1. Eiríkur S. Jóhannsson Gunnar Smári Egilsson Viðar Þorkelsson
Interim financial statement of Og fjarskipta hf. Second quarter of 2005
Eiríkur S. Jóhannsson
Gunnar Smári Egilsson
Viðar Þorkelsson

2. Agenda Consolidated financial overview
An interim consolidated financial statement June 30th, 2005
Analysis of each entity of the corporation by sector – telecommunication and media
Principal tasks for Og Vodafone - the telecommuncation sector
Principal tasks for media the media sector
Reorganization – a new organization chart
Updated forecast for 2005 and the future

3. Consolidated financial overview – 1H 2005
Profit before income tax ISK 401 mill.
Net profit ISK 321 mill.
Consolidated EBITDA of ISK mill. or 21,1% of total revenues
Sales of ISK mill.
Growth in sales of 113% from 1H 2004
By including revenues from the media sector in 1H 2004 then the growth in sales is ISK mill or 18%
Cash from operations excluding interest is ISK mill
Investments in fixed assets is ISK 563 mill
Financial outcome is in accord with budget

4. Consolidated financial statement June 30th, 2005

5. Consolidated Income statement
Growth in Income
Revenues increase by 113% between 1H04 and 1H05
18% increase when the media sector is taken into account in H1 2004
Cost of services sold
An increase of 130%
Contribution margin
The contribution margin is 39% the first 6 months of 2005 compared to 44% the first 6 months of 2004.
Operating expenses
An increase of 97%
In thousands ISK
6 months 2005
6 months 2004
Variance
Sales
Cost of services sold
Contribution margin
Other operating revenues
48.862
77.524
Operating expenses
Operating income (-loss)
Financial income (– expense)
Share of loss of affiliated companies
Profit (-loss) before income tax
Income tax
Net profit (-loss)
99.492

6. Consolidated Balance Sheet
In thousands ISK
Variance
Assets
Fixed assets
Current assets
Accounts receivable
-805
Non- entered services
89.333
Total assets
Fixed assets
Decrease slightly due to the depreciation of fixed assets
Accounts Receivable
No changes between periods

7. Consolidated Balance Sheet
Stockholders´ equity
Increases due to increase in retained earnings
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 mill.
Current Ratio
0,92 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
75.379
TOTAL LIABILITIES AND STOCKHOLDERS´ EQUITY

8. Consolidated Cash Flow
In thousands ISK
6 months 2005
6 months 2004
Net earnings (-loss) 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
86.028
38.238
Paid interest expense
NET CASH PROVIDED FROM OPERATION
INVESTING ACTIVITIES
FINANCING ACTIVITIES
35.676
Cash and cash equivalent at the end of the period
CASH PROVIDED FROM OPERATIONS
Amounted to ISK mill or an increase of ISK 557 mill between years
INVESTMENT ACTIVITIES
Investments in fixed assets of ISK 563 mill.
Investments in intangibles are ISK 93 mill.of which ISK 68 mill are due to vegna licensing

9. Sales itemized by services H1 2005

10. EBITDA - consolidated
Irregular revenues and cost are exempt in this presentation. EBITDA grows by 64% from Q to Q2 2005
528

11. Net profits – devlopment in million ISK

12. Segment reporting – H1 2005 Og Vodafone 365 media Elimination
Consolidated
Sales
Cost of services sold
Contribution margin
Other operating revenue
48.489
373
48.862
Operating expenses
60.751
Operating profit before inerests and taxes (EBIT)

13. Og Vodafone Telecommunication sector

14. Overview Telecommunication
Sales are recorded at ISK mill. in H1 2005
A 14,5% increase in sales from H or ISK 464 mill.
EBITDA in H is ISK mill. and increases by 19% for the same period last year
EBITDA ratio is 27% of total revenues in H compared to 26% in H1 2004
Investments in fixed assets is ISK 382 mill.
Sales are recorded at ISK mill. in Q2 2005
A 14,5% increase in sales from Q or ISK 246 mill.
EBITDA in Q er 526 mill. and increases by 14,6% from Q2 2004
EBITDA ratio is 26,7% of total revenues in Q compared to 26,9% in Q2 2004

15. Sales itemized by services - H1 2005

16. Quarterly revenues itemized by services – Og Vodafone
Mobile
11% increase
Fixed line
-0,1% decrease
Data transfer
50% increase

17. Cost of services sold – as percentage of sales

18. Contribution margin – as percentage of sales

19. Operating expenses – as percentage of sales

20. Salaries and related expenses* - as a percentage of sales
* Irregular one-time expense is exluded in Q3 2004

21. EBITDA – as a percentage of total revenues
Note
Irregular revenues and costs are excluded in this presentation of EBITDA.
EBITDA
EBITDA decreases slightly between years or from 26,9% in Q to 26,7% in Q
459 m.kr.
526 m.kr.
459 m.kr.

22. 365 media The media sector

23. Overview Media Total sales in H1 2005 were ISK 3.308 mill.
Increase in revenues is 25,5% from H to H1 2005
Print 49%
Broadcasting 13%
EBITDA H is ISK 453 mill.
EBITDA ratio in H was 14%
Investments in fixed assets is ISK 181 mill in H1 2005
Total sales in Q were ISK mill. and increased by ISK 356 mill. from Q or 27%
EBITDA in Q was ISK 226 mill. but was ISK 227 in Q1
EBITDA ratio in Q was 13,7% but was 14,2% in Q1 2005

24. 365 broadcasting – sales trendline
Growth in sales
An increase of 13%
Q and Q2 2004

25. 365 print – sales trendline
Growth in sales
An increase of 49%
Q and Q2 2004

26. Cost of services sold – as a percentage of sales

27. Contribution margin – as a percentage of sales

28. Operating expenses – as a percentage of sales

29. EBITDA – as a percentage of total revenues
Note Irregular revenues and cost are excluded in this presentation of EBITDA.
EBITDA EBITDA remains constant between quarters, 1Q05 vs 2Q05

30. Main projects in Q2 – 2005 Media
New financial weekly periodical – “Markaðurinn” (the market)
WebTV
Sirkus – new “concept” for media
Re-organization of the news department in broadcasting
New News channel
The acquisition of the production company Saga Film

31. Main projects in Q2 – 2005 Og Vodafone
The acquisition of P/F Kall in the Faroe Islands
Marketing of a new comprehensive service Og1
New data network – Metro net in cooperation with OR
“Mobile Connect Card” from Vodafone Group
a data card for laptops
Implementation of a new prepaid system
Continuous build up of the mobile network
GPRS national roaming agreement with Síminn
Additional international roaming agreements – f.ex. Camel agreements
Upgrading of the ADSL network

32. Organizational changes

34. Dagsbrún hf.
Dagsbrún will own and operate entities that compete in the telecommunication, news and entertainment sectors
The parent company will put more emphasis on expansion and growth both domestically and abroad
Dagsbrún aims to be an international telecommunication and media corporation
The company aims to double its operational activities in the next months
Finance and financing activities will be carried out in the parent company servicing the subsidiaries
The new organizational chart is intended to add value for shareholders, customers and employees

35. Financial forecast and the future

36. Updated forecasted financial outcome 2005 Consolidated
Turnover for 2005 has been updated and is predicted to be ISK – mill.
EBITDA for the year 2005 is expected to fall in the range ISK to mill.
An additional investment in a new data network (EDGE) is planned ISK 250 mill.
The company aims to double its operational activities in the next months