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Tj ET Q BT 472.08 420.72 TD (37) Tj -444.24 -11.52 TD 0.0289 Tc 0.0609 Tw (Item 2) Tj ET q 71.04 407.04 369.36 11.28 re h W n BT 71.04 409.2 TD -0.0465 Tc 0.1363 Tw (Description of Property ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj ET Q BT 472.08 408.72 TD -0.0605 Tc 0 Tw (40) Tj -444.24 -11.52 TD 0.0289 Tc 0.0609 Tw (Item 3) Tj ET q 71.04 395.04 369.36 11.28 re h W n BT 71.04 397.2 TD -0.0233 Tc 0.113 Tw (Legal Proceedings ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj ET Q BT 472.08 396.72 TD -0.0605 Tc 0 Tw (41) Tj -444.24 -11.52 TD 0.0289 Tc 0.0609 Tw (Item 4) Tj ET q 71.04 383.04 370.8 11.28 re h W n BT 71.04 385.2 TD -0.0037 Tc 0.0935 Tw (Control of Registrant ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj ET Q BT 472.08 384.72 TD -0.0605 Tc 0 Tw (42) Tj -444.24 -11.52 TD 0.0289 Tc 0.0609 Tw (Item 5) Tj ET q 71.04 371.04 370.08 11.28 re h W n BT 71.04 373.2 TD 0.0406 Tc 0.0491 Tw (Nature of Trading Market ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj ET Q BT 472.08 372.72 TD -0.0605 Tc 0 Tw (46) Tj -444.24 -11.52 TD 0.0289 Tc 0.0609 Tw (Item 6) Tj ET q 71.04 359.04 369.6 11.28 re h W n BT 71.04 361.2 TD 0.0085 Tc 0.0813 Tw (Exchange Controls and Other Limitations Affecting Security Holders ) Tj 4.4352 Tc 0 Tw (\205\205\205) Tj 0.0898 Tc (..) 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Tj ET Q BT 472.08 288.72 TD -0.0605 Tc 0 Tw (82) Tj -444.24 -11.52 TD 0.014 Tc 0.0758 Tw (Item 12) Tj ET q 71.04 275.04 369.12 11.28 re h W n BT 71.04 277.2 TD -0.0077 Tc 0.0975 Tw (Options to Purchase Securities from Registrant or Subsidiaries ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.0898 Tc (.) 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Tj ET Q BT 472.08 204.72 TD -0.0605 Tc 0 Tw (86) Tj -444.24 -11.52 TD 0.014 Tc 0.0758 Tw (Item 16) Tj ET q 71.04 191.04 370.08 11.28 re h W n BT 71.04 193.2 TD 0.0067 Tc 0.083 Tw (Changes in Securities and Changes in Security for Registered Securities ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.0898 Tc (..) Tj ET Q BT 472.08 192.72 TD -0.0605 Tc 0 Tw (87) Tj -235.68 -17.76 TD /F0 10.08 Tf -0.0442 Tc 0.0331 Tw (PART IV) Tj -208.56 -11.76 TD /F1 10.08 Tf 0.014 Tc 0.0758 Tw (Item 17) Tj ET q 71.04 161.04 370.08 11.28 re h W n BT 71.04 163.2 TD 0.0459 Tc 0.0439 Tw (Financial Statements ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj ET Q BT 472.08 162.72 TD -0.0605 Tc 0 Tw (88) Tj -444.24 -11.52 TD 0.014 Tc 0.0758 Tw (Item 18) Tj ET q 71.04 149.04 370.08 11.28 re h W n BT 71.04 151.2 TD 0.0459 Tc 0.0439 Tw (Financial Statements ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj ET Q BT 472.08 150.72 TD -0.0605 Tc 0 Tw (89) Tj -444.24 -11.52 TD 0.014 Tc 0.0758 Tw (Item 19) Tj ET q 71.04 137.04 368.88 11.28 re h W n BT 71.04 139.2 TD 0.0416 Tc 0.0482 Tw (Financial Statements and Exhibits ) Tj 4.4352 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.0898 Tc (..) Tj ET Q BT 468.24 138.72 TD -0.0606 Tc 0 Tw (F-1) Tj ET endstream endobj 21 0 obj 14241 endobj 19 0 obj << /Type /Page /Parent 5 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R >> /ProcSet 2 0 R >> /Contents 20 0 R >> endobj 23 0 obj << /Length 24 0 R >> stream BT 278.4 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0559 Tc 0 Tw (iv) Tj -75.12 693.36 TD /F0 10.08 Tf -0.0087 Tc -0.0024 Tw (Certain Defined Terms And Conventions) Tj -161.04 -23.76 TD /F1 10.08 Tf 0.0294 Tc 0.1924 Tw (In this annual report, the terms "MAT\301V" and the "Company" refer to MAT\301V Rt. and its direct and indirect subsidiaries as) Tj -14.4 -12 TD -0.0084 Tc 1.3211 Tw (a group; the term "Westel 900" refers to Westel 900 GSM Mobil T\341vk\366zl\351si Rt.; and the term "Westel 450" refers to Westel) Tj 0 -12 TD -0.026 Tc 0.1158 Tw (R\341di\363telefon Kft. The Company owns 51 percent of each of the Westel companies.) Tj 14.4 -24 TD 0.0057 Tc 0.7374 Tw (Totals in tables may be affected by rounding. Segment revenue and operating expense figures included in this annual report) Tj -14.4 -12 TD 0.0009 Tc 0.0888 Tw (do not give effect to intersegment eliminations.) Tj 154.08 -24.24 TD /F0 10.08 Tf -0 Tc -0.011 Tw (Forward-looking Statements May Not Be Accurate) Tj -139.68 -23.76 TD /F1 10.08 Tf 0.0234 Tc 0.8984 Tw (The Company may from time to time make written or oral forward-looking statements. Written forward-looking statements) Tj -14.4 -12 TD 0.022 Tc 0.816 Tw (appear in documents the Company files with the Securities and Exchange Commission, including this annual report, reports to) Tj 0 -12 TD 0.0032 Tc 1.1878 Tw (shareholders and other communications. The U.S. Private Securities Litigation Reform Act of 1995 contains a safe harbor for) Tj T* 0.0144 Tc 0.2448 Tw (forward-looking statements. Factors identified in filings with the Commission may cause actual results to differ materially from a) Tj T* -0.0026 Tc 1.0241 Tw (forward-looking statement made by MAT\301V or on its behalf. The Company's forward-looking statements speak only as of the) Tj T* 0.0016 Tc 2.3136 Tw (date they are made, and the Company does not have an obligation to update or revise them, whether as a result of new) Tj T* 0.0033 Tc 0.0864 Tw (information, future events or otherwise.) Tj ET endstream endobj 24 0 obj 2043 endobj 22 0 obj << /Type /Page /Parent 5 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R >> /ProcSet 2 0 R >> /Contents 23 0 R >> endobj 26 0 obj << /Length 27 0 R >> stream BT 279.84 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.1694 Tc 0 Tw (v) Tj -35.52 693.36 TD /F0 10.08 Tf 0.0213 Tc -0.0323 Tw (EXCHANGE RATES) Tj -202.08 -23.76 TD /F1 10.08 Tf 0.0053 Tc 0.1205 Tw (The National Bank of Hungary sets the official rate of exchange for Hungarian Forints. 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The National Bank of Hungary determines and announces in advance the monthly rate of devaluation. On any) Tj T* 0.0223 Tc 0.4446 Tw (given day, the actual exchange rate of the Hungarian Forint against the basket of currencies may vary from the rate the National) Tj T* 0.0062 Tc 0.6773 Tw (Bank of Hungary has announced. The National Bank of Hungary has announced a policy of intervening in the foreign currency) Tj T* 0.0121 Tc 0.1758 Tw (market if the actual exchange rate moves more than 2.25 percent above or below the announced rate, and has so intervened in the) Tj T* 0.0322 Tc 0 Tw (past.) Tj 14.4 -24 TD 0.0125 Tc 0.2185 Tw (The National Bank of Hungary has devalued the Hungarian Forint continuously in recent years. The monthly devaluation rate) Tj -14.4 -12 TD 0.0045 Tc 0.2953 Tw (was reduced from 1.2 percent on January 1, 1996 to 1.1 percent in April 1997 and to 1.0 percent in August 1997. Since then, the) Tj 0 -12 TD 0.0105 Tc 0.5952 Tw (National Bank of Hungary announced further cuts to the crawling peg, decreasing it to 0.9 percent in January 1998, 0.8 percent) Tj T* -0.0036 Tc 1.217 Tw (in June 1998, 0.7 percent in October 1998, 0.6 percent in January 1999, 0.5 percent in July 1999 and 0.4 percent in October) Tj T* 0.0042 Tc 0.5542 Tw (1999. The National Bank of Hungary announced that the devaluation rate will be reduced to 0.3 percent from April 2000 and is) Tj T* -0.0171 Tc 0.1069 Tw (expected to be reduced further to 0.2 percent from January 2001.) Tj 14.4 -24 TD -0.0043 Tc 0.1824 Tw (The National Bank of Hungary also announced that if inflation decreases to 5 percent the daily devaluation system is expected) Tj -14.4 -12 TD -0.0109 Tc 0.1007 Tw (to be terminated and the intervention band is expected to be widened.) Tj 14.4 -24 TD -0.0038 Tc 0.8375 Tw (The following tables set forth, for the periods and dates indicated, the period-end, average, high and low official rate set by) Tj -14.4 -12 TD -0.0028 Tc 0.1491 Tw (the National Bank of Hungary for Hungarian Forints per U.S.$1.00, DM1.00 and EUR1.00, respectively. The Company makes no) Tj 0 -12 TD 0.0079 Tc 0.2138 Tw (representation that the Hungarian Forint amounts referred to in this annual report could have been or could be converted into any) Tj T* 0.0465 Tc 0.0432 Tw (currency at any particular rate or at all.) Tj 293.28 -23.28 TD /F0 9.12 Tf 0.0032 Tc -0.0018 Tw (Exchange Rates) Tj -16.32 -12.24 TD 0.0038 Tc -0.0024 Tw (\(amounts in HUF/U.S.$\)) Tj -77.76 -12.96 TD 0.0049 Tc 0 Tw (Period-End) Tj 68.16 0 TD 0.0023 Tc -0.0009 Tw (Average \(1\)) Tj 81.36 0 TD 0.0036 Tc 0 Tw (High) Tj 69.84 0 TD 0.0064 Tc (Low) Tj ET 220.32 369.12 57.6 0.72 re f 277.92 369.12 0.72 0.72 re f 278.64 369.12 10.08 0.72 re f 288.72 369.12 0.72 0.72 re f 289.44 369.12 56.88 0.72 re f 346.32 369.12 0.72 0.72 re f 347.04 369.12 10.08 0.72 re f 357.12 369.12 0.72 0.72 re f 357.84 369.12 56.88 0.72 re f 414.72 369.12 0.72 0.72 re f 415.44 369.12 10.08 0.72 re f 425.52 369.12 0.72 0.72 re f 426.24 369.12 56.88 0.72 re f BT 27.84 346.32 TD /F0 10.08 Tf 0.0324 Tc (Year) Tj ET 220.32 356.16 57.6 0.72 re f 288.72 356.16 57.6 0.72 re f 357.12 356.16 57.6 0.72 re f 425.52 356.16 57.6 0.72 re f BT 27.84 334.32 TD /F1 10.08 Tf 0.0802 Tc 0.0095 Tw (1995 ...........................................................) Tj 206.16 0 TD -0.0354 Tc 0 Tw (139.47) Tj 68.4 0 TD (125.69) Tj 68.4 0 TD (139.98) Tj 68.4 0 TD (107.84) Tj -411.36 -12.24 TD 0.0802 Tc 0.0095 Tw (1996 ...........................................................) Tj 206.16 0 TD -0.0354 Tc 0 Tw (164.93) Tj 68.4 0 TD (152.57) Tj 68.4 0 TD (165.13) Tj 68.4 0 TD (139.21) Tj -411.36 -12.24 TD 0.0802 Tc 0.0095 Tw (1997 ...........................................................) Tj 206.16 0 TD -0.0354 Tc 0 Tw (203.50) Tj 68.4 0 TD (186.98) Tj 68.4 0 TD (203.92) Tj 68.4 0 TD (160.96) Tj -411.36 -12.24 TD 0.0802 Tc 0.0095 Tw (1998 ...........................................................) Tj 206.16 0 TD -0.0354 Tc 0 Tw (219.03) Tj 68.4 0 TD (214.45) Tj 68.4 0 TD (227.07) Tj 68.4 0 TD (203.24) Tj -411.36 -12.24 TD 0.0802 Tc 0.0095 Tw (1999 ...........................................................) Tj 206.16 0 TD -0.0354 Tc 0 Tw (252.52) Tj 68.4 0 TD (237.30) Tj 68.4 0 TD (252.63) Tj 68.4 0 TD (212.31) Tj -411.36 -12.24 TD -0.0605 Tc (__________) Tj 0 -21.6 TD /F1 7.92 Tf -0.067 Tc -0.0168 Tw (\(1\) The average of the exchange rates on each business days during the relevant year.) 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Tj 212.64 0 TD -0.0304 Tc 0 Tw (97.38) Tj 68.4 0 TD (87.84) Tj 68.4 0 TD (97.42) Tj 68.4 0 TD (71.42) Tj -417.84 -12.24 TD 0.0802 Tc 0.0095 Tw (1996 ...........................................................) Tj 207.6 0 TD -0.0354 Tc 0 Tw (106.17) Tj 68.4 0 TD (101.40) Tj 68.4 0 TD (106.40) Tj 73.44 0 TD -0.0304 Tc (96.62) Tj -417.84 -12.24 TD 0.0802 Tc 0.0095 Tw (1997 ...........................................................) Tj 207.6 0 TD -0.0354 Tc 0 Tw (113.59) Tj 68.4 0 TD (107.75) Tj 68.4 0 TD (114.37) Tj 68.4 0 TD (102.95) Tj -412.8 -12.24 TD 0.0802 Tc 0.0095 Tw (1998 ...........................................................) Tj 207.6 0 TD -0.0354 Tc 0 Tw (130.65) Tj 68.4 0 TD (122.15) Tj 68.4 0 TD (132.66) Tj 68.4 0 TD (112.95) Tj -412.8 -12.24 TD -0.0605 Tc (__________) Tj 0 -21.6 TD /F1 7.92 Tf -0.067 Tc -0.0168 Tw (\(1\) The average of the exchange rates on each business days during the relevant year.) Tj 293.28 -22.8 TD /F0 9.12 Tf 0.0032 Tc -0.0018 Tw (Exchange Rates) Tj -15.36 -12.24 TD 0.0045 Tc -0.0031 Tw (\(amounts in HUF/EUR\)) Tj -78.72 -12.96 TD 0.0049 Tc 0 Tw (Period-End) Tj 68.16 0 TD 0.0023 Tc -0.0009 Tw (Average \(1\)) Tj 81.36 0 TD 0.0036 Tc 0 Tw (High) Tj 69.84 0 TD 0.0064 Tc (Low) Tj ET 220.32 584.64 57.6 0.72 re f 277.92 584.64 0.72 0.72 re f 278.64 584.64 10.08 0.72 re f 288.72 584.64 0.72 0.72 re f 289.44 584.64 56.88 0.72 re f 346.32 584.64 0.72 0.72 re f 347.04 584.64 10.08 0.72 re f 357.12 584.64 0.72 0.72 re f 357.84 584.64 56.88 0.72 re f 414.72 584.64 0.72 0.72 re f 415.44 584.64 10.08 0.72 re f 425.52 584.64 0.72 0.72 re f 426.24 584.64 56.88 0.72 re f 220.32 571.68 57.6 0.72 re f 288.72 571.68 57.6 0.72 re f 357.12 571.68 57.6 0.72 re f 425.52 571.68 57.6 0.72 re f BT 27.84 549.6 TD /F0 10.08 Tf 0.0324 Tc (Year) Tj 0 -12 TD /F1 10.08 Tf 0.0755 Tc 0.0143 Tw (1999 ......................................) Tj 4.4352 Tc 0 Tw (\205\205\205) Tj 0.0898 Tc (.........) Tj 207.6 0 TD -0.0354 Tc (254.92) Tj 68.4 0 TD (252.80) Tj 68.4 0 TD (258.86) Tj 68.4 0 TD (248.23) Tj -412.8 -12.24 TD -0.0605 Tc (__________) Tj 0 -21.6 TD /F1 7.92 Tf -0.067 Tc -0.0168 Tw (\(1\) The average of the exchange rates on each business days during the relevant year.) Tj 14.4 -23.52 TD /F1 10.08 Tf 0.0135 Tc 1.1029 Tw (The Company will pay any cash dividends in Hungarian Forints, and exchange rate fluctuations will affect the U.S. dollar) Tj -14.4 -12 TD -0.018 Tc 0.9415 Tw (amounts received by holders of ADSs on conversion of cash dividends on the shares those ADSs represent. Fluctuations in the) Tj 0 -12 TD 0.0098 Tc 0.0799 Tw (exchange rate between the Hungarian Forint and the U.S. dollar will also affect the prices of shares and ADSs.) Tj ET endstream endobj 30 0 obj 3860 endobj 28 0 obj << /Type /Page /Parent 5 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R >> /ProcSet 2 0 R >> /Contents 29 0 R >> endobj 35 0 obj << /Length 36 0 R >> stream BT 276.96 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0181 Tc 0 Tw (vii) Tj -1.92 693.6 TD /F4 10.08 Tf 0.0048 Tc 0.0043 Tw (PART I) Tj -75.12 -23.52 TD 0.0057 Tc 0.0035 Tw (ITEM 1 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0056 Tc 0.0035 Tw (DESCRIPTION OF BUSINESS) Tj -172.08 -35.28 TD 0.0053 Tc 0 Tw (Introduction) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0217 Tc 0.6273 Tw (MAT\301V is the principal provider of fixed line telecommunications services in Hungary, with approximately 2.9 million fixed) Tj -14.4 -12 TD -0.0515 Tc 1.1972 Tw (access lines at December 31, 1999. The Company is also Hungary's largest mobile telecommunications service provider, with) Tj 0 -12 TD -0.0667 Tc 1.3474 Tw (over 940,000 mobile subscribers \(including users of prepaid cards\) at December 31, 1999. The Company's total consolidated) Tj T* -0.0472 Tc 0.2478 Tw (revenues were HUF 384,932 million and its total consolidated net income was HUF 78,632 million in 1999.) Tj 0 -24 TD -0.0135 Tc 0.2142 Tw (MAT\301V is a full-service telecommunications provider:) Tj 14.4 -24 TD /F1 10.08 Tf -0.0041 Tc 2.0138 Tw (Fixed Line Telecommunications Services. ) Tj 0 Tc 0.0898 Tw ( ) Tj 184.8 0 TD /F3 10.08 Tf -0.0331 Tc 2.2604 Tw (The Company's fixed line telecommunications services consist of local, long) Tj -199.2 -12 TD -0.0528 Tc 1.5049 Tw (distance, international and other telecommunications services. The Company has exclusive rights through December 2001 to) Tj 0 -12 TD -0.062 Tc 2.9541 Tw (provide domestic long distance and international public telephony services throughout Hungary. The Company also has) Tj T* -0.0401 Tc 2.2327 Tw (exclusive rights to provide local public fixed line telephony service in 36 of the 54 local primary areas in Hungary. The) Tj T* -0.062 Tc 0.9467 Tw (Company's exclusive rights in 31 of these areas extend through December 2001 and in five of these areas extend through May) Tj T* -0.0403 Tc 2.7369 Tw (2002. The Minister of Transport, Telecommunications and Water Management \(the ) Tj -0.1149 Tc 0 Tw (\223Minister) Tj -0.1154 Tc 2.956 Tw (\224\) and MAT\301V have begun) Tj T* -0.0235 Tc 1.8387 Tw (negotiations for a possible earlier termination of MAT\301V's exclusive rights. See ") Tj 3.3667 Tc -1.4861 Tw (\227 ) Tj -0.032 Tc 1.9126 Tw (Regulation and Pricing ) Tj 3.3667 Tc -1.4861 Tw (\227 ) Tj 0.0173 Tc 1.8634 Tw (Fixed Line) Tj T* -0.0691 Tc 1.7836 Tw (Concession Contracts." The Company's 36 local concession areas cover approximately 70 percent of Hungary) Tj -3.3533 Tc 0 Tw (\222) Tj -0.095 Tc 1.9756 Tw (s geographic) Tj T* -0.0293 Tc 1.9232 Tw (area. MAT\301V's local concession areas include Budapest and nearly all of the other major cities in Hungary. MAT\301V also) Tj T* -0.0498 Tc 0.5076 Tw (provides leased lines, data transmission services and corporate network services, sells telecommunications equipment and offers) Tj T* -0.04 Tc 0.2406 Tw (network construction and maintenance services. MAT\301V is the market leader in Hungary for most of these services.) Tj 14.4 -24 TD /F1 10.08 Tf -0.0234 Tc 0.4331 Tw (Mobile Telecommunications Services. ) Tj 158.88 0 TD /F3 10.08 Tf -0.037 Tc 0.9576 Tw (Through its two mobile telecommunications subsidiaries, Westel 900 and Westel 450,) Tj -173.28 -12 TD -0.0442 Tc 0.5228 Tw (the Company is a market leader in the provision of mobile telecommunications services in Hungary. Westel 900 currently is one) Tj 0 -12 TD -0.0398 Tc 0.7071 Tw (of three GSM digital providers, and Westel 450 is the sole provider of analog mobile telecommunications services, in Hungary.) Tj T* -0.0393 Tc 1.8461 Tw (Mobile telecommunications services have contributed significantly to the Company's revenue growth. Revenues from mobile) Tj T* -0.0428 Tc 1.7177 Tw (telecommunications services increased from HUF 67,681 million, before intersegment eliminations in 1997 to HUF 117,336) Tj T* -0.046 Tc 1.14 Tw (million before intersegment eliminations in 1999, while the number of subscribers more than tripled over the period. In 1999,) Tj T* -0.0535 Tc 1.8008 Tw (Westel 900 won one of the new 1800 GSM mobile telecommunications operating licences. A new entrant on the Hungarian) Tj T* -0.0369 Tc 0.6544 Tw (digital cellular market started operation in December 1999. The winners of the two additional licences - including Westel 900 -) Tj T* -0.0559 Tc 0.2566 Tw (may enter the 1800 GSM market a year later, in December 2000.) Tj 14.4 -24 TD -0.0509 Tc 0.901 Tw (During the past three years, MAT\301V has continued a substantial investment and restructuring program that has resulted in) Tj -14.4 -12 TD -0.0218 Tc 2.1848 Tw (significant operational and financial benefits. Between 1997 and 1999, MAT\301V invested HUF 169 billion in its fixed line) Tj 0 -12 TD -0.0657 Tc 2.5703 Tw (telecommunications network, and added over 645,000 fixed access lines and over 103,000 ISDN channels. The Company) Tj T* -0.0486 Tc 0.9426 Tw (reduced the fixed line waiting list from approximately 91,000 at December 31, 1996 to approximately 38,000 at December 31,) Tj T* -0.0533 Tc 1.0118 Tw (1999. The Company expects to make total capital expenditures of approximately HUF 150 billion both in 2000 and 2001. The) Tj T* -0.0493 Tc 0.346 Tw (rate of penetration in MAT\301V's service areas increased from 28.2 access lines per 100 inhabitants at December 31, 1996 to 38.6) Tj T* -0.0402 Tc 2.0408 Tw (access lines per 100 inhabitants at December 31, 1999. In addition, the level of digitalization of the Company's switching) Tj T* -0.0467 Tc 2.3508 Tw (capacity increased from 63.8 percent at December 31, 1996 to 79.0 percent at December 31, 1999. Workforce efficiency) Tj T* -0.049 Tc 2.0553 Tw (increased, with the number of fixed access lines per fixed line employee rising from 136 at December 31, 1996 to 240 at) Tj T* -0.0688 Tc 0.2694 Tw (December 31, 1999.) Tj ET endstream endobj 36 0 obj 5950 endobj 31 0 obj << /Type /Page /Parent 32 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 35 0 R >> endobj 38 0 obj << /Length 39 0 R >> stream BT 275.52 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0008 Tc 0 Tw (viii) Tj -233.28 681.6 TD /F3 10.08 Tf -0.0453 Tc 0.2829 Tw (The Company's restructuring and investment program has benefited significantly from the management, marketing, technical,) Tj -14.4 -12 TD -0.0366 Tc 2.6972 Tw (operational and financial expertise provided by its strategic investors, SBC Communications Inc. \() Tj -1.1933 Tc 0 Tw (\223) Tj -0.0043 Tc (SBC) Tj -0.1805 Tc 3.0211 Tw (\224\) and Deutsche) Tj 0 -12 TD -0.0095 Tc 0.2101 Tw (Telekom AG \() Tj -0.1137 Tc 0.3144 Tw (\223Deutsche Telekom) Tj -0.4098 Tc 0 Tw (\224\).) Tj 13.44 -24 TD -0.0571 Tc 0.2577 Tw (Hungary's stable telecommunications regulatory environment has contributed to the Company's growth in recent years. The) Tj -13.44 -12 TD -0.0311 Tc 0.2317 Tw (current regime provides MAT\301V with a period of exclusive rights to provide its core telecommunications services. In addition,) Tj 0 -12 TD -0.0354 Tc 0.236 Tw (tariffs for fixed line services are regulated under price cap regimes that permit the Company to rebalance tariffs over time. Since) Tj T* -0.0376 Tc 0.2383 Tw (1994, the Company has been gradually rebalancing tariffs for its fixed line telecommunications services to reflect more closely) Tj T* -0.0593 Tc 0.2599 Tw (the underlying costs of these services. In real terms, the Company has been increasing subscription charges and local usage) Tj T* -0.0265 Tc 0.2272 Tw (tariffs, while reducing domestic long distance and international tariffs.) Tj 14.4 -24 TD -0.0276 Tc 0.8219 Tw (MAT\301V Rt. and certain of its subsidiaries qualify for a reduction in income tax payable on meeting certain conditions. The) Tj -14.4 -12 TD -0.0494 Tc 0.4573 Tw (reduction in the tax payable amounted to a 100 percent allowance for five years from the date of qualification, and a 60 percent) Tj 0 -12 TD -0.0383 Tc 0.6684 Tw (allowance for a further five years. Through 1998, MAT\301V Rt. and Westel 900 qualified for the 100 percent allowance. Through) Tj T* -0.0255 Tc 2.0072 Tw (1995, Westel 450 utilized the 100 percent allowance. From January 1, 1999, MAT\301V Rt. and Westel 900 are utilizing the) Tj T* -0.0348 Tc 0.8754 Tw (reduced allowance of 60 percent for a further five years \(effective tax rate of 7.2 percent\). Westel 450 has utilized the reduced) Tj T* -0.046 Tc 0.7125 Tw (allowance of 60 percent until December 31, 1999. Management believes that the conditions underlying the reduction in income) Tj T* -0.0226 Tc 0.2232 Tw (tax will continue to be met. All other subsidiaries were subject to income tax of 18 percent.) Tj 0 -35.52 TD /F4 10.08 Tf 0.0061 Tc 0.0031 Tw (Business Strategy) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0341 Tc 0.5197 Tw (MAT\301V's objective is to be the best Central and Eastern European telecommunications service provider. The Company aims) Tj -14.4 -12 TD -0.0408 Tc 0.6148 Tw (to bring the quality, efficiency and scope of Hungary's telecommunications network and services to the level of modern Western) Tj 0 -12 TD -0.028 Tc 0.9647 Tw (telecommunications companies to serve the interest of MAT\301V's customers, investors and employees. MAT\301V aims to increase) Tj T* -0.0724 Tc 0.273 Tw (shareholder value by:) Tj 14.4 -24.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0767 Tc 0.2773 Tw (growing the core business and focusing on the customer;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0817 Tc 0.2823 Tw (expanding into new businesses; and) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0214 Tc 0.222 Tw (improving productivity and efficiency.) Tj -28.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0051 Tc 0.004 Tw (Growing the core business and focusing on the customer) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0044 Tc 0.1901 Tw (Growing the Core Business. ) Tj 119.76 0 TD /F3 10.08 Tf -0.0504 Tc 0.491 Tw (The Company plans to continue to build its fixed line residential and business customer base by) Tj -133.92 -12 TD -0.0466 Tc 0.6193 Tw (increasing the penetration of fixed access lines and upgrading the access network. In the short run MAT\301V plans to continue to) Tj 0 -12 TD -0.0491 Tc 1.5626 Tw (focus on installation and sales of additional lines and also upgrades to ISDN for communication intensive applications. The) Tj T* -0.0528 Tc 0.6934 Tw (Company believes that it is helping to cultivate Hungarian telephone habits such that Hungarians are increasing the number of) Tj T* -0.0299 Tc 1.2248 Tw (calls they make and the amount of time they spend on the telephone. MAT\301V also seeks to increase levels of call completion) Tj T* -0.046 Tc 0.2467 Tw (through further penetration of value added services, such as digifon and Voice-mail services.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0098 Tc 0 Tw (MAT\301V) Tj -2.2848 Tc (\222) Tj -0.0022 Tc 1.7861 Tw (s objective is to remain the dominant mobile services provider and market leader in Hungary by continuing to) Tj -14.16 -12 TD 0.0113 Tc 1.7161 Tw (increase penetration and expanding its service scope through its subsidiaries Westel 900 and Westel 450. Data and Internet) Tj 0 -12 TD -0.0149 Tc 1.5446 Tw (applications are expected to sustain mobile usage. MAT\301V will also seek to exploit the Group) Tj -2.2848 Tc 0 Tw (\222) Tj 0.0364 Tc 1.5733 Tw (s common infrastructure and) Tj T* 0.0139 Tc 0.0758 Tw (network platforms as well as sales and service channels.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0 Tc 2.0628 Tw (The Company believes that revenue from data services will continue to grow more rapidly than revenue from its other) Tj -14.16 -12 TD 0.01 Tc 2.1127 Tw (businesses. The proliferation of new applications is fueling growth in data services and driving the requirements for more) Tj 0 -12 TD 0.002 Tc 0.1392 Tw (advanced technology and service platforms. MAT\301V has experienced increasing demand from businesses for integrated solutions) Tj T* -0.0112 Tc 0.6477 Tw (as well as new technologies that deliver increasing operating efficiencies with economies of scale and lower costs. The expected) Tj T* 0.0137 Tc 0.076 Tw (growth in the Internet should also result in increased data revenue as well as growth in local access and usage.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 39 0 obj 6919 endobj 37 0 obj << /Type /Page /Parent 32 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 38 0 R >> endobj 45 0 obj << /Length 46 0 R >> stream BT 278.4 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (ix) Tj -236.4 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf -0.0097 Tc 1.2995 Tw (Focusing on the Customer. ) Tj 0 Tc 0.0898 Tw ( ) Tj 120.24 0 TD /F3 10.08 Tf -0.0281 Tc 1.4657 Tw (MAT\301V has established distinct distribution channels designed to meet the needs of its three) Tj -134.4 -12 TD -0.0505 Tc 0.8603 Tw (major customer groups: residential customers, business customers and wholesale service providers. MAT\301V continuously seeks) Tj 0 -12 TD -0.0455 Tc 2.9204 Tw (to transform itself into a customer-oriented organization that provides its subscribers with consistent "one-stop service",) Tj T* -0.0559 Tc 0.6466 Tw (permitting subscribers to handle their business with the Company over the telephone. The Company plans further improvements) Tj T* -0.0539 Tc 0.5746 Tw (in customer service and its understanding of sophisticated customer needs. To support these efforts, the Company is focusing on) Tj T* -0.0476 Tc 2.2802 Tw (developing its customer-oriented culture and sales capabilities. The Company continually seeks to offer new products and) Tj T* -0.0552 Tc 2.3758 Tw (services in response to customers' needs and to enhance its brand identity. The Company's pricing strategy is to provide) Tj T* -0.0453 Tc 0.2459 Tw (attractively priced packages of products and services.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj -14.16 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0051 Tc 0.0041 Tw (Expanding into new businesses) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1296 Tc 0 Tw (MAT\301V) Tj -3.3533 Tc (\222) Tj -0.0469 Tc 0.6375 Tw (s overall objective is to maximize profits and take advantage of the growth opportunities across Hungary, including) Tj -14.16 -12 TD 0 Tc 0.2001 Tw (LTO territories.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0485 Tc 1.9142 Tw (MAT\301V plans to concentrate significant resources on developing a business design which is based on Internet Protocol) Tj -14.16 -12 TD -0.0681 Tc 1.8154 Tw (\(\223IP\224\) and Internet services to adapt to the challenges of the emerging Internet economy and remain competitive with new) Tj 0 -12 TD -0.0326 Tc 2.0522 Tw (entrants in the market. MAT\301V plans to implement an IP centric development of its network and introduce IP based data) Tj T* -0.0286 Tc 0.2292 Tw (communications solutions, such Virtual Private Networks.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1296 Tc 0 Tw (MAT\301V) Tj -3.3533 Tc (\222) Tj -0.0494 Tc 1.1651 Tw (s objective is to remain the predominant Internet provider in Hungary by increasing penetration into the business) Tj -14.16 -12 TD -0.048 Tc 1.5837 Tw (and residential customer segments and by exploring expansion into the e-business market. MAT\301V operates Origo, the most) Tj 0 -12 TD -0.0307 Tc 0.5419 Tw (frequently visited portal in Hungary. Some of the key Internet-related services that MAT\301V plans to provide include transaction) Tj T* -0.051 Tc 0.2516 Tw (authentication and authorization services, e-commerce, as well as portal development and management.) Tj 14.16 -18 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf -0.0133 Tc 0.5564 Tw (In 2000, the Company plans to begin developing and deploying) Tj 261.36 0 TD /F0 10.08 Tf 0 Tc -0.011 Tw ( ) Tj 3.12 0 TD /F1 10.08 Tf -0.0373 Tc 0.6071 Tw (broadband services based on xDSL technology. The viability) Tj -278.64 -12 TD -0.0203 Tc 0.4919 Tw (of cable TV as a broadband access solution will be assessed particularly in LTO areas. The cable TV business line is expected to) Tj 0 -12 TD -0.0173 Tc 2.9165 Tw (contribute to the revenues of the Company. In addition, it is also expected to create opportunities for the) Tj 468.48 0 TD -0.0525 Tc 3.0223 Tw ( joint sale of) Tj -468.48 -12 TD 0.0276 Tc 0.0622 Tw (telecommunications and entertainment services.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj -14.16 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0045 Tc 0.0046 Tw (Improving productivity and efficiency) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0509 Tc 5.7161 Tw (The Company is increasing productivity and operational efficiency through the ongoing modernization of its) Tj -14.16 -12 TD -0.0323 Tc 1.9289 Tw (telecommunications network and investment in network systems and service platforms. In addition, MAT\301V is committed to) Tj 0 -12 TD -0.0473 Tc 2.5371 Tw (further headcount reduction through natural attrition, early retirement, centralization and automation. These changes are) Tj T* -0.0336 Tc 0.2342 Tw (expected to result in further cost reduction and a more competitive cost structure as part of MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.031 Tc 0.2717 Tw (s effort to prepare for a fully) Tj T* -0.016 Tc 0.2167 Tw (competitive environment.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 46 0 obj 5177 endobj 44 0 obj << /Type /Page /Parent 32 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 45 0 R >> endobj 48 0 obj << /Length 49 0 R >> stream BT 279.84 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0706 Tc 0 Tw (x) Tj -252 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0055 Tc 0.0036 Tw (Overview of MAT\301V's Revenues) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0491 Tc 0.2497 Tw (For the year ended December 31, 1999, MAT\301V's total revenues by business segment were as follows:) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj 259.92 0 TD ( ) Tj 64.32 0.48 TD ( ) Tj -48.72 -11.04 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 129.12 11.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -4.8 -11.04 TD 0.0213 Tc -0.0016 Tw (December 31,) Tj -399.84 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 259.92 0 TD ( ) Tj 21.12 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 47.28 0.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 10.56 -0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 288.72 696.24 57.6 0.72 re f 346.32 696.24 0.72 0.72 re f 347.04 696.24 10.08 0.72 re f 357.12 696.24 0.72 0.72 re f 357.84 696.24 56.88 0.72 re f 425.52 696.24 57.6 0.72 re f BT 27.84 673.68 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 259.92 0 TD ( ) Tj 29.52 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj 107.28 0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.64 -0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 288.72 683.28 57.6 0.72 re f 357.12 683.28 57.6 0.72 re f 425.52 683.28 57.6 0.72 re f BT 27.84 661.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0269 Tc 0.2275 Tw (Fixed line telecommunications services segment) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 345.36 660 0.24 11.04 re h W n BT 345.36 662.16 TD ( ) Tj ET Q q 356.16 660 0.24 11.04 re h W n BT 356.16 662.16 TD ( ) Tj ET Q q 413.76 660 0.24 11.04 re h W n BT 413.76 662.16 TD ( ) Tj ET Q q 424.56 660.24 0.24 10.8 re h W n BT 424.56 662.4 TD ( ) Tj ET Q q 482.16 660 0.24 11.04 re h W n BT 482.16 662.16 TD ( ) Tj ET Q BT 27.84 649.2 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0702 Tc 0.2708 Tw ( Subscriptions, connections and other charges) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................) Tj 252 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (55,673) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (63,413) Tj 38.64 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (13.9) Tj -436.56 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0275 Tc 0.2281 Tw ( Domestic traffic revenues) Tj 0 -12 TD 0.2006 Tc 0 Tw (...................................................) Tj 252 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (108,425) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (134,071) Tj 43.68 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (23.7) Tj -436.56 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1651 Tc 0.0355 Tw ( Other usage .......................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (26,807) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (26,999) Tj 38.64 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 44.88 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (0.7) Tj -441.6 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1122 Tc 0.0884 Tw ( International traffic revenues .............................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (38,792) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (43,807) Tj 38.64 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (12.9) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0439 Tc 0.2445 Tw ( Other services ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.....................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (27,232) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (33,940) Tj 38.64 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (24.6) Tj -436.56 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1427 Tc 0.0579 Tw (Total fixed line segment ........................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (256,929) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (302,230) Tj 43.68 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (17.6) Tj ET 288.72 573.36 57.6 0.72 re f 357.12 573.36 57.6 0.72 re f BT 27.84 551.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.022 Tc 0.1786 Tw (Mobile telecommunications services segment ............) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (........) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (88,142) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (117,336) Tj 43.68 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (33.1) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1281 Tc 0.0726 Tw (Intersegment eliminations .....................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(27,011\)) Tj 44.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(34,634\)) Tj 44.88 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (28.2) Tj -436.56 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1895 Tc 0.0111 Tw (Total .....................................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (318,060) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (384,932) Tj 43.68 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (21.0) Tj ET 288.72 535.92 57.6 0.72 re f 357.12 535.92 57.6 0.72 re f 288.72 522 57.6 0.72 re f 288.72 520.56 57.6 0.72 re f 357.12 522 57.6 0.72 re f 357.12 520.56 57.6 0.72 re f BT 27.84 510.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (Fixed Line Telecommunications Services Segment) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0333 Tc 1.1082 Tw (In 1999, MAT\301V's fixed line telecommunications services generated revenues of HUF 302,230 million before intersegment) Tj -14.4 -12 TD -0.0246 Tc 3.8068 Tw (eliminations. Fixed line telecommunications services consist of domestic and international services, leased lines, data) Tj 0 -12 TD -0.0356 Tc 1.7762 Tw (transmission related services, telecommunications equipment sales, construction, maintenance and other services. Fixed line) Tj T* -0.0384 Tc 0.239 Tw (telecommunications services do not include sales of mobile telecommunications equipment.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0052 Tc -0.0058 Tw (Domestic Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.023 Tc 0.2716 Tw (Domestic fixed line voice telephony, MAT\301V's principal business activity, generated revenues of HUF 224,483 million before) Tj -14.4 -12 TD -0.03 Tc 0.2306 Tw (intersegment eliminations in 1999. Revenues from domestic fixed line voice telephony consist of:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -0.96 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0677 Tc 0.2683 Tw (subscriptions, connections and other charges;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0409 Tc 0.2416 Tw (domestic traffic revenues; and) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.063 Tc 0.2636 Tw (other usage.) Tj -27.6 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0362 Tc 0.126 Tw (Products and Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0031 Tc 0.3266 Tw (Local and Long Distance Calling Services) Tj 172.08 0 TD /F3 10.08 Tf -0.0146 Tc 0.4552 Tw (. MAT\301V provides exclusive local service to its fixed line telephony subscribers in) Tj -186.48 -12 TD -0.0504 Tc 0.7768 Tw (its 36 local concession areas. The Company also has the exclusive right to provide long distance service to customers in all 54) Tj 0 -12 TD -0.0681 Tc 0.2687 Tw (local primary areas of Hungary.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0249 Tc 0.5947 Tw (Digifon Services. ) Tj 74.64 0 TD /F3 10.08 Tf -0.038 Tc 1.3036 Tw ( The improved level of digitalization of its exchanges permits the Company to offer value added digifon) Tj -89.04 -12 TD -0.0378 Tc 0.5921 Tw (services, such as call forwarding and call waiting, to a significant number of its fixed line telephony subscribers. These services) Tj 0 -12 TD -0.0563 Tc 0.2569 Tw (contribute to increased fixed line usage by avoiding busy signals or unanswered calls.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.003 Tc 2.2527 Tw (Shared Cost/Toll Free Numbers. ) Tj 0 Tc 0.0898 Tw ( ) Tj 147.36 0 TD /F3 10.08 Tf -0.0279 Tc 2.4809 Tw (To enable business customers to better meet the needs of their clients, MAT\301V has) Tj -161.76 -12 TD -0.0863 Tc 1.487 Tw (introduced a wide range of "blue" numbers, which are shared cost numbers, and "green" numbers, through which businesses) Tj 0 -12 TD -0.0474 Tc 1.3351 Tw (provide toll-free access for their customers. In 1999, the Company introduced Private Green Numbers, which are targeted at) Tj T* -0.0298 Tc 0.2305 Tw (residential users.) Tj ET endstream endobj 49 0 obj 11696 endobj 47 0 obj << /Type /Page /Parent 32 0 R /Resources << /Font 50 0 R /ProcSet 2 0 R >> /Contents 48 0 R >> endobj 50 0 obj << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> endobj 52 0 obj << /Length 53 0 R >> stream BT 278.4 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (xi) Tj -236.16 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0063 Tc 0 Tw (Voice-mail.) Tj 47.76 0 TD /F3 10.08 Tf -0.0154 Tc 1.1761 Tw ( In November 1999, MAT\301V launched a new Voice-mail product. MAT\301V believes Voice-mail is an attractive) Tj -62.16 -12 TD -0.0387 Tc 2.5493 Tw (new service for subscribers while it simultaneously increases the number of completed calls. The new Voice-mail service) Tj 0 -12 TD -0.0778 Tc 0.2785 Tw (generated over 65,000 orders by the end of 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0413 Tc 0.131 Tw (ISDN Services. ) Tj 64.8 0 TD /F3 10.08 Tf -0.0325 Tc 0.3265 Tw ( MAT\301V offers ISDN services in Budapest and other major cities in its local concession areas. ISDN allows a) Tj -79.2 -12 TD -0.0458 Tc 0.8731 Tw (single access line simultaneously to be used for a number of purposes, including voice, data, facsimile and video transmission.) Tj 0 -12 TD -0.0494 Tc 0.4336 Tw (ISDN also provides higher quality connections with faster transmission of signals while increasing the bandwidth capacity of the) Tj T* -0.0382 Tc 1.7989 Tw (network. MAT\301V offers both basic ISDN access lines with two channels and multiplex ISDN access lines with 30 channels.) Tj T* -0.0339 Tc 1.2546 Tw (MAT\301V's ISDN services meet Euro-ISDN requirements. As of December 31, 1999, MAT\301V had installed 22,343 ISDN access) Tj T* -0.0569 Tc 0.2575 Tw (lines with two channels and 2,326 ISDN access lines with 30 channels, amounting to over 114,400 total ISDN channels.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0159 Tc 2.6539 Tw (Private Branch Exchange Services. ) Tj 0 Tc 0.0898 Tw ( ) Tj 160.56 0 TD /F3 10.08 Tf -0.0408 Tc 2.8815 Tw (MAT\301V offers private branch exchange services through one of its subsidiaries,) Tj -174.96 -12 TD -0.0077 Tc 2.3683 Tw (MAT\301Vcom Kft. As of December 31, 1999, MAT\301Vcom Kft. leased approximately 75,000 ports. The vast majority of the) Tj 0 -12 TD -0.0583 Tc 1.8119 Tw (equipment leased is digital and meets the demands of developing technologies such as ISDN and digital enhanced cordless) Tj T* -0.0105 Tc 0.2111 Tw (telecommunications. In August, 1999 MAT\301Vcom extended its activity into LAN services.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0698 Tc 0.2599 Tw (Calling Cards. ) Tj 62.88 0 TD /F3 10.08 Tf -0.0431 Tc 0.8649 Tw ( In July 1998, the Company introduced the MAT\301V World Card, which allows customers to make calls from) Tj -77.28 -12 TD -0.0578 Tc 0.9425 Tw (any touch tone telephone both domestically and abroad. Customers can pay for the calls in Hungarian Forints as part of their) Tj 0 -12 TD -0.0559 Tc 0.2566 Tw (telephone bills. By December 31, 1999, customers had subscribed for over 85,000 World Cards.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0028 Tc 2.7325 Tw (Directory Assistance.) Tj 0 Tc 0.0898 Tw ( ) Tj 94.32 0 TD /F3 10.08 Tf -0.0558 Tc 3.081 Tw ( The Company offers customers directory inquiry services. Since March 1, 1997 the Company) Tj -108.72 -12 TD -0.0436 Tc 0.2562 Tw (introduced a new, high quality directory assistance service, which received over 100 million inquiries by the end of 1999. In May) Tj 0 -12 TD -0.0403 Tc 1.4676 Tw (1999, the service was further developed to offer a call completion option, whereby calls may be connected automatically. In) Tj T* -0.0449 Tc 0.2456 Tw (October, 1998 the directory assistance service received an ISO 9002 qualification.) Tj ET endstream endobj 53 0 obj 3776 endobj 51 0 obj << /Type /Page /Parent 32 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 52 0 R >> endobj 55 0 obj << /Length 56 0 R >> stream BT 276.96 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0619 Tc 0 Tw (xii) Tj -249.12 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0522 Tc 0 Tw (Subscribers) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0298 Tc 2.7955 Tw (The following table sets forth information regarding total fixed access lines and penetration rates in MAT\301V's local) Tj -14.4 -12 TD -0.0823 Tc 0.2829 Tw (concession areas:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 259.92 0 TD ( ) Tj 66.96 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -326.88 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 259.92 0 TD ( ) Tj 21.12 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 288.72 681.36 57.6 0.72 re f 346.32 681.36 0.72 0.72 re f 347.04 681.36 10.08 0.72 re f 357.12 681.36 0.72 0.72 re f 357.84 681.36 56.88 0.72 re f 414.72 681.36 0.72 0.72 re f 415.44 681.36 10.08 0.72 re f 425.52 681.36 0.72 0.72 re f 426.24 681.36 56.88 0.72 re f BT 27.84 658.8 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0257 Tc 0.2263 Tw (Lines in service in MAT\301V's local concession areas:) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj ET 288.72 668.4 57.6 0.72 re f 357.12 668.4 57.6 0.72 re f 425.52 668.4 57.6 0.72 re f BT 27.84 646.56 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1613 Tc 0.0393 Tw ( Residential lines ................................................................) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (1,982,186) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,201,366) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,370,579) Tj -413.76 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1632 Tc 0.0375 Tw ( Business lines ....................................................................) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (347,737) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (362,828) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (378,605) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0051 Tc 0.2057 Tw ( Public payphones ....) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (......................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (.............................) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (35,468) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (36,954) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (36,205) Tj -426.48 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1887 Tc 0.0119 Tw ( Total ...............................................................................) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,365,391) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,601,148) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,785,389) Tj ET 288.72 618.72 57.6 0.72 re f 357.12 618.72 57.6 0.72 re f 425.52 618.72 57.6 0.72 re f BT 27.84 596.88 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1604 Tc 0.0402 Tw (ISDN channels ......................................................................) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (38,520) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (70,642) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (114,466) Tj -421.44 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1887 Tc 0.0119 Tw ( Total ...............................................................................) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,403,911) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,671,790) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,899,855) Tj ET 288.72 593.52 57.6 0.72 re f 357.12 593.52 57.6 0.72 re f 425.52 593.52 57.6 0.72 re f BT 276.96 569.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj ET 288.72 580.56 57.6 0.72 re f 288.72 579.12 57.6 0.72 re f 357.12 580.56 57.6 0.72 re f 357.12 579.12 57.6 0.72 re f 425.52 580.56 57.6 0.72 re f 425.52 579.12 57.6 0.72 re f BT 27.84 557.28 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.043 Tc 0.2437 Tw (Lines installed per 100 inhabitants:) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0968 Tc 0.1038 Tw ( in MAT\301V's local concession areas ...................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (31.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (35.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (38.6) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1134 Tc 0.0872 Tw (Waiting list \(in thousands\)\(1\) ...............................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 55.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (23) Tj 20.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (30) Tj 20.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (38) Tj -444.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0403 Tc 0.241 Tw (Digital exchange capacity as % of MAT\301V's total exchange) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 65.52 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1791 Tc 0.0215 Tw ( capacity .............................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (70.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (75.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (79.0) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0038 Tc 0.2396 Tw (The waiting list consists of customers whose application for connection to an access line has been outstanding f) Tj 362.4 0 TD 0.0035 Tc 0.2741 Tw (or 60 days or more. Year-end promotions like) Tj -362.4 -9.36 TD 0.003 Tc 0 Tw (the one in 1998 and 1999 often generate demand in high density areas which can delay connections.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1296 Tc 0 Tw (MAT\301V) Tj -3.3533 Tc (\222) Tj -0.0495 Tc 2.1187 Tw (s domestic fixed line telephony subscribers are primarily in two categories: residential customers and business) Tj -14.4 -12 TD -0.0381 Tc 0.7187 Tw (customers. MAT\301V includes the government among its business customers. As of December 31, 1999, 81.8 percent of MAT\301V's) Tj 0 -12 TD -0.0546 Tc 1.6503 Tw (access lines were connected to residential customers and 17.0 percent to business customers. In 1999, residential customers) Tj T* -0.0458 Tc 2.1365 Tw (accounted for 46.9 percent and business customers accounted for 49.1 percent of MAT\301V's domestic traffic revenues. The) Tj T* -0.0452 Tc 2.1792 Tw (remaining 1.2 percent of access lines were connected to public pay phones, which accounted for 4.0 percent of MAT\301V's) Tj T* -0.0473 Tc 0.248 Tw (domestic traffic revenues in 1999. MAT\301V's top 250 customers account for less than 15 percent of the Company's revenues.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0461 Tc 1.0591 Tw (The Hungarian government, through its various institutions and departments, constitutes MAT\301V's largest customer group.) Tj -14.4 -12 TD -0.0479 Tc 0.8556 Tw (MAT\301V develops separate service packages for each of these institutions and departments, because each generally has its own) Tj 0 -12 TD -0.0443 Tc 0.525 Tw (annual budget, particular telecommunications needs, independent organization and responsibility. From a strategic perspective,) Tj T* -0.035 Tc 0.9557 Tw (however, MAT\301V considers the Hungarian government to be a single customer. MAT\301V offers its largest customers, including) Tj T* -0.0381 Tc 1.1422 Tw (the government, discounts for the services it provides. MAT\301V estimates that revenues from the Hungarian government in the) Tj T* -0.0419 Tc 0.3865 Tw (aggregate accounted for less than ten percent of its total revenues in 1999. A substantial majority of these revenues were related) Tj T* -0.0334 Tc 0.2341 Tw (to services provided under MAT\301V's exclusive concession rights.) Tj ET endstream endobj 56 0 obj 10550 endobj 54 0 obj << /Type /Page /Parent 32 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 55 0 R >> endobj 59 0 obj << /Length 60 0 R >> stream BT 275.52 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0608 Tc 0 Tw (xiii) Tj -247.68 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0416 Tc 0 Tw (Traffic) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0184 Tc 0.7696 Tw (The following table sets forth the total minutes of domestic telephony traffic that MAT\301V's fixed line subscribers generated,) Tj -14.4 -12 TD -0.0366 Tc 0.2372 Tw (including calls from the fixed line network to mobile subscribers:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 259.92 0 TD ( ) Tj 49.92 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj -309.84 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 259.92 0 TD ( ) Tj 21.12 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 288.72 669.36 57.6 0.72 re f 346.32 669.36 0.72 0.72 re f 347.04 669.36 10.08 0.72 re f 357.12 669.36 0.72 0.72 re f 357.84 669.36 56.88 0.72 re f 414.72 669.36 0.72 0.72 re f 415.44 669.36 10.08 0.72 re f 425.52 669.36 0.72 0.72 re f 426.24 669.36 56.88 0.72 re f BT 27.84 646.8 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 259.92 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj ET 288.72 656.4 57.6 0.72 re f 357.12 656.4 57.6 0.72 re f 425.52 656.4 57.6 0.72 re f BT 27.84 634.56 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.054 Tc 0.1466 Tw (Domestic traffic \(in thousands of minutes\) ........................) Tj 259.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (6,977,733) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (7,758,741) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (8,632,345) Tj -413.76 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.0508 Tc 0 Tw (Tariffs) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0479 Tc 1.1035 Tw (MAT\301V charges fixed line subscribers a one-time entrance fee, monthly subscription charges and traffic charges based on) Tj -14.4 -12 TD -0.0067 Tc 1.394 Tw (usage. MAT\301V's tariffs for its fixed line voice telephony services are regulated by the Minister. MAT\301V may, however, offer) Tj 0 -12 TD -0.0334 Tc 0.234 Tw (services at prices lower than those established by the Minister.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0572 Tc 1.3731 Tw (Until December 31, 1998, traffic charges were based on a fixed-price pulse. Commencing January 1, 1999, the Company) Tj -14.4 -12 TD -0.0418 Tc 0.2784 Tw (introduced a time-based billing system. Under this system, a call charge contains two elements: a call set-up charge and a traffic) Tj 0 -12 TD -0.0733 Tc 0.274 Tw (charge measured in seconds based on the call's duration.) Tj ET endstream endobj 60 0 obj 3258 endobj 57 0 obj << /Type /Page /Parent 58 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 59 0 R >> endobj 62 0 obj << /Length 63 0 R >> stream BT 276 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0138 Tc 0 Tw (xiv) Tj -248.16 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.037 Tc 0.3291 Tw (The following table sets forth the Company's domestic fixed line tariffs at January 1 in each of the following years in nominal) Tj -14.4 -12 TD -0.0635 Tc 0.2642 Tw (Hungarian Forints:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 154.8 0 TD ( ) Tj 123.84 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0248 Tc -0.0051 Tw (At January 1,\(1\)) Tj 186.72 -0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -465.36 -12.96 TD ( ) Tj 154.8 0 TD ( ) Tj 32.64 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 50.88 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 24.72 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.04 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 28.8 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 50.88 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 24.72 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (2000) Tj 50.88 -0.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET 191.52 693.36 64.8 0.72 re f 256.32 693.36 0.72 0.72 re f 257.04 693.36 10.08 0.72 re f 267.12 693.36 0.72 0.72 re f 267.84 693.36 64.08 0.72 re f 331.92 693.36 0.72 0.72 re f 332.64 693.36 10.32 0.72 re f 342.96 693.36 0.72 0.72 re f 343.68 693.36 64.08 0.72 re f 407.76 693.36 0.72 0.72 re f 408.48 693.36 10.08 0.72 re f 418.56 693.36 0.72 0.72 re f 419.28 693.36 64.08 0.72 re f BT 27.84 670.8 TD ( ) Tj 154.8 0 TD ( ) Tj 107.52 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0234 Tc -0.0037 Tw (\(HUF, exclusive of VAT\)) Tj 203.04 -0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET 191.52 680.4 64.8 0.72 re f 267.12 680.4 64.8 0.72 re f 342.96 680.4 64.8 0.72 re f 418.56 680.4 64.8 0.72 re f BT 27.84 658.56 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0367 Tc 0.2374 Tw (Entrance fee:\(2\)) Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 72.72 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 6.96 0 TD ( ) Tj 68.88 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1553 Tc 0.0453 Tw ( Residential ....................................) 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Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (180,000) Tj 39.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (180,000) Tj 35.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 333.84 558.24 9.12 11.52 re h W n BT 333.84 560.64 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(6\)) Tj ET Q BT 373.92 560.64 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (125,000) Tj 39.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 41.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (99,000) Tj 34.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -461.28 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1701 Tc 0.0305 Tw ( Multiplex ......................................) 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Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0852 Tc 0 Tw (38,250-46,500) Tj 65.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0852 Tc 0 Tw (38,250-46,500) Tj 62.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 334.56 497.04 8.4 11.52 re h W n BT 334.56 499.44 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(6\)) Tj ET Q BT 347.76 499.44 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0852 Tc 0 Tw (49,000-63,800) Tj 65.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0852 Tc 0 Tw (53,400-69,900) Tj 65.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -461.28 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0617 Tc 0.2623 Tw (Charge for a three minute peak) Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 72.72 0 TD ( ) Tj 6.72 0 TD ( ) Tj 68.88 0 TD ( ) Tj 11.04 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0043 Tc 0.2049 Tw ( rate call:) Tj 162.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 64.8 0 TD ( ) Tj 6.72 0 TD ( ) Tj 68.88 0 TD ( ) Tj 11.04 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0308 Tc 0.2315 Tw ( Local) Tj 0 -12 TD 0.2006 Tc 0 Tw (.............................................) Tj 154.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 49.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (18.00) Tj 29.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 46.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (31.20) Tj 33.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (31.80) Tj 26.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 410.4 460.32 8.16 11.52 re h W n BT 410.4 462.72 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(7\)) Tj ET Q BT 445.68 462.72 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0.2914 Tw (27.60 \(7\)) Tj 45.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -463.68 -24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0211 Tc 0.2217 Tw ( From the fixed line network to) Tj 162.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 64.8 0 TD ( ) Tj 6.72 0 TD ( ) Tj 68.88 0 TD ( ) Tj 11.04 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0662 Tc 0.2669 Tw ( mobile subscribers) Tj 0 -12 TD 0.2006 Tc 0 Tw (......................) Tj 154.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 44.88 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (144.00) Tj 34.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 41.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (176.80) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (186.60) Tj 31.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 410.4 424.08 8.16 11.52 re h W n BT 410.4 426.48 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(7\)) Tj ET Q BT 440.64 426.48 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0.2981 Tw (186.00 \(7\)) Tj 50.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -463.68 -24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0442 Tc 0.2448 Tw ( Domestic long distance:) Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 72.72 0 TD ( ) Tj 6.72 0 TD ( ) Tj 68.88 0 TD ( ) Tj 11.04 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0521 Tc 0.1486 Tw ( Zone 1 \(Extended local\) .............) Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 49.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (36.00) Tj 29.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 46.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (41.60) Tj 33.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (33.60) Tj 26.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 410.4 387.84 8.16 11.52 re h W n BT 410.4 390.24 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(7\)) Tj ET Q BT 445.68 390.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0.2914 Tw (27.60 \(7\)) Tj 45.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -463.68 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0608 Tc 0.2614 Tw ( Zone 2 \(Budapest) Tj 162.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 64.8 0 TD ( ) Tj 6.72 0 TD ( ) Tj 68.88 0 TD ( ) Tj 11.04 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0394 Tc 0.1612 Tw ( metropolitan area\)\(8\) ..............) Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 69.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 10.08 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 46.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (41.60) Tj 33.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (46.20) Tj 26.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 410.4 363.36 8.16 11.52 re h W n BT 410.4 365.76 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(7\)) Tj ET Q BT 445.68 365.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0.2914 Tw (45.60 \(7\)) Tj 45.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -463.68 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0697 Tc 0.2703 Tw ( Zone 2 \(Near long) Tj 162.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 64.8 0 TD ( ) Tj 6.72 0 TD ( ) Tj 68.88 0 TD ( ) Tj 11.04 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 64.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1202 Tc 0.0804 Tw ( distance\)\(9\) .............................) Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 49.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (99.00) Tj 29.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 65.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 14.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 61.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 14.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 61.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 14.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -465.36 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0435 Tc 0.1571 Tw ( Zone 3 \(Long distance\) ..............) Tj 154.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 49.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (99.00) Tj 29.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 41.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (104.00) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (98.40) Tj 26.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 410.4 326.64 8.16 11.52 re h W n BT 410.4 329.04 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(7\)) Tj ET Q BT 445.68 329.04 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0.2914 Tw (87.00 \(7\)) Tj 45.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -463.68 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0042 Tc -0.0008 Tw (Reflects listed tariffs. From time to time, the Company may offer promotions and discounts from these listed tariffs.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(2\)) Tj 15.84 0 TD 0.0037 Tc 0.2212 Tw (The Company agreed with the Minister to discount entrance fees from those listed by at least 30 percent on average in 1998. There was no similar agreement) Tj 0 -9.36 TD 0.0022 Tc 0.0012 Tw (in 1999.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(3\)) Tj 15.84 0 TD 0.0036 Tc -0 Tw (Effective October 15, 1997, the residential entrance fee was decreased to HUF 27,000.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(4\)) Tj 15.84 0 TD 0.0034 Tc 0.607 Tw (Effective January 15, 1997, the business entrance fee was decreased to HUF 72,000, and effective October 15, 1997,) Tj 385.92 0 TD 0.0043 Tc 0.7191 Tw ( the business entrance fee was further) Tj -385.92 -9.36 TD 0.0031 Tc 0 Tw (decreased to HUF 60,000.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(5\)) Tj 15.84 0 TD 0.0034 Tc -0 Tw (Included 20 free pulses until the end of 1998. From January 1, 1999, no usage discount is included in the monthly subscription fee.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(6\)) Tj 15.84 0 TD 0.0035 Tc 0.4298 Tw (From February 1, 1998, the former tariffs changed. The basic entrance fee decreased to HUF 150,000, while the multiplex entrance fee did not change. The) Tj 0 -9.36 TD 0.0035 Tc -0 Tw (basic subscription fees increased to HUF 2,800-5,700, while the multiplex subscription fee increased to HUF 41,900-56,900.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(7\)) Tj 15.84 0 TD 0.0035 Tc -0 Tw (Includes a call set-up ch) Tj 78.48 0 TD 0.0024 Tc 0.001 Tw (arge \(HUF 6.60 in 1999, HUF 6.00 in 2000\).) Tj -94.32 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(8\)) Tj 15.84 0 TD 0.0037 Tc -0 Tw (This new zone was created in the new tariff regime with effect from January 1, 1998. Prior to January 1, 1998, these calls were included in Zone 1.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(9\)) Tj 15.84 0 TD 0.0029 Tc 0 Tw (As of January 1, 1998, near long distance Zone 2 and Zone 3 were combined into Zone 3.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0423 Tc 1.235 Tw (MAT\301V's one-time entrance fee and monthly subscription charge are different for residential and business customers. The) Tj -14.4 -12 TD -0.0336 Tc 1.4766 Tw (Company does not charge its business and residential customers different traffic tariffs. MAT\301V charges the same tariffs for) Tj 0 -12 TD -0.0371 Tc 0.9686 Tw (voice traffic on fixed telephone lines and on ISDN lines. In 1999, the Company's tariffs for data traffic on ISDN lines were 25) Tj T* -0.0476 Tc 0.2482 Tw (percent higher than for voice traffic. MAT\301V decreased this data surcharge to 10 percent on January 1, 2000.) Tj ET endstream endobj 63 0 obj 19671 endobj 61 0 obj << /Type /Page /Parent 58 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 62 0 R >> endobj 65 0 obj << /Length 66 0 R >> stream BT 277.44 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0494 Tc 0 Tw (xv) Tj -249.6 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0293 Tc 1.2605 Tw (Tariff Rebalancing. ) Tj 0 Tc 0.0898 Tw ( ) Tj 88.08 0 TD /F3 10.08 Tf -0.0226 Tc 1.5193 Tw (Historically, MAT\301V, like government-owned operators in other countries, maintained relatively low) Tj -102.48 -12 TD -0.0482 Tc 0.5312 Tw (subscription charges and relatively high tariffs for domestic long distance and international calls. Since 1995, the Company has) Tj 0 -12 TD -0.0367 Tc 0.7426 Tw (been gradually rebalancing its tariffs within the constraints of the price cap regime to more closely reflect the underlying costs) Tj T* -0.0321 Tc 2.8727 Tw (of services. See ") Tj 3.3667 Tc -0.5261 Tw (\227 ) Tj -0.0381 Tc 2.9587 Tw (Regulation and Pricing." MAT\301V has already made significant progress in this rebalancing. From) Tj T* -0.0677 Tc 0.695 Tw (December 31, 1997 through December 31, 1999, in real terms the Company increased its monthly subscription charges by 22.4) Tj T* -0.0347 Tc 1.8269 Tw (percent, increased its local tariffs by 18.0 percent, decreased charges for calls from fixed line to mobile telephones by 2.1) Tj T* -0.0483 Tc 0.249 Tw (percent and decreased domestic long distance tariffs by 12.5 percent.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0572 Tc 1.9512 Tw (The Company has accelerated its drive toward tariff rebalancing for 2000 to stimulate usage and to prepare for future) Tj -14.4 -12 TD -0.0454 Tc 0.8813 Tw (competition. The monthly subscription fee increased significantly in both nominal and real terms over 1999. In contrast, usage) Tj 0 -12 TD -0.0688 Tc 0.2695 Tw (charges decreased on average in both nominal and real terms against 1999 tariffs.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.0479 Tc 0.1376 Tw (Public Telephones) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0524 Tc 1.7197 Tw (As of December 31, 1999, MAT\301V operated 36,205 public pay phones, representing a penetration rate of 4.8 per 1,000) Tj -14.4 -12 TD -0.0471 Tc 1.8157 Tw (inhabitants in MAT\301V's concession areas. Approximately 45 percent of these telephones were card operated. The Company) Tj 0 -12 TD -0.0457 Tc 0.7743 Tw (plans to continue to increase the ratio of card-operated public pay phones. The traffic tariffs charged for calls from public pay) Tj T* -0.0549 Tc 0.2555 Tw (phones are at a slight premium to those charged to fixed line subscribers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0066 Tc -0.0045 Tw (International Telephone Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0502 Tc 1.108 Tw (The Company has the exclusive right to provide international public telephony services throughout Hungary. International) Tj -14.4 -12 TD -0.038 Tc 1.1027 Tw (telephone services consist of outgoing and incoming international telephony traffic, including voice, data and switched transit) Tj 0 -12 TD -0.0454 Tc 1.5741 Tw (traffic through Hungary. In 1999, outgoing international telephony traffic generated revenues of HUF 21,215 million before) Tj T* -0.0367 Tc 2.5266 Tw (intersegment eliminations, and incoming international telephony traffic generated revenues of HUF 22,592 million before) Tj T* -0.0175 Tc 0.2182 Tw (intersegment eliminations.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.0362 Tc 0.126 Tw (Products and Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0353 Tc 2.5909 Tw (MAT\301V provides international calling access to its fixed line telephony subscribers and to subscribers of other local) Tj -14.4 -12 TD -0.0475 Tc 1.4001 Tw (telephone operators and mobile service providers. In 1992, MAT\301V introduced Hungary Direct and Country Direct services,) Tj 0 -12 TD -0.0608 Tc 2.0481 Tw (which permit customers to charge calls made from abroad to their home phone numbers. In 1997, MAT\301V began offering) Tj T* -0.0391 Tc 3.0238 Tw (international "green" numbers, which allow businesses to provide toll-free access to their customers. MAT\301V also sells) Tj T* -0.0285 Tc 2.8863 Tw (international leased lines, including international managed leased lines, and international ISDN, X.400, X.25, telex and) Tj T* -0.0425 Tc 1.5032 Tw (telegraph services. International ATM connections were launched with Deutsche Telekom and Teleglobe in 1999 to meet the) Tj T* -0.0469 Tc 0.2476 Tw (increasing demand for Internet capacity.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0188 Tc 0.6994 Tw (In December, 1999 MAT\301V launched an IP based telephone service. With MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.042 Tc 0.9626 Tw (s IP Tel Card, calls can be made to any) Tj -14.16 -12 TD -0.0401 Tc 0.6955 Tw (country of the world substantially cheaper than from traditional fixed lines. IP Tel Card customers do not need Internet access,) Tj 0 -12 TD -0.0638 Tc 0.2645 Tw (or even a computer.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0376 Tc 2.5982 Tw (MAT\301V completes international calls terminating in Hungary originated by subscribers of foreign telecommunications) Tj -14.4 -12 TD -0.0513 Tc 0.252 Tw (operators. The Company also provides such operators with transit traffic services.) Tj ET endstream endobj 66 0 obj 5685 endobj 64 0 obj << /Type /Page /Parent 58 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 65 0 R >> endobj 68 0 obj << /Length 69 0 R >> stream BT 276 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0138 Tc 0 Tw (xvi) Tj -248.16 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0416 Tc 0 Tw (Traffic) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0427 Tc 1.5074 Tw (The following table sets forth information regarding international telephony traffic to and from Hungary, including other) Tj -14.4 -12 TD -0.042 Tc 3.1547 Tw (local telephone operators' and mobile services' international traffic and transit traffic through Hungary. In addition to) Tj 0 -12 TD -0.0364 Tc 0.237 Tw (international traffic through fixed lines and mobile service providers) Tj -3.3533 Tc 3.5539 Tw (\222 ) Tj -0.0338 Tc 0.3944 Tw (the figures also include traffic based on IP technology, but) Tj T* -0.0321 Tc 0.2327 Tw (do not include traffic through international leased lines.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 216.72 0 TD ( ) Tj 71.52 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj -288.24 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 216.72 0 TD ( ) Tj 26.4 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 52.8 -0.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 26.4 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 52.8 -0.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 26.4 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 52.8 -0.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET 245.52 657.36 68.4 0.72 re f 313.92 657.36 0.72 0.72 re f 314.64 657.36 10.08 0.72 re f 324.72 657.36 0.72 0.72 re f 325.44 657.36 67.68 0.72 re f 393.12 657.36 0.72 0.72 re f 393.84 657.36 10.08 0.72 re f 403.92 657.36 0.72 0.72 re f 404.64 657.36 67.68 0.72 re f 472.32 657.36 0.72 0.72 re f 473.04 657.36 10.08 0.72 re f BT 27.84 634.8 TD ( ) Tj 216.72 0 TD ( ) Tj 14.88 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0445 Tc -0.0248 Tw (\(millions of minutes, except for percentages and ratios\)) Tj ET 245.52 644.4 68.4 0.72 re f 324.72 644.4 68.4 0.72 re f 403.92 644.4 68.4 0.72 re f BT 27.84 622.56 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0213 Tc 0.2219 Tw (Outgoing traffic:) Tj 216.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1179 Tc 0.0827 Tw ( Germany and Austria ........................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (106.8) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (37.2) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (109.2) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (36.9) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (118.5) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (36.5) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj -446.4 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0008 Tc 0.1998 Tw ( Neighboring countries other than Austria ..........) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (44.3) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (15.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (47.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (16.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (54.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (16.8) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1585 Tc 0.0422 Tw ( United States .....................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (14.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.2) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (13.1) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (4.4) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (14.1) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (4.3) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1504 Tc 0.0502 Tw ( United Kingdom ................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (16.8) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.9) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (17.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.9) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (18.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.8) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0225 Tc 0.1782 Tw ( Italy) Tj 0 -12 TD 0.2006 Tc 0 Tw (...................................................................) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (16.0) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.6) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (16.8) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.7) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (18.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.7) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.14 Tc 0.0606 Tw ( All other countries .............................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (88.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (91.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (100.0) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.96 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0183 Tc 0.219 Tw ( Total outgoing traffic) Tj 0 -12 TD 0.2006 Tc 0 Tw (......................................) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (287.0) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (100.0) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (296.3) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (100.0) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (324.5) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (100.0) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj ET 245.52 534 28.8 0.72 re f 285.12 534 28.8 0.72 re f 324.72 534 28.8 0.72 re f 364.32 534 28.8 0.72 re f 403.92 534 28.8 0.72 re f 443.52 534 28.8 0.72 re f BT 27.84 498.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0491 Tc 0.2497 Tw (Growth in total outgoing traffic \(% per annum\) ....) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (6.1) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (3.2) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 14.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.5) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET 245.52 509.28 28.8 0.72 re f 245.52 507.84 28.8 0.72 re f 285.12 509.28 28.8 0.72 re f 285.12 507.84 28.8 0.72 re f 324.72 509.28 28.8 0.72 re f 324.72 507.84 28.8 0.72 re f 364.32 509.28 28.8 0.72 re f 364.32 507.84 28.8 0.72 re f 403.92 509.28 28.8 0.72 re f 403.92 507.84 28.8 0.72 re f 443.52 509.28 28.8 0.72 re f 443.52 507.84 28.8 0.72 re f BT 233.76 485.04 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0213 Tc 0.2219 Tw (Incoming traffic:) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.72 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj 28.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1179 Tc 0.0827 Tw ( Germany and Austria ........................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (115.1) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (35.5) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (128.9) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (34.4) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (157.6) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (35.7) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj -446.4 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0008 Tc 0.1998 Tw ( Neighboring countries other than Austria ..........) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (33.0) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (10.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (37.6) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (10.0) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (41.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.4) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1585 Tc 0.0422 Tw ( United States .....................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.0) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.2) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (26.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (7.0) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (58.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (13.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1504 Tc 0.0502 Tw ( United Kingdom ................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (26.3) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (8.1) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (42.3) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (11.3) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (49.0) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (11.1) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0225 Tc 0.1782 Tw ( Italy) Tj 0 -12 TD 0.2006 Tc 0 Tw (...................................................................) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (18.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.7) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (19.6) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (5.2) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (18.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (4.1) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.14 Tc 0.0606 Tw ( All other countries .............................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (101.7) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (31.3) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (119.7) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (32.1) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (116.7) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (26.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.96 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1266 Tc 0.0741 Tw ( Total incoming traffic .....................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (324.6) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (100.0) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (374.5) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (100.0) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj 13.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (441.2) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (100.0) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.8678 Tc 0 Tw (%) Tj ET 245.52 384.24 28.8 0.72 re f 285.12 384.24 28.8 0.72 re f 324.72 384.24 28.8 0.72 re f 364.32 384.24 28.8 0.72 re f 403.92 384.24 28.8 0.72 re f 443.52 384.24 28.8 0.72 re f BT 27.84 359.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0513 Tc 0.2519 Tw (Growth in total incoming traffic \(% per annum\) ...) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (15.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (15.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 14.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (17.8) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET 245.52 370.32 28.8 0.72 re f 245.52 368.88 28.8 0.72 re f 285.12 370.32 28.8 0.72 re f 285.12 368.88 28.8 0.72 re f 324.72 370.32 28.8 0.72 re f 324.72 368.88 28.8 0.72 re f 364.32 370.32 28.8 0.72 re f 364.32 368.88 28.8 0.72 re f 403.92 370.32 28.8 0.72 re f 403.92 368.88 28.8 0.72 re f 443.52 370.32 28.8 0.72 re f 443.52 368.88 28.8 0.72 re f BT 27.84 346.08 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0598 Tc 0.1408 Tw (Ratio of incoming to outgoing traffic ................ ...) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.13) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.26) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 14.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.36) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.072 Tc 0.1286 Tw (Transit traffic \(millions of minutes\) ......................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (23.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (35.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw ( -) Tj 16.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (60.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 14.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -454.32 -12.24 TD ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0306 Tc 0.9133 Tw (A substantial portion of international traffic in terms of minutes consists of calls to and from Germany, Austria, the United) Tj -14.4 -12 TD -0.0359 Tc 1.0499 Tw (States, the United Kingdom and Italy, which, in the aggregate, accounted for approximately 52 percent of the outgoing traffic) Tj 0 -12 TD -0.0439 Tc 1.3245 Tw (and 64 percent of the incoming traffic in 1999. Business customers make a substantial majority of the outgoing international) Tj T* 0.0114 Tc 0.1892 Tw (calls carried by MAT\301V.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0566 Tc 0.3639 Tw (In 1997, 1998 and 1999, growth in incoming traffic outpaced growth in outgoing traffic. The Company believes that outgoing) Tj -14.4 -12 TD -0.0488 Tc 0.7421 Tw (traffic did not increase as rapidly as incoming traffic in part because customers are increasingly using leased lines and private) Tj 0 -12 TD -0.0593 Tc 1.2466 Tw (branch exchange services such as call blocking, and in part because dramatic decreases in tariffs charged by foreign service) Tj T* -0.0613 Tc 0.2619 Tw (providers increased inbound calls.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.0508 Tc 0 Tw (Tariffs) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0413 Tc 1.538 Tw (Until December 1998, MAT\301V's international traffic charges were based on a fixed-price pulse. Commencing January 1,) Tj -14.4 -12 TD -0.019 Tc 2.1017 Tw (1999, MAT\301V switched to time-based billing. The call charge for an international call, like that for a domestic call, now) Tj 0 -12 TD -0.056 Tc 0.2566 Tw (contains two elements: a call set-up charge, and a traffic charge measured in seconds based on the call's duration.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0489 Tc 1.399 Tw (The following table shows the change since 1997, in nominal Hungarian Forints, in the charge for a three-minute call to) Tj ET endstream endobj 69 0 obj 23504 endobj 67 0 obj << /Type /Page /Parent 58 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 68 0 R >> endobj 71 0 obj << /Length 72 0 R >> stream BT 274.56 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0041 Tc 0 Tw (xvii) Tj -246.72 693.6 TD /F3 10.08 Tf -0.0248 Tc 0.2254 Tw (selected destinations:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 180.72 -11.76 TD ( ) Tj 10.8 0 TD ( ) Tj 106.8 0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0165 Tc 0.0032 Tw (At January 1,) Tj -117.6 -13.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 21.12 0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 43.2 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 25.2 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 15.6 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0237 Tc 0 Tw (1999\(1\)) Tj 52.8 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.6 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0237 Tc 0 Tw (2000\(2\)) Tj ET 220.32 729.36 57.6 0.72 re f 277.92 729.36 0.72 0.72 re f 278.64 729.36 10.08 0.72 re f 288.72 729.36 0.72 0.72 re f 289.44 729.36 56.88 0.72 re f 346.32 729.36 0.72 0.72 re f 347.04 729.36 10.08 0.72 re f 357.12 729.36 0.72 0.72 re f 357.84 729.36 56.88 0.72 re f 414.72 729.36 0.72 0.72 re f 415.44 729.36 10.08 0.72 re f 425.52 729.36 0.72 0.72 re f 426.24 729.36 56.88 0.72 re f BT 208.56 707.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 84.96 0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0234 Tc -0.0037 Tw (\(HUF, exclusive of VAT\)) Tj ET 220.32 716.4 57.6 0.72 re f 288.72 716.4 57.6 0.72 re f 357.12 716.4 57.6 0.72 re f 425.52 716.4 57.6 0.72 re f BT 27.84 694.56 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0607 Tc 0.2614 Tw (Neighboring countries) Tj 0 -12 TD 0.2006 Tc 0 Tw (.................................) Tj 183.6 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (216.00) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (249.60) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (244.20) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (222.00) Tj -415.92 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.149 Tc 0.0517 Tw (Other Europe ..............................................) Tj 183.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (288.00) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (332.80) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (330.60) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (285.00) Tj -415.92 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0808 Tc 0.1198 Tw (United States and Canada ...........................) Tj 183.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (486.00) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (364.00) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (339.60) Tj 41.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (294.00) Tj -415.92 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0033 Tc 0 Tw (Includes a call set-up charge of HUF 6.60.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(2\)) Tj 15.84 0 TD 0.0033 Tc 0 Tw (Includes a call set-up charge of HUF 6.00.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0293 Tc 0.0605 Tw (Tariff Rebalancing. ) Tj 84.48 0 TD /F3 10.08 Tf -0.0383 Tc 0.2656 Tw (Since 1995, as part of the rebalancing of its tariffs) Tj 205.68 0 TD /F1 10.08 Tf 0.0898 Tc 0 Tw (, ) Tj 5.52 0 TD /F3 10.08 Tf -0.017 Tc 0.4576 Tw (MAT\301V reduced its international tariffs for outgoing) Tj -310.08 -12 TD -0.0532 Tc 1.9479 Tw (calls moving towards rates that foreign telecommunications service providers charge for calls to Hungary and to take into) Tj 0 -12 TD -0.0483 Tc 3.9518 Tw (account the related international accounting rates. From December 31, 1997 through December 31, 1999, MAT\301V's) Tj T* -0.033 Tc 1.1336 Tw (international call tariffs fell on average by 13.4 percent in real terms. As part of its ongoing tariff rebalancing, the Company) Tj T* -0.0391 Tc 0.9998 Tw (expects to continue to lower its international tariffs to stimulate usage. International tariffs introduced in 1999 and 2000 have) Tj T* -0.0714 Tc 0.272 Tw (decreased on average in both nominal and real terms compared to 1998 and 1999, respectively.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.063 Tc 0.0268 Tw (Settlement Arrangements. ) Tj 108.96 0 TD /F3 10.08 Tf -0.0381 Tc 0.2901 Tw ( Under bilateral settlement arrangements, MAT\301V pays other carriers for the use of their networks) Tj -123.36 -12 TD -0.0475 Tc 0.8215 Tw (for outgoing international calls and receives payments from other carriers for the use of its network for incoming international) Tj 0 -12 TD -0.0416 Tc 1.0423 Tw (calls. In Europe, such settlement arrangements fall under the general auspices of the International Telecommunication Union.) Tj T* -0.0493 Tc 1.81 Tw (Settlement payments, which are generally denominated in special drawing rights, are calculated using a currency basket in) Tj T* -0.0349 Tc 0.2356 Tw (which U.S. dollars have the greatest weight.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.013 Tc 0.0767 Tw (International Telecommunications Hub) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0366 Tc 2.1272 Tw (MAT\301V believes that Hungary is well located to serve as a telecommunications gateway between Eastern and Western) Tj -14.4 -12 TD -0.0404 Tc 2.0261 Tw (Europe. MAT\301V has two state-of-the-art international gateways as well as fiber optic cable connections serving 11 border) Tj 0 -12 TD -0.0473 Tc 0.712 Tw (crossings. These fiber optic cable connections use synchronous digital hierarchy transmission facilities. The Company has X.25) Tj T* -0.0519 Tc 0.4041 Tw (links, which are used for packet switched data transmission with 83 international networks. It also has ISDN connections with 39) Tj T* -0.0573 Tc 2.1139 Tw (international networks and is a member of the Global European Network, a high-capacity integrated network management) Tj T* -0.0437 Tc 2.8693 Tw (system providing international leased lines. The Company has been developing tariff packages for transit traffic and in) Tj T* -0.0255 Tc 1.9461 Tw (conjunction with Telekom Austria, the Austrian national telecommunications operator, and ROM-TELECOM, the Romanian) Tj T* -0.0158 Tc 0.3604 Tw (national telecommunications operator, MAT\301V offers the ORIENTRANS tariff for the transmission of traffic between Asia Minor) Tj T* -0.0455 Tc 0.2462 Tw (and Western Europe.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0024 Tc -0.0086 Tw (Leased Lines) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0235 Tc 0.9591 Tw (Revenues from leased lines totalled HUF 13,816 million before intersegment eliminations in 1999. MAT\301V is the principal) Tj -14.4 -12 TD -0.0522 Tc 0.2528 Tw (provider of leased lines in Hungary.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0461 Tc 3.3817 Tw (Leased line service establishes a permanent connection for the transmission of voice and data traffic between two) Tj -14.4 -12 TD -0.0498 Tc 1.9446 Tw (geographically separate points \(point to point connection\) or between a point and several other points \(point to multipoint) Tj 0 -12 TD -0.0592 Tc 0.3918 Tw (connection\). These points can be either all within Hungary or partly in Hungary and partly abroad. The Company leases lines to) Tj T* -0.0504 Tc 0.4682 Tw (other local telephone operators and mobile service providers, who use such lines as part of their networks. It also leases lines to) Tj T* -0.0454 Tc 2.2327 Tw (providers of data services. In addition, the Company leases lines to multi-site business customers who use leased lines to) Tj T* -0.0293 Tc 0.2299 Tw (transmit voice and data traffic among their respective sites.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.059 Tc 0.7396 Tw (The Company offers a broad variety of standard analog and digital lines for lease, including two-wire and four-wire analog) Tj -14.4 -12 TD -0.0145 Tc 1.1511 Tw (lines and digital lines with capacities from 4.8 Kb/s to 2.0 Mb/s. MAT\301V also offers high capacity customized digital lines to) Tj 0 -12 TD -0.0446 Tc 0.2453 Tw (other telecommunications providers.) Tj ET endstream endobj 72 0 obj 9426 endobj 70 0 obj << /Type /Page /Parent 58 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 71 0 R >> endobj 74 0 obj << /Length 75 0 R >> stream BT 273.12 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0148 Tc 0 Tw (xviii) Tj -245.28 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0059 Tc 0.0957 Tw (Flex-Com. ) Tj 48.48 0 TD /F3 10.08 Tf -0.0345 Tc 0.3551 Tw (Since 1996, MAT\301V has offered Flex-Com, domestic and international digital leased lines with managed back-up) Tj -62.88 -12 TD -0.0481 Tc 0.5028 Tw (systems that are dedicated to transmitting data. In 1998, the Company launched the Flex-Com NMS \(VSN\) network management) Tj 0 -12 TD -0.0249 Tc 0.5784 Tw (system and ISDN-Flex and Voice-Flex services. In 1999, MAT\301V increased its Flex-Com connections from 5,170 to 7,007 lines.) Tj T* -0.0379 Tc 2.6386 Tw (In 1999, higher quality \(Gold and Silver\), secure access, and quick installation \(Express, Profi\) Flex-Com services were) Tj T* -0.0423 Tc 3.01 Tw (introduced. The Gold and the Silver quality services increase the annual availability to 99.9 percent and 99.7 percent) Tj T* -0.0358 Tc 1.1824 Tw (respectively, as compared to the 99.5 percent annual availability of the FLEX-Com basic service. The secure access provides) Tj T* -0.0605 Tc 0.7145 Tw (two way subscriber access through separate routes or transmission media at one termination point of the connection. The quick) Tj T* -0.048 Tc 0.6887 Tw (installation services are connected within ten days \(Express\) or within five days \(Profi\) as compared to the normal provisioning) Tj T* -0.0447 Tc 0.2453 Tw (time \(20 days\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0335 Tc 0.5362 Tw (Frame-Flex. ) Tj 56.88 0 TD /F3 10.08 Tf -0.0248 Tc 1.4255 Tw (MAT\301V also uses its managed leased line network to offer Frame-Flex, a public frame relay service that is) Tj -71.28 -12 TD -0.0523 Tc 0.5596 Tw (particularly suited to customers who transmit data in bursts, such as connections between local area networks. At December 31,) Tj 0 -12 TD -0.0267 Tc 0.2273 Tw (1999, MAT\301V had 635 Frame-Flex connections.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0462 Tc 0.9535 Tw (The Company's leased line customers pay a one-time connection fee based on the type of line leased. Monthly subscription) Tj -14.4 -12 TD -0.0323 Tc 0.663 Tw (charges vary with the type and length of line leased and, in some cases, with the term of the lease. With the exception of leased) Tj 0 -12 TD -0.0304 Tc 2.3279 Tw (lines required for connection with other networks, leased line tariffs are not subject to regulation. As part of the overall) Tj T* -0.0265 Tc 2.3871 Tw (rebalancing of its tariffs, MAT\301V has reduced its leased line tariffs in real terms over the last few years in response to) Tj T* -0.001 Tc 0 Tw (competition.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0155 Tc 0.0044 Tw (Data Transmission and Related Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0415 Tc 0.4021 Tw (Revenues from data transmission and related services totalled HUF 11,464 million before intersegment eliminations in 1999.) Tj -14.4 -12 TD -0.0517 Tc 0.3723 Tw (Data transmission and related services consist primarily of data transmission, telex and network services for business customers,) Tj 0 -12 TD -0.0424 Tc 2.0924 Tw (such as financial institutions and insurance companies, and, to a lesser extent, residential customers. The market for data) Tj T* -0.0499 Tc 1.1258 Tw (transmission and related services in Hungary is highly competitive. The Company is the leading supplier of data transmission) Tj T* -0.0574 Tc 0.2581 Tw (and related services in Hungary.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0495 Tc 1.3654 Tw (MAT\301V's revenues from data transmission have grown significantly as a result of both the development of the Hungarian) Tj -14.4 -12 TD -0.0535 Tc 0.9262 Tw (economy and the Company's increasingly sophisticated services. Revenues for data transmission grew from HUF 3,699 million) Tj 0 -12 TD -0.0297 Tc 1.6198 Tw (in 1997 to HUF 7,781 million in 1999, in each case before intersegment eliminations. MAT\301V expects the market for these) Tj T* -0.0383 Tc 0.3456 Tw (services to grow with the proliferation of personal computers and increasing consumer needs. MAT\301V believes that the ability to) Tj T* -0.0278 Tc 0.7969 Tw (offer new data products and services will be critical to competing effectively in the future, particularly with respect to business) Tj T* -0.0489 Tc 0 Tw (customers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0103 Tc 0.2201 Tw (Datex-P. ) Tj 41.28 0 TD /F3 10.08 Tf -0.0302 Tc 0.6628 Tw (MAT\301V offers Datex-P, a packet-switched data transmission service based on the X.25 protocol. At December 31,) Tj -55.68 -12 TD -0.0432 Tc 0.8738 Tw (1999, MAT\301V had 3,471 Datex-P terminals. The service provides low to medium speed domestic switched data communication) Tj 0 -12 TD -0.0328 Tc 0.2335 Tw (services with international connectivity to business customers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0645 Tc 0.0253 Tw (Internet. ) Tj 39.36 0 TD /F3 10.08 Tf -0.029 Tc 2.4602 Tw ( Since the introduction of the Company's Internet service, MAT\301VNet, in the spring of 1997, the number of) Tj -53.76 -12 TD -0.0453 Tc 0.5283 Tw (subscribers has grown rapidly. By December 31, 1999, MAT\301VNet had over 51,000 customers. In 1999, MAT\301VNet became the) Tj 0 -12 TD -0.0729 Tc 2.0799 Tw (largest content provider in Hungary with a 45 percent market share based on the number of subscribers and continues to) Tj T* -0.0448 Tc 0.5655 Tw (strengthen its position as a market leader in Internet services, from connection to e-commerce. This growth was greatly fostered) Tj T* -0.0446 Tc 0.2812 Tw (by Origo, the most frequently visited portal site in Hungary with 120,000 sessions per day, and Altavizsla, the only search engine) Tj T* -0.0431 Tc 1.5787 Tw (in the Hungarian language. In 1999, MAT\301VNet introduced NetQuick, a package available in larger department stores that) Tj T* -0.0445 Tc 1.0585 Tw (provides instant Internet access. MAT\301VNet also operates the most popular freemail service in Hungary as well as a business) Tj T* -0.0323 Tc 0.3358 Tw (news and information service called Business Quarter. In addition, MAT\301VNet is one of the country) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0688 Tc 0.5094 Tw (s leading website homepage) Tj T* -0.0585 Tc 0.8191 Tw (designers and builders and is in the process of developing business models and applications for e-commerce. To help stimulate) Tj T* -0.0562 Tc 3.0511 Tw (demand and promote wider Internet usage, MAT\301VNet has begun selling Internet subscriptions packaged with personal) Tj T* -0.0391 Tc 1.3134 Tw (computers. For the same purpose, MAT\301V has developed discounted local call packages that charge a flat fee per local call) Tj T* -0.0602 Tc 0.2608 Tw (during certain hours of the day.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0104 Tc 0.1994 Tw (VSAT. ) Tj 34.56 0 TD /F3 10.08 Tf -0.0296 Tc 0.4874 Tw (MAT\301V offers business satellite communications services through its own central station. Satellite services based on) Tj ET endstream endobj 75 0 obj 7545 endobj 73 0 obj << /Type /Page /Parent 58 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 74 0 R >> endobj 78 0 obj << /Length 79 0 R >> stream BT 275.76 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0662 Tc 0 Tw (xix) Tj -247.92 693.6 TD /F3 10.08 Tf -0.048 Tc 0.4463 Tw (VSAT technology provide a solution for the rapid and reliable completion of data communications by establishing both domestic) Tj 0 -12 TD -0.0281 Tc 0.2288 Tw (and international links.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0166 Tc 2.2664 Tw (Global Frame Relay and Global X.25.) Tj 0 Tc 0.0898 Tw ( ) Tj 169.2 0 TD /F3 10.08 Tf -0.0397 Tc 2.4876 Tw ( To satisfy the customer need for cost effective worldwide data communication) Tj -183.6 -12 TD -0.0538 Tc 1.9611 Tw (services, the Company has introduced the Global Frame Relay and Global X.25 services as part of an agreement between) Tj 0 -12 TD -0.0114 Tc 0.2121 Tw (MAT\301V and Global One.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0059 Tc 2.2556 Tw (Cable TV and Broadcasting Services.) Tj 0 Tc 0.0898 Tw ( ) Tj 165.12 0 TD /F3 10.08 Tf 0.0035 Tc 2.3571 Tw ( On July 1, 1998, MAT\301V established MAT\301Vk\341belTV Kft., for providing cable) Tj -179.52 -12 TD -0.0518 Tc 0.7325 Tw (television services. The subsidiary began providing services on January 1, 1999. MAT\301Vk\341belTV had over 100,000 subscribers) Tj 0 -12 TD -0.0493 Tc 1.25 Tw (as of December 31, 1999. The subsidiary's key responsibilities are marketing and sales. Other members of the MAT\301V group) Tj T* -0.0335 Tc 0.2764 Tw (provide network provisioning activities such as a terminal station and optical network as well as servicing tasks. MAT\301Vk\341belTV) Tj T* 0.0202 Tc 0.1804 Tw (benefits from MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0547 Tc 0.2553 Tw (s long term relationship with the customers, its thorough market knowledge as well its strong brand name.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0111 Tc 1.7609 Tw (MAT\301V owns a 25 percent interest in Magyar RTL Telev\355zi\363 Rt \() Tj -0.074 Tc 1.9547 Tw (\223MRTL\224\), a national terrestrial television broadcaster) Tj -14.4 -12 TD -0.0317 Tc 0.6223 Tw (entitled to provide commercial television programs but not to engage in broadcast diffusion or distribution activities. CLT-UFA) Tj 0 -12 TD -0.0318 Tc 0.4244 Tw (S.A. owns 49 percent, Grundy International No. 1. B.V. owns 20 percent and Raiffeisen Group owns six percent of MRTL. MRTL) Tj T* -0.0565 Tc 0.2899 Tw (has a concession for a period of ten years with an option for a five year extension. The Program Provision Agreement was signed) Tj T* -0.0309 Tc 1.1316 Tw (on July 9, 1997, the starting date of the licence. By the last quarter of 1998, MRTL became a market leader in its target age) Tj T* -0.0433 Tc 0.5471 Tw (group between 18-49 years. MRTL is investing in film packages with major American distributors as well as in locally produced) Tj T* -0.0516 Tc 0.2522 Tw (programs with Hungarian stars. MRTL derives revenue primarily from advertising sales.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0577 Tc 0.032 Tw (rEDInet. ) Tj 40.8 0 TD /F3 10.08 Tf -0.0331 Tc 0.4566 Tw (The Company also offers rEDInet, an electronic data interchange service. This service facilitates private exchange) Tj -55.2 -12 TD -0.0383 Tc 0.239 Tw (of internationally standardized electronic documents.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0374 Tc 1.3271 Tw (Security Services.) Tj 0 Tc 0.0898 Tw ( ) Tj 77.04 0 TD /F3 10.08 Tf -0.0126 Tc 1.6373 Tw ( On July 5, 1998, MAT\301V established MAT\301VOR Kft., a wholly owned subsidiary, to provide security) Tj -91.44 -12 TD -0.0352 Tc 0.2358 Tw (monitoring services. MAT\301VOR Kft. had approximately 6,500 customers as of December 31, 1999.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0118 Tc 1.7816 Tw (MAT\301V Corporate Networks.) Tj 0 Tc 0.0898 Tw ( ) Tj 131.28 0 TD /F3 10.08 Tf -0.0331 Tc 2.0061 Tw ( MAT\301V has already built corporate private networks for its customers, primarily in the) Tj -145.68 -12 TD -0.0463 Tc 3.0149 Tw (banking, finance, utility and public administration sectors. Based on increased demand and its experience in corporate) Tj 0 -12 TD -0.0324 Tc 0.617 Tw (networking, MAT\301V introduced MAT\301V Corporate Networks on September 1, 1998. MAT\301V Corporate Networks are offered to) Tj T* -0.0481 Tc 0.2488 Tw (key accounts as a tailor-made customized service designed to satisfy internal communication needs.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0372 Tc 2.3678 Tw (MAT\301V provides other data transmission services, including telex and telegraph. In the future, the Company plans to) Tj -14.4 -12 TD -0.0319 Tc 2.9686 Tw (introduce virtual private and intelligent networks to meet the increasingly complex telecommunications needs of its key) Tj 0 -12 TD -0.0489 Tc 0 Tw (customers.) Tj 0 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 79 0 obj 5161 endobj 76 0 obj << /Type /Page /Parent 77 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 78 0 R >> endobj 81 0 obj << /Length 82 0 R >> stream BT 277.2 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0706 Tc 0 Tw (xx) Tj -249.36 693.36 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0382 Tc 0.0272 Tw (Fixed Line Telecommunications Equipment Sales) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0244 Tc 3.2158 Tw (MAT\301V distributes an extensive range of telecommunications equipment, from individual telephone sets to facsimile) Tj -14.16 -12 TD -0.0481 Tc 0.9207 Tw (terminals, private branch exchanges and complete network systems, through a network of customer service centers. CARDNET) Tj 0 -12 TD -0.0177 Tc 0.3853 Tw (Rt., in which MAT\301V acquired a majority interest in the second half of 1998, sells point of sale terminals. In 1999, sales of fixed) Tj T* -0.031 Tc 0.2316 Tw (line telecommunications equipment generated revenues of HUF 3,030 million before intersegment eliminations. MAT\301V does not) Tj T* -0.0572 Tc 0.2579 Tw (manufacture telecommunications equipment but rather resells and leases equipment manufactured by other companies.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0469 Tc 1.7614 Tw (The telecommunications equipment sector is highly competitive and characterized by rapid technological innovation and) Tj -14.4 -12 TD -0.0291 Tc 0.4297 Tw (intense competition. MAT\301V believes that the supply and service of telecommunications equipment is an integral part of being a) Tj 0 -12 TD -0.0365 Tc 1.3242 Tw (full service telecommunications provider and is necessary for the expansion of its customer base. In addition, these activities) Tj T* -0.0422 Tc 1.9379 Tw (permit MAT\301V to ensure that technologically advanced equipment required for new services is available in the Hungarian) Tj T* -0.0135 Tc 0 Tw (market.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0171 Tc 0.006 Tw (Construction and Maintenance Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0387 Tc 0.6393 Tw (MAT\301V constructs fixed telecommunications networks and offers network maintenance services to other telecommunications) Tj -14.4 -12 TD -0.0591 Tc 2.4038 Tw (operators in Hungary. These construction and maintenance services are ancillary to the construction and maintenance of) Tj 0 -12 TD -0.0391 Tc 0.2398 Tw (MAT\301V's networks and generated revenues of HUF 5,630 million before intersegment eliminations in 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0239 Tc 2.3845 Tw (The Company carries out its construction activity primarily through its wholly owned subsidiary, MAT\301Vline Kft. The) Tj -14.4 -12 TD -0.0434 Tc 2.6098 Tw (majority of construction revenue is derived from optical network construction, network construction related to subscriber) Tj 0 -12 TD -0.0011 Tc 2.8276 Tw (connections and project planning. In April 2000, MAT\301V sold MAT\301Vline Kft. MAT\301V intends to utilize open market) Tj T* -0.0602 Tc 0.2608 Tw (conditions in its construction of new networks, as there are now a number of construction companies in the Hungarian market.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0051 Tc 0.004 Tw (Mobile Telecommunications Services Segment) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.038 Tc 1.974 Tw (In 1999, MAT\301V's mobile telecommunications services generated revenues of HUF 117,336 million before intersegment) Tj -14.4 -12 TD -0.0304 Tc 0.9682 Tw (eliminations. MAT\301V provides mobile telecommunications services through two subsidiaries, Westel 900 and Westel 450, each) Tj 0 -12 TD -0.0305 Tc 0.2311 Tw (of which is 51 percent owned by MAT\301V.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0367 Tc 0.4374 Tw (Westel 900 provides digital services and Westel 450 provides analog services. At December 31, 1999, Westel 900 and Westel) Tj -14.4 -12 TD -0.0529 Tc 0.4682 Tw (450 together accounted for an estimated 58 percent of the total Hungarian mobile telephony market in terms of subscribers. The) Tj 0 -12 TD -0.0557 Tc 2.4163 Tw (aggregate penetration rate of digital and analog mobile telephone services in Hungary increased from approximately 4.6) Tj T* -0.0518 Tc 0.5164 Tw (percent at December 31, 1996 to approximately 16.2 percent at December 31, 1999. A new entrant into the GSM market started) Tj T* -0.0536 Tc 0.2542 Tw (operations in the last quarter of 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0507 Tc 0.3019 Tw (Each of the Westel companies operates on a stand-alone basis as required by its concession. Each has its own administrative,) Tj -14.4 -12 TD -0.0479 Tc 0.4618 Tw (financing, billing and collection systems. The companies cooperate with each other in certain areas and provide each other with) Tj 0 -12 TD -0.0497 Tc 0.6503 Tw (certain services on an arm's length basis. The Westel companies each provide distribution services for the other's products, and) Tj T* -0.046 Tc 0.3546 Tw (Westel 450 provides system maintenance to Westel 900 on a contract basis. The Westel companies also lease space to each other) Tj T* -0.0321 Tc 0.2328 Tw (and from MAT\301V Rt. on an arms length basis.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 82 0 obj 5602 endobj 80 0 obj << /Type /Page /Parent 77 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 81 0 R >> endobj 84 0 obj << /Length 85 0 R >> stream BT 275.76 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0662 Tc 0 Tw (xxi) Tj -233.52 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf 0.008 Tc 2.2417 Tw (In 1999, the minority owner of Westel 900 and Westel 450, MediaOne International entered into a purchase and sale) Tj -14.4 -12 TD 0.0061 Tc 0.8703 Tw (agreement with Deutsche Telekom. As a result, on October 21, 1999 Deutsche Telekom entered into an agreement to purchase) Tj 0 -12 TD 0.0111 Tc 2.9586 Tw (most of MediaOne International) Tj -2.2848 Tc 0 Tw (\222) Tj -0.0087 Tc 2.9784 Tw (s Eastern European portfolio including both Westels) Tj -2.2848 Tc 5.4946 Tw (\222 ) Tj 0.0321 Tc 3.1777 Tw (shares and quotas. This purchase) Tj T* 0.0158 Tc 0.074 Tw (transaction was completed in March, 2000.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.038 Tc 1.3539 Tw (On October 21, 1999 MAT\301V announced that it entered into an agreement with Deutsche Telekom providing MAT\301V the) Tj -14.16 -12 TD -0.0479 Tc 0.9685 Tw (option to acquire Deutsche Telekom) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0332 Tc 1.1232 Tw (s 49 percent interest in Westel 450 and Westel 900 for a fixed price of USD 885 million.) Tj 0 -12 TD -0.0454 Tc 0.857 Tw (MAT\301V can exercise the option in up to three tranches representing a percentage of not less than 15 percent each at any time) Tj T* -0.0705 Tc 0.7198 Tw (for a 15 months period starting on July 1, 2000. The transaction should be closed no earlier than January 1, 2001 and no later) Tj T* -0.0708 Tc 0.2714 Tw (than December 31, 2001.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0352 Tc 1.5799 Tw (MAT\301V also entered into a proxy agreement with Deutsche Telekom. Under this agreement MAT\301V represents Deutsche) Tj -14.16 -12 TD -0.0447 Tc 1.8053 Tw (Telekom on completion of its purchase transaction in connection with the management of both Westel 900 and Westel 450,) Tj 0 -12 TD -0.0522 Tc 1.1595 Tw (nominating all members of the Supervisory Board except one Deutsche Telekom nominated member and in the case of Westel) Tj T* -0.0333 Tc 0.4873 Tw (900 all Directors of the Board except one Deutsche Telekom nominated director. MAT\301V controls the operations of both Westel) Tj T* -0.0255 Tc 0.2261 Tw (companies except that Deutsche Telekom is entitled to vote the Westel companies) Tj -3.3533 Tc 3.5539 Tw (\222 ) Tj -0.0466 Tc 0.2472 Tw (shares in the following decisions:) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0624 Tc 0.2631 Tw (changes in the capital structure other than on pro-rata basis;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0675 Tc 0.2681 Tw (dividend declaration other than on a pro-rata basis;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0282 Tc 0.2289 Tw (merger, demerger, spin-off, liquidation;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0238 Tc 0.2245 Tw (modification of the constitutive documents;) Tj -28.32 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0417 Tc 0.2423 Tw (sale of substantial assets;) Tj -28.32 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0554 Tc 0.2561 Tw (issuance of convertible securities other than on a pro-rata basis;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0809 Tc 0.2815 Tw (admission of new shareholders;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0344 Tc 0.2351 Tw (entry into strategic alliance with any competitor of Deutsche Telekom; and) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0436 Tc 0.2443 Tw (removal of the Independent Accountant.) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.16 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0159 Tc 0.0049 Tw (Westel 900) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0486 Tc 3.1773 Tw (Westel 900 commenced offering GSM digital mobile telecommunications services on March 31, 1994 pursuant to a) Tj -14.4 -12 TD -0.0539 Tc 2.3246 Tw (concession awarded in November 1993. GSM affords high quality digital transmission and is the dominant digital mobile) Tj 0 -12 TD -0.0504 Tc 0.5961 Tw (telecommunications standard in Europe. Westel 900 offers basic GSM voice telephony services and a number of complementary) Tj T* -0.046 Tc 0.3667 Tw (services, such as voice mail, call forwarding, short message services and call waiting. Westel 900 also provides GSM-based data) Tj T* -0.0419 Tc 1.7892 Tw (and facsimile transmission services as well as mobile Internet services and a number of content services. Westel 900 offers) Tj T* -0.0398 Tc 0.8255 Tw (several different packages of services designed for different customer requirements, including a traffic package targeted at low) Tj T* -0.0367 Tc 0.2373 Tw (volume residential customers.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0547 Tc 0.3582 Tw (The prepaid card of Westel 900, Domino, provided 37 percent of net customer additions in 1999. In 1999, Westel 900 made a) Tj -14.4 -12 TD -0.0644 Tc 1.0517 Tw (number of value added services available to prepaid customers, such as sending short messages \(SMS\) and caller ID. Prepaid) Tj 0 -12 TD -0.0499 Tc 0.2505 Tw (customers \(especially young people and security users\) are expected to represent the majority of growth potential for 2000.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.059 Tc 1.5396 Tw (In 1999, Westel 900 enhanced its value-added services and introduced several new products. In the second half of 1999,) Tj -14.4 -12 TD -0.0333 Tc 1.4592 Tw (Westel 900 presented the new voice over IP based Westel Net-Tel service which enables users to make international calls at) Tj 0 -12 TD -0.0137 Tc 1.3344 Tw (lower rates than MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0238 Tc 1.4244 Tw (s standard international tariffs. The Mailreader voice e-mail and the Wireless Application Protocol) Tj T* -0.0504 Tc 1.5075 Tw (pilot service, a combination of mobile communication and IP technology, were also introduced in 1999. Other new products) Tj T* -0.0294 Tc 0.2301 Tw (include the SIM-tool kit and SMS banking.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 85 0 obj 7566 endobj 83 0 obj << /Type /Page /Parent 77 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 84 0 R >> endobj 87 0 obj << /Length 88 0 R >> stream BT 274.32 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (xxii) Tj -232.08 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0752 Tc 0.2758 Tw (Westel 900 encourages the loyalty of customers with various programs, such as bonuses on high usage and partner cards with) Tj -14.4 -12 TD -0.0214 Tc 0.222 Tw (low monthly fees.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0583 Tc 2.4316 Tw (As of December 31, 1999, the Westel 900 network covered 98 percent of Hungary's population and 96 percent of its) Tj -14.4 -12 TD -0.0418 Tc 0.2848 Tw (geographic area. The build-out of its mobile network has been substantially completed. Westel 900 has entered into international) Tj 0 -12 TD -0.0716 Tc 0.2722 Tw (roaming agreements with 144 operators in 70 countries.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0502 Tc 1.4508 Tw (On February 25, 1999 the Ministry of Transport, Telecommunications and Water management \(the ) Tj -0.1149 Tc 0 Tw (\223Ministry) Tj -0.2156 Tc 1.8562 Tw (\224\) issued an) Tj -14.16 -12 TD -0.0418 Tc 1.3091 Tw (invitation to tender for the licensing in Hungary of DCS 1800 services, a mobile telecommunications system operating in the) Tj 0 -12 TD -0.0748 Tc 0.2994 Tw (1800 MHz frequency band. The tender was closed on May 7, 1999. In October 1999 an amended concession contract was signed,) Tj T* -0.0461 Tc 0.7988 Tw (allowing Westel 900 and its current GSM 900 competitor, Pannon GSM, to start commercial service in the 1800 MHz band for) Tj T* -0.0226 Tc 0.7392 Tw (15 years beginning November 26, 2000. At the same time the Minister also signed a concession contract with V.R.A.M. Rt., the) Tj T* -0.0557 Tc 0.2564 Tw (new entrant on the Hungarian digital cellular market, which uses the Vodafone brandname.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0369 Tc 2.3804 Tw (Westel 900's principal objectives are to maintain market leadership in the rapidly growing mobile telecommunications) Tj -14.4 -12 TD -0.0561 Tc 0.2568 Tw (market, expand its brand recognition and focus on providing a high quality of customer service.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0404 Tc 0.1301 Tw (Subscribers. ) Tj 52.56 0 TD /F3 10.08 Tf -0.0517 Tc 1.0256 Tw ( The number of Westel 900 subscribers has grown significantly over the past three years. The table below sets) Tj -66.96 -12 TD -0.049 Tc 0.2496 Tw (forth information concerning the number of Westel 900 subscribers at the dates indicated:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 234.72 -12 TD ( ) Tj 2.88 0.24 TD ( ) Tj 74.88 0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -77.76 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0.24 TD ( ) Tj 29.04 0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 288.72 513.36 57.6 0.72 re f 346.32 513.36 0.72 0.72 re f 347.04 513.36 10.08 0.72 re f 357.12 513.36 0.72 0.72 re f 357.84 513.36 56.88 0.72 re f 414.72 513.36 0.72 0.72 re f 415.44 513.36 10.08 0.72 re f 425.52 513.36 0.72 0.72 re f 426.24 513.36 56.88 0.72 re f BT 276.96 490.8 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 2.88 0.24 TD ( ) Tj 65.52 -0.24 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj ET 288.72 500.4 57.6 0.72 re f 357.12 500.4 57.6 0.72 re f 425.52 500.4 57.6 0.72 re f BT 27.84 478.56 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1635 Tc 0.0371 Tw (Subscribers ...........................................................................) Tj 252 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (362,786) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (546,554) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (842,279) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0765 Tc 0.1242 Tw (Annual growth in subscribers \(%\) .........................................) Tj 252 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.76 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (61.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (50.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (54.1) Tj -422.16 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0539 Tc 0.6986 Tw (The rapid increase in the number of Westel 900 subscribers since December 31, 1997 is attributable to a number of factors,) Tj -14.4 -12 TD -0.0443 Tc 2.5884 Tw (including real terms reductions in handset prices and traffic tariffs. Growth also can be attributed to handset discounts,) Tj 0 -12 TD -0.0593 Tc 0.2599 Tw (installment purchase plans and aggressive marketing.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0438 Tc 1.4571 Tw (Westel 900 estimates that, as of December 31, 1999, it held approximately 55 percent of the Hungarian market for GSM) Tj -14.4 -12 TD -0.0375 Tc 0.3087 Tw (mobile digital services in terms of subscriber base. The Company expects to initiate additional marketing campaigns to stimulate) Tj 0 -12 TD -0.0591 Tc 0.2597 Tw (further subscriber growth and to maintain its market share.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0476 Tc 0.0421 Tw (Traffic. ) Tj 33.36 0 TD /F3 10.08 Tf -0.0557 Tc 0.5924 Tw ( Westel 900's average traffic per subscriber remains one of the highest in Europe at 200 minutes per month in 1999.) Tj -47.76 -12 TD -0.0634 Tc 0.264 Tw (Traffic per subscriber has declined over the past few years as the subscriber base has expanded to include lower volume users.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0557 Tc 0.0341 Tw (Tariffs. ) Tj 33.36 0 TD /F3 10.08 Tf -0.0626 Tc 0.9833 Tw ( Since January 1998, mobile subscriber tariffs have been unregulated and carriers have had the freedom to set the) Tj -47.76 -12 TD -0.035 Tc 0.5321 Tw (level of the various tariff elements \(i.e. connection fee, subscription charge and traffic charges\). Westel 900 charges subscribers) Tj 0 -12 TD -0.0583 Tc 0.8802 Tw (a one-time connection fee, monthly subscription charges and time based traffic charges. Customers using prepaid cards do not) Tj T* -0.0513 Tc 1.2261 Tw (pay monthly subscription charges. Westel 900 does not charge subscribers for incoming calls, other than calls received while) Tj T* -0.0428 Tc 1.2994 Tw (roaming, although it receives payments from other telecommunications service providers for terminating calls on its network.) Tj T* -0.0411 Tc 0.2417 Tw (Westel 900 customers currently have more tariff package choices than the customers of the competitive service providers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0024 Tc 0.0874 Tw (Distribution. ) Tj 55.92 0 TD /F3 10.08 Tf -0.0552 Tc 2.0347 Tw ( Westel 900 operates ten sales and service centers in Budapest, 23 elsewhere in Hungary and two mobile) Tj -70.32 -12 TD -0.0664 Tc 0.4537 Tw (showrooms. Westel 900 sales personnel are paid a regular wage plus sales commissions. In addition to distributing products and) Tj 0 -12 TD -0.0495 Tc 0.8149 Tw (services through its own sales network, Westel 900 distributes products through master dealers \(FOTEX group, Westel 450 and) Tj T* -0.0318 Tc 2.0624 Tw (MAT\301V\) on an agency basis, through large Hungarian retail and distribution chains \(Shell, MOL, TESCO, Auchan, Billa,) Tj T* -0.0552 Tc 0.2558 Tw (Lapker\) and through franchise partners. In total, Westel 900 markets products through almost 1,500 outlets.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0159 Tc 0.0049 Tw (Westel 450) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0472 Tc 0.3379 Tw (Westel 450 is the sole provider of analog mobile telecommunications services in Hungary. Westel 450 commenced operations) Tj -14.4 -12 TD -0.0603 Tc 0.2609 Tw (in 1990 and was the only provider of mobile services in Hungary until the commencement of GSM operations in 1994.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 88 0 obj 8860 endobj 86 0 obj << /Type /Page /Parent 77 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 87 0 R >> endobj 90 0 obj << /Length 91 0 R >> stream BT 272.88 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0628 Tc 0 Tw (xxiii) Tj -230.64 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.036 Tc 1.846 Tw (Westel 450 service is based on the NMT standard, which predates digital mobile telephony services, including GSM. In) Tj -14.4 -12 TD -0.0554 Tc 2.4294 Tw (response to competition from GSM operators, Westel 450 took advantage of its lead in geographic coverage to focus on) Tj 0 -12 TD -0.06 Tc 0.2606 Tw (penetration. The Westel 450 network covers over 98 percent of Hungary's geographic area.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0317 Tc 0.2955 Tw (At present, Westel 450 has positioned itself as the mobile network offering the most affordable service in Hungary. Unlike the) Tj -14.4 -12 TD -0.0371 Tc 1.6919 Tw (GSM service providers, Westel 450 does not provide international roaming services. However, Westel 450 is well suited for) Tj 0 -12 TD -0.0581 Tc 0.2588 Tw (price-conscious customers who do not often travel abroad but require mobility within Hungary.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0404 Tc 0.1301 Tw (Subscribers. ) Tj 51.84 0 TD /F3 10.08 Tf -0.0437 Tc 0.2443 Tw ( The table below sets forth the number of Westel 450 subscribers at the dates indicated:) Tj -66.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 249.12 -12 TD ( ) Tj 2.88 0.24 TD ( ) Tj 74.88 0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -77.76 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0.24 TD ( ) Tj 29.04 0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 288.72 633.36 57.6 0.72 re f 346.32 633.36 0.72 0.72 re f 347.04 633.36 10.08 0.72 re f 357.12 633.36 0.72 0.72 re f 357.84 633.36 56.88 0.72 re f 414.72 633.36 0.72 0.72 re f 415.44 633.36 10.08 0.72 re f 425.52 633.36 0.72 0.72 re f 426.24 633.36 56.88 0.72 re f BT 276.96 610.8 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 2.88 0.24 TD ( ) Tj 65.52 -0.24 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj ET 288.72 620.4 57.6 0.72 re f 357.12 620.4 57.6 0.72 re f 425.52 620.4 57.6 0.72 re f BT 27.84 598.56 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1635 Tc 0.0371 Tw (Subscribers ...........................................................................) Tj 252 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (79,099) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (93,596) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (97,753) Tj -426.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0765 Tc 0.1242 Tw (Annual growth in subscribers \(%\) .........................................) Tj 252 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 52.8 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.9) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (18.3) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 44.88 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (4.4) Tj -441.6 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0704 Tc 1.9792 Tw (In 1998 and 1999, the number of Westel 450 subscribers increased due to active promotional programs and innovative) Tj -14.4 -12 TD -0.0074 Tc 0.208 Tw (service offers.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0557 Tc 0.2741 Tw (Tariffs. ) Tj 36.24 0 TD /F3 10.08 Tf -0.0506 Tc 0.8432 Tw (Westel 450 charges its subscribers monthly subscription charges and traffic charges for outgoing calls. Westel 450) Tj -50.64 -12 TD -0.053 Tc 0.7976 Tw (does not charge subscribers for incoming calls, although it receives payments from other telecommunications service providers) Tj 0 -12 TD -0.0381 Tc 0.4156 Tw (for terminating calls on its network. Westel 450 offers a number of different packages of services designed for different customer) Tj T* -0.0553 Tc 0.256 Tw (requirements, including a package for low volume users.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0024 Tc 0.0874 Tw (Distribution. ) Tj 54.24 0 TD /F3 10.08 Tf -0.0576 Tc 0.3147 Tw ( Westel 450 markets its services through its own salesforce, through Westel 900 salespersons on an agency basis) Tj -68.64 -12 TD -0.0561 Tc 0.2568 Tw (and through a network of small independent retailers.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj ET endstream endobj 91 0 obj 4992 endobj 89 0 obj << /Type /Page /Parent 77 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 90 0 R >> endobj 93 0 obj << /Length 94 0 R >> stream BT 273.36 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0073 Tc 0 Tw (xxiv) Tj -245.52 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.005 Tc 0.0041 Tw (Marketing and Distribution) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0479 Tc 0.7645 Tw (MAT\301V's goal is to meet demand while accelerating its ability to create and respond to customers' needs for a broad range) Tj -14.4 -12 TD -0.0566 Tc 2.7429 Tw (of advanced telecommunications services. The Company believes that increasing customer awareness of its products and) Tj 0 -12 TD -0.0269 Tc 2.4809 Tw (services and promoting customer loyalty is critical to its future success. MAT\301V is reshaping its marketing efforts to be) Tj T* -0.042 Tc 0.5876 Tw (proactive, market and application driven and customer-service oriented. The Company strives to become easily accessible to its) Tj T* -0.062 Tc 0.2627 Tw (customers by presenting "one-stop service.") Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.036 Tc 2.5316 Tw (The Company's customer service activity is managed mainly through call centers. With the nationwide roll-out of the) Tj -14.4 -12 TD -0.0487 Tc 1.1387 Tw (operational support system, the call centers permit subscribers to handle their business with the Company over the telephone.) Tj 0 -12 TD -0.0435 Tc 0.9642 Tw (The call centers have assumed most of the functions of the more traditional customer or "walk-in" offices. By the end of 1999,) Tj T* -0.0458 Tc 0.2464 Tw (three call centers covering all residential and small business customers were operational.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0487 Tc 0.2494 Tw (MAT\301V continues to enhance its "local presence" by establishing retail stores where customers can view the various products) Tj -14.4 -12 TD -0.0529 Tc 0.2802 Tw (and services the Company offers and experience features through demonstrations as well as receive full scale customer care. The) Tj 0 -12 TD -0.0483 Tc 0.6569 Tw (Company established a total of 23 retail shops across Hungary by the end of 1999, including 17 "MAT\301V Pont" shops. MAT\301V) Tj T* -0.0707 Tc 0.2713 Tw (also operates an agent and dealer network, consisting of 31 dealer shops and approximately 200 agents.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F3 10.08 Tf -0.013 Tc 0.2137 Tw (MAT\301V's marketing activities focus on four elements:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0803 Tc 0 Tw (products;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0389 Tc 0 Tw (pricing;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0726 Tc 0 Tw (promotion;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0397 Tc 0.2403 Tw (distribution and sales.) Tj -27.6 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0503 Tc 0 Tw (Products.) Tj 37.68 0 TD /F3 10.08 Tf 0.1296 Tc 0.311 Tw ( MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0646 Tc 0.6939 Tw (s product portfolio is continuously expanding and developing in response to market needs. The Company) Tj -52.08 -12 TD -0.0463 Tc 2.0769 Tw (actively manages its product portfolio by soliciting customer input for new services and innovative package solutions, and) Tj 0 -12 TD -0.0396 Tc 1.285 Tw (eliminating services that are no longer in demand. In addition to traditional voice and data telecommunications services, the) Tj T* -0.0736 Tc 3.5592 Tw (Company offers value added services such as ISDN, voice mail, calling cards, managed narrow and broadband data) Tj T* -0.0389 Tc 0.2396 Tw (transmission, Internet access and voice over IP.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0409 Tc 0.0488 Tw (Pricing. ) Tj 36 0 TD /F3 10.08 Tf -0.0352 Tc 1.6459 Tw ( The Company's pricing strategy is to maintain its leading position by providing attractively priced and flexibly) Tj -50.4 -12 TD -0.0468 Tc 1.6874 Tw (packaged combinations of products and services. MAT\301V continues to rebalance its subscriber tariffs, preparing for market) Tj 0 -12 TD -0.0366 Tc 3.3757 Tw (liberalization. The Company increasingly offers various pricing packages for its fixed line telecommunications services) Tj T* -0.0589 Tc 0.8318 Tw (including subscriber packages, which bundle call management services, and calling plans, such as ) Tj -1.1933 Tc 0 Tw (\223) Tj -0.0439 Tc 0.9646 Tw (Favorite Numbers) Tj -1.1933 Tc 0 Tw (\224) Tj -0.0251 Tc 0.9458 Tw (, which) Tj T* -0.0559 Tc 0.8051 Tw (allow customers to choose a limited set of telephone numbers, calls to which are charged at discount rates. In January, 2000 a) Tj T* -0.0682 Tc 0.2688 Tw (new package was introduced for low users with reduced subscription fees and higher usage tariffs charged after a certain amount) Tj T* -0.0468 Tc 1.4474 Tw (of regularly rated calls. In April 2000, another new package was introduced for residential customers especially for Internet) Tj T* -0.0247 Tc 0.2254 Tw (users which allows unlimited calls within specified time periods for a flat monthly fee.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.027 Tc 0 Tw (Promotion.) Tj 45.12 0 TD /F3 10.08 Tf -0.0556 Tc 0.4662 Tw ( MAT\301V's promotion and advertising is focused on providing information about its various products and services) Tj -59.52 -12 TD -0.0543 Tc 0.8416 Tw (and strengthening its brand image. Advertising is based on market research to identify market trends and customer needs, with) Tj 0 -12 TD -0.0602 Tc 0.6358 Tw (active customer involvement in testing products and promotions. The Company has achieved high levels of consumer awareness) Tj T* -0.0449 Tc 0.2455 Tw (as a result of its existing advertising campaigns and through the effective use of appropriate media.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0079 Tc 0.0819 Tw (Distribution and Sales.) Tj 92.88 0 TD /F3 10.08 Tf -0.0551 Tc 0.2557 Tw ( The Company manages the following five distribution and sales channels:) Tj -107.28 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0411 Tc 0.2417 Tw (residential customers;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0503 Tc 0.5278 Tw (business customers, consisting of customers with relatively higher usage and more specialized telecommunications needs,) Tj 0 -12 TD -0.0677 Tc 0.2684 Tw (including the Hungarian government;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 94 0 obj 7496 endobj 92 0 obj << /Type /Page /Parent 77 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 93 0 R >> endobj 97 0 obj << /Length 98 0 R >> stream BT 274.8 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0094 Tc 0 Tw (xxv) Tj -232.56 693.12 TD /F5 10.08 Tf -5.2781 Tc (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0535 Tc 0.2541 Tw (wholesale providers, consisting of other local telephone operators and mobile service providers;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0562 Tc 0.2569 Tw (foreign operators, including those transiting traffic through Hungary; and) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0477 Tc 0.2483 Tw (public payphone users, including the sale of calling cards.) Tj -28.56 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0422 Tc 1.1069 Tw (MAT\301V manages these distribution channels by specially tailored products and services. To provide appropriate incentives to) Tj 0 -12 TD -0.0478 Tc 0.7799 Tw (managers, the Company has linked compensation to performance. Similarly, MAT\301V has introduced incentive compensation as) Tj T* -0.0656 Tc 0.2663 Tw (a component of salespersons' salaries.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0048 Tc 0.0043 Tw (Infrastructure and Technology) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0307 Tc 0.6313 Tw (Over the past three years, MAT\301V has invested over HUF 169 billion in its fixed line telecommunications network. Through) Tj -14.4 -12 TD -0.048 Tc 1.1487 Tw (these investments, MAT\301V has sought to rapidly build out and modernize its network to enable the Company to offer a broad) Tj 0 -12 TD -0.0351 Tc 1.7271 Tw (portfolio of technologically advanced products and services. MAT\301V expects to incur capital expenditures of approximately) Tj T* -0.041 Tc 1.2283 Tw (HUF 150 billion, including approximately HUF 90 billion per year on its fixed line telecommunications network in 2000 and) Tj T* -0.0351 Tc 0.8958 Tw (2001. The Company expects the majority of fixed line expenditures to relate to capacity improvements in the local loop and in) Tj T* -0.0452 Tc 0.2458 Tw (systems and service platforms.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0053 Tc 2.5445 Tw (Modernization of Switches and Exchanges.) Tj 0 Tc 0.0898 Tw ( ) Tj 190.8 0 TD /F3 10.08 Tf -0.0453 Tc 2.8859 Tw ( The Company has rationalized its switching architecture to increase the) Tj -205.2 -12 TD -0.0236 Tc 0.8242 Tw (operational efficiency of its network. MAT\301V has already eliminated one hierarchical level from its switching architecture and) Tj 0 -12 TD -0.0565 Tc 2.0857 Tw (plans to reduce the number of its switching sites from over 1,000 in 1999 to below 100 within ten years by consolidating) Tj T* -0.0345 Tc 0.2352 Tw (switching platforms into larger centralized switches.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0329 Tc 0.6429 Tw (The Company continues to digitalize its local networks. At December 31, 1999, 79.0 percent of MAT\301V's exchange capacity) Tj -14.4 -12 TD -0.0463 Tc 1.2412 Tw (was digital, compared to 63.8 percent at December 31, 1996. Each of the MAT\301V concession areas is served by at least one) Tj 0 -12 TD -0.0488 Tc 1.5935 Tw (digital primary exchange. Digitalization permits a broader range of services, increases capacity and generates cost savings.) Tj T* -0.0473 Tc 2.3515 Tw (Digitalization is also a prerequisite for providing ISDN and Internet services. The number of local exchanges capable of) Tj T* -0.0753 Tc 0.6226 Tw (providing ISDN services has increased considerably and the number of ISDN channels grew from 11,128 at December 31, 1996) Tj T* -0.0391 Tc 1.2551 Tw (to 114,466 at December 31, 1999. On the basis of the ISDN infrastructure, MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0618 Tc 1.4624 Tw (s network supports switched high quality) Tj T* -0.0555 Tc 0.2561 Tw (Internet access and X.25 packet switched data transmission for ISDN subscribers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.028 Tc 0.5978 Tw (Expansion of Access Networks.) Tj 129.36 0 TD /F3 10.08 Tf -0.0582 Tc 0.9617 Tw ( The Company has substantially expanded and modernized its local networks. Over the last) Tj -143.76 -12 TD -0.0547 Tc 0.2553 Tw (three years, MAT\301V has added in excess of 645,000 access lines and over 103,000 ISDN channels to the local networks. In 1996,) Tj 0 -12 TD -0.0646 Tc 2.0653 Tw (the Company began to employ radio-linked subscriber lines \("radio local loop" or ) Tj -1.1933 Tc 0 Tw (\223) Tj 0.0614 Tc (RLL) Tj -0.0828 Tc 2.2035 Tw (\224\). By the beginning of 1999, the) Tj T* -0.0588 Tc 1.5159 Tw (Company had created a capacity of over 174,000 and installed over 164,000 radio-linked subscriber lines. Radio local loop) Tj T* -0.0353 Tc 2.2444 Tw (provides a cost effective alternative to expansion of conventional fixed line local loops and is well suited to areas where) Tj T* -0.0204 Tc 1.6863 Tw (installation of fixed lines is costly or difficult, such as low density areas in the Hungarian countryside. MAT\301V's license to) Tj T* -0.0633 Tc 0.2639 Tw (operate an analog radio local loop system in the 900 MHz frequency band is scheduled to expire in 2003.) Tj ET endstream endobj 98 0 obj 5661 endobj 95 0 obj << /Type /Page /Parent 96 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 97 0 R >> endobj 100 0 obj << /Length 101 0 R >> stream BT 273.36 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0073 Tc 0 Tw (xxvi) Tj -245.52 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0277 Tc 1.1775 Tw (As part of the introduction of the DCS 1800 mobile system, the Ministry has required MAT\301V to exit part of its 900 MHz) Tj -14.4 -12 TD -0.0371 Tc 0.2504 Tw (frequency band width before the expiration of its licence. In compliance, MAT\301V had removed its analog radio local loop system) Tj 0 -12 TD -0.0516 Tc 0.9056 Tw (from Budapest by August 31, 1999. At December 31, 1999 the Company still provides services for approximately 161,000 RLL) Tj T* -0.0418 Tc 1.8519 Tw (subscribers. According to an agreement between the Ministry and MAT\301V the Company will be compensated for this early) Tj T* -0.0649 Tc 0.2655 Tw (withdrawal from the 900 MHz frequency band.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0327 Tc 2.7384 Tw (MAT\301V uses fiber optic cables in its fixed line local loop networks, serving approximately 165,000 subscribers. The) Tj -14.4 -12 TD -0.0428 Tc 1.0897 Tw (Company installed a substantial portion of the local network fiber optic cable in Budapest, where segments of the old cabling) Tj 0 -12 TD -0.0393 Tc 0.2519 Tw (were in poor condition and where MAT\301V believes the demand for high capacity and quality transmission will be greatest. At the) Tj T* -0.0468 Tc 1.391 Tw (end of 1999, there are approximately 45,000 installed channels available to connect additional subscribers to the fiber optic) Tj T* -0.0401 Tc 0.9247 Tw (local loop networks. MAT\301V plans to extend its local fiber optic network both inside and outside Budapest to cover new areas) Tj T* -0.0677 Tc 0.2683 Tw (and to increase the number of ISDN subscribers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0536 Tc 2.0634 Tw (Backbone Network.) Tj 0 Tc 0.0898 Tw ( ) Tj 86.16 0 TD /F3 10.08 Tf -0.0359 Tc 2.1565 Tw ( MAT\301V has a digital fiber optic national long distance network that connects local primary area) Tj -100.56 -12 TD -0.061 Tc 0.3967 Tw (networks. The Company has implemented synchronous digital hierarchy systems in both the national long distance and Budapest) Tj 0 -12 TD -0.0487 Tc 2.1351 Tw (networks. In addition to cost advantages, synchronous digital hierarchy systems provide an extremely flexible transmission) Tj T* -0.0448 Tc 2.0694 Tw (infrastructure with automatic transmission paths. MAT\301V installed an additional 224 km of optical cable and synchronous) Tj T* -0.0523 Tc 2.3009 Tw (digital hierarchy systems in the long distance network during 1999, increasing both network availability and transmission) Tj T* -0.0361 Tc 0.2367 Tw (capacity. As of December 31, 1999, MAT\301V had 4,552 km of digital backbone network.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.017 Tc 1.9928 Tw (Intelligent Network.) Tj 0 Tc 0.0898 Tw ( ) Tj 88.56 0 TD /F3 10.08 Tf -0.0261 Tc 2.2839 Tw ( MAT\301V has implemented an intelligent network platform. The Company launched the first set of) Tj -102.96 -12 TD -0.0364 Tc 1.5971 Tw (Intelligent Network services \(shared cost and toll free numbers, Televoting, and Virtual Card Calling\) in 1998. In 1999, the) Tj 0 -12 TD -0.0599 Tc 0.4627 Tw (services were also deployed to LTO areas and the platform software was recently upgraded. New services, such as Prepaid Card) Tj T* -0.0499 Tc 0.2505 Tw (calling and services to support fixed and mobile telecommunications convergence, are under development.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0035 Tc 0.0933 Tw (Asynchronous Transfer Mode. ) Tj 126 0 TD /F3 10.08 Tf -0.0607 Tc 0.4644 Tw ( MAT\301V introduced the first public network in Hungary based on asynchronous transfer mode) Tj -140.4 -12 TD -0.0309 Tc 1.2665 Tw (technology in 1998. Based on this technology, high speed LAN-Flex and Cell-Flex services are provided commercially. LAN-) Tj 0 -12 TD -0.0283 Tc 1.8129 Tw (Flex offers local area network interconnection services, while Cell-Flex offers a high-speed data transmission service. Both) Tj T* -0.0474 Tc 0.5727 Tw (services provide flexible bandwidth delivery. The Company plans to introduce switched capabilities on this network in 2000 and) Tj T* -0.0405 Tc 2.7259 Tw (2001, to enhance the efficiency of broadband services. MAT\301V intends to further develop this network to support other) Tj T* -0.0255 Tc 0.2261 Tw (capabilities and services.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0324 Tc 0.2173 Tw (International Network. ) Tj 98.64 0 TD /F3 10.08 Tf -0.0444 Tc 0.6931 Tw (As a result of enhancing and upgrading investments, the Company has eliminated the majority of its) Tj -113.04 -12 TD -0.0316 Tc 1.8322 Tw (analog international connections. MAT\301V's international network consists of two state-of-the-art digital gateway exchanges.) Tj 0 -12 TD -0.0439 Tc 0.3646 Tw (These gateway exchanges connect MAT\301V's domestic network to the global international network providing automatic telephone) Tj T* -0.0292 Tc 1.3098 Tw (service with 214 countries. MAT\301V has 11 fiber optic connections, one digital microwave link and one satellite earth station) Tj T* -0.06 Tc 0.5007 Tw (available for connections across Hungary's borders. MAT\301V has established direct "Common Channel Signaling 7" connections) Tj T* -0.0475 Tc 2.1148 Tw (to 40 countries and intends to expand these connections to ten additional countries in 2000. MAT\301V has also established) Tj T* -0.0503 Tc 0.2509 Tw (international ISDN connections with 30 countries and is scheduled to connect ten additional countries in 2000.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0178 Tc 0.2276 Tw (Network Quality. ) Tj 73.2 0 TD /F3 10.08 Tf -0.0269 Tc 0.5018 Tw ( Investment in the network, particularly in modernization initiatives, has led to significant improvements in) Tj -87.6 -12 TD -0.0414 Tc 0.3106 Tw (network quality. For instance, MAT\301V has reduced the percentage of faults per main line per year from 23.88 percent in 1997 to) Tj 0 -12 TD -0.0504 Tc 1.4402 Tw (17.07 percent in 1999, and has reduced the call failure rate for local calls from 0.32 percent to 0.09 percent over the same) Tj T* -0.0738 Tc 3.1087 Tw (period. The Company has also cut downtime per main line per year from 5.04 hours in 1997 to 2.07 hours in 1999.) Tj T* -0.026 Tc 1.5744 Tw (Modernization, particularly the digitalization and rationalization of MAT\301V's switching architecture, has also contributed to) Tj T* -0.0239 Tc 0.2245 Tw (increases in the productivity of its employees.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0042 Tc 0.0049 Tw (Information Technology) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0213 Tc 2.3134 Tw (MAT\301V has dedicated significant resources to improving its information technology systems. MAT\301V believes that the) Tj -14.4 -12 TD -0.035 Tc 1.5063 Tw (continuing development of these systems is essential to improving customer service and the efficiency and productivity of its) Tj 0 -12 TD -0.0278 Tc 0 Tw (employees.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F3 10.08 Tf -0.0322 Tc 0.2329 Tw (MAT\301V's nationwide operational support system integrates the following elements:) Tj ET endstream endobj 101 0 obj 7656 endobj 99 0 obj << /Type /Page /Parent 96 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 100 0 R >> endobj 103 0 obj << /Length 104 0 R >> stream BT 271.92 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0174 Tc 0 Tw (xxvii) Tj -244.08 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf 0.0128 Tc 0 Tw (billing;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0192 Tc 0.2199 Tw (automated call collection;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0748 Tc 0.2755 Tw (customer service orders; and) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0394 Tc 0.24 Tw (technical inventory management.) Tj -27.6 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0373 Tc 0.2944 Tw (This operational support system permits MAT\301V to offer itemized billing, bundle products and services in tariff packages and) Tj -14.4 -12 TD -0.0274 Tc 1.2931 Tw (to generate a single bill for customers with multiple locations. Automated call collection maintains accurate customer billing) Tj 0 -12 TD -0.0414 Tc 1.6981 Tw (and improves tracking of traffic. Integrated customer service order and technical inventory management enables MAT\301V to) Tj T* -0.0432 Tc 1.3027 Tw (shorten service installation intervals in areas where the requisite cabling is already in place. The operational support system) Tj T* -0.0367 Tc 4.0973 Tw (reduces administrative costs and increases internal productivity. MAT\301V implemented the operational support system) Tj T* -0.0567 Tc 0.4174 Tw (throughout its entire network as of October 1998. This system has become integrated into the Company) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0638 Tc 0.5044 Tw (s daily operations and is) Tj T* -0.0772 Tc 0.2778 Tw (upgraded regularly as required.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0491 Tc 2.7397 Tw (MAT\301V has embarked on a number of other information technology initiatives designed to monitor and improve the) Tj -14.4 -12 TD -0.0365 Tc 0.7811 Tw (efficiency of its network and increase employee productivity. A switched network operations and management system facilitates) Tj 0 -12 TD -0.0491 Tc 2.8211 Tw (the centralized management of stored program controlled switches. This system manages: switches, networks, traffic and) Tj T* -0.0262 Tc 0 Tw (signaling.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0384 Tc 0.7323 Tw (In 1997, MAT\301V began implementing the network repair and provisioning system to improve the quality of its service while) Tj -14.4 -12 TD -0.0423 Tc 0.925 Tw (reducing costs. The Company plans to implement a Work and Force Management System \(WFMS\), a new testing system for its) Tj 0 -12 TD -0.0406 Tc 1.3293 Tw (network and services, and a new Automatic Call Distributor \(ACD\) to establish call centers receiving customers) Tj -3.3533 Tc 4.7539 Tw (\222 ) Tj -0.0232 Tc 0 Tw (complaints.) Tj T* -0.042 Tc 0.2754 Tw (The deployment of the test system, the ACD and the call centers were completed in second quarter of 1999. The country wide roll) Tj T* -0.0227 Tc 0.2233 Tw (out of the WFMS is expected to be completed in 2000.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0048 Tc 0 Tw (Competition) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0367 Tc 0.3297 Tw (Notwithstanding the Company's exclusive rights to provide certain fixed line telecommunications services, approximately one) Tj -14.4 -12 TD -0.0567 Tc 0.2574 Tw (third of the Company's 1999 revenues were derived from areas open to direct competition.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0245 Tc 0.0135 Tw (Domestic Fixed Line Telecommunications Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.032 Tc 3.3355 Tw (In its domestic telephony business, the Company is subject to indirect competition from mobile telecommunications) Tj -14.4 -12 TD -0.0211 Tc 1.1394 Tw (providers. Following full liberalization of fixed line voice telephony, a variety of market entrants providing public fixed voice) Tj 0 -12 TD -0.0235 Tc 2.1891 Tw (telephony service, either by interconnecting with MAT\301V's network or via their own infrastructure, will begin to compete.) Tj T* -0.0409 Tc 0.3855 Tw (Existing and potential service providers include other local telephone operators, operators of existing alternative networks, such) Tj T* -0.0349 Tc 0.6786 Tw (as public utilities, railways and mobile telecommunications providers, and global alliances of international telecommunications) Tj T* -0.0512 Tc 0 Tw (providers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0281 Tc 1.6287 Tw (Significant current and potential competitors in domestic telecommunications services include PanTel, Novacom, Vivendi) Tj -14.4 -12 TD -0.0177 Tc 0.2325 Tw (and Antenna Hungaria. The investors in PanTel include KPN Telecom B.V., M\301V Rt., the Hungarian National Railway Company) Tj 0 -12 TD -0.0242 Tc 1.439 Tw (and KFKI Sz\341mit\341stechnikai Rt. Novacom was founded by the Budapest Electric Works, the German RWE Telliance AG and) Tj T* -0.0561 Tc 0.5481 Tw (Telekommunikations Holding S\374dwest GmbH. Vivendi is an investor in Hungarian local telephone operators. Antenna Hung\341ria) Tj T* -0.0293 Tc 0.2299 Tw (is mainly owned by \301llami Privatiz\341ci\363s \351s Vagyonkezel) Tj 228.24 0 TD -0.1512 Tc 0 Tw (o) Tj 5.04 0 TD 0.0445 Tc 0.1562 Tw ( Rt. \(the "\301PV"\).) Tj -233.28 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0191 Tc 0.0081 Tw (International Telecommunications Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.029 Tc 0.4132 Tw (MAT\301V is already subject to indirect competition in the provision of international voice telephony services from by-pass and) Tj -14.4 -12 TD -0.0311 Tc 2.7818 Tw (call-back services, particularly with respect to traffic to the United States and Canada. Although call-back services are) Tj 0 -12 TD -0.0193 Tc 1.3917 Tw (technically illegal in Hungary, they are difficult to prevent. Management believes that the historically balanced nature of its) Tj T* -0.0371 Tc 1.8377 Tw (international tariffs has limited competition from such services. The Company also faces competition from private networks) Tj ET endstream endobj 104 0 obj 7030 endobj 102 0 obj << /Type /Page /Parent 96 0 R /Resources << /Font 105 0 R /ProcSet 2 0 R >> /Contents 103 0 R >> endobj 105 0 obj << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> endobj 107 0 obj << /Length 108 0 R >> stream BT 270.48 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0241 Tc 0 Tw (xxviii) Tj -242.64 693.6 TD /F3 10.08 Tf -0.0493 Tc 1.0749 Tw (connected through leased lines, and companies that lease lines for international data transmission. The Company expects that) Tj 0 -12 TD -0.0342 Tc 1.8398 Tw (competition in the provision of international telephony services, which has traditionally been based on price, will increase,) Tj T* -0.019 Tc 0.8346 Tw (particularly with the anticipated full liberalization of public voice telephony. IP telephony also may redirect calls ) Tj 3.3667 Tc -2.4461 Tw (\227 ) Tj -0.0306 Tc 0 Tw (primarily) Tj T* -0.0203 Tc 0.701 Tw (international calls ) Tj 3.3667 Tc -2.6861 Tw (\227 ) Tj -0.0294 Tc 0.8472 Tw (from MAT\301V's network. IP telephony can be less expensive than traditional telephony service but suffers) Tj T* -0.0325 Tc 1.1931 Tw (from low quality. Companies offering IP telephony include Pantel, Novacom and the three digital mobile service providers in) Tj T* -0.0838 Tc 0 Tw (Hungary.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0142 Tc 0.0032 Tw (Leased Lines and Data Transmission Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0348 Tc 1.1954 Tw (MAT\301V competes in the provision of leased lines with various operators. MAT\301V's data transmission and related services) Tj -14.4 -12 TD -0.0494 Tc 3.25 Tw (face significant competitive pressure. A large number of Hungarian companies have established private data networks.) Tj 0 -12 TD -0.0545 Tc 0.5591 Tw (Competitors have also established data transmission networks using leased lines and their own switching capacity. Management) Tj T* -0.0356 Tc 0.6152 Tw (believes the extent and quality of the Company's network and attractive pricing give it a competitive advantage in the provision) Tj T* -0.0518 Tc 0.2524 Tw (of leased lines and data transmission and related services.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.022 Tc 0.9427 Tw (MAT\301V faces competitive pressure in the provision of Internet services as well. Significant competitors in Internet services) Tj -14.4 -12 TD -0.0422 Tc 0.8295 Tw (include Elender, Datanet and Euroweb. Elender is part of PSINet Group, Datanet is fully owned by Global TeleSystems Group) Tj 0 -12 TD -0.0357 Tc 0.2364 Tw (and the majority owner of Euroweb is PanTel.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.011 Tc -0 Tw (Mobile Telecommunications Services) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0407 Tc 3.4471 Tw (The digital mobile telecommunications market in Hungary is highly competitive and is characterized by successive) Tj -14.4 -12 TD -0.0491 Tc 0.3398 Tw (promotional campaigns and price competition. Westel 900 currently competes principally with Pannon GSM and the new entrant) Tj 0 -12 TD -0.0436 Tc 1.5007 Tw (on the GSM market, Vodafone. In general, Westel 900 has sought to attract customers through competitive pricing, superior) Tj T* -0.0474 Tc 0.248 Tw (distribution, customer service and discounting handset sales.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0244 Tc 1.7661 Tw (Although Westel 450 is the sole provider of analog mobile services, it competes with the digital services of Westel 900,) Tj -14.4 -12 TD -0.0537 Tc 1.3132 Tw (Pannon GSM and Vodafone. To retain subscribers, Westel 450 has maintained lower tariffs and launched an active customer) Tj 0 -12 TD -0.0377 Tc 0.505 Tw (retention campaign. Management believes that Westel 450 will be able to maintain its analog subscriber base because of Westel) Tj T* -0.0648 Tc 1.7455 Tw (450's lower usage costs. The design of analog handsets has improved to the point where advantages associated with digital) Tj T* -0.0478 Tc 1.6743 Tw (handsets have been largely eliminated. The factory price of analog handsets is still generally higher than comparable GSM) Tj T* -0.0591 Tc 0.2597 Tw (handsets, but promotional campaigns have kept the price to the consumer at or near the price of GSM handsets.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 108 0 obj 4352 endobj 106 0 obj << /Type /Page /Parent 96 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 107 0 R >> endobj 110 0 obj << /Length 111 0 R >> stream BT 273.36 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0673 Tc 0 Tw (xxix) Tj -245.52 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0 Tw (Employees) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0555 Tc 0.3461 Tw (MAT\301V employed 15,377 persons as of December 31, 1999. The following table provides information concerning the number) Tj -14.4 -12 TD -0.0059 Tc 0.2065 Tw (of full-time employees, including full-time equivalents, of MAT\301V Rt. and its consolidated subsidiaries:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 276.96 684 0.24 11.04 re h W n BT 276.96 686.16 TD ( ) Tj ET Q q 283.68 684 0.24 11.04 re h W n BT 283.68 686.16 TD ( ) Tj ET Q BT 308.88 685.92 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj ET q 356.16 684 0.24 11.04 re h W n BT 356.16 686.16 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 377.28 685.92 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj ET q 424.56 684 0.24 11.04 re h W n BT 424.56 686.16 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 445.68 685.92 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj -417.84 -13.44 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1246 Tc 0.076 Tw (MAT\301V Rt.:) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.32 0 TD ( ) Tj 38.16 0 TD ( ) Tj 30.24 0 TD ( ) Tj 38.16 0 TD ( ) Tj 30.24 0 TD ( ) Tj ET 288.72 682.08 57.6 0.72 re f 357.12 682.08 57.6 0.72 re f 425.52 682.08 57.6 0.72 re f BT 27.84 660.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1056 Tc 0.095 Tw ( Average number of employees ...........................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (15,217) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (14,098) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,665) Tj -414.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0823 Tc 0.1184 Tw ( Number of employees at period end ...................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (14,771) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (13,287) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,093) Tj -165.84 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6.72 -0.24 TD ( ) Tj 50.16 0 TD ( ) Tj 14.4 0 TD ( ) Tj 54 0 TD ( ) Tj 14.4 0 TD ( ) Tj 54 0 TD ( ) Tj -442.8 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0132 Tc 0.2139 Tw (MAT\301V Rt. and its consolidated subsidiaries:) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 50.16 0 TD ( ) Tj 14.4 0 TD ( ) Tj 54 0 TD ( ) Tj 14.4 0 TD ( ) Tj 54 0 TD ( ) Tj -442.8 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1056 Tc 0.095 Tw ( Average number of employees ...........................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (19,094) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (17,535) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,034) Tj -414.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0823 Tc 0.1184 Tw ( Number of employees at period end ...................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (18,187) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,595) Tj 42.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (15,377) Tj -400.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0414 Tc 0.3111 Tw (Workforce Reduction and Redeployment. ) Tj 170.88 0 TD /F3 10.08 Tf -0.0381 Tc 0.6228 Tw ( Centralization and technological improvements as well as attrition have permitted) Tj -185.28 -12 TD -0.0295 Tc 2.3649 Tw (the Company to reduce the size of its workforce. While overall personnel levels are falling, the number of highly skilled) Tj 0 -12 TD -0.0264 Tc 2.2741 Tw (employees is increasing. MAT\301V expects to further reduce its number of employees. Access lines per fixed line employee) Tj T* -0.0755 Tc 0.3283 Tw (increased from 136 at December 31, 1996 to 240 at December 31, 1999, which brings our goal set in 1997 to achieve 250 access) Tj T* -0.0346 Tc 0.2352 Tw (lines per fixed line employees by the end of 2000 well within reach.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0188 Tc 1.5486 Tw (Employee Representation and Labor Relations.) Tj 196.08 0 TD /F3 10.08 Tf -0.0185 Tc 1.7991 Tw ( MAT\301V Rt. has entered into a collective bargaining agreement with the) Tj -210.48 -12 TD -0.0493 Tc 0.3249 Tw (Hungarian Telecommunications Trade Union. The agreement, which can be terminated by either party with three months' notice,) Tj 0 -12 TD -0.0143 Tc 0.8016 Tw (applies to all MAT\301V Rt. employees except for the Chief Executive Officer, regardless of their union membership status. Wage) Tj T* -0.0413 Tc 0.2984 Tw (terms in the agreement must be renegotiated annually. Under the agreement, employees are generally entitled to specific periods) Tj T* -0.0407 Tc 0.8147 Tw (of notice before termination. Furthermore, employees are entitled to a specific amount of severance pay, which depends on the) Tj T* -0.0333 Tc 0.2339 Tw (tenure of the employee. Employees are also entitled to welfare benefits as discussed below.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0439 Tc 1.9405 Tw (In addition to the collective bargaining agreement, MAT\301V's employees are generally covered by the Hungarian Labor) Tj -14.4 -12 TD -0.0458 Tc 1.4041 Tw (Code, Law XXII of 1992, as amended, which imposes various restrictions on the involuntary termination of employment. The) Tj 0 -12 TD -0.0584 Tc 1.324 Tw (Hungarian Labor Code protects employee interests through two different labor organizations: the Trade Union and the Plant) Tj T* -0.0264 Tc 3.1917 Tw (Council. The Trade Union, as the official representative of employee interests in negotiations relating to the terms of) Tj T* -0.0373 Tc 0.25 Tw (employment, has the right to be informed of all corporate measures that may significantly affect the interests of employees and to) Tj T* -0.044 Tc 0.4396 Tw (commence legal action against the Company for employment-related conduct that infringes an employment rule. In addition, the) Tj T* -0.0346 Tc 1.7952 Tw (Plant Council directly represents employee interests in dealings with management and decides jointly with the employer on) Tj T* -0.0438 Tc 0.5832 Tw (matters involving employee welfare funds and institutions. The Plant Council must be informed in semi-annual reports on issues) Tj T* -0.0619 Tc 1.5426 Tw (affecting the Company's economic performance and changes in wages, employment conditions and working hours. The Plant) Tj T* -0.0433 Tc 1.444 Tw (Council must also be consulted regarding corporate measures affecting employees. The Plant Council elects one-third of the) Tj T* -0.0708 Tc 0.2714 Tw (members of the Company's Supervisory Board.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0289 Tc 0.6562 Tw (MAT\301V believes that its relations with its employees are good. MAT\301V has not experienced any labor strikes or disruptions) Tj -14.4 -12 TD -0.0139 Tc 0.2146 Tw (since its formation.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0014 Tc 3.3884 Tw (Pensions and Benefit Programs. ) Tj 0 Tc 0.0898 Tw ( ) Tj 151.2 0 TD /F3 10.08 Tf -0.0337 Tc 3.5943 Tw (MAT\301V provides employees with discounted telephone services, subsidized meals,) Tj -165.6 -12 TD -0.0317 Tc 3.3363 Tw (commuting expenses, discount holiday facilities and other in-kind benefits. In addition to its statutory contributions to) Tj 0 -12 TD -0.0444 Tc 0.7765 Tw (governmental health, retirement and unemployment schemes, MAT\301V contributes to the employees' voluntary pension fund and) Tj T* -0.0583 Tc 1.1636 Tw (supplementary benefits fund, which provides private pension and health insurance benefits supplementing government pension) Tj T* -0.0506 Tc 2.7846 Tw (and health benefits. The Company does not, however, guarantee payment by the benefits fund to its members. In 1999,) Tj T* -0.0367 Tc 1.3809 Tw (approximately 90 percent of all employees participated in the pension plan and self-help plans. MAT\301V established a health) Tj T* -0.0721 Tc 0.2728 Tw (fund in 1998 that had a membership of 8,737 at the end of 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0008 Tc 0.1806 Tw (Share Transfer to Employees of the Company. ) Tj 193.44 0 TD /F3 10.08 Tf -0.0449 Tc 0.4856 Tw (In March 1996, the \301PV, one of the Company's principal shareholders at that) Tj -207.84 -12 TD -0.0209 Tc 0.4489 Tw (time, instituted an employee stock transfer plan for the benefit of MAT\301V's employees. Under the plan, the \301PV sold 27,883,300) Tj 0 -12 TD -0.044 Tc 2.2168 Tw (shares to an entity set up for the purpose of creating the plan \(the "MRP"\), which in turn sells the shares it acquires to) Tj T* -0.0218 Tc 0.8035 Tw (participating employees. Employees of MAT\301V Rt. who had been employed for one year were eligible to participate. A total of) Tj ET endstream endobj 111 0 obj 10041 endobj 109 0 obj << /Type /Page /Parent 96 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 110 0 R >> endobj 113 0 obj << /Length 114 0 R >> stream BT 274.8 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0706 Tc 0 Tw (xxx) Tj -246.96 693.6 TD /F3 10.08 Tf -0.0553 Tc 0.256 Tw (24,397,000 shares were allocated and sold to participants in first subscription period which ended in September 1996. In the first) Tj 0 -12 TD -0.0599 Tc 0.3806 Tw (six months of 1997, an additional 2,502,200 shares were allocated and sold to participants. No further undistributed shares were) Tj T* -0.065 Tc 0.2656 Tw (allocated during any subsequent period.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.054 Tc 0.9386 Tw (A fixed purchase price of HUF 118.05 per share was paid by participants on an installment basis, and all installments had) Tj -14.4 -12 TD -0.0511 Tc 1.3831 Tw (been paid by December 31, 1999. Participants may withdraw their shares any time from the MRP and are free to dispose of) Tj 0 -12 TD 0.0086 Tc 0 Tw (them.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0434 Tc 1.6208 Tw (From June 29, 1998 to July 1, 1998, MAT\301V Rt. issued 7 million convertible bearer bonds, known as the "Management) Tj -14.4 -12 TD -0.0402 Tc 0.3708 Tw (Incentive Program Bond" each with a face value of HUF 1. The holder of a bond may convert it into one newly issued MAT\301V A) Tj 0 -12 TD -0.0539 Tc 0.6745 Tw (series registered common share with a face value of HUF 100, in accordance with the allocation and conversion rules. On July) Tj T* -0.0485 Tc 0.2491 Tw (1, 1998, 4.2 million bonds were allocated to management.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0492 Tc 0.7779 Tw (The Bonds may be converted into newly issued MAT\301V A series registered common stock over a three year period with one) Tj -14.4 -12 TD -0.0585 Tc 1.1774 Tw (third vesting each year beginning July 1, 1999. Bonds can not be converted after the end of the bond's term. No bonds have) Tj 0 -12 TD -0.0713 Tc 0.2719 Tw (been converted as of December 31, 1999. By December 31, 1999, 402 thousand bonds had been forfeited by management.) Tj 18 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0494 Tc 0.2879 Tw (The conversion price of the Bonds is the Hungarian Forint equivalent of U.S.$5.75 per bond, calculated based on the middle) Tj -18 -12 TD -0.0466 Tc 0.6815 Tw (U.S.$/HUF exchange rate quoted by the Hungarian Central Bank on the day of conversion, less the face value of the Bond, but) Tj 0 -12 TD -0.0342 Tc 0.2348 Tw (not less than the initial public offering price of HUF 730 per share.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0408 Tc 1.9972 Tw (Compensation cost is not recognized in these financial statements for the fair value or the intrinsic value of the bonds) Tj -14.4 -12 TD -0.0505 Tc 0 Tw (granted.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0048 Tc 0.0043 Tw (REGULATION AND PRICING) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0052 Tc 0 Tw (Overview) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0586 Tc 1.1507 Tw (The regulatory regime governing telecommunications services in Hungary has been substantially revised since 1990, when) Tj -14.4 -12 TD -0.0275 Tc 0.7504 Tw (the former state postal, telephone and telegraph authority, Magyar Posta, was divided into three distinct operations. Act LXXII) Tj 0 -12 TD -0.0544 Tc 0.7179 Tw (of 1992 on Telecommunications, as amended \(the "Telecommunications Act"\), established the general regulatory framework for) Tj T* -0.0472 Tc 0.8307 Tw (the Hungarian telecommunications sector. The Telecommunications Act provides for the promulgation of additional decrees by) Tj T* -0.0454 Tc 1.5166 Tw (the Hungarian government and the Ministry. The telecommunications sector is also governed by other legislation that is not) Tj T* -0.0417 Tc 0.6323 Tw (specific to telecommunications, including, among others, Act XVI of 1991 on Concessions, as amended \(the "Concessions Act"\),) Tj T* -0.0281 Tc 1.9888 Tw (Act LXXXVII of 1990 on Pricing, as amended \(the "Pricing Act"\), and Act LVII of 1996 on the Prohibition of Unfair and) Tj T* 0.0042 Tc 0.1964 Tw (Restrictive Market Practice \(the "Competition Act"\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 114 0 obj 4502 endobj 112 0 obj << /Type /Page /Parent 96 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 113 0 R >> endobj 117 0 obj << /Length 118 0 R >> stream BT 273.36 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0673 Tc 0 Tw (xxxi) Tj -245.52 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.005 Tc 0.0041 Tw (Telecommunications Act) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0464 Tc 0.3499 Tw (Pursuant to the Telecommunications Act, national telecommunications policy is developed by the Hungarian government and) Tj -14.4 -12 TD -0.0556 Tc 0.2562 Tw (approved by the Hungarian parliament. The Minister is responsible for, among other things:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0436 Tc 0.2442 Tw (supervising the telecommunications sector;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0606 Tc 0.2613 Tw (drafting national telecommunications policy proposals and procedures;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0227 Tc 0.2233 Tw (coordinating state activities relating to telecommunications;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0616 Tc 0.2623 Tw (designating primary service areas;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0974 Tc 0.298 Tw (awarding concessions; and) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0189 Tc 0.2196 Tw (setting, in agreement with the Minister of Finance, tariffs for concessionary services.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0537 Tc 1.0122 Tw (The Telecommunications Act sets forth that the following services can be provided only by a concession company or by an) Tj -14.4 -12 TD -0.0387 Tc 0.2394 Tw (enterprise formed for this purpose by, or with the majority participation of, the Hungarian state:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0268 Tc 0.2275 Tw (public fixed line voice telephone network services;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0343 Tc 0.2349 Tw (public mobile telephone services;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0612 Tc 0.2619 Tw (nationwide public paging services; and) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0598 Tc 0.2604 Tw (national and regional television and radio broadcasts.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0425 Tc 0.2432 Tw (The Ministry has discretion to determine the number, scope and exclusivity of concessions granted.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0434 Tc 0.4134 Tw (Other public telecommunications services and activities do not require a concession, but are subject to various licensing and) Tj -14.4 -12 TD -0.0647 Tc 0.413 Tw (frequency assignment requirements designed to ensure operational security, undisturbed cooperation between networks and data) Tj 0 -12 TD -0.0255 Tc 0.2261 Tw (protection. These liberalized services include:) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0033 Tc 0.2039 Tw (certain satellite services;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.05 Tc 0.2507 Tw (public switched data transmission services;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0262 Tc 0.2268 Tw (leased line services;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0709 Tc 0.2715 Tw (value added services; and) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0679 Tc 0.2685 Tw (the establishment and operation of special purpose or closed user group networks.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0352 Tc 1.1658 Tw (Under the Telecommunications Act, a concession holder may engage in activities functionally related to its concession. In) Tj -14.4 -12 TD -0.0461 Tc 4.4067 Tw (addition, the Concessions Act requires that the concession holder be dissolved upon termination of its concession.) Tj 0 -12 TD -0.0333 Tc 0.4589 Tw (Notwithstanding this requirement, MAT\301V believes that if its concession rights were terminated, arrangements could be made to) Tj T* -0.0263 Tc 0.227 Tw (enable MAT\301V to engage in non-concessionary activities.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0319 Tc 1.3772 Tw (At the national and regional level, the Budapesti H\355rk\366zl\351si Fel\374gyelet \(the "Budapest Telecommunications Inspectorate"\)) Tj -14.4 -12 TD -0.0347 Tc 2.2925 Tw (and, at the local level, regional telecommunications authorities \("Regional Inspectorates" and, together with the Budapest) Tj 0 -12 TD -0.0411 Tc 2.2356 Tw (Telecommunications Inspectorate, the "Inspectorates"\) are responsible for licensing. The activities of the Inspectorates are) Tj T* -0.0584 Tc 1.5791 Tw (supervised by the Telecommunications General Inspectorate, a central budgetary organization established in 1993 under the) Tj T* -0.038 Tc 7.0987 Tw (control of the Ministry. The Inspectorates supervise the telecommunications service providers, issue required) Tj ET endstream endobj 118 0 obj 7040 endobj 115 0 obj << /Type /Page /Parent 116 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 117 0 R >> endobj 120 0 obj << /Length 121 0 R >> stream BT 271.92 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0654 Tc 0 Tw (xxxii) Tj -244.08 693.6 TD /F3 10.08 Tf -0.0415 Tc 0.4479 Tw (telecommunications service licenses and interconnection permits and monitor compliance with licenses and permits. In addition,) Tj 0 -12 TD -0.0512 Tc 0.2519 Tw (the Budapest Telecommunications Inspectorate is responsible for allocating frequencies and frequency bands.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.052 Tc 0.5955 Tw (The Hungarian government has also established the National Telecommunications and Informatics Council, which advises it) Tj -14.4 -12 TD -0.0621 Tc 0.2627 Tw (on managing frequency use and on the telecommunications and information services sectors.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.005 Tc 0.0041 Tw (Fixed Line Concession Contracts) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0512 Tc 0.3852 Tw (In 1993, the Minister divided Hungary into 54 local primary geographic areas \("Local Primary Areas"\) for local public fixed) Tj -14.4 -12 TD -0.0325 Tc 1.0864 Tw (line voice telephony service. In August 1993, the Minister issued an international tender for the right to provide international) Tj 0 -12 TD -0.0487 Tc 2.1243 Tw (and domestic long distance telephone services throughout Hungary, and to provide local public fixed line voice telephony) Tj T* -0.0283 Tc 0.709 Tw (services in 29 of the 54 Local Primary Areas, including Budapest. The Minister selected MagyarCom, MAT\301V's parent holding) Tj T* -0.0589 Tc 0.2596 Tw (company as the winning bidder in the tender.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0336 Tc 2.2248 Tw (MagyarCom then assigned certain of its rights to MAT\301V. On December 22, 1993, MAT\301V entered into a concession) Tj -14.4 -12 TD -0.0294 Tc 1.2051 Tw (contract \(the "Concession Contract"\) with the Minister. The Concession Contract gives MAT\301V the exclusive right to provide) Tj 0 -12 TD -0.0445 Tc 1.0402 Tw (domestic long distance and international public fixed line voice telephony services throughout Hungary and local public fixed) Tj T* -0.0511 Tc 0.2975 Tw (line voice telephony services in 29 Local Primary Areas for a term of eight years ending December 22, 2001. The concession has) Tj T* -0.0567 Tc 0.2573 Tw (a total duration of 25 years and may be further extended by agreement with the Minister for another 12 and one-half years.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0319 Tc 0.7126 Tw (In September 1993, the Minister issued a second competitive tender for the exclusive right to provide local public fixed line) Tj -14.4 -12 TD -0.0321 Tc 1.6222 Tw (voice telephony services in the remaining 25 of the 54 Local Primary Areas. MAT\301V obtained the right to provide services) Tj 0 -12 TD -0.0464 Tc 1.3161 Tw (directly in seven of those areas by being the successful bidder in respect of five areas, and the default provider in two areas) Tj T* -0.0415 Tc 0.5579 Tw (where there was no successful bidder. MAT\301V also obtained the right to provide services indirectly in an additional three areas) Tj T* -0.0314 Tc 1.9752 Tw (through joint ventures. With respect to the five areas where it was the successful bidder, MAT\301V's rights are governed by) Tj T* -0.0582 Tc 1.2938 Tw (separate concession contracts. Rights to service the remaining 15 areas were distributed among 12 local telephone operators) Tj T* -0.0617 Tc 0 Tw (\("LTOs"\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0342 Tc 0.7508 Tw (The Minister agreed in the Concession Contract that until December 22, 2001, it will use its best efforts to prevent changes) Tj -14.4 -12 TD -0.0415 Tc 1.6821 Tw (in the decrees relating to interconnection, tariffs or other telecommunications matters which would have a material adverse) Tj 0 -12 TD 0.0268 Tc 0.1738 Tw (impact on MAT\301V.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0411 Tc 1.846 Tw (MAT\301V must pay concession fees with respect to its national concession and each of its local concessions equal to 0.1) Tj -14.4 -12 TD -0.0474 Tc 0.4614 Tw (percent of its total annual gross revenues generated and received from public telephone services. In its Debrecen Local Primary) Tj 0 -12 TD -0.0315 Tc 0.8511 Tw (Area, MAT\301V must pay 3.3 percent, in its Szentendre Local Primary Area 2.0 percent and in its Sz\351kesfeh\351rv\341r Local Primary) Tj T* -0.0262 Tc 0.2268 Tw (Area 4.0 percent.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0256 Tc 1.3153 Tw (Service Provision Requirements.) Tj 134.4 0 TD /F3 10.08 Tf -0.0399 Tc 1.5278 Tw ( The Telecommunications Act generally requires each public telephone service provider,) Tj -148.8 -12 TD -0.0371 Tc 0.7444 Tw (including MAT\301V, to enter into subscriber contracts and provide connections to the public network to all subscribers within its) Tj 0 -12 TD -0.0419 Tc 2.3185 Tw (Local Primary Area. If the service provider does not connect a subscriber within the required period, it must pay to the) Tj T* -0.0438 Tc 0.9885 Tw (subscriber liquidated damages equal to one third of the monthly subscriber's fee for each day of the delay. MAT\301V paid HUF) Tj T* -0.0453 Tc 2.3077 Tw (373 million in 1997, HUF 70 million in 1998 and HUF 46 million in 1999 in respect of these penalties. The rights and) Tj T* -0.0628 Tc 0.6834 Tw (obligations of the public telephone service providers and the subscribers are regulated under the Government Decree 243/1997) Tj T* -0.0533 Tc 0.254 Tw (\(XII.20\) on the Telecommunication Subscriber Contracts, which came into force on January 1, 1998.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0336 Tc 0.3353 Tw (Under the fixed line concession contracts, in each of its Local Primary Areas, MAT\301V must also meet requests of subscribers) Tj -14.4 -12 TD -0.037 Tc 0.5156 Tw (for public telephone services within certain time limits. The Company must meet 90 percent of the requests of subscribers within) Tj 0 -12 TD -0.0325 Tc 0.2331 Tw (six months, and 98 percent within 12 months. In 1999, MAT\301V met these requirements in all of its Local Primary Areas.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.013 Tc 1.5167 Tw (Minimum Service Requirements) Tj 134.64 0 TD /F3 10.08 Tf -0.023 Tc 1.7494 Tw (. MAT\301V also must provide the following minimum services in its Local Primary Areas) Tj -149.04 -12 TD -0.0303 Tc 0.2309 Tw (during its eight-year exclusivity periods:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0513 Tc 0.252 Tw (access to local public emergency services free of charge with a uniform national telephone number;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 121 0 obj 7266 endobj 119 0 obj << /Type /Page /Parent 116 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 120 0 R >> endobj 123 0 obj << /Length 124 0 R >> stream BT 270.48 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (xxxiii) Tj -229.2 693.12 TD /F5 10.08 Tf -5.2781 Tc (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0379 Tc 0.2385 Tw (printed directories for each Local Primary Area;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0564 Tc 0.257 Tw (directory information service at a reasonable charge approved by the Minister; and) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0563 Tc 1.8341 Tw (directory information to other foreign or domestic operators of telecommunications networks and to other companies) Tj 0 -12 TD -0.058 Tc 0.2587 Tw (publishing directories at a reasonable charge.) Tj -27.84 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0497 Tc 0.7463 Tw (The Company understands that the Minister is considering implementing some form of "universal service" obligation, which) Tj -14.4 -12 TD -0.0504 Tc 0.3711 Tw (might include a defined minimum service to be provided to all users at an affordable price. Under comparable regulations in the) Tj 0 -12 TD -0.0392 Tc 0.4092 Tw (European Union, the universal service obligation includes the provision of voice telephone service via a fixed connection, which) Tj T* -0.0593 Tc 1.5266 Tw (also allows for the operation of a fax and modem, operator assistance, emergency and directory inquiry services and public) Tj T* -0.0271 Tc 0 Tw (telephones.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0079 Tc 1.7618 Tw (Development Targets) Tj 88.56 0 TD /F3 10.08 Tf -0.0529 Tc 2.1222 Tw (. In the four Local Primary Areas covered by separate concession contracts, annual development) Tj -102.96 -12 TD -0.0312 Tc 1.1792 Tw (targets were established for fixed access lines with penalties including fines and a possible reduction in the term of MAT\301V's) Tj 0 -12 TD -0.0277 Tc 1.6401 Tw (exclusivity period if targets were not met. These annual development targets required MAT\301V, subject to there having been) Tj T* -0.0393 Tc 0.8589 Tw (sufficient demand, to increase the number of installed access lines by 15.5 percent per year through 1999. MAT\301V satisfied or) Tj T* -0.0471 Tc 0.2478 Tw (exceeded these annual development targets.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0112 Tc 0.8209 Tw (Service Quality Requirements.) Tj 125.04 0 TD /F3 10.08 Tf -0.0452 Tc 1.1201 Tw ( The fixed line concession contracts also establish annual quality of service targets through) Tj -139.44 -12 TD -0.0561 Tc 0.7114 Tw (the year 2002 based upon percentage of call completions, dial tone delays, customer service call response times and number of) Tj 0 -12 TD -0.0184 Tc 0.539 Tw (billing complaints. MAT\301V did not meet all of its quality of service targets in 1997 and incurred penalties of HUF 80.3 million.) Tj T* -0.0247 Tc 0.2253 Tw (In 1998 and 1999, MAT\301V met all of its quality of service requirements.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0398 Tc 0.5404 Tw (The Company has always agreed with the Ministry on the penalties charged for the failure to meet quality of service targets.) Tj -14.4 -12 TD -0.038 Tc 0.2386 Tw (In addition, the targets originally established in the fixed line concession contracts have been adjusted twice, on an agreed basis,) Tj 0 -12 TD -0.0478 Tc 0.2485 Tw (to more closely reflect international and European standards.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0443 Tc 0.7502 Tw (The Company may not meet its annual development targets and quality of service targets in the future. Measures that could) Tj -14.4 -12 TD -0.0455 Tc 0.3262 Tw (be taken against the Company in the future as a result of failing to meet these targets may have a material adverse impact on the) Tj 0 -12 TD -0.049 Tc 0.2496 Tw (Company's business, financial condition or results of operations.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0451 Tc 2.0549 Tw (Cross-subsidy Prohibition.) Tj 108.96 0 TD /F3 10.08 Tf -0.0406 Tc 2.1613 Tw ( MAT\301V may not subsidize its non-concessionary telecommunications services or the sale of) Tj -123.36 -12 TD -0.0558 Tc 0.9421 Tw (telecommunications and computer equipment with revenues from its concessionary telephone services. The Company must also) Tj 0 -12 TD -0.0584 Tc 0.2591 Tw (maintain separate accounts for expenses and revenues associated with the provision of concessionary telephone services.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0433 Tc 3.0131 Tw (Domestic Goods and Services) Tj 128.88 0 TD /F3 10.08 Tf -0.0266 Tc 3.1257 Tw (. The fixed line concession contracts require MAT\301V to use specified percentages of) Tj -143.28 -12 TD -0.0462 Tc 0.2469 Tw (Hungarian goods and services in providing concessionary telephone services. MAT\301V is currently satisfying these requirements.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0471 Tc 0.5368 Tw (Provider of Last Resort.) Tj 97.44 0 TD /F3 10.08 Tf -0.0418 Tc 0.7224 Tw ( If the Minister terminates a local concession or an LTO ceases to provide telephone service in any) Tj -111.84 -12 TD -0.0364 Tc 0.4237 Tw (Local Primary Area, within 30 days following notice from the Minister, MAT\301V must provide such service on reasonable agreed) Tj 0 -12 TD -0.0468 Tc 1.2341 Tw (terms and conditions, including reasonable funding by the Ministry, until a new concession is awarded to MAT\301V or another) Tj T* -0.035 Tc 0.2357 Tw (service provider.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0391 Tc 2.7689 Tw (Non-concessionary Services.) Tj 118.56 0 TD /F3 10.08 Tf -0.0371 Tc 3.0577 Tw ( Under the Telecommunications Act and the Concession Contract, MAT\301V may provide) Tj -132.96 -12 TD -0.0398 Tc 0.2725 Tw (telecommunications services not requiring a concession, including leased line services and value added services. These activities) Tj 0 -12 TD -0.0306 Tc 0.2312 Tw (are not subject to concession fees.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0042 Tc 0.3339 Tw (Modification and Termination of Concessions.) Tj 189.84 0 TD /F3 10.08 Tf -0.0236 Tc 0.5515 Tw ( Under the Telecommunications Act, the Minister may periodically review the) Tj -204.24 -12 TD -0.0318 Tc 0.543 Tw (provisions of the fixed line concession contracts in the interest of national defense, public security, consumer interest, economic) Tj 0 -12 TD -0.0449 Tc 2.7826 Tw (development and the fulfillment of Hungary's international agreements. The Minister's conclusions must be supported by) Tj T* -0.0239 Tc 0.2386 Tw (evidence and, subject to a reconciliation procedure, the Minister may unilaterally modify such provisions. In such event, MAT\301V) Tj T* -0.0327 Tc 0.726 Tw (may be entitled to compensation. The Minister has not exercised his authority to modify unilaterally any provisions of the fixed) Tj T* -0.0376 Tc 0.2382 Tw (line concession contracts.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 124 0 obj 7670 endobj 122 0 obj << /Type /Page /Parent 116 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 123 0 R >> endobj 126 0 obj << /Length 127 0 R >> stream BT 270.96 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.02 Tc 0 Tw (xxxiv) Tj -228.72 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0261 Tc 2.1341 Tw (The fixed line concession contracts may be terminated at any time with the consent of both the Minister and MAT\301V.) Tj -14.4 -12 TD -0.0419 Tc 0.2426 Tw (Following notice and a hearing, the Minister may unilaterally terminate any or all rights granted under a concession contract, in) Tj 0 -12 TD -0.0305 Tc 0.2312 Tw (its entirety or with respect to a specified service or geographic area, if:) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0239 Tc 0.3366 Tw (MAT\301V repeatedly and willfully violates material provisions of the concession contract, and, after having received notice) Tj 0 -12 TD -0.037 Tc 0.2376 Tw (of such violations from the Minister, refuses to take the appropriate steps to correct such violations in a timely manner;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0337 Tc 2.2651 Tw (MAT\301V unreasonably fails to allow authorized telecommunications service providers to interconnect with its public) Tj 0 -12 TD -0.0184 Tc 1.6167 Tw (telephone network, or MAT\301V fails, after having received notice thereof from the Minister, to pay fees and penalties) Tj T* -0.0651 Tc 0.2657 Tw (provided for in a concession contract; or) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0368 Tc 1.6935 Tw (liquidation or bankruptcy proceedings are instituted against MAT\301V, or MAT\301V makes a general assignment for the) Tj 0 -12 TD -0 Tc 0.2007 Tw (benefit of its creditors.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0379 Tc 1.2832 Tw (Upon termination of the Concession Contract, MAT\301V must be dissolved pursuant to the Concession Act. Pursuant to the) Tj -14.4 -12 TD -0.0539 Tc 1.0734 Tw (Company's amended Articles of Association, upon dissolution of the Company without a successor, the Hungarian state as the) Tj 0 -12 TD -0.0601 Tc 1.8364 Tw (holder of the Series "B" Share has the right to purchase all or any part of the assets of the Company, including shares of) Tj T* -0.0523 Tc 0.4358 Tw (subsidiaries or affiliates, for a price equal to the appraised value of the assets as determined by an independent appraiser or the) Tj T* -0.0417 Tc 0.2423 Tw (auditor of the Company. See "Control of Registrant.") Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0363 Tc 0.4063 Tw (The Minister has begun negotiations with MAT\301V and the LTOs regarding the possible early introduction of liberalization in) Tj -14.4 -12 TD -0.0198 Tc 0.2583 Tw (the market for public fixed line voice telephony services. The negotiations could result in MAT\301V's exclusive rights to provide its) Tj 0 -12 TD -0.0464 Tc 0.247 Tw (concessionary services expiring before December 2001 or, in the case of five Local Primary Areas, May 2002.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0046 Tc 0.5652 Tw (Change of Control.) Tj 78.96 0 TD /F3 10.08 Tf -0.0466 Tc 0.8339 Tw ( Under the Concession Contract, the Minister must give consent to any transfer which would result in a) Tj -93.36 -12 TD -0.0628 Tc 0.4782 Tw (person or persons acting in concert acquiring more than 10 percent of MAT\301V's outstanding shares over a two-year period. The) Tj 0 -12 TD -0.0404 Tc 0.8411 Tw (Minister's consent may not be withheld if the proposed transferee is a financially, legally and professionally sound strategic or) Tj T* -0.036 Tc 0.9567 Tw (financial investor that is well regarded and deemed to be prominent in its particular field by the international marketplace. In) Tj T* -0.0595 Tc 0.5668 Tw (other cases, the Minister must consider the documents and information presented to him and may not unreasonably withhold his) Tj T* -0.0336 Tc 0 Tw (consent.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.045 Tc 2.2056 Tw (The prior consent of the Minister is not required in certain cases, including transfers to underwriters in offerings and) Tj -14.4 -12 TD -0.0277 Tc 0.2284 Tw (changes of control confined to Deutsche Telekom, SBC and their affiliates.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0053 Tc 0.0039 Tw (Mobile Concession Contracts) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0468 Tc 1.4924 Tw (Hungary was the first country in Central and Eastern Europe to introduce public mobile telecommunications services. In) Tj -14.4 -12 TD -0.0482 Tc 2.3639 Tw (1993, the Minister awarded two concessions to provide nationwide cellular telephone services using the digital GSM 900) Tj 0 -12 TD -0.054 Tc 1.8084 Tw (standard: one to Westel 900 and the other to Pannon GSM Rt. Westel 450 began providing analog mobile radio telephone) Tj T* -0.0382 Tc 0.2388 Tw (service in October 1990 with an exclusive license, and in 1994 entered into an exclusive concession contract with the Minister.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0046 Tc 0.0045 Tw (Westel 900) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0577 Tc 0.5434 Tw (Under the concession contract, dated November 4, 1993, as amended \(the "900 Concession Contract"\), between the Minister) Tj -14.4 -12 TD -0.0338 Tc 0.8745 Tw (and Westel 900, Westel 900 has the right for 15 years from that date to provide public GSM mobile telephony services. Westel) Tj 0 -12 TD -0.0707 Tc 0.6157 Tw (900 is authorized to provide GSM service in the 906 to 914 and 951 to 959 MHz frequency ranges in Hungary. The parties may) Tj T* -0.0532 Tc 0.2538 Tw (agree to extend the Westel 900 concession for a period of seven and one-half years.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -0.24 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0489 Tc 1.7495 Tw (On February 25, 1999 the Ministry issued an invitation to tender for the licensing in Hungary of DCS 1800 services, a) Tj -14.16 -12 TD -0.0557 Tc 2.0696 Tw (mobile telecommunications system operating in the 1800 MHz frequency band. The tender was closed on May 7, 1999. In) Tj 0 -12 TD -0.063 Tc 1.1389 Tw (October 1999 an amended concession contract was signed, allowing Westel 900 and its current GSM 900 competitor, Pannon) Tj T* -0.0413 Tc 0.9391 Tw (GSM, to start commercial service in the 1800 MHz band for 15 years beginning November 26, 2000. At that time the Minister) Tj T* -0.0263 Tc 0.9975 Tw (also signed a concession contract with V.R.A.M. Rt., the new entrant on the Hungarian digital cellular market, which uses the) Tj ET endstream endobj 127 0 obj 7253 endobj 125 0 obj << /Type /Page /Parent 116 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 126 0 R >> endobj 129 0 obj << /Length 130 0 R >> stream BT 272.4 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0106 Tc 0 Tw (xxxv) Tj -244.56 693.6 TD /F3 10.08 Tf -0.0139 Tc 0.3698 Tw (Vodafone brand name. The shareholders of V.R.A.M. Rt. include Vodafone Airtouch Plc \(50.1 percent\), RWE Telliance AG \(19.9) Tj 0 -12 TD -0.0575 Tc 1.4581 Tw (percent\), Antenna Hung\341ria \(20 percent\), and Magyar Posta \(10 percent\). Both Westel 900 and Pannon GSM are obliged to) Tj T* -0.055 Tc 0.2556 Tw (provide national roaming services to Vodafone customers until 2002.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0576 Tc 1.2982 Tw (By 2003 the three digital carriers will have the same spectrum resources allocated to them both on the 900 and the 1800) Tj -14.16 -12 TD -0.0627 Tc 0.326 Tw (MHz band. The Minister has agreed not to issue a new tender or otherwise license a new carrier for such services on these bands) Tj 0 -12 TD -0.0158 Tc 0.2164 Tw (within the time frame of the licence agreement.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0285 Tc 0.9611 Tw (Westel 900 has to pay HUF 11 billion concession fee adjusted to the movement of the HUF/U.S.$. exchange rate. The first) Tj -14.16 -12 TD -0.0358 Tc 1.3698 Tw (installment of the concession fee, HUF 2,750 million was paid eight days after the modification of the concession agreement) Tj 0 -12 TD -0.0432 Tc 3.505 Tw (\(November 1999\). The second installment of HUF 2,750 million plus exchange difference is due eight days after the) Tj T* -0.0509 Tc 0.7015 Tw (commencement of 1800 MHz service \(expected in November 2000\). The remaining HUF 5,500 million plus exchange difference) Tj T* -0.0416 Tc 0.5258 Tw (due in connection with the concession fee is expected to be paid proportionally \(1/9th of the remaining fee will be paid on every) Tj T* -0.0375 Tc 0.4908 Tw (additional 1 MHz of spectrum received\). Westel 900 will also pay annual installments of USD 1 million after the commencement) Tj T* -0.0563 Tc 0.2569 Tw (of the 1800 MHz service \(expected from November 2000\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0508 Tc 1.3406 Tw (Required Fees.) Tj 61.2 0 TD /F3 10.08 Tf -0.0396 Tc 1.5814 Tw ( In accordance with the Concession Agreement, the frequency fee payable to the Ministry consists of two) Tj -75.6 -12.96 TD -0.0615 Tc 1.7288 Tw (parts: a frequency reservation fee and a frequency usage fee) Tj 259.92 0 TD /F3 11.04 Tf 0.2083 Tc 0 Tw (. ) Tj 7.44 0 TD /F3 10.08 Tf -0.0657 Tc 1.9463 Tw (Westel 900 must pay the Hungarian government a frequency) Tj -267.36 -12.24 TD -0.0531 Tc 1.7178 Tw (reservation fee of HUF 256 million per year for the nationwide reservation of one 8 MHz duplex frequency band \(40 GSM) Tj 0 -12 TD -0.046 Tc 0.6508 Tw (duplex radio channel\). This fee decreases in proportion to the percentage of the nationwide coverage of the service. Westel 900) Tj T* -0.0684 Tc 1.6 Tw (must also pay a frequency usage fee of HUF 200,000 per year for each GSM duplex channel and base station with a radio) Tj T* 0.0194 Tc 0 Tw (license.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 130 0 obj 3225 endobj 128 0 obj << /Type /Page /Parent 116 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 129 0 R >> endobj 132 0 obj << /Length 133 0 R >> stream BT 270.96 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.02 Tc 0 Tw (xxxvi) Tj -228.72 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf 0.0557 Tc 0 Tw (Tariffs.) Tj 30 0 TD /F3 10.08 Tf -0.0589 Tc 1.5396 Tw ( Commencing January 1, 1998, Westel 900's subscriber charges ceased to be regulated under the Pricing Act or) Tj -44.4 -12 TD -0.0393 Tc 0.2399 Tw (ministerial decree and consequently ceased to be subject to the price cap regime which earlier applied.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0414 Tc 1.9684 Tw (Roaming Agreements.) Tj 92.88 0 TD /F3 10.08 Tf -0.0465 Tc 2.3887 Tw ( Westel 900 may sign roaming agreements with other public mobile telecommunications service) Tj -107.28 -12 TD -0.0499 Tc 0.4905 Tw (providers outside of Hungary in accordance with the provisions of the Telecommunications Act and the GSM Association, which) Tj 0 -12 TD -0.0209 Tc 0.2216 Tw (deals with the digital mobile cellular telecommunications system.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0103 Tc 0 Tw (Interconnection.) Tj 66.24 0 TD /F3 10.08 Tf -0.0338 Tc 0.5705 Tw ( Westel 900 may use fixed links and equipment jointly with other providers if this does not reduce or inhibit) Tj -80.64 -12 TD -0.0312 Tc 0.4718 Tw (competition. If Westel 900 receives a request for interconnection from another public telephony service provider, it is obliged to) Tj 0 -12 TD -0.0377 Tc 0.7543 Tw (enter into an interconnection contract as provided by Section 7 of the Telecommunications Act. For as long as MAT\301V has the) Tj T* -0.0379 Tc 0.3852 Tw (exclusive right to provide domestic and international long distance telephony services, Westel 900 is required to use lines leased) Tj T* -0.0173 Tc 1.1274 Tw (from MAT\301V to connect with the fixed line network. Westel 900 is required to use MAT\301V's international gateway for mobile) Tj T* -0.0087 Tc 0.2094 Tw (international calls.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.038 Tc 1.5678 Tw (Domestic Goods and Services.) Tj 127.2 0 TD /F3 10.08 Tf -0.0534 Tc 1.7111 Tw ( Westel 900 must use specified percentages of Hungarian goods and services. Westel 900) Tj -141.6 -12 TD -0.0273 Tc 0.2279 Tw (currently satisfies these requirements.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0391 Tc 1.0889 Tw (Non-concessionary Services.) Tj 116.88 0 TD /F3 10.08 Tf -0.0327 Tc 1.3225 Tw ( Westel 900 is entitled to pursue the following non-concessionary activities without obtaining) Tj -131.28 -12 TD -0.0359 Tc 0.2365 Tw (any further license:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.039 Tc 0.2397 Tw (other telecommunications services;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0599 Tc 0.2605 Tw (trade, repair and maintenance related to media and computer technology;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0475 Tc 0.2481 Tw (computer applications services;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0561 Tc 0.2567 Tw (measurement and security technology services;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.038 Tc 0.2386 Tw (general technical development services;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0572 Tc 0.2579 Tw (telecommunications research and development;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0511 Tc 1.1518 Tw (organization, development and general construction activity related to investment programs and building maintenance;) Tj 0 -12 TD -0.1512 Tc 0 Tw (and) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.053 Tc 0.2536 Tw (telecommunications and other training courses.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0483 Tc 0.249 Tw (Westel 900 may not sell mobile subscriber equipment that is manufactured by a company in which Westel 900 has an interest.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0854 Tc 0.0043 Tw (Termination. ) Tj 58.56 0 TD /F3 10.08 Tf -0.038 Tc 0.466 Tw (The Minister notified Westel 900 that for each of 1997, 1998 and 1999 it had met its concession obligations. If) Tj -72.96 -12 TD -0.0379 Tc 0.9128 Tw (an event of default occurs under the 900 Concession Contract, the Minister may issue a cure notice to Westel 900. Westel 900) Tj 0 -12 TD -0.0485 Tc 0.8828 Tw (would then have 90 days to agree with the Minister on a plan of action for curing the default. If Westel 900 does not reach an) Tj T* -0.0383 Tc 0.8499 Tw (agreement with the Minister or if Westel 900 does not cure the default within an agreed period of between three to six months,) Tj T* -0.0436 Tc 1.303 Tw (the Minister may issue a notice terminating the 900 Concession Contract. Upon termination of the 900 Concession Contract,) Tj T* -0.0465 Tc 0.2472 Tw (Westel 900 would be dissolved under the Concessions Act.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 133 0 obj 6243 endobj 131 0 obj << /Type /Page /Parent 116 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 132 0 R >> endobj 136 0 obj << /Length 137 0 R >> stream BT 269.52 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0262 Tc 0 Tw (xxxvii) Tj -241.68 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0046 Tc 0.0045 Tw (Westel 450) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0486 Tc 0.6163 Tw (Pursuant to the concession contract, dated June 24, 1994 \(the "450 Concession Contract"\), between the Minister and Westel) Tj -14.4 -12 TD -0.0501 Tc 0.8944 Tw (450, Westel 450 has the right for 15 years from October 15, 1990 to provide public NMT 450 mobile telephony services in the) Tj 0 -12 TD -0.0616 Tc 0.775 Tw (450 to 470 MHz frequency range in Hungary. The parties may agree to extend the Westel 450 concession for a period of seven) Tj T* -0.0601 Tc 0.2607 Tw (and one-half years.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0508 Tc 1.3406 Tw (Required Fees.) Tj 61.2 0 TD /F3 10.08 Tf -0.0429 Tc 1.5978 Tw ( Westel 450 currently pays frequency reservation fees to the Telecommunications General Inspectorate of) Tj -75.6 -12 TD -0.0603 Tc 1.2101 Tw (HUF 7.4 million per year for the 3.66 MHz duplex frequency range and HUF 20,000 per year for each 20 KHz duplex radio) Tj 0 -12 TD -0.0521 Tc 0.2527 Tw (channel and base station with a radio license.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0557 Tc 1.2341 Tw (Tariffs. ) Tj 0 Tc 0.0898 Tw ( ) Tj 37.68 0 TD /F3 10.08 Tf -0.0589 Tc 1.5496 Tw (Commencing January 1, 1998, Westel 450's subscriber charges ceased to be regulated under the Pricing Act or) Tj -52.08 -12 TD -0.0393 Tc 0.2399 Tw (ministerial decree and consequently ceased to be subject to the price cap regime which earlier applied.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0103 Tc 0 Tw (Interconnection.) Tj 66.24 0 TD /F3 10.08 Tf -0.0338 Tc 0.5705 Tw ( Westel 450 may use fixed links and equipment jointly with other providers if this does not reduce or inhibit) Tj -80.64 -12 TD -0.0363 Tc 0.9993 Tw (competition. If Westel 450 receives a request for interconnection from another public purpose telephony service provider, it is) Tj 0 -12 TD -0.0439 Tc 2 Tw (obliged to enter into an interconnection contract as provided by Section 7 of the Telecommunications Act. For as long as) Tj T* -0.0315 Tc 0.3655 Tw (MAT\301V has the exclusive right to provide domestic and international long distance telephony services, Westel 450 is required to) Tj T* -0.0156 Tc 1.871 Tw (use lines leased from MAT\301V to connect with the fixed line network. Westel 450 is required to use MAT\301V's international) Tj T* -0.0283 Tc 0.2289 Tw (gateway for mobile international calls.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.038 Tc 0.8478 Tw (Domestic Goods and Services.) Tj 125.04 0 TD /F3 10.08 Tf -0.0517 Tc 1.1323 Tw ( Westel 450 must use specified percentages of Hungarian goods and services. Westel 450 is) Tj -139.44 -12 TD -0.0314 Tc 0.2321 Tw (currently satisfying these requirements.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0391 Tc 1.0889 Tw (Non-concessionary Services.) Tj 116.88 0 TD /F3 10.08 Tf -0.0327 Tc 1.3225 Tw ( Westel 450 is entitled to pursue the following non-concessionary activities without obtaining) Tj -131.28 -12 TD -0.0359 Tc 0.2365 Tw (any further license:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.039 Tc 0.2397 Tw (other telecommunications services;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0599 Tc 0.2605 Tw (trade, repair and maintenance related to media and computer technology;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0475 Tc 0.2481 Tw (computer applications services;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0561 Tc 0.2567 Tw (measurement and security technology services;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.038 Tc 0.2386 Tw (general technical development services;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0572 Tc 0.2579 Tw (telecommunications research and development;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0511 Tc 1.1518 Tw (organization, development and general construction activity related to investment programs and building maintenance;) Tj 0 -12 TD -0.1512 Tc 0 Tw (and) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.053 Tc 0.2536 Tw (telecommunications and other training courses.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0483 Tc 0.249 Tw (Westel 450 may not sell mobile subscriber equipment that is manufactured by a company in which Westel 450 has an interest.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0854 Tc 0 Tw (Termination.) Tj 53.28 0 TD /F3 10.08 Tf -0.0209 Tc 1.8775 Tw ( The Minister may terminate all or part of the 450 Concession Contract, if Westel 450 does not fulfill its) Tj -67.68 -12 TD -0.031 Tc 0.6359 Tw (obligations under the contract. The Minister is also entitled to terminate the 450 Concession Contract in the case of intentional) Tj 0 -12 TD -0.0337 Tc 0.6877 Tw (and repeated violations of the contract. Termination could result from, among other things, Westel 450's failure to meet quality) Tj T* -0.0404 Tc 1.5477 Tw (requirements or to pay fees, or its refusal to satisfy an interconnection request of a telecommunications service provider. In) Tj T* -0.0237 Tc 0.7043 Tw (addition, the Minister may terminate the contract if liquidation proceedings are instituted against Westel 450 or if Westel 450's) Tj T* -0.0113 Tc 0.4646 Tw (inability to satisfy the claims of its creditors adversely affects its ability to fulfill its concession obligations. Upon termination of) Tj T* -0.0342 Tc 0.9015 Tw (the 450 Concession Contract, Westel 450 would be dissolved under the Concessions Act. The Minister notified Westel 450 that) Tj T* -0.0623 Tc 0.2629 Tw (for each of 1997, 1998 and 1999 it had met its concession obligations.) 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Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0476 Tc 0.8925 Tw (As a result of amendment of the Telecommunications Act, since July 28, 1999 network contracts can be concluded not only) Tj -14.4 -12 TD -0.0441 Tc 0.8298 Tw (for interconnection of networks but also a public telecommunications service provider may allow use of its telecommunications) Tj 0 -12 TD -0.0439 Tc 0.2445 Tw (network by a third party with the aim of providing services.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0362 Tc 0.2368 Tw (The Telecommunications Act further requires service providers, including MAT\301V, to meet technical and operating standards) Tj -13.44 -12 TD -0.0555 Tc 0.2562 Tw (and regulations and to cooperate to permit unified network operation through interconnection.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0462 Tc 4.973 Tw (The Minister may issue decrees regarding signalling, traffic routing, synchronization, numbering and points of) Tj -14.4 -12 TD -0.0432 Tc 1.7695 Tw (interconnection. Government Decree 158/1993 \(XI.11\) on the Interconnection of Telephone Networks, the Licensing of their) Tj 0 -12 TD -0.0582 Tc 1.2988 Tw (Cooperation and Network Contracts \(the "Interconnection Decree"\) sets forth the rules and procedures for interconnection of) Tj T* -0.0604 Tc 0.5868 Tw (public networks and special purpose telecommunications networks for closed user groups. The Interconnection Decree prohibits) Tj T* -0.0459 Tc 0.2465 Tw (a public telephone network from interconnecting with a network that is not covered by either a concession or a service license.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0668 Tc 1.7356 Tw (Connection of a special purpose network to a public network or another special purpose network requires an additional) Tj -14.4 -12 TD -0.0411 Tc 0.4337 Tw (interconnection license issued by the Budapest Telecommunications Inspectorate. The license for connection to a public network) Tj 0 -12 TD -0.0559 Tc 1.6965 Tw (may be granted subject to conditions ensuring, among other things, that the special purpose network is not used to provide) Tj T* -0.0335 Tc 2.3492 Tw (services to third parties. With limited exceptions, operators of special purpose networks are permitted to interconnect for) Tj T* -0.0409 Tc 1.3515 Tw (services other than public switched voice if they have an interconnection license issued by the Budapest Telecommunications) Tj T* -0.0532 Tc 0.2539 Tw (Inspectorate or when such operators are affiliated.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0385 Tc 1.7297 Tw (In the case of network contracts related to the provision of local public telephone services, the deadline for signing the) Tj -14.4 -12 TD -0.0446 Tc 1.6853 Tw (network contract is three months, and the deadline for the interconnection is six months, from the date interconnection was) Tj 0 -12 TD -0.0447 Tc 0.6911 Tw (requested. In other cases, the deadline for signing the network contract is six months and for interconnection is one year. If the) Tj T* -0.0336 Tc 0.3182 Tw (parties do not enter into a network contract before the deadline, the competent Regional Inspectorate, at the request of the entity) Tj T* -0.0219 Tc 0.2226 Tw (seeking interconnection, will establish the terms of interconnection.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0483 Tc 2.7626 Tw (On the basis of the network contract, the user must pay the network provider a one-time connection fee, a monthly) Tj -14.4 -12 TD -0.0203 Tc 0.3628 Tw (subscription fee, a usage fee and, if applicable, fees for leased lines. In the case of MAT\301V and the Westel companies, these fees) Tj 0 -12 TD -0.0418 Tc 1.0508 Tw (are determined pursuant to tariff decrees issued by the Minister in agreement with the Minister of Finance and in accordance) Tj T* -0.0239 Tc 0.2245 Tw (with the Pricing Act. Under the Concession Contract, MAT\301V must generally bear the costs of physical interconnection.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 140 0 obj 4902 endobj 138 0 obj << /Type /Page /Parent 135 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 139 0 R >> endobj 142 0 obj << /Length 143 0 R >> stream BT 270.72 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.068 Tc 0 Tw (xxxix) Tj -242.88 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0053 Tc 0.0039 Tw (Telecommunications Service Licensing Requirements) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0369 Tc 2.6056 Tw (According to the Telecommunications Act, the provision of certain telecommunications services that do not require a) Tj -14.4 -12 TD -0.049 Tc 2.0346 Tw (concession is subject to service licenses, which are granted by the Inspectorates. Pursuant to Government Decree 48/1997) Tj 0 -12 TD -0.0394 Tc 0.256 Tw (\(III.14\) on the Licensing of Certain Telecommunications Services, a service license granted by the Budapest Telecommunications) Tj T* -0.0366 Tc 2.0941 Tw (Inspectorate, in the case of nationwide and regional services, or a Regional Inspectorate, in the case of local services, is) Tj T* -0.0394 Tc 1.4058 Tw (required for most liberalized telecommunications services. Certain additional non-public services may be provided subject to) Tj T* -0.046 Tc 0.2467 Tw (compliance with reporting requirements.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0422 Tc 0.2829 Tw (A service license may be issued following submission to the relevant Inspectorate of an application setting forth, among other) Tj -14.4 -12 TD -0.0364 Tc 1.017 Tw (things, the proposed service and the terms on which it will be offered and the applicant's legal and technical qualifications. A) Tj 0 -12 TD -0.0461 Tc 0.6504 Tw (service license may be issued for a term of ten years and may be extended, upon request, for successive additional terms of five) Tj T* -0.0352 Tc 0.6594 Tw (years each. Entities such as MAT\301V, which hold a concession for public telecommunications services, may provide the services) Tj T* -0.0405 Tc 1.1164 Tw (listed in the service license decree, other than cable broadcasting, subject to compliance with reporting requirements 30 days) Tj T* -0.0405 Tc 2.0531 Tw (prior to the commencement of service. Service licenses may not be transferred or assigned, except in the event of a legal) Tj T* -0.048 Tc 0 Tw (succession.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0046 Tc 0.0045 Tw (Licensing and Allocation of Frequencies) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0293 Tc 0.3785 Tw (The Minister sets fees for frequency use by decree in agreement with the Minister of Finance. Act LXII of 1993 on Frequency) Tj -14.4 -12 TD -0.0429 Tc 0.3102 Tw (Management \(the "Frequency Act"\) sets forth additional licensing procedures for the allocation of frequencies, and Act I of 1996) Tj 0 -12 TD -0.0458 Tc 0.3965 Tw (on Radio and Television Broadcasting \(the "Media Act"\) governs the broadcasting industry generally. The Frequency Act, which) Tj T* -0.0481 Tc 0.5727 Tw (came into force on July 1, 1993, regulates the rights and obligations of the users of frequencies, the management of frequencies) Tj T* -0.0311 Tc 0.2318 Tw (and interference protection.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0428 Tc 2.1794 Tw (Frequency assignments must conform with the National Frequency Range Distribution Chart, which lays out the entire) Tj -14.4 -12 TD -0.0465 Tc 1.1538 Tw (spectrum and the purpose and availability of frequency bands. MAT\301V's frequencies are generally valid for periods of one to) Tj 0 -12 TD -0.0428 Tc 1.6129 Tw (five years. The frequency assignments for the radio local loop system are valid through November 2003. However, MAT\301V,) Tj T* -0.0644 Tc 1.345 Tw (removed its radio local loop system from Budapest during 1999. See "Infrastructure and Technology ) Tj 3.3667 Tc -1.9661 Tw (\227 ) Tj -0.0469 Tc 1.4475 Tw (Expansion of Access) Tj T* -0.0446 Tc 0 Tw (Networks.") Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.056 Tc 1.5686 Tw (If a telecommunications service provider wishes to provide services that require a frequency assignment and appropriate) Tj -14.4 -12 TD -0.0468 Tc 2.4074 Tw (frequencies are available, the Telecommunications General Inspectorate must hold a public auction or drawing. A public) Tj 0 -12 TD -0.0288 Tc 0.7303 Tw (auction is held if the number of available frequencies is not sufficient to satisfy all requests. A drawing is held if the number of) Tj T* -0.0215 Tc 0.2221 Tw (available frequencies is sufficient to satisfy requests but the frequencies have differing qualitative characteristics.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (Rights of Way) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0366 Tc 1.0601 Tw (Under the Telecommunications Act, public telecommunications service providers are entitled to use the waterways, canals,) Tj -14.4 -12 TD -0.0516 Tc 4.079 Tw (natural lakes, beds of natural lakes and airspace of Hungary and, upon prior notification of the owner, to install) Tj 0 -12 TD -0.0495 Tc 0.3358 Tw (telecommunications equipment on private property and to enter private property where telecommunications equipment is located) Tj T* -0.0454 Tc 0.5366 Tw (for maintenance and fault elimination purposes. Further rights of use may be established on antennas and in utility tunnels. The) Tj T* -0.0417 Tc 0.2424 Tw (public telecommunications service provider must enter into a contract with the property owner setting forth the conditions for the) Tj T* -0.0571 Tc 1.6836 Tw (common use of the property. Owners of real property are also obliged to remove obstructions to public telecommunications) Tj T* -0.0537 Tc 0.2544 Tw (networks. Owners of real property may claim compensation for the nuisance suffered as a result of entry onto their property.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0487 Tc 0.4414 Tw (Upon request, the competent Inspectorates may establish easements in favor of a public telecommunications service provider) Tj -14.4 -12 TD -0.0435 Tc 1.2491 Tw (on real property for the purposes of placing telecommunications equipment, telephone lines and antennas. MAT\301V is seeking) Tj 0 -12 TD -0.0593 Tc 0.3559 Tw (easements over a substantial number of real properties on which such equipment has been installed by it or its predecessors. The) Tj T* -0.0297 Tc 1.4808 Tw (Inspectorates must certify in writing that, for technical reasons, there is no other alternative for placing such devices. If the) Tj T* -0.049 Tc 1.8247 Tw (placement of telecommunications equipment prevents or materially hinders use of real property, the owner may request the) Tj T* -0.057 Tc 0.2577 Tw (purchase or expropriation of the property after seeking an opinion from the Inspectorate.) Tj ET endstream endobj 143 0 obj 7078 endobj 141 0 obj << /Type /Page /Parent 135 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 142 0 R >> endobj 145 0 obj << /Length 146 0 R >> stream BT 278.4 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (xl) Tj -250.56 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0053 Tc 0.0038 Tw (Competition Law Restrictions) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0414 Tc 2.162 Tw (The Concession Contract prohibits MAT\301V from using any dominant position in the market for public voice telephone) Tj -14.4 -12 TD -0.0481 Tc 0.2488 Tw (services to gain an unfair or anticompetitive advantage in the provision of services or products.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0376 Tc 1.1143 Tw (Under the Competition Act, a market participant is considered to be in a dominant position if, among other things, it may) Tj -14.4 -12 TD -0.0312 Tc 0.9068 Tw (pursue economic activities substantially independent of other market participants, i.e., without the need to consider the market) Tj 0 -12 TD -0.0538 Tc 0.2545 Tw (behavior of its competitors, suppliers, customers and other business partners.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0317 Tc 1.7462 Tw (The Concession Contract specifically prohibits several practices. MAT\301V may not unjustly or unreasonably discriminate) Tj -14.4 -12 TD -0.0454 Tc 1.814 Tw (between, or extend unjust or unreasonable preferences to, similarly situated licensed operators or subscribers, including its) Tj 0 -12 TD -0.0399 Tc 0.7837 Tw (affiliates. The rates and terms pursuant to which MAT\301V uses the public telephone network for providing its own services must) Tj T* -0.0432 Tc 0.621 Tw (be the same as those which it offers to other providers. MAT\301V may supply terminal equipment to customers, but may not make) Tj T* -0.0551 Tc 0.8729 Tw (the purchase or lease of such equipment a condition to obtaining any public telephone service or include the charge or fee for) Tj T* -0.0502 Tc 0.2508 Tw (such equipment as part of the rates, fees or charges for any public telephone service.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0439 Tc 0.2445 Tw (The Competition Act generally prohibits abuse of a dominant position, including, among other things:) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0463 Tc 2.3727 Tw (establishing purchase or sale prices unfairly in business relations, including the application of general contractual) Tj 0 -12 TD -0.0571 Tc 0.2577 Tw (conditions, obtaining unjustified advantages in any manner or forcing another party to accept disadvantageous terms;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0359 Tc 0.2365 Tw (restricting production, distribution or technical development to the detriment of the consumer;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0398 Tc 0.2404 Tw (refusing without any justification to establish or maintain appropriate business relations;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0413 Tc 0.4477 Tw (establishing prices at a level much lower than those of its competitors to force competitors out of or to prevent them from) Tj 0 -12 TD -0.0484 Tc 0.249 Tw (entering a market;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0503 Tc 0.2509 Tw (hindering competitors from entering a market in any other unjustified manner; or) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0544 Tc 0.2551 Tw (creating an unduly disadvantageous market situation for competitors.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0051 Tc 0.0041 Tw (EU Association Agreement and European Directives) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0627 Tc 2.5994 Tw (In December 1991, Hungary signed an association agreement \(the "Association Agreement"\) with the members of the) Tj -14.4 -12 TD -0.0585 Tc 1.2791 Tw (European Union. The Association Agreement was enacted into law in Hungary on January 4, 1994, and in April of that year) Tj 0 -12 TD -0.0635 Tc 1.0829 Tw (Hungary applied for full membership in the European Union. On July 17, 1997, the European Commission recommended that) Tj T* -0.0573 Tc 0.2579 Tw (Hungary be named as one of six countries then invited to begin negotiations for membership.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0483 Tc 0.2858 Tw (The Association Agreement provides for the harmonization of Hungarian legislation, including telecommunications and other) Tj -14.4 -12 TD -0.0593 Tc 0.26 Tw (legislation, with that of European Union member states. Hungary and the members of the European Union have agreed to:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0479 Tc 0.2486 Tw (exchange information regarding telecommunications policy statements, and technical and other information;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.084 Tc 0.2847 Tw (organize seminars, workshops and conferences;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0604 Tc 0.261 Tw (provide training and advisory services;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0436 Tc 0.2442 Tw (transfer technologies;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0388 Tc 0.2394 Tw (carry out mutual projects;) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 146 0 obj 7009 endobj 144 0 obj << /Type /Page /Parent 135 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 145 0 R >> endobj 148 0 obj << /Length 149 0 R >> stream BT 276.96 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0619 Tc 0 Tw (xli) Tj -234.72 693.12 TD /F5 10.08 Tf -5.2781 Tc (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0598 Tc 0.2604 Tw (promulgate European standards, certificate systems and regulations; and) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0613 Tc 0.2619 Tw (advance new communication methods, services and equipment.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0587 Tc 1.9763 Tw (European institutions have enacted numerous directives providing for an open and seamless telecommunications market) Tj -14.4 -12 TD -0.0602 Tc 0.2609 Tw (within and among EU member states through liberalization and harmonization of member states' laws.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0445 Tc 3.0352 Tw (The seminal liberalization directive was adopted on June 28, 1990. It provided for the progressive liberalization of) Tj -14.4 -12 TD -0.0291 Tc 0.8697 Tw (telecommunications services other than voice telephony, mobile telecommunications, telex and satellite communications. Other) Tj 0 -12 TD -0.0239 Tc 0.8325 Tw (directives were thereafter adopted to liberalize satellite telecommunications services other than public fixed line voice services) Tj T* -0.0591 Tc 1.4197 Tw (in October 1994, services provided over cable television networks in October 1995 and mobile services in January 1996. To) Tj T* -0.0327 Tc 0.5762 Tw (complete the liberalization process, a March 13, 1996 directive \(1\) requires the full liberalization, as of July 1, 1996, of the use) Tj T* -0.0358 Tc 6.6611 Tw (of alternative infrastructures, such as telecommunications infrastructures of railways, for the provision of all) Tj T* -0.0439 Tc 0.8296 Tw (telecommunications services other than voice telephony and \(2\) provides for complete liberalization of voice telephony and the) Tj T* -0.0537 Tc 0.7626 Tw (provision of public telecommunications infrastructure as of January 1, 1998. The European institutions have also adopted or is) Tj T* -0.0379 Tc 3.2625 Tw (considering a number of directives relating to harmonization of national licensing laws, technical interfaces and tariff) Tj T* -0.0103 Tc 0 Tw (principles.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0561 Tc 2.2247 Tw (Management expects that as Hungary moves closer to EU membership the Hungarian parliament will enact additional) Tj -14.4 -12 TD -0.0412 Tc 1.5085 Tw (legislation with a view to bringing Hungary's regulatory regime into compliance with European directives. As in the case of) Tj 0 -12 TD -0.0512 Tc 3.1168 Tw (other EU member states, Hungary may benefit from certain transitional arrangements for a period after obtaining EU) Tj T* -0.0588 Tc 0 Tw (membership.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (World Trade Organization Telecommunications Agreement) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0524 Tc 3.2291 Tw (In February 1997, 69 governments, including Hungary, made multilateral commitments as part of the World Trade) Tj -14.4 -12 TD -0.0405 Tc 0.9796 Tw (Organization Telecommunications Agreement to liberalize the market for basic and certain other telecommunications services.) Tj 0 -12 TD -0.048 Tc 0.6907 Tw (The 69 signatories were required to ratify the accord by November 30, 1997. Hungary ratified the agreement, which took effect) Tj T* -0.0502 Tc 0.2508 Tw (January 1, 1998, with a reservation postponing liberalization of the telecommunications market in Hungary.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0474 Tc 0.768 Tw (Hungary's commitment under the World Trade Organization Telecommunications Agreement includes liberalization of data,) Tj -14.4 -12 TD -0.0275 Tc 2.3432 Tw (telex/telegraph, fax, leased circuits, satellite services, and public voice services by January 1, 2003 for international and) Tj 0 -12 TD -0.045 Tc 0.6114 Tw (domestic long distance calls and by January 1, 2004 for local calls. Public land mobile services may be limited to one operator) Tj T* -0.0535 Tc 0.5596 Tw (for NMT 450 MHz and two operators for GSM until January 1, 2004. In spite of this agreement, Hungary admitted a third GSM) Tj T* -0.0401 Tc 0.2407 Tw (operator, Vodafone, into the market in 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0048 Tc 0.0043 Tw (Broadcasting and Transmission) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0577 Tc 1.0717 Tw (Broadcasting and transmission are governed by Act I of 1996 on Radio and Television Broadcasting \(the "Media Act"\), as) Tj -14.4 -12 TD -0.0257 Tc 0.6179 Tw (well as the Frequency Act, the Telecommunications Act and the Concessions Act. Under the Media Act, the National Radio and) Tj 0 -12 TD -0.0508 Tc 3.5943 Tw (Television Board \(the "NRTB"\) has primary authority for issuing tenders for broadcasting contracts, registering other) Tj T* -0.0632 Tc 0.2638 Tw (broadcasters and transmitters.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0612 Tc 1.7704 Tw (National and regional television and radio broadcasting or broadcast "distribution" to local operators generally require) Tj -14.4 -12 TD -0.0607 Tc 2.1147 Tw (concessions under the Telecommunications Act and may be carried out on the basis of a program distribution contract in) Tj 0 -12 TD -0.0407 Tc 2.588 Tw (accordance with the Media Act between the NRTB and the distributor. Frequencies are assigned under the terms of the) Tj T* -0.0391 Tc 3.2398 Tw (Frequency Act. Entities registered as program distributors are permitted to transmit the broadcasts of third parties to) Tj T* -0.0712 Tc 0.2719 Tw (subscribers through a cable transmission network.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.023 Tc 1.3954 Tw (MAT\301V may not directly obtain any broadcast rights until December 31, 2002. The Media Act restricts MAT\301V's further) Tj -14.4 -12 TD -0.0523 Tc 0.3413 Tw (expansion in the program distribution sector. Under the Media Act, a party holding a controlling share in a program distributor,) Tj 0 -12 TD -0.048 Tc 2.0275 Tw (including a cable television company, may not acquire a controlling share in another program distributor. The Media Act) Tj T* -0.0382 Tc 1.7017 Tw (defines a "controlling interest" in any entity to include a more than 25 percent economic or voting interest in the entity or) Tj ET endstream endobj 149 0 obj 6994 endobj 147 0 obj << /Type /Page /Parent 135 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 148 0 R >> endobj 151 0 obj << /Length 152 0 R >> stream BT 275.52 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0608 Tc 0 Tw (xlii) Tj -247.68 693.6 TD /F3 10.08 Tf -0.0446 Tc 0.2452 Tw (contractual or other arrangements giving the holder a controlling influence over the entity. See "Legal Proceedings ) Tj 3.3667 Tc -3.1661 Tw (\227 ) Tj -0.0389 Tc 0 Tw (Other.") Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0484 Tc 1.2605 Tw (In its 1999 amendments to the Telecommunications Act, the Hungarian Parliament approved restrictions on infrastructure) Tj -14.4 -12 TD -0.0135 Tc 0.3657 Tw (relating to program distribution. As a result MAT\301V Rt. and its subsidiary MAT\301Vk\341belTV Kft., which was founded with the aim) Tj 0 -12 TD -0.0521 Tc 0.6198 Tw (of providing program distribution services, could not establish, lease or acquire disposal rights over any cable network suitable) Tj T* -0.0122 Tc 1.4929 Tw (for program distribution parallel to MAT\301V Rt.) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0326 Tc 1.6732 Tw (s public telecommunications network, except in settlements with populations) Tj T* -0.0629 Tc 2.0635 Tw (below 30,000. One of the leading insurance companies in Hungary, Hung\341ria Biztos\355t\363 Rt. has subsequently purchased 25) Tj T* -0.0349 Tc 0.2355 Tw (percent of shares and 75 percent of voting rights in MAT\301Vk\341belTV Kft., which may continue to engage in program distribution.) Tj ET endstream endobj 152 0 obj 1431 endobj 150 0 obj << /Type /Page /Parent 135 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 151 0 R >> endobj 155 0 obj << /Length 156 0 R >> stream BT 274.08 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0602 Tc 0 Tw (xliii) Tj -246.24 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0 Tw (Pricing) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F0 10.08 Tf 0.0175 Tc -0.0285 Tw (Regulatory Framework) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0178 Tc 0.5089 Tw (In accordance with the Pricing Act, the Minister, acting in agreement with the Minister of Finance, is responsible for setting) Tj -14.4 -12 TD -0.0423 Tc 0.7229 Tw (maximum tariffs for concessionary telephony services, interconnection tariffs and tariffs for leased lines used for concessionary) Tj 0 -12 TD -0.0466 Tc 0.2473 Tw (telephony services. Tariff regulation in Hungary is based on the price-cap method.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0204 Tc 0.2293 Tw (Fixed Line Tariffs. ) Tj 79.92 0 TD /F3 10.08 Tf -0.0313 Tc 0.5708 Tw ( In 1998, MAT\301V Rt.'s fixed line tariffs were regulated by Decree 31/1997 \(XII.20\) on charges for public) Tj -94.32 -12 TD -0.0471 Tc 0.9144 Tw (telephone services \(the "1998 Fixed Line Tariff Decree"\). The 1998 Fixed Line Tariff Decree was amended by Decree 31/1998) Tj 0 -12 TD -0.037 Tc 1.2965 Tw (\(XII.23\) KHVM \(the "1999 Fixed Line Tariff Decree"\), which was subsequently amended by Decree 1/2000 \(I.18\) KHVM \(the) Tj T* -1.1933 Tc 0 Tw (\223) Tj -0.0238 Tc 2.1445 Tw (2000 Fixed Line Tariff Decree) Tj -0.0431 Tc 2.2561 Tw (\224\). The 2000 Fixed Line Tariff Decree establishes new public fixed line telephone service) Tj T* -0.0648 Tc 0.2654 Tw (charges to be applied from February 1, 2000.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.023 Tc 1.7468 Tw (Entrance Fees.) Tj 61.44 0 TD /F3 10.08 Tf -0.0346 Tc 2.1102 Tw ( One-time entrance fees are regulated by Decree 11/1995 \(VII.12\) KHVM on the One-Time Access Fee) Tj -75.84 -12 TD -0.0269 Tc 2.0675 Tw (Payable for Establishment of Public Telephone Service Access Points \(the "Connection Fee Decree"\). The Connection Fee) Tj 0 -12 TD -0.0492 Tc 0.2498 Tw (Decree was amended by Decree 19/1997 \(X.11\) KHVM \(the "Entrance Fee Decree"\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.012 Tc 0.2218 Tw (Interconnection Fees. ) Tj 90 0 TD /F3 10.08 Tf -0.0621 Tc 0.6914 Tw ( Interconnection fees are regulated by Decree 1/1998 \(I.12\) on sharing revenues related to concession) Tj -104.4 -12 TD -0.0424 Tc 1.3138 Tw (telecommunications services, tariffs of leased line services used for providing concessionary telecommunications services and) Tj 0 -12 TD -0.0538 Tc 0.2686 Tw (tariff accounting \(the "1998 Interconnection Decree"\), as amended by Decree 6/1999 \(II.19\) KHVM issued in February 1999 \(the) Tj T* -0.0575 Tc 3.721 Tw ("1999 Interconnection Decree"\). This decree was subsequently amended by Decree 8/2000 \(III.29\) KHVM \(the ) Tj -1.1933 Tc 0 Tw (\223) Tj -0.1512 Tc (2000) Tj T* -0.0472 Tc 0.2478 Tw (Interconnection Decree) Tj -0.4098 Tc 0 Tw (\224\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0461 Tc 0.035 Tw (Fixed Line Tariffs) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0381 Tc 0.2387 Tw (Tariffs for fixed line telephony services consist of a one-time entrance fee, monthly subscription fees and usage charges.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0174 Tc 0.0723 Tw (Entrance Fees) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0397 Tc 1.027 Tw (Entrance fees are based upon costs of installation and the general development of MAT\301V's network. Prior to October 15,) Tj -14.4 -12 TD -0.0385 Tc 1.9191 Tw (1997, regulations provided for limited refund rights if a subscriber terminated its contract. MAT\301V recorded a reserve for) Tj 0 -12 TD -0.0393 Tc 0.2399 Tw (refunds based on the historical level of requests, although the level of refunds requested were not significant.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0452 Tc 1.1029 Tw (As of October 15, 1997, the Entrance Fee Decree eliminated the refund rights of a subscriber for a new connection to the) Tj -14.4 -12 TD -0.034 Tc 0.4494 Tw (fixed line network and allowed MAT\301V to recognize the full entrance fee as revenue upon connection. The Entrance Fee Decree) Tj 0 -12 TD -0.0401 Tc 0.3208 Tw (gives service providers the right to collect an additional fee for providing connections in rural areas, if the entrance fee does not) Tj T* -0.0495 Tc 2.4607 Tw (cover the direct costs of the service provider. Entrance fees as well as subscription charges, but not usage charges, are) Tj T* -0.042 Tc 1.1276 Tw (differentiated by customer type: business and residential. MAT\301V may provide discounts from the published charges, but may) Tj T* -0.0621 Tc 0.2628 Tw (not exceed any published charge.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.0125 Tc 0.1023 Tw (Subscription Fees and Usage Charges) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F3 10.08 Tf -0.0654 Tc 1.1503 Tw (Fixed line subscription fees and usage charges are regulated under an aggregate price cap. In 1999, the aggregate price cap) Tj 0 -12 TD -0.057 Tc 2.0134 Tw (was set by reference to the September to September consumer price index and was then adjusted to permit rebalancing to) Tj T* -0.0555 Tc 2.2326 Tw (gradually reduce the subsidy to fixed line subscription fees and local usage charges from long distance and international) Tj T* -0.064 Tc 0.2646 Tw (charges. In 1999, the aggregate price cap was 10.5 percent.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0571 Tc 2.0893 Tw (In 2000, the aggregate price cap is set by reference to the forward-looking consumer price index as forecasted by the) Tj -14.4 -12 TD -0.02 Tc 1.5887 Tw (Government in the Budget Act for 2000. After taking into account a two percent productivity factor to which MAT\301V Rt. is) Tj 0 -12 TD -0.0217 Tc 0.3595 Tw (subject, MAT\301V Rt.'s aggregate price cap for tariff increases in 2000 under the principles set forth in the 2000 Fixed Line Tariff) Tj T* -0.0267 Tc 0.3474 Tw (Decree is four percent. At the same time the 2000 Fixed Line Tariff Decree limits the residential consumer telephony price index) Tj T* -0.0367 Tc 1.0078 Tw (- measured by the Central Statistical Office - to be six percent, equal to the forecasted forward-looking consumer price index.) Tj T* -0.049 Tc 0.3936 Tw (Should the real October to October consumer price index exceed the Government forecast \(six percent\) by at least 2 percent, the) Tj T* -0.0597 Tc 2.647 Tw (aggregate price cap for 2001 can be increased by two-thirds of the difference as compensation. Should the real August) Tj ET endstream endobj 156 0 obj 7204 endobj 153 0 obj << /Type /Page /Parent 154 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 155 0 R >> endobj 158 0 obj << /Length 159 0 R >> stream BT 274.56 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0041 Tc 0 Tw (xliv) Tj -246.72 693.6 TD /F3 10.08 Tf -0.0365 Tc 0.7551 Tw (residential consumer telephony price index exceed the permitted level \(six percent\), the tariffs have to be decreased in order to) Tj 0 -12 TD -0.0035 Tc 0.2041 Tw (fulfill the price index requirement.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0568 Tc 0.5858 Tw (The following table sets forth changes in public fixed line subscription fees and usage charges for 2000 as established under) Tj -14.4 -12 TD -0.0146 Tc 0.2153 Tw (the 2000 Fixed Line Tariff Decree.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -12 TD ( ) Tj 388.8 0 TD ( ) Tj 17.04 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0068 Tc 0 Tw (Percentage) Tj -405.84 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0098 Tc 0 Tw (Basket) Tj ET 26.4 669.6 36 0.72 re f BT 63.84 672.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 352.8 0 TD ( ) Tj 23.52 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0022 Tc 0 Tw (Change) Tj -412.32 -13.92 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 388.8 0 TD ( ) Tj 10.8 0 TD ( ) Tj ET 425.52 668.88 57.6 0.72 re f BT 27.84 647.28 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.048 Tc 0.2486 Tw (Subscription fees) Tj 0 -12 TD 0.2006 Tc 0 Tw (.......................................................................................................................) Tj 388.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (49.88%) Tj -410.64 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0783 Tc 0.279 Tw (Local and Zone 1 and Zone 2 \(Budapest metropolitan area\) charges) Tj 0 -12 TD 0.2006 Tc 0 Tw (.........................................) Tj 388.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1804 Tc 0 Tw (\(12.27%\)) Tj -404.4 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0707 Tc 0.2714 Tw (Zone 3 and international charges) Tj 0 -12 TD 0.2006 Tc 0 Tw (..............................................................................................) Tj 388.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1804 Tc 0 Tw (\(10.55%\)) Tj -404.4 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0314 Tc 3.0454 Tw (Although MAT\301V Rt. fixes local and national usage charges separately for each of three time periods, it does not) Tj -14.4 -12 TD -0.0465 Tc 0.5471 Tw (differentiate international charges by time of day. Domestic and international long distance charges are uniform throughout the) Tj 0 -12 TD -0.0445 Tc 0.3518 Tw (country. The 1999 Fixed Line Tariff Decree also introduced time-based billing. Under this system, the usage charge is composed) Tj T* -0.0565 Tc 0.2668 Tw (of a call set-up and a second-based usage charge. In 1999, the call set-up charge was HUF 6.60 per call \(in 2000, it is HUF 6.00) Tj T* -0.018 Tc 0.2187 Tw (per call\), exclusive of VAT, and is independent of the tariff zone or time period of the call.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.0209 Tc 0.1107 Tw (Fixed Interconnection Fees) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0537 Tc 0.5931 Tw (Fees for national and international calls are shared by the service providers involved through interconnection fees based on) Tj -14.4 -12 TD -0.0285 Tc 0.4291 Tw (usage. MAT\301V Rt., as the exclusive provider of national and international long distance services, pays an interconnection fee to) Tj 0 -12 TD -0.0426 Tc 0.2432 Tw (other service providers for origination and/or termination of a call.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0448 Tc 0.9654 Tw (Under the 1999 Interconnection Decree, local service providers were entitled to retain an average of HUF 7.50/minute for) Tj -14.4 -12 TD -0.0343 Tc 1.155 Tw (the termination and HUF 7.50/minute plus HUF 8.78/minute as auxiliary fee for the origination of all domestic long distance) Tj 0 -12 TD -0.0247 Tc 0.5254 Tw (and international calls. In 2000, a local service provider is entitled to the following interconnection fees if the call is originated) Tj T* -0.0295 Tc 0.2301 Tw (in its area:) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 249.12 -12 TD ( ) Tj 6.72 0 TD ( ) Tj 25.44 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0106 Tc 0 Tw (peak) Tj 47.04 -0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0234 Tc 0 Tw (discounted) Tj 58.56 -0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.16 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0369 Tc 0 Tw (night) Tj -167.76 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6.72 0 TD ( ) Tj 74.88 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0653 Tc 0 Tw (\(HUF/minute\)) Tj ET 288.72 355.92 57.6 0.72 re f 357.12 355.92 57.6 0.72 re f 425.52 355.92 57.6 0.72 re f BT 27.84 334.08 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1386 Tc 0.0621 Tw (National long distance ..........................................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (15.95) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (6.90) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (5.30) Tj -425.04 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1646 Tc 0.036 Tw (International .........................................................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (36.00) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (36.00) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (36.00) Tj ET endstream endobj 159 0 obj 6230 endobj 157 0 obj << /Type /Page /Parent 154 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 158 0 R >> endobj 161 0 obj << /Length 162 0 R >> stream BT 276 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0138 Tc 0 Tw (xlv) Tj -248.16 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0229 Tc 0.2235 Tw (In 2000, a local service provider is entitled to the following interconnection fees if the call is terminated in its area:) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 249.12 -12 TD ( ) Tj 6.72 0 TD ( ) Tj 25.44 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0106 Tc 0 Tw (peak) Tj 47.04 -0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0234 Tc 0 Tw (discounted) Tj 58.56 -0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.16 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0369 Tc 0 Tw (night) Tj -167.76 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 6.72 0 TD ( ) Tj 74.88 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0653 Tc 0 Tw (\(HUF/minute\)) Tj ET 288.72 717.36 57.6 0.72 re f 357.12 717.36 57.6 0.72 re f 425.52 717.36 57.6 0.72 re f BT 27.84 695.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1386 Tc 0.0621 Tw (National long distance ..........................................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (8.50) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (5.50) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (5.50) Tj -425.04 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1646 Tc 0.036 Tw (International .........................................................................) Tj 255.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (18.00) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (18.00) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (18.00) Tj -420 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0423 Tc 1.0766 Tw (In the case of calls within the Zone 2 Budapest metropolitan area, a different interconnection regime applies both in 1999) Tj -14.4 -12 TD -0.0229 Tc 0.529 Tw (and 2000. MAT\301V Rt., as the exclusive provider of long distance services, is entitled to receive 20 percent of the average of the) Tj 0 -12 TD -0.0136 Tc 0.3971 Tw (Zone 1 fees. The terminating local operator, including MAT\301V Rt. where it is the local service provider, is entitled to receive 50) Tj T* -0.044 Tc 0.2446 Tw (percent of the difference between the average of the Zone 2 fees and 20 percent of the average of the Zone 1 fees.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0324 Tc 0.3846 Tw (Under the 2000 Interconnection Decree, MAT\301V Rt. must pay HUF 8.16/call to the local service provider for any calls made) Tj -13.44 -12 TD 0.1105 Tc 0.0901 Tw (to MAT\301V Rt.) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0397 Tc 0.2403 Tw (s domestic or international directory assistance.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.0427 Tc 0.1324 Tw (Leased Line Fees) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0359 Tc 0.2366 Tw (Tariffs for leased lines required for concessionary activities are subject to the Pricing Act under the price cap regime and are) Tj -14.4 -12 TD -0.0257 Tc 1.4397 Tw (regulated by ministerial decrees. All other leased line tariffs are unregulated. The regulation is uniform for MAT\301V and the) Tj 0 -12 TD -0.0451 Tc 0.6658 Tw (LTOs. The public telephony service provider can charge a one-time connection fee and a monthly rental fee. These fees may be) Tj T* -0.0469 Tc 1.4476 Tw (raised each year by a maximum amount currently calculated by multiplying the existing fees by the increase in the forward-) Tj T* -0.0577 Tc 0.2584 Tw (looking consumer price index \(in 2000 by six percent\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0121 Tc 0.0011 Tw (Mobile Tariffs) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0306 Tc 0.1204 Tw (Local Mobile Interconnection Fee in 1999 and 2000) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0332 Tc 0.6811 Tw (In 1999, in the case of a mobile call originating or terminating in a fixed network, the local service provider received a flat) Tj -14.4 -12 TD -0.0317 Tc 2.6464 Tw (interconnect fee of HUF 7.50/minute. In 2000, the local operator receives an interconnect fee of HUF 10.31/minute for) Tj 0 -12 TD -0.0304 Tc 0.231 Tw (originating a mobile call from the fixed network and HUF 4.80/minute for terminating a mobile call in the fixed network.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.0209 Tc 0.1106 Tw (Long Distance Mobile Interconnection Fee in 1999 and 2000) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0215 Tc 0.5186 Tw (As the exclusive provider of national long distance services, MAT\301V Rt. received a long distance mobile interconnection fee) Tj -14.4 -12 TD -0.0392 Tc 0.7198 Tw (of HUF 3.89/minute in 1999 for forwarding any kind of domestic call initiated or terminated in the network of a mobile service) Tj 0 -12 TD -0.0229 Tc 2.2936 Tw (provider. In 2000, MAT\301V Rt. receives a HUF 2.00/minute interconnection fee for transiting national long distance calls) Tj T* -0.0321 Tc 0.4861 Tw (originated or terminated by a mobile service provider. MAT\301V Rt. receives the same amount for transiting calls both originated) Tj T* -0.048 Tc 0.2486 Tw (and terminated by a mobile service provider.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.0031 Tc 0.0929 Tw (International Mobile Interconnection Fee in 1999 and 2000) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0334 Tc 2.6684 Tw (Under the 1999 Interconnection Decree, for outgoing international calls originated by mobile customers, MAT\301V Rt.) Tj -14.4 -12 TD -0.013 Tc 0.6052 Tw (received its international tariffs less HUF 16.63/minute. MAT\301V Rt. paid a fixed fee of HUF 16.63/minute to a mobile operator) Tj 0 -12 TD -0.0181 Tc 1.5508 Tw (for terminating international calls in the mobile network. In 2000, MAT\301V Rt. is entitled to receive an amount equal to the) Tj T* -0.0302 Tc 2.5508 Tw (regular fixed line international tariff minus HUF 16.63/minute for international calls originating from a mobile network.) Tj T* -0.0199 Tc 1.3605 Tw (MAT\301V Rt. must pay a fixed fee of HUF 18.00/minute to a mobile operator for terminating international calls in the mobile) Tj T* -0.0361 Tc 0 Tw (network.) Tj 170.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 2 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0045 Tc 0.0046 Tw (DESCRIPTION OF PROPERTY) Tj -170.16 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0394 Tc 0.24 Tw (As of December 31, 1999, MAT\301V's property, plant and equipment had a total net book value of HUF 512,700 million.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0502 Tc 0.8223 Tw (MAT\301V has one of the largest real estate portfolios in Hungary with an aggregate net book value at December 31, 1999 of) Tj -14.4 -12 TD -0.0364 Tc 1.8484 Tw (HUF 68,546 million. The Company uses substantially all of these properties for telecommunications installations, computer) Tj 0 -12 TD -0.0197 Tc 0.2204 Tw (installations, research centers, service outlets and offices. MAT\301V also rents several properties.) Tj ET endstream endobj 162 0 obj 8055 endobj 160 0 obj << /Type /Page /Parent 154 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 161 0 R >> endobj 164 0 obj << /Length 165 0 R >> stream BT 274.56 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0041 Tc 0 Tw (xlvi) Tj -246.72 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0389 Tc 1.8145 Tw (Due to the consolidation of various operations, the conversion to digital switches and ongoing staff reductions, MAT\301V) Tj -14.4 -12 TD -0.0437 Tc 0.8043 Tw (anticipates that a substantial portion of its owned and leased properties will not be necessary to its core business in the future.) Tj 0 -12 TD -0.0375 Tc 1.1729 Tw (Consequently, the Company reduced its net real estate occupancy costs by terminating all of its real estate lease contracts in) Tj T* -0.0573 Tc 0.258 Tw (1999. The Company intends to sell or rent its surplus owned properties.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0356 Tc 0.2362 Tw (In the fourth quarter of 1999, the operations of MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0303 Tc 0.2309 Tw (s total real estate portfolio was outsourced to Trammell Crow-Wallis.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F3 10.08 Tf -0.0563 Tc 1.5981 Tw (The aggregate net book value of MAT\301V's technical equipment and machinery at December 31, 1999 was HUF 371,264) Tj -14.4 -12 TD 0.0404 Tc 0 Tw (million.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 165 0 obj 1380 endobj 163 0 obj << /Type /Page /Parent 154 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 164 0 R >> endobj 167 0 obj << /Length 168 0 R >> stream BT 273.12 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0148 Tc 0 Tw (xlvii) Tj -59.28 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 3 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0049 Tc 0.0043 Tw (LEGAL PROCEEDINGS) Tj -186 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (Public Procurement) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.034 Tc 0.5413 Tw (In 1998, MAT\301V solicited bids to procure public telephone booths. In so doing, it limited potential bidders to manufacturers) Tj -14.4 -12 TD -0.02 Tc 0.8686 Tw (selling specific products. A losing bidder brought suit against MAT\301V, alleging that it was injured as a result of the limitation) Tj 0 -12 TD -0.0286 Tc 1.3992 Tw (MAT\301V placed on the group of potential bidders. The Public Procurement Arbitration Committee invalidated the tender and) Tj T* -0.0093 Tc 3.2614 Tw (ordered MAT\301V to issue a new tender. MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0426 Tc 3.3632 Tw (s appeal of the decision to the Metropolitan Court was unsuccessful.) Tj T* -0.0236 Tc 0.2242 Tw (Consequently, MAT\301V issued a new tender.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.006 Tc 0 Tw (Other) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0303 Tc 0.3149 Tw (MAT\301V holds a 25 percent interest in Magyar RTL. A tenderor, IRISZ TV, not awarded a broadcasting contract by the NRTB) Tj -14.4 -12 TD -0.0234 Tc 1.2978 Tw (brought an action against the NRTB, Magyar RTL and MTM SBS Telev\355zi\363 Rt. \("MTM"\) in the Municipal Court of Budapest) Tj 0 -12 TD -0.0287 Tc 0.6733 Tw (alleging that the selection by the NRTB of the winning tenderor did not comply with the applicable tender rules. The Municipal) Tj T* -0.0365 Tc 0.7705 Tw (Court rejected the plaintiff's claim. On appeal, the Supreme Court reversed the Municipal Court's decision on the grounds that) Tj T* -0.0313 Tc 1.792 Tw (the NRTB, acting as an administrative authority, had failed to comply with the applicable rules. According to the Supreme) Tj T* -0.0254 Tc 1.6534 Tw (Court's decision, the NRTB was obliged to terminate the contract made with Magyar RTL. The NRTB did not terminate the) Tj T* -0.045 Tc 0.5006 Tw (contract and suspended its administrative procedure relating to the termination. Following this suspension, IRISZ brought a suit) Tj T* -0.029 Tc 0.2297 Tw (against the NRTB alleging that the suspension was illegal.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0156 Tc 0.8791 Tw (The NRTB filed a claim in the Constitutional Court alleging that the provision of the Media Act requiring it to terminate a) Tj -14.4 -12 TD -0.0276 Tc 1.5129 Tw (civil law contract while acting as an administrative authority was unconstitutional. In addition, the NRTB, Magyar RTL and) Tj 0 -12 TD -0.0485 Tc 0.2491 Tw (MTM requested an extraordinary review of the Supreme Court's decision.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0482 Tc 1.3821 Tw (In March 2000, IRISZ TV repealed its extraordinary review and withdrew its complaints, which has been accepted by the) Tj -14.4 -12 TD -0.0477 Tc 0.4164 Tw (defendants and the Supreme Court terminated the suit. In the same verdict the Supreme Court overruled the verdicts of the court) Tj 0 -12 TD -0.0391 Tc 0.2397 Tw (of first instance and court of appeal. The case is now settled and poses no further threat to the licence of Magyar RTL.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0398 Tc 1.2711 Tw (MAT\301Vk\341belTV Kft. acquired a number of cable television networks between June 1999 and February 2000, of which the) Tj -14.4 -12 TD -0.0405 Tc 2.9211 Tw (acquisitions of cable television networks purchased from Local Governments of Tata, Pom\341z-Tinnye-Piliscsaba, Solym\341r,) Tj 0 -12 TD -0.024 Tc 0.5917 Tw (Esztergom and Dunakeszi are subject to the authorization of the Office of Economic Competition Council. MAT\301V has initiated) Tj T* -0.0652 Tc 0.2658 Tw (procedures to obtain such authorization.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj ET endstream endobj 168 0 obj 4477 endobj 166 0 obj << /Type /Page /Parent 154 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 167 0 R >> endobj 170 0 obj << /Length 171 0 R >> stream BT 271.68 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0219 Tc 0 Tw (xlviii) Tj -69.36 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 4 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0045 Tc 0.0046 Tw (CONTROL OF REGISTRANT) Tj -174.48 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0445 Tc 2.9011 Tw (Prior to 1990, the Hungarian national postal, telephone and telegraph authority, Magyar Posta, provided all public) Tj -14.4 -12 TD -0.0416 Tc 0.6022 Tw (telephony services in Hungary. As of January 1, 1990, the Hungarian government split Magyar Posta into three distinct entities) Tj 0 -12 TD -0.0466 Tc 0.9823 Tw (along the lines of its three main areas of operation: postal services, telecommunications and broadcasting. Magyar T\341vk\366zl\351si) Tj T* -0.0364 Tc 3.537 Tw (V\341llalat, MAT\301V's predecessor, became responsible for telecommunications operations. This entity was transformed on) Tj T* -0.0464 Tc 0.247 Tw (December 31, 1991 into a stock corporation, wholly owned by the \301PV.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0622 Tc 1.1628 Tw (The issued share capital of the Company is HUF 103,728,170,000, consisting of 1,037,281,600 Series "A" ordinary shares) Tj -14.4 -12 TD -0.064 Tc 0.4501 Tw (and one Series "B" voting preference share. All Series "A" ordinary shares have a nominal value of HUF 100 and the Series "B") Tj 0 -12 TD -0.053 Tc 0.3679 Tw (Share has a nominal value of HUF 10,000. The holder of the Series "B" Share enjoys certain preferential voting and other rights) Tj T* -0.0505 Tc 0.2512 Tw (described below.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0483 Tc 1.4756 Tw (MagyarCom purchased a 30.1 percent interest in MAT\301V from the \301PV on December 22, 1993. On December 22, 1995,) Tj -14.4 -12 TD -0.0347 Tc 0.7436 Tw (MagyarCom acquired from the \301PV an additional 37.2 percent interest for approximately U.S.$852 million, raising its stake to) Tj 0 -12 TD -0.0257 Tc 2.9564 Tw (67.3 percent. In connection with the Company's initial public offering, both MagyarCom and the \301PV collectively sold) Tj T* -0.0479 Tc 1.2843 Tw (272,861,367 shares. In June 1999, the \301PV sold its remaining 5.75% stake in MAT\301V during a secondary offering. The total) Tj T* -0.0735 Tc 1.3009 Tw (number of shares sold was 60,096,515, out of which MagyarCom sold 581,319 shares in connection with a greenshoe option.) Tj T* -0.045 Tc 0.2456 Tw (Information concerning MAT\301V's ownership structure as of December 31, 1999 is set out in the following table:) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 288.72 -12 TD ( ) Tj 2.88 0.72 TD ( ) Tj ET q 399.36 516 0.24 10.8 re h W n BT 399.36 518.16 TD ( ) Tj ET Q q 410.16 516 0.24 10.8 re h W n BT 410.16 518.16 TD ( ) Tj ET Q BT 421.44 517.68 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0013 Tc 0.0184 Tw (Percentage of) Tj -393.6 -14.64 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0345 Tc 0 Tw (Shareholder) Tj ET 27.84 501.12 46.56 0.96 re f BT 326.4 503.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0634 Tc -0.0437 Tw (Number of shares) Tj 78.24 0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.48 -0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0298 Tc -0.0102 Tw (share capital) Tj -395.28 -13.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 291.6 0 TD ( ) Tj 79.92 0 TD ( ) Tj 2.88 0 TD ( ) Tj 79.92 0 TD ( ) Tj ET 317.52 499.44 10.8 0.72 re f 328.32 499.44 0.72 0.72 re f 329.04 499.44 71.28 0.72 re f 400.32 499.44 0.72 0.72 re f 401.04 499.44 1.68 0.72 re f 411.12 499.44 72 0.72 re f BT 27.84 475.2 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.175 Tc 0.0257 Tw (MagyarCom .........................................................................................) Tj 291.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0872 Tc 0 Tw (617,478,081) Tj 53.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (59.53%) Tj -410.64 -14.64 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0121 Tc 0.2127 Tw (Publicly traded) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................................................................................) Tj 291.6 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0872 Tc 0 Tw (419,803,519) Tj 53.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (40.47%) Tj -121.92 -24.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 13.68 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.07 Tc 0 Tw (1,037,281,600) Tj 69.12 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2033 Tc 0 Tw (100.00%) Tj ET 328.32 445.44 72 0.72 re f 411.12 445.44 72 0.72 re f BT 27.84 421.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1174 Tc 0.0832 Tw (Holder of Series "B" Shares\(1\) .............................................................) Tj 291.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 74.88 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1) Tj 15.84 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 72 0 TD ( ) Tj -165.6 -15.36 TD ( ) Tj 10.8 0 TD ( ) Tj 13.68 -0.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.07 Tc 0 Tw (1,037,281,601) Tj 69.12 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 72 0 TD ( ) Tj ET 328.32 415.44 72 0.72 re f BT 27.84 391.2 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0035 Tc -0 Tw (Par value of Series "B" Share is HUF 10,000.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.043 Tc 1.5717 Tw (See note 23 to the consolidated financial statements for information about certain related-party transactions between the) Tj -14.4 -12 TD -0.0658 Tc 0.2665 Tw (Company and its principal shareholders.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0219 Tc 0.0679 Tw (MagyarCom. ) Tj 61.44 0 TD /F3 10.08 Tf -0.0534 Tc 5.9033 Tw ( MagyarCom is owned by SBC and Deutsche Telekom. Deutsche Telekom is Europe's largest) Tj -75.84 -12 TD -0.0508 Tc 4.4686 Tw (telecommunications services provider in terms of revenues, and operates one of the most technologically advanced) Tj 0 -12 TD -0.0424 Tc 0.243 Tw (telecommunications networks in the world.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.056 Tc 0.4395 Tw (Except for one director nominated and elected by the holder of the Series "B" Share, MagyarCom has the power to cause the) Tj -14.4 -12 TD -0.0309 Tc 0.2316 Tw (election of the entire Board of Directors at the general meeting of shareholders. MagyarCom therefore controls MAT\301V.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0475 Tc 1.7361 Tw (SBC and Deutsche Telekom manage and operate MagyarCom jointly. In the event of protracted disagreement, Deutsche) Tj -14.4 -12 TD -0.0417 Tc 0.6956 Tw (Telekom would have the deciding vote, except with regard to certain fundamental matters, including the sale by MagyarCom of) Tj 0 -12 TD -0.053 Tc 0.9105 Tw (any shares. There have not been any disagreements that have caused Deutsche Telekom to cast its deciding vote. Decisions by) Tj T* -0.0454 Tc 1.5092 Tw (MagyarCom relating to dividends to be paid by MAT\301V require the approval of both SBC and Deutsche Telekom. SBC and) Tj T* -0.0478 Tc 0.4165 Tw (Deutsche Telekom have granted each other a right of first refusal over their holdings in MagyarCom and the right to participate) Tj T* -0.0561 Tc 0.2567 Tw (on equal terms in any sale of their MagyarCom shares to a third party.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0573 Tc 0.5646 Tw (Each of SBC and Deutsche Telekom currently owns 50 percent of MagyarCom stock. Deutsche Telekom has granted SBC an) Tj -14.4 -12 TD -0.0498 Tc 0.2505 Tw (option to put to Deutsche Telekom up to 100 percent of its holdings in MagyarCom at:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0441 Tc 0.6447 Tw (a price per share equal to the public market price of the corresponding MAT\301V shares at each time the put is exercised;) Tj ET endstream endobj 171 0 obj 8771 endobj 169 0 obj << /Type /Page /Parent 154 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 170 0 R >> endobj 174 0 obj << /Length 175 0 R >> stream BT 274.32 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (xlix) Tj -218.64 693.6 TD /F3 10.08 Tf -0.0714 Tc (plus) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0147 Tc 0.2154 Tw (in connection with SBC's initial exercise of its put, a one-time payment of U.S.$60 million.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0.96 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0491 Tc 0.2497 Tw (The minimum number of MagyarCom shares that SBC may put to Deutsche Telekom in any exercise is the least of:) Tj -0.96 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.099 Tc 0.2997 Tw (750,000 shares;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0511 Tc 0.2517 Tw (a number of shares sufficient for the aggregate put price to be not less than U.S.$150 million; and) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0466 Tc 1.7437 Tw (the entire remaining amount of SBC's MagyarCom holdings subject to the put, provided that not less than 1,000,000) Tj 0 -12 TD -0.0477 Tc 0.2483 Tw (MagyarCom shares may be put to Deutsche Telekom upon initial exercise.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0.96 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0385 Tc 1.2749 Tw (If the initial exercise of the put is with respect to less than 1,929,782 MagyarCom shares, Deutsche Telekom may require) Tj -14.4 -12 TD -0.0524 Tc 1.6016 Tw (SBC to sell to Deutsche Telekom an additional number of MagyarCom shares up to that amount at the put price. Upon the) Tj 0 -12 TD -0.0481 Tc 0.4508 Tw (acquisition by Deutsche Telekom of MagyarCom shares pursuant to the put or the right of first refusal, Deutsche Telekom would) Tj T* -0.0381 Tc 2.5188 Tw (have the right to appoint the majority of the directors to MagyarCom's board, and SBC's representation on the MAT\301V) Tj T* -0.0392 Tc 0.2399 Tw (Executive Committee could be reduced to correspond with the reduction in its ownership interest.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0479 Tc 2.1019 Tw (The Company believes that it benefits greatly from the management and technical resources brought to it by SBC and) Tj -14.4 -12 TD -0.0363 Tc 1.9469 Tw (Deutsche Telekom. There is a service agreement in force between MagyarCom Services Kft., a Hungarian company jointly) Tj 0 -12 TD -0.0751 Tc 1.6257 Tw (owned by Deutsche Telekom and SBC, and the Company pursuant to which MagyarCom Services provides management and) Tj T* -0.0501 Tc 1.5441 Tw (consultancy services to the Company at fees approximating cost. The total fees charged for such services amounted to HUF) Tj T* -0.0439 Tc 0.2446 Tw (2,903 million in 1997, HUF 3,135 million in 1998 and HUF 2,152 million in 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0538 Tc 0.516 Tw (The Hungarian State.) Tj 88.08 0 TD /F3 10.08 Tf -0.0286 Tc 0.7843 Tw ( The Hungarian state has significant influence over MAT\301V's activities as the holder of the Series "B") Tj -102.48 -12 TD -0.0455 Tc 1.4911 Tw (Share through the Ministry, as the regulator of the Hungarian telecommunications sector and as MAT\301V's largest customer.) Tj 0 -12 TD -0.041 Tc 0.7576 Tw (Ownership of the Series "B" Share gives the Hungarian state, through the Minister, certain special rights in the election of one) Tj T* -0.0519 Tc 0.7097 Tw (member of each of the Board of Directors and the Supervisory Board and the right to require the Ministry's consent for certain) Tj T* -0.0516 Tc 2.2622 Tw (other decisions taken at the general shareholders' meeting. The Hungarian state, acting through the Ministry and various) Tj T* -0.0326 Tc 2.0794 Tw (regulatory bodies under its supervision, also exercises regulatory control over MAT\301V's telecommunications activities. See) Tj T* -0.0359 Tc 0.2366 Tw ("Regulation and Pricing.") Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0467 Tc 0.163 Tw (Shareholders' Agreement. ) Tj 108.24 0 TD /F3 10.08 Tf -0.043 Tc 0.6636 Tw (MAT\301V, MagyarCom and the Minister are parties to a shareholders' agreement, dated September) Tj -122.64 -12 TD -0.052 Tc 0.544 Tw (26, 1997 \(the "Minister Shareholders' Agreement"\). Pursuant to the Minister Shareholders' Agreement, MagyarCom has agreed,) Tj 0 -12 TD -0.0481 Tc 1.4174 Tw (among other things, to restrict transfers by it of 10 percent or more of the voting stock of MAT\301V to any person or persons) Tj T* -0.0473 Tc 0.4879 Tw (acting in concert \(except for \(i\) a new concessionaire, \(ii\) an internationally recognized underwriter acquiring the shares for the) Tj T* -0.0417 Tc 0.8783 Tw (exclusive purpose of distributing such shares in a public offering or \(iii\) other transferees after the consent of the Minister has) Tj T* -0.0427 Tc 0.4328 Tw (been obtained\). In particular, the recipient of such a transfer must be a financially, legally and professionally sound strategic or) Tj T* -0.036 Tc 0.9567 Tw (financial investor that is well regarded and deemed to be prominent in its particular field by the international marketplace. In) Tj T* -0.0501 Tc 1.0508 Tw (addition, MagyarCom has agreed to procure that any such transferee will undertake to abide by a similar transfer restriction.) Tj T* -0.0436 Tc 1.2843 Tw (MagyarCom has also agreed to exercise its rights as a shareholder, insofar as it lawfully may, to ensure that the majority of) Tj T* -0.0445 Tc 0.3784 Tw (MAT\301V's management level employees and officers continues to be composed of Hungarian citizens. In his capacity as holder of) Tj T* -0.0413 Tc 0.4339 Tw (the Series "B" Share, the Minister has agreed to attend all MAT\301V shareholder meetings at which his attendance is necessary to) Tj T* -0.0518 Tc 0.2525 Tw (constitute a quorum for the transaction of business.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.0047 Tc 0.0851 Tw (Series "B" Share) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0476 Tc 1.0403 Tw (The Hungarian state owns the Series B Share. Only the Minister or his legal successor may exercise rights attached to the) Tj -14.4 -12 TD -0.0605 Tc 0.632 Tw (Series "B" Share. Except as described below, the Series "B" Share has the same rights as the ordinary shares. The holder of the) Tj 0 -12 TD -0.0359 Tc 0.2366 Tw (Series "B" Share is entitled:) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (1.) Tj 15.84 0 TD -0.0464 Tc 1.2449 Tw (to nominate one member of the Board of Directors and one member of the Supervisory Board and effectively to elect,) Tj 0 -12 TD -0.068 Tc 0.2686 Tw (remove or replace these members;) Tj ET endstream endobj 175 0 obj 7345 endobj 172 0 obj << /Type /Page /Parent 173 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 174 0 R >> endobj 177 0 obj << /Length 178 0 R >> stream BT 280.8 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0576 Tc 0 Tw (l) Tj -252.96 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (2.) Tj 15.84 0 TD -0.0489 Tc 1.3535 Tw (if the Company's registered capital is increased, a new class of shares is issued or the rights attached to a particular) Tj 0 -12 TD -0.0431 Tc 1.1238 Tw (class of shares change, to require the Articles of Association to be amended so that the voting rights of the Series "B") Tj T* -0.0454 Tc 0.2461 Tw (Share will be sufficient to nominate, elect or remove the Series "B" director or Supervisory Board member;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (3.) Tj 15.84 0 TD -0.0676 Tc 0.7349 Tw (to inspect the shareholders' register and the books maintained by a depository of the Company's shares approved by the) Tj 0 -12 TD -0.0626 Tc 0.2632 Tw (Company, and to request copies of the register or books;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (4.) Tj 15.84 0 TD -0.0606 Tc 0.5413 Tw (if the Company dissolves without a successor company, to purchase all or part of the Company's assets, including shares) Tj 0 -12 TD -0.0412 Tc 0.2419 Tw (of subsidiaries or affiliates, for a price equal to the appraised fair market value of such assets;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (5.) Tj 15.84 0 TD -0.0342 Tc 0.9848 Tw (to request from the Board of Directors detailed information about a material fact significantly affecting the Company's) Tj 0 -12 TD -0.0395 Tc 0.2402 Tw (financial position; and) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (6.) Tj 15.84 0 TD -0.0577 Tc 0.4857 Tw (to request that the Company audit or investigate any issue or prepare reports or provide information on issues within the) Tj 0 -12 TD -0.0432 Tc 0.2438 Tw (scope of activities of the Company's auditor or the Supervisory Board pursuant to law or the Articles of Association.) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0692 Tc 0.4898 Tw (The holder of the Series "B" Share must be present, in person or by proxy, for a quorum, and its approval is required to pass) Tj -14.4 -12 TD -0.0592 Tc 0.2599 Tw (shareholders' resolutions related to any:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (1.) Tj 15.84 0 TD -0.0568 Tc 0.2574 Tw (increase and decrease of the Company's registered capital;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (2.) Tj 15.84 0 TD -0.0578 Tc 1.127 Tw (change of rights attached to any class of shares, including any amendment to the rights of the Series "B" Share or the) Tj 0 -12 TD -0.0489 Tc 0.5768 Tw (creation of a new class of shares with rights superior or equal to the rights or adversely affecting the rights of the Series) Tj T* -0.0608 Tc 0.5974 Tw ("B" Share, or any amendment to the rights attached to any existing class of shares that would grant them rights superior) Tj T* -0.0533 Tc 0.2539 Tw (or equal to the rights attached to the Series "B" Share;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (3.) Tj 15.84 0 TD -0.0538 Tc 2.363 Tw (merger into or consolidation with another business entity, de-merger, transformation into another form of business) Tj 0 -12 TD -0.0566 Tc 0.2572 Tw (association and termination of the Company without a legal successor;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (4.) Tj 15.84 0 TD -0.0528 Tc 0.2534 Tw (transfer, creation or encumbrance of a valuable right that enables the Company to operate its local concessions;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (5.) Tj 15.84 0 TD -0.0578 Tc 0.2584 Tw (election or removal of the Series "B" director or Supervisory Board member;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (6.) Tj 15.84 0 TD -0.071 Tc 0.2716 Tw (conversion of a type of shares by means of ) Tj 175.44 0 TD -0.062 Tc 0.2626 Tw (replacing or stamping them;) Tj -205.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (7.) Tj 15.84 0 TD -0.0577 Tc 0.4264 Tw (transfer of all or a substantial part of the assets of the Company that would render the Company incapable of performing) Tj 0 -12 TD -0.0497 Tc 0.2503 Tw (its obligations under the national concession;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (8.) Tj 15.84 0 TD -0.041 Tc 0.8227 Tw (amendment to the Articles of Association which would impair the rights of the holder of the Series "B" Share, including) Tj 0 -12 TD -0.0493 Tc 0.2499 Tw (authorizing the Board of Directors to increase the Company's registered capital;) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (9.) Tj 15.84 0 TD -0.067 Tc 0.2676 Tw (issuance of convertible bonds or bonds conferring preemptive rights; and) Tj -30.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (10.) Tj 15.84 0 TD -0.0367 Tc 0.2373 Tw (decisions on significant ) Tj 98.64 0 TD -0.0569 Tc 0.2575 Tw (transfers of shares.) Tj -128.88 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.046 Tc 0.4626 Tw (The Minister issued a statement to MagyarCom on September 29, 1997 in which he confirmed his intention to vote the Series) Tj -14.4 -12 TD -0.0483 Tc 1.1889 Tw ("B" Share on matters set out in items 1. to 3. of the previous paragraph in favor of decisions that do not adversely affect the) Tj 0 -12 TD -0.0387 Tc 1.0393 Tw (national security of the Republic of Hungary, impair the rights attached to the Series "B" Share as provided in the Articles of) Tj T* -0.0444 Tc 0.4145 Tw (Association or impair the Company's ability to perform its obligations under the Concession Contract in any substantial respect.) Tj T* -0.0389 Tc 0.8896 Tw (The Minister declared his intention not to vote in favor of any decision that would result in an existing or new class or type of) Tj T* -0.0516 Tc 2.1091 Tw (shares being granted rights superior or equal to, or otherwise adversely affecting, the rights of the Series "B" Share. The) Tj T* -0.0494 Tc 0.6843 Tw (Minister agreed to use reasonable efforts to ensure that any successor to the Series "B" Share will issue a letter to MagyarCom) Tj T* -0.0275 Tc 0.2281 Tw (including the same terms as the Minister's statement.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 178 0 obj 7202 endobj 176 0 obj << /Type /Page /Parent 173 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 177 0 R >> endobj 180 0 obj << /Length 181 0 R >> stream BT 279.36 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0576 Tc 0 Tw (li) Tj -251.52 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf 0.0351 Tc 0.0546 Tw (Transfer of Shares) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0559 Tc 1.1806 Tw (The holder of the Series "B" Share and other shareholders holding at least a simple majority of the shares must generally) Tj -14.4 -12 TD -0.075 Tc 1.0829 Tw (approve a transfer of shares that would result in a person or group of persons holding ten percent or more of the outstanding) Tj 0 -12 TD -0.0499 Tc 2.1815 Tw (voting stock of the Company. The consent of the holder of the Series "B" Share is also required to transfer shares if the) Tj T* -0.0551 Tc 0.2558 Tw (transferee would acquire more than 49.9 percent of the outstanding voting stock of the Company.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0512 Tc 0.6118 Tw (Although amendments to the Hungarian Companies Act that took effect on June 16, 1998 generally do not allow restrictions) Tj -14.4 -12 TD -0.0494 Tc 0.925 Tw (on transfers of public companies' shares, the restrictions discussed above are also contained in MAT\301V's Concession Contract) Tj 0 -12 TD -0.0355 Tc 2.5514 Tw (as required by the Concession Act. The Company believes that the inconsistency between its Articles of Association and) Tj T* -0.0449 Tc 1.1827 Tw (Concession Contract, on the one hand, and the Hungarian Companies Act, on the other, is likely to be resolved either by the) Tj T* -0.0402 Tc 1.4541 Tw (inclusion of a specific authorization for the transfer restrictions in the new Telecommunications Act or an amendment to the) Tj T* -0.0422 Tc 2.4829 Tw (existing Telecommunications Act, or by the Minister, as the holder of the Series "B" Share, approving an amendment to) Tj T* -0.0063 Tc 0.207 Tw (MAT\301V's Articles of Association removing these restrictions.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0552 Tc 0.3443 Tw (In registering a transfer of shares, the registrar may request evidence that the shares were transferred in accordance with the) Tj -14.4 -12 TD -0.0209 Tc 0.6055 Tw (Articles of Association. If the Company establishes that the transfer occurred in violation of the Articles of Association or if the) Tj 0 -12 TD -0.0495 Tc 0.9302 Tw (transferee refuses to produce the necessary evidence, the Company may refuse to register the transfer. The Board of Directors) Tj T* -0.0512 Tc 1.5478 Tw (may invalidate registrations based on untrue, false or misleading statements. Only shareholders registered in the Company's) Tj T* -0.0526 Tc 1.8283 Tw (register may exercise shareholder rights vis-a-vis the Company or transfer shares. A registered shareholder must notify the) Tj T* -0.042 Tc 0.2427 Tw (Company within eight days of any transfers of its shares or it will be liable for liquidated damages.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 181 0 obj 3063 endobj 179 0 obj << /Type /Page /Parent 173 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 180 0 R >> endobj 183 0 obj << /Length 184 0 R >> stream BT 277.92 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0576 Tc 0 Tw (lii) Tj -96.96 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 5 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0053 Tc 0.0038 Tw (NATURE OF THE TRADING MARKET) Tj -153.12 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.045 Tc 2.2296 Tw (In November 1997, shareholders of MAT\301V completed a Hungarian and international initial public offering of shares.) Tj -14.16 -12 TD -0.0284 Tc 1.8291 Tw (MAT\301V shares were listed in the "A" category of the Budapest Stock Exchange, and MAT\301V ADSs, each representing five) Tj 0 -12 TD -0.0433 Tc 0.6897 Tw (ordinary shares, were listed on the New York Stock Exchange. The total number of shares sold in the initial public offering was) Tj T* -0.0433 Tc 0.5092 Tw (272,861,367, or 26.31 percent of the total outstanding shares, for an aggregate offering price of over U.S.$1.0 billion. The offer) Tj T* -0.0736 Tc 0.2742 Tw (price was HUF 730 per share and U.S.$18.65 per ADS.) Tj 14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0496 Tc 1.1262 Tw (In June 1999, the \301PV sold its remaining 5.75% stake in MAT\301V during a secondary offering. The total number of shares) Tj -14.16 -12 TD -0.0658 Tc 0.8096 Tw (sold was 60,096,515, out of which MagyarCom sold 581,319 shares in connection with a greenshoe option. The offer price was) Tj 0 -12 TD -0.0675 Tc 0.2681 Tw (HUF 1,273 per share and U.S.$26.50 per ADS.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0436 Tc 0.2443 Tw (The ADSs are eligible for quotation and trading on SEAQ International.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0036 Tc 0.0055 Tw (Trading on the New York Stock Exchange) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0497 Tc 0.3234 Tw (The table below sets forth the high and low closing sales prices for the ADSs on the New York Stock Exchange for the periods) Tj -14.4 -12 TD -0.046 Tc 0.2466 Tw (indicated, as reported on the New York Stock Exchange composite tape:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 316.56 528.24 0.24 11.04 re h W n BT 316.56 530.4 TD ( ) Tj ET Q q 327.36 528.24 0.24 11.04 re h W n BT 327.36 530.4 TD ( ) Tj ET Q BT 378.96 530.16 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tc 0.0194 Tw (Price per ADS) Tj -62.4 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 27.6 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0332 Tc 0 Tw (High) Tj 51.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0664 Tc 0 Tw (Low) Tj ET 328.32 526.32 72 0.72 re f 400.32 526.32 0.72 0.72 re f 401.04 526.32 10.08 0.72 re f 411.12 526.32 0.72 0.72 re f 411.84 526.32 71.28 0.72 re f BT 27.84 504.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 291.6 0.24 TD ( ) Tj 73.2 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0322 Tc 0 Tw (\(U.S.$\)) Tj ET 328.32 513.36 72 0.72 re f 411.12 513.36 72 0.72 re f BT 27.84 491.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0 Tw (1997) Tj 291.6 0 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 45.36 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj -419.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1039 Tc 0.0967 Tw (Fourth Quarter \(from November 14\).....................................................) Tj 291.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (26.37) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (18.65) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0 Tw (1998) Tj 291.6 0 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 45.36 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj -419.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0262 Tc 0.2268 Tw (First Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (........................................................................................) Tj 291.6 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (31.12) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (22.94) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1615 Tc 0.0391 Tw (Second Quarter ....................................................................................) Tj 291.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (33.25) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (27.43) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1594 Tc 0.0413 Tw (Third Quarter ..................................................................) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (.................) Tj 291.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (32.69) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (19.00) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1593 Tc 0.0414 Tw (Fourth Quarter .....................................................................) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (............) Tj 291.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (30.06) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (19.94) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0 Tw (1999) Tj 291.6 0 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 45.36 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj -419.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0262 Tc 0.2268 Tw (First Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (........................................................................................) 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Tj 291.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (31.25) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (26.75) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0603 Tc 0.261 Tw (Fourth Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................................................................................) Tj 291.6 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (36.50) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (26.06) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 184 0 obj 7967 endobj 182 0 obj << /Type /Page /Parent 173 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 183 0 R >> endobj 186 0 obj << /Length 187 0 R >> stream BT 276.48 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0576 Tc 0 Tw (liii) Tj -248.64 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0038 Tc 0.0053 Tw (Trading on the Budapest Stock Exchange) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0536 Tc 1.7856 Tw (The table below sets forth the high and low closing sales prices for the shares on the Budapest Stock Exchange for the) Tj -14.4 -12 TD -0.0527 Tc 0.2533 Tw (periods indicated, as reported by the Budapest Stock Exchange:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 316.56 684 0.24 11.04 re h W n BT 316.56 686.16 TD ( ) Tj ET Q q 327.36 684 0.24 11.04 re h W n BT 327.36 686.16 TD ( ) Tj ET Q BT 376.56 685.92 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0194 Tc 0 Tw (Price per Share) Tj -60 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 27.6 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0332 Tc 0 Tw (High) Tj 51.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0664 Tc 0 Tw (Low) Tj ET 328.32 682.08 72 0.72 re f 400.32 682.08 0.72 0.72 re f 401.04 682.08 10.08 0.72 re f 411.12 682.08 0.72 0.72 re f 411.84 682.08 71.28 0.72 re f BT 27.84 660 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 291.6 0.24 TD ( ) Tj 73.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.064 Tc 0 Tw (\(HUF\)) Tj ET 328.32 669.12 72 0.72 re f 411.12 669.12 72 0.72 re f BT 27.84 647.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0 Tw (1997) Tj 291.6 0 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 45.36 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj -419.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1039 Tc 0.0967 Tw (Fourth Quarter \(from November 14\).....................................................) 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Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0595 Tc 0.9161 Tw (The Budapest Stock Exchange, an independent and self-regulated non-profit organization, reopened on June 21, 1990 after) Tj -14.4 -12 TD -0.0494 Tc 0.2879 Tw (having been closed for 42 years. Although it has grown significantly since reopening, it remains small compared to most Western) Tj 0 -12 TD -0.0391 Tc 0.5221 Tw (stock exchanges, with an equity market capitalization of approximately HUF 7,306 billion at December 29, 1999. Average daily) Tj T* -0.0471 Tc 2.9583 Tw (trading in equity securities on the Budapest Stock Exchange increased from approximately HUF 66 million in 1993 to) Tj T* -0.0428 Tc 0.2435 Tw (approximately HUF 13,725 million in 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0576 Tc 0.6372 Tw (There are three categories of equity securities on the Budapest Stock Exchange: "A," "B" and "C." A company whose shares) Tj -14.4 -12 TD -0.042 Tc 0.2427 Tw (are to be admitted to the "A" category must meet the following requirements:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0383 Tc 0.4789 Tw (the company must have published audited financial statements for three full fiscal years showing a profit for the third full) Tj 0 -12 TD -0.016 Tc 0.2167 Tw (fiscal year;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0464 Tc 0.2471 Tw (the aggregate market value of the shares to be listed may not be less than HUF 10 billion;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0418 Tc 0.712 Tw (the public must hold either \(A\) 25 percent of the shares, with an aggregate market value of at least HUF 4 billion or \(B\)) Tj 0 -12 TD -0.0479 Tc 0.2485 Tw (shares with an aggregate market value of at least HUF 10 billion;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.047 Tc 0.2476 Tw (at least 1,000 individuals or entities must hold the shares; and) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0518 Tc 0.2524 Tw (the shares must be in registered form.) 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The) Tj -14.4 -12 TD -0.02 Tc 1.2926 Tw (Budapest Stock Exchange settles securities trades through the facilities of K\366zponti Elsz\341mol\363h\341z \351s \311rt\351kt\341r Rt. \("KELER"\).) Tj 0 -12 TD -0.0363 Tc 1.1338 Tw (Purchasers have securities allocated to their account within the clearing system on the fifth day following the trade date, and) Tj T* -0.0372 Tc 0.4892 Tw (remit the purchase price of the securities to the Budapest Stock Exchange through their accounts at KELER at such time for on-) Tj T* -0.0341 Tc 0.9295 Tw (payment to sellers. Securities certificates can be withdrawn from the clearing system on the sixth day following the trade date.) Tj T* -0.0326 Tc 0.2332 Tw (Sellers of securities are required to lodge securities certificates representing the securities sold four days after the trade date.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0563 Tc 1.8436 Tw (Companies whose shares are included in the "A" category are required to file periodic reports with the Budapest Stock) Tj -14.4 -12 TD -0.0498 Tc 3.7581 Tw (Exchange, including consolidated financial statements on a quarterly basis and annual audited consolidated financial) Tj 0 -12 TD -0.0536 Tc 2.2543 Tw (statements. In addition, a company must report any information of which it becomes aware relating to changes that have) Tj T* -0.0344 Tc 0.315 Tw (occurred or will occur in the company's business, results of operations or financial condition, which affect, directly or indirectly,) Tj T* -0.0343 Tc 1.4007 Tw (the value of the listed securities or the yield thereon to the Budapest Stock Exchange no later than 10:00 a.m. the following) Tj T* -0.0678 Tc 0.2685 Tw (business day.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.054 Tc 0.5199 Tw (The Budapest Stock Exchange Index was first introduced in 1991 and was officially recognized by the Board of the Budapest) Tj -14.4 -12 TD -0.0466 Tc 0.8156 Tw (Stock Exchange under the name "BUX" on January 1, 1995. The composition of the BUX is periodically restructured to reflect) Tj 0 -12 TD -0.0506 Tc 1.7165 Tw (the development of the Budapest Stock Exchange and as of April 1, 1999 included 18 companies. Criteria for choosing the) Tj T* -0.0464 Tc 0.7003 Tw (underlying stocks for the BUX are based on liquidity and market segment representation. Until October 1, 1999, weightings for) Tj T* -0.0346 Tc 1.1285 Tw (the BUX reflected the market capitalizations of its constituent companies and were adjusted for changes in share capital. The) Tj T* -0.0454 Tc 1.8061 Tw (constituent companies are updated in September and March each year. 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Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,795) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,795) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,301) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1526 Tc 0.048 Tw (Third Quarter .......................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,693) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,484) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,754) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1492 Tc 0.0514 Tw (Fourth Quarter .....................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,999) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,107) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,561) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0 Tw (1998) Tj 208.8 0 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 45.36 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj -419.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0262 Tc 0.2268 Tw (First Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (.........................................................) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,656) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,691) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,597) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0915 Tc 0.2921 Tw (Second Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................................................) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,806) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,866) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,802) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1526 Tc 0.048 Tw (Third Quarter .......................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (4,571) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (4,674) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (4,556) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1492 Tc 0.0514 Tw (Fourth Quarter .....................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,308) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,343) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,294) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0 Tw (1999) Tj 208.8 0 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 45.36 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj 45.36 0 TD ( ) Tj 37.44 0 TD ( ) Tj -419.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0262 Tc 0.2268 Tw (First Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (.........................................................) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,490) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,946) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,130) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0915 Tc 0.2921 Tw (Second Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................................................) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,486) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,646) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,479) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1526 Tc 0.048 Tw (Third Quarter .......................................................) Tj 208.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,747) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,626) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,548) Tj -408.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0603 Tc 0.261 Tw (Fourth Quarter) Tj 0 -12 TD 0.2006 Tc 0 Tw (....................................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..............) Tj 208.8 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,819) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,921) Tj 56.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,182) Tj -408.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F1 7.92 Tf -0.0735 Tc 0 Tw (Source:) Tj 23.76 0 TD /F3 7.92 Tf 0.0028 Tc 0 Tw ( Budapest Stock Exchange) Tj -23.76 -5.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.4 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.003 Tc 0 Tw (Calculated from a base of 1,000 set on January 1, 1992.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 194 0 obj 9174 endobj 191 0 obj << /Type /Page /Parent 192 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 193 0 R >> endobj 196 0 obj << /Length 197 0 R >> stream BT 276.96 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0181 Tc 0 Tw (lvi) Tj -130.08 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 6 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.005 Tc 0.0041 Tw (EXCHANGE CONTROLS AND OTHER LIMITATIONS) Tj 65.04 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0055 Tc 0.0036 Tw (AFFECTING SECURITY HOLDERS) Tj -184.08 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0452 Tc 0.6592 Tw (The investment by foreigners in Hungarian securities is regulated by Act XXIV of 1988 on Foreign Investments, as amended) Tj -14.4 -12 TD -0.0457 Tc 1.433 Tw (\(the "Foreign Investment Act"\) and Act XCV of 1995 on Foreign Exchange, as amended \(the "Forex Act"\) and implementing) Tj 0 -12 TD -0.0291 Tc 0.2964 Tw (decrees. The Foreign Investment Act and the Forex Act regulate foreign investment in Hungarian equities. In addition, the Forex) Tj T* -0.0449 Tc 0.9024 Tw (Act regulates foreign investment in Hungarian debt instruments and flows of cash. The regulations in these acts do not restrict) Tj T* -0.0599 Tc 1.1539 Tw (foreigners from investing in registered shares issued by Hungarian companies, nor do they restrict the total number of shares) Tj T* -0.0591 Tc 1.005 Tw (foreigners may own. In addition, foreigners may establish wholly owned subsidiaries in Hungary to acquire all the shares of a) Tj T* -0.0931 Tc 0.2938 Tw (Hungarian company.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0603 Tc 0.3597 Tw (Shares held by foreign investors may be sold without restrictions to other foreigners or Hungarian persons. Foreign investors) Tj -14.4 -12 TD -0.065 Tc 0.5688 Tw (may deposit proceeds from sales to Hungarian persons in a convertible Hungarian Forint account, the balance of which may be) Tj 0 -12 TD -0.0403 Tc 1.8276 Tw (converted into foreign currency and repatriated without restriction, subject to withholding tax rules, or may be paid into a) Tj T* -0.0562 Tc 1.6121 Tw (foreign currency account of the foreigner in Hungary or abroad. Similarly, foreign investors may convert dividends paid by) Tj T* -0.0485 Tc 3.2792 Tw (Hungarian companies into foreign currency and repatriate the proceeds, subject to withholding tax rules. If a foreign) Tj T* -0.0543 Tc 0.339 Tw (shareholder does not wish to repatriate sale proceeds or dividend payments, it may elect to receive and deposit such payments in) Tj T* -0.0573 Tc 2.4522 Tw (Hungarian Forints into a convertible HUF-denominated account established with any commercial bank in Hungary. Such) Tj T* -0.0459 Tc 2.1065 Tw (accounts will accrue interest in Hungarian Forints. The balance remains freely convertible into foreign currency and may) Tj T* -0.0573 Tc 0.258 Tw (subsequently be repatriated or reinvested in Hungary.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0519 Tc 1.3725 Tw (The Forex Act regulates the conversion of Hungarian Forints into foreign currencies and transactions between foreigners) Tj -14.4 -12 TD -0.0681 Tc 0.5487 Tw (and Hungarian persons which require a foreign exchange license issued by the National Bank of Hungary. No foreign exchange) Tj 0 -12 TD -0.0353 Tc 0.236 Tw (license is required for any of the following acts:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -0.96 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0581 Tc 0.2587 Tw (to repatriate dividends or proceeds from the sale of shares;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0845 Tc 0.2851 Tw (to hold shares in Hungarian companies;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0626 Tc 0.2632 Tw (to deposit shares with either a Hungarian or foreign depository;) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0578 Tc 0.2585 Tw (to exercise shareholders' rights; or) Tj -14.16 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD /F3 10.08 Tf -0.0648 Tc 0.2654 Tw (to sell shares in Hungarian companies.) Tj -27.6 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 197 0 obj 4753 endobj 195 0 obj << /Type /Page /Parent 192 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 196 0 R >> endobj 199 0 obj << /Length 200 0 R >> stream BT 275.52 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0008 Tc 0 Tw (lvii) Tj -33.84 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 7 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0046 Tc 0 Tw (TAXATION) Tj -213.84 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (Hungarian Taxation of Nonresident Holders of Securities) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0641 Tc 0.3448 Tw (The following is a summary of the Hungarian tax considerations relevant to an investment in ADSs or shares by a holder who) Tj -14.4 -12 TD -0.0625 Tc 1.2351 Tw (is not a citizen or resident of Hungary, is not a corporation, partnership or other entity organized under Hungarian law, and) Tj 0 -12 TD -0.0711 Tc 1.1958 Tw (does not hold ADSs or shares in connection with the conduct of a business in Hungary through a permanent establishment \(a) Tj T* -0.074 Tc 0.2747 Tw ("non-resident holder"\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0672 Tc 0.9079 Tw (The summary of Hungarian tax considerations set out below is based on Hungarian laws in force at the date of this annual) Tj -14.4 -12 TD -0.0393 Tc 1.2239 Tw (report, including double tax treaties currently in force, and is subject to changes in such laws or treaties occurring after this) Tj 0 -12 TD 0.004 Tc 0 Tw (date.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0223 Tc 0 Tw (Dividends) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0539 Tc 1.644 Tw (Dividends paid to non-resident holders are subject to a general withholding tax of 20 percent unless the provisions of a) Tj -14.4 -12 TD -0.0395 Tc 0.2401 Tw (relevant double tax treaty apply or, in the case of dividends paid to non-resident business entities, the dividends are reinvested in) Tj 0 -12 TD -0.0825 Tc 0.2831 Tw (Hungarian companies.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0548 Tc 2.2765 Tw (Hungary has entered into a number of tax treaties which provide for a reduced rate of dividend withholding tax. For) Tj -14.4 -12 TD -0.043 Tc 0.977 Tw (example, the treaty relating to the avoidance of double taxation concluded between the United States and Hungary \(the "U.S.-) Tj 0 -12 TD -0.0515 Tc 0.6922 Tw (Hungary treaty"\) generally reduces Hungarian withholding tax to 15 percent if the beneficial owner of the dividends is resident) Tj T* -0.0414 Tc 1.3735 Tw (in the United States. For the purposes of applying the provisions of the relevant double tax treaty, a "beneficial owner" of a) Tj T* -0.0425 Tc 0.4231 Tw (dividend is the foreign organization or foreign recipient of the dividend which declares the dividend in its income tax returns for) Tj T* -0.041 Tc 0.2962 Tw (the purposes of computing its own tax liability in its country of residence. A "recipient" of a dividend is a foreign organization or) Tj T* -0.0497 Tc 0.2503 Tw (foreign recipient of Hungarian income to whom the dividend is paid.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0501 Tc 1.6625 Tw (In the application of benefits generally available under double tax treaties which Hungary has concluded the country of) Tj -14.4 -12 TD -0.0273 Tc 0.228 Tw (residence of the "beneficial owner" and not the "recipient" will determine the availability of double tax treaty benefits.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0435 Tc 0.661 Tw (In practice, to obtain the benefits of reduced withholding tax rates under a relevant double tax treaty, a non-resident holder) Tj -14.4 -12 TD -0.0269 Tc 0.278 Tw (of securities must file a refund claim with the Hungarian tax authorities and provide official certification from the tax authorities) Tj 0 -12 TD -0.0322 Tc 1.5243 Tw (of its home country that the holder is eligible for benefits under the relevant double tax treaty. In addition, the holder must) Tj T* -0.059 Tc 0.4083 Tw (provide a statement issued by the payer which shows that tax has been withheld and a declaration that the non-resident holder is) Tj T* -0.0433 Tc 0.5411 Tw (the "beneficial owner" of the income, and the amount received will be treated as income in the country of residency. Forms may) Tj T* -0.0423 Tc 1.083 Tw (be obtained from, and filings shall be sent to, APEH \311szak-budapesti Igazgat\363s\341ga, 1139 Budapest, Petneh\341zy u 6-8, PO Box) Tj T* -0.0339 Tc 0 Tw (45.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0595 Tc 0.726 Tw (Hungarian law provides procedures that would allow the Company to withhold tax from dividends at applicable treaty rates) Tj -14.4 -12 TD -0.0362 Tc 1.0768 Tw (provided it satisfies certain requirements. The Company intends to explore the feasibility of implementing such procedures. In) Tj 0 -12 TD -0.0516 Tc 2.0789 Tw (this respect, the depository has agreed to use reasonable efforts, in cooperation with the Company, to make and maintain) Tj T* -0.042 Tc 0.2426 Tw (arrangements enabling security holders to obtain available treaty benefits.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0359 Tc 0.0249 Tw (Capital Gains Tax) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0464 Tc 1.0927 Tw (Gain derived by non-resident business entities from the sale or other disposition of ADSs or shares is not subject to tax in) Tj -14.4 -12 TD -0.0838 Tc 0 Tw (Hungary.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.051 Tc 1.8811 Tw (Capital gains derived by non-resident individuals from the sale or other disposition of ADSs or shares are subject to a) Tj -14.4 -12 TD -0.0561 Tc 0.704 Tw (withholding tax at a rate of 20 percent if the buyer is a Hungarian business entity or a broker registered in Hungary. However,) Tj 0 -12 TD -0.0387 Tc 0.972 Tw (an applicable tax treaty can preempt this rule. For instance, the U.S.-Hungary treaty provides that capital gains realized by a) Tj T* -0.0235 Tc 0.4521 Tw (qualifying resident of the United States, as evidenced by a certificate of tax residency from the Internal Revenue Service, will be) Tj T* -0.0527 Tc 0.2534 Tw (exempt from Hungarian taxation.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0132 Tc 0.0022 Tw (Transfer Tax) Tj ET endstream endobj 200 0 obj 6739 endobj 198 0 obj << /Type /Page /Parent 192 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 199 0 R >> endobj 202 0 obj << /Length 203 0 R >> stream BT 274.08 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0122 Tc 0 Tw (lviii) Tj -246.24 693.36 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0519 Tc 0.2526 Tw (The sale or other disposition of ADSs or shares is not subject to Hungarian transfer tax.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0319 Tc 0.0209 Tw (Stamp Duty) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0592 Tc 0.2598 Tw (The sale or exchange of ADSs or shares is not subject to stamp duty in Hungary.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (Hungarian Taxation of Resident Holders of Securities) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.037 Tc 0.026 Tw (Dividends Paid to Resident Entities) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0425 Tc 0.9505 Tw (Dividends paid to resident entities in Hungary are not subject to withholding tax. These payments are treated as income of) Tj -14.4 -12 TD -0.0563 Tc 0.257 Tw (the recipient for accounting purposes but not for taxation purposes.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0479 Tc 0.0369 Tw (Dividends Paid to Resident Individuals) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0472 Tc 1.7866 Tw (Under the Hungarian personal income tax legislation, dividends paid to resident individuals are in general subject to a) Tj -14.4 -12 TD -0.0386 Tc 0.2392 Tw (withholding tax of 20 percent.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.028 Tc 0.017 Tw (Capital Gains Tax/Transfer Tax/Stamp Duty) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0576 Tc 1.2902 Tw (Capital gains derived by a Hungarian company from the sale of shares are part of the normal profit before taxation. The) Tj -14.4 -12 TD -0.0612 Tc 0.2618 Tw (standard corporate tax rate is 18 percent.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.051 Tc 1.3831 Tw (Capital gains derived by an individual resident in Hungary are in general subject to personal income tax at a rate of 20) Tj -14.4 -12 TD -0.0167 Tc 0 Tw (percent.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0673 Tc 0.2679 Tw (There is no transfer tax or stamp duty on sale of shares in Hungary.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0041 Tc 0.005 Tw (United States Taxation) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0348 Tc 1.8434 Tw (The following is a summary of the United States federal income tax considerations that are likely to be material to the) Tj -14.4 -12 TD -0.0631 Tc 0.5455 Tw (purchase, ownership and disposition of ADSs or shares by a holder that is a resident of the United States for purposes of, and is) Tj 0 -12 TD -0.0348 Tc 0.2354 Tw (fully entitled to benefits under, the income tax treaty between the United States and Hungary \(a "U.S. holder"\).) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0479 Tc 1.3685 Tw (The summary is based on laws, regulations, rulings and decisions in effect on the date of this document, all of which are) Tj -14.4 -12 TD -0.053 Tc 0.4708 Tw (subject to change. This summary does not purport to be a comprehensive description of all of the tax considerations that may be) Tj 0 -12 TD -0.0521 Tc 0.6317 Tw (relevant to a particular investor's decision to purchase ADSs or shares. In particular, the summary deals only with U.S. holders) Tj T* -0.0501 Tc 0.4221 Tw (that will hold shares or ADSs as capital assets, and does not address the tax considerations relevant to investors that are subject) Tj T* -0.0643 Tc 1.4383 Tw (to special tax rules, such as banks; insurance companies; securities dealers; persons holding shares as part of an integrated) Tj T* -0.0733 Tc 1.6179 Tw (investment, including a "straddle" comprised of an ADS or share and one or more other positions; and persons that have a) Tj T* -0.0354 Tc 0.2361 Tw (functional currency other than the U.S. dollar.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0211 Tc 0.2218 Tw (A holder will generally be entitled to benefits under the U.S.-Hungary Treaty, and therefore will be a U.S. holder, if it:) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0242 Tc 0.9334 Tw (is an individual U.S. resident, a U.S. corporation, or a partnership, estate, or trust to the extent its income is subject to) Tj 0 -12 TD -0.0404 Tc 1.8688 Tw (taxation in the United States as the income of a U.S. resident, either in its hands or in the hands of its partners or) Tj T* -0.0147 Tc 0 Tw (beneficiaries;) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0812 Tc 0.2819 Tw (is not also a resident of Hungary for Hungarian tax purposes; and) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F3 10.08 Tf -0.0709 Tc 0.7782 Tw (does not hold ADSs or shares in connection with the conduct of business in Hungary through a permanent establishment) Tj 0 -12 TD -0.0679 Tc 0.2685 Tw (or the performance of personal services in Hungary through a fixed base.) Tj -27.84 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 203 0 obj 6117 endobj 201 0 obj << /Type /Page /Parent 192 0 R /Resources << /Font 204 0 R /ProcSet 2 0 R >> /Contents 202 0 R >> endobj 204 0 obj << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> endobj 206 0 obj << /Length 207 0 R >> stream BT 276.96 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0619 Tc 0 Tw (lix) Tj -234.72 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.058 Tc 0.472 Tw (Prospective investors should consult their own advisers regarding the tax consequences of holding ADSs or shares in light of) Tj -14.4 -12 TD -0.0235 Tc 0.2242 Tw (their particular circumstances, including, in particular, the effect of any state, local or other national laws.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0462 Tc 1.7589 Tw (In general, for U.S. federal income tax purposes, beneficial owners of ADSs will be treated as the owners of the shares) Tj -14.4 -12 TD -0.0558 Tc 0.2564 Tw (represented by those ADSs.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0223 Tc 0 Tw (Dividends) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0562 Tc 1.0757 Tw (The gross amount of dividends received by a U.S. holder, including amounts withheld in respect of Hungarian withholding) Tj -14.4 -12 TD -0.0249 Tc 0.6256 Tw (tax, will generally be subject to U.S. federal income taxation as foreign source dividend income, and will not be eligible for the) Tj 0 -12 TD -0.0424 Tc 1.1042 Tw (dividends received deduction allowed to corporations. Dividends paid in Hungarian Forint will be includible in the income of) Tj T* -0.0368 Tc 0.78 Tw (U.S. holders in a U.S. dollar amount calculated by reference to the exchange rate in effect on the date of receipt by the holder) Tj T* -0.0352 Tc 1.4141 Tw (or, in the case of ADSs, the custodian. If such dividends are converted into U.S. dollars on the date of receipt, U.S. holders) Tj T* -0.0522 Tc 0.3672 Tw (generally should not be required to recognize foreign currency gain or loss in respect of the dividend income. A U.S. holder may) Tj T* -0.0541 Tc 0.3529 Tw (be required to recognize foreign currency gain or loss upon its receipt of a refund of Hungarian withholding tax to the extent the) Tj T* -0.0327 Tc 2.1425 Tw (U.S. dollar value of the refund differs from the U.S. dollar equivalent of the refund amount on the date of receipt of the) Tj T* -0.0418 Tc 0.2424 Tw (underlying dividend.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0548 Tc 2.0155 Tw (Hungarian withholding tax at the 15 percent rate provided under the U.S.-Hungary Treaty will be treated as a foreign) Tj -14.4 -12 TD -0.021 Tc 1.0301 Tw (income tax. Subject to generally applicable limitations, foreign income taxes may, at the election of the holder, be claimed as) Tj 0 -12 TD -0.0311 Tc 1.9117 Tw (credits against a U.S. holder's U.S. federal income tax liability, or may be deducted in computing taxable income. Credits) Tj T* -0.0389 Tc 0.7435 Tw (generally will not be available to U.S. holders for Hungarian withholding taxes in excess of the 15 percent treaty rate. Foreign) Tj T* -0.0443 Tc 1.0913 Tw (tax credits generally will not be allowed for withholding taxes imposed in respect of certain short-term or hedged positions in) Tj T* -0.0348 Tc 0.4488 Tw (securities or in respect of arrangements in which a U.S. holder's expected economic profit, after non-U.S. taxes, is insubstantial.) Tj T* -0.0419 Tc 3.6025 Tw (U.S. holders should consult their own advisers concerning the implications of these rules in light of their particular) Tj T* -0.0382 Tc 0 Tw (circumstances.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0594 Tc 2.1801 Tw (Distributions to U.S. holders of additional shares with respect to ADSs or shares that are made as part of a pro rata) Tj -14.4 -12 TD -0.0298 Tc 0.2305 Tw (distribution to all shareholders of the Company generally will not be subject to U.S. federal income tax.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.033 Tc 0.022 Tw (Capital Gains) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0421 Tc 1.1228 Tw (Gains realized by U.S. holders on the sale or other disposition of ADSs or shares generally will be subject to U.S. federal) Tj -14.4 -12 TD -0.0489 Tc 0.4781 Tw (income taxation as capital gains. Deposits and withdrawals of shares by U.S. holders in exchange for ADSs will not result in the) Tj 0 -12 TD -0.0454 Tc 0.2461 Tw (realization of gain or loss for U.S. federal income tax purposes.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0563 Tc 1.9696 Tw (Gain or loss recognized by a U.S. holder that holds ADSs or shares as capital assets will be capital gain or loss. The) Tj -14.4 -12 TD -0.0501 Tc 1.8707 Tw (distinction between capital gain or loss and ordinary income or loss is important for purposes of the limitations on a U.S.) Tj 0 -12 TD -0.0413 Tc 0.6286 Tw (holder's ability to offset capital losses against ordinary income and because individual holders may be entitled to a preferential) Tj T* -0.0478 Tc 1.7867 Tw (tax rate on capital gains realized with respect to ADSs or shares held for more than one year. The preferential tax rate is) Tj T* -0.0413 Tc 0.2419 Tw (generally 20 percent.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0132 Tc 0.0022 Tw (U.S. Information Reporting and Backup Withholding) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0617 Tc 1.1678 Tw (Dividends on ADSs or shares, and payments of the proceeds of a sale of ADSs or shares, paid within the United States or) Tj -14.4 -12 TD -0.0376 Tc 2.6062 Tw (through certain U.S.-related financial intermediaries are subject to information reporting, and may be subject to backup) Tj 0 -12 TD -0.0594 Tc 1.4486 Tw (withholding at a 31 percent rate, unless the holder \(1\) is a corporation or other exempt recipient or \(2\) provides a taxpayer) Tj T* -0.0466 Tc 1.0072 Tw (identification number and certifies that no loss of exemption from backup withholding has occurred. Holders that are not U.S.) Tj T* -0.0603 Tc 1.0609 Tw (persons generally are not subject to information reporting or backup withholding. However, such a holder may be required to) Tj T* -0.0361 Tc 0.69 Tw (provide a certification to establish its non-U.S. status in connection with payments received within the United States or through) Tj T* -0.0101 Tc 0.2108 Tw (U.S.-related financial intermediaries.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 207 0 obj 6654 endobj 205 0 obj << /Type /Page /Parent 192 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 206 0 R >> endobj 209 0 obj << /Length 210 0 R >> stream BT 278.4 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (lx) Tj -165.84 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 8 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.005 Tc 0.0042 Tw (SELECTED CONSOLIDATED FINANCIAL AND STATISTICAL DATA) Tj -84.72 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0345 Tc 0.9231 Tw (This selected consolidated financial and statistical data should be read together with the consolidated financial statements,) Tj -14.4 -12 TD -0.0272 Tc 3.7638 Tw (including the accompanying notes, included in this annual report. MAT\301V derived the financial data from MAT\301V's) Tj 0 -12 TD -0.0572 Tc 2.1123 Tw (consolidated financial statements and the accompanying notes, which PricewaterhouseCoopers K\366nyvvizsg\341l\363 \351s Gazdas\341gi) Tj T* -0.0269 Tc 0.9795 Tw (Tan\341csad\363 Kft., MAT\301V's independent accountants, have audited. This consolidated financial data is qualified by reference to) Tj T* -0.0548 Tc 2.0212 Tw (MAT\301V's consolidated financial statements and accompanying notes, which the Company has prepared in accordance with) Tj T* -0.0344 Tc 0.865 Tw (International Accounting Standards \("IAS"\). IAS differs from U.S. GAAP. For a discussion of the principal differences between) Tj T* -0.0267 Tc 0.2273 Tw (IAS and U.S. GAAP as they relate to the Company, see Note 26 to the consolidated financial statements.) Tj 14.4 -9.84 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -11.52 TD ( ) Tj 176.4 0 TD ( ) Tj 92.88 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj -95.76 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 14.88 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1995) Tj ET q 251.76 625.44 0.24 11.04 re h W n BT 251.76 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 266.16 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1996) Tj ET q 299.04 625.44 0.24 11.04 re h W n BT 299.04 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 313.2 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj ET q 345.84 625.44 0.24 11.04 re h W n BT 345.84 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 360 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj ET q 392.88 625.44 0.24 11.04 re h W n BT 392.88 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 407.28 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET q 440.16 625.44 0.24 11.04 re h W n BT 440.16 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 454.32 627.36 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 206.64 636.48 42.48 0.72 re f 249.12 636.48 0.72 0.72 re f 249.84 636.48 3.84 0.72 re f 253.68 636.48 0.72 0.72 re f 254.4 636.48 42 0.72 re f 296.4 636.48 0.72 0.72 re f 297.12 636.48 3.6 0.72 re f 300.72 636.48 0.72 0.72 re f 301.44 636.48 41.76 0.72 re f 343.2 636.48 0.72 0.72 re f 343.92 636.48 3.6 0.72 re f 347.52 636.48 0.72 0.72 re f 348.24 636.48 42 0.72 re f 390.24 636.48 0.72 0.72 re f 390.96 636.48 3.84 0.72 re f 394.8 636.48 0.72 0.72 re f 395.52 636.48 42 0.72 re f 437.52 636.48 0.72 0.72 re f 438.24 636.48 3.36 0.72 re f 441.6 636.48 0.72 0.72 re f 442.32 636.48 42 0.72 re f BT 201.36 613.92 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 14.16 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 251.76 612.48 0.24 11.04 re h W n BT 251.76 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 265.44 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 299.04 612.48 0.24 11.04 re h W n BT 299.04 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 312.48 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 345.84 612.48 0.24 11.04 re h W n BT 345.84 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 359.28 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 392.88 612.48 0.24 11.04 re h W n BT 392.88 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 406.56 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 440.16 612.48 0.24 11.04 re h W n BT 440.16 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 447.6 614.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0281 Tc 0 Tw (U.S.$\(1\)) Tj ET 206.64 623.52 42.48 0.72 re f 253.68 623.52 42.72 0.72 re f 300.72 623.52 42.48 0.72 re f 347.52 623.52 42.72 0.72 re f 394.8 623.52 42.72 0.72 re f 441.6 623.52 42.72 0.72 re f BT 201.36 601.68 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 56.88 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0457 Tc -0.026 Tw (\(in millions, except per share/ADS amounts\)) Tj -233.28 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0044 Tc 0.0047 Tw (Consolidated Income Statement Data:) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.8 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj -455.52 -12.24 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0137 Tc 0.0761 Tw (Amounts in accordance with IAS) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.8 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj -455.52 -12.24 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0055 Tc 0 Tw (Revenues) Tj 39.84 0 TD /F3 10.08 Tf 0.2006 Tc 0 Tw ( .................................................) Tj 136.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (143,321) Tj 37.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (196,490) Tj 37.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (253,948) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (318,060) Tj 37.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (384,932) Tj 37.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,524) Tj -432.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0415 Tc 0.2422 Tw ( Employee-related expenses) Tj 0 -12 TD 0.2006 Tc 0 Tw (....................) Tj 176.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(25,305\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(30,714\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(37,799\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(46,902\)) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(57,168\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(226\)) Tj -434.4 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0315 Tc 0.1691 Tw ( Depreciation and amortization ..............) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(30,514\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(35,233\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(40,668\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(53,554\)) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(62,145\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(246\)) Tj -434.4 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0611 Tc 0.2617 Tw ( Payments to other network operators) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....) Tj 176.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(16,432\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(22,209\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(27,226\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(35,965\)) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(44,184\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(175\)) Tj -434.4 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0391 Tc 0.2397 Tw ( Cost of telecommunications equipment) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 44.16 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.8 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj -455.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1779 Tc 0.0228 Tw ( sales ...................................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(11,219\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(11,897\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(14,268\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(17,175\)) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(22,392\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1183 Tc 0 Tw (\(89\)) Tj -439.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0661 Tc 0.1346 Tw ( Other operating expenses ......................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(29,183\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(44,366\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(59,933\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(68,355\)) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(77,912\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(309\)) Tj -434.4 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0039 Tc 0.0052 Tw (Total operating expenses ) Tj 106.8 0 TD /F3 10.08 Tf 0.2006 Tc 0 Tw (........................) Tj 69.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(112,653\)) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(144,419\)) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(179,894\)) Tj 43.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(221,951\)) Tj 43.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(263,801\)) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(1,045\)) Tj ET 206.64 464.64 42.48 0.72 re f 253.68 464.64 42.72 0.72 re f 300.72 464.64 42.48 0.72 re f 347.52 464.64 42.72 0.72 re f 394.8 464.64 42.72 0.72 re f 441.6 464.64 42.72 0.72 re f BT 27.84 442.08 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0043 Tc 0.0048 Tw (Operating profit ) Tj 70.32 0 TD /F3 10.08 Tf 0.2006 Tc 0 Tw (.....................................) Tj 106.08 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (30,668) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (52,071) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (74,054) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (96,109) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (121,131) Tj 37.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (479) Tj ET 206.64 451.68 42.48 0.72 re f 253.68 451.68 42.72 0.72 re f 300.72 451.68 42.48 0.72 re f 347.52 451.68 42.72 0.72 re f 394.8 451.68 42.72 0.72 re f 441.6 451.68 42.72 0.72 re f BT 27.84 429.84 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0526 Tc 0.2533 Tw ( Net interest and other charges) Tj 0 -12 TD 0.2006 Tc 0 Tw (...............) Tj 176.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(29,389\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(24,673\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(29,865\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(28,795\)) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(22,133\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1183 Tc 0 Tw (\(88\)) Tj -439.44 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0558 Tc 0.2564 Tw ( Share of associates' results before) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 44.16 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.8 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj -455.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1574 Tc 0.0432 Tw ( income tax .........................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(221\)) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (141) Tj 19.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(238\)) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (302) Tj 19.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,428) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (6) Tj -450.72 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.004 Tc 0.0051 Tw (Profit before income tax ) Tj 104.64 0 TD /F3 10.08 Tf 0.2006 Tc 0 Tw (.........................) Tj 71.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,058) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (27,539) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (43,951) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (67,616) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (100,426) Tj 37.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (397) Tj ET 206.64 390.24 42.48 0.72 re f 253.68 390.24 42.72 0.72 re f 300.72 390.24 42.48 0.72 re f 347.52 390.24 42.72 0.72 re f 394.8 390.24 42.72 0.72 re f 441.6 390.24 42.72 0.72 re f BT 27.84 368.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0334 Tc 0.2341 Tw ( Income tax \(expense\) benefit.) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (.............) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (556) Tj 19.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(791\)) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(303\)) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,267) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(6,911\)) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1183 Tc 0 Tw (\(27\)) Tj -439.44 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0044 Tc 0.0048 Tw (Profit after income tax ) Tj 97.92 0 TD /F3 10.08 Tf 0.2006 Tc 0 Tw (...........................) Tj 78.48 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,614) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (26,748) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (43,648) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (68,883) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (93,515) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (370) Tj ET 206.64 365.04 42.48 0.72 re f 253.68 365.04 42.72 0.72 re f 300.72 365.04 42.48 0.72 re f 347.52 365.04 42.72 0.72 re f 394.8 365.04 42.72 0.72 re f 441.6 365.04 42.72 0.72 re f BT 27.84 343.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.14 Tc 0.0606 Tw ( Minority interest ...................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(1,898\)) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(3,660\)) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(7,614\)) Tj 33.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(10,546\)) Tj 38.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(14,883\)) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1183 Tc 0 Tw (\(59\)) Tj -439.44 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (Profit \(loss\) before extraordinary item) Tj 158.88 0 TD /F3 10.08 Tf 0.2006 Tc 0 Tw ( ..) Tj 17.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(284\)) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (23,088) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (36,034) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (58,337) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (78,632) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (311) Tj ET 206.64 339.84 42.48 0.72 re f 253.68 339.84 42.72 0.72 re f 300.72 339.84 42.48 0.72 re f 347.52 339.84 42.72 0.72 re f 394.8 339.84 42.72 0.72 re f 441.6 339.84 42.72 0.72 re f BT 27.84 318 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1185 Tc 0.0821 Tw ( Extraordinary item ................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (4,877) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 7.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 7.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 8.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj 7.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 39.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0 Tw (-) Tj -452.4 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (Net income ) Tj 50.4 0 TD /F3 10.08 Tf 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (...................................) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (4,593) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (23,088) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (36,034) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (58,337) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (78,632) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (311) Tj ET 206.64 314.64 42.48 0.72 re f 253.68 314.64 42.72 0.72 re f 300.72 314.64 42.48 0.72 re f 347.52 314.64 42.72 0.72 re f 394.8 314.64 42.72 0.72 re f 441.6 314.64 42.72 0.72 re f BT 27.84 289.68 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.044 Tc 0.2446 Tw ( Net income per share\(2\) ..) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (.......) Tj 2.1667 Tc (\205) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (4.43) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (22.26) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (34.74) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (56.24) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (75.81) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (0.30) Tj ET 206.64 300.72 42.48 0.72 re f 206.64 299.28 42.48 0.72 re f 253.68 300.72 42.72 0.72 re f 253.68 299.28 42.72 0.72 re f 300.72 300.72 42.48 0.72 re f 300.72 299.28 42.48 0.72 re f 347.52 300.72 42.72 0.72 re f 347.52 299.28 42.72 0.72 re f 394.8 300.72 42.72 0.72 re f 394.8 299.28 42.72 0.72 re f 441.6 300.72 42.72 0.72 re f 441.6 299.28 42.72 0.72 re f BT 27.84 276.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0069 Tc 0.1938 Tw ( Diluted net income per share\(2\) .........) Tj 2.1667 Tc 0 Tw (\205) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (4.43) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (22.26) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (34.74) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (56.24) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (75.52) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (0.30) Tj ET q 201.36 267.12 0.24 5.76 re h W n BT 201.36 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 204.24 267.12 0.24 5.76 re h W n BT 204.24 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 248.4 267.12 0.24 5.76 re h W n BT 248.4 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 252.96 267.12 0.24 5.76 re h W n BT 252.96 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 295.44 267.12 0.24 5.76 re h W n BT 295.44 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 300 267.12 0.24 5.76 re h W n BT 300 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 342.48 267.12 0.24 5.76 re h W n BT 342.48 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 346.8 267.12 0.24 5.76 re h W n BT 346.8 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 389.28 267.12 0.24 5.76 re h W n BT 389.28 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 394.08 267.12 0.24 5.76 re h W n BT 394.08 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 436.56 267.12 0.24 5.76 re h W n BT 436.56 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 441.12 267.12 0.24 5.76 re h W n BT 441.12 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q q 483.6 267.12 0.24 5.76 re h W n BT 483.6 268.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 27.84 257.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0041 Tc 0.005 Tw (Ratios and other financial data:) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 4.32 0 TD ( ) Tj 44.4 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.8 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj -455.76 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0574 Tc 0.1433 Tw (Operating margin \(%\)\(3\) ..........................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (21.4) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (26.5) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (29.2) Tj 22.08 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.2) Tj 22.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (31.5) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (31.5) Tj -438 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0567 Tc 0.144 Tw (Net income margin \(%\)\(4\) .......................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (3.2) Tj 17.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (11.8) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (14.2) Tj 22.08 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (18.3) Tj 22.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (20.4) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (20.4) Tj -438 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1673 Tc 0.0333 Tw (EBITDA\(5\) ..............................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (61,182) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (87,304) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (114,722) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (149,663) Tj 37.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (183,276) Tj 37.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (725.8) Tj -432.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0277 Tc 0.2283 Tw (Net income per ADS\(6\) ..) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (..............) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (22.14) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (111.29) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (173.69) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (281.20) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (379.05) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.50) Tj -438 -5.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 205.68 201.6 0.24 3.84 re h W n BT 205.68 202.32 TD ( ) Tj ET Q q 248.4 201.6 0.24 3.84 re h W n BT 248.4 202.32 TD ( ) Tj ET Q q 252.96 201.6 0.24 3.84 re h W n BT 252.96 202.32 TD ( ) Tj ET Q q 295.44 201.6 0.24 3.84 re h W n BT 295.44 202.32 TD ( ) Tj ET Q q 300 201.6 0.24 3.84 re h W n BT 300 202.32 TD ( ) Tj ET Q q 342.48 201.6 0.24 3.84 re h W n BT 342.48 202.32 TD ( ) Tj ET Q q 346.8 201.6 0.24 3.84 re h W n BT 346.8 202.32 TD ( ) Tj ET Q q 389.28 201.6 0.24 3.84 re h W n BT 389.28 202.32 TD ( ) Tj ET Q q 394.08 201.6 0.24 3.84 re h W n BT 394.08 202.32 TD ( ) Tj ET Q q 436.56 201.6 0.24 3.84 re h W n BT 436.56 202.32 TD ( ) Tj ET Q q 441.12 201.6 0.24 3.84 re h W n BT 441.12 202.32 TD ( ) Tj ET Q q 483.6 201.6 0.24 3.84 re h W n BT 483.6 202.32 TD ( ) Tj ET Q BT 27.84 192 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0047 Tc 0.0851 Tw (Amounts in accordance with U.S. GAAP) Tj ET q 194.16 189.6 8.16 11.52 re h W n BT 194.16 192 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(7\)) Tj ET Q BT 205.68 192 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0.24 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.56 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 -0.24 TD ( ) Tj 4.8 0.24 TD ( ) Tj 42.48 -0.24 TD ( ) Tj 4.56 0.24 TD ( ) Tj 42.48 0 TD ( ) Tj -455.76 -12.48 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0218 Tc 0.2225 Tw (Net income ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (.......................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (423) Tj 19.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,304) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (30,130) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (58,564) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (78,721) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (312) Tj -440.64 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0543 Tc 0.1464 Tw (Basic earnings per share\(2\) ......................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (0.41) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (15.72) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (29.05) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (56.46) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (75.89) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (0.30) Tj -438 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0691 Tc 0.1315 Tw (Basic earnings per ADS\(6\) .......................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (2.04) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (78.59) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (145.24) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (282.30) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (379.45) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.50) Tj -438 -5.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 205.68 148.8 0.24 3.84 re h W n BT 205.68 149.52 TD ( ) Tj ET Q q 248.4 148.8 0.24 3.84 re h W n BT 248.4 149.52 TD ( ) Tj ET Q q 252.96 148.8 0.24 3.84 re h W n BT 252.96 149.52 TD ( ) Tj ET Q q 295.44 148.8 0.24 3.84 re h W n BT 295.44 149.52 TD ( ) Tj ET Q q 300 148.8 0.24 3.84 re h W n BT 300 149.52 TD ( ) Tj ET Q q 342.48 148.8 0.24 3.84 re h W n BT 342.48 149.52 TD ( ) Tj ET Q q 346.8 148.8 0.24 3.84 re h W n BT 346.8 149.52 TD ( ) Tj ET Q q 389.28 148.8 0.24 3.84 re h W n BT 389.28 149.52 TD ( ) Tj ET Q q 394.08 148.8 0.24 3.84 re h W n BT 394.08 149.52 TD ( ) Tj ET Q q 436.56 148.8 0.24 3.84 re h W n BT 436.56 149.52 TD ( ) Tj ET Q q 441.12 148.8 0.24 3.84 re h W n BT 441.12 149.52 TD ( ) Tj ET Q q 483.6 148.8 0.24 3.84 re h W n BT 483.6 149.52 TD ( ) Tj ET Q BT 27.84 139.2 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0418 Tc 0.1588 Tw (Diluted earnings per share\(2\)...................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (0.41) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (15.72) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (29.05) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (56.46) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (75.61) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (0.30) Tj -438 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0567 Tc 0.1439 Tw (Diluted earnings per ADS\(6\)....................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (2.04) Tj 22.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (78.59) Tj 27.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (145.24) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (282.30) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (378.05) Tj 32.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.50) Tj ET endstream endobj 210 0 obj 37049 endobj 208 0 obj << /Type /Page /Parent 192 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 209 0 R >> endobj 213 0 obj << /Length 214 0 R >> stream BT 276.96 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0619 Tc 0 Tw (lxi) Tj -249.12 698.64 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 173.52 -10.8 TD ( ) Tj 2.88 0 TD ( ) Tj 109.44 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -112.32 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 14.88 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1995) Tj ET q 251.76 736.56 0.24 11.04 re h W n BT 251.76 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 265.92 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1996) Tj ET q 298.56 736.56 0.24 11.04 re h W n BT 298.56 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 312.72 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj ET q 345.36 736.56 0.24 11.04 re h W n BT 345.36 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 359.52 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj ET q 392.16 736.56 0.24 11.04 re h W n BT 392.16 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 406.32 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET q 438.96 736.56 0.24 11.04 re h W n BT 438.96 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 453.12 738.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 206.64 747.6 42.48 0.72 re f 249.12 747.6 0.72 0.72 re f 249.84 747.6 3.6 0.72 re f 253.44 747.6 0.72 0.72 re f 254.16 747.6 41.76 0.72 re f 295.92 747.6 0.72 0.72 re f 296.64 747.6 3.6 0.72 re f 300.24 747.6 0.72 0.72 re f 300.96 747.6 41.76 0.72 re f 342.72 747.6 0.72 0.72 re f 343.44 747.6 3.6 0.72 re f 347.04 747.6 0.72 0.72 re f 347.76 747.6 41.76 0.72 re f 389.52 747.6 0.72 0.72 re f 390.24 747.6 3.6 0.72 re f 393.84 747.6 0.72 0.72 re f 394.56 747.6 41.76 0.72 re f 436.32 747.6 0.72 0.72 re f 437.04 747.6 3.6 0.72 re f 440.64 747.6 0.72 0.72 re f 441.36 747.6 41.76 0.72 re f BT 201.36 725.04 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 14.16 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 251.76 723.6 0.24 11.04 re h W n BT 251.76 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 265.2 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 298.56 723.6 0.24 11.04 re h W n BT 298.56 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 312 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 345.36 723.6 0.24 11.04 re h W n BT 345.36 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 358.8 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 392.16 723.6 0.24 11.04 re h W n BT 392.16 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 405.6 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0514 Tc 0 Tw (HUF) Tj ET q 438.96 723.6 0.24 11.04 re h W n BT 438.96 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 446.4 725.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0281 Tc 0 Tw (U.S.$\(1\)) Tj ET 206.64 734.64 42.48 0.72 re f 253.44 734.64 42.48 0.72 re f 300.24 734.64 42.48 0.72 re f 347.04 734.64 42.48 0.72 re f 393.84 734.64 42.48 0.72 re f 440.64 734.64 42.48 0.72 re f BT 27.84 712.8 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 177.84 0 TD ( ) Tj 64.8 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0515 Tc -0.0318 Tw (\(in millions, except per share amounts\)) Tj -242.64 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.004 Tc 0.0051 Tw (Consolidated Balance Sheet Data:) Tj 177.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.56 0 TD ( ) Tj 23.52 0 TD ( ) Tj 23.28 0 TD ( ) Tj 23.52 0 TD ( ) Tj 23.28 0 TD ( ) Tj 23.52 0 TD ( ) Tj 23.28 0 TD ( ) Tj 23.52 0 TD ( ) Tj 23.28 0 TD ( ) Tj 23.52 0 TD ( ) Tj 23.28 0 TD ( ) Tj -434.4 -12.24 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0137 Tc 0.0761 Tw (Amounts in accordance with IAS) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0071 Tc 0 Tw (Assets:) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0623 Tc 0.263 Tw ( Current assets) Tj 0 -12 TD 0.2006 Tc 0 Tw (........................................) 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Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,268) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,470) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,552) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,400) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,249) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (25) Tj -444.24 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.005 Tc 0.0041 Tw (Total assets ) Tj 51.36 0 TD /F3 10.08 Tf 0.2006 Tc 0 Tw (.............................................) Tj 125.04 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (376,041) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (420,725) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (480,611) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (549,540) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (647,870) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (2,566) Tj ET 206.64 624.24 42.48 0.72 re f 253.44 624.24 42.48 0.72 re f 300.24 624.24 42.48 0.72 re f 347.04 624.24 42.48 0.72 re f 393.84 624.24 42.48 0.72 re f 440.64 624.24 42.48 0.72 re f BT 27.84 599.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (Liabilities and shareholders' equity:) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj ET 206.64 610.32 42.48 0.72 re f 206.64 608.88 42.48 0.72 re f 253.44 610.32 42.48 0.72 re f 253.44 608.88 42.48 0.72 re f 300.24 610.32 42.48 0.72 re f 300.24 608.88 42.48 0.72 re f 347.04 610.32 42.48 0.72 re f 347.04 608.88 42.48 0.72 re f 393.84 610.32 42.48 0.72 re f 393.84 608.88 42.48 0.72 re f 440.64 610.32 42.48 0.72 re f 440.64 608.88 42.48 0.72 re f BT 27.84 586.08 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1333 Tc 0.0673 Tw ( Current liabilities ..................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (70,076) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (83,260) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (87,376) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (104,227) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (115,359) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (458) Tj -439.2 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0869 Tc 0.1137 Tw ( Non current liabilities\(9\) .......................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (149,903) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (154,949) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (167,374) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (175,933) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (181,920) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (720) Tj -439.2 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.14 Tc 0.0606 Tw ( Minority interest ...................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,508) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (9,874) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (17,185) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,135) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (23,012) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (91) Tj -444.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0436 Tc 0.1571 Tw ( Total shareholders' equity\(9\) .................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (149,554) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (172,642) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (208,676) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (257,245) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (327,579) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,297) Tj -431.52 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (Total liabilities and shareholders' equity) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (376,041) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (420,725) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (480,611) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (549,540) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (647,870) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (2,566) Tj ET 206.64 546 42.48 0.72 re f 253.44 546 42.48 0.72 re f 300.24 546 42.48 0.72 re f 347.04 546 42.48 0.72 re f 393.84 546 42.48 0.72 re f 440.64 546 42.48 0.72 re f BT 27.84 521.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf 0.0047 Tc 0.0851 Tw (Amounts in accordance with U.S. GAAP) Tj ET q 194.16 518.64 8.16 11.52 re h W n BT 194.16 521.04 TD /F3 10.08 Tf -0.1074 Tc 0 Tw (\(7\)) Tj ET Q BT 204.24 521.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj ET 206.64 532.08 42.48 0.72 re f 206.64 530.64 42.48 0.72 re f 253.44 532.08 42.48 0.72 re f 253.44 530.64 42.48 0.72 re f 300.24 532.08 42.48 0.72 re f 300.24 530.64 42.48 0.72 re f 347.04 532.08 42.48 0.72 re f 347.04 530.64 42.48 0.72 re f 393.84 532.08 42.48 0.72 re f 393.84 530.64 42.48 0.72 re f 440.64 532.08 42.48 0.72 re f 440.64 530.64 42.48 0.72 re f BT 27.84 507.84 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1525 Tc 0.0482 Tw ( Total assets ...........................................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (376,156) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (420,933) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (480,638) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (549,149) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (647,239) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (2,563) Tj -431.52 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1085 Tc 0.0921 Tw ( Non current liabilities ...........................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (158,033) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (168,059) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (182,363) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (187,633) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (173,611) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (688) Tj -439.2 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0983 Tc 0.1023 Tw ( Shareholders' equity ..............................) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (144,077) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (160,623) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (193,457) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (244,783) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (315,248) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,248) Tj -258 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0043 Tc 0.0049 Tw (Consolidated Cash Flow Data:) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0137 Tc 0.0761 Tw (Amounts in accordance with IAS) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.92 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0283 Tc 0.2289 Tw ( Net cash flows from operating activities) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (47,422) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (74,749) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (90,029) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (135,499) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (138,465) Tj 37.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (548) Tj -439.2 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0101 Tc 0.2107 Tw ( Net cash flows from investing activities .) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(76,069\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(77,185\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(92,398\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(114,357\)) Tj 43.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(126,460\)) Tj 43.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(501\)) Tj -432.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0208 Tc 0.2215 Tw ( Net cash flows from financing activities) Tj 176.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,603) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(4,641\)) Tj 33.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,985) Tj 27.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(26,788\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(9,034\)) Tj 33.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 26.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1183 Tc 0 Tw (\(35\)) Tj -264.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 43.92 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj 4.32 0 TD ( ) Tj 42.48 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0352 Tc 0.2358 Tw (Capital expenditures) Tj 0 -12 TD 0.2006 Tc 0 Tw (.................................) Tj 176.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(85,651\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(87,552\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(94,786\)) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(116,283\)) Tj 43.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(127,678\)) Tj 43.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(505\)) Tj -432.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0771 Tc 0.2777 Tw (Cash dividends declared per share) Tj 0 -12 TD 0.2006 Tc 0 Tw (............) Tj 176.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) Tj 19.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) 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Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) Tj 20.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) Tj 20.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (6,977,733) Tj 45.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (7,758,741) Tj 45.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (8,632,345) Tj -413.76 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0165 Tc 0.2171 Tw (Outgoing international traffic \(millions of) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.52 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1474 Tc 0.0533 Tw ( minutes\)\(14\) ....................................................) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (247.0) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (270.6) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (287.0) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (296.3) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (324.5) Tj -431.52 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0165 Tc 0.2171 Tw (Incoming international traffic \(millions of) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.52 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1474 Tc 0.0533 Tw ( minutes\)\(15\) ....................................................) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (245.5) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (281.2) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (324.6) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (374.5) Tj 27.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (441.2) Tj -431.52 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0131 Tc 0.2137 Tw (Ratio of incoming international traffic to) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 47.52 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj 4.8 0 TD ( ) Tj 45.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0263 Tc 0.1743 Tw ( outgoing international traffic\(14\)\(15\) ...............) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (0.99) Tj 22.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.04) Tj 22.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.13) Tj 22.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.26) Tj 22.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (1.36) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0442 Tc 0.2448 Tw (Number of fixed line employees\(16\) ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.....) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (17,183) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (15,833) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (14,771) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (13,287) Tj 32.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 17.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,093) Tj -426.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0323 Tc 0.2329 Tw (Number of access lines per employee\(16\)\(17\) ......) Tj 205.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (110) Tj 19.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (136) Tj 19.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (163) Tj 19.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (201) Tj 19.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (240) Tj -439.2 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0572 Tc 0.2579 Tw (Penetration per 100 inhabitants\(18\)) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................) Tj 205.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (24) Tj 14.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 35.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (28) Tj 14.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 35.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (32) Tj 14.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 35.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (35) Tj 14.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 35.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (39) Tj -444.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -5.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0033 Tc 0 Tw (Translated into U.S. dollars at the official closing rate of the National Bank of Hungary on December 31, 1999 of U.S. dollar 1.00 = HUF 252.52.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(2\)) Tj 15.84 0 TD 0.0034 Tc 0.4607 Tw (Net income per share under IAS and earnings per share under U.S. GAAP are calculated by dividing net income by the weighted average number of shares) Tj 0 -9.36 TD 0.0035 Tc 0.219 Tw (outstanding during each period. The weighted average numbers of shares used in calculating net income per share and earnings per share was 1,037 million) Tj T* 0.0032 Tc 0.0481 Tw (for the years ended December 31, 1995, 1996, 1997, 1998 and 1999. The weighted average number of shares used in calculating diluted earnings per share is) Tj T* 0.0031 Tc 0 Tw (1,041 million for the year ended December 31, 1999.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(3\)) Tj 15.84 0 TD 0.0039 Tc -0 Tw (Operating margin is the ratio of operating profit to revenues expressed as a percentage.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(4\)) Tj 15.84 0 TD 0.0039 Tc -0 Tw (Net income margin is the ratio of net income to revenues expressed as a percentage.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(5\)) Tj 15.84 0 TD 0.0012 Tc (EBI) Tj 12.24 0 TD 0.0042 Tc 1.136 Tw (TDA represents earnings before extraordinary items, minority interest, share of associates' results before income tax, net interest and other charges,) Tj -12.24 -9.36 TD 0.0033 Tc 1.2001 Tw (income tax, depreciation and amortization. EBITDA is not intended to represent cash flow from operations under IAS or U.S. GAAP and should not be) Tj 0 -9.36 TD 0.0037 Tc 0.1149 Tw (considered as an alternative to net income as an indicator of MAT\301V's operating performance or to cash flows as a measure of liquidity. MAT\301V believes that) Tj T* 0.0038 Tc 0.7196 Tw (EBITDA is a standard measure commonly reported and widely used by analysts, investors and other interested parties in the telecommunications industry.) Tj T* 0.0037 Tc 1.4396 Tw (Accordingly, this information has been disclosed to permit a more complete comparative analysis of MAT\301V's operating performance relative to other) Tj T* 0.004 Tc -0 Tw (companies in its industry.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(6\)) Tj 15.84 0 TD 0.0041 Tc -0 Tw (Each ADS represents five shares.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(7\)) Tj 15.84 0 TD 0.0034 Tc 0.4899 Tw (Under IAS, Westel 900 and Westel 450 are consolidated. Under U.S. GAAP, however, the Company believes that although it holds 51 percent of Westel 900) Tj 0 -9.36 TD 0.0036 Tc 0.7769 Tw (and Westel 450, the ownership rights of the minority shareholder may be considered participatory in nature and would preclude consolidation under U.S.) Tj T* 0.0036 Tc 0.3398 Tw (GAAP. For purposes of the reconciliation to U.S. GAAP, both companies were accounted for using the equity method. There is, however, no difference in net) Tj T* 0.0036 Tc -0 Tw (income or shareholders' equity under U.S. GAAP as a result. See Note 26 to the consolidated financial statements.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(8\)) Tj 15.84 0 TD 0.004 Tc -0 Tw (Fixed assets include intangible assets, which include concession costs, software, leasehold interests and goodwill, less accumulated amortiz) Tj 448.8 0 TD 0.0031 Tc 0 Tw (ation.) Tj -464.64 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(9\)) Tj 15.84 0 TD 0.0032 Tc 0 Tw (The Company has adopted IAS 19 "Employee Benefits" \(revised 1997\), as reflected in opening retained earnings of 1998.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0013 Tc 0 Tw (\(10\)) Tj 15.84 0 TD 0.0039 Tc -0 Tw (Average number of access lines in all of the local primary areas serviced by MAT\301V over the periods indicated.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0013 Tc 0 Tw (\(11\)) Tj 15.84 0 TD 0.0035 Tc -0 Tw (Average number of ISDN channels over the periods indicated.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0013 Tc 0 Tw (\(12\)) Tj 15.84 0 TD 0.0039 Tc -0 Tw (Average number of subscribers over the periods indicated.) 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Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0013 Tc 0 Tw (\(15\)) Tj 15.84 0 TD 0.0038 Tc 0.6129 Tw (Based on data from the settlement process with international carriers. Incoming international traffic includes all Hungary-terminated calls, including those) Tj 0 -9.36 TD 0.004 Tc -0 Tw (calls terminating with subscribers of MAT\301V, other LTOs and mobile providers. It does not include transit traffic.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0013 Tc 0 Tw (\(16\)) Tj 15.84 0 TD 0.003 Tc 0 Tw (Based on the number of employe) Tj 105.12 0 TD 0.0036 Tc 0.1009 Tw (es at the end of the periods indicated, not including employees of MAT\301V's subsidiaries. The number of employees of MAT\301V,) Tj -105.12 -9.36 TD 0.0026 Tc 0 Tw (including all consolidated subsidiaries, at year end was 21,687 in 1995, 19,848 in 1996, 18,187 in 1997, 16,595 in 1998 and 15,377 in 1999.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0013 Tc 0 Tw (\(17\)) Tj 15.84 0 TD 0.0036 Tc 0.7743 Tw (Based on the number of employees, not including employees of MAT\301V's subsidiaries, and the number of access lines, including for these purposes, ISDN) Tj 0 -9.36 TD 0.0036 Tc -0 Tw (channels, at the end of the periods indicated in all of the local primary areas serviced by MAT\301V. Each ISDN channel is counted as one access line.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0013 Tc 0 Tw (\(18\)) Tj 15.84 0 TD 0.0035 Tc -0 Tw (Based on the number of access lines at the relevant period end in MAT\301V's 36 local concession areas. Each ISDN channel is counted as one access line.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (DIVIDEND POLICY) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0577 Tc 0.9784 Tw (The shareholders have approved the payment of cash dividends of HUF 9,335 million, equal to HUF 9 per share, from the) Tj -14.4 -12 TD -0.0668 Tc 1.038 Tw (Company's consolidated net income for 1999. This amount corresponds to 12 percent of 1999 net income. The record date for) Tj 0 -12 TD -0.0442 Tc 0.2448 Tw (payment of the dividends is May 25, 2000.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0563 Tc 0.2696 Tw (Under Hungarian law, the Company is permitted to pay annual dividends out of profits and profit reserves, determined on the) Tj -14.4 -12 TD -0.0625 Tc 2.3546 Tw (basis of the annual unconsolidated accounts prepared in accordance with Hungarian Accounting Regulations, following a) Tj 0 -12 TD -0.0535 Tc 1.4682 Tw (declaration at the annual general meeting of shareholders. Prior to the approval of the annual unconsolidated accounts, the) Tj T* -0.0615 Tc 1.5155 Tw (Company's shareholders at the general meeting may also declare a dividend advance on the basis of an interim accounting.) Tj T* -0.0635 Tc 2.6642 Tw (Under Hungarian law, the general meeting of shareholders may decide to declare a higher or lower dividend than that) Tj T* -0.0721 Tc 0.9413 Tw (recommended by the Board of Directors, provided the Company's shareholders' equity under Hungarian Accounting Standards) Tj T* -0.0466 Tc 1.0205 Tw (would remain positive following the dividend. The general meeting of shareholders may also decide not to declare a dividend,) Tj T* -0.0526 Tc 0.9606 Tw (even if the Board of Directors recommends one. The Company distributes dividends to holders of shares duly registered in the) Tj T* -0.0591 Tc 1.3037 Tw (shareholders' register as the legal owners of shares on the date determined by the general meeting to be the dividend record) Tj T* 0.004 Tc 0 Tw (date.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0565 Tc 0.7119 Tw (The determination of whether to pay dividends, and of the amount of dividends paid, depends upon, among other things, the) Tj -14.4 -12 TD -0.0541 Tc 2.1919 Tw (Company's earnings, financial condition and cash requirements, applicable restrictions on the payment of dividends under) Tj 0 -12 TD -0.0568 Tc 0.3175 Tw (Hungarian law and any other factors the Board of Directors may consider relevant. As of December 31, 1999, the profit reserves) Tj T* -0.035 Tc 0.2356 Tw (available for distribution were approximately HUF 173,000 million.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0586 Tc 1.3582 Tw (The Company will declare any cash dividends in Hungarian Forints. In the case of shares represented by ADSs, the cash) Tj -14.4 -12 TD -0.0476 Tc 1.7797 Tw (dividends are paid to the depository and converted into and paid in U.S. dollars at the prevailing rate of exchange, net of) Tj 0 -12 TD -0.0442 Tc 0.7548 Tw (conversion expenses of the depository and applicable Hungarian withholding tax. Fluctuations in exchange rates will affect the) Tj T* -0.0558 Tc 1.0893 Tw (amount of dividends that ADS holders receive. Dividends paid to non-Hungarian holders, including U.S. holders, of shares or) Tj T* -0.049 Tc 0.2497 Tw (ADSs may be converted into foreign currency and repatriated, subject to Hungarian withholding tax.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 220 0 obj 6301 endobj 218 0 obj << /Type /Page /Parent 212 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 219 0 R >> endobj 222 0 obj << /Length 223 0 R >> stream BT 274.56 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0041 Tc 0 Tw (lxiv) Tj -194.64 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0057 Tc 0.0035 Tw (ITEM 9 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0053 Tc 0.0038 Tw (MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND) Tj 148.32 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0048 Tc 0.0043 Tw (RESULTS OF OPERATIONS) Tj -200.4 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0042 Tc 1.577 Tw (The following discussion should be read together with the consolidated financial statements, including the accompanying) Tj -14.4 -12 TD 0.019 Tc 0.819 Tw (notes, included in this annual report. The consolidated financial statements and the accompanying notes have been prepared in) Tj 0 -12 TD -0.0083 Tc 0.5023 Tw (accordance with IAS. IAS differs in certain respects from U.S. GAAP. For a discussion of the principal differences between IAS) Tj T* -0.0051 Tc 1.257 Tw (and U.S. GAAP as they relate to the Company, see Note 26 to the consolidated financial statements. Revenues and operating) Tj T* -0.023 Tc 0.1128 Tw (expenses discussed under ") Tj 4.4352 Tc -4.3454 Tw (\227 ) Tj -0.0381 Tc 0.1278 Tw (Results of Operations ) Tj 4.4352 Tc -4.3454 Tw (\227 ) Tj 0.0126 Tc 0.0771 Tw (By Segment" do not reflect intersegment eliminations.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 2.2285 Tw (MAT\301V's results of operations and its medium-term prospects should be considered in light of a number of rapid and) Tj -14.4 -12 TD -0.0644 Tc 0.265 Tw (fundamental changes occurring in both the Company and the environment in which it operates:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F1 10.08 Tf 0.0319 Tc 0.5378 Tw (Market Liberalization. ) Tj 96 0 TD /F3 10.08 Tf -0.0473 Tc 1.432 Tw ( In 1999, approximately two thirds of MAT\301V's revenues were derived from areas in which the) Tj -96 -12 TD -0.0382 Tc 0.4939 Tw (Company had exclusive rights and was subject to limited indirect competition. The Company's exclusive rights to provide) Tj 0 -12 TD -0.0457 Tc 0.2597 Tw (long distance service throughout Hungary end in December 2001. Its exclusive rights to provide fixed line local service in) Tj T* -0.0581 Tc 0.5444 Tw (31 local concession areas end in December 2001 and in its five local concession areas end in May 2002. In addition, the) Tj T* -0.0253 Tc 1.381 Tw (Minister and MAT\301V have begun negotiations for a possible earlier termination of MAT\301V's exclusive rights. In such) Tj T* -0.0442 Tc 1.4166 Tw (event, the Company would be subject to competition throughout its business earlier than currently provided for in the) Tj T* -0.0507 Tc 0 Tw (concession.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F1 10.08 Tf 0.0293 Tc 1.5005 Tw (Tariff Rebalancing.) Tj 0 Tc 0.0898 Tw ( ) Tj 84.96 0 TD /F3 10.08 Tf -0.0489 Tc 1.9296 Tw ( MAT\301V has been implementing broad-based tariff reform designed to foster increased usage of) Tj -84.96 -12 TD -0.0254 Tc 0.3761 Tw (telecommunications services, to align its tariffs more closely with costs and to increase its competitiveness in anticipation) Tj 0 -12 TD -0.0397 Tc 0.7954 Tw (of market liberalization. In 2000, local, domestic long distance and international tariffs have decreased in both nominal) Tj T* -0.0541 Tc 1.3798 Tw (and real terms, while subscription charges have significantly increased in both nominal and real terms. The Company) Tj T* -0.023 Tc 1.3037 Tw (expects that the impact of decreasing local, long distance and international tariffs is likely to be offset, in part, by an) Tj T* -0.04 Tc 0.2406 Tw (increase in usage of local, long distance and international telecommunications services.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F1 10.08 Tf -0.012 Tc 2.0218 Tw (Interconnection Fees.) Tj 0 Tc 0.0898 Tw ( ) Tj 93.36 0 TD /F3 10.08 Tf -0.0744 Tc 2.1951 Tw ( Through 1997, interconnection fees were based on a revenue-sharing model under which the) Tj -93.36 -12 TD -0.0331 Tc 0.7004 Tw (Company, as the long distance service provider, was generally able to collect two thirds of the total interconnection fee.) Tj 0 -12 TD -0.0662 Tc 4.9125 Tw (Commencing in 1998, the new interconnection decree moved towards a more cost-based formula. In 1999,) Tj T* -0.0362 Tc 0.3718 Tw (interconnection fees paid by MAT\301V increased and the amount MAT\301V receives from other local telephone operators for) Tj T* -0.0331 Tc 1.9778 Tw (terminating calls decreased. In 2000, interconnection fees paid by MAT\301V for domestic calls have decreased, while) Tj T* -0.0228 Tc 2.1434 Tw (interconnection fees paid by MAT\301V for international calls have further increased. MAT\301V expects that cost-based) Tj T* -0.0306 Tc 0.2312 Tw (interconnection fees will be introduced in the near future.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F1 10.08 Tf 0.0662 Tc 0.0235 Tw (Taxation. ) Tj 41.76 0 TD /F3 10.08 Tf -0.0363 Tc 0.522 Tw ( The Company benefits from reduced corporate income tax. Neither MAT\301V Rt. nor Westel 900 paid corporate) Tj -41.76 -12 TD -0.0592 Tc 1.6278 Tw (income tax from 1994 through 1998. From 1999, for a five year period, both companies are entitled to a 60 percent) Tj 0 -12 TD -0.0253 Tc 0.7745 Tw (reduction in the amount of tax payable, resulting in an effective tax rate of 7.2 percent. Westel 450 utilized a similar 60) Tj T* -0.0486 Tc 0.2493 Tw (percent tax reduction until January 1, 2000.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F1 10.08 Tf 0.0344 Tc 0.0554 Tw (Inflation. ) Tj 41.04 0 TD /F3 10.08 Tf -0.061 Tc 0.9957 Tw ( Annual inflation in Hungary, as measured by changes in the consumer price index, averaged 18.3 percent in) Tj -41.04 -12 TD -0.0531 Tc 0.3421 Tw (1997, 14.3 percent in 1998 and 10.0 percent in 1999. The nominal increase in MAT\301V's revenues over this period derives) Tj 0 -12 TD -0.0254 Tc 1.6361 Tw (largely from the effects of inflation and corresponding adjustments in tariffs, although many of MAT\301V's tariffs have) Tj T* -0.0449 Tc 2.2495 Tw (fallen in real terms and are beginning to decline in nominal terms. The increase in nominal terms of many of the) Tj T* -0.0199 Tc 0.8955 Tw (Company's costs is also attributable to inflation. MAT\301V has not adjusted its financial statements for inflation, because) Tj T* -0.0512 Tc 0.2518 Tw (the Company believes that Hungary does not have the characteristics of a hyperinflationary economy.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 9.84 0 TD /F1 10.08 Tf -0.001 Tc 0 Tw (Devaluation.) Tj 51.84 0 TD /F3 10.08 Tf -0.0402 Tc 0.5797 Tw ( In recent years, the Hungarian Forint has been subject to significant devaluation. The Hungarian Forint is) Tj -51.84 -12 TD -0.0552 Tc 0.2982 Tw (devalued by a fixed monthly percentage against a currency basket. Devaluation can result in both realized and unrealized) Tj 0 -12 TD -0.0441 Tc 2.4733 Tw (foreign exchange losses relating to non-Hungarian Forint denominated liabilities. These losses are included in net) Tj T* -0.0577 Tc 0.2583 Tw (interest and other charges relating to the Company's foreign currency denominated indebtedness.) Tj -28.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0053 Tc 0.0038 Tw (Results of Operations ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.003 Tc 0 Tw (Total) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 223 0 obj 8379 endobj 221 0 obj << /Type /Page /Parent 212 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F5 40 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 222 0 R >> endobj 225 0 obj << /Length 226 0 R >> stream BT 276 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0138 Tc 0 Tw (lxv) Tj -248.16 693.36 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F0 10.08 Tf -0.0164 Tc 0.0053 Tw (Total Revenues) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.045 Tc 0.4225 Tw (MAT\301V's total revenues grew by 51.6 percent from HUF 253,948 million in 1997 to HUF 384,932 million in 1999. Increases) Tj -14.4 -12 TD -0.0418 Tc 1.2151 Tw (in revenues from fixed line telecommunications services have been driven by increases in tariffs, growth in the net number of) Tj 0 -12 TD -0.0571 Tc 3.6177 Tw (access lines, increases in aggregate usage and the introduction of new products and services. Revenues from mobile) Tj T* -0.0662 Tc 0.8135 Tw (telecommunications services grew by 71.8 percent from 1997 through 1999 driven by a rapid increase in the mobile subscriber) Tj T* -0.0479 Tc 0 Tw (base.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0232 Tc 0.0121 Tw (Total Operating Expenses) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0605 Tc 1.8141 Tw (The Company's total operating expenses increased by 46.6 percent from HUF 179,894 million in 1997 to HUF 263,801) Tj -14.4 -12 TD -0.0383 Tc 0.559 Tw (million in 1999. MAT\301V's total operating expenses have, however, declined as a percentage of total revenues from 70.8 percent) Tj 0 -12 TD -0.0457 Tc 1.1314 Tw (in 1997 to 68.5 percent in 1999. Depreciation and amortization and employee-related expenses are MAT\301V's most significant) Tj T* -0.051 Tc 0.6677 Tw (operating expenses. Depreciation and amortization increased throughout the period as a result of MAT\301V's ongoing investment) Tj T* -0.0491 Tc 0.5781 Tw (in its networks. Depreciation and amortization as a percentage of total revenues increased slightly from 16.0 percent in 1997 to) Tj T* -0.0538 Tc 1.4685 Tw (16.1 percent in 1999. Employee-related expenses increased throughout the period as the effect of average wage increases in) Tj T* -0.051 Tc 2.6011 Tw (nominal terms has more than offset the effect of reductions in the number of employees. Other operating expenses as a) Tj T* -0.0505 Tc 0.2511 Tw (percentage of total revenues decreased from 23.6 percent in 1997 to 20.2 percent in 1999 due to efficiency improvements.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0303 Tc 0.0193 Tw (Total Operating Profit) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0494 Tc 1.4374 Tw (The Company's total operating profit grew by 63.6 percent from HUF 74,054 million in 1997 to HUF 121,131 million in) Tj -14.4 -12 TD -0.0518 Tc 0.2524 Tw (1999, as total revenues grew at a faster rate than total operating expenses.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 226 0 obj 2955 endobj 224 0 obj << /Type /Page /Parent 212 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 225 0 R >> endobj 228 0 obj << /Length 229 0 R >> stream BT 274.56 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0041 Tc 0 Tw (lxvi) Tj -246.72 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0053 Tc 0.0038 Tw (Results of Operations ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.005 Tc 0.0041 Tw (By Segment) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.05 Tc 0.2507 Tw (The following table sets forth revenues, operating expenses and operating profit by segment:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -12 TD ( ) Tj 252 0 TD ( ) Tj 57.84 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj -309.84 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 252 0 TD ( ) Tj 29.04 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 288.72 705.84 57.6 0.72 re f 346.32 705.84 0.72 0.72 re f 347.04 705.84 10.08 0.72 re f 357.12 705.84 0.72 0.72 re f 357.84 705.84 56.88 0.72 re f 414.72 705.84 0.72 0.72 re f 415.44 705.84 10.08 0.72 re f 425.52 705.84 0.72 0.72 re f 426.24 705.84 56.88 0.72 re f BT 27.84 683.28 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 252 0 TD ( ) Tj 71.76 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 288.72 692.88 57.6 0.72 re f 357.12 692.88 57.6 0.72 re f 425.52 692.88 57.6 0.72 re f BT 27.84 671.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0394 Tc 0 Tw (Revenues:) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 65.52 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1828 Tc 0.0179 Tw (Fixed line .............................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (206,096) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (256,929) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (302,230) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1882 Tc 0.0124 Tw (Mobile ..................................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (67,681) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (88,142) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (117,336) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1138 Tc 0.0868 Tw (Intersegment eliminations\(1\) ................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(19,829\)) Tj 44.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(27,011\)) Tj 44.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(34,634\)) Tj -420.24 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1887 Tc 0.0119 Tw ( Total ...............................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (253,948) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (318,060) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (384,932) Tj ET 288.72 630.96 57.6 0.72 re f 357.12 630.96 57.6 0.72 re f 425.52 630.96 57.6 0.72 re f BT 276.96 606 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj ET 288.72 617.04 57.6 0.72 re f 288.72 615.6 57.6 0.72 re f 357.12 617.04 57.6 0.72 re f 357.12 615.6 57.6 0.72 re f 425.52 617.04 57.6 0.72 re f 425.52 615.6 57.6 0.72 re f BT 27.84 592.8 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0667 Tc 0.2674 Tw (Operating expenses:) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 65.52 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1828 Tc 0.0179 Tw (Fixed line .............................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (151,304) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (186,409) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (216,759) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1882 Tc 0.0124 Tw (Mobile ..................................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (48,419) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (62,553) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (81,676) Tj -426.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1138 Tc 0.0868 Tw (Intersegment eliminations\(1\) ................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(19,829\)) Tj 44.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(27,011\)) Tj 44.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(34,634\)) Tj -420.24 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1887 Tc 0.0119 Tw ( Total ...............................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (179,894) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (221,951) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (263,801) Tj ET 288.72 552.72 57.6 0.72 re f 357.12 552.72 57.6 0.72 re f 425.52 552.72 57.6 0.72 re f BT 276.96 527.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj ET 288.72 538.8 57.6 0.72 re f 288.72 537.36 57.6 0.72 re f 357.12 538.8 57.6 0.72 re f 357.12 537.36 57.6 0.72 re f 425.52 538.8 57.6 0.72 re f 425.52 537.36 57.6 0.72 re f BT 27.84 514.56 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0375 Tc 0.2381 Tw (Operating profit:) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 65.52 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1828 Tc 0.0179 Tw (Fixed line .............................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (54,792) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (70,520) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (85,471) Tj -426.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1882 Tc 0.0124 Tw (Mobile ..................................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (19,262) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (25,589) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (35,660) Tj -426.48 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1887 Tc 0.0119 Tw ( Total ...............................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (74,054) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (96,109) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (121,131) Tj ET 288.72 486.72 57.6 0.72 re f 357.12 486.72 57.6 0.72 re f 425.52 486.72 57.6 0.72 re f 288.72 472.8 57.6 0.72 re f 288.72 471.36 57.6 0.72 re f 357.12 472.8 57.6 0.72 re f 357.12 471.36 57.6 0.72 re f 425.52 472.8 57.6 0.72 re f 425.52 471.36 57.6 0.72 re f BT 27.84 461.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0039 Tc -0 Tw (Intersegment eliminations include primarily interconnection fees between the fixed line and mobile networks.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0322 Tc 0.0211 Tw (Fixed Line Telecommunications Segment) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0274 Tc 0.6342 Tw (MAT\301V's fixed line telecommunications segment includes local, domestic and international long distance telephone services) Tj -14.4 -12 TD -0.0506 Tc 2.2246 Tw (as well as value added digifon services such as call waiting, itemized billing and telephone and private branch exchange) Tj 0 -12 TD -0.0426 Tc 2.3713 Tw (equipment rental. This segment also consists of leased line and data transmission services, equipment sales, construction,) Tj T* -0.0537 Tc 0.2543 Tw (maintenance and other services.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf -0.085 Tc 0 Tw (Revenues) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0387 Tc 0.2394 Tw (The following table sets forth information regarding revenues for the fixed line telecommunications segment:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 282.96 0.24 11.04 re h W n BT 276.96 285.12 TD ( ) Tj ET Q BT 300 284.88 TD ( ) Tj ET q 330.96 282.96 0.24 11.04 re h W n BT 330.96 285.12 TD ( ) Tj ET Q BT 354 284.88 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 257.76 0.24 11.04 re h W n BT 389.04 259.68 TD ( ) Tj ET Q BT 389.04 259.68 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 257.76 0.24 11.04 re h W n BT 442.32 259.68 TD ( ) Tj ET Q BT 442.32 259.68 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 268.8 43.2 0.72 re f 267.12 268.8 0.72 0.72 re f 267.84 268.8 10.08 0.72 re f 277.92 268.8 0.72 0.72 re f 278.64 268.8 42.48 0.72 re f 321.12 268.8 0.72 0.72 re f 321.84 268.8 10.08 0.72 re f 331.92 268.8 0.72 0.72 re f 332.64 268.8 42.48 0.72 re f 385.92 268.8 43.2 0.72 re f 429.12 268.8 0.72 0.72 re f 429.84 268.8 10.08 0.72 re f 439.92 268.8 0.72 0.72 re f 440.64 268.8 42.48 0.72 re f BT 27.84 246.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 50.16 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj 111.84 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 255.84 43.2 0.72 re f 277.92 255.84 43.2 0.72 re f 331.92 255.84 43.2 0.72 re f 385.92 255.84 43.2 0.72 re f 439.92 255.84 43.2 0.72 re f BT 27.84 234 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0394 Tc 0 Tw (Revenues:) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0702 Tc 0.2708 Tw ( Subscriptions, connections and other charges) Tj 210.48 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (41,479) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (55,673) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (63,413) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (34.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (13.9) Tj -436.8 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0588 Tc 0.1418 Tw ( Domestic traffic revenues ..............) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (........) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (85,319) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (108,425) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (134,071) Tj 35.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (27.1) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (23.7) Tj -436.8 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1502 Tc 0.0505 Tw ( Other usage ...............................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (19,911) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (26,807) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (26,999) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (34.6) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (0.7) Tj -441.84 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0298 Tc 0.2305 Tw ( International traffic revenues) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (35,748) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (38,792) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (43,807) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (8.5) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (12.9) Tj -436.8 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0784 Tc 0.1223 Tw ( Other services .............) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (...........................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (23,639) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (27,232) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (33,940) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (15.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (24.6) Tj -252.48 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 18.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (206,096) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (256,929) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (302,230) Tj 35.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.6 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (24.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (17.6) Tj ET 223.92 157.68 43.2 0.72 re f 277.92 157.68 43.2 0.72 re f 331.92 157.68 43.2 0.72 re f 223.92 143.76 43.2 0.72 re f 223.92 142.32 43.2 0.72 re f 277.92 143.76 43.2 0.72 re f 277.92 142.32 43.2 0.72 re f 331.92 143.76 43.2 0.72 re f 331.92 142.32 43.2 0.72 re f BT 27.84 132.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0122 Tc 1.9976 Tw (Subscriptions, Connections and Other Charges. ) Tj 0 Tc 0.0898 Tw ( ) Tj 209.28 0 TD /F3 10.08 Tf -0.0606 Tc 2.2112 Tw (Revenues from subscriptions, connections and other charges consist of) Tj ET endstream endobj 229 0 obj 18666 endobj 227 0 obj << /Type /Page /Parent 212 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 228 0 R >> endobj 232 0 obj << /Length 233 0 R >> stream BT 273.12 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0148 Tc 0 Tw (lxvii) Tj -245.28 693.6 TD /F3 10.08 Tf -0.048 Tc 0.9969 Tw (revenues from monthly subscription fees, entrance fees, fees for digifon services and rental charges for telephones and private) Tj 0 -12 TD -0.063 Tc 0.306 Tw (branch exchanges. Revenues from subscriptions, connections and other charges are principally a function of the number and mix) Tj T* -0.065 Tc 0.2657 Tw (of residential, business and ISDN access lines and corresponding charges.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0677 Tc 1.8495 Tw (Revenues from subscriptions, connections and other charges increased in both 1998 and 1999 principally as a result of) Tj -14.4 -12 TD -0.0604 Tc 0.849 Tw (nominal increases in standard monthly subscription fees and the rapid increase in access lines as well as increases in usage of) Tj 0 -12 TD -0.0584 Tc 0.259 Tw (digifon services and telephone and private branch exchange rentals.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0574 Tc 0.258 Tw (Monthly subscription fees increased in nominal terms by 16.7 percent in 1998 and 31.8 percent in 1999.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F3 10.08 Tf -0.0624 Tc 0.2631 Tw (Entrance fees for business customers remained constant in nominal terms from July 20, 1995 through the end of 1996 and fell) Tj -14.4 -12 TD -0.0563 Tc 0.8741 Tw (by 20 percent in nominal terms with effect from January 15, 1997. On October 15, 1997, the business entrance fee was further) Tj 0 -12 TD -0.0465 Tc 0.2472 Tw (decreased by approximately 17 percent. Entrance fees for residential customers fell by ten percent on October 15, 1997.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0497 Tc 1.6019 Tw (For entrance fees charged prior to October 15, 1997, the capital contribution portion of the fee was treated as deferred) Tj -14.4 -12 TD -0.0512 Tc 0.2759 Tw (revenue and credited to revenue over the period the related assets are depreciated. The portion of the entrance fee covering non-) Tj 0 -12 TD -0.054 Tc 0.588 Tw (capitalized expenses was recognized as revenue upon connection. After October 15, 1997, the entire entrance fee is recorded as) Tj T* -0.046 Tc 0.3667 Tw (revenue upon connection reflecting the change in related legislation, which eliminated refunds and the advanced development of) Tj T* -0.0289 Tc 0.2295 Tw (the network.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0562 Tc 0.9137 Tw (The growth in access lines has been a significant driver in the growth of subscriptions, connections and other charges. The) Tj -14.4 -12 TD -0.0425 Tc 0.2431 Tw (table below sets forth information regarding average access lines in MAT\301V's local concession areas.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 479.28 0.24 11.04 re h W n BT 276.96 481.44 TD ( ) Tj ET Q BT 300 481.2 TD ( ) Tj ET q 330.96 479.28 0.24 11.04 re h W n BT 330.96 481.44 TD ( ) Tj ET Q BT 355.44 481.2 TD ( ) Tj 24.96 0.24 TD ( ) Tj 34.56 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -387.12 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 37.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 127.68 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -382.32 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 15.36 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 34.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 391.2 454.08 0.24 11.04 re h W n BT 391.2 456 TD ( ) Tj ET Q BT 391.2 456 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.2 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 443.28 454.08 0.24 11.04 re h W n BT 443.28 456 TD ( ) Tj ET Q BT 443.28 456 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 465.12 43.2 0.72 re f 267.12 465.12 0.72 0.72 re f 267.84 465.12 10.08 0.72 re f 277.92 465.12 0.72 0.72 re f 278.64 465.12 42.48 0.72 re f 321.12 465.12 0.72 0.72 re f 321.84 465.12 10.08 0.72 re f 331.92 465.12 0.72 0.72 re f 332.64 465.12 45.84 0.72 re f 388.8 465.12 42 0.72 re f 430.8 465.12 0.72 0.72 re f 431.52 465.12 9.84 0.72 re f 441.36 465.12 0.72 0.72 re f 442.08 465.12 41.04 0.72 re f BT 27.84 443.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 86.4 -0.24 TD ( ) Tj 78.96 0.24 TD ( ) Tj 34.32 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 452.16 43.2 0.72 re f 277.92 452.16 43.2 0.72 re f 331.92 452.16 46.56 0.72 re f 388.8 452.16 42 0.72 re f 441.36 452.16 41.76 0.72 re f BT 27.84 430.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0418 Tc 0.2424 Tw (Average access lines:) Tj 195.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 46.32 0 TD ( ) Tj 10.8 0 TD ( ) Tj 22.08 0 TD ( ) Tj 26.4 0 TD ( ) Tj 26.16 0 TD ( ) Tj -434.88 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.007 Tc 0.1937 Tw ( Residential ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (.........................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (1,886,338) Tj 51.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,080,997) Tj 50.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,271,249) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (10.3) Tj 28.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.1) Tj -441.84 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0517 Tc 0.2523 Tw ( Business ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (............................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (342,404) Tj 43.44 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (355,004) Tj 42.96 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (371,823) Tj 36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (3.7) Tj 23.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (4.7) Tj -441.84 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.06 Tc 0.2606 Tw ( Public payphones) Tj 0 -12 TD 0.2006 Tc 0 Tw (.......................................) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (34,799) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (36,242) Tj 37.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (35,987) Tj 30.96 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (4.1) Tj 23.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 0 Tw (\(0.7\)) Tj -435.6 -24.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1836 Tc 0.017 Tw ( Total ......................................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,263,541) Tj 51.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,472,243) Tj 50.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,679,059) Tj 51.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.2) Tj 23.28 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (8.4) Tj ET 223.92 378.48 43.2 0.72 re f 277.92 378.48 43.2 0.72 re f 331.92 378.48 46.56 0.72 re f BT 27.84 356.64 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1428 Tc 0.0579 Tw (ISDN channels .............................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (23,414) Tj 38.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (52,434) Tj 37.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (88,125) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (123.9) Tj 33.36 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (68.1) Tj -436.8 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1836 Tc 0.017 Tw ( Total ......................................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,286,955) Tj 51.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,524,677) Tj 50.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.073 Tc 0 Tw (2,767,184) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (10.4) Tj 28.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.6) Tj ET 223.92 353.28 43.2 0.72 re f 277.92 353.28 43.2 0.72 re f 331.92 353.28 46.56 0.72 re f 223.92 339.36 43.2 0.72 re f 223.92 337.92 43.2 0.72 re f 277.92 339.36 43.2 0.72 re f 277.92 337.92 43.2 0.72 re f 331.92 339.36 46.56 0.72 re f 331.92 337.92 46.56 0.72 re f BT 27.84 328.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0286 Tc 1.5177 Tw (The increase in access lines throughout the period reflects the rapid build out of MAT\301V's network. The majority of this) Tj -14.4 -12 TD -0.0442 Tc 0.5781 Tw (increase related to residential lines. The number of ISDN channels, used primarily by business customers, is currently small but) Tj 0 -12 TD -0.0669 Tc 0.2676 Tw (has grown rapidly since the introduction of ISDN in Hungary in November 1995.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0235 Tc 0.5933 Tw (Domestic Traffic Revenues. ) Tj 117.12 0 TD /F3 10.08 Tf -0.0365 Tc 1.1114 Tw ( Domestic traffic revenues consist of traffic charges for local and domestic long distance calls) Tj -131.52 -12 TD -0.0238 Tc 1.6644 Tw (placed by MAT\301V's subscribers. Domestic traffic revenues are a function of tariffs, the total number of telephone calls, the) Tj 0 -12 TD -0.0384 Tc 1.103 Tw (distribution of call duration, the time of day and the mix between more costly domestic long distance calls and less expensive) Tj T* 0.0133 Tc 0.1874 Tw (local calls.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.05 Tc 1.1439 Tw (Domestic traffic revenues increased throughout the period principally as a result of the rapid increase in access lines and) Tj -14.4 -12 TD -0.0222 Tc 1.1486 Tw (nominal increases in tariffs. The effects of tariff and access line increases were mitigated by the fact that the majority of new) Tj 0 -12 TD -0.0438 Tc 0.2444 Tw (access lines were connected to low-volume residential customers.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0504 Tc 0.335 Tw (From 1997 through 1999, MAT\301V increased its local tariffs by an average of 48.4 percent in nominal terms and 18.0 percent) Tj -14.4 -12 TD -0.0267 Tc 0.5656 Tw (in real terms. Over the same period, MAT\301V increased its tariffs for calls from fixed line to mobile telephones by an average of) Tj 0 -12 TD -0.0427 Tc 0.4113 Tw (23.1 percent in nominal terms and decreased by an average of 2.1 percent in real terms. MAT\301V's domestic long distance tariffs) Tj T* -0.0651 Tc 0.8985 Tw (increased by an average of 10.0 percent in nominal terms and decreased by an average of 12.5 percent in real terms over this) Tj T* -0.0361 Tc 0 Tw (period.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 233 0 obj 13086 endobj 230 0 obj << /Type /Page /Parent 231 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 232 0 R >> endobj 235 0 obj << /Length 236 0 R >> stream BT 271.68 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0219 Tc 0 Tw (lxviii) Tj -229.44 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf 0.0117 Tc 0.318 Tw (Other Usage. ) Tj 56.88 0 TD /F3 10.08 Tf -0.0507 Tc 0.8273 Tw ( Revenues from other usage include amounts related to domestic and international long distance services that) Tj -71.28 -12 TD -0.0377 Tc 2.7434 Tw (MAT\301V provides to customers in non-MAT\301V Local Primary Areas or to mobile customers. Revenues from other usage) Tj 0 -12 TD -0.0552 Tc 0.2558 Tw (increased in both 1998 and 1999 mainly as a result of growth in the volume of traffic.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.019 Tc 2.7108 Tw (International Traffic Revenues. ) Tj 0 Tc 0.0898 Tw ( ) Tj 142.56 0 TD /F3 10.08 Tf -0.0478 Tc 3.1044 Tw (Revenues from international traffic consist of revenues from outgoing and incoming) Tj -156.96 -12 TD -0.0414 Tc 1.6649 Tw (international services. The following table sets forth information concerning international traffic revenues and outgoing and) Tj 0 -12 TD -0.0193 Tc 0.2199 Tw (incoming international traffic:) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 659.28 0.24 11.04 re h W n BT 276.96 661.44 TD ( ) Tj ET Q BT 300 661.2 TD ( ) Tj ET q 330.96 659.28 0.24 11.04 re h W n BT 330.96 661.44 TD ( ) Tj ET Q BT 354 661.2 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 634.08 0.24 11.04 re h W n BT 389.04 636 TD ( ) Tj ET Q BT 389.04 636 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 634.08 0.24 11.04 re h W n BT 442.32 636 TD ( ) Tj ET Q BT 442.32 636 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 645.12 43.2 0.72 re f 267.12 645.12 0.72 0.72 re f 267.84 645.12 10.08 0.72 re f 277.92 645.12 0.72 0.72 re f 278.64 645.12 42.48 0.72 re f 321.12 645.12 0.72 0.72 re f 321.84 645.12 10.08 0.72 re f 331.92 645.12 0.72 0.72 re f 332.64 645.12 42.48 0.72 re f 385.92 645.12 43.2 0.72 re f 429.12 645.12 0.72 0.72 re f 429.84 645.12 10.08 0.72 re f 439.92 645.12 0.72 0.72 re f 440.64 645.12 42.48 0.72 re f BT 27.84 623.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 50.4 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0652 Tc -0.0456 Tw (\(in HUF millions,) Tj 111.6 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 632.16 43.2 0.72 re f 277.92 632.16 43.2 0.72 re f 331.92 632.16 43.2 0.72 re f 385.92 632.16 43.2 0.72 re f 439.92 632.16 43.2 0.72 re f BT 27.84 610.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 195.12 0 TD ( ) Tj 35.76 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0352 Tc -0.0155 Tw (except traffic figures\)) Tj 126.24 -0.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.04 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj -434.16 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0394 Tc 0 Tw (Revenues:) Tj 195.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 23.04 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj -434.16 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0277 Tc 0.2283 Tw ( Outgoing international traffic revenue\(1\) ..) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (19,118) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (20,897) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (21,215) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 38.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (9.3) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (1.5) Tj -441.6 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0277 Tc 0.2283 Tw ( Incoming international traffic revenue\(2\) ..) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,630) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (17,895) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (22,592) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (7.6) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (26.2) Tj -252.24 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (35,748) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (38,792) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (43,807) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 38.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (8.5) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (12.9) Tj ET 223.92 570.24 43.2 0.72 re f 277.92 570.24 43.2 0.72 re f 331.92 570.24 43.2 0.72 re f BT 212.16 545.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj ET 223.92 556.32 43.2 0.72 re f 223.92 554.88 43.2 0.72 re f 277.92 556.32 43.2 0.72 re f 277.92 554.88 43.2 0.72 re f 331.92 556.32 43.2 0.72 re f 331.92 554.88 43.2 0.72 re f BT 27.84 532.08 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.039 Tc 0.2396 Tw (Traffic in thousand of minutes:) Tj 195.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 23.04 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj -434.16 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0787 Tc 0.122 Tw ( Outgoing international\(3\) ..........................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (187,862) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (188,412) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (192,356) Tj 35.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 38.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (0.3) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (2.1) Tj -441.6 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0762 Tc 0.1245 Tw ( Incoming international\(4\) .........................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (324,623) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (374,546) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (441,193) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (15.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (17.8) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.004 Tc 0.1136 Tw (Excludes revenues from calls placed by subscribers of other local telephone operators and mobile service providers. MAT\301V's revenues relating to these calls) Tj 0 -9.36 TD 0.0037 Tc -0 Tw (are included in revenues from other usage.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(2\)) Tj 15.84 0 TD 0.0041 Tc -0 Tw (Includes revenues from calls terminating with subscribers of MAT\301V, other local telephone operators and mobile service providers, transit traf) Tj 460.32 0 TD 0.0035 Tc 0.2398 Tw (fic via Hungary) Tj -460.32 -9.36 TD 0.004 Tc -0 Tw (and other international services.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(3\)) Tj 15.84 0 TD 0.004 Tc 0.3651 Tw (Excludes calls placed by subscribers of other local telephone operators and mobile service providers. MAT\301V's revenues relating to these calls are included) Tj 0 -9.36 TD 0.0039 Tc -0 Tw (in revenues from other usage.) Tj -15.84 -5.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -8.16 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(4\)) Tj 15.84 0 TD 0.004 Tc 1.1274 Tw (Includes calls terminating with subscribers of MAT\301V, other local telephone operators and mobile service providers. Does not include transit traffic via) Tj 0 -9.36 TD 0.0028 Tc 0 Tw (Hungary.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0406 Tc 2.9746 Tw (Revenues from outgoing international traffic are a function of tariffs and the number, duration and mix of calls to) Tj -14.4 -12 TD -0.0371 Tc 0.6663 Tw (destinations outside Hungary placed by MAT\301V's fixed line subscribers. Revenues from outgoing international traffic increased) Tj 0 -12 TD -0.0418 Tc 2.1751 Tw (in 1998 principally as a result of a 10.2 percent increase in tariffs. In 1999, revenues from outgoing international traffic) Tj T* -0.0427 Tc 0.4033 Tw (increased as a result of increased number of access lines, partly offset by a tariff decrease of 1.2 percent. The Company believes) Tj T* -0.0384 Tc 1.4769 Tw (that the increase in outgoing minutes has been limited by the relatively high number of international calls placed by mobile) Tj T* -0.045 Tc 0.2456 Tw (subscribers, the rapid growth of private leased lines and PBX) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0108 Tc 0.2115 Tw (s with call blocking capability.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0379 Tc 0.7186 Tw (Revenues from incoming international traffic consist of amounts paid by foreign carriers for the use of MAT\301V's network to) Tj -14.4 -12 TD -0.0509 Tc 0.5182 Tw (carry calls placed by their customers. Revenues from incoming international traffic increased in 1998 and 1999 principally as a) Tj 0 -12 TD -0.0396 Tc 1.0026 Tw (result of the increase in international incoming traffic and the continuing devaluation of the Hungarian Forint against special) Tj T* -0.0457 Tc 1.2863 Tw (drawing rights, in which international settlement payments between telecommunications providers are generally denominated.) Tj T* -0.0611 Tc 2.1151 Tw (The Hungarian Forint depreciated against the special drawing rights 13.5 percent in 1998 and 11.4 percent in 1999. The) Tj T* -0.0329 Tc 1.0293 Tw (positive effect of the devaluation of the Hungarian Forint and the increase in incoming traffic more than offset the continuing) Tj T* -0.0422 Tc 0.2428 Tw (decline in international settlement rates, which fell by an average of 16.4 percent in 1998 and 12.2 percent in 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0 Tc 0.3292 Tw (Other Services. ) Tj 65.76 0 TD /F3 10.08 Tf -0.0469 Tc 0.8235 Tw ( Revenues from other services consist of revenues from leased lines, data transmission and related services,) Tj -80.16 -12 TD -0.0515 Tc 0.2521 Tw (telecommunications equipment sales and construction, maintenance and other.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.04 Tc 0.2407 Tw (The following table sets forth data relating to revenues from other services:) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 131.52 0.24 11.04 re h W n BT 276.96 133.68 TD ( ) Tj ET Q BT 300 133.44 TD ( ) Tj ET q 330.96 131.52 0.24 11.04 re h W n BT 330.96 133.68 TD ( ) Tj ET Q BT 354 133.44 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 106.32 0.24 11.04 re h W n BT 389.04 108.24 TD ( ) Tj ET Q BT 389.04 108.24 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 106.32 0.24 11.04 re h W n BT 442.32 108.24 TD ( ) Tj ET Q BT 442.32 108.24 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 117.36 43.2 0.72 re f 267.12 117.36 0.72 0.72 re f 267.84 117.36 10.08 0.72 re f 277.92 117.36 0.72 0.72 re f 278.64 117.36 42.48 0.72 re f 321.12 117.36 0.72 0.72 re f 321.84 117.36 10.08 0.72 re f 331.92 117.36 0.72 0.72 re f 332.64 117.36 42.48 0.72 re f 385.92 117.36 43.2 0.72 re f 429.12 117.36 0.72 0.72 re f 429.84 117.36 10.08 0.72 re f 439.92 117.36 0.72 0.72 re f 440.64 117.36 42.48 0.72 re f 223.92 104.4 43.2 0.72 re f 277.92 104.4 43.2 0.72 re f 331.92 104.4 43.2 0.72 re f 385.92 104.4 43.2 0.72 re f 439.92 104.4 43.2 0.72 re f endstream endobj 236 0 obj 15035 endobj 234 0 obj << /Type /Page /Parent 231 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 235 0 R >> endobj 238 0 obj << /Length 239 0 R >> stream BT 274.32 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (lxix) Tj -246.48 694.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 50.16 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj 111.84 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj -385.44 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0405 Tc 0.2411 Tw (Other services:) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1542 Tc 0.0465 Tw ( Leased lines ..............................................) 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Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,264) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,121) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (11,464) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (54.3) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (41.2) Tj -436.56 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0018 Tc 0.1988 Tw ( Telecommunications equipment sales ........) 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Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,674) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,388) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,630) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(37.9\)) Tj 34.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (4.5) Tj -257.28 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (23,639) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (27,232) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (33,940) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (15.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (24.6) Tj ET 223.92 680.4 43.2 0.72 re f 277.92 680.4 43.2 0.72 re f 331.92 680.4 43.2 0.72 re f 223.92 666.48 43.2 0.72 re f 223.92 665.04 43.2 0.72 re f 277.92 666.48 43.2 0.72 re f 277.92 665.04 43.2 0.72 re f 331.92 666.48 43.2 0.72 re f 331.92 665.04 43.2 0.72 re f BT 27.84 655.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0658 Tc 2.8307 Tw (Revenues from other services increased in both 1998 and 1999 principally as a result of the growth in demand for) Tj -14.4 -12 TD -0.0563 Tc 0.2569 Tw (sophisticated transmission services such as managed leased lines, ISDN-based data transmission services and Internet services.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.0246 Tc 0.0651 Tw (Operating Expenses) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0552 Tc 0.8651 Tw (Operating expenses consist of employee-related expenses, depreciation and amortization and other operating expenses. The) Tj -14.4 -12 TD -0.0506 Tc 0.2513 Tw (following table sets forth information regarding operating expenses:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 546 0.24 11.04 re h W n BT 276.96 548.16 TD ( ) Tj ET Q BT 300 547.92 TD ( ) Tj ET q 330.96 546 0.24 11.04 re h W n BT 330.96 548.16 TD ( ) Tj ET Q BT 354 547.92 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 520.8 0.24 11.04 re h W n BT 389.04 522.72 TD ( ) Tj ET Q BT 389.04 522.72 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 520.8 0.24 11.04 re h W n BT 442.32 522.72 TD ( ) Tj ET Q BT 442.32 522.72 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 531.84 43.2 0.72 re f 267.12 531.84 0.72 0.72 re f 267.84 531.84 10.08 0.72 re f 277.92 531.84 0.72 0.72 re f 278.64 531.84 42.48 0.72 re f 321.12 531.84 0.72 0.72 re f 321.84 531.84 10.08 0.72 re f 331.92 531.84 0.72 0.72 re f 332.64 531.84 42.48 0.72 re f 385.92 531.84 43.2 0.72 re f 429.12 531.84 0.72 0.72 re f 429.84 531.84 10.08 0.72 re f 439.92 531.84 0.72 0.72 re f 440.64 531.84 42.48 0.72 re f BT 27.84 510 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 50.16 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj 111.84 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 518.88 43.2 0.72 re f 277.92 518.88 43.2 0.72 re f 331.92 518.88 43.2 0.72 re f 385.92 518.88 43.2 0.72 re f 439.92 518.88 43.2 0.72 re f BT 27.84 497.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0667 Tc 0.2674 Tw (Operating expenses:) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0415 Tc 0.2422 Tw ( Employee-related expenses) Tj 0 -12 TD 0.2006 Tc 0 Tw (........................) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (31,950) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (39,253) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (46,419) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (22.9) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (18.3) Tj -436.56 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0466 Tc 0.1541 Tw ( Depreciation and amortization ..................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (32,824) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (44,044) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (49,873) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (34.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (13.2) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0773 Tc 0.1234 Tw ( Other operating expenses ..........................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (86,530) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (103,112) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (120,467) Tj 35.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (19.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (16.8) Tj -252.24 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 18.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (151,304) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (186,409) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (216,759) Tj 35.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (23.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (16.3) Tj ET 223.92 445.2 43.2 0.72 re f 277.92 445.2 43.2 0.72 re f 331.92 445.2 43.2 0.72 re f 223.92 431.28 43.2 0.72 re f 223.92 429.84 43.2 0.72 re f 277.92 431.28 43.2 0.72 re f 277.92 429.84 43.2 0.72 re f 331.92 431.28 43.2 0.72 re f 331.92 429.84 43.2 0.72 re f BT 27.84 420.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0115 Tc 0.5813 Tw (Employee-related Expenses. ) Tj 118.8 0 TD /F3 10.08 Tf -0.0501 Tc 1.2508 Tw ( Employee-related expenses consist of wages and salaries, social security and other expenses.) Tj -133.2 -12 TD -0.0659 Tc 1.6133 Tw (Employee-related expenses increased in 1998 and 1999 due to wage increases and an increase in the relative proportion of) Tj 0 -12 TD -0.0462 Tc 1.4735 Tw (higher paid skilled and managerial employees, partly offset by a reduction in headcount. The official wage increase was 9.5) Tj T* -0.0334 Tc 1.2473 Tw (percent in April 1998 and 15.0 percent in April 1999 for MAT\301V Rt.'s employees. Required social security contributions and) Tj T* -0.0618 Tc 0.2624 Tw (bonus, welfare and pension payments rose in line with wages.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0529 Tc 0.3382 Tw (The average number of employees in the fixed line telecommunications segment decreased by 1,725 employees or 9.7 percent) Tj -14.4 -12 TD -0.0513 Tc 0.5491 Tw (in 1998 and by 1,621 employees or 10.1 percent in 1999 as a result of natural attrition, improved efficiency and streamlining of) Tj 0 -12 TD -0.0426 Tc 0.2433 Tw (the organizational structure.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0334 Tc 1.2564 Tw (Depreciation and Amortization.) Tj 0 Tc 0.0898 Tw ( ) Tj 135.36 0 TD /F3 10.08 Tf -0.0736 Tc 1.5942 Tw ( Depreciation and amortization expenses increased in both 1998 and 1999 as a result of) Tj -149.76 -12 TD -0.0321 Tc 1.0807 Tw (continued investment in MAT\301V's fixed line telecommunications network. Over the period, depreciation and amortization as a) Tj 0 -12 TD -0.0368 Tc 0.2515 Tw (percentage of revenues declined despite the Company's significant capital expenditure program. After a review of the useful lives) Tj T* -0.0493 Tc 1.21 Tw (of its assets, the Company extended the lives of certain switches and operating systems with gross book value of HUF 16,088) Tj T* -0.0289 Tc 0.2295 Tw (million. This resulted in a decrease in depreciation expense of HUF 1,181 million.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0355 Tc 4.4543 Tw (Other Operating Expenses. ) Tj 0 Tc 0.0898 Tw ( ) Tj 132.96 0 TD /F3 10.08 Tf -0.0582 Tc 4.8189 Tw (Other operating expenses consist of payments to other network operators, cost of) Tj -147.36 -12 TD -0.0525 Tc 0.5355 Tw (telecommunications equipment sales and other expenses. The majority of the increases in other operating expenses in both 1998) Tj 0 -12 TD -0.05 Tc 0.6773 Tw (and 1999 related to materials and maintenance, frequency and service fees, legal and other consulting fees, marketing fees and) Tj T* -0.0407 Tc 0.9331 Tw (provisions. In addition, during 1997, the Company incurred expenses of approximately HUF 1,600 million related to its initial) Tj T* -0.0113 Tc 0.2119 Tw (public offering.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.0131 Tc 0.0766 Tw (Operating Profit) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0436 Tc 4.6762 Tw (The following table sets forth information concerning operating profit and operating margin for the fixed line) Tj ET endstream endobj 239 0 obj 14796 endobj 237 0 obj << /Type /Page /Parent 231 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 238 0 R >> endobj 241 0 obj << /Length 242 0 R >> stream BT 275.76 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0662 Tc 0 Tw (lxx) Tj -247.92 693.6 TD /F3 10.08 Tf -0.0424 Tc 0.243 Tw (telecommunications segment:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 731.28 0.24 11.04 re h W n BT 276.96 733.44 TD ( ) Tj ET Q BT 300 733.2 TD ( ) Tj ET q 330.96 731.28 0.24 11.04 re h W n BT 330.96 733.44 TD ( ) Tj ET Q BT 354 733.2 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 706.08 0.24 11.04 re h W n BT 389.04 708 TD ( ) Tj ET Q BT 389.04 708 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 706.08 0.24 11.04 re h W n BT 442.32 708 TD ( ) Tj ET Q BT 442.32 708 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 717.12 43.2 0.72 re f 267.12 717.12 0.72 0.72 re f 267.84 717.12 10.08 0.72 re f 277.92 717.12 0.72 0.72 re f 278.64 717.12 42.48 0.72 re f 321.12 717.12 0.72 0.72 re f 321.84 717.12 10.08 0.72 re f 331.92 717.12 0.72 0.72 re f 332.64 717.12 42.48 0.72 re f 385.92 717.12 43.2 0.72 re f 429.12 717.12 0.72 0.72 re f 429.84 717.12 10.08 0.72 re f 439.92 717.12 0.72 0.72 re f 440.64 717.12 42.48 0.72 re f BT 27.84 695.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 84.96 -0.24 TD ( ) Tj 77.04 0.24 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 704.16 43.2 0.72 re f 277.92 704.16 43.2 0.72 re f 331.92 704.16 43.2 0.72 re f 385.92 704.16 43.2 0.72 re f 439.92 704.16 43.2 0.72 re f BT 27.84 682.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0482 Tc 0.1524 Tw (Operating profit \(in HUF millions\) ...............) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (54,792) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (70,520) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (85,471) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (28.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (21.2) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0464 Tc 0.1543 Tw (Operating margin \(percent\)\(1\) .....................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (26.6) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (27.4) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (28.3) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 35.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) Tj 26.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) Tj -438.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0038 Tc -0 Tw (Operating margin is the ratio of operating profit to revenue, expressed as a percentage.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0719 Tc 0.2852 Tw (Operating profit and operating margin grew in both 1998 and 1999 principally as a result of growing revenues from domestic) Tj -14.4 -12 TD -0.0393 Tc 0.2399 Tw (telecommunications services as well as operating efficiencies that led to lower rates of growth in operating expenses.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0166 Tc 0.0056 Tw (Mobile Telecommunications Segment) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.085 Tc 0 Tw (Revenues) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0423 Tc 0.9287 Tw (Revenues from the mobile telecommunications segment consist of one-time connection fees, monthly subscription and value) Tj -14.4 -12 TD -0.0598 Tc 1.5804 Tw (added service charges, traffic charges and equipment sales. Revenues increased in 1998 and 1999 principally as a result of) Tj 0 -12 TD -0.0715 Tc 0.2721 Tw (rapid growth in the number of subscribers.) Tj ET endstream endobj 242 0 obj 5622 endobj 240 0 obj << /Type /Page /Parent 231 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 241 0 R >> endobj 244 0 obj << /Length 245 0 R >> stream BT 274.32 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (lxxi) Tj -232.08 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0537 Tc 1.0113 Tw (The following table provides information concerning subscribers of mobile telecommunications services and monthly usage) Tj -14.4 -12 TD -0.0406 Tc 0.2413 Tw (of the network:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 719.28 0.24 11.04 re h W n BT 276.96 721.44 TD ( ) Tj ET Q BT 300 721.2 TD ( ) Tj ET q 330.96 719.28 0.24 11.04 re h W n BT 330.96 721.44 TD ( ) Tj ET Q BT 354 721.2 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 694.08 0.24 11.04 re h W n BT 389.04 696 TD ( ) Tj ET Q BT 389.04 696 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 694.08 0.24 11.04 re h W n BT 442.32 696 TD ( ) Tj ET Q BT 442.32 696 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 705.12 43.2 0.72 re f 267.12 705.12 0.72 0.72 re f 267.84 705.12 10.08 0.72 re f 277.92 705.12 0.72 0.72 re f 278.64 705.12 42.48 0.72 re f 321.12 705.12 0.72 0.72 re f 321.84 705.12 10.08 0.72 re f 331.92 705.12 0.72 0.72 re f 332.64 705.12 42.48 0.72 re f 385.92 705.12 43.2 0.72 re f 429.12 705.12 0.72 0.72 re f 429.84 705.12 10.08 0.72 re f 439.92 705.12 0.72 0.72 re f 440.64 705.12 42.48 0.72 re f BT 27.84 683.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 84.96 -0.24 TD ( ) Tj 77.04 0.24 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 692.16 43.2 0.72 re f 277.92 692.16 43.2 0.72 re f 331.92 692.16 43.2 0.72 re f 385.92 692.16 43.2 0.72 re f 439.92 692.16 43.2 0.72 re f BT 27.84 670.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.075 Tc 0.2757 Tw (Average number of subscribers:) Tj 195.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.04 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj 30.96 0 TD ( ) Tj 23.04 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj -434.16 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1671 Tc 0.0335 Tw ( Westel 900 ................................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (306,612) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (450,945) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (686,973) Tj 35.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (47.1) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (52.3) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1671 Tc 0.0335 Tw ( Westel 450 ................................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (76,426) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (86,348) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (96,934) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (13.0) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (12.3) Tj -252.24 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0669 Tc 0.2676 Tw (Average monthly usage per:) Tj 195.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.04 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj 30.96 0 TD ( ) Tj 23.04 0 TD ( ) Tj 26.88 0 TD ( ) Tj 27.12 0 TD ( ) Tj -434.16 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0411 Tc 0.1595 Tw ( Westel 900 subscriber \(minutes\) ................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (250) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (221) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (200) Tj 18 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(11.6\)) Tj 34.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 0 Tw (\(9.5\)) Tj -435.36 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0335 Tc 0.1671 Tw ( Westel 450 subscriber \(minutes\) ..............) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (243) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (205) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (179) Tj 18 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(15.6\)) Tj 34.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(12.7\)) Tj -430.32 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0574 Tc 3.5495 Tw (Westel 900's revenues from mobile telecommunications services increased from 1997 through 1999, primarily as a) Tj -14.4 -12 TD -0.0517 Tc 0.9092 Tw (consequence of the continued growth in the Westel 900 subscriber base as well as nominal increases in average mobile tariffs.) Tj 0 -12 TD -0.0591 Tc 1.144 Tw (The average number of Westel 900 subscribers grew by 52.3 percent in 1999. The effects of subscriber-base growth and tariff) Tj T* -0.042 Tc 0.7227 Tw (increases were partially offset by declines in average monthly minutes per subscriber, which management believes reflected the) Tj T* -0.0387 Tc 1.3343 Tw (growth of the overall mobile telecommunications market to include more low-volume users, and the increased availability of,) Tj T* -0.0318 Tc 0.2325 Tw (and improvements in, fixed line network services.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0691 Tc 1.3348 Tw (Westel 450's revenues from mobile telecommunications services increased in 1998 and 1999 compared to 1997 and 1998.) Tj -14.4 -12 TD -0.0577 Tc 1.1426 Tw (The increase in both years was primarily attributable to the growing number of subscribers and increase in tariffs, which was) Tj 0 -12 TD -0.0283 Tc 0.2289 Tw (partially offset by lower usage.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.0246 Tc 0.0651 Tw (Operating Expenses) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0552 Tc 0.8651 Tw (Operating expenses consist of employee-related expenses, depreciation and amortization and other operating expenses. The) Tj -14.4 -12 TD -0.0462 Tc 0.2468 Tw (following table sets forth information regarding operating expenses for the mobile telecommunications segment:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 379.2 0.24 11.04 re h W n BT 276.96 381.36 TD ( ) Tj ET Q BT 300 381.12 TD ( ) Tj ET q 330.96 379.2 0.24 11.04 re h W n BT 330.96 381.36 TD ( ) Tj ET Q BT 354 381.12 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 354 0.24 11.04 re h W n BT 389.04 355.92 TD ( ) Tj ET Q BT 389.04 355.92 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 354 0.24 11.04 re h W n BT 442.32 355.92 TD ( ) Tj ET Q BT 442.32 355.92 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 365.04 43.2 0.72 re f 267.12 365.04 0.72 0.72 re f 267.84 365.04 10.08 0.72 re f 277.92 365.04 0.72 0.72 re f 278.64 365.04 42.48 0.72 re f 321.12 365.04 0.72 0.72 re f 321.84 365.04 10.08 0.72 re f 331.92 365.04 0.72 0.72 re f 332.64 365.04 42.48 0.72 re f 385.92 365.04 43.2 0.72 re f 429.12 365.04 0.72 0.72 re f 429.84 365.04 10.08 0.72 re f 439.92 365.04 0.72 0.72 re f 440.64 365.04 42.48 0.72 re f BT 27.84 343.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 50.16 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj 111.84 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 352.08 43.2 0.72 re f 277.92 352.08 43.2 0.72 re f 331.92 352.08 43.2 0.72 re f 385.92 352.08 43.2 0.72 re f 439.92 352.08 43.2 0.72 re f BT 27.84 330.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0667 Tc 0.2674 Tw (Operating expenses:) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0415 Tc 0.2422 Tw ( Employee-related expenses) Tj 0 -12 TD 0.2006 Tc 0 Tw (........................) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,849) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,649) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (10,749) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.8) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (40.5) Tj -436.56 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0466 Tc 0.1541 Tw ( Depreciation and amortization ..................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,844) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (9,510) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,272) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (21.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (29.0) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0773 Tc 0.1234 Tw ( Other operating expenses ..........................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (34,726) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (45,394) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (58,655) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.7) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (29.2) Tj -252.24 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (48,419) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (62,553) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (81,676) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (29.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.6) Tj ET 223.92 278.4 43.2 0.72 re f 277.92 278.4 43.2 0.72 re f 331.92 278.4 43.2 0.72 re f 223.92 264.48 43.2 0.72 re f 223.92 263.04 43.2 0.72 re f 277.92 264.48 43.2 0.72 re f 277.92 263.04 43.2 0.72 re f 331.92 264.48 43.2 0.72 re f 331.92 263.04 43.2 0.72 re f BT 27.84 253.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0115 Tc 2.2613 Tw (Employee-related Expenses.) Tj 0 Tc 0.0898 Tw ( ) Tj 121.2 0 TD /F3 10.08 Tf -0.0609 Tc 2.5877 Tw ( Employee-related expenses increased in 1998 and 1999 principally as a result of higher) Tj -135.6 -12 TD -0.0693 Tc 0.4139 Tw (workforce levels and nominal increases in wages. The average number of mobile employees grew by 166 or 12.7 percent in 1998) Tj 0 -12 TD -0.066 Tc 0.3009 Tw (and by 120 or 8.2 percent in 1999, principally as a result of increased sales and service personnel to accommodate the expanded) Tj T* -0.0716 Tc 0.2722 Tw (subscriber base.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0334 Tc 1.4964 Tw (Depreciation and Amortization.) Tj 0 Tc 0.0898 Tw ( ) Tj 136.32 0 TD /F3 10.08 Tf -0.0708 Tc 1.9514 Tw ( Depreciation and amortization increased in both 1998 and 1999. These increases were) Tj -150.72 -12 TD -0.0406 Tc 0.2412 Tw (primarily attributable to increases in property, plant and equipment and investment in the mobile network.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0355 Tc 1.7343 Tw (Other Operating Expenses. ) Tj 0 Tc 0.0898 Tw ( ) Tj 121.92 0 TD /F3 10.08 Tf -0.0698 Tc 2.0796 Tw (Other operating expenses increased in both 1998 and 1999 principally due to increases in) Tj -136.32 -12 TD -0.053 Tc 0.2537 Tw (payments to other network operators, cost of equipment sales, marketing expenses and frequency fees.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F1 10.08 Tf 0.0131 Tc 0.0766 Tw (Operating Profit) Tj ET endstream endobj 245 0 obj 15951 endobj 243 0 obj << /Type /Page /Parent 231 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 244 0 R >> endobj 247 0 obj << /Length 248 0 R >> stream BT 272.88 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0628 Tc 0 Tw (lxxii) Tj -245.04 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.049 Tc 5.7354 Tw (The following table sets forth information concerning operating profit and operating margin for the mobile) Tj -14.4 -12 TD -0.0424 Tc 0.243 Tw (telecommunications segment:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 707.28 0.24 11.04 re h W n BT 276.96 709.44 TD ( ) Tj ET Q BT 300 709.2 TD ( ) Tj ET q 330.96 707.28 0.24 11.04 re h W n BT 330.96 709.44 TD ( ) Tj ET Q BT 354 709.2 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 682.08 0.24 11.04 re h W n BT 389.04 684 TD ( ) Tj ET Q BT 389.04 684 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 682.08 0.24 11.04 re h W n BT 442.32 684 TD ( ) Tj ET Q BT 442.32 684 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 693.12 43.2 0.72 re f 267.12 693.12 0.72 0.72 re f 267.84 693.12 10.08 0.72 re f 277.92 693.12 0.72 0.72 re f 278.64 693.12 42.48 0.72 re f 321.12 693.12 0.72 0.72 re f 321.84 693.12 10.08 0.72 re f 331.92 693.12 0.72 0.72 re f 332.64 693.12 42.48 0.72 re f 385.92 693.12 43.2 0.72 re f 429.12 693.12 0.72 0.72 re f 429.84 693.12 10.08 0.72 re f 439.92 693.12 0.72 0.72 re f 440.64 693.12 42.48 0.72 re f BT 27.84 671.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 84.96 -0.24 TD ( ) Tj 77.04 0.24 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 680.16 43.2 0.72 re f 277.92 680.16 43.2 0.72 re f 331.92 680.16 43.2 0.72 re f 385.92 680.16 43.2 0.72 re f 439.92 680.16 43.2 0.72 re f BT 27.84 658.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0482 Tc 0.1524 Tw (Operating profit \(in HUF millions\) ...............) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (19,262) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (25,589) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (35,660) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (32.8) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (39.4) Tj -436.56 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0464 Tc 0.1543 Tw (Operating margin \(percent\)\(1\) .....................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (28.5) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (29.0) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (30.4) Tj 20.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 35.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) Tj 26.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0247 Tc 0 Tw (n.a.) Tj -438.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0014 Tc 0 Tw (\(1\)) Tj 15.84 0 TD 0.0038 Tc -0 Tw (Operating margin is the ratio of operating profit to revenue, expressed as a percentage.) Tj -15.84 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.072 Tc 0.7274 Tw (Operating profit and operating margin grew in both 1998 and 1999 principally as a result of growing revenues from mobile) Tj -14.4 -12 TD -0.0278 Tc 0.2284 Tw (telecommunications services.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0184 Tc 0.0073 Tw (Net Interest and Other Charges ) Tj 4.2538 Tc -4.2648 Tw (\227 ) Tj 0.0018 Tc 0 Tw (Total) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0465 Tc 0.2471 Tw (The following table sets forth information concerning net interest and other charges:) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 478.8 0.24 11.04 re h W n BT 276.96 480.96 TD ( ) Tj ET Q BT 300 480.72 TD ( ) Tj ET q 330.96 478.8 0.24 11.04 re h W n BT 330.96 480.96 TD ( ) Tj ET Q BT 354 480.72 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 453.6 0.24 11.04 re h W n BT 389.04 455.52 TD ( ) Tj ET Q BT 389.04 455.52 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 453.6 0.24 11.04 re h W n BT 442.32 455.52 TD ( ) Tj ET Q BT 442.32 455.52 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 464.64 43.2 0.72 re f 267.12 464.64 0.72 0.72 re f 267.84 464.64 10.08 0.72 re f 277.92 464.64 0.72 0.72 re f 278.64 464.64 42.48 0.72 re f 321.12 464.64 0.72 0.72 re f 321.84 464.64 10.08 0.72 re f 331.92 464.64 0.72 0.72 re f 332.64 464.64 42.48 0.72 re f 385.92 464.64 43.2 0.72 re f 429.12 464.64 0.72 0.72 re f 429.84 464.64 10.08 0.72 re f 439.92 464.64 0.72 0.72 re f 440.64 464.64 42.48 0.72 re f BT 27.84 442.8 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 50.16 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj 111.84 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 451.68 43.2 0.72 re f 277.92 451.68 43.2 0.72 re f 331.92 451.68 43.2 0.72 re f 385.92 451.68 43.2 0.72 re f 439.92 451.68 43.2 0.72 re f BT 27.84 429.84 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0395 Tc 0.2402 Tw (Interest expense:) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0902 Tc 0.1104 Tw ( Hungarian Forint loans .............................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,303) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (11,720) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (11,112) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (41.2) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 0 Tw (\(5.2\)) Tj -435.36 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0648 Tc 0.2655 Tw ( Foreign currency loans) Tj 0 -12 TD 0.2006 Tc 0 Tw (..............................) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,171) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,134) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,182) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(14.5\)) Tj 34.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (0.8) Tj -441.6 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0333 Tc 0.2339 Tw ( Finance leases) Tj 0 -12 TD 0.2006 Tc 0 Tw (...........................................) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (261) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (192) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (47) Tj 12.96 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(26.4\)) Tj 34.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(75.5\)) Tj -430.32 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.082 Tc 0.1187 Tw (Foreign exchange loss - net ..........................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,090) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,378) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,289) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 27.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(23.1\)) Tj 34.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(49.2\)) Tj -430.32 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0131 Tc 0.2138 Tw (Commissions and other bank charges ...........) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.32 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,230) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,311) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,941) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 38.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0339 Tc 0 Tw (6.6) Tj 23.52 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (48.1) Tj -436.56 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.057 Tc 0.2577 Tw ( Total interest payable and other charges) Tj 0 -12 TD 0.2006 Tc 0 Tw (....) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (33,055) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (31,735) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (25,571) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 0 Tw (\(4.0\)) Tj 29.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(19.4\)) Tj ET 223.92 341.76 43.2 0.72 re f 277.92 341.76 43.2 0.72 re f 331.92 341.76 43.2 0.72 re f BT 27.84 308.16 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1288 Tc 0.0718 Tw (Interest capitalized .......................................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(966\)) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(895\)) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1249 Tc 0 Tw (\(541\)) Tj 32.16 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.24 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 0 Tw (\(7.3\)) Tj 29.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(39.6\)) Tj -430.32 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0418 Tc 0.2424 Tw (Interest and other financial income) Tj 0 -12 TD 0.2006 Tc 0 Tw (...............) Tj 187.2 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(2,224\)) Tj 39.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(2,045\)) Tj 39.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(2,897\)) Tj 31.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 0 Tw (\(8.0\)) Tj 29.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0632 Tc 0 Tw (41.7) Tj -252.24 -24.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 23.28 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (29,865) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (28,795) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 15.36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (22,133) Tj 30.72 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0545 Tc 0 Tw (\(3.6\)) Tj 29.76 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 19.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0706 Tc 0 Tw (\(23.1\)) Tj ET 223.92 280.8 43.2 0.72 re f 277.92 280.8 43.2 0.72 re f 331.92 280.8 43.2 0.72 re f 223.92 266.88 43.2 0.72 re f 223.92 265.44 43.2 0.72 re f 277.92 266.88 43.2 0.72 re f 277.92 265.44 43.2 0.72 re f 331.92 266.88 43.2 0.72 re f 331.92 265.44 43.2 0.72 re f BT 27.84 255.84 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0694 Tc 0.8259 Tw (Net interest and other charges decreased in 1998 compared to 1997 primarily as a consequence of decreases in net foreign) Tj -14.4 -12 TD -0.0421 Tc 1.0428 Tw (exchange loss and in interest expense related to MAT\301V's foreign currency denominated loans, partly offset by an increase in) Tj 0 -12 TD -0.0359 Tc 0.5613 Tw (interest expense relating to Hungarian Forint loans. Net foreign exchange loss and interest expense related to MAT\301V's foreign) Tj T* -0.0618 Tc 1.2704 Tw (currency denominated loans decreased in 1998 as a result of a 5.3 percent decrease in the average level of foreign currency) Tj T* -0.0587 Tc 0.6194 Tw (denominated loans, the decreasing average interest rate of those loans and the decreasing rate of devaluation of the Hungarian) Tj T* -0.0422 Tc 0.9895 Tw (Forint. Interest expense related to MAT\301V's Hungarian Forint denominated loans increased in 1998 primarily as a result of a) Tj T* -0.0415 Tc 0.2421 Tw (39.6 percent increase in the average level of those loans.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0648 Tc 2.0414 Tw (Net interest and other charges decreased in 1999 compared to 1998 primarily as a result of a decrease in net foreign) Tj -14.4 -12 TD -0.0581 Tc 2.7521 Tw (exchange loss. Net foreign exchange loss decreased in 1999 due to the reduced rate of monthly devaluation and better) Tj 0 -12 TD -0.0416 Tc 2.2689 Tw (performance of the Hungarian Forint within the intervention band in relation to the currency basket. In shifting the loan) Tj T* -0.0405 Tc 0.2411 Tw (portfolio to Hungarian Forint denominated loans MAT\301V also benefited from decreasing Hungarian Forint interest rates.) Tj ET endstream endobj 248 0 obj 17112 endobj 246 0 obj << /Type /Page /Parent 231 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 247 0 R >> endobj 251 0 obj << /Length 252 0 R >> stream BT 271.44 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0619 Tc 0 Tw (lxxiii) Tj -229.2 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0287 Tc 0.2293 Tw (See Item 9A for certain quantitative and qualitative information about financial instruments.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0259 Tc 0.0148 Tw (Income Tax ) Tj 4.2538 Tc -4.2648 Tw (\227 ) Tj 0.0018 Tc 0 Tw (Total) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.051 Tc 0.2517 Tw (The following table sets forth information concerning income tax expense incurred by the Company:) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.28 TD ( ) Tj 187.2 0 TD ( ) Tj 30.96 -0.24 TD ( ) Tj ET q 276.96 659.28 0.24 11.04 re h W n BT 276.96 661.44 TD ( ) Tj ET Q BT 300 661.2 TD ( ) Tj ET q 330.96 659.28 0.24 11.04 re h W n BT 330.96 661.44 TD ( ) Tj ET Q BT 354 661.2 TD ( ) Tj 23.04 0.24 TD ( ) Tj 36.48 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0193 Tc 0 Tw (Year ended) Tj -385.68 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj 125.76 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.68 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0213 Tc -0.0016 Tw (December 31,) Tj -380.88 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 21.84 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 40.08 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 13.92 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj 32.16 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET q 389.04 634.08 0.24 11.04 re h W n BT 389.04 636 TD ( ) Tj ET Q BT 389.04 636 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1998/1997) Tj 49.92 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 442.32 634.08 0.24 11.04 re h W n BT 442.32 636 TD ( ) Tj ET Q BT 442.32 636 TD /F4 9.12 Tf 0.0045 Tc 0 Tw (1999/1998) Tj ET 223.92 645.12 43.2 0.72 re f 267.12 645.12 0.72 0.72 re f 267.84 645.12 10.08 0.72 re f 277.92 645.12 0.72 0.72 re f 278.64 645.12 42.48 0.72 re f 321.12 645.12 0.72 0.72 re f 321.84 645.12 10.08 0.72 re f 331.92 645.12 0.72 0.72 re f 332.64 645.12 42.48 0.72 re f 385.92 645.12 43.2 0.72 re f 429.12 645.12 0.72 0.72 re f 429.84 645.12 10.08 0.72 re f 439.92 645.12 0.72 0.72 re f 440.64 645.12 42.48 0.72 re f BT 27.84 623.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 50.16 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj 111.84 0.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36.24 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf -0.0956 Tc 0.1153 Tw (\(% change\)) Tj ET 223.92 632.16 43.2 0.72 re f 277.92 632.16 43.2 0.72 re f 331.92 632.16 43.2 0.72 re f 385.92 632.16 43.2 0.72 re f 439.92 632.16 43.2 0.72 re f BT 27.84 610.32 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 187.2 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj 2.88 0 TD ( ) Tj 51.12 0 TD ( ) Tj 10.8 0 TD ( ) Tj 43.2 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0777 Tc 0.123 Tw (Income tax expense /\(benefit\)........................) Tj 187.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (303) Tj 25.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(1,267\)) Tj 39.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 20.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,911) Tj 25.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 22.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(518.2\)) Tj 39.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(645.5\)) Tj -425.28 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0461 Tc 0.3352 Tw (The Company and certain of its subsidiaries qualify for a reduction in income tax payable on meeting certain conditions. The) Tj -14.4 -12 TD -0.0494 Tc 0.4573 Tw (reduction in the tax payable amounted to a 100 percent allowance for five years from the date of qualification, and a 60 percent) Tj 0 -12 TD -0.0383 Tc 0.6684 Tw (allowance for a further five years. Through 1998, MAT\301V Rt. and Westel 900 qualified for the 100 percent allowance. Through) Tj T* -0.0255 Tc 2.0072 Tw (1995, Westel 450 utilized the 100 percent allowance. From January 1, 1999, MAT\301V Rt. and Westel 900 are utilizing the) Tj T* -0.0419 Tc 0.2535 Tw (reduced allowance of 60 percent for a further five years \(effective tax rate of 7.2 percent\). From January 1, 1996, Westel 450 has) Tj T* -0.0429 Tc 0.7659 Tw (utilized the reduced allowance of 60 percent until December 31, 1999. Management believes that the conditions underlying the) Tj T* -0.0272 Tc 0.2279 Tw (reduction in income tax will continue to be met. All other subsidiaries were subject to income tax of 18 percent.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0483 Tc 2.3289 Tw (The conditions for entitlement to the reduced corporate income tax include \(1\) that one half of the company's annual) Tj -14.4 -12 TD -0.0435 Tc 2.4681 Tw (revenues originate from public telecommunications services; \(2\) that the company's initial share capital exceeds HUF 50) Tj 0 -12 TD -0.0466 Tc 0.2472 Tw (million; and \(3\) that at least 30 percent of the company's initial share capital is held by non-Hungarians.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0348 Tc 2.0055 Tw (Differences in timing between tax regulations and financial reporting generate deferred tax assets and liabilities in the) Tj -14.4 -12 TD -0.0396 Tc 1.4722 Tw (consolidated financial statements. The Company records these temporary differences according to the liability method in the) Tj 0 -12 TD -0.0494 Tc 0.2501 Tw (current period.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.16 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0396 Tc 0.7545 Tw (Deferred tax assets are recognized for tax loss carry forwards only to the extent that realization of the related tax benefit is) Tj -14.16 -12 TD -0.044 Tc 1.4194 Tw (probable. MAT\301V has tax losses of HUF 2,312 million to carry forward against future taxable income, which have not been) Tj 0 -12 TD -0.0322 Tc 0.3086 Tw (recognized in these financial statements due to uncertainty of their recoverability. Tax losses of HUF 339 million expire in 2002,) Tj T* -0.0459 Tc 0.2466 Tw (HUF 674 million expire in 2003 and HUF 1,299 million expire in 2004.) 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Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (90,029) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (135,499) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (138,465) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1388 Tc 0.0619 Tw ( from investing activities .....................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 31.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(92,398\)) Tj 44.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(114,357\)) Tj 49.92 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 18.48 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0975 Tc 0 Tw (\(126,460\)) Tj -415.2 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1358 Tc 0.0649 Tw ( from financing activities ....................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,985) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 23.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0908 Tc 0 Tw (\(26,788\)) Tj 44.88 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(9,034\)) Tj -425.28 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0743 Tc 0.1264 Tw (Change in cash and cash equivalents ....................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (1,616) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0821 Tc 0 Tw (\(5,646\)) Tj 39.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (2,971) Tj -431.52 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0646 Tc 0.2652 Tw (Cash and cash equivalents, beginning of period) Tj 0 -12 TD 0.2006 Tc 0 Tw (....................) Tj 252 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (7,643) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (9,259) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,613) Tj -431.52 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0663 Tc 0.267 Tw (Cash and cash equivalents, end of period) Tj 0 -12 TD 0.2006 Tc 0 Tw (..............................) Tj 252 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (9,259) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,613) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,584) Tj -431.52 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0049 Tc 0.0848 Tw (Net Cash Flows from Operating Activities. ) Tj 176.4 0 TD /F3 10.08 Tf -0.0193 Tc 0.2199 Tw ( MAT\301V's primary source of liquidity is cash flows from operating activities.) Tj -190.8 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0513 Tc 1.1867 Tw (Net cash flows from operating activities increased by HUF 45,470 million in 1998 compared to 1997, primarily due to an) Tj -14.4 -12 TD -0.0388 Tc 0.7555 Tw (increase in operating profit of HUF 22,055 million and the effect of a higher level of depreciation and amortization expense of) Tj 0 -12 TD -0.0407 Tc 1.6147 Tw (fixed assets, which increased by HUF 12,886 million. In 1998, the change in receivables increased by HUF 12,313 million,) Tj T* -0.0566 Tc 0.5933 Tw (which led to a corresponding decrease in net cash flows from operating activities. In 1998, the change in payables increased by) Tj T* -0.0409 Tc 0.2416 Tw (HUF 22,013 million, which led to a corresponding increase in net cash flows from operating activities.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0503 Tc 1.4509 Tw (Net cash flows from operating activities increased by HUF 2,966 million in 1999 compared to 1998, primarily due to an) Tj -14.4 -12 TD -0.0423 Tc 0.747 Tw (increase in operating profit of HUF 25,022 million and the effect of a higher charge for depreciation and amortization of fixed) Tj 0 -12 TD -0.0511 Tc 0.3957 Tw (assets, which increased by HUF 8,591 million. In 1999, the change in receivables increased by HUF 906 million and the change) Tj T* -0.0489 Tc 0.3 Tw (in payables decreased by HUF 15,671 million, which led to a corresponding decrease in net cash flows from operating activities.) Tj T* -0.0576 Tc 0.2582 Tw (Net income tax paid also increased by HUF 7,550 million in 1999 compared to 1998.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0057 Tc 2.9275 Tw (Net Cash Flows from Investing Activities) Tj 182.16 0 TD /F3 10.08 Tf -0.0233 Tc 3.104 Tw (. Net cash flows from investing activities are primarily driven by capital) Tj -196.56 -12 TD -0.0439 Tc 0.9165 Tw (expenditures, movements in other financial assets and purchase of investments. Capital expenditures were HUF 94,786 million) Tj 0 -12 TD -0.0519 Tc 2.5894 Tw (in 1997, HUF 116,283 million in 1998 and HUF 127,678 million in 1999. Movements in other financial assets in 1998) Tj T* -0.0506 Tc 1.2744 Tw (represented a cash inflow of HUF 6,638 million from sale of government bonds. Movements in other financial assets in 1999) Tj T* -0.0584 Tc 1.4732 Tw (represented a cash outflow of HUF 2,458 million from purchase of government bonds. Purchase of investments increased by) Tj T* -0.0545 Tc 0.2552 Tw (HUF 7,644 million in 1998 compared to 1997 primarily as a result of the repurchase by Westel 900 of its shares.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0056 Tc 0.6602 Tw (Net Cash Flows from Financing Activities) Tj 174.24 0 TD /F3 10.08 Tf -0.036 Tc 0.9566 Tw (. Net cash flows from financing activities are primarily driven by the Company's) Tj -188.64 -12 TD -0.0358 Tc 1.4231 Tw (borrowing activities. MAT\301V received net proceeds from loans of HUF 5,471 million in 1997, made net repayments of HUF) Tj 0 -12 TD -0.0501 Tc 1.9307 Tw (8,954 million in 1998 and received net proceeds from loans of HUF 2,268 million in 1999. Net cash flows from financing) Tj T* -0.0407 Tc 1.3573 Tw (activities decreased in 1998 principally as a result of a HUF 16,581 million increase in dividends paid. Net cash flows from) Tj T* -0.0484 Tc 1.108 Tw (financing activities increased in 1999 compared to 1998 principally as a result of a HUF 6,250 million decrease in dividends) Tj T* -0.0229 Tc 0 Tw (paid.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0344 Tc 1.9753 Tw (Net Working Capital.) Tj 91.68 0 TD /F3 10.08 Tf -0.0385 Tc 2.3306 Tw ( The Company's current liabilities generally exceed its current assets, because the Company, in) Tj -106.08 -12 TD -0.0377 Tc 0.7562 Tw (keeping with its aim of maintaining low levels of working capital, has negotiated longer repayment terms. As a result, payables) Tj 0 -12 TD -0.0419 Tc 2.8025 Tw (have a longer term than receivables. Accordingly, although the Company's current liabilities exceeded current assets at) Tj T* -0.0523 Tc 0.4711 Tw (December 31, 1997, 1998 and 1999, it was capable of meeting payables as they fell due from its positive operating cash flow. In) Tj T* -0.0242 Tc 1.9315 Tw (addition, MAT\301V has built up and maintains a significant level of undrawn committed credit facilities which it uses, when) Tj T* -0.0136 Tc 0.2142 Tw (necessary, to meet current liabilities as they fall due.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0418 Tc 0.2724 Tw (At December 31, 1999, the Company had undrawn committed short-term credit facilities of approximately HUF 8,314 million) Tj ET endstream endobj 255 0 obj 10296 endobj 253 0 obj << /Type /Page /Parent 250 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 254 0 R >> endobj 257 0 obj << /Length 258 0 R >> stream BT 273.36 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0073 Tc 0 Tw (lxxv) Tj -245.52 693.6 TD /F3 10.08 Tf -0.0399 Tc 0.8966 Tw (and undrawn committed long-term credit facilities of approximately HUF 85,546 million. Undrawn committed long term credit) Tj 0 -12 TD -0.0332 Tc 0.6452 Tw (facilities of HUF 54,464 million expire in 2001, HUF 25,332 million expire in 2002, HUF 700 million expire in 2005 and HUF) Tj T* -0.0312 Tc 0.2439 Tw (5,050 million have no specified expiration date. These credit facilities, should they be drawn down, are subject to an interest rate) Tj T* -0.0461 Tc 0.3907 Tw (of LIBOR, BUBOR and commercial floating bank prime rates plus a margin. There are pledges on assets for loans totaling HUF) Tj T* -0.0062 Tc 0.2069 Tw (9,726 million.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0276 Tc 0.1174 Tw (Indebtedness. ) Tj 60.24 0 TD /F3 10.08 Tf -0.0589 Tc 0.2595 Tw (The Company's total indebtedness analyzed by currency is as follows:) Tj -74.64 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 317.52 -12 TD ( ) Tj 10.8 0 TD ( ) Tj 32.64 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -43.44 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 21.12 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 43.2 0 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 25.2 0 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 357.12 657.36 57.6 0.72 re f 414.72 657.36 0.72 0.72 re f 415.44 657.36 10.08 0.72 re f 425.52 657.36 0.72 0.72 re f 426.24 657.36 56.88 0.72 re f BT 345.36 634.8 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 29.52 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 357.12 644.4 57.6 0.72 re f 425.52 644.4 57.6 0.72 re f BT 345.36 622.56 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 30.24 0 TD ( ) Tj 34.08 0 TD ( ) Tj 34.32 0 TD ( ) Tj -426.96 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0641 Tc 0.2648 Tw (Hungarian Forint) Tj 0 -12 TD 0.2006 Tc 0 Tw (............................................................................................) Tj 320.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (70,649) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (93,988) Tj -426.48 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1702 Tc 0.0304 Tw (Deutsche mark ................................................................................................) Tj 320.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (52,590) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (42,779) Tj -426.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1811 Tc 0.0195 Tw (U.S. dollar ......................................................................................................) Tj 320.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (29,122) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (24,006) Tj -426.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.176 Tc 0.0246 Tw (Swiss franc .....................................................................................................) Tj 320.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,776) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (4,812) Tj -431.52 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.052 Tc 0.2526 Tw (Dutch guilder) Tj 0 -12 TD 0.2006 Tc 0 Tw (..................................................................................................) Tj 320.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,261) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 34.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,047) Tj -431.52 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1895 Tc 0.0111 Tw (Other ..............................................................................................................) Tj 320.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 42.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (8,073) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (11,887) Tj -108.96 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 2.88 0 TD ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (172,471) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (182,519) Tj ET 357.12 522.24 57.6 0.72 re f 425.52 522.24 57.6 0.72 re f 357.12 508.32 57.6 0.72 re f 357.12 506.88 57.6 0.72 re f 425.52 508.32 57.6 0.72 re f 425.52 506.88 57.6 0.72 re f BT 27.84 497.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0487 Tc 0.7294 Tw (HUF 17,804 million of indebtedness is scheduled for repayment in 2000, HUF 68,893 million is scheduled for repayment in) Tj -14.4 -12 TD -0.0544 Tc 0.9891 Tw (2001 and HUF 23,477 million is scheduled for repayment in 2002. MAT\301V expects scheduled repayments of indebtedness and) Tj 0 -12 TD -0.0523 Tc 1.5279 Tw (possible prepayments to be financed primarily from cash flows from operating activities and from undrawn committed credit) Tj T* 0.0659 Tc 0 Tw (facilities.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0509 Tc 1.8751 Tw (As of December 31, 1999, approximately 72 percent of the Company's indebtedness bore interest at variable rates. The) Tj -14.4 -12 TD -0.05 Tc 0.8507 Tw (Company's Hungarian Forint denominated floating rate indebtedness is subject to interest rates between 14.4 percent and 18.9) Tj 0 -12 TD -0.0514 Tc 2.5321 Tw (percent based on various reference rates, including BUBOR and the rate quoted by the National Bank of Hungary. The) Tj T* -0.0478 Tc 1.7634 Tw (Company's foreign currency denominated floating rate indebtedness is subject to interest rates between 3.7 percent and 7.2) Tj T* -0.0392 Tc 0.6188 Tw (percent, with rates generally based on LIBOR plus a margin. A substantial majority of the Company's fixed rate indebtedness is) Tj T* -0.0599 Tc 0.2605 Tw (foreign currency denominated and bears an average interest rate of 6.7 percent.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0299 Tc 0.2827 Tw (MAT\301V issued a domestic floating rate note of HUF 10 billion with a maturity of five years and a domestic fixed rate bond of) Tj -14.4 -12 TD -0.0415 Tc 0.463 Tw (HUF 5 billion with a maturity of one year in March 1998. The interest rate on the floating rate note is 50 basis points above the) Tj 0 -12 TD -0.041 Tc 0.7456 Tw (average rate in the three auctions of the six-month Hungarian Treasury bill prior to the relevant interest period. The fixed rate) Tj T* -0.0898 Tc 0.2904 Tw (bond has been repaid.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0525 Tc 0.8931 Tw (MAT\301V's operating revenues and expenses are denominated almost entirely in Hungarian Forints. Amounts payable to and) Tj -14.4 -12 TD -0.0543 Tc 0.8055 Tw (receivable from other international carriers, which are denominated in a basket of currencies known as special drawing rights,) Tj 0 -12 TD -0.0524 Tc 0.6059 Tw (are netted against one another and settled primarily in U.S. dollars and Deutsche marks. Capital expenditures are denominated) Tj T* -0.0407 Tc 0.2413 Tw (partly in foreign currencies, principally U.S. dollars and Deutsche marks.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0398 Tc 3.545 Tw (Several of the Company's loan agreements contain covenant restrictions, including financial ratio requirements. At) Tj -14.4 -12 TD -0.0402 Tc 0.9468 Tw (December 31, 1999, the Company was in compliance with these requirements. These restrictions do not significantly affect the) Tj 0 -12 TD -0.0165 Tc 0.2171 Tw (liquidity of the Company.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0048 Tc 0.0043 Tw (Capital Expenditures) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0506 Tc 0.8583 Tw (The Company's capital expenditures totalled HUF 94,786 million in 1997, HUF 116,283 million in 1998 and HUF 127,678) Tj -14.4 -12 TD -0.0381 Tc 0.4487 Tw (million in 1999. Capital expenditures included expenditures for \(1\) the fixed line network, including network operations systems,) Tj 0 -12 TD -0.0609 Tc 0.2615 Tw (\(2\) mobile telecommunications and \(3\) new products, corporate infrastructure and other assets.) Tj ET endstream endobj 258 0 obj 9211 endobj 256 0 obj << /Type /Page /Parent 250 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 257 0 R >> endobj 260 0 obj << /Length 261 0 R >> stream BT 271.92 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0174 Tc 0 Tw (lxxvi) Tj -244.08 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0398 Tc 0.6825 Tw (Capital expenditures for the fixed line network accounted for 57 percent of total capital expenditures in 1997, 48 percent of) Tj -14.4 -12 TD -0.0415 Tc 2.6139 Tw (total capital expenditures in 1998 and 43 percent of total capital expenditures in 1999. Capital expenditures for mobile) Tj 0 -12 TD -0.0373 Tc 1.198 Tw (telecommunications totalled 15 percent of total capital expenditures in 1997, 16 percent of total capital expenditures in 1998) Tj T* -0.0421 Tc 0.5332 Tw (and 25 percent of total capital expenditures in 1999. The remainder of capital expenditures for this period related to investment) Tj T* -0.049 Tc 0.5753 Tw (in infrastructure. Expenditures on information technology increased from approximately three percent in 1997 to approximately) Tj T* -0.0282 Tc 0.2289 Tw (five percent in 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0388 Tc 0.3728 Tw (The Company expects capital expenditures relating to its existing lines of business to be approximately HUF 150 billion both) Tj -14.4 -12 TD -0.0573 Tc 0.2788 Tw (in 2000 and 2001. The Company expects that expenditures for the fixed line network will be 45 percent in 2000 and 43 percent in) Tj 0 -12 TD -0.0339 Tc 1.9569 Tw (2001 of total capital expenditures, and that expenditures for mobile telecommunications will be 29 percent of total capital) Tj T* -0.0389 Tc 1.3862 Tw (expenditures in 2000 and then decline. Mobile capital expenditures in 2000 include the DCS 1800 licence fee. Other capital) Tj T* -0.0525 Tc 1.9998 Tw (expenditures are expected to increase from 32 percent in 1999 to 36 percent in 2001. Expenditures related to information) Tj T* -0.0548 Tc 0.2555 Tw (technology are expected to remain about four percent of total capital expenditures in 2000 and 2001.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0482 Tc 2.2068 Tw (The Company expects to be able to finance capital expenditures over the next several years from net cash flows from) Tj -14.4 -12 TD -0.0574 Tc 0.8447 Tw (operations and from borrowings. The Company's actual future capital expenditures will depend on a variety of factors, such as) Tj 0 -12 TD -0.0513 Tc 0.7662 Tw (the development of its business and of the Hungarian economy and whether MAT\301V enters into any new lines of business. As a) Tj T* -0.025 Tc 0.2256 Tw (result, the Company's actual future capital expenditures may be significantly different.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0051 Tc 0.004 Tw (Implementation of the Euro) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.047 Tc 1.2526 Tw (The euro's implementation impacts MAT\301V in two ways: \(1\) through debt denominated in Deutsche marks, French francs,) Tj -14.4 -12 TD -0.0641 Tc 1.8247 Tw (Dutch guilders and ECUs and \(2\) through capital expenditures payable in foreign currencies of European Monetary Union) Tj 0 -12 TD -0.0675 Tc 3.1781 Tw (member countries. Since January 1, 1999, new contracts with EU-based suppliers and new loans made with EU-based) Tj T* -0.0531 Tc 0.3257 Tw (institutions have been denominated in euros. With respect to contracts and loans in place prior to January 1, 1999, the Company) Tj T* -0.0551 Tc 0.8818 Tw (has the right during the euro transition period, which ends January 1, 2002, either to pay in the currency of the contract or to) Tj T* -0.0442 Tc 0.4343 Tw (convert these contracts into euro terms. The Company will evaluate its contracts on a case-by-case basis to determine whether it) Tj T* -0.0526 Tc 1.0743 Tw (is advantageous to convert agreements to euros before the end of the transition period. After January 1, 2002, all agreements) Tj T* -0.0442 Tc 0.5978 Tw (made with reference to national currencies of European Monetary Union member countries will automatically refer to the euro.) Tj T* -0.0262 Tc 0.2269 Tw (MAT\301V believes that the implementation of the euro should not have a material effect on the Company.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 261 0 obj 4368 endobj 259 0 obj << /Type /Page /Parent 250 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 260 0 R >> endobj 263 0 obj << /Length 264 0 R >> stream BT 270.48 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0241 Tc 0 Tw (lxxvii) Tj -242.64 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (Reconciliation to U.S. GAAP) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0388 Tc 0.2394 Tw (The following table reconciles net income and shareholders' equity under IAS to U.S. GAAP for the periods indicated:) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 252 0 TD ( ) Tj 57.84 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0204 Tc -0 Tw (Year ended December 31,) Tj -309.84 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 252 0 TD ( ) Tj 29.04 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1997) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1998) Tj 47.28 0.24 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 21.12 -0.24 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (1999) Tj ET 288.72 693.84 57.6 0.72 re f 346.32 693.84 0.72 0.72 re f 347.04 693.84 10.08 0.72 re f 357.12 693.84 0.72 0.72 re f 357.84 693.84 56.88 0.72 re f 414.72 693.84 0.72 0.72 re f 415.44 693.84 10.08 0.72 re f 425.52 693.84 0.72 0.72 re f 426.24 693.84 56.88 0.72 re f BT 27.84 671.28 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 252 0 TD ( ) Tj 71.76 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 288.72 680.88 57.6 0.72 re f 357.12 680.88 57.6 0.72 re f 425.52 680.88 57.6 0.72 re f BT 27.84 659.04 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0193 Tc 0.2199 Tw (Net income:) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 65.52 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1935 Tc 0.0071 Tw ( IAS ....................................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (36,034) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (58,337) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (78,632) Tj -426.48 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1863 Tc 0.0143 Tw ( U.S. GAAP ........................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 37.68 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (30,130) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (58,564) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (78,721) Tj -177.36 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0599 Tc 0.2605 Tw (Shareholders' equity:) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 65.52 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj 10.8 0 TD ( ) Tj 57.6 0 TD ( ) Tj -454.32 -12.24 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1935 Tc 0.0071 Tw ( IAS ....................................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (208,676) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (257,245) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (327,579) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1863 Tc 0.0143 Tw ( U.S. GAAP ........................................................................) Tj 252 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 32.64 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (193,457) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (244,783) Tj 43.68 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 24.72 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (315,248) Tj -421.44 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0191 Tc 0.9569 Tw (Reconciling adjustments relate principally to the different treatment under U.S. GAAP of deferred revenue, post-retirement) Tj -14.4 -12 TD -0.0482 Tc 1.4771 Tw (benefits, management incentive plan bonds and the employee stock purchase plan. See Note 26 to the consolidated financial) Tj 0 -12 TD -0.0082 Tc 0 Tw (statements.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0376 Tc 1.9183 Tw (Under U.S. GAAP, revenue relating to investment contribution and entrance fees is recognized as any related potential) Tj -14.4 -12 TD -0.0431 Tc 0.8437 Tw (refund obligation is extinguished. This accounting treatment emphasizes the legal nature of the potential refund obligation and) Tj 0 -12 TD -0.043 Tc 0.5587 Tw (creates a timing difference between the ongoing expense recognition and the delayed revenue recognition. This interpretation is) Tj T* -0.0472 Tc 0.2479 Tw (expected to result in a lump sum revenue recognition of deferred fees by approximately HUF 19 billion in June 2000.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0334 Tc 0.5407 Tw (Under IAS, Westel 900 and Westel 450 are consolidated. Under U.S. GAAP, however, the Company believes that although it) Tj -14.4 -12 TD -0.0545 Tc 3.3484 Tw (holds 51 percent of Westel 900 and Westel 450, the ownership rights of the minority shareholder may be considered) Tj 0 -12 TD -0.0419 Tc 0.9775 Tw (participatory in nature and would preclude consolidation for purposes of the reconciliation to U.S. GAAP. Accordingly, under) Tj T* -0.0383 Tc 1.6411 Tw (U.S. GAAP, both companies were accounted for using the equity method. There is, however, no difference in net income or) Tj T* -0.0343 Tc 0.2349 Tw (shareholders' equity under U.S. GAAP as a result. See Note 26 to the consolidated financial statements.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0331 Tc 0.0221 Tw (Additional disclosures required for IAS ) Tj 4.2538 Tc -4.2648 Tw (\227 ) Tj -0.0335 Tc 0.0224 Tw (Recent Accounting Pronouncements) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.059 Tc 0.6007 Tw (The following IAS standards were not required to be implemented in 1999. The adoption of these standards are not expected) Tj -14.4 -12 TD -0.0418 Tc 0.2425 Tw (to have a material impact on the Company's consolidated financial statements.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F3 10.08 Tf -0.0647 Tc 0.2654 Tw (IAS 22 \(revised\) "Business Combinations") Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0681 Tc 0.2687 Tw (IAS 35 "Discontinuing Operations") Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0559 Tc 0.2566 Tw (IAS 36 "Impairment of Assets") Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0295 Tc 0.2301 Tw (IAS 37 "Provisions, Contingent Liabilities and Contingent Assets") Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0509 Tc 0.2516 Tw (IAS 38 "Intangible Assets") Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0513 Tc 0.252 Tw (IAS 39 "Financial Instruments Recognition and Measurement") Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0339 Tc 0.0229 Tw (Additional disclosures required for U.S. GAAP ) Tj 4.2538 Tc -4.2648 Tw (\227 ) Tj -0.0335 Tc 0.0224 Tw (Recent Accounting Pronouncements) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0297 Tc 1.1583 Tw (SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" is effective for financial periods beginning) Tj -14.4 -12 TD -0.0449 Tc 0.2455 Tw (after June 15, 1999. Upon initial application all derivatives are required to be recognized in the balance sheet as either assets or) Tj 0 -12 TD -0.0463 Tc 0.3034 Tw (liabilities and measured at fair value. In addition, all hedging relationships must be designated, documented and reassessed. The) Tj T* -0.0262 Tc 0.2268 Tw (Company is currently evaluating the effect that SFAS No. 133 will have on its consolidated financial statements.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.6 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0414 Tc 3.6021 Tw (In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101, ) Tj -1.1933 Tc 0 Tw (\223) Tj -0.0337 Tc (Revenue) Tj -18 -12 TD -0.0115 Tc 0.2121 Tw (Recognition in Financial Statements,) Tj -1.1933 Tc 1.3939 Tw (\224 ) Tj -0.0574 Tc 0.45 Tw (\(SAB 101\) which provides additional guidance in applying generally accepted accounting) Tj ET endstream endobj 264 0 obj 9333 endobj 262 0 obj << /Type /Page /Parent 250 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 263 0 R >> endobj 266 0 obj << /Length 267 0 R >> stream BT 269.04 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0289 Tc 0 Tw (lxxviii) Tj -241.2 693.6 TD /F3 10.08 Tf -0.0514 Tc 0.3531 Tw (principles. In certain cases, SAB 101 requires upfront fees be deferred and recognized over the expected period of performance.) Tj 0 -12 TD -0.0296 Tc 2.0662 Tw (We are assessing the types of transactions that may be affected by this Bulletin. Its impact on the consolidated financial) Tj T* -0.0322 Tc 0.2329 Tw (statements is not yet known.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 267 0 obj 528 endobj 265 0 obj << /Type /Page /Parent 250 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 266 0 R >> endobj 270 0 obj << /Length 271 0 R >> stream BT 271.92 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0654 Tc 0 Tw (lxxix) Tj -127.68 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0058 Tc 0.0033 Tw (ITEM 9A ) Tj 42.48 0 TD 4.3243 Tc 0 Tw (\227) Tj 10.08 0 TD 0.0051 Tc 0.004 Tw ( QUANTITATIVE AND QUALITATIVE DISCLOSURES) Tj 42.48 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0059 Tc 0.0033 Tw (ABOUT MARKET RISK) Tj -211.44 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0064 Tc 0.0027 Tw (Market Risk Sensitive Instruments) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0285 Tc 0.8503 Tw (MAT\301V is exposed to interest and foreign exchange rate risk associated with its debt and anticipated transactions. MAT\301V) Tj -14.4 -12 TD -0.0323 Tc 2.648 Tw (has no significant concentrations of credit risk. The functional accounting currency of MAT\301V is the Hungarian Forint,) Tj 0 -12 TD -0.0049 Tc 0.2055 Tw (therefore MAT\301V's objective is to minimize the level of its financial risk in Hungarian Forint terms.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.02 Tc 0.9406 Tw (MAT\301V's major financial market risk exposure is in interest rate fluctuations. This is due to the fact that changing interest) Tj -14.4 -12 TD -0.0222 Tc 0.4737 Tw (rates in the U.S. and Western-Europe affect the fair value of fixed rate debt. To control interest rate risk, a combination of fixed) Tj 0 -12 TD -0.037 Tc 0.7417 Tw (and floating rate debt is used within the foreign currency and Hungarian Forint portfolios. In the case of foreign debt, MAT\301V) Tj T* -0.0418 Tc 2.5161 Tw (maintains a balance between fixed rate and variable rate debt. Mainly floating rate instruments are used in the case of) Tj T* -0.0482 Tc 0.2489 Tw (Hungarian Forint debt due to decreasing interest rates.) Tj 18 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0407 Tc 3.2413 Tw (MAT\301V is exposed to foreign exchange risk related to foreign currency debt and foreign exchange payments \(i.e.) Tj -18 -12 TD -0.0377 Tc 0.6498 Tw (international third party telecommunications carriers and capital expenditure\). To reduce foreign exchange risk, MAT\301V's debt) Tj 0 -12 TD -0.0205 Tc 1.2745 Tw (portfolio guidelines limit the individual classes of currencies in the debt portfolio. MAT\301V is increasing the proportion of its) Tj T* -0.0457 Tc 0.5146 Tw (borrowings in Hungarian Forint as the Hungarian capital market develops. Most of MAT\301V's foreign exchange debt portfolio is) Tj T* -0.041 Tc 1.7959 Tw (adjusted to the same mix as the official basket of foreign currencies used by the National Bank of Hungary to devalue the) Tj T* -0.0292 Tc 0.7381 Tw (Hungarian Forint and to determine official exchange rates. Matching the composition of MAT\301V's foreign debt portfolio to the) Tj T* -0.0466 Tc 1.6999 Tw (basket of currencies used by the National Bank of Hungary in its regulation of the Hungarian Forint minimizes the foreign) Tj T* -0.0666 Tc 0.2673 Tw (exchange cross currency risk.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0537 Tc 2.1584 Tw (In 1998 and 1999 MAT\301V occasionally entered into derivative contracts for hedging purposes. These foreign currency) Tj -14.4 -12 TD -0.0659 Tc 1.896 Tw (forward contracts and swap arrangements were taken to reduce the exchange rate risk of debt repayments or to adjust the) Tj 0 -12 TD -0.0523 Tc 0.3901 Tw (currency structure of the debt portfolio to match that used by the National Bank of Hungary in its management of the Hungarian) Tj T* -0.0441 Tc 0.2447 Tw (Forint. Using derivatives to change the debt portfolio's composition serves to reduce cross currency risk.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0548 Tc 0.508 Tw (Included in bank loans are U.S. dollars denominated loans amounting to HUF 5,878 million and subject to interest based on) Tj -14.4 -12 TD -0.0562 Tc 0.2911 Tw (a fixed rate of 7.05%. These loans are the subject of a cross currency interest rate swap arrangement which entitles the Company) Tj 0 -12 TD -0.0428 Tc 0.3035 Tw (to receive U.S. dollars interest and principal payments at fixed rates and obliges it to pay euro interest and principal repayments) Tj T* -0.0496 Tc 1.4102 Tw (at floating rates of the EURIBOR rate plus a margin of 0.66%. The euro principal payments are fixed at a rate of 1 euro =) Tj T* -0.0445 Tc 0.4725 Tw (1.0777 U.S. dollars. The timing and amount of the U.S. dollars payments to be received exactly matches the underlying payment) Tj T* -0.0557 Tc 0.7363 Tw (obligations on the U.S. dollars loan. The Company accounts for interest and foreign exchange movements on these loans at the) Tj T* -0.0434 Tc 0.244 Tw (euro rate.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0382 Tc 0.5041 Tw (Effective January 3, 2000, an additional HUF 6,082 million in U.S. dollars denominated loans subject to interest based on a) Tj -14.4 -12 TD -0.0521 Tc 0.9248 Tw (fixed rate of 6.56%, are the subject of a cross currency swap agreement. This swap agreement entitles the Company to receive) Tj 0 -12 TD -0.0415 Tc 0.2536 Tw (U.S. dollars interest and principal payments at fixed rates and oblige it to pay euro interest and principal payments at fixed rates) Tj T* -0.0501 Tc 1.0107 Tw (of 5.17%. Euro principal payments will be determined according to the euro equivalent of the U.S. dollars principal payments) Tj T* -0.0622 Tc 0.6172 Tw (using the average of the USD/EUR spot rates between October 27, 1999 and December 22, 1999. The timing and amount of the) Tj T* -0.0349 Tc 0.2355 Tw (U.S. dollars payments to be received will exactly match the underlying payment obligations of the U.S. dollars loans.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0549 Tc 0.5096 Tw (Derivative instruments are limited to foreign currency forward contracts and swap agreements that are not recognized in the) Tj -14.4 -12 TD -0.0508 Tc 1.4247 Tw (financial statements on inception. In the case of foreign currency forward contracts, any increase or decrease in the amount) Tj 0 -12 TD -0.0417 Tc 0.7463 Tw (required to settle the liability is off-set by a corresponding movement in the value of the forward exchange contract. Gains and) Tj T* -0.0599 Tc 1.3469 Tw (losses on derivative positions are booked against the gain or loss on the related underlying positions being hedged. In 1999,) Tj T* -0.0467 Tc 1.7505 Tw (losses of HUF 515 million was recognized in the statements of income related to foreign currency forward contracts. As of) Tj T* -0.0406 Tc 0.2413 Tw (December 31, 1999, MAT\301V held foreign currency forward contracts covering DEM 226 million and U.S.$30 million.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0247 Tc 1.812 Tw (The financial asset portfolio is relatively small compared to the debt portfolio of MAT\301V and includes only short term,) Tj -14.4 -12 TD -0.0226 Tc 0.9856 Tw (marketable securities with active secondary markets to ensure liquidity. MAT\301V mitigates credit risk by investing only in high) Tj 0 -12 TD -0.0381 Tc 1.4228 Tw (quality securities. As of December 31, 1999, MAT\301V's cash balance included HUF denominated cash equivalent instruments) Tj ET endstream endobj 271 0 obj 7628 endobj 268 0 obj << /Type /Page /Parent 269 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 270 0 R >> endobj 273 0 obj << /Length 274 0 R >> stream BT 273.36 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0673 Tc 0 Tw (lxxx) Tj -245.52 693.6 TD /F3 10.08 Tf -0.0363 Tc 1.4261 Tw (with a value of HUF 3,740 million at an average fixed interest rate of 11.6 percent and HUF 2,844 million in variable rate) Tj 0 -12 TD -0.0301 Tc 1.3929 Tw (instruments with an average interest rate of 8.4 percent. Financial investments of HUF 3,732 million were held in fixed rate) Tj T* -0.042 Tc 0.3627 Tw (instruments at an average interest rate of 13.5 percent. The net carrying amounts of financial assets including cash, investments,) Tj T* -0.0396 Tc 1.7367 Tw (receivables and payables and finance lease obligations reflect reasonable estimates of fair value due to the relatively short) Tj T* -0.0306 Tc 0.2312 Tw (period to maturity of the instruments.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 274 0 obj 849 endobj 272 0 obj << /Type /Page /Parent 269 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 273 0 R >> endobj 276 0 obj << /Length 277 0 R >> stream BT 271.92 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0654 Tc 0 Tw (lxxxi) Tj -229.68 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0284 Tc 1.2455 Tw (The following table is a summary of MAT\301V's market sensitive debt instruments, including fair value calculated using the) Tj -14.4 -12 TD -0.0513 Tc 1.9884 Tw (discounted cash flow method. Average rates disclosed represent the weighted average rates of fixed rate and variable rate) Tj 0 -12 TD -0.0637 Tc 0.5164 Tw (portfolios at period end. The book values of variable rate loans and borrowings approximate their fair values as shown below at) Tj T* -0.0688 Tc 0.2694 Tw (December 31, 1999.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 120.24 -12 TD ( ) Tj 5.76 0 TD ( ) Tj 102.72 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0576 Tc -0.0379 Tw ( Maturities) Tj ET q 402.96 683.28 0.24 11.04 re h W n BT 402.96 685.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 423.84 685.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 444.72 683.28 0.24 11.04 re h W n BT 444.72 685.2 TD ( ) Tj ET Q BT 465.6 685.2 TD ( ) Tj -317.52 -13.2 TD ( ) Tj 5.76 0 TD ( ) Tj 19.44 0.48 TD ( ) Tj ET q 194.16 670.56 0.24 11.04 re h W n BT 194.16 672.48 TD ( ) Tj ET Q BT 215.04 672.48 TD ( ) Tj ET q 235.92 670.56 0.24 11.04 re h W n BT 235.92 672.48 TD ( ) Tj ET Q BT 256.8 672.48 TD ( ) Tj ET q 277.68 670.56 0.24 11.04 re h W n BT 277.68 672.48 TD ( ) Tj ET Q BT 298.56 672.48 TD ( ) Tj ET q 319.44 670.56 0.24 11.04 re h W n BT 319.44 672.48 TD ( ) Tj ET Q BT 340.32 672.48 TD ( ) Tj ET q 361.2 670.56 0.24 11.04 re h W n BT 361.2 672.48 TD ( ) Tj ET Q BT 372.96 672.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0432 Tc 0 Tw (after) Tj ET q 402.96 670.56 0.24 11.04 re h W n BT 402.96 672.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 423.84 672.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 444.72 670.56 0.24 11.04 re h W n BT 444.72 672.48 TD ( ) Tj ET Q BT 457.2 672.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.08 Tc 0 Tw (Fair) Tj ET 154.8 681.6 36 0.72 re f 190.8 681.6 0.72 0.72 re f 191.52 681.6 5.04 0.72 re f 196.56 681.6 0.72 0.72 re f 197.28 681.6 35.28 0.72 re f 232.56 681.6 0.72 0.72 re f 233.28 681.6 5.04 0.72 re f 238.32 681.6 0.72 0.72 re f 239.04 681.6 35.28 0.72 re f 274.32 681.6 0.72 0.72 re f 275.04 681.6 5.04 0.72 re f 280.08 681.6 0.72 0.72 re f 280.8 681.6 35.28 0.72 re f 316.08 681.6 0.72 0.72 re f 316.8 681.6 5.04 0.72 re f 321.84 681.6 0.72 0.72 re f 322.56 681.6 35.28 0.72 re f 357.84 681.6 0.72 0.72 re f 358.56 681.6 5.04 0.72 re f 363.6 681.6 0.72 0.72 re f 364.32 681.6 35.28 0.72 re f BT 148.08 660 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.76 0 TD ( ) Tj 10.32 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (2000) Tj ET q 194.16 658.56 0.24 11.04 re h W n BT 194.16 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 205.92 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (2001) Tj ET q 235.92 658.56 0.24 11.04 re h W n BT 235.92 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 247.68 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (2002) Tj ET q 277.68 658.56 0.24 11.04 re h W n BT 277.68 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 289.44 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (2003) Tj ET q 319.44 658.56 0.24 11.04 re h W n BT 319.44 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 331.2 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (2004) Tj ET q 361.2 658.56 0.24 11.04 re h W n BT 361.2 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 372.96 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0 Tw (2004) Tj ET q 402.96 658.56 0.24 11.04 re h W n BT 402.96 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj ET Q BT 413.76 660.48 TD /F6 10.08 Tf 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf -0.0087 Tc 0 Tw (Total) Tj ET q 444.72 658.56 0.24 11.04 re h W n BT 444.72 660.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 455.28 660.48 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0015 Tc 0 Tw (value) Tj -427.44 -13.2 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 126 0 TD ( ) Tj 92.64 0.48 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0354 Tc -0.0157 Tw (\(in HUF millions, except percentages\)) Tj ET 154.8 656.88 36 0.72 re f 196.56 656.88 36 0.72 re f 238.32 656.88 36 0.72 re f 280.08 656.88 36 0.72 re f 321.84 656.88 36 0.72 re f 363.6 656.88 36 0.72 re f 405.36 656.88 36 0.72 re f 447.12 656.88 36 0.72 re f BT 27.84 635.28 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.047 Tc 0.2476 Tw ( Bank loans \(HUF) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0857 Tc 0.2863 Tw ( denominated\)) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1407 Tc 0.0599 Tw ( Fixed rate .....................) Tj 2.1667 Tc 0 Tw (\205) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (83) Tj 15.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,500) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,583) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (13,898) Tj -426.48 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0265 Tc 0.2272 Tw ( Average interest rate ) Tj 2.1667 Tc 0 Tw (\205) Tj 108 0 TD /F7 10.08 Tf 0.0072 Tc (....) Tj 15.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (16.00%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (11.75%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1172 Tc 0.0834 Tw ( Variable rate ....................) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (13,166) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,000) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (18,885) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,125) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (5,125) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,375) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (67,676) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (67,676) Tj -426.48 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0049 Tc 0.2055 Tw ( Average interest rate ..) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (..) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.4 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (14.80%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (14.94%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (14.84%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (14.62%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (14.71%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (14.66%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1762 Tc 0.0245 Tw (Total ....................................) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (13,249) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,000) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (18,885) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (12,125) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (17,625) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (6,375) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (80,259) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (81,574) Tj -306.24 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0514 Tc 0.252 Tw ( Bank loans \(foreign) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0819 Tc 0.2826 Tw ( currency denominated\)) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1386 Tc 0.062 Tw ( Fixed rate ....................) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (.) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,485) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (36,160) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (39,475) Tj -426.48 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0265 Tc 0.2272 Tw ( Average interest rate ) Tj 2.1667 Tc 0 Tw (\205) Tj 108 0 TD /F7 10.08 Tf 0.0072 Tc (....) Tj 15.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (6.61%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (6.61%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (6.61%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (6.61%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (6.61%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (6.79%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1172 Tc 0.0834 Tw ( Variable rate ....................) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (52,370) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (52,371) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (52,371) Tj -426.48 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0408 Tc 0.1599 Tw ( Average interest rate ........) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (17.5%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.56 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (4.57%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1762 Tc 0.0245 Tw (Total ....................................) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 16.08 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,936) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (56,305) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.2 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0808 Tc 0 Tw (3,935) Tj 28.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,485) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (88,531) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (91,846) Tj -306.24 -12.72 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj ET 154.8 464.16 36 0.72 re f 196.56 464.16 36 0.72 re f 238.32 464.16 36 0.72 re f 280.08 464.16 36 0.72 re f 321.84 464.16 36 0.72 re f 363.6 464.16 36 0.72 re f 405.36 464.16 36 0.72 re f 447.12 464.16 36 0.72 re f BT 27.84 442.56 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.068 Tc 0.1327 Tw ( Total bank loans ..............) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (17,185) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (68,305) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (22,820) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (16,060) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (21,560) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (22,860) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (168,790) Tj 38.64 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 3.12 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1009 Tc 0 Tw (173,420) Tj -301.2 -14.16 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj ET 154.8 439.44 36 0.72 re f 154.8 438 36 0.72 re f 196.56 439.44 36 0.72 re f 196.56 438 36 0.72 re f 238.32 439.44 36 0.72 re f 238.32 438 36 0.72 re f 280.08 439.44 36 0.72 re f 280.08 438 36 0.72 re f 321.84 439.44 36 0.72 re f 321.84 438 36 0.72 re f 363.6 439.44 36 0.72 re f 363.6 438 36 0.72 re f 405.36 439.44 36 0.72 re f 405.36 438 36 0.72 re f 447.12 439.44 36 0.72 re f 447.12 438 36 0.72 re f BT 27.84 416.4 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0581 Tc 0.2587 Tw ( Bonds and bills) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0478 Tc 0.2485 Tw ( of exchange \(HUF) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0857 Tc 0.2863 Tw ( denominated\)) Tj 126 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0009 Tc 0.1998 Tw ( Fixed rate) Tj 0 -12 TD 0.2006 Tc 0 Tw (.........................) Tj 123.12 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (87) Tj 15.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (4) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (91) Tj 15.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 25.92 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (90) Tj -444.24 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0408 Tc 0.1599 Tw ( Average interest rate ........) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.2242 Tc 0 Tw (8.86%) Tj 31.2 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (10.00%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -454.32 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1172 Tc 0.0834 Tw ( Variable rate ....................) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 33.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (10,000) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (10,000) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (10,000) Tj -426.48 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0408 Tc 0.1599 Tw ( Average interest rate ........) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 38.88 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 5.52 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.212 Tc 0 Tw (14.62%) Tj 36.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj -334.08 -12.72 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj 5.76 0 TD ( ) Tj 36 0 TD ( ) Tj ET 154.8 329.28 36 0.72 re f 196.56 329.28 36 0.72 re f 238.32 329.28 36 0.72 re f 280.08 329.28 36 0.72 re f 321.84 329.28 36 0.72 re f 363.6 329.28 36 0.72 re f 405.36 329.28 36 0.72 re f 447.12 329.28 36 0.72 re f BT 27.84 307.68 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1762 Tc 0.0245 Tw (Total ....................................) Tj 123.12 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 28.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (87) Tj 15.84 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (4) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (10,000) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 30.96 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (0) Tj 10.8 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (10,091) Tj 33.6 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 8.16 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0926 Tc 0 Tw (10,090) Tj ET 154.8 304.56 36 0.72 re f 154.8 303.12 36 0.72 re f 196.56 304.56 36 0.72 re f 196.56 303.12 36 0.72 re f 238.32 304.56 36 0.72 re f 238.32 303.12 36 0.72 re f 280.08 304.56 36 0.72 re f 280.08 303.12 36 0.72 re f 321.84 304.56 36 0.72 re f 321.84 303.12 36 0.72 re f 363.6 304.56 36 0.72 re f 363.6 303.12 36 0.72 re f 405.36 304.56 36 0.72 re f 405.36 303.12 36 0.72 re f 447.12 304.56 36 0.72 re f 447.12 303.12 36 0.72 re f BT 27.84 293.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 277 0 obj 25071 endobj 275 0 obj << /Type /Page /Parent 269 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R /F7 278 0 R >> /ProcSet 2 0 R >> /Contents 276 0 R >> endobj 281 0 obj << /Length 282 0 R >> stream BT 270.48 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0641 Tc 0 Tw (lxxxii) Tj -113.04 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (ITEM 10 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0058 Tc 0.0034 Tw (DIRECTORS AND OFFICERS OF REGISTRANT) Tj -129.6 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -11.76 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0046 Tc 0.0045 Tw (Board of Directors) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.068 Tc 1.2004 Tw (Under Hungarian law, the Board of Directors is responsible for the Company's management and decides on matters other) Tj -14.4 -12 TD -0.0571 Tc 1.5177 Tw (than those that must be determined by shareholders. The Board of Directors is required to report to the shareholders at the) Tj 0 -12 TD -0.0573 Tc 0.8313 Tw (annual general meeting of the shareholders and quarterly to the Supervisory Board on the business administration, state of the) Tj T* -0.0607 Tc 0.2614 Tw (assets and business policy of the Company.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0464 Tc 1.7628 Tw (Pursuant to the Company's amended Articles of Association, the Board of Directors consists of a minimum of six and a) Tj -14.4 -12 TD -0.0565 Tc 0.4971 Tw (maximum of 11 members elected at the annual general meeting of the shareholders for a term of one year. The Hungarian state,) Tj 0 -12 TD -0.0535 Tc 0.4941 Tw (as holder of the Series "B" share, is entitled to nominate one member of the Company's Board of Directors. MagyarCom has the) Tj T* -0.047 Tc 0.2476 Tw (power to cause the election of all other members of the Board of Directors at the general meeting of shareholders.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0345 Tc 1.8694 Tw (Meetings of the Board of Directors are held at least four times a year. Meetings of the Board of Directors require the) Tj -14.4 -12 TD -0.0576 Tc 0.3783 Tw (presence of six members for a quorum. Each member has one vote. The Board of Directors passes resolutions by simple majority) Tj 0 -12 TD 0.031 Tc 0 Tw (vote.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0469 Tc 1.157 Tw (The current members of the Board of Directors, their principal occupations and the years of their original election are as) Tj -14.4 -12 TD -0.0221 Tc 0 Tw (follows:) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj -14.4 -12 TD ( ) Tj -3.12 -11.52 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0517 Tc 0 Tw (Name) Tj ET 24.72 492.24 22.32 0.96 re f BT 168.96 494.16 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.011 Tc 0.0087 Tw (Principal Occupation) Tj ET 179.76 492.24 81.12 0.96 re f BT 410.16 494.16 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 423.12 492.24 0.24 11.04 re h W n BT 423.12 494.16 TD ( ) Tj ET Q BT 423.12 494.16 TD /F4 9.12 Tf 0.0552 Tc -0.0355 Tw (Member since) Tj ET 423.12 492.24 53.52 0.96 re f BT 165.84 480.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 11.04 0 TD ( ) Tj 230.4 0 TD ( ) Tj 10.8 0 TD ( ) Tj 31.92 0 TD ( ) Tj -425.28 -13.44 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0351 Tc 0.2357 Tw (Elek Straub) Tj 0 -12 TD 0.2006 Tc 0 Tw (..................................) Tj 144.24 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0027 Tc 0.2033 Tw (Chairman and Chief Executive Officer of MAT\301V) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1995) Tj -415.2 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.117 Tc 0.0837 Tw (Timothy J. Cawley .......................) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0227 Tc 0.2233 Tw (President of SBC International) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -415.2 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1125 Tc 0.0881 Tw (William J. Edwards .....................) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0151 Tc 0.1855 Tw (Member of Executive Committee of MAT\301V) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -415.2 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1419 Tc 0.0588 Tw (Moritz Gerke ...............................) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0298 Tc 0.2304 Tw (Senior Executive Director for Central Europe, Eastern) Tj 0 -12 TD -0.0378 Tc 0.2384 Tw (Europe and the Middle East at Deutsche Telekom) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1996) Tj -415.2 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1145 Tc 0.0861 Tw (Franz X. Hiergeist .......................) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0126 Tc 0.2132 Tw (Executive Director, Domestic Networks,) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.051 Tc 0.2516 Tw (Planning and Systems at Deutsche Telekom) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1994) Tj -415.2 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1323 Tc 0.0683 Tw (Dr. Zsolt Lajer *...........................) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.075 Tc 0 Tw (Lawyer) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1999) Tj -415.2 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0531 Tc 0.1475 Tw (Dr. Mark von Lillienskiold ..........) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0151 Tc 0.1855 Tw (Member of Executive Committee of MAT\301V) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1996) Tj -415.2 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0172 Tc 0.1834 Tw (Dr. Mih\341ly Patai) Tj 0 -12 TD 0.2006 Tc 0 Tw (..........................) Tj 144.24 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0367 Tc 0.2373 Tw (Chairman and Chief Executive of Hung\341ria Biztos\355t\363) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -415.2 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1104 Tc 0.0902 Tw (Dr. K\341roly Sz\341sz .........................) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0137 Tc 0.2144 Tw (Chief Executive Officer of Konzumbank) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1999) Tj -415.2 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1207 Tc 0.08 Tw (A. Vernon Weaver .......................) Tj 144.24 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0403 Tc 0.2409 Tw (Former U.S. Representative to the European Union) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1999) Tj -412.08 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf -0.0379 Tc 0.0413 Tw (* Representative of the holder of the Series \223B\224 Share.) Tj 0 -9.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (Board of Directors' Biographies) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0094 Tc 0.5603 Tw (Elek Straub. ) Tj 57.6 0 TD /F3 10.08 Tf -0.0627 Tc 1.13 Tw (Mr. Straub was appointed a Director in 1995. Mr. Straub has served as Chairman of the Board of Directors) Tj -72 -12 TD -0.0659 Tc 0.7247 Tw (since January 1996. He served as the Head of the IT Department of the Ministry of Labor from 1970 through 1980. From 1980) Tj 0 -12 TD -0.0243 Tc 1.905 Tw (through 1990 he was first the Head and later the Vice President of the IT Division of the Central Statistical Office of the) Tj T* -0.0495 Tc 1.5259 Tw (Hungarian government. From 1990 to 1995, he was the General Manager of IBM Hungary. In 1995 he joined MAT\301V. Mr.) Tj T* -0.0508 Tc 0.2514 Tw (Straub became a member of the Operating Committee in 1995 and Chairman of the Executive Committee in 1996.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0041 Tc 0.2538 Tw (Timothy J. Cawley. ) Tj 82.32 0 TD /F3 10.08 Tf -0.0161 Tc 0.6818 Tw ( Mr. Cawley joined Ameritech Inc. in 1993 as Vice President, Marketing of Small Business Services. He) Tj -96.72 -12 TD -0.0545 Tc 0.9618 Tw (became President of Small Business Services in 1995 which generated U.S.$1.4 billion annual revenue. From 1997 to 1998 he) Tj 0 -12 TD -0.0478 Tc 2.4534 Tw (served as President of European Operations and was responsible for U.S.$5 billion in investments in Denmark, Belgium,) Tj T* -0.056 Tc 0.2566 Tw (Hungary, Norway and Germany. Since 1998, he has served as President of Ameritech International.) 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Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0265 Tc 1.5032 Tw (Moritz Gerke.) Tj 0 Tc 0.0898 Tw ( ) Tj 62.88 0 TD /F3 10.08 Tf -0.0495 Tc 1.8595 Tw ( Mr. Gerke was appointed a Director in 1996. He acted as Project Manager and Marketing Manager at) Tj -77.28 -12 TD -0.0666 Tc 2.3425 Tw (Hewlett-Packard GmbH from 1982 through 1990. Between 1991 and 1995, he worked for Marcam Corp., serving first as) Tj 0 -12 TD -0.0628 Tc 2.3669 Tw (Managing Director and later as General Manager. From 1995 to 1997 he was the Director responsible for International) Tj T* -0.0408 Tc 1.0281 Tw (Business and Joint Ventures at Deutsche Telekom. Since 1998, he has been the Senior Executive Director for Central Europe,) Tj T* -0.0333 Tc 0.2339 Tw (Eastern Europe and the Middle East at Deutsche Telekom.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0263 Tc 0.3835 Tw (Franz X. Hiergeist. ) Tj 82.08 0 TD /F3 10.08 Tf -0.0595 Tc 0.7684 Tw ( Mr. Hiergeist was appointed a Director in 1994. He began his professional career in 1968 at Deutsche) Tj -96.48 -12 TD -0.0412 Tc 0.9318 Tw (Bundespost Telecommunications Engineering Center in the field of satellite communications and long term studies. In 1976 he) Tj 0 -12 TD -0.0397 Tc 3.4653 Tw (became responsible for telephone services and operations and national satellite projects at the Ministry of Posts and) Tj T* -0.0378 Tc 1.5285 Tw (Telecommunications in Bonn. He currently serves as Executive Director of Domestic Networks, Planning and Systems at the) Tj T* -0.0347 Tc 0.2353 Tw (Deutsche Telekom General Directorate.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.002 Tc 1.2917 Tw (Dr. Zsolt Lajer.) Tj 0 Tc 0.0898 Tw ( ) Tj 69.12 0 TD /F3 10.08 Tf -0.0314 Tc 1.6468 Tw ( Dr. Lajer started his career as a civil servant, then he joined the State Bank Supervision, and later he) Tj -83.52 -12 TD -0.0565 Tc 2.7922 Tw (became Chief Legal Counsel of Commerzbank \(Budapest\). Currently, he works as a lawyer and regularly contributes to) Tj 0 -12 TD -0.07 Tc 1.7106 Tw (numerous legal journals. He is a member of the German-Hungarian Lawyers) Tj -3.3533 Tc 4.9939 Tw (\222 ) Tj -0.0314 Tc 1.9121 Tw (Association, the Banking Commission of ICC) Tj T* -0.0433 Tc 0.964 Tw (Hungary, the International Bar Association) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0559 Tc 0.9766 Tw (s Banking Law Committee, a founder and a member of the presidium of the Swiss-) Tj T* -0.0994 Tc 2.7 Tw (Hungarian Lawyers) Tj -3.3533 Tc 6.1939 Tw (\222 ) Tj -0.0449 Tc 2.8855 Tw (Association. The Ministry of Transport, Communications and Water Management nominated him as) Tj T* 0.0335 Tc 0.1671 Tw (Member of MAT\301V Ltd.) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0432 Tc 0.2438 Tw (s Board of Directors.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0172 Tc 0.7926 Tw (Dr. Mark von Lillienskiold. ) Tj 119.04 0 TD /F3 10.08 Tf -0.0537 Tc 1.3263 Tw ( Dr. von Lillienskiold was appointed a Director in 1996. He began his professional career in) Tj -133.44 -12 TD -0.0507 Tc 1.8325 Tw (1977 at Bayer, where he held positions including Director, Finance Director and Board Member of various subsidiaries in) Tj 0 -12 TD -0.063 Tc 1.2476 Tw (several countries. From 1986 through 1991, he was employed at a subsidiary of the BAT Group, where he served as Finance) Tj T* -0.0899 Tc 0.4905 Tw (Manager from 1986 through 1988 and Finance Director and Board Member from 1988 through 1991. From 1991 through 1993,) Tj T* -0.0359 Tc 0.3205 Tw (he worked for two affiliates of Banco Latino/Lauria Group as Vice President of Finance. He joined Deutsche Telekom in 1994 as) Tj T* -0.0338 Tc 2.8039 Tw (Executive of International Finance. Currently serving as an Executive Officer, he has been a member of the Operating) Tj T* -0.0396 Tc 0.2402 Tw (Committee since 1994 and a member of the Executive Committee since 1996.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0329 Tc 0.5368 Tw (Dr. Mih\341ly Patai. ) Tj 75.6 0 TD /F3 10.08 Tf -0.0383 Tc 1.1856 Tw ( Dr. Patai started to work at the National Bank of Hungary in 1976, and joined the Financial Research) Tj -90 -12 TD -0.0378 Tc 1.9317 Tw (Institute in 1978. Between 1982 and 1988 he served at the Ministry of Finance, Department of International Finances. He) Tj 0 -12 TD -0.0506 Tc 1.2239 Tw (became Chairman of the Board at General Banking and Trust Company Ltd. In 1988, he joined the World Bank, Washington) Tj T* -0.0392 Tc 0.4799 Tw (DC, then worked as Bank and IFC alternate executive director. In 1993 he became managing director of Kereskedelmi Bank Rt.) Tj T* -0.0622 Tc 1.1099 Tw (in charge of International and Foreign Exchange Operations. In 1996 he became Chairman and CEO at Budapest Investment) Tj T* -0.0545 Tc 0.2552 Tw (International Inc. He has been Chairman of the Board and CEO of Hung\341ria Biztos\355t\363 since 1996.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0236 Tc 0.3062 Tw (Dr. K\341roly Sz\341sz.) Tj 72.48 0 TD /F3 10.08 Tf -0.0544 Tc 0.6017 Tw ( Dr. Sz\341sz started his career at TESCO Foreign Trade Company in 1981. He joined the Central European) Tj -86.88 -12 TD -0.0407 Tc 0.5066 Tw (International Bank Ltd. \(CIB\) in 1984, and served in positions of increasing responsibilities. In 1995, he became Director of the) Tj 0 -12 TD -0.0556 Tc 0.7591 Tw (Corporate Business Unit of the Hungarian Foreign Trade Bank Ltd., and also served as Member on the Board of this bank. He) Tj T* -0.0497 Tc 0.8567 Tw (became Director of the Corporate Business Unit at CIB in 1996. He became CEO of HypoVereinsbank Hung\341ria Ltd. in 1998,) Tj T* -0.0193 Tc 0.2199 Tw (and CEO of Konzumbank in 1999. \301PV Rt. nominated him as Member of MAT\301V Ltd.) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0432 Tc 0.2438 Tw (s Board of Directors.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0123 Tc 0.0774 Tw (A. Vernon Weaver. ) Tj 84.48 0 TD /F3 10.08 Tf -0.0585 Tc 0.2873 Tw (Mr. Weaver built up his successful career during his 32 years with Stephens Group and Stephens Inc., an) Tj -98.88 -12 TD -0.0228 Tc 0.6315 Tw (investment banking firm of Little Rock, Arkansas. He supervised this firm) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0574 Tc 0.7381 Tw (s operations in Europe and, as President and CEO of) Tj 0 -12 TD -0.0532 Tc 2.3088 Tw (Stephens Overseas Services, he directed financial institutions in Indonesia, Singapore and Hong Kong. He also served as) Tj T* -0.0424 Tc 1.7336 Tw (President of Union Life Insurance of Little Rock from 1964 through 1977, and as Administrator of the U.S. Small Business) Tj T* -0.0645 Tc 0.5052 Tw (Administration from 1977 through 1981. He was Assistant to the Chairman of the Board of Stephens Group and Stephens Inc. in) Tj T* -0.0548 Tc 0.2554 Tw (1996, when he was nominated U.S. Representative to the European Union.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0053 Tc 0.0038 Tw (Executive Committee) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0356 Tc 0.3862 Tw (Pursuant to the Company's amended Articles of Association, the Board of Directors has established an Executive Committee,) Tj ET endstream endobj 285 0 obj 8280 endobj 283 0 obj << /Type /Page /Parent 269 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 284 0 R >> endobj 287 0 obj << /Length 288 0 R >> stream BT 269.52 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0262 Tc 0 Tw (lxxxiv) Tj -241.68 693.6 TD /F3 10.08 Tf -0.0576 Tc 2.6582 Tw (which is empowered to carry out the day-to-day operations in accordance with the annual business plan. The Executive) Tj 0 -12 TD -0.0277 Tc 1.5546 Tw (Committee is also empowered to transfer its rights to the Company's executive officers, and, with the exception of the Chief) Tj T* -0.0244 Tc 0.7192 Tw (Executive Officer, to appoint or dismiss executive officers, define their remuneration and perform other activities assigned to it) Tj T* -0.0403 Tc 0.4089 Tw (by the Board of Directors. The Executive Committee consists of three members, who are members of the Board of Directors. The) Tj T* -0.0213 Tc 0.222 Tw (current members of the Executive Committee are Elek Straub, William J. Edwards and Dr. Mark von Lillienskiold.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0048 Tc 0.0044 Tw (Supervisory Board) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0645 Tc 1.1405 Tw (The Supervisory Board is responsible for supervising the administration and control of the Company and for assuring that) Tj -14.4 -12 TD -0.0615 Tc 0.7563 Tw (the Company meets Hungarian legal requirements and the provisions set out in its own governing instruments. The Supervisory) Tj 0 -12 TD -0.0464 Tc 0.2737 Tw (Board reviews every significant report delivered at the general meeting of the shareholders, proposals by the Board of Directors,) Tj T* -0.058 Tc 1.5636 Tw (the financial statements, and proposals regarding profit distribution. The Supervisory Board also prepares a report on these) Tj T* -0.0549 Tc 0.2555 Tw (topics for the general meeting of shareholders at which the annual report is discussed.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0439 Tc 0.3112 Tw (Pursuant to the Articles of Association, the Supervisory Board consists of nine members elected by the shareholders for terms) Tj -14.4 -12 TD -0.0563 Tc 0.3255 Tw (of one year each. The Works Council nominates one third of the Supervisory Board members in accordance with the rules set out) Tj 0 -12 TD -0.0496 Tc 1.4285 Tw (to guide the election of employee members. The holder of the Series "B" share has the right to nominate one member of the) Tj T* -0.061 Tc 0.2617 Tw (Supervisory Board. Meetings of the Supervisory Board require a quorum of six members.) 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Tj 144 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0349 Tc 0.2356 Tw (Ministry of Transport, Telecommunications and Water) Tj 0 -12 TD -0.0427 Tc 0.2433 Tw (Management, Head of Development Division) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0905 Tc 0.1101 Tw (David A. Dohnalek *....................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0304 Tc 0.231 Tw (Assistant Treasurer, Ameritech International) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -414.96 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1349 Tc 0.0657 Tw (Paul B. Grosse .............................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0361 Tc 0.2367 Tw (Senior Director, International Business Development,) Tj 0 -12 TD -0.0418 Tc 0.2424 Tw (Deutsche Telekom) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0639 Tc 0.2646 Tw (Dr. Horst D. Laubscher) Tj 0 -12 TD 0.2006 Tc 0 Tw (................) Tj 144 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0175 Tc 0.2181 Tw (Senior Executive Director, International Finance,) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0145 Tc 0.1862 Tw (M & A, Deutsche Telekom) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1996) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.129 Tc 0.0716 Tw (Dr. L\341szl\363 Pap .............................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0346 Tc 0.2352 Tw (Budapest University of Technology, Dean, Professor,) Tj 0 -12 TD -0.0655 Tc 0.2661 Tw (Head of Department) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1997) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0616 Tc 0.2622 Tw (Joe Rosen) Tj 0 -12 TD 0.2006 Tc 0 Tw (.....................................) Tj 144 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0217 Tc 0.2223 Tw (Director of Finance, SBC International) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1274 Tc 0.0732 Tw (J\363zsef Szab\363 .................................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0225 Tc 0.2231 Tw (President of the Work Council, West Hungary) Tj 0 -12 TD -0.0254 Tc 0.226 Tw (Technical Directorate) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1999) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1394 Tc 0.0612 Tw (Gy\366rgy Varj\372 ...............................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.02 Tc 0.2206 Tw (President of the Work Council, Budapest Technical) Tj 0 -12 TD -0.028 Tc 0 Tw (Directorate) Tj 230.4 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1999) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1478 Tc 0.0528 Tw (P\351ter Vermes ...............................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0187 Tc 0.2194 Tw (Chairman of MAT\301V's Works Council) Tj 230.4 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 29.76 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1997) Tj -414.96 -12.96 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (__________) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -9.84 TD ( ) Tj 0 0 TD /F3 7.92 Tf 0.0035 Tc -0 Tw (* Mr. Dohnalek resigned from his position on January 27, 2000. His successor is not appointed yet.) Tj 0 -11.52 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F4 10.08 Tf 0.0046 Tc 0.0045 Tw (Indemnification of the Board of Directors and Supervisory Board) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.037 Tc 1.7176 Tw (Pursuant to the Company's amended Articles of Association, to the extent permitted by law, the Company is required to) Tj -14.4 -12 TD -0.0576 Tc 1.8959 Tw (indemnify each current and former member of the Board of Directors and the Supervisory Board in certain circumstances.) Tj 0 -12 TD -0.0502 Tc 1.2223 Tw (Generally, if such an individual is liable for certain costs or damages in connection with his board position and has acted in) Tj T* -0.066 Tc 0.5409 Tw (good faith, then the Company must indemnify him. The Company may maintain insurance on behalf of any person who is or was) Tj T* -0.0578 Tc 0.727 Tw (a member of the Board of Directors or the Supervisory Board against any liability asserted against him and incurred by him in) Tj T* -0.0446 Tc 0.2452 Tw (any such capacity, whether or not the Company would have the right to indemnify him against such liability.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj 0 0 TD /F4 10.08 Tf 0.0052 Tc 0.0039 Tw (Executive Officers) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0298 Tc 0.2305 Tw (The current executive officers of MAT\301V, their current positions and the years of their appointment are as follows:) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET q 168.96 288.48 0.24 11.04 re h W n BT 168.96 290.64 TD ( ) Tj ET Q q 179.76 288.48 0.24 11.04 re h W n BT 179.76 290.64 TD ( ) Tj ET Q q 410.16 288.48 0.24 11.04 re h W n BT 410.16 290.64 TD ( ) Tj ET Q q 420.96 288.48 0.24 11.04 re h W n BT 420.96 290.64 TD ( ) Tj ET Q BT 438.96 290.4 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0483 Tc -0.0286 Tw (Year of) Tj -411.12 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0517 Tc 0 Tw (Name) Tj ET 27.84 276.24 22.32 0.96 re f BT 171.84 278.16 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F4 9.12 Tf 0.0229 Tc 0 Tw (Position) Tj ET 182.64 276.24 30.96 0.96 re f q 420.96 276.24 0.24 11.04 re h W n BT 420.96 278.4 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET Q BT 428.4 278.16 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 9.12 Tf 0.0354 Tc 0 Tw (Appointment) Tj -259.44 -13.44 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 230.4 0 TD ( ) Tj 10.8 0 TD ( ) Tj 31.92 0 TD ( ) Tj ET 421.92 274.32 61.2 0.72 re f BT 27.84 252.48 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.1471 Tc 0.0536 Tw (Elek Straub ..................................) 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Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0117 Tc 0.1889 Tw (Chief Financial Officer) Tj 238.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1999) Tj -414.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0088 Tc 0.1918 Tw (William J. Edwards .) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (.................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0192 Tc 0.1814 Tw (Executive Officer) Tj 238.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1998) Tj -414.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0423 Tc 0.2429 Tw (Ott\363 Gecser) Tj 0 -12 TD 0.2006 Tc 0 Tw (..................................) Tj 144 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0034 Tc 0.1972 Tw (Chief Marketing Officer) Tj 238.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1996) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.0531 Tc 0.1475 Tw (Dr. Mark von Lillienskiold ..........) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0192 Tc 0.1814 Tw (Executive Officer) Tj 238.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1994) Tj -414.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf 0.1424 Tc 0.0582 Tw (Manfred Ohl ................................) Tj 144 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf 0.0023 Tc 0.1983 Tw (Chief Technical Officer) Tj 238.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1999) Tj -414.96 -12.24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F3 10.08 Tf -0.0572 Tc 0.2579 Tw (Dr. Tam\341s P\341sztory) Tj 0 -12 TD 0.2006 Tc 0 Tw (......................) Tj 144 12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 10.8 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0486 Tc 0.2493 Tw (Chief Human Resources and Legal Officer) Tj 238.32 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 21.84 0 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (1996) Tj -414.96 -24 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.24 TD ( ) Tj 0 0 TD /F0 10.08 Tf -0.0331 Tc 0.022 Tw (Executive Officers) Tj -2.4662 Tc 2.4552 Tw (\222 ) Tj -0.0171 Tc 0.0061 Tw (and Chief Officers' Biographies) Tj 0 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj ET endstream endobj 292 0 obj 12082 endobj 289 0 obj << /Type /Page /Parent 290 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 291 0 R >> endobj 294 0 obj << /Length 295 0 R >> stream BT 269.52 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0262 Tc 0 Tw (lxxxvi) Tj -227.28 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F1 10.08 Tf 0.0094 Tc 0.0803 Tw (Elek Straub,) Tj 50.16 0 TD /F3 10.08 Tf -0.0376 Tc 0.2382 Tw ( Chairman and Chief Executive Officer. See biography above.) Tj -64.56 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0038 Tc 0.3335 Tw (L\341szl\363 Bodn\341r,) Tj 61.92 0 TD /F3 10.08 Tf -0.0099 Tc 0.4505 Tw ( Chief Logistics Officer. Mr. Bodn\341r was appointed MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.03 Tc 0.5306 Tw (s Chief Logistics Officer on March 16, 1999. His) Tj -76.32 -12 TD -0.0263 Tc 0.4189 Tw (key assignment is coordination of MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0201 Tc 0.4607 Tw (s IT activities. He joined the Miskolc Post Directorate in 1971, and served in posts of) Tj 0 -12 TD -0.0579 Tc 4.0536 Tw (increasing responsibilities. He was Director of the Sopron Post Directorate in 1989-1990, and Head of the Sopron) Tj T* -0.0549 Tc 2.9756 Tw (Telecommunications Directorate from 1990 until 1999. In 1998 and 1999 he supervised the modernization of MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.1214 Tc (s) Tj T* -0.0512 Tc 0.2518 Tw (organization. From January 1, 1999 he served as Director of the West Hungary Technical Directorate.) Tj 14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0107 Tc 0.1004 Tw (John Brady,) Tj 48.72 0 TD /F3 10.08 Tf -0.0015 Tc 0.2022 Tw ( Chief Financial Officer. Mr. Brady was appointed MAT\301V) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0381 Tc 0.2654 Tw (s Chief Financial Officer on June 1, 1999. He worked) Tj -63.12 -12 TD -0.0397 Tc 1.0518 Tw (for Xerox and Pepsi Cola between 1975 and 1985 in the financial and planning fields. He filled several positions at MCI Inc.) Tj 0 -12 TD -0.0446 Tc 1.6186 Tw (From 1993, he directed the market research unit, then the domestic strategy division, and acted as Director responsible for) Tj T* -0.0376 Tc 1.2916 Tw (planning. He became financial officer of the Domestic Long-distance Calls Business Unit at Ameritech in 1993. Then he was) Tj T* -0.0285 Tc 0.2292 Tw (appointed Vice President of TeleDenmark, a subsidiary of SBC-Ameritech in Europe.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.047 Tc 0.0427 Tw (William J. Edwards,) Tj 83.04 0 TD /F3 10.08 Tf -0.0248 Tc 0.2254 Tw ( Executive Officer. See biography above.) Tj -97.44 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf -0.0202 Tc 0.35 Tw (Ott\363 Gecser,) Tj 50.88 0 TD /F3 10.08 Tf -0.0121 Tc 0.4677 Tw ( Chief Marketing Officer. In December 1996, Mr. Gecser joined MAT\301V as Chief Marketing Officer. He worked) Tj -65.28 -12 TD -0.0549 Tc 0.7215 Tw (for Marubeni Corp., a Japanese trading house, as a sales representative in the Mechanical Engineering Department from 1980) Tj 0 -12 TD -0.0757 Tc 1.0563 Tw (through 1988, and in 1988 he was appointed Hungarian Director of Marubeni Hungary Kft. From 1989 to 1992, he served as) Tj T* -0.0344 Tc 0.9093 Tw (Senior Vice President and COO for Fujifilm Hungary Kft. In 1992, he joined the Fotex Group as Senior Deputy CEO and was) Tj T* -0.0608 Tc 1.3948 Tw (responsible for coordinating the operation of the companies held by the Fotex Group and coordinating the launching of new) Tj T* -0.0493 Tc 0.25 Tw (products for the Fotex Group.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0172 Tc 0.0726 Tw (Dr. Mark von Lillienskiold,) Tj 112.56 0 TD /F3 10.08 Tf -0.0248 Tc 0.2254 Tw ( Executive Officer. See biography above.) Tj -126.96 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.0377 Tc 0.0521 Tw (Manfred Ohl,) Tj 55.44 0 TD /F3 10.08 Tf -0.0095 Tc 0.2581 Tw ( Chief Technical Officer. Deutsche Telekom appointed Mr. Ohl Chief Technical Officer of MAT\301V in November) Tj -69.84 -12 TD -0.0499 Tc 1.5077 Tw (1998. He was Head of the Technical and Network Business Unit in Frankfurt am Main, which is a business unit serving the) Tj 0 -12 TD -0.0433 Tc 0.447 Tw (telecommunications demand of international companies. During the construction of the telecommunications infrastructure in the) Tj T* -0.0603 Tc 3.2257 Tw (new federal states of Germany, Mr. Ohl worked for the Headquarters and was responsible for turn-key cable network) Tj T* -0.0404 Tc 1.6952 Tw (construction. Then Mr. Ohl was responsible for reconciliation of the Business Plan with the investment demand for network) Tj T* -0.0395 Tc 0.2402 Tw (infrastructure in the area of Deutsche Telekom, and for central coordination of investments.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F1 10.08 Tf 0.04 Tc 0.2898 Tw (Dr. Tam\341s P\341sztory,) Tj 83.28 0 TD /F3 10.08 Tf -0.042 Tc 0.5876 Tw ( Chief Human Resources and Legal Officer. Dr. P\341sztory has been the Executive Director of the Human) Tj -97.68 -12 TD -0.0265 Tc 1.5824 Tw (Resources Branch since MAT\301V's establishment. He was appointed Deputy Chief Officer of MAT\301V in July 1995 and Chief) Tj 0 -12 TD -0.04 Tc 4.0056 Tw (Human Resources and Legal Officer of MAT\301V in February 1996. He is responsible for MAT\301V's operational and) Tj T* -0.0476 Tc 1.0811 Tw (organizational development activity. He joined MAT\301V's predecessor in 1969 and since 1980 has been in various positions in) Tj T* -0.0836 Tc 0.2842 Tw (the human resources area.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj T* ( ) Tj ET endstream endobj 295 0 obj 5687 endobj 293 0 obj << /Type /Page /Parent 290 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F6 42 0 R >> /ProcSet 2 0 R >> /Contents 294 0 R >> endobj 297 0 obj << /Length 298 0 R >> stream BT 268.08 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0307 Tc 0 Tw (lxxxvii) Tj -119.04 693.6 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 0 TD /F4 10.08 Tf 0.0047 Tc 0.0044 Tw (ITEM 11 ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0057 Tc 0.0034 Tw (COMPENSATION OF DIRECTORS AND OFFICERS) Tj -121.2 -11.76 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -11.76 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0535 Tc 0.2541 Tw (For the year ended December 31, 1999, the aggregate compensation of the Board of Directors was HUF 13.8 million.) Tj -14.4 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0659 Tc 0.6581 Tw (For the year ended December 31, 1999, the aggregate compensation of the members of the Supervisory Board was HUF 9.5) Tj -14.4 -12 TD 0.0404 Tc 0 Tw (million.) Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0431 Tc 0.2437 Tw (For the year ended December 31, 1999, the aggregate compensation of the Executive Officers was HUF 218.3 million.) 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Tj 0 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.046 Tc 0.5946 Tw (From June 29, 1998 to July 1, 1998, MAT\301V Rt. issued through a public offering 7,000,000 convertible bearer bonds with a) Tj -14.4 -12 TD -0.0608 Tc 0.9084 Tw (nominal value of HUF 1 each. Each bond may be converted into one ordinary share. The bonds bear interest at the rate of 10) Tj 0 -12 TD -0.0543 Tc 0.2549 Tw (percent. Unless previously converted, the bonds pays principal and interest at maturity. The bonds mature on June 30, 2002.) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 14.4 -12 TD ( ) Tj 0 0 TD /F3 10.08 Tf -0.0429 Tc 2.4569 Tw (The objective of issuing the convertible bonds was to establish a closer tie between the interests of shareholders and) Tj -14.4 -12 TD -0.0617 Tc 2.1117 Tw (management in the performance of the Company. Senior and corporate level middle managers having at least three years) Tj 0 -12 TD -0.0551 Tc 2.0241 Tw (continuous tenure with the Company or one of its wholly owned subsidiaries were entitled to subscribe for the bonds. The) Tj T* -0.0605 Tc 0.2612 Tw (maximum number of bonds that may be allocated to each employee is as follows:) Tj T* /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD /F3 10.08 Tf -0.0286 Tc 0.2293 Tw (Chief Executive Officer: 140,000 bonds;) Tj -18 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD /F3 10.08 Tf -0.0394 Tc 0.24 Tw (Executive Committee members and Chief Officers: 65,000 bonds per individual;) Tj -18 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD /F3 10.08 Tf -0.0436 Tc 2.5586 Tw (Executive Directors, Directors of mid-level units, and top managers of consolidated subsidiaries wholly owned by) Tj 0 -12 TD -0.0302 Tc 0.2309 Tw (MAT\301V Rt.: 32,000 bonds per individual; and) Tj -18 -12 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 0 -12.48 TD /F5 10.08 Tf -5.2781 Tc 0 Tw (\267) Tj 4.56 0 TD /F6 10.08 Tf 0 Tc 0.0072 Tw ( ) Tj 13.44 0 TD /F3 10.08 Tf -0.0554 Tc 0.2561 Tw (Heads of Department at the headquarters and Deputy Directors of mid-level units: 21,000 bonds per individual.) Tj -17.28 -24 TD -0.0481 Tc 0.2487 Tw (On July 1, 1998, 4.2 million bonds were allocated to management. 2.8 million bonds remained unallocated.) Tj 0.24 -24 TD -0.0578 Tc 1.5728 Tw (One third of the bonds may be converted into ordinary shares in each year from July 1, 1999 until maturity. The Bonds) Tj -14.4 -12 TD -0.0361 Tc 0.2367 Tw (cannot be converted after maturity.) Tj 14.4 -24 TD -0.0521 Tc 0.5433 Tw (The conversion price of the bonds is the Hungarian Forint equivalent of U.S.$5.75 per bond, calculated based on the middle) Tj -14.4 -12 TD -0.0532 Tc 0.4938 Tw (U.S. dollar/Hungarian Forint exchange rate quoted by the National Bank of Hungary on the day of conversion, less the nominal) Tj 0 -12 TD -0.037 Tc 2.4522 Tw (value of the bond, but not less than the initial public offering price of HUF 730 per share. The general meeting of the) Tj T* -0.0637 Tc 0.9561 Tw (shareholders determined and approved the conversion price, which is based on MAT\301V's average share price on the Budapest) Tj T* -0.0535 Tc 0.2541 Tw (Stock Exchange converted into U.S. dollars on May 29, 1998 using the currency exchange rate of the National Bank of Hungary.) Tj 14.4 -24 TD -0.0487 Tc 0.3294 Tw (Total compensation expense of HUF 143 million will be recognized over the three year vesting period. The amount amortized) Tj -14.4 -12 TD -0.0473 Tc 0.5714 Tw (from July 1, 1998 to December 31, 1998 is HUF 24 million. The amount amortized in 1999 of HUF 42 million reflects the same) Tj 0 -12 TD -0.0641 Tc 0.2648 Tw (amortization as in 1998, but reduced due to the forfeit of 402,000 bonds by managers.) 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Tj 287.76 0 TD -0.1368 Tc (0) Tj 44.88 0 TD (410) Tj 54 0 TD (526) Tj 63.12 0 TD (2) Tj -449.76 -11.04 TD 0.0285 Tc 0.1645 Tw ( Movement in other financial assets .............) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.193 Tc (......) Tj 265.92 0 TD -0.0564 Tc (\(7,370\)) Tj 59.76 0 TD -0.0708 Tc (6,638) Tj 48.24 0 TD -0.0564 Tc (\(2,458\)) Tj 65.52 0 TD -0.0785 Tc (\(10\)) Tj -439.44 -11.04 TD 0.0455 Tc 0.1474 Tw ( Proceeds from sale of fixed assets ....................) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205) Tj 0.193 Tc (....) Tj 271.68 0 TD -0.0708 Tc (1,097) Tj 54 0 TD (2,437) Tj 54 0 TD (3,804) Tj 65.52 0 TD -0.1368 Tc (15) Tj ET 277.92 418.08 43.2 0.72 re f 331.92 418.08 43.2 0.72 re f 385.92 418.08 43.2 0.72 re f 439.92 418.08 43.2 0.72 re f BT 27.84 404.88 TD 0 Tc 0.193 Tw ( ) Tj 7.2 0 TD /F4 9.12 Tf 0.0279 Tc -0.0083 Tw (Net cash flows utilized in investing activities before) Tj -7.2 -11.04 TD /F3 9.12 Tf 0 Tc 0.193 Tw ( ) Tj 14.4 0 TD /F4 9.12 Tf 0.0503 Tc -0.0307 Tw (extraordinary items) Tj 74.88 0 TD /F3 9.12 Tf 0.193 Tc 0 Tw ( .................) Tj 2.0861 Tc (\205\205\205\205\205\205\205) Tj 0.193 Tc (................) Tj 172.08 0.24 TD -0.0664 Tc (\(99,829\)) Tj 49.44 0 TD -0.0742 Tc (\(114,357\)) Tj 54 0 TD (\(126,460\)) Tj 70.08 0 TD -0.0901 Tc (\(501\)) Tj -434.88 -11.28 TD 0.0433 Tc 0.1497 Tw ( Extraordinary proceeds ................) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205) Tj 0.193 Tc (........................) Tj 271.68 0 TD -0.0708 Tc (7,431) Tj 70.08 0 TD -0.1368 Tc (0) Tj 54 0 TD (0) Tj 54 0 TD (0) Tj ET 277.92 379.92 43.2 0.72 re f 331.92 379.92 43.2 0.72 re f 385.92 379.92 43.2 0.72 re f 439.92 379.92 43.2 0.72 re f BT 27.84 366.72 TD 0 Tc 0.193 Tw ( ) Tj 7.2 0 TD /F4 9.12 Tf 0.0366 Tc -0.0169 Tw (Net cash flows from investing activities) Tj 149.04 0 TD /F3 9.12 Tf 0.193 Tc 0 Tw ( ..................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (..........) Tj 105.12 0.24 TD -0.0664 Tc (\(92,398\)) Tj 49.44 0 TD -0.0742 Tc (\(114,357\)) Tj 54 0 TD (\(126,460\)) Tj 70.08 0 TD -0.0901 Tc (\(501\)) Tj -434.88 -15.6 TD /F4 9.12 Tf 0.0401 Tc -0.0204 Tw (Cash flows from financing activities) Tj 0 -10.8 TD /F3 9.12 Tf -0.0545 Tc 0.2475 Tw ( Dividends paid to shareholders and minority interest ) Tj 2.0861 Tc 0 Tw (\205\205\205) Tj 0.193 Tc (...) 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Tj -113.52 -23.52 TD 0.0052 Tc 0.0039 Tw (CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY) Tj 93.6 -21.6 TD /F4 7.92 Tf 0.0574 Tc -0.2045 Tw (Shares of) Tj 117.12 0 TD 0.0084 Tc 0 Tw (Additional) Tj 123.84 0 TD -0.0114 Tc (Total) Tj -240 -11.76 TD 0.1289 Tc (common) Tj 60.48 0 TD 0.1264 Tc (Common) Tj 60.72 0 TD -0.0095 Tc (Paid-in) Tj 55.2 0 TD 0.0099 Tc (Retained) Tj 49.68 0 TD 0.0479 Tc (shareholders') Tj -226.56 -11.76 TD 0.0498 Tc -0.1969 Tw (stock \(1\)) Tj 67.68 0 TD 0.0547 Tc 0 Tw (stock) Tj 54.96 0 TD 0.0127 Tc (capital) Tj 54.48 0 TD 0.0449 Tc (earnings) Tj 61.92 0 TD -0.0077 Tc (equity) Tj -176.16 -12.48 TD 0.0285 Tc -0.1756 Tw (\(in HUF millions, except share amounts\)) Tj ET 195.12 671.28 57.6 0.72 re f 259.92 671.28 50.4 0.72 re f 317.52 671.28 50.4 0.72 re f 375.12 671.28 50.4 0.72 re f 432.72 671.28 50.4 0.72 re f BT 27.84 638.64 TD /F4 9.12 Tf 0.0081 Tc 0.0116 Tw (Balance at 1 January 1997) Tj 102 0 TD /F3 9.12 Tf 0.193 Tc 0 Tw (..............) 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Tj 370.32 0 TD -0.0564 Tc (\(8,298\)) Tj 57.6 0 TD (\(8,298\)) Tj -427.92 -11.76 TD 0.1477 Tc 0.0452 Tw (Net income................................................) Tj 371.52 0 TD -0.0818 Tc 0 Tw (78,632) Tj 57.6 0 TD (78,632) Tj -429.12 -16.8 TD /F4 9.12 Tf 0.0087 Tc 0.011 Tw (Balance at December 31, 1999) Tj 115.92 0 TD /F3 9.12 Tf 2.0861 Tc 0 Tw (\205) Tj 0.193 Tc (........) Tj 2.0861 Tc (\205) Tj 0.193 Tc (.) 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Tj 0 -9.36 TD 0.0038 Tc 0.8723 Tw (This share is held by the Ministry of Transport, Telecommunications and Water Management and bestows certain rights on its owner, including access to) Tj T* 0.0035 Tc 0.2584 Tw (information, and the appointment of a Director. This share may only be held by the Government or its nominee. The Company has been authorized to issue 7) Tj T* 0.0036 Tc 0.1415 Tw (million ordinary shares for the purpose of fulfilling its obligation in connection with any conversion of the management incentive program bonds described in) Tj T* 0.0032 Tc 0 Tw (Note 20.) Tj -15.84 -18.72 TD 0.0014 Tc 0 Tw (\(2\)) Tj 15.84 0 TD 0.0033 Tc 0.2818 Tw (The Company adopted IAS 19 "Employee Benefits" \(revised 1997\) and has recognized the cumulative effect of the change in accounting directly in equity for) Tj 0 -9.36 TD 0.0034 Tc -0 Tw (the liability of HUF 2,914 million net of deferred tax of HUF 408 million as determined by actuarial valuation at January 1, 1998 \(see note 21\).) Tj -15.84 -18.72 TD 0.0014 Tc 0 Tw (\(3\)) Tj 15.84 0 TD 0.0047 Tc -0.0014 Tw (The distri) Tj 30.72 0 TD 0.003 Tc 0.1832 Tw (butable reserves of the Company under Hungarian law at December 31, 1998 and 1999 amounted to approximately HUF 130,000 million and HUF) Tj -30.72 -9.36 TD 0.0037 Tc -0 Tw (173,000 million, respectively.) Tj 65.28 -155.52 TD /F3 10.08 Tf -0.0461 Tc 0.2468 Tw (The accompanying notes form an integral part of these consolidated financial statements.) Tj ET endstream endobj 342 0 obj 7687 endobj 340 0 obj << /Type /Page /Parent 328 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 341 0 R >> endobj 344 0 obj << /Length 345 0 R >> stream BT 277.2 63.12 TD 0 0 0 rg /F1 10.08 Tf 0 Tc 0 Tw (cii) Tj -249.36 681.84 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (1 Principal activities) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0381 Tc 0.8388 Tw (Magyar T\341vk\366zl\351si Rt. \(the "Company" or "MAT\301V Rt."\) with its subsidiaries form the "Group" or "MAT\301V". The Group is) Tj -14.4 -12 TD -0.028 Tc 1.3429 Tw (the principal supplier of telecommunications services in Hungary. MAT\301V is a full-service telecommunications provider. The) Tj 0 -12 TD -0.0603 Tc 1.6209 Tw (Company has exclusive rights through December 2001 to provide domestic long distance and international public telephony) Tj T* -0.0515 Tc 0.8389 Tw (services throughout Hungary. Of the 54 local concession areas, the Company has exclusive rights to provide local public fixed) Tj T* -0.0549 Tc 0.3516 Tw (line telephony service in 36 areas, 31 of which extend through December 2001 and five through May 2002. MAT\301V is Hungary's) Tj T* -0.0477 Tc 1.6883 Tw (largest mobile telecommunications provider. In addition, the Company provides leased lines, data transmission services and) Tj T* -0.0401 Tc 2.1792 Tw (corporate network services, cable television services, security monitoring services and sells and leases telecommunications) Tj T* -0.0288 Tc 0 Tw (equipment.) Tj 0 -24 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (2 Basis of presentation) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0911 Tc 2.1835 Tw (The Company was incorporated in Hungary on December 31, 1991 and commenced business on January 1, 1992. The) Tj -14.4 -12 TD -0.1061 Tc 0 Tw (Company) Tj -3.3533 Tc (\222) Tj -0.0446 Tc 0.2452 Tw (s registered address is Krisztina k) Tj 179.52 0 TD -0.1512 Tc 0 Tw (\366) Tj 5.04 0 TD -0.066 Tc 0.2667 Tw (r\372t 55, 1013 Budapest, Hungary.) Tj -170.16 -24 TD -0.0512 Tc 2.1879 Tw (The consolidated financial statements have been prepared under the historical cost convention and in compliance with) Tj -14.4 -12 TD -0.062 Tc 1.4327 Tw (International Accounting Standards \("IAS"\). IAS 19 "Employee Benefits" \(revised 1997\) was adopted in 1998. The Company) Tj 0 -12 TD -0.0336 Tc 0.5771 Tw (recognized the cumulative effect of the change in accounting under IAS 19 directly in equity for the liability prior to January 1,) Tj T* -0.0808 Tc 0 Tw (1998.) Tj 14.4 -24 TD -0.0441 Tc 1.9997 Tw (The consolidated financial statements are shown in millions of Hungarian Forints \("HUF"\). For the convenience of the) Tj -14.4 -12 TD -0.0487 Tc 0.5427 Tw (reader, the consolidated financial statements for the year 1999 are also presented in millions of U.S. dollars \("USD"\) translated) Tj 0 -12 TD -0.046 Tc 2.3084 Tw (at a rate of HUF 252.52 to USD 1.00 \(the official rate of the National Bank of Hungary at December 31, 1999\). These) Tj T* -0.0698 Tc 2.4869 Tw (translations are unaudited. The effect of inflation is significant \(1997: 18.3%, 1998: 14.3%, 1999: 10.0%\) and should be) Tj T* -0.0467 Tc 0.2473 Tw (considered in evaluating the financial position, results of operations and cash flows of the Group.) Tj 14.4 -24 TD -0.0494 Tc 0.49 Tw (The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that) Tj -14.4 -12 TD -0.0291 Tc 0.2298 Tw (affect the amounts reported in the financial statements and notes thereto. Actual results could differ from those estimates.) Tj 0 -35.76 TD /F4 10.08 Tf 0.0044 Tc 0.0047 Tw (3 Statement of accounting policies) Tj 0 -23.76 TD /F0 10.08 Tf -0.0374 Tc 0.0263 Tw (\(a\) Principles of consolidation) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0356 Tc 0.9243 Tw (The consolidated financial statements include the financial statements of the Company, its majority owned subsidiaries and) Tj -14.4 -12 TD -0.052 Tc 0.3374 Tw (the subsidiaries over which the Company has effective control. Intercompany balances and transactions have been eliminated in) Tj 0 -12 TD -0.0278 Tc 0.2284 Tw (the consolidation.) Tj 14.4 -24 TD -0.0523 Tc 1.153 Tw (Associated companies \(companies for which the Company is able to demonstrate significant influence but not control\) and) Tj -14.4 -12 TD -0.0375 Tc 0.2382 Tw (joint ventures are accounted for in the consolidated financial statements using the equity method of accounting.) 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Tj 0 -24.24 TD /F0 10.08 Tf -0.0323 Tc 0.0213 Tw ( \(c\) Property, plant and equipment) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0392 Tc 1.3349 Tw (Property, plant and equipment are stated at historical cost less accumulated depreciation, except for certain assets which) Tj -14.4 -12 TD -0.04 Tc 1.0617 Tw (were revalued at incorporation. Cost in the case of the outside plant, comprises all expenditures including the cabling within) Tj 0 -12 TD -0.0539 Tc 0.3745 Tw (customers' premises and interest on related loans. When assets are retired or disposed of, the cost and accumulated depreciation) Tj T* -0.0548 Tc 1.1221 Tw (are removed from the accounts and any related gain or loss is recognized in the consolidated income statement. Maintenance) Tj T* -0.0816 Tc 0.2823 Tw (and repairs are charged to expense when incurred.) Tj 14.4 -24 TD -0.037 Tc 1.1471 Tw (Depreciation is calculated on a straight line basis from the time the assets are deployed over their remaining useful lives.) Tj -14.4 -12 TD -0.0535 Tc 0.2542 Tw (The Group regularly reviews these lives for consistency with current development plans and advances in technology.) Tj 14.4 -24 TD -0.047 Tc 0.2477 Tw (The useful lives assigned are as follows:) Tj 3.6 -36 TD -0.02 Tc 0.2206 Tw (Buildings ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205) Tj 384.48 0 TD -0.1028 Tc 0.3035 Tw (10 - 50 years) Tj -384.48 -12 TD -0.0467 Tc 0.2473 Tw (Duct, cable and other outside plant ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (...) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (.) Tj 384.48 0 TD -0.1028 Tc 0.3035 Tw (25 - 38 years) Tj -384.48 -12 TD -0.0711 Tc 0.2718 Tw (Telephone exchanges ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 389.52 0 TD -0.0974 Tc 0.2981 Tw (7 - 15 years) Tj -389.52 -12 TD -0.0362 Tc 0.2369 Tw (Other fixed assets ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205) Tj 0.2006 Tc (..) Tj 389.52 0 TD -0.0974 Tc 0.2981 Tw (3 - 12 years) Tj -407.52 -36.24 TD /F0 10.08 Tf -0.0532 Tc 0.0421 Tw (\(d\) Intangible assets) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0526 Tc 0.4367 Tw (Costs associated with developing internal computer software that has a probable benefit exceeding the cost beyond one year,) Tj -14.4 -12 TD -0.0612 Tc 1.7301 Tw (are recognized as an intangible asset. Expenditures which enhance and extend the benefits of computer software programs) Tj 0 -12 TD -0.0475 Tc 1.8398 Tw (beyond their original specifications and lives is recognized as a capital improvement and added to the original cost of the) Tj T* -0.0284 Tc 0 Tw (software.) Tj 14.4 -24 TD -0.0556 Tc 0.9339 Tw (Costs associated with the maintenance of existing computer software programs and for modifications for the Year 2000 are) Tj -14.4 -12 TD -0.0686 Tc 0.2692 Tw (expensed as incurred.) Tj 14.4 -24 TD -0.0454 Tc 0.801 Tw (Goodwill represents the excess of the cost of an acquisition over the fair value of the Group) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0476 Tc 0.9683 Tw (s share of the net assets of the) Tj -14.4 -12 TD -0.0477 Tc 0.5307 Tw (acquired subsidiary/associated undertaking at the date of acquisition. Goodwill on acquisitions is reported in the balance sheet) Tj 0 -12 TD -0.035 Tc 0.2357 Tw (as an intangible asset and is amortized using the straight-line method over its estimated useful life.) Tj ET endstream endobj 349 0 obj 4574 endobj 346 0 obj << /Type /Page /Parent 347 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R >> /ProcSet 2 0 R >> /Contents 348 0 R >> endobj 351 0 obj << /Length 352 0 R >> stream BT 276.24 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0757 Tc 0 Tw (civ) Tj -234 693.6 TD /F3 10.08 Tf -0.0468 Tc 1.3275 Tw (Intangible assets are amortized over their respective economic lives. Such assets are stated at cost less amortization on a) Tj -14.4 -12 TD -0.0417 Tc 0.2423 Tw (straight line basis over the following periods:) Tj 22.32 -23.52 TD -0.0672 Tc 0.2678 Tw (Concession costs ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205) Tj ET q 432.48 719.04 48.24 11.28 re h W n BT 432.48 721.2 TD -0.0974 Tc 0.2981 Tw (8 - 25 years) Tj ET Q BT 50.16 709.92 TD -0.0607 Tc 0.2614 Tw (Software ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj ET q 451.2 707.76 29.52 11.28 re h W n BT 451.2 709.92 TD -0.0963 Tc 0.297 Tw (5 years) Tj ET Q BT 50.16 698.64 TD -0.0404 Tc 0.2411 Tw (Leasehold interests ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205) Tj 0.2006 Tc (..) Tj ET q 451.2 696.48 29.52 11.28 re h W n BT 451.2 698.64 TD -0.0963 Tc 0.297 Tw (6 years) Tj ET Q BT 50.16 687.36 TD -0.0696 Tc 0.2702 Tw (Goodwill on purchase of subsidiaries ) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj ET q 432.48 685.2 48.24 11.28 re h W n BT 432.48 687.36 TD -0.0974 Tc 0.2981 Tw (5 - 20 years) Tj ET Q BT 27.84 663.36 TD /F0 10.08 Tf -0.0345 Tc 0.0235 Tw (\(e\) Leased assets) Tj 0 -23.76 TD /F1 10.08 Tf -0.0537 Tc 0.1434 Tw ( Lessor) Tj 14.4 -12 TD /F3 10.08 Tf -0.0527 Tc 1.807 Tw (Assets leased out under operating leases are included in property, plant and equipment in the balance sheet. They are) Tj -14.4 -12 TD -0.0372 Tc 1.4126 Tw (depreciated over their expected useful lives on a basis consistent with similar fixed assets. Rental income is recognized on a) Tj 0 -12 TD -0.0287 Tc 0.2294 Tw (straight-line basis over the lease term.) Tj 14.4 -24 TD /F1 10.08 Tf -0.0826 Tc 0 Tw (Lessee) Tj 0 -12 TD /F3 10.08 Tf -0.0593 Tc 1.0466 Tw (Leases of property, plant and equipment where the Group assumes substantially all the benefits and risks of ownership are) Tj -14.4 -12 TD -0.0334 Tc 1.6741 Tw (classified as finance leases. Finance leases are capitalized at the estimated present value of the underlying lease payments.) Tj 0 -12 TD -0.0438 Tc 1.9485 Tw (Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance) Tj T* -0.0581 Tc 1.2893 Tw (balance outstanding. The corresponding rental obligations, net of finance charges, are included in other payables and loans) Tj T* -0.0467 Tc 0.4437 Tw (and other borrowings. The interest element of the finance charge is charged to the income statement over the lease period. The) Tj T* -0.0422 Tc 0.2429 Tw (property, plant and equipment acquired under finance lease contracts is depreciated over the useful life of the asset.) Tj 14.4 -24 TD -0.05 Tc 0.6227 Tw (Costs in respect of operating leases are charged to the consolidated income statement on a straight line basis over the lease) Tj -14.4 -12 TD 0.0146 Tc 0 Tw (term.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0362 Tc 0.0252 Tw (\(f\) Inventories) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0346 Tc 1.1321 Tw (Inventories are stated at the lower of acquisition cost or net realizable value. Acquisition cost is calculated on a weighted) Tj -14.4 -12 TD -0.0639 Tc 0.2645 Tw (average basis.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0089 Tc -0.0022 Tw (\(g\) Receivables) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0385 Tc 1.0791 Tw (Receivables are stated at expected net realizable value, after provision for doubtful accounts. Amounts due and receivable) Tj -14.4 -12 TD -0.0587 Tc 0.2593 Tw (from other network operators are shown net where a right of set-off exists and the amounts are settled on a net basis.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0431 Tc 0.0321 Tw (\(h\) Cash and cash equivalents) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0559 Tc 1.0605 Tw (Cash and cash equivalents include cash in banks and all highly liquid deposits with maturities of three months or less and) Tj -14.4 -12 TD -0.0227 Tc 0.2234 Tw (exclude all overdrafts.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0058 Tc -0.0053 Tw ( \(i\) Deferred revenue) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0565 Tc 1.6213 Tw (A portion of fees charged to customers upon connection to the fixed line network prior to October 15, 1997 represented) Tj -14.4 -12 TD -0.045 Tc 1.0857 Tw (contributions to the cost of network construction. The capital contribution element of such fees was deferred and amortized to) Tj 0 -12 TD -0.033 Tc 0.9536 Tw (revenue over the life of the related assets. Legislation was enacted effective October 15, 1997 eliminating refunds of such fees) Tj T* -0.039 Tc 0.2396 Tw (and signaling the removal of any capital contribution element of future customer fees.) 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Tj 0 -24 TD /F1 10.08 Tf -0.0074 Tc 0.0972 Tw (\(ii\) Investment contribution fees) Tj T* /F3 10.08 Tf -0.0402 Tc 2.2808 Tw (Prior to July 1995, investment contribution fees were held as a provision for liabilities and charges due to their) Tj 0 -12 TD -0.0197 Tc 1.0947 Tw (indefinite legal refundability. Following the introduction of new legislation in July 1995, investment contribution fees) Tj T* -0.0547 Tc 1.4553 Tw (are refundable only until June 1) Tj 137.04 0 TD /F1 10.08 Tf 0.0898 Tc 0 Tw (,) Tj 2.64 0 TD /F3 10.08 Tf -0.0229 Tc 1.6155 Tw ( 2000. As the legislation removed the indefinite refundability provision, investment) Tj -139.68 -12 TD -0.0519 Tc 0.9443 Tw (contributions net of a provision to cover future repayments on termination of services are treated as deferred revenue) Tj 0 -12 TD -0.0474 Tc 0.248 Tw (and are credited to revenue in the consolidated income statements over the period the related assets are depreciated.) Tj 0 -24 TD /F1 10.08 Tf 0.024 Tc 0.0658 Tw (\(iii\) Entrance fees) Tj T* /F3 10.08 Tf -0.0407 Tc 0.2713 Tw (Beginning in July 1995, entrance fees replaced both connection fees and investment contribution fees. For entrance fees) Tj 0 -12 TD -0.0561 Tc 1.6834 Tw (charged prior to October 15, 1997, the capital contribution portion of the fee was treated as deferred revenue and) Tj T* -0.0469 Tc 1.1942 Tw (credited to revenue over the period the related assets are depreciated. The portion of the entrance fee covering non-) Tj T* -0.0491 Tc 1.5398 Tw (capitalized expenses was recognized as revenue upon connection. After October 15, 1997, the entire entrance fee is) Tj T* -0.0532 Tc 0.7339 Tw (recorded as revenue upon connection reflecting the change in related legislation and the advanced development of the) Tj T* -0.0361 Tc 0 Tw (network.) Tj -36 -24.24 TD /F0 10.08 Tf -0.044 Tc 0.0329 Tw (\(j\) Revenues) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0245 Tc 0.4652 Tw (Revenues for all services, shown net of VAT) Tj 179.76 0 TD /F1 10.08 Tf 0 Tc 0.0898 Tw ( ) Tj 2.88 0 TD /F3 10.08 Tf -0.0592 Tc 0.7399 Tw (and discounts and after eliminated sales within the Group, are recognized when) Tj -197.04 -12 TD -0.0552 Tc 0.393 Tw (products and services are provided. A proportion of the revenue received is paid to other operators for the use of their networks,) Tj 0 -12 TD -0.0561 Tc 0.7517 Tw (where appropriate. These revenues and costs are stated gross in these consolidated financial statements. Revenues earned from) Tj T* -0.0526 Tc 0.2532 Tw (connecting subscribers to the mobile network are recognized upon service activation.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0139 Tc 0.0029 Tw (\(k\) Operating expenses) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0571 Tc 0.2577 Tw (Research and development and advertising costs of HUF 8,534 million are expensed as incurred.) Tj -14.4 -24 TD -0.0354 Tc 0.236 Tw ( Provisions) Tj -0.0533 Tc 1.7059 Tw ( are recognized when the Group has a present legal or constructive obligation as a result of past events, it is) Tj 0 -12 TD -0.0434 Tc 1.7773 Tw (probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable) Tj T* -0.0406 Tc 0.2412 Tw (estimate of the amount of the obligation can be made.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0336 Tc 0.0226 Tw (\(l\) Foreign currencies) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0415 Tc 1.908 Tw (Monetary assets and liabilities denominated in foreign currencies are translated into HUF at the exchange rates at the) Tj -14.4 -12 TD -0.0655 Tc 0.8128 Tw (balance sheet date and exchange gains and losses are recognized immediately. Gains and losses that arise on foreign currency) Tj 0 -12 TD -0.0484 Tc 0.2491 Tw (transactions and financing activities are included under net interest and other charges.) 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Tj 0 -24.24 TD /F0 10.08 Tf -0.053 Tc 0.042 Tw (\(n\) Income tax) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0406 Tc 1.3345 Tw (Deferred tax is provided, using the liability method, for all temporary differences arising between tax bases of assets and) Tj -14.4 -12 TD -0.0434 Tc 0.5405 Tw (liabilities and their carrying values for financial reporting purposes. Currently enacted tax rates are used to determine deferred) Tj 0 -12 TD -0.0154 Tc 0.216 Tw (income tax.) Tj 14.4 -24 TD -0.0489 Tc 0.4095 Tw (The principal temporary differences arise from depreciation on property, plant and equipment, provisions for post retirement) Tj -14.4 -12 TD -0.0405 Tc 0.3051 Tw (benefits, deferred revenue, provisions for receivables, inventory, liabilities and charges, government loans and tax losses carried) Tj 0 -12 TD -0.0513 Tc 0.2519 Tw (forward. The net deferred tax asset is included in "Non current assets.") Tj 0 -24.24 TD /F0 10.08 Tf -0.013 Tc 0.0019 Tw (\(o\) Earnings per share) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0641 Tc 0.6311 Tw (Basic earnings per share is calculated by dividing income for the period by the weighted average number of common shares) Tj -14.4 -12 TD -0.0497 Tc 0.2504 Tw (outstanding. Diluted earnings per share is calculated by the treasury stock method.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0388 Tc 0.0278 Tw (\(p\) Pensions and other post-retirement benefits) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0555 Tc 0.2828 Tw (The Company adopted IAS 19 "Employee Benefits" \(revised 1997\) in 1998 and recognized the cumulative effect of the change) Tj -14.4 -12 TD -0.046 Tc 1.0298 Tw (in accounting directly in equity for the liability at January 1, 1998. Some group companies provide post-retirement meal and) Tj 0 -12 TD -0.0396 Tc 1.3082 Tw (other benefits to their retirees. Under IAS 19 the expected costs of these benefits are accrued over the period of employment) Tj T* -0.0484 Tc 0.4563 Tw (using a single actuarial method not tied to the funding of the plan. The valuation of these obligations has been carried out using) Tj T* -0.0189 Tc 0.2195 Tw (the projected unit cost method.) Tj 14.4 -24 TD -0.0539 Tc 0.4145 Tw (Payments to defined contribution pension plans are recognized as expense in the period in which they become due. Payments) Tj -14.4 -12 TD -0.0527 Tc 1.0094 Tw (amounted to HUF 826 million, HUF 1,272 million and HUF 1,616 million for the years ended December 31, 1997, 1998, and) Tj 0 -12 TD -0.0551 Tc 0.2557 Tw (1999, respectively. The Group also makes a payment to a supplementary defined contribution pension plan.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0696 Tc 0.0586 Tw (\(q\) Financial Instruments) Tj 0 -23.76 TD /F1 10.08 Tf 0 Tc 0.0898 Tw ( ) Tj 15.84 0 TD /F3 10.08 Tf -0.0454 Tc 3.126 Tw (Financial instruments carried on the balance sheet include cash and bank balances, investments, receivables, trade) Tj -15.84 -12 TD -0.0502 Tc 0.7308 Tw (creditors, leases and borrowings. The particular recognition methods adopted are disclosed in the individual policy statements) Tj 0 -12 TD -0.0283 Tc 0.229 Tw (associated with each item.) Tj 14.4 -24 TD -0.0714 Tc 1.8854 Tw (Exchange gains and losses and hedging costs arising on contracts entered into as hedges are recognized in the income) Tj -14.4 -12 TD -0.056 Tc 1.0247 Tw (statement in the same period as the exchange differences on the items covered by the hedge transactions. Gains and losses on) Tj 0 -12 TD -0.0584 Tc 0.259 Tw (contracts which are no longer designated as hedged are included in the income statement.) 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Tj -14.4 -36 TD /F4 10.08 Tf 0.0042 Tc 0.005 Tw (6 Receivables) Tj 375.36 -23.04 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -4.32 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 599.04 43.2 0.72 re f 429.12 599.04 0.72 0.72 re f 429.84 599.04 10.08 0.72 re f 439.92 599.04 0.72 0.72 re f 440.64 599.04 42.48 0.72 re f BT 400.08 577.44 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 586.56 43.2 0.72 re f 439.92 586.56 43.2 0.72 re f BT 27.84 553.44 TD /F3 10.08 Tf -0.0391 Tc 0.2397 Tw (Domestic trade receivables) Tj 0 -12 TD 0.2006 Tc 0 Tw (.........................................................................................) Tj 372.48 12 TD -0.0926 Tc (54,856) Tj 54 0 TD (67,342) Tj -426.48 -24 TD -0.0392 Tc 0.2398 Tw (Foreign trade receivables) Tj 0 -12 TD 0.2006 Tc 0 Tw (.........................................................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..........................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (.) 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The allowance for doubtful) Tj 0 -12 TD -0.0875 Tc 0.2881 Tw (accounts and changes therein for 1998 and 1999 are as follows:) Tj 375.36 -23.52 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -4.32 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 343.2 43.2 0.72 re f 429.12 343.2 0.72 0.72 re f 429.84 343.2 10.08 0.72 re f 439.92 343.2 0.72 0.72 re f 440.64 343.2 42.48 0.72 re f BT 400.08 321.6 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 330.72 43.2 0.72 re f 439.92 330.72 43.2 0.72 re f BT 27.84 297.6 TD /F3 10.08 Tf -0.043 Tc 0.2437 Tw (Allowance, beginning of period ) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (.............................................................................) Tj 371.28 0 TD -0.0821 Tc (\(8,519\)) Tj 48.96 0 TD -0.0908 Tc (\(12,498\)) Tj -420.24 -12 TD -0.0774 Tc 0.278 Tw (Charged to expense ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (..........................................................) 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Tj 57.36 0 TD /F3 10.08 Tf -0.1183 Tc (\(55\)) Tj 34.08 0 TD -0.0821 Tc (\(1,238\)) Tj 58.32 0 TD (\(1,095\)) Tj 48.96 0 TD (\(6,767\)) Tj 46.8 0 TD (\(2,211\)) Tj 70.8 0 TD -0.1512 Tc (0) Tj 19.2 0 TD -0.0908 Tc (\(11,366\)) Tj ET 151.2 482.4 36 0.72 re f 198 482.4 36 0.72 re f 244.8 482.4 47.52 0.72 re f 303.12 482.4 38.16 0.72 re f 352.08 482.4 36 0.72 re f 398.88 482.4 36 0.72 re f 445.68 482.4 37.44 0.72 re f BT 27.84 460.8 TD -0.0867 Tc 0.2874 Tw ( December 31, 1999 ) Tj 84.96 0 TD /F7 10.08 Tf 0.0072 Tc 0 Tw (.) Tj 4.0824 Tc (\205\205) Tj 0.0072 Tc (.) Tj 50.64 0 TD /F3 10.08 Tf -0.0808 Tc (3,764) Tj 41.76 0 TD -0.0926 Tc (74,743) Tj 53.28 0 TD -0.1009 Tc (188,571) Tj 48.96 0 TD (335,837) Tj 51.84 0 TD -0.0926 Tc (76,193) Tj 46.8 0 TD (31,011) Tj 43.2 0 TD -0.1009 Tc (710,119) Tj ET 151.2 456.48 36 0.72 re f 151.2 455.04 36 0.72 re f 198 456.48 36 0.72 re f 198 455.04 36 0.72 re f 244.8 456.48 47.52 0.72 re f 244.8 455.04 47.52 0.72 re f 303.12 456.48 38.16 0.72 re f 303.12 455.04 38.16 0.72 re f 352.08 456.48 36 0.72 re f 352.08 455.04 36 0.72 re f 398.88 456.48 36 0.72 re f 398.88 455.04 36 0.72 re f 445.68 456.48 37.44 0.72 re f 445.68 455.04 37.44 0.72 re f BT 27.84 433.44 TD /F4 10.08 Tf 0.0043 Tc 0.0048 Tw ( Depreciation) Tj 0 -12.48 TD /F3 10.08 Tf -0.1011 Tc 0.3017 Tw ( January 1, 1999) Tj 0 -12 TD 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (............) 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Tj 182.4 0 TD -0.0808 Tc (9,961) Tj 53.28 0 TD -0.0926 Tc (37,530) Tj 43.92 0 TD -0.1009 Tc (114,556) Tj 51.84 0 TD -0.0926 Tc (35,372) Tj 90 0 TD -0.1009 Tc (197,419) Tj ET 198 354.96 36 0.72 re f 198 353.52 36 0.72 re f 244.8 354.96 47.52 0.72 re f 244.8 353.52 47.52 0.72 re f 303.12 354.96 38.16 0.72 re f 303.12 353.52 38.16 0.72 re f 352.08 354.96 36 0.72 re f 352.08 353.52 36 0.72 re f 445.68 354.96 37.44 0.72 re f 445.68 353.52 37.44 0.72 re f BT 27.84 331.92 TD /F4 10.08 Tf 0.0029 Tc 0.0062 Tw ( Net book value) Tj 0 -12.48 TD /F3 10.08 Tf -0.0867 Tc 0.2874 Tw ( December 31, 1999 ) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (......) Tj 135.6 0 TD -0.0808 Tc (3,764) Tj 41.76 0 TD -0.0926 Tc (64,782) Tj 53.28 0 TD -0.1009 Tc (151,041) Tj 48.96 0 TD (221,281) Tj 51.84 0 TD -0.0926 Tc (40,821) Tj 46.8 0 TD (31,011) Tj 43.2 0 TD -0.1009 Tc (512,700) Tj ET 151.2 315.12 36 0.72 re f 151.2 313.68 36 0.72 re f 198 315.12 36 0.72 re f 198 313.68 36 0.72 re f 244.8 315.12 47.52 0.72 re f 244.8 313.68 47.52 0.72 re f 303.12 315.12 38.16 0.72 re f 303.12 313.68 38.16 0.72 re f 352.08 315.12 36 0.72 re f 352.08 313.68 36 0.72 re f 398.88 315.12 36 0.72 re f 398.88 313.68 36 0.72 re f 445.68 315.12 37.44 0.72 re f 445.68 313.68 37.44 0.72 re f BT 27.84 292.08 TD /F4 10.08 Tf 0.0029 Tc 0.0062 Tw ( Net book value) Tj 0 -12.48 TD /F3 10.08 Tf -0.0262 Tc 0.2269 Tw ( December 31, 1998 ....) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (..) Tj 135.6 0 TD -0.0808 Tc (3,766) Tj 41.76 0 TD -0.0926 Tc (53,279) Tj 53.28 0 TD -0.1009 Tc (140,436) Tj 48.96 0 TD (185,291) Tj 51.84 0 TD -0.0926 Tc (33,721) Tj 46.8 0 TD (33,171) Tj 43.2 0 TD -0.1009 Tc (449,664) Tj ET 151.2 275.28 36 0.72 re f 151.2 273.84 36 0.72 re f 198 275.28 36 0.72 re f 198 273.84 36 0.72 re f 244.8 275.28 47.52 0.72 re f 244.8 273.84 47.52 0.72 re f 303.12 275.28 38.16 0.72 re f 303.12 273.84 38.16 0.72 re f 352.08 275.28 36 0.72 re f 352.08 273.84 36 0.72 re f 398.88 275.28 36 0.72 re f 398.88 273.84 36 0.72 re f 445.68 275.28 37.44 0.72 re f 445.68 273.84 37.44 0.72 re f BT 42.24 252.48 TD -0.051 Tc 0.2516 Tw (Additions to capital work in progress are shown net of transfers to assets in service.) Tj 0 -24 TD -0.052 Tc 0.7687 Tw (Included in additions to fixed assets at 31 December 1999 are assets subject to finance leases capitalized with a gross book) Tj -14.4 -12 TD -0.0356 Tc 0.2363 Tw (value of HUF 1,144 million and net book value of HUF 952 million.) 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Tj 377.52 0 TD -0.0808 Tc (4,333) Tj 54 0 TD (6,379) Tj -59.04 -12.72 TD -0.0926 Tc (36,297) Tj 54 0 TD (49,300) Tj ET 385.92 645.6 43.2 0.72 re f 439.92 645.6 43.2 0.72 re f BT 27.84 624 TD -0.0412 Tc 0.2419 Tw (Accumulated amortization ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (..........................................................................) Tj 366.24 0 TD -0.0908 Tc (\(11,516\)) Tj 54 0 TD (\(16,293\)) Tj -47.76 -12.72 TD -0.0926 Tc (24,781) Tj 54 0 TD (33,007) Tj ET 385.92 620.88 43.2 0.72 re f 439.92 620.88 43.2 0.72 re f 385.92 608.16 43.2 0.72 re f 385.92 606.72 43.2 0.72 re f 439.92 608.16 43.2 0.72 re f 439.92 606.72 43.2 0.72 re f BT 27.84 573.6 TD /F4 10.08 Tf 0.0056 Tc 0.0035 Tw (10 Other non current assets) Tj 375.36 -23.04 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -4.32 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 547.2 43.2 0.72 re f 429.12 547.2 0.72 0.72 re f 429.84 547.2 10.08 0.72 re f 439.92 547.2 0.72 0.72 re f 440.64 547.2 42.48 0.72 re f BT 400.08 525.6 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 534.72 43.2 0.72 re f 439.92 534.72 43.2 0.72 re f BT 27.84 501.6 TD /F3 10.08 Tf -0.0386 Tc 0.2393 Tw (Net deferred tax asset \(note 19\) .) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 377.52 0 TD -0.0808 Tc (2,547) Tj 54 0 TD (3,379) Tj -431.52 -12 TD -0.0475 Tc 0.2481 Tw (Assets held for disposal ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 385.2 0 TD -0.1512 Tc (913) Tj 54 0 TD (589) Tj -439.2 -12 TD -0.0746 Tc 0.2752 Tw (Other non current assets ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 377.52 0 TD -0.0808 Tc (1,940) Tj 54 0 TD (2,281) Tj -54 -12.72 TD (5,400) Tj 54 0 TD (6,249) Tj ET 385.92 474.48 43.2 0.72 re f 439.92 474.48 43.2 0.72 re f 385.92 461.76 43.2 0.72 re f 385.92 460.32 43.2 0.72 re f 439.92 461.76 43.2 0.72 re f 439.92 460.32 43.2 0.72 re f BT 27.84 427.2 TD /F4 10.08 Tf 0.0039 Tc 0.0052 Tw (11 Loans and other borrowings) Tj 375.36 -23.04 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -53.76 -12.96 TD /F4 10.08 Tf 0.0047 Tc 0 Tw (Notes) Tj 49.44 0.48 TD /F4 9.12 Tf 0 Tc (1998) Tj 54 0 TD (1999) Tj ET 385.92 400.8 43.2 0.72 re f 429.12 400.8 0.72 0.72 re f 429.84 400.8 10.08 0.72 re f 439.92 400.8 0.72 0.72 re f 440.64 400.8 42.48 0.72 re f BT 400.08 379.2 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 346.32 388.32 28.8 0.72 re f 385.92 388.32 43.2 0.72 re f 439.92 388.32 43.2 0.72 re f BT 27.84 355.2 TD /F3 10.08 Tf 0.1457 Tc 0.055 Tw (Bank ..............) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (..................................................................) Tj 327.6 0 TD -0.1074 Tc (\(a\)) Tj 39.84 0 TD -0.1009 Tc (152,800) Tj 54 0 TD (168,790) Tj -421.44 -12 TD 0.0886 Tc 0.1121 Tw (Bonds and bills of exchange ...............................) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (.....................................) Tj 327.6 0 TD -0.1074 Tc (\(b\)) Tj 44.88 0 TD -0.0926 Tc (17,123) Tj 54 0 TD (10,091) Tj -426.48 -12 TD 0.1747 Tc 0.0259 Tw (Government ................................................................................................) Tj 327.84 0 TD -0.0624 Tc 0 Tw (\(c\)) Tj 49.68 0 TD -0.0808 Tc (2,488) Tj 54 0 TD (2,113) Tj -431.52 -12 TD -0.0333 Tc 0.2339 Tw (Finance leases) Tj 0 -12 TD 0.2006 Tc 0 Tw (.............................................................................................) Tj 390.24 12 TD -0.1512 Tc (60) Tj 41.28 0 TD -0.0808 Tc (1,525) Tj -64.08 -24.72 TD -0.1009 Tc (172,471) Tj 54 0 TD (182,519) Tj ET 385.92 304.08 43.2 0.72 re f 439.92 304.08 43.2 0.72 re f 385.92 291.36 43.2 0.72 re f 385.92 289.92 43.2 0.72 re f 439.92 291.36 43.2 0.72 re f 439.92 289.92 43.2 0.72 re f BT 42.24 268.56 TD -0.0417 Tc 0.2423 Tw (At December 31, 1999, principal repayments fall due in:) Tj 367.44 -23.52 TD /F4 9.12 Tf 0.0432 Tc 0 Tw (after) Tj -234 -12.24 TD 0 Tc (2000) Tj 46.8 0 TD (2001) Tj 46.8 0 TD (2002) Tj 46.8 0 TD (2003) Tj 46.8 0 TD (2004) Tj 46.8 0 TD (2004) Tj 45.84 0 TD -0.0087 Tc (Total) Tj ET 166.32 228.96 36 0.72 re f 213.12 228.96 36 0.72 re f 259.92 228.96 36 0.72 re f 306.72 228.96 36 0.72 re f 353.52 228.96 36 0.72 re f 400.32 228.96 36 0.72 re f 447.12 228.96 36 0.72 re f BT 27.84 207.36 TD /F3 10.08 Tf 0.1661 Tc 0.0346 Tw (Total ........................) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (...........) Tj 145.68 0 TD -0.0926 Tc (17,804) Tj 46.8 0 TD (68,893) Tj 46.8 0 TD (23,477) Tj 46.8 0 TD (26,821) Tj 46.8 0 TD (21,995) Tj 46.8 0 TD (23,529) Tj 41.76 0 TD -0.1009 Tc (182,519) Tj ET 166.32 203.28 36 0.72 re f 166.32 201.84 36 0.72 re f 213.12 203.28 36 0.72 re f 213.12 201.84 36 0.72 re f 259.92 203.28 36 0.72 re f 259.92 201.84 36 0.72 re f 306.72 203.28 36 0.72 re f 306.72 201.84 36 0.72 re f 353.52 203.28 36 0.72 re f 353.52 201.84 36 0.72 re f 400.32 203.28 36 0.72 re f 400.32 201.84 36 0.72 re f 447.12 203.28 36 0.72 re f 447.12 201.84 36 0.72 re f endstream endobj 368 0 obj 7095 endobj 365 0 obj << /Type /Page /Parent 366 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 367 0 R >> endobj 370 0 obj << /Length 371 0 R >> stream BT 277.68 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0223 Tc 0 Tw (cx) Tj -235.44 693.6 TD /F3 10.08 Tf -0.059 Tc 1.4297 Tw (The effective borrowings costs \(total interest payable and other charges\) for MAT\301V's loans and borrowings were 20.9%,) Tj -14.4 -12 TD -0.0731 Tc 1.6604 Tw (18.6% and 14.4% for the years ended 1997, 1998, and 1999, respectively. The weighted average interest rate on short-term) Tj 0 -12 TD -0.0972 Tc 0.2978 Tw (borrowings \(denominated in Hungarian Forints and foreign currencies\) was 14.4% in 1998 and 12.7% in 1999.) Tj 14.4 -24 TD -0.1074 Tc 0 Tw (\(a\)) Tj 15.36 0 TD -0.069 Tc 0.2697 Tw (Bank loans analyzed by currency are as follows:) Tj 345.6 -23.52 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -4.32 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 681.84 43.2 0.72 re f 429.12 681.84 0.72 0.72 re f 429.84 681.84 10.08 0.72 re f 439.92 681.84 0.72 0.72 re f 440.64 681.84 42.48 0.72 re f BT 400.08 660.24 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 669.36 43.2 0.72 re f 439.92 669.36 43.2 0.72 re f BT 27.84 636.24 TD /F3 10.08 Tf -0.0641 Tc 0.2648 Tw (Hungarian Forint) Tj 0 -12 TD 0.2006 Tc 0 Tw (.......................................................................................................) Tj 372.48 12 TD -0.0926 Tc (50,981) Tj 54 0 TD (80,259) Tj -426.48 -24 TD 0.1752 Tc 0.0255 Tw (Deutsche Mark ..........................................................................................................) Tj 372.48 0 TD -0.0926 Tc 0 Tw (52,590) Tj 54 0 TD (42,779) Tj -426.48 -12 TD 0.1829 Tc 0.0177 Tw (U.S. Dollar ................................................................................................................) Tj 372.48 0 TD -0.0926 Tc 0 Tw (29,119) Tj 54 0 TD (24,006) Tj -426.48 -12 TD 0.1905 Tc 0.0102 Tw (Other .........................................................................................................................) Tj 372.48 0 TD -0.0926 Tc 0 Tw (20,110) Tj 54 0 TD (21,746) Tj -59.04 -12.72 TD -0.1009 Tc (152,800) Tj 54 0 TD (168,790) Tj ET 385.92 585.12 43.2 0.72 re f 439.92 585.12 43.2 0.72 re f 385.92 572.4 43.2 0.72 re f 385.92 570.96 43.2 0.72 re f 439.92 572.4 43.2 0.72 re f 439.92 570.96 43.2 0.72 re f BT 42.24 549.36 TD -0.0421 Tc 0.5459 Tw (Bank loans of HUF 120,047 million at December 31, 1999 were subject to variable interest rates. Variable rate loans raised) Tj -14.4 -12 TD -0.0688 Tc 0.9389 Tw (in Hungarian Forint are subject to interest rates between 14.4% and 17.3% and are based on various rates, including BUBOR) Tj 0 -12 TD -0.0425 Tc 0.6992 Tw (\(Budapest Interbank Offered Rate\), yield of treasury bill and the rate quoted by the National Bank of Hungary. Funds raised in) Tj T* -0.0627 Tc 1.7665 Tw (foreign currency with variable rates are subject to interest rates between 3.7% and 7.2% generally based on LIBOR plus a) Tj T* -0.0663 Tc 0.495 Tw (margin. The remaining foreign currency bank loans were subject to fixed interest rates between 4.6% and 8.6%. The bank loans) Tj T* -0.0693 Tc 0.27 Tw (have maturities ranging from 2000 to 2011.) Tj 14.4 -24 TD -0.054 Tc 1.4013 Tw (Included in bank loans are loans from the World Bank and the European Investment Bank \(collectively known as "IFI's"\)) Tj -14.4 -12 TD -0.0397 Tc 0.4678 Tw (totaling HUF 42,093 million and HUF 49,908 million at December 31, 1998 and 1999, respectively. The majority of these loans) Tj 0 -12 TD -0.0701 Tc 0.2708 Tw (are taken in foreign currency which are subject to rates of between 4.6% and 8.6% with maturities ranging from 2005 to 2011.) Tj 14.4 -24 TD -0.0575 Tc 0.4502 Tw (Included in bank loans are USD denominated loans amounting to HUF 5,878 million and subject to interest based on a fixed) Tj -14.4 -12 TD -0.058 Tc 0.9459 Tw (rate of 7.05%. These loans are the subject of a cross currency interest rate swap arrangement which entitles the Company to) Tj 0 -12 TD -0.0458 Tc 1.7622 Tw (receive USD interest and principal payments at fixed rates and obliges it to pay Euro interest and principal repayments at) Tj T* -0.0474 Tc 1.598 Tw (floating rates of the EURIBOR rate plus a margin of 0.66%. The Euro principal payments are fixed at a rate of 1 Euro =) Tj T* -0.0555 Tc 0.3572 Tw (1.0777USD. The timing and amount of the USD payments to be received exactly matches the underlying payment obligations on) Tj T* -0.0583 Tc 0.2589 Tw (the USD loan. The Company accounts for interest and foreign exchange movements on these loans at the Euro rate.) Tj 14.4 -24 TD -0.0395 Tc 0.8591 Tw (Effective January 3, 2000, an additional HUF 6,082 million in USD denominated loans subject to interest based on a fixed) Tj -14.4 -12 TD -0.058 Tc 0.7958 Tw (rate of 6.56%, are the subject of a cross currency swap agreement. This swap agreement entitles the Company to receive USD) Tj 0 -12 TD -0.0472 Tc 0.6592 Tw (interest and principal payments at fixed rates and oblige it to pay Euro interest and principal payments at fixed rates of 5.17%.) Tj T* -0.0517 Tc 0.679 Tw (Euro principal payments will be determined according to the Euro equivalent of the USD principal payments using the average) Tj T* -0.0628 Tc 0.5471 Tw (of the USD/EUR spot rates between October 27, 1999 and December 22, 1999. The timing and amount of the USD payments to) Tj T* -0.0379 Tc 0.2385 Tw (be received will exactly match the underlying payment obligations of the USD loans.) Tj ET endstream endobj 371 0 obj 5538 endobj 369 0 obj << /Type /Page /Parent 366 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 370 0 R >> endobj 373 0 obj << /Length 374 0 R >> stream BT 276.24 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0043 Tc 0 Tw (cxi) Tj -234 693.6 TD /F3 10.08 Tf -0.0628 Tc 0.7813 Tw (Loans totaling HUF 31,429 million and HUF 20,857 million at December 31, 1998 and 1999 are roll-over loans which can) Tj -14.4 -12 TD -0.0582 Tc 0.624 Tw (be prepaid at any time and may be drawn down in one to six month rolling periods. However, the facility under which the loans) Tj 0 -12 TD -0.0432 Tc 0.2438 Tw (are provided have final repayment dates falling due after one year and are, therefore, classified as long-term.) Tj 14.4 -24 TD -0.0526 Tc 1.299 Tw (Group loan agreements contain covenant restrictions which, among other things, require maintenance of certain financial) Tj -14.4 -12 TD -0.0528 Tc 0.6134 Tw (ratios. Breach of those covenants would make HUF 125,778 million due and payable in 30 days if not remedied. At December) Tj 0 -12 TD -0.04 Tc 0.5721 Tw (31, 1999, the Group was in compliance with these financial ratio requirements, the most restrictive was a debt to equity ratio of) Tj T* 0.0247 Tc 0 Tw (1.2.) Tj 14.4 -24 TD -0.0559 Tc 0.2566 Tw (\(b\) On March 24, 1998, the Company completed two domestic bond offerings. Five year bonds with a total amount of HUF 10) Tj -14.4 -12 TD -0.0387 Tc 0.4903 Tw (billion were sold with interest payable semiannually at an interest rate of 50 basis points over the average yield of the last three) Tj 0 -12 TD -0.0443 Tc 2.0995 Tw (auctions of 6 month Hungarian Treasury Bills. A one year bond offering in the total amount of HUF 5 billion was fully) Tj T* -0.0723 Tc 0.2729 Tw (subscribed with interest payable on maturity at a rate of 19.67%. This bond matured and was repaid on March 26, 1999.) Tj 14.4 -24 TD -0.0547 Tc 1.9803 Tw (\(c\) The interest-free Government loan is repayable in equal annual installments through 2007. The Government loan is) Tj -14.4 -12 TD -0.054 Tc 0.2546 Tw (denominated in Hungarian Forint.) Tj 14.4 -24 TD -0.0418 Tc 0.2724 Tw (At December 31, 1999, the Company had undrawn committed short-term credit facilities of approximately HUF 8,314 million) Tj -14.4 -12 TD -0.0399 Tc 0.8966 Tw (and undrawn committed long-term credit facilities of approximately HUF 85,546 million. Undrawn committed long term credit) Tj 0 -12 TD -0.0332 Tc 0.6452 Tw (facilities of HUF 54,464 million expire in 2001, HUF 25,332 million expire in 2002, HUF 700 million expire in 2005 and HUF) Tj T* -0.0312 Tc 0.2439 Tw (5,050 million have no specified expiration date. These credit facilities, should they be drawn down, are subject to an interest rate) Tj T* -0.0461 Tc 0.3907 Tw (of LIBOR, BUBOR and commercial floating bank prime rates plus a margin. There are pledges on assets for loans totaling HUF) Tj T* -0.0062 Tc 0.2069 Tw (9,726 million.) Tj 0 -35.76 TD /F4 10.08 Tf 0.005 Tc 0.0042 Tw (12 Quantitative and Qualitative Information about Financial Instruments) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0433 Tc 0.2439 Tw (Financial instruments carried on the balance sheet include cash and bank balances, investments, receivables, trade creditors,) Tj -14.4 -12 TD -0.062 Tc 0.4226 Tw (leases and borrowings. The Company and Group are also parties to financial instruments that reduce exposure to fluctuations in) Tj 0 -12 TD -0.0581 Tc 0.2588 Tw (foreign currency exchange.) Tj 14.4 -24 TD -0.0501 Tc 1.1574 Tw (The Group is exposed to interest and foreign exchange rate risk associated with its debt and anticipated transactions. The) Tj -14.4 -12 TD -0.0374 Tc 0.638 Tw (Group has no significant concentrations of credit risk. The functional accounting currency of MAT\301V is the Hungarian Forint,) Tj 0 -12 TD -0.0202 Tc 0.2208 Tw (therefore the Group's objective is to minimize the level of its financial risk in Hungarian Forint terms.) Tj 14.4 -24 TD -0.0331 Tc 0.3418 Tw (The Group's major financial market risk exposure is in interest rate fluctuations. This is due to the fact that changing interest) Tj -14.4 -12 TD -0.0222 Tc 0.4737 Tw (rates in the U.S. and Western-Europe affect the fair value of fixed rate debt. To control interest rate risk, a combination of fixed) Tj 0 -12 TD -0.0466 Tc 0.3891 Tw (and floating rate debt is used within the foreign currency and HUF portfolios. In the case of foreign debt, the Group maintains a) Tj T* -0.0433 Tc 1.2039 Tw (balance between fixed rate and variable rate debt. Mainly floating rate instruments are used in the case of Hungarian Forint) Tj T* -0.041 Tc 0.2417 Tw (debt due to decreasing interest rates.) Tj ET endstream endobj 374 0 obj 4574 endobj 372 0 obj << /Type /Page /Parent 366 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 373 0 R >> endobj 376 0 obj << /Length 377 0 R >> stream BT 274.8 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0176 Tc 0 Tw (cxii) Tj -228.96 693.6 TD /F3 10.08 Tf -0.0575 Tc 2.5593 Tw (The Group is exposed to foreign exchange risk related to foreign currency debt and foreign exchange payments \(ie.) Tj -18 -12 TD -0.049 Tc 1.4668 Tw (international third party telecommunications carriers and capital expenditure\). To reduce foreign exchange risk, the Group's) Tj 0 -12 TD -0.0363 Tc 0.797 Tw (debt portfolio guidelines limit the individual classes of currencies in the debt portfolio. The Group is increasing the proportion) Tj T* -0.0576 Tc 1.193 Tw (of its borrowings in Hungarian Forint as the Hungarian capital market develops. Most of the Group's foreign exchange debt) Tj T* -0.0391 Tc 0.2507 Tw (portfolio is adjusted to the same mix as the official basket of foreign currencies used by the National Bank of Hungary to devalue) Tj T* -0.0348 Tc 0.3871 Tw (the Forint and to determine official exchange rates. Matching the composition of the Group's foreign debt portfolio to the basket) Tj T* -0.0491 Tc 1.0455 Tw (of currencies used by the National Bank of Hungary in its regulation of the Hungarian Forint minimizes the foreign exchange) Tj T* -0.059 Tc 0.2597 Tw (cross currency risk.) Tj 14.4 -24 TD -0.134 Tc 1.2947 Tw (In 1998 and) Tj 50.88 0 TD /F1 10.08 Tf 0 Tc 0.0898 Tw ( ) Tj 3.6 0 TD /F3 10.08 Tf -0.0591 Tc 1.2711 Tw (1999 the Group occasionally entered into derivative contracts for hedging purposes. These foreign currency) Tj -68.88 -12 TD -0.0659 Tc 1.896 Tw (forward contracts and swap arrangements were taken to reduce the exchange rate risk of debt repayments or to adjust the) Tj 0 -12 TD -0.0523 Tc 0.3901 Tw (currency structure of the debt portfolio to match that used by the National Bank of Hungary in its management of the Hungarian) Tj T* -0.0441 Tc 0.2447 Tw (Forint. Using derivatives to change the debt portfolio's composition serves to reduce cross currency risk.) Tj 14.4 -24 TD -0.0549 Tc 0.5096 Tw (Derivative instruments are limited to foreign currency forward contracts and swap agreements that are not recognized in the) Tj -14.4 -12 TD -0.0508 Tc 1.224 Tw (financial statements on inception. In the case of foreign currency forward contracts, any increase or decrease in the amount) Tj 0 -12 TD -0.0417 Tc 0.7463 Tw (required to settle the liability is off-set by a corresponding movement in the value of the forward exchange contract. Gains and) Tj T* -0.0599 Tc 1.3469 Tw (losses on derivative positions are booked against the gain or loss on the related underlying positions being hedged. In 1999,) Tj T* -0.0467 Tc 1.5434 Tw (losses of HUF 515 million was recognized in the statements of income related to foreign currency forward contracts. As of) Tj T* -0.0585 Tc 0.2592 Tw (December 31, 1999, the Group held foreign currency forward contracts covering DEM 226 million and USD 30 million.) Tj 14.4 -24 TD -0.0373 Tc 1.2737 Tw (The financial asset portfolio is relatively small compared to the debt portfolio of the Group and includes only short term,) Tj -14.4 -12 TD -0.0353 Tc 0.316 Tw (marketable securities with active secondary markets to ensure liquidity. The Group mitigates credit risk by investing only in high) Tj 0 -12 TD -0.0501 Tc 0.8057 Tw (quality securities. As of December 31, 1999, the Group's cash balance included HUF denominated cash equivalent instruments) Tj T* -0.0449 Tc 0.3328 Tw (with a value of HUF 3,740 million at an average fixed interest rate of 11.6% and HUF 2,844 million in variable rate instruments) Tj T* -0.039 Tc 1.4516 Tw (with an average interest rate of 8.4%. Financial investments of HUF 3,732 million were held in fixed rate instruments at an) Tj T* -0.0493 Tc 2.365 Tw (average interest rate of 13.5%. The net carrying amounts of financial assets including cash, investments, receivables and) Tj T* -0.0367 Tc 0.5026 Tw (payables and finance lease obligations reflect reasonable estimates of fair value due to the relatively short period to maturity of) Tj T* -0.0251 Tc 0.2257 Tw (the instruments.) 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Tj 316.8 -35.52 TD /F4 9.12 Tf 0.0223 Tc -0.0026 Tw (For the year ended December 31,) Tj 0.24 -13.2 TD 0 Tc 0 Tw (1997) Tj 54 0 TD (1998) Tj 54 0 TD (1999) Tj ET 331.92 681.6 43.2 0.72 re f 375.12 681.6 0.72 0.72 re f 375.84 681.6 10.08 0.72 re f 385.92 681.6 0.72 0.72 re f 386.64 681.6 42.48 0.72 re f 429.12 681.6 0.72 0.72 re f 429.84 681.6 10.08 0.72 re f 439.92 681.6 0.72 0.72 re f 440.64 681.6 42.48 0.72 re f BT 373.2 659.28 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 331.92 668.4 43.2 0.72 re f 385.92 668.4 43.2 0.72 re f 439.92 668.4 43.2 0.72 re f BT 27.84 633.84 TD /F3 10.08 Tf 0.1441 Tc 0.0566 Tw (Beginning of period ..........................................................) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (.............) Tj 323.52 0 TD -0.0808 Tc (9,874) Tj 48.96 0 TD -0.0926 Tc (17,185) Tj 54 0 TD (12,135) Tj -426.48 -12.48 TD 0.0288 Tc 0.1719 Tw (Movement in capital contributed by minority interest ..............) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (..........) Tj 324.96 0 TD -0.1249 Tc (\(296\)) Tj 46.32 0 TD -0.0821 Tc (\(4,409\)) Tj 67.92 0 TD -0.1512 Tc (216) Tj -439.2 -12.48 TD 0.1187 Tc 0.0819 Tw (Share of results for the year ...................................................) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (....) Tj 323.52 0 TD -0.0808 Tc (7,614) Tj 48.96 0 TD -0.0926 Tc (10,546) Tj 54 0 TD (14,883) Tj -426.48 -12.48 TD 0.025 Tc 0.1756 Tw (Dividends paid/payable to minority shareholders ....................) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (.......) Tj 335.04 0 TD -0.1074 Tc (\(7\)) Tj 31.2 0 TD -0.0908 Tc (\(11,187\)) Tj 59.04 0 TD -0.0821 Tc (\(4,222\)) Tj -425.28 -13.2 TD -0.0579 Tc 0.2585 Tw (End of period ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (............................................) Tj 2.1667 Tc (\205\205\205\205) Tj 0.2006 Tc (..........) Tj 318.48 0 TD -0.0926 Tc (17,185) Tj 54 0 TD (12,135) Tj 54 0 TD (23,012) Tj ET 331.92 592.8 43.2 0.72 re f 385.92 592.8 43.2 0.72 re f 439.92 592.8 43.2 0.72 re f 331.92 578.88 43.2 0.72 re f 331.92 577.44 43.2 0.72 re f 385.92 578.88 43.2 0.72 re f 385.92 577.44 43.2 0.72 re f 439.92 578.88 43.2 0.72 re f 439.92 577.44 43.2 0.72 re f BT 27.84 544.08 TD /F4 10.08 Tf 0.0044 Tc 0.0047 Tw (17 Revenues) Tj 316.8 -23.04 TD /F4 9.12 Tf 0.0223 Tc -0.0026 Tw (For the year ended December 31,) Tj 0.24 -13.2 TD 0 Tc 0 Tw (1997) Tj 54 0 TD (1998) Tj 54 0 TD (1999) Tj ET 331.92 516.96 43.2 0.72 re f 375.12 516.96 0.72 0.72 re f 375.84 516.96 10.08 0.72 re f 385.92 516.96 0.72 0.72 re f 386.64 516.96 42.48 0.72 re f 429.12 516.96 0.72 0.72 re f 429.84 516.96 10.08 0.72 re f 439.92 516.96 0.72 0.72 re f 440.64 516.96 42.48 0.72 re f BT 373.2 494.64 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 331.92 503.76 43.2 0.72 re f 385.92 503.76 43.2 0.72 re f 439.92 503.76 43.2 0.72 re f BT 27.84 481.68 TD /F3 10.08 Tf -0.0352 Tc 0.2358 Tw (Domestic telecommunications services:) Tj 0 -12.48 TD -0.025 Tc 0.2257 Tw ( Subscriptions, connections and other charges ........) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..) Tj 318.48 0 TD -0.0926 Tc (41,649) Tj 54 0 TD (55,728) Tj 54 0 TD (63,191) Tj -426.48 -12.48 TD 0.1172 Tc 0.0835 Tw ( Domestic traffic revenue .....................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (....) Tj 318.48 0 TD -0.0926 Tc (85,319) Tj 48.96 0 TD -0.1009 Tc (108,425) Tj 54 0 TD (134,071) Tj -421.44 -12.48 TD 0.1583 Tc 0.0423 Tw ( Other usage ..........................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (.......) Tj 318.48 0 TD -0.0926 Tc (14,936) Tj 54 0 TD (19,964) Tj 54 0 TD (18,743) Tj -426.48 -12.48 TD 0.1014 Tc 0.0993 Tw (International traffic revenues .....................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (.........) Tj 318.48 0 TD -0.0926 Tc (35,748) Tj 54 0 TD (38,792) Tj 54 0 TD (43,807) Tj -426.48 -12.48 TD 0.0854 Tc 0.1152 Tw (Mobile telecommunications services ...............................) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (...........) Tj 318.48 0 TD -0.0926 Tc (48,159) Tj 54 0 TD (61,677) Tj 54 0 TD (82,746) Tj -426.48 -12.48 TD 0.1439 Tc 0.0568 Tw (Other services ...........................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..............) Tj 318.48 0 TD -0.0926 Tc (28,137) Tj 54 0 TD (33,474) Tj 54 0 TD (42,374) Tj -113.04 -13.2 TD -0.1009 Tc (253,948) Tj 54 0 TD (318,060) Tj 54 0 TD (384,932) Tj ET 331.92 403.2 43.2 0.72 re f 385.92 403.2 43.2 0.72 re f 439.92 403.2 43.2 0.72 re f 331.92 389.28 43.2 0.72 re f 331.92 387.84 43.2 0.72 re f 385.92 389.28 43.2 0.72 re f 385.92 387.84 43.2 0.72 re f 439.92 389.28 43.2 0.72 re f 439.92 387.84 43.2 0.72 re f BT 42.24 366.48 TD -0.0451 Tc 3.6697 Tw (Telephone tariffs are regulated through a price cap by the Ministry of Transport, Telecommunications and Water) Tj -14.4 -12 TD -0.045 Tc 0.2456 Tw (Management \(the "Ministry"\). There can be no certainty with regard to future regulatory developments.) Tj ET endstream endobj 387 0 obj 5783 endobj 384 0 obj << /Type /Page /Parent 385 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 386 0 R >> endobj 389 0 obj << /Length 390 0 R >> stream BT 273.84 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0391 Tc 0 Tw (cxvi) Tj -246 693.6 TD /F4 10.08 Tf 0.0048 Tc 0.0043 Tw (18 Net interest and other charges) Tj 316.8 -23.28 TD /F4 9.12 Tf 0.0223 Tc -0.0026 Tw (For the year ended December 31,) Tj 0.24 -13.2 TD 0 Tc 0 Tw (1997) Tj 54 0 TD (1998) Tj 54 0 TD (1999) Tj ET 331.92 729.36 43.2 0.72 re f 375.12 729.36 0.72 0.72 re f 375.84 729.36 10.08 0.72 re f 385.92 729.36 0.72 0.72 re f 386.64 729.36 42.48 0.72 re f 429.12 729.36 0.72 0.72 re f 429.84 729.36 10.08 0.72 re f 439.92 729.36 0.72 0.72 re f 440.64 729.36 42.48 0.72 re f BT 373.2 707.04 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 331.92 716.16 43.2 0.72 re f 385.92 716.16 43.2 0.72 re f 439.92 716.16 43.2 0.72 re f BT 27.84 694.08 TD /F3 10.08 Tf -0.0395 Tc 0.2402 Tw (Interest expense:) Tj 0 -12.48 TD -0.0699 Tc 0.2706 Tw ( Hungarian Forint loans ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (............................................) Tj 323.52 0 TD -0.0808 Tc (8,303) Tj 48.96 0 TD -0.0926 Tc (11,720) Tj 54 0 TD (11,112) Tj -426.48 -12.48 TD -0.0648 Tc 0.2655 Tw ( Foreign currency loans ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (....................................................) Tj 323.52 0 TD -0.0808 Tc (7,171) Tj 54 0 TD (6,134) Tj 54 0 TD (6,182) Tj -431.52 -12.48 TD -0.0333 Tc 0.2339 Tw ( Finance leases ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..........................................) Tj 331.2 0 TD -0.1512 Tc (261) Tj 54 0 TD (192) Tj 59.04 0 TD (47) Tj -444.24 -12.48 TD -0.0521 Tc 0.2527 Tw (Net foreign exchange losses ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (...........................................) Tj 318.48 0 TD -0.0926 Tc (16,090) Tj 54 0 TD (12,378) Tj 59.04 0 TD -0.0808 Tc (6,289) Tj -431.52 -12.48 TD -0.0915 Tc 0.2922 Tw (Commissions and other bank charges ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.....................................) Tj 323.52 0 TD -0.0808 Tc (1,230) Tj 54 0 TD (1,311) Tj 54 0 TD (1,941) Tj -431.52 -13.2 TD -0.0567 Tc 0.2574 Tw (Total interest expense and other charges ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (........................) Tj 318.48 0 TD -0.0926 Tc (33,055) Tj 54 0 TD (31,735) Tj 54 0 TD (25,571) Tj ET 331.92 628.08 43.2 0.72 re f 385.92 628.08 43.2 0.72 re f 439.92 628.08 43.2 0.72 re f BT 27.84 605.28 TD -0.0186 Tc 0.2192 Tw (Interest capitalized ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..................................) Tj 324.96 0 TD -0.1249 Tc (\(966\)) Tj 54 0 TD (\(895\)) Tj 54 0 TD (\(541\)) Tj ET 331.92 614.88 43.2 0.72 re f 385.92 614.88 43.2 0.72 re f 439.92 614.88 43.2 0.72 re f BT 27.84 592.8 TD -0.0418 Tc 0.2424 Tw (Interest and other financial income ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (........................................) Tj 317.28 0 TD -0.0821 Tc (\(2,224\)) Tj 54 0 TD (\(2,045\)) Tj 54 0 TD (\(2,897\)) Tj -106.8 -13.2 TD -0.0926 Tc (29,865) Tj 54 0 TD (28,795) Tj 54 0 TD (22,133) Tj ET 331.92 589.2 43.2 0.72 re f 385.92 589.2 43.2 0.72 re f 439.92 589.2 43.2 0.72 re f 331.92 575.28 43.2 0.72 re f 331.92 573.84 43.2 0.72 re f 385.92 575.28 43.2 0.72 re f 385.92 573.84 43.2 0.72 re f 439.92 575.28 43.2 0.72 re f 439.92 573.84 43.2 0.72 re f BT 27.84 540.24 TD /F4 10.08 Tf 0.0034 Tc 0.0057 Tw (19 Income tax) Tj 316.8 -11.28 TD /F4 9.12 Tf 0.0223 Tc -0.0026 Tw (For the year ended December 31,) Tj 0.24 -13.2 TD 0 Tc 0 Tw (1997) Tj 54 0 TD (1998) Tj 54 0 TD (1999) Tj ET 331.92 524.88 43.2 0.72 re f 375.12 524.88 0.72 0.72 re f 375.84 524.88 10.08 0.72 re f 385.92 524.88 0.72 0.72 re f 386.64 524.88 42.48 0.72 re f 429.12 524.88 0.72 0.72 re f 429.84 524.88 10.08 0.72 re f 439.92 524.88 0.72 0.72 re f 440.64 524.88 42.48 0.72 re f BT 373.2 502.56 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 331.92 511.68 43.2 0.72 re f 385.92 511.68 43.2 0.72 re f 439.92 511.68 43.2 0.72 re f BT 27.84 477.12 TD /F3 10.08 Tf -0.053 Tc 0.2536 Tw (Income tax charge on the profit for the year) Tj 0 -12 TD 0.2006 Tc 0 Tw (........................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (...............) Tj 324.96 12 TD -0.1249 Tc (\(262\)) Tj 54 0 TD (\(324\)) Tj 46.32 0 TD -0.0821 Tc (\(7,646\)) Tj -425.28 -24 TD 0.1366 Tc 0.064 Tw (Deferred income taxes .......................................................) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (................) Tj 335.04 0 TD -0.1074 Tc (\(9\)) Tj 42.48 0 TD -0.0808 Tc (1,631) Tj 61.68 0 TD -0.1512 Tc (832) Tj -439.2 -12.48 TD -0.0614 Tc 0.262 Tw (Income tax on the Group's share of the results of associates) Tj 0 -12 TD 0.2006 Tc 0 Tw (...................) Tj 330 12 TD -0.1183 Tc (\(32\)) Tj 54 0 TD (\(40\)) Tj 54 0 TD (\(97\)) Tj -438 -24.72 TD -0.0358 Tc 0.2365 Tw (Income tax \(expense\) / benefit ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....................) Tj 324.96 0 TD -0.1249 Tc (\(303\)) Tj 52.56 0 TD -0.0808 Tc (1,267) Tj 47.76 0 TD -0.0821 Tc (\(6,911\)) Tj ET 331.92 425.52 43.2 0.72 re f 385.92 425.52 43.2 0.72 re f 439.92 425.52 43.2 0.72 re f 331.92 411.6 43.2 0.72 re f 331.92 410.16 43.2 0.72 re f 385.92 411.6 43.2 0.72 re f 385.92 410.16 43.2 0.72 re f 439.92 411.6 43.2 0.72 re f 439.92 410.16 43.2 0.72 re f BT 42.24 388.8 TD -0.0461 Tc 0.3352 Tw (The Company and certain of its subsidiaries qualify for a reduction in income tax payable on meeting certain conditions. The) Tj -14.4 -12 TD -0.0664 Tc 0.8156 Tw (reduction in the tax payable amounted to a 100% allowance for five years from the date of qualification, and a 60% allowance) Tj 0 -12 TD -0.0471 Tc 1.7762 Tw (for a further five years. Through 1998, Mat\341v Rt. and Westel 900 qualified for the 100% allowance. Through 1995, Westel) Tj T* -0.0297 Tc 0.3143 Tw (Radi\363telefon Kft. \("Westel 450"\) utilized the 100% allowance. From January 1, 1999, Mat\341v Rt. and Westel 900 are utilizing the) Tj T* -0.0502 Tc 0.7194 Tw (reduced allowance of 60% for a further five years \(effective tax rate of 7.2%\). Westel 450 has utilized the reduced allowance of) Tj T* -0.0474 Tc 0.6347 Tw (60% until December 31, 1999. Management believes that the conditions underlying the reduction in income tax will continue to) Tj T* -0.0391 Tc 0.2397 Tw (be met. All other subsidiaries were subject to income tax of 18%.) Tj 14.4 -24 TD -0.0396 Tc 0.7431 Tw (Deferred tax assets are recognized for tax loss carry forwards only to the extent that realization of the related tax benefit is) Tj -14.4 -12 TD -0.0572 Tc 0.7979 Tw (probable. The Group has tax losses of HUF 2,312 million to carry forward against future taxable income, which have not been) Tj 0 -12 TD -0.0322 Tc 0.3086 Tw (recognized in these financial statements due to uncertainty of their recoverability. Tax losses of HUF 339 million expire in 2002,) Tj T* -0.0459 Tc 0.2466 Tw (HUF 674 million expire in 2003 and HUF 1,299 million expire in 2004.) Tj ET endstream endobj 390 0 obj 7229 endobj 388 0 obj << /Type /Page /Parent 385 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 389 0 R >> endobj 392 0 obj << /Length 393 0 R >> stream BT 272.4 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0198 Tc 0 Tw (cxvii) Tj -230.16 693.6 TD /F3 10.08 Tf -0.0597 Tc 0.2604 Tw (The Company's deferred tax balances are as follows.) Tj 360.96 -23.52 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -4.32 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 729.84 43.2 0.72 re f 429.12 729.84 0.72 0.72 re f 429.84 729.84 10.08 0.72 re f 439.92 729.84 0.72 0.72 re f 440.64 729.84 42.48 0.72 re f BT 400.08 708.24 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 717.36 43.2 0.72 re f 439.92 717.36 43.2 0.72 re f BT 27.84 696 TD /F3 10.08 Tf -0.0503 Tc 0.251 Tw (Deferred tax assets) Tj 0 -12 TD -0.0679 Tc 0.2685 Tw ( Net operating loss carryforward ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 385.2 0 TD -0.1512 Tc (478) Tj 54 0 TD (391) Tj -439.2 -12 TD -0.0541 Tc 0.2548 Tw ( Deferred income ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 377.52 0 TD -0.0808 Tc (1,161) Tj 54 0 TD (1,060) Tj -431.52 -12 TD -0.1068 Tc 0.3075 Tw ( Loans and other borrowings ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 385.2 0 TD -0.1512 Tc (232) Tj 54 0 TD (294) Tj -439.2 -12 TD -0.0058 Tc 0.2065 Tw ( Post retirement benefits ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 385.2 0 TD -0.1512 Tc (485) Tj 54 0 TD (568) Tj -439.2 -12 TD -0.0455 Tc 0.2462 Tw ( Provisions for receivables and inventory ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 385.2 0 TD -0.1512 Tc (832) Tj 46.32 0 TD -0.0808 Tc (1,059) Tj -431.52 -12 TD -0.0336 Tc 0.2343 Tw ( Provisions for liabilities and charges ) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205) Tj 0.2006 Tc (..) Tj 395.28 0 TD -0.1512 Tc (0) Tj 43.92 0 TD (385) Tj -439.2 -12 TD -0.0222 Tc 0.2228 Tw (Deferred tax liabilities - Property, plant and equipment ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..) Tj 378.96 0 TD -0.1249 Tc (\(641\)) Tj 54 0 TD (\(378\)) Tj -432.96 -12.72 TD -0.0331 Tc 0.2337 Tw (Net deferred tax asset ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (....) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (........) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (.) Tj 377.52 0 TD -0.0808 Tc (2,547) Tj 54 0 TD (3,379) Tj ET 385.92 608.88 43.2 0.72 re f 439.92 608.88 43.2 0.72 re f 385.92 596.16 43.2 0.72 re f 385.92 594.72 43.2 0.72 re f 439.92 596.16 43.2 0.72 re f 439.92 594.72 43.2 0.72 re f BT 42.24 573.12 TD -0.0447 Tc 2.0453 Tw (A reconciliation between the reported income tax expense and the theoretical amount arising by applying the statutory) Tj -14.4 -12 TD -0.0407 Tc 0.2414 Tw (income tax rates is as follows:) Tj 316.8 -23.52 TD /F4 9.12 Tf 0.0223 Tc -0.0026 Tw (For the year ended December 31,) Tj 0.24 -13.2 TD 0 Tc 0 Tw (1997) Tj 54 0 TD (1998) Tj 54 0 TD (1999) Tj ET 331.92 533.52 43.2 0.72 re f 375.12 533.52 0.72 0.72 re f 375.84 533.52 10.08 0.72 re f 385.92 533.52 0.72 0.72 re f 386.64 533.52 42.48 0.72 re f 429.12 533.52 0.72 0.72 re f 429.84 533.52 10.08 0.72 re f 439.92 533.52 0.72 0.72 re f 440.64 533.52 42.48 0.72 re f BT 373.2 511.2 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 331.92 520.32 43.2 0.72 re f 385.92 520.32 43.2 0.72 re f 439.92 520.32 43.2 0.72 re f BT 27.84 485.76 TD /F3 10.08 Tf 0.0556 Tc 0.1451 Tw (IAS profit before income tax ..............) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (..................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..................) Tj 318.48 0 TD -0.0926 Tc (43,951) Tj 54 0 TD (67,616) Tj 48.96 0 TD -0.1009 Tc (100,426) Tj -421.44 -12.48 TD 0.1474 Tc 0.0533 Tw ( Tax at 18% ...............................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.....................) Tj 2.1667 Tc (\205) Tj 317.28 0 TD -0.0821 Tc (\(7,911\)) Tj 48.96 0 TD -0.0908 Tc (\(12,171\)) Tj 54 0 TD (\(18,077\)) Tj -420.24 -12.48 TD 0.118 Tc 0.0826 Tw ( Effect of reduced tax rates ......................................) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (....................) Tj 2.1667 Tc (\205) Tj 323.52 0 TD -0.0808 Tc (8,411) Tj 48.96 0 TD -0.0926 Tc (12,211) Tj 59.04 0 TD -0.0808 Tc (9,932) Tj -431.52 -12.48 TD 0.1 Tc 0.1006 Tw ( Tax on items not subject to tax ..............................) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (.............) Tj 2.1667 Tc (\205) Tj 323.52 0 TD -0.0808 Tc (1,137) Tj 54 0 TD (3,840) Tj 54 0 TD (2,534) Tj -431.52 -12.48 TD 0.0614 Tc 0.1393 Tw ( Tax on non deductible expenses ........................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (.........) Tj 2.1667 Tc (\205) Tj 317.28 0 TD -0.0821 Tc (\(1,916\)) Tj 54 0 TD (\(1,005\)) Tj 54 0 TD (\(1,582\)) Tj -425.28 -12.48 TD 0 Tc 0.2004 Tw ( Temporary differences reversing at different rates .........) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205) Tj 341.28 0 TD -0.1512 Tc (8) Tj 30 0 TD -0.0821 Tc (\(1,568\)) Tj 67.92 0 TD -0.1512 Tc (379) Tj -439.2 -13.2 TD 0.014 Tc 0.1866 Tw (Income tax benefit / \(expense\) \(before associates\) ..............) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (.....) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..) Tj 324.96 0 TD -0.1249 Tc (\(271\)) Tj 52.56 0 TD -0.0808 Tc (1,307) Tj 47.76 0 TD -0.0821 Tc (\(6,814\)) Tj ET 331.92 419.76 43.2 0.72 re f 385.92 419.76 43.2 0.72 re f 439.92 419.76 43.2 0.72 re f BT 27.84 397.68 TD 0.0821 Tc 0.1186 Tw ( Share of associates tax expense .................................) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205) Tj 330 0 TD -0.1183 Tc (\(32\)) Tj 54 0 TD (\(40\)) Tj 54 0 TD (\(97\)) Tj -438 -13.2 TD -0.0358 Tc 0.2365 Tw (Income tax \(expense\) / benefit ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....................) Tj 324.96 0 TD -0.1249 Tc (\(303\)) Tj 52.56 0 TD -0.0808 Tc (1,267) Tj 47.76 0 TD -0.0821 Tc (\(6,911\)) Tj ET 331.92 394.08 43.2 0.72 re f 385.92 394.08 43.2 0.72 re f 439.92 394.08 43.2 0.72 re f 331.92 380.16 43.2 0.72 re f 331.92 378.72 43.2 0.72 re f 385.92 380.16 43.2 0.72 re f 385.92 378.72 43.2 0.72 re f 439.92 380.16 43.2 0.72 re f 439.92 378.72 43.2 0.72 re f BT 42.24 357.12 TD -0.0312 Tc 0.2319 Tw (Items not subject to income tax consist primarily of amortization of investment contribution fees and connection fees.) Tj -14.4 -35.76 TD /F4 10.08 Tf 0.004 Tc 0.0051 Tw (20 Convertible bonds ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0048 Tc 0.0043 Tw (Management Incentive Plan) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0434 Tc 1.6208 Tw (From June 29, 1998 to July 1, 1998, MAT\301V Rt. issued 7 million convertible bearer bonds, known as the "Management) Tj -14.4 -12 TD -0.0402 Tc 0.3708 Tw (Incentive Program Bond" each with a face value of HUF 1. The holder of a bond may convert it into one newly issued MAT\301V A) Tj 0 -12 TD -0.0539 Tc 0.6745 Tw (series registered common share with a face value of HUF 100, in accordance with the allocation and conversion rules. On July) Tj T* -0.0485 Tc 0.2491 Tw (1, 1998, 4.2 million bonds were allocated to management.) Tj 14.4 -24 TD -0.0492 Tc 0.7779 Tw (The Bonds may be converted into newly issued MAT\301V A series registered common stock over a three year period with one) Tj -14.4 -12 TD -0.0585 Tc 1.1774 Tw (third vesting each year beginning July 1, 1999. Bonds can not be converted after the end of the bond's term. No bonds have) Tj 0 -12 TD -0.0713 Tc 0.2719 Tw (been converted as of December 31, 1999. By December 31, 1999, 402 thousand bonds had been forfeited by management.) Tj ET endstream endobj 393 0 obj 8689 endobj 391 0 obj << /Type /Page /Parent 385 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 392 0 R >> endobj 395 0 obj << /Length 396 0 R >> stream BT 270.96 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0069 Tc 0 Tw (cxviii) Tj -225.12 693.6 TD /F3 10.08 Tf -0.0541 Tc 0.3147 Tw (The conversion price of the Bonds is the Hungarian Forint equivalent of USD 5.75 per bond, calculated based on the middle) Tj -18 -12 TD -0.0513 Tc 0.8348 Tw (USD/HUF exchange rate quoted by the Hungarian Central Bank on the day of conversion, less the face value of the Bond, but) Tj 0 -12 TD -0.0342 Tc 0.2348 Tw (not less than the initial public offering price of HUF 730 per share.) Tj 14.4 -24 TD -0.0408 Tc 1.9972 Tw (Compensation cost is not recognized in these financial statements for the fair value or the intrinsic value of the bonds) Tj -14.4 -12 TD -0.0505 Tc 0 Tw (granted.) Tj 0 -36 TD /F4 10.08 Tf 0.0051 Tc 0.004 Tw (21 Post-retirement benefits) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0482 Tc 0.6865 Tw (Under IAS 19 "Employee Benefits \(revised 1997\), the Company records expense for post-retirement benefits in the period in) Tj -14.4 -12 TD -0.0575 Tc 0.2582 Tw (which they are earned.) Tj 375.36 -23.52 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -4.32 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 598.32 43.2 0.72 re f 429.12 598.32 0.72 0.72 re f 429.84 598.32 10.08 0.72 re f 439.92 598.32 0.72 0.72 re f 440.64 598.32 42.48 0.72 re f BT 400.08 576.72 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 585.84 43.2 0.72 re f 439.92 585.84 43.2 0.72 re f BT 27.84 552.48 TD /F3 10.08 Tf 0.0034 Tc 0.1973 Tw (Benefits earned during the year .......) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (....) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..............) Tj 2.1667 Tc (\205) Tj 390.24 0 TD -0.1512 Tc (90) Tj 54 0 TD (83) Tj -444.24 -12 TD 0.0217 Tc 0.1789 Tw (Interest cost on projected benefit obligation ..........) Tj 2.1667 Tc 0 Tw (\205\205\205) Tj 0.2006 Tc (................................) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (......) Tj 385.2 0 TD -0.1512 Tc (369) Tj 54 0 TD (373) Tj -439.2 -12.72 TD 0.1276 Tc 0.073 Tw (Post-retirement benefit costs ...................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (....................) Tj 385.2 0 TD -0.1512 Tc (459) Tj 54 0 TD (456) Tj ET 385.92 537.36 43.2 0.72 re f 439.92 537.36 43.2 0.72 re f BT 42.24 491.76 TD -0.0579 Tc 1.5118 Tw (The present value of the Company's obligations included in the consolidated balance sheet at December 31, 1999 are as) Tj -14.4 -12 TD -0.0221 Tc 0 Tw (follows:) Tj 375.36 -23.52 TD /F4 9.12 Tf 0.0155 Tc 0.0042 Tw (At December 31,) Tj -4.32 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 452.88 43.2 0.72 re f 429.12 452.88 0.72 0.72 re f 429.84 452.88 10.08 0.72 re f 439.92 452.88 0.72 0.72 re f 440.64 452.88 42.48 0.72 re f BT 400.08 431.28 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 440.4 43.2 0.72 re f 439.92 440.4 43.2 0.72 re f BT 27.84 419.04 TD /F3 10.08 Tf -0.0266 Tc 0.2273 Tw (Estimated present value of defined benefit obligations) Tj 0 -12 TD 0.0165 Tc 0.1841 Tw ( Retirees and dependents ........) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (....) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..........................) Tj 377.52 0 TD -0.0808 Tc (1,825) Tj 54 0 TD (1,853) Tj -431.52 -12 TD 0.1227 Tc 0.0779 Tw ( Active plan participants ........................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (......) Tj 377.52 0 TD -0.0808 Tc (1,123) Tj 61.68 0 TD -0.1512 Tc (797) Tj -439.2 -12.72 TD 0.0578 Tc 0.1429 Tw (Accumulated post-retirement benefit obligation .........................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....) Tj 377.52 0 TD -0.0808 Tc (2,948) Tj 54 0 TD (2,650) Tj ET 385.92 391.92 43.2 0.72 re f 439.92 391.92 43.2 0.72 re f BT 27.84 370.32 TD -0.0415 Tc 0.2422 Tw (Prior year service cost not yet recognized ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 395.28 0 TD -0.1512 Tc (0) Tj 43.92 0 TD (235) Tj -439.2 -12 TD -0.0778 Tc 0.2784 Tw (Unrecognized net gain from change in assumptions ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...) Tj 385.2 0 TD -0.1512 Tc (282) Tj 54 0 TD (664) Tj -439.2 -12.72 TD -0.0298 Tc 0.2304 Tw (Accrued post-retirement benefit cost included in Provisions) Tj ET 385.92 355.2 43.2 0.72 re f 439.92 355.2 43.2 0.72 re f BT 27.84 333.6 TD -0.0329 Tc 0.2335 Tw (for liabilities and charges ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...) Tj 2.1667 Tc (\205) Tj 0.2006 Tc (..) Tj 377.52 0 TD -0.0808 Tc (3,230) Tj 54 0 TD (3,549) Tj ET 385.92 330.48 43.2 0.72 re f 385.92 329.04 43.2 0.72 re f 439.92 330.48 43.2 0.72 re f 439.92 329.04 43.2 0.72 re f BT 42.24 307.44 TD -0.0595 Tc 0.2602 Tw (The amount of the accrual was determined using actuarial principles and using the following assumptions:) Tj 356.88 -23.52 TD /F4 9.12 Tf 0.0231 Tc -0.0034 Tw (For the year ended) Tj 9.6 -11.76 TD 0.0213 Tc -0.0016 Tw (December 31,) Tj -9.84 -12.48 TD 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 268.8 43.2 0.72 re f 429.12 268.8 0.72 0.72 re f 429.84 268.8 10.08 0.72 re f 439.92 268.8 0.72 0.72 re f 440.64 268.8 42.48 0.72 re f BT 400.08 247.2 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 256.32 43.2 0.72 re f 439.92 256.32 43.2 0.72 re f BT 27.84 222.96 TD /F3 10.08 Tf -0.0495 Tc 0.2501 Tw ( Discount rate ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (.....................................................) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 382.56 0 TD -0.3901 Tc (13%) Tj 54 0 TD (10%) Tj -436.56 -12 TD -0.0361 Tc 0.2368 Tw ( Weighted average projected growth rate of per-capita benefit costs ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205) Tj 382.56 0 TD -0.3901 Tc (10%) Tj 54 0 TD (10%) Tj ET endstream endobj 396 0 obj 6459 endobj 394 0 obj << /Type /Page /Parent 385 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 395 0 R >> endobj 398 0 obj << /Length 399 0 R >> stream BT 273.6 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0209 Tc 0 Tw (cxix) Tj -231.36 693.6 TD /F3 10.08 Tf -0.0316 Tc 0.2322 Tw (The movement in the liability recognized in the balance sheet is summarized in the following table.) Tj 356.64 -23.52 TD /F4 9.12 Tf 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj -52.8 -12.48 TD 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj ET 385.92 729.84 43.2 0.72 re f 439.92 729.84 43.2 0.72 re f BT 27.84 696.48 TD /F3 10.08 Tf -0.0328 Tc 0.2334 Tw (At the beginning of the year ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205) Tj 395.28 0 TD -0.1512 Tc (0) Tj 36.24 0 TD -0.0808 Tc (3,230) Tj -431.52 -12 TD -0.0334 Tc 0.234 Tw ( the effect of adopting IAS 19 \(revised\) ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.......................................) Tj 377.52 0 TD -0.0808 Tc (2,914) Tj 71.76 0 TD -0.1512 Tc (0) Tj -71.76 -12.72 TD -0.0808 Tc (2,914) Tj 54 0 TD (3,230) Tj ET 385.92 681.36 43.2 0.72 re f 439.92 681.36 43.2 0.72 re f BT 27.84 659.76 TD -0.0102 Tc 0.2109 Tw (Post-retirement benefit costs ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..............) Tj 2.1667 Tc (\205\205\205\205\205) Tj 385.2 0 TD -0.1512 Tc (459) Tj 54 0 TD (456) Tj -439.2 -12 TD -0.0062 Tc 0.2068 Tw (Benefits paid ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (...............) Tj 2.1667 Tc (\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205) Tj 378.96 0 TD -0.1249 Tc (\(143\)) Tj 54 0 TD (\(137\)) Tj -432.96 -12.72 TD -0.0234 Tc 0.2241 Tw (Accrued post-retirement benefit cost included in Provisions for liabilities and) Tj 0 -12 TD -0.1042 Tc 0 Tw (charges) Tj 377.52 12 TD -0.0808 Tc (3,230) Tj 54 0 TD (3,549) Tj ET 385.92 644.64 43.2 0.72 re f 439.92 644.64 43.2 0.72 re f 385.92 619.92 43.2 0.72 re f 385.92 618.48 43.2 0.72 re f 439.92 619.92 43.2 0.72 re f 439.92 618.48 43.2 0.72 re f BT 27.84 585.36 TD /F4 10.08 Tf 0.0054 Tc 0.0038 Tw (22 Commitments) Tj 0 -23.76 TD /F0 10.08 Tf -0.0268 Tc 0.0157 Tw (\(a\) Lease commitments) Tj 36 -24 TD 0.0034 Tc -0.0144 Tw (Where the Company is Lessee) Tj -21.6 -23.76 TD /F3 10.08 Tf -0.0443 Tc 2.517 Tw (Operating lease commitments were mainly in respect of the lease of buildings, network and other telecommunications) Tj -14.4 -12 TD -0.0475 Tc 0.2481 Tw (facilities. Future minimum lease payments under capital and operating leases at December 31, 1999 are as follows:) Tj 366.24 -23.52 TD /F4 9.12 Tf 0.0069 Tc 0 Tw (Capital) Tj 48.72 0 TD 0.0215 Tc (Operating) Tj -47.52 -11.76 TD 0.0098 Tc (Leases) Tj 54 0 TD (Leases) Tj -421.44 -12.96 TD /F3 10.08 Tf 0.01 Tc (Year) Tj ET 385.92 463.2 43.2 0.72 re f 439.92 463.2 43.2 0.72 re f BT 27.84 441.6 TD 0.1811 Tc 0.0195 Tw (2000 ....................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.......................................) Tj 385.2 0 TD -0.1512 Tc (431) Tj 46.32 0 TD -0.0808 Tc (1,311) Tj -431.52 -12 TD 0.1841 Tc 0.0166 Tw (2001 .................................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (..................) Tj 385.2 0 TD -0.1512 Tc (453) Tj 54 0 TD (913) Tj -439.2 -12 TD 0.1874 Tc 0.0133 Tw (2002 ......................................................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.....) Tj 385.2 0 TD -0.1512 Tc (489) Tj 54 0 TD (862) Tj -439.2 -12 TD 0.1866 Tc 0.0141 Tw (2003 ................................................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (...........) Tj 385.2 0 TD -0.1512 Tc (542) Tj 54 0 TD (847) Tj -439.2 -12 TD 0.1853 Tc 0.0153 Tw (2004 ........................................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (...............) Tj 385.2 0 TD -0.1512 Tc (162) Tj 54 0 TD (660) Tj -439.2 -12 TD 0.1723 Tc 0.0284 Tw (Thereafter .......................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (................) Tj 395.28 0 TD -0.1512 Tc (0) Tj 43.92 0 TD (514) Tj -439.2 -12.72 TD 0.1213 Tc 0.0794 Tw (Total minimum lease payments .....................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (.........) Tj 377.52 0 TD -0.0808 Tc (2,077) Tj 54 0 TD (5,107) Tj ET 385.92 378.48 43.2 0.72 re f 439.92 378.48 43.2 0.72 re f BT 27.84 356.88 TD 0.0467 Tc 0.1539 Tw (Less: amounts representing interest and executory costs .................................) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (....) Tj 378.96 0 TD -0.1249 Tc (\(552\)) Tj -378.96 -12.72 TD 0.0832 Tc 0.1174 Tw (Present value of net minimum lease payments .......................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.....) Tj 377.52 0 TD -0.0808 Tc (1,525) Tj ET 385.92 353.76 43.2 0.72 re f BT 27.84 332.16 TD -0.0387 Tc 0.2394 Tw (Less: capital lease obligations included in short-term debt ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (...................) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (.......) Tj 385.2 0 TD -0.1512 Tc (233) Tj -385.2 -12.72 TD -0.039 Tc 0.2397 Tw (Long-term capital lease obligations ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (...............................) Tj 2.1667 Tc (\205\205\205\205\205) Tj 0.2006 Tc (..........) Tj 377.52 0 TD -0.0808 Tc (1,292) Tj ET 385.92 329.04 43.2 0.72 re f 385.92 316.32 43.2 0.72 re f 385.92 314.88 43.2 0.72 re f endstream endobj 399 0 obj 5992 endobj 397 0 obj << /Type /Page /Parent 385 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 398 0 R >> endobj 401 0 obj << /Length 402 0 R >> stream BT 275.04 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0086 Tc 0 Tw (cxx) Tj -211.2 693.36 TD /F0 10.08 Tf -0.0033 Tc -0.0078 Tw (Where the Company is lessor) Tj -36 -23.76 TD /F3 10.08 Tf -0.0368 Tc 0.2374 Tw ( Operating lease commitments where the Company is lessor relate primarily to the leasing of PBX equipment.) Tj 414.96 -23.52 TD /F4 9.12 Tf 0.0215 Tc 0 Tw (Operating) Tj 6.48 -11.76 TD 0.0098 Tc (Leases) Tj -421.44 -12.96 TD /F3 10.08 Tf 0.01 Tc (Year) Tj ET 439.92 694.08 43.2 0.72 re f BT 27.84 672.48 TD 0.1679 Tc 0.0327 Tw (2000 .......................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (..........................) Tj 2.1667 Tc (\205\205\205\205) Tj 0.2006 Tc (.......................................) Tj 431.52 0 TD -0.0808 Tc (4,062) Tj -431.52 -12 TD 0.1786 Tc 0.022 Tw (2001 ............................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (...................) Tj 2.1667 Tc (\205\205\205\205\205\205) Tj 0.2006 Tc (..................) Tj 431.52 0 TD -0.0808 Tc (3,313) Tj -431.52 -12 TD 0.1841 Tc 0.0166 Tw (2002 .................................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (..................) Tj 2.1667 Tc (\205\205\205\205) Tj 0.2006 Tc (.....) Tj 431.52 0 TD -0.0808 Tc (1,429) Tj -431.52 -12 TD 0.1866 Tc 0.0141 Tw (2003 ................................................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.) Tj 2.1667 Tc (\205\205) Tj 0.2006 Tc (...........) Tj 431.52 0 TD -0.0808 Tc (1,168) Tj -431.52 -12 TD 0.1853 Tc 0.0153 Tw (2004 ........................................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (..) Tj 2.1667 Tc (\205\205\205\205\205\205) Tj 0.2006 Tc (...........) Tj 439.2 0 TD -0.1512 Tc (884) Tj -439.2 -12 TD 0.1723 Tc 0.0284 Tw (Thereafter .......................................................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (...) Tj 2.1667 Tc (\205\205\205\205\205\205) Tj 0.2006 Tc (...........) Tj 439.2 0 TD -0.1512 Tc (636) Tj -439.2 -12.72 TD 0.0957 Tc 0.1049 Tw (Total minimum lease payments ..................................) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (.................) Tj 2.1667 Tc (\205\205\205\205\205) Tj 0.2006 Tc (.........) Tj 426.48 0 TD -0.0926 Tc (11,492) Tj ET 439.92 609.36 43.2 0.72 re f 439.92 596.64 43.2 0.72 re f 439.92 595.2 43.2 0.72 re f BT 27.84 561.36 TD /F0 10.08 Tf -0.0584 Tc 0.0474 Tw ( \(b\) Purchase commitments) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.051 Tc 1.4137 Tw (As of December 31, 1998 and 1999, capital and other expenditures amounting to HUF 8.6 billion and HUF 18.6 billion,) Tj -14.4 -12 TD -0.0387 Tc 1.3839 Tw (respectively, principally relating to the telecommunications network, had been committed to under contractual arrangements,) Tj 0 -12 TD -0.0487 Tc 2.116 Tw (with the majority of payments due within one year. In addition, commitments for expenditure on the 1800 mHz bandwidth) Tj T* -0.0351 Tc 0.2358 Tw (concession for Westel 900 amounts to HUF 9.1 billion.) Tj 0 -24.24 TD /F0 10.08 Tf 0.0106 Tc -0.0216 Tw (\(c\) M-RTL) Tj 0 -23.76 TD /F3 10.08 Tf -0.0258 Tc 0.7696 Tw (MAT\301V Rt. acquired a 25% share in M-RTL, a television broadcasting company in 1997. MAT\301V Rt. committed to provide M-) Tj 0 -12 TD -0.0291 Tc 0.8164 Tw (RTL with equity and debt financing. At December 31, 1999 MAT\301V Rt. has outstanding commitments of approximately DEM 4) Tj T* -0.0153 Tc 0.216 Tw (million to provide further funds to M-RTL.) Tj ET endstream endobj 402 0 obj 3858 endobj 400 0 obj << /Type /Page /Parent 385 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 401 0 R >> endobj 405 0 obj << /Length 406 0 R >> stream BT 273.6 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0209 Tc 0 Tw (cxxi) Tj -245.76 693.6 TD /F4 10.08 Tf 0.0045 Tc 0.0047 Tw (23 Related party transactions) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0625 Tc 1.4631 Tw (The Company is majority owned by MagyarCom \(59.58%\), which is a consortium of Deutsche Telekom AG and SBC Inc.) Tj -14.4 -12 TD -0.0592 Tc 2.7869 Tw (Following a tender in 1993, MagyarCom was awarded the national concession license to operate all long distance and) Tj 0 -12 TD -0.0524 Tc 1.8931 Tw (international services, as well as local services in 36 primary areas. The rights and obligations under the concession were) Tj T* -0.0501 Tc 2.3208 Tw (assigned to the Company. Under a service agreement, MagyarCom Services Kft., a Hungarian company jointly owned by) Tj T* -0.0606 Tc 0.2612 Tw (Deutsche Telekom and SBC provides the Company with management and consultancy services.) Tj 387.6 0 TD /F1 10.08 Tf 0 Tc 0.0898 Tw ( ) Tj 5.52 0 TD /F3 10.08 Tf -0.0352 Tc 0.4759 Tw (The total service fees charged in) Tj -393.12 -12 TD -0.0424 Tc 0.243 Tw (1997, 1998 and 1999 amounted to HUF 2,903 million, HUF 3,135 million and HUF 2,152 million, respectively.) Tj 14.4 -24 TD -0.059 Tc 0.2738 Tw (Westel 450 and Westel 900 use consulting and other technical services provided by MediaOne International, which owns 49%) Tj -14.4 -12 TD -0.0592 Tc 0.8708 Tw (of Westel 450 and 49% of Westel 900 as of December 31, 1999. Costs incurred relating to these services amounted to HUF 93) Tj 0 -12 TD -0.0481 Tc 0.9002 Tw (million in 1997, HUF 93 million in 1998 and HUF 161 million in 1999. Westel 450 and Westel 900 had outstanding dividends) Tj T* -0.0475 Tc 0.2482 Tw (payable to Media One of HUF 2,314 million as at December 31, 1999.) Tj 14.4 -24 TD -0.0705 Tc 0.2711 Tw (The Group provides services to Government departments and businesses.) Tj 0 -24 TD -0.0588 Tc 0.7794 Tw (Hunsat is a joint venture founded by MAT\301V \(50%\) and Antenna Hung\341ria Rt. The revenues of Hunsat include membership) Tj -14.4 -12 TD -0.0576 Tc 1.5542 Tw (fees paid by the establishing owners and subsidies received from an international space communications organization. Costs) Tj 0 -12 TD -0.0534 Tc 0.734 Tw (incurred by the Group including payment of these membership fees amounted to HUF 301 million in 1997, HUF 281 million in) Tj T* -0.0524 Tc 0.2531 Tw (1998 and HUF 301 million in 1999. Any profits made by Hunsat are repaid to the joint venture partners.) Tj 14.4 -24 TD -0.0316 Tc 1.1923 Tw (Emitel is a Local Telephone Operator \() Tj -1.1933 Tc 0 Tw (\223) Tj -0.0251 Tc (LTO) Tj -0.0632 Tc 1.4454 Tw (\224\) that is 50% owned by MAT\301V. Revenues and costs relating to Emitel are) Tj -14.4 -12 TD -0.0535 Tc 1.2742 Tw (included within revenues from other usage and payment to other network operators, respectively. The revenues received from) Tj 0 -12 TD -0.0322 Tc 0.2329 Tw (Emitel in 1997, 1998 and 1999 were HUF 1,406 million, HUF 1,720 million and HUF 1,285 million, respectively.) Tj 14.4 -24 TD -0.0641 Tc 1.2753 Tw (On November 15, 1999, 75% of KabelKomplex was sold to an employee for HUF 103 million which represented the book) Tj -14.4 -12 TD -0.0069 Tc 0.6875 Tw (value of M) Tj 44.64 0 TD 0.1234 Tc 0 Tw (AT\301V) Tj 24 0 TD -3.3533 Tc (\222) Tj -0.0373 Tc 0.878 Tw (s investment in that stake. HUF 1 million was paid on signing the contract with HUF 51 million due in June) Tj -68.64 -12 TD -0.0716 Tc 0.2722 Tw (2000 and HUF 51 million due in June 2001.) 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Tj 254.16 11.04 TD -0.1891 Tc (50%) Tj 33.84 0 TD -0.0175 Tc 0.2104 Tw (VSAT satellite communications) Tj -288 -22.08 TD 0.1344 Tc 0.0585 Tw (EMITEL T\341vk\366zl\351si Rt. ...............................) Tj 2.0861 Tc 0 Tw (\205) Tj 0.193 Tc (........) Tj 2.0861 Tc (\205\205) Tj 254.16 0 TD -0.1891 Tc (50%) Tj 33.84 0 TD -0.0578 Tc 0.2508 Tw (Local telecommunications operator) Tj -288 -11.04 TD 0.1256 Tc 0.0674 Tw (Magyar RTL Telev\355zi\363 Rt. .......................................) Tj 2.0861 Tc 0 Tw (\205) Tj 0.193 Tc (....) Tj 254.16 0 TD -0.1891 Tc (25%) Tj 33.84 0 TD -0.0671 Tc 0.26 Tw (Television broadcast company) Tj -49.68 -35.28 TD /F4 9.12 Tf 0.0308 Tc 0 Tw (Group) Tj -1.92 -12 TD 0.0448 Tc (interest) Tj -236.4 -12 TD 0.0488 Tc (Subsidiaries) Tj 232.56 0 TD 0.0191 Tc 0 Tw (in capital) Tj 124.08 0 TD -0.0047 Tc 0 Tw (Activity) Tj ET 25.92 541.2 216 0.72 re f 249.12 541.2 7.2 0.72 re f 256.32 541.2 0.72 0.72 re f 257.04 541.2 42.48 0.72 re f 299.52 541.2 0.72 0.72 re f 300.24 541.2 6.48 0.72 re f 313.92 541.2 169.2 0.72 re f BT 27.84 520.32 TD /F3 9.12 Tf -0.0297 Tc 0.2226 Tw (Balatel Telekommunik\341ci\363s Szolg\341ltat\363 Rt. ) Tj 2.0861 Tc 0 Tw (\205) Tj 0.193 Tc (.........) Tj 2.0861 Tc (\205\205) Tj 0.193 Tc (.) Tj 242.64 0 TD -0.108 Tc (96.63%) Tj 45.36 0 TD -0.0578 Tc 0.2508 Tw (Local telecommunications operator) Tj -288 -11.04 TD -0.0355 Tc 0.2285 Tw (CARDNET ) Tj 2.0861 Tc 0 Tw (\205\205\205\205) Tj 0.193 Tc (....................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (.....................) Tj 2.0861 Tc (\205\205) Tj 0.193 Tc (..) Tj 242.64 0 TD -0.108 Tc (72.00%) Tj 45.36 0 TD -0.0201 Tc 0.2131 Tw (Point-of-sale terminal supplier) Tj -288 -11.04 TD -0.0586 Tc 0.2515 Tw (Egertel ) Tj 2.0861 Tc 0 Tw (\205\205\205\205) Tj 0.193 Tc (.) Tj 2.0861 Tc (\205\205\205\205\205\205\205) Tj 0.193 Tc (.) Tj 2.0861 Tc (\205\205\205\205\205\205) Tj 0.193 Tc (..) Tj 2.0861 Tc (\205\205) Tj 242.64 0 TD -0.108 Tc (61.45%) Tj 45.36 0 TD -0.0578 Tc 0.2508 Tw (Local telecommunications operator) Tj -288 -11.04 TD -0.014 Tc 0.207 Tw (Els\365 Pesti Telefont\341rsas\341g Rt. ) Tj 2.0861 Tc 0 Tw (\205\205) Tj 0.193 Tc (........................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (......) Tj 242.64 0 TD -0.108 Tc (95.73%) Tj 45.36 0 TD -0.0578 Tc 0.2508 Tw (Local telecommunications operator) Tj -288 -11.04 TD -0.0435 Tc 0.2365 Tw (Inteltrade Kereskedelmi Rt. ) Tj 2.0861 Tc 0 Tw (\205\205\205) Tj 0.193 Tc (.........................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (....) Tj 242.64 0 TD -0.108 Tc (83.33%) Tj 45.36 0 TD -0.0293 Tc 0.2222 Tw (Foreign trade activities) Tj -288 -11.04 TD -0.0113 Tc 0.2043 Tw (InvesTel Rt. ) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.193 Tc (.....................................) Tj 2.0861 Tc (\205\205) Tj 0.193 Tc (.) Tj 238.08 0 TD -0.1121 Tc (100.00%) Tj 49.92 0 TD -0.0956 Tc 0.2885 Tw (Group finance company) Tj -288 -11.04 TD 0.0763 Tc 0.1166 Tw (MAT\301Vcom Kft. ) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205) Tj 0.193 Tc (.......................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (..............) Tj 238.08 0 TD -0.1121 Tc (100.00%) Tj 49.92 0 TD -0.0307 Tc 0.2237 Tw (PBX supplier) Tj -288 -11.04 TD 0.0709 Tc 0.1221 Tw (MAT\301Vk\341belTV Kft. ) Tj 2.0861 Tc 0 Tw (\205\205\205) Tj 0.193 Tc (............................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (..........) Tj 242.64 0 TD -0.108 Tc (75.00%) Tj 45.36 0 TD -0.062 Tc 0.255 Tw (Cable television operator) Tj -288 -11.04 TD 0.0881 Tc 0.1049 Tw (MAT\301Vline Kft. ) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205) Tj 0.193 Tc (................................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (......) Tj 238.08 0 TD -0.1121 Tc (100.00%) Tj 49.92 0 TD -0.0596 Tc 0.2526 Tw (Network construction company) Tj -288 -11.04 TD 0.1006 Tc 0.0924 Tw (MAT\301V\325R Kft. ) Tj 2.0861 Tc 0 Tw (\205\205\205\205) Tj 0.193 Tc (.................................) Tj 2.0861 Tc (\205) Tj 0.193 Tc (.........) Tj 242.64 0 TD -0.108 Tc (99.00%) Tj 45.36 0 TD -0.0608 Tc 0.2537 Tw (Security monitoring company) Tj -288 -11.04 TD 0.1442 Tc 0.0487 Tw (MATAVNet Kft. ..............) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.193 Tc (.........) Tj 2.0861 Tc (\205\205) Tj 0.193 Tc (....) Tj 238.08 0 TD -0.1121 Tc (100.00%) Tj 49.92 0 TD -0.0843 Tc 0.2773 Tw (Hungarian language internet content server) Tj -288 -11.04 TD -0.0085 Tc 0.2014 Tw (Westel R\341di\363telefon Kft. ) Tj 2.0861 Tc 0 Tw (\205\205\205\205\205) Tj 0.193 Tc (...............) Tj 2.0861 Tc (\205\205\205) Tj 0.193 Tc (....) Tj 242.64 0 TD -0.108 Tc (51.00%) Tj 32.16 1.44 TD /F3 7.92 Tf 0.0014 Tc (\(a\)) Tj 13.2 -1.44 TD /F3 9.12 Tf -0.072 Tc 0.2649 Tw (Cellular telephone services) Tj -288 -11.04 TD -0.0049 Tc 0.1978 Tw (Westel 900 GSM Mobil T\341vk\366zl\351si Rt. ) Tj 2.0861 Tc 0 Tw (\205\205\205) Tj 0.193 Tc (......) Tj 2.0861 Tc (\205) Tj 0.193 Tc (......) Tj 242.64 0 TD -0.108 Tc (51.00%) Tj 32.16 1.44 TD /F3 7.92 Tf 0.0014 Tc (\(a\)) Tj 13.2 -1.44 TD /F3 9.12 Tf -0.0465 Tc 0.2394 Tw (GSM digital cellular telephone services) Tj -288 -11.76 TD /F3 10.08 Tf -0.1512 Tc 0 Tw (___________________) Tj 0 -21.84 TD /F3 7.92 Tf 0.0014 Tc (\(a\)) Tj 14.4 0 TD 0.0034 Tc 0.72 Tw (In October 1999, Deutsche Tele) Tj 105.6 0 TD 0.0035 Tc 0.7799 Tw (kom agreed to terms to purchase Media One International) Tj -2.6347 Tc 0 Tw (\222) Tj 0.0039 Tc 0.9595 Tw (s interests in mobile operations in Central and Eastern Europe) Tj -105.6 -9.36 TD 0.0034 Tc 0.84 Tw (including Westel 900 and Westel 450. MAT\301V has been granted a fifteen month option to purchase the 49% holdings in Westel 900 and Westel 450 from) Tj 0 -9.36 TD 0.0034 Tc -0 Tw (Deutsche Telekom for USD 885 million, the same price agreed between Deutsche Telekom and Media One International.) Tj -14.4 -35.28 TD /F4 10.08 Tf 0.0043 Tc 0.0048 Tw (25 Segmental reporting) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0252 Tc 3.7336 Tw (MAT\301V has two operating segments, fixed line telecommunications and mobile telecommunications. The fixed line) Tj -14.4 -12 TD -0.041 Tc 2.0074 Tw (telecommunications segment provides local telephony in MAT\301V's 36 local primary areas, domestic and international long) Tj 0 -12 TD -0.0455 Tc 1.8461 Tw (distance services on a nationwide basis as well as related services such as leased lines, data transmission, PBX, corporate) Tj T* -0.0398 Tc 1.4969 Tw (networks, internet and security monitoring. The mobile segment consists of services provided by Westel 450 and Westel 900.) Tj T* -0.0545 Tc 1.1268 Tw (Westel 450 provides analog services in the 450 mHz frequency bandwidth and Westel 900 provides digital services in the 900) Tj T* -0.0488 Tc 1.1106 Tw (mHz frequency bandwidth. Services provided between MAT\301V, Westel 450 and Westel 900 are made on an arms-length basis.) Tj T* -0.0407 Tc 1.1414 Tw (Westel 450 and Westel 900 each provide distribution for the other's products. Both Westel 450 and Westel 900 lease space at) Tj T* -0.0468 Tc 0.2474 Tw (base stations to each other and from MAT\301V on a contract basis.) Tj 14.4 -24 TD -0.0526 Tc 0.569 Tw (The following table presents a summary of operating results of the MAT\301V Group by segment for the years ended December) Tj -14.4 -12 TD -0.0627 Tc 1.5566 Tw (31, 1997, 1998 and 1999. The segments presented below are substantially consistent with the format used by the Company's) Tj 0 -12 TD -0.0313 Tc 0.232 Tw (Executive Committee and management.) Tj 316.8 -23.52 TD /F4 9.12 Tf 0.0223 Tc -0.0026 Tw (For the year ended December 31,) Tj 0.24 -13.2 TD 0 Tc 0 Tw (1997) Tj 54 0 TD (1998) Tj 54 0 TD (1999) Tj ET 331.92 116.88 43.2 0.72 re f 375.12 116.88 0.72 0.72 re f 375.84 116.88 10.08 0.72 re f 385.92 116.88 0.72 0.72 re f 386.64 116.88 42.48 0.72 re f 429.12 116.88 0.72 0.72 re f 429.84 116.88 10.08 0.72 re f 439.92 116.88 0.72 0.72 re f 440.64 116.88 42.48 0.72 re f 331.92 103.68 43.2 0.72 re f 385.92 103.68 43.2 0.72 re f 439.92 103.68 43.2 0.72 re f endstream endobj 409 0 obj 9272 endobj 407 0 obj << /Type /Page /Parent 404 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 408 0 R >> endobj 411 0 obj << /Length 412 0 R >> stream BT 270.72 63.12 TD 0 0 0 rg /F1 10.08 Tf 0.0331 Tc 0 Tw (cxxiii) Tj 102.48 694.08 TD /F4 9.12 Tf 0.0695 Tc -0.0498 Tw (\(in HUF millions\)) Tj -345.36 -12.96 TD /F4 10.08 Tf 0.0055 Tc 0 Tw (Revenues) Tj 0 -12.48 TD /F3 10.08 Tf 0.0297 Tc 0.1709 Tw (Fixed line ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....................................................) Tj 2.1667 Tc (\205) Tj 313.44 0 TD -0.1009 Tc (206,096) Tj 54 0 TD (256,929) Tj 54 0 TD (302,230) Tj -421.44 -12.48 TD 0.0187 Tc 0.1819 Tw (Mobile ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (............................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (67,681) Tj 54 0 TD (88,142) Tj 48.96 0 TD -0.1009 Tc (117,336) Tj -421.44 -12.48 TD -0.0283 Tc 0.229 Tw (Intersegment elimination ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....................) Tj 2.1667 Tc (\205) Tj 312.24 0 TD -0.0908 Tc (\(19,829\)) Tj 54 0 TD (\(27,011\)) Tj 54 0 TD (\(34,634\)) Tj -420.24 -13.2 TD 0 Tc 0.2005 Tw (Total ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...........................................................) Tj 313.44 0 TD -0.1009 Tc (253,948) Tj 54 0 TD (318,060) Tj 54 0 TD (384,932) Tj ET 331.92 703.2 43.2 0.72 re f 385.92 703.2 43.2 0.72 re f 439.92 703.2 43.2 0.72 re f 331.92 689.28 43.2 0.72 re f 331.92 687.84 43.2 0.72 re f 385.92 689.28 43.2 0.72 re f 385.92 687.84 43.2 0.72 re f 439.92 689.28 43.2 0.72 re f 439.92 687.84 43.2 0.72 re f BT 27.84 665.76 TD /F4 10.08 Tf 0.0044 Tc 0.0047 Tw (Depreciation and amortization) Tj 0 -12.48 TD /F3 10.08 Tf 0.0297 Tc 0.1709 Tw (Fixed line ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (32,824) Tj 54 0 TD (44,044) Tj 54 0 TD (49,873) Tj -426.48 -12.48 TD 0.0187 Tc 0.1819 Tw (Mobile ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (............................................................) Tj 2.1667 Tc (\205) Tj 323.52 0 TD -0.0808 Tc (7,844) Tj 54 0 TD (9,510) Tj 48.96 0 TD -0.0926 Tc (12,272) Tj -426.48 -13.2 TD 0 Tc 0.2005 Tw (Total ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...........................................................) Tj 318.48 0 TD -0.0926 Tc (40,668) Tj 54 0 TD (53,554) Tj 54 0 TD (62,145) Tj ET 331.92 637.2 43.2 0.72 re f 385.92 637.2 43.2 0.72 re f 439.92 637.2 43.2 0.72 re f 331.92 623.28 43.2 0.72 re f 331.92 621.84 43.2 0.72 re f 385.92 623.28 43.2 0.72 re f 385.92 621.84 43.2 0.72 re f 439.92 623.28 43.2 0.72 re f 439.92 621.84 43.2 0.72 re f BT 27.84 599.76 TD /F4 10.08 Tf 0.0043 Tc 0.0048 Tw (Operating profit) Tj 0 -12.48 TD /F3 10.08 Tf 0.0297 Tc 0.1709 Tw (Fixed line ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (54,792) Tj 54 0 TD (70,520) Tj 54 0 TD (85,471) Tj -426.48 -12.48 TD 0.0187 Tc 0.1819 Tw (Mobile ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (............................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (19,262) Tj 54 0 TD (25,589) Tj 54 0 TD (35,660) Tj -426.48 -13.2 TD 0 Tc 0.2005 Tw (Total ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...........................................................) Tj 318.48 0 TD -0.0926 Tc (74,054) Tj 54 0 TD (96,109) Tj 48.96 0 TD -0.1009 Tc (121,131) Tj ET 331.92 571.2 43.2 0.72 re f 385.92 571.2 43.2 0.72 re f 439.92 571.2 43.2 0.72 re f 331.92 557.28 43.2 0.72 re f 331.92 555.84 43.2 0.72 re f 385.92 557.28 43.2 0.72 re f 385.92 555.84 43.2 0.72 re f 439.92 557.28 43.2 0.72 re f 439.92 555.84 43.2 0.72 re f BT 27.84 533.76 TD /F4 10.08 Tf 0.0078 Tc (Assets) Tj 0 -12.48 TD /F3 10.08 Tf 0.0297 Tc 0.1709 Tw (Fixed line ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....................................................) Tj 2.1667 Tc (\205) Tj 313.44 0 TD -0.1009 Tc (411,351) Tj 54 0 TD (478,136) Tj 54 0 TD (543,148) Tj -421.44 -12.48 TD 0.0187 Tc 0.1819 Tw (Mobile ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (............................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (76,077) Tj 54 0 TD (82,038) Tj 48.96 0 TD -0.1009 Tc (114,494) Tj -421.44 -12.48 TD -0.0283 Tc 0.229 Tw (Intersegment elimination ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....................) Tj 2.1667 Tc (\205) Tj 317.28 0 TD -0.0821 Tc (\(6,817\)) Tj 48.96 0 TD -0.0908 Tc (\(10,634\)) Tj 59.04 0 TD -0.0821 Tc (\(9,772\)) Tj -425.28 -13.2 TD 0 Tc 0.2005 Tw (Total ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...........................................................) Tj 313.44 0 TD -0.1009 Tc (480,611) Tj 54 0 TD (549,540) Tj 54 0 TD (647,870) Tj ET 331.92 492.72 43.2 0.72 re f 385.92 492.72 43.2 0.72 re f 439.92 492.72 43.2 0.72 re f 331.92 478.8 43.2 0.72 re f 331.92 477.36 43.2 0.72 re f 385.92 478.8 43.2 0.72 re f 385.92 477.36 43.2 0.72 re f 439.92 478.8 43.2 0.72 re f 439.92 477.36 43.2 0.72 re f BT 27.84 455.28 TD /F4 10.08 Tf 0.0045 Tc 0.0046 Tw (Capital expenditures) Tj 0 -12.48 TD /F3 10.08 Tf 0.0297 Tc 0.1709 Tw (Fixed line ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (79,552) Tj 54 0 TD (97,729) Tj 54 0 TD (94,063) Tj -426.48 -12.48 TD 0.0187 Tc 0.1819 Tw (Mobile ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (............................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (15,234) Tj 54 0 TD (18,554) Tj 54 0 TD (33,615) Tj -426.48 -13.2 TD 0 Tc 0.2005 Tw (Total ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...........................................................) Tj 318.48 0 TD -0.0926 Tc (94,786) Tj 48.96 0 TD -0.1009 Tc (116,283) Tj 54 0 TD (127,678) Tj ET 331.92 426.72 43.2 0.72 re f 385.92 426.72 43.2 0.72 re f 439.92 426.72 43.2 0.72 re f 331.92 412.8 43.2 0.72 re f 331.92 411.36 43.2 0.72 re f 385.92 412.8 43.2 0.72 re f 385.92 411.36 43.2 0.72 re f 439.92 412.8 43.2 0.72 re f 439.92 411.36 43.2 0.72 re f BT 27.84 389.28 TD /F4 10.08 Tf 0.0052 Tc (Liabilities) Tj 0 -12.48 TD /F3 10.08 Tf 0.0297 Tc 0.1709 Tw (Fixed line ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....................................................) Tj 2.1667 Tc (\205) Tj 313.44 0 TD -0.1009 Tc (203,808) Tj 54 0 TD (230,771) Tj 54 0 TD (236,107) Tj -421.44 -12.48 TD 0.0187 Tc 0.1819 Tw (Mobile ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (............................................................) Tj 2.1667 Tc (\205) Tj 318.48 0 TD -0.0926 Tc (53,348) Tj 54 0 TD (55,612) Tj 54 0 TD (66,533) Tj -426.48 -12.48 TD -0.0283 Tc 0.229 Tw (Intersegment elimination ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....................) Tj 2.1667 Tc (\205) Tj 317.28 0 TD -0.0821 Tc (\(2,406\)) Tj 54 0 TD (\(6,223\)) Tj 54 0 TD (\(5,361\)) Tj -425.28 -13.2 TD 0 Tc 0.2005 Tw (Total ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...........................................................) Tj 313.44 0 TD -0.1009 Tc (254,750) Tj 54 0 TD (280,160) Tj 54 0 TD (297,279) Tj ET 331.92 348.24 43.2 0.72 re f 385.92 348.24 43.2 0.72 re f 439.92 348.24 43.2 0.72 re f 331.92 334.32 43.2 0.72 re f 331.92 332.88 43.2 0.72 re f 385.92 334.32 43.2 0.72 re f 385.92 332.88 43.2 0.72 re f 439.92 334.32 43.2 0.72 re f 439.92 332.88 43.2 0.72 re f BT 42.24 311.28 TD /F1 10.08 Tf 0.0229 Tc 0.4509 Tw (Basis of Intersegment pricing. ) Tj 129.84 0 TD /F3 10.08 Tf -0.0568 Tc 0.8403 Tw (Intersegment pricing between mobile and fixed line is based upon rates as regulated and set) Tj -144.24 -12 TD -0.0368 Tc 0.2374 Tw (out by the Minister of Transport, Telecommunications and Water Management.) Tj 14.4 -24 TD /F1 10.08 Tf 0.0298 Tc 0.3799 Tw (Geographic Information. ) Tj 107.52 0 TD /F3 10.08 Tf -0.0403 Tc 0.7552 Tw (MAT\301V's two segments operate exclusively in Hungary and MAT\301V does not analyze results on a) Tj -121.92 -12 TD -0.0636 Tc 0.2642 Tw (more detailed level based on geographic areas within Hungary.) Tj ET endstream endobj 412 0 obj 8999 endobj 410 0 obj << /Type /Page /Parent 404 0 R /Resources << /Font << /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 411 0 R >> endobj 414 0 obj << /Length 415 0 R >> stream BT 271.2 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0172 Tc 0 Tw (cxxiv) Tj -243.36 681.6 TD /F4 10.08 Tf 0.0045 Tc 0.0046 Tw (26 Reconciliation to U.S. GAAP) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.058 Tc 1.071 Tw (The Group's consolidated financial statements are prepared in accordance with International Accounting Standards, which) Tj -14.4 -12 TD -0.0239 Tc 0.6112 Tw (differ in certain respects from U.S. GAAP. The principal differences between IAS and U.S. GAAP are presented below, together) Tj 0 -12 TD -0.0385 Tc 2.4497 Tw (with explanations of the adjustments that affect consolidated net income for each of the three years in the period ended) Tj T* -0.0762 Tc 0.2768 Tw (December 31, 1999 and total shareholders' equity as of December 31, 1998 and 1999.) Tj 316.8 -35.52 TD /F4 9.12 Tf 0.0223 Tc -0.0026 Tw (For the year ended December 31,) Tj -55.44 -13.2 TD 0.0203 Tc 0 Tw (Notes) Tj 55.68 0 TD 0 Tc (1997) Tj 54 0 TD (1998) Tj 54 0 TD (1999) Tj ET 331.92 645.6 43.2 0.72 re f 375.12 645.6 0.72 0.72 re f 375.84 645.6 10.08 0.72 re f 385.92 645.6 0.72 0.72 re f 386.64 645.6 42.48 0.72 re f 429.12 645.6 0.72 0.72 re f 429.84 645.6 10.08 0.72 re f 439.92 645.6 0.72 0.72 re f 440.64 645.6 42.48 0.72 re f BT 360.24 623.28 TD 0.0425 Tc -0.0228 Tw (\(in HUF millions, except) Tj ET 277.92 632.4 43.2 0.72 re f 331.92 632.4 43.2 0.72 re f 385.92 632.4 43.2 0.72 re f 439.92 632.4 43.2 0.72 re f BT 371.04 610.8 TD 0.0632 Tc -0.0436 Tw (per share amounts\)) Tj -343.2 -25.44 TD /F3 10.08 Tf -0.0473 Tc 0.2479 Tw (Net income under IAS ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (....................) 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Tj 267.12 0.72 TD /F3 9.12 Tf -0.0336 Tc (\(c\)) Tj 57.84 -0.72 TD /F3 10.08 Tf -0.1249 Tc (\(268\)) Tj 59.04 0 TD -0.1183 Tc (\(21\)) Tj 59.04 0 TD -0.1074 Tc (\(3\)) Tj -443.04 -12.48 TD -0.0398 Tc 0.2405 Tw ( Management Incentive Plan Bonds ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (........................) Tj 266.88 0.72 TD /F3 9.12 Tf -0.059 Tc (\(d\)) Tj 74.4 -0.72 TD /F3 10.08 Tf -0.1512 Tc (0) Tj 42.72 0 TD -0.1183 Tc (\(24\)) Tj 54 0 TD (\(42\)) Tj -438 -12.48 TD 0.0266 Tc 0.174 Tw ( Deferred income tax on U.S. GAAP adjustments ...........) Tj 324.96 0 TD -0.1249 Tc 0 Tw (\(181\)) Tj 59.04 0 TD -0.1183 Tc (\(10\)) Tj 48.96 0 TD -0.1249 Tc (\(240\)) Tj -432.96 -13.2 TD -0.0149 Tc 0.2155 Tw (Net income under U.S. GAAP ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205) Tj 0.2006 Tc (...................) Tj 318.48 0 TD -0.0926 Tc (30,130) Tj 54 0 TD (58,564) Tj 54 0 TD (78,721) Tj ET 331.92 506.16 43.2 0.72 re f 385.92 506.16 43.2 0.72 re f 439.92 506.16 43.2 0.72 re f BT 27.84 481.92 TD -0.0508 Tc 0.2514 Tw (Basic earnings per share under U.S. GAAP ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (...............) Tj 323.52 0 TD -0.0808 Tc (29.05) Tj 54 0 TD (56.46) Tj 54 0 TD (75.89) Tj ET 331.92 492.96 43.2 0.72 re f 331.92 491.52 43.2 0.72 re f 385.92 492.96 43.2 0.72 re f 385.92 491.52 43.2 0.72 re f 439.92 492.96 43.2 0.72 re f 439.92 491.52 43.2 0.72 re f BT 27.84 469.44 TD -0.0483 Tc 0.2489 Tw (Diluted earnings per share under U.S. GAAP ) Tj 2.1667 Tc 0 Tw (\205) Tj 0.2006 Tc (...............) 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Tj 367.44 0 TD -0.1009 Tc (257,245) Tj 54 0 TD (327,579) Tj -421.44 -12.48 TD 0.0147 Tc 0.186 Tw (Adjustments for U.S. GAAP:) Tj 0 -12.48 TD -0.0615 Tc 0.2621 Tw ( Deferred revenue ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....................................................) Tj 320.4 0 TD -0.1074 Tc (\(a\)) Tj 45.84 0 TD -0.0908 Tc (\(12,695\)) Tj 54 0 TD (\(12,321\)) Tj -420.24 -12.48 TD -0.0054 Tc 0.2061 Tw ( Post-retirement benefits ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205) Tj 0.2006 Tc (...................................................) Tj 320.64 0 TD -0.0624 Tc (\(c\)) Tj 64.56 0 TD -0.1512 Tc (624) Tj 54 0 TD (621) Tj -439.2 -12.48 TD -0.0238 Tc 0.2244 Tw ( Deferred income tax on U.S. GAAP adjustments ) Tj 2.1667 Tc 0 Tw (\205\205\205\205) Tj 0.2006 Tc (.................) Tj 378.96 0 TD -0.1249 Tc (\(391\)) Tj 54 0 TD (\(631\)) Tj -432.96 -13.2 TD -0.0416 Tc 0.2423 Tw (Shareholders' equity under U.S. GAAP ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (...................) Tj 367.44 0 TD -0.1009 Tc (244,783) Tj 54 0 TD (315,248) Tj ET 385.92 328.08 43.2 0.72 re f 439.92 328.08 43.2 0.72 re f 385.92 314.16 43.2 0.72 re f 385.92 312.72 43.2 0.72 re f 439.92 314.16 43.2 0.72 re f 439.92 312.72 43.2 0.72 re f BT 27.84 278.88 TD /F0 10.08 Tf -0.0039 Tc -0.0071 Tw (\(a\) Deferred revenue) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0565 Tc 1.6213 Tw (A portion of fees charged to customers upon connection to the fixed line network prior to October 15, 1997 represented) Tj -14.4 -12 TD -0.045 Tc 1.0857 Tw (contributions to the cost of network construction. The capital contribution element of such fees was deferred and amortized to) Tj 0 -12 TD -0.0358 Tc 1.6386 Tw (revenue over the life of the related assets. Legislation was enacted effective October 15, 1997 signaling the removal of any) Tj T* -0.033 Tc 1.2924 Tw (capital contribution element of future customer fees, enabling them to be recognized in full upon connection. This legislation) Tj T* -0.0372 Tc 0.2378 Tw (also eliminated refunds of such fees.) Tj ET endstream endobj 415 0 obj 7138 endobj 413 0 obj << /Type /Page /Parent 404 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R /F4 33 0 R >> /ProcSet 2 0 R >> /Contents 414 0 R >> endobj 417 0 obj << /Length 418 0 R >> stream BT 272.64 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0359 Tc 0 Tw (cxxv) Tj -230.4 693.6 TD /F3 10.08 Tf -0.0443 Tc 1.0849 Tw (Investment contribution and entrance fees for fixed line connections prior to October 15, 1997, included a right of refund.) Tj -14.4 -12 TD -0.0338 Tc 1.5332 Tw (Prior to July 1995, investment contribution fees were fully refundable \(upon termination of service\) for an indefinite period.) Tj 0 -12 TD -0.0448 Tc 1.994 Tw (Legislation enacted in July 1995 established a fixed date on June 1, 2000 for the termination of the refund period for all) Tj T* -0.0376 Tc 1.5022 Tw (investment contribution fees and replaced investment contribution fees with "entrance fees". As provided by such legislation,) Tj T* -0.0486 Tc 0.5903 Tw (entrance fees are refundable \(upon termination of services\) for a five year period only, with the refundable amount declining by) Tj T* -0.0412 Tc 2.2738 Tw (20 percent each year. The Minister for Transport, Telecommunications and Water Management together with the Finance) Tj T* -0.039 Tc 2.2663 Tw (Minister issued a joint declaration making entrance fees for all fixed line connections made after October 15, 1997 non-) Tj T* -0.0605 Tc 0.2611 Tw (refundable. The Group records a provision for expected refunds based on historical results.) Tj 14.4 -24 TD -0.0335 Tc 0.9259 Tw (The Group has looked to FASB Statement of Financial Accounting Concepts No. 5, and Statement of Financial Accounting) Tj -14.4 -12 TD -0.0374 Tc 0.943 Tw (Standard \(SFAS\) No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". The) Tj 0 -12 TD -0.053 Tc 0.6887 Tw (Company has interpreted these pronouncements to require that revenue relating to investment contribution and entrance fees is) Tj T* -0.0419 Tc 1.1575 Tw (recognized after any potential refund obligation is extinguished. This accounting treatment emphasizes the legal nature of the) Tj T* -0.0501 Tc 3.5628 Tw (potential refund obligation and creates a timing difference between the ongoing expense recognition and the revenue) Tj T* -0.0399 Tc 0.6938 Tw (recognition. This interpretation is expected to result in a lump sum revenue recognition of deferred fees by approximately HUF) Tj T* -0.0478 Tc 0.2484 Tw (19 billion in June 2000.) Tj 0 -24.24 TD /F0 10.08 Tf 0.0008 Tc -0.0118 Tw (\(b\) Employee stock purchase plan) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0205 Tc 0.5811 Tw (In March 1996, the \301PV instituted an employee stock purchase plan \(the "MRP Plan"\) for the benefit of certain of MAT\301V's) Tj -14.4 -12 TD -0.0348 Tc 0.4754 Tw (employees. Under the MRP Plan, the \301PV transferred 27,883,300 shares to the entity set up for the purpose of creating the plan) Tj 0 -12 TD -0.019 Tc 1.6849 Tw (\(the "MRP"\), which in turn sells the shares it acquires to participating employees. Employees of MAT\301V Rt. and its wholly) Tj T* -0.0438 Tc 1.4444 Tw (owned subsidiaries who have been employed for more than one year are eligible to participate. After the initial subscription) Tj T* -0.0614 Tc 0.352 Tw (period ended in September 1996, 24,397,000 shares were allocated to participants with an additional 2,502,200 shares allocated) Tj T* -0.0519 Tc 2.8041 Tw (in 1997. The MRP decides on a quarterly basis whether to make any of the remaining unallocated shares available to) Tj T* -0.0363 Tc 2.1287 Tw (participants. Shares are allocated ratably to each eligible participant up to the amount subscribed. Under the MRP Plan,) Tj T* -0.057 Tc 0.671 Tw (employees purchase shares at HUF 118.05 \(the fixed purchase price determined by the MRP in accordance with the Hungarian) Tj T* -0.031 Tc 0.6659 Tw (Privatization Law\), resulting in a discount to the market price at the date of initial subscription. Because there was not a liquid) Tj T* -0.047 Tc 0.5117 Tw (trading market for the shares allocated prior to the global offering, the market price for purposes of determining the discount to) Tj T* -0.075 Tc 0.2757 Tw (be recorded as compensation expense was estimated based on the quotations of Hungarian stock brokerages.) Tj 14.4 -24 TD -0.04 Tc 0.2407 Tw (Following the initial allocation to participants, 15 percent of the purchase price was due upon initial allocation of shares and) Tj -14.4 -12 TD -0.0618 Tc 0.333 Tw (the remainder was payable in 36 monthly installments through September 1999. For subsequent allocations of shares, 15 percent) Tj 0 -12 TD -0.0588 Tc 1.7247 Tw (of the purchase price and the installment payments for the period from October 1996 through the allocation date were due) Tj T* -0.0567 Tc 0.2873 Tw (immediately and the remainder of the purchase price was payable in monthly installments through September 1999. Prepayments) Tj T* -0.027 Tc 0.2276 Tw (were not permitted.) Tj 14.4 -24 TD -0.0544 Tc 2.2761 Tw (The MRP's Board of Directors held a general meeting of plan participants in December 1997 to amend the plan and) Tj -14.4 -12 TD -0.0292 Tc 1.0299 Tw (eliminate the prepayment restriction enabling participants to take title to all shares when fully paid. The modified plan allows) Tj 0 -12 TD -0.0626 Tc 1.4765 Tw (participants to make full payment for their subscription rights no sooner than 180 days after the Company's November 1997) Tj T* -0.0215 Tc 0.9288 Tw (initial public offering. In addition, participants can freely trade their subscription rights with other participants of the MRP at) Tj T* -0.0365 Tc 1.3826 Tw (any time within the 180 days enabling participants to realize the full value of their allocated shares at any time prior to the) Tj T* -0.0502 Tc 0.2509 Tw (expiration of 180 days with no requirement for continued service.) 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Under U.S. GAAP, the Company records the discount \(measured as the difference between the estimated market) Tj 0 -12 TD -0.055 Tc 1.3925 Tw (price and the purchase price of the shares allocated, as of the allocation date\) as compensation expense over the applicable) Tj T* -0.028 Tc 2.8836 Tw (installment period. With the modification of the MRP plan allowing prepayment and transfer of subscription rights, the) Tj T* -0.0615 Tc 0.2622 Tw (remaining unamortized balance was fully amortized in 1997.) Tj 14.4 -24 TD -0.0447 Tc 0.2454 Tw (The gross amount of compensation relating to allocations made at the date of initial subscription was HUF 2,023 million with) Tj -14.4 -12 TD -0.0469 Tc 1.4875 Tw (an additional HUF 923 million relating to shares allocated in 1997. The estimated aggregate market value of the 1,000,000) Tj 0 -12 TD -0.0539 Tc 0.2546 Tw (unallocated shares at December 31, 1999 was HUF 1.7 billion in excess of the aggregate fixed purchase price.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0427 Tc 0.0317 Tw (\(c\) Post-retirement benefits) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0305 Tc 0.8364 Tw (IAS 19 is substantially similar to SFAS 106. The difference in net income of HUF 21 million in 1998 and HUF 3 million in) Tj -14.4 -12 TD -0.1043 Tc 0.5449 Tw (1999 and in shareholder) Tj -3.3533 Tc 0 Tw (\222) Tj -0.0432 Tc 0.5867 Tw (s equity of HUF 624 million in 1998 and HUF 621 million in 1999 is due to the difference in the year) Tj 0 -12 TD -0.0723 Tc 0.7529 Tw (of adoption of SFAS 106 versus IAS 19. IAS 19 was adopted in 1998) Tj 283.44 0 TD /F1 10.08 Tf 0.0898 Tc 0 Tw (, ) Tj 5.76 0 TD /F3 10.08 Tf -0.0294 Tc 0.71 Tw (whereas for the U.S. GAAP reconciliation, SFAS 106 was) Tj -289.2 -12 TD -0.0415 Tc 1.7453 Tw (adopted in previous years. The difference in shareholders equity in 1998 of HUF 624 million reflects the HUF 645 million) Tj 0 -12 TD -0.0445 Tc 0.2451 Tw ("Unrecognized net loss from past experience" per U.S. GAAP.) Tj 0 -24.24 TD /F0 10.08 Tf -0.0222 Tc 0.0112 Tw ( \(d\) Convertible bonds ) Tj 4.2538 Tc -4.2648 Tw (\227 ) Tj -0.0131 Tc 0.0021 Tw (The Management Incentive Program) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0588 Tc 0.7875 Tw (Compensation expense is calculated on convertible bonds granted under the "Management Incentive Plan" and disclosed in) Tj -14.4 -12 TD -0.032 Tc 0.2726 Tw (the U.S. GAAP income statement adjustments in accordance with APB 25. Total compensation expense is based on the difference) Tj 0 -12 TD -0.0507 Tc 0.4368 Tw (between the exercise price and the market price on the grant date. The exercise price in Hungarian Forint on the grant date was) Tj T* -0.0534 Tc 0.9614 Tw (HUF 1,262 \(USD 5.75 converted into Hungarian Forints at the middle exchange rate as of the grant date, 219.42 HUF/USD\).) Tj T* -0.0495 Tc 0.6101 Tw (The closing market price on the grant date was HUF 1,296. Total compensation expense of HUF 143 million will be recognized) Tj T* -0.0502 Tc 1.6223 Tw (over the three year vesting period. The amount amortized from July 1, 1998 to December 31, 1998 is HUF 24 million. The) Tj T* -0.0598 Tc 2.3245 Tw (amount amortized in 1999 reflects the same amortization as in 1998, but reduced due to the forfeit of 402,000 bonds by) Tj T* -0.0879 Tc 0 Tw (managers.) Tj ET endstream endobj 421 0 obj 4088 endobj 419 0 obj << /Type /Page /Parent 404 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R /F3 14 0 R >> /ProcSet 2 0 R >> /Contents 420 0 R >> endobj 424 0 obj << /Length 425 0 R >> stream BT 269.76 63.12 TD 0 0 0 rg /F1 10.08 Tf -0.0047 Tc 0 Tw (cxxvii) Tj -227.52 693.6 TD /F3 10.08 Tf -0.043 Tc 0.8516 Tw (In 1995, the FASB issued SFAS 123, "Accounting for Stock-Based Compensation." This pronouncement requires MAT\301V to) Tj -14.4 -12 TD -0.0366 Tc 0.4459 Tw (calculate the value of the stock options at the date of grant using an option pricing model. MAT\301V has elected to apply the "pro) Tj 0 -12 TD -0.0536 Tc 0.8142 Tw (forma disclosure only" option permitted under SFAS 123, instead of recording a charge to operation estimated using the Black) Tj T* -0.0776 Tc 0.2782 Tw (Scholes method, as shown below:) Tj 371.04 -23.52 TD /F4 9.12 Tf 0 Tc 0 Tw (1998) Tj 54 0 TD (1999) Tj ET 385.92 693.84 43.2 0.72 re f 439.92 693.84 43.2 0.72 re f BT 27.84 672.24 TD /F3 10.08 Tf -0.0374 Tc 0.2381 Tw (Net income as reported \(HUF million\) ) Tj 2.1667 Tc 0 Tw (\205\205) Tj 0.2006 Tc (...............................................................) Tj 372.48 0 TD -0.0926 Tc (58,564) Tj 54 0 TD (78,721) Tj -426.48 -12 TD 0.1325 Tc 0.0682 Tw (Net income pro forma \(HUF million\) .........................................................................) 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Tj 349.2 0 TD -0.0888 Tc 0.2895 Tw (17.3% for 1 year maturity) Tj -349.2 -12 TD -0.0174 Tc 0.2181 Tw (Expected dividend yield ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..........................................................) Tj 428.88 0 TD -0.2242 Tc (0.54%) Tj -428.88 -12 TD -0.0236 Tc 0.2243 Tw (Expected option life \(in years\) ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (.....................................................) Tj 449.28 0 TD -0.1512 Tc (3) Tj -449.28 -12 TD 0.01 Tc 0.1907 Tw (Expected stock volatility ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..........................................................) Tj 436.56 0 TD -0.3901 Tc (40%) Tj -436.56 -12 TD -0.0565 Tc 0.2571 Tw (Grant date value ) Tj 2.1667 Tc 0 Tw (\205\205\205\205\205\205\205\205\205\205\205\205\205\205) Tj 0.2006 Tc (..................................................) Tj 416.16 0 TD -0.0843 Tc 0.285 Tw (HUF 580) Tj -416.16 -36.24 TD /F0 10.08 Tf -0.0206 Tc 0.0096 Tw (Consolidation of Westel 450 and Westel 900) Tj 14.4 -23.76 TD /F3 10.08 Tf -0.0402 Tc 0.6643 Tw (The consolidated financial statements, prepared in accordance with IAS, include the accounts of Westel 450 and Westel 900) Tj -14.4 -12 TD -0.0432 Tc 0.8509 Tw (as consolidated subsidiaries. Under IAS, a parent company must consolidate all enterprises which it controls. The definition of) Tj 0 -12 TD -0.0421 Tc 0.5547 Tw (control involves the power to govern the financial and operating policies of an enterprise and the ability to obtain benefits from) Tj T* 0.0518 Tc 0.1488 Tw (its activities.) Tj 14.4 -24 TD -0.0452 Tc 1.4585 Tw (Under U.S. GAAP, there is a presumption that consolidation is usually necessary for a fair presentation when one of the) Tj -14.4 -12 TD -0.0293 Tc 2.037 Tw (enterprises in the group directly or indirectly has a controlling financial interest in another enterprise. U.S. GAAP places) Tj 0 -12 TD -0.0508 Tc 1.4135 Tw (emphasis on majority ownership rather than on control. Under U.S. GAAP, the Company believes that while it holds 51% of) Tj T* -0.0583 Tc 0.7389 Tw (Westel 900 and Westel 450, the ownership rights of the other shareholder may be considered participatory in nature and would) Tj T* -0.0328 Tc 0.2335 Tw (preclude consolidation under U.S. GAAP. Under U.S. GAAP, these investments were accounted for using the equity method.) 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Tj 264.48 0 TD -0.0926 Tc (19,862) Tj 54 0 TD (44,222) Tj 59.04 0 TD -0.0808 Tc (2,976) Tj 61.68 0 TD -0.1512 Tc (985) Tj ET 277.92 619.68 43.2 0.72 re f 331.92 619.68 43.2 0.72 re f 385.92 619.68 43.2 0.72 re f 439.92 619.68 43.2 0.72 re f 277.92 606.96 43.2 0.72 re f 277.92 605.52 43.2 0.72 re f 331.92 606.96 43.2 0.72 re f 331.92 605.52 43.2 0.72 re f 385.92 606.96 43.2 0.72 re f 385.92 605.52 43.2 0.72 re f 439.92 606.96 43.2 0.72 re f 439.92 605.52 43.2 0.72 re f BT 27.84 571.92 TD /F4 10.08 Tf 0.0049 Tc 0.0042 Tw (27 Additional disclosures required for U.S. GAAP ) Tj 4.3243 Tc -4.3152 Tw (\227 ) Tj 0.0048 Tc 0.0043 Tw (recent accounting pronouncements) Tj 14.4 -23.52 TD /F3 10.08 Tf -0.0297 Tc 1.1583 Tw (SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" is effective for financial periods beginning) Tj -14.4 -12 TD -0.0449 Tc 0.2455 Tw (after June 15, 1999. Upon initial application all derivatives are required to be recognized in the balance sheet as either assets or) Tj 0 -12 TD -0.0463 Tc 0.3034 Tw (liabilities and measured at fair value. In addition, all hedging relationships must be designated, documented and reassessed. The) Tj T* -0.0262 Tc 0.2268 Tw (Company is currently evaluating the effect that SFAS No. 133 will have on its consolidated financial statements.) Tj 14.4 -24 TD -0.0414 Tc 3.8592 Tw (In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101, ) Tj -1.1933 Tc 0 Tw (\223) Tj -0.0337 Tc (Revenue) Tj -14.4 -12 TD -0.0115 Tc 0.2121 Tw (Recognition in Financial Statements,) Tj -1.1933 Tc 1.3939 Tw (\224 ) Tj -0.0574 Tc 0.45 Tw (\(SAB 101\) which provides additional guidance in applying generally accepted accounting) Tj 0 -12 TD -0.0514 Tc 0.3531 Tw (principles. In certain cases, SAB 101 requires upfront fees be deferred and recognized over the expected period of performance.) 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