Press Release Archive

Tuesday, 22 June 2004

+++ Despite the international downturn in the industry, the company signed new contracts in 2003 worth 412 million Euros. +++

"During the past six months, we have completed an important phase of reorganization that will insure a new dynamic cycle of growth for our company. This is the most significant factor we wish to present in our account" said Socrates Kokkalis, President of INTRACOM, in his introductory speech to the General Assembly that was held today (Tuesday, 22 June 2004) at the Group's facilities in Peania.

Mr. G. Deligiannis, Managing Director of INTRACOM, recounted the recent corporate restructuring at length.

Specifically, Mr. Deligiannis explained that the primary goal of the company's restructuring was to demarcate operations into four verticals dealing in Telecommunications, Defense, Government, and Banking.

"This comprehensive reorganization, the first since its founding, has to do with the company's successful transition to, and enhanced ability to compete in, the new realities of the international market as it is shaped by global trends. INTRACOM is the only high-tech Greek company that has such a pronounced presence abroad, an international corporate culture, and global partnerships. It is not by chance then that 45% of our annual turnover will come from exports, and in the immediate future this percentage will rise to 50%. INTRACOM has targeted, and is already participating in, the modernization of the economies of southeastern Europe, and it is expected that by the end of 2004, our Group will have signed contracts to the extent of 623 million Euros."

In relation to the financial results of the company in 2003, the Managing Director of INTRACOM highlighted the following:

• The principle goal of company's management for 2004, and also for years following, is the introduction of a rigid financial discipline to all the levels of the Group, reformation of the balance sheet, cost cutting, outsourcing, reassessment of corporate procedures, and effectual management of assets and liquidity. Net debt was reduced from € 400.5 million in 2002 to €133.2 million in 2003. Net debt constitutes the 19% of shareholders' equity, as compared to 58% in 2002 and 27% in sales, as compared to 58% in 2002. These ratios are substantially low in comparison to the average of the Greek Industry, which lends significant cash flow to the company. It should be noted that total debt was further reduced during the first semester of 2004.
• Group turnover amounted to € 640.9 million for the fiscal year 2003, reduced by 20% in relation to 2002. Gross Profits amounted to € 202.5 million in 2003, as compared to € 297.1 million in 2002. Operational profits (EBITDA) of the consolidated balance sheet amounted to € 116.3 million, constituting 18.2% of the sales, compared to € 209.5 million in 2002.
• INTRACOM's sales for the year 2003 amounted to € 494.0 million, reduced by 28.1% in relation to 2002. Exports rose to € 218.8 million, showing an increase as a percentage of
  44.3% compared to 40.6% in 2002. In order of significance, main export targets were the countries of the European Union, the USA, Romania, Bulgaria, etc. INTRACOM's gross profits totaled € 149.0 million, reduced by 39.2% in relation to 2002. This substantial reduction
  in gross profits combined with a slight reduction in operational expenses formed EBITDA (for the parent company) at € 85.1 million, compared to € 177.9 million for the year 2002. EBITDA margin came to 17.2% within 2003 compared to 25.9% in 2002. INTRACOM's (the parent company) profits before taxes for 2003 totaled € 43.0 million, compared to € 102.8 million in 2002.
• The company, despite the international downturn that has negatively influenced Telecom and IT companies worldwide, has signed new contracts since the beginning of 2003, worth € 412 million (44% of which pertain to exports). The company's book order came to € 1.221
  billion on 31/12/2003, 60.8% of which pertained to exports
• The dividend per share for the year 2003 amounts to € 0.10. At the same time, the Board of Directors, during their session, approved a capital return of at least € 0.10 per share; a return coming from the capital gain realized after the sale of VODAFONE Hellas stake last year. In this way, shareholders will realize a total dividend equal to that of 2002, while the dividend yield surpasses 5%.

Finally, the General Assembly elected Mrs. Anna Pouskouri - Reiche, Managing Director and Country Manager of the German Bank Bayerishe Hypo-Und Vereinsbank AG, new (11th) member of the Board of Directors.