Annual report of the open joint-stock company north-west telecom for the year 2008 (стр. 12 )

CJSC PTT (100% in the authorized capital)

CJSC PTT provides the full range of telecommunication services for communication operators and retail clients in St. Petersburg and Leningrad Oblast. The key area of CJSC PTT's activities is the organization of transit connections for stationary, cellular and other communication networks. Proceeds for the year 2008 amounted to 894,156,000 roubles, EBITDA to 205,597,000 roubles, and the EBITDA margin reached 23%. The net profit for 2008 amounted to 35,542,000 roubles.

LLC Novgorod Datacom (100% in the authorized capital)

LLC Novgorod Datacom provides data transmission services and dedicated Internet access services in Novgorod Oblast. There were 29,500 subscribers of the dedicated Internet access, and the absolute increase for 2008 amounted to about 10,400 clients. The company is a progressive and stable supplier of telecommunication services in the region. The company's key financial indices of the year 2008 show a sustainable growth: the proceeds made 132,640,000 roubles, which is 37% higher than in 2007, EBITDA amounted to 48,267,000 roubles, and the EBITDA margin strengthened to 36.4%. The net profit was 34,242,000 roubles, which is 54% higher than in the previous year.

LLC Parma-Inform (100% in the authorized capital)

LLC Parma Inform is a data transmission network and telematic services node operator working in the Republic of Komi. The key clients are state organizations and big business. Starting from 2008 the company has been building "home networks" in the city of Syktyvkar (under the SKS Metro trade mark). Proceeds for the year 2008 amounted to 65,429,000 roubles, EBITDA to 20,195,000 roubles, and the EBITDA margin reached 31%. The net profit for 2008 amounted to 13,612,000 roubles.

OJSC Kolatelecom (50% in the authorized capital)

OJSC Kolatelecom provides the services of broadband cable TV and Internet access via Cable TV channels in Murmansk. There were 7,900 subscribers of the dedicated Internet access as of the end of 2008, and the absolute increase for 2008 amounted to about 1,600 clients. The proceeds made 80,402,000 roubles in 2008, which is 24% higher than in the previous year, the profit from sales amounted to 2,424,000 roubles, EBITDA 7,525,000 roubles and the EBITDA margin 9.3%. A serious foreign currency debt has not made it possible for the company to get a profit; because of the negative currency exchange differences, the loss amounted to 8,482,000 roubles.

CJSC WestBalt Telecom (28% in the authorized capital)

CJSC WestBalt Telecom provides the complete range of public network communication (local, long-distance and international) services in Kaliningrad, as well as Internet services (ByteCity trademark) and access to centres of data transmission services and telematic services. The bulk of the clientele are the population and small business. According to the results of 2008, the proceeds of the company amounted to 296,307,000 roubles, which was 2% more than in 2007, and the net profit made 53,279,000 roubles.

SECURITIES

Table 34. Basic information on OJSC N. W. Telecom's shares

	As of 31st December 2008
Value of shares at MICEX (closing price, roubles)
Common shares	6.239
Preferred shares	5.32
Trading volume at MICEX (per year, million pcs.)
Common shares	136
Preferred shares	134
Market capitalization (million roubles)	6,828
Weight of shares in indices, the calculation of which includes OJSC N. W. Telecom's shares
MICEX - Telecom Common shares	6.44
RTS-Telecom (RTStl) (%)
Common shares	6.82
Preferred shares	3.88
RTS Common shares (%)	0.15
RTS – 2 (%)
Common shares	1.41
Preferred shares	0.8
MSCI Russia Small Cap (%)
Common shares	7
Preferred shares	7
Number of placed shares (pcs.)
Common shares	881,045,433
Preferred shares	250,369,337
Face value of common and preferred shares	1 rouble
Amount of the authorized capital (roubles)	1,131,414,770
Number of declared shares (pcs.)
Common shares	6,098
Preferred shares	32,486
Dividend per share (roubles)
Common shares	0.207*
Preferred shares	1.291*
Volume of issued ADRs (thousand pcs.)	3,657

* The amount of the dividend recommended by the Board of Directors of the Company for approval at the annual general meeting of the shareholders

Table 35. Venues trading in shares of OJSC N. W. Telecom

Name of the securities	Common stock	Preferred stock	1st level ADR for common shares
Name of the Stock Exchange	MICEX	RTS	MICEX	RTS	Berlin and Frankfurt Stock Exchanges	USA off-exchange market
Quoting list level	А1	А2	А2	А2	Freiverkehr	-
Ticker tape	SPTL	SPTL / SPTLG	SPTLP	SPTLP / SPTLPG	SQ4.BE (Berlin) SQ4.F (Frankfurt)	NWTEY

Shareholders

The largest holder of OJSC N. W.Telecom's block of shares is the Open Joint-Stock Company “Investitsionnaya Kompaniya Svyazi” (Investment Communication Company). It owns a controlling block of voting shares in the Company amounting to 50.76% of the total number of common shares.

Large blocks of common shares of OJSC N. W.Telecom are nominally held by NP National Depositary Centre (14.23%), CJSC UBS Nominees (12.46%), CJSC Depositary Clearing Company (9.88%), CJSC ING Bank (Eurasia) (7.6%). Individuals hold mostly preferred shares (31.83% of the total number of preferred shares).

During the year the most significant changes in the structure of OJSC N. W. Telecom's authorized capital took place in the re-distribution of the preferred shares from all major nominal holders in NP (Non-Profit Partnership) National Depositary Centre (from 12.9% in 2007 the holding share increased to 29.57%). Most probably, this change is accounted for by the outflow of nonresidents' funds from the Russian stock market because of the world financial crisis.

Table 36. Distribution of shares as of 31.12.2008*

Shareholder	Status	Common shares, pcs.	Share in the total volume of common stock, %	Preferred shares, pcs.	Share in the total volume of preferred shares, %	Shares, pcs. total	Percentage of total number of shares
Legal entities (165 accounts), total:		841,193,124	95.477	170,688,439	68.175	1,011,881,563	89.435
including those holding more than 1% of the authorized capital:
OJSC Investment Communication Company	owner	447,230,789	50.761	0	0	447,230,789	39.528
CJSC Depositary Clearing Company	nominal holder	87,071,066	9.883	67,446,470	26.939	154,517,536	13.657
CJSC UBS Nominees	nominal holder	109,815,278	12.464	22,665,854	9.053	132,481,132	11.709
CJSC ING BANK (EURASIA)	nominal holder	66,965,404	7.601	3,072,736	1.227	70,038,140	6.190
Nonprofit Partnership National Depositary Centre	nominal holder	125,369,491	14.230	74,031,836	29.569	199,401,327	17.624
Individuals (30,493 accounts):		39,852,309	4.523	79,680,898	31.825	119,533,207	10.565
TOTAL:		881,045,433	100	250,369,337	100	1,131,414,770	100

* according to OJSC «URC»