% in Q3 Operations according to plans in Q3 P/F Kall, The Faeroe Islands
365 Media The media sector
Financial overview Media Total sales in Q1-Q were ISK million Increase in revenues is 26,5% from Q1-Q Print 43% Broadcasting 17% EBITDA Q1-Q is ISK 685 million EBITDA ratio in Q1-Q was 14% Investments in fixed assets is ISK 277 million in Q1-Q Total sales in Q were ISK million and increased by ISK 372 million from Q or 29% EBITDA in Q was ISK 224 million but was ISK 226 million in Q EBITDA ratio in Q was 13,4% compared to 13.7% in Q2 2005
Growth in sales An increase of 26% Q and Q broadcasting – sales trendline
Growth in sales An increase of 32% Q and Q print – sales trendline
Heyrumst! Cost of services sold – as a percentage of sales
Heyrumst! Contribution margin – as a percentage of sales
Heyrumst! Operating expenses – as a percentage of sales
Heyrumst! Note Irregular revenues and cost are excluded in this presentation of EBITDA EBITDA – as a percentage of total revenues
Heyrumst! Overview of 365 Media
Heyrumst! Main projects in Q3 – 2005 Media Re-organization of the news department of the broadcasting media New News channel The acquisition of the production company Saga Film and merger with Storm Sirkus – development of new concept for the younger generation Veggfóður
Heyrumst! Overview of Og Vodafone
Heyrumst! Simple management Technical divisionMarketing division Sales & customer care Administration & human resources CEO Creates, adjusts and maintains the technology that we rely upon Creates and maintains the image and provokes the customers interest in us and our products Creates and maintains good culture, ensures practical and efficient operation. Supports the staff in their daily work Sells our products and services and holds on to our customers by good after-sales services. Árni Pétur Jónsson Gestur G GestssonÓmar SvavarssonBjörn VíglundssonHrönn Sveinsdóttir
Heyrumst! Main projects in Q3 – 2005 Og Vodafone Introduction of new projects for Companies Advances on the market through the TV-show Idol Cooperation with Vodafone insures accessibility to the latest products, both to individuals and companies New prepaid system in use A new survey from “Sigos” reveales that roaming abroad is of excellent quality at Og Vodafone Payoff from systematic work in preceding months The bandwidth to foreign countries doubled in Q3 Introduction of new projects for the individual market in preparation
Heyrumst!
2006 We have started to look towards the year 2006 Review of the Company’s policy formulation has begun Important issues of 2006 have been defined in co-operation with Vodafone The Company aims at rationalization in operations The Company as a hole is contemplating furter advances on the domestic market
Heyrumst! Dagsbrún hf. Dagsbrún will own and operate entities that compete in the telecommunication, news and entertainment sectors and related sectors The parent company will put emphasis on expansion and growth both domestically and abroad Several investment opportunities are being considered, both in listed aswell as unlisted companies. Ownership in P/F Kall is now 100% Dagsbrún will be able to invest for up to ISK 15 billion according to authorised increase in stockholder’s equity (ISK million par value)
Financial forecast and the future
Heyrumst! Forecasted financial outcome 2005 Consolidated Turnover for 2005 is predicted to be ISK – million EBITDA for the year 2005 is expected to fall in the range of ISK to million The Company aims to double its operational activities in the next months
Heyrumst! Thank you